Dime Community Bancshares, Inc. Q1 FY2026 earnings call

• Stu LeBeau mentioned progress in executing strategic plan, EPS growth driven by record core revenues, NIM increase, core deposit and business loan growth, strong loan pipeline, and new hires including deposit teams and equipment/franchise finance vertical. - Avi Reddy provided financial details like EPS, core pre-tax pre-provision net revenue, NIM details, loan and deposit growth, loan pipeline, loan sale details, capital ratios, and expense guidance update. - Plans to rebrand as Dime Commercial Bank as over 70% of deposit base is from commercial and municipal customers and ~60% of loan portfolio is commercial real estate.

EPS for the first quarter was up 67% versus the prior year. Record total core revenues were $124 million. NIM was up 10 basis points quarter over quarter. Core deposit growth was $1 billion year over year. Business loans grew approximately $575 million (21% increase) year over year. Loan pipeline is in excess of $1.5 billion with weighted average rate between 6.25% and 6.5%. The new deposit teams hired have grown deposits to nearly $3 billion with $1.2 billion of DDA and a cost of funds of 1.6%. The new equipment and franchise finance vertical starting May 1st strengthens core commercial bank offerings. Core cash operating expenses, excluding intangible amortization, are expected to be approximately $260 million for 2026. Tangible equity ratio crossed 9%, common equity Tier 1 ratio grew to 11.87%, and total capital ratio is in excess of 16%.

• Expect modest NIM expansion in second quarter and more pronounced expansion in back half of 2026 and 2027 as back book loan repricing picks up. - Core cash operating expenses, excluding intangible amortization, for 2026 increased to approximately $260 million due to significant hires. - Tax rate for remaining quarters of 2026 expected to be 28.5%. - Expect loan portfolio growth starting in back six months of 2026, with business loan growth, investor CRE growth, and multifamily adjustments.

Q: Quick question on the $38 million loan that was sold in April, about its placement in non-performing bucket and loan growth flow.

A: It wasn't in the non-performing bucket at year end, was sold at end of first quarter, and loan growth expected to start in back six months of 2026 with different segments contributing.

Q: Curious about size of signature deposit teams and their historical book.

A: Collectively manage well north of a billion dollars of deposits currently, cost of funds is lower than overall, and it's a medium to longer term billion-dollar opportunity.

Q: Type of equipment finance loans sought with new setup.

A: Focus on middle market to large ticket, single B to investment grade credit quality, critical machinery and equipment for manufacturing and warehouses, covering various industries.

Q: Is help for sale bucket a one-off or ongoing.

A: Case-by-case basis, done on granular basis, not bulk sales, one-offs as they may come up.

Q: Opportunity for continued deposits declines and M&A talent pipeline.

A: If Fed stays steady, challenging to drop deposit costs further, but new teams help, and M&A talent pipeline involves working with current teams, adding depth to existing verticals, and taking advantage of client opportunities from M&A disruption.