Dime Community Bancshares, Inc. Q4 FY2024 earnings call

• Hired deposit gathering teams from former Signature Bank, raising ~$1.8B core deposits with 40% non-interest-bearing. - Successful build-out of private and commercial bank, with growth in core deposits and reduction in wholesale borrowings. - Business loans up $70M Q4 and $400M full year, loan pipeline strong. - Core operating expenses to assets kept in 165 basis point range. - Raised ~$136M from common equity offering, repositioned securities and BOLI portfolios. - Received consecutive outstanding CRA rating. - NIM expanding, with path to 3%+ NIM.

Core deposits: Collectively, deposit groups raised approximately $1.8 billion of core deposits, with ~40% in non-interest-bearing deposits. Loan performance: Business loans were up over $70 million in the fourth quarter and $400 million for the full year. Loan-to-deposit ratio ended less than 95%, and wholesale borrowings and brokered deposits reduced by approximately $1.2 billion. Net interest margin: Fourth quarter NIM increased to 2.79%.

• NIM: Path to 3% net interest margin, with first quarter NIM expected around 2.90% and potential for further increases with rate cuts. - Non-interest income: Guidance of $40 million to $42 million for 2025. - Loan growth: Expect period-end loan balances to grow in low single-digit area in 2025, weighted towards back half. - Core cash non-interest expenses: Full year 2025 guidance between $234 million and $235 million. - Tax rate: Expected between 27% and 28%.

• Market disruption and high competition in hiring. - Potential impact of Federal Reserve rate changes on deposits and loan repricing. - Continued need to manage CRE concentration risks.

Q: Mark Fitzgibbon asked about non-interest income guidance and loan growth.

A: Avi Reddy explained non-interest income range includes BOLI income, and loan growth is affected by payoffs/refinances in CRE and multifamily.

Q: Steve Moss inquired about margin guidance and deposit competition.

A: Avi Reddy provided details on loan repricing and deposit mix, and Stuart Lubow discussed deposit cost range.

Q: Chris O'Connell asked about cash position and loan dynamics.

A: Avi Reddy talked about cash management and CRE balance sheet management.

Q: Manuel Navas asked about customer reaction to rate cuts and deposit growth.

A: Avi Reddy and Stuart Lubow discussed customer psychology and deposit growth potential.

Q: Matthew Breese asked about loan yields, payoffs, and deposit growth.

A: Stuart Lubow and Avi Reddy provided details on loan yields, payoff speeds, and deposit composition and betas.