Dime Community Bancshares, Inc. Q1 FY2025 earnings call

• Core deposits up $1.3B YOY, deposit teams hired since 2023 grew portfolios to $1.9B, paid down brokered deposits and reduced FHLB borrowing. Cost of deposits at 2.09% in Q1, NIM increased for 4th consecutive quarter to 2.9% range with catalysts for further NIM growth. • Business loans grew over $60M in Q1 and over $400M YOY, loan pipeline at ~$1.1B with average yield 7.22%, made new hires for loan growth. • Core pre-tax provision income $46M in Q1 2025 vs $28M YOY, core ROA 77 basis points. • Recruiting efforts strong, added numerous bankers, focused on growing both sides of balance sheet, expect Tom Geisel to be integral to transformation, announced expansion into Lakewood, NJ marketplace. • Excluding legacy pension plan termination impact, adjusted EPS $0.57 per share, 36% linked-quarter and 50% YOY increase. Reported NIM up 16 basis points, NIM excluding purchase accounting accretion up 19 basis points to 2.94%. Managed expenses prudently, core cash operating expenses (excluding intangible amortization) $57.9M in Q1. Non-interest income $9.6M reflecting full quarter impact of BOLI repositioning transaction. • Thought on guidance: used Q1 base NIM closer to 2.90% as starting point, expect Q2 NIM range bound within ±3 basis points of 2.90%, margin expansion to resume in second half of 2025 with significant back book loan repricing opportunity. Balance sheet growth: net loans expected flat in Q2, growth to pick up in back half of 2025. Increased full year core cash non-interest expense guidance to $236.5M - $237.5M due to hires.

Core deposits were up $1.3 billion year-over-year, with deposit teams hired since 2023 growing deposit portfolios to $1.9 billion. Cost of deposits reduced to 2.09% in Q1. NIM increased to 2.9% range for fourth consecutive quarter. Business loans grew over $60 million in Q1 and over $400 million YOY. Core pre-tax provision income was $46 million in Q1 2025 vs $28 million a year ago, translating to core ROA of 77 basis points. Non-brokered deposits were up ~$65 million at March 31 vs year-end; excluding title company deposits from year-end totals, grew ~$250 million. Net charge-offs to average loans decreased to 26 basis points and allowance to loans increased to 83 basis points. Capital levels grew with common equity Tier 1 ratio at 11.1% and total capital ratio at 15.7%.

• Used Q1 base NIM closer to 2.90% as starting point for modeling, expect Q2 NIM to remain range bound within ±3 basis point range of 2.90%. • Expect margin expansion to resume in second half of 2025 with significant back book loan repricing opportunity: $1.95B of adjustable and fixed rate loans at weighted average rate 4% reprice or mature in second half of 2025 and full year 2026, could see 35 basis point increase in NIM from repricing; $1.75B of loans at weighted average rate 4.25% in 2027 for continued NIM expansion. • If Fed cuts rates in second half of 2025, expect NIM benefit similar to 2024 (5 basis points per 25 basis point rate cut) assuming deposit and loan behavior hold and competition rational. • Net loans expected relatively flat in Q2, growth to pick up in back half of 2025. • Increased full year core cash non-interest expense guidance to $236.5M - $237.5M from $234M - $235M due to hires.

• Uncertain rate environment could impact NIM improvement. • Competition in hiring and deposit/lending pricing could affect business. • Tariffs could impact lending spreads and require monitoring of certain exposures. • Uncertainty related to economic factors could affect loan performance and provisioning. • Potential impact of legacy issues or unforeseen events on financial results.

Q: Steve Moss asked about loan pipeline mix.

A: Pipeline includes ~$350M in C&I, ~$185M in owner-occupied CRE, ~$250M in healthcare, ~$200M in loans approved waiting to close at ~725 yield.

Q: Steve Moss asked about deposit growth pace and cost of new deposits.

A: Teams have $1.9B in deposits, total cost of deposits including DDA around 210+, mix of DDA around 35%-40%, grown accounts to ~12,500 and customers to ~7,800 since last earnings call, excluding title company deposits, grew core deposits ~$250M this quarter.

Q: Mark Fitzgibbon asked about cash balance.

A: Cash balance over $1B, trying to run balance sheet for medium to longer term with right mix of floating rate assets and cash vs fixed rate assets, cash will get used up as loans are put on and some loans are floating rate.

Q: Mark Fitzgibbon asked about deposit growth and brokered deposits runoff.

A: Bit seasonal, first quarter weak, April weak due to tax payments, keen discipline on cost of deposits, aiming for loan-to-deposit ratio between 90%-95%, can manage municipal portfolio to adjust deposit flows.

Q: Mark Fitzgibbon asked about non-owner-occupied commercial real estate uptick.

A: One credit, exit of legacy bridge loan and purchase and sale agreement on classified loan expected to exit in second quarter.

Q: Christopher O'Connell asked about credit purchase and sale agreement marking.

A: Marked to expected purchase price.

Q: Christopher O'Connell asked about production goals and breakdown of new hires.

A: Deposit teams take ~6 months to break even, loan side takes longer, hires to date ~70%-80% focused on loan side.

Q: Christopher O'Connell asked about second quarter NIM.

A: Base NIM 2.90%, expect ±3-4 basis points range, factoring in loan closings and pipeline.

Q: Manuel Navas asked about Lakeland, NJ branch.

A: Hired private banker, area has deposit and loan opportunity, mix of hiring in different areas, surgical about what works for Dime, focused on economics working within 6-12 months.

Q: Manuel Navas asked about competition and pricing.

A: Other banks interested in what Dime has done, pricing rational now, multifamily pricing come down, structure of balance sheet will be profitable as book is repriced.

Q: Matthew Breese asked about deposit cost trajectory.

A: Goal to keep deposit costs in low 2% area, have CD book repricing lower, best environment with Fed cuts, but absent cuts, still have CD book repricing.

Q: Matthew Breese asked about lending spreads and tariffs.

A: Too early to see change in spreads on commercial real estate, monitoring import/export, manufacturing, retail, consumer areas.

Q: Matthew Breese asked about Signature failure milestone and hiring.

A: No specific lockup agreements related, hires from multiple banks, opportunity not just from one bank, getting incoming calls from other banks too.

Q: Matthew Breese asked about fee income guide.

A: Q1 swap fee revenue close to zero, but still on track for full year $40M - $42M guide.

Q: Matthew Breese asked about buybacks.

A: Given environment, important to have excess capital for loan pipeline and CRE ratio reduction, may revisit buyback in latter half of 2025 into 2026.