Dime Community Bancshares, Inc. Q2 FY2025 earnings call

• Core earnings power has increased significantly; core pretax pre-provision income was $49M in Q2 2025 vs $28M YOY, core ROA 85bps. • Core deposits up $1.2B YOY, cost of deposits 2.09%, NIM approaching 3% with catalysts like back book repricing. • Business loans grew over $110M in Q2, over $370M YOY, loan originations $450M, pipeline $1.2B. • Hired commercial lending teams, expect verticals to contribute in Q4, opening new branches in Lakewood and Manhattan.

Core pretax pre-provision income was $49 million in the second quarter of 2025 compared to $28 million a year ago, translating to a core ROA of 85 basis points. Core deposits were up $1.2 billion year-over-year. The cost of total deposits was 2.09% in the second quarter. Business loans grew over $110 million in the second quarter and over $370 million or 15% on a year-over-year basis. Loan originations, including new lines of credit, increased to $450 million for the quarter with a weighted average rate of approximately 7%, and the loan pipeline stands at $1.2 billion with a weighted average rate of approximately 6.85%.

• Excluding prepayment fees, Q2 NIM was 2.95%, expecting gradual NIM increase in Q3, more pronounced in Q4 with asset repricing. • ~$1.95B of loans reprice/mature in H2 2025 and 2026, could increase NIM by 30bps; 25bps rate cut expected to drive 5bps NIM expansion. • Core cash noninterest expense guidance for Q3 2025 ~$61.5M, swap fee income ~$0.5M, total noninterest income ~$10.5M, effective tax rate 27%-27.5% for Q3.

• Disruption in local market for recruiting. • Uncertainty around M&A market being not target-rich. • Impact of Mamdani narrow win on New York City multifamily rent-regulated book.

Q: Thomas Reid asks about DDA balances trajectory and if it's one-time.

A: Avinash Reddy says nothing one-time, Stuart Lubow mentions continued strength in retail and private banking with new accounts opened.

Q: Mark Fitzgibbon asks about operating expenses and rate cut impact on NIM.

A: Avinash Reddy confirms Q3 core cash noninterest expense guidance and says 25bps rate cut historically leads to 5bps NIM expansion.

Q: Matthew Breese asks about loan verticals pricing and loan growth impact.

A: Avinash Reddy and Stuart Lubow discuss spreads and loan growth potential.

Q: Manuel Navas asks about loan growth and capital deployment.

A: Avinash Reddy talks about loan growth potential and organic growth as priority.

Q: David Konrad asks about capital deployment.

A: Avinash Reddy says organic growth is priority near term with reevaluation in early 2026.

Q: Matthew Breese asks about cash, cash equivalents, and liquidity deployment.

A: Avinash Reddy discusses redeploying cash into new lending verticals over medium to long term.