Dime Community Bancshares, Inc. Q3 FY2025 earnings call

• Core earnings power up significantly, core pretax pre-provision income up YOY. • Increase in loan loss provision tied to charge-offs in real estate segments, NPAs up slightly but from small base. • Core deposits up $1 billion YOY, deposit teams hired since 2023 grew portfolio to ~$2.6 billion, cost of total deposits 2.09% unchanged Q/Q. • NIM increased for sixth consecutive quarter, surpassed 3% mark, expected more NIM expansion in Q4 due to Fed rate cut and back book loan repricing. • Business loans growing, loan originations strong, loan pipelines robust. • Hired talented bankers in Q3, opened Manhattan branch, on track to open New Jersey and North Shore of Long Island branches. • Core EPS $0.61 per share, 110% YOY increase. • Core cash operating expenses ~$61.9 million, noninterest income $12.2 million including fraud recovery, credit loss provision $13.3 million, capital ratios strong.

Core pretax pre-provision income was $54.4 million in Q3 2025 vs $49.4 million in Q2 2025 and $29.8 million a year ago. Core pretax pre-provision net revenue $54 million (~1.5% of average assets). Reported Q3 NIM 3.01%, excluding prepayment fees and purchase accounting was 2.98%. Total deposits up ~$320 million vs prior quarter. Core cash operating expenses ~$61.9 million (marginally above prior guidance). Noninterest income $12.2 million including $1.5 million fraud recovery. Credit loss provision $13.3 million, allowance to loans 88 basis points. Business loans grew over $160 million in Q3 vs $110 million in Q2, loan originations including new lines of credit $535 million, loan pipelines $1.2 billion.

• Expect more substantial NIM expansion in Q4 due to reduced deposit costs and maintained loan yields. • Asset repricing story to unfold more in 2026-2027 with significant back book loan repricing opportunity. • Balance sheet expected to be relatively flat for remainder of 2025. • Won't provide 2026 guidance until new year. • Q4 core cash operating expenses expected ~$63 million. • Noninterest income run rate for Q4 expected ~$10 million to $10.5 million excluding fraud recovery item. • Efficiency ratio expected to improve with NIM improvement.

• Risks associated with forward-looking statements, actual results may differ from projections. • Impact of government shutdown on SBA fees affecting noninterest income. • Uncertainty in swap fee income. • Potential for continued criticized loans and charge-offs in the near term as part of exiting criticized assets.

Q: Steve Moss asked about NPA formations, charge-offs, split of owner-occupied vs nonowner-occupied CRE, multifamily relatedness.

A: Charge-offs not multifamily related, split ~20% owner-occupied, ~80% nonowner-occupied, criticized loans down ~$30 million Q/Q, 30-89 days past due down ~33% Q/Q, confident of resolving legacy NPAs in Q4.

Q: Matthew Breese followed up on credit, rephrasing normalized charge-offs.

A: Guidance for charge-offs was 20-30 basis points, YTD at 31 basis points, new businesses expected 0 losses, reserving methodology may change but charge-offs expected to be in line with historical Dime level by '26.

Q: Matthew Breese asked about multifamily reduction selection bias.

A: No delineation between free market and rent-regulated on maturities due to low LTVs and conservative underwriting, difference at reprice.

Q: Matthew Breese asked about deposit betas with rate cuts.

A: Goal to pass on rate cuts to deposit side, expect 5 basis points plus or minus per rate cut from deposit side cut, NIM guidance absent rate cuts.

Q: Matthew Breese asked about M&A and strategic alternatives.

A: Focused on organic growth, pipeline strong with good yields, interested in maximizing shareholder value but currently focused on organic growth.

Q: Mark Fitzgibbon asked about stock repurchases.

A: First use of capital is deploying into lending teams, limiting factor was CRE ratio, stock undervalued, will consider stock repurchases when CRE ratio improves.

Q: Mark Fitzgibbon asked about fraud recovery.

A: Fraud recovery $1.5 million in other noninterest income, dating back to Legacy Bridge.

Q: Mark Fitzgibbon asked about industry credit cycle.

A: Industry in later innings, muddling along, economy relatively strong, no significant stress expected in credit.