DCOMG

• Core EPS continued upward trajectory with $0.79 in Q4, driven by record revenues. - Deposit growth strong, with core deposits up $1.2B y/y, and non-interest-bearing DDA at 31% of deposits. - Loan growth: business loans up over $1.075B linked quarter and over $500M y/y; loan pipeline over $1.3B with weighted average rate 6.25%-6.5%. - Commercial banking platform buildout: Thomas Reid hired in Q1 2025, with progress in building industry verticals; added capabilities like fund finance, lender finance, mid corporate, sponsor finance, syndications, and geographic expansion. - CRE concentration ratio below 400%, and focus on growing business loans while managing CRE concentration. - Manhattan branch open, with Lakewood and Locust Valley locations expected to open by end of first year.

• NIM: Expect modest expansion in first half of 2026, more substantial in back half as back book loan repricing picks up. Using Q4 NIM excluding prepayment fees (3.09%) as starting point. - Balance sheet: Relatively flat in 2026, with expected CRE concentration ratio reduction to mid-350% area, loan growth low single digits in 2026 with flattish balances in first half and growth in second half; mid to high single-digit loan growth in 2027. - Expenses: Core cash operating expenses excluding intangible amortization for 2026 expected between $255M-$257M. - Provision for loan losses: Next couple of quarters $10M-$11M, trending down to single digits in second half. - Noninterest income: 2026 expected between $45M-$46M. - Tax rate: 2026 expected to be approximately 28%.

Core EPS for the fourth quarter was $0.79, an 88% increase versus the prior year. Total revenues for the fourth quarter were a record $124 million. NIM was up 10 basis points, and average earning assets were up over $650 million on a linked quarter basis. Core deposits were up $1.2 billion year-over-year. Business loans grew over $1.075 billion on a linked quarter and over $500 million on a year-over-year basis. The CRE concentration ratio is now below 400%. Non-interest-bearing DDA is 31% of deposits. Core-funded balance sheet with significant liquidity position.

• Market disruption: Another merger transaction at year-end, but focus on organic growth. - Interest rate impact: NIM expansion tied to back book loan repricing, and cash position provides some insulation but still risks from interest rate changes. - CRE concentration: Potential risks related to CRE prepayments and managing concentration ratios.

Q: Could you share which industries accounted for sequential quarter growth in business loan balances?

A: About $400M of the $500M year-over-year business loan growth came from specialty groups including healthcare, lender finance, fund finance, sponsor, and not-for-profit, with healthcare having significant momentum.

Q: What's the deposit pipeline look like and pricing?

A: Pricing on new deposits is high twos to low threes on money market with 20-30% DDA, all-in cost in low twos; spot rate on deposits at end of year was 1.68%.

Q: On 100% rent-regulated loans, where are they now and scheduled maturities?

A: Rent-regulated book around $350M at year-end 2025, down from $500M two years ago; maturities and repricings in rent-regulated multifamily book around $250M in 2026, granular portfolio with attrition expected.

Q: Mix of deposits in 2026, especially non-interest-bearing?

A: Non-interest-bearing deposits at 31% currently, aiming to continue growing; starting point was 25% after merger and PPP, and focusing on low-cost deposits.

Q: Cash deployment timeline and strategy?

A: No specific timeline, bought $150M in Q4, flexibility on balance sheet; cash balance not expected to come down significantly near term absent seasonality, with loan growth in second half driving use of cash.

Q: Prepayment activity in 2025 and outlook?

A: Prepayment rates in Q3 20-25%, Q4 15%; depends on loan by loan, goal to get CRE ratio to mid-350s by exiting some transactional CRE, with relationship CRE showing strong retention.