Yahoo Finance

• Core Deposits: Increased by approximately $500 million in the fourth quarter.

• Loan Growth: Business loans increased by over $70 million in Q4 and $400 million for the full year.

• Loan to Deposit Ratio: Ended the year at less than 95%.

• Net Interest Margin (NIM): Increased by 29 basis points in Q4; core NIM excluding purchase accounting incretion was up 26 basis points.

• Common Equity Tier 1 Ratio: In excess of 11% at year-end.

• Total Capital Ratio: In excess of 15.5% at year-end.

• Allowance to Loans: Increased to 82 basis points.

• Adjusted EPS: Increased by 45% versus the prior quarter.

• Core Cash Operating Expenses: $57.7 million for Q4.

• Non-Interest Income Guidance for 2025: Expected between $40 million to $42 million.

• Core Cash Non-Interest Expenses Guidance for 2025: Between $234 million and $235 million.

• Tax Rate Guidance for 2025: Between 27% and 28%.

• Warning! GuruFocus has detected 4 Warning Signs with DCOM.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dime Community Bancshares Inc (NASDAQ:DCOM) successfully raised approximately $1.8 billion in core deposits, with 40% being non-interest bearing.

• The company achieved substantial year-over-year growth in core deposits, ending the year with a loan-to-deposit ratio of less than 95%.

• Dime Community Bancshares Inc (NASDAQ:DCOM) reported a significant expansion in net interest margin, increasing by 29 basis points in the fourth quarter.

• The company received its second consecutive outstanding CRA rating, achieving perfect scores on all three components of the CRA test.

• Dime Community Bancshares Inc (NASDAQ:DCOM) raised approximately $136 million from an oversubscribed common equity offering, enhancing its capital ratios.

Negative Points

• The company experienced higher than expected payoffs and refinances in its business loan portfolio, impacting loan growth.

• Dime Community Bancshares Inc (NASDAQ:DCOM) anticipates a $4.5 million pre-tax termination expense related to a legacy pension plan in the first quarter of 2025.

• The company faces challenges in maintaining its CRE concentration, aiming to reduce it to the low 400s.

• Dime Community Bancshares Inc (NASDAQ:DCOM) reported a $13.7 million loan loss provision in the fourth quarter, reflecting increased allowance for loan losses.

• The company expects low single-digit loan growth in 2025, with growth more weighted towards the back half of the year.

Q & A Highlights

Q: Can you confirm the guidance for non-interest income for 2025? A: Yes, the guidance for non-interest income is $40 million to $42 million for 2025. This increase is primarily due to the BOLI restructuring, which will add approximately $5 million to $5.5 million in income.