"2025 Quarter 2 Earnings Discussion Transcript for Dime Community Bancshares, Inc. (DCOM)"
Dime Community Bancshares Inc. (DCOM) held its Q2 2025 Earnings Conference Call on July 24, 2025. The formal event, organised by the company, was a public discussion of its financial performance in Q2 2025.
Key Highlights
Dime Community Bancshares reported impressive financial results in Q2 2025. The core pre-tax, pre-provision income increased significantly, reaching $49 million, up from $28 million a year ago. This translated to a core return on assets (ROA) of 85 basis points.
The growth in core deposits was also noteworthy, with a year-over-year increase of $1.2 billion. The Net Interest Margin (NIM) increased to 2.98%, with a core NIM of 2.95% excluding pre-payment fees. Management expects a gradual upward bias in NIM starting in Q3 2025, with more pronounced expansion in Q4.
Business loans grew by $370 million year over year, with a $110 million increase in Q2 2025. Loan origination was strong at $450 million for the quarter, with a weighted average rate of 7%.
The financial ratios also looked promising. The common equity tier one ratio was 11.25%, and the total capital ratio was 15.8%.
The core earnings per share (EPS) were $0.64, up 12% quarter over quarter and 49% year over year.
Future Outlook
The company anticipates balance sheet growth in the low single-digit range for the rest of 2025. Attrition in transactional CRE and multifamily is expected to be offset by business loan expansion.
Dime Community Bancshares is focusing on increasing lending capacity and being opportunistic in the market, leveraging its strong liquidity and capital positions as competitive advantages.
Analyst Expectations
Analysts initially expected earnings of $0.63 per share for Q2 2025, but the actual core EPS was $0.64, exceeding expectations. For the full fiscal year 2025, analysts expect earnings per share to be around $3, with expectations for $4 in the next fiscal year.
References will be made to non-GAAP financial measures during the call as supplemental measures to review and assess operating performance. However, these non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the U.S. GAAP. For information about these non-GAAP measures and for a reconciliation to GAAP, please refer to today's earnings release.
The conference call was recorded and contains forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. The risks, uncertainties, and other factors that may cause actual results to differ from the forward-looking statements are detailed in today's press release and the company's filings with the U.S. Securities and Exchange Commission.
The conference call was attended by representatives from various financial research divisions, including Thomas Reid from Raymond James & Associates, Inc., Research Division, Mark Fitzgibbon from Piper Sandler & Co., Research Division, Matthew Breese from Stephens Inc., Research Division, Manuel Navas from D.A. Davidson & Co., Research Division, and David Konrad from Keefe, Bruyette, & Woods, Inc., Research Division.
The call will be handed over to Stuart Lubow by Stephen. The participants for the conference call include Stuart Lubow as CEO, President, and Director, and Avinash Reddy as Senior EVP and CFO.
[1] Information obtained from the conference call transcript. [2] Information obtained from analyst expectations prior to the earnings call. [3] Information obtained from today's earnings release.
- Dime Community Bancshares is planning to focus on increasing its lending capacity and being opportunistic in the market, utilizing its strong liquidity and capital positions as competitive advantages, while anticipating balance sheet growth in the low single-digit range for the rest of 2025.
- Analysts' expectations for Dime Community Bancshares' earnings per share (EPS) for full fiscal year 2025 are around $3, with expectations for $4 in the next fiscal year, with the actual core EPS for Q2 2025 exceeding the initially expected earnings of $0.63 per share.