- Net income for Dime Community Bancshares (DCOM, Financial) in Q1 2025 reached $19.6 million, marking a significant turnaround from a net loss of $22.2 million in Q4 2024.
- Adjusted EPS rose to $0.57, reflecting a 36% quarter-over-quarter and 50% year-over-year increase.
- Core deposits increased by $1.35 billion year-over-year, contributing to a total deposit growth of $717.0 million.
Dime Community Bancshares, Inc. (DCOM) reported a robust financial performance for the first quarter of 2025, with net income available to common stockholders amounting to $19.6 million, or $0.45 per diluted share. This represents a significant recovery from the net loss of $22.2 million the company experienced in the fourth quarter of 2024. The adjusted earnings per share (EPS) for Q1 2025 was $0.57, demonstrating a 36% increase from the previous quarter and a 50% increase year-over-year.
Key drivers of this performance included an improved net interest margin, which expanded by 16 basis points to 2.95%, and a strategic shift in the bank’s funding profile. Core deposits saw a year-over-year increase of $1.35 billion, while total deposits grew by $717.0 million. This was coupled with a reduction in the cost of total deposits by 19 basis points compared to the previous quarter.
Despite these gains, the company reported an increase in non-performing loans, which rose to $58.0 million, and recorded a credit loss provision of $9.6 million. However, the Common Equity Tier 1 Ratio showed a positive trend, improving to 11.12% by the end of Q1 2025, which enhances the bank's ability to manage growth and absorb potential losses.
In terms of costs, Dime Community incurred $7.2 million in pre-tax expenses related to the termination of a legacy pension plan. Nonetheless, the adjusted efficiency ratio improved to 55.8%, reflecting effective cost management amid these one-time expenses.
CEO Stuart H. Lubow expressed optimism about the bank's prospects, highlighting future earnings catalysts, including loan repricing opportunities and anticipated Federal Reserve rate cuts, which are expected to drive further growth in the remaining quarters of 2025.
