Dime Community Bancshares Reports Q2 2026 Results: Full Earnings Call Transcript

Dime Community Bancshares (NASDAQ: DCOM ) reported second-quarter financial results on Thursday. The transcript from the company's second-quarter earnings call has been provided below. This content is powered APIs. For comprehensive financial data and transcripts, visit Access the full call at Summary Dime Community Bancshares reported record revenues of $126 million for the second quarter, with a core EPS increase of 23% year-over-year.

4 billion. Dime reduced its core efficiency ratio below 50% and announced plans to resume share repurchases in the third quarter. The rebranding to Dime Commercial Bank reflects the company's transformation towards commercial banking, with over 70% of deposits from commercial and municipal customers. 28%, and the company expects further NIM expansion in the latter half of the year.

The allowance for loan losses increased to 98 basis points, with a loan loss provision of $14 million. Dime's tangible equity ratio crossed 9%, and the common equity Tier 1 ratio grew to 12%. Management plans to grow the business loan portfolio by $200 to $250 million per quarter and expects low- to mid-single-digit loan growth for the year. 64%.

5%, allowing room for organic growth and buybacks. Full Transcript Carmen, Operator Good day, everyone, and thank you for standing by. Welcome to Dime Community Bancshares' second quarter earnings call. At this time, all participants are in a listen-only mode.

After the speakers' presentations, there will be a question-and-answer session. To ask a question, you will need to press star 1-1 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, please press star 1-1 again.

Please be advised that today's conference is being recorded. S. Private Securities Litigation Reform Act of 1995. S.

Securities and Exchange Commission, to which we refer you. During this call, references will be made to non-GAAP financial measures as supplemental measures to review and assess operating performance. S. GAAP.

For information about these non-GAAP measures and for reconciliations to GAAP, please refer to today's earnings release. Now it's my pleasure to hand the conference over to Stuart Lubow, President and CEO. Please proceed. Stuart Lubow, Chief Executive Officer Thank you, Carmen, and good morning, and thank you all for joining us this morning for our second quarter earnings call.

With me today, as usual, are Avi Reddy, our Chief Operating Officer and CFO, and Tom Geisel, our Chief Commercial Officer. In my prepared remarks, I will touch upon the progress we've made in the second quarter. Avi will then provide financial details for the second quarter. Dime has differentiated our franchise from our local competitors as it relates to our organic growth trajectory, our ability to attract talented bankers, the quality of our deposit base, the progress we made in diversifying our balance sheet, and our improving NIM and profitability.

Revenues for the second quarter were $126 million, which was a record for Dime. Core EPS was up 23% versus prior year. NIM was up 7 basis points versus the linked quarter, as we were able to lower the cost of deposits and improve our yield on loans. On the loan front, we continue to execute on our stated plan of growing business loans year over year.

Growth in business loans was approximately $743 million, which represents a 26% year-over-year increase. 25%. We were pleased to drive our core efficiency ratio below 50% in the second quarter. As you are aware, we have been very active on the hiring front over the past three years, and it's nice to see these investments paying for themselves and contributing to the improved profitability.

To give you a sense of the scale of our transformation on hiring, we have added over 15 deposit teams in our private banking area, six new lending verticals, and three new branch locations. Doing all this in a very short span of time and driving the efficiency ratio below 50% is especially noteworthy. We continue to believe that the hires that we have made have a long runway in front of them. The disruption in our local marketplace remains very high, and the environment for our organic growth strategy as it relates to acquiring clients and bankers continues to be very attractive.

A common theme in our discussions with shareholders over the past year has been: when will Dime resume its share repurchase program? Given the significant long-term value we see in our shares, we are pleased to announce that we expect to begin repurchasing our shares in the third quarter. Avi will provide some color on our capital targets in his prepared remarks. In June, we completed our rebrand to Dime Commercial Bank.

This marked the culmination and logical next step in Dime's evolution. Over 70% of our deposit base is from commercial and municipal customers, and approximately 60% of ou