Dime Commercial Bancshares, Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 23 October 2025: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Diluted EPS of $0.59: Net income available to common stockholders was $25.8 million, or $0.59 per diluted share, versus $27.9 million or $0.64 in the second quarter, and $11.5 million or $0.29 a year earlier. Source
• Pre-tax pre-provision revenue up 8%: Pre-tax pre-provision net revenue was $53.4 million, up 8% from the prior quarter and 79% from the year-earlier quarter, according to the CEO. Source
• Net interest margin rose to 3.01%: Net interest margin was 3.01%, up from 2.98% in the second quarter and 2.50% a year earlier. Net interest income was $103.4 million, against $98.1 million in the second quarter. Source
• Loan-deposit spread widened after cut: The CEO said the spread between weighted average loan and deposit rates improved about 10 basis points after the mid-September Federal Reserve rate cut. Source
• Business loans up $160.5 million: Business loans reached $3.06 billion, up $160.5 million from June and $409.1 million from a year earlier. Business loans include commercial and industrial and owner-occupied commercial real estate loans. Source
• Non-performing loans rose to $72.1 million: Non-performing loans were $72.1 million, up from $53.2 million in June and $49.5 million a year earlier. Non-owner-occupied commercial real estate accounted for $48.0 million. Source
• Criticized assets expected to be lower: Management expects the Form 10-Q to report criticized assets at September 30 below the June 30 level. Source
• CET1 ratio rose to 11.53%: The CET1 ratio was 11.53%, up from 11.25% in June and 10.16% a year earlier. The September 30 ratios are preliminary pending regulatory filings. Source

“Third quarter results were marked by strong growth in core deposits and business loans, good progress in diversifying our balance sheet, and continued net interest margin expansion.”

Stuart H. Lubow, President and Chief Executive Officer

What changed from last quarter

• New: Five senior vice presidents were hired into commercial lending, four from Webster Bank and one from BHI USA. Source
• New: A new branch opened on Madison Avenue in Manhattan during the quarter. Source

Earnings and profitability

• Diluted EPS of $0.59: Net income available to common stockholders was $25.8 million, or $0.59 per diluted share, versus $27.9 million or $0.64 in the second quarter, and $11.5 million or $0.29 a year earlier. Source
• Pre-tax pre-provision revenue up 8%: Pre-tax pre-provision net revenue was $53.4 million, up 8% from the prior quarter and 79% from the year-earlier quarter, according to the CEO. Source
• Adjusted EPS excluded certain items: Adjusted EPS was $0.61 and adjusted net income was $26.6 million. The adjustments include a $1.1 million loss on sale of securities and other assets. Source
• Tax expense rose to $12.4 million: Income tax expense was $12.4 million, up from $10.5 million in the second quarter, and the effective tax rate was 31.0% against 26.1%. Source

Net interest margin and spread

• Net interest margin rose to 3.01%: Net interest margin was 3.01%, up from 2.98% in the second quarter and 2.50% a year earlier. Net interest income was $103.4 million, against $98.1 million in the second quarter. Source
• Loan-deposit spread widened after cut: The CEO said the spread between weighted average loan and deposit rates improved about 10 basis points after the mid-September Federal Reserve rate cut. Source
• Loan repricing runs through 2027: Management said a significant loan repricing will run through 2027, and that core deposit and business loan growth will benefit net interest margin over time. Source

“Finally, we continue to execute on our growth plan and take advantage of the target-rich environment to hire talented individuals.”

Stuart H. Lubow, President and Chief Executive Officer

Loans and business lending

• Business loans up $160.5 million: Business loans reached $3.06 billion, up $160.5 million from June and $409.1 million from a year earlier. Business loans include commercial and industrial and owner-occupied commercial real estate loans. Source
• Weighted average loan rate edged up: The ending weighted average rate on total loans was 5.37%, up 3 basis points from 5.34% in June. Source
• Originations rose with new lines: Originations including new lines of credit were $535.6 million, against $450.5 million in the second quarter and $314.5 million a year earlier. Excluding new lines, originations were $170.6 million. Source

Deposits and funding

• Core deposits up $971.9 million: Core deposits, excluding brokered and time deposits, grew $971.9 million year over year. Total deposits including mortgage escrow reached $12.06 billion. Source
• Loan-to-deposit ratio fell to 88.9%: The loan-to-deposit ratio fell to 88.9% from 92.6%. Brokered deposits held at $200.0 million, and FHLB advances were unchanged at $508.0 million. Source
• Non-interest-bearing share rose: Average non-interest-bearing deposits were 29.9% of average total deposits, up from 29.6% in the prior quarter. Source
• Total deposits up $644.3 million: Total deposits rose $644.3 million year over year. Brokered deposits were $200.0 million, down from $662.2 million a year earlier. Source

Expenses and efficiency

• Expenses rose on hiring: Non-interest expense was $62.2 million, up from $60.3 million. Adjusted expense was $62.0 million. The CEO linked the rise to significant hires for the growth plan. Source
• Efficiency ratio improved to 53.8%: The efficiency ratio was 53.8%, down from 55.0% in the second quarter and 65.9% a year earlier. The adjusted efficiency ratio was 53.1%, against 54.7%. Source
• Non-interest income rose to $12.2 million: Non-interest income was $12.2 million, up from $11.6 million in the second quarter and $7.6 million a year earlier. Source
• Expense-to-assets ratio edged up: Non-interest expense to average assets was 1.73%, up from 1.72% in the second quarter and 1.71% a year earlier. Source

Credit quality

• Non-performing loans rose to $72.1 million: Non-performing loans were $72.1 million, up from $53.2 million in June and $49.5 million a year earlier. Non-owner-occupied commercial real estate accounted for $48.0 million. Source
• Criticized assets expected to be lower: Management expects the Form 10-Q to report criticized assets at September 30 below the June 30 level. Source
• Provision rose to $13.3 million: The credit loss provision was $13.3 million, up from $9.2 million in the second quarter and $11.6 million a year earlier. Net charge-offs were $12.6 million, or 0.47% of average loans. Source

Capital and shareholder returns

• CET1 ratio rose to 11.53%: The CET1 ratio was 11.53%, up from 11.25% in June and 10.16% a year earlier. The September 30 ratios are preliminary pending regulatory filings. Source
• Book value per share rose to $30.44: Book value per common share was $30.44, up from $29.95. Tangible common book value per share rose to $26.81 from $26.32, and stockholders’ equity reached $1.45 billion. Source
• Quarterly dividend held at $0.25: Dividends per common share were $0.25, the same as in the second quarter. The dividend payout ratio was 42.37%. Source

Hiring and branch expansion

• Manhattan branch opened this quarter: A new branch opened on Madison Avenue in Manhattan during the quarter. Source
• Senior commercial lending hires: Five senior vice presidents joined commercial lending, four from Webster Bank and one from BHI USA, as part of the growth plan. Source
• Branch managers hired from First National: Two branch managers were hired, both previously with First National Bank of Long Island. Source

Coming up, as management said on 23 October 2025

• Full-quarter spread benefit in Q4: Management expects the full quarter of spread improvement to drive continued net interest margin expansion in the fourth quarter. Source
• Two branches planned for early 2026: Locations in Lakewood, New Jersey and on the North Shore of Long Island are expected to open in early 2026. Source

Risks management discussed

• Financial: Non-performing loans increased to $72.1 million from $53.2 million in the prior quarter. Source
• Financial: The credit loss provision and net charge-offs both increased, with net charge-offs at 0.47% of average loans against 0.20% in June. Source
• Operational: Non-interest expense increased with significant hiring and branch build-out, which management linked to the growth plan. Source

Earlier plans management reported on

• Met: The prior release planned a Manhattan branch for the fourth quarter of 2025. The current release reports that a Manhattan branch has opened.
• Not stated: The prior release said regulatory approvals were received and the Lakewood branch opening was planned for early 2026.
• Not stated: The prior release expected a Federal Reserve rate cut to lower deposit costs and drive net interest margin expansion. The current release reports a spread improvement after the September cut.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.