Dime Commercial Bancshares, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 20 October 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Earnings and returns rose: Net income available to common stockholders was $39.7 million, or $0.90 diluted EPS, up from $0.75 in the prior quarter and $0.59 a year earlier. Source
• Net interest margin widened: The net interest margin rose to 3.35% from 3.28% in the prior quarter and 3.01% a year earlier. Source
• Business loans drove loan growth: Business loans reached $3.99 billion. Multifamily balances fell to $2.95 billion from $3.11 billion over the same quarter. Source
• Deposits rose year over year: Total deposits including mortgage escrow reached $13.14 billion, up from $12.68 billion in the prior quarter. Core deposits rose $1.18 billion year over year. Source
• Non-performing assets rose: Multifamily non-performing loans rose to $47.8 million from $26.9 million. Non-performing assets were 0.64% of total assets, against 0.46%. Source
• Efficiency ratio improved: The efficiency ratio was 48.4%, against 51.2% in the second quarter and 53.8% a year earlier. The adjusted ratio was 47.8%. Source
• Share buybacks began this quarter: The company repurchased 298,003 shares, equal to 0.7% of shares outstanding at the start of the period, at a weighted-average price of $40.64. Source
• Announced intent to acquire ES Bancshares: Management described the proposed acquisition of ES Bancshares as another logical step in its growth strategy. Source

“Dime continues to execute on our growth plan and delivered another quarter of record revenue.”

Stuart H. Lubow, President and Chief Executive Officer

Guidance

What changed from last quarter

• New: Announced intention to acquire ES Bancshares, Inc., parent of Empire State Bank in Staten Island. The release gives no closing date. Source
• New: Launched a dedicated affordable housing group, led by Michael Camoia, SVP, Head of Affordable Housing. Source

Results and growth drivers

• Earnings and returns rose: Net income available to common stockholders was $39.7 million, or $0.90 diluted EPS, up from $0.75 in the prior quarter and $0.59 a year earlier. Source
• Adjusted EPS and returns rose: Adjusted diluted EPS was $0.91, against $0.79 in the prior quarter. Return on average equity was 10.77%, against 9.15%. Source
• Non-interest income rose sharply: Non-interest income reached $14.1 million, up from $11.3 million, with a $757 thousand gain on loans and other assets in the quarter. Source

Margin and net interest income

• Net interest margin widened: The net interest margin rose to 3.35% from 3.28% in the prior quarter and 3.01% a year earlier. Source
• Loan yield rose to 5.50%: The ending weighted average rate on the total loan portfolio was 5.50% at September 30, 2026. Source
• Net interest income increased: Net interest income was $121.2 million, versus $115.2 million in the prior quarter and $103.4 million a year earlier. Source

“We believe this highly liquid balance sheet uniquely positions Dime versus our local peers.”

Stuart H. Lubow, President and Chief Executive Officer

Loans and originations

• Business loans drove loan growth: Business loans reached $3.99 billion. Multifamily balances fell to $2.95 billion from $3.11 billion over the same quarter. Source
• Originations rose in the quarter: Originations excluding new lines of credit were $374.8 million, against $255.3 million in the second quarter. Including new lines, they were $745.8 million. Source
• No PPP loans outstanding: No Paycheck Protection Program loans were outstanding at the end of either the third or second quarter of 2026. Source

Deposits, liquidity and funding

• Deposits rose year over year: Total deposits including mortgage escrow reached $13.14 billion, up from $12.68 billion in the prior quarter. Core deposits rose $1.18 billion year over year. Source
• Non-interest-bearing share increased: Average non-interest-bearing deposits were 32.1% of average total deposits, up from 31.0% in the second quarter. Source
• FHLB advances lowered: FHLB advances fell to $335.0 million from $385.0 million. Brokered deposits held at $200.0 million. Source

Credit quality

• Non-performing assets rose: Multifamily non-performing loans rose to $47.8 million from $26.9 million. Non-performing assets were 0.64% of total assets, against 0.46%. Source
• Provision held near prior quarter: The provision was $13.8 million, against $13.9 million in the second quarter and $13.3 million a year earlier. The allowance was 0.99% of total loans. Source
• Charge-off rate unchanged: Net loan charge-offs were $9.7 million, or 0.36% of average loans, the same rate as in the second quarter. Source

Costs and efficiency

• Efficiency ratio improved: The efficiency ratio was 48.4%, against 51.2% in the second quarter and 53.8% a year earlier. The adjusted ratio was 47.8%. Source
• Non-interest expense edged up: Adjusted non-interest expense was $64.3 million, with $974 thousand of severance expense. Salaries and employee benefits were $39.3 million. Source
• Tax rate fell: The effective tax rate was 25.8%, against 27.3% in the second quarter and 31.0% a year earlier. Income tax expense was $14.5 million. Source

Capital, cash and shareholder returns

• Share buybacks began this quarter: The company repurchased 298,003 shares, equal to 0.7% of shares outstanding at the start of the period, at a weighted-average price of $40.64. Source
• Capital ratios slightly lower: The preliminary CET1 ratio was 11.75%, against 11.99%. Total risk-based capital was 15.96% and the Tier 1 leverage ratio 9.40%. Source
• Equity and book value rose: Book value per share was $32.10, up from $31.79. Tangible common book value per share was $28.49, up from $28.21. Source
• Dividend held at $0.25: The dividend was unchanged from the prior quarter. The dividend payout ratio was 27.78%. Source

Acquisition and affordable housing

• Announced intent to acquire ES Bancshares: Management described the proposed acquisition of ES Bancshares as another logical step in its growth strategy. Source
• Affordable housing group launched: A dedicated group now covers affordable housing. Michael Camoia, SVP, Head of Affordable Housing, leads it. Source
• Organic growth cited for efficiency: Management links the core efficiency ratio decline to its organic growth strategy, describing the core ratio as below 48% for the quarter. Source

Coming up, as management said on 20 October 2026

• ES Bancshares closing not dated: The release announces the intention to acquire ES Bancshares but gives no expected closing date. Source

Risks management discussed

• External: Management says the balance sheet was built with an elevated interest rate environment in mind, holding $2.2 billion of cash. Source
• Regulatory: Management reports the consolidated CRE concentration ratio was actively lowered to 338% from 352%. Source

Earlier plans management reported on

• Not stated: The prior release said buybacks would start in the third quarter. This release reports 298,003 shares repurchased in the quarter, without a stated status.
• Not stated: The prior release said a loan repricing would continue through 2027. The current release repeats this timing.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.