Dime Community Bancshares’s Q4 Earnings Call: Our Top 5 Analyst Questions

What Happened?

Shares of regional bank Dime Community Bancshares jumped 4.7% in the afternoon session after the company reported strong fourth-quarter results that surpassed Wall Street's expectations and showed significant growth. 

The bank announced record quarterly revenue of $124 million, and its adjusted earnings per share (EPS) came in at $0.79, which was higher than the consensus estimate of $0.70. This result also marked an 88% increase from the previous year and a 15% rise from the third quarter of 2025. The positive performance was driven by substantial growth in core deposits, which increased by about $800 million, and business loans, which grew by over $175 million compared to the previous quarter. Following the impressive results, analysts at firms including Keefe, Bruyette & Woods raised their price targets on the stock.

What Is The Market Telling Us

Dime Community Bancshares’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 22 hours ago when the stock gained 9.8% on the news that the company reported strong fourth-quarter 2025 results that beat Wall Street's expectations for both revenue and earnings. 

The bank posted quarterly revenue of $123.8 million, representing a 24.4% increase from the same period in the previous year. Adjusted earnings per share rose to $0.79, an 88% jump year-over-year, also surpassing analysts' forecasts. A key driver for the positive results was net interest income, which grew 23.3% to $112.3 million, topping consensus estimates. Furthermore, the company demonstrated operational strength with an efficiency ratio of 52.6%, beating expectations.

Dime Community Bancshares is up 15.5% since the beginning of the year, and at $34.50 per share, has set a new 52-week high. Investors who bought $1,000 worth of Dime Community Bancshares’s shares 5 years ago would now be looking at an investment worth $1,265.

Regional bank Dime Community Bancshares reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 24.5% year on year to $123.8 million. Its non-GAAP profit of $0.79 per share was 10.6% above analysts’ consensus estimates.

Dime Community Bancshares (DCOM) Q4 CY2025 Highlights:

• Revenue: $123.8 million vs analyst estimates of $117.8 million (24.5% year-on-year growth, 5.2% beat)
• Adjusted EPS: $0.79 vs analyst estimates of $0.71 (10.6% beat)
• Adjusted Operating Income: $50.38 million vs analyst estimates of $55.06 million (40.7% margin, 8.5% miss)
• Market Capitalization: $1.44 billion

StockStory’s Take

Dime Community Bancshares delivered a positive Q4, with management attributing the company’s outperformance to strong organic growth across its commercial banking verticals and steady deposit inflows. CEO Stuart Lubow emphasized that all growth was generated organically, without M&A-related boosts, and highlighted robust business loan expansion fueled by new hires and industry-focused teams. The company’s focus on core deposit growth and cost control helped improve its net interest margin, while maintaining best-in-class capital ratios. Lubow noted, “Our core earnings power continues its upward trajectory,” crediting the team’s efforts in executing the bank’s strategic plan.

Looking ahead, Dime Community Bancshares’ management is focused on loan repricing opportunities, further diversification of its loan portfolio, and continued deposit growth through team expansion and new branch openings. CFO Avinash Reddy explained that a significant portion of the loan portfolio is set to reprice over the next two years, which is expected to support margin expansion and core earnings. Management also expects operating efficiency to improve as revenues outpace expenses, with Lubow stating, “We expect to operate at a sub-50% efficiency ratio as we grow revenues faster than expenses.”

Key Insights from Management’s Remarks

Management credited Q4’s performance to disciplined deposit gathering, targeted commercial loan growth, and an expanding team of specialized bankers.

• Commercial banking expansion: The addition of new industry verticals—including healthcare, fund finance, and lender finance—drove most of the year’s business loan growth, with healthcare accounting for a substantial portion.
• Deposit franchise strength: Deposit growth was broad-based across commercial, private banking, retail, and municipal channels, with noninterest-bearing deposits rising to 31% of the mix, a focus area for cost management.
• Organic strategy focus: Dime continued to avoid M&A and instead relied on hiring experienced banking teams to fuel organic growth, reinforcing its position as a preferred employer in the New York Metro Area.
• Balance sheet and liquidity: The bank maintained a significant liquidity position and strong capital ratios, supporting flexibility in lending and the ability to pursue growth opportunities without overleveraging.
• CRE concentration management: Management continued efforts to reduce commercial real estate (CRE) concentration by shifting toward business loans and exiting certain transactional CRE exposures, aiming for a more diversified and resilient loan book.

Drivers of Future Performance

Management’s outlook for 2026 centers on loan repricing, deposit growth, and continued operating efficiency as key themes shaping guidance.

• Loan repricing tailwinds: A large portion of adjustable and fixed-rate loans are set to reprice at higher rates in 2026 and 2027, which management believes will boost net interest margin and earnings power over time.
• Deposit mix and cost focus: Continued growth in low-cost, noninterest-bearing deposits is expected to help offset funding costs and support margin expansion, while new branch openings and team hires are projected to sustain deposit inflows.
• CRE and loan portfolio shift: Further reductions in CRE exposures and increased focus on business lending should result in a more diversified, lower-risk loan book, with management targeting mid-single-digit balance sheet growth in the second half of the year.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will monitor (1) the pace and impact of loan repricing on net interest margin, (2) sustained growth in core deposits and the mix of noninterest-bearing accounts, and (3) progress in reducing commercial real estate concentration while scaling up business lending. Execution on new team integrations and branch openings will also be key benchmarks for ongoing performance.

Dime Community Bancshares currently trades at $32.73, up from $30.12 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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What Happened?

Shares of regional bank Dime Community Bancshares jumped 9.8% in the afternoon session after the company reported strong fourth-quarter 2025 results that beat Wall Street's expectations for both revenue and earnings. 

The bank posted quarterly revenue of $123.8 million, representing a 24.4% increase from the same period in the previous year. Adjusted earnings per share rose to $0.79, an 88% jump year-over-year, also surpassing analysts' forecasts. A key driver for the positive results was net interest income, which grew 23.3% to $112.3 million, topping consensus estimates. Furthermore, the company demonstrated operational strength with an efficiency ratio of 52.6%, beating expectations.

What Is The Market Telling Us

Dime Community Bancshares’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 7.2% on the news that the company reported third-quarter earnings that missed Wall Street's profit expectations. 

The regional lender posted adjusted earnings per share of $0.61, which fell short of analyst estimates of $0.69. While revenue for the quarter came in ahead of expectations at $115.6 million, up 32% from the previous year, and net interest income also topped forecasts, investors appeared to be more concerned with the bottom-line miss. The negative reaction suggests that the market weighed the earnings shortfall more heavily than the strong top-line performance, leading to a sell-off in the shares.

Dime Community Bancshares is up 10.2% since the beginning of the year, and at $32.90 per share, it is trading close to its 52-week high of $33.89 from February 2025. Investors who bought $1,000 worth of Dime Community Bancshares’s shares 5 years ago would now be looking at an investment worth $1,231.

Regional bank Dime Community Bancshares reported Q4 CY2025 results topping the market’s revenue expectations, with sales up 24.4% year on year to $123.8 million. Its non-GAAP profit of $0.79 per share was 10.6% above analysts’ consensus estimates.

Dime Community Bancshares (DCOM) Q4 CY2025 Highlights:

• Net Interest Income: $112.3 million vs analyst estimates of $106.8 million (23.3% year-on-year growth, 5.2% beat)
• Net Interest Margin: 3.1% vs analyst estimates of 3.1% (in line)
• Revenue: $123.8 million vs analyst estimates of $117.8 million (24.4% year-on-year growth, 5.1% beat)
• Efficiency Ratio: 52.6% vs analyst estimates of 53.4% (80 basis point beat)
• Adjusted EPS: $0.79 vs analyst estimates of $0.71 (10.6% beat)
• Tangible Book Value per Share: $27.37 vs analyst estimates of $27.29 (6.6% year-on-year growth, in line)
• Market Capitalization: $1.32 billion

Company Overview

With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Thankfully, Dime Community Bancshares’s 17.7% annualized revenue growth over the last five years was excellent. Its growth beat the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Dime Community Bancshares’s annualized revenue growth of 13.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, Dime Community Bancshares reported robust year-on-year revenue growth of 24.4%, and its $123.8 million of revenue topped Wall Street estimates by 5.1%.

Net interest income made up 90.3% of the company’s total revenue during the last five years, meaning Dime Community Bancshares lives and dies by its lending activities because non-interest income barely moves the needle.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.

Dime Community Bancshares’s TBVPS grew at a sluggish 1.9% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 5.8% annually over the last two years from $24.44 to $27.37 per share.

Over the next 12 months, Consensus estimates call for Dime Community Bancshares’s TBVPS to grow by 8.9% to $29.82, paltry growth rate.

Key Takeaways from Dime Community Bancshares’s Q4 Results

We were impressed by how significantly Dime Community Bancshares blew past analysts’ net interest income expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock remained flat at $30.12 immediately following the results.

Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).