On July 23, 2024, Dime Community Bancshares Inc (DCOM, Financial) released its 8-K filing for the second quarter of 2024. The company reported net income available to common stockholders of $16.7 million, or $0.43 per diluted common share, surpassing the analyst estimate of $0.38 per share. Revenue for the quarter was $75.5 million, also exceeding the estimated $73.45 million.
Dime Community Bancshares Inc operates as a holding company, gathering deposits from customers within its market area and via the internet. It invests in multifamily residential, commercial real estate, commercial and industrial (C&I) loans, and one-to-four family residential real estate loans, as well as mortgage-backed securities, obligations of the U.S. government and government-sponsored enterprises (GSEs), and corporate debt and equity securities.
Performance and Challenges
For the quarter ended June 30, 2024, Dime Community Bancshares Inc reported net income of $16.7 million, or $0.43 per diluted common share, compared to $15.9 million, or $0.41 per diluted common share, for the previous quarter. This represents a 5% increase in earnings per share versus the prior quarter. However, the company faced a decline compared to the same quarter last year, where it reported $25.7 million, or $0.66 per diluted common share.
Stuart H. Lubow, President and CEO, commented, “We continue to execute on our growth plan, which prioritizes core deposit growth and diversifying our balance sheet. The deposit-gathering Groups in our Private and Commercial Bank have grown their portfolio to approximately $1 billion. The growth in low-cost core deposits drove a significant expansion in our Net Interest Margin for the second quarter.”
Financial Achievements
Net interest income for the second quarter of 2024 was $75.5 million, compared to $71.5 million for the first quarter of 2024 and $80.2 million for the second quarter of 2023. The net interest margin (NIM) expanded by 20 basis points to 2.41% from 2.21% in the previous quarter, driven by core deposit growth.
| Quarter | Net Interest Income | NIM |
|---|---|---|
| Q2 2024 | $75.5 million | 2.41% |
| Q1 2024 | $71.5 million | 2.21% |
| Q2 2023 | $80.2 million | 2.50% |
Income Statement Highlights
Non-interest income was $11.8 million during the second quarter of 2024, up from $10.5 million in the first quarter of 2024. Non-interest expense increased to $55.7 million from $52.5 million in the previous quarter, reflecting investments in the company's Private and Commercial Bank and Middle Market C&I Lending operations.
Balance Sheet and Cash Flow
Total deposits at the end of the quarter were $11.03 billion, compared to $10.90 billion at the end of the previous quarter. The company raised $74.8 million from a subordinated debt offering, bolstering its total capital ratio to 14.5%. Federal Home Loan Bank advances decreased to $633.0 million from $773.0 million in the previous quarter.
Credit Quality and Capital Management
Non-performing loans decreased by 29% on a linked quarter basis to $24.8 million. The credit loss provision for the quarter was $5.6 million, compared to $5.2 million in the previous quarter. The company's regulatory capital ratios remained in excess of all applicable regulatory requirements.
Mr. Lubow added, “Having fortified our capital base with the issuance of subordinated debt, we are well positioned to support all of our customers’ needs and capitalize on the significant disruption in our marketplace caused by various bank failures and mergers.”
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Dime Community Bancshares Inc for further details.
