Dime Community Bancshares Q1 2024 Earnings Up 11%

Dime Community Bancshares, Inc. has reported its first quarter 2024 results, showing an 11% increase in earnings per share compared to the prior quarter. The company’s net income available to common stockholders was $15.9 million for the quarter ended March 31, 2024, compared to $14.5 million for the quarter ended December 31, 2023. Core deposit growth also saw a significant increase, with a 19% annualized growth versus year-end levels.

The company has been executing on its growth plan and has recruited 34 talented revenue-producing bankers in the first quarter of 2024, contributing to a significant momentum in deposit gathering. This allowed Dime to reduce its FHLB (Federal Home Loan Bank) borrowing position by 41% versus year-end levels.

The first quarter of 2024 also saw a reduction in the loan-to-deposit ratio to 98.8%, driven by strong deposit growth, providing the company with more flexibility to take advantage of current lending opportunities in the marketplace.

Highlights for the first quarter of 2024 included stable asset quality, with non-performing assets and loans 90 days past due representing only 0.26% of total assets as of March 31, 2024. Net charge-offs were $739 thousand for the quarter, representing only 0.03% of average loans.

Dime Community Bancshares also announced the addition of a national deposits group, 4 groups in Brooklyn, 1 group in Nassau County, and 1 group in Westchester County, marking the company’s extension into this new attractive banking market.

Net interest income for the first quarter of 2024 was $71.5 million, compared to $74.1 million for the fourth quarter of 2023. The net interest margin for the month of March was reported at 2.23%, above the reported first quarter net interest margin of 2.21%, indicating a positive trajectory for the net interest margin in the upcoming quarters.

The ending weighted average rate on the total loan portfolio was 5.34% at March 31, 2024, showing a 5 basis point increase compared to the ending rate of 5.29% on the total loan portfolio at December 31, 2023.

Total deposits, including mortgage escrow deposits, at March 31, 2024, were $10.90 billion, compared to $10.53 billion at December 31, 2023. The company also saw a reduction in total Federal Home Loan Bank advances to $773.0 million at March 31, 2024, from $1.31 billion at December 31, 2023.

Non-interest income was $10.5 million during the first quarter of 2024, compared to $8.9 million during the fourth quarter of 2023. Total non-interest expense was $52.5 million during the first quarter of 2024, showing a 3% decline versus the linked quarter.

The company’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of March 31, 2024, with all risk-based regulatory capital ratios increasing in the first quarter of 2024.

Dime Community Bancshares, Inc. will conduct a conference call on Tuesday, April 23, 2024, at 9:00 a.m. (ET) to discuss the company’s first quarter 2024 financial performance. Following these announcements, the company's shares moved 2.4%, and are now trading at a price of $19.53. For the full picture, make sure to review Dime Community Bancshares's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.