Dime Community Bancshares' Q2 net income rises to $27.9 mln

Overview

• Dime Community Bancshares Q2 net income rises to $27.9 mln, EPS $0.64

• Core deposits grow $1.21 bln yr/yr, supporting strategic growth plan

• Net interest margin improves to 2.98% in Q2, driven by loan repricing

Outlook

• Dime expects NIM growth from loan repricing starting H2 2025

• Company anticipates reduced deposit costs if Fed cuts rates

• Dime sees core deposit growth benefiting NIM over time

• Company expects business loan growth to support NIM expansion

Result Drivers

• CORE DEPOSIT GROWTH - Core deposits increased by $1.21 bln yr/yr, supporting strategic growth plan

• BUSINESS LOAN EXPANSION - Business loans grew $113.3 mln on a linked qtr basis, contributing to net interest margin improvement

• LOAN REPRICING - Net interest margin improved to 2.98% due to loan repricing opportunities, per CEO Stuart Lubow

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Dime Community Bancshares Inc is $36.00, about 20.7% above its July 23 closing price of $28.53

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX6twwjq