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EarningsQ3 2026 Earnings Report
DCOM Q3 2026 EPS Results
Actual EPS$0.91
Consensus EPS$0.86
Beat/MissBeat by +$0.05
One Year Ago EPS$0.61
DCOM Q3 2026 Revenue Results
Actual Revenue$196.85M
Expected Revenue$131.16M
Beat/MissBeat by +$65.69M
YoY Revenue Growth+5.24%
Earnings Announcement Details
QuarterQ3 2026
Date10/20/2026
TimeBefore Open
Conference CallTuesday, October 20, 2026
DCOM Upcoming Earnings
Dime Community Bancshares's next earnings date is estimated for January 22, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DCOM Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported record revenue, 53% year-over-year EPS growth, 10 consecutive quarters of NIM expansion, 30% business loan growth, strong deposit generation, improved efficiency, reduced CRE concentration, and attractive economics for the Empire State Bank acquisition. The main challenges were higher NPAs and provisions, continued multifamily runoff, declining consumer deposits, potential deposit-cost increases from additional rate hikes, and transaction costs and capital usage related to the acquisition. The stated growth, profitability, and credit trends significantly outweighed the disclosed challenges.Company Guidance
Record Quarterly Revenue and Strong EPS Growth
Third-quarter revenue was $135 million, a record for Dime, while EPS increased 53% versus the prior year. Core EPS was $0.91 per share.
Continued Net Interest Margin Expansion
Reported third-quarter NIM increased to 3.35%, up 7 basis points from the linked quarter. Excluding purchase accounting and prepayment fees, run-rate NIM was approximately 3.32%, compared with 3.22% in the prior quarter. NIM has increased for 10 consecutive quarters.
Higher Profitability and Operating Efficiency
Third-quarter ROA was 1.10%, core pre-tax pre-provision net revenue was $70 million, or 106 basis points of average assets, and the core efficiency ratio was below 48%. Management is focused on reaching ROA in excess of 1.31% by the back half of 2027 and reducing the efficiency ratio to 45% or lower over time.
Strong Business Loan Growth and Pipeline
Business loans grew by approximately $929 million year over year, representing a 30% increase. The loan pipeline was approximately $1.4 billion with a weighted average rate of approximately 6.5%. Quarterly business loan growth increased from $125 million in Q1 to $275 million in Q2 and $350 million in Q3.
Diversified Commercial Loan Growth
Traditional C&I lending led year-to-date business loan growth at approximately 25%, while new specialty finance businesses grew approximately 20%. About one-third of quarterly growth came from C&I, followed by fund finance and other specialty groups. Management expects overall loan growth of low to mid single digits over the next 6 to 9 months.
Deposit Growth and Low-Cost Funding Base
Core deposits grew by $1.1 billion year over year. Non-interest-bearing DDA exceeded 32% and continued to grow, while business deposits represented approximately 70% to 75% of the deposit base. More than 6,000 accounts had been opened during the year, and management said cost of deposits remained well controlled at approximately 1.68% at quarter end and 1.72% plus or minus currently.
Favorable Loan Repricing Opportunity
Approximately $2 billion of remaining fixed-rate loans were at rates around 4.40%, leaving approximately 200 basis points of potential improvement. Management expects loan repricing and the September rate hike to drive continued NIM expansion in the fourth quarter.
Raised Long-Term NIM Outlook
Management increased its outlook and said there was a clearer line of sight to NIM above 3.60% on the existing balance sheet by the end of 2023, compared with prior guidance for a run-rate quarterly NIM above 3.50% by the end of 2023. Management also stated that deploying the cash position could imply NIM of approximately 3.80% to 3.90% if the loan-to-deposit ratio moved closer to 90% to 95%.
Large Cash Position Supports Growth
Cash exceeded $2 billion at quarter end and represented approximately 14% of total assets. Management described the cash position as a competitive advantage that supports lending opportunities and helps create a sustainable NIM that is less subject to short-term rate movements.
Reduced Commercial Real Estate Concentration
The CRE concentration ratio was reduced to 338%, below management's 350% target, while the company repurchased approximately 1% of shares outstanding. Management said robust C&I growth and a CRE ratio below 350% differentiated Dime from local banks operating between 375% and 450%.
Empire State Bank Acquisition Announced
Dime signed a definitive agreement to acquire Empire State Bank, a $600 million-asset commercial bank headquartered in Staten Island. The transaction expands Dime's presence to all five boroughs of New York City and adds a granular, low-cost deposit base and a low-risk loan portfolio with low LTVs.
Attractive Empire Transaction Economics
The Empire transaction includes a $30 million cash component, representing slightly more than 50% of the consideration mix. Management expects an internal rate of return well in excess of 20%, approximately 3.5% earnings accretion on a run-rate basis after all synergies are realized, and bank-level ROA well in excess of 2%.
Organic Growth Investments Beginning to Contribute
Management said hiring investments made over the past three years were contributing to improved profitability. New teams typically take one year to 18 months to establish themselves, and several recently added teams were beginning to contribute to loan growth. The company also launched a dedicated affordable housing group led by Keith Smith.
Improving Multifamily Credit Metrics
Substandard loans declined 7% on a linked-quarter basis, and loans 30 to 89 days past due also declined. Multifamily substandard loans decreased from approximately $135 million to approximately $125 million, while the pre-2019 multifamily portfolio declined to $275 million and is winding down.
Fourth-Quarter Financial Outlook
Core cash operating expenses excluding intangible amortization are expected to be approximately $66 million in the final quarter of the year, and the expected tax rate for the final quarter of 2026 is 28.5%. Management said fourth-quarter business loan growth would likely be flat to the third quarter, while fourth-quarter deposits were expected to build steadily from the third quarter.
DCOM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed