Regional bank Dime Community Bancshares (NASDAQ: DCOM) 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.

Is now the time to buy DCOM? Find out in our full research report (it’s free for active Edge members).

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).

Stocks That Trumped Tariffs

Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.