Dime Community Bancshares Reports Q3 2024 Financial Results, Highlighting Asset Growth and Strategic Developments

Dime Community Bancshares, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting several key performance metrics and strategic developments. As of September 30, 2024, total assets increased to $13.75 billion from $13.64 billion at the end of 2023. Cash and due from banks rose significantly to $626.1 million, up from $457.5 million. Total deposits surged to $11.33 billion, compared to $10.47 billion at year-end 2023, reflecting a robust increase in core deposits, particularly from business accounts.

For the three months ended September 30, 2024, total interest income was $164.2 million, an increase from $157.8 million in the same period of 2023. However, net interest income for the quarter rose modestly to $79.9 million, up from $76.5 million, while net interest income for the nine months decreased to $227.0 million from $242.5 million year-over-year. The provision for credit losses saw a significant rise to $11.6 million in Q3 2024, compared to $1.8 million in Q3 2023, primarily due to increased provisioning for the business loan portfolio.

Net income for the third quarter was $13.3 million, down from $15.0 million in the prior year, with net income for the nine months totaling $49.5 million, a decrease from $79.8 million in 2023. The decline in profitability was attributed to a higher credit loss provision and a decrease in net interest income. Basic and diluted earnings per share for Q3 2024 were both $0.29, down from $0.34 in Q3 2023.

The company also reported a notable change in its securities portfolio, with total securities available-for-sale decreasing to $774.6 million from $886.2 million at year-end 2023. The allowance for credit losses increased to $85.2 million as of September 30, 2024, up from $71.7 million at the end of 2023, reflecting a more cautious approach to credit risk management.

Strategically, Dime Community Bancshares issued $74.8 million in subordinated notes during the year, contributing to an increase in subordinated debt to $272.3 million. The company maintained compliance with all regulatory capital requirements and reported a well-capitalized status. Additionally, the bank's liquidity position improved, with remaining borrowing capacity through the Federal Home Loan Bank of New York increasing to $1.98 billion.

Overall, while Dime Community Bancshares experienced growth in assets and deposits, it faced challenges in profitability and credit provisioning, prompting a strategic focus on risk management and capital adequacy.