HAUPPAUGE, N.Y. - Dime Community Bancshares, Inc. (NASDAQ:DCOM), the parent company of Dime Community Bank, reported a steady performance for the first quarter of 2024 with an EPS of $0.38, marginally surpassing the analyst consensus of $0.37.
This figure represents a slight increase from the $0.37 EPS reported in the previous quarter and a notable decrease from the $0.92 EPS reported in the first quarter of the previous year.
President and CEO Stuart H. Lubow highlighted the company's commitment to executing its growth plan, focusing on core deposit growth and diversifying the balance sheet. Lubow noted the recruitment of 34 revenue-producing bankers, which contributed to a 19% annualized growth in core deposits compared to the end of the previous year. This growth in deposits has allowed Dime to reduce its Federal Home Loan Bank borrowing position by 41%.
The first quarter of 2024 saw net interest income at $71.5 million, a decrease from $74.1 million in the prior quarter and down from $85.8 million in the same quarter last year. The Net Interest Margin (NIM) for March was reported at 2.23%, slightly above the first quarter's NIM of 2.21%. The company also reported stable asset quality with non-performing assets and loans 90 days past due at just 0.26% of total assets as of March 31, 2024.
Non-interest expenses were well managed, showing a 3% decline compared to the linked quarter, and the company's capital ratios continued to build, with the Tier 1 Risk-Based Capital Ratio increasing to 11.11% and the Common Equity Tier 1 Ratio increasing to 10.00%.
Despite the positive earnings report, Dime Community Bancshares' stock remained unchanged, indicating a neutral market response. This static movement suggests that while the earnings were close to in-line with expectations, investors are waiting for further indicators of the company's performance and future growth potential.
In his comments, CEO Lubow expressed confidence in the company's direction, stating, "Our results were characterized by stable asset quality, increasing capital ratios, a reduction in our wholesale funding, and prudent expense management." He also emphasized the importance of the new Healthcare vertical and the flexibility provided by the strong deposit growth for future lending opportunities.
Investors will be watching closely to see if Dime Community Bancshares can maintain its momentum in core deposit growth and whether the investments in talent and technology will continue to yield dividends in the coming quarters.
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