Dime Community Bancshares Reports $29.1 Million Net Income for Fiscal Year 2024

Dime Community Bancshares, Inc. reported a net income of $29.1 million for the fiscal year ending December 31, 2024, a significant decrease from $96.1 million in 2023 and $152.6 million in 2022. The decline in profitability was attributed to a $40.2 million drop in non-interest income, a $33.3 million increase in the provision for credit losses, and a $13.4 million rise in non-interest expenses. However, net interest income saw a slight increase of $1.5 million, totaling $318.1 million for the year. The company's effective tax rate rose to 43.5% in 2024, compared to 29.8% in 2023, primarily due to a taxable gain related to the surrender of legacy Bank-Owned Life Insurance (BOLI) assets.

In terms of operational changes, Dime Community Bancshares expanded its loan portfolio, which increased by $81.5 million to $10.78 billion. The company reported a total of $570.9 million in loan originations during the year. The composition of the loan portfolio remained heavily weighted towards multifamily residential and non-owner-occupied commercial real estate loans, which together accounted for 65% of total loans. The allowance for credit losses increased to $88.8 million, reflecting heightened credit risk in the current economic environment.

Dime Community Bancshares also made strategic moves to enhance its market position, including a public offering of 4,492,187 shares of common stock, which raised approximately $135.8 million in net proceeds. This capital infusion is expected to support the company's growth initiatives and strengthen its balance sheet. The company’s total assets rose to $14.35 billion, up from $13.64 billion in the previous year, driven by an increase in cash and due from banks, as well as a rise in the loan portfolio.

The bank's operational metrics showed a notable increase in deposits, which rose by $1.16 billion to $11.63 billion, with core deposits growing significantly. The bank's employee headcount stood at 887 full-time equivalent employees as of December 31, 2024, reflecting ongoing investments in its workforce to support business growth. The company continues to focus on enhancing its customer relationships and expanding its geographic footprint across Long Island and the New York City boroughs.

Looking ahead, Dime Community Bancshares expressed cautious optimism about its future performance, emphasizing its commitment to maintaining strong asset quality and managing credit risk effectively. The company plans to continue leveraging its market position to drive growth while navigating the challenges posed by fluctuating interest rates and economic conditions. The management remains focused on executing its strategic initiatives to enhance shareholder value and improve financial performance in the coming years.