Key Points – Record Q2 results: Dime Community Bancshares posted record second-quarter revenue of $126 million, with core EPS up 23% year over year to $0.79.
Net interest margin expanded to 3.28%, marking the bank’s ninth straight quarter of margin growth. – Business lending is driving growth: Business loans grew 26% year over year, and management said the pipeline remains strong at about $1.4 billion
The bank expects low- to mid-single-digit loan growth in the second half while continuing to diversify away from multifamily exposure. – Credit, capital and buybacks: Credit trends were mixed but manageable, with nonperforming assets down 28% sequentially and the allowance to loans rising to 98 basis points. Capital levels improved, and management said it expects to resume share repurchases in the third quarter. – Time To Buy Regional Banks? Insider Buying Says Yes Dime Community Bancshares (NASDAQ:DCOM) reported record second-quarter revenue and said it expects to resume share repurchases in the third quarter, as management pointed to continued net interest margin expansion, growth in business lending and a lower commercial real estate concentration.
President and CEO Stuart Lubow said revenue for the quarter was $126 million, a record for the company, while core earnings per share rose 23% from the prior year. Lubow said net interest margin increased seven basis points from the prior quarter as the bank lowered deposit costs and improved loan yields. “Dime has differentiated our franchise from our local competitors as it relates to our organic growth trajectory, our ability to attract talented bankers, the quality of our deposit base, the progress we made in diversifying our balance sheet, and our improving NIM and profitability,” Lubow said. Margin Expansion and Earnings Power COO and CFO Avi Reddy said core EPS for the quarter was $0.79 per share.