Yahoo Finance Dime Community Bancshares Inc (DCOM) Q1 2024 Earnings Call Transcript Highlights: Key Financial ...
Core Deposits Growth: Increased by 19% annually.
FHLB Borrowings Reduction: Decreased by 41%.
Net Interest Margin (NIM): Expanded to 2.23% in March.
Earnings Per Share (EPS): Reported at $0.41 per share.
Core Cash Operating Expenses: $51.7 million, down 3% from previous quarter.
Noninterest Income: $10.5 million, including gains from sale leaseback of a branch.
Loan Loss Provision: $5 million for the quarter.
Common Equity Tier 1 Ratio: Improved to 10%.
Total Capital Ratio: Reported at 13.8%, 13% including AOCI.
2024 Expense Guidance: Increased to $214 million to $216 million.
Loan Portfolio Growth: Expected to be up in the low single digits year over year.
Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you size up the deposit potential and any specialties with the new hires from Signature? A: Avinash Reddy, CFO, noted that the new teams managed several billion dollars of deposits and fit well with Dime's community commercial banking model. Stuart Lubow, CEO, added that the groups are expected to exceed last year's $600 million deposits due to their size and improvements in Dime's technology and operations.
Q: Regarding the new expense guide, how many more hirings can we expect this year? A: Stuart Lubow, CEO, mentioned ongoing conversations with several teams and anticipated announcing at least one more team soon. He highlighted the significant market disruption in the New York area, providing unique hiring opportunities.
Q: With the new deposit teams, what is the deposit level needed to hit breakeven in Q4? A: Avinash Reddy, CFO, stated that the new teams should reach around $350 million to $400 million in deposits by Q4 to achieve breakeven, emphasizing that these groups are expected to be revenue-generating and accretive to earnings from 2025.
Q: Can you discuss the current comfort around the reserve level and expectations for a methodical build? A: Avinash Reddy, CFO, expressed comfort with the current reserve level at 71 basis points, indicating confidence in the bank's earnings and reserve adequacy.
Q: What is the total size of the loan pipeline, and how are you thinking about it? A: Stuart Lubow, CEO, reported a robust loan pipeline of $1.1 billion with an average yield of 8.14%, highlighting active sectors like healthcare and owner-occupied commercial real estate. He also noted $206 million in approved loans expected to close within 30 to 90 days.
Q: How will the recent changes in the New York multifamily space impact the market and Dime's management of its exposure? A: Stuart Lubow, CEO, stated it's too early to determine the full impact of the new regulations but suggested that the outcome seems to be a net positive. He emphasized ongoing monitoring and management of the bank's multifamily loan portfolio.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
