Dime Commercial Bancshares, Inc. Reports 53% Year-Over-Year Increase in EPS

Dime expects further net interest margin expansion and net interest income growth, with loan repricing opportunities continuing through 2027.

Rhea-AI Summary

Dime Commercial Bancshares (DCOM) reported third-quarter 2026 diluted earnings per share of $0.90, up 53% from a year earlier. Net income available to common stockholders reached $39.7 million, versus $33.0 million in the second quarter and $25.8 million a year earlier. Quarterly revenue reached a record $135 million. Net interest income rose to $121.2 million, while net interest margin—the spread earned relative to interest-earning assets—increased to 3.35% from 3.28% in the prior quarter.

Deposits reached $13.14 billion, and business loans grew $346.6 million from the prior quarter. Non-performing assets increased to $99.5 million from $69.0 million, while non-interest expense rose to $65.5 million from $64.7 million. Dime also announced its intention to acquire ES Bancshares, parent of Empire State Bank, and repurchased 298,003 shares at a weighted-average price of $40.64.

25 points · 0 major

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Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointDiluted EPS of $0.90 in Q3 2026 increased 53% year over year, versus $0.75 in Q2.
• Moderate pointQuarterly revenue reached a record $135 million in Q3 2026.
• Moderate pointNet interest income of $121.2 million rose from $115.2 million in Q2 and $103.4 million a year earlier.
• Moderate pointNet interest margin reached 3.35%, versus 3.28% in Q2 and 3.01% a year earlier.
• Moderate pointDeposits reached $13.14 billion at September 30, versus $12.68 billion in June and $12.06 billion a year earlier.
• Moderate pointBusiness loans grew $346.6 million quarter over quarter and $929.1 million year over year.
• Moderate pointFederal Home Loan Bank advances fell to $335.0 million, versus $385.0 million in June and $508.0 million a year earlier.
• Moderate pointEfficiency ratio improved to 48.4%, versus 51.2% in Q2 and 53.8% a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Planned acquisition of ES Bancshares, parent of Empire State Bank, would extend Dime’s acquisition activity.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Dime anticipates further margin expansion and net interest income growth, with loan repricing opportunities continuing through 2027.

15 minor points

• Minor pointCommon-stockholder net income of $39.7 million exceeded $33.0 million in Q2 and $25.8 million a year earlier.
• Minor pointCore deposits increased $1.18 billion year over year, excluding brokered and time deposits.
• Minor pointAverage non-interest-bearing deposits increased to 32.1% of average total deposits in Q3 2026.
• Minor pointLoan originations including new credit lines reached $745.8 million, versus $533.4 million in Q2 and $535.6 million a year earlier.
• Minor pointTotal loan portfolio weighted-average rate increased to 5.50% at September 30, from 5.36% in June.
• Minor pointNon-interest income reached $14.1 million, versus $11.3 million in Q2 and $12.2 million a year earlier.
• Minor pointReturn on average assets increased to 1.10% in Q3 2026 from 0.94% in Q2.
• Minor pointEffective tax rate fell to 25.8%, versus 27.3% in Q2 and 31.0% a year earlier.
• Minor pointCommercial real estate concentration ratio was reduced to 338%.
• Minor pointStockholders’ equity increased $2.3 million to $1.52 billion at September 30, 2026.
• Minor pointBook value per common share increased to $32.10 at September 30 from $31.79 in June.
• Minor pointTangible common book value per share increased to $28.49 at September 30 from $28.21 in June.
• Minor pointCompany and bank regulatory capital ratios exceeded all applicable requirements at September 30, 2026.
• Minor point298,003 shares repurchased at $40.64 weighted-average price represented 0.7% of shares outstanding at the period’s start.
• Minor point. Forward-looking: it has not happened yet and may not happen.Dime anticipates revenue growth will lower its efficiency ratio in the years ahead.

Negative

• Moderate pointNon-performing assets increased to $99.5 million at September 30, versus $69.0 million in June and $72.1 million a year earlier.
• Minor pointNon-interest expense rose to $65.5 million, versus $64.7 million in Q2 and $62.2 million a year earlier.
• Minor pointCredit loss provision was $13.8 million, below $13.9 million in Q2 but above $13.3 million a year earlier.
• Minor pointIncome tax expense rose to $14.5 million, versus $13.1 million in Q2 and $12.4 million a year earlier.

Key Figures

Net income: $39.7 million Diluted EPS: $0.90 per share Adjusted diluted EPS: $0.91 per share +5 more

Net income

$39.7 million

Q3 2026; vs. $25.8 million in Q3 2025

Diluted EPS

$0.90 per share

Q3 2026; vs. $0.59 in Q3 2025

Adjusted diluted EPS

$0.91 per share

Q3 2026; non-GAAP

Quarterly revenue

$135 million

Record quarterly revenue

Net interest margin

3.35%

Q3 2026; vs. 3.01% in Q3 2025

Business loan growth

$929.1 million

Year-over-year increase

Non-performing assets

$99.5 million

At September 30, 2026; vs. $72.1 million at September 30, 2025

Share repurchases

298,003 shares

Q3 2026; weighted-average price of $40.64 per share

Key Terms

non-gaap, nim, loan-to-deposit ratio, brokered deposits

4 terms

non-gaap financial

"Adjusted net income available to common stockholders (non-GAAP)"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

nim financial

"continued NIM expansion."

NIM (net interest margin) measures the gap between the interest a bank earns on loans and other interest‑producing assets and the interest it pays to depositors and creditors, shown as a percentage of the bank’s earning assets. Think of it like a store’s markup: a wider NIM means the bank keeps more money from its core lending activity, boosting profit potential. Investors watch NIM because shifts reveal how profitable a bank’s lending is, and how sensitive that profit is to interest‑rate changes and shifts in the mix of loans versus other assets.

loan-to-deposit ratio financial

"an 83% loan-to-deposit ratio"

Loan-to-deposit ratio measures how much a bank has lent out compared with the money customers have deposited, expressed as a percentage. Think of it like the share of a household’s savings that has been loaned to others: a higher ratio can boost earnings but reduce cash on hand and increase risk, while a lower ratio means more liquidity but potentially lower returns—key for investors assessing a bank’s balance of profit and safety.

brokered deposits financial

"Core deposits (excluding brokered and time deposits)"

Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.

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NIM Expansion and Growth in Net Interest Income Drives Record Quarterly Revenue of $135 million

Deposits Increased by 15% and Loans Increased by 8% on an Annualized Basis Versus The Linked Quarter

Asset Liability Management Profile, Which is Underpinned by $2.2 Billion of Cash and
a Growing Floating Rate Loan Portfolio, Positions Dime Well For Rising Rates

HAUPPAUGE, N.Y., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Dime Commercial Bancshares, Inc. (NYSE: DCOM) (the “Company” or “Dime”), the parent company of Dime Commercial Bank (the “Bank”), today reported net income available to common stockholders of $39.7 million for the quarter ended September 30, 2026, or $0.90 per diluted common share, compared to net income available to common stockholders of $33.0 million, or $0.75 per diluted common share, for the quarter ended June 30, 2026 and net income available to common stockholders of $25.8 million for the quarter ended September 30, 2025, or $0.59 per diluted common share.

Adjusted net income available to common stockholders (non-GAAP) was $39.9 million and adjusted diluted EPS (non-GAAP) was $0.91 per share for the quarter ended September 30, 2026, compared to $0.79 per share for the quarter ended June 30, 2026, and $0.61 for the quarter ended September 30, 2025 (see "Non-GAAP Reconciliation" tables at the end of this news release).

Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Dime continues to execute on our growth plan and delivered another quarter of record revenue. Third quarter results were marked by strong growth in core deposits and business loans and continued NIM expansion. Our return metrics continue to improve, and the Return on Average Assets improved to 1.10%. Our balance sheet, with $2.2 billion of cash and an 83% loan-to-deposit ratio, was intentionally constructed keeping in mind the potential for an elevated interest rate environment. We believe this highly liquid balance sheet uniquely positions Dime versus our local peers. Finally, we anticipate continued expansion in NIM and growth in Net Interest Income in the quarters ahead as we take advantage of growth opportunities and benefit from a significant loan repricing opportunity that we anticipate will continue through 2027.”

Mr. Lubow continued, “As outlined in a separate press release, this morning we announced our intention to acquire ES Bancshares, Inc., the parent company of Empire State Bank (headquartered in Staten Island). This transaction represents another logical step in Dime's growth strategy.”

Highlights for the Third Quarter of 2026 included:

• Return on Average Assets increased to 1.10% for the third quarter of 2026 compared to 0.94% for the prior quarter;
• Total deposits increased $1.08 billion on a year-over-year basis;
• Core deposits (excluding brokered and time deposits) increased $1.18 billion on a year-over-year basis;
• Average non-interest-bearing deposits to average total deposits for the third quarter increased to 32.1%;
• Business loans grew $346.6 million on a linked quarter basis and $929.1 million on a year-over-year basis;
• The net interest margin increased to 3.35% for the third quarter of 2026 compared to 3.28% for the prior quarter;
• The efficiency ratio decreased to 48.4% for the third quarter of 2026 compared to 53.8% for the third quarter of 2025;
• The Company’s Consolidated CRE Concentration ratio was proactively managed lower to 338%;
• The Company repurchased 298,003 shares of its common stock, which represented 0.7% of shares outstanding at the beginning of the period, at a weighted-average price of $40.64 per share; and
• Announced entry into the affordable housing space with the launch of a dedicated group that will be led by Michael Camoia, SVP, Head of Affordable Housing.

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the third quarter of 2026 was $121.2 million compared to $115.2 million for the second quarter of 2026 and $103.4 million for the third quarter of 2025. The Net Interest Margin for the third quarter of 2026 was 3.35% compared to 3.28% for the second quarter of 2026 and 3.01% for the third quarter of 2025.

Loan Portfolio

The ending weighted average rate (“WAR”) on the total loan portfolio was 5.50% at September 30, 2026, a 14-basis point increase compared to the ending WAR of 5.36% on the total loan portfolio at June 30, 2026.

Outlined below are loan balances and WARs for the quarter ended as indicated.

		September 30, 2026					June 30, 2026					September 30, 2025
(Dollars in thousands)		Balance			WAR (1)		Balance			WAR (1)		Balance			WAR (1)
Loans held for investment balances at period end:
Business loans (2)		$	3,991,773		6.44	%	$	3,645,194		6.32	%	$	3,062,674		6.60	%
One-to-four family residential and coop/condo apartment			1,124,190		5.10			1,075,904		5.04			1,030,949		4.92
Multifamily residential and residential mixed-use (3)(4)			2,951,768		4.54			3,113,647		4.48			3,509,811		4.52
Non-owner-occupied commercial real estate			2,753,169		5.26			2,770,751		5.14			2,975,474		5.13
Acquisition, development, and construction			88,587		6.76			90,476		7.10			139,145		8.04
Other loans			8,668		12.28			8,401		11.81			7,621		11.14
Loans held for investment		$	10,918,155		5.50	%	$	10,704,373		5.36	%	$	10,725,674		5.37	%

⁽¹⁾ WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.

⁽²⁾ Business loans include commercial and industrial loans, and owner-occupied commercial real estate loans. At September 30, 2025, business loans included balances related to Paycheck Protection Program (“PPP”) loans; no PPP loans were outstanding at September 30, 2026 or June 30, 2026.

⁽³⁾ Includes loans underlying multifamily cooperatives.

⁽⁴⁾ While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Outlined below are the loan originations for the quarter ended as indicated.

(Dollars in millions)		Q3 2026			Q2 2026			Q3 2025
Originations Excluding New Lines of Credit		$	374.8		$	255.3		$	170.6
Originations Including New Lines of Credit			745.8			533.4			535.6

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at September 30, 2026 were $13.14 billion, compared to $12.68 billion at June 30, 2026 and $12.06 billion at September 30, 2025.

Brokered deposits were $200.0 million at September 30, 2026, compared to $200.0 million at June 30, 2026 and $200.0 million at September 30, 2025. Total Federal Home Loan Bank advances were lowered to $335.0 million at September 30, 2026, compared to $385.0 million at June 30, 2026 and $508.0 million at September 30, 2025.

Non-Interest Income

Non-interest income was $14.1 million during the third quarter of 2026, $11.3 million during the second quarter of 2026, and $12.2 million during the third quarter of 2025. Excluding the fair value change in equity securities and loans held for sale, and (gain) loss on sale of securities, loans and other assets, non-interest income was $13.4 million during the third quarter of 2026, $13.2 million during the second quarter of 2026 and $13.3 million during the third quarter of 2025.

Non-Interest Expense

Total non-interest expense was $65.5 million during the third quarter of 2026, $64.7 million during the second quarter of 2026, and $62.2 million during the third quarter of 2025. Excluding the impact of the net loss (gain) on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $64.3 million during the third quarter of 2026, $64.1 million during the second quarter of 2026, and $62.0 million during the third quarter of 2025 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The ratio of non-interest expense to average assets was 1.73% during the third quarter of 2026, compared to 1.74% during the linked quarter and 1.73% during the third quarter of 2025. Excluding the impact of the net loss (gain) on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.70% during the third quarter of 2026, 1.72% during the second quarter of 2026, and 1.72% during the third quarter of 2025 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 48.4% during the third quarter of 2026, compared to 51.2% during the linked quarter and 53.8% during the third quarter of 2025. Excluding the impact of (gain) loss on sale of securities, loans and other assets, fair value change in equity securities and loans held for sale, severance expense, net loss (gain) on extinguishment of debt, and amortization of other intangible assets, the adjusted efficiency ratio was 47.8% during the third quarter of 2026, compared to 49.9% during the linked quarter and 53.1% during the third quarter of 2025 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Mr. Lubow commented, “Our organic growth strategy is paying dividends as evidenced by a decline in the core efficiency ratio to below 48% for the third quarter. Growth in revenues is anticipated to continue to drive the efficiency ratio lower in the years ahead.”

Income Tax Expense

Income tax expense was $14.5 million during the third quarter of 2026, $13.1 million during the second quarter of 2026, and $12.4 million during the third quarter of 2025. The effective tax rate for the third quarter of 2026 was 25.8%, compared to 27.3% for the second quarter of 2026 and 31.0% for the third quarter of 2025.

Credit Quality

Non-performing assets were $99.5 million at September 30, 2026, compared to $69.0 million at June 30, 2026 and $72.1 million at September 30, 2025.

A credit loss provision of $13.8 million was recorded during the third quarter of 2026, compared to $13.9 million during the second quarter of 2026, and $13.3 million during the third quarter of 2025.

Capital Management

Stockholders’ equity increased $2.3 million to $1.52 billion at September 30, 2026.

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of September 30, 2026.

Dividends per common share were $0.25 for each of the third and second quarters of 2026.

Book value per common share was $32.10 at September 30, 2026 compared to $31.79 at June 30, 2026.

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $28.49 at September 30, 2026 compared to $28.21 at June 30, 2026 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 8:30 a.m. (ET) on Tuesday, October 20, 2026, during which CEO Lubow will discuss the Company’s third quarter 2026 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/aihfhaeg. To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BIe576e0e1823d40b89d52de726f0b9563. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/aihfhaeg.

ABOUT DIME COMMERCIAL BANCSHARES, INC.
Dime Commercial Bancshares, Inc. is the holding company for Dime Commercial Bank, a New York State-chartered trust company with approximately $15 billion in assets and the number one deposit market share on Greater Long Island ⁽¹⁾.

      ⁽¹⁾   Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for commercial banks with less than $20 billion in assets.

This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as “annualized," “anticipate," "believe," “continue,” "could," "estimate," "expect," "intend," “likely,” "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Any forward-looking statements presented herein are made only as of the date of this release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as may be required by law.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in government monetary or fiscal policies and actions may adversely affect our customers, cost of credit and overall result of operations; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, tariffs, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Contact: Avinash Reddy
Senior Executive Vice President – Chief Operating Officer and Chief Financial Officer
718-782-6200 extension 5909

DIME COMMERCIAL BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
		September 30,				June 30,				December 31,
		2026				2026				2025
Assets:
Cash and due from banks		$	2,184,800			$	1,934,594			$	2,353,966
Securities available-for-sale, at fair value			897,276				895,251				797,935
Securities held-to-maturity			701,601				706,606				618,901
Loans held for sale			2,413				1,862				1,989
Loans held for investment, net:
Business loans (1)			3,991,773				3,645,194				3,240,600
One-to-four family residential and coop/condo apartment			1,124,190				1,075,904				1,035,983
Multifamily residential and residential mixed-use (2)(3)			2,951,768				3,113,647				3,424,565
Non-owner-occupied commercial real estate			2,753,169				2,770,751				2,933,287
Acquisition, development and construction			88,587				90,476				117,215
Other loans			8,668				8,401				6,558
Allowance for credit losses			(108,548	)			(104,963	)			(97,372	)
Total loans held for investment, net			10,809,607				10,599,410				10,660,836
Premises and fixed assets, net			28,711				30,570				31,255
Restricted stock			59,046				61,167				67,197
BOLI			422,101				417,459				401,163
Goodwill			155,797				155,797				155,797
Other intangible assets			2,339				2,534				2,938
Operating lease assets			44,114				36,830				42,876
Derivative assets			99,951				70,545				76,315
Accrued interest receivable			57,694				56,282				55,572
Other assets			81,419				74,046				74,891
Total assets		$	15,546,869			$	15,042,953			$	15,341,631
Liabilities:
Non-interest-bearing checking (excluding mortgage escrow deposits)		$	4,158,300			$	3,946,965			$	3,915,081
Interest-bearing checking			1,068,293				1,140,667				1,178,281
Savings (excluding mortgage escrow deposits)			1,608,662				1,621,056				1,777,143
Money market			5,187,009				4,853,645				4,806,572
Certificates of deposit			1,034,729				1,068,824				1,117,118
Deposits (excluding mortgage escrow deposits)			13,056,993				12,631,157				12,794,195
Non-interest-bearing mortgage escrow deposits			81,429				45,980				47,051
Interest-bearing mortgage escrow deposits			—				—				—
Total mortgage escrow deposits			81,429				45,980				47,051
Total deposits (including mortgage escrow deposits)			13,138,422				12,677,137				12,841,246
FHLBNY advances			335,000				385,000				508,000
Subordinated debt, net			231,313				231,186				272,503
Derivative cash collateral			100,550				61,790				52,400
Operating lease liabilities			46,834				39,626				45,729
Derivative liabilities			99,394				69,631				73,573
Other liabilities			72,598				58,127				72,411
Total liabilities			14,024,111				13,522,497				13,865,862
Stockholders' equity:
Preferred stock, Series A			116,569				116,569				116,569
Common stock			462				462				462
Additional paid-in capital			622,827				622,636				623,041
Retained earnings			926,880				898,089				854,167
Accumulated other comprehensive loss ("AOCI"), net of deferred taxes			(46,314	)			(31,573	)			(31,468	)
Unearned equity awards			(15,311	)			(17,590	)			(8,661	)
Treasury stock, at cost			(82,355	)			(68,137	)			(78,341	)
Total stockholders' equity			1,522,758				1,520,456				1,475,769
Total liabilities and stockholders' equity		$	15,546,869			$	15,042,953			$	15,341,631

⁽¹⁾ Business loans include commercial and industrial loans, and owner-occupied commercial real estate loans.

⁽²⁾ Includes loans underlying multifamily cooperatives.

⁽³⁾ While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

DIME COMMERCIAL BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except share and per share amounts)
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
		2026				2026				2025				2026				2025
Interest income:
Loans		$	149,776			$	143,892			$	147,756			$	435,758			$	435,909
Securities			15,428				14,518				11,338				42,734				34,014
Other short-term investments			18,182				16,840				16,449				53,544				35,035
Total interest income			183,386				175,250				175,543				532,036				504,958
Interest expense:
Deposits and escrow			54,220				52,171				62,950				158,755				181,205
Borrowed funds			7,279				7,351				8,406				22,930				25,141
Derivative cash collateral			668				542				788				1,695				2,903
Total interest expense			62,167				60,064				72,144				183,380				209,249
Net interest income			121,219				115,186				103,399				348,656				295,709
Provision for credit losses			13,812				13,875				13,294				40,000				32,141
Net interest income after provision			107,407				101,311				90,105				308,656				263,568
Non-interest income:
Service charges and other fees			6,879				6,483				5,209				19,092				14,494
Title fees			191				187				126				520				342
Loan level derivative income			702				535				650				1,709				1,653
BOLI income			4,683				5,038				4,956				14,279				13,135
Gain on sale of Small Business Administration ("SBA") loans			—				196				38				196				507
Gain on sale of residential loans			77				49				37				198				119
Fair value change in equity securities and loans held for sale			(38	)			38				51				(38	)			152
Gain on securities			—				—				14				—				163
Gain (loss) on sale of loans and other assets			757				(2,000	)			(1,117	)			(1,563	)			(1,117	)
Other			877				740				2,247				2,347				3,991
Total non-interest income			14,128				11,266				12,211				36,740				33,439
Non-interest expense:
Salaries and employee benefits			39,303				39,781				38,344				118,677				110,213
Severance			974				454				6				1,530				218
Occupancy and equipment			7,855				7,899				8,107				23,963				23,838
Data processing costs			5,835				5,151				4,798				16,409				14,495
Marketing			2,258				1,951				1,961				6,234				5,383
Professional services			1,981				2,325				2,228				6,215				6,441
Federal deposit insurance premiums			1,627				1,712				1,799				4,605				5,538
Net loss (gain) on extinguishment of debt			—				2				—				(972	)			—
Loss due to pension settlement			—				—				—				—				7,231
Amortization of other intangible assets			195				195				236				599				723
Other			5,475				5,231				4,745				15,700				13,954
Total non-interest expense			65,503				64,701				62,224				192,960				188,034
Income before taxes			56,032				47,876				40,092				152,436				108,973
Income tax expense			14,472				13,062				12,421				41,480				30,147
Net income			41,560				34,814				27,671				110,956				78,826
Preferred stock dividends			1,822				1,821				1,822				5,465				5,465
Net income available to common stockholders		$	39,738			$	32,993			$	25,849			$	105,491			$	73,361

DIME COMMERCIAL BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED COMMON SHARE DATA
(Dollars in thousands except per share amounts)
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
GAAP		2026				2026				2025				2026				2025
Net income available to common stockholders		$	39,738			$	32,993			$	25,849			$	105,491			$	73,361
Less: Dividends paid and earnings allocated to participating securities			(801	)			(687	)			(493	)			(2,081	)			(1,323	)
Income attributable to common stock - Basic and Diluted		$	38,937			$	32,306			$	25,356				103,410				72,038
Weighted-average common shares outstanding			43,137,429				43,218,619				43,052,898				43,155,159				43,010,919
Basic and diluted earnings per share ("EPS") (1)		$	0.90			$	0.75			$	0.59			$	2.40			$	1.67
Non-GAAP
Adjusted net income available to common stockholders (2)		$	39,914			$	34,663			$	26,588			$	106,982			$	79,139
Less: Dividends paid and earnings allocated to participating securities			(805	)			(722	)			(507	)			(2,113	)			(1,417	)
Adjusted income attributable to common stock - Basic and Diluted		$	39,109			$	33,941			$	26,081			$	104,869			$	77,722
Weighted-average common shares outstanding			43,137,429				43,218,619				43,052,898				43,155,159				43,010,919
Adjusted basic and diluted EPS (3)		$	0.91			$	0.79			$	0.61			$	2.43			$	1.81

⁽¹⁾ The earnings per share is calculated by dividing income attributable to common stock by weighted-average common shares outstanding.

⁽²⁾ See "Non-GAAP Reconciliation" tables for reconciliation of reported and adjusted (non-GAAP) net income available to common stockholders.

⁽³⁾ The adjusted earnings per share is calculated by dividing adjusted income attributable to common stock by weighted-average common shares outstanding.

DIME COMMERCIAL BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share amounts)
		At or For the Three Months Ended									At or For the Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
		2026			2026			2025			2026			2025
Per Share Data:
Reported EPS (Diluted)		$	0.90		$	0.75		$	0.59		$	2.40		$	1.67
Cash dividends paid per common share			0.25			0.25			0.25			0.75			0.75
Book value per common share			32.10			31.79			30.44			32.10			30.44
Tangible common book value per share (1)			28.49			28.21			26.81			28.49			26.81
Common shares outstanding			43,811			44,158			43,889			43,811			43,889
Dividend payout ratio			27.78	%		33.33	%		42.37	%		31.25	%		44.91	%
Performance Ratios (Based upon Reported Net Income):
Return on average assets			1.10	%		0.94	%		0.77	%		0.99	%		0.75	%
Return on average equity			10.77			9.15			7.59			9.71			7.31
Return on average tangible common equity (1)			12.57			10.62			8.80			11.31			8.47
Net interest margin			3.35			3.28			3.01			3.28			2.98
Non-interest expense to average assets			1.73			1.74			1.73			1.72			1.78
Efficiency ratio			48.4			51.2			53.8			50.1			57.1
Effective tax rate			25.83			27.28			30.98			27.21			27.66
Balance Sheet Data:
Average assets		$	15,142,449		$	14,862,346		$	14,426,002		$	14,996,020		$	14,074,794
Average interest-earning assets			14,364,889			14,086,464			13,638,036			14,218,475			13,267,962
Average tangible common equity (1)			1,268,341			1,247,394			1,182,158			1,248,060			1,162,403
Loan-to-deposit ratio at end of period (2)			83.1	%		84.4	%		88.9	%		83.1	%		88.9	%
Capital Ratios and Reserves - Consolidated:
Tangible common equity to tangible assets (1) (3)			8.11	%		8.37	%		8.18	%
Tangible equity to tangible assets (1) (3)			8.87			9.15			8.99
Tier 1 common equity ratio (3)			11.75			11.99			11.53
Tier 1 risk-based capital ratio (3)			12.81			13.09			12.64
Total risk-based capital ratio (3)			15.96			16.30			16.18
Tier 1 leverage ratio (3)			9.40			9.46			9.29
Consolidated CRE concentration ratio (3)(4)			338			352			401
Allowance for credit losses/ Total loans			0.99			0.98			0.88
Allowance for credit losses/ Non-performing loans held for investment			111.54			157.09			130.54

⁽¹⁾ See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets.

⁽²⁾ Total deposits include mortgage escrow deposits, which fluctuate seasonally.

⁽³⁾ September 30, 2026 ratios are preliminary pending completion and filing of the Company’s regulatory reports.

⁽⁴⁾ The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The September 30, 2026 ratio is preliminary pending completion and filing of the Company’s regulatory reports.

DIME COMMERCIAL BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars in thousands)
		Three Months Ended
		September 30, 2026								June 30, 2026								September 30, 2025
								Average								Average								Average
		Average						Yield/		Average						Yield/		Average						Yield/
		Balance			Interest			Cost		Balance			Interest			Cost		Balance			Interest			Cost
Assets:
Interest-earning assets:
Business loans		$	3,798,622		$	62,650		6.54	%	$	3,489,614		$	56,520		6.50	%	$	2,957,434		$	50,271		6.74	%
One-to-four family residential and coop/condo apartment			1,111,740			13,604		4.85			1,064,043			12,588		4.75			1,023,844			12,120		4.70
Multifamily residential and residential mixed-use			3,059,148			35,123		4.56			3,195,372			35,930		4.51			3,591,822			41,712		4.61
Non-owner-occupied commercial real estate			2,724,952			36,719		5.35			2,815,624			37,117		5.29			3,067,598			40,439		5.23
Acquisition, development, and construction			79,710			1,654		8.23			90,738			1,711		7.56			145,902			3,184		8.66
Other loans			8,981			26		1.15			8,580			26		1.22			7,515			30		1.58
Total loans			10,783,153			149,776		5.51			10,663,971			143,892		5.41			10,794,115			147,756		5.43
Securities			1,640,702			15,428		3.73			1,582,300			14,518		3.68			1,340,223			11,338		3.36
Other short-term investments			1,941,034			18,182		3.72			1,840,193			16,840		3.67			1,503,698			16,449		4.34
Total interest-earning assets			14,364,889			183,386		5.06	%		14,086,464			175,250		4.99	%		13,638,036			175,543		5.11	%
Non-interest-earning assets			777,560								775,882								787,966
Total assets		$	15,142,449							$	14,862,346							$	14,426,002
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking (1)		$	1,082,628		$	4,453		1.63	%	$	1,040,981		$	4,058		1.56	%	$	1,069,761		$	5,306		1.97	%
Money market			4,907,654			31,883		2.58			4,796,008			30,049		2.51			4,359,512			34,877		3.17
Savings (1)			1,635,196			9,776		2.37			1,684,130			9,826		2.34			1,821,289			13,273		2.89
Certificates of deposit			1,051,590			8,108		3.06			1,075,789			8,238		3.07			1,116,152			9,494		3.37
Total interest-bearing deposits			8,677,068			54,220		2.48			8,596,908			52,171		2.43			8,366,714			62,950		2.99
FHLBNY advances			337,717			3,469		4.08			418,517			3,541		3.39			508,000			4,104		3.21
Subordinated debt, net			231,229			3,809		6.54			231,102			3,810		6.61			272,429			4,301		6.26
Other short-term borrowings			76			1		5.22			—			—		—			76			1		5.22
Total borrowings			569,022			7,279		5.08			649,619			7,351		4.54			780,505			8,406		4.27
Derivative cash collateral			75,524			668		3.51			62,134			542		3.50			63,856			788		4.90
Total interest-bearing liabilities			9,321,614			62,167		2.65	%		9,308,661			60,064		2.59	%		9,211,075			72,144		3.11	%
Non-interest-bearing checking (1)			4,102,780								3,864,575								3,573,448
Other non-interest-bearing liabilities			174,880								166,688								183,627
Total liabilities			13,599,274								13,339,924								12,968,150
Stockholders' equity			1,543,175								1,522,422								1,457,852
Total liabilities and stockholders' equity		$	15,142,449							$	14,862,346							$	14,426,002
Net interest income					$	121,219							$	115,186							$	103,399
Net interest rate spread								2.41	%							2.40	%							2.00	%
Net interest margin								3.35	%							3.28	%							3.01	%
Deposits (including non-interest-bearing checking accounts) (1)		$	12,779,848		$	54,220		1.68	%	$	12,461,483		$	52,171		1.68	%	$	11,940,162		$	62,950		2.09	%

⁽¹⁾ Includes mortgage escrow deposits.

DIME COMMERCIAL BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
(Dollars in thousands)
		At or For the Three Months Ended
		September 30,				June 30,				September 30,
Asset Quality Detail		2026				2026				2025
Non-performing loans held for investment
Business loans		$	33,171			$	23,898			$	21,005
One-to-four family residential and coop/condo apartment			4,852				4,465				2,440
Multifamily residential and residential mixed-use			47,773				26,893				—
Non-owner-occupied commercial real estate			11,109				11,151				47,952
Acquisition, development, and construction			412				412				657
Other loans			—				—				—
Non-accrual loans held for investment		$	97,317			$	66,819			$	72,054
Non-accrual loans held for sale		$	1,750			$	1,750			$	—
Total non-accrual loans		$	99,067			$	68,569			$	72,054
Total non-accrual loans/ Total loans			0.91	%			0.64	%			0.67	%
Total non-performing assets ("NPAs") (1)		$	99,517			$	69,019			$	72,054
Total loans 90 days delinquent and accruing ("90+ Delinquent")		$	—			$	—			$	—
NPAs and 90+ Delinquent		$	99,517			$	69,019			$	72,054
NPAs and 90+ Delinquent / Total assets			0.64	%			0.46	%			0.50	%
Net loan charge-offs ("NCOs")		$	9,749			$	9,662			$	12,586
NCOs / Average loans (2)			0.36	%			0.36	%			0.47	%

⁽¹⁾ September 30, 2026 and June 30, 2026 balances include one non-performing available-for-sale security in the amount of $450 thousand.

⁽²⁾ Calculated based on annualized NCOs to average loans.

DIME COMMERCIAL BANCSHARES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION
(Dollars in thousands except per share amounts)

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, (gain) loss on sale of securities, loans and other assets, severance, net loss (gain) on extinguishment of debt and loss due to pension settlement.

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
		2026				2026				2025				2026				2025
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income available to common stockholders		$	39,738			$	32,993			$	25,849			$	105,491			$	73,361
Adjustments to net income (1):
Fair value change in equity securities and loans held for sale			38				(38	)			(51	)			38				(152	)
(Gain) loss on sale of securities, loans and other assets			(757	)			2,000				1,112				1,563				1,040
Severance			974				454				6				1,530				218
Net loss (gain) on extinguishment of debt			—				2				—				(972	)			—
Loss due to pension settlement			—				—				—				—				7,231
Income tax effect of adjustments noted above (1)			(79	)			(748	)			(328	)			(668	)			(2,559	)
Adjusted net income available to common stockholders (non-GAAP)		$	39,914			$	34,663			$	26,588			$	106,982			$	79,139
Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)
Adjusted EPS (Diluted)		$	0.91			$	0.79			$	0.61			$	2.43			$	1.81
Adjusted return on average assets			1.10	%			0.98	%			0.79	%			1.00	%			0.80	%
Adjusted return on average equity			10.82				9.59				7.80				9.84				7.84
Adjusted return on average tangible common equity			12.63				11.16				9.05				11.47				9.14
Adjusted non-interest expense to average assets			1.70				1.72				1.72				1.71				1.70
Adjusted efficiency ratio			47.8				49.9				53.1				49.6				54.5

⁽¹⁾ Adjustments to net income are taxed at the Company's approximate statutory tax rate.

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
		2026				2026				2025				2026				2025
Operating expense as a % of average assets - as reported		1.73	%			1.74	%			1.73	%			1.72	%			1.78	%
Severance		(0.03	)			(0.01	)			—				(0.01	)			—
Net loss (gain) on extinguishment of debt		—				—				—				—				—
Loss due to pension settlement		—				—				—				—				(0.07	)
Amortization of other intangible assets		—				(0.01	)			(0.01	)			—				(0.01	)
Adjusted operating expense as a % of average assets (non-GAAP)		1.70	%			1.72	%			1.72	%			1.71	%			1.70	%

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
		2026				2026				2025				2026				2025
Efficiency ratio - as reported (non-GAAP) (1)			48.4	%			51.2	%			53.8	%			50.1	%			57.1	%
Non-interest expense - as reported		$	65,503			$	64,701			$	62,224			$	192,960			$	188,034
Severance			(974	)			(454	)			(6	)			(1,530	)			(218	)
Net (loss) gain on extinguishment of debt			—				(2	)			—				972				—
Loss due to pension settlement			—				—				—				—				(7,231	)
Amortization of other intangible assets			(195	)			(195	)			(236	)			(599	)			(723	)
Adjusted non-interest expense (non-GAAP)		$	64,334			$	64,050			$	61,982			$	191,803			$	179,862
Net interest income - as reported		$	121,219			$	115,186			$	103,399			$	348,656			$	295,709
Non-interest income - as reported		$	14,128			$	11,266			$	12,211			$	36,740			$	33,439
Fair value change in equity securities and loans held for sale			38				(38	)			(51	)			38				(152	)
(Gain) loss on sale of securities, loans and other assets			(757	)			2,000				1,112				1,563				1,040
Adjusted non-interest income (non-GAAP)		$	13,409			$	13,228			$	13,272			$	38,341			$	34,327
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)		$	134,628			$	128,414			$	116,671			$	386,997			$	330,036
Adjusted efficiency ratio (non-GAAP) (2)			47.8	%			49.9	%			53.1	%			49.6	%			54.5	%

⁽¹⁾ The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.

⁽²⁾ The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.

The following table presents a reconciliation of pre-tax pre-provision net revenue (non-GAAP) and adjusted pre-tax pre-provision net revenue (non-GAAP):

		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,			September 30,
		2026			2026			2025			2026			2025
Financial Data:
Net interest income		$	121,219		$	115,186		$	103,399		$	348,656		$	295,709
Non-interest income			14,128			11,266			12,211			36,740			33,439
Total revenue			135,347			126,452			115,610			385,396			329,148
Non-interest expense			65,503			64,701			62,224			192,960			188,034
Pre-tax pre-provision net revenue (non-GAAP) (1)		$	69,844		$	61,751		$	53,386		$	192,436		$	141,114
Adjusted pre-tax pre-provision net revenue (non-GAAP) (2)		$	70,294		$	64,364		$	54,689		$	195,194		$	150,174

⁽¹⁾ The reported pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding GAAP net interest income and GAAP non-interest income less GAAP non-interest expense.

⁽²⁾ The adjusted pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding GAAP net interest income and the adjusted non-interest income less the adjusted non-interest expense as shown in the reconciliation of efficiency ratio table above.

The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):

		September 30,				June 30,				September 30,
		2026				2026				2025
Reconciliation of Tangible Assets:
Total assets		$	15,546,869			$	15,042,953			$	14,538,943
Goodwill			(155,797	)			(155,797	)			(155,797	)
Other intangible assets			(2,339	)			(2,534	)			(3,173	)
Tangible assets (non-GAAP)		$	15,388,733			$	14,884,622			$	14,379,973
Reconciliation of Tangible Common Equity - Consolidated:
Total stockholders' equity		$	1,522,758			$	1,520,456			$	1,452,342
Goodwill			(155,797	)			(155,797	)			(155,797	)
Other intangible assets			(2,339	)			(2,534	)			(3,173	)
Tangible equity (non-GAAP)			1,364,622				1,362,125				1,293,372
Preferred stock, net			(116,569	)			(116,569	)			(116,569	)
Tangible common equity (non-GAAP)		$	1,248,053			$	1,245,556			$	1,176,803
Common shares outstanding			43,811				44,158				43,889
Tangible common equity to tangible assets (non-GAAP)			8.11	%			8.37	%			8.18	%
Tangible equity to tangible assets (non-GAAP)			8.87				9.15				8.99
Book value per common share		$	32.10			$	31.79			$	30.44
Tangible common book value per share (non-GAAP)			28.49				28.21				26.81

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Dime Commercial Bancshares’ third-quarter 2026 earnings?

Dime reported $39.7 million in net income available to common stockholders and $0.90 diluted EPS for the quarter ended September 30, 2026. A year earlier, those figures were $25.8 million and $0.59. Adjusted, non-GAAP diluted EPS was $0.91, compared with $0.61 a year earlier.

Which company does Dime Commercial Bancshares intend to acquire?

Dime announced its intention to acquire ES Bancshares, the parent company of Empire State Bank, which is headquartered in Staten Island. The acquisition was described as another step in Dime’s growth strategy.

What liquidity position did Dime report for the third quarter of 2026?

Dime reported $2.2 billion of cash and an 83% loan-to-deposit ratio. Management said the balance sheet was constructed with the potential for an elevated interest-rate environment in mind.