[10-Q] Dime Community Bancshares, Inc. Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A Quarterly Earnings Report
Dime Community Bancshares (DCOM) posted a strong Q2-25. Net income rose to $29.7 mm (up 61% YoY) and net income available to common shareholders reached $27.9 mm, lifting basic EPS to $0.64 from $0.43. Six-month earnings climbed to $51.2 mm (YTD EPS $1.09).
- Net interest income jumped 30% YoY to $98.1 mm as interest income expanded 5% while interest expense fell 17% to $69.5 mm, underpinning margin expansion.
- The provision for credit losses increased to $9.2 mm (vs $5.6 mm), but the allowance now covers $93.2 mm of expected losses.
- Non-interest income was steady at $11.6 mm; BOLI income doubled, offsetting lower service fees.
- Non-interest expense rose 8% to $60.3 mm, driven by compensation and data-processing spend.
On the balance sheet, total assets slipped 1% from year-end to $14.21 bn as cash declined to $1.16 bn. Loan balances were essentially flat at $10.78 bn net, while deposits inched up to $11.69 bn; non-interest bearing deposits represent 29%. FHLB advances were pared by $100 mm to $508 mm, and AOCI improved $7.1 mm, helping stockholders’ equity climb 2.5% to $1.43 bn. The company repurchased ~261 k shares and paid common dividends of $10.9 mm during the quarter.
Operating cash flow was a positive $88.5 mm YTD; free cash was redeployed into BOLI and securities, while financing outflows reflected debt pay-downs and dividends. Overall, earnings momentum, lower funding costs and stronger capital paint a favorable picture, though higher credit provisioning and expense growth warrant monitoring.
Dime Community Bancshares (DCOM) ha registrato un solido secondo trimestre 2025. L'utile netto è salito a 29,7 milioni di dollari (in aumento del 61% su base annua) e l'utile netto disponibile per gli azionisti ordinari ha raggiunto 27,9 milioni di dollari, portando l'utile base per azione a 0,64 dollari da 0,43 dollari. Gli utili semestrali sono cresciuti a 51,2 milioni di dollari (utile per azione da inizio anno di 1,09 dollari).
- Il reddito netto da interessi è aumentato del 30% su base annua, raggiungendo 98,1 milioni di dollari, grazie a un incremento del 5% degli interessi attivi e a una diminuzione del 17% degli interessi passivi, scesi a 69,5 milioni di dollari, sostenendo l'espansione del margine.
- La provvista per perdite su crediti è salita a 9,2 milioni di dollari (rispetto a 5,6 milioni), ma la riserva ora copre 93,2 milioni di dollari di perdite attese.
- I ricavi non derivanti da interessi sono rimasti stabili a 11,6 milioni di dollari; i ricavi da BOLI sono raddoppiati, compensando la diminuzione delle commissioni di servizio.
- Le spese non da interessi sono aumentate dell'8% a 60,3 milioni di dollari, principalmente a causa di maggiori costi per compensi e elaborazione dati.
Nel bilancio, il totale degli attivi è diminuito dell'1% rispetto a fine anno, attestandosi a 14,21 miliardi di dollari, mentre la liquidità è scesa a 1,16 miliardi. I prestiti netti sono rimasti praticamente stabili a 10,78 miliardi, mentre i depositi sono leggermente aumentati a 11,69 miliardi; i depositi senza interessi rappresentano il 29%. Gli anticipi FHLB sono stati ridotti di 100 milioni a 508 milioni, e il valore complessivo degli utili e delle perdite non realizzati (AOCI) è migliorato di 7,1 milioni, contribuendo a far salire il patrimonio netto degli azionisti del 2,5% a 1,43 miliardi. La società ha riacquistato circa 261 mila azioni e ha distribuito dividendi ordinari per 10,9 milioni nel trimestre.
Il flusso di cassa operativo è stato positivo per 88,5 milioni da inizio anno; il flusso di cassa libero è stato reinvestito in BOLI e titoli, mentre le uscite finanziarie riflettono il rimborso del debito e i dividendi. Nel complesso, la dinamica degli utili, i costi di finanziamento più bassi e un capitale più solido offrono una prospettiva favorevole, anche se l'aumento della provvista per crediti e la crescita delle spese meritano attenzione.
Dime Community Bancshares (DCOM) presentó un sólido segundo trimestre de 2025. La utilidad neta aumentó a 29,7 millones de dólares (un 61% más interanual) y la utilidad neta disponible para accionistas comunes alcanzó 27,9 millones de dólares, elevando el beneficio básico por acción a 0,64 dólares desde 0,43 dólares. Las ganancias de seis meses subieron a 51,2 millones de dólares (EPS acumulado de 1,09 dólares).
- Los ingresos netos por intereses crecieron un 30% interanual hasta 98,1 millones de dólares debido a un aumento del 5% en los ingresos por intereses y una reducción del 17% en los gastos por intereses, que cayeron a 69,5 millones, apoyando la expansión del margen.
- La provisión para pérdidas crediticias aumentó a 9,2 millones (frente a 5,6 millones), pero la reserva ahora cubre 93,2 millones en pérdidas esperadas.
- Los ingresos no relacionados con intereses se mantuvieron estables en 11,6 millones; los ingresos por BOLI se duplicaron, compensando la caída en las comisiones por servicios.
- Los gastos no relacionados con intereses aumentaron un 8% a 60,3 millones, impulsados por mayores gastos en compensación y procesamiento de datos.
En el balance, los activos totales disminuyeron un 1% desde fin de año hasta 14,21 mil millones de dólares debido a una caída en efectivo a 1,16 mil millones. Los préstamos netos se mantuvieron prácticamente sin cambios en 10,78 mil millones, mientras que los depósitos aumentaron ligeramente a 11,69 mil millones; los depósitos sin intereses representan el 29%. Los adelantos FHLB se redujeron en 100 millones a 508 millones, y el AOCI mejoró en 7,1 millones, ayudando a que el patrimonio de los accionistas subiera un 2,5% a 1,43 mil millones. La empresa recompró alrededor de 261 mil acciones y pagó dividendos comunes por 10,9 millones durante el trimestre.
El flujo de caja operativo fue positivo en 88,5 millones en lo que va del año; el flujo de caja libre se reinvirtió en BOLI y valores, mientras que las salidas de financiamiento reflejaron pagos de deuda y dividendos. En general, el impulso en las ganancias, los costos de financiamiento más bajos y un capital más fuerte presentan un panorama favorable, aunque el aumento en la provisión para créditos y el crecimiento de gastos merecen seguimiento.
Dime Community Bancshares (DCOM)는 2025년 2분기에 강력한 실적을 발표했습니다. 순이익은 2,970만 달러로 전년 대비 61% 증가했으며, 보통주주에게 귀속되는 순이익은 2,790만 달러에 달해 기본 주당순이익(EPS)이 0.64달러로 0.43달러에서 상승했습니다. 6개월 누적 순이익은 5,120만 달러로 (연초 이후 EPS 1.09달러) 증가했습니다.
- 순이자수익은 전년 동기 대비 30% 증가한 9,810만 달러로, 이자수익은 5% 늘었고 이자비용은 17% 감소한 6,950만 달러로 마진 확장을 견인했습니다.
- 대손충당금은 920만 달러로 증가(기존 560만 달러 대비)했으나, 충당금은 현재 예상 손실 9,320만 달러를 커버하고 있습니다.
- 비이자 수익은 1,160만 달러로 안정적이었으며, BOLI 수익이 두 배로 증가해 서비스 수수료 감소를 상쇄했습니다.
- 비이자 비용은 보상 및 데이터 처리 비용 증가로 8% 상승하여 6,030만 달러에 달했습니다.
대차대조표 상 총자산은 연말 대비 1% 감소한 142억 1천만 달러이며, 현금은 11억 6천만 달러로 줄었습니다. 순대출금은 107억 8천만 달러로 거의 변동이 없었고, 예금은 소폭 증가해 116억 9천만 달러에 이르렀으며 비이자 예금은 29%를 차지합니다. FHLB 차입금은 1억 달러 줄어 5억 800만 달러가 되었고, AOCI(기타포괄손익누계액)는 710만 달러 개선되어 주주지분이 2.5% 증가한 14억 3천만 달러가 되었습니다. 회사는 약 26만 1천 주를 재매입하고 분기 동안 1,090만 달러의 보통주 배당금을 지급했습니다.
영업 현금 흐름은 연초 이후 8,850만 달러의 플러스를 기록했으며, 자유 현금은 BOLI 및 증권에 재투자되었고, 자금 조달 현금 유출은 부채 상환과 배당금 지급을 반영했습니다. 전반적으로 수익 모멘텀, 낮은 자금 조달 비용 및 강한 자본력이 긍정적인 전망을 제시하나, 대손충당금 증가와 비용 상승은 주의 깊게 관찰할 필요가 있습니다.
Dime Community Bancshares (DCOM) a publié un solide deuxième trimestre 2025. Le bénéfice net a atteint 29,7 millions de dollars (en hausse de 61 % en glissement annuel) et le bénéfice net attribuable aux actionnaires ordinaires a atteint 27,9 millions de dollars, portant le BPA de base à 0,64 $ contre 0,43 $. Les bénéfices sur six mois ont grimpé à 51,2 millions de dollars (BPA cumulé de 1,09 $).
- Le produit net d’intérêts a bondi de 30 % en glissement annuel à 98,1 millions de dollars, les produits d’intérêts ayant augmenté de 5 % tandis que les charges d’intérêts ont diminué de 17 % à 69,5 millions, soutenant l’expansion de la marge.
- La provision pour pertes sur crédit a augmenté à 9,2 millions (contre 5,6 millions), mais la réserve couvre désormais 93,2 millions de pertes attendues.
- Les revenus hors intérêts sont restés stables à 11,6 millions ; les revenus BOLI ont doublé, compensant la baisse des frais de service.
- Les charges hors intérêts ont augmenté de 8 % à 60,3 millions, tirées par les dépenses de rémunération et de traitement des données.
Au bilan, le total des actifs a légèrement diminué de 1 % depuis la fin d’année pour s’établir à 14,21 milliards de dollars, la trésorerie ayant reculé à 1,16 milliard. Les prêts nets sont restés quasiment stables à 10,78 milliards, tandis que les dépôts ont légèrement augmenté à 11,69 milliards ; les dépôts sans intérêts représentent 29 %. Les avances FHLB ont été réduites de 100 millions à 508 millions, et l’AOCI s’est amélioré de 7,1 millions, aidant les capitaux propres des actionnaires à progresser de 2,5 % à 1,43 milliard. La société a racheté environ 261 000 actions et versé 10,9 millions de dividendes ordinaires au cours du trimestre.
Le flux de trésorerie opérationnel est positif de 88,5 millions depuis le début de l’année ; la trésorerie disponible a été réinvestie dans BOLI et titres, tandis que les sorties de financement reflètent le remboursement de dettes et les dividendes. Globalement, l’élan des bénéfices, la baisse des coûts de financement et un capital renforcé offrent une perspective favorable, bien que l’augmentation des provisions pour créances douteuses et la hausse des dépenses méritent d’être suivies.
Dime Community Bancshares (DCOM) verzeichnete ein starkes zweites Quartal 2025. Der Nettogewinn stieg auf 29,7 Mio. USD (plus 61 % im Jahresvergleich), und der dem Stammaktionär zurechenbare Nettogewinn erreichte 27,9 Mio. USD, was das Basis-Ergebnis je Aktie auf 0,64 USD von 0,43 USD anhob. Die Halbjahresgewinne kletterten auf 51,2 Mio. USD (YTD EPS 1,09 USD).
- Der Nettozinsertrag stieg im Jahresvergleich um 30 % auf 98,1 Mio. USD, da die Zinserträge um 5 % zunahmen, während die Zinsaufwendungen um 17 % auf 69,5 Mio. USD sanken, was die Margenausweitung unterstützte.
- Die Rückstellung für Kreditausfälle erhöhte sich auf 9,2 Mio. USD (gegenüber 5,6 Mio.), doch die Rückstellung deckt nun erwartete Verluste von 93,2 Mio. USD ab.
- Die Erträge aus Nicht-Zinsgeschäften blieben mit 11,6 Mio. USD stabil; die BOLI-Einnahmen verdoppelten sich und kompensierten niedrigere Servicegebühren.
- Die Aufwendungen ohne Zinsen stiegen um 8 % auf 60,3 Mio. USD, bedingt durch höhere Personal- und Datenverarbeitungskosten.
In der Bilanz sanken die Gesamtaktiva um 1 % gegenüber Jahresende auf 14,21 Mrd. USD, da das Bargeld auf 1,16 Mrd. USD zurückging. Die Nettokredite blieben mit 10,78 Mrd. USD nahezu unverändert, während die Einlagen leicht auf 11,69 Mrd. USD anstiegen; nicht verzinsliche Einlagen machen 29 % aus. FHLB-Vorschüsse wurden um 100 Mio. USD auf 508 Mio. USD reduziert, und das AOCI verbesserte sich um 7,1 Mio. USD, was dazu beitrug, dass das Eigenkapital der Aktionäre um 2,5 % auf 1,43 Mrd. USD stieg. Das Unternehmen kaufte rund 261.000 Aktien zurück und zahlte im Quartal Dividenden in Höhe von 10,9 Mio. USD.
Der operative Cashflow war seit Jahresbeginn mit 88,5 Mio. USD positiv; freier Cashflow wurde in BOLI und Wertpapiere reinvestiert, während Finanzierungsabflüsse Schuldentilgungen und Dividenden widerspiegelten. Insgesamt zeichnen die Gewinnentwicklung, niedrigere Finanzierungskosten und ein stärkeres Kapital ein positives Bild, obwohl die gestiegene Kreditrückstellung und Kostenentwicklung beobachtet werden sollten.
- Net income up 61% YoY to $29.7 mm, driving EPS to $0.64.
- Net interest income surged 30% as funding costs fell 17%.
- Stockholders’ equity rose 2.5% to $1.43 bn; AOCI loss narrowed by $7.1 mm.
- Deposits grew to $11.69 bn with stable non-interest mix.
- FHLB advances cut by $100 mm, reducing wholesale funding dependence.
- Provision for credit losses increased 65% to $9.2 mm, signaling heightened credit vigilance.
- Non-interest expense up 8% YoY, pressuring efficiency ratio.
- Cash & equivalents fell $126.8 mm YTD due to investing and financing outflows.
- Loan portfolio showed no growth, potentially limiting future revenue expansion.
Insights
TL;DR – Earnings up, margin expands, credit costs creep, outlook net positive.
Quarterly profitability accelerated as NII leapt 30% on lower deposit costs, outweighing a modest loan book that remains just under $11 bn. The 17 bp sequential fall in interest expense is notable given industry pressure on funding. Provisioning ticked higher, but the reserve/loan ratio (0.86%) is still conservative for a collateral-heavy New York CRE portfolio. Equity grew despite share buybacks thanks to earnings retention and AOCI recovery, boosting tangible book. Deposit mix held, with non-interest balances stable—critical for funding durability. Expense creep (8% YoY) slightly tempers operating leverage; management must contain wage inflation to preserve the widened margin. Overall, fundamentals signal resilience, meriting a positive bias.
TL;DR – Credit reserve build and flat loans hint at cautious stance.
The $3.6 mm reserve build plus elevated qualitative disclosure on CRE risk suggest management is bracing for macro stress. Loan growth stalled, implying tighter underwriting or weak demand. Cash levels remain robust, yet a $126 mm draw this year and sizable BOLI purchase reduced liquidity. FHLB advance reduction lowers wholesale reliance but shortens optionality if deposit competition intensifies. AOCI, though improved, is still a $38 mm drag. Key watch-items: CRE delinquency trends, further margin compression if rates fall, and non-interest expense trajectory.
Dime Community Bancshares (DCOM) ha registrato un solido secondo trimestre 2025. L'utile netto è salito a 29,7 milioni di dollari (in aumento del 61% su base annua) e l'utile netto disponibile per gli azionisti ordinari ha raggiunto 27,9 milioni di dollari, portando l'utile base per azione a 0,64 dollari da 0,43 dollari. Gli utili semestrali sono cresciuti a 51,2 milioni di dollari (utile per azione da inizio anno di 1,09 dollari).
- Il reddito netto da interessi è aumentato del 30% su base annua, raggiungendo 98,1 milioni di dollari, grazie a un incremento del 5% degli interessi attivi e a una diminuzione del 17% degli interessi passivi, scesi a 69,5 milioni di dollari, sostenendo l'espansione del margine.
- La provvista per perdite su crediti è salita a 9,2 milioni di dollari (rispetto a 5,6 milioni), ma la riserva ora copre 93,2 milioni di dollari di perdite attese.
- I ricavi non derivanti da interessi sono rimasti stabili a 11,6 milioni di dollari; i ricavi da BOLI sono raddoppiati, compensando la diminuzione delle commissioni di servizio.
- Le spese non da interessi sono aumentate dell'8% a 60,3 milioni di dollari, principalmente a causa di maggiori costi per compensi e elaborazione dati.
Nel bilancio, il totale degli attivi è diminuito dell'1% rispetto a fine anno, attestandosi a 14,21 miliardi di dollari, mentre la liquidità è scesa a 1,16 miliardi. I prestiti netti sono rimasti praticamente stabili a 10,78 miliardi, mentre i depositi sono leggermente aumentati a 11,69 miliardi; i depositi senza interessi rappresentano il 29%. Gli anticipi FHLB sono stati ridotti di 100 milioni a 508 milioni, e il valore complessivo degli utili e delle perdite non realizzati (AOCI) è migliorato di 7,1 milioni, contribuendo a far salire il patrimonio netto degli azionisti del 2,5% a 1,43 miliardi. La società ha riacquistato circa 261 mila azioni e ha distribuito dividendi ordinari per 10,9 milioni nel trimestre.
Il flusso di cassa operativo è stato positivo per 88,5 milioni da inizio anno; il flusso di cassa libero è stato reinvestito in BOLI e titoli, mentre le uscite finanziarie riflettono il rimborso del debito e i dividendi. Nel complesso, la dinamica degli utili, i costi di finanziamento più bassi e un capitale più solido offrono una prospettiva favorevole, anche se l'aumento della provvista per crediti e la crescita delle spese meritano attenzione.
Dime Community Bancshares (DCOM) presentó un sólido segundo trimestre de 2025. La utilidad neta aumentó a 29,7 millones de dólares (un 61% más interanual) y la utilidad neta disponible para accionistas comunes alcanzó 27,9 millones de dólares, elevando el beneficio básico por acción a 0,64 dólares desde 0,43 dólares. Las ganancias de seis meses subieron a 51,2 millones de dólares (EPS acumulado de 1,09 dólares).
- Los ingresos netos por intereses crecieron un 30% interanual hasta 98,1 millones de dólares debido a un aumento del 5% en los ingresos por intereses y una reducción del 17% en los gastos por intereses, que cayeron a 69,5 millones, apoyando la expansión del margen.
- La provisión para pérdidas crediticias aumentó a 9,2 millones (frente a 5,6 millones), pero la reserva ahora cubre 93,2 millones en pérdidas esperadas.
- Los ingresos no relacionados con intereses se mantuvieron estables en 11,6 millones; los ingresos por BOLI se duplicaron, compensando la caída en las comisiones por servicios.
- Los gastos no relacionados con intereses aumentaron un 8% a 60,3 millones, impulsados por mayores gastos en compensación y procesamiento de datos.
En el balance, los activos totales disminuyeron un 1% desde fin de año hasta 14,21 mil millones de dólares debido a una caída en efectivo a 1,16 mil millones. Los préstamos netos se mantuvieron prácticamente sin cambios en 10,78 mil millones, mientras que los depósitos aumentaron ligeramente a 11,69 mil millones; los depósitos sin intereses representan el 29%. Los adelantos FHLB se redujeron en 100 millones a 508 millones, y el AOCI mejoró en 7,1 millones, ayudando a que el patrimonio de los accionistas subiera un 2,5% a 1,43 mil millones. La empresa recompró alrededor de 261 mil acciones y pagó dividendos comunes por 10,9 millones durante el trimestre.
El flujo de caja operativo fue positivo en 88,5 millones en lo que va del año; el flujo de caja libre se reinvirtió en BOLI y valores, mientras que las salidas de financiamiento reflejaron pagos de deuda y dividendos. En general, el impulso en las ganancias, los costos de financiamiento más bajos y un capital más fuerte presentan un panorama favorable, aunque el aumento en la provisión para créditos y el crecimiento de gastos merecen seguimiento.
Dime Community Bancshares (DCOM)는 2025년 2분기에 강력한 실적을 발표했습니다. 순이익은 2,970만 달러로 전년 대비 61% 증가했으며, 보통주주에게 귀속되는 순이익은 2,790만 달러에 달해 기본 주당순이익(EPS)이 0.64달러로 0.43달러에서 상승했습니다. 6개월 누적 순이익은 5,120만 달러로 (연초 이후 EPS 1.09달러) 증가했습니다.
- 순이자수익은 전년 동기 대비 30% 증가한 9,810만 달러로, 이자수익은 5% 늘었고 이자비용은 17% 감소한 6,950만 달러로 마진 확장을 견인했습니다.
- 대손충당금은 920만 달러로 증가(기존 560만 달러 대비)했으나, 충당금은 현재 예상 손실 9,320만 달러를 커버하고 있습니다.
- 비이자 수익은 1,160만 달러로 안정적이었으며, BOLI 수익이 두 배로 증가해 서비스 수수료 감소를 상쇄했습니다.
- 비이자 비용은 보상 및 데이터 처리 비용 증가로 8% 상승하여 6,030만 달러에 달했습니다.
대차대조표 상 총자산은 연말 대비 1% 감소한 142억 1천만 달러이며, 현금은 11억 6천만 달러로 줄었습니다. 순대출금은 107억 8천만 달러로 거의 변동이 없었고, 예금은 소폭 증가해 116억 9천만 달러에 이르렀으며 비이자 예금은 29%를 차지합니다. FHLB 차입금은 1억 달러 줄어 5억 800만 달러가 되었고, AOCI(기타포괄손익누계액)는 710만 달러 개선되어 주주지분이 2.5% 증가한 14억 3천만 달러가 되었습니다. 회사는 약 26만 1천 주를 재매입하고 분기 동안 1,090만 달러의 보통주 배당금을 지급했습니다.
영업 현금 흐름은 연초 이후 8,850만 달러의 플러스를 기록했으며, 자유 현금은 BOLI 및 증권에 재투자되었고, 자금 조달 현금 유출은 부채 상환과 배당금 지급을 반영했습니다. 전반적으로 수익 모멘텀, 낮은 자금 조달 비용 및 강한 자본력이 긍정적인 전망을 제시하나, 대손충당금 증가와 비용 상승은 주의 깊게 관찰할 필요가 있습니다.
Dime Community Bancshares (DCOM) a publié un solide deuxième trimestre 2025. Le bénéfice net a atteint 29,7 millions de dollars (en hausse de 61 % en glissement annuel) et le bénéfice net attribuable aux actionnaires ordinaires a atteint 27,9 millions de dollars, portant le BPA de base à 0,64 $ contre 0,43 $. Les bénéfices sur six mois ont grimpé à 51,2 millions de dollars (BPA cumulé de 1,09 $).
- Le produit net d’intérêts a bondi de 30 % en glissement annuel à 98,1 millions de dollars, les produits d’intérêts ayant augmenté de 5 % tandis que les charges d’intérêts ont diminué de 17 % à 69,5 millions, soutenant l’expansion de la marge.
- La provision pour pertes sur crédit a augmenté à 9,2 millions (contre 5,6 millions), mais la réserve couvre désormais 93,2 millions de pertes attendues.
- Les revenus hors intérêts sont restés stables à 11,6 millions ; les revenus BOLI ont doublé, compensant la baisse des frais de service.
- Les charges hors intérêts ont augmenté de 8 % à 60,3 millions, tirées par les dépenses de rémunération et de traitement des données.
Au bilan, le total des actifs a légèrement diminué de 1 % depuis la fin d’année pour s’établir à 14,21 milliards de dollars, la trésorerie ayant reculé à 1,16 milliard. Les prêts nets sont restés quasiment stables à 10,78 milliards, tandis que les dépôts ont légèrement augmenté à 11,69 milliards ; les dépôts sans intérêts représentent 29 %. Les avances FHLB ont été réduites de 100 millions à 508 millions, et l’AOCI s’est amélioré de 7,1 millions, aidant les capitaux propres des actionnaires à progresser de 2,5 % à 1,43 milliard. La société a racheté environ 261 000 actions et versé 10,9 millions de dividendes ordinaires au cours du trimestre.
Le flux de trésorerie opérationnel est positif de 88,5 millions depuis le début de l’année ; la trésorerie disponible a été réinvestie dans BOLI et titres, tandis que les sorties de financement reflètent le remboursement de dettes et les dividendes. Globalement, l’élan des bénéfices, la baisse des coûts de financement et un capital renforcé offrent une perspective favorable, bien que l’augmentation des provisions pour créances douteuses et la hausse des dépenses méritent d’être suivies.
Dime Community Bancshares (DCOM) verzeichnete ein starkes zweites Quartal 2025. Der Nettogewinn stieg auf 29,7 Mio. USD (plus 61 % im Jahresvergleich), und der dem Stammaktionär zurechenbare Nettogewinn erreichte 27,9 Mio. USD, was das Basis-Ergebnis je Aktie auf 0,64 USD von 0,43 USD anhob. Die Halbjahresgewinne kletterten auf 51,2 Mio. USD (YTD EPS 1,09 USD).
- Der Nettozinsertrag stieg im Jahresvergleich um 30 % auf 98,1 Mio. USD, da die Zinserträge um 5 % zunahmen, während die Zinsaufwendungen um 17 % auf 69,5 Mio. USD sanken, was die Margenausweitung unterstützte.
- Die Rückstellung für Kreditausfälle erhöhte sich auf 9,2 Mio. USD (gegenüber 5,6 Mio.), doch die Rückstellung deckt nun erwartete Verluste von 93,2 Mio. USD ab.
- Die Erträge aus Nicht-Zinsgeschäften blieben mit 11,6 Mio. USD stabil; die BOLI-Einnahmen verdoppelten sich und kompensierten niedrigere Servicegebühren.
- Die Aufwendungen ohne Zinsen stiegen um 8 % auf 60,3 Mio. USD, bedingt durch höhere Personal- und Datenverarbeitungskosten.
In der Bilanz sanken die Gesamtaktiva um 1 % gegenüber Jahresende auf 14,21 Mrd. USD, da das Bargeld auf 1,16 Mrd. USD zurückging. Die Nettokredite blieben mit 10,78 Mrd. USD nahezu unverändert, während die Einlagen leicht auf 11,69 Mrd. USD anstiegen; nicht verzinsliche Einlagen machen 29 % aus. FHLB-Vorschüsse wurden um 100 Mio. USD auf 508 Mio. USD reduziert, und das AOCI verbesserte sich um 7,1 Mio. USD, was dazu beitrug, dass das Eigenkapital der Aktionäre um 2,5 % auf 1,43 Mrd. USD stieg. Das Unternehmen kaufte rund 261.000 Aktien zurück und zahlte im Quartal Dividenden in Höhe von 10,9 Mio. USD.
Der operative Cashflow war seit Jahresbeginn mit 88,5 Mio. USD positiv; freier Cashflow wurde in BOLI und Wertpapiere reinvestiert, während Finanzierungsabflüsse Schuldentilgungen und Dividenden widerspiegelten. Insgesamt zeichnen die Gewinnentwicklung, niedrigere Finanzierungskosten und ein stärkeres Kapital ein positives Bild, obwohl die gestiegene Kreditrückstellung und Kostenentwicklung beobachtet werden sollten.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
OR
For the transition period from to
Commission file number
(Exact name of registrant as specified in its charter)
N/A
(Former name or former address, if changed since last report)
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(State or other jurisdiction of incorporation or organization) | | (I.R.S. employer identification number) |
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(Address of principal executive offices) | | (Zip Code) |
(
(Registrant’s telephone number, including area code)
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Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| | The | ||
| | The | ||
| | The |
Indicate by check mark whether the registrant (1) has filed all the reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| |
Accelerated Filer ☐ | |
Non-Accelerated Filer ☐ | Smaller Reporting Company |
| Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Classes of Common Stock | | Number of shares outstanding at August 1, 2025 |
$0.01 Par Value | |
Table of Contents
| | | |
PART I – FINANCIAL INFORMATION | Page | ||
Item 1. | | Unaudited Condensed Consolidated Financial Statements | |
| | Consolidated Statements of Financial Condition at June 30, 2025 and December 31, 2024 | 4 |
| | Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 | 5 |
| | Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024 | 6 |
| | Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2025 and 2024 | 7 |
| | Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 | 9 |
| | Notes to Unaudited Condensed Consolidated Financial Statements | 10 |
Item 2. | | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 40 |
Item 3. | | Quantitative and Qualitative Disclosures About Market Risk | 58 |
Item 4. | | Controls and Procedures | 60 |
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PART II - OTHER INFORMATION | | ||
Item 1. | | Legal Proceedings | 60 |
Item 1A. | | Risk Factors | 60 |
Item 2. | | Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities | 61 |
Item 3. | | Defaults Upon Senior Securities | 61 |
Item 4. | | Mine Safety Disclosures | 61 |
Item 5. | | Other Information | 61 |
Item 6. | | Exhibits | 62 |
| | Signatures | 63 |
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Table of Contents
Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q 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,” “seek,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions. Examples of forward-looking statements include, but are not limited to, the proposed use of proceeds from any offering, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, and results of operations and our business, including earnings growth; revenue growth in retail banking, lending and other areas; origination volume in the consumer, commercial and other lending businesses; current and future capital management programs; non-interest income levels, including fees from the title insurance subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies.
Forward-looking statements are based upon various assumptions and analyses made by Dime Community Bancshares, Inc. (together with its direct and indirect subsidiaries, 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 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 conditions or results to differ materially from those expressed or implied by such forward-looking statements. Such factors include, without limitation, the following:
| ● | increases in competitive pressure among financial institutions or from non-financial institutions; |
| ● | inflation and fluctuation in market interest rates, which may affect demand for our products, interest margins and the fair value of financial instruments; |
| ● | our net interest margin is subject to material short-term fluctuation based upon market rates; |
| ● | changes in deposit flows or composition, loan demand or real estate values; |
| ● | changes in the quality and composition of our loan or investment portfolios or unanticipated or significant increases in loan losses; |
| ● | changes in accounting principles, policies or guidelines; |
| ● | changes in corporate and/or individual income tax laws or policies; |
| ● | general socio-economic conditions, including conditions caused by public health emergencies, international conflict, inflation 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; |
| ● | legislative, regulatory or policy changes, including any changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; |
| ● | the imposition of tariffs and the responses of third parties thereto, which may increase inflationary pressures; |
| ● | changes in distribution of federal funds or freezing of federal funding or grants, which could have an adverse effect on the ability of consumers and businesses to pay debts or affect the demand for loans and deposits; |
| ● | technological changes; |
| ● | breaches or failures of the Company’s information technology security systems; |
| ● | the success of new business initiatives or the integration of any acquired entities; |
| ● | difficulties or unanticipated expenses incurred in the consummation of new business initiatives or the integration of any acquired entities; |
| ● | litigation or matters before regulatory agencies; |
| ● | the risks referred to in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K; and/or |
| ● | other unexpected material adverse changes in our financial condition, operations or earnings. |
Accordingly, you should not place undue reliance on forward-looking statements. The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this document.
3
Table of Contents
Item 1. Condensed Consolidated Financial Statements
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
(Dollars in thousands except share amounts)
| | | | | | | |
| | June 30, | | December 31, | | ||
|
| 2025 |
| 2024 | | ||
Assets: |
| | |
| |
| |
Cash and due from banks | | $ | | | $ | | |
Securities available-for-sale, at fair value | | | | | | | |
Securities held-to-maturity | | | | | | | |
Loans held for sale | |
| | |
| | |
Loans held for investment, net of fees and costs | | | | | | | |
Allowance for credit losses | |
| ( | |
| ( | |
Total loans held for investment, net | |
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| | |
Premises and fixed assets, net | |
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Restricted stock | |
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Bank Owned Life Insurance ("BOLI") | |
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Goodwill | |
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Other intangible assets | | | | | | | |
Operating lease assets | |
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| | |
Derivative assets | | | | | | | |
Accrued interest receivable | | | | | | | |
Other assets | |
| | |
| | |
Total assets | | $ | | | $ | | |
| | | | | | | |
Liabilities: | |
|
| |
|
| |
Interest-bearing deposits | | $ | | | $ | | |
Non-interest-bearing deposits | |
| | |
| | |
Deposits (excluding mortgage escrow deposits) | |
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Non-interest-bearing mortgage escrow deposits | | | | | | | |
Interest-bearing mortgage escrow deposits | | | | | | | |
Total mortgage escrow deposits | | | | | | | |
Federal Home Loan Bank of New York ("FHLBNY") advances | |
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Other short-term borrowings | |
| — | |
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Subordinated debt, net | |
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Derivative cash collateral | | | | | | | |
Operating lease liabilities | |
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Derivative liabilities | | | | | | | |
Other liabilities | |
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Total liabilities | |
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Commitments and contingencies | |
| — | |
| — | |
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Stockholders' equity: | |
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| |
Preferred stock, Series A ($ | |
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Common stock ($ | |
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Additional paid-in capital | |
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Retained earnings | |
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Accumulated other comprehensive loss, net of deferred taxes | |
| ( | |
| ( | |
Unearned equity awards | |
| ( | |
| ( | |
Treasury stock, at cost ( | |
| ( | |
| ( | |
Total stockholders' equity | |
| | |
| | |
Total liabilities and stockholders' equity | | $ | | | $ | | |
See Notes to unaudited condensed Consolidated Financial Statements.
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Table of Contents
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands except per share amounts)
| | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
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| 2025 |
| 2024 | | 2025 |
| 2024 | ||||
Interest income: |
| |
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|
Loans | | $ | | | $ | | | $ | | | $ | |
Securities | | | | | | | | | | |
| |
Other short-term investments | |
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| |
Total interest income | |
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Interest expense: | |
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Deposits and escrow | |
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Borrowed funds | |
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Derivative cash collateral | | | | | | | | | | | | |
Total interest expense | |
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| |
Net interest income | |
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Provision for credit losses | |
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Net interest income after provision for credit losses | |
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| | | | | | | | | | | | |
Non-interest income: | |
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| |
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|
Service charges and other fees | |
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Title fees | | | | | | | | | | | | |
Loan level derivative income | |
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BOLI income | |
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Gain on sale of SBA Loans | | | | | | | | | | | | |
Gain on sale of residential loans | |
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Fair value change in equity securities and loans held for sale | | | | | | ( | | | | | | ( |
Net gain on securities | | | | | | — | | | | | | — |
Gain on sale of other assets | | | — | | | | | | — | | | |
Other | |
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Total non-interest income | |
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Non-interest expense: | |
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Salaries and employee benefits | |
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Severance | | | | | | — | | | | | | |
Occupancy and equipment | |
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Data processing costs | |
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Marketing | |
| | |
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Professional services | | | | | | | | | | | | |
Federal deposit insurance premiums | |
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| |
Loss from extinguishment of debt for FHLBNY advances | |
| — | |
| — | |
| — | |
| |
Loss due to pension settlement | | | — | | | — | | | | | | — |
Amortization of other intangible assets | | | | | | | | | | | | |
Other | |
| | |
| | |
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Total non-interest expense | |
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Income before income taxes | |
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Income tax expense | |
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| | |
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Net income | | | | | | | | | | | | |
Preferred stock dividends | | | | | | | | | | | | |
Net income available to common stockholders | | $ | | | $ | | | $ | | | $ | |
Earnings per common share: | |
|
| |
|
| |
|
| |
|
|
Basic | | $ | | | $ | | | $ | | | $ | |
Diluted | | $ | | | $ | | | $ | | | $ | |
See Notes to unaudited condensed Consolidated Financial Statements.
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DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(Dollars in thousands)
| | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
|
| 2025 |
| 2024 | | 2025 |
| 2024 | ||||
Net income | | $ | | | $ | | | $ | | | $ | |
Other comprehensive income: | |
|
| |
|
| |
|
| |
|
|
Change in unrealized gain (loss) on securities: | | | | | | | | | | | | |
Change in net unrealized gain during the period | |
| | |
| | |
| | |
| |
Reclassification adjustment for net gain included in net gain on securities and other assets | | | ( | | | — | | | ( | | | — |
Accretion of net unrealized loss on securities transferred to held-to-maturity | | | | | | | | | | | | |
Credit loss expense | | | | | | — | | | | | | — |
Change in pension and other postretirement obligations: | | | | | | | | | | | | |
Reclassification adjustment for benefit (expense) included in other expense | |
| | |
| ( | |
| | |
| ( |
Change in the net actuarial gain | | | | | | | | | | | | |
Change in unrealized gain (loss) on derivatives: | | | | | | | | | | | | |
Change in net unrealized loss during the period | |
| ( | |
| ( | |
| ( | |
| ( |
Reclassification adjustment for expense included in interest expense | | | | | | | | | | | | |
Other comprehensive income before income taxes | |
| | |
| | |
| | |
| |
Deferred tax expense | |
| | |
| | |
| | |
| |
Total other comprehensive income, net of tax | |
| | |
| | |
| | |
| |
Total comprehensive income | | $ | | | $ | | | $ | | | $ | |
See Notes to unaudited condensed Consolidated Financial Statements.
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DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2025 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | Accumulated | | | | | | | | | | |
| | | | | | | | | | | | | | | | Other | | | | | | | | | | |
| | | | | | | | | | | | | | | | Comprehensive | | | | | | | | | | |
| | Number of | | | | | | | | Additional | | | | | Loss, | | Unearned | | Treasury | | Total | |||||
| | Shares of | | Preferred | | Common | | Paid-in | | Retained | | Net of Deferred | | Equity | | Stock, | | Stockholders’ | ||||||||
|
| Common Stock |
| Stock |
| Stock |
| Capital |
| Earnings |
| Taxes |
| Awards |
| at cost |
| Equity | ||||||||
Beginning balance as of January 1, 2025 |
| | | $ | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | ( | | $ | |
Net income | | — | | | — | | | — | | | — | | | | | | — | | | — | | | — | | | |
Other comprehensive income, net of tax | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Release of shares, net of forfeitures | | | | | — | | | — | | | ( | | | — | | | — | | | ( | | | | | | |
Stock-based compensation | | — | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | |
Shares received related to tax withholding | | ( | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( | | | ( |
Cash dividends declared to preferred stockholders | | — | | | — | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( |
Cash dividends declared to common stockholders | | — | | | — | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( |
Ending balance as of March 31, 2025 | | | | | | | | | | | | | | | | | ( | | | ( | | | ( | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | — | | | — | | | — | | | — | | | | | | — | | | — | | | — | | | |
Other comprehensive income, net of tax | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Release of shares, net of forfeitures | | | | | — | | | — | | | ( | | | — | | | — | | | ( | | | | | | |
Stock-based compensation | | — | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | |
Shares received related to tax withholding | | ( | | | — | | | — | | | | | | — | | | — | | | — | | | ( | | | ( |
Cash dividends declared to preferred stockholders | | — | | | — | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( |
Cash dividends declared to common stockholders | | — | | | — | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( |
Ending balance as of June 30, 2025 | | | | $ | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | ( | | $ | |
7
Table of Contents
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2024 | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | Accumulated | | | | | | | | | | |
| | | | | | | | | | | | | | | | Other | | | | | | | | | | |
| | | | | | | | | | | | | | | | Comprehensive | | | | | | | | | | |
| | Number of | | | | | | | | Additional | | | | | Loss, | | Unearned | | Treasury | | Total | |||||
| | Shares of | | Preferred | | Common | | Paid-in | | Retained | | Net of Deferred | | Equity | | Stock, | | Stockholders’ | ||||||||
|
| Common Stock |
| Stock |
| Stock |
| Capital |
| Earnings |
| Taxes |
| Awards |
| at cost |
| Equity | ||||||||
Beginning balance as of January 1, 2024 |
| | | $ | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | ( | | $ | |
Net income | | — | | | — | | | — | | | — | | | | | | — | | | — | | | — | | | |
Other comprehensive loss, net of tax | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Release of shares, net of forfeitures | | | | | — | | | — | | | ( | | | — | | | — | | | ( | | | | | | |
Stock-based compensation | | — | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | |
Shares received related to tax withholding | | ( | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( | | | ( |
Cash dividends declared to preferred stockholders | | — | | | — | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( |
Cash dividends declared to common stockholders | | — | | | — | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( |
Ending balance as of March 31, 2024 |
| | | | | | | | | | | | | | | | ( | | | ( | | | ( | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | — | | | — | | | — | | | — | | | | | | — | | | — | | | — | | | |
Other comprehensive loss, net of tax | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Release of shares, net of forfeitures | | | | | — | | | — | | | ( | | | — | | | — | | | ( | | | | | | |
Stock-based compensation | | — | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | |
Shares received related to tax withholding | | ( | | | — | | | — | | | — | | | — | | | — | | | — | | | ( | | | ( |
Cash dividends declared to preferred stockholders | | — | | | — | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( |
Cash dividends declared to common stockholders, net | | — | | | — | | | — | | | — | | | ( | | | — | | | — | | | — | | | ( |
Ending balance as of June 30, 2024 | | | | $ | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | ( | | $ | |
See Notes to unaudited condensed Consolidated Financial Statements.
8
Table of Contents
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
| | | | | | |
| | Six Months Ended June 30, | ||||
|
| 2025 |
| 2024 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | | |
| | |
|
Net income | | $ | | | $ | |
Adjustments to reconcile net income to net cash provided by operating activities: | |
|
| |
|
|
Net gain on securities available-for-sale | |
| ( | |
| — |
Gain on sale of other assets | | | — | | | ( |
Fair value change in equity securities and loans held for sale | |
| ( | |
| |
Gain on sale of loans held for sale | |
| ( | |
| ( |
Net depreciation, amortization and accretion | |
| | |
| |
(Accretion) amortization of fair value hedge basis point adjustments | | | ( | | | |
Amortization of other intangible assets | | | | | | |
Loss on extinguishment of debt | | | — | | | |
Stock-based compensation | |
| | |
| |
Provision for credit losses | |
| | |
| |
Originations of loans held for sale | |
| ( | |
| ( |
Proceeds from sale of loans originated for sale | |
| | |
| |
Increase in cash surrender value of BOLI | |
| ( | |
| ( |
Gain from death benefits from BOLI | | | ( | | | — |
Decrease (increase) in other assets | |
| | |
| ( |
Decrease in other liabilities | |
| ( | |
| ( |
Net cash provided by operating activities | |
| | |
| |
CASH FLOWS FROM INVESTING ACTIVITIES: | |
|
| |
|
|
Proceeds from sales of securities available-for-sale | |
| | |
| — |
Purchases of securities available-for-sale | |
| ( | |
| ( |
Purchases of securities held-to-maturity | | | ( | |
| ( |
Proceeds from calls and principal repayments of securities available-for-sale | |
| | |
| |
Proceeds from calls and principal repayments of securities held-to-maturity | | | | | | |
Purchase of BOLI | |
| ( | |
| — |
Proceeds received from cash surrender value of BOLI | | | | | | — |
Loans purchased | |
| ( | |
| ( |
Proceeds from the sale of portfolio loans transferred to held for sale | |
| | |
| |
Increase in loans | |
| ( | |
| ( |
Purchases of fixed assets, net | |
| ( | |
| ( |
Proceeds from the sale of fixed assets and premises held for sale | | | — | | | |
Sales of restricted stock, net | |
| | |
| |
Net cash (used in) provided by investing activities | |
| ( | |
| |
CASH FLOWS FROM FINANCING ACTIVITIES: | |
|
| |
|
|
Increase in deposits | |
| | |
| |
Repayments from FHLBNY advances, short-term, net | |
| ( | |
| ( |
Repayments of FHLBNY advances, long-term | | | — | | | ( |
Proceeds from FHLBNY advances, long-term | | | — | | | |
Repayments of other short-term borrowings, net | |
| ( | |
| — |
Proceeds from subordinated debentures issuance, net | | | — | | | |
Release of stock for benefit plan awards | |
| | |
| |
Payments related to tax withholding for equity awards | |
| ( | |
| ( |
Cash dividends paid to preferred stockholders | | | ( | | | ( |
Cash dividends paid to common stockholders | |
| ( | |
| ( |
Net cash used in financing activities | |
| ( | |
| ( |
Decrease in cash and cash equivalents | |
| ( | |
| ( |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | |
| | |
| |
CASH AND CASH EQUIVALENTS, END OF PERIOD | | $ | | | $ | |
| |
|
| |
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |
|
| |
|
|
Cash paid for income taxes | | $ | | | $ | |
Cash paid for interest | |
| | |
| |
Loans transferred to held for sale | |
| | |
| |
Loans transferred to held for investment | | | | | | — |
Operating lease assets in exchange for operating lease liabilities | | | | | | |
See Notes to unaudited condensed Consolidated Financial Statements.
9
Table of Contents
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
Dime Community Bancshares, Inc. (the “Holding Company”) is engaged in commercial banking and financial services through its wholly-owned subsidiary, Dime Community Bank (“the Bank”). The Bank was established in 1910 and is headquartered in Hauppauge, New York. The Holding Company was incorporated under the laws of the State of New York in 1988 to serve as the holding company for the Bank. The Holding Company functions primarily as the holder of all of the Bank’s common stock. Our bank operations also include Dime Abstract LLC (“Dime Abstract”), a wholly-owned subsidiary of the Bank, which is a broker of title insurance services. As of June 30, 2025, we operated
The unaudited Consolidated Financial Statements presented in this Quarterly Report on Form 10-Q include the collective results of the Holding Company and its wholly-owned subsidiary, the Bank, which are collectively herein referred to as “we”, “us”, “our” and the “Company.”
The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited Consolidated Financial Statements included herein reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. In preparing the interim financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Such estimates are subject to change in the future as additional information becomes available or previously existing circumstances are modified. Actual future results could differ significantly from those estimates. The annualized results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain reclassifications have been made to prior year amounts, and the related discussion and analysis, to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity. The unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which remain significantly unchanged and have been followed similarly as in prior periods.
2. SUMMARY OF ACCOUNTING POLICIES
Summary of Significant Accounting Policies
In the opinion of management, the accompanying unaudited condensed Consolidated Financial Statements contain all adjustments necessary for a fair presentation of the Company’s financial condition as of June 30, 2025 and December 31, 2024, the results of operations and statements of comprehensive income for the three and six months ended June 30, 2025 and 2024, the changes in stockholders’ equity for the three and six months ended June 30, 2025 and 2024, and cash flows for the six months ended June 30, 2025 and 2024.
Please see “Part I - Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” for a discussion of areas in the accompanying unaudited condensed Consolidated Financial Statements utilizing significant estimates.
10
Table of Contents
Adoption of Recent Accounting Standards
ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures (Topic 280)
The Financial Accounting Standards Board issued Accounting Standards Update 2023-07 to improve reportable segment disclosures by requiring public business entities to disclose significant expense categories and amounts for each reportable segment, where significant expense categories are defined as those that are regularly reported to an entity’s chief operating decision-maker and included in a segment’s reported measures of profit or loss. ASU 2023-07 became effective for the Company for interim periods on January 1, 2025. The adoption of ASU 2023-07 did not have a material effect on the Company’s consolidated financial statements. For a further discussion please see Note 17 to the condensed Consolidated Financial Statements.
ASU No. 2023-09—Income Taxes (Topic 740)—Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU No. 2023-09—Income Taxes (Topic 740)—Improvements to Income Tax Disclosures, intended to enhance the transparency of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information.
Specifically, the amendments in this ASU require disclosure of: (i) a tabular reconciliation, using both percentages and reporting currency amounts, with prescribed categories that are required to be disclosed, and the separate disclosure and disaggregation of prescribed reconciling items with an effect equal to 5% or more of the amount determined by multiplying pretax income from continuing operations by the applicable statutory rate; (ii) a qualitative description of the states and local jurisdictions that make up the majority (greater than 50%) of the effect of the state and local income taxes; and (iii) amount of income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions that comprise 5% or more of total income taxes paid, net of refunds received. The ASU also includes other amendments to improve the effectiveness of income tax disclosures.
ASU 2023-09 became effective for the Company on January 1, 2025 for annual reporting periods, on a prospective basis and is not anticipated to have a material effect on the Company’s consolidated financial statements.
3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Activity in accumulated other comprehensive income (loss), net of tax, was as follows:
| | | | | | | | | | | | |
|
| | |
| | |
| | |
| Total | |
| | | | | | | | | | | Accumulated | |
| | | | Defined | | | | | Other | |||
| | | | Benefit | | | | | Comprehensive | |||
(In thousands) |
| Securities |
| Plans |
| Derivatives |
| Income (Loss) | ||||
Balance as of January 1, 2025 | | $ | ( | | $ | ( | | $ | | | $ | ( |
Other comprehensive income (loss) before reclassifications | |
| | |
| | |
| ( | |
| |
Amounts reclassified from accumulated other comprehensive income | |
| | |
| | |
| | |
| |
Net other comprehensive income (loss) during the period | |
| | |
| | |
| ( | |
| |
Balance as of June 30, 2025 | | $ | ( | | $ | ( | | $ | ( | | $ | ( |
| | | | | | | | | | | | |
Balance as of January 1, 2024 | | $ | ( | | $ | ( | | $ | | | $ | ( |
Other comprehensive income (loss) before reclassifications | |
| | |
| | |
| ( | |
| |
Amounts reclassified from accumulated other comprehensive income (loss) | |
| | |
| ( | |
| | |
| |
Net other comprehensive income during the period | |
| | |
| | |
| | |
| |
Balance as of June 30, 2024 | | $ | ( | | $ | ( | | $ | | | $ | ( |
11
Table of Contents
The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below for the periods indicated.
| | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
(In thousands) |
| 2025 |
| 2024 | | 2025 |
| 2024 | ||||
Change in unrealized gain (loss) on securities: | |
|
| |
|
| |
|
| |
|
|
Change in net unrealized gain during the period | | $ | | | $ | | | $ | | | $ | |
Reclassification adjustment for net gain included in net gain on securities and other assets | |
| ( | |
| — | |
| ( | |
| — |
Accretion of net unrealized loss on securities transferred to held-to-maturity | | | | |
| | | | | | | |
Credit loss expense | | | | | | — | | | | | | — |
Net change | |
| | |
| | |
| | |
| |
Tax expense | |
| | |
| | |
| | |
| |
Net change in unrealized gain on securities, net of reclassification adjustments and tax | |
| | |
| | |
| | |
| |
Change in pension and other postretirement obligations: | |
|
| |
|
| |
|
| |
|
|
Reclassification adjustment for benefit (expense) included in other expense | |
| | |
| ( | |
| | |
| ( |
Change in the net actuarial gain | |
| | |
| | |
| | |
| |
Net change | |
| | | | | |
| | |
| |
Tax expense | |
| | |
| | |
| | |
| |
Net change in pension and other postretirement obligations | |
| | |
| | |
| | |
| |
Change in unrealized gain (loss) on derivatives: | |
|
| |
|
| |
|
| |
|
|
Change in net unrealized loss during the period | |
| ( | |
| ( | |
| ( | |
| ( |
Reclassification adjustment for expense included in interest expense | |
| | |
| | |
| | |
| |
Net change | |
| ( | |
| ( | |
| ( | |
| |
Tax (benefit) expense | |
| ( | |
| ( | |
| ( | |
| |
Net change in unrealized (loss) gain on derivatives, net of reclassification adjustments and tax | |
| ( | |
| ( | |
| ( | |
| |
Other comprehensive income, net of tax | | $ | | | $ | | | $ | | | $ | |
4. EARNINGS PER COMMON SHARE
Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average common shares outstanding during the reporting period. Diluted EPS is computed using the same method as basic EPS, but reflects the potential dilution that would occur if “in the money” stock options were exercised and converted into common stock. In determining the weighted-average shares outstanding for basic and diluted EPS, treasury shares are excluded. Vested restricted stock award (“RSA”) shares are included in the calculation of the weighted-average shares outstanding for basic and diluted EPS. Unvested RSA and performance-based share awards (“PSA”) shares not yet awarded are recognized as a special class of participating securities under ASC 260, and are included in the calculation of the weighted-average shares outstanding for basic and diluted EPS. Basic and diluted EPS on common stock and the basic and diluted EPS on participating securities are the same.
12
Table of Contents
The following is a reconciliation of the numerators and denominators of basic and diluted EPS for the periods presented:
| | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
(In thousands except share and per share amounts) |
| 2025 |
| 2024 |
| 2025 |
| 2024 | ||||
Net income available to common stockholders | | $ | | | $ | | | $ | | | $ | |
Less: Dividends paid and earnings allocated to participating securities | |
| ( | |
| ( | |
| ( | |
| ( |
Income attributable to common stock | | $ | | | $ | | | $ | | | $ | |
Weighted-average common shares outstanding, including participating securities | |
| | |
| | |
| | |
| |
Less: weighted-average participating securities | |
| ( | |
| ( | |
| ( | |
| ( |
Weighted-average common shares outstanding | |
| | |
| | |
| | |
| |
Basic EPS | | $ | | | $ | | | $ | | | $ | |
| |
|
| |
|
| |
|
| |
|
|
Income attributable to common stock | | $ | | | $ | | | $ | | | $ | |
Weighted-average common shares outstanding | |
| | |
| | |
| | |
| |
Weighted-average common equivalent shares outstanding | |
| — | |
| — | |
| — | |
| — |
Weighted-average common and equivalent shares outstanding | |
| | |
| | |
| | |
| |
Diluted EPS | | $ | | | $ | | | $ | | | $ | |
Common and equivalent shares resulting from the dilutive effect of “in-the-money” outstanding stock options are calculated based upon the excess of the average market value of the common stock over the exercise price of outstanding in-the-money stock options during the period.
There were
5. PREFERRED STOCK
Dime Community Bancshares, Inc. has
The Company expects to pay dividends when, as, and if declared by its board of directors, at a fixed rate of
13
Table of Contents
6. SECURITIES
The following tables summarize the major categories of securities as of the dates indicated:
| | | | | | | | | | | | | | | |
| | June 30, 2025 | |||||||||||||
| | | | | Gross | | Gross | | | Allowance | | | | ||
| | Amortized | | Unrealized | | Unrealized | | | For Credit | | Fair | ||||
(In thousands) |
| Cost |
| Gains |
| Losses | | | Losses |
| Value | ||||
Securities available-for-sale: |
| |
|
| |
|
| |
| | | |
| |
|
Agency notes | | $ | | | $ | — | | $ | ( | | $ | — | | $ | |
Corporate securities | |
| | | | | | | ( | | | ( | |
| |
Pass-through mortgage-backed securities ("MBS") issued by government sponsored entities ("GSEs") | |
| | | | | | | ( | | | — | |
| |
Agency CMOs | |
| | | | | | | ( | | | — | |
| |
State and municipal obligations | | | | | | — | | | ( | | | — | | | |
Total securities available-for-sale | | $ | | | $ | | | $ | ( | | $ | ( | | $ | |
| | | | | | | | | | | | |
| | June 30, 2025 | ||||||||||
| | | | | Gross | | Gross | | | | ||
| | Amortized | | Unrecognized | | Unrecognized | | Fair | ||||
(In thousands) |
| Cost |
| Gains |
| Losses |
| Value | ||||
Securities held-to-maturity: |
| |
|
| |
|
| |
|
| |
|
Agency notes | | $ | | | $ | — | | $ | ( | | $ | |
Corporate securities | | | | | | | | | ( | | | |
Pass-through MBS issued by GSEs | | | | | | | | | ( | | | |
Agency CMOs | |
| | |
| | |
| ( | |
| |
Total securities held-to-maturity | | $ | | | $ | | | $ | ( | | $ | |
| | | | | | | | | | | | |
| | December 31, 2024 | ||||||||||
| | | | | Gross | | Gross | | | | ||
| | Amortized | | Unrealized | | Unrealized | | Fair | ||||
(In thousands) |
| Cost |
| Gains |
| Losses |
| Value | ||||
Securities available-for-sale: |
| |
|
| |
|
| |
|
| |
|
Agency notes | | $ | | | $ | — | | $ | ( | | $ | |
Corporate securities | | | | |
| | |
| ( | |
| |
Pass-through MBS issued by GSEs | |
| | |
| | |
| ( | |
| |
Agency CMOs | |
| | |
| | |
| ( | |
| |
State and municipal obligations | |
| | | | — | | | ( | | | |
Total securities available-for-sale | | $ | | | $ | | | $ | ( | | $ | |
| | | | | | | | | | | | |
| | December 31, 2024 | ||||||||||
| | | | | Gross | | Gross | | | | ||
| | Amortized | | Unrecognized | | Unrecognized | | Fair | ||||
(In thousands) |
| Cost |
| Gains |
| Losses |
| Value | ||||
Securities held-to-maturity: |
| |
|
| |
|
| |
|
| |
|
Agency notes | | $ | | | $ | — | | $ | ( | | $ | |
Corporate securities | | | | | | | | | ( | | | |
Pass-through MBS issued by GSEs | | | | | | — | | | ( | | | |
Agency CMOs | |
| | |
| | |
| ( | |
| |
Total securities held-to-maturity | | $ | | | $ | | | $ | ( | | $ | |
There were
The carrying value of securities pledged at June 30, 2025 and December 31, 2024 was $
At June 30, 2025 and December 31, 2024, there were
14
Table of Contents
The following table presents the amortized cost and fair value of securities by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
| | | | | | |
| | June 30, 2025 | ||||
| | Amortized | | Fair | ||
(In thousands) | | Cost | | Value | ||
Available-for-sale | | | | | | |
Within one year | | $ | | | $ | |
One to five years | | | | | | |
Five to ten years | | | | | | |
Beyond ten years | | | — | | | — |
Pass-through MBS issued by GSEs and agency CMOs | | | | | | |
Total | | $ | | | $ | |
| | | | | | |
Held-to-maturity | | | | | | |
Within one year | | $ | — | | $ | — |
One to five years | | | | | | |
Five to ten years | | | | | | |
Beyond ten years | | | — | | | — |
Pass-through MBS issued by GSEs and agency CMOs | | | | | | |
Total | | $ | | | $ | |
The following table presents the information related to sales of securities available-for-sale as of the periods indicated:
| | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | | ||||||||
| | June 30, | | June 30, | | ||||||||
(In thousands) |
| 2025 |
| 2024 | | 2025 |
| 2024 | | ||||
Securities available-for-sale | | | | | | | | | | | | | |
Proceeds | | $ | | | $ | — | | $ | | | $ | — | |
Gross gains | | | | | | — | | | | | | — | |
Tax expense on gains | | | | | | — | | | | | | — | |
Gross losses | | | | | | — | | | | | | — | |
Tax benefit on losses | | | | | | — | | | | | | — | |
There were
The following table summarizes the gross unrealized losses and fair value of securities available-for-sale aggregated by investment category and the length of time the securities were in a continuous unrealized loss position as of the dates indicated:
| | | | | | | | | | | | | | | | | | |
| | June 30, 2025 | ||||||||||||||||
| | Less than 12 | | 12 Consecutive | | | | | | | ||||||||
| | Consecutive Months | | Months or Longer | | Total | ||||||||||||
| | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | ||||||
(In thousands) |
| Value |
| Losses |
| Value |
| Losses |
| Value |
| Losses | ||||||
Securities available-for-sale: |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
Agency notes | | $ | — | | $ | — | | $ | | | $ | | | $ | | | $ | |
Corporate securities | | | | | | | | | | | | | | | | | | |
Pass-through MBS issued by GSEs | | | | | | | | | | | | | | | | | | |
Agency CMOs | | | — | | | — | | | | | | | | | | | | |
State and municipal obligations | |
| — | |
| — | |
| | |
| | | | | | | |
15
Table of Contents
| | | | | | | | | | | | | | | | | | |
| | December 31, 2024 | ||||||||||||||||
| | Less than 12 | | 12 Consecutive | | | | | | | ||||||||
| | Consecutive Months | | Months or Longer | | Total | ||||||||||||
| | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | ||||||
(In thousands) |
| Value |
| Losses |
| Value |
| Losses |
| Value |
| Losses | ||||||
Securities available-for-sale: |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
Agency Notes | | $ | — | | $ | — | | $ | | | $ | | | $ | | | $ | |
Corporate securities | | | | | | | | | | | | | | | | | | |
Pass-through MBS issued by GSEs | | | | | | | | | | | | | | | | | | |
Agency CMOs | | | | | | | | | | | | | | | | | | |
State and municipal obligations | | | | |
| | |
| | |
| | | | | | | |
As of June 30, 2025, the Company recorded a $
Management evaluates available-for-sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than amortized cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.
At June 30, 2025, substantially all of the securities in an unrealized loss position had a fixed interest rate and the cause of the temporary impairment was directly related to changes in interest rates. The Company generally views changes in fair value caused by changes in interest rates as temporary, which is consistent with its experience. The following major security types held by the Company are all issued by U.S. government entities and agencies and therefore either explicitly or implicitly guaranteed by the U.S. government: Agency Notes, Treasury Securities, Pass-through MBS issued by GSEs, Agency Collateralized Mortgage Obligations.
The following table presents a rollforward of the allowance for credit losses for corporate securities available-for-sale for the three and six months ended June 30, 2025 and 2024:
| | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, | ||||||||
(In thousands) |
| 2025 | | 2024 |
| 2025 | | 2024 | ||||
Beginning balance | | $ | | | $ | — | | $ | — | | $ | — |
Provision for credit losses | |
| | |
| — | |
| | |
| — |
Ending balance | | $ | | | $ | — | | $ | | | $ | — |
16
Table of Contents
7. LOANS HELD FOR INVESTMENT, NET
The following table presents the loan categories for the period ended as indicated:
| | | | | | |
(In thousands) |
| June 30, 2025 |
| December 31, 2024 | ||
Business loans (1) | | $ | | | $ | |
One-to-four family residential and cooperative/condominium apartment | | | | | | |
Multifamily residential and residential mixed-use | |
| | |
| |
Non-owner-occupied commercial real estate | |
| | |
| |
Acquisition, development, and construction ("ADC") | |
| | |
| |
Other loans | |
| | |
| |
Total | |
| | |
| |
Fair value hedge basis point adjustments (2) | | | | | | |
Total loans, net of fair value hedge basis point adjustments | | | | | | |
Allowance for credit losses | |
| ( | |
| ( |
Loans held for investment, net | | $ | | | $ | |
| (1) | Business loans include commercial and industrial loans (“C&I loans”), owner-occupied commercial real estate loans and SBA Paycheck Protection Program (“PPP”) loans. |
| (2) | The loan portfolio included a fair value hedge basis point adjustment to the carrying amount of hedged business loans, one-to-four family residential mortgage loans, multifamily residential mortgage loans and non-owner occupied commercial real estate loans. |
The following tables present data regarding the allowance for credit losses activity on loans held for investment for the periods indicated:
| | | | | | | | | | | | | | | | | | | | | |
| | At or for the Three Months Ended June 30, 2025 | |||||||||||||||||||
| | | | | One-to-Four | | | | | | | | | | | | | | | ||
| | | | | Family | | Multifamily | | | | | | | | | | | | |||
| | | | | Residential and | | Residential | | | | | | | | | | | | |||
| | | | | Cooperative/ | | and | | Non-Owner-Occupied | | | | | | | | | | |||
| | Business | | Condominium | | Residential | | Commercial | | | | Other | | | | ||||||
(In thousands) |
| Loans |
| Apartment |
| Mixed-Use |
| Real Estate |
| ADC |
| Loans |
| Total | |||||||
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
| $ | |
Provision (recovery) for credit losses | |
| | | | ( | | | | | | | |
| | | | | |
| |
Charge-offs | |
| ( | |
| — | |
| — | |
| ( | |
| — | |
| ( | |
| ( |
Recoveries | | | | | | — | | | | | | — | | | — | | | | | | |
Ending balance | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | | | | | | |
| | At or for the Three Months Ended June 30, 2024 | |||||||||||||||||||
| | | | | One-to-Four | | | | | | | | | | | | | | | ||
| | | | | Family | | Multifamily | | | | | | | | | | | | |||
| | | | | Residential and | | Residential | | | | | | | | | | | | |||
| | | | | Cooperative/ | | and | | Non-Owner-Occupied | | | | | | | | | | |||
| | Business | | Condominium | | Residential | | Commercial | | | | Other | | | | ||||||
(In thousands) |
| Loans |
| Apartment |
| Mixed-Use |
| Real Estate |
| ADC |
| Loans |
| Total | |||||||
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
| $ | |
Provision (recovery) for credit losses | |
| | | | | | | | | | ( | |
| | | | | |
| |
Charge-offs | |
| ( | |
| — | |
| ( | |
| — | |
| — | |
| ( | |
| ( |
Recoveries | | | | | | — | | | — | | | — | | | — | | | | | | |
Ending balance | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
17
Table of Contents
| | | | | | | | | | | | | | | | | | | | | |
| | At or for the Six Months Ended June 30, 2025 | |||||||||||||||||||
| | | | | One-to-Four | | | | | | | | | | | | | | | ||
| | | | | Family | | Multifamily | | | | | | | | | | | | |||
| | | | | Residential and | | Residential | | | | | | | | | | | | |||
| | | | | Cooperative/ | | and | | Non-Owner-Occupied | | | | | | | | | | |||
| | Business | | Condominium | | Residential | | Commercial | | | | Other | | | | ||||||
(In thousands) |
| Loans |
| Apartment |
| Mixed-Use |
| Real Estate |
| ADC |
| Loans |
| Total | |||||||
Allowance for credit losses: | | | | | | | | | | | | | | | | | | |
| | |
Beginning balance | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
| $ | |
Provision for credit losses | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Charge-offs | |
| ( | |
| ( | |
| — | |
| ( | |
| — | |
| ( | |
| ( |
Recoveries | | | | | | — | | | | | | — | | | — | | | | | | |
Ending balance | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | | | | | | |
| | At or for the Six Months Ended June 30, 2024 | |||||||||||||||||||
| | | | | One-to-Four | | | | | | | | | | | | | | | ||
| | | | | Family | | Multifamily | | | | | | | | | | | | |||
| | | | | Residential and | | Residential | | | | | | | | | | | | |||
| | | | | Cooperative/ | | and | | Non-Owner-Occupied | | | | | | | | | | |||
| | Business | | Condominium | | Residential | | Commercial | | | | Other | | | | ||||||
(In thousands) |
| Loans |
| Apartment |
| Mixed-Use |
| Real Estate |
| ADC |
| Loans |
| Total | |||||||
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
| $ | |
Provision (recovery) for credit losses | |
| | | | | | | | | | ( | |
| | | | | |
| |
Charge-offs | |
| ( | |
| — | |
| ( | |
| — | |
| — | |
| ( | |
| ( |
Recoveries | |
| | | | — | | | — | | | — | |
| — | | | | |
| |
Ending balance | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
The following tables present the amortized cost basis of loans on non-accrual status as of the periods indicated:
| | | | | | | | | |
| | June 30, 2025 | |||||||
| | Non-accrual with | | Non-accrual with | | Related | |||
(In thousands) |
| No Allowance |
| Allowance |
| Allowance | |||
Business loans | | $ | | | $ | | | $ | |
One-to-four family residential and cooperative/condominium apartment | | | — | | | | | | |
Non-owner-occupied commercial real estate | | | | | | | | | |
ADC | | | — | | | | | | |
Total | | $ | | | $ | | | $ | |
| | | | | | | | | |
| | December 31, 2024 | |||||||
| | Non-accrual with | | Non-accrual with | | Related | |||
(In thousands) |
| No Allowance |
| Allowance |
| Allowance | |||
Business loans | | $ | | | $ | | | $ | |
One-to-four family residential and cooperative/condominium apartment | | | — | | | | | | |
Non-owner-occupied commercial real estate | | | | | | | | | |
ADC | | | — | | | | | | |
Other loans | | | — | | | | | | |
Total | | $ | | | $ | | | $ | |
The Company did
18
Table of Contents
The following tables summarize the past due status of the Company’s investment in loans as of the dates indicated:
| | | | | | | | | | | | | | | | | | | | | |
| | June 30, 2025 | |||||||||||||||||||
| | | | | | | | Loans 90 | | | | | | | | | | | | | |
| | | | | | | | Days or | | | | | Total | | | | | | | ||
| | 30 to 59 | | 60 to 89 | | More Past Due | | | | | Past Due | | | | | | | ||||
| | Days | | Days | | and Still | | | | and | | | | | Total | ||||||
(In thousands) |
| Past Due |
| Past Due |
| Accruing Interest |
| Non-accrual |
| Non-accrual |
| Current |
| Loans | |||||||
Business loans | | $ | | | $ | | | $ | — | | $ | | | $ | | | $ | | | $ | |
One-to-four family residential and cooperative/condominium apartment | |
| | |
| — | |
| — | |
| | |
| | |
| | |
| |
Multifamily residential and residential mixed-use | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Non-owner-occupied commercial real estate | |
| | |
| — | |
| — | |
| | |
| | |
| | |
| |
ADC | |
| — | | | — | | | — | | | | |
| | |
| | |
| |
Other loans | | | | | | | | | — | | | — | | | | | | | | | |
Total | | $ | | | $ | | | $ | — | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 | |||||||||||||||||||
| | | | | | | | Loans 90 | | | | | | | | | | | | | |
| | | | | | | | Days or | | | | | Total | | | | | | | ||
| | 30 to 59 | | 60 to 89 | | More Past Due | | | | | Past Due | | | | | | | ||||
| | Days | | Days | | and Still | | | | and | | | | | Total | ||||||
(In thousands) |
| Past Due |
| Past Due |
| Accruing Interest |
| Non-accrual |
| Non-accrual |
| Current |
| Loans | |||||||
Business loans | | $ | | | $ | | | $ | — | | $ | | | $ | | | $ | | | $ | |
One-to-four family residential and cooperative/condominium apartment | |
| | |
| | |
| — | |
| | |
| | |
| | |
| |
Multifamily residential and residential mixed-use | |
| | |
| | |
| — | |
| — | |
| | |
| | |
| |
Non-owner-occupied commercial real estate | |
| | |
| — | |
| — | |
| | |
| | |
| | |
| |
ADC | |
| — | |
| — | |
| — | |
| | |
| | |
| | |
| |
Other loans | | | | | | — | | | — | | | | | | | | | | | | |
Total | | $ | | | $ | | | $ | — | | $ | | | $ | | | $ | | | $ | |
Accruing Loans 90 Days or More Past Due:
There were
Collateral Dependent Loans:
The Company had collateral dependent loans which were individually evaluated to determine expected credit losses as of the dates indicated:
| | | | | | | | | | | | |
| | June 30, 2025 | | December 31, 2024 | ||||||||
| | Real Estate | | Associated Allowance | | Real Estate | | Associated Allowance | ||||
(In thousands) | | Collateral Dependent | | for Credit Losses | | Collateral Dependent | | for Credit Losses | ||||
Business loans | | $ | | | $ | | | $ | | | $ | |
Non-owner-occupied commercial real estate | | | | | | — | | | | | | |
ADC | | | | | | | | | | | | |
Total | | $ | | | $ | | | $ | | | $ | |
19
Table of Contents
Loan Restructurings
The Company applies the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include conditions where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and/or a combination of these modifications. The disclosures related to loan restructuring are only for modifications that directly affect cash flows.
The following tables presents loans modified to borrowers experiencing financial difficulty, disaggregated by loan category and type of concession granted during the three and six months ended June 30, 2025 and 2024:
| | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended June 30, 2025 | | ||||||||||||||||||
| | | | | | | | | | Significant | | | | | | | | ||||
| | | | | | | | Term | | Payment | | Term | | | | | | | |||
| | | | | | | | Extension | | Delay | | Extension | | | | | % of | | |||
| | | | | | | | and | | and | | and | | | | | Total | | |||
| | | | Significant | | Significant | | Interest | | Interest | | | | | Class of | | |||||
| | Term | | Payment | | Payment | | Rate | | Rate | | | | Financing | | ||||||
(Dollars in thousands) |
| Extension |
| Delay |
| Delay |
| Reduction |
| Reduction | | Total |
| Receivable | | ||||||
Business loans | | $ | | | $ | — | | $ | — | | $ | — | | $ | — | | $ | | | % | |
Multifamily residential and residential mixed-use | |
| — | |
| | |
| — | |
| | |
| — | |
| | | | |
Total | | $ | | | $ | | | $ | — | | $ | | | $ | — | | $ | | | % | |
| | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended June 30, 2024 | | | | ||||||||||||||||
| | | | | | | | | | Significant | | | | | | | | ||||
| | | | | | | | Term | | Payment | | Term | | | | | | | |||
| | | | | | | | Extension | | Delay | | Extension | | | | | % of | | |||
| | | | | | | | and | | and | | and | | | | | Total | | |||
| | | | Significant | | Significant | | Interest | | Interest | | | | | Class of | | |||||
| | Term | | Payment | | Payment | | Rate | | Rate | | | | Financing | | ||||||
(Dollars in thousands) |
| Extension |
| Delay |
| Delay |
| Reduction |
| Reduction | | Total |
| Receivable | | ||||||
Business loans | | $ | | | $ | — | | $ | — | | $ | — | | $ | — | | $ | | | % | |
One-to-four family residential and cooperative/condominium apartment | |
| — | |
| — | |
| — | |
| — | |
| | | | | | | |
Total | | $ | | | $ | — | | $ | — | | $ | — | | $ | | | $ | | | % | |
| | | | | | | | | | | | | | | | | | | | | |
| | For the Six Months Ended June 30, 2025 | | ||||||||||||||||||
| | | | | | Term Extension | | Significant Payment Delay | | Term Extension | | | | | % of | | |||||
| | | | Significant | | and | | and | | and | | | | | Total | | |||||
(Dollars in thousands) |
| Term |
| Payment |
| Payment Delay |
| Rate |
| Rate | | Total |
| Financing | | ||||||
Business loans | | $ | | | $ | | | $ | — | | $ | — | | $ | | | $ | | | % | |
Multifamily residential and residential mixed-use | |
| — | |
| | |
| — | |
| | |
| — | |
| | | | |
Non-owner-occupied commercial real estate | |
| — | |
| | |
| — | |
| | |
| — | |
| | | | |
Total | | $ | | | $ | | | $ | — | | $ | | | $ | | | $ | | | % | |
| | | | | | | | | | | | | | | | | | | | | |
| | For the Six Months Ended June 30, 2024 | | ||||||||||||||||||
| | | | | | | | | | | | Significant | | | | | | | |||
| | | | | | Term Extension | | Significant Payment Delay | | Payment Delay, Term Extension | | | | | % of | | |||||
| | | | Significant | | and | | and | | and | | | | | Total | | |||||
(Dollars in thousands) |
| Term |
| Payment |
| Payment Delay |
| Rate |
| Rate | | Total |
| Financing | | ||||||
Business loans | | $ | | | $ | | | $ | | | $ | | | $ | — | | $ | | | % | |
One-to-four family residential and cooperative/condominium apartment | | | — | | | — | | | | | | — | | | | | | | | | |
Multifamily residential and residential mixed-use | |
| — | |
| | |
| — | |
| — | |
| — | |
| | | | |
Non-owner-occupied commercial real estate | |
| — | |
| | |
| — | |
| — | |
| — | |
| | | | |
Total | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | % | |
20
Table of Contents
The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty as of the dates indicated:
| | | | | | | | |
| | For the Three Months Ended June 30, 2025 | ||||||
| | | | | | | | |
| | Weighted Average | | | Weighted Average | | | |
| | Interest Rate | | | Months of | | Weighted Average | |
(Dollars in thousands) |
| Reductions | | | Term Extensions |
| Payment Delay | |
Business loans | | — | % | | | $ | — | |
Multifamily residential and residential mixed-use | | | | | — | |
| |
Non-owner-occupied commercial real estate | | — | | | — | |
| — |
| | | | | | | | |
| | For the Three Months Ended June 30, 2024 | ||||||
| | Weighted Average | | | Weighted Average | | | |
| | Interest Rate | | | Months of | | Weighted Average | |
(Dollars in thousands) |
| Reductions | | | Term Extensions |
| Payment Delay | |
Business loans | | — | % | | | $ | — | |
One-to-four family residential and cooperative/condominium apartment | | | | | | | — | |
| | | | | | | | |
| | For the Six Months Ended June 30, 2025 | ||||||
| | Weighted Average | | | Weighted Average | | | |
| | Interest Rate | | | Months of | | Weighted Average | |
(Dollars in thousands) |
| Reductions | | | Term Extensions |
| Payment Delay | |
Business loans | | | % | | | $ | | |
Multifamily residential and residential mixed-use | | | | | — | | | |
Non-owner-occupied commercial real estate | | | | | — | | | |
| | | | | | | | |
| | For the Six Months Ended June 30, 2024 | ||||||
| | Weighted Average | | | Weighted Average | | | |
| | Interest Rate | | | Months of | | Weighted Average | |
(Dollars in thousands) |
| Reductions | | | Term Extensions |
| Payment Delay | |
Business loans | | | % | | | $ | | |
One-to-four family residential and cooperative/condominium apartment | | | | | | | | |
Multifamily residential and residential mixed-use | | — | | | — | | | |
Non-owner-occupied commercial real estate | | — | | | — | | | |
The Bank monitors the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables describe the performance of loans that have been modified during the past 12 months.
| | | | | | | | | | | | | | | | | | |
| | June 30, 2025 | ||||||||||||||||
| | | | 30-59 | | 60-89 | | 90+ | | | | | ||||||
(In thousands) |
| Current |
| Days Past Due |
| Days Past Due |
| Days Past Due |
| Non-Accrual |
| Total | ||||||
Business loans | | $ | | | $ | — | | $ | — | | $ | — | | $ | | | $ | |
Multifamily residential and residential mixed-use | |
| | |
| — | |
| | |
| — | | | — | |
| |
Non-owner-occupied commercial real estate | |
| | |
| — | |
| — | |
| — | | | | |
| |
Total | | $ | | | $ | — | | $ | | | $ | — | | $ | | | $ | |
| | | | | | | | | | | | | | | | | | |
| | June 30, 2024 | ||||||||||||||||
| | | | 30-59 | | 60-89 | | 90+ | | | | | ||||||
(In thousands) |
| Current |
| Days Past Due |
| Days Past Due |
| Days Past Due |
| Non-Accrual |
| Total | ||||||
Business loans | | $ | | | $ | — | | $ | — | | $ | — | | $ | | | $ | |
One-to-four family residential and cooperative/condominium apartment | | | | | | — | | | — | | | — | | | | | | |
Multifamily residential and residential mixed-use | |
| | |
| — | |
| | |
| — | | | — | |
| |
Non-owner-occupied commercial real estate | |
| | |
| — | |
| — | |
| — | | | — | |
| |
Total | | $ | | | $ | — | | $ | | | $ | — | | $ | | | $ | |
21
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As of June 30, 2025, there was one $
Credit Quality Indicators
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit structure, loan documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying them based on credit risk. The Company uses the following definitions for risk ratings:
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of then existing facts, conditions, and values, highly questionable and improbable.
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The following is a summary of the credit risk profile of loans by internally assigned grade as of the periods indicated, the years represent the year of origination for non-revolving loans:
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | June 30, 2025 | |||||||||||||||||||||||||
(In thousands) | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 and Prior | | Revolving | | Revolving-Term | | Total | |||||||||
Business loans | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
Special mention | | | — | | | | | | | | | | | | | | | | | | | | | | | | |
Substandard | | | — | | | — | | | | | | | | | | | | | | | | | | | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Total business loans | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | — | | | — | | | | | | — | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family residential and condominium/cooperative apartment: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Substandard | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Total one-to-four family residential and condominium/cooperative apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multifamily residential and residential mixed-use: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | — | | | — | | | — | | | | | | | | | | | | — | | | — | | | |
Substandard | | | — | | | — | | | — | | | | | | | | | | | | — | | | — | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Total multifamily residential and residential mixed-use | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-owner-occupied commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | — | | | — | | | — | | | — | | | | | | | | | — | | | — | | | |
Substandard | | | — | | | — | | | — | | | — | | | | | | | | | — | | | — | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Total non-owner-occupied commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | — | | | — | | | — | | | | | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
ADC: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | — | | | | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Total ADC | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | — | | | | | | | | | | | | | | | | | | | | | | | | |
Substandard | | | — | | | — | | | | | | | | | | | | | | | | | | | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Total Loans | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
YTD Gross Charge-Offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | | | $ | | | $ | | | $ | | | $ | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 | |||||||||||||||||||||||||
(In thousands) | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 and Prior | | Revolving | | Revolving-Term | | Total | |||||||||
Business loans | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
Special mention | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Substandard | | | — | | | | | | | | | | | | | | | | | | — | | | | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Total business loans | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
One-to-four family residential and condominium/cooperative apartment: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | — | | | — | | | — | | | — | | | — | | | | | | | | | — | | | |
Substandard | | | — | | | — | | | — | | | — | | | | | | | | | — | | | | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Total one-to-four family residential and condominium/cooperative apartment | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multifamily residential and residential mixed-use: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | — | | | — | | | | | | | | | | | | | | | — | | | — | | | |
Substandard | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Total multifamily residential and residential mixed-use | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | | | | — | | | — | | | — | | | | | | | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-owner-occupied commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | — | | | — | | | — | | | | | | | | | | | | — | | | — | | | |
Substandard | | | — | | | — | | | — | | | | | | | | | | | | — | | | — | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Total non-owner-occupied commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | — | | | | | | | | | — | | | — | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
ADC: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | — | | | | | | | | | | | | |
Special mention | | | — | | | — | | | — | | | | | | — | | | — | | | — | | | — | | | |
Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Total ADC | | | | | | | | | | | | | | | — | | | | | | | | | | | | |
YTD Gross Charge-Offs | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special mention | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Substandard | | | — | | | | | | | | | | | | | | | | | | — | | | | | | |
Doubtful | | | — | | | — | | | — | | | — | | | — | | | | | | — | | | — | | | |
Total Loans | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
YTD Gross Charge-Offs | | $ | | | $ | — | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
For other loans, the Company evaluates credit quality based on payment activity. Other loans that are 90 days or more past due are placed on non-accrual status, while all remaining other loans are classified and evaluated as performing. The following is a summary of the credit risk profile of other loans by internally assigned grade:
| | | | | | |
(In thousands) |
| June 30, 2025 |
| December 31, 2024 | ||
Performing | | $ | | | $ | |
Non-accrual | |
| — | |
| |
Total | | $ | | | $ | |
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8. LEASES
The following table presents the Company’s remaining maturities of undiscounted lease payments, as well as a reconciliation to the discounted operating lease liabilities in the Consolidated Statements of Financial Condition at June 30, 2025:
| | | |
(In thousands) |
| | |
2025 |
| $ | |
2026 |
| | |
2027 |
| | |
2028 |
| | |
2029 |
| | |
Thereafter |
| | |
Total undiscounted lease payments |
| | |
Less amounts representing interest |
| | ( |
Operating lease liabilities | | $ | |
Other information related to the Company’s operating leases was as follows:
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
(In thousands) |
| 2025 |
| 2024 |
| 2025 |
| 2024 | ||||
Operating lease cost | | $ | | | $ | | | $ | | | $ | |
Cash paid for amounts included in the measurement of operating lease liabilities | | | | | | | | | | | | |
| | | | | |
| As of June 30, 2025 | | As of December 31, 2024 | ||
Weighted average remaining lease term | years | | years | ||
Weighted average discount rate | | % | | | % |
9. DERIVATIVES AND HEDGING ACTIVITIES
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposure to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loan portfolio.
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. The Company engages in fair value hedges, cash flow hedges and freestanding derivatives.
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Effect of Derivatives on the Consolidated Statements of Financial Condition
The tables below present the notional amounts and fair values of the Company’s derivative financial instruments as of June 30, 2025 and December 31, 2024.
| | | | | | | | | | | | |
| | June 30, 2025 | | December 31, 2024 | ||||||||
| | Notional | | Fair Value | | Notional | | Fair Value | ||||
(In thousands) |
| Amount |
| Assets |
| Amount | | Assets | ||||
Derivatives designated as hedging instruments: |
| |
|
| |
|
| |
| | |
|
Cash flow hedges - interest rate products |
| $ | | | $ | |
| $ | | | $ | |
| | | | | | | | | | | | |
Derivatives not designated as hedging instruments: | | | | | | | | | | | | |
Interest rate products | | | | | | |
| | | | | |
| | | | | | | | | | | | |
| | June 30, 2025 | | December 31, 2024 | ||||||||
| | Notional | | Fair Value | | Notional | | Fair Value | ||||
(In thousands) |
| Amount |
| Liabilities |
| Amount | | Liabilities | ||||
Derivatives designated as hedging instruments: |
| |
|
| |
|
| |
| | |
|
Fair value hedges - interest rate products |
| $ | | | $ | | | $ | | | $ | — |
Cash flow hedges - interest rate products | | | | | | | | | | | | |
| | | | | | | | | | | | |
Derivatives not designated as hedging instruments: | | | | | | | | | | | | |
Interest rate products | | | | | | | | | | | | |
Risk participations | | | | | | | | | | | | |
Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Operations
The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three and six months ended June 30, 2025 and 2024.
| | | | | | | | | | | | |
| | Three Months Ended June 30, | ||||||||||
| | 2025 | | 2024 | ||||||||
| | Interest | | Interest | | Interest | | Interest | ||||
(In thousands) | | Income | | Expense | | Income | | Expense | ||||
Effects of fair value or cash flow hedges are recorded | | $ | ( | | $ | | | $ | | | | |
| | | | | | | | | | | | |
The effects of fair value and cash flow hedging: | | | | | | | | | | | | |
Gain or (loss) on fair value hedging relationships | | | | | | | | | | | | |
Interest contracts: | | | | | | | | | | | | |
Hedged items | | | ( | | | — | | | ( | | | — |
Derivatives designated as hedging instruments | | | | | | — | | | | | | — |
| | | | | | | | | | | | |
Gain or (loss) on cash flow hedging relationships | | | | | | | | | | | | |
Interest contracts: | | | | | | | | | | | | |
Loss reclassified from AOCI into income | | | — | | | | | | — | | | |
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| | | | | | | | | | | | |
| | Six Months Ended June 30, | ||||||||||
| | 2025 | | 2024 | ||||||||
| | Interest | | Interest | | Interest | | Interest | ||||
(In thousands) | | Income | | Expense | | Income | | Expense | ||||
Effects of fair value or cash flow hedges are recorded | | $ | ( | | $ | | | $ | | | | |
| | | | | | | | | | | | |
The effects of fair value and cash flow hedging: | | | | | | | | | | | | |
Gain or (loss) on fair value hedging relationships | | | | | | | | | | | | |
Interest contracts: | | | | | | | | | | | | |
Hedged items | | | ( | | | — | | | ( | | | — |
Derivatives designated as hedging instruments | | | | | | — | | | | | | — |
| | | | | | | | | | | | |
Gain or (loss) on cash flow hedging relationships | | | | | | | | | | | | |
Interest contracts: | | | | | | | | | | | | |
Loss reclassified from AOCI into income | | | — | | | | | | — | | | |
Fair Value Hedges
The Company uses fair value hedges to protect against changes in fair value of certain interest rate sensitive assets. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount.
For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income.
As of June 30, 2025 and December 31, 2024, the Company posted $
The amortized cost basis of the closed portfolio of the fixed rate mortgage loans on June 30, 2025 totaled $
The amortized cost basis of the closed portfolio of the fixed rate mortgage loans on December 31, 2024 totaled $
During the three and six months ended June 30, 2025, the Company recorded a $
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As of June 30, 2025 and December 31, 2024, the following amounts were recorded on the consolidated statements of financial condition related to cumulative basis adjustment for fair value hedges:
| | | | | | | | | | | | |
| | June 30, 2025 | | December 31, 2024 | ||||||||
(In thousands) |
| Carrying Amount of the Hedged Assets | | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | | Carrying Amount of the Hedged Assets | | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | ||||
Fixed Rate Loans |
| $ | | | $ | |
| $ | | | $ | |
Cash Flow Hedges
Cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company uses these types of derivatives to hedge the variable cash flows associated with existing or forecasted issuances of short-term borrowings.
For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s debt. During the next twelve months, the Company estimates that an additional $
The Company did
The table below presents the effect of the cash flow hedge accounting on accumulated other comprehensive income (loss) for the periods indicated:
| | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | | ||||||||
| | June 30, | | June 30, | | ||||||||
(In thousands) |
| 2025 |
| 2024 | | 2025 |
| 2024 | | ||||
Loss recognized in other comprehensive income (loss) | | $ | ( | | $ | ( | | $ | ( | | $ | ( | |
Loss reclassified from other comprehensive income into interest expense | |
| ( | |
| ( | |
| ( | |
| ( | |
All cash flow hedges are recorded gross on the Consolidated Statement of Financial Condition.
Certain cash flow hedges involve derivative agreements with third-party counterparties that contain provisions requiring the Company to post cash collateral if the derivative exposure exceeds a threshold amount and receive collateral for agreements in a net asset position. As of June 30, 2025 and December 31, 2024, the Company did
Freestanding Derivatives
The Company maintains an interest-rate risk protection program for its loan portfolio in order to offer loan level derivatives with certain borrowers and to generate loan level derivative income. The Company enters into interest rate swap or interest rate floor agreements with borrowers. These interest rate derivatives are designed such that the borrower synthetically
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attains a fixed-rate loan, while the Company receives floating rate loan payments. The Company offsets the loan level interest rate swap exposure by entering into an offsetting interest rate swap or interest rate floor with an unaffiliated and reputable bank counterparty. These interest rate derivatives do not qualify as designated hedges, under ASU 815; therefore, each interest rate derivative is accounted for as a freestanding derivative. The notional amounts of the interest rate derivatives do not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate derivative agreements. The following tables reflect freestanding derivatives included in the consolidated statements of financial condition as of the dates indicated:
| | | | | | | | | | | |
| | June 30, 2025 | |||||||||
| | | | Notional | | Fair Value | | Fair Value | |||
(Dollars in thousands) |
| Count |
| Amount |
| Assets |
| Liabilities | |||
Included in derivative assets/liabilities: | | | | | | | | | | | |
Loan level interest rate swaps with borrower |
| | | $ | | | $ | | | $ | — |
Loan level interest rate swaps with borrower |
| | | | | | | — | | | |
Loan level interest rate swaps with third-party counterparties |
| | |
| | |
| — | |
| |
Loan level interest rate swaps with third-party counterparties | | | | | | | | | | | — |
| | | | | | | | | | | |
| | December 31, 2024 | |||||||||
| | | | Notional | | Fair Value | | Fair Value | |||
(Dollars in thousands) |
| Count |
| Amount |
| Assets |
| Liabilities | |||
Included in derivative assets/liabilities: | | | | | | | | | | | |
Loan level interest rate swaps with borrower |
| | | $ | | | $ | | | $ | — |
Loan level interest rate swaps with borrower |
| | |
| | |
| — | |
| |
Loan level interest rate swaps with third-party counterparties |
| | |
| | |
| — | |
| |
Loan level interest rate swaps with third-party counterparties | | | | | | | | | | | — |
Loan level derivative income is recognized on the mark-to-market of the interest rate swap as a fair value adjustment at the time the transaction is closed. Total loan level derivative income is included in non-interest income as follows:
| | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | | ||||||||
| | June 30, | | June 30, | | ||||||||
(In thousands) |
| 2025 |
| 2024 | | 2025 |
| 2024 | | ||||
Loan level derivative income | | $ | | | $ | | | $ | | | $ | | |
The interest rate swap product with the borrower is cross collateralized with the underlying loan and, therefore, there is
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Risk Participation Agreements
The Company enters into risk participation agreements to manage economic risks but does not designate the instruments in hedge relationships. As of June 30, 2025 and December 31, 2024, the notional amounts of risk participation agreements for derivative liabilities were $
Credit Risk Related Contingent Features
The Company’s agreements with each of its derivative counterparties state that if the Company defaults on any of its indebtedness, it could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty.
The Company’s agreements with certain of its derivative counterparties state that if the Bank fails to maintain its status as a well-capitalized institution, the Bank could be required to terminate its derivative positions with the counterparty.
For derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, any breach of the above provisions by the Company may require settlement of its obligations under the agreements at the termination value with the respective counterparty. As of June 30, 2025, there were
10. FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:
Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date.
Level 2 Inputs – Significant other observable inputs such as any of the following: (1) quoted prices for similar assets or liabilities in active markets, (2) quoted prices for identical or similar assets or liabilities in markets that are not active, (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).
Level 3 Inputs – Significant unobservable inputs for the asset or liability. Significant unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Significant unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Securities
The Company’s available-for-sale securities are reported at fair value, which were determined utilizing prices obtained from independent parties. The valuations obtained are based upon market data, and often utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (obtained
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only from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable. Prioritization of inputs may vary on any given day based on market conditions.
All MBS, CMOs, treasury securities, and agency notes are guaranteed either implicitly or explicitly by GSEs as of June 30, 2025 and December 31, 2024, respectively. In accordance with the Company’s investment policy, corporate securities are rated “investment grade” at the time of purchase and the financials of the issuers are reviewed quarterly.
Derivatives
Derivatives represent interest rate swaps and estimated fair values are based on valuation models using observable market data as of the measurement date.
The following tables present financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated, segmented by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
| | | | | | | | | | | | |
| | | | | Fair Value Measurements | |||||||
| | | | | at June 30, 2025 Using | |||||||
| | | | | Level 1 | | Level 2 | | Level 3 | |||
(In thousands) |
| Total |
| Inputs |
| Inputs |
| Inputs | ||||
Financial Assets: |
| |
|
| |
|
| |
|
| |
|
Securities available-for-sale: | |
|
| |
|
| |
|
| |
|
|
Agency notes | | $ | | | $ | — | | $ | | | $ | — |
Corporate securities | |
| | |
| — | |
| | |
| — |
Pass-through MBS issued by GSEs | |
| | |
| — | |
| | |
| — |
Agency CMOs | |
| | |
| — | |
| | |
| — |
State and municipal obligations | | | | | | — | | | | | | — |
Derivative – cash flow hedges | |
| | |
| — | |
| | |
| — |
Derivative – freestanding derivatives, net | |
| | |
| — | |
| | |
| — |
Financial Liabilities: | |
| | | | | | | | | | |
Derivative – fair value hedges | | | | | | — | | | | | | — |
Derivative – cash flow hedges | | | | | | — | | | | | | — |
Derivative – freestanding derivatives, net | | | | | | — | | | | | | — |
Derivative – risk participations | |
| | |
| — | |
| | |
| — |
| | | | | | | | | | | | |
| | | | | Fair Value Measurements | |||||||
| | | | | at December 31, 2024 Using | |||||||
| | | | | Level 1 | | Level 2 | | Level 3 | |||
(In thousands) |
| Total |
| Inputs |
| Inputs |
| Inputs | ||||
Financial Assets: |
| |
|
| |
|
| |
|
| |
|
Securities available-for-sale: | |
|
| |
|
| |
|
| |
|
|
Agency Notes | | $ | | | $ | — | | $ | | | $ | — |
Corporate securities | | | | |
| — | |
| | | | — |
Pass-through MBS issued by GSEs | |
| | |
| — | |
| | |
| — |
Agency CMOs | |
| | |
| — | |
| | |
| — |
State and municipal obligations | |
| | | | — | | | | |
| — |
Derivative – cash flow hedges | |
| | |
| — | |
| | |
| — |
Derivative – freestanding derivatives, net | |
| | |
| — | |
| | |
| — |
Financial Liabilities: | |
| | | | | | | | | | |
Derivative – cash flow hedges | | | | | | — | | | | | | — |
Derivative – freestanding derivatives, net | |
| | |
| — | |
| | |
| — |
Derivative – risk participations | | | | | | — | | | | | | — |
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Assets and Liabilities Measured at Fair Value on a Non-recurring Basis
Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis. That is, they are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis include certain individually evaluated loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral.
| | | | | | | | | | | | |
| | June 30, 2025 | ||||||||||
| | | | | Fair Value Measurements Using: | |||||||
| |
| | Quoted Prices | | | | |
| |||
| | | | In Active | | Significant | |
| ||||
| | | | Markets for | | Other | | Significant | ||||
| | | | Identical | | Observable | | Unobservable | ||||
| | Carrying | | Assets | | Inputs | | Inputs | ||||
(In thousands) |
| Value |
| (Level 1) |
| (Level 2) |
| (Level 3) | ||||
Individually evaluated loans | | $ | | | $ | — | | $ | — |
| $ | |
| | | | | | | | | | | | |
| | December 31, 2024 | ||||||||||
| | | | | Fair Value Measurements Using: | |||||||
| |
| | Quoted Prices | | | | |
| |||
| | | | In Active | | Significant | | | ||||
| | | | Markets for | | Other | | Significant | ||||
| | | | Identical | | Observable | | Unobservable | ||||
| | Carrying | | Assets | | Inputs | | Inputs | ||||
(In thousands) |
| Value |
| (Level 1) |
| (Level 2) |
| (Level 3) | ||||
Individually evaluated loans | | $ | |
| $ | — | | $ | — |
| $ | |
Individually evaluated loans with an allowance for credit losses at June 30, 2025 had a carrying amount of $
Individually evaluated loans with an allowance for credit losses at December 31, 2024 had a carrying amount of $
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Financial Instruments Not Measured at Fair Value
The following tables present the carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or non-recurring basis for the dates indicated, segmented by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
| | | | | | | | | | | | | | | |
| | | | | Fair Value Measurements | ||||||||||
| | | | | at June 30, 2025 Using | ||||||||||
| | Carrying | | Level 1 | | Level 2 | | Level 3 | | | | ||||
(In thousands) |
| Amount |
| Inputs |
| Inputs |
| Inputs |
| Total | |||||
Financial Assets: |
| |
|
| |
|
| |
|
| |
|
| |
|
Cash and due from banks | | $ | | | $ | | | $ | — | | $ | — | | $ | |
Securities held-to-maturity | | | | |
| — | |
| | |
| — | |
| |
Loans held for sale | | | | | | — | | | — | | | | | | |
Loans held for investment, net | |
| | |
| — | |
| — | |
| | |
| |
Accrued interest receivable | |
| | |
| — | |
| | |
| | |
| |
Financial Liabilities: | |
|
| |
|
| |
|
| |
|
| |
|
|
Savings, money market and checking accounts (1) | |
| | |
| | |
| — | |
| — | |
| |
Certificates of deposit ("CDs") | |
| | |
| — | |
| | |
| — | |
| |
FHLBNY advances | |
| | |
| — | |
| | |
| — | |
| |
Subordinated debt, net | |
| | |
| — | |
| | |
| — | |
| |
Accrued interest payable | |
| | |
| — | |
| | |
| — | |
| |
(1) Includes mortgage escrow deposits.
| | | | | | | | | | | | | | | |
| | | | | Fair Value Measurements | ||||||||||
| | | | | at December 31, 2024 Using | ||||||||||
| | Carrying | | Level 1 | | Level 2 | | Level 3 | | | | ||||
(In thousands) |
| Amount |
| Inputs |
| Inputs |
| Inputs |
| Total | |||||
Financial Assets: |
| |
|
| |
|
| |
|
| |
|
| |
|
Cash and due from banks | | $ | | | $ | | | $ | — | | $ | — | | $ | |
Securities held-to-maturity | | | | |
| — | |
| | |
| — | |
| |
Loans held for sale | | | | | | — | | | — | | | | | | |
Loans held for investment, net | |
| | |
| — | |
| — | |
| | |
| |
Accrued interest receivable | |
| | |
| — | |
| | |
| | |
| |
Financial Liabilities: | |
|
| |
|
| |
|
| |
|
| |
|
|
Savings, money market and checking accounts (1) | |
| | |
| | |
| — | |
| — | |
| |
CDs | |
| | |
| — | |
| | |
| — | |
| |
FHLBNY advances | |
| | |
| — | |
| | |
| — | |
| |
Subordinated debt, net | |
| | |
| — | |
| | |
| — | |
| |
Other short-term borrowings | | | | | | | | | — | | | — | | | |
Accrued interest payable | |
| | |
| — | |
| | |
| — | |
| |
(1) Includes mortgage escrow deposits.
11. OTHER INTANGIBLE ASSETS
The following table presents the carrying amount and accumulated amortization of intangible assets that are amortizable.
| | | | | | |
(In thousands) | | June 30, 2025 | | December 31, 2024 | ||
Gross carrying value | | $ | | | $ | |
Accumulated amortization | |
| ( | |
| ( |
Net carrying amount | | $ | | | $ | |
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Amortization expense recognized on intangible assets was $
Estimated amortization expense for the remainder of 2025 through 2029 and thereafter is as follows:
| | | |
(In thousands) | | | |
2025 | | $ | |
2026 | | | |
2027 | | | |
2028 | | | |
2029 | | | |
Thereafter | | | |
Total | | $ | |
12. FHLBNY ADVANCES
The Bank had borrowings from the FHLBNY totaling $
For the three or six months ended June 30, 2025, the Company did
The following table is a summary of FHLBNY extinguishments for the periods presented:
| | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, | ||||||||||||
(Dollars in thousands) | | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | |
FHLBNY advances extinguished | | $ | - | | | $ | | | | $ | - | | | $ | | |
Weighted average rate | | | - | % | | | | % | | | - | % | | | | % |
Loss on extinguishment of debt | | $ | - | | | $ | - | | | $ | - | | | $ | | |
The following table presents the contractual maturities of FHLBNY advances for each of the next five years.
| | | | | | |
(Dollars in thousands) | | June 30, 2025 | | December 31, 2024 | ||
Overnight, fixed rate at | | | — | | | |
2025, fixed rate at rates from | | | | | | |
2027, fixed rate at | | | | | | |
2028, fixed rate at | | | | | | |
2029, fixed rate at rates from | | | | | | |
Total FHLBNY advances | | $ | | | $ | |
Total FHLBNY advances had a weighted average interest rate of
13. SUBORDINATED DEBENTURES
On June 28, 2024, the Company issued $
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be July 15, 2029. From and including July 15, 2029, to, but excluding the stated maturity date or any earlier redemption date, the interest rate will reset quarterly to an annual interest rate equal to the benchmark rate (which is expected to be Three-Month Term SOFR) plus
Subsequently, on July 9, 2024, the Company issued and sold an additional $
On May 6, 2022, the Company issued $
The remaining $
The subordinated debentures totaled $
14. RETIREMENT AND POSTRETIREMENT PLANS
The Bank maintains two noncontributory pension plans that existed before the Merger: (i) the Retirement Plan of Dime Community Bank (“Employee Retirement Plan”) and (ii) the BNB Bank Pension Plan, covering all eligible employees.
Employee Retirement Plan
The Bank sponsors the Employee Retirement Plan, a tax-qualified, noncontributory, defined-benefit retirement plan. Prior to April 1, 2000, substantially all full-time employees of at least 21 years of age were eligible for participation after one year of service. Effective April 1, 2000, the Bank froze all participant benefits under the Employee Retirement Plan. On December 21, 2023, the Company’s Board of Directors adopted a resolution to terminate the Employee Retirement Plan effective December 31, 2023. Retirement benefits of the plan were vested as they were earned. For the year ended December 31, 2024, the Bank used December 31st as its measurement date for the Employee Retirement Plan.
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BNB Bank Pension Plan
During 2012, Bridge Bancorp, Inc., (“Bridge”) amended the BNB Bank Pension Plan by revising the formula for determining benefits effective January 1, 2013, except for certain grandfathered Bridge employees. Additionally, new Bridge employees hired on or after October 1, 2012 were not eligible for the BNB Bank Pension Plan. Effective December 31, 2023, the Bank froze all participant benefits under the BNB Pension Plan, the impact of which is reflected in the recorded curtailment as of December 31, 2023. On December 21, 2023, the Company’s Board of Directors adopted a resolution to terminate the BNB Bank Pension Plan effective December 31, 2023. The termination was effectively completed by March 31, 2025, and all related liabilities were fully settled. Retirement benefits of the plan were vested as they were earned. For the year ended December 31, 2024, the Bank used December 31st as its measurement date for the BNB Bank Pension Plan.
The following tables represent the components of net periodic (credit) benefit cost associated with these plans:
| | | | | | | | | | | | |
| | Three Months Ended June 30, | ||||||||||
| | | 2025 | | 2024 | |||||||
| | | | | | | | | | | | |
| | BNB Bank | | Employee | | BNB Bank | | Employee | ||||
(In thousands) | | Pension Plan | | Retirement Plan | | Pension Plan | | Retirement Plan | ||||
Service cost | | $ | — | | $ | — | | $ | — | | $ | — |
Interest cost | | | — | | | | | | | | | |
Expected return on assets | | | — | | | ( | | | ( | | | ( |
Amortization of unrealized loss | | | — | | | | | | — | | | |
Net periodic (credit) benefit | | $ | — | | $ | | | $ | ( | | $ | |
Settlement loss recognized | | | — | | | — | | | — | | | — |
Total benefit cost | | $ | — | | $ | | | $ | ( | | $ | |
| | | | | | | | | | | | |
| | Six Months Ended June 30, | ||||||||||
| | 2025 | | 2024 | ||||||||
| | | | | | | | | | |||
| | BNB Bank | | Employee | | BNB Bank | | Employee | ||||
(In thousands) | | Pension Plan | | Retirement Plan | | Pension Plan | | Retirement Plan | ||||
Service cost | | $ | — | | $ | — | | $ | — | | $ | — |
Interest cost | | | | | | | | | | | | |
Expected return on assets | |
| ( | |
| ( | |
| ( | | | ( |
Amortization of unrealized loss | |
| | |
| | |
| — | | | |
Net periodic (credit) benefit | | $ | ( | | $ | | | $ | ( | | $ | |
Settlement loss recognized | | | | | | — | | | — | | | — |
Total benefit cost | | $ | | | $ | | | $ | ( | | $ | |
There were
401(k) Plan
The Company maintains a 401(k) Plan (the “401(k) Plan”) that existed before the Merger. The 401(k) Plan covers substantially all current employees. Newly hired employees are automatically enrolled in the plan on the first pay date following the 60th day of employment, unless they elect not to participate. Participants may contribute a portion of their pre-tax base salary, generally not to exceed $
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common stock within the accounts of participants totaling $
15. STOCK-BASED COMPENSATION
In May 2021, the Company’s stockholders approved the Dime Community Bancshares, Inc. 2021 Equity Incentive Plan (the “2021 Equity Incentive Plan”) to provide the Company with sufficient equity compensation to meet the objectives of appropriately incentivizing its officers, other employees, and directors to execute our strategic plan to build shareholder value, while providing appropriate shareholder protections. The Company no longer makes grants under the Legacy Stock Plans. Awards outstanding under the Legacy Stock Plans will continue to remain outstanding and subject to the terms and conditions of the Legacy Stock Plans. An additional
Stock Option Awards
The following table presents a summary of activity related to stock options granted under the Legacy Stock Plans, and changes during the period then ended:
| | | | | | | | | | |
| | |
| | |
| Weighted- |
| | |
| | | | | | | Average | | | |
| | | | Weighted- | | Remaining | | Aggregate | ||
| | Number of | | Average Exercise | | Contractual | | Intrinsic | ||
(Dollars in thousands except share and per share amounts) |
| Options |
| Price |
| Years |
| Value | ||
Options outstanding at January 1, 2025 | | | | $ | | | | | | |
Options exercised | | — | |
| — | | | | | |
Options forfeited | | — | |
| — | | | | | |
Options outstanding at June 30, 2025 |
| | | $ | |
| | $ | | |
Options vested and exercisable at June 30, 2025 |
| | | $ | |
| | $ | | |
Information related to stock options during each period is as follows:
| | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
(In thousands) |
| 2025 |
| 2024 | | 2025 |
| 2024 | ||||
Cash received for option exercise cost | | $ | — | | $ | — | | $ | — | | $ | — |
Income tax (expense) benefit recognized on stock option exercises | |
| — | |
| — | |
| — | |
| — |
Intrinsic value of options exercised | |
| — | |
| — | |
| — | |
| — |
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The range of exercise prices and weighted-average remaining contractual lives of both outstanding and vested options (by option exercise cost) as of June 30, 2025 were as follows:
| | | | | | | | |
| | Outstanding Options | Vested Options | |||||
| | | | Weighted | | | | Weighted |
| | | | Average | | | | Average |
| | Number | | Contractual | | Number | | Contractual |
| | of | | Years | | of | | Years |
|
| Options |
| Remaining |
| Options |
| Remaining |
Exercise Prices: |
|
|
|
|
|
|
|
|
$ |
| |
|
| |
| ||
$ |
| |
|
| |
| ||
$ |
| |
|
| |
| ||
Total |
| |
|
| |
| ||
Restricted Stock Awards
The Company has made RSA grants to outside Directors and certain officers under the Legacy Stock Plans and the 2021 Equity Incentive Plan. Typically, awards to outside Directors fully vest on the first anniversary of the grant date, while awards to officers vest over a pre-determined requisite period. All awards were made at the fair value of the Company’s common stock on the grant date. Compensation expense on all RSAs is based upon the fair value of the shares on the respective dates of the grant.
The following table presents a summary of activity related to the RSAs granted, and changes during the period then ended:
| | | | | |
| | |
| Weighted- | |
| | | | Average | |
| | Number of | | Grant-Date | |
|
| Shares |
| Fair Value | |
Unvested allocated shares outstanding at January 1, 2025 | | | | $ | |
Shares granted |
| | |
| |
Shares vested | | ( | | | |
Shares forfeited |
| ( | |
| |
Unvested allocated shares outstanding at June 30, 2025 |
| | | $ | |
Information related to RSAs during each period is as follows:
| | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
(In thousands) |
| 2025 |
| 2024 | | 2025 |
| 2024 | ||||
Compensation expense recognized | | $ | | | $ | | | $ | | | $ | |
Income tax benefit (expense) recognized on vesting of RSAs | |
| | |
| ( | |
| | |
| ( |
As of June 30, 2025, there was $
Performance-Based Share Awards
The Company maintains a Long-Term Incentive Plan (“LTIP”) for certain officers, which meets the criteria for equity-based accounting. For each award, threshold (
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The following table presents a summary of activity related to the PSAs granted, and changes during the period then ended:
| | | | | |
| | |
| Weighted- | |
| | | | Average | |
| | Number of | | Grant-Date | |
|
| Shares |
| Fair Value | |
Maximum aggregate share payout at January 1, 2025 | | | | $ | |
Shares granted |
| | |
| |
Shares forfeited | | ( | | | |
Shares vested | | ( | | | |
Maximum aggregate share payout at June 30, 2025 |
| | | $ | |
Minimum aggregate share payout |
| — | | | — |
Expected aggregate share payout |
| | | $ | |
Information related to PSAs during each period is as follows:
| | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
(In thousands) |
| 2025 |
| 2024 | | 2025 |
| 2024 | ||||
Compensation expense (benefit) recognized | | $ | | | $ | ( | | $ | | | $ | |
Income tax expense recognized on vesting of PSAs | |
| — | |
| ( | |
| ( | |
| ( |
As of June 30, 2025, there was $
16. INCOME TAXES
During the three months ended June 30, 2025 and 2024, the Company’s consolidated effective tax rates were
17. SEGMENT REPORTING
The Chief Executive Officer, who is designated as the chief operating decision maker (“CODM”), determines the Company’s reportable segment. The Chief Executive Officer along with others in the Company’s executive management evaluates performance and allocates resources based upon analysis of the Company as
The Company provides a range of community banking services, including commercial and consumer lending, personal and business banking, treasury management and merchant services, and other financial services primarily to individuals, businesses, and municipalities in the Greater Long Island area.
The CODM is provided with the Company’s consolidated statements of financial condition and operations and evaluates the Company’s operating results based on consolidated net interest income, non-interest income, non-interest expense, and net income, which can be seen on the consolidated statement of operations. These results are used to benchmark the Company against its competitors. Other significant non-cash items assessed by the CODM are depreciation, amortization and provision for credit losses consistent with the reporting on the consolidated statements of cash flows. Expenditures for long-lived assets are also evaluated and are consistent with the reporting on the consolidated statements of cash flows. Strategic plans and budget to actual monitoring are evaluated as
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banking operations within the United States, and for the three or six months ended June 30, 2025 and 2024,
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
Dime Community Bancshares, Inc., a New York corporation, is a bank holding company formed in 1988. On a parent-only basis, the Holding Company has minimal operations, other than as owner of Dime Community Bank. The Holding Company is dependent on dividends from its wholly-owned subsidiary, Dime Community Bank, its own earnings, additional capital raised, and borrowings as sources of funds. The information in this report reflects principally the financial condition and results of operations of the Bank. The Bank's results of operations are primarily dependent on its net interest income, which is the difference between interest income on loans and investments and interest expense on deposits and borrowings. The Bank also generates non-interest income, such as fee income on deposit and loan accounts, merchant credit and debit card processing programs, loan swap fees, investment services, income from its title insurance subsidiary, and net gains on sales of securities and loans. The level of non-interest expenses, such as salaries and benefits, occupancy and equipment costs, other general and administrative expenses, expenses from the Bank’s title insurance subsidiary, and income tax expense, further affects our net income. Certain reclassifications have been made to prior year amounts and the related discussion and analysis to conform to the current year presentation. These reclassifications did not have an impact on net income or total stockholders' equity.
Recent Developments
On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including bonus depreciation. ASC 740, “Income Taxes”, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. The Company has evaluated the deferred tax impact under the newly elected tax law and has concluded it will have an immaterial impact on the September 30, 2025 financial statements.
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Selected Financial Highlights and Other Data
(Dollars in Thousands Except Per Share Amounts)
| | | | | | | | | | | | | |
|
| At or For the | | At or For the | | ||||||||
|
| Three Months Ended | | Six Months Ended | | ||||||||
|
| June 30, | | June 30, | | ||||||||
|
| 2025 |
| 2024 |
| 2025 |
| 2024 |
| ||||
Per Share Data: | | |
|
| |
|
| |
|
| |
|
|
Reported EPS (Diluted) | | $ | 0.64 | | $ | 0.43 | | $ | 1.09 | | $ | 0.84 | |
Cash dividends paid per common share | |
| 0.25 | |
| 0.25 | |
| 0.50 | |
| 0.50 | |
Book value per common share | |
| 29.95 | |
| 28.97 | |
| 29.95 | | | 28.97 | |
Dividend payout ratio | | | 39.06 | % | | 58.14 | % | | 45.87 | % | | 59.52 | % |
Performance and Other Selected Ratios: | | | | | | | | | | | | | |
Return on average assets | | | 0.85 | % | | 0.55 | % | | 0.74 | % | | 0.53 | % |
Return on average equity | | | 8.28 | | | 5.88 | | | 7.16 | | | 5.78 | |
Net interest spread | | | 1.99 | | | 1.28 | | | 1.97 | | | 1.21 | |
Net interest margin | | | 2.98 | | | 2.41 | | | 2.96 | | | 2.31 | |
Average interest-earning assets to average interest-bearing liabilities | | | 146.96 | | | 142.23 | | | 146.97 | | | 140.36 | |
Non-interest expense to average assets | | | 1.72 | | | 1.66 | | | 1.81 | | | 1.59 | |
Efficiency ratio | | | 55.0 | | | 63.8 | | | 58.9 | | | 63.9 | |
Loan-to-deposit ratio at end of period | | | 92.6 | | | 98.2 | | | 92.6 | | | 98.2 | |
Effective tax rate | | | 26.08 | | | 29.01 | | | 25.73 | | | 28.10 | |
Asset Quality Summary: | |
|
| |
|
| |
|
| |
|
| |
Non-performing loans (1) | | $ | 53,214 | | $ | 24,843 | | $ | 53,214 | | $ | 24,843 | |
Non-performing assets | | | 53,214 | | | 24,843 | | | 53,214 | | | 24,843 | |
Net charge-offs | | | 5,405 | | | 3,640 | | | 12,463 | | | 4,379 | |
Non-performing assets/Total assets | |
| 0.37 | % |
| 0.18 | % |
| 0.37 | % | | 0.18 | % |
Non-performing loans/Total loans | |
| 0.49 | |
| 0.23 | |
| 0.49 | | | 0.23 | |
Allowance for credit losses/Total loans | |
| 0.86 | |
| 0.72 | |
| 0.86 | | | 0.72 | |
Allowance for credit losses/Non-performing loans | |
| 175.12 | |
| 313.21 | |
| 175.12 | | | 313.21 | |
Critical Accounting Estimates
Note 1. Summary of Significant Accounting Policies, to the Company’s Audited Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2024 contains a summary of significant accounting policies. These critical accounting estimates involve a significant degree of complexity and require management to make difficult subjective judgments which often necessitate assumptions or estimates about highly uncertain matters. Policies with respect to the methodologies used to determine the allowance for credit losses on loans held for investment and are important to the presentation of the Company’s consolidated financial condition and results of operations. The use of different judgments, assumptions or estimates could result in material variations in the Company’s consolidated results of operations or financial condition.
Management has reviewed the following critical accounting estimates and related disclosures with its Audit Committee.
Allowance for Credit Losses on Loans Held for Investment
Methods and Assumptions Underlying the Estimate
The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis, and additions to the allowance are charged to expense and realized losses, net of recoveries, are charged against the allowance.
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Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In determining the allowance for credit losses for loans that share similar risk characteristics, the Company utilizes a model which compares the amortized cost basis of the loan to the net present value of expected cash flows to be collected. Expected credit losses are determined by aggregating the individual cash flows and calculating a loss percentage by loan segment, or pool, for loans that share similar risk characteristics. For a loan that does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Within the model, assumptions are made in the determination of probability of default, loss given default, reasonable and supportable economic forecasts, prepayment rate, curtailment rate, and recovery lag periods.
Statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of a peer group of banks that operate in and around Dime’s footprint. These models are then utilized to forecast future expected loan losses based on expected future behavior of the same macro-economic variables. Adjustments to the quantitative results are made using qualitative factors, which are subjective and require significant management judgment. These factors include: (1) lending policies and procedures and the experience, ability, and depth of the lending management and other relevant staff; (2) international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio, including the condition of various markets; (3) the nature and volume of the loan portfolio; (4) the volume and severity of past due loans; (5) the quality of our loan review system; (6) the value of underlying collateral for collateralized loans; (7) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (8) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio.
Although management believes that it uses the best information available to establish the Allowance for Credit Loss, management assesses the sensitivity of key quantitative assumptions including macroeconomic forecasts and prepayment rate assumptions. Changes in quantitative inputs may not occur in the same direction or magnitude across all segments of our loan portfolio and deterioration in some quantitative inputs may offset improvement in others.
Uncertainties Regarding the Estimate
Estimating the timing and amounts of future losses is subject to significant management judgment as these projected cash flows rely upon the estimates discussed above and factors that are reflective of current or future expected conditions. These estimates depend on the duration of current overall economic conditions, industry, borrower, or portfolio specific conditions. Volatility in certain credit metrics and differences between expected and actual outcomes are to be expected.
Customers may not repay their loans according to the original terms, and the collateral securing the payment of those loans may be insufficient to pay any remaining loan balance. Bank regulators periodically review our allowance for credit losses and may require us to increase our provision for credit losses or loan charge-offs.
Impact on Financial Condition and Results of Operations
If our assumptions prove to be incorrect, the allowance for credit losses may not be sufficient to cover expected losses in the loan portfolio, resulting in additions to the allowance. Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance through charges to earnings which would materially decrease our net income.
We may experience significant credit losses if borrowers experience financial difficulties, which could have a material adverse effect on our operating results.
In addition, various regulatory agencies, as an integral part of the examination process, periodically review the allowance for credit losses. Such agencies may require the Bank to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination.
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Liquidity and Capital Resources
The Board of Directors has approved a liquidity policy that it reviews and updates at least annually. Senior management is responsible for implementing the policy. The Bank’s Asset Liability Committee (“ALCO”) is responsible for general oversight and strategic implementation of the policy and management of the appropriate departments are designated responsibility for implementing any strategies established by ALCO. On a daily basis, appropriate senior management receives a current cash position report and 30-day forecast to ensure that all short-term obligations are timely satisfied, and that adequate liquidity exists to fund future activities. Reports detailing the Bank’s liquidity reserves are presented to appropriate senior management on at least a monthly basis, and the Board of Directors at each of its meetings. In addition, a twelve-month liquidity forecast is presented to ALCO in order to assess potential future liquidity concerns. A forecast of cash flow data for the upcoming 12 months is presented to the Board of Directors no less than annually. Given recent banking industry events, management monitors the level of uninsured deposits on a regular basis.
Liquidity is primarily needed to meet customer borrowing commitments and deposit withdrawals, either on demand or on contractual maturity, to repay borrowings as they mature, to fund current and planned expenditures and to make new loans and investments as opportunities arise. The Bank’s primary sources of funding for its lending and investment activities include deposits, loan payments, investment security principal and interest payments and advances from the FHLBNY. The Bank may also sell or securitize selected multifamily residential, mixed-use or one-to-four family residential real estate loans to private sector secondary market purchasers and has in the past sold such loans to FNMA and Federal Home Loan Mortgage Corporation (“FHLMC”). The Company may additionally issue debt or equity under appropriate circumstances. Although maturities and scheduled amortization of loans and investments are predictable sources of funds, deposit flows and prepayments on real estate loans and MBS are influenced by interest rates, economic conditions and competition.
The Bank is a member of American Financial Exchange (“AFX”), through which it may either borrow or lend funds on an overnight or short-term basis with other member institutions. The availability of funds changes daily. At June 30, 2025, the Bank did not have any such borrowings outstanding through the AFX. At December 31, 2024, the Bank had $50.0 million of such borrowings outstanding through the AFX, which is included in other short-term borrowings on the consolidated statements of financial condition.
The Bank utilizes repurchase agreements as part of its borrowing policy to add liquidity. Repurchase agreements represent funds received from customers, generally on an overnight basis, which are collateralized by investment securities. As of June 30, 2025 and December 31, 2024, the Bank did not have any repurchase agreements.
The Bank gathers deposits in direct competition with commercial banks, savings banks and brokerage firms, many among the largest in the nation. It must additionally compete for deposit monies against the stock and bond markets, especially during periods of strong performance in those arenas. The Bank’s deposit flows are affected primarily by the pricing and marketing of its deposit products compared to its competitors, as well as the market performance of depositor investment alternatives such as the U.S. bond or equity markets. To the extent that the Bank is responsive to general market increases or declines in interest rates, its deposit flows should not be materially impacted. However, favorable performance of the equity or bond markets could adversely impact the Bank’s deposit flows.
Total deposits (including mortgage escrow deposits) increased $54.0 million during the six months ended June 30, 2025, compared to an increase of $497.8 million during the six months ended June 30, 2024. The increase in deposits during the current period was primarily due to an increase in non-interest-bearing checking accounts, money market accounts and CD’s, offset by a decline in interest bearing checking accounts and savings accounts deposits.
In the event that the Bank should require funds beyond its ability or desire to generate them internally, additional sources of funds are available through a borrowing line at the FHLBNY, borrowing capacity at the AFX, lines of credit with unaffiliated correspondent banks, and various brokered deposit sources. At June 30, 2025, the Bank had remaining borrowing capacity of $1.75 billion through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements (i.e., 4.5% of the Bank’s outstanding FHLBNY borrowings). The Bank also had access to the FRB Discount Window. At June 30, 2025, an available line of credit totaling $376.7 million was in place at the FRB backed by investment securities with no advances drawn. Additionally, at June 30, 2025, a line of credit totaling $3.22
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billion was in place at the FRB secured by certain qualifying 1-4 family residential mortgage loans, construction loans and CRE loans with no amounts drawn.
The Bank reduced its outstanding FHLBNY advances by $100.0 million during the six months ended June 30, 2025, compared to a reduction of $680.0 million during the six months ended June 30, 2024. See Note 12. “FHLBNY Advances” for further information.
Subordinated debentures totaled $272.4 million at June 30, 2025 compared to $272.3 million at December 31, 2024. See Note 13. “Subordinated Debentures” to our Consolidated Financial Statements for further information.
During the six months ended June 30, 2025 and 2024, business loan originations excluding new lines were $173.7 million and $171.6 million, respectively. During the six months ended June 30, 2025, and 2024, real estate loan originations excluding new lines (excluding owner-occupied commercial real estate) totaled $125.1 million and $88.2 million, respectively.
The Company and the Bank are subject to minimum regulatory capital requirements imposed by their primary federal regulators. As a general matter, these capital requirements are based on the amount and composition of an institution’s assets. At June 30, 2025, both the Company and the Bank were in compliance with all applicable regulatory capital requirements and the Bank was considered “well capitalized” for all regulatory purposes.
The following table summarizes Company and Bank capital ratios calculated under the Basel III Capital Rules framework as of the period indicated:
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Actual Ratios at June 30, 2025 |
| ||||||||||
| | | | | | | | Basel III | | | |
| |
| | | | | Consolidated | | Minimum | | | To Be Categorized as |
| ||
| | Bank | | Company | | Requirement | | | “Well Capitalized” (1) |
| |||
Tier 1 common equity ratio | | | 14.2 | % | | 11.2 | % | | 4.5 | % | | 6.5 | % |
Tier 1 risk-based capital ratio | | | 14.2 | | | 12.3 | | | 6.0 | | | 8.0 | |
Total risk-based capital ratio | | | 15.1 | | | 15.8 | | | 8.0 | | | 10.0 | |
Tier 1 leverage ratio | | | 10.8 | | | 9.4 | | | 4.0 | | | 5.0 | |
| (1) | Only the Bank is subject to these requirements. |
During the six months ended June 30, 2025 and 2024, the Holding Company did not repurchase any shares of its common stock. As of June 30, 2025, 1,566,947 shares remained available for purchase under the authorized share repurchase programs. See “Part II - Item 2. Other Information - Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities” for additional information about repurchases of common stock.
The Holding Company paid $3.6 million in cash dividends on its preferred stock during the six months ended June 30, 2025, and 2024, respectively.
The Holding Company paid $21.4 million and $19.0 million in cash dividends on its common stock during the six months ended June 30, 2025, and 2024, respectively.
Contractual Obligations
The Bank generally has borrowings outstanding in the form of FHLBNY advances, short-term or overnight borrowings, subordinated debt, as well as customer CDs with fixed contractual interest rates. In addition, the Bank is obligated to make rental payments under leases on certain of its branches and equipment.
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Off-Balance Sheet Arrangements
As part of its loan origination business, the Bank generally has outstanding commitments to extend credit to borrowers, which are originated pursuant to its regular underwriting standards. Available lines of credit may not be drawn on or may expire prior to funding, in whole or in part, and amounts are not estimates of future cash flows. As of June 30, 2025, the Bank had $136.9 million of firm loan commitments that were accepted by the borrowers.
Additionally, in connection with a loan securitization completed in December 2017, the Bank executed a reimbursement agreement with FHLMC that obligates the Company to reimburse FHLMC for any contractual principal and interest payments on defaulted loans, not to exceed 10% of the original principal amount of the loans comprising the aggregate balance of the loan pool at securitization. The maximum exposure under this reimbursement obligation is $27.9 million. The Bank has pledged $27.9 million of pass-through MBS issued by GSEs as collateral.
Concentrations of Lending Activities
Non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans have collectively represented the largest percentage of the Company’s loan portfolio, accounting for 63% and 65% of total loans held for investment as of June 30, 2025 and December 31, 2024, respectively. Non-owner occupied commercial real estate loans represent 29% and 30% of total loans held for investment as of June 30, 2025 and December 31, 2024, respectively. Multifamily residential and residential mixed-use loans made up 34% and 35% of total loans held for investment as of June 30, 2025 and December 31, 2024, respectively. The Company expects that non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans will continue to be a significant portion of the Company’s total loan portfolio.
Non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans are subject to a varying degree of risk associated with changing general economic conditions. The Company employs heightened risk management practices that address key elements, including board and management oversight and strategic planning, portfolio management, development of underwriting standards, risk assessment and monitoring through market analysis and stress testing, and maintenance of appropriate capital levels as needed to support lending activities.
Despite the Company's concentration in non-owner occupied commercial real estate and multifamily residential and residential mixed-use loans, the properties securing these portfolios are diversified in terms of type and geographic location. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. As a matter of policy, the non-owner occupied commercial real estate loan and the multifamily residential and residential mixed-use loan portfolios are subject to risk exposure limits by individual asset classes as well as geographic collateral locations outside of our market areas.
We regularly identify and assess concentration levels through ongoing reporting to our Board of Directors as well as committees at both the Board and Management levels. The management team has extensive knowledge and experience in underwriting non-owner occupied commercial real estate loans and multifamily residential and residential mixed-use loans. Management has established the Credit Risk Management Committee which meets quarterly to review all policies and procedures, large lending exposures, and emerging trends including trends related to delinquency, debt service coverage ratios, loan-to-value, and loan ratings to aid in early detection and escalation of potential issues. The Company has a dedicated team responsible for conducting comprehensive annual reviews of the portfolios, ensuring consistent oversight. Credit underwriting standards are periodically reviewed and adjusted based upon observations from our ongoing monitoring of economic conditions in major real estate markets in which we lend. In response to the current dynamic interest rate environment and changes in the benchmark rates that determine loan pricing, the Company has enhanced its stress testing and loan review activities to mitigate interest rate reset risk with a specific emphasis on borrowers' abilities to absorb the impact of higher interest loan rates and measure the resiliency of the portfolios. As a general rule, Management takes a selective approach to originating non-owner occupied commercial real estate and multifamily residential and residential mixed-use loans, prioritizing quality and strategic alignment.
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The following tables present the composition by property type and weighted average loan-to-value (“LTV”) of the Company’s non-owner occupied commercial real estate loans:
| | | | | | | | | | | | | | | |
| | June 30, 2025 | | ||||||||||||
| | | | | | | | | | | | | | Weighted | |
| | | | | | | | | | | | | Average Rate | | |
(Dollars in thousands) | | | NY | | | NJ | | | Other | | Balance | | LTV |
| |
Investor commercial real estate: | | | | | | | | | | | | | | | |
Retail | | $ | 1,033,852 | | $ | 66,818 | | $ | 3,529 | | $ | 1,104,199 | | 52 | % |
Investor office | | | 418,353 | | | 161,272 | | | 3,091 | | | 582,716 | | 59 | |
Warehouse/ Industrial | |
| 320,596 | | | 14,717 | | | 68,770 | |
| 404,083 | | 54 | |
Hotels | |
| 330,351 | | | 422 | | | 11,823 | |
| 342,596 | | 57 | |
Supportive housing | |
| 178,603 | | | — | | | — | |
| 178,603 | | 57 | |
Medical office | |
| 100,860 | | | — | | | 28,162 | |
| 129,022 | | 60 | |
Educational facility or library | | | 113,302 | | | — | | | — | | | 113,302 | | 57 | |
Medical facility | | | 60,626 | | | — | | | — | | | 60,626 | | 71 | |
Other (1) | | | 207,582 | | | 2,714 | | | 2,677 | | | 212,973 | | 55 | |
Total investor commercial real estate | | $ | 2,764,125 | | | 245,943 | | | 118,052 | | $ | 3,128,120 | | 55 | % |
| (1) | Includes various property types such as gas stations, restaurants, storage facilities, and other special use properties. |
| | | | | | | | | | | | | | | |
| | December 31, 2024 | | ||||||||||||
| | | | | | | | | | | | | | Weighted | |
| | | | | | | | | | | | | Average Rate | | |
(Dollars in thousands) | | | NY | | | NJ | | | Other | | Balance | | LTV |
| |
Investor commercial real estate: | | | | | | | | | | | | | | | |
Retail | | $ | 1,085,618 | | $ | 62,990 | | $ | 3,594 | | $ | 1,152,202 | | 51 | % |
Investor office | | | 439,359 | | | 162,367 | | | 3,127 | | | 604,853 | | 58 | |
Warehouse/ Industrial | |
| 337,288 | | | 16,675 | | | 69,314 | |
| 423,277 | | 53 | |
Hotels | |
| 356,450 | | | 425 | | | 11,934 | |
| 368,809 | | 57 | |
Supportive housing | |
| 161,207 | | | — | | | — | |
| 161,207 | | 59 | |
Medical office | |
| 106,403 | | | — | | | 28,470 | |
| 134,873 | | 62 | |
Educational facility or library | | | 120,719 | | | — | | | — | | | 120,719 | | 59 | |
Medical facility | | | 60,866 | | | — | | | — | | | 60,866 | | 71 | |
Other (1) | | | 196,304 | | | 2,763 | | | 4,662 | | | 203,729 | | 54 | |
Total investor commercial real estate | | $ | 2,864,214 | | | 245,220 | | | 121,101 | | $ | 3,230,535 | | 55 | % |
| (1) | Includes various property types such as gas stations, restaurants, storage facilities, and other special use properties. |
The following tables present the composition by property type and weighted average LTV of the Company’s multifamily residential and residential mixed-use loans:
| | | | | | |
| | June 30, 2025 | | |||
| | | | | Weighted | |
| | Total | | Average Rate | | |
(Dollars in thousands) | | Balance | | LTV |
| |
Multifamily residential and residential mixed-use: | | | | | | |
New York City (1) | | | | | | |
100% rent regulated (2) | | $ | 550,863 | | 58 | % |
Majority rent regulated (2) | | | 623,104 | | 59 | |
Majority free market | | | 1,781,000 | | 55 | |
Total New York City | | | 2,954,967 | | 56 | |
| | | | | | |
Outside New York City | | | 738,458 | | 58 | |
Total multifamily residential and residential mixed-use | | $ | 3,693,425 | | 57 | % |
| (1) | New York City includes the Bronx, Brooklyn, Queens, Staten Island and Manhattan. |
| (2) | Composition based on revenue. |
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| | | | | | |
| | December 31, 2024 | | |||
| | | | | Weighted | |
| | Total | | Average Rate | | |
(Dollars in thousands) | | Balance | | LTV |
| |
Multifamily residential and residential mixed-use: | | | | | | |
New York City (1) | | | | | | |
100% rent regulated (2) | | $ | 572,054 | | 58 | % |
Majority rent regulated (2) | | | 643,908 | | 59 | |
Majority free market | | | 1,846,525 | | 55 | |
Total New York City | | | 3,062,487 | | 56 | |
| | | | | | |
Outside New York City | | | 757,796 | | 59 | |
Total multifamily residential and residential mixed-use | | $ | 3,820,283 | | 57 | % |
| (1) | New York City includes the Bronx, Brooklyn, Queens, Staten Island and Manhattan. |
| (2) | Composition based on revenue. |
Additional information related to the granularity in the non-owner occupied commercial real estate and multifamily residential and residential mixed-use portfolios is presented in the tables below as of June 30, 2025 and December 31, 2024:
| | | | | |
| | June 30, 2025 | |||
| | | | | Number of |
| | Average | | loans | |
(Dollars in thousands) | | Loan Size | | > $20 million | |
Investor commercial real estate: | | | | | |
Retail | | $ | 2,642 | | 3 |
Investor Office | | | 6,334 | | 9 |
Warehouse/ Industrial | | | 3,707 | | 4 |
Hotels | | | 8,565 | | 8 |
Supportive housing | | | 19,845 | | 3 |
Medical office | | | 6,144 | | 2 |
Educational facility or library | | | 10,300 | | — |
Medical facility | | | 7,578 | | 1 |
Other (1) | | | 1,990 | | — |
| | | | | |
Multifamily residential and residential mixed-use: | | | | | |
New York City (2) | | | | | |
100% rent regulated (3) | | | 2,504 | | — |
Majority rent regulated (3) | | | 3,799 | | 2 |
Majority free market | | | 3,949 | | 7 |
Outside New York City | | | 4,674 | | 8 |
| (1) | Includes various property types such as gas stations, restaurants, storage facilities, and other special use properties. |
| (2) | New York City includes the Bronx, Brooklyn, Queens, Staten Island and Manhattan. |
| (3) | Composition based on revenue. |
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| | | | | |
| | December 31, 2024 | |||
| | | | | Number of |
| | Average | | loans | |
(Dollars in thousands) | | Loan Size | | > $20 million | |
Investor commercial real estate: | | | | | |
Retail | | $ | 2,613 | | 4 |
Investor Office | | | 5,989 | | 9 |
Warehouse/ Industrial | | | 3,779 | | 4 |
Hotels | | | 8,781 | | 8 |
Supportive housing | | | 20,151 | | 3 |
Medical office | | | 6,423 | | 2 |
Educational facility or library | | | 10,060 | | — |
Medical facility | | | 7,608 | | 1 |
Other (1) | | | 1,922 | | — |
| | | | | |
Multifamily residential and residential mixed-use: | | | | | |
New York City (2) | | | | | |
100% rent regulated (3) | | | 2,487 | | — |
Majority rent regulated (3) | | | 3,810 | | 2 |
Majority free market | | | 3,864 | | 7 |
Outside New York City | | | 4,521 | | 8 |
| (1) | Includes various property types such as gas stations, restaurants, storage facilities, and other special use properties. |
| (2) | New York City includes the Bronx, Brooklyn, Queens, Staten Island and Manhattan. |
| (3) | Composition based on revenue. |
Asset Quality
General
We do not originate or purchase loans, either whole loans or loans underlying MBS, which would have been considered subprime loans at origination, i.e., real estate loans advanced to borrowers who did not qualify for market interest rates because of problems with their income or credit history. See Note 6 to our unaudited condensed Consolidated Financial Statements for a discussion of evaluation for impaired securities.
Monitoring and Collection of Delinquent Loans
Our management reviews delinquent loans on a monthly basis and reports to our Board of Directors or Committees of the Board of Directors at each regularly scheduled Board or Committee meeting regarding the status of all non-performing and otherwise delinquent loans in our loan portfolio.
Our loan servicing policies and procedures require that an automated late notice be sent to a delinquent borrower as soon as possible after a payment is ten days late in the case of business loans, multifamily residential and mixed use, non-owner-occupied commercial real estate loans, and ADC loans, or fifteen days late in connection with one-to-four family and consumer loans. Thereafter, periodic letters are mailed and phone calls placed to the borrower until payment is received or the loan is transferred to workout. When contact is made with the borrower at any time prior to foreclosure, we will attempt to obtain the full payment due or negotiate a repayment schedule with the borrower to avoid foreclosure.
Accrual of interest is generally discontinued on a loan that meets any of the following three criteria: (i) full payment of principal or interest is not expected; (ii) principal or interest has been in default for a period of 90 days or more (unless the loan is both deemed to be well secured and in the process of collection); or (iii) an election has otherwise been made to maintain the loan on a cash basis due to deterioration in the financial condition of the borrower. Such non-accrual determination practices are applied consistently to all loans regardless of their internal classification or designation. Upon entering non-accrual status, the system will reverse all outstanding accrued interest receivable.
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We generally initiate foreclosure proceedings on real estate loans when a loan enters non-accrual status based upon non-payment, unless the borrower is paying in accordance with an agreed upon modified payment agreement. We obtain an updated appraisal upon the commencement of legal action to calculate a potential collateral shortfall and to reserve appropriately for the potential loss. If a foreclosure action is instituted and the loan is not brought current, paid in full, or refinanced before the foreclosure action is completed, the property securing the loan is transferred to Other Real Estate Owned (“OREO”) status. We generally attempt to utilize all available remedies, such as note sales in lieu of foreclosure, in an effort to resolve non-accrual loans and OREO properties as quickly and prudently as possible in consideration of market conditions, the physical condition of the property and any other mitigating circumstances. We have not initiated any expected or imminent foreclosure proceedings that are likely to have a material adverse impact on our consolidated financial statements. In the event that a non-accrual loan is subsequently brought current, it is returned to accrual status once the doubt concerning collectability has been removed and the borrower has demonstrated performance in accordance with the loan terms and has made at least six months of payments.
The C&I portfolio, which is within our business loans, is actively managed by our lenders. Most credit facilities typically require an annual review of the exposure and borrowers are required to submit annual financial reporting and loans are structured with financial covenants to indicate expected performance levels. Smaller C&I loans are monitored based on performance and the ability to draw against a credit line is curtailed if there are any indications of credit deterioration. Guarantors are also required to update their financial reporting on an annual basis or alternative schedule as provided in their loan documents. All exposures are credit risk rated and those entering adverse ratings due to financial performance concerns of the borrower or material delinquency of any payments or financial reporting are subjected to added management scrutiny and monitoring. Measures taken typically include amendments to the amount of the available credit facility, requirements for increased collateral, additional guarantor support or a material enhancement to the frequency and quality of financial reporting. Loans determined to reach adverse risk rating standards are monitored closely by Credit Administration to identify any potential credit losses. When warranted, loans reaching a Substandard rating could be reassigned to the Workout Group for direct handling.
Non-accrual Loans
Within our held-for-investment loan portfolio, non-accrual loans totaled $53.2 million at June 30, 2025 and $49.5 million at December 31, 2024.
The following is a reconciliation of non-accrual loans as of the dates indicated:
| | | | | | | | | | |
| | June 30, | | December 31, | | June 30, | | |||
(Dollars in thousands) |
| 2025 |
| 2024 | | 2024 | | |||
Non-accrual loans: | | | | | | | | | | |
Business loans |
| $ | 18,007 | | $ | 22,624 | | $ | 20,287 | |
One-to-four family residential and cooperative/condominium apartment | | | 1,642 | | | 3,213 | | | 3,884 | |
Multifamily residential and residential mixed-use | | | — | | | — | | | — | |
Non-owner-occupied commercial real estate | | | 32,908 | | | 22,960 | | | 15 | |
ADC | | | 657 | | | 657 | | | 657 | |
Other loans |
| | — | |
| 25 | | | — | |
Total non-accrual loans |
| $ | 53,214 | | $ | 49,479 | | $ | 24,843 | |
Ratios: | | | | | | | | | | |
Total non-accrual loans to total loans | | | 0.49 | % | | 0.46 | % | | 0.23 | % |
Total non-performing assets to total assets | | | 0.37 | | | 0.34 | | | 0.18 | |
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Loan Restructurings
The Company applies the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include conditions where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and/or a combination of these modifications. The disclosures related to loan restructuring are only for modifications that directly affect cash flows.
Within the allowance for credit losses, losses are estimated for restructured loans on accrual status as well as restructured loans on non-accrual status that are one-to-four family loans or consumer loans, on a pooled basis with loans that share similar risk characteristics. Restructured loans on non-accrual status excluding one-to-four family and consumer loans are individually evaluated to determine expected credit losses. For restructured loans that are collateral-dependent where the Bank has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and we expect repayment of the loan to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of collateral, less the estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. For non-collateral-dependent loans, the allowance for credit losses is measured based on the difference between the present value of expected cash flows and the amortized cost basis of the loan as of the measurement date.
OREO
Property acquired by the Bank, or a subsidiary, as a result of foreclosure on a mortgage loan or a deed in lieu of foreclosure is classified as OREO. Upon entering OREO status, we obtain a current appraisal on the property and reassess the likely realizable value (a/k/a fair value) of the property quarterly thereafter. OREO is carried at the lower of the fair value or book balance, with any write downs recognized through a provision recorded in non-interest expense. Only the appraised value, or either a contractual or formal marketed value that falls below the appraised value, is used when determining the likely realizable value of OREO at each reporting period. We typically seek to dispose of OREO properties in a timely manner. As a result, OREO properties have generally not warranted subsequent independent appraisals.
There was no carrying value of OREO properties on our Consolidated Statement of Financial Condition at June 30, 2025 or December 31, 2024. We did not recognize any provision for losses on OREO properties during the six months ended June 30, 2025 or 2024.
Past Due Loans
Loans Delinquent 30 to 59 Days
At June 30, 2025, there were $28.1 million of loans that were past due between 30 and 59 days, compared to $10.3 million at December 31, 2024. The 30 to 59-day delinquency levels fluctuate monthly and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.
Loans Delinquent 60 to 89 Days
At June 30, 2025, there were $33.4 million of loans that were past due between 60 and 89 days, compared to $31.3 million at December 31, 2024. The 60 to 89-day delinquency levels fluctuate monthly and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.
Accruing Loans 90 Days or More Past Due
There were no accruing loans 90 days or more past due at June 30, 2025 or at December 31, 2024.
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Reserve for Unfunded Loan Commitments
The Bank maintains a reserve, recorded in other liabilities, associated with unfunded loan commitments accepted by the borrower. The amount of our reserve was $2.8 million and $2.7 million at June 30, 2025 and December 31, 2024, respectively. This reserve is determined based upon the outstanding volume of unfunded loan commitments at each period end. Any increases or reductions in this reserve are recognized in provision for credit losses.
Allowance for Credit Losses
Provision for credit losses for the six months ended June 30, 2025 and 2024 was $18.8 million and $10.8 million, respectively. Included in the provision for credit losses for the six months ended June 30, 2025 was $1.8 million of provision related to one available-for-sale corporate security. The remainder of the credit loss provision for the six months ended June 30, 2025, was primarily attributable to updates in the macroeconomic forecast and to the loss driver models. The $10.8 million credit loss provision for the six months ended June 30, 2024, was primarily associated with provisioning for the Bank’s pooled multifamily loan portfolio.
For a further discussion of the allowance for credit losses and related activity during the six months ended June 30, 2025 and 2024, please see Note 6 “Securities” and Note 7 “Loans Held for Investment, Net” to the condensed Consolidated Financial Statements.
The following table presents our allowance for credit losses allocated by loan type and the percent of loans in each category to total loans as of the dates indicated.
| | | | | | | | | | | |
| | | | | | | | | | | | | |
| | June 30, 2025 | | | December 31, 2024 | | | ||||||
| | | | | Percent | | | | | | Percent | | |
| | | | | of Loans | | | | | | of Loans | | |
| | | | | in Each | | | | | | in Each | | |
| | | | | Category | | | | | | Category | | |
| | Allocated | | to Total | | | Allocated | | to Total | | | ||
(Dollars in thousands) | | Amount |
| Loans |
| | Amount |
| Loans |
| | ||
Business loans | | $ | 42,965 | | 26.70 | % | | $ | 42,898 | | 25.08 | % | |
One-to-four family residential and cooperative/condominium apartment | | | 9,567 | | 9.19 | | | | 9,501 | | 8.75 | | |
Multifamily residential and residential mixed-use | |
| 13,667 | | 33.97 | | | | 11,946 | | 35.16 | | |
Non-owner-occupied commercial real estate | |
| 24,326 | | 28.78 | | | | 21,876 | | 29.72 | | |
ADC | |
| 2,380 | | 1.30 | | | | 2,323 | | 1.25 | | |
Other loans | |
| 284 | | 0.06 | | | | 207 | | 0.04 | | |
Total | | $ | 93,189 |
| 100.00 | % | | $ | 88,751 |
| 100.00 | % | |
The following table sets forth information about our allowance for credit losses at or for the dates indicated:
| | | | | | | |
| | At or for the Six Months Ended June 30, | |||||
(Dollars in thousands) |
| 2025 |
| 2024 |
| ||
Total loans outstanding at end of period (1) | | $ | 10,870,030 | | $ | 10,824,518 | |
Average total loans outstanding during the period (2) | |
| 10,852,525 | |
| 10,757,655 | |
Allowance for credit losses balance at end of period | |
| 93,189 | |
| 77,812 | |
Allowance for credit losses to total loans at end of period | |
| 0.86 | % |
| 0.72 | % |
Non-performing loans to total loans at end of period | | | 0.49 | | | 0.23 | |
Allowance for credit losses to total non-performing loans at end of period | |
| 175.12 | |
| 313.21 | |
| | | | | | | |
Ratio of net charge-offs to average loans outstanding during the period: | | | | | | | |
Business loans | | | 0.35 | % | | 0.15 | % |
One-to-four family residential and cooperative/condominium apartment | | | 0.01 | | | — | |
Multifamily residential and residential mixed-use | | | — | | | 0.13 | |
Non-owner-occupied commercial real estate | | | 0.47 | | | — | |
Other loans | | | 0.75 | | | 1.33 | |
Total | | | 0.23 | | | 0.08 | |
| (1) | Total loans represent gross loans (excluding loans held for sale), inclusive of deferred fees/costs and premiums/discounts. |
| (2) | Total average loans represent gross loans (including loans held for sale), inclusive of deferred loan fees/costs and premiums/discounts. |
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Comparison of Financial Condition at June 30, 2025 and December 31, 2024
Assets. Assets totaled $14.21 billion at June 30, 2025, $145.3 million below their level at December 31, 2024, primarily due to decreases of $126.8 million in cash and due from banks, $76.3 million in other assets, $25.5 million in derivative assets, $9.0 million in loans held for sale and $5.5 million in the loan portfolio, partially offset by an increase of $102.7 million in BOLI.
Loan originations, excluding new lines, totaled $298.8 million for the six-month period ended June 30, 2025.
Total investment securities increased $617 thousand during the six months ended June 30, 2025, to $1.33 billion at period end, primarily due to purchases of $81.0 million and a decrease in unrealized losses of $12.9 million, offset by proceeds from principal payments, calls and maturities of $68.6 million and proceeds from the sale of available for sale securities of $24.8 million. There were no transfers to or from securities held-to-maturity during the six months ended June 30, 2025.
BOLI increased $102.7 million during the six months ended June 30, 2025, to $393.3 million. This increase in BOLI is primarily due to completion of the restructuring initiative that begun in late 2024, as well as purchases of new BOLI assets.
Liabilities. Total liabilities decreased $179.8 million during the six months ended June 30, 2025, to $12.78 billion at period end, primarily due to decreases of $100.0 million in FHLBNY advances, $50.0 million in short-term borrowings, $42.6 million in derivative cash collateral, $22.2 million in derivative liabilities and $17.6 million in other liabilities, partially offset by an increase of $54.0 million in deposits (including mortgage escrow accounts).
Stockholders’ Equity. Stockholders’ equity increased $34.5 million during the six months ended June 30, 2025, to $1.43 billion at period end, primarily due to net income of $51.2 million and other comprehensive income of $7.1 million, partially offset by common stock dividends of $21.8 million, and preferred stock dividends of $3.6 million.
Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024
General. Net income was $29.7 million during the three months ended June 30, 2025, compared to net income of $18.5 million for the three months ended June 30, 2024. During the three months ended June 30, 2025, net interest income increased by $22.6 million, non-interest expense increased by $4.6 million, the credit loss provision increased by $3.6 million, non-interest income decreased by $213 thousand and income tax expense increased by $2.9 million, compared to the three months ended June 30, 2024.
The discussion of net interest income for the three months ended June 30, 2025 and 2024 should be read in conjunction with the following tables, which set forth certain information related to the Consolidated Statements of Operations for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated. The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented. Average balances were derived from average daily balances. No tax-equivalent adjustments have been made for interest income exempt from federal, state, and local taxation. The yields include loan fees consisting of amortization of loan origination and commitment fees and certain direct and indirect origination costs, prepayment fees, and late charges that are considered adjustments to yields. Net loan fees included in interest income were $1.1 million during the three months ended June 30, 2025, compared to a net loan cost of $7 thousand during the three months ended June 30, 2024. The increase in net loan fees was primarily due to increases in prepayment penalty fees and deferred fees on loans in 2025.
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Analysis of Net Interest Income
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | ||||||||||||||
| | 2025 | | 2024 | | ||||||||||||
|
| | |
| | | | Average |
| | |
| | | | Average |
|
| | Average | | | | | Yield/ | | Average | | | | | Yield/ | | ||
|
| Balance |
| Interest | | Cost |
| Balance |
| Interest | | Cost |
| ||||
Assets: |
| (Dollars in thousands) |
| ||||||||||||||
Interest-earning assets: |
| |
|
| |
| |
|
| |
|
| |
| |
|
|
Business loans (1) (3) (6) | | $ | 2,798,899 | | $ | 46,593 | | 6.68 | % | $ | 2,400,219 | | $ | 42,933 | | 7.19 | % |
One-to-four family residential and coop/condo apartment (3) (6) | | | 981,138 | | | 11,532 | | 4.71 | | | 886,037 | | | 9,968 | | 4.52 | |
Multifamily residential and residential mixed-use (3) (6) | | | 3,740,939 | | | 42,462 | | 4.55 | | | 3,958,617 | | | 45,775 | | 4.65 | |
Non-owner-occupied commercial real estate (3) (6) | | | 3,175,062 | | | 41,822 | | 5.28 | | | 3,359,004 | | | 44,728 | | 5.36 | |
ADC (3) | | | 136,154 | | | 3,009 | | 8.86 | | | 164,283 | | | 3,638 | | 8.91 | |
Other loans (3) | |
| 7,135 | |
| 30 | | 1.69 | |
| 5,100 | |
| 57 | | 4.50 | |
Securities | |
| 1,361,383 | |
| 11,353 | | 3.34 | |
| 1,537,487 | |
| 7,907 | | 2.07 | |
Other short-term investments | |
| 994,406 | |
| 10,749 | | 4.34 | |
| 313,809 | |
| 4,412 | | 5.65 | |
Total interest-earning assets | |
| 13,195,116 | | | 167,550 | | 5.09 | % |
| 12,624,556 | | | 159,418 | | 5.08 | % |
Non-interest earning assets | |
| 818,476 | |
| | | | |
| 793,885 | |
| | | | |
Total assets | | $ | 14,013,592 | | | | | | | $ | 13,418,441 | | | | | | |
| | | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity: | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
Interest-bearing liabilities: | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
Interest-bearing checking (2) | | $ | 943,716 | | $ | 4,141 |
| 1.76 | % | $ | 631,403 | | $ | 1,499 |
| 0.95 | % |
Money market | |
| 4,174,694 | |
| 32,818 |
| 3.15 | |
| 3,495,989 | |
| 33,193 |
| 3.82 | |
Savings (2) | |
| 1,925,224 | |
| 14,048 |
| 2.93 | |
| 2,336,202 | |
| 23,109 |
| 3.98 | |
CDs | |
| 1,075,729 | |
| 9,174 |
| 3.42 | |
| 1,393,678 | |
| 15,077 |
| 4.35 | |
Total interest-bearing deposits | |
| 8,119,363 | | | 60,181 | | 2.97 | | | 7,857,272 | | | 72,878 | | 3.73 | |
FHLBNY advances | | | 508,000 | | | 4,053 | | 3.20 | | | 671,242 | | | 6,429 | | 3.85 | |
Subordinated debt, net | | | 272,385 | | | 4,301 | | 6.33 | | | 202,232 | | | 2,604 | | 5.18 | |
Other short-term borrowings | | | — | | | — | | — | | | — | | | — | | — | |
Total borrowings | | | 780,385 | | | 8,354 | | 4.29 | | | 873,474 | | | 9,033 | | 4.16 | |
Derivative cash collateral | | | 79,188 | | | 918 | | 4.65 | | | 145,702 | | | 2,005 | | 5.53 | |
Total interest-bearing liabilities | |
| 8,978,936 | |
| 69,453 |
| 3.10 | % |
| 8,876,448 | |
| 83,916 |
| 3.80 | % |
Non-interest-bearing checking (2) | | | 3,412,215 | | | | | | | | 3,042,382 | | | | | | |
Other non-interest-bearing liabilities | |
| 187,774 | |
| |
| | |
| 242,980 | |
| |
| | |
Total liabilities | |
| 12,578,925 | |
| |
| | |
| 12,161,810 | |
| |
| | |
Stockholders' equity | |
| 1,434,667 | |
| |
| | |
| 1,256,631 | |
| |
| | |
Total liabilities and stockholders' equity | | $ | 14,013,592 | | | | | | | $ | 13,418,441 | | | | | | |
Net interest income | | | | | $ | 98,097 | | | | | | | $ | 75,502 | | | |
Net interest rate spread (4) | |
| | |
| |
| 1.99 | % |
| | |
| |
| 1.28 | % |
Net interest-earning assets | | $ | 4,216,180 | | | | | | | $ | 3,748,108 | | | | | | |
Net interest margin (5) | |
| | |
| |
| 2.98 | % |
| | |
| |
| 2.41 | % |
Ratio of interest-earning assets to interest-bearing liabilities | |
| | |
| |
| 146.96 | % |
| | |
| |
| 142.23 | % |
Deposits (including non-interest-bearing checking accounts) (2) | | $ | 11,531,578 | | $ | 60,181 | | 2.09 | % | $ | 10,899,654 | | $ | 72,878 | | 2.69 | % |
| (1) | Business loans include C&I loans, owner-occupied commercial real estate loans and PPP loans. |
| (2) | Includes mortgage escrow deposits. |
| (3) | Amounts are net of deferred origination costs/(fees) and allowance for credit losses, and include loans held for sale. |
| (4) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
| (5) | Net interest margin represents net interest income divided by average-interest earning assets. |
| (6) | At June 30, 2025 and 2024, the loan portfolio included a fair value hedge basis point adjustment to the carrying amount of hedged business loans, one-to-four family residential mortgage loans, multifamily residential mortgage loans and non-owner occupied commercial real estate loans. |
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Rate/Volume Analysis | | | | | | | | | |
Rate/Volume Analysis
| | | | | | | | | |
|
| Three Months Ended June 30, 2025 | |||||||
| | Compared to Three Months Ended June 30, 2024 | |||||||
| | Increase / (Decrease) Due to: | |||||||
|
| Volume |
| Rate |
| Total | |||
| | (Dollars in thousands) | |||||||
Interest-earning assets: |
| | | | | | | | |
Business loans (1) (2) | | $ | 6,930 | | $ | (3,270) | | $ | 3,660 |
One-to-four family residential and coop/condo apartment | | | 1,108 | | | 456 | | | 1,564 |
Multifamily residential and residential mixed-use | | | (2,425) | | | (888) | | | (3,313) |
Non-owner-occupied commercial real estate | | | (2,347) | | | (559) | | | (2,906) |
ADC | | | (617) | | | (12) | | | (629) |
Other loans | |
| 16 | | | (43) | |
| (27) |
Securities | |
| (1,166) | | | 4,612 | |
| 3,446 |
Other short-term investments | |
| 8,475 | | | (2,138) | |
| 6,337 |
Total interest-earning assets | | $ | 9,974 | | $ | (1,842) | | $ | 8,132 |
Interest-bearing liabilities: | |
|
| |
|
| |
| |
Interest-bearing checking | | $ | 1,053 | | $ | 1,589 | | $ | 2,642 |
Money market | |
| 5,965 | | | (6,340) | |
| (375) |
Savings | |
| (3,511) | | | (5,550) | |
| (9,061) |
CDs | |
| (3,060) | | | (2,843) | |
| (5,903) |
FHLBNY advances | | | (1,427) | | | (949) | | | (2,376) |
Subordinated debt, net | | | 1,011 | | | 686 | | | 1,697 |
Other short-term borrowings | | | — | | | — | | | — |
Derivative cash collateral | | | (842) | | | (245) | | | (1,087) |
Total interest-bearing liabilities | | $ | (811) | | $ | (13,652) | | $ | (14,463) |
Net change in net interest income | | $ | 10,785 | | $ | 11,810 | | $ | 22,595 |
| (1) | Business loans include C&I loans, owner-occupied commercial real estate loans and PPP loans. |
| (2) | Amounts are net of deferred origination costs/(fees) and allowance for credit losses, and include loans held for sale. |
Net interest income. Net interest income was $98.1 million during the three months ended June 30, 2025, an increase of $22.6 million from the three months ended June 30, 2024. Average interest-earning assets were $13.20 billion for the three months ended June 30, 2025, an increase of $570.6 million from $12.62 billion for the three months ended June 30, 2024. The net interest margin was 2.98% during the three months ended June 30, 2025, up from 2.41% during the three months ended June 30, 2024.
Interest Income. Interest income was $167.5 million during the three months ended June 30, 2025, compared to $159.4 million during the three months ended June 30, 2024. During the three months ended June 30, 2025, interest income increased $8.1 million from the three months ended June 30, 2024, primarily reflecting increases in interest income of $6.3 million in other short-term investments, $3.7 million on business loans, $3.4 million on securities and $1.6 million on one-to-four family loans, partially offset by a decrease of $3.3 million on multifamily residential and residential mixed-use loans and a decrease of $2.9 million on non-owner-occupied commercial real estate loans.
The increased interest income on other short-term investments was related to a $680.6 million increase in the average balances, partially offset by a 131-basis point decrease in the yield of such investments in the period. The increased interest income on business loans was due to a $398.7 million increase in the average balances, partially offset by a 51-basis point decrease in the yield of such loans in the period. The increased interest income on securities was related to a 127-basis point increase in the yield, partially offset by a decrease of $176.1 million in the average balances of such securities in the period. The increased interest income on one-to-four family loans was related to a $95.1 million increase in the average balances and a 19-basis point increase in the yield of such loans in the period. The decreased interest income on multifamily residential and residential mixed-use loans was related to a $217.7 million decrease in the average balance and a 10-basis point decrease in the yield of such loans in the period. The decreased interest income on non-owner-occupied commercial real estate loans reflected a $183.9 million decrease in the average balance and an 8-basis point decrease in the yield of such loans in the period.
Interest Expense. Interest expense was $69.5 million during the three months ended June 30, 2025, compared to $83.9 million during the three months ended June 30, 2024. During the three months ended June 30, 2025, interest expense decreased $14.4 million, primarily reflecting a decrease in interest expense of $12.7 million on deposits, a decrease in
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interest expense of $2.4 million on FHLBNY advances and a decrease of $1.1 million in interest expense on derivative cash collateral, partially offset by a $1.7 million increase in interest expense on subordinated debt.
The decreased interest expense on deposits was primarily due to a 105-basis point decrease in rates paid on savings accounts, a $411.0 million decrease in average balances of such deposits, a $317.9 million decrease in the average balance of CDs and a 93-basis point decrease in rates paid on such deposits in the period. The decreased interest expense on FHLBNY advances was due to a $163.2 million decrease in the average balance and a 65-basis point decrease in the cost of FHLBNY advances in the period. The decreased interest expense on derivative cash collateral was due to a $66.5 million decrease in the average balance and an 88-basis point decrease in the cost of such derivatives in the period. The increased interest expense on subordinated debt was due to a $70.2 million increase in the average balance and a 115-basis point increase in the cost of such debt in the period.
Provision for Credit Losses. We recorded a credit loss provision of $9.2 million and $5.6 million during the three months ended June 30, 2025 and 2024, respectively. The $9.2 million credit loss provision for the three months ended June 30, 2025, was primarily attributable to updates in the macroeconomic forecast and to the loss driver models. The $5.6 million credit loss provision for the three months ended June 30, 2024, was primarily associated with increased provisioning for our pooled multifamily loan portfolio.
Non-Interest Income. Non-interest income totaled $11.6 million for the three months ended June 30, 2025, compared to $11.8 million for the same period in 2024. The decrease was primarily driven by a $3.7 million reduction in gains from the sale of other assets, partially offset by a $1.7 million increase in BOLI income.
Non-Interest Expense. Non-interest expense totaled $60.3 million for the three months ended June 30, 2025, compared to $55.7 million for the same period in 2024. The change was primarily driven by a $4.0 million increase in salaries and employee benefits.
Non-interest expense was 1.72% and 1.66% of average assets during the three months ended June 30, 2025 and 2024, respectively.
Income Tax Expense. Income tax expense was $10.5 million during the three months ended June 30, 2025, compared to income tax expense of $7.6 million during the three months ended June 30, 2024. The reported effective tax rate for the three months ended June 30, 2025 and 2024 was 26.1%, and 29.0%, respectively.
Comparison of Operating Results for the Six Months Ended June 30, 2025 and 2024
General. Net income was $51.2 million during the six months ended June 30, 2025, compared to net income of $36.2 million for the six months ended June 30, 2024. During the six months ended June 30, 2025, net interest income increased by $45.3 million, credit loss provision increased by $8.1 million, non-interest expense increased by $17.6 million, non-interest income decreased by $1.0 million and income tax expense increased by $3.6 million, compared to the six months ended June 30, 2024.
The discussion of net interest income for the six months ended June 30, 2025 and 2024 should be read in conjunction with the following tables, which set forth certain information related to the Consolidated Statements of Operations for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated. The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented. Average balances were derived from average daily balances. No tax-equivalent adjustments have been made for interest income exempt from federal, state, and local taxation. The yields include loan fees consisting of amortization of loan origination and commitment fees and certain direct and indirect origination costs, prepayment fees, and late charges that are considered adjustments to yields. Net loan fees included in interest income were $2.3 million during the six months ended June 30, 2025, compared to a net loan cost of $304 thousand during the six months ended June 30, 2024. The increase in net loan fees was primarily due to increases in prepayment penalty fees and deferred fees on loans in 2025.
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Analysis of Net Interest Income
| | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, | |||||||||||||||
| | 2025 | | 2024 | | ||||||||||||
|
| | |
| | | | Average |
| | |
| | | Average |
| |
| | Average | | | | | Yield/ | | Average | | | | Yield/ | | |||
|
| Balance |
| Interest | | Cost |
| Balance |
| Interest | Cost |
| |||||
Assets: |
| (Dollars in thousands) | |||||||||||||||
Interest-earning assets: |
| | | | | | | | | | | | | | | | |
Business loans (1) (3) (6) | | $ | 2,773,661 | | $ | 91,640 | | 6.66 | % | $ | 2,354,269 | | $ | 82,157 | | 7.02 | % |
One-to-four family residential and coop/condo apartment (3) (6) | | | 971,645 | | | 22,601 | | 4.69 | | | 886,313 | | | 19,738 | | 4.48 | |
Multifamily residential and residential mixed-use (3) (6) | | | 3,768,693 | | | 84,791 | | 4.54 | | | 3,979,563 | | | 91,794 | | 4.64 | |
Non-owner-occupied commercial real estate (3) (6) | | | 3,194,800 | | | 83,148 | | 5.25 | | | 3,365,221 | | | 89,504 | | 5.35 | |
ADC (3) | | | 137,285 | | | 5,915 | | 8.69 | | | 167,029 | | | 7,330 | | 8.83 | |
Other loans (3) | |
| 6,441 | |
| 58 | | 1.82 | |
| 5,260 | |
| 141 | | 5.39 | |
Securities | |
| 1,366,942 | |
| 22,676 | | 3.35 | |
| 1,557,909 | |
| 15,787 | | 2.04 | |
Other short-term investments | |
| 860,392 | |
| 18,586 | | 4.36 | |
| 504,592 | |
| 13,976 | | 5.57 | |
Total interest-earning assets | |
| 13,079,859 | | | 329,415 | | 5.08 | % |
| 12,820,156 | | | 320,427 | | 5.03 | % |
Non-interest earning assets | |
| 816,422 | |
| | | | |
| 786,526 | |
| | | | |
Total assets | | $ | 13,896,281 | | | | | | | $ | 13,606,682 | | | | | | |
| | | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity: | |
|
| |
|
|
| | |
|
| |
|
|
| | |
Interest-bearing liabilities: | |
|
| |
|
|
| | |
|
| |
|
|
| | |
Interest-bearing checking (2) | | $ | 928,369 | | $ | 8,305 |
| 1.80 | % | $ | 606,725 | | $ | 2,722 |
| 0.90 | % |
Money market | |
| 4,125,924 | |
| 64,112 |
| 3.13 | |
| 3,427,937 | |
| 63,831 |
| 3.74 | |
Savings (2) | |
| 1,947,657 | |
| 28,233 |
| 2.92 | |
| 2,352,574 | |
| 45,919 |
| 3.93 | |
CDs | |
| 1,024,702 | |
| 17,605 |
| 3.46 | |
| 1,524,780 | |
| 33,475 |
| 4.41 | |
Total interest-bearing deposits | |
| 8,026,652 | |
| 118,255 |
| 2.97 | |
| 7,912,016 | |
| 145,947 |
| 3.71 | |
FHLBNY advances | |
| 508,552 | | | 8,119 |
| 3.22 | |
| 882,725 | | | 18,572 |
| 4.23 | |
Subordinated debt, net | | | 272,363 | | | 8,603 | | 6.37 | | | 201,210 | | | 5,157 | | 5.15 | |
Other short-term borrowings | | | 315 | | | 13 | | 8.32 | | | 39 | | | 1 | | 5.16 | |
Total borrowings | | | 781,230 | | | 16,735 | | 4.32 | | | 1,083,974 | | | 23,730 | | 4.40 | |
Derivative cash collateral | | | 91,588 | | | 2,115 | | 4.66 | | | 137,934 | | | 3,718 | | 5.42 | |
Total interest-bearing liabilities | | | 8,899,470 | | | 137,105 | | 3.11 | % | | 9,133,924 | | | 173,395 | | 3.82 | % |
Non-interest-bearing checking (2) | | | 3,367,647 | | | | | | | | 2,976,079 | | | | | | |
Other non-interest-bearing liabilities | | | 200,753 | | | | | | | | 245,348 | | | | | | |
Total liabilities | |
| 12,467,870 | |
| |
| | |
| 12,355,351 | |
| |
| | |
Stockholders' equity | |
| 1,428,411 | |
| |
| | |
| 1,251,331 | |
| |
| | |
Total liabilities and stockholders' equity | | $ | 13,896,281 | |
| |
| | | $ | 13,606,682 | |
| |
| | |
Net interest income | | | | | $ | 192,310 |
| | |
| | | $ | 147,032 |
| | |
Net interest rate spread (4) | |
| | |
| | | 1.97 | % |
| | |
| |
| 1.21 | % |
Net interest-earning assets | | $ | 4,180,389 | | | | | | | $ | 3,686,232 | | | | | | |
Net interest margin (5) | |
| | |
| |
| 2.96 | % |
| | |
| |
| 2.31 | % |
Ratio of interest-earning assets to interest-bearing liabilities | |
| | |
| | | 146.97 | % |
| | |
| |
| 140.36 | % |
Deposits (including non-interest-bearing checking accounts) (2) | | $ | 11,394,299 | | $ | 118,255 |
| 2.09 | % | $ | 10,888,095 | | $ | 145,947 | | 2.70 | % |
| (1) | Business loans include C&I loans, owner-occupied commercial real estate loans and PPP loans. |
| (2) | Includes mortgage escrow deposits. |
| (3) | Amounts are net of deferred origination costs/(fees) and allowance for credit losses, and include loans held for sale. |
| (4) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
| (5) | Net interest margin represents net interest income divided by average-interest earning assets. |
| (6) | At June 30, 2025 and 2024, the loan portfolio included a fair value hedge basis point adjustment to the carrying amount of hedged business loans, one-to-four family residential mortgage loans, multifamily residential mortgage loans and non-owner occupied commercial real estate loans. |
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Rate/Volume Analysis
| | | | | | | | | | |
|
| Six Months Ended June 30, 2025 | | |||||||
| | Compared to Six Months Ended June 30, 2024 | | |||||||
| | Increase / (Decrease) Due to: | | |||||||
|
| Volume |
| Rate |
| Total | | |||
Interest-earning assets: |
| | | | | | | | | |
Business loans (1) (2) | | $ | 14,143 | | $ | (4,660) | | $ | 9,483 | |
One-to-four family residential and coop/condo apartment | | | 1,918 | | | 945 | | | 2,863 | |
Multifamily residential and residential mixed-use | | | (4,941) | | | (2,062) | | | (7,003) | |
Non-owner-occupied commercial real estate | | | (4,604) | | | (1,752) | | | (6,356) | |
ADC | |
| (1,300) | |
| (115) | |
| (1,415) | |
Other loans | |
| 21 | |
| (104) | |
| (83) | |
Securities | |
| (2,582) | |
| 9,471 | |
| 6,889 | |
Other short-term investments | |
| 8,733 | |
| (4,123) | |
| 4,610 | |
Total interest-earning assets | | $ | 11,388 | | $ | (2,400) | | $ | 8,988 | |
Interest-bearing liabilities: | |
|
| |
|
| |
|
| |
Interest-bearing checking | | $ | 2,155 | | $ | 3,428 | | $ | 5,583 | |
Money market | |
| 11,798 | |
| (11,517) | |
| 281 | |
Savings | |
| (6,897) | |
| (10,789) | |
| (17,686) | |
CDs | |
| (9,811) | |
| (6,059) | |
| (15,870) | |
FHLBNY advances | | | (6,940) | |
| (3,513) | |
| (10,453) | |
Subordinated debt, net | | | 2,023 | |
| 1,423 | |
| 3,446 | |
Other short-term borrowings | | | 9 | |
| 3 | |
| 12 | |
Derivative cash collateral | | | (1,164) | |
| (439) | |
| (1,603) | |
Total interest-bearing liabilities | | $ | (8,827) | | $ | (27,463) | | $ | (36,290) | |
Net change in net interest income | | $ | 20,215 | | $ | 25,063 | | $ | 45,278 | |
| (1) | Business loans include C&I loans, owner-occupied commercial real estate loans and PPP loans. |
| (2) | Amounts are net of deferred origination costs/(fees) and allowance for credit losses, and include loans held for sale. |
Net interest income. Net interest income was $192.3 million during the six months ended June 30, 2025, an increase of $45.3 million from the six months ended June 30, 2024. Average interest-earning assets were $13.08 billion for the six months ended June 30, 2025, an increase of $259.7 million from $12.82 billion for the six months ended June 30, 2024. Net interest margin was 2.96% during the six months ended June 30, 2024, up from 2.31% during the six months ended June 30, 2024.
Interest Income. Interest income was $329.4 million during the six months ended June 30, 2025, compared to $320.4 million during the six months ended June 30, 2024. During the six months ended June 30, 2025, interest income increased $9.0 million from the six months ended June 30, 2024, primarily reflecting increases in interest income of $9.5 million on business loans, $6.9 million on securities, $4.6 million on other short-term investments and $2.9 million on one-to-four family loans, partially offset by decreases in interest income of $7.0 million on multifamily loans, $6.4 million on non-owner-occupied loans, and $1.4 million on acquisition, development and construction loans.
The increased interest income on business loans was due to a $419.4 million increase in the average balances, partially offset by a 36-basis point decrease in the yield of such loans in the period. The increased interest income on securities was related to a 131-basis point increase in the yield, partially offset by a decrease of $191.0 million in the average balances of such securities in the period. The increased interest income on other short-term investments was related to a $355.8 million increase in the average balances, partially offset by a 121-basis point decrease in the yield of such investments in the period. The increased interest income on one-to-four family loans was related to a $85.3 million increase in the average balances and a 21-basis point increase in the yield of such loans in the period. The decreased interest income on multifamily residential and residential mixed-use loans was related to a $210.9 million decrease in the average balance and a 10-basis point decrease in the yield of such loans in the period. The decreased interest income on non-owner-occupied commercial real estate loans reflected a $170.4 million decrease in the average balance and a 10-basis point decrease in the yield of such loans in the period. The decreased interest income on acquisition, development and construction loan income reflected a $29.7 million decrease in the average balance and a 14-basis point decrease in the yield of such loans in the period.
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Interest Expense. Interest expense was $137.1 million during the six months ended June 30, 2025, compared to $173.4 million during the six months ended June 30, 2024. During the six months ended June 30, 2025, interest expense decreased $36.3 million, primarily reflecting decreases in interest expense of $27.7 million on deposits, $10.5 million on FHLBNY advances and $1.6 million in interest expense on derivative cash collateral, partially offset by a $3.4 million increase in interest expense on subordinated debt.
The decreased interest expense on deposits was primarily due to a 101-basis point decrease in rates paid on savings accounts, a $404.9 million decrease in average balances of such deposits, $500.1 million decrease in the average balance of CDs and a 95-basis point decrease in the cost of such deposits in the period, partially offset by a 90-basis point increase in the cost of interest-bearing checking accounts and a $321.6 million increase in the average balance of such deposits in the period. The decreased interest expense on FHLBNY advances was due to a $374.2 million decrease in the average balance and a 101-basis point decrease in the cost of FHLBNY advances in the period. The decreased interest expense on derivative cash collateral was due to a $46.3 million decrease in the average balance and a 76-basis point decrease in the cost of such derivatives in the period. The increased interest expense on subordinated debt was due to a $71.2 million increase in the average balance and a 122-basis point increase in the cost of such debt in the period.
Provision for Credit Losses. We recorded a credit loss provision of $18.8 million during the six months ended June 30, 2025, compared to a credit loss provision of $10.8 million for the six months ended June 30, 2024. The $18.8 million credit loss provision for the six months ended June 30, 2025, was primarily attributable to updates in the macroeconomic forecast and to the loss driver models. The $10.8 million credit loss provision for the six months ended June 30, 2024 was primarily associated with increased provisioning for our pooled multifamily loan portfolio.
Non-Interest Income. Non-interest income was $21.2 million during the six months ended June 30, 2025, compared to $22.3 million during the six months ended June 30, 2024. The decrease is primarily driven by a $6.7 million reduction in gains on sale of Bank’s premises, partially offset by an increase of $3.2 million related to BOLI income.
Non-Interest Expense. Non-interest expense was $125.8 million during the six months ended June 30, 2025, compared to $108.2 million during the six months ended June 30, 2024. The increase in non-interest expense is primarily due to a $7.6 million increase in salaries and employee benefits and a $7.2 million increase due to the pension settlement loss recorded during the first quarter of 2025.
Non-interest expense was 1.81% and 1.59% of average assets during the six months ended June 30, 2025 and 2024, respectively.
Income Tax Expense. Income tax expense was $17.7 million during the six months ended June 30, 2025, compared to income tax expense of $14.1 million during the six months ended June 30, 2024. The reported effective tax rate for the six months ended June 30, 2025 and 2024 was 25.7%, and 28.1%, respectively.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Quantitative and qualitative disclosures about market risk were presented at December 31, 2024 in Item 7A of the Holding Company’s Annual Report on Form 10-K, filed with the SEC on February 20, 2025. The following is an update of the discussion provided therein.
General. The Company’s largest component of market risk remains interest rate risk. The Company is not subject to foreign currency exchange or commodity price risk. During the six months ended June 30, 2025, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
Interest Rate Risk Exposure Analysis
Economic Value of Equity (“EVE”) Analysis. In accordance with agency regulatory guidelines, the Company simulates the impact of interest rate volatility upon EVE using several interest rate scenarios. EVE is the difference between the present value of the expected future cash flows of the Company’s assets and liabilities and the value of any off-balance sheet items, such as derivatives, if applicable.
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Traditionally, the fair value of fixed-rate instruments fluctuates inversely with changes in interest rates. Increases in interest rates thus result in decreases in the fair value of interest-earning assets, which could adversely affect the Company’s consolidated results of operations in the event they were to be sold, or, in the case of interest-earning assets classified as available-for-sale, reduce the Company’s consolidated stockholders’ equity, if retained. The changes in the value of assets and liabilities due to fluctuations in interest rates measure the interest rate sensitivity of those assets and liabilities.
In order to measure the Company’s sensitivity to changes in interest rates, EVE is calculated under market interest rates prevailing at a given quarter-end (“Pre-Shock Scenario”), and under various other interest rate scenarios (“Rate Shock Scenarios”) representing immediate, permanent, parallel shifts in the term structure of interest rates from the actual term structure observed in the Pre-Shock Scenario, with this shift occurring equally across all points on the yield curve. An increase in the EVE is considered favorable, while a decline is considered unfavorable. The changes in EVE between the Pre-Shock Scenario and various Rate Shock Scenarios due to fluctuations in interest rates reflect the interest rate sensitivity of the Company’s assets, liabilities, and off-balance sheet items that are included in the EVE. Management reports the EVE results to the Board of Directors on a quarterly basis. The report compares the Company’s estimated Pre-Shock Scenario EVE to the estimated EVE calculated under the various Rate Shock Scenarios.
The Company’s valuation model makes various estimates regarding cash flows from principal repayments on loans and deposit decay rates at each level of interest rate change. The Company’s estimates for loan repayment levels are influenced by the recent history of prepayment activity in its loan portfolio, as well as the interest rate composition of the existing portfolio, especially in relation to the existing interest rate environment. Regarding deposit decay rates, the Company tracks and analyzes the decay rate of its deposits over time, with the assistance of a reputable third-party, and over various interest rate scenarios. Such results are utilized in determining estimates of deposit decay rates in the valuation model. The Company also generates a series of spot discount rates that are integral to the valuation of the projected monthly cash flows of its assets and liabilities. The valuation model employs discount rates that it considers representative of prevailing market rates of interest with appropriate adjustments it believes are suited to the heterogeneous characteristics of the Company’s various asset and liability portfolios. No matter the care and precision with which the estimates are derived, actual cash flows could differ significantly from the Company’s estimates resulting in significantly different EVE calculations.
The analysis that follows presents, as of June 30, 2025 and December 31, 2024, the estimated EVE at both the Pre-Shock Scenario and the -200 Basis Point, -100 Basis Point, +100 Basis Point, and +200 Basis Point Rate Shock Scenarios.
| | | | | | | | | | | | | | | | | | |
| | June 30, 2025 | | | December 31, 2024 |
| ||||||||||||
|
| | |
| Dollar |
| Percentage | | | | |
| Dollar |
| Percentage |
| ||
(Dollars in thousands) | | EVE | | Change | | Change | | | EVE | | Change | | Change |
| ||||
Rate Shock Scenarios | | |
| |||||||||||||||
+ 200 Basis Points | | $ | 1,959,621 | | $ | 162,707 | | 9.1 | % | | $ | 1,862,712 | | $ | 101,644 | | 5.8 | % |
+ 100 Basis Points | | | 1,914,186 | | | 117,272 |
| 6.5 | % | | | 1,843,160 | | | 82,092 |
| 4.7 | % |
Pre-Shock Scenario | |
| 1,796,914 | |
| — |
| — | | |
| 1,761,068 | |
| — |
| — | |
- 100 Basis Points | | | 1,630,725 | | | (166,189) | | (9.2) | % | | | 1,636,011 | | | (125,057) | | (7.1) | % |
- 200 Basis Points | | | 1,392,212 | | | (404,702) | | (22.5) | % | | | 1,439,251 | | | (321,817) | | (18.3) | % |
The Company’s Pre-Shock Scenario EVE increased marginally from $1.76 billion at December 31, 2024 to $1.80 billion at June 30, 2025. The primary factors contributing to the increase in EVE is an increase in the value of the Bank’s loan and investment portfolios, partially offset by a decline in value of the Bank’s non-maturity deposit base.
The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios increased from $1.84 billion and $1.86 billion, respectively, at December 31, 2024, to $1.91 billion and $1.96 billion, respectively, at June 30, 2025. In the -100 Basis Point Rate and -200 Basis Point Rate Shock Scenario the Company’s EVE decreased from $1.64 billion and $1.44 billion, respectively, at December 31, 2024, to $1.63 billion and $1.39 billion, respectively, at June 30, 2025.
Income Simulation Analysis. As of the end of each quarterly period, the Company also monitors the impact of interest rate changes through a net interest income simulation model. This model estimates the impact of interest rate changes on the Company’s net interest income over forward-looking periods typically not exceeding 36 months (a considerably shorter
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period than measured through the EVE analysis). Management reports the net interest income simulation results to the Company’s Board of Directors on a quarterly basis. The following table discloses the estimated changes to the Company’s net interest income in various time periods assuming gradual changes in interest rates occurring equally across all points on the yield curve over a 12-month period beginning June 30, 2025, for the given rate scenarios:
| | | | | | |
| | Percentage Change in Net Interest Income | | |||
Gradual Change in Interest rates of: | | Year-One | | | Year-Two | |
+ 200 Basis Points | | 1.7 | % | | 7.4 | % |
+ 100 Basis Points | | 0.9 | % | | 3.9 | % |
- 100 Basis Points | | 0.8 | % | | (1.3) | % |
- 200 Basis Points | | 1.0 | % | | (4.2) | % |
Management also examines the potential impact to net interest income by simulating the impact of instantaneous changes to interest rates occurring equally across all points on the yield curve. The following table discloses the estimated changes to the Company’s net interest income in various time periods associated with the given interest rate shock scenarios.
| | | | | | |
| | Percentage Change in Net Interest Income | | |||
Instantaneous Rate Shock Scenarios | | Year-One | | | Year-Two | |
+ 200 Basis Points | | 5.9 | % | | 10.7 | % |
+ 100 Basis Points | | 3.1 | % | | 5.6 | % |
- 100 Basis Points | | (0.6) | % | | (3.3) | % |
- 200 Basis Points | | (2.4) | % | | (8.7) | % |
iIte
Item 4.Controls and Procedures
Management of the Company, with the participation of its Principal Executive Officer and Principal Financial Officer, conducted an evaluation of the effectiveness, as of June 30, 2025, of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15(d)-15(e) under the Exchange Act. Based upon this evaluation, the Principal Executive Officer and Principal Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2025 in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management of the Company as appropriate to allow timely decisions regarding required disclosures.
Changes in Internal Control Over Financial Reporting
There has been no change in the Company’s internal control over financial reporting during the quarter ended June 30, 2025, that has materially affected, or is reasonably likely to materially affect, such controls.
PART II – OTHER INFORMATION
Item 1.Legal Proceedings
In the ordinary course of business, the Company is routinely named as a defendant in, or party to, various pending or threatened legal actions or proceedings. Certain of these matters may seek substantial monetary damages. In the opinion of management, the Company was not involved in any actions or proceedings that were likely to have a material adverse impact on its financial condition and results of operations as of June 30, 2025.
Item 1A. Risk Factors
For information regarding the Company’s risk factors, see Part 1, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for fiscal year ended December 31, 2024, and Part II, Item 1A “Risk Factors” in our subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission.
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Item 2.Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities
| (a) | Not applicable. |
| (b) | Not applicable. |
(c) In May 2022, we announced the adoption of a new stock repurchase program of up to 1,948,314 shares, upon the completion of our existing authorized stock repurchase program. The stock repurchase program may be suspended, terminated, or modified at any time for any reason, and has no termination date. As of June 30, 2025, there were 1,566,947 shares remaining to be purchased in the program. There were no repurchases of common stock during the quarter ended June 30, 2025.
Item 3.Defaults Upon Senior Securities
None.
Item 4.Mine Safety Disclosures
Not Applicable.
Item 5.Other Information
During the three months ended June 30, 2025,
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Item 6.Exhibits
| | |
3.1 | | Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed February 2, 2021 (File No. 001-34096)) |
3.2 | | Amended and Restated Bylaws of Dime Community Bancshares, Inc. (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K, filed October 25, 2024 (File No. 001-34096)) |
4.1 | | Indenture, dated May 6, 2022, between Dime Community Bancshares, Inc. and Wilmington Trust National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K, filed May 6, 2022 (File No. 001-34096)) |
4.2 | | First Supplemental Indenture, dated May 6, 2022, between Dime Community Bancshares, Inc. and Wilmington Trust National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K, filed May 6, 2022 (File No. 001-34096)) |
4.3 | | Second Supplemental Indenture, dated June 28, 2024, between Dime Community Bancshares, Inc. and Wilmington Trust National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K, filed June 28, 2024 (File No. 001-34096)) |
31.1 |
| Certification of Principal Executive Officer pursuant to Rule 13a-14(a) |
31.2 | | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) |
32.1 | | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350 |
101 | | The following financial statements from Dime Community Bancshares, Inc.'s Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2025, filed on August 5, 2025, formatted in XBRL: (i) Consolidated Statements of Financial Condition as of June 30, 2025 and December 31, 2024, (ii) Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024, (iii) Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024, (iv) Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2025 and 2024, (v) Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024, and (vi) the Condensed Notes to Consolidated Financial Statements. |
101.INS | | XBRL Instance Document |
101.SCH | | XBRL Taxonomy Extension Schema Document |
101.CAL | | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB | | XBRL Taxonomy Extension Labels Linkbase Document |
101.PRE | | XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF | | XBRL Taxonomy Extension Definitions Linkbase Document |
104 | Cover page to this Quarterly Report on Form 10-Q, formatted in Inline XBRL | |
| | |
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Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dime Community Bancshares, Inc.
| | | |
Dated: August 5, 2025 | By: | /s/ Stuart H. Lubow | |
| | Stuart H. Lubow | |
| | President and Chief Executive Officer | |
| | | |
| | | |
Dated: August 5, 2025 | By: | /s/ Avinash Reddy | |
| | Avinash Reddy | |
| | Senior Executive Vice President and Chief Financial Officer | |
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FAQ
What were DCOM's Q2-25 earnings per share?
How did net interest income change for DCOM?
Did Dime Community Bancshares' deposits grow?
What is the current allowance for credit losses?
How much treasury stock does DCOM hold?
What dividends were paid in the quarter?
