third quarter of 2026
Filed Oct 20, 2026Dime Commercial Bancshares, Inc. Reports 53% Year-Over-Year Increase in EPS
Third-quarter GAAP diluted EPS was $0.90 versus $0.59 in the third quarter of 2025, while net interest income, net interest margin, deposits and business loans increased. Efficiency improved, although non-performing assets increased to $99.5 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026other | $135.3M | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $121.2M | – | – |
| Net interest margin, three months ended September 30, 2026other | 3.35% | – | – |
| Net interest rate spread, three months ended September 30, 2026other | 2.41% | – | – |
| Total interest income, three months ended September 30, 2026GAAP | $183.4M | – | – |
| Total interest expense, three months ended September 30, 2026GAAP | $62.17M | – | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | $13.81M | – | – |
| Non-interest income, three months ended September 30, 2026GAAP | $14.13M | – | – |
| Adjusted non-interest income, three months ended September 30, 2026non-GAAP | $13.41M | – | – |
| Total non-interest expense, three months ended September 30, 2026GAAP | $65.50M | – | – |
| Adjusted non-interest expense, three months ended September 30, 2026non-GAAP | $64.33M | – | – |
| Efficiency ratio, three months ended September 30, 2026non-GAAP | 48.4% | – | – |
| Adjusted efficiency ratio, three months ended September 30, 2026non-GAAP | 47.8% | – | – |
| Income before taxes, three months ended September 30, 2026GAAP | $56.03M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $14.47M | – | – |
| Effective tax rate, three months ended September 30, 2026GAAP | 25.83% | – | – |
| Net income, three months ended September 30, 2026GAAP | $41.56M | – | – |
| Net income available to common stockholders, three months ended September 30, 2026GAAP | $39.74M | – | – |
| Adjusted net income available to common stockholders, three months ended September 30, 2026non-GAAP | $39.91M | – | – |
| Basic and diluted earnings per share, three months ended September 30, 2026GAAP | $0.90 | – | 53% Year-Over-Year Increase in EPS |
| Adjusted basic and diluted EPS, three months ended September 30, 2026non-GAAP | $0.91 | – | – |
| Return on average assets, three months ended September 30, 2026GAAP | 1.10% | – | – |
| Return on average equity, three months ended September 30, 2026GAAP | 10.77% | – | – |
| Loans held for investment, at September 30, 2026GAAP | $10.92B | – | – |
| Business loans, at September 30, 2026other | $3.99B | – | – |
| Loan originations excluding new lines of credit, Q3 2026other | $374.8M | – | – |
| Loan originations including new lines of credit, Q3 2026other | $745.8M | – | – |
| Total deposits including mortgage escrow deposits, at September 30, 2026other | $13.14B | – | – |
| Loan-to-deposit ratio at end of period, September 30, 2026other | 83.1% | – | – |
| Non-performing assets, at September 30, 2026other | $99.5M | – | – |
| Net loan charge-offs, three months ended September 30, 2026other | $9.75M | – | – |
| Allowance for credit losses to total loans, September 30, 2026other | 0.99% | – | – |
| Total assets, at September 30, 2026GAAP | $15.55B | – | – |
| Total stockholders' equity, at September 30, 2026GAAP | $1.52B | – | – |
| Cash and due from banks, at September 30, 2026GAAP | $2.18B | – | – |
| FHLBNY advances, at September 30, 2026GAAP | $335M | – | – |
| Subordinated debt, net, at September 30, 2026GAAP | $231.3M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- The Company repurchased 298,003 shares of its common stock, which represented 0.7% of shares outstanding at the beginning of the period, at a weighted-average price of $40.64 per share.
- Dividends per common share were $0.25 for each of the third and second quarters of 2026.
- Cash dividends paid per common share were 0.25 for the three months ended September 30, 2026, compared to 0.25 for the three months ended June 30, 2026 and 0.25 for the three months ended September 30, 2025.
What drove it
- Net interest income was $121.2 million for the third quarter of 2026, compared to $115.2 million for the second quarter of 2026 and $103.4 million for the third quarter of 2025.
- Net interest margin was 3.35% for the third quarter of 2026, compared to 3.28% for the second quarter of 2026 and 3.01% for the third quarter of 2025.
- Business loans grew $346.6 million on a linked quarter basis and $929.1 million on a year-over-year basis.
- Total deposits increased $1.08 billion on a year-over-year basis, and core deposits excluding brokered and time deposits increased $1.18 billion on a year-over-year basis.
- Average non-interest-bearing deposits to average total deposits increased to 32.1% for the third quarter.
- The efficiency ratio decreased to 48.4% for the third quarter of 2026 compared to 53.8% for the third quarter of 2025.
Concerns
- Non-performing assets were $99.5 million at September 30, 2026, compared to $69.0 million at June 30, 2026 and $72.1 million at September 30, 2025.
- Non-accrual loans held for investment were $97,317 (Dollars in thousands) at September 30, 2026, compared to $66,819 (Dollars in thousands) at June 30, 2026 and $72,054 (Dollars in thousands) at September 30, 2025.
- The credit loss provision was $13.8 million during the third quarter of 2026, compared to $13.9 million during the second quarter of 2026 and $13.3 million during the third quarter of 2025.
- Tangible common equity to tangible assets was 8.11% at September 30, 2026, compared to 8.37% at June 30, 2026.
- The Company announced its intention to acquire ES Bancshares, Inc., the parent company of Empire State Bank.
What to watch
- Management anticipates continued expansion in NIM and growth in Net Interest Income in the quarters ahead.
- Management stated that a significant loan repricing opportunity is anticipated to continue through 2027.
- Credit quality metrics, including non-performing assets and non-accrual loans held for investment.
- Deposit growth, business-loan growth and the loan-to-deposit ratio.
- The announced intended acquisition of ES Bancshares, Inc. and related execution or integration costs.
Balance sheet and cash flow
- Cash and due from banks were $2,184,800 (In thousands) at September 30, 2026, compared to $1,934,594 (In thousands) at June 30, 2026.
- Total deposits including mortgage escrow deposits were $13,138,422 (In thousands) at September 30, 2026, compared to $12,677,137 (In thousands) at June 30, 2026 and $12,841,246 (In thousands) at December 31, 2025.
- FHLBNY advances were $335,000 (In thousands) at September 30, 2026, compared to $385,000 (In thousands) at June 30, 2026 and $508,000 (In thousands) at December 31, 2025.
- Total stockholders' equity was $1,522,758 (In thousands) at September 30, 2026, compared to $1,520,456 (In thousands) at June 30, 2026.
- Book value per common share was $32.10 at September 30, 2026 compared to $31.79 at June 30, 2026.
- Tangible common book value per share was $28.49 at September 30, 2026 compared to $28.21 at June 30, 2026.
Analysis
Dime reported a stronger third quarter, with GAAP net income available to common stockholders of $39,738 (Dollars in thousands) and diluted EPS of $0.90, compared with $25,849 (Dollars in thousands) and $0.59 in the third quarter of 2025. Adjusted diluted EPS was $0.91, compared with $0.61 in the prior-year quarter. Total revenue was $135,347 (Dollars in thousands), with net interest income of $121,219 (Dollars in thousands) and non-interest income of $14,128 (Dollars in thousands).
The primary earnings driver was net interest income. Net interest margin reached 3.35%, compared with 3.28% in the linked quarter and 3.01% a year earlier. Total interest income was $183,386 (Dollars in thousands), while total interest expense was $62,167 (Dollars in thousands). The ending weighted average rate on the total loan portfolio was 5.50% at September 30, 2026, compared with 5.36% at June 30, 2026.
Balance-sheet growth was led by business lending and deposits. Business loans were $3,991,773 (Dollars in thousands) at September 30, 2026, compared with $3,645,194 (Dollars in thousands) at June 30, 2026 and $3,062,674 (Dollars in thousands) at September 30, 2025. Total deposits including mortgage escrow deposits were $13.14 billion, compared with $12.68 billion in the linked quarter and $12.06 billion a year earlier. The loan-to-deposit ratio declined to 83.1% from 84.4% in the linked quarter and 88.9% a year earlier.
Expense discipline improved the operating profile despite higher reported non-interest expense. The efficiency ratio was 48.4%, compared with 51.2% in the second quarter and 53.8% in the third quarter of 2025. Adjusted non-interest expense was $64,334 (Dollars in thousands), while adjusted efficiency was 47.8%. Return on average assets improved to 1.10%, compared with 0.94% in the preceding quarter and 0.77% a year earlier.
Credit quality warrants attention. Non-performing assets rose to $99.5 million from $69.0 million in the linked quarter, and non-accrual loans held for investment increased to $97,317 (Dollars in thousands) from $66,819 (Dollars in thousands). The Company recorded a $13,812 (Dollars in thousands) provision for credit losses. Liquidity remained substantial, with cash and due from banks of $2,184,800 (In thousands), while FHLBNY advances were reduced to $335,000 (In thousands). Management did not provide quantified financial guidance, but stated that it anticipates continued NIM expansion and net interest income growth in the quarters ahead.
Management, verbatim
Dime continues to execute on our growth plan and delivered another quarter of record revenue. Third quarter results were marked by strong growth in core deposits and business loans and continued NIM expansion.
Stuart H. Lubow, President and Chief Executive Officer
Our organic growth strategy is paying dividends as evidenced by a decline in the core efficiency ratio to below 48% for the third quarter. Growth in revenues is anticipated to continue to drive the efficiency ratio lower in the years ahead.
Stuart H. Lubow, President and Chief Executive Officer
Not in the filing
stated, not guessed- Quantified forward revenue guidance
- Quantified forward net interest income or net interest margin guidance
- Gross margin
- Operating income
- Cash flow from operations
- Free cash flow
- Previous-period outlook for comparison
- Segment revenue disclosures
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.