Net Interest Margin Expansion Drives Record Quarterly Revenue of $126 million;
Strong Year-Over-Year Core Deposit and Business Loan Growth
Announces Plans to Resume Share Buybacks
HAUPPAUGE, N.Y., July 23, 2026 (GLOBE NEWSWIRE) -- Dime Commercial Bancshares, Inc. (NYSE: DCOM) (the “Company” or “Dime”), the parent company of Dime Commercial Bank (the “Bank”), today reported net income available to common stockholders of $33.0 million for the quarter ended June 30, 2026, or $0.75 per diluted common share, compared to net income available to common stockholders of $32.8 million, or $0.75 per diluted common share, for the quarter ended March 31, 2026 and net income available to common stockholders of $27.9 million for the quarter ended June 30, 2025, or $0.64 per diluted common share.
Adjusted net income available to common stockholders (non-GAAP) was $34.7 million and adjusted diluted EPS (non-GAAP) was $0.79 per share for the quarter ended June 30, 2026, compared to $0.74 per share for the quarter ended March 31, 2026 and $0.64 for the quarter ended June 30, 2025 (see "Non-GAAP Reconciliation" tables at the end of this news release).
Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Dime continues to execute on our growth plan and delivered record quarterly revenue. Second quarter results were marked by strong growth in business loans as our commercial banking teams are converting their robust pipelines. Recognizing the progress we have made in creating a high-quality balance sheet, Kroll Bond Rating Agency recently issued a “Positive” ratings outlook for Dime. Finally, and in recognition of our evolution into a commercial and private banking powerhouse, we recently completed our re-brand to “Dime Commercial Bank”.”
Capital Return: Mr. Lubow, stated, “In light of our strong capital position, lower CRE concentration levels, stress testing results, and improving profitability, we are pleased to announce that we expect to begin repurchasing our shares in the third quarter.”
Highlights for the Second Quarter of 2026 included:
- Adjusted diluted EPS of $0.79 per share for the second quarter of 2026, compared to $0.64 per share for the second quarter of 2025;
- Total deposits increased $937.0 million on a year-over-year basis;
- Core deposits (excluding brokered and time deposits) increased $948.3 million on a year-over-year basis;
- Average non-interest-bearing deposits to average total deposits for the second quarter increased to 31.0%;
- Business loans grew $280.8 million on a linked quarter basis and $743.0 million on a year-over-year basis;
- The net interest margin increased to 3.28% for the second quarter of 2026 compared to 3.21% for the prior quarter;
- The efficiency ratio decreased to 51.2% for the second quarter of 2026 compared to 55.0% for second quarter of 2025;
- The adjusted efficiency ratio decreased to 49.9% for the second quarter of 2026 compared to 54.7% for the second quarter of 2025;
- The Company’s Tier 1 Common Equity Ratio increased to 11.99% at the end of the second quarter;
- The Company’s Consolidated CRE Concentration ratio was proactively managed lower to 352%; and
- Non-performing assets declined by 28% on a linked quarter basis and represented 0.46% of Total Assets.
Management’s Discussion of Quarterly Operating Results
Net Interest Income
Net interest income for the second quarter of 2026 was $115.2 million compared to $112.3 million for the first quarter of 2026 and $98.1 million for the second quarter of 2025. The Net Interest Margin for the second quarter of 2026 was 3.28% compared to 3.21% for the first quarter of 2026 and 2.98% for the second quarter of 2025.
Mr. Lubow commented, “We continue to have a significant loan repricing opportunity that we anticipate will continue through 2027. Additionally, growth in core deposits and business loans will benefit us over time as we continue to grow our customer base. Our substantial liquidity position, which includes $1.9 billion of cash, provides us with the flexibility to take advantage of lending opportunities as they arise. Dime’s asset liability management profile, which is underpinned by our cash position and a growing floating rate loan portfolio, positions us well for a variety of interest rate scenarios.”
Loan Portfolio
The ending weighted average rate (“WAR”) on the total loan portfolio was 5.36% at June 30, 2026, an 8-basis point increase compared to the ending WAR of 5.28% on the total loan portfolio at March 31, 2026.
Outlined below are loan balances and WARs for the quarter ended as indicated.
June 30, 2026 March 31, 2026 June 30, 2025 (Dollars in thousands) Balance WAR(1) Balance WAR(1) Balance WAR(1) Loans held for investment balances at period end: Business loans(2) $3,645,194 6.32%$3,364,435 6.28%$2,902,170 6.65%One-to-four family residential and coop/condo apartment 1,075,904 5.04 1,047,920 4.97 998,677 4.85 Multifamily residential and residential mixed-use(3)(4) 3,113,647 4.48 3,249,582 4.47 3,693,481 4.48 Non-owner-occupied commercial real estate 2,770,751 5.14 2,840,817 5.05 3,128,453 5.12 Acquisition, development, and construction 90,476 7.10 100,574 7.41 141,755 8.28 Other loans 8,401 11.81 9,597 11.53 6,336 11.08 Loans held for investment $10,704,373 5.36%$10,612,925 5.28%$10,870,872 5.33%(1)WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.(2)Business loans include commercial and industrial loans, and owner-occupied commercial real estate loans. At June 30, 2025, business loans included balances related to Paycheck Protection Program (“PPP”) loans; no PPP loans were outstanding at June 30, 2026 or March 31, 2026.(3)Includes loans underlying multifamily cooperatives.(4)While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.
Outlined below are the loan originations for the quarter ended as indicated.
(Dollars in millions) Q2 2026 Q1 2026 Q2 2025Originations Excluding New Lines of Credit $255.3 $220.4 $227.3Originations Including New Lines of Credit 533.4 500.1 450.5Deposits and Borrowed Funds
Period end total deposits (including mortgage escrow deposits) at June 30, 2026 were $12.68 billion, compared to $12.60 billion at March 31, 2026 and $11.74 billion at June 30, 2025.
Brokered deposits were $200.0 million at June 30, 2026, compared to $215.0 million at March 31, 2026 and $200.0 million at June 30, 2025. Total Federal Home Loan Bank advances were $385.0 million at June 30, 2026, compared to $435.0 million at March 31, 2026 and $508.0 million at June 30, 2025.
Non-Interest Income
Non-interest income was $11.3 million during the second quarter of 2026, $11.3 million during the first quarter of 2026, and $11.6 million during the second quarter of 2025. Excluding the fair value change in equity securities and loans held for sale, and loss (gain) on sale of securities, loans and other assets, non-interest income was $13.2 million during the second quarter of 2026, $11.7 million during the first quarter of 2026 and $11.4 million during the second quarter of 2025.
Non-Interest Expense
Total non-interest expense was $64.7 million during the second quarter of 2026, $62.8 million during the first quarter of 2026, and $60.3 million during the second quarter of 2025. Excluding the impact of the net loss (gain) on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $64.1 million during the second quarter of 2026, $63.4 million during the first quarter of 2026, and $59.9 million during the second quarter of 2025 (see “Non-GAAP Reconciliation” tables at the end of this news release).
The ratio of non-interest expense to average assets was 1.74% during the second quarter of 2026, compared to 1.68% during the linked quarter and 1.72% during the second quarter of 2025. Excluding the impact of the net loss (gain) on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.72% during the second quarter of 2026, 1.69% during the first quarter of 2026, and 1.71% during the second quarter of 2025 (see “Non-GAAP Reconciliation” tables at the end of this news release).
The efficiency ratio was 51.2% during the second quarter of 2026, compared to 50.8% during the linked quarter and 55.0% during the second quarter of 2025. Excluding the impact of loss (gain) on sale of securities, loans and other assets, fair value change in equity securities and loans held for sale, severance expense, net loss (gain) on extinguishment of debt, and amortization of other intangible assets, the adjusted efficiency ratio was 49.9% during the second quarter of 2026, compared to 51.2% during the linked quarter and 54.7% during the second quarter of 2025 (see “Non-GAAP Reconciliation” tables at the end of this news release).
Mr. Lubow commented, “Our organic growth strategy is paying dividends as evidenced by a decline in the core efficiency ratio to below 50% for the second quarter. Growth in revenues is anticipated to continue to drive the efficiency ratio lower in the years ahead.”
Income Tax Expense
Income tax expense was $13.1 million during the second quarter of 2026, $13.9 million during the first quarter of 2026, and $10.5 million during the second quarter of 2025. The effective tax rate for the second quarter of 2026 was 27.3%, compared to 28.7% for the first quarter of 2026 and 26.1% for the second quarter of 2025.
Credit Quality
Non-performing assets were $69.0 million at June 30, 2026, compared to $95.6 million at March 31, 2026 and $53.2 million at June 30, 2025.
A credit loss provision of $13.9 million was recorded during the second quarter of 2026, compared to $12.3 million during the first quarter of 2026, and $9.2 million during the second quarter of 2025.
Capital Management
Stockholders’ equity increased $23.5 million to $1.52 billion at June 30, 2026, compared to $1.50 billion at March 31, 2026.
The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of June 30, 2026. All risk-based regulatory capital ratios increased during the second quarter of 2026.
Dividends per common share were $0.25 during the second quarter of 2026 and the first quarter of 2026, respectively.
Book value per common share was $31.79 at June 30, 2026 compared to $31.33 at March 31, 2026.
Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $28.21 at June 30, 2026 compared to $27.73 at March 31, 2026 (see “Non-GAAP Reconciliation” tables at the end of this news release).
Earnings Call Information
The Company will conduct a conference call at 8:30 a.m. (ET) on Thursday, July 23, 2026, during which CEO Lubow will discuss the Company’s second quarter 2026 financial performance, with a question-and-answer session to follow.
Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/kjwp3pui. To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BI0e414999c97e4bf0bc9fe67d53be989f. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.
A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/kjwp3pui.
ABOUT DIME COMMERCIAL BANCSHARES, INC.
Dime Commercial Bancshares, Inc. is the holding company for Dime Commercial Bank, a New York State-chartered trust company with approximately $15 billion in assets and the number one deposit market share on Greater Long Island (1).
This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as “annualized," “anticipate," "believe," “continue,” "could," "estimate," "expect," "intend," “likely,” "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Any forward-looking statements presented herein are made only as of the date of this release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, except as may be required by law.
Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in government monetary or fiscal policies and actions may adversely affect our customers, cost of credit and overall result of operations; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, tariffs, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Contact: Avinash Reddy Senior Executive Vice President – Chief Operating Officer and Chief Financial Officer 718-782-6200 extension 5909UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands) June 30, March 31, December 31, 2026 2026 2025 Assets: Cash and due from banks $1,934,594 $2,059,618 $2,353,966 Securities available-for-sale, at fair value 895,251 838,219 797,935 Securities held-to-maturity 706,606 647,842 618,901 Loans held for sale 1,862 38,225 1,989 Loans held for investment, net: Business loans(1) 3,645,194 3,364,435 3,240,600 One-to-four family residential and coop/condo apartment 1,075,904 1,047,920 1,035,983 Multifamily residential and residential mixed-use(2)(3) 3,113,647 3,249,582 3,424,565 Non-owner-occupied commercial real estate 2,770,751 2,840,817 2,933,287 Acquisition, development and construction 90,476 100,574 117,215 Other loans 8,401 9,597 6,558 Allowance for credit losses (104,963) (100,673) (97,372)Total loans held for investment, net 10,599,410 10,512,252 10,660,836 Premises and fixed assets, net 30,570 30,580 31,255 Restricted stock 61,167 63,659 67,197 BOLI 417,459 404,657 401,163 Goodwill 155,797 155,797 155,797 Other intangible assets 2,534 2,729 2,938 Operating lease assets 36,830 39,551 42,876 Derivative assets 70,545 70,811 76,315 Accrued interest receivable 56,282 57,690 55,572 Other assets 74,046 77,873 74,891 Total assets $15,042,953 $14,999,503 $15,341,631 Liabilities: Non-interest-bearing checking (excluding mortgage escrow deposits) $3,946,965 $3,777,787 $3,915,081 Interest-bearing checking 1,140,667 1,066,620 1,178,281 Savings (excluding mortgage escrow deposits) 1,621,056 1,701,899 1,777,143 Money market 4,853,645 4,874,544 4,806,572 Certificates of deposit 1,068,824 1,089,893 1,117,118 Deposits (excluding mortgage escrow deposits) 12,631,157 12,510,743 12,794,195 Non-interest-bearing mortgage escrow deposits 45,980 88,267 47,051 Interest-bearing mortgage escrow deposits — — — Total mortgage escrow deposits 45,980 88,267 47,051 Total deposits (including mortgage escrow deposits) 12,677,137 12,599,010 12,841,246 FHLBNY advances 385,000 435,000 508,000 Subordinated debt, net 231,186 231,058 272,503 Derivative cash collateral 61,790 57,630 52,400 Operating lease liabilities 39,626 42,431 45,729 Derivative liabilities 69,631 69,305 73,573 Other liabilities 58,127 68,099 72,411 Total liabilities 13,522,497 13,502,533 13,865,862 Stockholders' equity: Preferred stock, Series A 116,569 116,569 116,569 Common stock 462 462 462 Additional paid-in capital 622,636 622,415 623,041 Retained earnings 898,089 876,133 854,167 Accumulated other comprehensive loss ("AOCI"), net of deferred taxes (31,573) (33,019) (31,468)Unearned equity awards (17,590) (15,803) (8,661)Treasury stock, at cost (68,137) (69,787) (78,341)Total stockholders' equity 1,520,456 1,496,970 1,475,769 Total liabilities and stockholders' equity $15,042,953 $14,999,503 $15,341,631
(1)Business loans include commercial and industrial loans, and owner-occupied commercial real estate loans.(2)Includes loans underlying multifamily cooperatives.(3)While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except share and per share amounts) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025Interest income: Loans $143,892 $142,090 $145,448 $285,982 $288,153Securities 14,518 12,788 11,353 27,306 22,676Other short-term investments 16,840 18,522 10,749 35,362 18,586Total interest income 175,250 173,400 167,550 348,650 329,415Interest expense: Deposits and escrow 52,171 52,364 60,181 104,535 118,255Borrowed funds 7,351 8,300 8,354 15,651 16,735Derivative cash collateral 542 485 918 1,027 2,115Total interest expense 60,064 61,149 69,453 121,213 137,105Net interest income 115,186 112,251 98,097 227,437 192,310Provision for credit losses 13,875 12,313 9,221 26,188 18,847Net interest income after provision 101,311 99,938 88,876 201,249 173,463Non-interest income: Service charges and other fees 6,483 5,730 4,642 12,213 9,285Title fees 187 142 118 329 216Loan level derivative income 535 472 942 1,007 1,003BOLI income 5,038 4,558 4,186 9,596 8,179Gain on sale of Small Business Administration ("SBA") loans 196 — 387 196 469Gain on sale of residential loans 49 72 50 121 82Fair value change in equity securities and loans held for sale 38 (38) 83 — 101Gain on securities — — 149 — 149Loss on sale of loans and other assets (2,000) (320) — (2,320) —Other 740 730 1,038 1,470 1,744Total non-interest income 11,266 11,346 11,595 22,612 21,228Non-interest expense: Salaries and employee benefits 39,781 39,593 36,218 79,374 71,869Severance 454 102 136 556 212Occupancy and equipment 7,899 8,209 7,729 16,108 15,731Data processing costs 5,151 5,423 4,903 10,574 9,697Marketing 1,951 2,025 1,756 3,976 3,422Professional services 2,325 1,909 2,097 4,234 4,213Federal deposit insurance premiums 1,712 1,266 1,692 2,978 3,739Net loss (gain) on extinguishment of debt 2 (974) — (972) —Loss due to pension settlement — — — — 7,231Amortization of other intangible assets 195 209 235 404 487Other 5,231 4,994 5,533 10,225 9,209Total non-interest expense 64,701 62,756 60,299 127,457 125,810Income before taxes 47,876 48,528 40,172 96,404 68,881Income tax expense 13,062 13,946 10,475 27,008 17,726Net income 34,814 34,582 29,697 69,396 51,155Preferred stock dividends 1,821 1,822 1,821 3,643 3,643Net income available to common stockholders $32,993 $32,760 $27,876 $65,753 $47,512
UNAUDITED COMMON SHARE DATA
(Dollars in thousands except per share amounts) Three Months Ended Six Months EndedGAAP June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025Net income available to common stockholders $32,993 $32,760 $27,876 $65,753 $47,512 Less: Dividends paid and earnings allocated to participating securities (687) (593) (516) (1,280) (830)Income attributable to common stock - Basic and Diluted $32,306 $32,167 $27,360 64,473 46,682 Weighted-average common shares outstanding 43,218,619 43,109,118 43,030,023 43,164,171 42,989,581 Basic and diluted earnings per share ("EPS")(1) $0.75 $0.75 $0.64 $1.49 $1.09 Non-GAAP Adjusted net income available to common stockholders(2) $34,663 $32,405 $27,863 $67,068 $52,551 Less: Dividends paid and earnings allocated to participating securities (722) (586) (516) (1,308) (910)Adjusted income attributable to common stock - Basic and Diluted $33,941 $31,819 $27,347 $65,760 $51,641 Weighted-average common shares outstanding 43,218,619 43,109,118 43,030,023 43,164,171 42,989,581 Adjusted basic and diluted EPS(3) $0.79 $0.74 $0.64 $1.52 $1.20
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share amounts) At or For the Three Months Ended At or For the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Per Share Data: Reported EPS (Diluted) $0.75 $0.75 $0.64 $1.49 $1.09 Cash dividends paid per common share 0.25 0.25 0.25 0.50 0.50 Book value per common share 31.79 31.33 29.95 31.79 29.95 Tangible common book value per share(1) 28.21 27.73 26.32 28.21 26.32 Common shares outstanding 44,158 44,057 43,889 44,158 43,889 Dividend payout ratio 33.33% 33.33% 39.06% 33.56% 45.87% Performance Ratios (Based upon Reported Net Income): Return on average assets 0.94% 0.92% 0.85% 0.93% 0.74%Return on average equity 9.15 9.20 8.28 9.17 7.16 Return on average tangible common equity(1) 10.62 10.72 9.68 10.67 8.30 Net interest margin 3.28 3.21 2.98 3.24 2.96 Non-interest expense to average assets 1.74 1.68 1.72 1.71 1.81 Efficiency ratio 51.2 50.8 55.0 51.0 58.9 Effective tax rate 27.28 28.74 26.08 28.02 25.73 Balance Sheet Data: Average assets $14,862,346 $14,981,498 $14,013,592 $14,921,593 $13,896,281 Average interest-earning assets 14,086,464 14,202,286 13,195,116 14,144,055 13,079,859 Average tangible common equity(1) 1,247,394 1,228,003 1,158,738 1,237,751 1,152,361 Loan-to-deposit ratio at end of period(2) 84.4% 84.2% 92.6% 84.4% 92.6% Capital Ratios and Reserves - Consolidated: Tangible common equity to tangible assets(1) (3) 8.37% 8.23% 8.22% Tangible equity to tangible assets(1) (3) 9.15 9.02 9.05 Tier 1 common equity ratio(3) 11.99 11.87 11.25 Tier 1 risk-based capital ratio(3) 13.09 12.97 12.34 Total risk-based capital ratio(3) 16.30 16.17 15.84 Tier 1 leverage ratio(3) 9.46 9.24 9.43 Consolidated CRE concentration ratio(3)(4) 352 371 425 Allowance for credit losses/ Total loans 0.98 0.95 0.86 Allowance for credit losses/ Non-performing loans held for investment 157.09 176.20 175.12
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars in thousands) Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Average Average Average Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Interest-earning assets: Business loans $3,489,614 $56,520 6.50%$3,274,659 $52,406 6.49%$2,798,899 $46,593 6.68%One-to-four family residential and coop/condo apartment 1,064,043 12,588 4.75 1,041,802 12,383 4.82 981,138 11,532 4.71 Multifamily residential and residential mixed-use 3,195,372 35,930 4.51 3,363,792 37,698 4.55 3,740,939 42,462 4.55 Non-owner-occupied commercial real estate 2,815,624 37,117 5.29 2,910,973 37,497 5.22 3,175,062 41,822 5.28 Acquisition, development, and construction 90,738 1,711 7.56 106,808 2,079 7.89 136,154 3,009 8.86 Other loans 8,580 26 1.22 8,329 27 1.31 7,135 30 1.69 Total loans 10,663,971 143,892 5.41 10,706,363 142,090 5.38 10,839,327 145,448 5.38 Securities 1,582,300 14,518 3.68 1,451,425 12,788 3.57 1,361,383 11,353 3.34 Other short-term investments 1,840,193 16,840 3.67 2,044,498 18,522 3.67 994,406 10,749 4.34 Total interest-earning assets 14,086,464 175,250 4.99% 14,202,286 173,400 4.95% 13,195,116 167,550 5.09%Non-interest-earning assets 775,882 779,212 818,476 Total assets $14,862,346 $14,981,498 $14,013,592 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Interest-bearing checking(1) $1,040,981 $4,058 1.56%$1,133,722 $4,793 1.71%$943,716 $4,141 1.76%Money market 4,796,008 30,049 2.51 4,761,610 28,801 2.45 4,174,694 32,818 3.15 Savings(1) 1,684,130 9,826 2.34 1,742,334 10,042 2.34 1,925,224 14,048 2.93 Certificates of deposit 1,075,789 8,238 3.07 1,105,241 8,728 3.20 1,075,729 9,174 3.42 Total interest-bearing deposits 8,596,908 52,171 2.43 8,742,907 52,364 2.43 8,119,363 60,181 2.97 FHLBNY advances 418,517 3,541 3.39 479,534 3,850 3.26 508,000 4,053 3.20 Subordinated debt, net 231,102 3,810 6.61 271,596 4,449 6.64 272,385 4,301 6.33 Other short-term borrowings — — — 122 1 3.32 — — — Total borrowings 649,619 7,351 4.54 751,252 8,300 4.48 780,385 8,354 4.29 Derivative cash collateral 62,134 542 3.50 52,708 485 3.73 79,188 918 4.65 Total interest-bearing liabilities 9,308,661 60,064 2.59% 9,546,867 61,149 2.60% 8,978,936 69,453 3.10%Non-interest-bearing checking(1) 3,864,575 3,747,722 3,412,215 Other non-interest-bearing liabilities 166,688 183,678 187,774 Total liabilities 13,339,924 13,478,267 12,578,925 Stockholders' equity 1,522,422 1,503,231 1,434,667 Total liabilities and stockholders' equity $14,862,346 $14,981,498 $14,013,592 Net interest income $115,186 $112,251 $98,097 Net interest rate spread 2.40% 2.35% 1.99%Net interest margin 3.28% 3.21% 2.98%Deposits (including non-interest-bearing checking accounts)(1) $12,461,483 $52,171 1.68%$12,490,629 $52,364 1.70%$11,531,578 $60,181 2.09%
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
(Dollars in thousands) At or For the Three Months Ended June 30, March 31, June 30,Asset Quality Detail 2026 2026 2025 Non-performing loans held for investment ("NPLs") Business loans $23,898 $24,257 $18,007 One-to-four family residential and coop/condo apartment 4,465 4,088 1,642 Multifamily residential and residential mixed-use 26,893 — — Non-owner-occupied commercial real estate 11,151 28,368 32,908 Acquisition, development, and construction 412 412 657 Other loans — 11 — Non-accrual loans held for investment $66,819 $57,136 $53,214 Non-accrual loans held for investment / Total loans held for investment 0.62% 0.54% 0.49% Non-accrual loans held for sale $1,750 $38,000 $— Total non-accrual loans $68,569 $95,136 $53,214 Total non-accrual loans/ Total loans 0.64% 0.89% 0.49% Total non-performing assets ("NPAs")(1) $69,019 $95,586 $53,214 Total loans 90 days delinquent and accruing ("90+ Delinquent") $— $— $— NPAs and 90+ Delinquent $69,019 $95,586 $53,214 NPAs and 90+ Delinquent / Total assets 0.46% 0.64% 0.37% Net loan charge-offs ("NCOs") $9,662 $8,574 $5,405 NCOs / Average loans(2) 0.36% 0.32% 0.20%
DIME COMMERCIAL BANCSHARES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION
(Dollars in thousands except per share amounts)
The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.
The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, loss (gain) on sale of securities, loans and other assets, severance, net loss (gain) on extinguishment of debt and loss due to pension settlement.
Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders Reported net income available to common stockholders $32,993 $32,760 $27,876 $65,753 $47,512 Adjustments to net income(1): Fair value change in equity securities and loans held for sale (38) 38 (83) — (101) Loss (gain) on sale of securities, loans and other assets 2,000 320 (72) 2,320 (72) Severance 454 102 136 556 212 Net loss (gain) on extinguishment of debt 2 (974) — (972) — Loss due to pension settlement — — — — 7,231 Income tax effect of adjustments noted above(1) (748) 159 6 (589) (2,231) Adjusted net income available to common stockholders (non-GAAP) $34,663 $32,405 $27,863 $67,068 $52,551 Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above) Adjusted EPS (Diluted) $0.79 $0.74 $0.64 $1.52 $1.20 Adjusted return on average assets 0.98 % 0.91 % 0.85 % 0.95 % 0.81 %Adjusted return on average equity 9.59 9.11 8.28 9.35 7.87 Adjusted return on average tangible common equity 11.16 10.60 9.67 10.88 9.18 Adjusted non-interest expense to average assets 1.72 1.69 1.71 1.71 1.70 Adjusted efficiency ratio 49.9 51.2 54.7 50.5 55.2(1)Adjustments to net income are taxed at the Company's approximate statutory tax rate.
The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):
Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Operating expense as a % of average assets - as reported 1.74 % 1.68 % 1.72 % 1.71 % 1.81 %Severance (0.01) — — (0.01) — Net loss (gain) on extinguishment of debt — 0.02 — 0.01 — Loss due to pension settlement — — — — (0.10) Amortization of other intangible assets (0.01) (0.01) (0.01) — (0.01) Adjusted operating expense as a % of average assets (non-GAAP) 1.72 % 1.69 % 1.71 % 1.71 % 1.70 %The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):
Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Efficiency ratio - as reported (non-GAAP)(1) 51.2 % 50.8 % 55.0 % 51.0 % 58.9 %Non-interest expense - as reported $64,701 $62,756 $60,299 $127,457 $125,810 Severance (454) (102) (136) (556) (212) Net (loss) gain on extinguishment of debt (2) 974 — 972 — Loss due to pension settlement — — — — (7,231) Amortization of other intangible assets (195) (209) (235) (404) (487) Adjusted non-interest expense (non-GAAP) $64,050 $63,419 $59,928 $127,469 $117,880 Net interest income - as reported $115,186 $112,251 $98,097 $227,437 $192,310 Non-interest income - as reported $11,266 $11,346 $11,595 $22,612 $21,228 Fair value change in equity securities and loans held for sale (38) 38 (83) — (101) Loss (gain) on sale of securities, loans and other assets 2,000 320 (72) 2,320 (72) Adjusted non-interest income (non-GAAP) $13,228 $11,704 $11,440 $24,932 $21,055 Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $128,414 $123,955 $109,537 $252,369 $213,365 Adjusted efficiency ratio (non-GAAP)(2) 49.9 % 51.2 % 54.7 % 50.5 % 55.2 %The following table presents a reconciliation of pre-tax pre provision net revenue (non-GAAP) and adjusted pre-tax pre-provision net revenue (non-GAAP):
Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025Financial Data: Net interest income $115,186 $112,251 $98,097 $227,437 $192,310Non-interest income 11,266 11,346 11,595 22,612 21,228Total revenue 126,452 123,597 109,692 250,049 213,538Non-interest expense 64,701 62,756 60,299 127,457 125,810Pre-tax pre-provision net revenue (non-GAAP)(1) $61,751 $60,841 $49,393 $122,592 $87,728Adjusted pre-tax pre-provision net revenue (non-GAAP)(2) $64,364 $60,536 $49,609 $124,900 $95,485(1)The reported pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding GAAP net interest income and GAAP non-interest income less GAAP non-interest expense.(2)The adjusted pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding GAAP net interest income and the adjusted non-interest income less the adjusted non-interest expense as shown in the reconciliation of efficiency ratio table above.
The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):
June 30, March 31, June 30, 2026 2026 2025 Reconciliation of Tangible Assets: Total assets $15,042,953 $14,999,503 $14,207,935 Goodwill (155,797) (155,797) (155,797) Other intangible assets (2,534) (2,729) (3,409) Tangible assets (non-GAAP) $14,884,622 $14,840,977 $14,048,729 Reconciliation of Tangible Common Equity - Consolidated: Total stockholders' equity $1,520,456 $1,496,970 $1,431,006 Goodwill (155,797) (155,797) (155,797) Other intangible assets (2,534) (2,729) (3,409) Tangible equity (non-GAAP) 1,362,125 1,338,444 1,271,800 Preferred stock, net (116,569) (116,569) (116,569) Tangible common equity (non-GAAP) $1,245,556 $1,221,875 $1,155,231 Common shares outstanding 44,158 44,057 43,889 Tangible common equity to tangible assets (non-GAAP) 8.37 % 8.23 % 8.22 %Tangible equity to tangible assets (non-GAAP) 9.15 9.02 9.05 Book value per common share $31.79 $31.33 $29.95 Tangible common book value per share (non-GAAP) 28.21 27.73 26.32