From The Motley Fool · Motley Fool Transcribing · · 2m
Dime Commercial Q3 2.026 Earnings
Dime Commercial reports record revenue and targets 3.60% net interest margin by 2027.
In brief
Dime Commercial reports record revenue and targets 3.60% net interest margin by 2027. Dime Commercial achieved $135 million quarterly revenue and aims for over 3.60% net interest margin by end of 2027. Originally reported by The Motley Fool.
Record Revenue
Total revenue reached $135 million, a record quarterly performance for Dime Commercial.
Net Interest Margin Expansion
Net interest margin expanded to 3.35% for the third quarter, representing 10 consecutive quarters of growth.
Business Loan Growth
Business loans grew 30% year over year to $3,991,773,000 as the company diversifies away from multifamily lending.
Loan Pipeline Strength
Loan pipeline stands at $1.4 billion with a weighted average rate of 6.5%.
CRE Concentration Ratio
CRE concentration ratio reduced to 338%, managed below the target threshold of 350%.
Deposit Growth
Total deposits grew $1.08 billion year over year to $13.14 billion with 32.1% non-interest-bearing deposits.
Cash Position
Cash position stands at $2.2 billion, described as a competitive advantage for organic growth opportunities.
Empire State Bank Acquisition
Acquired Empire State Bank for $30 million cash component to establish presence in Staten Island.
Multifamily Portfolio Runoff
Anticipated $500 million portfolio decline as the company rotates into higher-yielding business loans.
Non-Performing Assets
Non-performing assets increased to $99.5 million from $69.0 million in previous quarter.
Share Repurchases
Repurchased 298,003 shares at weighted average price of $40.64 per share.
Q4 Expense Guidance
Guided for $66 million core cash operating expenses in fourth quarter.
Future NIM Target
Targeted net interest margin over 3.60% by end of 2027, up from previous guidance of 3.50%.
Return on Assets
Return on assets improved to 1.10% from 0.94% in previous quarter.
Efficiency Ratio
Adjusted efficiency ratio improved to 47.8% from 53.1% in prior year period.
Affordable Housing Launch
Launched dedicated affordable housing group led by Michael Camoia to diversify lending verticals.
The headline
Dime Commercial achieved $135 million quarterly revenue and aims for over 3.60% net interest margin by end of 2027.
