How did DCOM's Q4 earnings surprise impact its annual performance?

Dime Community Bancshares, Inc. (DCOM) experienced a significant decline in net income in the fourth quarter (Q4), resulting in a negative impact on its annual performance. 1. **Q4 Performance**: DCOM reported a net loss of $22.23 million in Q4, which is a stark contrast to the net income of $14.49 million recorded in the same quarter the previous year. The primary reason for this decline was the loss on sale of securities, amounting to $42.81 million. 2. **Annual Performance Impact**: - Despite the Q4 setback, DCOM's annual net profit for 2024 was $96.1 million, compared to $131.4 million in 2023. This indicates a decline in annual profitability. - The bank's revenue for 2024 was reported at $352.8 million, which is lower than the 2023 figure of $381.6 million. - Earnings per share (EPS) for 2024 was $2.29, compared to $2.87 in 2023. This suggests a decrease in profitability per share of stock. 3. **Analyst Expectations and Market Reaction**: - Analysts had expected earnings of $0.45 per share for Q4, but DCOM reported earnings of $0.37 per share, resulting in an earnings surprise of -18.75%. - The stock's performance and analyst sentiment are mixed, with recent reports of a new 52-week high and a consensus target price of $29.50, indicating potential confidence in the bank's long-term prospects. In conclusion, while DCOM's Q4 performance was severely impacted, leading to a decline in annual earnings, the bank's full-year figures still show a profitable year, albeit with a decrease in both net income and EPS. The mixed analyst sentiment reflects the complex outlook for DCOM, with recent positive developments potentially pointing to a recovery or stabilization in the near term.