Dime Community Bancshares Q4 2024: Unpacking Contradictions in Deposit and Loan Strategies

Strong Deposit and Loan Growth:
- Dime Community Bancshares reported $1.8 billion in core deposits, with approximately 40% in noninterest-bearing deposits, driven by the hiring of former Signature Bank deposit gathering teams.
- The growth in deposits was accompanied by loan growth, with business loans up over $70 million in the fourth quarter and $400 million for the full year, driven by the C&I and healthcare verticals.

Net Interest Margin Expansion:
- The net interest margin increased to 2.79% in the fourth quarter, with an expectation to return to a 3% margin or higher in the future.
- This expansion was due to significant back book repricing, timely adjustments in deposit rates, and strategic repositioning of securities and BOLI portfolios.

Capital Strength and Expansion:
- The company raised approximately $136 million from a common equity offering, leading to a common equity Tier 1 ratio in excess of 11% and a total capital ratio of more than 15.5%.
- This capital raise was used to reposition portfolios and support organic growth, marking a significant strategic move to improve capital ratios.

CRA Rating and Community Commitment:
- Dime received an outstanding CRA rating, with perfect scores in the lending, investment, and service tests, marking the second consecutive outstanding rating.
- This achievement reflects the company's commitment to supporting community development and demonstrating strong corporate social responsibility.