DCOM - Earnings call transcript Q3 2024 | Dime Community Bancshares, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Dime Community Bancshares, Inc.

Third Quarter Earnings Conference Call.

Before we begin, the company would like to remind you that discussions during this call contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. as to results and those company's to any statements, subject may factors contained filings are today's such actual in cause differ including with statements the risks, and other uncertainties that in press U.S. Such release forth the set materially from and Securities you. Commission which to Exchange refer we

be to or measures will operating performance. assess a references call, non-GAAP are this the prepared and intended made to financial isolation U.S. financial and accordance non-GAAP review financial considered measures substitute for During presented be GAAP. as as with not to supplemental in measures information These the in

would these about like conference the to Instructions] information please be go to refer your for today's over Stuart Lubow, speaker non-GAAP Please For recorded. I reconciliation CEO. Please to conference GAAP, President now measures and ahead. today's and advised turn release. [Operator earnings that today, to being is

Stuart Lubow

us our morning. you, for Didi, and thank all you call. for this joining earnings Good morning Thank quarterly

Reddy, portfolio the is momentum me CFO. on is the over our growth grew $XXX plan. deposits the quarter, core third to million. loan continued million we extremely our execute business third Joining business quarter, in and The Dime by by in $XXX our today Avi strong, and In

quarter. in implying for our to XXX through was a XXX result basis perspective, of the quarter X a reduction points, increased third margin in cost deposits point first point in things margin basis points. As XX the strong improvement of core growth basis interest a and put the deposits, of net the total basis XXXX To

continued interest points and returning mid-September, rate expansion will basis the increases has NIM his detail in plus fourth basis to Avi date provide we our Federal and by linked-quarter remarks, forward the core power. Cash by approximately improvement to and in more of NIM earnings line contribute the increased release, spread levels to the As a have we net million. expense XX a reduced Reserve since $XX.X significantly to margin. say, loans but will Dime's outlined Fed this in deposits In to X% points, XX NIM and in clear for increased quarter. noninterest between a on press funds in basis suffice summary, expectations it our

Our average $XXX is working the healthcare are on relatively expense a we continue The verticals. to strong X%. quarter pipeline into weighted new loans quarter keep business efficiency Business million very loans for expectation was originations lending market, XXXX of in the optimization levels quarter, rate number fourth in we to approximately up C&I and flat approximately see on initiatives. third a and were and our as middle in the

the end loans. of year approximately total with to expect gross $XX We billion

remain contained points. net remain Asset and quality well only continues basis to XX charge-offs solid at

ticked up XX-day linked-quarter very XX% and While flat starting XX-Q off are early-stage our XX-day down NPAs base, and expect on basis. that criticized on low classified linked-quarter basis we a a are in a to delinquencies to report assets

XX.X%, and was Our common ratio XX.X%. capital and was our our continue capital build, Tier September to XXth, equity as ratios total X

or loss in in service to that X we is our In speaks we capital loan growing and base. this As points. by mentioned before, to reserve our third approximately Dime's have basis as environment, vein, strength ability important our built quarter, customer it accreting the X%

with to and towards basis business a of last a to months, in the pipeline loans we call, earnings next mentioned XX X% course our strong and business months level model our the and over I of during expect loans, to point portfolio XX we our with C&I evolve As as X operate area. reserve healthcare

going by to Finally, forward. to story are that Dime X themes conclude key on touching like I'd

our local in The the first is disruption marketplaces. and disruption -- our

a to As for has be in growth continue our loans high, our attracting in our we at core date highly all-time been and and XXXX. deposits recruiting in market is and building are The levels you of business of Dime gatherers actively to lenders. deposit know, the And validation teams successful efforts. and disruption pipeline

Given we expect that interviewing the until suffice we bit to announcements spending model. say, XXXX. make Dime are well any close But business of year-end, to with and time to fair are culture we candidates don't a fit

topic rates. is declining The second

quarter of expansion fourth not impact cut by course starting the we driven thus with change we manifest. full NIM seen the of While This the over XX pleased have the been have trajectory far should in been the lower this point will has as the year, rates. interest basis

forward the levels that is ever the to term. historical returning than are profitability we in seen Given to curve, be more near confident

Finally, in DDA. growth

thank our as Our for the to employees their in Dime Avi. in turn through DDA the all efforts almost best XX% bank to positioning deposits, in ending this I believe conclusion, business we York. With DDA rate New that, levels of current base are and back this to call the year want of I'm to looking over dedicated value forward will strong. will shine I the now environment. In

Avinash Reddy

Stu. you, per $X.XX quarter. in was expansion a this share. Reported EPS We Thank NIM saw the meaningful

recovery income points. will basis of you recall, second NIM As of the interest quarter a included X

on $X.X second cost not basis by growth XX X in quarter the for the addition, points. The expansion the the the quarter In was income was these basis, like-for-like issuance. did largely core second Adjusting impact of around have NIM strong the NIM items a third driven quarter for for of expansion deposits. Noninterest quarter million. sub-debt was the third

a noninterest revenue in lower fee quarter second quarter. was the branch Swap nonrecurring third the recall, income gain. sale included you'll As

have till Reserve's taking Federal on customers and decisions in found that more rate being rate the swap patient with uncertainty are this time the the engage they year, cutting certainty to more Given more have we outlook. transactions

quarter, million. for in the for with quarter intangible expect with point QX was operating the rebound third expenses excluding our for XXXX being area. was a cash we core line guidance the marking $XX.X such, third item As swap revenue. Core line to million the in cash low in amortization, swap expenses $XX This

to core $XX providing For the as more between We'll fourth million million. to provision quarter, through which quarter, we during the be quarters. we're currently $XX.X this expenses color mentioned, call processes. We January this And QX hold be loss earnings XXXX. into we and Stu in higher year-end working operating steady expect prior $XX.X as than cash on loan rate run expect XXXX budgeting our our had million was

million we model, quarter. During contributed enhancements primarily quarter, the our the provision for several speeds. prepayment to group as as $X.X updating enhancements model well peer the centering third data around loss These history made CECL to approximately

enhancements loan $X been provision model million. the noted, I the would that just Excluding have loss closer to

we X% As in X a reserve in the expect term. to the Stu remarks, months points XX as evolves, to to medium next gradually reserve business the the build basis and we operate model prepared XX his months, area our mentioned expect with over to in

Next, thoughts on I'll provide some the NIM trajectory.

loans between Accounting point a on release, out, expect increased weighted rates, period has the XX quarter. improvement balance and the we beta rate termed when between core deposits in these the run on basis for the basis course, by has and analyzing basis core and spread rate outlined XX-day in X improvement the fourth sheet, largely for core of our points. the As earnings XX translate cut XX cash average this spread portfolio items approximately the XXX% fact after point deposits loans the the we to which, NIM into is borrowing that to Fed

the we else XXX balance quarter the area. subsequent X.XX% ] rational, of [ adding cut equal, rate the see could has rate fourth once and starting basis the Said point behavior quarter, could basis in through sheet. the exit rate assuming cuts for the and for ] taken NIM all entire end X XX competition differently, be fourth holds cut remains X increase that in cut each impact the subsequent Assuming [ of rate in in basis rate the rate the with loans point NIM, the NIM full every to another at deposits X.XX% impact each run already point and a flows place the point basis of cut the

rate XXXX first Given the cuts in we XXXX, in additional of expansion the well. NIM for half as potential see

'XX and fixed this back matures of that 'XX, either ], average mentioned earnings loan previous rate to sense we repricing XXXX. in the kick-in across [ call, book have in half fixed time the of at a billion a and rate have repricing To second a is back adjustable in Finally, adjustable book weighted we of our in loans significant and second our XXXX and opportunity on or reprices of frame. loan half the loan expected $X.X as portfolio portfolios you give that rate that opportunity of X.XX% and

a Even we point reset point see loans rates. assuming X-year the to forward only loans a XXX on these substantial XX those spread in increase basis treasury, higher basis over NIM as should

of progresses. With that, doubt Didi, take NIM NIM questions. NIM The as a we'll point Assuming will pathway XXXX. those as summary, see loans basis spread put X-year increase to over this and these to time XX in than call treasury, in a could parts a enhanced happy X.XX% together, XXX I'll NIM book we see repricing. In increase forward be the the and earnings XXXX basis to we we point no the impact in our greater power back your back from on all a a X% turn

Operator

[Operator our question of first Raymond James. And Instructions] Moss Steve from comes

Stephen Moss

good deposit those continue all the showed how there? but incremental could wanted year really you about I you -- see you're just to remix on on the trends growth maybe you color gave I any core up and just to the upcoming Curious deposits. into appreciate margin side. you as here expansion, going color the and thinking the start on on guys the give for to quarter

Avinash Reddy

we off, up years sure, Look, Steve. over very after. made start I the X.X deposits. chip excited last Stu the deposit the to Yes, of They're we around side. I'll are hires in on and will billion think $X.X with

Around and So this basis. is XX% a the We bank. XX% that look opening private DDA. to at activity account on of in is biweekly commercial the

see traction a over there. We to lot continue of

at months. X going at this here teams the XXXX a you teams for that year set there, have teams X years a to If of The been year take brought state. teams at years X from first to we those point. each reach this steady of than on the been probably It's to bank less the barely look have

position. for on going weekly significant new new literally predict growth So we sheet a deposits balance first we've them the think where they're to But basis. I kind FHLB step on with so a over to -- hard paying of say It's remix what's far that's what will little the tried come the on runway time. deposit a bringing do off is bit accounts, really was basis happen. in quarterly to the we've there's to

So any Everything billion we We point. of this X% had $X.X to have is of at brought X% broker around out. overnight FHLB X% had FHLB. termed point. don't to We deposits. around down balance We in sheet this that our at overnight anymore

been far, a it's So, of a so bit shift. mix

think as some in balance I probably time. the over expansion see you'll continues, growth overall deposit sheet

deposits a we other say customer sheet. markets is XXX% have large more That that, time base is absent brokered little But minus. balance on core the a DDA. our thing or million and There's obviously I'd a plus probably has around don't money on the side. It's $XXX The beta. amount bit of

significantly, on wait pass them more So time our have side, to on complexion deposits money side. able money obviously, because of rate the decreases those we reprice to market on to the is base market the until and we're don't

was for So good this quarter I a deposits. think in, all

in hires working years I think the deposit we'll to we said, pipeline had. Stu for we're loan years next focused what a on side. And with and good of the year ahead as continue have both on

create over where think to to environment base here I So we continue deposit like grow an time, have. the like we we'd

Stuart Lubow

still relationships all until the a they accounts don't bank seeing fourth relationship as quarter. entire a I accounts new at Yes. coming a terms get business in get new I typically, simply of of first as lot accounts the we to and fourth mean, from But flows of it to on. bank and think quarter we're environment because for this But moving the positive to -- year-end. is point. funds in of slower going We're transitioning their little are in the customers quarter moving terms get pieces operating the just getting of

Avinash Reddy

basically. business more just $X.X base. point Yes. deposits And a on if Steve, just look up billion are the the basis, at to our composition I highlight one year-to-date deposit it mean, on we of

the we side, deposit started still stable, at start year, the now. it around stayed $X.X deposits. start we billion billion year, $X.X $X.X some the around $X billion quarter, seeing year we relationship now. side, higher, cost. were a see were to went business we consumer consumer We're core had So the to that this pretty to at a used for of right municipal the that billion as that trends stabilize. And The coming higher rates the of on that At outflows of in example, the small deposits municipal on starting had especially in exit side, some

the New And so that's bank side think and of to that's that's very we're focus, our and where time. on over in be I business and best business -- is growing the happy the margin, it, the think goal with I York,

Stephen Moss

just with color appreciate then $X.X second back billion half margin there. all XXXX? book, the just that's the clarification, staying of through mentioned you one really I from Okay. Great. 'XX the And Avi, subject. the

Avinash Reddy

Yes.

that's So XX-month window, that Steve.

we the out to on last tried in layers we way is So this lay did our call. like

between really, construct the and points, to So high-level X rate we've a points are the baked basis XX of given given next basis now forward curve every to X tried June your for basis of in, cuts and give points. year,

that, to we're in existing portfolio. Now, a addition rate higher the at originating obviously loans than

just and an those that middle the repricing give that loans that higher. rate should half cuts, once just to months, over little between XX are say, there's the a we wanted next the year, fact too let's you fixed then. given bit opportunity So of now rate there's help guidance additional that just stop But

Stuart Lubow

$XXX of And then approximately at has on million, really to have And those pipeline we $X Yes. are is All X.X%. about million. the expect C&I focused pipeline, these back loans -- that $XXX getting CRE owner-occupied in of which closing October. origination rate of it's And those approximately in in those and end $XXX $XXX -- weighted some rates substantial date, process, I I million the the healthcare going billion, average a the we of are we But approximately million to quarter. to to mean, through in accrue by billion expect of be X.XX% to originations $XX with this far the range. a type the over be year. weighted are our we've average areas had will as the going so said, benefit

Stephen Moss

here, color was then what nonaccrual That's around in really Okay. Great. just status. And And if or loans curious as small on helpful the you color. loan it the know some well. could credit -- terms AD&C uptick, but give of just a just on business that were I placed

Avinash Reddy

No really like mean, starting base sure. I a off you worries, said, here. Steve. low Yes, we're

franchise loan, additional you the part line that on End I East of End. credit. the provisioning on C&I so really side, And a East had expect any don't on something the legacy as bridge of is

to the on be X partners November. loan this seems unfortunately loan there's XXth, actually, maturity September that side, paying dispute that on side a a in CRE the and was was through the CRE but actually On between

we that was personal So well loan. previously believe move loan it on It NPA. We it. dispute, have secured we're given on identified believe a to guarantee was prudent a into criticized it, the

charge-offs anything a So pretty overall of and classified out prepared flat in trends the really And XX-day overall. it's here, really down remarks, Net small items seeing have in to XX-day XX%. is not pointed portfolio. not couple stable, like in criticized any we actually the bucket, seeing remained the

pretty of So items steady, a small couple overall, here.

Stuart Lubow

multifamily no portfolio. issues continue in And to have the we

Stephen Moss

on Right. the portfolio. of just And multifamily maybe kind

book that the of curious pace just if the we through reprices I'm maybe sure I'm runoff next go paydowns months good as kind But accelerates here multifamily. months? think Just chunk -- assuming you of to and back XX of a good a XX

Stuart Lubow

Yes.

also of reductions the you'll with point, going that toward rate latter maturities obviously, repricing you see after activity our I at you're pickup, the and the a mean, not in more will see maturities going it's acceleration prepayments. to together. think which any in terms term, of XXXX that near in think probably or And you'll in see to that repricing, will work not some that and the real several I to cuts, rate but part I only be with really regard. funds portfolio Fed see -- dovetail an start having

Stephen Moss

I Excellent. really back outlook appreciate Okay. step the the I'll Well, color good queue. all the and here, so into

Operator

Our of next Navas Davidson. question comes from Manuel D.A.

Manuel Navas

certain year by the level? a just Did say quick One the growth I clarification. I -- at that just loan you think of missed I number. end

Avinash Reddy

yes. Yes,

to approximately Stu said, be was total So loans. what billion gross $XX in expect Manuel,

billion I quarter, [ we think $XX.XXX this or billion. were ] So $XX.XXX

assume of between in growth QX and loan probably I net million So another $XXX QX.

Manuel Navas

kind mean, you sentiment it headed next seems early levels? into cuts how driving of by and borrower year? borrower I loan impacted borrower strong. -- like do is the year, next know feel too sentiment current rate should How sentiment growth of kind you're be budget Like how but pipeline? at is I it's to

Stuart Lubow

Yes. type point, the I really this because CRE and of we're mean focusing interest. at healthcare, is the a activity of owner-occupied and which bit C&I, on, lending particularly and seeing we're of quite

think -- do So the along. helps environment and that I rate that

very pipeline at. flow deals we're a So a new that we and looking of constant have strong

lot being But more conservative we picky we're I think and as always than ago. somewhat X activity was, say, course, there's Of are. there a months

Manuel Navas

next and that. of of year? XXX on quarters? next I to over year-end that Shifting about kind the there Are quarters process to get should provision that you the over to level halfway Just maybe by or I there going end point that. X basis X the by the think XX basis get thoughts getting point of of behind to expense thought appreciate to How pace reserves.

Avinash Reddy

remarks, XX to to right, months down over his I the it's road. goal X the think next Manuel, months, years prepared Stu the see X Yes, said in hard

we're So X% just over pretty Look, numbers, I this basis basis build basically XX a basis $X we're to the going I'm mean, to that months, mean, Again, level round the be quarter, expect to point and million of if between to we around quarter. X area. stays math next point round $XX charge-offs means X XX I using to X here. months points provision, constant, assuming a million per in the million. on use $X

right we're So points basis now. at XX

probably the end X with for said, think of this current to we So that natural and as reserve in said you Stu to solely have We're pretty was group in predict. But model, peer speeds update as business within around kind to expectation. X data overall evolve it's kind It's a the quarters reiterate, prepayment credit market the I to up provision of there. hard and $X.X as I remarks, time, quarters, over just a our to to like the I'd quality. prepared in million progression do -- model increase of was Dime's didn't loss quarter, the tied anything really history that's tied

ahead probably see we'll I forward. reasonable what but bring, that's the going quarters a expectation So think

Stuart Lubow

budgets quarter, obviously loans, this loss in a as as our midst -- terms toward terms natural as we the the the of the working provision and get skewed well. of occur, growth said, Yes. the And loan with as business of in We're going looking so last at side. skewed to there's said progression that's I origination on scenarios origination into with in this I loan quarter our last

Manuel Navas

helpful. That's really

Operator

from comes Fitzgibbon next Mark Piper of Sandler. Our question

Mark Fitzgibbon

partnership against to was or clarify, $XX on there's no anything a increase in Just specific reserve nonperformers, that it. million that dispute,

that you'll situation hole come You once feel of out the resolves? like partnership

Avinash Reddy

correct. Mark. Correct, Yes,

Mark Fitzgibbon

CRE -- capital secondly, then of nicely. kind down to is it's And come Great. risk-based Okay. the ratio

XXX% ] take I that? Do mind now. think in for And does there? get target a you're [ you how you to long have it at

Avinash Reddy

Mark. Yes,

as think us. rates you and CRE payoff and we picking a is -- could X% running now start change not what see we've said, up on side minus. a to portfolio, up. happening to as the I we're say I mean, right the It's especially more have the X% Stu like cuts, picked right? just operating as XXXs So we'd speed. natural next the payoffs So in what's of get more months, that the multifamily the business rate But XX yet, few with ], a on is be the there low of going gradually. evolution [ ahead low target said plus I'd XXXs course We're put in of to is we consistently loans. or over

number did have the below We debt which of us obviously bond We a issuance June, helped sub plan. get in that XXX%. optically

probably over I'd months, say marker good is XXXs XX So us. for low a

Mark Fitzgibbon

to then guess some how expense is still hiring continue and And comments Great. it teams couple I people. it of to be like -- you're opportunity realistic I there's going the sounds hire if initiatives, you're areas flat Okay. I of people. but looking some in heard you're to wonder the able that interviewing offset of about And hold to you for What the that? costs quarters next where are your

Avinash Reddy

Yes.

next really Mark, you time. moving QX, the nobody to we're of So in close pretty said, is as couple because bonus quarters,

it's more Xst February paid bring So because to get somebody, people on at thing point this March. like an in really and April

guess, rate. put couple directly this to the operations in management in mean, the added brought people press the in quarters, year, release, loaded tried we run side, everything with the I on side. of obviously, this our to answer I like is to we fully teams So and next treasury our here we

teams, all fully add do will of an in quick. right now. for very numbers substantial there's teams it, say I'd and the we'll So a that's to amount year if the there themselves next pay opportunity

it with So assuming right flat we the what keeping consistent have. year next the stays is guidance now team for

bank. to areas think, we've savings across always very but at I we efficient, look, been for continue look the

-- Stu when now. -- our said, we budget we're right as finishing when process think I

for over and we've the expenses at base hire and think expense if far, I we And flat look need modeling XXXX. to the that next have details to X that for year, teams themselves QX, But But area team would hired to relatively what million that. for teams get purposes, is on I we'll so to assume NIM then keep flat off with additional $XX the we initiatives. Obviously, additional keep over exact that, come going basically is $XX more they've paid when that's million months. more into within add probably savings current expansion. into within So the our here, assuming goal we

So will I the cherry get that year. be a think if point on top we that next to

Mark Fitzgibbon

Okay. guess And was Stu, how would your partners? are I curious, thinking interested on acquisitions, you doing looking about then acquisitions? are if in I doing -- potential And things you in potentially you be what for kinds of

Stuart Lubow

the to significant. without last I doing mean, Look, to $X.X that venture kind degree, deposits. relationships we've institution, are our got an institutions for in And franchise shareholders. acquisition, and franchise is for growth, looked -- particularly always of and at an Look, say in we I have very could new of deposits not and value the lot would a some acquisition did been that year the on core that growing that there they conservative for make say really new it's opportunities billion right, sense

there. of we look, board. So not growth, not But bit in of focusing quite to potential new last of footprint. or organic had lot more on looking. certainly, after candidates runway on to success brought there's year's And still this are be really We our -- think teams particularly a we're year's open there's we're within success a the terms there

Mark Fitzgibbon

of one? sort a not are priority acquisitions So

Avinash Reddy

footprint, I the what base. out limited candidates of stars is Mark, that banks There's that everybody's meet that's very sense. at a there if No. need align. you having point for view. known the of all amount look our very mean, great front -- and Obviously, to and there's that is think, probably of Dime center few Obviously, deposit a I makes

we're have I our disrupted. think interviewing bigger been banks the on time spending So from people that

couple know, our there's merger market back. another a you of months in As

acquisition bank So this of a go opportunity. to talent at mean, things to significant the happen. for that right point I opportunity the lot full is that's have just and

really [ say on I'd focus the former is So ]. our

Stuart Lubow

Yes. we're to to and I value. suffice looking shareholder known you and a time, guys mean, long say, for us have Mark, always maximize

to right it's if we're the deal out for it, there, an So there's explore us. to certainly but opportunity be going got

Operator

next of Our question from Stephens comes Matthew Inc. Breese

Matthew Breese

next and loan Avi NIM the bit very a little was percentage just Prime? around loans are you expectations could of off betas, of the us outlook. what could you I outlook, remind of appreciate year? floating Stu, behind SOFR pure call I And then hoping talk it, about on and rate fit priced the deposit much kind NIM or betas over into

Avinash Reddy

Matt, Okay, chip I'll in. and Stu off will sure. Sure, start

So sheet, I balance weighted from you of rates, that. the and of start give extrapolate with side we'll deposit some the mean, so I'll average kind can Matt, you

the deposits XXth, So cost June ]. our XX, September spot X.XX% total deposits X.XX% at of spot cost [ of was At total was [ ].

cut happened XXth. And so this the on quarter was a because Fed September little weird

[ X.XX% of quarter ]. cost for this was the deposits So

only June X the way looked XX it number. So to afterwards. the at XXth like let's look days before is we below day the Fed it points X cut basis it's But at

significant the XX deposit decline minus basis the side, from on So that's been side. a deposit points, on plus or probably basically around

cost of X.XX% deposits the today, ]. to[ here sit we closer if is So

if point, started this that's it, think at basis think I XX X.XX%. a we at So you X.XX% about rate We're XX at points basically cut. basis for point

You're everybody. talking high to higher we've a interest-bearing pass XX% that total noninterest-bearing we of tried the obviously, basis get XX% Now piece whole obviously points right? have deposit XX because through proportion to beta. The is to of about a deposits,

back us here the there. rate have You're and come make customers going and change some to

to experience a least at more XX XX% way the total be the we're a like deposit going So I got think around think been first down road. we to has we time But bit little it have to where comment beta. on days seems of

On minus. side, come or XX the rates have basis to down plus the XX loan basis around points, loan points

points area more think XX% putting get it's X to the sheet. we're said, on closer So static Stu the is, basis side loans, on around to you I loan to that's assuming loan XX% should a and quarter. balance X side, points per as on difference the basis as loan The

to that, we're But at to million see we is on points pure to any X I'd XX% this every have what from basis basis XX% benefit $XXX Assuming on offset say originations going seeing. around deposit points you should quarter, point X is of XX% of probably and which the side side loan reprice. the

Matthew Breese

that I what the is And floating loans off all pure percentage just Prime? priced of appreciate that. then SOFR, rate are

Avinash Reddy

was is minus, but around Yes, plus I number around includes we million. layer hedge that portfolio sure. that believe XX%, that have or a $XXX

then to layer So excluding the closer hedge, probably probably And XX%. to XX%. it's with portfolio it's XX% the layer hedge, portfolio

So XX% probably in number. is reasonable all a

Matthew Breese

the Yes. deposits, it. you it, the kind the where just XX% achieving higher-priced money tell comment to and within on market, on new you've business then of I that, of me. assume you success some of call most perhaps it's customers, savings had the would areas betas? deposit And could some but Got XX%

Stuart Lubow

I gotten work rate And we our put really buckets customers their went the mean, cut either. down. deal at cut high-rate go and vast all everything few we level a And way I through and would full spent the a of Yes. to time and anticipation of in majority. good really into were to on very this we point the say really pushback haven't with exceptions, huge able of the

to certainly numbers. accrued in our that So move -- very and market municipal quickly. And high-rate benefit, we business really you able and customers were to customers that's the money obviously but the see and savings the

Avinash Reddy

Yes.

unique One, I'd but use than our balance base, I that's the some things lot different time slightly out, don't on maybe of Matt, to we customer point X banks. word the So a deposits don't have other sheet. --

reprice going time obviously, the is brokered. XXX%. we the deposits stuff And some brokered that do have are to of And

other way beta The which a we the on is billion $X portfolio, up. was piece municipal have XXX%

kind the So going beta conditioned of we've on XXX% down, that to the the way it's down. to them be fact way on

deposit is I the other because the a we coming focused. think circling earlier groups deposits no highest that customers going I it's existing But where DDA have the just to think I'm in, growing rate. are that on the Steve's paying new want we're have deposits not to money we the of new source where say hired. cases rate really I is, it's to, and back some we've have, benefit that growth, market that There and focused we highest have opportunity look, with some and with question think, we

sizable And a that deposits said, and we us. you pay to So was high amount we quarter with had municipal had a an rate look, deposit. back a the this relationship third in example It rate. of can't them went is we

what reduced they portfolio NIM their meant there. size so that with expansion us, the overall And but is of

portfolio the that's sense very think So down, us should to but at that enough in lower there's you stuff I rate in aggressive way a there's reprice give also helping the a down. coming that on be

Matthew Breese

bucket? at how just Very next And national shared growth the portfolio, provide syndicated C&I it, of one, could looking call C&I from type coming fits is if the credits much within or then credit a it. And or appreciate into, you shared syndicated my much, any, how credits? national much

Stuart Lubow

SNCs. point, we have don't any At this

that in been not have really marketplace. we So

Avinash Reddy

Yes. Everything everything... -- Matt,

Stuart Lubow

Actually, I'll Matt. back, take that

million in $XX it's one, this arena. have sports We

Avinash Reddy

Yes.

mean, and club other banks us space. the manage exposures on way in lot a with typically, reasonable there's within deals relationship. level. especially middle we originate A there's is to So our and the We C&I market stuff, keep a try of them Matt, I times, side, the

market buying C&I there participations are side. the C&I but anybody sometimes on on banks from multiple So the we're involved middle side, not

Operator

of O'Connell, question from Our comes next Keefe, Christopher Bruyette, & Woods. CFA

Christopher O'Connell

to what kind to commentary of point to XX months will in months, drivers So drive just I internal the was to kind the model back in hoping moving X increase? between to that the XXX of actual basis and circle are like logistically just up point the that level, now basis reserve the XX next

Avinash Reddy

is updated or the for history model It mean, model. CECL data complicated quarter, drivers prepayment speeds. a fairly particular group our loss X model. this the we -- just no there's peer X in. updated being as I example, candid, right? So Chris, within coming data was the I'm We

as loans, the is shift that's so more to is overall points of healthcare tweaks a loans, And going had points in have assuming something What the think as the can that, X of equal right? our charge-off been greater loan percentage do you're I in it what -- to that going we I as forward more have basis going quarters drive million right? to between portfolio, becomes and hard loans, make portfolio it's which X else tried [ C&I a the rest basis we it's reserving the of right? So Given in pinpoint upfront on is if to to model at, level of we've than reserving the something higher on shift out one look has the all of going the item points and And $X C&I we're specific It's basis a we the items. portfolio, to have model. levels level reserving levels, and of combination the right? side we given couple mix. last the and basis see ], XX the points to X

good model. what's qualitative think to we're the factors, in a involved. I it's mean, you I fairly there's general, going trying road. of So down sense complicated factors just a quantitative But give on

Christopher O'Connell

-- cutting high way, or guess, it model a of level that's what guess basis new the at at above an it that basis I XX end of loan is like a to that? as different that bit or being the above average I a this is it business are whole, reserved basis a points at, the XXX on points under kind up

Avinash Reddy

basis XXX ] C&I Yes. XXX around I mean, in reserving points somewhere general, or and we're points [ loans probably of minus. basis on plus between

So overall above reserve. the it is

reserve The level, overall yes. short it's So right, is yes. answer you're the above

Christopher O'Connell

just dynamics schedule current portfolio? duration the maturity And on either color then the the for the going the or CD what's -- margin any forward, on

Avinash Reddy

Yes.

The CD brokered short portfolio, bucket. reprice Chris, there. months, the the brokered I right? about really basically that's on CD term. CDs CD the is buckets, way X And pretty over bucket, X it, bucket is first think distinct every really the So the That's

of term. So beta XXX% that's short kind

talked over generally spread months. basis because X that XX about, not benefit is that improvement brokered the of does of brokered the points I that the Now include the

going non-brokered have then at a we're year, of X.XX%. million And So if a $XXX of to here right? In next around of have million around deposits, that rate September, have we XXst, we at benefit terms we X%. around around rate brokered in $XXX December probably did QX by

really So And the $XXX million. of next in the over for million $XXX several year, around this then it's course quarter. it's you total, for if add up next quarters,

$XXX So per it's probably million quarter for next year.

lag, to Now the needs CDs, obviously, with mature. a CD there's

Sometimes beta you're on passing full to not CD. the downward the

You XX attrition you some basis XX drop then then probably there's going -- and to rates need around deposits. new CD there raise around points, basis points, to probably and rates

a That think I to the more an from CDs of much going probably with lag. the the a X-month said, and is are CDs from savings immediate being is money and So -- pretty to NIM The brokered going are benefit longer-term play. markets come coming be side. thing

Christopher O'Connell

just end update sounds then, and mean, they've I And Great. into it been the good the as as into like pipelines year kind growth loan on the the of here appreciate are of going QX.

growth, year, of guys on up then the loan as loosely, are half loan that you in net into I that to to you guess, will think ramp the half second start second is start And up in maturities about how thinking of year As getting how you as multifamily growth? the kind the of kind of net next 'XX? ramps are that year, be the the

Avinash Reddy

I them and our to we X% stuff. going X.XX% choose guidance, XXXX decide with hate that But So them to going the which say on I to in most right? earnings may CRE it's holistically, choose retain Yes. pieces right? So or for to budgeting think Look, in we're some if the what at typically think that, with go, just at we're the I to of we we January place. I let I of get give trying call that. putting or through starts may always we know depend example, it you're on rate because loans multifamily do side to payoff and are think X%, of to some

to at XX% we've we'd like like of down XX% that be that the I percentage multifamily that and is XX%, So over XX%. XX%. time balance optimal constructing to to right? tried to the between between think come in we're Right on terms what say sheet, now, we'd and side,

we're so I that's rate think it, on you've kind that least the side, far seems quarters, to for at down. the like growth last $XXX million million is, it loan of every the couple call quarter, $XXX business headed of seen of between what run

a the CRE bit year. next maybe away, those at would more balance you time. then that of sheet choose a I the in So Chris, then go we a think portfolio higher side, if to multifamily see retain and of it's do remix in loans the more growth If point

year, second we to low this had of the think I double-digit half growth. guided

deposit overall teams into could an year, new significant in on, as I could as the so both as be teams we think change and I being this assumption loan said, sheet on That for an that's for reasonable balance come have next point at there. hire think right? get the next time. opportunity that Because the pipeline year side, and there guidance to a we

Christopher O'Connell

one last for then And me. Great.

coming of originally either than those worse generating as been interest-bearing or terms deposits guys mix far new the deposits, and you on kind good, of as of as better that have in the deposits been the Just teams has expected? DDA

Avinash Reddy

Yes.

I we're I in XX% think mix. between right Like It's overall, probably line. and XX% said, exactly DDA now. a

when relatively teams, all the be a hired think we modeling for when was within initially the teams, payback did we period. all I a short to goal profitable our year keep the

So over. had DDA we moving obviously start percentage hard it's of we had assumptions on that groups with. and focused various a And the that higher DDA to on

the positively in as months, that as basically we've deposits in been all I as the total I come And X Now, by profitable surprised the said, within have so we're think far. mix well teams.

it see estimate has going component should XX% money just because reasonable significant I a for them on customers and think longer there top like the that. of markets, to XX% So is the to production of be a for a from component DDA to chasing term, we over DDA type not to forward medium we're

Stuart Lubow

funds. a you to looked And environment remember, excess to got Yes. where at other rate put opportunities done relatively we've people high in have this

to well. a environment And rate to I as the for good as going that's I also changes, DDA. increasing in think be place a we're think positive that

Operator

the back remarks. closing turn this to This like it Lubow I'd for Stuart question-and-answer concludes time, session. At to

Stuart Lubow

today. forward joining speaking Thank us all continued to we support, you, Didi, to to for and dedicated you you in employees look and January. Thank our and for our you shareholders thank your

Operator

This concludes and participating, you call. now for conference Thank disconnect. today's you may

Dime Community Bancshares (DCOM) 22 Oct 242024 Q3 Earnings call transcript