Dime Community Bancshares Inc (DCOM) Reports Q3 2023 Earnings: Net Income Drops Amidst Growth ...
Net income available to common stockholders for Q3 2023 was $13.2 million, a decrease from $25.7 million in Q2 2023 and $37.7 million in Q3 2022.
Average deposits increased by $128 million on a linked quarter basis due to growth in new commercial customers.
Capital ratios continued to grow and asset quality remained stable.
Non-interest income was $7.9 million during the third quarter of 2023, a decrease from $10.4 million during the second quarter of 2023.
On October 19, 2023, Dime Community Bancshares Inc (NASDAQ:DCOM) released its earnings report for the third quarter of 2023. The report reveals a decrease in net income available to common stockholders from the previous quarters. However, the company also reported an increase in average deposits and continued growth in capital ratios.
Financial Performance
DCOM reported net income available to common stockholders of $13.2 million for Q3 2023, a decrease from $25.7 million in Q2 2023 and $37.7 million in Q3 2022. Despite this decrease, the company saw growth in new commercial customers, leading to an increase in average deposits by $128 million on a linked quarter basis.
Income Statement Highlights
Net interest income for Q3 2023 was $76.5 million, compared to $80.2 million for Q2 2023 and $100.4 million for Q3 2022. Non-interest income was $7.9 million during Q3 2023, a decrease from $10.4 million during Q2 2023. Total non-interest expense was $59.5 million during Q3 2023, an increase from $52.2 million during Q2 2023.
Balance Sheet and Cash Flow Statement Highlights
As of September 30, 2023, DCOM had total assets of $13.65 billion. Total deposits, including mortgage escrow deposits, were $10.64 billion, compared to $10.53 billion at June 30, 2023. Total Federal Home Loan Bank advances were $1.12 billion at September 30, 2023 compared to $1.45 billion at June 30, 2023.
Company's Commentary
Stuart H. Lubow, President and CEO of DCOM, commented on the results, stating,
Our third quarter results were characterized by good overall deposit growth, a stabilization in our non-interest-bearing deposit base and a continued reduction in the pace of net interest margin compression. Given our unique customer-focused platform, we continue to attract quality talent as evidenced by the addition of a senior healthcare banker in the third quarter. In light of the overall environment, we continue to manage expenses prudently and continue to fortify our balance sheet by building capital."
Looking Ahead
Despite the decrease in net income, DCOM remains optimistic about its future performance. The company's growth in new commercial customers and increase in average deposits indicate a positive trend. DCOM's focus on managing expenses and building capital also suggests a strong financial position moving forward.
This article first appeared on GuruFocus.
