Regional bank Dime Community Bancshares (NASDAQ:DCOM) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 25.5% year on year to $109.5 million. Its non-GAAP profit of $0.64 per share was 2.6% above analysts’ consensus estimates.
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Dime Community Bancshares (DCOM) Q2 CY2025 Highlights:
- Net Interest Income: $98.1 million vs analyst estimates of $96.71 million (29.9% year-on-year growth, 1.4% beat)
- Net Interest Margin: 3% vs analyst estimates of 2.9% (57 basis point year-on-year increase, 4.7 bps beat)
- Revenue: $109.5 million vs analyst estimates of $107 million (25.5% year-on-year growth, 2.4% beat)
- Efficiency Ratio: 55% vs analyst estimates of 55.5% (0.5 percentage point beat)
- Adjusted EPS: $0.64 vs analyst estimates of $0.62 (2.6% beat)
- Market Capitalization: $1.25 billion
Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “As we continue to execute on our growth plan, we were pleased with the solid growth in core deposits, business loans, net interest margin and capital ratios.
Company Overview
With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ:DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.
Over the last five years, Dime Community Bancshares grew its revenue at an exceptional 14.8% compounded annual growth rate. Its growth beat the average bank company and shows its offerings resonate with customers.
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Dime Community Bancshares’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.5% over the last two years. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Dime Community Bancshares reported robust year-on-year revenue growth of 25.5%, and its $109.5 million of revenue topped Wall Street estimates by 2.4%.
Net interest income made up 93.9% of the company’s total revenue during the last five years, meaning Dime Community Bancshares lives and dies by its lending activities because non-interest income barely moves the needle.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Dime Community Bancshares’s TBVPS grew at a sluggish 2.1% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 5.1% annually over the last two years from $23.82 to $26.32 per share.
Over the next 12 months, Consensus estimates call for Dime Community Bancshares’s TBVPS to grow by 7.9% to $28.40, decent growth rate.
Key Takeaways from Dime Community Bancshares’s Q2 Results
It was encouraging to see Dime Community Bancshares beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. On the other hand, its EPS was in line. Overall, this print had some key positives. The stock remained flat at $28.53 immediately following the results.
Is Dime Community Bancshares an attractive investment opportunity at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.