Dime Commercial Extends Net Interest Margin Expansion

The Tip Desk · October 27, 2026 · 3 min read

Net interest income reached $121.2 million and the margin widened to 3.35% as business loans and core deposits kept growing.

Dime Commercial Bancshares, Inc. (DCOM), the holding company for Dime Commercial Bank, a New York State-chartered trust company with about $15 billion in assets, reported net interest income of $121.2 million for the three months ended September 30, 2026, up from $115.2 million in the second quarter. The net interest margin expanded to 3.35% from 3.28%, a second consecutive quarter of widening after a 7-basis-point lift in the prior period.

NIM expansion and growth in net interest income drove record quarterly revenue of $135 million, the company said. Net income available to common stockholders was $39.7 million, or $0.90 a share, versus $33.0 million, or $0.75 a share, in the June quarter. Return on average assets rose to 1.10% from 0.94%.

Business loans, which include commercial and industrial credit and owner-occupied commercial real estate, increased $346.6 million on a linked-quarter basis to $3.99 billion, faster than the $280.8 million of linked-quarter growth in the second quarter. Year-over-year business-loan growth was $929.1 million. Total loans held for investment rose to $10.92 billion from $10.70 billion at June 30. The ending weighted average loan rate was 5.50%, up 14 bps from 5.36%.

Multifamily residential and residential mixed-use loans declined to $2.95 billion from $3.11 billion. Non-owner-occupied commercial real estate edged down to $2.75 billion from $2.77 billion. Acquisition, development, and construction fell to $88.6 million from $90.5 million. The company said it had proactively managed the consolidated CRE concentration ratio lower to 338%.

Period-end total deposits increased to $13.14 billion from $12.68 billion at June 30, a $1.08 billion year-over-year increase versus $937.0 million of year-over-year growth in the prior quarter. Core deposits, excluding brokered and time deposits, rose $1.18 billion year-over-year. Average non-interest-bearing deposits as a share of average total deposits increased to 32.1% from 31.0%. Cash and due from banks rose to $2.18 billion from $1.93 billion. FHLBNY advances were lowered to $335.0 million from $385.0 million.

Non-interest income was $14.1 million. Excluding fair-value changes in equity securities and loans held for sale and gains or losses on sales, non-interest income was $13.4 million. Total non-interest expense was $65.5 million. The efficiency ratio decreased to 48.4% from 51.2% in the linked quarter; the adjusted efficiency ratio fell to 47.8% from 49.9%.

Non-performing assets increased to $99.5 million from $69.0 million, reversing the prior quarter’s 28% linked-quarter decline. The credit-loss provision was $13.8 million, compared with $13.9 million in the second quarter. The allowance for credit losses was $108.5 million at September 30.

The company repurchased 298,003 shares at a weighted-average $40.64, executing the buyback it had announced it expected to begin in the third quarter. The dividend remained $0.25 a share. Stockholders’ equity was $1.52 billion. Book value per common share was $32.10.

President and Chief Executive Officer Stuart H. Lubow said the company anticipates continued expansion in NIM and growth in net interest income in the quarters ahead, citing a significant loan repricing opportunity it anticipates will continue through 2027. The company also announced its intention to acquire ES Bancshares, Inc., parent of Empire State Bank.