Regional bank Dime Community Bancshares (NASDAQ: DCOM) announced better-than-expected revenue in Q3 CY2025, with sales up 32% year on year to $115.6 million. Its non-GAAP profit of $0.61 per share was 11.6% below analysts’ consensus estimates.
Is now the time to buy Dime Community Bancshares? Find out by accessing our full research report, it’s free for active Edge members.
Dime Community Bancshares (DCOM) Q3 CY2025 Highlights:
- Net Interest Income: $103.4 million vs analyst estimates of $101.7 million (29.4% year-on-year growth, 1.6% beat)
- Net Interest Margin: 3% vs analyst estimates of 3% (in line)
- Revenue: $115.6 million vs analyst estimates of $112.9 million (32% year-on-year growth, 2.4% beat)
- Efficiency Ratio: 53.8% vs analyst estimates of 54.2% (37.5 basis point beat)
- Adjusted EPS: $0.61 vs analyst expectations of $0.69 (11.6% miss)
- Tangible Book Value per Share: $26.81 vs analyst estimates of $26.77 (6.3% year-on-year growth, in line)
- Market Capitalization: $1.30 billion
Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Third quarter results were marked by strong growth in core deposits and business loans, good progress in diversifying our balance sheet, and continued net interest margin expansion.
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
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Over the last five years, Dime Community Bancshares grew its revenue at an incredible 15.2% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers.
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 shows its demand has slowed significantly as its annualized revenue growth of 1.4% over the last two years was well below its five-year trend. 
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 wonderful year-on-year revenue growth of 32%, and its $115.6 million of revenue exceeded Wall Street’s 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)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
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. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Dime Community Bancshares’s TBVPS grew at a sluggish 1.9% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 6% annually over the last two years from $23.87 to $26.81 per share.
Over the next 12 months, Consensus estimates call for Dime Community Bancshares’s TBVPS to grow by 8.9% to $29.20, decent growth rate.
Key Takeaways from Dime Community Bancshares’s Q3 Results
It was encouraging to see Dime Community Bancshares beat analysts’ revenue expectations this quarter. We were also happy its net interest income outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, this quarter could have been better. The stock remained flat at $29.58 immediately after reporting.
Big picture, is Dime Community Bancshares a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
