Dime Commercial Bancshares (DCOM) risk factors, FY2025 10-K

Dime Commercial Bancshares's FY2025 10-K, filed Feb 20, 2026, lists 26 risk factors in 6 groups. Against the prior year's 23: 3 new, 3 substantially reworded.

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Risk factors listed
266 groups
New this year
3vs 23 last year
Dropped
0since the prior 10-K
Substantially reworded
3of those kept
Section length
6k wordsItem 1A

What the changes say

  • AI/ML use adds operational, data-security, fair-lending, regulatory, talent, and third-party risks, including model errors and “digital redlining.”
  • Business loans rose to $3.24 billion, or 30.1% of loans; non-owner-occupied commercial real estate totaled $2.93 billion, or 27.3%.
  • Reputation risks now expressly include cybersecurity incidents, AI errors, and actions by third parties outside the Company’s control.

What changed since the prior 10-K

New

  • NewTechnology-Related Risks

    The potential reliance on and integration of artificial intelligence (“AI”) and machine learning (“ML”) technologies expose us to various risks, including operational, data, regulatory, and reputational risks, which could materially affect our business and financial results

    Potential AI/ML use in credit scoring, fraud detection, customer service, and investments could cause model errors, data breaches, fair-lending issues, compliance costs, and talent or vendor problems.

  • NewTechnology-Related Risks

    IP Rights – Infringement by Registrant or Its Customers

    Open-source software, trademarks, or AI-related components could trigger intellectual-property claims requiring licensing, discontinued use, or changes to the Company’s products and services.

  • NewTechnology-Related Risks

    IP Rights – Generative AI-Related Infringement by Registrant

    Generative-AI software may use unlawfully obtained or unlicensed data, while unresolved ownership rules and customer use could create additional infringement claims.

Reworded

  • 66% rewrittenStrategic Risks

    Damage to the Company’s reputation could adversely impact our business

    The risk now specifically includes cybersecurity incidents, AI-use errors, and reputational damage caused by third parties outside the Company’s control; ESG language was removed.

  • 41% rewrittenRisks Related to our Loan Portfolio

    If we experience greater credit losses than anticipated, earnings may be adversely impacted

    Business loans increased from $2.73 billion, or 25.1% of loans, to $3.24 billion, or 30.1%; non-owner-occupied commercial real estate is now separately identified at $2.93 billion, or 27.3%.

  • 32% rewrittenRisks Related to our Loan Portfolio

    The performance of our multi-family real estate loans could be adversely impacted by regulation

    The displayed language is unchanged through the provided excerpt, continuing to emphasize New York rent-control and rent-stabilization effects on multifamily loan values and cash flow.

All 26 risk factors

Headings as the filing states them, in filing order.

Risks Related to our Loan Portfolio

  1. 01The performance of our multi-family real estate loans could be adversely impacted by regulation32% rewritten
  2. 02If we experience greater credit losses than anticipated, earnings may be adversely impacted41% rewritten
  3. 03We are subject to the CRA and fair lending laws, and failure to comply with these laws could lead to material penalties
  4. 04If our regulators impose limitations on our commercial real estate lending activities, earnings could be adversely affected
  5. 05The Company is subject to environmental liability risk associated with lending activities

Risks Related to Interest Rates

  1. 06Changes in interest rates could affect our profitability

Risks Related to Regulation

  1. 07We operate in a highly regulated environment, Federal and state regulators periodically examine our business, and we may be required to remediate adverse examination findings
  2. 08We face a risk of noncompliance and enforcement action with the federal Bank Secrecy Act (the “BSA”) and other anti-money laundering and counter terrorist financing statutes and regulations

Risks Related to our Debt Securities

  1. 09The subordinated debentures that we issued have rights that are senior to those of our common shareholders

Strategic Risks

  1. 10Expansion of our branch network may adversely affect our financial results
  2. 11Mergers and acquisitions involve numerous risks and uncertainties
  3. 12Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed or the cost of that capital may be very high
  4. 13A lack of liquidity could adversely affect the Company’s financial condition and results of operations
  5. 14Our business may be adversely affected by conditions in the financial markets, the economic environment and governmental policies
  6. 15Strong competition within our market area may limit our growth and profitability
  7. 16Our future success depends on the success and growth of Dime Community Bank
  8. 17The loss of key personnel could impair our future success
  9. 18Our business may be adversely affected by fraud and other financial crimes
  10. 19Risks associated with system failures, interruptions, or breaches of security could negatively affect our operations and earnings
  11. 20Severe weather, acts of terrorism and other external events could impact our ability to conduct business
  12. 21Damage to the Company’s reputation could adversely impact our business66% rewritten
  13. 22Changes in our accounting policies or in accounting standards could materially affect how we report our financial results
  14. 23If we determine our goodwill or other intangible assets to be impaired, the Company’s financial condition and results of operations would be negatively affected

Technology-Related Risks

  1. 24The potential reliance on and integration of artificial intelligence (“AI”) and machine learning (“ML”) technologies expose us to various risks, including operational, data, regulatory, and reputational risks, which could materially affect our business and financial resultsNew
  2. 25IP Rights – Infringement by Registrant or Its CustomersNew
  3. 26IP Rights – Generative AI-Related Infringement by RegistrantNew

Other Dime Commercial Bancshares 10-Ks

  • FY2024 10-K risk factors
    23 risks

    Dime Commercial Bancshares is heavily exposed to commercial and multi-family real estate lending in Greater Long Island and Manhattan. The bank faces intense competition, interest rate sensitivity, and stringent regulatory oversight from federal and state agencies.

    Filed Feb 20, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.