# Dime Commercial Bancshares: AI strategy

Source: https://www.bankingnewsai.com/banks/dime
Last updated: Oct 5, 2026

*A Long Island bank remaking itself as a commercial lender, whose one disclosed AI deployment is in compliance: Quantifind's AI for sanctions screening of payments.*

## How is Dime Bank using AI?

Dime Commercial Bancshares, the Hauppauge, New York parent of Dime Commercial Bank (about $15.0 billion in lead-bank assets at June 30, 2026; Dime Community Bank until its rebrand on June 2, 2026), has disclosed one AI deployment: in June 2025 it selected Quantifind's AI-powered risk intelligence platform to strengthen sanctions screening for payments, which CTO Michael Fegan called 'a significant advancement in our compliance capabilities'. Its 2025 10-K, filed on February 20, 2026, has a dedicated AI and machine-learning risk factor covering hallucinations and flawed decisions, data security, fair-lending and 'digital redlining' exposure, dependence on third-party AI vendors and reputational harm, and says the bank uses some open-source software that may include generative AI. Beyond that, Dime's public story in 2026 is a strategic pivot rather than technology: the name change from Community to Commercial bank, roughly 75% of deposits now commercial, and a first branch outside New York in Lakewood, New Jersey. It has not named an AI platform for staff, an AI budget or an AI executive.

*Thin public record: One named AI deployment (Quantifind for payments sanctions screening, 2025) and a detailed 10-K AI risk factor; no AI platform, budget, AI leader or AI remarks in 2026 earnings-call coverage.*

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | Dime Commercial Bank (Dime Community Bank until June 2, 2026) |
| Ticker | DCOM |
| Headquarters | Hauppauge, NY |
| Consolidated assets | $15,034 million (Jun 30, 2026) |
| Federal Reserve rank | 113 |
| Charter | New York State-chartered trust company; Federal Reserve member bank |

## Key points

- Named AI deployment: Quantifind's AI risk-intelligence platform for payments sanctions screening, selected after a competitive evaluation (June 2025).
- 10-K (February 2026): a full AI/ML risk factor (hallucinations, data security, 'digital redlining', third-party AI vendor dependence) and an admission that some open-source software it uses may include generative AI.
- Rebrand: Dime Community Bank became Dime Commercial Bank on June 2, 2026; the CEO says about 75% of deposits and 60% of loans are commercial.
- Expansion: first branch outside New York, in Lakewood, New Jersey (June 2026), plus a New Jersey C&I team and an equipment and franchise finance specialty.
- No staff AI assistant, AI budget, agent count or AI leader disclosed.

## Timeline

- Aug 12, 2026 — **New Jersey push** A first Garden State branch in Lakewood and plans for Bergen, Hudson and Essex counties; equipment and franchise finance added as a specialty. ([American Banker](https://www.americanbanker.com/news/new-jersey-is-latest-frontier-in-n-y-banks-reinvention))
- Jul 23, 2026 — **Q2 2026 call: rebrand completed** Over 70% of deposits are commercial or municipal and about 60% of loans are business and commercial real estate. ([Moby via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/dime-community-bancshares-inc-q2-123000450.html))
- Mar 23, 2026 — **Rebrand to Dime Commercial Bank announced for June 2** Customers' agreements stay in effect; the name changes on statements and documents. ([Dime Community Bank](https://www.dime.com/rebrand))
- Feb 20, 2026 — **10-K adds a detailed AI/ML risk factor** Operational, data, regulatory ('digital redlining'), third-party-vendor and reputational AI risks; some open-source software in use may include generative AI. ([Dime Community Bancshares (SEC filing)](https://www.sec.gov/Archives/edgar/data/846617/000084661726000013/dcom-20251231x10k.htm))
- Jan 21, 2026 — **Q4 2025 call: building a commercial platform** Executives highlight core earnings, deposit growth and progress on a more diversified commercial banking platform heading into 2026. ([MarketBeat via Yahoo Finance](https://finance.yahoo.com/news/dime-community-bancshares-q4-earnings-162724010.html))
- Jun 4, 2025 — **Quantifind selected for AI sanctions screening** After a competitive evaluation, Dime chooses Quantifind's AI-powered risk intelligence platform for payments sanctions screening. ([Quantifind (PR Newswire)](https://www.prnewswire.com/news-releases/dime-community-bank-selects-quantifind-to-strengthen-sanctions-screening-in-payments-302472947.html))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | Quantifind AI sanctions screening for payments | Announced | AI risk intelligence combining internal data with unstructured public information to screen payments for sanctions exposure; Dime announced the selection, not a go-live date. | [Quantifind (PR Newswire)](https://www.prnewswire.com/news-releases/dime-community-bank-selects-quantifind-to-strengthen-sanctions-screening-in-payments-302472947.html) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Dependence on third-party AI vendors | In production | The 10-K names dependency risks on AI vendors: data handling, model reliability and licensing. | [Dime Community Bancshares (SEC filing)](https://www.sec.gov/Archives/edgar/data/846617/000084661726000013/dcom-20251231x10k.htm) |
| [Fair lending & discrimination](https://www.bankingnewsai.com/ai-regulation/by-use-case#fair-lending) | Algorithmic-bias and 'digital redlining' risk | Announced | The 10-K flags fair-lending exposure from AI use as an evolving regulatory risk. | [Dime Community Bancshares (SEC filing)](https://www.sec.gov/Archives/edgar/data/846617/000084661726000013/dcom-20251231x10k.htm) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Generative AI inside open-source software | Announced | Dime says it uses some open-source software that may include or rely on generative AI, with unsettled IP risk. | [Dime Community Bancshares (SEC filing)](https://www.sec.gov/Archives/edgar/data/846617/000084661726000013/dcom-20251231x10k.htm) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| Lead-bank assets (Fed release) | $15,034 million | Jun 30, 2026 | [Federal Reserve Board](https://www.federalreserve.gov/releases/lbr/current/) |
| Commercial share of deposits | About 75% (CEO, August 2026); over 70% commercial or municipal (Q2 2026 call) | Aug 12, 2026 | [American Banker](https://www.americanbanker.com/news/new-jersey-is-latest-frontier-in-n-y-banks-reinvention), [Moby via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/dime-community-bancshares-inc-q2-123000450.html) |
| Commercial share of loans | About 60% | Jul 23, 2026 | [Moby via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/dime-community-bancshares-inc-q2-123000450.html), [American Banker](https://www.americanbanker.com/news/new-jersey-is-latest-frontier-in-n-y-banks-reinvention) |

## Quotes

> "Our partnership with Quantifind represents a significant advancement in our compliance capabilities" — Michael Fegan, Chief Technology Officer, Jun 4, 2025 ([Quantifind (PR Newswire)](https://www.prnewswire.com/news-releases/dime-community-bank-selects-quantifind-to-strengthen-sanctions-screening-in-payments-302472947.html))

> "We do think there's an opportunity in New Jersey, and over time we'll look to capture more market share" — Stuart Lubow, President and CEO, Aug 12, 2026 ([American Banker](https://www.americanbanker.com/news/new-jersey-is-latest-frontier-in-n-y-banks-reinvention))

## Who runs AI

- **Stuart Lubow** — President and CEO ([American Banker](https://www.americanbanker.com/news/new-jersey-is-latest-frontier-in-n-y-banks-reinvention))
- **Michael Fegan** — Chief Technology Officer ([Quantifind (PR Newswire)](https://www.prnewswire.com/news-releases/dime-community-bank-selects-quantifind-to-strengthen-sanctions-screening-in-payments-302472947.html))

## Regulators it answers to

- [Federal Reserve](https://www.bankingnewsai.com/ai-regulation/federal-reserve) — Dime Commercial Bank is a New York member bank; the Fed's model-risk and third-party guidance covers the Quantifind screening model and other vendor AI. See [SR 11-7](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-11-7), [SR 23-4](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-23-4).
- [NY DFS](https://www.bankingnewsai.com/ai-regulation/ny-dfs) — As a New York-chartered trust company, Dime is a DFS covered entity; DFS's AI cybersecurity guidance and Part 500 apply to AI systems handling customer data. See [23 NYCRR Part 500](https://www.bankingnewsai.com/ai-regulation/documents/ny-dfs-23-nycrr-part-500), [DFS AI Cybersecurity Industry Letter (Oct 2024)](https://www.bankingnewsai.com/ai-regulation/documents/ny-dfs-industry-letter-2024-10-16-ai-cyber-risks).
- [FinCEN](https://www.bankingnewsai.com/ai-regulation/fincen) — AI-based sanctions and payment screening sits inside the bank's BSA/AML programme, where FinCEN and the agencies encourage innovative approaches. See [2018 Joint Statement on BSA/AML Innovation](https://www.bankingnewsai.com/ai-regulation/documents/fincen-joint-statement-innovation-2018).

## What the record suggests

### Compliance first

Dime's only named AI deployment is in sanctions screening, a common entry point for mid-sized banks because the gain is fewer false positives rather than customer-facing risk.

### A risk factor more specific than its practice

The 10-K's AI section is detailed, down to 'digital redlining' and generative AI in open-source code, while the bank has disclosed little actual AI use; it reads as preparation for broader adoption.

### The commercial pivot sets the agenda

With deposits and loans now mostly commercial, AI that matters to Dime is likely to sit in commercial onboarding, payments and treasury rather than consumer chat.

## FAQ

### Does Dime Community Bank use AI?

Yes, in compliance: in June 2025 Dime selected Quantifind's AI-powered risk intelligence platform to strengthen sanctions screening for payments. Its 10-K also says some open-source software it uses may include generative AI. It has not announced AI assistants or other AI products.

### Why did Dime Community Bank change its name?

Dime Community Bank became Dime Commercial Bank on June 2, 2026 to reflect a business that is now mostly commercial: the CEO says about 75% of deposits and 60% of loans are commercial.

## Sources (7)

1. Dime Community Bank Selects Quantifind to Strengthen Sanctions Screening in Payments — Quantifind (PR Newswire), Jun 4, 2025. https://www.prnewswire.com/news-releases/dime-community-bank-selects-quantifind-to-strengthen-sanctions-screening-in-payments-302472947.html
2. Dime Community Bancshares, Inc. Form 10-K for the fiscal year ended December 31, 2025 — Dime Community Bancshares (SEC filing), Feb 20, 2026. https://www.sec.gov/Archives/edgar/data/846617/000084661726000013/dcom-20251231x10k.htm
3. Rebrand - Dime Community Bank (undated page, retrieved 2026-10-05) — Dime Community Bank, Oct 5, 2026. https://www.dime.com/rebrand
4. Dime Community Bancshares Q4 Earnings Call Highlights — MarketBeat via Yahoo Finance, Jan 21, 2026. https://finance.yahoo.com/news/dime-community-bancshares-q4-earnings-162724010.html
5. Dime Community Bancshares, Inc. Q2 2026 Earnings Call Summary — Moby via Yahoo Finance, Jul 24, 2026. https://finance.yahoo.com/markets/stocks/articles/dime-community-bancshares-inc-q2-123000450.html
6. New Jersey is latest frontier in NY bank's reinvention — American Banker, Aug 12, 2026. https://www.americanbanker.com/news/new-jersey-is-latest-frontier-in-n-y-banks-reinvention
7. Large Commercial Banks (data as of June 30, 2026) — Federal Reserve Board, Oct 2, 2026. https://www.federalreserve.gov/releases/lbr/current/

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