Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or
“Dime”), the parent company of Dime Community Bank (the “Bank”),
today reported net income of $51.3 million for the fiscal year
ended December 31, 2018, or $1.38 per diluted common share. For the
quarter ended December 31, 2018, net income was $12.4 million, or
$0.34 per diluted common share.
Excluding the impact of $0.7 million of pre-tax
severance-related expenses related to a workforce reduction and a
$0.7 million reduction in income tax expense associated with a
one-time tax rate benefit recognized in conjunction with the filing
of the prior year tax return, earnings per share (“EPS”) for the
quarter ended December 31, 2018 would have been $0.34, which
represents a 6.3% increase versus EPS of $0.32 for the quarter
ended September 30, 2018.
The increase in linked quarter EPS was primarily
attributable to a 13 basis points linked quarter increase in the
net interest margin (“NIM”). Excluding the impact of prepayment
related fee income, the NIM increased by 1 basis point on a linked
quarter basis.
Relationship Based Business Banking Division Drives Net
Interest Margin Expansion
Commenting on the linked quarter NIM expansion,
Kenneth J. Mahon, President and CEO of the Company, stated, “The
increase in our NIM (excluding the impact of prepayment fees) was
driven by the growing contribution of our Business Banking
division. The Business Banking division’s loan portfolio reached
$648 million (or 12% of total loans) at December 31, 2018, versus
$511 million (or 9% of total loans) at September 30, 2018. As the
Business Banking portfolio increasingly becomes a larger percentage
of our overall balance sheet, we expect our overall loan yields to
continue trending upwards. Notably, the ending weighted average
rate on the total loan portfolio increased nine basis points when
comparing the fourth quarter of 2018 to the third quarter of 2018,
versus a seven basis points increase when comparing the third
quarter of 2018 to the second quarter of 2018.”
Mr. Mahon continued: “In addition, the linked
quarter increase in our cost of deposits was only nine basis
points, compared to a twelve basis point increase when comparing
the third quarter of 2018 with the second quarter of 2018. Total
Business Banking deposits grew to approximately $188 million at
year-end and contributed to the lower linked quarter deposit beta.
Dime’s new business model is beginning to bear fruit, and the
results are becoming more apparent on our financial statements as
each quarter passes.”
Repricing Loans, That Have Low Existing Coupons, Provide
Significant Re-Mixing Opportunity
Mr. Mahon commented: “As outlined in the table
below, Dime has $1.54 billion of real estate loans on its balance
sheet that will reach contractual repricings (generally at 200-250
basis points over the then current 5-Year Federal Home Loan Bank
advance rate) over the next two years. The presence of these loans
on our balance sheet, and the loan origination capabilities we have
developed as part of our Business Banking build out, provides us
the opportunity to continue growing the core NIM in the year
ahead.”
(As of December 31, 2018) |
FY 2019 |
FY 2020 |
Amount of Repricing Real Estate Loans |
$613.3 million |
$924.5 million |
Weighted Average Rate |
3.24% |
3.55% |
Highlights for the fourth quarter of 2018
included:
- Continued robust Business Banking originations of $142.4
million in the fourth quarter of 2018, a 176% increase versus the
fourth quarter of 2017;
- New Business Banking loan originations for the fourth quarter
of 2018 were at significantly higher rates than the overall
portfolio. The weighted average rate (“WAR”) on new Business
Banking real estate originations was 5.08% and the WAR on new
C&I originations was 6.12% for the quarter ended December 31,
2018, compared to the total real estate and C&I loan portfolio
WAR of 3.82% for the quarter ended December 31, 2018;
- Strong growth in checking account balances. Compared to the
fourth quarter of 2017, the sum of average non-interest bearing
checking account balances and average interest bearing checking
account balances for the fourth quarter of 2018 increased by 18.4%
to $502.1 million;
- In December 2018, the Bank was designated a “Preferred Lender”
by the U.S. Small Business Administration ("SBA"). The designation
will enable the Bank to make SBA lending approvals more
rapidly. In January 2019, the Bank hired Kevin Gallagher as
Senior Vice President and Head of SBA Lending, to lead its SBA
Lending division;
- The Company repurchased 494,249 shares, which represented
approximately 1.4% of beginning period shares outstanding, in the
fourth quarter of 2018 at a weighted average price of $17.13;
- Consolidated Company commercial real estate (“CRE”)
concentration ratio of 703% at December 31, 2018, versus 775% at
December 31, 2017;
- Nonperforming assets and loans 90 days or more past due on
accrual status declined by 42% on a linked quarter basis to $2.4
million at December 31, 2018, and represented only 0.04% of total
assets at that date; and
- Reported book value per share and tangible book value per share
(which consists of common equity less goodwill, divided by the
number of shares outstanding) grew to $16.68 and $15.14,
respectively, at December 31, 2018 (see “Non-GAAP Reconciliation”
tables at the end of this news release).
Mr. Mahon commented, “We
surpassed our internal full year 2018 loan portfolio net growth
target for the Business Banking division by over $90 million and
expect continued strong growth for this portfolio during 2019. We
remain steadfast in our belief that the Business Banking division
will accelerate the re-mixing of our balance sheet towards a more
relationship-driven model and drive solid, long-term risk adjusted
commercial-bank like margins and returns.”
Management’s Discussion of Fiscal Year 2018 Operating
Results
Net Interest Income
Net interest income in 2018 was $146.3 million,
a decrease of $6.4 million (-4.2%) from 2017. The decrease reflects
a $9.6 million increase in interest income offset by a $16.0
million increase in interest expense. Net interest margin was 2.41%
during 2018, compared to 2.54% in 2017.
Balance Sheet
Total assets decreased by $82.9 million (-1.3%)
in 2018, primarily the result of a decrease in loans of $209.0
million, partially offset by an increase in securities of $150.4
million. Mr. Mahon commented, “We are pleased that our
decision to contain asset growth for 2018 produced the desired
results on core NIM. While the size of our balance sheet contracted
a modest amount in 2018, we were focused on creating a higher
quality balance sheet with the intermediate-term goal of growing
linked quarter core NIM by year-end, which we successfully
accomplished. As mentioned previously, relationship-based Business
Banking loans now comprise 12% of our loan portfolio and we intend
to continue growing this component of our balance sheet in 2019.”
Total deposits decreased $46.7 million from 2018 to 2017. Mr. Mahon
continued, “Total deposits declined by approximately 1% on a
year-over-year basis, primarily due to approximately $415 million
of net outflows from our DimeDirect internet channel, as we did not
raise our posted rates beyond 1.35%. The current internet channel
deposit portfolio is down to approximately $291 million at year-end
2018, and we expect the magnitude of dollar outflows to decline
over time, resulting in less of a headwind to grow overall deposits
over time. Most importantly, we improved the quality of our deposit
base over the course of 2018, as evidenced by the non-interest-
bearing deposits to total deposits ratio increasing by over 200
basis points on a year-over-year basis. We continue to manage our
deposit pricing to remain competitive with the market while keeping
our loan-to-deposit ratio range at approximately 125%. We remain
committed to managing the balance sheet and the loan-to-deposit
ratio with the goal of keeping deposit betas as low as possible.
This past year, the results have met our financial objectives.” We
reduced our reliance on Federal Home Loan Bank advances, as that
portfolio declined by approximately $44.7 million on a
year-over-year basis.
Non-Interest Income
Non-interest income of $9.5 million in 2018
included gains of $1.4 million on securities and other assets and
$0.3 million from the sale of loans. Non-interest income of $21.5
million in 2017 included gains of $10.4 million from the sale of
premises, $2.6 million from securities and other assets, and $1.5
million from the sale of loans. Excluding these gains, non-interest
income was $7.9 million in 2018 and $7.0 million in 2017.
Non-Interest Expense
Non-interest expense was $86.9 million in 2018
and $85.0 million during 2017. During 2018, the Company recognized
$0.7 million of severance expense related to a reduction in the
workforce in the fourth quarter of 2018. During 2017, the
Company recognized non-recurring expenses of $1.3 million for loss
on extinguishment of debt related to the redemption of trust
preferred securities and $1.7 million related to de-conversion
costs associated with the planned change in the Bank’s core
processor. Excluding these items, non-interest expense was $86.2
million in 2018 and $82.0 million in 2017, an increase of $4.2
million in 2018. The increase was primarily the result of increased
salaries and employee benefits as the Company added relationship
bankers and support staff for its Business Banking buildout.
The ratio of non-interest expense to average
assets was 1.38% in 2018 compared to 1.37% in 2017. Excluding the
non-recurring expenses mentioned above, the ratio was 1.37% and
1.32% for 2018 and 2017, respectively. The efficiency ratio was
56.25% in 2018, up from 53.24% in 2017. Excluding the non-recurring
expenses mentioned above, the ratio was 55.77% and 51.37% for 2018
and 2017, respectively.
Management’s Discussion of Quarterly Operating
Results
Net Interest Income
Net interest income in the fourth quarter of
2018 was $37.2 million, higher than the $35.0 million for the third
quarter of 2018, and a decrease of $1.6 million (-4.1%) over the
fourth quarter of 2017. NIM was 2.46% during the fourth
quarter of 2018, compared to 2.33% in the third quarter of 2018,
and 2.50% in the fourth quarter of 2017. For the fourth quarter of
2018, income from prepayment activity totaled $3.2 million,
benefiting NIM by 21 basis points, compared to $1.3 million, or 9
basis points, during the third quarter of 2018, and $1.3 million,
or 8 basis points, during the fourth quarter of 2017.
Average interest-earning assets were $6.03
billion for the fourth quarter of 2018, representing a 1.0%
(annualized) increase from $6.02 billion for the third quarter of
2018 and a 2.8% decrease from $6.20 billion for the fourth quarter
of 2017.
For the fourth quarter of 2018, the average
yield on interest-earning assets was 3.85%, an increase of 22 basis
points compared with the third quarter of 2018, and an increase of
33 basis points compared to the fourth quarter of 2017. The
average cost of funds (which includes Federal Home Loan Bank
advances) was 1.63% for the fourth quarter of 2018, an increase of
11 basis points versus the third quarter of 2018, and an increase
of 44 basis points versus the fourth quarter of 2017.
Loans
The real estate loan portfolio decreased by
$41.5 million during the fourth quarter of 2018. Real estate
loan originations were $232.8 million during the quarter, at a
weighted average interest rate of 4.89%. Real estate loan
amortization and satisfactions totaled $267.6 million, or 20.7%
(annualized) of the portfolio balance, at an average rate of 3.69%.
The annualized real estate loan payoff rate of 20.7% for fourth
quarter 2018 was higher than both the third quarter 2018 (14.0%)
and the fourth quarter 2017 (10.2%). Average real estate loans were
$5.18 billion in the fourth quarter of 2018, a decrease of $20.2
million (-1.6% annualized) from the third quarter of 2018 and a
decrease of $644.0 million (-11.1%) from the fourth quarter of
2017.
Outlined below are the loan originations for the
current quarter, linked quarter and year-ago quarter.
($s in millions) |
Originations/ Weighted Average
Rate |
Real Estate Originations |
Q4 2018 |
Q3 2018 |
Q4 2017 |
Non-Business Banking |
$131.6/4.74% |
$ 47.2/4.71% |
$46.5/4.14% |
Business Banking |
$101.2/5.08% |
$101.8/4.99% |
$24.1/4.78% |
Total Real Estate |
$232.8/4.89% |
$149.0/4.90% |
$70.6/4.36% |
C&I Originations |
$ 41.2/6.12% |
$ 44.3/5.67% |
$27.5/4.94% |
Deposits and Borrowed Funds
The Company continues to focus on growing
relationship-based business deposits sourced from its retail
branches and its Business Banking division. The Business
Banking division ended the fourth quarter of 2018 with
approximately $98.7 million of low-cost relationship-based checking
and leasehold deposits at an average rate of approximately 1 basis
point and total deposits of $188.2 million at an average rate of 51
basis points, compared to approximately $52.2 million of checking
and leasehold deposits at an average rate of approximately 1 basis
point and total deposits of $77.3 million at an average rate of 13
basis points, respectively, for the year-ago time period.
The cost of total deposits increased 9 basis
points on a linked quarter basis, compared to a 12 basis points
increase when comparing the third quarter of 2018 to the second
quarter of 2018. Total deposits decreased by $25.5 million on a
linked quarter basis to $4.36 billion, due to net outflows from the
DimeDirect internet channel totaling $88.2 million offset by $62.7
million of growth in all other deposit categories.
The loan-to-deposit ratio was 123.8% at December
31, 2018, compared to 123.5% at September 30, 2018 and 127.2% at
December 31, 2017.
Total borrowings increased $82.4 million during
the fourth quarter of 2018 versus the third quarter of 2018.
At December 31, 2018, 32.7% of the $1.13 billion Federal Home Loan
Bank borrowing portfolio consisted of bullet advances that have a
remaining term of less than a year, compared to 45.5% of the $1.17
billion Federal Home Loan Bank borrowing portfolio from the prior
year end.
Non-Interest Income
Non-interest income was $1.8 million during the
fourth quarter of 2018. Non-interest income for the third
quarter of 2018 was $2.2 million. In the fourth quarter of 2017,
non-interest income was $13.7 million which included $10.4 million
from the sale of premises and $1.5 million on the sale of loans;
excluding these items, non-interest income for the fourth quarter
of 2017 was $1.8 million.
Non-Interest Expense
Non-interest expense was $22.7 million during
the fourth quarter of 2018, $21.6 million during the third quarter
of 2018, and $22.6 million during the fourth quarter of 2017.
During the fourth quarter the Company recognized a non-recurring
expense of $0.7 million for severance expense related to a
reduction in the workforce.
Excluding the non-recurring item in the fourth
quarter of 2018, non-interest expense was $22.0 million.
The ratio of non-interest expense to average
assets was 1.46% during the fourth quarter of 2018, higher than the
third quarter of 2018 (1.39%), and higher than the fourth quarter
of 2017 (1.41%). The efficiency ratio was 57.98% during the fourth
quarter of 2018, compared to 58.13% during the linked quarter and
55.63% during the fourth quarter of 2017. Excluding the
non-recurring expenses mentioned above, the ratio of non-interest
expense to average assets was 1.41% and the efficiency ratio was
56.12% during the fourth quarter of 2018.
Income Tax Expense and Deferred Tax
Asset and Liability Re-evaluation
The effective income tax rate was 20.4% during
the fourth quarter of 2018, lower than the 23.1% recorded in the
third quarter of 2018. As disclosed previously, in the fourth
quarter of 2018, the Company recognized a one-time tax rate benefit
in conjunction with the filing of the prior year tax return.
Credit Quality
Non-performing loans were $2.3 million, or 0.04%
of total loans, at December 31, 2018, a decrease from $3.0 million,
or 0.05% of total loans, at September 30, 2018. The allowance for
loan losses was 0.40% of total loans at December 31, 2018, up
slightly from the 0.39% at September 30, 2018. At December 31,
2018, non-performing assets represented 0.4% of the sum of tangible
capital plus the allowance for loan losses (this non-Generally
Accepted Accounting Principle (“GAAP”) statistic is otherwise known
as the "Texas Ratio") (see table at the end of this news
release). A provision for loan losses of $0.6 million was
recorded during the fourth quarter of 2018, compared to a loan loss
provision of $0.3 million during the third quarter of 2018.
Capital Management
The Company’s consolidated Tier 1 capital to
average assets (“leverage ratio”), which was 8.92% at December 31,
2018, was in excess of all applicable regulatory requirements.
The Bank’s regulatory capital ratios continued
to be in excess of all applicable regulatory requirements,
inclusive of conservation buffer amounts. At December 31, 2018, the
Bank’s leverage ratio was 10.31%, while Tier 1 capital to
risk-weighted assets and Total capital to risk-weighted assets
ratios were 13.36% and 13.82%, respectively.
Mr. Mahon commented, “During the fourth quarter
of 2018, the Board of Directors approved our thirteenth share
repurchase program. We believe that the share repurchase program is
consistent with the Company’s objectives to enhance long-term
shareholder value. As disclosed previously, the Company repurchased
1.4% of beginning period shares outstanding in the fourth quarter
at a weighted average price of $17.13.”
Diluted earnings per common share exceeded the
quarterly $0.14 cash dividend per share by 142.86% during the
fourth quarter of 2018, equating to a 41.18% payout ratio.
Book value per share was $16.68 and tangible
book value (common equity less goodwill divided by number of shares
outstanding) per share was $15.14 at December 31, 2018.
Earnings Call Information
The Company will conduct a conference call at
5:30 p.m. (ET) on January 24, 2019, during which President and
Chief Executive Officer, Kenneth J. Mahon, will discuss the
Company’s fourth quarter and fiscal year performance, with a
Q&A session to follow. Dial-in information for the live call is
1-888-317-6016. Upon dialing in, request to be joined into Dime
Community Bancshares, Inc. call with the conference operator.
The conference call will be simultaneously webcast
(listen only), and archived for a period of one year, at
https://services.choruscall.com/links/dcom190124.html. Dial-in
information for the replay is 1-877-344-7529 using access code
#10127443. Replay will be available January 24, 2019 (6:30 p.m.)
through January 31, 2019 (11:59 p.m.).
ABOUT DIME COMMUNITY BANCSHARES,
INC.
The Company had $6.32 billion in consolidated
assets as of December 31, 2018, and is the parent company of the
Bank. The Bank was founded in 1864, is headquartered in Brooklyn,
New York, and currently has twenty-nine branches located throughout
Brooklyn, Queens, the Bronx, and Nassau County and Suffolk
Counties, New York. More information on the Company and the bank
can be found on Dime's website at www.dime.com.
This news release contains a number of
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
These statements may be identified by use of words such as
"anticipate," "believe," “continue,” "could," "estimate," "expect,"
"intend," “likely,” "may," "outlook," "plan," "potential,"
"predict," "project," "should," "will," "would" and similar terms
and phrases, including references to assumptions.
Forward-looking statements are based upon
various assumptions and analyses made by the Company in light of
management's experience and its perception of historical trends,
current conditions and expected future developments, as well as
other factors it believes are appropriate under the circumstances.
These statements are not guarantees of future performance and are
subject to risks, uncertainties and other factors (many of which
are beyond the Company's control) that could cause actual results
to differ materially from future results expressed or implied by
such forward-looking statements. These factors include, without
limitation, the following: the timing and occurrence or
non-occurrence of events may be subject to circumstances beyond the
Company’s control; there may be increases in competitive pressure
among financial institutions or from non-financial institutions;
changes in the interest rate environment may reduce interest
margins; changes in deposit flows, loan demand or real estate
values may adversely affect the business of the Company and/or the
Bank; changes in tax laws or accounting principles, policies or
guidelines may cause the Company’s financial condition to be
perceived differently; changes in corporate and/or individual
income tax laws may adversely affect the Company's financial
condition or results of operations; general economic conditions,
either nationally or locally in some or all areas in which the
Company conducts business, or conditions in the securities markets
or the banking industry may be less favorable than the Company
currently anticipates; legislation or regulatory changes may
adversely affect the Company’s business; technological changes may
be more difficult or expensive than the Company anticipates;
success or consummation of new business initiatives may be more
difficult or expensive than the Company anticipates; or litigation
or other matters before regulatory agencies, whether currently
existing or commencing in the future, may delay the occurrence or
non-occurrence of events longer than the Company anticipates.
Accordingly, you should not place undue reliance on forward-looking
statements. See the section entitled “Risk Factors” in the
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q that
we file with the Securities and Exchange Commission for more
information.
Contact: Avinash
ReddyExecutive Vice President – Chief Financial
Officer718-782-6200 extension 5909
|
DIME COMMUNITY
BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
(Dollars in thousands except share
amounts) |
|
|
|
|
|
|
|
December
31, |
|
September
30, |
|
December
31, |
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
ASSETS: |
|
|
|
|
|
Cash and due from
banks |
$ |
147,256 |
|
|
$ |
132,822 |
|
|
$ |
169,455 |
|
Mortgage-backed
securities available for sale |
|
466,605 |
|
|
|
465,490 |
|
|
|
351,384 |
|
Investment securities available for sale |
|
36,280 |
|
|
|
5,088 |
|
|
|
4,006 |
|
Marketable equity
securities, at fair value |
|
5,667 |
|
|
|
6,111 |
|
|
|
- |
|
Trading securities |
|
- |
|
|
|
- |
|
|
|
2,715 |
|
Real Estate
Loans: |
|
|
|
|
|
|
|
|
|
|
|
One-to-four family and cooperative/condominium apartment |
|
96,847 |
|
|
|
71,464 |
|
|
|
63,095 |
|
Multifamily residential and residential mixed use (1)(2) |
|
3,866,788 |
|
|
|
4,015,424 |
|
|
|
4,381,180 |
|
Commercial real estate |
|
1,170,085 |
|
|
|
1,106,430 |
|
|
|
1,010,603 |
|
Acquisition, development, and construction ("ADC") |
|
29,402 |
|
|
|
11,144 |
|
|
|
9,189 |
|
Total
real estate loans |
|
5,163,122 |
|
|
|
5,204,462 |
|
|
|
5,464,067 |
|
Commercial and industrial ("C&I") |
|
229,504 |
|
|
|
207,743 |
|
|
|
136,671 |
|
Other
loans |
|
1,192 |
|
|
|
1,162 |
|
|
|
1,379 |
|
Allowance
for loan losses |
|
(21,782 |
) |
|
|
(21,330 |
) |
|
|
(21,033 |
) |
Total loans, net |
|
5,372,036 |
|
|
|
5,392,037 |
|
|
|
5,581,084 |
|
Premises
and fixed assets, net |
|
24,713 |
|
|
|
24,736 |
|
|
|
24,326 |
|
Loans
held for sale |
|
1,097 |
|
|
|
- |
|
|
|
- |
|
Federal
Home Loan Bank of New York capital stock |
|
57,551 |
|
|
|
53,842 |
|
|
|
59,696 |
|
Bank
Owned Life Insurance ("BOLI") |
|
111,427 |
|
|
|
110,706 |
|
|
|
108,545 |
|
Goodwill |
|
55,638 |
|
|
|
55,638 |
|
|
|
55,638 |
|
Other assets |
|
42,308 |
|
|
|
47,723 |
|
|
|
46,611 |
|
TOTAL
ASSETS |
$ |
6,320,578 |
|
|
$ |
6,294,193 |
|
|
$ |
6,403,460 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing checking |
$ |
395,477 |
|
|
$ |
368,780 |
|
|
$ |
307,746 |
|
Interest-bearing checking |
|
115,972 |
|
|
|
112,180 |
|
|
|
124,283 |
|
Savings |
|
336,669 |
|
|
|
342,908 |
|
|
|
362,092 |
|
Money
Market |
|
2,098,599 |
|
|
|
2,220,719 |
|
|
|
2,517,439 |
|
Sub-total |
|
2,946,717 |
|
|
|
3,044,587 |
|
|
|
3,311,560 |
|
Certificates of
deposit |
|
1,410,037 |
|
|
|
1,337,663 |
|
|
|
1,091,887 |
|
Total Due to
Depositors |
|
4,356,754 |
|
|
|
4,382,250 |
|
|
|
4,403,447 |
|
Escrow and other
deposits |
|
85,234 |
|
|
|
119,796 |
|
|
|
82,168 |
|
Federal
Home Loan Bank of New York advances |
|
1,125,350 |
|
|
|
1,042,925 |
|
|
|
1,170,000 |
|
Subordinated Notes Payable, net |
|
113,759 |
|
|
|
113,722 |
|
|
|
113,612 |
|
Other liabilities |
|
37,400 |
|
|
|
31,923 |
|
|
|
35,666 |
|
TOTAL LIABILITIES |
|
5,718,497 |
|
|
|
5,690,616 |
|
|
|
5,804,893 |
|
STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
Common
stock ($0.01 par, 125,000,000 shares authorized, 53,690,825 shares,
53,690,825 shares and |
|
|
|
|
|
|
|
|
|
|
|
53,624,453 shares issued at December 31, 2018, September 30, 2018,
and December 31, 2017, |
|
|
|
|
|
|
|
|
|
|
|
respectively, and 36,092,952 shares, 36,612,153 shares and
37,419,070 shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
at
December 31, 2018, September 30, 2018 and December 31, 2017,
respectively) |
|
537 |
|
|
|
537 |
|
|
|
536 |
|
Additional paid-in capital |
|
277,512 |
|
|
|
277,718 |
|
|
|
276,730 |
|
Retained
earnings |
|
565,713 |
|
|
|
558,357 |
|
|
|
535,130 |
|
Accumulated other comprehensive loss, net of deferred taxes |
|
(6,500 |
) |
|
|
(5,734 |
) |
|
|
(3,641 |
) |
Unearned
Restricted Stock Award common stock |
|
(3,623 |
) |
|
|
(4,699 |
) |
|
|
(2,894 |
) |
Common
stock held by the Benefit Maintenance Plan |
|
(1,509 |
) |
|
|
(1,509 |
) |
|
|
(2,736 |
) |
Treasury
stock (17,597,873 shares, 17,078,672 shares and 16,205,383
shares |
|
|
|
|
|
|
|
|
|
|
|
at
December 31, 2018, September 30, 2018, and December 31, 2017,
respectively) |
|
(230,049 |
) |
|
|
(221,093 |
) |
|
|
(204,558 |
) |
TOTAL
STOCKHOLDERS' EQUITY |
|
602,081 |
|
|
|
603,577 |
|
|
|
598,567 |
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
6,320,578 |
|
|
$ |
6,294,193 |
|
|
$ |
6,403,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans
underlying cooperatives. |
|
|
|
|
|
(2) While
the loans within this category are often considered "commercial
real estate" in nature, multifamily and loans underlying
cooperatives are here reported separately from commercial real
estate loans in order to emphasize the residential nature of the
collateral underlying this significant component of the total
loan portfolio. |
|
|
|
|
|
|
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Dollars in thousands
except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended |
|
For the Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
secured by real estate |
$ |
49,953 |
|
|
$ |
47,486 |
|
$ |
51,254 |
|
|
$ |
194,842 |
|
|
$ |
204,487 |
Commercial and industrial ("C&I") |
|
3,200 |
|
|
|
2,729 |
|
|
1,514 |
|
|
|
9,741 |
|
|
|
3,072 |
Other
loans |
|
19 |
|
|
|
18 |
|
|
20 |
|
|
|
74 |
|
|
|
75 |
Mortgage-backed securities |
|
3,279 |
|
|
|
2,852 |
|
|
487 |
|
|
|
10,794 |
|
|
|
542 |
Investment securities |
|
240 |
|
|
|
59 |
|
|
115 |
|
|
|
363 |
|
|
|
577 |
Other
short-term investments |
|
1,359 |
|
|
|
1,480 |
|
|
1,204 |
|
|
|
5,896 |
|
|
|
3,343 |
Total interest
income |
|
58,050 |
|
|
|
54,624 |
|
|
54,594 |
|
|
|
221,710 |
|
|
|
212,096 |
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
and escrow |
|
14,289 |
|
|
|
13,361 |
|
|
9,967 |
|
|
|
50,389 |
|
|
|
38,391 |
Borrowed
funds |
|
6,611 |
|
|
|
6,235 |
|
|
5,895 |
|
|
|
24,995 |
|
|
|
20,975 |
Total interest expense |
|
20,900 |
|
|
|
19,596 |
|
|
15,862 |
|
|
|
75,384 |
|
|
|
59,366 |
Net interest income |
|
37,150 |
|
|
|
35,028 |
|
|
38,732 |
|
|
|
146,326 |
|
|
|
152,730 |
Provision for loan
losses |
|
603 |
|
|
|
335 |
|
|
(1,000 |
) |
|
|
2,244 |
|
|
|
520 |
Net interest income after
provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for loan losses |
|
36,547 |
|
|
|
34,693 |
|
|
39,732 |
|
|
|
144,082 |
|
|
|
152,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges and other fees |
|
1,199 |
|
|
|
1,233 |
|
|
1,167 |
|
|
|
4,642 |
|
|
|
3,828 |
Mortgage
banking income, net |
|
75 |
|
|
|
79 |
|
|
51 |
|
|
|
367 |
|
|
|
201 |
Gain
(loss) on equity and trading securities |
|
(416 |
) |
|
|
99 |
|
|
(29 |
) |
|
|
(302 |
) |
|
|
133 |
Gain on
sale of securities and other assets |
|
- |
|
|
|
- |
|
|
- |
|
|
|
1,370 |
|
|
|
2,607 |
Gain on
sale of loans |
|
159 |
|
|
|
18 |
|
|
1,475 |
|
|
|
302 |
|
|
|
1,475 |
Gain on
the sale of premises held for sale |
|
- |
|
|
|
- |
|
|
10,412 |
|
|
|
- |
|
|
|
10,412 |
Income
from BOLI |
|
721 |
|
|
|
729 |
|
|
563 |
|
|
|
2,882 |
|
|
|
2,217 |
Other |
|
83 |
|
|
|
63 |
|
|
67 |
|
|
|
262 |
|
|
|
641 |
Total non-interest income |
|
1,821 |
|
|
|
2,221 |
|
|
13,706 |
|
|
|
9,523 |
|
|
|
21,514 |
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
12,042 |
|
|
|
10,963 |
|
|
9,777 |
|
|
|
45,066 |
|
|
|
37,354 |
Stock
benefit plan compensation expense |
|
326 |
|
|
|
403 |
|
|
339 |
|
|
|
1,524 |
|
|
|
1,369 |
Occupancy
and equipment |
|
3,836 |
|
|
|
3,845 |
|
|
3,581 |
|
|
|
15,250 |
|
|
|
14,201 |
Data
processing costs |
|
1,635 |
|
|
|
1,823 |
|
|
1,778 |
|
|
|
7,009 |
|
|
|
8,280 |
Marketing |
|
1,030 |
|
|
|
975 |
|
|
1,375 |
|
|
|
3,198 |
|
|
|
5,774 |
Federal
deposit insurance premiums |
|
448 |
|
|
|
382 |
|
|
724 |
|
|
|
1,969 |
|
|
|
2,966 |
Loss from
extinguishment of debt |
|
|
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
1,272 |
Other |
|
3,428 |
|
|
|
3,194 |
|
|
4,999 |
|
|
|
12,874 |
|
|
|
13,770 |
Total non-interest expense |
|
22,745 |
|
|
|
21,585 |
|
|
22,573 |
|
|
|
86,890 |
|
|
|
84,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
15,623 |
|
|
|
15,329 |
|
|
30,865 |
|
|
|
66,715 |
|
|
|
88,738 |
Income tax expense |
|
3,183 |
|
|
|
3,547 |
|
|
15,442 |
|
|
|
15,427 |
|
|
|
36,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
12,440 |
|
|
$ |
11,782 |
|
$ |
15,423 |
|
|
$ |
51,288 |
|
|
$ |
51,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Share ("EPS"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.34 |
|
|
$ |
0.32 |
|
$ |
0.41 |
|
|
$ |
1.38 |
|
|
$ |
1.38 |
Diluted |
$ |
0.34 |
|
|
$ |
0.32 |
|
$ |
0.41 |
|
|
$ |
1.38 |
|
|
$ |
1.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for Diluted EPS |
|
36,296,298 |
|
|
|
37,189,648 |
|
|
37,432,283 |
|
|
|
37,087,762 |
|
|
|
37,510,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED SELECTED
FINANCIAL HIGHLIGHTS |
(Dollars in thousands except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
At or
For the Three Months
Ended |
|
At or For the
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
EPS (Diluted) |
$ |
0.34 |
|
|
$ |
0.32 |
|
|
$ |
0.41 |
|
|
$ |
1.38 |
|
|
$ |
1.38 |
|
Cash
dividends paid per share |
|
0.14 |
|
|
|
0.14 |
|
|
|
0.14 |
|
|
|
0.56 |
|
|
|
0.56 |
|
Book value per
share |
|
16.68 |
|
|
|
16.49 |
|
|
|
16.00 |
|
|
|
16.68 |
|
|
|
16.00 |
|
Tangible book value per
share (1) |
|
15.14 |
|
|
|
14.97 |
|
|
|
14.51 |
|
|
|
15.14 |
|
|
|
14.51 |
|
Dividend
payout ratio |
|
41.18 |
% |
|
|
43.75 |
% |
|
|
34.15 |
% |
|
|
40.58 |
% |
|
|
40.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (Based upon Reported Net Income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets |
|
0.80 |
% |
|
|
0.76 |
% |
|
|
0.96 |
% |
|
|
0.82 |
% |
|
|
0.84 |
% |
Return
on average common equity |
|
8.25 |
% |
|
|
7.71 |
% |
|
|
10.41 |
% |
|
|
8.44 |
% |
|
|
8.94 |
% |
Return
on average tangible common equity (1) |
|
9.08 |
% |
|
|
8.49 |
% |
|
|
11.49 |
% |
|
|
9.30 |
% |
|
|
9.89 |
% |
Net
interest spread |
|
2.22 |
% |
|
|
2.11 |
% |
|
|
2.33 |
% |
|
|
2.20 |
% |
|
|
2.38 |
% |
Net
interest margin |
|
2.46 |
% |
|
|
2.33 |
% |
|
|
2.50 |
% |
|
|
2.41 |
% |
|
|
2.54 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
118.71 |
% |
|
|
117.46 |
% |
|
|
117.07 |
% |
|
|
117.47 |
% |
|
|
116.55 |
% |
Non-interest expense to average assets |
|
1.46 |
% |
|
|
1.39 |
% |
|
|
1.41 |
% |
|
|
1.38 |
% |
|
|
1.37 |
% |
Efficiency ratio |
|
57.98 |
% |
|
|
58.13 |
% |
|
|
55.63 |
% |
|
|
56.25 |
% |
|
|
53.24 |
% |
Loan-to-deposit ratio at end of period |
|
123.80 |
% |
|
|
123.53 |
% |
|
|
127.22 |
% |
|
|
123.80 |
% |
|
|
127.22 |
% |
CRE consolidated
concentration ratio (2) |
|
702.7 |
% |
|
|
706.1 |
% |
|
|
775.2 |
% |
|
|
702.7 |
% |
|
|
775.2 |
% |
Effective tax rate |
|
20.37 |
% |
|
|
23.14 |
% |
|
|
50.03 |
% |
|
|
23.12 |
% |
|
|
41.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
$ |
6,251,691 |
|
|
$ |
6,231,801 |
|
|
$ |
6,400,719 |
|
|
$ |
6,279,483 |
|
|
$ |
6,211,645 |
|
Average
interest-earning assets |
|
6,031,823 |
|
|
|
6,016,728 |
|
|
|
6,203,511 |
|
|
|
6,060,291 |
|
|
|
6,007,562 |
|
Average loans |
|
5,400,166 |
|
|
|
5,388,065 |
|
|
|
5,949,955 |
|
|
|
5,454,128 |
|
|
|
5,843,409 |
|
Average deposits |
|
4,349,419 |
|
|
|
4,386,631 |
|
|
|
4,351,863 |
|
|
|
4,377,439 |
|
|
|
4,417,287 |
|
Average common
equity |
|
603,358 |
|
|
|
611,022 |
|
|
|
592,762 |
|
|
|
607,353 |
|
|
|
580,430 |
|
Average tangible common
equity (1) |
|
547,721 |
|
|
|
555,385 |
|
|
|
537,124 |
|
|
|
551,716 |
|
|
|
524,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans (excluding loans held for sale) |
$ |
2,345 |
|
|
$ |
2,978 |
|
|
$ |
533 |
|
|
$ |
2,345 |
|
|
$ |
533 |
|
Non-performing assets |
|
2,345 |
|
|
|
2,978 |
|
|
|
533 |
|
|
|
2,345 |
|
|
|
533 |
|
Net
charge-offs (recoveries) |
|
152 |
|
|
|
(11 |
) |
|
|
(26 |
) |
|
|
1,497 |
|
|
|
23 |
|
Non-performing loans/ Total loans |
|
0.04 |
% |
|
|
0.06 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
Non-performing assets/ Total assets |
|
0.04 |
% |
|
|
0.05 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
Allowance for loan loss/ Total loans |
|
0.40 |
% |
|
|
0.39 |
% |
|
|
0.38 |
% |
|
|
0.40 |
% |
|
|
0.38 |
% |
Allowance for loan loss/ Non-performing loans |
|
928.87 |
% |
|
|
716.25 |
% |
|
|
3946.15 |
% |
|
|
928.87 |
% |
|
|
3946.15 |
% |
Loans
delinquent 30 to 89 days at period end |
$ |
424 |
|
|
$ |
531 |
|
|
$ |
37 |
|
|
$ |
424 |
|
|
$ |
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios - Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity to tangible assets (1) |
|
8.72 |
% |
|
|
8.78 |
% |
|
|
8.55 |
% |
|
|
8.72 |
% |
|
|
8.55 |
% |
Tier 1
common equity ratio |
|
11.52 |
|
|
|
11.66 |
|
|
|
11.42 |
|
|
|
11.52 |
|
|
|
11.42 |
|
Tier 1
risk-based capital ratio |
|
11.52 |
|
|
|
11.66 |
|
|
|
11.42 |
|
|
|
11.52 |
|
|
|
11.42 |
|
Total
risk-based capital ratio |
|
14.38 |
|
|
|
14.54 |
|
|
|
14.27 |
|
|
|
14.38 |
|
|
|
14.27 |
|
Tier 1
leverage ratio |
|
8.92 |
|
|
|
8.96 |
|
|
|
8.61 |
|
|
|
8.92 |
|
|
|
8.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios - Bank Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
common equity ratio |
|
13.36 |
% |
|
|
13.26 |
% |
|
|
12.38 |
% |
|
|
13.36 |
% |
|
|
12.38 |
% |
Tier 1
risk-based capital ratio |
|
13.36 |
|
|
|
13.26 |
|
|
|
12.38 |
|
|
|
13.36 |
|
|
|
12.38 |
|
Total
risk-based capital ratio |
|
13.82 |
|
|
|
13.71 |
|
|
|
12.83 |
|
|
|
13.82 |
|
|
|
12.83 |
|
Tier 1
leverage ratio |
|
10.31 |
|
|
|
10.15 |
|
|
|
9.32 |
|
|
|
10.31 |
|
|
|
9.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See "Non-GAAP Reconciliation" table for
reconciliation of tangible common equity and tangible assets.
Average balances are calculated using the ending balance for months
during the period indicated. |
(2) The CRE concentration ratio is calculated using the
sum of commercial real estate, excluding owner occupied commercial
real estate, multifamily, and ADC, divided by consolidated
capital. |
|
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED AVERAGE BALANCES AND NET INTEREST
INCOME |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
December 31, 2018 |
|
|
|
September 30, 2018 |
|
|
|
December 31, 2017 |
|
|
|
|
Average |
|
|
|
Average |
|
|
|
Average |
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
Balance |
Interest |
Cost |
|
Balance |
Interest |
Cost |
|
Balance |
Interest |
Cost |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Real estate loans |
$ |
5,179,805 |
$ |
49,953 |
|
3.86 |
% |
|
$ |
5,200,021 |
$ |
47,486 |
|
3.65 |
% |
|
$ |
5,823,794 |
$ |
51,254 |
|
3.52 |
% |
Commercial and industrial loans |
|
219,295 |
|
3,200 |
|
5.84 |
|
|
|
186,686 |
|
2,729 |
|
5.85 |
|
|
|
125,095 |
|
1,514 |
|
4.84 |
|
Other
loans |
|
1,066 |
|
19 |
|
7.13 |
|
|
|
1,358 |
|
18 |
|
5.30 |
|
|
|
1,066 |
|
20 |
|
7.50 |
|
Mortgage-backed securities |
|
472,965 |
|
3,279 |
|
2.77 |
|
|
|
432,213 |
|
2,852 |
|
2.64 |
|
|
|
84,942 |
|
487 |
|
2.29 |
|
Investment securities |
|
19,728 |
|
240 |
|
4.87 |
|
|
|
11,158 |
|
59 |
|
2.12 |
|
|
|
6,500 |
|
115 |
|
7.08 |
|
Other
short-term investments |
|
138,964 |
|
1,359 |
|
3.91 |
|
|
|
185,292 |
|
1,480 |
|
3.19 |
|
|
|
162,114 |
|
1,204 |
|
2.97 |
|
Total
interest-earning assets |
|
6,031,823 |
|
58,050 |
|
3.85 |
% |
|
|
6,016,728 |
|
54,624 |
|
3.63 |
% |
|
|
6,203,511 |
|
54,594 |
|
3.52 |
% |
Non-interest-earning assets |
|
219,868 |
|
|
|
|
215,073 |
|
|
|
|
197,208 |
|
|
Total assets |
$ |
6,251,691 |
|
|
|
$ |
6,231,801 |
|
|
|
$ |
6,400,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking accounts |
$ |
114,563 |
$ |
60 |
|
0.21 |
% |
|
$ |
114,865 |
$ |
55 |
|
0.19 |
% |
|
$ |
117,468 |
$ |
56 |
|
0.19 |
% |
Money
market accounts |
|
2,131,276 |
|
7,630 |
|
1.42 |
|
|
|
2,264,082 |
|
7,542 |
|
1.32 |
|
|
|
2,491,423 |
|
5,986 |
|
0.95 |
|
Savings
accounts |
|
338,837 |
|
47 |
|
0.06 |
|
|
|
347,041 |
|
50 |
|
0.06 |
|
|
|
358,859 |
|
51 |
|
0.06 |
|
Certificates of deposit |
|
1,377,207 |
|
6,552 |
|
1.89 |
|
|
|
1,297,857 |
|
5,714 |
|
1.75 |
|
|
|
1,077,376 |
|
3,874 |
|
1.43 |
|
Total
interest-bearing deposits |
|
3,961,883 |
|
14,289 |
|
1.43 |
|
|
|
4,023,845 |
|
13,361 |
|
1.32 |
|
|
|
4,045,126 |
|
9,967 |
|
0.98 |
|
Borrowed
Funds |
|
1,119,225 |
|
6,611 |
|
2.34 |
|
|
|
1,098,713 |
|
6,235 |
|
2.25 |
|
|
|
1,253,860 |
|
5,895 |
|
1.87 |
|
Total
interest-bearing liabilities |
|
5,081,108 |
|
20,900 |
|
1.63 |
% |
|
|
5,122,558 |
|
19,596 |
|
1.52 |
% |
|
|
5,298,986 |
|
15,862 |
|
1.19 |
% |
Non-interest-bearing checking accounts |
|
387,536 |
|
|
|
|
362,786 |
|
|
|
|
306,737 |
|
|
Other
non-interest-bearing liabilities |
|
179,689 |
|
|
|
|
135,435 |
|
|
|
|
202,234 |
|
|
Total
liabilities |
|
5,648,333 |
|
|
|
|
5,620,779 |
|
|
|
|
5,807,957 |
|
|
Stockholders' equity |
|
603,358 |
|
|
|
|
611,022 |
|
|
|
|
592,762 |
|
|
Total liabilities and
stockholders' equity |
$ |
6,251,691 |
|
|
|
$ |
6,231,801 |
|
|
|
$ |
6,400,719 |
|
|
Net interest
income |
|
$ |
37,150 |
|
|
|
|
$ |
35,028 |
|
|
|
|
$ |
38,732 |
|
|
Net interest
spread |
|
|
2.22 |
% |
|
|
|
2.11 |
% |
|
|
|
2.33 |
% |
Net interest-earning
assets |
$ |
950,715 |
|
|
|
$ |
894,170 |
|
|
|
$ |
904,525 |
|
|
Net interest
margin |
|
|
2.46 |
% |
|
|
|
2.33 |
% |
|
|
|
2.50 |
% |
Ratio of
interest-earning assets to interest-bearing liabilities |
|
|
118.71 |
% |
|
|
|
|
117.46 |
% |
|
|
|
|
117.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits (including
non-interest bearing checking accounts) |
$ |
4,349,419 |
$ |
14,289 |
|
1.30 |
% |
|
$ |
4,386,631 |
$ |
13,361 |
|
1.21 |
% |
|
$ |
4,351,863 |
$ |
9,967 |
|
0.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED SCHEDULE OF LOAN COMPOSITION AND
WEIGHTED AVERAGE RATES ("WAR") (1) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2018 |
|
At September 30, 2018 |
|
At December 31, 2017 |
|
Balance |
WAR |
|
Balance |
WAR |
|
Balance |
WAR |
Loan
balances at period end: |
|
|
|
|
|
|
|
|
One-to-four family
residential, including condominium and cooperative apartment |
$ |
96,847 |
4.59 |
% |
|
$ |
71,464 |
4.42 |
% |
|
$ |
63,095 |
4.33 |
% |
Multifamily residential and residential mixed use (2)(3) |
|
3,866,788 |
3.56 |
|
|
|
4,015,424 |
3.52 |
|
|
|
4,381,180 |
3.40 |
|
Commercial and commercial mixed use real estate |
|
1,170,085 |
4.17 |
|
|
|
1,106,430 |
4.10 |
|
|
|
1,010,603 |
3.95 |
|
Acquisition, development, and construction ("ADC") |
|
29,402 |
6.64 |
|
|
|
11,144 |
6.26 |
|
|
|
9,189 |
5.59 |
|
Total
real estate loans |
|
5,163,122 |
3.74 |
|
|
|
5,204,462 |
3.66 |
|
|
|
5,464,067 |
3.51 |
|
Commercial and industrial ("C&I") |
|
229,504 |
5.76 |
|
|
|
207,743 |
5.53 |
|
|
|
136,671 |
4.82 |
|
Total |
$ |
5,392,626 |
3.82 |
% |
|
$ |
5,412,205 |
3.73 |
% |
|
$ |
5,600,738 |
3.55 |
% |
|
|
|
|
|
|
|
|
|
(1) Weighted average rate is calculated by aggregating
interest based on the current loan rate from each loan in the
category, divided by the total amount of loans in the
category. |
(2) Includes loans underlying cooperatives. |
(3) While the loans within this category are often considered
"commercial real estate" in nature, multifamily and loans
underlying cooperatives are here reported separately from
commercial real estate loans in order to emphasize the residential
nature of the collateral underlying this significant
component of the total loan portfolio. |
|
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
AND TROUBLED DEBT RESTRUCTURINGS ("TDRs") |
(Dollars in
thousands) |
|
|
|
|
|
December 31, |
|
September
30, |
|
At December 31, |
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
Non-Performing
Loans |
|
|
|
|
|
One-to-four family residential, including condominium and
cooperative apartment |
$ |
712 |
|
|
$ |
443 |
|
|
$ |
436 |
|
Multifamily residential and residential mixed use (1)(2) |
|
280 |
|
|
|
1,473 |
|
|
|
- |
|
Commercial real estate |
|
964 |
|
|
|
975 |
|
|
|
- |
|
Commercial mixed use real estate (2) |
|
77 |
|
|
|
84 |
|
|
|
93 |
|
C&I |
|
309 |
|
|
|
- |
|
|
|
- |
|
Other |
|
3 |
|
|
|
3 |
|
|
|
4 |
|
Total Non-Performing
Loans (3) |
$ |
2,345 |
|
|
$ |
2,978 |
|
|
$ |
533 |
|
Total
Non-Performing Assets |
$ |
2,345 |
|
|
$ |
2,978 |
|
|
$ |
533 |
|
|
|
|
|
|
|
Performing TDR Loans |
|
|
|
|
|
One- to
four-family and cooperative/condominium apartment |
$ |
14 |
|
|
$ |
16 |
|
|
$ |
22 |
|
Multifamily residential and mixed use residential real estate
(1)(2) |
|
271 |
|
|
|
277 |
|
|
|
619 |
|
Mixed use
commercial real estate (2) |
|
4,084 |
|
|
|
4,107 |
|
|
|
4,174 |
|
Commercial real estate |
|
- |
|
|
|
- |
|
|
|
3,296 |
|
Total
Performing TDRs |
$ |
4,369 |
|
|
$ |
4,400 |
|
|
$ |
8,111 |
|
|
|
|
|
|
|
(1)
Includes loans underlying cooperatives. |
|
|
|
|
|
(2) While the loans within this category are often considered
"commercial real estate" in nature, multifamily and loans
underlying cooperatives are here reported separately from
commercial real estate loans in order to emphasize the residential
nature of the collateral underlying this significant
component of the total loan portfolio. |
(3) There was one non-accruing TDR for September 30,
2018. There were no non-accruing TDRs for December 31, 2018
or December 31, 2017. |
|
|
|
|
|
|
|
|
|
|
|
|
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE
CAPITAL AND RESERVES (TEXAS RATIO) |
(Dollars in
thousands) |
|
|
|
|
|
|
|
At December 31, |
|
At September
30, |
|
At December 31, |
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
Total Non-Performing
Assets |
$ |
2,345 |
|
|
$ |
2,978 |
|
|
$ |
533 |
|
Loans 90 days or more
past due on accrual status (5) |
|
100 |
|
|
|
1,242 |
|
|
|
19,935 |
|
TOTAL
PROBLEM ASSETS |
$ |
2,445 |
|
|
$ |
4,220 |
|
|
$ |
20,468 |
|
|
|
|
|
|
|
Tangible common equity
(6) |
$ |
546,443 |
|
|
$ |
547,939 |
|
|
$ |
542,929 |
|
Allowance for loan
losses and reserves for contingent liabilities |
|
21,807 |
|
|
|
21,355 |
|
|
|
21,058 |
|
TANGIBLE
COMMON EQUITY PLUS RESERVES |
$ |
568,250 |
|
|
$ |
569,294 |
|
|
$ |
563,987 |
|
|
|
|
|
|
|
TEXAS
RATIO (PROBLEM ASSETS AS A PERCENTAGE OF |
|
|
|
|
|
TANGIBLE
COMMON EQUITY AND RESERVES) |
|
0.4 |
% |
|
|
0.7 |
% |
|
|
3.4 |
% |
|
|
|
|
|
|
(5) These loans were, as of the respective dates indicated,
expected to be either satisfied, made current or re-financed in the
near future, and were not expected to result in any loss of
contractual principal or interest. These loans are not included in
non-performing loans. |
(6) See "Non-GAAP Reconciliation" table for
reconciliation of tangible common equity and tangible assets. |
|
|
|
|
|
|
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
NON-GAAP RECONCILIATION |
(Dollars in thousands except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended |
|
For the Year Ended |
|
December
31, |
|
September
30, |
|
December
31, |
|
December
31, |
|
December
31, |
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Reconciliation of Reported and Adjusted ("non-GAAP") Net
Income: |
|
|
|
|
|
|
|
|
|
Reported net
income |
$ |
12,440 |
|
|
$ |
11,782 |
|
|
$ |
15,423 |
|
|
$ |
51,288 |
|
|
$ |
51,882 |
|
Adjustments to Net Income (1): |
|
|
|
|
|
|
|
|
|
Add:
Severance payment |
|
496 |
|
|
|
- |
|
|
|
- |
|
|
|
496 |
|
|
|
- |
|
Add: Loss from
extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
698 |
|
Add: De-conversion
costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
946 |
|
Less: Gain on sale of
securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(930 |
) |
|
|
(1,430 |
) |
Less:
After tax gain on the sale of real estate |
|
- |
|
|
|
- |
|
|
|
(5,724 |
) |
|
|
- |
|
|
|
(5,724 |
) |
Tax adjustment |
|
(716 |
) |
|
|
(104 |
) |
|
|
3,135 |
|
|
|
(912 |
) |
|
|
2,150 |
|
Adjusted
("non-GAAP") net income |
$ |
12,220 |
|
|
$ |
11,678 |
|
|
$ |
12,834 |
|
|
$ |
49,942 |
|
|
$ |
48,522 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Ratios (Based upon "non-GAAP Net Income" as
calculated above): |
|
|
|
|
|
|
|
|
Adjusted
EPS (Diluted) |
$ |
0.34 |
|
|
$ |
0.32 |
|
|
$ |
0.34 |
|
|
$ |
1.35 |
|
|
$ |
1.29 |
|
Adjusted
return on average assets |
|
0.78 |
% |
|
|
0.75 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.78 |
% |
Adjusted
return on average common equity |
|
8.10 |
|
|
|
7.64 |
|
|
|
8.66 |
|
|
|
8.22 |
|
|
|
8.36 |
|
Adjusted
return on average tangible common equity |
|
8.92 |
|
|
|
8.41 |
|
|
|
9.56 |
|
|
|
9.05 |
|
|
|
9.25 |
|
Adjusted
non-interest expense to average assets |
|
1.41 |
|
|
|
1.39 |
|
|
|
1.41 |
|
|
|
1.37 |
|
|
|
1.32 |
|
Adjusted
efficiency ratio |
|
56.12 |
|
|
|
58.13 |
|
|
|
55.63 |
|
|
|
55.77 |
|
|
|
51.37 |
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
September 30, |
|
December
31, |
|
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
Reconciliation of Tangible Assets: |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
6,320,578 |
|
|
$ |
6,294,193 |
|
|
$ |
6,403,460 |
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
55,638 |
|
|
|
55,638 |
|
|
|
55,638 |
|
|
|
|
|
Tangible
assets |
$ |
6,264,940 |
|
|
$ |
6,238,555 |
|
|
$ |
6,347,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Tangible Common Equity -
Consolidated: |
|
|
|
|
|
|
|
|
|
Total
common equity |
$ |
602,081 |
|
|
$ |
603,577 |
|
|
$ |
598,567 |
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
55,638 |
|
|
|
55,638 |
|
|
|
55,638 |
|
|
|
|
|
Tangible
common equity |
$ |
546,443 |
|
|
$ |
547,939 |
|
|
$ |
542,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments to net income are taxed at the company's
statutory tax rate of approximately 32% for 2018 and 45% for 2017,
unless otherwise noted. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dime Community Bancshares (NASDAQ:DCOM)
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