Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime” or “its”), the parent company of Dime Community Bank (the “Bank”), today reported net income to common stockholders of $14.0 million for the quarter ended September 30, 2020, or $0.42 per diluted common share, compared with net income to common stockholders of $11.8 million for the quarter ended June 30, 2020, or $0.35 per diluted common share, and net income to common stockholders of $4.7 million for the quarter ended September 30, 2019, or $0.13 per diluted common share.

Excluding the pre-tax impact of $0.8 million of merger related expenses and $0.2 million of income from gain on sale of securities, earnings per share (“EPS”) for the quarter ended September 30, 2020 would have been $0.44 per diluted share.

Mr. Kenneth J. Mahon, Chief Executive Officer (“CEO”) of the Company, stated, “Third quarter of 2020 EPS of $0.44 (on a core basis) represents a record for Dime in our history as a publicly traded company. We had solid growth in our loan portfolio and continued net interest margin expansion. In addition, expenses remained well controlled and non-performing assets declined. Our earnings profile and robust capital base helps position us well to serve our customers and communities, our employees and investors. Our merger integration teams are making good progress on the previously announced transaction with Bridge Bancorp, Inc. We are well on our way to create a foundational franchise that has the opportunity to become one of the elite regional bank competitors in New York and on Long Island.”

Highlights for the Third Quarter of 2020 Included:

  • Linked quarter net interest margin (“NIM”) expansion of 6 basis points primarily driven by a 28 basis point linked quarter decrease in the cost of deposits;
  • Strong growth in checking account balances. Compared to the third quarter of 2019, the sum of average non-interest-bearing checking account balances and average interest-bearing checking account balances for the third quarter of 2020 increased by 61.1% to $894.1 million;
  • The efficiency ratio declined to 49.0% in the third quarter of 2020;
  • Total non-interest income increased by 83% on a year-over-year basis to $6.1 million, driven by $1.5 million of customer-related loan level swap income, $0.8 million of income from the sale of Small Business Administration (“SBA”) loans, and $0.6 million from the sale of residential mortgage loans;
  • Capital levels remain strong; our tangible equity to tangible assets ratio was 9.73% at September 30, 2020 (see “Non-GAAP Reconciliation” tables at the end of this news release). Excluding the impact of SBA Paycheck Protection Program (“PPP”) loans, the ratio would have been 10.22%; and
  • Non-performing assets declined by 19.2% on a linked quarter basis and represent only 0.19% of total assets.

Loans with Payment Deferrals

The Company is seeing positive trends as an increasing number of loans exit deferment.

As of September 30, 2020, Principal and Interest (“P&I”) deferrals decreased to $272.0 million or 4.9% of the total loan portfolio. Furthermore, an additional 1.1% of our portfolio is currently comprised of loans that are paying full interest and escrow, and only deferring principal payments.

($ in millions) As of September 30, 2020
                   
  Total Loan Portfolio   P&I Deferrals
              % of Loan    
  Balance   LTV   Balance   Category   LTV
One-to-four family and coop/condo $ 184.8   51.9 %   $ 8.8   4.7 %   55.2 %
Multifamily residential and residential mixed-use   2,915.0   51.7       192.3   6.6     60.5  
Commercial mixed-use   362.0   46.4       16.1   4.4     51.4  
                   
Pure commercial real estate (“CRE”):                  
Retail   309.7   53.4       13.4   4.3     65.8  
Office   322.1   61.1       10.5   3.3     56.7  
Hotels   171.4   65.7       -   -     -  
Warehouse   134.3   64.6       -   -     -  
Single Tenant   80.8   45.4       8.9   11.1     50.9  
Shopping Center   79.7   43.3       -   -     -  
Industrial   65.1   60.9       -   -     -  
All Other   147.8   56.1       10.1   6.8     43.5  
Total Pure CRE   1,310.9   56.6       42.9   3.3     55.2  
                   
Acquisition, Development, and Construction   151.9   n/a       -   -     -  
                    -  
Commercial and industrial (“C&I”)   650.0   n/a       12.0   1.9     n/a  
Other Loans   1.4   n/a       -   -     -  
                   
Total $ 5,576.0       $ 272.0   4.9 %    
                   
Note: Loan balances exclude deferred fees and costs.

As of September 30, 2020, the Company had 15 loans aggregating $25.6 million to restaurants. As of September 30, 2020, there were no loans with P&I deferrals to restaurants. The Company does not have any exposure to the energy industry, airline industry, leveraged lending, shared national credits, credits card loans, or auto loans.

Mr. Mahon commented, “We are encouraged by the positive trends we are seeing across our loan portfolio. The multigenerational nature of our multifamily borrower base, coupled with the low loan-to-value (“LTV”) nature of our multifamily portfolio (weighted average LTV of approximately 51.7% at September 30, 2020) and our capital strength and earnings profile provides me confidence in our prospects.”

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income in the third quarter of 2020 was $44.9 million, an increase of $1.4 million (3.2%) from the second quarter of 2020 and an increase of $8.7 million (24.2%) from the third quarter of 2019. The table below provides a reconciliation of the reported NIM and the NIM excluding the impact of loan prepayment fees.

($ in millions) Q3 2020 Q2 2020 Q3 2019
NIM   2.92 %   2.86 %   2.34 %
Net Interest Income $ 44,944   $ 43,556   $ 36,196  
Income from Loan Prepayment Activity $ 524   $ 1,737   $ 830  
Net Interest Income Excluding Prepayment Fee Income $ 44,399   $ 41,819   $ 35,366  
NIM, Excluding Prepayment Fee   2.88 %   2.75 %   2.28 %

Mr. Mahon commented, “Our NIM (excluding the impact of prepayment fees) has now increased for eight consecutive quarters. Our successful business model transformation (from thrift to commercial bank) continues to produce the expected trends on NIM.”

Average interest-earning assets were $6.16 billion for the third quarter of 2020, a 4.8% (annualized) increase from $6.09 billion for the second quarter of 2020, and a 0.4% decrease from $6.19 billion for the third quarter of 2019. For the third quarter of 2020, the average yield on interest-earning assets was 3.72%, a decrease of 13 basis points compared with the second quarter of 2020, and a decrease of 17 basis points compared to the third quarter of 2019. The linked quarter decline in yield was primarily attributable to a decline in income from loan prepayment activity.

The ending weighted average rate (“WAR”) on the total loan portfolio was 3.76% at September 30, 2020, a one basis point decline compared to the ending WAR on the total loan portfolio at June 30, 2020, and a 26 basis point decrease versus the ending WAR on the total loan portfolio at September 30, 2019. The WAR on the total loan portfolio as of September 30, 2020 was negatively impacted by PPP loans ($318.6 million of loans at September 30, 2020). Excluding the impact of PPP loans, the WAR on the loan portfolio was 3.94% at September 30, 2020, compared to 3.94% at June 30, 2020, and 4.02% at September 30, 2019.

The average cost of borrowed funds (which primarily consist of Federal Home Loan Bank advances) was 1.98% for the third quarter of 2020, a decrease of 2 basis points versus the second quarter of 2020, and a decrease of 41 basis points versus the third quarter of 2019.

Loans

The real estate loan portfolio increased by $122.1 million (10.2% annualized) during the third quarter of 2020. Total real estate loan originations were $277.7 million during the third quarter of 2020, at a weighted average interest rate of 3.53%. Real estate loan amortization and satisfactions totaled $113.9 million, or 9.4% (annualized) of the portfolio balance, at an average rate of 3.65%. The annualized real estate loan payoff rate of 9.4% for the third quarter of 2020 was lower than both the second quarter of 2020 (23.1% annualized) and the third quarter of 2019 (15.1% annualized).

Average real estate loans were $4.87 billion in the third quarter of 2020, flat compared to the second quarter of 2020, and a decrease of $314.2 million (6.1%) from the third quarter of 2019.

Average C&I loans were $643.4 million in the third quarter of 2020 (including average SBA PPP loans of $316.7 million), an increase of $124.4 million (95.9% annualized) from the second quarter of 2020, and an increase of $330.9 million (105.9%) from the third quarter of 2019.

Outlined below are the loan originations for the current quarter, linked quarter and prior year quarter.

($s in millions) Originations/ Weighted Average Rate
  Q3 2020 Q2 2020 Q3 2019
Real Estate Originations $277.7/3.53% $208.8/2.91% $166.0/4.93%
C&I Originations $41.2/4.93% $15.0/4.19% $26.5/6.07%
SBA PPP Originations $7.1/1.00% $319.4/1.00% n/a

Deposits and Borrowed Funds

The Company continues to focus on growing relationship-based business deposits. Mr. Mahon commented, “Importantly, we continue to improve the quality of our deposit base, as evidenced by the non-interest- bearing deposits to total deposits ratio increasing to approximately 15.1% at September 30, 2020, compared to 9.5% at September 30, 2019.”

Total deposits decreased by $65.9 million on a linked quarter basis to $4.37 billion at September 30, 2020. Mr. Mahon commented, “The decrease in total deposits was due to pro-active downward pricing adjustments on certain higher-cost deposit segments. We remain steadfast in our commitment to grow lower cost relationship based deposits.”

The cost of total deposits for the quarter ended September 30, 2020 decreased 28 basis points on a linked quarter basis. As of September 30, 2020, the Company had $483.3 million of certificates of deposits, with a weighted average rate of 1.03%, that were set to mature during the fourth quarter of 2020. Mr. Mahon commented, “Given the repricing opportunity for certificates of deposits in the fourth quarter of 2020, we expect our deposit costs to continue trending downwards.”

Total borrowings (excluding subordinated debt securities) increased to $1.20 billion at September 30, 2020, compared to $1.02 billion at the second quarter of 2020, and $1.20 billion at the third quarter of 2019.

Non-Interest Income

Non-interest income was $6.1 million during the third quarter of 2020, $8.4 million during the second quarter of 2020, and $3.4 million during the third quarter of 2019. Excluding gains and losses on equity securities and from sales of securities and other assets, non-interest income was $5.8 million during the third quarter of 2020 compared to $4.8 million during the second quarter of 2020 and $3.3 million during the third quarter of 2019.

Mr. Mahon commented, “Our commercial bank operation continues to produce the desired results on fee income growth, especially as it relates to gaining significant traction with our commercial customers on interest rate swap products. In addition, our business line diversification into SBA and residential lending produced strong gain-on-sale revenue.”

Non-Interest Expense Remains Well Controlled

Total non-interest expense was $24.9 million during the third quarter of 2020, $29.3 million during the second quarter of 2020, and $22.8 million during the third quarter of 2019. Excluding the impact of severance and merger-related expenses, non-interest expense was $24.1 million during the third quarter of 2020, $24.3 million during the second quarter of 2020, and $22.8 million during the third quarter of 2019.

The ratio of non-interest expense to average assets was 1.53% during the third quarter of 2020, compared to 1.84% during the linked quarter and 1.41% for the third quarter of 2019. Excluding the impact of severance and merger-related expenses, the ratio of non-interest expense to average assets was 1.48% during the third quarter of 2020, compared to 1.52% during the linked quarter and 1.41% for the third quarter of 2019.

The efficiency ratio was 49.0% during the third quarter of 2020, compared to 60.7% during the linked quarter and 57.7% during the third quarter of 2019. Excluding the impact of severance and merger-related expenses and gain on sale of securities, the efficiency ratio was 47.5% during the third quarter of 2020, compared to 50.3% during the linked quarter and 57.7% during the third quarter of 2019.

Income Tax Expense

The reported effective tax rate for the third quarter of 2020 was 21.9%, compared to 21.6% for the second quarter of 2020, and 15.3% for the third quarter of 2019.

Credit Quality

Non-performing loans at September 30, 2020 declined to $12.4 million, or 0.22% of total loans, compared to $15.4 million, or 0.28% of total loans, at June 30, 2020.

Under Section 4014 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act), financial institutions had the option to delay the adoption of the Current Expected Credit Loss (“CECL”) framework until the earlier of December 31, 2020 or when the national emergency is lifted. The Bank elected to defer adoption of CECL and is utilizing its existing incurred loss framework.

A loan loss provision of $5.9 million was recorded during the third quarter of 2020, compared to a loan loss provision of $6.1 million during the second quarter of 2020, and a loan loss provision of $11.2 million during the third quarter of 2019. The $5.9 million provision for the third quarter of 2020 was primarily associated with an increase in the general loan loss reserve due to the adjustment of qualitative factors tied to the Bank’s existing incurred loss framework, to account for the effects of the COVID-19 pandemic and related economic disruption.

The allowance for loan losses was 0.87% of total loans at September 30, 2020 as compared to 0.78% of total loans at June 30, 2020. Excluding $318.6 million of PPP loans, the ratio of allowance for losses to total loans at September 30, 2020 would have been 0.92%.

At September 30, 2020, non-performing assets represented 2.1% of the sum of tangible equity plus the allowance for loan losses and reserve for contingent liabilities (see “Problem Assets as a Percentage of Tangible Equity and Reserves” table and “Non-GAAP Reconciliation” table at the end of this news release).

Capital Management

The Company’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements. At September 30, 2020, the Consolidated Tier 1 capital to average assets (“leverage ratio”) was 10.10%, while the Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 13.02% and 16.30%, respectively.

The Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements. At September 30, 2020, the Bank’s leverage ratio was 9.97%, while the Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 12.88% and 13.87%, respectively.

Mr. Mahon commented, “Excluding the impact of the PPP loans, our tangible equity to tangible assets ratio would have been 10.22% at September 30, 2020; this is well above the previously communicated 9.25% minimum target for this ratio that we disclosed during our first quarter earnings call.”

Diluted earnings per common share of $0.42 exceeded the quarterly $0.14 cash dividend per share by 200.0% during the third quarter of 2020, equating to a 33.3% dividend payout ratio.

Book value per common share increased to $17.48 and tangible common book value per share (common equity less goodwill divided by number of shares outstanding) (see “Non-GAAP Reconciliation” tables at the end of this news release) increased to $15.79 at September 30, 2020.

Earnings Call Information

The Company will conduct a conference call at 8:00 a.m. (ET) on October 28, 2020, during which Chief Executive Officer, Kenneth J. Mahon, will discuss the Company’s third quarter performance, with a Q&A session to follow. Dial-in information for the live call is 1-888-348-2672. 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/dcom201028.html. Dial-in information for the replay is 1-877-344-7529 using access code #10148582. Replay will be available October 28, 2020 (10:00 a.m.) through November 4, 2020 (11:59 p.m.).

ABOUT DIME COMMUNITY BANCSHARES, INC. The Company had $6.62 billion in consolidated assets as of September 30, 2020. The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has 28 retail branches located throughout Brooklyn, Queens, the Bronx, Nassau 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 include statements regarding the proposed merger of the Company with Bridge Bancorp, Inc. (the “Merger”). 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. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results 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; unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in 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; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; 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; we may incur unexpected expenses and delays related to the Merger; or we may be unable to obtain regulatory approvals or satisfy other closing conditions required to complete the Merger. Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees increasingly work remotely.

Contact: Avinash Reddy Senior Executive Vice President – Chief Financial Officer 718-782-6200 extension 5909



DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands except share amounts)
                 
   September 30,       June 30,       December 31,    
   2020       2020       2019   
ASSETS:                
Cash and due from banks $ 147,283     $ 117,013     $ 155,488  
Mortgage-backed securities available-for-sale, at fair value 443,824     464,279     502,464  
Investment securities available-for-sale, at fair value 81,773     77,728     48,531  
Marketable equity securities, at fair value 5,759     5,707     5,894  
Real Estate Loans:                
One-to-four family and cooperative/condominium apartment 186,975     182,264     148,429  
Multifamily residential and residential mixed-use (1)(2) 2,919,186     2,988,511     3,385,375  
Commercial real estate and commercial mixed-use 1,675,488     1,504,020     1,350,185  
Acquisition, development, and construction ("ADC") 151,866     136,606     118,365  
Total real estate loans 4,933,515     4,811,401     5,002,354  
Commercial and industrial ("C&I") 323,972     321,009     336,412  
Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans 318,568     310,509     -  
Other loans 1,448     1,463     1,772  
Allowance for credit losses (48,492 )   (42,492 )   (28,441 )
Total loans, net 5,529,011     5,401,890     5,312,097  
Premises and fixed assets, net 20,539     21,423     21,692  
Premises held for sale -     -     514  
Loans held for sale 2,625     1,794     500  
Federal Home Loan Bank of New York ("FHLBNY") capital stock 57,305     52,305     56,019  
Bank Owned Life Insurance ("BOLI") 155,068     154,036     114,257  
Goodwill 55,638     55,638     55,638  
Operating lease assets 35,503     36,813     37,858  
Derivative assets 19,845     18,475     2,443  
Accrued Interest Receivable 33,774     27,506     18,891  
Other assets 31,444     32,914     22,174  
TOTAL ASSETS $ 6,619,391     $ 6,467,521     $ 6,354,460  
LIABILITIES AND STOCKHOLDERS' EQUITY:                
Deposits:                
Non-interest-bearing checking $ 658,297     $ 664,323     $ 478,549  
Interest-bearing checking 244,696     231,201     151,491  
Savings 403,262     406,771     374,265  
Money Market 1,708,757     1,742,563     1,705,451  
Sub-total 3,015,012     3,044,858     2,709,756  
Certificates of deposit 1,357,510     1,393,554     1,572,869  
Total Due to Depositors 4,372,522     4,438,412     4,282,625  
Escrow and other deposits 119,626     87,646     76,481  
FHLBNY advances 1,128,400     1,017,300     1,092,250  
Subordinated notes payable, net 114,016     113,979     113,906  
Other borrowings 70,000     5,000     110,000  
Operating lease liabilities 41,314     42,733     44,098  
Derivative liabilities 47,955     48,979     9,080  
Other liabilities 31,400     31,929     29,262  
TOTAL LIABILITIES 5,925,233     5,785,978     5,757,702  
STOCKHOLDERS' EQUITY:                
Preferred stock, Series A ($0.01 par, $25.00 liquidation value, 9,000,000 shares authorized, 5,299,200 shares                
shares issued and outstanding at September 30, 2020 and June 30, 2020, and none issued or outstanding at December 31, 2019) 116,569     116,569     -  
Common stock ($0.01 par, 125,000,000 shares authorized, 53,724,233 shares, 53,724,233 shares and 53,721,189 shares issued at                
September 30, 2020, June 30, 2020, and December 31, 2019, respectively, and 33,049,822 shares, 33,089,585 shares and 35,154,642              
shares outstanding at September 30, 2020, June 30, 2020, and December 31, 2019, respectively) 537     537     537  
Additional paid-in capital 278,580     278,581     279,322  
Retained earnings 601,913     592,497     581,817  
Accumulated other comprehensive loss, net of deferred taxes (11,539 )   (14,403 )   (5,940 )
Unearned equity awards (6,695 )   (7,549 )   (6,731 )
Common Stock held by the Benefit Maintenance Plan (1,496 )   (1,496 )   (1,496 )
Treasury stock, at cost (20,674,411 shares, 20,634,648 shares and 18,566,547 shares at September 30, 2020, June 30, 2020 and                
December 31, 2019, respectively) (283,711 )   (283,193 )   (250,751 )
TOTAL STOCKHOLDERS' EQUITY 694,158     681,543     596,758  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 6,619,391     $ 6,467,521     $ 6,354,460  
                 
(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 Nine Months Ended  
  September 30,   June 30,   September 30,     September 30,   September 30,  
  2020   2020   2019     2020   2019  
Interest income:                      
Loans secured by real estate $ 47,482   $ 49,058   $ 50,732     $ 146,657   $ 150,720  
Commercial and industrial ("C&I") loans 5,752   5,071   4,442     14,868   12,012  
Other loans 11   13   18     39   54  
Mortgage-backed securities 2,707   3,064   2,973     9,076   9,131  
Investment securities 715   582   626     1,718   1,616  
Other short-term investments 729   846   1,488     2,577   4,392  
Total interest  income 57,396   58,634   60,279     174,935   177,925  
Interest expense:                      
Deposits and escrow 6,672   9,700   16,582     28,298   47,870  
Borrowed funds 5,780   5,378   7,501     17,613   22,031  
Total interest expense 12,452   15,078   24,083     45,911   69,901  
Net interest income 44,944   43,556   36,196     129,024   108,024  
Provision for loan losses   5,931   6,060   11,228     20,003   11,100  
Net interest income after  provision for loan losses 39,013   37,496   24,968     109,021   96,924  
                       
Non-interest income:                      
Service charges and other fees 1,632   1,083   1,780     3,918   4,143  
Mortgage banking income, net 71   52   77     189   206  
Gain on equity securities 175   436   14     139   430  
Gain (loss) on sale of securities and other assets 215   3,134   66     3,357   (67 )
Gain on sale of loans 1,425   206   443     1,946   1,037  
Income from BOLI 1,033   911   723     3,831   2,124  
Loan level derivative income 1,544   2,494   197     5,201   488  
Other 54   70   61     190   180  
Total non-interest income 6,149   8,386   3,361     18,771   8,541  
Non-interest expense:                      
Salaries and employee benefits 13,512   14,719   12,948     43,077   36,893  
Severance pay -   3,930   -     4,000   -  
Stock benefit plan compensation expense 804   478   574     1,953   1,349  
Occupancy and equipment 4,046   3,959   3,970     12,061   11,666  
Data processing costs 2,146   2,007   1,803     6,177   5,777  
Marketing 134   136   466     667   1,397  
Federal deposit insurance premiums 761   529   (506 )   1,767   534  
Merger expenses 769   1,072   -     2,427   -  
Other 2,681   2,516   3,519     8,110   9,506  
Total non-interest expense 24,853   29,346   22,774     80,239   67,122  
                       
Income before taxes 20,309   16,536   5,555     47,553   38,343  
Income tax expense 4,441   3,570   850     10,327   9,102  
                       
Net income 15,868   12,966   4,705     37,226   29,241  
Preferred stock dividends 1,822   1,140   -     2,962   -  
Net income available to common stockholders $ 14,046   $ 11,826   $ 4,705     $ 34,264   $ 29,241  
                       
Earnings per Common Share ("EPS"):                       
Basic  $ 0.43   $ 0.36   $ 0.13     $ 1.02   $ 0.81  
Diluted  $ 0.42   $ 0.35   $ 0.13     $ 1.01   $ 0.81  
                       
Average common shares outstanding for Diluted EPS            32,907,696              33,243,700               35,769,461            33,628,210           35,866,059  
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 Nine Months Ended
  September 30,     June 30,     September 30,     September 30,     September 30,  
  2020     2020     2019     2020     2019  
Per Share Data:                            
Reported EPS (Diluted) $ 0.42     $ 0.35     $ 0.13     $ 1.01     $ 0.81  
Cash dividends paid per common share 0.14     0.14     0.14     0.42     0.42  
Book value per common share 17.48     17.07     16.94     17.48     16.94  
Tangible common book value per share (1) 15.79     15.39     15.39     15.79     15.39  
Dividend payout ratio 33.33 %   40.00 %   107.69 %   41.58 %   51.85 %
                             
Performance Ratios (Based upon Reported Net Income):                            
Return on average assets 0.98 %   0.81 %   0.29 %   0.78 %   0.61 %
Return on average equity 9.22     7.96     3.08     7.59     6.42 %
Return on average tangible equity (1) 10.03     8.71     3.39     8.27     7.07 %
Return on average tangible common equity (1) 10.88     9.23     3.39     8.76     7.07 %
Net interest spread 2.72     2.61     2.07     2.53     2.06 %
Net interest margin 2.92     2.86     2.34     2.79     2.34 %
Average interest-earning assets to average interest-bearing liabilities 125.10     124.97     118.38     123.68     118.70 %
Non-interest expense to average assets 1.53     1.84     1.41     1.68     1.40 %
Efficiency ratio 49.02     60.67     57.69     55.61     57.76 %
Loan-to-deposit ratio at end of period 127.56     122.67     124.86     127.56     124.86 %
CRE consolidated concentration ratio (2) 545.10     544.90     678.90     545.10     678.90 %
Effective tax rate 21.87     21.59     15.30     21.72     23.74 %
                             
Average Balance Data:                            
Average assets $ 6,492,173     $ 6,389,768     $ 6,446,382     $ 6,363,767     $ 6,400,652  
Average interest-earning assets 6,164,452     6,091,545     6,191,299     6,069,114     6,145,701  
Average loans 5,519,607     5,387,839     5,503,233     5,397,425     5,480,330  
Average deposits 4,421,090     4,413,182     4,416,143     4,337,594     4,378,729  
Average equity 688,396     651,319     610,487     654,104     607,238  
Average tangible equity (1) 632,758     595,681     554,849     600,048     551,600  
Average tangible common equity (1) 516,189     512,371     554,849     521,385     551,600  
                             
Asset Quality Summary:                            
Non-performing loans (excluding loans held for sale) $ 12,424     $ 15,383     $ 16,378     $ 12,424     $ 16,378  
Non-performing assets 12,424     15,383     16,378     12,424     16,378  
Loans delinquent 30 to 89 days at period end 16,826     6,278     139     16,826     139  
Net (recoveries) charge-offs (69 )   31     5,068     (48 )   5,588  
Non-performing assets/ Total assets 0.19 %   0.24 %   0.25 %   0.19 %   0.25 %
Non-performing loans/ Total loans 0.22     0.28     0.30     0.22     0.30  
Allowance for loan loss/ Total loans 0.87     0.78     0.50     0.87     0.50  
Allowance for loan loss/ Non-performing loans 390.31     276.23     166.65     390.31     166.65  
                             
Capital Ratios - Consolidated:                            
Tangible common equity to tangible assets (1) 7.95 %   7.94 %   8.69 %   7.95 %   8.69 %
Tangible equity to tangible assets (1) 9.73     9.76     8.69     9.73     8.69  
Tier 1 common equity ratio 10.69     10.69     10.62     10.69     10.62  
Tier 1 risk-based capital ratio 13.02     13.07     10.62     13.02     10.62  
Total risk-based capital ratio 16.30     16.29     13.33     16.30     13.33  
Tier 1 leverage ratio 10.10     10.11     8.76     10.10     8.76  
                             
Capital Ratios - Bank Only:                            
Tier 1 common equity ratio 12.88 %   12.97 %   11.86 %   12.88 %   11.86 %
Tier 1 risk-based capital ratio 12.88     12.97     11.86     12.88     11.86  
Total risk-based capital ratio 13.87     13.85     12.38     13.87     12.38  
Tier 1 leverage ratio 9.97     9.98     9.81     9.97     9.81  
                             
(1) See "Non-GAAP Reconciliation" table for reconciliation of tangible equity, 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
  September 30, 2020   June 30, 2020   September 30, 2019
        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 $ 4,874,780 $ 47,482   3.90 %   $ 4,867,970 $ 49,058   4.03 %   $ 5,188,967 $ 50,732   3.91 %
Commercial and industrial loans 643,383 5,752   3.58     518,999 5,071   3.91     312,472 4,442   5.69  
Other loans 1,444 11   3.16     870 13   5.98     1,794 18   4.01  
Mortgage-backed securities 435,920 2,707   2.48     468,705 3,064   2.61     432,071 2,973   2.75  
Investment securities 78,405 715   3.65     65,155 582   3.57     74,349 626   3.37  
Other short-term investments 130,520 729   2.23     169,846 846   1.99     181,646 1,488   3.28  
Total interest-earning assets 6,164,452 57,396   3.72 %   6,091,545 58,634   3.85 %   6,191,299 60,279   3.89 %
Non-interest-earning assets 327,721           298,223           255,083        
Total assets $ 6,492,173           $ 6,389,768           $ 6,446,382        
                                   
Liabilities and Stockholders' Equity:                                  
Interest-bearing liabilities:                                  
Interest-bearing checking accounts $ 241,248 $ 186   0.31 %   $ 222,694 $ 212   0.38 %   $ 125,310 $ 56   0.18 %
Money market accounts 1,696,297 1,858   0.44     1,656,394 2,495   0.61     1,845,594 6,883   1.48  
Savings accounts 405,582 170   0.17     404,389 305   0.30     341,170 158   0.18  
Certificates of deposit 1,425,083 4,458   1.24     1,511,598 6,688   1.78     1,674,478 9,485   2.25  
Total interest-bearing deposits 3,768,210 6,672   0.70     3,795,075 9,700   1.03     3,986,552 16,582   1.65  
FHLBNY advances 1,040,127 4,448   1.70     962,657 4,047   1.69     1,127,379 6,159   2.17  
Subordinated notes payable, net 113,992 1,330   4.64     113,955 1,330   4.69     113,845 1,330   4.64  
Other borrowings 5,283 2   0.12     2,747 1   0.15     2,337 12   1.99  
Borrowed Funds 1,159,402 5,780   1.98     1,079,359 5,378   2.00     1,243,561 7,501   2.39  
Total interest-bearing liabilities 4,927,612 12,452   1.01 %   4,874,434 15,078   1.24 %   5,230,113 24,083   1.83 %
Non-interest-bearing checking accounts 652,880           618,107           429,591        
Other non-interest-bearing liabilities 223,285           245,908           176,191        
Total liabilities 5,803,777           5,738,449           5,835,895        
Stockholders' equity 688,396           651,319           610,487        
Total liabilities and stockholders' equity $ 6,492,173           $ 6,389,768           $ 6,446,382        
Net interest income   $ 44,944           $ 43,556           $ 36,196      
Net interest spread       2.72 %         2.61 %         2.07 %
Net interest-earning assets $ 1,236,839           $ 1,217,111           $ 961,186        
Net interest margin       2.92 %         2.86 %         2.34 %
Ratio of interest-earning assets to interest-bearing liabilities   125.10 %         124.97 %         118.38 %    
                                   
Deposits (including non-interest-bearing checking accounts) $ 4,421,090 $ 6,672   0.60 %   $ 4,413,182 $ 9,700   0.88 %   $ 4,416,143 $ 16,582   1.49 %
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF LOAN COMPOSITION AND WEIGHTED AVERAGE RATES ("WAR") (1)
(Dollars in thousands)
                       
  At September 30, 2020   At June 30, 2020   At September 30, 2019
  Balance WAR     Balance WAR     Balance WAR  
Loan balances at period end:                      
One-to-four family residential, including condominium and cooperative apartment $ 186,975 3.97 %   $ 182,264 3.98 %   $ 134,361 4.38 %
Multifamily residential and residential mixed-use (2)(3) 2,919,186 3.77     2,988,511 3.77     3,608,156 3.72  
Commercial real estate and commercial mixed-use 1,675,488 4.00     1,504,020 4.06     1,333,763 4.31  
Acquisition, development, and construction ("ADC") 151,866 5.04     136,606 5.08     95,767 6.00  
Total real estate loans 4,933,515 3.90     4,811,401 3.91     5,172,047 3.93  
Commercial and industrial ("C&I") 323,972 4.49     321,009 4.39     309,593 5.46  
Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans 318,568 1.00     310,509 1.00     - -  
Total $ 5,576,055 3.76 %   $ 5,442,919 3.77 %   $ 5,481,640 4.02 %
                       
(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)
   
   
  At September 30,   At June 30,   At September 30,
  2020   2020   2019
Non-Performing Loans          
One-to-four family residential, including condominium and cooperative apartment $ 867   $ 819   $ 1,161
Multifamily residential and residential mixed-use (1)(2) 1,213   1,377   153
Commercial real estate and commercial mixed-use real estate (2) 47   3,003   63
C&I 10,287   10,176   15,000
Other 10   8   1
Total Non-Performing Loans (3) $ 12,424   $ 15,383   $ 16,378
Total Non-Performing Assets $ 12,424   $ 15,383   $ 16,378
           
Performing TDR Loans          
One-to-four family and cooperative/condominium apartment $ -   $ -   $ 9
Total Performing TDRs $ -   $ -   $ 9
           
(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 were no non-accruing TDRs for the periods indicated.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE EQUITY AND RESERVES
(Dollars in thousands)
 
  At September 30,     At June 30,     At September 30,  
  2020     2020     2019  
Total Non-Performing Assets $ 12,424     $ 15,383     $ 16,378  
Loans 90 days or more past due on accrual status (4) 1,939     3,691     380  
TOTAL PROBLEM ASSETS $ 14,363     $ 19,074     $ 16,758  
                 
Tangible equity  (5) $ 638,520     $ 625,905     $ 553,266  
Allowance for loan losses and reserves for contingent liabilities 48,517     42,517     27,319  
TANGIBLE EQUITY PLUS RESERVES $ 687,037     $ 668,422     $ 580,585  
                 
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE EQUITY AND RESERVES 2.1 %   2.9 %   2.9 %
                 
(4) 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.
(5) 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 Nine Months Ended
  September 30,     June 30,     September 30,     September 30,     September 30,  
  2020     2020     2019     2020     2019  
Reconciliation of Reported and Adjusted ("non-GAAP") Net Income:                            
Reported net income $                 15,868     $             12,966     $                 4,705     $                  37,226     $                   29,241  
Adjustments to net income, net of tax (1):                            
Add: Merger expenses (2) 617     879     -     1,994     -  
Add: Severance -     2,686     -     2,734     -  
Less: Loss (Gain) on sale of securities (147 )   (2,142 )   (45 )   (2,294 )   46  
Adjusted ("non-GAAP") net income $                 16,338     $             14,389     $                 4,660     $                  39,660     $                   29,287  
                             
Adjusted Ratios (Based upon "non-GAAP Net Income" as calculated above):                            
Adjusted EPS (Diluted) $ 0.44     $ 0.40     $ 0.13     $ 1.09     $ 0.82  
Adjusted return on average assets 1.01 %   0.90 %   0.29 %   0.83 %   0.61 %
Adjusted return on average equity 9.49     8.84     3.05     8.08     6.43  
Adjusted return on average tangible equity 10.33     9.66     3.36     8.81     7.08  
Adjusted return on average tangible common equity 11.25     10.34     3.36     9.38     7.08  
Adjusted non-interest expense to average assets 1.48     1.52     1.41     1.55     1.40  
Adjusted efficiency ratio 47.50     50.33     57.69     51.15     57.76  
                             
  September 30,     June 30,     September 30,              
  2020     2020     2019              
Reconciliation of Tangible Assets:                            
Total assets $            6,619,391     $       6,467,521     $         6,425,335              
Less:                            
Goodwill 55,638     55,638     55,638              
Tangible assets $            6,563,753     $       6,411,883     $         6,369,697              
                             
Reconciliation of Tangible Common Equity - Consolidated:                            
Total stockholders' equity $               694,158     $          681,543     $             608,904              
Less:                            
Goodwill 55,638     55,638     55,638              
Tangible equity 638,520     625,905     553,266              
                             
Less:                            
Preferred Stock, net 116,569     116,569     -              
Tangible common equity $               521,951     $          509,336     $             553,266              
                             
                             
(1)  Adjustments to net income are taxed at the Company's statutory tax rate of approximately 32% unless otherwise noted.
(2)  Certain merger expenses are non-taxable expense.
Dime Community Bancshares (NASDAQ:DCOM)
Historical Stock Chart
From Dec 2020 to Jan 2021 Click Here for more Dime Community Bancshares Charts.
Dime Community Bancshares (NASDAQ:DCOM)
Historical Stock Chart
From Jan 2020 to Jan 2021 Click Here for more Dime Community Bancshares Charts.