Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company"), the
parent company of The Dime Savings Bank of Williamsburgh ("Dime"),
today reported consolidated net income of $10.0 million, or 30
cents per diluted share, for the quarter ended June 30, 2010
compared to $9.5 million, or 28 cents per diluted share, for the
quarter ended March 31, 2010 and $6.9 million, or 21 cents per
diluted share, for the quarter ended June 30, 2009.
HIGHLIGHTS FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2010
-- Total assets increased by $34.3 million to $4.15 billion at
June 30, 2010, as the Company increased its liquidity position,
which will provide greater flexibility in managing its balance
sheet for the remainder of 2010.
-- Net interest margin was 3.35%, compared to 3.46% in the March 2010
quarter. The average cost of deposits declined 4 basis points to 1.33%
from 1.37% during the March 2010 quarter.
-- Total loan credit costs were $3.8 million, or 9 cents per share after
taxes.
-- The Bank disposed of $32.2 million of non-performing loans held either
in its own portfolio or its portfolio of loans sold to Fannie Mae with
recourse obligation.
-- The disposal of $14.4 million of non-performing portfolio loans led to
a decline in non-performing assets to $19.6 million, or 0.47% of total
assets at June 30, 2010. Loans sold to Fannie Mae with recourse that
were delinquent 90 days or more declined from $16.4 million to
$618,000.
-- The allowance for loan losses increased to 124.9% of non-performing
loans at June 30, 2010.
-- Loans delinquent between 30 and 89 days decreased to $11.1 million at
June 30, 2010 compared to $19.7 million at March 31, 2010.
-- Real estate loan originations were $113.5 million, down from the
$146.4 million level in the March 2010 quarter, as the Bank was more
selective in making additions to the portfolio in the last quarter
given the aggressive pricing that began to characterize the multifamily
market.
-- Despite the asset growth experienced during the most recent quarter,
the Company's consolidated ratio of tangible capital to tangible assets
grew to 6.46% at June 30, 2010 from 6.35% at March 31, 2010.
The Company's earnings for the quarter ended June 30, 2010
reflected an after-tax other-than-temporary impairment ("OTTI")
charge of approximately $279,000 on two pooled bank trust preferred
securities, an additional after-tax charge of $98,000 on the
write-down of other real estate owned ("OREO") properties, and a
non-recurring addition of $292,000 to income tax expense to adjust
the deferred income tax benefit previously applied to the OTTI
charges recognized on several equity mutual fund investments.
Partially offsetting these items was a gain of $263,000 on the sale
of some mutual fund equity holdings on which the Company recognized
an OTTI charge in early 2009. The Company's earnings for the
quarter ended March 31, 2010 reflected an after-tax OTTI charge of
approximately $91,000 on three pooled bank trust preferred
securities, and an additional after-tax charge of $125,000 on the
write-down of OREO properties. Partially offsetting these items was
an after-tax gain of $160,000 on the sale of some mutual fund
equity holdings on which the Company recognized an OTTI charge in
early 2009. The Company's earnings for the quarter ended June 30,
2009 reflected an after-tax OTTI charge of approximately $486,000
on pooled bank trust preferred securities.
According to Vincent F. Palagiano, Chairman and Chief Executive
Officer of the Company, "We remain quite pleased by the operating
fundamentals that produced a 35% increase in core earnings per
share during the June 2010 quarter compared with the same quarter
of 2009. While net interest margin fell during the most recent
quarter, it reflected both our ongoing efforts to grow Individual
Retirement Account ("IRA") balances, as well as our election to
temporarily retain new deposits in liquid cash balances. IRAs,
which are looked upon as a very stable source of funding, have
grown 50% over the past 12 months, and the liquid cash balances are
expected to be prudently deployed during the remainder of 2010,
thus serving to benefit the net interest margin for the remainder
of the year."
Mr. Palagiano continued, "Non-performing assets declined over
35% during the June 2010 quarter, and were less than one-half of
one percent of total assets at June 30, 2010. The Company resolved
its two largest problematic borrower relationships during the
quarter ended June 30, 2010. In addition, delinquency levels
appear, at present, to be stabilizing, providing further evidence
that credit costs should remain manageable for the remainder of the
year."
Dime's net interest margin decreased to 3.35% during the quarter
ended June 30, 2010. Asset growth during the most recent quarter
was achieved at significantly lower average spreads than the 3.23%
level experienced during the March 2010 quarter, as management
retained a significant portion of the $132.4 million in deposit
balances gathered during the first six months of 2010 in liquid
cash balances, earning a negative interest rate spread. Overall,
the net interest margin of 3.35% realized during the June 2010
quarter remained far more favorable than the levels experienced
from 2005 through 2008, as the Bank continued to benefit from
historically low short-term interest rates. The Bank expects to
deploy a significant portion of the $164.7 million cash position
held at June 30, 2010 in a manner that should help to benefit the
net interest margin during the remainder of 2010.
Commercial Real Estate and Dime's Business Model
The term "commercial real estate" ("CRE") encompasses a variety
of collateral types. Dime's loan portfolio is collateralized
primarily by multifamily apartment buildings in New York City,
widely considered the least risky type of CRE. Further, significant
portions of these multifamily apartment buildings are subject to
rent regulation. In New York City, where residential vacancy rates
are low and there is limited available space to construct new
buildings, rent regulation has had the affect of keeping regulated
apartment rents below market rates. This factor enhances the
intrinsic value of Dime's already low-risk collateral, and,
management believes, is the primary reason for the Company's low
level of non-performing assets and delinquent loans compared to the
wider generic asset class designated as CRE.
NET INTEREST INCOME
Net interest income was $33.2 million during the June 2010
quarter, up $439,000 from the March 2010 quarter. An increase of
$171.7 million in the average balance of interest earning assets
more than offset a decline of 7 basis points in the net interest
spread between the yield on the Bank's interest earning assets and
the average cost of its interest bearing liabilities, accounting
for the growth in net interest income.
Net interest income exceeded the June 2009 quarterly level by
$6.9 million, driven by growth of 57 basis points in net interest
margin from the quarter ended June 30, 2009 to the quarter ended
June 30, 2010, reflecting declines of 71 basis points and 38 basis
points in the average cost of deposits and borrowings,
respectively, during the period.
Mr. Palagiano commented, "As we signaled in our previous
release, despite continued reductions in funding costs, the growth
in cash balances earning virtually no income served to reduce the
net interest margin experienced during the second quarter of 2010.
As we deploy these liquid funds during the remainder of 2010, we
anticipate that the net interest margin, which remains at a
historically favorable level, will improve."
PROVISION/ALLOWANCE FOR LOAN LOSSES AND PROBLEM PORTFOLIO
LOANS
Non-performing loans were $18.7 million at June 30, 2010
compared to $29.5 million at March 31, 2010 and $12.9 million at
June 30, 2009. As a percentage of total loans, non-performing loans
totaled 0.54% at June 30, 2010, compared to 0.85% at March 31, 2010
and 0.40% at June 30, 2009. Loans delinquent between 30 and 89 days
declined during the most recent quarter to $11.1 million as of June
30, 2010 from $19.7 million at March 31, 2010. Loans delinquent
between 30 and 89 days totaled $17.6 million at June 30, 2009.
Charge-offs recorded on problem loans totaled $5.0 million
during the June 2010 quarter, compared to $769,000 in the March
2010 quarter and $528,000 in the June 2009 quarter. Approximately
$4.0 million, or nearly 80% of the total charge-offs experienced
during the June 2010 quarter, related to the resolution of five
non-performing loans held by an individual borrower. Write-downs of
principal or escrow balances on two additional problem borrower
relationships accounted for $726,000 of the remaining $1.0 million
of charge-offs experienced during the June 2010 quarter.
The Company recorded a $3.8 million provision to its allowance
for loan losses during the quarter ended June 30, 2010, compared to
$3.4 million during the quarter ended March 31, 2010. A portion of
the $3.8 million provision recognized during the most recent
quarter related to the charge-offs recognized on the resolution of
problem loans during the quarter, while the majority reflected
increases to losses deemed likely to be realized on both existing
and newly added non-performing loans. Provisions totaled $2.3
million during the quarter ended June 30, 2009. Since the Company
had previously provided for a significant portion of the
charge-offs experienced in the most recent quarter, charge-offs
exceeded the $3.8 million provision during the June 2010
quarter.
Mr. Palagiano stated, "The sequential quarterly decline in
non-performing loans reflected our continued commitment to both
recognize likely potential losses on problem loans in a timely
manner, and dispose of problematic loans prudently and
expeditiously. While the increase in charge-offs resulted in an
increase in loan credit costs from the March 2010 quarter to the
June 2010 quarter, we are pleased to have resolved our two largest
problem borrower relationships during the most recent quarter and
to see our allowance for loan losses once again exceed 100% of our
non-performing loans at June 30, 2010."
The timing and severity of charge-offs are unpredictable. At
June 30, 2010, the allowance for loan losses was $23.4 million, or
125% of non-performing loans.
NON-INTEREST INCOME
OTTI, Gain on the Sale of Other Assets, and Gains on Trading
Assets
During the quarter ended June 30, 2010, the pre-tax credit
component of OTTI charges totaled $508,000, compared to $166,000
during the previous linked quarter. At June 30, 2010, six of Dime's
eight trust preferred securities were deemed to meet the criteria
for OTTI. The increase in the credit component of OTTI charges
primarily reflected an increase in payment deferrals during the
June 2010 quarter within the collateral pool underlying one of
Dime's eight trust preferred collateralized debt obligation
securities.
At June 30, 2010, Dime had failed to receive contractual
principal or interest payments on two trust preferred securities
with an aggregate recorded balance of $593,000 ($2.3 million
excluding $1.7 million of unrealized losses included in accumulated
other comprehensive loss). Both securities are classified as
non-performing assets. In addition at June 30, 2010, Dime did not
receive a small portion of the interest due on two trust preferred
securities having an aggregate recorded balance of $243,000
($547,000 excluding the $304,000 total non-credit component of
OTTI). The remaining four trust preferred securities, with a total
cost basis of $10.2 million net of credit-related OTTI, are current
on all contractual obligations.
During the March 2010 quarter, the Company transferred $1.4
million of mutual fund investments earmarked for the future
settlement of certain benefits earned under the Company's Benefit
Maintenance Plan ("BMP") from available for sale to trading, moving
a pre-tax gain of $242,000 from other comprehensive income into
reported earnings as a result of the transfer. The Company
recognized losses of $66,000 on the trading securities during the
quarter ended June 30, 2010, which were fully offset by a reduction
in a component of BMP benefits expense.
During the June 2010 quarter, the Company elected to change some
of the BMP earmarked mutual fund investments. As a result of this
election, the Company recognized net gains of $263,000 on the sale
of $2.1 million of BMP earmarked mutual funds. The sales proceeds
were fully deployed into the purchase of the newly elected BMP
earmarked mutual funds.
During the three months ended March 31, 2010, the Company sold
mutual funds totaling $769,000, recognizing a pre-tax gain of
$327,000 on the sale. This gain represented a recovery from the
cost basis of these mutual funds subsequent to the recognition of
OTTI charges during the March 2009 quarter.
During the quarter ended June 30, 2010, the Company sold an OREO
property at its recorded balance. During the quarter ended June 30,
2009, Dime sold a property held as OREO recognizing a pre-tax loss
of $92,000 on the sale. The Company recognized pre-tax write-downs
of OREO totaling $157,000 and $200,000, respectively, during the
quarters ended June 30, 2010 and March 31, 2010. These write-downs,
which are reflected in non-interest expense, were deemed warranted
in order to reduce the recorded balance of OREO to their likely
disposal value.
Mortgage Banking Income and Delinquent Serviced Loans
During the quarter ended June 30, 2010, the Company sold two
multifamily loans totaling $11.6 million to a third party financial
institution without recourse, recognizing a pre-tax gain of
$121,000 on the sale. Otherwise, loan sales were negligible during
the quarters ended June 30, 2010 and March 31, 2010 and were
limited to one- to four-family residential mortgage loans. During
the June 2009 quarter, Dime sold an 80% participation in
approximately $124 million of multifamily loans from its portfolio
to a third-party financial institution other than Fannie Mae. The
loans were sold at par and without recourse, and Dime recognized a
pre-tax gain of approximately $635,000 ($0.01 per share after tax)
on the sale, which was reflected in core earnings for the June 2009
quarter.
Mortgage banking income totaled $303,000 and $211,000 during the
quarters ended June 30, 2010 and March 31, 2010, respectively. The
increase from the March 2010 quarter to the June 2010 quarter
primarily reflected the aforementioned $121,000 gain recognized on
the sale of the two multifamily loans during the June 2010 quarter.
Mortgage banking income totaled $856,000 during the quarter ended
June 30, 2009, reflecting the aforementioned $635,000 gain as well
as approximately $200,000 in servicing fee income.
From December 2002 through February 2009, Dime sold
approximately $660 million of multifamily loans to Fannie Mae with
a recourse obligation. This portfolio had an outstanding remaining
principal balance of $404.5 million at June 30, 2010.
Within the Fannie Mae portfolio, loans delinquent 90 days or
more were $618,000 at June 30, 2010 compared to $16.4 million at
March 31, 2010. During the quarter ended June 30, 2010, Dime
disposed of five non-performing loans within this portfolio
totaling $14.2 million. At June 30, 2010, there were $2.9 million
of loans delinquent between 30 and 89 days within the pool of loans
serviced for Fannie Mae, compared to $4.6 million at March 31,
2010. At June 30, 2009, there were $1.8 million of loans delinquent
90 days or more, and $17.2 million of loans delinquent between 30
and 89 days within the pool of loans serviced for Fannie Mae.
Dime's first loss position for loans sold to Fannie Mae was
$18.7 million as of June 30, 2010, against which a reserve of $3.0
million existed on that date. This reserve approximated 0.74% of
the remaining principal balance of loans in the Fannie Mae pool as
of June 30, 2010, and probable losses related to the entire
remaining pool of loans sold with recourse to Fannie Mae are
reflected in the $3.0 million reserve balance. Additions to the
reserve for the first loss position are charged against mortgage
banking (non-interest) income.
Other Components of Non-Interest Income
Other components of non-interest income totaled $2.4 million
during the quarter ended June 30, 2010, an increase of $550,000
from $1.9 million during the March 2010 quarter and up $467,000
from the June 2009 quarter. The increases from both the March 2010
and June 2009 quarters resulted from an increase of $409,000 in
rental income on leased properties, as the Company modified the
income recognition on these leased properties from strictly cash
basis to a straight line accrual methodology.
NON-INTEREST EXPENSE
Non-interest expense was $15.8 million during the quarter ended
June 30, 2010, a slight increase from the March 2010 quarter.
During the June 2010 quarter, the stock benefit plan portion of
compensation and benefits expense increased $125,000 as a result of
new stock awards granted in April 2010. Occupancy and equipment
increased $390,000 primarily as a result of the full transition of
operating lease rental expense from a strictly cash basis to a
straight line accrual methodology. Offsetting this increase was a
one-time adjustment during the quarter ended March 31, 2010, of
approximately $460,000 to the manner of expense recognition on a
component of the Company's BMP.
Compared to the June 2009 quarter, non-interest expense
increased $466,000 during the quarter ended June 30, 2010, due
primarily to increases of $904,000 in compensation and benefits,
$766,000 in occupancy and equipment expense and $567,000 in other
expenses, that were partially offset by a $1.8 million special FDIC
insurance assessment recognized during the June 2009 quarter. The
increase in compensation and benefits expense reflected ongoing
staff salary increases, new stock plan awards made in April 2010
and an adjustment of approximately $350,000 related to revised
actuarial valuations on the defined benefit costs associated with
both the Company's Employee Retirement Plan and BMP. The growth in
occupancy and equipment expense was primarily attributable to
increased rental expense on leased branches, reflecting both the
aforementioned transition of expense recognition as well as two
additional lease agreements that commenced in 2010. The growth in
other expenses primarily reflected higher marketing costs of
$412,000.
INCOME TAX EXPENSE
The Company's customary consolidated effective tax rate
approximates 37%, and approximated such during the quarter ended
June 30, 2010. During the three months ended March 31, 2010, the
Company recognized gains totaling $569,000 on both the sale of
mutual funds and the transfer of mutual funds into trading. From a
tax perspective, since: (i) these events triggered the reversal of
deferred tax assets previously recognized when the Company recorded
OTTI charges in March 2009; and (ii) the deferred tax assets on the
OTTI charges were established at a long-term rate approximating 45%
(significantly in excess of the current consolidated 37% tax rate),
their reversal created a higher effective tax rate of 41.3% during
the March 2010 quarter. The Company recorded an adjustment of
$291,000 to income taxes during the June 2010 quarter, that
effectively reduced the deferred tax benefit associated with the
OTTI charges on the mutual fund investments from the 45% long-term
rate to the current 37% consolidated income tax rate. The impact of
the OTTI charges on the pooled trust preferred securities reduced
the book income tax rate below the customary consolidated rate for
the quarter ended June 30, 2009 to 35%.
BALANCE SHEET
Total assets increased $34.4 million, to $4.15 billion, from
March 31, 2010 to June 30, 2010. The increase in assets was
experienced primarily in cash and due from banks, as management
elected to maintain additional liquidity that it expects to utilize
prudently during the remainder of 2010.
Total liabilities increased by $28.2 million during the most
recent quarter, as a result of the addition of $127.2 million in
deposits. The growth in deposits was achieved in both money market
accounts and certificates of deposit ("CDs"). Mortgagor escrow
balances decreased $21.5 million during the most recent quarter as
a result of semi-annual payments made by Dime on the behalf of
borrowers during the 2nd and 4th quarters of each year. In May
2010, the Company also repaid its maturing $25.0 million
subordinated note originally issued in 2000. This note carried a
contractual coupon of 9.25%. The Company also repaid $44.2 million
of maturing FHLBNY advances with a weighted average cost of 3.69%,
electing not to replace them during the June 2010 quarter as a
result of the deposit inflows experienced.
Real Estate Lending and Loan Amortization
Real estate loan originations, which were $146.4 million during
the March 2010 quarter, totaled $113.5 million during the quarter
ended June 30, 2010 and $111.4 million during the quarter ended
June 30, 2009. The average rate on real estate loan originations
during the June 2010 quarter was 5.52%, compared to 5.60% during
the quarter ended March 31, 2010 and 6.08% during the quarter ended
June 30, 2009.
Real estate loan amortization approximated 13% of the real
estate loan portfolio on an annualized basis during the quarter
ended June 30, 2010, up from 9% during each of the quarterly
periods ended March 31, 2010 and June 30, 2009. The increase in the
amortization rate reflected growth in refinancing activity on loans
approaching their contractual repricing date.
Deposits
Deposits increased $127.2 million from March 31, 2010 to June
30, 2010. Core deposits (i.e., non-CDs) grew $68.9 million during
this period fueled by an additional $56.8 million of money market
balances. CDs increased $58.3 million during the three months ended
June 30, 2010, due primarily to the success of a promotional
deposit gathering program on 15-month IRA CDs. As a result of a
multi-year effort, IRA deposits increased from $106.5 million, or
5.30% of total deposits, as of December 31, 2006, to $262.0
million, or 10.7% of total deposits, at June 30, 2010.
During the June 2010 quarter, the rates required by depositors
on medium-term CDs as well as those available on medium term
advances from the FHLBNY remained well below the yields available
on the Bank's primary lending products, providing an opportunity
for the Bank to continue to extend the average duration of its
liabilities while maintaining its net interest margin at a
favorable level. Dime has extended the average duration of CDs from
approximately 8.6 months at June 30, 2009 to approximately 15.6
months at June 30, 2010. Depending upon continued favorable market
conditions, the mix of retail versus wholesale funding will be
managed opportunistically. Marketing efforts during the first six
months of 2010 continued to support sales of checking accounts and
medium-term CDs. While these promotional activities are expected to
continue, the significant liquidity level accumulated at June 30,
2010 should help management maintain pricing discipline on deposits
during the remainder of 2010.
During the most recent quarter, Dime opened its 24th retail
banking office, in Cedarhurst, New York. Despite adding the new
branch, average deposits per branch were $101.7 million at June 30,
2010, above the $100.5 million level at March 31, 2010, as well as
the $99.7 million level at June 30, 2009. Core deposits comprised
54% of total deposits at June 30, 2010, March 31, 2010 and June 30,
2009. The loan-to-deposit ratio was 142% at June 30, 2010,
unchanged from June 30, 2009 and down from 151% at March 31, 2010.
Dime's next de novo branch will be located in Garden City Park, New
York, and is anticipated to open in September 2010.
Stockholders' Equity
Stockholders' equity at June 30, 2010 totaled $314.7 million, or
7.59% of total assets, compared to $308.5 million, or 7.50% of
total assets, at March 31, 2010. After dividends, the Company's
tangible stockholders' equity increased to $264.1 million at June
30, 2010, from $257.6 million at March 31, 2010. The quarterly cash
dividend declared on July 22, 2010 represented a payout ratio of
47% of second quarter 2010 core earnings. At June 30, 2010, the
consolidated tangible stockholders' equity ratio was 6.46% of
tangible assets and tangible book value per share was $7.65.
The Company did not participate in the TARP program and thus has
no TARP capital.
There were no stock repurchases during the quarter ended June
30, 2010. As of June 30, 2010, the Company had an additional
1,124,549 shares remaining eligible for repurchase under its
twelfth stock repurchase program, approved in June 2007.
For the quarter ended June 30, 2010, the reported returns on
average stockholders' equity and average tangible equity were 12.8%
and 15.3%, respectively. The core returns on average stockholders'
equity and average tangible equity were 13.3% and 15.9%,
respectively. Core returns primarily exclude OTTI charges, gains on
the sale of securities, write-downs of OREO, other significant
non-recurring transactions and related income tax effects. Finally,
the core cash return on average tangible stockholders' equity (the
fundamental measure of new internally generated capital) was
17.1%.
OUTLOOK
The average cost of deposits decreased to 1.33% during the June
2010 quarter from 1.37% during the March 2010 quarter, as Dime
continued to take advantage of historically low short-term interest
rates to maintain pricing discipline on its deposits. Deposit
funding costs should remain at their historically low level for the
remainder of 2010.
Amortization rates (including prepayments and loan refinancing
activity), which approximated 13% on an annualized basis during the
most recent quarter, are expected to remain in the 10% to 15% range
during the third quarter of 2010.
Dime has no additional FDIC special assessments forecasted for
the third quarter of 2010.
At June 30, 2010, the loan commitment pipeline was approximately
$80.8 million, comprised primarily of multifamily residential
properties, with an approximate weighted average rate of 5.45%.
Operating expenses for the September 2010 quarter are expected
to approximate $15.2 million, assuming no further FDIC special
assessments or increases in deposit insurance premiums.
Loan credit costs were $3.8 million during the June 2010
quarter, $3.4 million during the March 2010 quarter, $4.0 million
during the December 2009 quarter and $2.3 million during the
September 2009 quarter. Management assumes that credit costs will
remain range bound for the near term, as the Bank continues its
practice of timely loss recognition and disposal of problematic
loans in both a judicious and expeditious manner.
ABOUT DIME COMMUNITY BANCSHARES
The Company (NASDAQ: DCOM) had $4.15 billion in consolidated
assets as of June 30, 2010, and is the parent company of Dime. Dime
was founded in 1864, is headquartered in Brooklyn, New York, and
currently has twenty-four branches located throughout Brooklyn,
Queens, the Bronx and Nassau County, New York. More information on
the Company and Dime can be found on the Dime's Internet 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,"
"could," "estimate," "expect," "intend," "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 Dime; 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; 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.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
June 30, December 31, March 31,
2010 2009 2010
----------- ----------- -----------
ASSETS:
Cash and due from banks $ 164,655 $ 39,338 $ 114,069
Investment securities held to
maturity 7,165 7,240 7,306
Investment securities available for
sale 40,956 43,162 53,193
Trading securities 1,329 - 1,390
Mortgage-backed securities available
for sale 184,723 224,773 200,610
Federal funds sold and other
short-term investments 45,455 3,785 5,847
Real Estate Loans:
One-to-four family and
cooperative apartment 123,434 131,475 128,146
Multifamily and underlying
cooperative (1) 2,469,271 2,377,278 2,477,963
Commercial real estate (1) 837,523 834,724 844,998
Construction and land acquisition 26,127 44,544 29,830
Unearned discounts and net
deferred loan fees 4,476 4,017 4,239
----------- ----------- -----------
Total real estate loans 3,460,831 3,392,038 3,485,176
----------- ----------- -----------
Other loans 4,211 3,221 2,551
Allowance for loan losses (23,350) (21,505) (24,620)
----------- ----------- -----------
Total loans, net 3,441,692 3,373,754 3,463,107
----------- ----------- -----------
Loans held for sale 692 416 -
Premises and fixed assets, net 30,491 29,841 29,897
Federal Home Loan Bank of New York
capital stock 53,068 54,083 54,983
Other real estate owned, net 350 755 707
Goodwill 55,638 55,638 55,638
Other assets 122,081 119,489 127,193
----------- ----------- -----------
TOTAL ASSETS $ 4,148,295 $ 3,952,274 $ 4,113,940
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Non-interest bearing checking $ 109,985 $ 106,449 $ 103,676
Interest Bearing Checking 106,226 114,416 109,199
Savings 314,747 302,340 305,955
Money Market 791,413 708,578 734,652
----------- ----------- -----------
Sub-total 1,322,371 1,231,783 1,253,482
----------- ----------- -----------
Certificates of deposit 1,117,444 985,053 1,059,128
----------- ----------- -----------
Total Due to Depositors 2,439,815 2,216,836 2,312,610
----------- ----------- -----------
Escrow and other deposits 77,699 65,895 99,187
Securities sold under agreements to
repurchase 195,000 230,000 195,000
Federal Home Loan Bank of New York
advances 1,020,525 1,009,675 1,064,675
Subordinated Notes Sold - 25,000 25,000
Trust Preferred Notes Payable 70,680 70,680 70,680
Other liabilities 29,849 39,415 38,248
----------- ----------- -----------
TOTAL LIABILITIES 3,833,568 3,657,501 3,805,400
----------- ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000
shares authorized, 51,151,115
shares and 51,131,784 shares issued
at June 30, 2010 and December 31, 2009,
respectively and 34,547,769 shares and
34,395,531 shares outstanding at
June 30, 2010 and December 31, 2009,
respectively) 511 511 511
Additional paid-in capital 223,802 214,654 223,046
Retained earnings 317,088 306,787 311,748
Unallocated common stock of Employee
Stock Ownership Plan (3,586) (3,701) (3,644)
Unearned common stock of Restricted
Stock Awards (3,573) (2,505) (2,114)
Common stock held by the Benefit
Maintenance Plan (7,979) (8,007) (7,979)
Treasury stock (16,603,346 shares
and 16,736,253 shares at June 30,
2010, and December 31, 2009,
respectively) (206,259) (207,884) (208,036)
Accumulated other comprehensive
loss, net (5,277) (5,082) (4,992)
----------- ----------- -----------
TOTAL STOCKHOLDERS' EQUITY 314,727 294,773 308,540
----------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 4,148,295 $ 3,952,274 $ 4,113,940
=========== =========== ===========
(1) In reference to the discussion on page 2 of this release, while the
loans within both of these categories are often considered "commercial
real estate" in nature, they are classified separately in the statement
above to provide further emphasis upon the discrete composition of
their underlying real estate collateral.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
----------------------------------
June 30, March 31, June 30,
2010 2010 2009
---------- ---------- ----------
Interest income:
Loans secured by real estate $ 51,068 $ 50,122 $ 47,662
Other loans 30 39 37
Mortgage-backed securities 2,082 2,271 2,969
Investment securities 312 407 194
Federal funds sold and
other short-term investments 681 742 858
---------- ---------- ----------
Total interest income 54,173 53,581 51,720
---------- ---------- ----------
Interest expense:
Deposits and escrow 8,010 7,593 11,718
Borrowed funds 12,958 13,222 13,713
---------- ---------- ----------
Total interest expense 20,968 20,815 25,431
---------- ---------- ----------
Net interest income 33,205 32,766 26,289
Provision for loan losses 3,834 3,447 2,252
---------- ---------- ----------
Net interest income after
provision for loan losses 29,371 29,319 24,037
---------- ---------- ----------
Non-interest income:
Service charges and other fees 945 936 879
Mortgage banking income (loss), net 303 211 856
Other than temporary impairment
("OTTI") charge on securities (1) (508) (166) (886)
Gain (loss) on sale of other real
estate owned and other assets 282 327 (92)
Gain (loss) on trading securities (66) 242 -
Other 1,501 960 1,101
---------- ---------- ----------
Total non-interest income (loss) 2,457 2,510 1,858
---------- ---------- ----------
Non-interest expense:
Compensation and benefits 8,522 8,886 7,618
Occupancy and equipment 2,648 2,258 1,882
Other 4,621 4,548 5,825
---------- ---------- ----------
Total non-interest expense 15,791 15,692 15,325
---------- ---------- ----------
Income before taxes 16,037 16,137 10,570
Income tax expense 6,033 6,667 3,654
---------- ---------- ----------
Net Income $ 10,004 $ 9,470 $ 6,916
========== ========== ==========
Earnings per Share:
Basic $ 0.30 $ 0.29 $ 0.21
========== ========== ==========
Diluted $ 0.30 $ 0.28 $ 0.21
========== ========== ==========
Average common shares outstanding for
Diluted EPS 33,341,885 33,249,082 33,026,554
For the Six Months Ended
----------------------
June 30, June 30,
2010 2009
---------- ----------
Interest income:
Loans secured by real estate $ 101,191 $ 95,991
Other loans 68 74
Mortgage-backed securities 4,354 6,249
Investment securities 719 439
Federal funds sold and
other short-term investments 1,423 1,361
---------- ----------
Total interest income 107,755 104,114
---------- ----------
Interest expense:
Deposits and escrow 15,603 25,930
Borrowed funds 26,181 27,755
---------- ----------
Total interest expense 41,784 53,685
---------- ----------
Net interest income 65,971 50,429
Provision for loan losses 7,281 4,892
---------- ----------
Net interest income after
provision for loan losses 58,690 45,537
---------- ----------
Non-interest income:
Service charges and other fees 1,881 1,742
Mortgage banking income (loss),
net 513 (312)
Other than temporary impairment
("OTTI") charge on securities (1) (673) (5,926)
Gain (loss) on sale of other real
estate owned and other assets 608 339
Gain (loss) on trading securities 177 -
Other 2,461 1,969
---------- ----------
Total non-interest income
(loss) 4,967 (2,188)
---------- ----------
Non-interest expense:
Compensation and benefits 17,409 15,418
Occupancy and equipment 4,906 3,968
Other 9,167 9,547
---------- ----------
Total non-interest expense 31,482 28,933
---------- ----------
Income before taxes 32,175 14,416
Income tax expense 12,701 4,650
---------- ----------
Net Income $ 19,474 $ 9,766
========== ==========
Earnings per Share:
Basic $ 0.59 $ 0.30
========== ==========
Diluted $ 0.58 $ 0.30
========== ==========
Average common shares outstanding for
Diluted EPS 33,295,701 32,956,106
(1) Total OTTI charges on securities were $521, $216 and $1,160 during the
three months ended June 30, 2010, March 31, 2010 and June 30, 2009,
respectively, and $736 and $7,264 during the six months ended June
30, 2010 and 2009, respectively. The non-credit component of
OTTI recognized in accumulated other comprehensive loss was $13, $50
and $274 during the three months ended June 30, 2010, March 31, 2010
and June 30, 2009, respectively, and $63 and $1,338 during the six
months ended June 30, 2010 and 2009, respectively.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
Unaudited Core Earnings and Core Cash Earnings Reconciliations
(Dollars In thousands except per share amounts)
Core earnings and related data are "Non-GAAP Disclosures." These
disclosures present information which management considers useful to the
readers of this report since they present a measure of the results of the
Company's ongoing operations during the period (exclusive of gains or
losses on sales of securities and other real estate owned and other
material non-recurring items).
Core cash earnings and related data are also "Non-GAAP Disclosures." These
disclosures present information which management considers useful to the
readers of this report since they present a measure of the tangible equity
generated from operations during each period presented. Tangible
stockholders' equity is derived from stockholders' equity, with various
adjustment items that are based upon standards of the Company's primary
regulator, the Office of Thrift Supervision. Tangible stockholders' equity
generation is a significant financial measure since banks are subject to
regulatory requirements involving the maintenance of minimum tangible
capital levels. A reconciliation between GAAP stockholders' equity (GAAP
capital) and tangible stockholders' equity (regulatory capital) can be
found in the Company's Form 10-K for the year ended December 31, 2009.
The following tables present a reconciliation of GAAP net income and both
core earnings and core cash earnings, as well as financial performance
ratios determined based upon core earnings and core cash earnings, for each
of the periods presented:
For the Three Months Ended
----------------------------
June 30, March 31, June 30,
2010 2010 2009
-------- -------- --------
Net income as reported $ 10,004 $ 9,470 $ 6,916
Loss on sales or writedowns of other real
estate owned 157 200 92
OTTI charges on equity mutual funds - - -
OTTI charges on trust preferred securities 508 166 886
Gain on sale of securities (282) (327) -
Expense associated with prepayment of FHLBNY
advances - - -
Non-recurring income tax adjustment 292 - -
Tax effect of adjustments and other
non-recurring tax items (271) 16 (442)
-------- -------- --------
Core Earnings $ 10,408 $ 9,525 $ 7,452
-------- -------- --------
Cash Earnings Additions:
Non-cash stock benefit plan expense 779 660 665
-------- -------- --------
Core Cash Earnings $ 11,187 $ 10,185 $ 8,117
-------- -------- --------
Performance Ratios (Based upon Core
Earnings):
Core EPS (Diluted) $ 0.31 $ 0.29 $ 0.23
Core Return on Average Assets 0.99% 0.95% 0.74%
Core Return on Average Stockholders' Equity 13.32% 12.66% 10.60%
Core Return on Average Tangible Stockholders'
Equity 15.91% 15.25% 12.77%
Core Cash EPS (Diluted) $ 0.34 $ 0.31 $ 0.25
Core Cash Return on Average Assets 1.06% 1.01% 0.81%
Core Cash Return on Average Tangible
Stockholders' Equity 17.10% 16.31% 13.91%
For the Six Months Ended
------------------
June 30, June 30,
2010 2009
-------- --------
Net income as reported $ 19,474 $ 9,766
Loss on sales or writedowns of other real
estate owned 357 92
OTTI charges on equity mutual funds - 3,063
OTTI charges on trust preferred securities 673 2,863
Gain on sale of securities (608) (431)
Expense associated with prepayment of FHLBNY
advances - 185
Non-recurring income tax adjustment 291 -
Tax effect of adjustments and other
non-recurring tax items (254) (2,627)
-------- --------
Core Earnings $ 19,933 $ 12,911
-------- --------
Cash Earnings Additions:
Non-cash stock benefit plan expense 1,439 1,305
-------- --------
Core Cash Earnings $ 21,372 $ 14,216
-------- --------
Performance Ratios (Based upon Core
Earnings):
Core EPS (Diluted) $ 0.60 $ 0.39
Core Return on Average Assets 0.97% 0.64%
Core Return on Average Stockholders' Equity 13.00% 9.22%
Core Return on Average Tangible Stockholders'
Equity 15.60% 11.06%
Core Cash EPS (Diluted) $ 0.64 $ 0.43
Core Cash Return on Average Assets 1.04% 0.71%
Core Cash Return on Average Tangible
Stockholders' Equity 16.73% 12.18%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------
June 30, March 31, June 30,
2010 2010 2009
----------- ----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.30 $ 0.28 $ 0.21
Return on Average Assets 0.95% 0.94% 0.69%
Return on Average Stockholders'
Equity 12.80% 12.59% 9.84%
Return on Average Tangible
Stockholders' Equity 15.29% 15.17% 11.85%
Net Interest Spread 3.16% 3.23% 2.54%
Net Interest Margin 3.35% 3.46% 2.78%
Non-interest Expense to Average
Assets 1.50% 1.56% 1.53%
Efficiency Ratio 43.92% 45.00% 52.62%
Effective Tax Rate 37.62% 41.31% 34.57%
Performance Ratios (Based upon Core
Earnings):
Core EPS (Diluted) $ 0.31 $ 0.29 $ 0.23
Core Return on Average Assets 0.99% 0.95% 0.74%
Core Return on Average Stockholders'
Equity 13.32% 12.66% 10.60%
Core Return on Average Tangible
Stockholders' Equity 15.91% 15.25% 12.77%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 9.11 $ 8.97 $ 8.24
Tangible Book Value Per Share 7.65 7.49 6.84
Average Balance Data:
Average Assets $ 4,211,629 $ 4,015,428 $ 4,011,473
Average Interest Earning Assets 3,961,750 3,790,014 3,786,577
Average Stockholders' Equity 312,634 300,874 281,202
Average Tangible Stockholders'
Equity 261,736 249,781 233,376
Average Loans 3,479,613 3,447,529 3,238,424
Average Deposits 2,419,758 2,247,985 2,298,966
Asset Quality Summary:
Net charge-offs $ 5,024 $ 769 $ 528
Nonperforming Loans 18,691 29,520 12,878
Nonperforming Loans/Total Loans 0.54% 0.85% 0.40%
Nonperforming Assets (1) 19,634 30,936 14,118
Nonperforming Assets/Total Assets 0.47% 0.75% 0.36%
Allowance for Loan Loss/Total Loans 0.67% 0.71% 0.62%
Allowance for Loan
Loss/Nonperforming Loans 124.93% 83.40% 155.23%
Loans Delinquent 30 to 89 Days at
period end $ 11,133 $ 19,688 $ 17,585
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period end 6.46% 6.35% 6.00%
Tangible Capital Ratio (Bank Only) 7.70% 7.77% 7.63%
Leverage Capital Ratio (Bank Only) 7.70% 7.77% 7.63%
Risk Based Capital Ratio (Bank Only) 11.91% 11.79% 11.46%
For the Six Months Ended
------------------------
June 30, June 30,
2010 2009
----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.58 $ 0.30
Return on Average Assets 0.95% 0.49%
Return on Average Stockholders'
Equity 12.70% 6.97%
Return on Average Tangible
Stockholders' Equity 15.24% 8.37%
Net Interest Spread 3.20% 2.39%
Net Interest Margin 3.40% 2.64%
Non-interest Expense to Average
Assets 1.53% 1.44%
Efficiency Ratio 44.45% 53.75%
Effective Tax Rate 39.47% 32.26%
Performance Ratios (Based upon Core
Earnings):
Core EPS (Diluted) $ 0.60 $ 0.39
Core Return on Average Assets 0.97% 0.64%
Core Return on Average Stockholders'
Equity 13.00% 9.22%
Core Return on Average Tangible
Stockholders' Equity 15.60% 11.06%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 9.11 $ 8.24
Tangible Book Value Per Share 7.65 6.84
Average Balance Data:
Average Assets $ 4,113,529 $ 4,025,617
Average Interest Earning Assets 3,875,882 3,820,135
Average Stockholders' Equity 306,739 280,137
Average Tangible Stockholders'
Equity 255,490 233,416
Average Loans 3,463,572 3,274,715
Average Deposits 2,333,872 2,310,290
Asset Quality Summary:
Net charge-offs $ 5,793 $ 2,404
Nonperforming Loans 18,691 12,878
Nonperforming Loans/Total Loans 0.54% 0.40%
Nonperforming Assets (1) 19,634 14,118
Nonperforming Assets/Total Assets 0.47% 0.36%
Allowance for Loan Loss/Total Loans 0.67% 0.62%
Allowance for Loan
Loss/Nonperforming Loans 124.93% 155.23%
Loans Delinquent 30 to 89 Days at
period end $ 11,133 $ 17,585
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period end 6.46% 6.00%
Tangible Capital Ratio (Bank Only) 7.70% 7.63%
Leverage Capital Ratio (Bank Only) 7.70% 7.63%
Risk Based Capital Ratio (Bank Only) 11.91% 11.46%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
-----------------------------------
June 30, 2010
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,478,236 $ 51,068 5.87%
Other loans 1,377 30 8.71
Mortgage-backed securities 184,613 2,082 4.51
Investment securities 50,709 312 2.46
Other short-term investments 246,815 681 1.10
----------- ---------- ----------
Total interest earning assets 3,961,750 $ 54,173 5.47%
----------- ----------
Non-interest earning assets 249,879
-----------
Total assets $ 4,211,629
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 102,711 $ 191 0.75%
Money Market accounts 785,323 1,647 0.84
Savings accounts 311,201 200 0.26
Certificates of deposit 1,106,346 5,972 2.17
----------- ---------- ----------
Total interest bearing
deposits 2,305,581 8,010 1.39
Borrowed Funds 1,336,282 12,958 3.89
----------- ---------- ----------
Total interest-bearing
liabilities 3,641,863 $ 20,968 2.31%
----------- ---------- ----------
Non-interest bearing checking
accounts 114,177
Other non-interest-bearing
liabilities 142,955
-----------
Total liabilities 3,898,995
Stockholders' equity 312,634
-----------
Total liabilities and stockholders'
equity $ 4,211,629
===========
Net interest income $ 33,205
==========
Net interest spread 3.16%
==========
Net interest-earning assets $ 319,887
===========
Net interest margin 3.35%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 108.78%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,419,758 $ 8,010 1.33%
Interest earning assets (excluding
prepayment and other fees) 5.40%
For the Three Months Ended
-----------------------------------
March 31, 2010
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,446,103 $ 50,122 5.82%
Other loans 1,426 39 10.94
Mortgage-backed securities 206,466 2,271 4.40
Investment securities 57,159 407 2.85
Other short-term investments 78,860 742 3.76
----------- ---------- ----------
Total interest earning assets 3,790,014 $ 53,581 5.65%
----------- ----------
Non-interest earning assets 225,414
-----------
Total assets $ 4,015,428
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 104,117 $ 182 0.71%
Money Market accounts 716,696 1,710 0.97
Savings accounts 302,151 200 0.27
Certificates of deposit 1,015,951 5,501 2.20
----------- ---------- ----------
Total interest bearing
deposits 2,138,915 7,593 1.44
Borrowed Funds 1,344,911 13,222 3.99
----------- ---------- ----------
Total interest-bearing
liabilities 3,483,826 $ 20,815 2.42%
----------- ---------- ----------
Non-interest bearing checking
accounts 109,070
Other non-interest-bearing
liabilities 121,658
-----------
Total liabilities 3,714,554
Stockholders' equity 300,874
-----------
Total liabilities and stockholders'
equity $ 4,015,428
===========
Net interest income $ 32,766
==========
Net interest spread 3.23%
==========
Net interest-earning assets $ 306,188
===========
Net interest margin 3.46%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 108.79%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,247,985 $ 7,593 1.37%
Interest earning assets (excluding
prepayment and other fees) 5.62%
For the Three Months Ended
-----------------------------------
June 30, 2009
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,236,793 $ 47,662 5.89%
Other loans 1,631 37 9.07
Mortgage-backed securities 270,515 2,969 4.39
Investment securities 15,716 194 4.94
Other short-term investments 261,922 858 1.31
----------- ---------- ----------
Total interest earning assets 3,786,577 $ 51,720 5.46%
----------- ----------
Non-interest earning assets 224,896
-----------
Total assets $ 4,011,473
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 112,877 $ 256 0.91%
Money Market accounts 723,094 2,550 1.41
Savings accounts 288,944 307 0.43
Certificates of deposit 1,075,774 8,605 3.21
----------- ---------- ----------
Total interest bearing
deposits 2,200,689 11,718 2.14
Borrowed Funds 1,286,840 13,713 4.27
----------- ---------- ----------
Total interest-bearing
liabilities 3,487,529 $ 25,431 2.92%
----------- ---------- ----------
Non-interest bearing checking
accounts 98,277
Other non-interest-bearing
liabilities 144,465
-----------
Total liabilities 3,730,271
Stockholders' equity 281,202
-----------
Total liabilities and stockholders'
equity $ 4,011,473
===========
Net interest income $ 26,289
==========
Net interest spread 2.54%
==========
Net interest-earning assets $ 299,048
===========
Net interest margin 2.78%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 108.57%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,298,966 $ 11,718 2.04%
Interest earning assets (excluding
prepayment and other fees) 5.43%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS
(Dollars In thousands)
At At At
June 30, March 31, June 30,
2010 2010 2009
--------- --------- ----------
Non-Performing Loans
One- to four-family $ 634 $ 634 $ 578
Multifamily residential (1) 12,239 22,101 6,966
Commercial real estate (1) 4,277 4,694 2,398
Mixed Use 1,500 1,998 2,851
Cooperative apartment 25 71 83
Other 16 22 2
--------- --------- ----------
Total Non-Performing Loans (2) $ 18,691 $ 29,520 $ 12,878
--------- --------- ----------
Other Non-Performing Assets
Other real estate owned (3) 350 707 -
Pooled bank trust preferred securities 593 709 1,240
--------- --------- ----------
Total Non-Performing Assets $ 19,634 $ 30,936 $ 14,118
--------- --------- ----------
Troubled Debt Restructurings not included
in non-performing loans
Multifamily residential - - -
Commercial real estate - - -
Mixed Use 1,040 1,040 -
Other - - -
--------- --------- ----------
Total Troubled Debt Restructurings
("TDRs") (1) $ 1,040 $ 1,040 $ -
--------- --------- ----------
(1) In reference to the discussion on page 2 of this release, while the
loans within both of these categories are often considered "commercial
real estate" in nature, they are classified separately in the statement
above to provide further emphasis upon the discrete composition of
their underlying real estate collateral.
(2) Total non-performing loans include loans that have been modified in a
manner that would meet the criteria for a TDR should the loans return
to accrual status. These loans, which are excluded from the TDR amount
shown above, totaled $2.6 million and $15.7 million at June 30, 2010
and March 31, 2010, respectively. There were no such loans at
June 30, 2009.
(3) Amount was fully comprised of multifamily residential loans at
June 30, 2010 and March 31, 2010.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES
At At
June 30, March 31,
2010 2010
--------- ---------
Total Non-Performing Assets $ 19,634 $ 30,936
Loans over 90 days past due on accrual
status - -
--------- ---------
PROBLEM ASSETS $ 19,634 $ 30,936
--------- ---------
Tier 1 Capital - Dime Savings Bank of
Williamsburgh $ 313,882 $ 314,018
Allowance for loan losses 23,350 24,620
--------- ---------
TANGIBLE CAPITAL PLUS RESERVES $ 337,232 $ 338,638
--------- ---------
PROBLEM ASSETS AS A PERCENTAGE OF
TANGIBLE CAPITAL AND RESERVES 5.8% 9.1%
Contact: Kenneth Ceonzo Director of Investor Relations
718-782-6200 extension 8279
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