Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company" or
"Dime"), the parent company of The Dime Savings Bank of
Williamsburgh (the "Bank"), today reported consolidated net income
of $11.4 million, or 34 cents per diluted share, for the quarter
ended September 30, 2010, up from $10.0 million, or 30 cents per
diluted share, for the quarter ended June 30, 2010, and up from
$8.3 million, or 25 cents per diluted share for the quarter ended
September 30, 2009.
Vincent F. Palagiano, Chairman and CEO of Dime, commented, "The
Company again posted a solid gain in EPS this quarter, the result
of two main factors: higher net interest margin and lower credit
costs. Earnings would have been higher but for a permanent change
to the New York State and City Savings Bank tax law resulting in a
higher effective tax rate, and an 'other than temporary impairment'
('OTTI') charge for pooled trust preferred securities. All of the
traditional credit metrics remain outstanding, with manageable
levels of non-performing loans and assets, as well as 30 to 89 day
delinquent loans."
Significant Unusual or Non-Recurring Items Impacting Earnings
for the Most Recent Quarter
The Company's earnings for the quarter ended September 30, 2010
reflected an after-tax OTTI charge of approximately $899,000 on its
investment in bank pooled trust preferred securities ("TRUPs"). As
of September 30, 2010, the Bank had taken OTTI charges on six of
its eight owned TRUPs, which had a $3.9 million book balance on
that date. At September 30, 2010, these six bonds had been charged
down to 32% of their original book value through earnings (with an
additional 22% of their original book value written down through
stockholders' equity). The remaining two TRUPs (with a book value
of $7.5 million at September 30, 2010) continue to perform and the
Bank currently expects to receive all principal and interest
payments due under their contractual terms.
Also last quarter, the New York State legislature passed a
rather significant change to New York State and City Savings Bank
tax law by eliminating the long-standing "percentage of taxable
income" as a method for determining bad debt deductions. Since this
change was made retroactive to January 1, 2010, the Company
recognized approximately $700,000 of additional tax expense in the
September 2010 quarter to reconcile the first two quarters of 2010,
and, commencing in the September 2010 quarter, saw a permanent rise
in its New York State and City income taxes. As a result, the new
consolidated tax rate for the Company (Federal, New York State and
New York City) is now expected to approximate 40%.
OPERATING RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2010
Net Interest Income
Dime's net interest margin grew 25 basis points to 3.60% during
the quarter ended September 30, 2010. The yield on interest earning
assets increased 15 basis points due primarily to the redeployment
of approximately $112 million in low-yielding short term
investments into real estate loans and agency securities. As a
result, a greater percentage of the interest earning asset group
became comprised of real estate loans and federal agency
securities, with average yields of 5.89% and 1.38%, respectively,
during the most recent quarter. Although the rates on new loans are
at a cyclical low, the spread to 5- and 10-year Treasury bonds (and
Federal Home Loan Bank advances) is very favorable. It typically
takes several quarters for changes in new loan origination rates
(either higher or lower) to have an impact on the portfolio rate.
For that reason, in spite of lower loan rates on newly-originated
loans, the average yield on the existing loan portfolio was 5.89%
during the September 2010 quarter compared to 5.87% in the trailing
quarter and 5.93% a year earlier. The direction and magnitude of
the change in the loan portfolio yield over the next several
quarters should be determined by the volume of loan refinancing
from within the existing portfolio, and/or significant loan
portfolio growth at these interest rate levels.
On the funding side, the average cost of interest bearing
liabilities declined by 13 basis points quarter-over-quarter, due
primarily to a reduction of 11 basis points in average deposit
costs. Rates on money market deposits declined slightly, and the
average rate on the CD portfolio also fell as higher-rate maturing
CDs priced down to today's levels. Repricing rates on 1-year CDs at
the end of September 2010 were 75 basis points compared to a runoff
rate approximating 2.0%. Despite the decline in rates, total
deposit balances declined only 2% during the most recent quarter,
mostly through the loss of promotional rate deposits.
During the September 2010 quarter, the Bank repaid $140 million
of FHLB advances with a weighted average cost of 3.74%. Dime
replaced $24.0 million of these borrowings with a new 5-year fixed
rate Federal Home Loan Bank of New York ("FHLBNY") advance carrying
an average cost of 1.70%. The repayment of these higher rate
borrowings favorably impacted net interest margin.
The net result of these changes is that although average
interest earning assets declined by $155.2 million during the
quarter, net interest income rose by $1.1 million.
Provision/Allowance For Loan Losses
At September 30th, the allowance for loan losses ("ALL") as a
percentage of total loans stood at 0.49%, a decline of 18 basis
points from 0.67% at the end of the prior quarter. At June 30,
2010, approximately 25% of the Bank's ALL balance (or 0.17% of the
0.67% ratio to total loans) was comprised of allocated reserves for
losses deemed probable to occur on impaired loans. During the most
recent quarter, the Bank established the likely realizable value of
these impaired loans, and reduced their book value and the ALL by
that amount. This resulted in $5.6 million of the $6.8 million
total charge-offs recognized against the ALL during the quarter.
Following the regular quarterly analysis of the loan portfolio, the
Bank provided $667,000 to the ALL. As indicated on page 12 of this
release, problem assets as a percentage of tangible capital plus
the ALL was 6.1% at September 30, 2010.
Non-Interest Income
Non-interest income was $1.1 million for the quarter ended
September 30, 2010, a decline of $1.4 million from the previous
quarter, due primarily to an increase in pre-tax OTTI charges of
$1.1 million recognized on the Bank's previously discussed
portfolio of TRUPs. There was also a decline in the gain on the
sale of securities of $263,000 from the prior quarter, and a
decline in lease income from the prior quarter (the Company having
recognized in June a favorable adjustment to lease income related
to the transition from a cash basis to accrual basis recognition of
such income). Offsetting these declines was an increase of $312,000
in mortgage servicing portfolio revenue recognized during the
September 2010 quarter.
Non-Interest Expense
Non-interest expense was 1.46% of average assets during the most
recent quarter, resulting in an efficiency ratio of 40.4%. In the
aggregate, non-interest expenses declined $899,000 from the
previous quarter primarily as a result of: 1) a decline of $604,000
in lease operating expense that reflected an accounting change
charged in the June 2010 quarter to transition from a strictly cash
basis to a straight line accrual basis; and 2) a reduction of
approximately $450,000 in marketing expenses, reflecting lower
deposit promotional activities during the current quarter.
Income Tax Expense
The Company's customary consolidated effective tax rate
previously approximated 37%. As discussed above, during the most
recent quarter, New York State enacted a change in tax law
associated with bad debt deductions permissible by savings banks
effective retroactively to January 1, 2010. As a result, Dime was
required to recognize an adjustment during the most recent quarter
for the difference between the previous and new rules for the first
six months of 2010. Dime's consolidated effective tax rate thus
increased to 42.6% during the most recent quarter. The catch-up
charge approximated $700,000, or 2 cents per diluted share. Looking
forward, the consolidated effective tax rate is expected to
approximate 40%.
BALANCE SHEET
Total assets declined $151.5 million, to $4.00 billion at
September 30, 2010. The decline in assets was experienced primarily
in cash and due from banks that were utilized to reduce outstanding
FHLBNY advances.
Real Estate Loans
Real estate loans declined by $36.1 million during the most
recent quarter. Real estate loan originations were $81.4 million
during the most recent quarter at an average rate of 5.42%. Loan
amortization, exclusive of the disposition of problem loans,
totaled $100.7 million, or 11.8% of the average portfolio balance.
The average rate on amortized or satisfied loan balances was
6.15%.
The loan pipeline stood at $175.5 million at September 30, 2010,
with a weighted average rate of 4.73%. Yields on new loan
commitments are again reaching historic lows due to current Federal
Reserve monetary policy, which also is resulting in low Treasury
yields. During the past quarter, Dime did not aggressively seek
loan growth at these yield levels. As a result, total assets and
the total loan portfolio have mildly contracted.
Non Performing/Problem Loans
Non performing loans increased $907,000 during the most recent
quarter, approximating 0.57% of total loans at September 30, 2010.
During the most recent quarter, management reclassified eight loans
approximating $6.0 million as non-accrual due to concerns
surrounding the likelihood of repayment under their original
contractual terms. These borrowers were making monthly payments as
of September 30, 2010.
Loans delinquent between 30 and 89 days remained range bound at
$15.7 million, or 0.46% of loans at September 30, 2010, compared to
$11.1 million at June 30, 2010.
Within the $392.6 million pool of loans sold to Fannie Mae with
recourse exposure, $1.4 million were delinquent between 30 and 89
days, and $2.2 million were delinquent 90 days or more at September
30, 2010.
Deposits
Deposits declined $59.2 million during the most recent quarter,
led by reductions of $23.0 million and $43.1 million in promotional
CDs and money market accounts, respectively. Non-interest bearing
checking accounts increased $10 million during the most recent
quarter, attributable to growth in commercial checking
accounts.
During the most recent quarter, Dime opened its 25th retail
banking office, located in Garden City Park, New York. Average
deposits in branches open in excess of one year approximated $97.8
million at September 30, 2010, and core deposits comprised 54% of
the total. Dime continues a measured de novo strategy, with its
next new branch, to be located on 86th Street in Bay Ridge,
Brooklyn, scheduled to open in early 2011.
While management continues to view deposits as its preferred
funding source, the current interest rate environment provides a
unique opportunity to acquire historically low-cost, long duration
wholesale FHLBNY advances, and thus management will continue to
assess these funding opportunities in order to help maintain
pricing discipline on deposits and manage interest rate risk.
Tangible Capital
Dime continues to grow its tangible capital through retained
earnings, as its reported earnings exceeded its quarterly cash
dividend by 140% during the most recent quarter. Tangible book
value per share increased $0.21 during the most recent quarter to
$7.86 at September 30, 2010. This growth was fueled by a return of
approximately 17% on average tangible equity during the most recent
quarter.
Dime's consolidated tangible capital approximated 6.90% of
tangible assets at September 30, 2010, up 44 basis points from June
30, 2010. The Bank's tangible capital ratio approximated 8.01% at
September 30, 2010.
OUTLOOK FOR THE QUARTER ENDING DECEMBER 31, 2010
The average cost of deposits decreased to 1.22% during the
September 2010 quarter from 1.33% during the June 2010 quarter, as
Dime continued to take advantage of its balance sheet liquidity and
historically low short-term interest rates. Deposit funding costs
should remain near their historically low level for the remainder
of 2010.
Amortization rates (including prepayments and loan refinancing
activity), which approximated 12% on an annualized basis during the
most recent quarter, are expected to remain in the 10% to 15% range
during the final quarter of 2010, with the potential for prepayment
speeds to increase again given the current low Treasury benchmark
rates.
At September 30, 2010, the loan commitment pipeline was
approximately $175.5 million, comprised primarily of multifamily
residential loans, with an approximate weighted average rate of
4.73%. Most of the funding is expected to come from the balance
sheet, with total assets remaining unchanged.
Operating expenses for the December 2010 quarter are expected to
approximate $15.5 million.
Quarterly loan loss provisions were $667,000 during the
September 2010 quarter, $3.8 million during the June 2010 quarter,
and $3.4 million during the March 2010 quarter. Management expects
loan loss provisioning to remain range-bound.
ABOUT DIME COMMUNITY BANCSHARES
The Company (NASDAQ: DCOM) had $4.00 billion in consolidated
assets as of September 30, 2010, and is the parent company of Dime.
Dime was founded in 1864, is headquartered in Brooklyn, New York,
and currently has twenty-five 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)
September 30, December 31, June 30,
2010 2009 2010
------------- ------------- -------------
ASSETS:
Cash and due from banks $ 70,761 $ 39,338 $ 164,655
Investment securities held to
maturity 6,639 7,240 7,165
Investment securities
available for sale 64,675 43,162 40,956
Trading securities 1,420 - 1,329
Mortgage-backed securities
available for sale 165,221 224,773 184,723
Federal funds sold and other
short-term investments 23,848 3,785 45,455
Real Estate Loans:
One-to-four family and
cooperative apartment 119,991 131,475 123,434
Multifamily and underlying
cooperative (1) 2,460,882 2,377,278 2,469,271
Commercial real estate (1) 823,018 834,724 837,523
Construction and land
acquisition 16,348 44,544 26,127
Unearned discounts and net
deferred loan fees 4,526 4,017 4,476
------------- ------------- -------------
Total real estate loans 3,424,765 3,392,038 3,460,831
------------- ------------- -------------
Other loans 2,327 3,221 4,211
Allowance for loan losses (16,942) (21,505) (23,350)
------------- ------------- -------------
Total loans, net 3,410,150 3,373,754 3,441,692
------------- ------------- -------------
Loans held for sale 345 416 692
Premises and fixed assets, net 31,224 29,841 30,491
Federal Home Loan Bank of New
York capital stock 47,848 54,083 53,068
Other real estate owned, net 85 755 350
Goodwill 55,638 55,638 55,638
Other assets 118,914 119,489 122,081
------------- ------------- -------------
TOTAL ASSETS $ 3,996,768 $ 3,952,274 $ 4,148,295
============= ============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Non-interest bearing checking $ 119,966 $ 106,449 $ 109,985
Interest Bearing Checking 104,705 114,416 106,226
Savings 318,239 302,340 314,747
Money Market 743,305 708,578 791,413
------------- ------------- -------------
Sub-total 1,286,215 1,231,783 1,322,371
------------- ------------- -------------
Certificates of deposit 1,094,451 985,053 1,117,444
------------- ------------- -------------
Total Due to Depositors 2,380,666 2,216,836 2,439,815
------------- ------------- -------------
Escrow and other deposits 91,965 65,895 77,699
Securities sold under
agreements to repurchase 195,000 230,000 195,000
Federal Home Loan Bank of New
York advances 904,525 1,009,675 1,020,525
Subordinated Notes Sold - 25,000 -
Trust Preferred Notes Payable 70,680 70,680 70,680
Other liabilities 31,470 39,415 29,849
------------- ------------- -------------
TOTAL LIABILITIES 3,674,306 3,657,501 3,833,568
------------- ------------- -------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par,
125,000,000 shares authorized,
51,151,115 shares and
51,131,784 shares issued at
September 30, 2010 and December
31, 2009, respectively and
34,547,769 shares and 34,395,531
shares outstanding at September
30, 2010 and December 31, 2009,
respectively) 511 511 511
Additional paid-in capital 224,239 214,654 223,802
Retained earnings 323,777 306,787 317,088
Unallocated common stock of
Employee Stock Ownership Plan (3,528) (3,701) (3,586)
Unearned common stock of
Restricted Stock Awards (3,226) (2,505) (3,573)
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 September 30, 2010,
and December 31, 2009,
respectively) (206,259) (207,884) (206,259)
Accumulated other
comprehensive loss, net (5,073) (5,082) (5,277)
------------- ------------- -------------
TOTAL STOCKHOLDERS' EQUITY 322,462 294,773 314,727
------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 3,996,768 $ 3,952,274 $ 4,148,295
============= ============= =============
(1) 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
-------------------------------------------
September 30, June 30, September 30,
2010 2010 2009
------------- ------------- -------------
Interest income:
Loans secured by real estate $ 50,648 $ 51,068 $ 48,422
Other loans 28 30 35
Mortgage-backed securities 1,846 2,082 2,748
Investment securities 290 312 76
Federal funds sold and other
short-term investments 702 681 809
------------- ------------- -------------
Total interest income 53,514 54,173 52,090
------------- ------------- -------------
Interest expense:
Deposits and escrow 7,383 8,010 9,156
Borrowed funds 11,855 12,958 13,965
------------- ------------- -------------
Total interest expense 19,238 20,968 23,121
------------- ------------- -------------
Net interest income 34,276 33,205 28,969
Provision for loan losses 667 3,834 3,769
------------- ------------- -------------
Net interest income after
provision for loan losses 33,609 29,371 25,200
------------- ------------- -------------
Non-interest income:
Service charges and other
fees 1,284 945 1,376
Mortgage banking income
(loss), net 316 303 246
Other than temporary
impairment ("OTTI")charge
on securities(1) (1,639) (508) (556)
Gain (loss) on sale of other
real estate owned and other
assets (10) 282 -
Gain (loss) on trading
securities 86 (66) -
Other 1,031 1,501 1,038
------------- ------------- -------------
Total non-interest
income (loss) 1,068 2,457 2,104
------------- ------------- -------------
Non-interest expense:
Compensation and benefits 8,514 8,522 7,941
Occupancy and equipment 2,190 2,648 1,926
Other 4,188 4,621 3,774
------------- ------------- -------------
Total non-interest
expense 14,892 15,791 13,641
------------- ------------- -------------
Income before taxes 19,785 16,037 13,663
Income tax expense 8,430 6,033 5,337
------------- ------------- -------------
Net Income $ 11,355 $ 10,004 $ 8,326
============= ============= =============
Earnings per Share:
Basic $ 0.34 $ 0.30 $ 0.25
============= ============= =============
Diluted $ 0.34 $ 0.30 $ 0.25
============= ============= =============
Average common shares
outstanding for Diluted EPS 33,394,522 33,341,885 33,126,941
For the Nine Months Ended
----------------------------
September 30, September 30,
2010 2009
------------- -------------
Interest income:
Loans secured by real
estate $ 151,839 $ 144,412
Other loans 97 110
Mortgage-backed securities 6,199 8,997
Investment securities 1,009 515
Federal funds sold and
other short-term
investments 2,125 2,170
------------- -------------
Total interest income 161,269 156,204
------------- -------------
Interest expense:
Deposits and escrow 22,986 35,086
Borrowed funds 38,036 41,720
------------- -------------
Total interest expense 61,022 76,806
------------- -------------
Net interest income 100,247 79,398
Provision for loan losses 7,948 8,661
------------- -------------
Net interest income after
provision for loan losses 92,299 70,737
------------- -------------
Non-interest income:
Service charges and other
fees 3,165 3,118
Mortgage banking income
(loss), net 829 (66)
Other than temporary
impairment ("OTTI")
charge on securities(1) (2,312) (6,482)
Gain (loss) on sale of other
real estate owned and other
assets 618 339
Gain (loss) on trading
securities 243
Other 3,492 3,006
------------- -------------
Total non-interest
income (loss) 6,035 (85)
------------- -------------
Non-interest expense:
Compensation and benefits 25,923 23,358
Occupancy and equipment 7,096 5,894
Other 13,355 13,321
------------- -------------
Total non-interest
expense 46,374 42,573
------------- -------------
Income before taxes 51,960 28,079
Income tax expense 21,131 9,987
------------- -------------
Net Income $ 30,829 $ 18,092
============= =============
Earnings per Share:
Basic $ 0.93 $ 0.55
============= =============
Diluted $ 0.93 $ 0.55
============= =============
Average common shares
outstanding for Diluted EPS 33,328,574 33,005,549
(1) Total OTTI charges on securities were $1,858, $521 and $675 during the
three months ended September 30, 2010, June 30, 2010 and September 30,
2009, respectively, and $736 and $7,939 during the nine months ended
September 30, 2010 and 2009, respectively. The non-credit component of
OTTI recognized in accumulated other comprehensive loss was $219, $13
and $119 during the three months ended September 30, 2010, June 30,
2010 and September 30, 2009, respectively, and $313 and $1,457 during
the nine months ended September 30, 2010 and 2009, respectively.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------------
September 30, June 30, September 30,
2010 2010 2009
------------- ------------- -------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.34 $ 0.30 $ 0.25
Return on Average Assets 1.11% 0.95% 0.85%
Return on Average
Stockholders' Equity 14.23% 12.80% 11.66%
Return on Average Tangible
Stockholders' Equity 16.92% 15.29% 14.07%
Net Interest Spread 3.44% 3.16% 2.91%
Net Interest Margin 3.60% 3.35% 3.11%
Non-interest Expense to
Average Assets 1.46% 1.50% 1.39%
Efficiency Ratio 40.35% 43.92% 43.13%
Effective Tax Rate 42.61% 37.62% 39.06%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 9.33 $ 9.11 $ 8.42
Tangible Book Value Per Share 7.86 7.65 6.97
Average Balance Data:
Average Assets $ 4,090,033 $ 4,211,629 $ 3,912,313
Average Interest Earning
Assets 3,806,510 3,961,750 3,721,680
Average Stockholders' Equity 319,090 312,634 285,688
Average Tangible Stockholders'
Equity 268,477 261,736 236,680
Average Loans 3,440,764 3,479,613 3,267,984
Average Deposits 2,406,853 2,419,758 2,255,479
Asset Quality Summary:
Net charge-offs $ 6,817 $ 5,024 $ 3,619
Nonperforming Loans 19,598 18,691 14,162
Nonperforming Loans/ Total
Loans 0.57% 0.54% 0.43%
Nonperforming Assets (1) 20,242 19,634 16,090
Nonperforming Assets/Total
Assets 0.51% 0.47% 0.41%
Allowance for Loan Loss/Total
Loans 0.49% 0.67% 0.61%
Allowance for Loan
Loss/Nonperforming Loans 86.45% 124.93% 143.07%
Loans Delinquent 30 to 89 Days
at period end $ 15,729 $ 11,133 $ 11,340
Regulatory Capital Ratios:
Consolidated Tangible
Stockholders' Equity to
Tangible Assets at period
end 6.90% 6.46% 6.23%
Tangible Capital Ratio (Bank
Only) 8.01% 7.70% 8.03%
Leverage Capital Ratio (Bank
Only) 8.01% 7.70% 8.03%
Risk Based Capital Ratio (Bank
Only) 11.07% 11.91% 11.73%
For the Nine Months Ended
----------------------------
September 30, September 30,
2010 2009
------------- -------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.93 $ 0.55
Return on Average Assets 1.00% 0.60%
Return on Average
Stockholders' Equity 13.22% 8.55%
Return on Average Tangible
Stockholders' Equity 15.82% 10.29%
Net Interest Spread 3.28% 2.55%
Net Interest Margin 3.47% 2.80%
Non-interest Expense to
Average Assets 1.51% 1.42%
Efficiency Ratio 43.05% 49.82%
Effective Tax Rate 40.67% 35.57%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 9.33 $ 8.42
Tangible Book Value Per Share 7.86 6.97
Average Balance Data:
Average Assets $ 4,105,697 $ 3,987,849
Average Interest Earning
Assets 3,852,759 3,787,316
Average Stockholders' Equity 310,856 281,987
Average Tangible Stockholders'
Equity 259,821 234,538
Average Loans 3,455,969 3,272,472
Average Deposits 2,242,875 2,292,019
Asset Quality Summary:
Net charge-offs $ 12,610 $ 6,023
Nonperforming Loans 19,598 14,162
Nonperforming Loans/ Total
Loans 0.57% 0.43%
Nonperforming Assets (1) 20,242 16,090
Nonperforming Assets/Total
Assets 0.51% 0.41%
Allowance for Loan Loss/Total
Loans 0.49% 0.61%
Allowance for Loan
Loss/Nonperforming Loans 86.45% 143.07%
Loans Delinquent 30 to 89 Days
at period end $ 15,729 $ 11,340
Regulatory Capital Ratios:
Consolidated Tangible
Stockholders' Equity to
Tangible Assets at period
end 6.90% 6.23%
Tangible Capital Ratio (Bank
Only) 8.01% 8.03%
Leverage Capital Ratio (Bank
Only) 8.01% 8.03%
Risk Based Capital Ratio (Bank
Only) 11.07% 11.73%
(1) Amount comprised of total nonperforming loans, other real estate owned
and the recorded balance of two pooled bank trust preferred security
investments for which the Bank has not received any contractual
payments of interest or principal in over 90 days.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
-------------------------------------------
September 30,
2010
-------------------------------------------
Average
Average Yield/
Balance Interest Cost
-------------- ------------- -------------
Assets:
Interest-earning assets:
Real estate loans $ 3,439,448 $ 50,648 5.89%
Other loans 1,316 28 8.51
Mortgage-backed securities 166,672 1,846 4.43
Investment securities 64,325 290 1.80
Other short-term
investments 134,749 702 2.08
-------------- ------------- -------------
Total interest earning
assets $ 3,806,510 $ 53,514 5.62%
-------------- -------------
Non-interest earning assets 283,523
--------------
Total assets $ 4,090,033
==============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 98,588 $ 99 0.40%
Money Market accounts 760,509 1,221 0.64
Savings accounts 317,243 202 0.25
Certificates of deposit 1,107,791 5,861 2.10
-------------- ------------- -------------
Total interest
bearing deposits 2,284,131 7,383 1.28
Borrowed Funds 1,213,607 11,855 3.88
-------------- ------------- -------------
Total interest-bearing
liabilities $ 3,497,738 $ 19,238 2.18%
-------------- ------------- -------------
Non-interest bearing
checking accounts 122,722
Other non-interest-bearing
liabilities 150,483
--------------
Total liabilities 3,770,943
Stockholders' equity 319,090
--------------
Total liabilities and
stockholders' equity $ 4,090,033
==============
Net interest income $ 34,276
=============
Net interest spread 3.44%
=============
Net interest-earning assets $ 308,772
==============
Net interest margin 3.60%
=============
Ratio of interest-earning
assets to interest-bearing
liabilities 108.83%
=============
Deposits (including
non-interest bearing
checking accounts) $ 2,406,853 $ 7,383 1.22%
Interest earning assets
(excluding prepayment and
other fees) 5.54%
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
--------------------------------------------
September 30, 2009
--------------------------------------------
Average
Average Yield/
Balance Interest Cost
-------------- ------------- -------------
Assets:
Interest-earning assets:
Real estate loans $ 3,266,416 $ 48,422 5.93%
Other loans 1,568 35 8.93
Mortgage-backed securities 246,354 2,748 4.46
Investment securities 26,039 76 1.17
Other short-term
investments 181,303 809 1.78
-------------- ------------- -------------
Total interest earning
assets $ 3,721,680 $ 52,090 5.60%
-------------- -------------
Non-interest earning assets 190,633
--------------
Total assets $ 3,912,313
==============
Liabilities and Stockholders'
Equity:
Interest-bearing
liabilities:
Interest Bearing Checking $ 105,938 $ 179 0.67%
Money Market accounts 730,634 1,738 0.94
Savings accounts 297,450 201 0.27
Certificates of deposit 1,016,246 7,038 2.75
-------------- ------------- -------------
Total interest
bearing deposits 2,150,268 9,156 1.69
Borrowed Funds 1,265,644 13,965 4.38
-------------- ------------- -------------
Total interest-bearing
liabilities $ 3,415,912 $ 23,121 2.69%
-------------- ------------- -------------
Non-interest bearing
checking accounts 105,211
Other non-interest-bearing
liabilities 105,502
--------------
Total liabilities 3,626,625
Stockholders' equity 285,688
--------------
Total liabilities and
stockholders' equity $ 3,912,313
==============
Net interest income $ 28,969
=============
Net interest spread 2.91%
=============
Net interest-earning assets $ 305,768
==============
Net interest margin 3.11%
=============
Ratio of interest-earning
assets to interest-bearing
liabilities 108.95%
=============
Deposits (including
non-interest bearing
checking accounts) $ 2,255,479 $ 9,156 1.61%
Interest earning assets
(excluding prepayment and
other fees) 5.53%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS
(Dollars In thousands)
At September 30, At June 30, At September 30,
2010 2010 2009
------------- ------------- --------------
Non-Performing Loans
One- to four-family $ 224 $ 634 $ 371
Multifamily residential and
mixed use (1) 12,934 13,739 11,020
Commercial real estate (1) 6,396 4,277 2,739
Cooperative apartment 25 25 26
Other 19 16 6
------------- ------------- --------------
Total Non-Performing Loans
(2) $ 19,598 $ 18,691 $ 14,162
------------- ------------- --------------
Other Non-Performing Assets
Other real estate owned (3) 85 350 168
Pooled bank trust preferred
securities 559 593 1,760
------------- ------------- --------------
Total Non-Performing Assets $ 20,242 $ 19,634 $ 16,090
------------- ------------- --------------
Troubled Debt Restructurings
not included in
non-performing loans
Multifamily residential - - -
Commercial real estate 6,600 - -
Mixed Use 1,040 1,040 1,040
Other - - -
------------- ------------- --------------
Total Troubled Debt
Restructurings ("TDRs") (1) $ 7,640 $ 1,040 $ 1,040
------------- ------------- --------------
(1) 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 included in the
non-performing loan table, but excluded from the TDR amount shown
above, totaled $3.6 million at September 30, 2010, $4.6 million at
June 30, 2010 and $4.6 million at September 30,2009, respectively.
(3) Amount was fully comprised of multifamily residential loans at
September 30, 2010 and June 30, 2010.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES
At September 30, At June 30,
2010 2010
------------- -------------
Total Non-Performing Assets $ 20,242 $ 19,634
Loans over 90 days past due on
accrual status - -
------------- -------------
PROBLEM ASSETS $ 20,242 $ 19,634
------------- -------------
Tier 1 Capital - Dime Savings
Bank of Williamsburgh $ 314,587 $ 313,882
Allowance for loan losses 16,942 23,350
------------- -------------
TANGIBLE CAPITAL PLUS
RESERVES $ 331,529 $ 337,232
------------- -------------
PROBLEM ASSETS AS A PERCENTAGE
OF TANGIBLE CAPITAL AND
RESERVES 6.1% 5.8%
Contact: Kenneth Ceonzo Director of Investor Relations
718-782-6200 extension 8279
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