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 $11.1 million, or 33 cents per diluted share, for the quarter
ended March 31, 2011, compared to $10.6 million, or 31 cents per
diluted share, for the quarter ended December 31, 2010, and $9.5
million, or 28 cents per diluted share, for the quarter ended March
31, 2010.
Vincent F. Palagiano, Chairman and CEO, commented, "The earnings
and credit trendlines continue to improve into the current year,
with no clear indication yet of when short term rates may rise. Net
interest margin remains near cyclical highs for the bank. The
refinance market for multifamily properties continues to gather
momentum. We see plenty of opportunity in this market for the next
two to three years, as loans that were originated in 2003 through
2006 continue to reach their contractual repricing date, but we
remain cautious not to inflate the balance sheet at what we view as
a cyclical low point for interest rates. It is a favorable
environment for multifamily owners to refinance, as offering rates
on multifamily loans remain at historically low levels. On the
retail side, we were very pleased to open our 26th branch with a
superb location at the heavily trafficked corner of 86th Street and
Fourth Avenue in Bay Ridge, Brooklyn, our tenth Brooklyn location.
If the boroughs of New York City were separate cities, Brooklyn
would be the third largest city in the United States after Los
Angeles and Chicago."
OPERATING RESULTS FOR THE QUARTER ENDED MARCH 31, 2011
Net Interest Income
Net interest income increased $2.3 million, or 7.0%, from the
March 2010 quarter, and was virtually unchanged (0.3% lower) on a
linked quarter basis. Net interest margin fell 9 basis points to
3.62% during the quarter ended March 31, 2011 from 3.71% in the
December 2010 quarter, due to the following: 1) the yield on
interest earning assets declined 16 basis points, reflecting lower
yields on new loans; and 2) a temporary accumulation of $86 million
in cash balances earning approximately 25 basis points. The
additional liquidity resulted primarily from $52.1 million of
deposit inflows from a combination of seasonal and new branch
promotional activities. This excess liquidity is expected to be
deployed between now and August 31, 2011, however, it will slightly
depress the net interest margin until that time.
The decline in portfolio yield was offset by prepayment fee
income, which contributed meaningfully to net interest margin this
quarter. Prepayment and late fee income together rose significantly
to $1.5 million in aggregate during the March 2011 quarter, from
$879,000 in aggregate during the December 2010 quarter. The
combined prepayment and late charge income levels experienced in
both the March 2011 and December 2010 quarters were significantly
higher than those experienced in the March 2010 quarter, during
which they approximated $301,000 in aggregate, primarily reflecting
increased marketplace refinance activity.
Average earning assets grew by $82.5 million during the quarter,
however, did not generate sufficient interest income to offset the
lower yields on interest earning assets. Yields on new real estate
loans during the quarter averaged 4.64%, while the average real
estate loan portfolio yield was 5.84%.
Although rates on new multifamily loans are lower than Dime's
existing portfolio rates and near historical lows, their spread to
5- and 10-year Treasury bonds [and Federal Home Loan Bank of New
York ("FHLBNY") advances] still remains favorable. As a result,
origination levels during the remaining quarters of 2011 will
likely approximate the March 2011 quarterly volume, as liquid funds
are more profitably deployed. It typically takes several quarters
for changes in new loan origination rates (either higher or lower)
to have an impact on the portfolio rate. The direction and
magnitude of the change in the loan portfolio yield over the next
several quarters will be impacted by the loan refinancing volume
from within the existing portfolio, additional growth in the loan
portfolio at these interest rate levels and the level of prepayment
fee income. The loan amortization rate experienced in the March
2011 quarter was 19% on an annualized basis, running slightly ahead
of management's 2011 annual forecast of 14%.
On the funding side, the average cost of interest bearing
liabilities declined by 3 basis points quarter-over-quarter, due to
reductions of 11 basis points and 2 basis points in the average
costs of borrowed funds and deposits, respectively. Lower rates on
new certificates of deposit ("CDs") combined with an additional
$4.7 million of average non-interest bearing checking balances were
the primary reason for the deposit cost decrease, as higher-rate
maturing CDs priced down to today's levels. The average cost of CDs
declined 4 basis points from the December 2010 quarter to the March
2011 quarter. The $4.7 million growth in the average balance of
non-interest bearing deposits reflected the ongoing success of the
Bank's commercial deposit gathering efforts. Despite the decline in
rate offerings on new deposits, total deposit balances increased by
2.2% during the most recent quarter.
Interest Rate Risk
Management sees significant risk of increased funding costs over
the 3-year planning horizon. For that reason, the Company continues
to take meaningful steps to lengthen the duration of liabilities to
more closely match the repricing duration of its primary
investment, the 5-year repricing multifamily loan. During the March
2011 quarter, the Company modified $50.0 million of existing
putable FHLBNY advances, representing approximately 5% of total
outstanding FHLBNY advances, bringing the cumulative amount of
short-term, putable advances modified since the beginning of the
4th quarter of 2010 to $110 million. The favorable interest rate
environment enabled the Company to lengthen the repricing term of
these liabilities and simultaneously lower their cost. The
modifications completed in the current quarter resulted in a 32
basis point reduction in their weighted average cost to 3.58%, as
well as a 2.4-year extension in their weighted average term to
maturity. The maturity of this pool of borrowings moves to the
first quarter of 2015. The result was a decline of 11 basis points
in average borrowing costs during the quarter ended March 31, 2011.
As a result of these modifications, the aggregate level of
remaining putable borrowings has declined to 13.7% of total
liabilities at March 31, 2011.
Provision/Allowance For Loan Losses
At March 31, 2011, the allowance for loan losses ("ALL") as a
percentage of total loans stood at 0.57%, an increase of 2 basis
points from 0.55% at the end of the prior quarter. The Bank charged
off all losses deemed probable to occur on problem loans during the
March 2011 quarter, recognizing approximately $980,000 of such
charge-offs against the ALL during the quarter. The Bank recorded a
$1.4 million provision to its ALL during the March 2011 quarter,
compared to $3.3 million recorded in the December 2010 quarter.
This decline reflected the stabilization of credit conditions and
lower levels of new problem loans. The allowance represented 102%
of non-performing loans at March 31, 2011, up from 95% at December
31, 2010.
Non-Interest Income
Non-interest income was $1.9 million for the quarter ended March
31, 2011, a reduction of $110,000 from the previous quarter. The
$110,000 reduction resulted from a decline of $185,000 in the net
gain or loss on loan sales, coupled with slightly lower fee income.
These were partially offset by reduction in pre-tax OTTI charges of
$100,000 recognized on the Bank's portfolio of pooled bank trust
preferred securities.
Non-Interest Expense
Non-interest expense increased $1.3 million from the previous
quarter, reflecting the following: 1) ongoing salary and benefits
increases, including additional expenses associated with the
Company's Benefit Maintenance Plan; 2) the acceleration of
depreciation on some leasehold fixed assets; 3) higher deposit
insurance costs in a transitional quarter between Federal Deposit
Insurance Corporation ("FDIC") recapitalization plans; and 4)
increased marketing costs compared to the December 2010 quarter for
seasonal factors.
Non-interest expense was 1.65% of average assets during the most
recent quarter, resulting in an efficiency ratio of 45.6%.
Income Tax Expense
The effective tax rate was 40.6% during the March 2011 quarter,
slightly above the 40% expected rate. During the December 2010
quarter, the effective tax rate approximated 42.3% as a result of
year-end reconciliation of the full year expected tax obligation.
The Company's consolidated effective tax rate is expected to
approximate 40%.
BALANCE SHEET
Total assets increased $102.4 million, to $4.14 billion at March
31, 2011. The growth in assets was concentrated in cash and due
from banks and investment securities available for sale (primarily
agency obligations). The funding for the balance sheet growth was
obtained primarily from deposits and seasonal mortgagor escrow
flows, which grew by $52.1 million and $40.3 million, respectively,
during the most recent quarter.
Real Estate Loans
Real estate loans (excluding loans held for sale) declined $12.9
million during the most recent quarter due to higher than
anticipated amortization. The market rate on new multifamily loans
is near historical lows, therefore, the Bank has taken a more
measured approach to originating new loans. Real estate loan
originations were $157.2 million during the most recent quarter at
an average rate of 4.64%. Loan amortization, excluding the
disposition of problem loans, totaled $168.1 million, or 19%
annualized of the average portfolio balance. The average rate on
amortized or satisfied loan balances was 5.69%.
The loan pipeline stood at $121.8 million at March 31, 2011,
with a weighted average rate of 4.98%. Yields on new loan
commitments remain low, primarily driven by low Treasury yields and
aggressive competition for multifamily loans in the New York City
market. Dime will continue to be cautious about growing the loan
portfolio at the current yields, reflecting management's
expectations that interest rates will rise from their historically
low levels as the overall economy continues to improve.
Problem Loans
Non-accrual loans were $19.2 million, or 0.56% of total loans,
at March 31, 2011, a slight reduction from $20.2 million, or 0.58%
of loans, at December 31, 2010.
Loans delinquent between 30 and 89 days also declined to $12.1
million, or 0.35% of loans, at March 31, 2011, compared to $21.5
million, or 0.62% of loans at December 31, 2010. This decline
reflected both a continued stabilization in the multifamily
residential marketplace and the correction of a seasonal spike in
delinquencies that occurred during the December 2010 quarter.
As shown on page 13 of this release, the sum of non-performing
assets and accruing loans past due 90 days or more represented 6.7%
of tangible capital plus the ALL at March 31, 2011.
Within the remaining $361.0 million pool of loans sold to Fannie
Mae with recourse exposure, total delinquencies remained
negligible, declining from $3.7 million at December 31, 2010 to
$1.4 million at March 31, 2011. The $1.4 million delinquent balance
at March 31, 2011 was composed of one loan that was fully satisfied
in April 2011, with all principal and interest arrears
received.
Deposits and Borrowed Funds
Deposits increased $52.1 million during the most recent quarter,
led by growth of $29.4 million in promotional CDs and $22.7 million
in core (non-CD deposits). The Bank's deposit strategy during the
March 2011 quarter reflected both individual retirement account
("IRA") and new branch deposit promotional activities, all of which
were ultimately aimed at growing stable relationship balances. IRA
balances increased 19% during the March 2011 quarter as a result of
their promotional activities. Non-interest bearing checking
balances grew $9.9 million during the March 2011 quarter,
reflecting a combination of ongoing success in commercial deposit
gathering activities and seasonal inflows.
At March 31, 2011, average deposits in branches open in excess
of one year approximated $94.3 million, and core deposits comprised
55% of total deposits. Dime currently expects to continue its
measured de novo strategy. Late in the first quarter of 2011, Dime
opened its 26th retail banking office, located on 86th Street in
Bay Ridge, Brooklyn.
Since deposits provided sufficient funding during the most
recent quarter, management did not add any new wholesale borrowings
during the period, instead focusing efforts on restructuring its
existing portfolio. As a result, the weighted average maturity of
$50 million of existing borrowings was extended by an average of
2.4 years, with all associated put options fully eliminated. Their
weighted average cost was also reduced by 32 basis points.
Tangible Capital
Dime continues to grow tangible capital through retained
earnings, as reported earnings per share exceeded the quarterly
cash dividend rate per share by 136% during the most recent
quarter. Tangible book value per share increased $0.22 during the
most recent quarter to $8.29 at March 31, 2011. This growth was
fueled by a return of approximately 15.6% on average tangible
equity during the most recent quarter.
Dime's consolidated tangible capital was 7.04% of tangible
assets at March 31, 2011, up 3 basis points from December 31, 2010.
The Bank's tangible capital ratio was 8.21% at March 31, 2011, and
its total risk-based capital approximated 12.28%.
OUTLOOK FOR THE QUARTER ENDING JUNE 30, 2011
The average cost of deposits decreased to 1.16% during the March
2011 quarter from 1.18% during the December 2010 quarter, as Dime
continued to take advantage of historically low short-term interest
rates. Deposit funding costs should remain near this historically
low level at least through the second quarter of 2011.
Amortization rates (including prepayments and loan refinancing
activity), which approximated 19.5% on an annualized basis during
the most recent quarter, are expected to remain in this area during
the second quarter of 2011, up from the full year 2010 levels,
reflecting the current low interest rate environment. Loans
expected to mature or reprice during the remainder of the year
ending December 31, 2011 total $347.0 million, at an average rate
of 5.69%. Of this total, $169.6 million at an average rate of 5.66%
are expected to mature or reprice during the June 2011 quarter.
At March 31, 2011, the loan commitment pipeline was
approximately $121.8 million, comprised primarily of multifamily
residential loans, with an approximate weighted average rate of
4.98%.
On the liability side of the balance sheet, the Bank has $583.9
million of CD's maturing during the remainder of 2011 at an average
cost of 1.48%. Of this total, $222.0 million are maturing during
the June 2011 quarter, at an average cost of 1.61%. Rates on CDs
originated during the month ended March 31, 2011 approximated
1.50%. In addition, $105.8 million of FHLBNY advances with an
average cost of 3.68% are scheduled to mature or reprice during the
remainder of 2011, of which $50.8 million with an average cost of
4.11% are scheduled to mature during the June 2011 quarter.
Replacement rates on new FHLBNY advances range from 2.00% to 2.75%
for 4- to 5-year maturities, however, if the Company's consolidated
cash liquidity remains near its March 31, 2011 level, it is likely
that a portion of these maturing borrowings will not be
replaced.
Operating expenses for the June 2011 quarter are expected to
approximate $15.0 million, which is the estimated quarterly run
rate for the remainder of 2011, and reflects expected reductions in
the Company's deposit insurance costs resulting from the revised
FDIC recapitalization plan scheduled to commence in the June 2011
quarter.
Quarterly loan loss provisions were $1.4 million during the
March 2011 quarter, $3.3 million during the December 2010 quarter,
$667,000 during the September 2010 quarter, and $3.8 million during
the June 2010 quarter. If current trends hold for delinquent and
troubled loans, management expects loan loss provisioning to
continue to decline somewhat on a year-over-year basis.
ABOUT DIME COMMUNITY BANCSHARES
The Company (NASDAQ: DCOM) had $4.14 billion in consolidated
assets as of March 31, 2011, and is the parent company of the Bank.
The Bank was founded in 1864, is headquartered in Brooklyn, New
York, and currently has twenty-six 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)
March 31, December 31,
2011 2010
------------ ------------
ASSETS:
Cash and due from banks $ 171,745 $ 86,193
Investment securities held to maturity 7,192 6,641
Investment securities available for sale 133,641 85,642
Trading securities 1,541 1,490
Mortgage-backed securities available for sale 128,732 144,518
Federal funds sold and other short-term
investments 4,461 4,536
Real Estate Loans:
One-to-four family and cooperative apartment 110,024 116,886
Multifamily and underlying cooperative (1) 2,507,570 2,497,339
Commercial real estate (1) 818,837 833,314
Construction and land acquisition 13,475 15,238
Unearned discounts and net deferred loan
fees 4,811 5,013
------------ ------------
Total real estate loans 3,454,717 3,467,790
------------ ------------
Other loans 2,070 2,394
Allowance for loan losses (19,663) (19,166)
------------ ------------
Total loans, net 3,437,124 3,451,018
------------ ------------
Loans held for sale 1,721 3,308
Premises and fixed assets, net 32,381 31,613
Federal Home Loan Bank of New York capital
stock 51,718 51,718
Other real estate owned, net - -
Goodwill 55,638 55,638
Other assets 116,816 117,980
------------ ------------
TOTAL ASSETS $ 4,142,710 $ 4,040,295
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking $ 135,661 $ 125,730
Interest Bearing Checking 104,929 108,078
Savings 337,509 329,182
Money Market 735,557 727,939
------------ ------------
Sub-total 1,313,656 1,290,929
------------ ------------
Certificates of deposit 1,089,029 1,059,652
------------ ------------
Total Due to Depositors 2,402,685 2,350,581
------------ ------------
Escrow and other deposits 108,865 68,542
Securities sold under agreements to repurchase 195,000 195,000
Federal Home Loan Bank of New York advances 990,525 990,525
Subordinated Notes Sold - -
Trust Preferred Notes Payable 70,680 70,680
Other liabilities 37,933 36,233
------------ ------------
TOTAL LIABILITIES 3,805,688 3,711,561
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 51,309,559 shares and 51,219,609
shares issued at March 31, 2011 and
December 31, 2010, respectively, and 34,683,130
shares and 34,593,180 shares outstanding at
March 31, 2011 and December 31, 2010,
respectively) 513 512
Additional paid-in capital 227,061 225,585
Retained earnings 336,060 329,668
Unallocated common stock of Employee Stock
Ownership Plan (3,412) (3,470)
Unearned common stock of Restricted Stock
Awards (2,376) (2,684)
Common stock held by the Benefit Maintenance
Plan (7,979) (7,979)
Treasury stock (16,626,429 shares and
16,626,429 shares at March 31, 2011,
and December 31, 2010, respectively) (206,546) (206,546)
Accumulated other comprehensive loss, net (6,299) (6,352)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 337,022 328,734
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,142,710 $ 4,040,295
============ ============
(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
----------------------------------
December
March 31, 31, March 31,
2011 2010 2010
---------- ---------- ----------
Interest income:
Loans secured by real estate $ 50,629 $ 50,752 $ 50,122
Other loans 26 26 39
Mortgage-backed securities 1,452 1,621 2,271
Investment securities 316 268 407
Federal funds sold and other
short-term investments 772 857 742
---------- ---------- ----------
Total interest income 53,195 53,524 53,581
---------- ---------- ----------
Interest expense:
Deposits and escrow 6,785 7,005 7,593
Borrowed funds 11,367 11,385 13,222
---------- ---------- ----------
Total interest expense 18,152 18,390 20,815
---------- ---------- ----------
Net interest income 35,043 35,134 32,766
Provision for loan losses 1,426 3,262 3,447
---------- ---------- ----------
Net interest income after
provision for loan losses 33,617 31,872 29,319
---------- ---------- ----------
Non-interest income:
Service charges and other fees 763 748 936
Mortgage banking income (loss),
net 93 240 211
Other than temporary impairment
("OTTI") charge on securities (1) (63) (163) (166)
Gain (loss) on sale of other real
estate owned and other assets - 9 327
Gain (loss) on trading securities 46 46 242
Other 1,071 1,140 960
---------- ---------- ----------
Total non-interest income
(loss) 1,910 2,020 2,510
---------- ---------- ----------
Non-interest expense:
Compensation and benefits 9,727 9,300 8,886
Occupancy and equipment 2,689 2,276 2,258
Other 4,444 4,026 4,548
---------- ---------- ----------
Total non-interest expense 16,860 15,602 15,692
---------- ---------- ----------
Income before taxes 18,667 18,290 16,137
Income tax expense 7,587 7,730 6,667
---------- ---------- ----------
Net Income $ 11,080 $ 10,560 $ 9,470
========== ========== ==========
Earnings per Share:
Basic $ 0.33 $ 0.32 $ 0.29
========== ========== ==========
Diluted $ 0.33 $ 0.31 $ 0.28
========== ========== ==========
Average common shares outstanding
for Diluted EPS 33,725,726 33,538,319 33,249,082
(1) Total OTTI charges on securities were $216 during the three months
ended March 31, 2010. The non-credit component of OTTI was $50 during
the three months ended March 31, 2010. There were no non-credit OTTI
charges recognized during the three months ended March 31, 2011 and
December 31, 2010, respectively.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------
March 31, December 31, March 31,
2011 2010 2010
----------- ----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.33 $ 0.31 $ 0.28
Return on Average Assets 1.08% 1.05% 0.94%
Return on Average Stockholders'
Equity 13.31% 12.94% 12.59%
Return on Average Tangible
Stockholders' Equity 15.63% 15.29% 15.17%
Net Interest Spread 3.38% 3.51% 3.23%
Net Interest Margin 3.62% 3.71% 3.46%
Non-interest Expense to Average
Assets 1.65% 1.55% 1.56%
Efficiency Ratio 45.60% 41.87% 45.00%
Effective Tax Rate 40.64% 42.26% 41.31%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 9.72 $ 9.50 $ 8.97
Tangible Book Value Per Share 8.29 8.07 7.49
Average Balance Data:
Average Assets $ 4,089,222 $ 4,016,457 $ 4,015,428
Average Interest Earning Assets 3,872,270 3,789,755 3,790,014
Average Stockholders' Equity 332,946 326,529 300,874
Average Tangible Stockholders'
Equity 283,473 276,184 249,781
Average Loans 3,470,051 3,454,730 3,447,529
Average Deposits 2,368,300 2,353,411 2,247,985
Asset Quality Summary:
Net charge-offs $ 980 $ 1,211 $ 769
Non-accrual Loans 19,200 20,168 29,520
Nonperforming Loans/ Total Loans 0.56% 0.58% 0.85%
Nonperforming Assets (1) 19,770 20,732 30,936
Nonperforming Assets/Total Assets 0.48% 0.51% 0.75%
Allowance for Loan Loss/Total Loans 0.57% 0.55% 0.71%
Allowance for Loan
Loss/Nonperforming Loans 102.41% 95.03% 83.40%
Loans Delinquent 30 to 89 Days at
period end $ 12,103 $ 21,483 $ 19,688
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period
end 7.04% 7.01% 6.35%
Tangible Capital Ratio (Bank Only) 8.21% 8.22% 7.77%
Leverage Capital Ratio (Bank Only) 8.21% 8.22% 7.77%
Risk Based Capital Ratio (Bank Only) 12.28% 11.95% 11.79%
(1) Amount comprised of total non-accrual 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
-----------------------------------
March 31, 2011
-----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,468,902 $ 50,629 5.84%
Other loans 1,149 26 9.05
Mortgage-backed securities 129,635 1,452 4.48
Investment securities 134,299 316 0.94
Other short-term investments 138,285 772 2.23
----------- ---------- ----------
Total interest earning assets 3,872,270 $ 53,195 5.49%
----------- ----------
Non-interest earning assets 216,952
-----------
Total assets $ 4,089,222
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 99,305 $ 110 0.45%
Money Market accounts 732,274 1,258 0.70
Savings accounts 333,129 193 0.23
Certificates of deposit 1,068,006 5,224 1.98
----------- ---------- ----------
Total interest bearing
deposits 2,232,714 6,785 1.23
Borrowed Funds 1,256,205 11,367 3.67
----------- ---------- ----------
Total interest-bearing
liabilities 3,488,919 $ 18,152 2.11%
----------- ---------- ----------
Non-interest bearing checking
accounts 135,586
Other non-interest-bearing
liabilities 131,771
-----------
Total liabilities 3,756,276
Stockholders' equity 332,946
-----------
Total liabilities and stockholders'
equity $ 4,089,222
===========
Net interest income $ 35,043
==========
Net interest spread 3.38%
==========
Net interest-earning assets $ 383,351
===========
Net interest margin 3.62%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 110.99%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,368,300 $ 6,785 1.16%
Interest earning assets (excluding
prepayment and other fees) 5.56%
For the Three Months Ended
----------------------------------
December 31, 2010
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,453,522 $ 50,752 5.88%
Other loans 1,208 26 8.61
Mortgage-backed securities 148,032 1,621 4.38
Investment securities 82,288 268 1.30
Other short-term investments 104,705 857 3.27
----------- ---------- ----------
Total interest earning assets 3,789,755 $ 53,524 5.65%
----------- ----------
Non-interest earning assets 226,702
-----------
Total assets $ 4,016,457
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 99,464 $ 129 0.51%
Money Market accounts 727,566 1,202 0.66
Savings accounts 321,825 206 0.25
Certificates of deposit 1,073,640 5,468 2.02
----------- ---------- ----------
Total interest bearing
deposits 2,222,495 7,005 1.25
Borrowed Funds 1,194,118 11,385 3.78
----------- ---------- ----------
Total interest-bearing
liabilities 3,416,613 $ 18,390 2.14%
----------- ---------- ----------
Non-interest bearing checking
accounts 130,916
Other non-interest-bearing
liabilities 142,399
-----------
Total liabilities 3,689,928
Stockholders' equity 326,529
-----------
Total liabilities and stockholders'
equity $ 4,016,457
===========
Net interest income $ 35,134
==========
Net interest spread 3.51%
==========
Net interest-earning assets $ 373,142
===========
Net interest margin 3.71%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 110.92%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,353,411 $ 7,005 1.18%
Interest earning assets (excluding
prepayment and other fees) 5.56%
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%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS
(Dollars In thousands)
At March 31, At December 31, At March 31,
Non-Performing Loans 2011 2010 2010
----------- ----------- ------------
One- to four-family and
cooperative apartment $ 62 $ 223 $ 705
Multifamily residential and
mixed use (1) 5,451 8,654 24,099
Commercial real estate (1) 13,667 11,274 4,694
Other 20 17 22
----------- ----------- ------------
Total Non-Performing Loans (2) $ 19,200 $ 20,168 $ 29,520
----------- ----------- ------------
Other Non-Performing Assets
Other real estate owned (3) - - 707
Pooled bank trust preferred
securities 570 564 709
----------- ----------- ------------
Total Non-Performing Assets $ 19,770 $ 20,732 $ 30,936
----------- ----------- ------------
Troubled Debt Restructurings
not included in non-performing
loans
Multifamily residential and
mixed use 2,090 2,098
Commercial real estate 8,729 8,736 -
Construction - - -
Mixed Use Commercial 1,582 1,588 1,040
Other - - -
----------- ----------- ------------
Total Troubled Debt
Restructurings ("TDRs") (1) $ 12,401 $ 12,422 $ 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 some loans that have been modified
in a manner that would meet the criteria for a TDR. These non-accruing
TDR's, which totaled $7.4 million at March 31, 2011, $10.1 million at
December 31, 2010 and $15.7 million at March 31, 2010, respectively,
Are included in the non-performing loan table, but excluded from the
TDR amount shown above.
(3) Amount was fully comprised of multifamily residential loans at
March 31, 2010.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES
At March 31, At December 31,
2011 2010
----------- -----------
Total Non-Performing Assets $ 19,770 $ 20,732
Loans over 90 days past due on
accrual status 4,033 (4) 8,340
----------- -----------
PROBLEM ASSETS $ 23,803 $ 29,072
----------- -----------
Tier 1 Capital - Dime Savings
Bank of Williamsburgh $ 334,234 $ 326,554
Allowance for loan losses 19,663 19,166
----------- -----------
TANGIBLE CAPITAL PLUS
RESERVES $ 353,897 $ 345,720
----------- -----------
PROBLEM ASSETS AS A PERCENTAGE
OF TANGIBLE CAPITAL AND
RESERVES 6.7% 8.4%
(4) These loans are expected to be either satisfied or re-financed during
2011, and are not expected to result in any loss of contractual
principal or interest. These loans are not included in non-performing
loans.
Contact: Kenneth Ceonzo Director of Investor Relations
718-782-6200 extension 8279
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