Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company" or
"Dime"), the parent company of The Dime Savings Bank of
Williamsburgh (the "Bank"), today reported financial results for
the quarter ended March 31, 2013.
Consolidated net income for the quarter ended March 31, 2013 was
$10.6 million, or $0.30 per diluted share, compared to $6.7
million, or $0.19 per diluted share, for the quarter ended December
31, 2012, and $10.2 million, or $0.30 per diluted share, for the
quarter ended March 31, 2012.
Vincent F. Palagiano, Chairman and Chief Executive Officer of
Dime, commented, "The Company posted solid earnings during the most
recent quarter, over twice the level of our quarterly dividend. We
remain extremely pleased with both the credit strength of our
existing loan portfolio, with non-performing loans totaling less
than 1/4 of one percent of all portfolio loans at quarter end, and
the underlying strengthening of the real estate marketplace in
general. These favorable conditions should permit us to continue to
originate sufficient levels of high quality loans to meet our
growth targets."
There were no significant adjustment items to net income
warranting discussion during the three months ended either March
31, 2013 or 2012. During the quarter ended December 31, 2012, the
Company recognized an after-tax charge of $14.0 million, or $0.40
per share, on the prepayment of borrowed funds, which was partially
offset by after-tax gains of $7.5 million, or $0.22 per share, on
the sale of three real estate parcels. The Company also recognized
an after tax gain of $487,000, or $0.01 per share, during the
December 2012 quarter, on the sale of an equity mutual fund
investment. Excluding these three transactions, net income would
have been $12.8 million, or $0.37 per diluted share, during the
three months ended December 31, 2012.
Loan amortization and satisfactions, including refinances of
existing loans, fell from a 30% annualized rate during the December
2012 quarter to 23% during the March 2013 quarter. Prepayment fee
income, which is generally proportional to amortization levels,
also fell from $3.7 million (or $0.06 per diluted share after-tax)
during the December 2012 quarter to $2.3 million (or $0.04 per
diluted share after tax) during the March 2013 quarter. Compared to
the December 2012 quarter, the March 2013 quarter was also
adversely impacted by higher than forecasted non-interest expense,
due primarily to an unanticipated charge approximating $200,000 on
a foreclosed property, and approximately $350,000 of additional
non-interest expense items discussed later in this release that, by
their nature, are difficult to forecast.
Mr. Palagiano concluded, "We are starting to see the adverse
impact of the heightened refinancing activities spanning several
quarters upon our net interest margin, as our reported average
asset yield declined 36 basis points from the December 2012 quarter
to the March 2013 quarter. Additional liquidity generated during
the most recent quarter from deposit gathering activities also had
a dampening effect on the net interest margin. As we have mentioned
in previous news releases, we currently plan to pursue a measured
balance sheet growth strategy during 2013 to mitigate some of the
adverse impact of the anticipated contraction in net interest
margin during the year. Low credit costs and sufficient cash flows
from loan principal amortization and deposit gathering should help
us to maintain flexibility in managing the balance sheet throughout
the remainder of 2013."
OPERATING RESULTS FOR THE QUARTER ENDED MARCH
31, 2013
Net Interest Margin Net interest margin
("NIM") was 3.44% during the quarter ended March 31, 2013 compared
to 0.93% during the December 2012 quarter. The December 2012
quarter NIM was adversely impacted by 278 basis points as a result
of the cost incurred to prepay $155.0 million of borrowings in
October 2012. For forecasting purposes, the "core" NIM, excluding
the effect of both loan prepayment fees and borrowing prepayment
charges, decreased from 3.30% during the December 2012 quarter to
3.19% during the March 2013 quarter, primarily reflecting a
reduction of 21 basis points in the average yield on interest
earning assets (primarily caused by a reduction of 20 basis points
in the average yield on real estate loans exclusive of the effects
of prepayment fee income), that was partially offset by a reduction
of 8 basis points in the average cost of interest bearing
liabilities.
The reduction in the average cost of interest bearing
liabilities primarily reflected the benefits of the prepayment of
$155.0 million of higher cost borrowed funds in October 2012. In
addition, the average cost of deposits declined by 4 basis points
as the Bank continued to avail itself of the beneficially low
deposit offering rates in its market.
Cash balances increased $62.6 million during the March 2013
quarter. This increase adversely impacted net interest margin
during the period, as these funds were not yet fully invested. The
Company expects to deploy a substantial portion of the $62.6
million into real estate loan originations during the remainder of
2013, which should favorably contribute to net interest margin.
The 20 basis point decline in the average yield on real estate
loans (excluding the effects of prepayment fee income) on a linked
quarter basis resulted from the cumulative effect of increased
portfolio refinance and amortization activities experienced during
the year ended December 31, 2012, as U.S. Treasury yields hovered
at historically low levels, and loans repriced at lower rates.
Net Interest Income Net interest income
was $32.3 million in the quarter ended March 31, 2013, up $23.8
million from the December 2012 quarter and down $1.1 million from
the $33.4 million reported in the March 2012 quarter. The increase
from the previous quarter resulted primarily from the $25.6 million
pre-tax charge on the borrowing prepayment in October 2012.
Prepayment fee income on loans totaled $2.3 million during the
March 2013 quarter, compared to $3.7 million recognized in the
December 2012 quarter and $4.5 million during the March 2012
quarter. Absent the impact of loan prepayment fee income and
borrowing prepayment costs, net interest income was $30.0 million
during the March 31, 2013 quarter, down $471,000 from the December
31, 2012 quarter and $2.1 million from the March 31, 2012 quarter.
The decline in net interest income (absent the impact of loan
prepayment fee income and borrowing prepayment costs) from the
December 2012 quarter resulted primarily from a decline of 21 basis
points in the average yield earned on the Company's interest
earning assets, reflecting the ongoing loan refinancing activity in
the New York City metropolitan marketplace.
Provision/Allowance For Loan Losses The
Company recognized net charge-offs of $176,000 and provisioned
$157,000 for loan losses during the March 2013 quarter. This led to
a net reduction of $20,000 in the allowance for loan losses during
the quarter ended March 31, 2013.
At March 31, 2013, the allowance for loan losses as a percentage
of total loans stood at 0.58%, down from 0.59% at the close of the
prior quarter, primarily attributable to growth in the loan
portfolio and the small reduction in the allowance for loan losses
during the March 2013 quarter. The reduction in the allowance for
loan losses reflected the improvement in the overall credit quality
of the loan portfolio from December 31, 2012 to March 31, 2013.
Non-Interest Income Non-interest income
was $1.9 million for the quarter ended March 31, 2013, a reduction
of $14.6 million from the previous quarter, primarily reflecting
the pre-tax gains of $13.7 million on the sales of the three real
estate parcels and $887,000 on the sale of an equity mutual fund
investment that were recognized in the December 2012 quarter. Net
gains on sale of securities and other assets totaled $210,000 in
the March 2013 quarter, and related solely to mutual fund
investment activities. Mortgage banking income decreased $132,000
from the December 2012 quarter to the March 2013 quarter, due
primarily to a reduction of $86,000 in the recovery recognized on
the liability for the first loss position on loans sold with
recourse to Fannie Mae.
Non-Interest Expense Non-interest expense
was $16.3 million in the quarter ended March 31, 2013, up $1.6
million from the prior quarter, and $809,000 above the forecasted
level of $15.5 million. The increase from the previous quarter
reflected increases in salaries and benefits, marketing and legal
expenses, and was primarily attributable to adjustments made that
reduced these expenses during the December 2012 quarter. The
increase of $809,000 from the $15.5 million forecasted level
primarily reflected an unanticipated charge approximating $200,000
on a foreclosed property, a lower-than-forecasted offset to
non-interest expense of approximately $200,000 related to loan
origination costs, and approximately $150,000 of additional
benefits expense tied to the appreciation in the market value of
trading equity mutual funds. Absent unforeseen items or events,
non-interest expense is anticipated to approximate the $15.5
million average quarterly level forecasted for the year ending
December 31, 2013.
Non-interest expense was 1.65% of average assets during the most
recent quarter. The efficiency ratio approximated 48.0% during the
same period. This remains among the lowest efficiency ratios in the
industry, and is a longstanding hallmark of Dime.
Income Tax Expense The effective tax rate
approximated 40.4% during the most recent quarter, slightly below
the 41.0% forecasted level.
BALANCE SHEET Total assets were $3.98
billion at March 31, 2013, up $76.9 million from December 31, 2012.
Real estate loans increased $41.0 million during the quarter ended
March 31, 2013. Cash and due from banks increased by $62.6 million.
These funds are expected to be deployed in subsequent quarters.
Retail deposits increased $121.9 million, providing funding for
the balance sheet growth. Mortgagor escrow deposits increased $36.7
million during the March 2013 quarter in advance of semi-annual
payments to be made on behalf of borrowers in June 2013. The
Company elected to not replace $95.0 million of Federal Home Loan
Bank of New York ("FHLBNY") advances that matured during the March
2013 quarter.
Real Estate Loans Real estate loan
originations were $244.4 million during the March 2013 quarter, at
a weighted average interest rate of 3.54%. Of this amount, $79.0
million represented loan refinances from the existing portfolio.
Loan amortization and satisfactions, including the $79.0 million of
refinances of existing loans, totaled $200.3 million during the
quarter, or 22.8% of the average portfolio balance on an annualized
basis. The average rate on amortized and satisfied loan balances
during the most recent quarter was 5.93%. Total loan commitments
stood at $258.3 million at March 31, 2013, with a weighted average
rate of 3.28%. The average yield on the loan portfolio (excluding
prepayment fee income) during the quarter ended March 31, 2013 was
4.65%, compared to 4.85% during the December 2012 quarter and 5.34%
during the March 2012 quarter.
Credit Summary Non-performing loans
(excluding loans held for sale) were $8.2 million, or 0.23% of
total loans, at March 31, 2013, down from $8.9 million, or 0.25% of
total loans, at December 31, 2012. Loans delinquent between 30 and
89 days and accruing interest were $2.0 million, or approximately
0.06% of total loans, at March 31, 2013, compared to $7.2 million,
or 0.20% of total loans, at December 31, 2012.
The sum of non-performing assets represented 2.5% of tangible
capital plus the allowance for loan losses (a statistic otherwise
known as the "Texas Ratio") at March 31, 2013 (later in this
release). This number compares very favorably to both industry and
regional averages.
Within the pool of serviced loans previously sold to Fannie Mae
with recourse exposure, total loans delinquent 30 days or more
approximated $702,000 at March 31, 2013, relatively unchanged from
December 31, 2012. The remaining pool of loans serviced for Fannie
Mae totaled $244.2 million as of March 31, 2013, down from $256.7
million as of December 31, 2012. Due to both ongoing amortization
and stabilization of problem loans within the Fannie Mae portfolio,
the Company determined that its liability for the first loss
position could be reduced by $92,000, which was recognized during
the quarter ended March 31, 2013.
Deposits and Borrowed Funds Retail
deposits increased $121.9 million from December 31, 2012 to March
31, 2013, due primarily to net inflows of $116.1 million in money
market deposits and $13.1 million in non-interest bearing checking
accounts. The Bank was more aggressive in its promotional deposit
pricing during the March 2013 quarter as part of its long-term
strategy to emphasize deposits to fund growth rather than
borrowings. At March 31, 2013, average deposit balances
approximated $100.1 million per branch. The Bank remains selective
in the products, rates and terms on which it competes for deposits,
focusing on products that encourage long-term customer retention,
and discouraging renewals of promotional deposits in cases where
customer relationships have not proved durable.
As previously discussed, as a result of successful deposit
gathering efforts, the Company did not elect to replace $95.0
million of FHLBNY borrowings that matured during the quarter ended
March 31, 2013. Despite the long-term goal of emphasizing deposits
to fund growth, the Company intends to continue to use FHLBNY
advances to supplement deposit funding when deemed appropriate.
Capital The Company's consolidated
tangible common equity ratio (Tier 1 core leverage) grew during the
most recent quarter as a result of increased retained earnings.
Consolidated tangible capital was 9.02% of tangible assets at March
31, 2013, an increase of 5 basis points from December 31, 2012. The
Company also had approximately $70.7 million of trust preferred
debt securities outstanding at March 31, 2013, which, when added to
Tier 1 (tangible) capital, increased its consolidated Tier 1
(tangible) capital ratio to approximately 10.8%.
The Bank's tangible capital ratio was 9.97% at March 31, 2013,
relatively unchanged from December 31, 2012. The Bank's Total
Risk-Based Capital Ratio was 13.76% at March 31, 2013, compared to
13.67% at December 31, 2012.
Reported earnings per share exceeded the quarterly cash dividend
rate per share by 114%, equating to a 47% payout ratio. Additions
to capital from earnings and stock option exercises during the most
recent quarterly period caused tangible book value per share to
increase $0.20 sequentially during the most recent quarter, to
$9.87 at March 31, 2013.
OUTLOOK FOR THE QUARTER ENDING JUNE 30,
2013 At March 31, 2013, Dime had outstanding loan commitments
totaling $258.3 million (of which $97 million related to loan
refinances from the existing portfolio), all of which are likely to
close during the quarter ending June 30, 2013, at an average
expected interest rate approximating 3.3%.
As discussed earlier in the release, the Company has
transitioned into a period of measured loan portfolio and balance
sheet growth, in part to utilize capital efficiently and in part to
mitigate the effects of a contracting margin. For the year ending
December 31, 2013, balance sheet growth is targeted to approximate
5.0%, subject to change to reflect market conditions. Loan
prepayments and amortization remained elevated during the most
recent quarter, however are currently anticipated to fall below
their 30% annualized 2012 level during the year ending December
2013, and are expected to approximate 20% - 25% during the June
2013 quarter.
On the liability side, deposit funding costs are expected to
remain near current historically low levels through the second
quarter of 2013. The Bank has $178.6 million of certificates of
deposit ("CDs") maturing at an average cost of 1.19% during the
quarter ending June 30, 2013. Offering rates on 12-month term CDs
currently approximate 50 basis points. The Company has $10.0
million of borrowings due to mature during the quarter ending June
30, 2013 at an average cost of 3.91%. The Company currently
anticipates these borrowings will be replaced with deposits.
Loan loss provisioning will likely continue to be a function of
loan portfolio growth, incurred losses and the overall credit
quality of the loan portfolio.
Absent any unforeseen items, non-interest expense is expected to
approximate $15.5 million during the June 2013 quarter.
The Company projects that the consolidated effective tax rate
will approximate 40.0% in the June 2013 quarter, a slight decline
from the 41% level previously forecasted.
ABOUT DIME COMMUNITY BANCSHARES, INC. The
Company (NASDAQ: DCOM) had $3.98 billion in consolidated assets as
of March 31, 2013, 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,
2013 2012
------------ ------------
ASSETS:
Cash and due from banks $ 141,656 $ 79,076
Investment securities held to maturity 5,746 5,927
Investment securities available for sale 18,330 32,950
Trading securities 4,978 4,874
Mortgage-backed securities available for sale 43,383 49,021
Real Estate Loans:
One-to-four family and cooperative apartment 86,012 91,876
Multifamily and loans underlying cooperatives
(1) 2,706,854 2,670,973
Commercial real estate (1) 747,035 735,224
Construction and land acquisition 416 476
Unearned discounts and net deferred loan fees 4,070 4,836
------------ ------------
Total real estate loans 3,544,387 3,503,385
------------ ------------
Other loans 1,967 2,423
Allowance for loan losses (20,530) (20,550)
------------ ------------
Total loans, net 3,525,824 3,485,258
------------ ------------
Loans held for sale 469 560
Premises and fixed assets, net 30,065 30,518
Federal Home Loan Bank of New York capital stock 40,736 45,011
Goodwill 55,638 55,638
Other assets 115,500 116,566
------------ ------------
TOTAL ASSETS $ 3,982,325 $ 3,905,399
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking $ 172,254 $ 159,144
Interest Bearing Checking 92,981 95,159
Savings 379,341 371,792
Money Market 1,077,409 961,359
------------ ------------
Sub-total 1,721,985 1,587,454
------------ ------------
Certificates of deposit 879,330 891,975
------------ ------------
Total Due to Depositors 2,601,315 2,479,429
------------ ------------
Escrow and other deposits 119,452 82,753
Federal Home Loan Bank of New York advances 747,500 842,500
Trust Preferred Notes Payable 70,680 70,680
Other liabilities 42,878 38,463
------------ ------------
TOTAL LIABILITIES 3,581,825 3,513,825
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 52,178,819 shares and 52,021,149
shares issued at March 31, 2013 and December 31,
2012, respectively,and 35,871,939 shares, and
35,714,269 shares outstanding at March 31, 2013
and December 31, 2012, respectively) 522 520
Additional paid-in capital 241,464 239,041
Retained earnings 384,855 379,166
Unallocated common stock of Employee Stock
Ownership Plan (2,950) (3,007)
Unearned common stock of Restricted Stock Awards (2,596) (3,122)
Common stock held by the Benefit Maintenance Plan (8,800) (8,800)
Treasury stock (16,306,880 shares at both March
31, 2013 and December 31, 2012) (202,574) (202,584)
Accumulated other comprehensive loss, net (9,421) (9,640)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 400,500 391,574
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,982,325 $ 3,905,399
============ ============
(1) While the loans within both of these categories are often considered
"commercial real estate" in nature, multifamily and loans underlying
cooperatives are here reported separately from commercial real estate
loans in order to emphasize the residential nature of the collateral
underlying a significant component of the total loan portfolio.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except share and per share amounts)
For the Three Months Ended
----------------------------------------
March 31, December 31, March 31,
2013 2012 2012
------------ ------------ ------------
Interest income:
Loans secured by real estate $ 43,148 $ 45,414 $ 50,513
Other loans 25 28 20
Mortgage-backed securities 459 569 947
Investment securities 129 220 315
Federal funds sold and other
short-term investments 544 518 674
------------ ------------ ------------
Total interest income 44,305 46,749 52,469
------------ ------------ ------------
Interest expense:
Deposits and escrow 5,201 5,330 5,726
Borrowed funds 6,790 32,868 13,349
------------ ------------ ------------
Total interest expense 11,991 38,198 19,075
------------ ------------ ------------
Net interest income 32,314 8,551 33,394
Provision for loan losses 157 63 1,457
------------ ------------ ------------
Net interest income after provision
for loan losses 32,157 8,488 31,937
------------ ------------ ------------
Non-interest income:
Service charges and other fees 712 605 795
Mortgage banking income, net 161 293 121
Other than temporary impairment
("OTTI") charge on securities
(1) - - (181)
Gain on sale of securities and
other assets 110 14,704 -
Gain (loss) on trading securities 100 (23) 106
Other 815 919 949
------------ ------------ ------------
Total non-interest income 1,898 16,498 1,790
------------ ------------ ------------
Non-interest expense:
Compensation and benefits 9,951 9,012 9,935
Occupancy and equipment 2,532 2,621 2,471
Federal deposit insurance
premiums 511 500 599
Other 3,315 2,584 3,403
------------ ------------ ------------
Total non-interest expense 16,309 14,717 16,408
------------ ------------ ------------
Income before taxes 17,746 10,269 17,319
Income tax expense 7,176 3,534 7,072
------------ ------------ ------------
Net Income $ 10,570 $ 6,735 $ 10,247
============ ============ ============
Earnings per Share:
Basic $ 0.30 $ 0.19 $ 0.30
============ ============ ============
Diluted $ 0.30 $ 0.19 $ 0.30
============ ============ ============
Average common shares outstanding
for Diluted EPS 34,879,239 34,594,167 34,141,575
-----------------------------------
(1) Total OTTI charges on securities are summarized as follows for the
periods presented:
Credit component (shown above) $ - $ - $ 181
Non-credit component not included
in earnings - - 6
------------ ------------ ------------
Total OTTI charges $ - $ - $ 187
------------ ------------ ------------
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,
2013 2012 2012
------------ ------------ ------------
Reconciliation of Reported and
Adjusted Earnings (1):
Net Income $ 10,570 $ 6,735 $ 10,247
Add: After-tax expense associated
with the prepayment of borrowings - 14,032 -
Add: After-tax charge for OTTI on
securities - - 99
Less: After tax gain on sale of
real estate properties - (7,529) -
Less: After tax gain on sale of
equity mutual funds - (487) -
------------ ------------ ------------
Adjusted net income $ 10,570 $ 12,751 $ 10,346
============ ============ ============
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.30 $ 0.19 $ 0.30
Return on Average Assets 1.07% 0.69% 1.01%
Return on Average Stockholders'
Equity 10.63% 7.06% 11.22%
Return on Average Tangible
Stockholders' Equity 12.07% 7.97% 12.84%
Net Interest Spread 3.21% 0.29% 3.20%
Net Interest Margin 3.44% 0.93% 3.47%
Non-interest Expense to Average
Assets 1.65% 1.51% 1.62%
Efficiency Ratio 47.97% 141.95% 46.54%
Effective Tax Rate 40.44% 34.41% 40.83%
Performance Ratios (Based upon
Adjusted Earnings):
Reported EPS (Diluted) $ 0.30 $ 0.37 $ 0.30
Return on Average Assets 1.07% 1.31% 1.02%
Return on Average Stockholders'
Equity 10.63% 13.37% 11.33%
Return on Average Tangible
Stockholders' Equity 12.07% 15.09% 12.96%
Net Interest Spread 3.21% 3.09% 3.11%
Net Interest Margin 3.44% 3.30% 3.33%
Non-interest Expense to Average
Assets 1.65% 1.51% 1.62%
Efficiency Ratio 47.97% 40.94% 46.54%
Effective Tax Rate 40.44% 39.96% 40.83%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 11.16 $ 10.96 $ 10.47
Tangible Book Value Per Share 9.87 9.67 9.15
Average Balance Data:
Average Assets $ 3,945,321 $ 3,890,420 $ 4,053,115
Average Interest Earning Assets 3,759,778 3,686,130 3,844,480
Average Stockholders' Equity 397,594 381,368 365,362
Average Tangible Stockholders'
Equity 350,277 337,961 319,212
Average Loans 3,507,830 3,443,136 3,441,696
Average Deposits 2,571,771 2,459,385 2,358,200
Asset Quality Summary:
Net charge-offs $ 177 $ 207 $ 2,263
Non-performing Loans (2) 8,172 8,888 14,808
Non-performing Loans/ Total Loans 0.23% 0.25% 0.43%
Nonperforming Assets (3) $ 9,921 $ 10,340 $ 17,029
Nonperforming Assets/Total Assets 0.25% 0.25% 0.42%
Allowance for Loan Loss/Total Loans 0.58% 0.59% 0.57%
Allowance for Loan Loss/Non-
performing Loans 251.22% 231.21% 131.47%
Loans Delinquent 30 to 89 Days at
period end $ 1,985 $ 7,171 $ 5,727
Consolidated Tangible Stockholders'
Equity to Tangible Assets at
period end 9.02% 8.97% 8.13%
Regulatory Capital Ratios (Bank
Only):
Leverage Capital Ratio 9.97% 9.98% 9.28%
Tier One Risk Based Capital Ratio 13.02% 12.95% 11.81%
Total Risk Based Capital Ratio 13.76% 13.67% 12.47%
(1) Adjusted earnings is a "non-GAAP" measure. A reconciliation from the
comparable GAAP measure is provided herein.
(2) Amount excludes $270,000 of loans held for sale that were on non-
accrual status at March 31, 2013.
(3) Amount comprised of total non-accrual loans, and the recorded balance
of pooled bank trust preferred security investments for which the Bank
had 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,
2013
------------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ----------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,505,646 $ 43,148 4.92%
Other loans 2,184 25 4.58
Mortgage-backed securities 45,477 459 4.04
Investment securities 42,807 129 1.21
Other short-term investments 163,664 544 1.33
----------- ----------- ----------
Total interest earning assets 3,759,778 $ 44,305 4.71%
----------- -----------
Non-interest earning assets 185,543
-----------
Total assets $ 3,945,321
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking accounts $ 93,219 $ 70 0.30%
Money Market accounts 1,059,236 1,490 0.57
Savings accounts 375,374 101 0.11
Certificates of deposit 881,883 3,540 1.63
----------- ----------- ----------
Total interest bearing deposits 2,409,712 5,201 0.88
Borrowed Funds 837,402 6,790 3.29
----------- ----------- ----------
Total interest-bearing liabilities 3,247,114 $ 11,991 1.50%
----------- -----------
Non-interest bearing checking
accounts 162,059
Other non-interest-bearing
liabilities 138,554
-----------
Total liabilities 3,547,727
Stockholders' equity 397,594
-----------
Total liabilities and stockholders'
equity $ 3,945,321
===========
Net interest income $ 32,314
===========
Net interest spread 3.21%
==========
Net interest-earning assets $ 512,664
===========
Net interest margin 3.44%
==========
Ratio of interest-earning assets to
interest-bearing liabilities 115.79%
===========
Deposits (including non-interest
bearing checking accounts) $ 2,571,771 $ 5,201 0.82%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment fee
income $ 2,360
----------- ----------- ----------
Borrowing prepayment costs -
----------- ----------- ----------
Real estate loans (excluding
prepayment and late payment fees) 4.65%
----------- ----------- ----------
Interest earning assets (excluding
prepayment and late payment fees) 4.46%
----------- ----------- ----------
Borrowings (excluding prepayment
costs) $ 837,402 $ 6,790 3.29%
----------- ----------- ----------
Interest bearing liabilities
(excluding borrowing prepayment
costs) 1.50%
----------- ----------- ----------
Net Interest income (excluding loan
prepayment and late payment fees and
borrowing prepayment costs) $ 29,954
----------- ----------- ----------
Net Interest margin (excluding loan
prepayment and late payment fees and
borrowing prepayment costs) 3.19%
----------- ----------- ----------
For the Three Months Ended
------------------------------------
December
31, 2012
------------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ----------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,440,784 $ 45,414 5.28%
Other loans 2,352 28 4.76
Mortgage-backed securities 60,129 569 3.79
Investment securities 48,089 220 1.83
Other short-term investments 134,776 518 1.54
----------- ----------- ----------
Total interest earning assets 3,686,130 $ 46,749 5.07%
----------- -----------
Non-interest earning assets 204,290
-----------
Total assets $ 3,890,420
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking accounts $ 94,870 $ 96 0.40%
Money Market accounts 929,856 1,296 0.55
Savings accounts 369,796 138 0.15
Certificates of deposit 910,335 3,800 1.66
----------- ----------- ----------
Total interest bearing deposits 2,304,857 5,330 0.92
Borrowed Funds 876,604 32,868 14.92
----------- ----------- ----------
Total interest-bearing liabilities 3,181,461 $ 38,198 4.78%
----------- -----------
Non-interest bearing checking
accounts 154,528
Other non-interest-bearing
liabilities 173,063
-----------
Total liabilities 3,509,052
Stockholders' equity 381,368
-----------
Total liabilities and stockholders'
equity $ 3,890,420
===========
Net interest income $ 8,551
===========
Net interest spread 0.29%
==========
Net interest-earning assets $ 504,669
===========
Net interest margin 0.93%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 115.86%
===========
Deposits (including non-interest
bearing checking accounts) $ 2,459,385 $ 5,330 0.86%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment fee
income $ 3,708
----------- ----------- ----------
Borrowing prepayment costs $ 25,582
----------- ----------- ----------
Real estate loans (excluding
prepayment and late payment fees) 4.85%
----------- ----------- ----------
Interest earning assets (excluding
prepayment and late payment fees) 4.67%
----------- ----------- ----------
Borrowings (excluding prepayment
costs) $ 876,604 $ 7,286 3.31%
----------- ----------- ----------
Interest bearing liabilities
(excluding borrowing prepayment
costs) 1.58%
----------- ----------- ----------
Net Interest income (excluding loan
prepayment and late payment fees and
borrowing prepayment costs) $ 30,425
----------- ----------- ----------
Net Interest margin (excluding loan
prepayment and late payment fees and
borrowing prepayment costs) 3.30%
----------- ----------- ----------
For the Three Months Ended
------------------------------------
March 31,
2012
------------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ----------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,440,621 $ 50,513 5.87%
Other loans 1,075 20 7.44
Mortgage-backed securities 83,704 947 4.53
Investment securities 160,792 315 0.78
Other short-term investments 158,288 674 1.70
----------- ----------- ----------
Total interest earning assets 3,844,480 $ 52,469 5.46%
----------- -----------
Non-interest earning assets 208,635
-----------
Total assets $ 4,053,115
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking accounts $ 89,930 $ 49 0.22%
Money Market accounts 782,446 1,126 0.58
Savings accounts 357,371 163 0.18
Certificates of deposit 978,097 4,388 1.80
----------- ----------- ----------
Total interest bearing deposits 2,207,844 5,726 1.04
Borrowed Funds 1,192,982 13,349 4.50
----------- ----------- ----------
Total interest-bearing liabilities 3,400,826 $ 19,075 2.26%
----------- -----------
Non-interest bearing checking
accounts 150,356
Other non-interest-bearing
liabilities 136,571
-----------
Total liabilities 3,687,753
Stockholders' equity 365,362
-----------
Total liabilities and stockholders'
equity $ 4,053,115
===========
Net interest income $ 33,394
===========
Net interest spread 3.20%
==========
Net interest-earning assets $ 443,654
===========
Net interest margin 3.47%
==========
Ratio of interest-earning assets to
interest-bearing liabilities 113.05%
===========
Deposits (including non-interest
bearing checking accounts) $ 2,358,200 $ 5,726 0.98%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment fee
income $ 4,549
----------- ----------- ----------
Borrowing prepayment costs $ 3,191
----------- ----------- ----------
Real estate loans (excluding
prepayment and late payment fees) 5.34%
----------- ----------- ----------
Interest earning assets (excluding
prepayment and late payment fees) 4.99%
----------- ----------- ----------
Borrowings (excluding prepayment
costs) $ 1,192,982 $ 10,158 3.42%
----------- ----------- ----------
Interest bearing liabilities
(excluding borrowing prepayment
costs) 1.88%
----------- ----------- ----------
Net Interest income (excluding loan
prepayment and late payment fees and
borrowing prepayment costs) $ 32,036
----------- ----------- ----------
Net Interest margin (excluding loan
prepayment and late payment fees and
borrowing prepayment costs) 3.33%
----------- ----------- ----------
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 2013 2012 2012
------------ --------------- ------------
One- to four-family and
cooperative apartment $ 697 $ 938 $ 1,206
Multifamily residential and
mixed use residential real
estate (1) 809 507 4,253
Mixed use commercial real estate
(1) 1,159 1,170 840
Commercial real estate 5,500 6,265 8,506
Construction - - -
Other 7 8 3
------------ --------------- ------------
Total Non-Performing Loans (2) $ 8,172 $ 8,888 $ 14,808
------------ --------------- ------------
Other Non-Performing Assets
Other real estate owned (3) 585 - -
Pooled bank trust preferred
securities (3) 894 892 828
Non-performing loans held for
sale:
Mixed use commercial real
estate (3) 270 560 1,000
Multifamily residential and
mixed use residential real
estate (3) - - 393
------------ --------------- ------------
Total Non-Performing Assets $ 9,921 $ 10,340 $ 17,029
------------ --------------- ------------
Troubled Debt Restructurings
("TDRs") not included in non-
performing loans (2)
One- to four-family and
cooperative apartment 944 948 623
Multifamily residential and
mixed use residential real
estate (1) 1,538 1,953 2,458
Mixed use commercial real estate
(1) 724 729 1,140
Commercial real estate 38,238 41,228 39,973
------------ --------------- ------------
Total Performing TDRs $ 41,444 $ 44,858 $ 44,194
------------ --------------- ------------
(1) Includes loans underlying cooperatives. While the loans within these
categories are often considered "commercial real estate" in nature,
they are classified separately in the statement above to provide
further emphasis of the discrete composition of their underlying real
estate collateral.
(2) Total non-performing loans include some loans that were modified in a
manner that met the criteria for a TDR.These non-accruing TDRs, which
totaled $5,895 at March 31, 2013, $6,265 at December 31, 2012 and
$7,866 at March 31, 2012, are included in the non-performing loan
table, but excluded from the TDR amount shown above.
(3) These assets were deemed non-performing since the Company had, as of
the dates indicated, not received any payments of principal or interest
on them for a period of at least 90 days.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND
RESERVES
At March 31, At December 31, At March 31,
2013 2012 2012
------------- --------------- -------------
Total Non-Performing Assets $ 9,921 $ 10,340 $ 17,029
Loans 90 days or more past due
on accrual status (4) 186 190 5,818
------------- --------------- -------------
TOTAL PROBLEM ASSETS $ 10,107 $ 10,530 $ 22,847
------------- --------------- -------------
Tier One Capital - The Dime
Savings Bank of Williamsburgh $ 390,129 $ 383,042 $ 366,593
Allowance for loan losses 20,530 20,550 19,468
------------- --------------- -------------
TANGIBLE CAPITAL PLUS RESERVES $ 410,659 $ 403,592 $ 386,061
------------- --------------- -------------
PROBLEM ASSETS AS A PERCENTAGE
OF TANGIBLE CAPITAL AND
RESERVES 2.5% 2.6% 5.9%
(4) These loans were, as of the respective dates indicated, expected to be
either satisfied, made current or re-financed within the next twelve
months, and were 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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