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 June 30, 2013. Consolidated net income for the
quarter ended June 30, 2013 was $12.0 million, or $0.34 per diluted
share, compared to $10.6 million, or $0.30 per diluted share, for
the quarter ended March 31, 2013, and $11.5 million, or $0.34 per
diluted share, for the quarter ended June 30, 2012.
Vincent F. Palagiano, Chairman and Chief Executive Officer of
Dime, commented, "Second quarter earnings benefitted from both
higher prepayment fees and lower credit costs. Core net interest
margin, which excludes prepayment fees, declined only slightly, to
3.06%, and we just completed one of the highest quarterly periods
of loan originations in our history, closing $325.6 million of
loans during the June 2013 quarter. The loan pipeline at June 30,
2013 remained strong at $222.1 million. The annualized growth rate
in the real estate loan portfolio was approximately 6% during the
first six months of 2013, putting the Company on track to meet its
2013 goal."
"More importantly," continued Mr. Palagiano, "the yield curve is
steepening, and interest rate offerings in the multifamily sector
have now turned up from their historic lows in this cycle. Although
margin may continue to soften in the short term, the new higher
rates on loans should be beneficial to spread lenders like Dime
thereafter."
Loan amortization and satisfactions, including refinances of
existing loans, increased from a 23% annualized rate during the
March 2013 quarter to 33.2% during the June 2013 quarter.
Prepayment fee income, which is generally proportional to
amortization levels, also grew from $2.3 million (or $0.04 per
diluted share after-tax) during the March 2013 quarter to $4.6
million (or $0.08 per diluted share after tax) during the June 2013
quarter.
Mr. Palagiano concluded, "At the end of the previous quarter,
the Bank had a surplus liquidity position which was causing a
slight drag on net interest margin. In the most recent quarter,
cash was reduced by approximately $80 million and redeployed into
mortgages, which helped optimize the quarterly core net interest
margin. As stated at the outset of the calendar year, we anticipate
that balance sheet growth, now combined with a steeper yield curve,
will partially offset the earnings contraction that might be
expected from a declining net interest margin."
OPERATING RESULTS FOR THE QUARTER ENDED JUNE
30, 2013
Net Interest Margin Net interest margin
("NIM") was 3.55% during the quarter ended June 30, 2013 compared
to 3.44% during the March 2013 quarter. For forecasting purposes,
the "core" NIM, excluding the effect of loan prepayment fees,
decreased from 3.19% during the March 2013 quarter to 3.06% during
the June 2013 quarter, reflecting a reduction of 15 basis points in
the average yield on interest earning assets (primarily caused by a
reduction of 21 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 4 basis points in the average
cost of interest bearing liabilities.
A 3 basis point decline in the average cost of deposits helped
to reduce the average cost of all interest bearing liabilities, as
bank deposit rates (mainly short term) remained low in the Bank's
market area.
As previously mentioned, NIM benefitted from the re-deployment
of $80.4 million of cash into loans, at a positive spread of
approximately 300 basis points. The 21 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 period July 2012 through June
2013, as U.S. Treasury yields hovered at historically low levels,
and loans repriced at lower rates. During the June 2013 quarter,
these yields began to rise from their cyclical lows. Rates offered
on prime (low loan-to-value) 5-year repricing multifamily loans are
now in the range of 3.50% to 3.75%.
Net Interest Income Net interest income
was $33.8 million in the quarter ended June 30, 2013, up $1.4
million from the March 2013 quarter and down $746,000 from the
$34.5 million reported in the June 2012 quarter. Prepayment fee
income on loans totaled $4.6 million during the June 2013 quarter,
compared to $2.3 million recognized in the March 2013 quarter and
$3.5 million during the June 2012 quarter. Absent the impact of
loan prepayment fee income, net interest income was $29.1 million
during the June 30, 2013 quarter, down $894,000 from the March 31,
2013 quarter and $2.0 million from the June 30, 2012 quarter. The
decline in net interest income (excluding loan prepayment fee
income) from the March 2013 quarter resulted primarily from a
decline of 15 basis points in the average yield earned on the
Company's interest earning assets, reflecting the ongoing loan
refinancing activity.
Provision/Allowance For Loan Losses The
Company recognized net charge-offs of $57,000 and provisioned
$28,000 for loan losses during the June 2013 quarter. This led to a
net reduction of $28,000 in the allowance for loan losses from
March 31, 2013 to June 30, 2013. The quarterly loan loss provision
dropped from $157,000 in the March 2013 quarter to $28,000 in the
June 2013 quarter.
At June 30, 2013, the allowance for loan losses as a percentage
of total loans stood at 0.57%, down slightly from 0.58% 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 June 2013 quarter. The reduction in both the
period end allowance and the quarterly provision for loan losses
reflected the improvement in the overall credit quality of the loan
portfolio from December 31, 2012 to June 30, 2013.
Non-Interest Income Non-interest income
was $1.7 million for the quarter ended June 30, 2013, a reduction
of $176,000 from the previous quarter. Net gains on the sale of
securities and other assets fell $110,000 from the March 2013
quarter, resulting from a gain related to mutual fund investments
during the March 2013 quarter. Mortgage banking income decreased
$49,000 from the March 2013 quarter to the June 2013 quarter, due
primarily to a reduction of $46,000 in loan servicing fee income,
reflecting an ongoing reduction in the portfolio of serviced
loans.
Non-Interest Expense Non-interest expense
was $15.3 million in the quarter ended June 30, 2013, down $1.0
million from the prior quarter, and generally in line with the
forecasted level of $15.5 million. 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 1.53% of average assets during the most
recent quarter. The efficiency ratio approximated 43.2% during the
same period.
Income Tax Expense The effective tax rate
approximated 40.1% during the most recent quarter, generally in
line with the 40.0% forecasted level.
BALANCE SHEET Total assets were $3.95
billion at June 30, 2013, down $31.1 million from March 31, 2013.
Cash balances decreased by $80.4 million, partially offset by an
increase of $59.9 million in real estate loans.
Retail deposits remained relatively flat during the most recent
quarter, and the Company elected to not replace $10.0 million of
Federal Home Loan Bank of New York ("FHLBNY") advances that matured
during the June 2013 quarter, instead utilizing the additional
liquidity generated during the March 2013 quarter to meet funding
obligations. While this led to a slight decline in total assets
during the most recent quarter, assets have grown by approximately
2.5% on an annualized basis during the first six months of 2013,
and remain forecasted to grow approximately 5% during the year
ending December 31, 2013.
Real Estate Loans Real estate loan
originations were $325.6 million during the June 2013 quarter, at a
weighted average interest rate of 3.30%. Of this amount, $136.7
million represented loan refinances from the existing portfolio.
Loan amortization and satisfactions, including the $136.7 million
of refinances of existing loans, totaled $296.4 million during the
quarter, or 33.2% of the average portfolio balance on an annualized
basis. The average rate on amortized and satisfied loan balances
during the most recent quarter was 5.35%. Total loan commitments
stood at $222.1 million at June 30, 2013, with a weighted average
rate of 3.28%. The average yield on the loan portfolio (excluding
prepayment fee income) during the quarter ended June 30, 2013 was
4.44%, compared to 4.65% during the March 2013 quarter and 5.16%
during the June 2012 quarter.
Credit Summary Non-performing loans
(excluding loans held for sale) were $9.5 million, or 0.26% of
total loans, at June 30, 2013, up from $8.2 million, or 0.23% of
total loans, at March 31, 2013. Loans delinquent between 30 and 89
days and accruing interest fell to $159,000, or approximately
0.004% of total loans, at June 30, 2013, compared to $2.0 million,
or 0.06% of total loans, at March 31, 2013.
At June 30, 2013, non-performing assets represented 2.9% of the
sum of tangible capital plus the allowance for loan losses (this
statistic is otherwise known as the "Texas Ratio"). 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 $700,000 at June 30, 2013, relatively unchanged from
March 31, 2013. The remaining pool of loans serviced for Fannie Mae
totaled $229.2 million as of June 30, 2013, down from $244.2
million as of March 31, 2013. 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 $102,000, which was recognized during the
quarter ended June 30, 2013.
Deposits and Borrowed Funds Retail
deposits increased $6.3 million from March 31, 2013 to June 30,
2013, due primarily to net inflows of $14.9 million in money market
deposits. The Bank did not implement any significant promotional
deposit activities during the June 2013 quarter, and enacted slight
reductions in rates that resulted in a reduction of 3 basis points
in the average cost of deposits during the June 2013 quarter. At
June 30, 2013, average deposit balances approximated $100.3 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 $10.0
million of FHLBNY borrowings that matured during the quarter ended
June 30, 2013. The Company intends 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 9.31% of tangible assets at June
30, 2013, an increase of 29 basis points from March 31, 2013. The
Company also had approximately $70.7 million of trust preferred
debt securities outstanding at June 30, 2013, which, when added to
Tier 1 (tangible) capital, increased its consolidated Tier 1
(tangible) capital ratio to approximately 11.1%.
The Bank's tangible capital ratio was 10.27% at June 30, 2013,
up from 9.97% at March 31, 2013. The Bank's Total Risk-Based
Capital Ratio was 13.95% at June 30, 2013, compared to 13.76% at
March 31, 2013.
Reported EPS exceeded the quarterly cash dividend rate per share
by 143%, equating to a 41% 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
$0.19 sequentially during the most recent quarter, to $10.06 at
June 30, 2013.
OUTLOOK FOR THE QUARTER ENDING SEPTEMBER 30,
2013 At June 30, 2013, Dime had outstanding loan commitments
totaling $222.1 million (of which $77 million related to loan
refinances from the existing portfolio), all of which are likely to
close during the quarter ending September 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 recent levels for the remainder of 2013, and are expected to
approximate 20% - 25% on an annualized basis during the September
2013 quarter.
On the liability side, deposit funding costs are expected to
remain near current historically low levels through the third
quarter of 2013. The Bank has $138.4 million of certificates of
deposit ("CDs") maturing at an average cost of 1.14% during the
quarter ending September 30, 2013. Offering rates on 12-month term
CDs currently approximate 50 basis points. The Company has $25.0
million of borrowings due to mature during the quarter ending
September 30, 2013 at an average cost of 2.80%. FHLBNY advance
rates for 3-year and 4-year borrowings were 1.00% and 1.50%
respectively, as of July 17, 2013. In the coming quarter,
management expects to utilize advances rather than deposits to fund
growth as a long-term interest rate hedge against future higher
rates.
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 September 2013 quarter.
The Company projects that the consolidated effective tax rate
will approximate 40.0% in the September 2013 quarter.
ABOUT DIME COMMUNITY BANCSHARES, INC. The
Company (NASDAQ: DCOM) had $3.95 billion in consolidated assets as
of June 30, 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)
June 30, March 31, December 31,
2013 2013 2012
------------ ------------ ------------
ASSETS:
Cash and due from banks $ 61,291 $ 141,656 $ 79,076
Investment securities held to
maturity 5,617 5,746 5,927
Investment securities available
for sale 18,309 18,330 32,950
Trading securities 5,127 4,978 4,874
Mortgage-backed securities
available for sale 38,193 43,383 49,021
Real Estate Loans:
One-to-four family and
cooperative apartment 81,110 86,012 91,876
Multifamily and loans underlying
cooperatives (1) 2,780,897 2,706,854 2,670,973
Commercial real estate (1) 737,593 747,035 735,224
Construction and land
acquisition 338 416 476
Unearned discounts and net
deferred loan fees 4,309 4,070 4,836
------------ ------------ ------------
Total real estate loans 3,604,247 3,544,387 3,503,385
------------ ------------ ------------
Other loans 2,517 1,967 2,423
Allowance for loan losses (20,502) (20,530) (20,550)
------------ ------------ ------------
Total loans, net 3,586,262 3,525,824 3,485,258
------------ ------------ ------------
Loans held for sale 232 469 560
Premises and fixed assets, net 29,894 30,065 30,518
Federal Home Loan Bank of New York
capital stock 40,288 40,736 45,011
Goodwill 55,638 55,638 55,638
Other assets 110,392 115,500 116,566
------------ ------------ ------------
TOTAL ASSETS $ 3,951,243 $ 3,982,325 $ 3,905,399
============ ============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Non-interest bearing checking $ 170,432 $ 172,254 $ 159,144
Interest Bearing Checking 90,496 92,981 95,159
Savings 379,367 379,341 371,792
Money Market 1,092,281 1,077,409 961,359
------------ ------------ ------------
Sub-total 1,732,576 1,721,985 1,587,454
------------ ------------ ------------
Certificates of deposit 875,083 879,330 891,975
------------ ------------ ------------
Total Due to Depositors 2,607,659 2,601,315 2,479,429
------------ ------------ ------------
Escrow and other deposits 86,028 119,452 82,753
Federal Home Loan Bank of New York
advances 737,500 747,500 842,500
Trust Preferred Notes Payable 70,680 70,680 70,680
Other liabilities 40,471 42,878 38,463
------------ ------------ ------------
TOTAL LIABILITIES 3,542,338 3,581,825 3,513,825
------------ ------------ ------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par,
125,000,000 shares authorized,
52,198,771 shares, 52,178,819
shares and 52,021,149 shares
issued at June 30, 2013, March
31, 2013 and December 31,
2012,respectively, and 36,054,813
shares, 35,871,939 shares, and
35,714,269 shares outstanding at
June 30, 2013, March 31, 2013 and
December 31, 2012, respectively) 522 522 520
Additional paid-in capital 242,605 241,464 239,041
Retained earnings 391,989 384,855 379,166
Unallocated common stock of
Employee Stock Ownership Plan (2,892) (2,950) (3,007)
Unearned Restricted Stock Award
common stock (4,192) (2,596) (3,122)
Common stock held by the Benefit
Maintenance Plan (9,013) (8,800) (8,800)
Treasury stock (16,143,958 shares,
16,306,880 shares and 16,306,880
shares at June 30, 2013, March
31, 2013 and December 31, 2012,
respectively) (200,550) (202,574) (202,584)
Accumulated other comprehensive
loss, net of deferred taxes (9,564) (9,421) (9,640)
------------ ------------ ------------
TOTAL STOCKHOLDERS' EQUITY 408,905 400,500 391,574
------------ ------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 3,951,243 $ 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
-------------------------------------
June 30, March 31, June 30,
2013 2013 2012
----------- ----------- -----------
Interest income:
Loans secured by real estate $ 44,692 $ 43,148 $ 47,259
Other loans 25 25 28
Mortgage-backed securities 354 459 832
Investment securities 103 129 505
Federal funds sold and other
short-term investments 462 544 639
----------- ----------- -----------
Total interest income 45,636 44,305 49,263
----------- ----------- -----------
Interest expense:
Deposits and escrow 5,132 5,201 5,422
Borrowed funds 6,752 6,790 9,343
----------- ----------- -----------
Total interest expense 11,884 11,991 14,765
----------- ----------- -----------
Net interest income 33,752 32,314 34,498
Provision for loan losses 28 157 2,275
----------- ----------- -----------
Net interest income after provision
for loan losses 33,724 32,157 32,223
----------- ----------- -----------
Non-interest income:
Service charges and other fees 827 712 802
Mortgage banking income, net 112 161 1,095
Other than temporary impairment
("OTTI") charge on securities
(1) - - -
Gain on sale of securities and
other assets - 110 44
Gain (loss) on trading securities (17) 100 (36)
Other 799 815 1,083
----------- ----------- -----------
Total non-interest income 1,721 1,898 2,988
----------- ----------- -----------
Non-interest expense:
Compensation and benefits 9,298 9,951 9,477
Occupancy and equipment 2,506 2,532 2,434
Federal deposit insurance
premiums 445 511 457
Other 3,098 3,315 3,308
----------- ----------- -----------
Total non-interest expense 15,347 16,309 15,676
----------- ----------- -----------
Income before taxes 20,098 17,746 19,535
Income tax expense 8,059 7,176 8,004
----------- ----------- -----------
Net Income $ 12,039 $ 10,570 $ 11,531
=========== =========== ===========
Earnings per Share ("EPS"):
Basic $ 0.34 $ 0.30 $ 0.34
=========== =========== ===========
Diluted $ 0.34 $ 0.30 $ 0.34
=========== =========== ===========
Average common shares outstanding for
Diluted EPS 35,048,063 34,879,239 34,229,202
(1) Total OTTI charges on securities are summarized as follows for the
periods presented:
Credit component (shown above) $ - $ - $ -
Non-credit component not included in
earnings - - -
----------- ----------- -----------
Total OTTI charges $ - $ - $ -
----------- ----------- -----------
For the Six Months
Ended
------------------------
June 30, June 30,
2013 2012
----------- -----------
Interest income:
Loans secured by real estate $ 87,840 $ 97,772
Other loans 50 48
Mortgage-backed securities 813 1,779
Investment securities 232 820
Federal funds sold and other
short-term investments 1,006 1,313
----------- -----------
Total interest income 89,941 101,732
----------- -----------
Interest expense:
Deposits and escrow 10,332 11,148
Borrowed funds 13,542 22,692
----------- -----------
Total interest expense 23,874 33,840
----------- -----------
Net interest income 66,067 67,892
Provision for loan losses 185 3,732
----------- -----------
Net interest income after provision
for loan losses 65,882 64,160
----------- -----------
Non-interest income:
Service charges and other fees 1,539 1,596
Mortgage banking income, net 273 1,216
Other than temporary impairment
("OTTI") charge on securities
(1) - (181)
Gain on sale of securities and
other assets 110 44
Gain (loss) on trading securities 83 70
Other 1,614 2,033
----------- -----------
Total non-interest income 3,619 4,778
----------- -----------
Non-interest expense:
Compensation and benefits 19,249 19,416
Occupancy and equipment 5,038 4,905
Federal deposit insurance
premiums 956 1,055
Other 6,413 6,708
----------- -----------
Total non-interest expense 31,656 32,084
----------- -----------
Income before taxes 37,844 36,854
Income tax expense 15,235 15,076
----------- -----------
Net Income $ 22,609 $ 21,778
=========== ===========
Earnings per Share ("EPS"):
Basic $ 0.65 $ 0.64
=========== ===========
Diluted $ 0.65 $ 0.64
=========== ===========
Average common shares outstanding
for Diluted EPS 34,964,249 34,180,096
(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
----------------------------------
June 30, March 31, June 30,
2013 2013 2012
---------- ---------- ----------
Performance Ratios:
Reported EPS (Diluted) $ 0.34 $ 0.30 $ 0.34
Return on Average Assets 1.20% 1.07% 1.17%
Return on Average Stockholders' Equity 11.93% 10.63% 12.39%
Return on Average Tangible Stockholders'
Equity 13.53% 12.07% 14.17%
Net Interest Spread 3.34% 3.21% 3.37%
Net Interest Margin 3.55% 3.44% 3.63%
Non-interest Expense to Average Assets 1.53% 1.65% 1.59%
Efficiency Ratio 43.24% 47.97% 41.83%
Effective Tax Rate 40.10% 40.44% 40.97%
Book Value and Tangible Book Value Per
Share:
Stated Book Value Per Share $ 11.34 $ 11.16 $ 10.65
Tangible Book Value Per Share 10.06 9.87 9.33
Average Balance Data:
Average Assets $4,009,237 $3,945,321 $3,944,607
Average Interest Earning Assets 3,803,526 3,759,778 3,801,149
Average Stockholders' Equity 403,604 397,594 372,283
Average Tangible Stockholders' Equity 355,823 350,277 325,523
Average Loans 3,602,249 3,507,830 3,394,100
Average Deposits 2,615,213 2,571,771 2,377,079
Asset Quality Summary:
Net charge-offs $ 57 $ 177 $ 1,562
Non-performing Loans (1) 9,507 8,172 13,318
Non-performing Loans/ Total Loans 0.26% 0.23% 0.40%
Nonperforming Assets (2) $ 10,987 $ 9,651 $ 14,233
Nonperforming Assets/Total Assets 0.28% 0.24% 0.37%
Allowance for Loan Loss/Total Loans 0.57% 0.58% 0.60%
Allowance for Loan Loss/Non-performing
Loans 215.65% 251.22% 152.00%
Loans Delinquent 30 to 89 Days at period
end $ 159 $ 1,985 $ 7,536
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period end 9.31% 9.02 % 8.63%
Regulatory Capital Ratios (Bank Only):
Leverage Capital Ratio 10.27% 9.97% 9.93%
Tier One Risk Based Capital Ratio 13.22% 13.02% 13.10%
Total Risk Based Capital Ratio 13.95% 13.76% 13.83%
For the Six Months
Ended
----------------------
June 30, June 30,
2013 2012
---------- ----------
Performance Ratios:
Reported EPS (Diluted) $ 0.65 $ 0.64
Return on Average Assets 1.14% 1.09%
Return on Average Stockholders' Equity 11.29% 11.81%
Return on Average Tangible Stockholders'
Equity 12.81% 13.51%
Net Interest Spread 3.28% 3.29%
Net Interest Margin 3.49% 3.55%
Non-interest Expense to Average Assets 1.59% 1.60%
Efficiency Ratio 45.55% 44.11%
Effective Tax Rate 40.26% 40.91%
Book Value and Tangible Book Value Per
Share:
Stated Book Value Per Share $ 11.34 $ 10.65
Tangible Book Value Per Share 10.06 9.33
Average Balance Data:
Average Assets $3,977,279 $3,998,861
Average Interest Earning Assets 3,781,652 3,822,816
Average Stockholders' Equity 400,599 368,822
Average Tangible Stockholders' Equity 352,888 322,431
Average Loans 3,555,040 3,417,899
Average Deposits 2,593,492 2,367,640
Asset Quality Summary:
Net charge-offs $ 233 $ 3,825
Non-performing Loans (1) 9,507 13,318
Non-performing Loans/ Total Loans 0.26% 0.40%
Nonperforming Assets (2) $ 10,987 $ 14,233
Nonperforming Assets/Total Assets 0.28% 0.37%
Allowance for Loan Loss/Total Loans 0.57% 0.60%
Allowance for Loan Loss/Non-performing
Loans 215.65% 152.00%
Loans Delinquent 30 to 89 Days at period
end $ 159 $ 7,536
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period end 9.31% 8.63%
Regulatory Capital Ratios (Bank Only):
Leverage Capital Ratio 9.93% 9.93%
Tier One Risk Based Capital Ratio 13.22% 13.10%
Total Risk Based Capital Ratio 13.95% 13.83%
(1) Amount excludes $270 of loans held for sale that were on non-accrual
status at March 31, 2013.
(2) Amount comprised of total non-accrual loans and the recorded balance of
pooled bank trust preferred security investments forwhich 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
----------------------------------------
June 30, 2013
----------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ -----------
Assets:
Interest-earning assets:
Real estate loans $ 3,600,154 $ 44,692 4.97%
Other loans 2,095 25 4.77
Mortgage-backed securities 39,669 353 3.56
Investment securities 29,101 104 1.43
Other short-term investments 132,507 462 1.39
------------ ------------ -----------
Total interest earning
assets 3,803,526 $ 45,636 4.80%
------------ ------------
Non-interest earning assets 205,711
------------
Total assets $ 4,009,237
============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking
accounts $ 92,502 $ 70 0.30%
Money Market accounts 1,082,789 1,406 0.52
Savings accounts 381,137 64 0.07
Certificates of deposit 883,881 3,592 1.63
------------ ------------ -----------
Total interest bearing
deposits 2,440,309 5,132 0.84
Borrowed Funds 813,565 6,752 3.33
------------ ------------ -----------
Total interest-bearing
liabilities 3,253,874 $ 11,884 1.46%
------------ ------------
Non-interest bearing checking
accounts 174,904
Other non-interest-bearing
liabilities 176,855
------------
Total liabilities 3,605,633
Stockholders' equity 403,604
------------
Total liabilities and
stockholders' equity $ 4,009,237
============
Net interest income $ 33,752
============
Net interest spread 3.34%
===========
Net interest-earning assets $ 549,652
============
Net interest margin 3.55%
===========
Ratio of interest-earning assets
to interest-bearing liabilities 116.89%
============
Deposits (including non-interest
bearing checking accounts) $ 2,615,213 $ 5,132 0.79%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment
fee income $ 4,692
------------ ------------ -----------
Borrowing prepayment costs -
------------ ------------ -----------
Real estate loans (excluding
prepayment and late payment
fees) 4.44%
------------ ------------ -----------
Interest earning assets
(excluding prepayment and late
payment fees) 4.31%
------------ ------------ -----------
Net Interest income (excluding
loan prepayment and late payment
fees and borrowing prepayment
costs) $ 29,060
------------ ------------ -----------
Net Interest margin (excluding
loan prepayment and late payment
fees and borrowing prepayment
costs) 3.06%
------------ ------------ -----------
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%
------------ ------------ -----------
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
--------------------------------------
June 30, 2012
--------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------ -----------
Assets:
Interest-earning assets:
Real estate loans $ 3,391,986 $ 47,259 5.57%
Other loans 2,114 28 5.30
Mortgage-backed securities 97,719 832 3.41
Investment securities 108,939 505 1.85
Other short-term investments 200,391 639 1.28
------------ ------------ -----------
Total interest earning assets 3,801,149 $ 49,263 5.18%
------------ ------------
Non-interest earning assets 143,458
------------
Total assets $ 3,944,607
============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking
accounts $ 96,453 $ 43 0.18%
Money Market accounts 797,802 1,046 0.53
Savings accounts 363,941 139 0.15
Certificates of deposit 967,503 4,194 1.74
------------ ------------ -----------
Total interest bearing
deposits 2,225,699 5,422 0.98
Borrowed Funds 1,058,271 9,343 3.55
------------ ------------ -----------
Total interest-bearing
liabilities 3,283,970 $ 14,765 1.81%
------------ ------------
Non-interest bearing checking
accounts 151,380
Other non-interest-bearing
liabilities 136,974
------------
Total liabilities 3,572,324
Stockholders' equity 372,283
------------
Total liabilities and stockholders'
equity $ 3,944,607
============
Net interest income $ 34,498
============
Net interest spread 3.37%
===========
Net interest-earning assets $ 517,179
============
Net interest margin 3.63%
===========
Ratio of interest-earning assets to
interest-bearing liabilities 115.75%
Deposits (including non-interest
bearing checking accounts) $ 2,377,079 $ 5,422 0.92%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment fee
income $ 3,488
------------ ------------ -----------
Borrowing prepayment costs -
------------ ------------ -----------
Real estate loans (excluding
prepayment and late payment fees) 5.16%
------------ ------------ -----------
Interest earning assets (excluding
prepayment and late payment fees) 4.82%
------------ ------------ -----------
Net Interest income (excluding loan
prepayment and late payment fees
and borrowing prepayment costs) $ 31,010
------------ ------------ -----------
Net Interest margin (excluding loan
prepayment and late payment fees
and borrowing prepayment costs) 3.26%
------------ ------------ -----------
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS
(Dollars In thousands)
At June 30, At March 31, At June 30,
Non-Performing Loans 2013 2013 2012
------------ ------------ ------------
One- to four-family and
cooperative apartment $ 1,164 $ 697 $ 1,161
Multifamily residential and
mixed use residential real
estate (1) 1,688 809 3,622
Mixed use commercial real estate
(1) 1,150 1,159 720
Commercial real estate 5,500 5,500 7,813
Construction - - -
Other 5 7 2
------------ ------------ ------------
Total Non-Performing Loans (2) $ 9,507 $ 8,172 $ 13,318
------------ ------------ ------------
Other Non-Performing Assets (3)
Other real estate owned 585 585 -
Pooled bank trust preferred
securities 895 894 915
Non-performing loans held for
sale:
Mixed use commercial real
estate - 270 -
Multifamily residential and
mixed use residential real
estate - - -
------------ ------------ ------------
Total Non-Performing Assets $ 10,987 $ 9,921 $ 14,233
------------ ------------ ------------
Troubled Debt Restructurings ("TDRs") not
included in non-performing loans (2)
One- to four-family and
cooperative apartment 941 944 623
Multifamily residential and
mixed use residential real
estate (1) 1,524 1,538 2,434
Mixed use commercial real estate
(1) 718 724 741
Commercial real estate 35,516 38,238 39,924
------------ ------------ ------------
Total Performing TDRs $ 38,699 $ 41,444 $ 43,722
------------ ------------ ------------
(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 $5,893 at June 30, 2013, $5,895 at March 31, 2013 and $7,813 at
June 30, 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 June 30, At March 31, At June 30,
2013 2013 2012
------------ ------------ ------------
Total Non-Performing Assets $ 10,987 $ 9,921 $ 14,233
Loans 90 days or more past due
on accrual status (4) 974 186 2,634
------------ ------------ ------------
TOTAL PROBLEM ASSETS $ 11,961 $ 10,107 $ 16,867
------------ ------------ ------------
Tier One Capital - The Dime
Savings Bank of Williamsburgh $ 398,710 $ 390,129 $ 378,191
Allowance for loan losses 20,502 20,530 20,243
------------ ------------ ------------
TANGIBLE CAPITAL PLUS
RESERVES $ 419,212 $ 410,659 $ 398,434
------------ ------------ ------------
PROBLEM ASSETS AS A PERCENTAGE
OF TANGIBLE CAPITAL AND
RESERVES 2.9% 2.5% 4.2%
(4) These loans were, as of the respective dates indicated, expected to be
either satisfied, made current or re-financed within the following
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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