SOURCE: Dime Community Bancshares, Inc.

Dime Community Bancshares, Inc.

October 23, 2014 16:10 ET

Dime Community Bancshares, Inc. Posts Higher Quarterly EPS

Third Quarter EPS of $0.33 Surpasses June 2014 Quarter on Higher Prepayment Fees; Real Estate Loan Originations Also up 50% Over Prior Quarter

BROOKLYN, NY--(Marketwired - Oct 23, 2014) -  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 September 30, 2014. Consolidated net income for the quarter ended September 30, 2014 was $11.8 million, or $0.33 per diluted share, compared to $10.5 million, or $0.29 per diluted share, for the quarter ended June 30, 2014, and $10.6 million, or $0.30 per diluted share, for the quarter ended September 30, 2013. 

Vincent F. Palagiano, Chairman and Chief Executive Officer of Dime, commented, "We were pleased to report earnings of $0.33 during the most recent quarter, which were elevated above both the previous quarter and quarterly consensus estimate by a combination of higher prepayment fee income, a reserve recapture of $501,000, and lower operating expenses."

Mr. Palagiano concluded, "During the most recent quarter, approximately $275 million of real estate loans were originated, a 50% increase from the June 2014 quarter, and were mainly comprised of our core 5-year repricing term loans. As we move closer to year-end, the Bank remains on pace to achieve our annual loan growth target of 12%."

Management's Discussion of Quarterly Operating Results

  • Net Interest Margin

Reported net interest margin ("NIM") was 3.09% during the quarter ended September 30, 2014 compared to 2.96% during the June 2014 quarter, and 3.35% during the September 2013 quarter. Net interest income recognized from loan prepayment activity, which varies from quarter to quarter, positively impacted the Company's NIM during each of the reporting periods presented. For the third quarter 2014, income from prepayment activity was $3.9 million, or 38 basis points of impact upon NIM, compared to $2.2 million, or 21 basis points of impact upon NIM, during the quarter ended June 30, 2014. The "core" NIM, which excludes the impact of these items, decreased from 2.75% during the June 2014 quarter to 2.71% during the September 2014 quarter, caused primarily by a reduction of 5 basis points in the average yield on interest earning assets. Core NIM for the September 2013 quarter was 2.98%.

Commenting on the margin, Kenneth J. Mahon, Chief Operating Officer, said, "As long as rates stay unchanged, we expect only basis point movements in the margin over the next two quarters, leading to a range-bound NIM."

Loan amortization and prepayments, which had moderated during the first six months of 2014 compared to their historically high levels during 2013, increased in the September 2014 quarter primarily as a result of the refinancing of loans by the Bank's largest borrower relationship, which contributed an additional $2.2 million in prepayment fee income from the level experienced in the June 2014 quarter.

The average cost of funds declined by 2 basis points from the June 2014 to the September 2014 quarter, reflecting reductions of 5 basis points in the average cost of borrowings and 1 basis point in the average cost of deposits, as funding costs continued to remain at historically low levels. 

  • Net Interest Income

Net interest income ("NII") was $32.0 million in the quarter ended September 30, 2014, up $1.4 million from $30.6 million reported in the June 2014 quarter, and $305,000 higher than the $31.7 million reported in the September 2013 quarter. The increase from the June 2014 quarter reflected a 13 basis point increase in the average yield on interest earning assets, which benefitted from both the addition of $1.8 million in prepayment fee income, as well as a reduction of $60.4 million in the average balance of cash reservesthat were yielding less than 25 basis points. The increase in NII from the September 2013 quarter resulted from $476,000 of higher prepayment fee income coupled with the growth of $356.8 million in average interest earnings assets. 

  • Provision/Allowance For Loan Losses

A recapture of a portion of the allowance for loan loss reserve resulted in a credit, rather than a charge, to earnings in the third quarter of $501,000, due primarily to a lower loss experience applied to pass graded loans.

  • Non-Interest Income

Non-interest income was $1.8 million for the quarter ended September 30, 2014, an increase of $252,000 from the June 2014 quarter, and resulted primarily from higher seasonal administrative fees collected on portfolio loans. 

  • Non-Interest Expense

Non-interest expense was $14.7 million in the quarter ended September 30, 2014, approximately $574,000 below the $15.3 million level experienced in the June 2014 quarter, due primarily to reductions of $355,000 in compensation and benefits, and approximately $100,000 in both marketing and legal costs, respectively. These items also accounted for the great majority of the reduction from the $15.5 million of non-interest expense forecasted for the September 2014 quarter. 

Non-interest expense was 1.36% of average assets during the most recent quarter, compared to 1.42% during the June 2014 quarter. The efficiency ratio approximated 43.54% during the September 2014 quarter. 

  • Income Tax Expense

The effective tax rate approximated 39.8% during the most recent quarter, lower than the forecasted 41.0% level, due to a favorable adjustment related to a prior year tax return. The lower effective tax rate contributed approximately $0.01 to diluted earnings per share during the September 2014 quarter.

Management's Discussion of the September 30, 2014 Balance Sheet

Total assets were $4.38 billion at September 30, 2014, up $82.7 million, or 1.9%, from June 30, 2014. 

  • Real Estate Loans

Real estate loan net portfolio growth was $78.7 million for the quarter. Real estate loan originations were $274.5 million, at a weighted average interest rate of 3.32%. Of this amount, $88.1 million represented loan refinances from the existing portfolio. Approximately 80% of the loans originated during the quarter contained repricing terms of 5-years or less. Loan amortization and satisfactions totaled $194.1 million, or 19.4% (annualized) of the quarterly average portfolio balance, at an average rate of 4.72%. The average yield on the loan portfolio (excluding income recognized from prepayment activity) during the quarter ended September 30, 2014 was 3.90%, compared to 4.01% during the June 2014 quarter and 4.28% during the September 2013 quarter.

  • Credit Summary

Non-performing loans were $11.5 million, or 0.28% of total loans, at September 30, 2014, compared to $12.3 million, or 0.31% of total loans, at June 30, 2014. The decline in dollar amount resulted primarily from both a non-performing loan returning to accrual status and a significant reduction in the principal balance of another non-performing loan during the period. Accruing loans delinquent between 30 and 89 days were $1.1 million, or approximately 0.03% of total loans, at September 30, 2014, compared to $2.3 million or 0.06% of total loans, at June 30, 2014. 

At September 30, 2014, the Bank also had $10.7 million of troubled debt restructured loans that remained on accrual status and were deemed performing loans. 

As a result of both the net reduction in the allowance balance and the growth in the loan portfolio, the allowance for loan losses as a percentage of total loans declined from 0.49% at June 30, 2014 to 0.47% at September 30, 2014. 

At September 30, 2014, non-performing assets represented 3.9% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table on page 10). This number compares very favorably to both national and regional industry averages.

  • Deposits and Borrowed Funds

Deposits declined by $30.5 million during the most recent quarter, reflecting net reductions of $11.2 million in money market deposits and $19.9 million in certificates of deposit ("CDs"). The Bank did not compete aggressively for deposit funding in the September 2014 quarter, but expects to ramp up a deposit campaign in the fourth quarter. A recently implemented promotional program targeting money market and checking accounts is expected to raise deposit funding in the December 2014 quarter. Mortgagor escrow deposits experienced a seasonal increase of $18.9 million during the September 2014 quarter. 

The Bank's Federal Home Loan Bank of New York ("FHLBNY") advances grew by $85.1 million during the September 2014 quarter. Approximately $45.1 million of this growth consisted of a combination of 3-year, 4-year and 5-year fixed rate advances at a weighted average cost approximating 1.50% that were structured to mitigate interest rate risk. The remaining $40.0 million borrowing growth during the period was short-term in nature.

  • Capital

The Company's consolidated tangible capital increased $7.6 million during the most recent quarter, and the consolidated Tier 1 core leverage ratio (tangible common equity to tangible assets) was 9.35% at September 30, 2014, relatively unchanged from June 30, 2014.

The Bank's tangible (leverage) capital ratio was 9.25% at September 30, 2014, up from 9.20% at June 30, 2014, due to retained earnings during the most recent quarter. The Bank's Total Risk-Based Capital Ratio was 12.84% at September 30, 2014, compared to 12.85% at June 30, 2014.

Reported diluted EPS exceeded the quarterly cash dividend rate per share by 136% during the quarter ended September 30, 2014, equating to a 42% payout ratio. Additions to capital from earnings during the most recent quarterly period enabled tangible book value per share to increase $0.20 sequentially during the most recent quarter, to $10.98 at September 30, 2014.

Outlook for the Quarter Ending December 31, 2014

At September 30, 2014, Dime had outstanding loan commitments totaling $170.9 million, all of which are likely to close during the quarter ending December 31, 2014, at an average interest rate approximating 3.25%. 

It now appears that the Company will achieve its balance sheet growth objective for the year ending December 31, 2014, of about 10%. Loan prepayments and amortization are currently projected to run in the 15% - 20% range through the remainder of the year.

On the funding side of the balance sheet, deposit funding costs are expected to remain near current historically low levels through the remainder of 2014. The Bank has $113.9 million of CDs maturing at an average cost of 1.07% during the quarter ending December 31, 2014. Offering rates on 12-month term CDs currently approximate 40 basis points. During the quarter ending December 31, 2014, the Bank has $214.5 million in borrowings due to mature at an average cost of 2.39%. In the upcoming quarter, management expects to utilize a combination of FHLBNY advances and retail deposits to fund growth. 

As previously mentioned, the Bank recently implemented a promotional campaign related to money market and checking accounts, the success of which will determine the direction and degree of funding from both deposits and borrowings, as well as the overall cost of funds for the December 2014 quarter.

Loan loss reserve provisions or credits will likely depend upon annualized loan portfolio growth, incurred and anticipated losses, and the overall performance of the loan portfolio.

Absent any unforeseen items, non-interest expense is expected to approximate $15.3 million during the December 2014 quarter. The Company projects that the consolidated effective tax rate will approximate 41.0% in the December 2014 quarter.

ABOUT DIME COMMUNITY BANCSHARES, INC.

The Company (NASDAQ: DCOM) had $4.38 billion in consolidated assets as of September 30, 2014, and is the parent company of the Bank. The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-five branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and Dime can be found on the Dime's Internet website at www.dime.com.

This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of Dime; changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company's business; technological changes may be more difficult or expensive than the Company anticipates; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates.

   
   
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION  
(In thousands except share amounts)  
   
                   
    September 30,     June 30,     December 31,  
    2014     2014     2013  
ASSETS:                        
Cash and due from banks   $ 58,977     $ 57,213     $ 45,777  
Investment securities held to maturity     5,352       5,330       5,341  
Investment securities available for sale     3,708       3,766       18,649  
Trading securities     7,056       7,058       6,822  
Mortgage-backed securities available for sale     27,721       29,015       31,543  
Federal funds sold and other short-term investments     250       250       -  
Real Estate Loans:                        
  One-to-four family and cooperative/condomnium apartment     75,576       74,442       73,956  
  Multifamily and loans underlying cooperatives (1)     3,214,225       3,156,599       2,917,380  
  Commercial real estate     755,979       736,129       700,606  
  Construction and land acquisition     -       -       268  
  Unearned discounts and net deferred loan fees     5,482       5,381       5,170  
  Total real estate loans     4,051,262       3,972,551       3,697,380  
  Other loans     1,913       2,440       2,139  
  Allowance for loan losses     (19,098 )     (19,633 )     (20,153 )
Total loans, net     4,034,077       3,955,358       3,679,366  
Loans held for sale     1,481       -       -  
Premises and fixed assets, net     25,607       25,875       29,701  
Federal Home Loan Bank of New York capital stock     55,235       53,269       48,051  
Other Real Estate Owned     18       18       18  
Goodwill     55,638       55,638       55,638  
Other assets     109,285       108,904       107,284  
TOTAL ASSETS   $ 4,384,405     $ 4,301,694     $ 4,028,190  
LIABILITIES AND STOCKHOLDERS' EQUITY:                        
Deposits:                        
Non-interest bearing checking   $ 176,328     $ 172,876     $ 174,457  
Interest Bearing Checking     75,375       79,076       87,301  
Savings     378,500       377,618       376,900  
Money Market     1,145,248       1,156,494       1,040,079  
  Sub-total     1,775,451       1,786,064       1,678,737  
Certificates of deposit     847,162       867,016       828,409  
Total Due to Depositors     2,622,613       2,653,080       2,507,146  
Escrow and other deposits     95,830       76,930       69,404  
Federal Home Loan Bank of New York advances     1,103,225       1,018,150       910,000  
Trust Preferred Notes Payable     70,680       70,680       70,680  
Other liabilities     35,854       34,330       35,454  
TOTAL LIABILITIES     3,928,202       3,853,170       3,592,684  
STOCKHOLDERS' EQUITY:                        
Common stock ($0.01 par, 125,000,000 shares authorized, 52,871,443 shares, 52,871,443 shares and 52,854,483 shares issued at September 30, 2014, June 30, 2014 and December 31, 2013, respectively, and 36,858,556 shares, 36,858,556 shares and 35,712,951 shares outstanding at September 30, 2014, June 30, 2014 and December 31, 2013, respectively)     529       529       528  
Additional paid-in capital     254,103       253,840       252,253  
Retained earnings     420,170       413,437       402,986  
Accumulated other comprehensive loss, net of deferred taxes     (4,284 )     (4,408 )     (4,759 )
Unallocated common stock of Employee Stock Ownership Plan     (2,603 )     (2,660 )     (2,776 )
Unearned Restricted Stock Award common stock     (3,626 )     (4,128 )     (3,193 )
Common stock held by the Benefit Maintenance Plan     (9,164 )     (9,164 )     (9,013 )
Treasury stock (16,012,887 shares, 16,012,887 shares and 16,141,532 shares at September 30, 2014, June 30, 2014 and December 31, 2013, respectively)     (198,922 )     (198,922 )     (200,520 )
TOTAL STOCKHOLDERS' EQUITY     456,203       448,524       435,506  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 4,384,405     $ 4,301,694     $ 4,028,190  
                         
(1) While the loans within this category 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 this 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  
    September 30,     June 30,     September 30,  
    2014     2014     2013  
Interest income:                        
  Loans secured by real estate   $ 43,477     $ 41,973     $ 42,451  
  Other loans     26       29       25  
  Mortgage-backed securities     223       236       310  
  Investment securities     68       136       84  
  Federal funds sold and other short-term investments     551       536       416  
    Total interest income     44,345       42,910       43,286  
Interest expense:                        
  Deposits and escrow     4,976       4,992       4,908  
  Borrowed funds     7,410       7,324       6,725  
    Total interest expense     12,386       12,316       11,633  
      Net interest income     31,959       30,594       31,653  
Provision for (recapture of) loan losses     (501 )     (1,130 )     240  
Net interest income after provision for (recapture of) loan losses     32,460       31,724       31,413  
                         
Non-interest income:                        
  Service charges and other fees     1,084       769       1,015  
  Mortgage banking income, net     71       82       76  
  Gain (loss) on sale of securities and other assets     -       -       (21 )
  Gain (loss) on trading securities     (43 )     63       104  
  Other     705       651       834  
    Total non-interest income     1,817       1,565       2,008  
Non-interest expense:                        
  Compensation and benefits     8,760       9,115       9,466  
  Occupancy and equipment     2,513       2,392       2,697  
  Federal deposit insurance premiums     547       524       515  
  Other     2,904       3,267       2,897  
    Total non-interest expense     14,724       15,298       15,575  
                         
    Income before taxes     19,553       17,991       17,846  
Income tax expense     7,788       7,531       7,215  
                         
Net Income   $ 11,765     $ 10,460     $ 10,631  
                         
Earnings per Share ("EPS"):                        
  Basic   $ 0.33     $ 0.29     $ 0.30  
  Diluted   $ 0.33     $ 0.29     $ 0.30  
                         
Average common shares outstanding for Diluted EPS     35,974,339       35,957,291       35,527,503  
                         
                   
    For the Nine Months Ended        
    September 30,     September 30,        
    2014     2013        
Interest income:                        
  Loans secured by real estate   $ 126,311     $ 130,291          
  Other loans     80       74          
  Mortgage-backed securities     707       1,123          
  Investment securities     274       316          
  Federal funds sold and other short-term investments     1,609       1,423          
    Total interest income     128,981       133,227          
Interest expense:                        
  Deposits and escrow     14,590       15,240          
  Borrowed funds     21,583       20,267          
    Total interest expense     36,173       35,507          
      Net interest income     92,808       97,720          
Provision for (recapture of) loan losses     (1,350 )     425          
Net interest income after provision for (recapture of) loan losses     94,158       97,295          
                         
Non-interest income:                        
  Service charges and other fees     2,507       2,554          
  Mortgage banking income, net     1,153       350          
  Gain (loss) on sale of securities and other assets     -       89          
  Gain (loss) on trading securities     684       187          
  Other     2,098       2,446          
    Total non-interest income     6,442       5,626          
Non-interest expense:                        
  Compensation and benefits     27,384       28,715          
  Occupancy and equipment     7,656       7,735          
  Federal deposit insurance premiums     1,576       1,470          
  Other     9,229       9,311          
    Total non-interest expense     45,845       47,231          
                           
    Income before taxes     54,755       55,690          
Income tax expense     22,496       22,450          
                         
Net Income   $ 32,259     $ 33,240          
                         
Earnings per Share ("EPS"):                        
  Basic   $ 0.90     $ 0.95          
  Diluted   $ 0.90     $ 0.95          
                         
Average common shares outstanding for Diluted EPS     35,940,745       35,157,647          
                         
                         
                         
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS  
(Dollars In thousands except per share amounts)  
                   
    For the Three Months Ended  
    September 30,     June 30,     September 30,  
    2014     2014     2013  
                         
Performance Ratios (Based upon Reported Earnings):                        
Reported EPS (Diluted)   $ 0.33     $ 0.29     $ 0.30  
Return on Average Assets     1.09 %     0.97 %     1.07 %
Return on Average Stockholders' Equity     10.37 %     9.36 %     10.19 %
Return on Average Tangible Stockholders' Equity     11.74 %     10.62 %     11.49 %
Net Interest Spread     2.92 %     2.77 %     3.17 %
Net Interest Margin     3.09 %     2.96 %     3.35 %
Non-interest Expense to Average Assets     1.36 %     1.42 %     1.56 %
Efficiency Ratio     43.54 %     47.66 %     46.38 %
Effective Tax Rate     39.83 %     41.86 %     40.43 %
                         
Book Value and Tangible Book Value Per Share:                        
Stated Book Value Per Share   $ 12.38     $ 12.17     $ 11.57  
Tangible Book Value Per Share     10.98       10.78       10.30  
                         
Average Balance Data:                        
Average Assets   $ 4,321,228     $ 4,311,701     $ 3,980,840  
Average Interest Earning Assets     4,138,802       4,127,883       3,782,043  
Average Stockholders' Equity     453,813       446,785       417,459  
Average Tangible Stockholders' Equity     400,822       393,820       369,982  
Average Loans     4,017,867       3,945,287       3,646,845  
Average Deposits     2,636,593       2,623,386       2,623,840  
                         
Asset Quality Summary:                        
Net (recoveries) charge-offs   $ 34     $ (335 )   $ 202  
Non-performing Loans (excluding loans held for sale)     11,527       12,305       8,838  
Non-performing Loans/ Total Loans     0.28 %     0.31 %     0.24 %
Nonperforming Assets (1)   $ 13,929     $ 13,224     $ 9,735  
Nonperforming Assets/Total Assets     0.32 %     0.31 %     0.24 %
Allowance for Loan Loss/Total Loans     0.47 %     0.49 %     0.56 %
Allowance for Loan Loss/Non-performing Loans     165.69 %     159.55 %     232.41 %
Loans Delinquent 30 to 89 Days at period end   $ 1,113     $ 2,274     $ 3,763  
                         
Consolidated Tangible Stockholders' Equity to Tangible Assets at period end     9.35 %     9.36 %     9.51 %
                         
Regulatory Capital Ratios (Bank Only):                        
Tier One Core Leverage Ratio (Tangible Common Equity)     9.25 %     9.20 %     10.24 %
Tier One Risk Based Capital Ratio     12.25 %     12.23 %     13.35 %
Total Risk Based Capital Ratio     12.84 %     12.85 %     14.07 %
                         
(1) Amount comprised of total non-accrual loans (including loans held for sale) 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.  
   
                   
    For the Nine Months Ended        
    September 30,     September 30,        
    2014     2013        
                         
Performance Ratios (Based upon Reported Earnings):                        
Reported EPS (Diluted)   $ 0.90     $ 0.95          
Return on Average Assets     1.01 %     1.11 %        
Return on Average Stockholders' Equity     9.62 %     10.91 %        
Return on Average Tangible Stockholders' Equity     10.95 %     12.35 %        
Net Interest Spread     2.84 %     3.24 %        
Net Interest Margin     3.04 %     3.45 %        
Non-interest Expense to Average Assets     1.44 %     1.58 %        
Efficiency Ratio     46.51 %     45.82 %        
Effective Tax Rate     41.08 %     40.31 %        
                         
Book Value and Tangible Book Value Per Share:                        
Stated Book Value Per Share   $ 12.38     $ 11.57          
Tangible Book Value Per Share     10.98       10.30          
                         
Average Balance Data:                        
Average Assets   $ 4,258,512     $ 3,978,466          
Average Interest Earning Assets     4,071,994       3,781,782          
Average Stockholders' Equity     446,962       406,219          
Average Tangible Stockholders' Equity     392,921       358,740          
Average Loans     3,928,115       3,585,641          
Average Deposits     2,596,830       2,603,607          
                         
Asset Quality Summary:                        
Net (recoveries) charge-offs   $ (295 )   $ 435          
Non-performing Loans (excluding loans held for sale)     11,527       8,838          
Non-performing Loans/ Total Loans     0.28 %     0.24 %        
Nonperforming Assets (1)   $ 12,448     $ 9,735          
Nonperforming Assets/Total Assets     0.32 %     0.24 %        
Allowance for Loan Loss/Total Loans     0.47 %     0.56 %        
Allowance for Loan Loss/Non-performing Loans     165.69 %     232.41 %        
Loans Delinquent 30 to 89 Days at period end   $ 1,113     $ 3,763          
                         
Consolidated Tangible Stockholders' Equity to Tangible Assets at period end     9.35 %     9.51 %        
                         
Regulatory Capital Ratios (Bank Only):                        
Tier One Core Leverage Ratio (Tangible Common Equity)     9.25 %     10.24 %        
Tier One Risk Based Capital Ratio     12.25 %     13.35 %        
Total Risk Based Capital Ratio     12.84 %     14.07 %        
   
(1) Amount comprised of total non-accrual loans (including loans held for sale) 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  
    September 30, 2014  
              Average  
    Average         Yield/  
    Balance   Interest     Cost  
Assets:                    
  Interest-earning assets:                    
    Real estate loans   $ 4,015,816   $ 43,477     4.33 %
    Other loans     2,051     26     5.07  
    Mortgage-backed securities     27,011     223     3.30  
    Investment securities     15,827     68     1.72  
    Other short-term investments     78,097     551     2.82  
      Total interest earning assets     4,138,802   $ 44,345     4.29 %
  Non-interest earning assets     182,426              
Total assets   $ 4,321,228              
                     
Liabilities and Stockholders' Equity:                    
  Interest-bearing liabilities:                    
    Interest Bearing Checking accounts   $ 76,623   $ 51     0.26 %
    Money Market accounts     1,153,517     1,692     0.58  
    Savings accounts     378,527     47     0.05  
    Certificates of deposit     852,188     3,186     1.48  
      Total interest bearing deposits     2,460,855     4,976     0.80  
  Borrowed Funds     1,119,859     7,410     2.63  
    Total interest-bearing liabilities     3,580,714   $ 12,386     1.37 %
  Non-interest bearing checking accounts     175,738              
  Other non-interest-bearing liabilities     110,962              
    Total liabilities     3,867,414              
  Stockholders' equity     453,814              
Total liabilities and stockholders' equity   $ 4,321,228              
Net interest income         $ 31,959        
Net interest spread                 2.92 %
Net interest-earning assets   $ 558,088              
Net interest margin                 3.09 %
                     
Ratio of interest-earning assets to interest-bearing liabilities           115.59 %      
                     
Deposits (including non-interest bearing checking accounts)   $ 2,636,593   $ 4,976     0.75 %
                     
SUPPLEMENTAL INFORMATION                    
Loan prepayment and late payment fee income, net of accelerated premium amortization         $ 3,943        
Real estate loans (excluding net prepayment and late payment fee income)                 3.94 %
Interest earning assets (excluding net prepayment and late payment fee income)                 3.90 %
Net Interest income (excluding net prepayment and late payment fee income)         $ 28,016        
Net Interest margin (excluding net prepayment and late payment fee income)                 2.71 %
                     
                     
    For the Three Months Ended  
    June 30, 2014  
              Average  
    Average         Yield/  
    Balance   Interest     Cost  
Assets:                    
  Interest-earning assets:                    
    Real estate loans   $ 3,943,414   $ 41,973     4.26 %
    Other loans     1,873     29     6.19  
    Mortgage-backed securities     28,487     236     3.31  
    Investment securities     15,585     136     3.49  
    Other short-term investments     138,524     536     1.55  
      Total interest earning assets     4,127,883   $ 42,910     4.16 %
  Non-interest earning assets     183,818              
Total assets   $ 4,311,701              
                     
Liabilities and Stockholders' Equity:                    
  Interest-bearing liabilities:                    
    Interest Bearing Checking accounts   $ 79,490   $ 60     0.30 %
    Money Market accounts     1,114,169     1,548     0.56  
    Savings accounts     379,819     47     0.05  
    Certificates of deposit     873,733     3,337     1.53  
      Total interest bearing deposits     2,447,211     4,992     0.83  
  Borrowed Funds     1,096,742     7,324     2.68  
    Total interest-bearing liabilities     3,543,953   $ 12,316     1.39 %
  Non-interest bearing checking accounts     176,175              
  Other non-interest-bearing liabilities     144,788              
    Total liabilities     3,864,916              
  Stockholders' equity     446,785              
Total liabilities and stockholders' equity   $ 4,311,701              
Net interest income         $ 30,594        
Net interest spread                 2.77 %
Net interest-earning assets   $ 583,930              
Net interest margin                 2.96 %
                     
Ratio of interest-earning assets to interest-bearing liabilities           116.48 %      
                     
Deposits (including non-interest bearing checking accounts)   $ 2,623,386   $ 4,992     0.76 %
                     
SUPPLEMENTAL INFORMATION                    
Loan prepayment and late payment fee income, net of accelerated premium amortization         $ 2,175        
Real estate loans (excluding net prepayment and late payment fee income)                 4.04 %
Interest earning assets (excluding net prepayment and late payment fee income)                 3.95 %
Net Interest income (excluding net prepayment and late payment fee income)         $ 28,419        
Net Interest margin (excluding net prepayment and late payment fee income)                 2.75 %
                     
                     
    For the Three Months Ended  
    September 30, 2013  
              Average  
    Average         Yield/  
    Balance   Interest     Cost  
Assets:                    
  Interest-earning assets:                    
    Real estate loans   $ 3,644,557   $ 42,451     4.66 %
    Other loans     2,288     25     4.37  
    Mortgage-backed securities     35,219     310     3.52  
    Investment securities     29,122     84     1.15  
    Other short-term investments     70,857     416     2.35  
      Total interest earning assets     3,782,043   $ 43,286     4.58 %
  Non-interest earning assets     198,797              
Total assets   $ 3,980,840              
                     
Liabilities and Stockholders' Equity:                    
  Interest-bearing liabilities:                    
    Interest Bearing Checking accounts   $ 88,471   $ 49     0.22 %
    Money Market accounts     1,122,644     1,413     0.50  
    Savings accounts     380,088     48     0.05  
    Certificates of deposit     862,792     3,398     1.56  
      Total interest bearing deposits     2,453,995     4,908     0.79  
  Borrowed Funds     810,191     6,725     3.29  
    Total interest-bearing liabilities     3,264,186   $ 11,633     1.41 %
  Non-interest bearing checking accounts     169,845              
  Other non-interest-bearing liabilities     129,350              
    Total liabilities     3,563,381              
  Stockholders' equity     417,459              
Total liabilities and stockholders' equity   $ 3,980,840              
Net interest income         $ 31,653        
Net interest spread                 3.17 %
Net interest-earning assets   $ 517,857              
Net interest margin                 3.35 %
                     
Ratio of interest-earning assets to interest-bearing liabilities           115.86 %      
                     
Deposits (including non-interest bearing checking accounts)   $ 2,623,840   $ 4,908     0.74 %
                     
                     
Loan prepayment and late payment fee income, net of accelerated premium amortization         $ 3,467        
Real estate loans (excluding net prepayment and late payment fee income)                 4.28 %
Interest earning assets (excluding net prepayment and late payment fee income)                 4.21 %
Net Interest income (excluding net prepayment and late payment fee income)         $ 28,186        
Net Interest margin (excluding net prepayment and late payment fee income)                 2.98 %
                     
                     
                     
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")
(Dollars In thousands)
     
     
    At September 30,   At June 30,   At September 30,
Non-Performing Loans   2014   2014   2013
  One- to four-family and cooperative/condominium apartment   $ 1,363   $ 1,422   $ 1,136
  Multifamily residential and mixed use residential real estate (1)(2)     1,039     1,431     1,993
  Mixed use commercial real estate (2)     4,400     4,400     -
  Commercial real estate     4,717     5,047     5,707
  Other     8     5     2
Total Non-Performing Loans (3)   $ 11,527   $ 12,305   $ 8,838
Other Non-Performing Assets                  
  Non-performing loans held for sale     1,481     -     -
  Other real estate owned     18     18     -
  Pooled bank trust preferred securities (4)     903     901     897
Total Non-Performing Assets   $ 13,929   $ 13,224   $ 9,735
                   
TDRs not included in non-performing loans (3)                  
  One- to four-family and cooperative/condominium apartment     607     609     938
  Multifamily residential and mixed use residential real estate (1)(2)     1,115     1,126     1,899
  Mixed use commercial real estate (2)     -     -     711
  Commercial real estate     9,025     7,033     29,570
Total Performing TDRs   $ 10,747   $ 8,768   $ 33,118
                   
(1) Includes loans underlying cooperatives.
   
(2) While the loans within these categories are often considered "commercial real estate" in nature, they are classified separately in the table above to provide further emphasis of the discrete composition of their underlying real estate collateral.
   
(3) 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 $9,117 at September 30, 2014, $9,447 at June 30, 2014 and $5,707 at September 30, 2013, are included in the non-performing loan table, but excluded from the TDR amount shown above.
   
(4) 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 September 30,     At June 30,     At September 30,  
    2014     2014     2013  
Total Non-Performing Assets   $ 13,929     $ 13,224     $ 9,735  
Loans 90 days or more past due on accrual status (5)     2,400       2,604       1,398  
  TOTAL PROBLEM ASSETS   $ 16,329     $ 15,828     $ 11,133  
                         
Tier One Capital - The Dime Savings Bank of Williamsburgh   $ 399,062     $ 389,369     $ 404,022  
Allowance for loan losses     19,098       19,633       20,540  
  TANGIBLE CAPITAL PLUS RESERVES   $ 418,160     $ 409,002     $ 424,562  
                         
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES     3.9 %     3.9 %     2.6 %
                         
(5) 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 Information

  • Contact:
    Kenneth Ceonzo
    Director of Investor Relations
    718-782-6200 extension 8279