SOURCE: Dime Community Bancshares

Dime Community Bancshares

January 27, 2015 16:15 ET

Dime Community Bancshares, Inc. Posts Higher Quarterly Net Income

Annual EPS of $1.23; 2014 Growth Target Achieved

BROOKLYN, NY--(Marketwired - January 27, 2015) - 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 and fiscal year ended December 31, 2014. Consolidated net income was $44.2 million, or $1.23 per diluted share, for the year ended December 31, 2014, compared to $43.5 million, or $1.23 per diluted share, for the year ended December 31, 2013. Consolidated net income for the quarter ended December 31, 2014 was $12.0 million, or $0.33 per diluted share, compared to $11.8 million, or $0.33 per diluted share, for the quarter ended September 30, 2014, and $10.3 million, or $0.29 per diluted share, for the quarter ended December 31, 2013. 

Vincent F. Palagiano, Chairman and Chief Executive Officer of Dime, commented, "We closed 2014 on a high note by posting our highest level of quarterly net income, due primarily to elevated loan prepayment income, a recapture of $522,000 to the allowance for loan losses, and a pre-tax gain of approximately $1.0 million on the sale of securities."

Mr. Palagiano continued, "The Company achieved its annual loan growth target of 12%, originating approximately $950.0 million of loans during the year, excluding the repurchase of $200 million of loans previously sold to an investor. By meeting our growth objectives, recognizing the benefits of lower credit costs from improved credit conditions, and maintaining our highly profitable operating cost structure, we were able to effectively fight through the combined headwinds of net interest margin compression and increased marketplace lending competition."

Management's Discussion of 2014 versus 2013 Results

Net interest income was down $4.0 million, or 3.1% for the year ended December 31, 2014 compared to the year ended December 31, 2013, reflecting both a $2.5 million decline in interest income and an increase of $1.5 million in interest expense. The reduction in interest income was attributable to interest rates, as the yield on interest earning assets declined 42 basis points year over year. The increase in interest expense was conversely attributable to increased volume, as the average balance of interest bearing liabilities increased $287.4 million year-over-year. The average cost of funds actually declined by 7 basis points during the year ended December 31, 2014. 

Reported Net Interest Margin ("NIM") fell to 3.03% for 2014, from 3.39% for 2013. Loan prepayment fee income, net of accelerated premium amortization on purchased loans, added $12.5 million to net interest income in 2014 and $13.4 million in 2013. After adjusting for the net impact of prepayment income, the "core" NIM declined year-over-year, from 3.03% for 2013 to 2.73% for 2014. 

Further comparing 2014 to 2013, credit loss provisions declined by $2.2 million as credit conditions continued to improve, and operating expenses declined by $1.6 million as the Company maintained its highly efficient operating structure. Non-interest income increased by $1.6 million from 2013 to 2014, due primarily to additional mortgage banking income recognized from the reversal of a $1.0 million liability for losses on loans that were previously sold with recourse and were re-purchased in 2014, and a $1.0 million gain on the sale of securities. 

The net outcome of all of the above was a $698,000 increase in Net Income on a year-over-year basis, with earnings per diluted share remaining at the $1.23 level from 2013. Average common diluted shares outstanding were 35.9 million in 2014 versus 35.3 million in 2013, an increase of 1.8%.

Total consolidated assets grew by 11.6% in 2014, fueled by growth in total real estate loans of 11.4%. Loan originations were $948.2 million for 2014 and were supplemented by the re-acquisition of approximately $200.0 million of loans previously sold with recourse. The loan amortization rate was 19% in 2014, still historically high, however, down from 26% in 2013. The reduction in amortization rate and $200.0 million re-purchase of loans enabled the Company to meet its 12% loan growth target despite a slight reduction in total originations from 2013 to 2014. Tangible (leverage) common equity grew by $28.0 million in 2014, or 7.3%, to $412.6 million, primarily through earnings. Despite the 11.6% growth in assets, the Tier 1 core leverage ratio (tangible common equity) remained above 9.0%, ending 2014 at 9.3%.

Mr. Palagiano commented, "2014 marked an historic year for the Company, the 150th anniversary of the Bank's founding. As we look forward to the upcoming year, we plan to make critical investments in technology and infrastructure that we believe will best position Dime to thrive in a marketplace that is rapidly changing both technologically and demographically. Achieving these strategic goals will help us proudly continue Dime's successful legacy." 

Management's Discussion of Quarterly Operating Results

  • Net Interest Margin

NIM was 3.02% during the quarter ended December 31, 2014 compared to 3.09% during the September 2014 quarter, and 3.24% during the December 2013 quarter. Income recognized from loan prepayment activity, which varies from quarter to quarter, increased the Company's NIM during each of the reporting periods presented. Loan amortization and prepayments ran significantly higher during the last six months of 2014 compared to the first six months of the year. For the fourth quarter 2014, income from prepayment activity was $3.7 million, or 35 basis points of impact upon NIM, compared to $3.9 million, or 38 basis points of impact upon NIM, during the quarter ended September 30, 2014. The "core" NIM, which excludes the impact of this item, decreased from 2.71% during the September 2014 quarter to 2.67% during the December 2014 quarter, caused primarily by a reduction of 6 basis points in the average yield on interest earning assets. Core NIM for the December 2013 quarter was 2.90%.

As mentioned in the Company's previous earnings release, the core NIM is not expected to fluctuate significantly as long as the current interest rate environment remains in effect.

The average cost of funds declined by 3 basis points from the September 2014 to the December 2014 quarter, reflecting a 17 basis point reduction in the average cost of borrowings, as funding costs continued to remain at historically low levels. 

  • Net Interest Income

Net interest income ("NII") was $31.7 million in the quarter ended December 31, 2014, down $231,000 from $32.0 million reported in the September 2014 quarter, and $961,000 higher than the $30.8 million reported in the December 2013 quarter. The reduction from the September 2014 quarter primarily reflected $248,000 of lower prepayment related income. The increase in NII from the December 2013 quarter resulted from $479,000 of higher prepayment fee income coupled with the growth of $396.6 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 fourth quarter of $522,000, due primarily to a lower loss experience applied to pass graded loans.

  • Non-Interest Income

Non-interest income was $2.6 million for the quarter ended December 31, 2014, an increase of $779,000 from the September 2014 quarter, and resulted primarily from a $1.0 million gain recognized in the December 2014 quarter on the sale of securities. 

  • Non-Interest Expense

Non-interest expense was $15.2 million in the quarter ended December 31, 2014, in line with the forecasted level, and approximately $507,000 above the $14.7 million level experienced in the September 2014 quarter. There were some non-recurring reductions to operating expenses recognized in the September 2014 quarter, therefore $15.2 million recognized in the December 2014 quarter represented a more normalized level. 

Non-interest expense was 1.38% of average assets during the most recent quarter, compared to 1.36% during the September 2014 quarter. The efficiency ratio approximated 45% during the December 2014 quarter. 

  • Income Tax Expense

The effective tax rate approximated 38.9% 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 December 2014 quarter.

Management's Discussion of the December 31, 2014 Balance Sheet

Total assets were $4.50 billion at December 31, 2014, up $112.7 million, or 2.6%, from September 30, 2014. 

  • Real Estate Loans

Real estate loan net portfolio growth was $66.1 million for the quarter. Real estate loan originations were $272.7 million, at a weighted average interest rate of 3.21%. Of this amount, $94.8 million represented loan refinances from the existing portfolio. Approximately 76% of the loans originated during the quarter contained repricing terms of 5-years or less. Loan amortization and satisfactions totaled $209.4 million, or 20.5% (annualized) of the quarterly average portfolio balance, at an average rate of 4.63%. The average yield on the loan portfolio (excluding income recognized from prepayment activity) during the quarter ended December 31, 2014 was 3.85%, compared to 3.90% during the September 2014 quarter and 4.16% during the December 2013 quarter.

  • Credit Summary

Non-performing loans were $6.2 million, or 0.15% of total loans, at December 31, 2014, compared to $11.5 million, or 0.28% of total loans, at September 30, 2014. The decline in dollar amount resulted primarily from both a non-performing loan returning to accrual status and the disposal of another non-performing loan. Accruing loans delinquent between 30 and 89 days were $1.8 million, or approximately 0.04% of total loans, at December 31, 2014, compared to $1.1 million, or 0.03% of total loans, at September 30, 2014. 

At December 31, 2014, the Bank also had $15.1 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 0.47% at September 30, 2014 to 0.45% at December 31, 2014. 

At December 31, 2014, non-performing assets represented 2.5% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table later in news release). This number compares very favorably to both national and regional industry averages.

  • Deposits and Borrowed Funds

Deposits increased by $37.2 million during the most recent quarter, reflecting net growth of $79.2 million in certificates of deposit ("CDs") and $11.3 million in non-interest bearing checking balances, that were partially offset by a net reduction of $50.6 million in money market deposits.

The Bank's Federal Home Loan Bank of New York advances grew by $70.5 million during the December 2014 quarter. All of this growth came in the form of short-term borrowings. The Company plans to utilize deposits to fund asset growth in 2015, and will likely utilize borrowings on an as needed basis.

  • Capital

The Company's consolidated tangible capital increased $7.8 million during the most recent quarter. Due to the $112.7 million growth in assets during the December 2014 quarter, the consolidated Tier 1 core leverage ratio (tangible common equity to tangible assets) declined from 9.35% at September 30, 2014 to 9.29% at December 31, 2014.

The Bank's tangible (leverage) capital ratio was 9.20% at December 31, 2014, down from 9.25% at September 30, 2014, due to the growth in assets during the most recent quarter. The Bank's Total Risk-Based Capital Ratio was 12.89% at December 31, 2014, compared to 12.84% at September 30, 2014.

Reported diluted EPS exceeded the quarterly cash dividend rate per share by 136% during the quarter ended December 31, 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 $0.22 sequentially during the most recent quarter, to $11.20 at December 31, 2014.

Outlook for the Quarter Ending March 31, 2015

At December 31, 2014, Dime had outstanding loan commitments totaling $237.5 million, all of which are likely to close during the quarter ending March 31, 2015, at an average interest rate approximating 3.25%. Loan prepayments and amortization are currently projected to run in the 15% - 20% range during 2015.

The Company has a balance sheet growth objective approximating 5% for the year ending December 31, 2015. Management currently expects to utilize retail deposits to fund much of this growth. 

Deposit funding costs are expected to remain near current historically low levels through the March 2015 quarter. The Bank has $106.4 million of CDs maturing at an average cost of 1.30% during the quarter ending March 31, 2015. The current offering rates on 12-month term CDs approximates 40 basis points. During the quarter ending March 31, 2015, the Bank has $265.0 million in borrowings due to mature at an average cost of 0.97%. 

The Bank plans to utilize promotional campaigns related to money market and checking accounts (both consumer and business), 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 March 2015 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.

As previously noted, the Company has several strategic technology and infrastructure initiatives planned for 2015, which are expected to slightly elevate operating costs for the year. Non-interest expense is therefore expected to range between $15.5 million and $16.0 million during the March 2015 quarter. 

The Company projects that the consolidated effective tax rate will approximate 40.0% in the March 2015 quarter.

ABOUT DIME COMMUNITY BANCSHARES, INC.

The Company (NASDAQ: DCOM) had $4.50 billion in consolidated assets as of December 31, 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)  
             
  December 31,   September 30,   December 31,  
  2014   2014   2013  
ASSETS:               
Cash and due from banks $78,187   $58,977   $45,777  
Investment securities held to maturity  5,367    5,352    5,341  
Investment securities available for sale  3,806    3,708    18,649  
Trading securities  8,559    7,056    6,822  
Mortgage-backed securities available for sale  26,409    27,721    31,543  
Federal funds sold and other short-term investments  250    250    -  
Real Estate Loans:               
 One-to-four family and cooperative apartment  73,500    75,576    73,956  
 Multifamily and loans underlying cooperatives (1)  3,292,753    3,214,225    2,917,380  
 Commercial real estate (1)  745,463    755,979    700,606  
 Construction and land acquisition  -    -    268  
 Unearned discounts and net deferred loan fees  5,695    5,482    5,170  
 Total real estate loans  4,117,411    4,051,262    3,697,380  
 Other loans  1,829    1,913    2,139  
 Allowance for loan losses  (18,493 )  (19,098 )  (20,153 )
Total loans, net  4,100,747    4,034,077    3,679,366  
Loans held for sale  -    1,481    -  
Premises and fixed assets, net  25,065    25,607    29,701  
Federal Home Loan Bank of New York capital stock  58,407    55,235    48,051  
Goodwill  55,638    55,638    55,638  
Other Real Estate Owned  18    18    18  
Other assets  134,654    109,285    107,284  
TOTAL ASSETS $4,497,107   $4,384,405   $4,028,190  
LIABILITIES AND STOCKHOLDERS' EQUITY:               
Deposits:               
Non-interest bearing checking $187,593   $176,328   $174,457  
Interest Bearing Checking  78,430    75,375    87,301  
Savings  372,753    378,500    376,900  
Money Market  1,094,698    1,145,248    1,040,079  
 Sub-total  1,733,474    1,775,451    1,678,737  
Certificates of deposit  926,318    847,162    828,409  
Total Due to Depositors  2,659,792    2,622,613    2,507,146  
Escrow and other deposits  91,921    95,830    69,404  
Federal Home Loan Bank of New York advances  1,173,725    1,103,225    910,000  
Trust Preferred Notes Payable  70,680    70,680    70,680  
Other liabilities  41,264    35,854    35,454  
TOTAL LIABILITIES  4,037,382    3,928,202    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 December 31, 2014, September 30, 2014 and December 31, 2013, respectively, and 36,855,019 shares, 36,858,556 shares, and 35,712,951 shares outstanding at December 31, 2014, September 30, 2014 and December 31, 2013, respectively)  529    529    528  
Additional paid-in capital  254,358    254,103    252,253  
Retained earnings  427,126    420,170    402,986  
Accumulated other comprehensive loss, net of deferred taxes  (8,547 )  (4,284 )  (4,759 )
Unallocated common stock of Employee Stock Ownership Plan  (2,545 )  (2,603 )  (2,776 )
Unearned Restricted Stock Award common stock  (3,066 )  (3,626 )  (3,193 )
Common stock held by the Benefit Maintenance Plan  (9,164 )  (9,164 )  (9,013 )
Treasury stock (16,016,424 shares, 16,012,887 shares and 16,141,532 shares at December 31, 2014, September 30, 2014 and December 31, 2013, respectively)  (198,966 )  (198,922 )  (200,520 )
TOTAL STOCKHOLDERS' EQUITY  459,725    456,203    435,506  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,497,107   $4,384,405   $4,028,190  
                
(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  
  December 31,   September 30,   December 31,  
  2014   2014   2013  
Interest income:               
  Loans secured by real estate $42,897   $43,477   $41,303  
  Other loans  25    26    26  
  Mortgage-backed securities  207    223    290  
  Investment securities  286    68    188  
  Federal funds sold and other short-term investments  556    551    422  
   Total interest income  43,971    44,345    42,229  
Interest expense:               
  Deposits and escrow  5,002    4,976    4,687  
  Borrowed funds  7,241    7,410    6,775  
   Total interest expense  12,243    12,386    11,462  
    Net interest income  31,728    31,959    30,767  
Provision for loan losses  (522 )  (501 )  (56 )
Net interest income after provision for loan losses  32,250    32,460    30,823  
                
Non-interest income:               
  Service charges and other fees  684    1,084    905  
  Mortgage banking income, net  72    71    123  
  Gain (loss) on sale of securities and other assets  997    -    -  
  Gain (loss) on trading securities  (80 )  (43 )  78  
  Other  923    705    731  
   Total non-interest income  2,596    1,817    1,837  
Non-interest expense:               
  Compensation and benefits  8,895    8,760    9,578  
  Occupancy and equipment  2,521    2,513    2,716  
  Federal deposit insurance premiums  575    547    480  
  Other  3,240    2,904    2,687  
   Total non-interest expense  15,231    14,724    15,461  
                
   Income before taxes  19,615    19,553    17,199  
Income tax expense  7,628    7,788    6,891  
                
Net Income $11,987   $11,765   $10,308  
                
Earnings per Share ("EPS"):               
 Basic $0.33   $0.33   $0.29  
 Diluted $0.33   $0.33   $0.29  
                
Average common shares outstanding for Diluted EPS  35,971,661    35,974,339    35,717,449  
                
                
  For the Year Ended      
  December 31,   December 31,      
  2014   2013      
Interest income:               
  Loans secured by real estate $169,208   $171,594       
  Other loans  105    101       
  Mortgage-backed securities  914    1,413       
  Investment securities  560    503       
  Federal funds sold and other short-term investments  2,165    1,845       
   Total interest income  172,952    175,456       
Interest expense:               
  Deposits and escrow  19,591    19,927       
  Borrowed funds  28,825    27,042       
   Total interest expense  48,416    46,969       
    Net interest income  124,536    128,487       
Provision for loan losses  (1,872 )  369       
Net interest income after provision for loan losses  126,408    128,118       
                
Non-interest income:               
  Service charges and other fees  3,191    3,459       
  Mortgage banking income, net  1,225    473       
  Gain (loss) on sale of securities and other assets  997    89       
  Gain (loss) on trading securities  604    265       
  Other  3,021    3,177       
   Total non-interest income  9,038    7,463       
Non-interest expense:               
  Compensation and benefits  36,279    38,293       
  Occupancy and equipment  10,177    10,451       
  Federal deposit insurance premiums  2,151    1,951       
  Other  12,469    11,997       
   Total non-interest expense  61,076    62,692       
                
   Income before taxes  74,370    72,889       
Income tax expense  30,124    29,341       
                
Net Income $44,246   $43,548       
                
Earnings per Share ("EPS"):               
 Basic $1.23   $1.24       
 Diluted $1.23   $1.23       
                
Average common shares outstanding for Diluted EPS  35,948,516    35,306,272       
            
            
            
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS  
(Dollars In thousands except per share amounts)  
              
   For the Three Months Ended  
   December 31,   September 30,   December 31,  
   2014   2014   2013  
                 
Performance Ratios (Based upon Reported Earnings):                
Reported EPS (Diluted)  $0.33   $0.33   $0.29  
Return on Average Assets   1.09 %  1.09 %  1.03 %
Return on Average Stockholders' Equity   10.45 %  10.37 %  9.62 %
Return on Average Tangible Stockholders' Equity   11.74 %  11.74 %  10.84 %
Net Interest Spread   2.85 %  2.92 %  3.04 %
Net Interest Margin   3.02 %  3.09 %  3.24 %
Non-interest Expense to Average Assets   1.38 %  1.36 %  1.55 %
Efficiency Ratio   45.59 %  43.54 %  47.53 %
Effective Tax Rate   38.89 %  39.83 %  40.07 %
                 
Book Value and Tangible Book Value Per Share:                
Stated Book Value Per Share  $12.47   $12.38   $11.86  
Tangible Book Value Per Share   11.20    10.98    10.47  
                 
Average Balance Data:                
Average Assets  $4,403,001   $4,321,228   $3,997,842  
Average Interest Earning Assets   4,200,047    4,138,802    3,803,406  
Average Stockholders' Equity   458,679    453,813    428,396  
Average Tangible Stockholders' Equity   408,350    400,822    380,417  
Average Loans   4,073,732    4,017,867    3,667,231  
Average Deposits   2,634,222    2,636,593    2,547,115  
                 
Asset Quality Summary:                
Net charge-offs (recoveries)  $83   $34   $331  
Non-performing Loans (excluding loans held for sale)   6,198    11,527    12,549  
Non-performing Loans/ Total Loans   0.15 %  0.28 %  0.34 %
Nonperforming Assets (2)  $7,120   $13,929   $13,465  
Nonperforming Assets/Total Assets   0.16 %  0.32 %  0.33 %
Allowance for Loan Loss/Total Loans   0.45 %  0.47 %  0.54 %
Allowance for Loan Loss/Non-performing Loans   298.37 %  165.69 %  160.59 %
Loans Delinquent 30 to 89 Days at period end  $1,429   $1,113   $1,603  
                 
Consolidated Tangible Stockholders' Equity to Tangible Assets at period end   9.29 %  9.35 %  9.68 %
                 
Regulatory Capital Ratios (Bank Only):                
Tier One Core Leverage Ratio (Tangible Common Equity)   9.20 %  9.25 %  9.52 %
Tier One Risk Based Capital Ratio   12.33 %  12.25 %  12.64 %
Total Risk Based Capital Ratio   12.89 %  12.84 %  13.36 %
           
(1) Adjusted earnings is a "non-GAAP" measure. A reconciliation from the comparable GAAP measure is provided herein.
(2) 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 Year Ended  
   December 31,   December 31,  
   2014   2013  
            
Performance Ratios (Based upon Reported Earnings):           
Reported EPS (Diluted)  $1.23   $1.23  
Return on Average Assets   1.03 %  1.09 %
Return on Average Stockholders' Equity   9.83 %  10.58 %
Return on Average Tangible Stockholders' Equity   11.13 %  11.93 %
Net Interest Spread   2.84 %  3.19 %
Net Interest Margin   3.03 %  3.39 %
Non-interest Expense to Average Assets   1.42 %  1.57 %
Efficiency Ratio   46.28 %  46.23 %
Effective Tax Rate   40.50 %  40.25 %
            
Book Value and Tangible Book Value Per Share:           
Stated Book Value Per Share  $12.47   $11.86  
Tangible Book Value Per Share   11.20    10.47  
            
Average Balance Data:           
Average Assets  $4,294,634   $3,983,310  
Average Interest Earning Assets   4,104,007    3,787,188  
Average Stockholders' Equity   449,890    411,763  
Average Tangible Stockholders' Equity   397,669    365,101  
Average Loans   3,964,520    3,606,039  
Average Deposits   2,606,178    2,589,485  
            
Asset Quality Summary:           
Net charge-offs (recoveries)   ($ 212 ) $766  
Non-performing Loans (excluding loans held for sale)   6,198    12,549  
Non-performing Loans/ Total Loans   0.15 %  0.34 %
Nonperforming Assets (2)  $7,120   $13,465  
Nonperforming Assets/Total Assets   0.16 %  0.33 %
Allowance for Loan Loss/Total Loans   0.45 %  0.54 %
Allowance for Loan Loss/Non-performing Loans   298.37 %  160.59 %
Loans Delinquent 30 to 89 Days at period end  $1,429   $1,603  
            
Consolidated Tangible Stockholders' Equity to Tangible Assets at period end   9.29 %  9.68 %
            
Regulatory Capital Ratios (Bank Only):           
Tier One Core Leverage Ratio (Tangible Common Equity)   9.20 %  9.52 %
Tier One Risk Based Capital Ratio   12.33 %  12.64 %
Total Risk Based Capital Ratio   12.89 %  13.36 %
            
(1) Adjusted earnings is a "non-GAAP" measure. A reconciliation from the comparable GAAP measure is provided herein.
(2) 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  
  December 31, 2014  
         Average  
  Average      Yield/  
  Balance  Interest   Cost  
Assets:             
 Interest-earning assets:             
  Real estate loans $4,071,822  $42,897   4.21 %
  Other loans  1,910   25   5.24  
  Mortgage-backed securities  25,660   207   3.23  
  Investment securities  15,870   286   7.21  
  Other short-term investments  84,785   556   2.62  
   Total interest earning assets  4,200,047  $43,971   4.19 %
 Non-interest earning assets  202,954          
Total assets $4,403,001          
              
Liabilities and Stockholders' Equity:             
 Interest-bearing liabilities:             
  Interest Bearing Checking accounts $76,743  $52   0.27 %
  Money Market accounts  1,132,049   1,710   0.60  
  Savings accounts  375,667   47   0.05  
  Certificates of deposit  866,055   3,193   1.46  
   Total interest bearing deposits  2,450,514   5,002   0.81  
 Borrowed Funds  1,169,742   7,241   2.46  
  Total interest-bearing liabilities  3,620,256  $12,243   1.34 %
 Non-interest bearing checking accounts  183,708          
 Other non-interest-bearing liabilities  140,358          
  Total liabilities  3,944,322          
 Stockholders' equity  458,679          
Total liabilities and stockholders' equity $4,403,001          
Net interest income     $31,728      
Net interest spread          2.85 %
Net interest-earning assets $579,791          
Net interest margin          3.02 %
Ratio of interest-earning assets to interest-bearing liabilities      116.02 %    
              
Deposits (including non-interest bearing checking accounts) $2,634,222  $5,002   0.75 %
           
           
SUPPLEMENTAL INFORMATION             
Loan prepayment and late payment fee income, net of accelerated premium amortization     $3,695      
Real estate loans (excluding prepayment and late payment fees)       3.85 %
Interest earning assets (excluding net prepayment and late payment fee income)       3.84 %
Net Interest income (excluding net prepayment and late payment fee income)     $28,033      
Net Interest margin (excluding net prepayment and late payment fee income)          2.67 %
              
            
 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 prepayment and late payment fees)       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 
  December 31, 2013  
         Average  
  Average      Yield/  
  Balance  Interest   Cost  
Assets:             
 Interest-earning assets:             
  Real estate loans $3,665,008  $41,303   4.51 %
  Other loans  2,223   26   4.68  
  Mortgage-backed securities  31,631   290   3.67  
  Investment securities  29,048   188   2.59  
  Other short-term investments  75,496   422   2.24  
   Total interest earning assets  3,803,406  $42,229   4.44 %
 Non-interest earning assets  194,436          
Total assets $3,997,842          
              
Liabilities and Stockholders' Equity:             
 Interest-bearing liabilities:             
  Interest Bearing Checking accounts $89,293  $47   0.21 %
  Money Market accounts  1,063,748   1,343   0.50  
  Savings accounts  376,965   47   0.05  
  Certificates of deposit  842,099   3,250   1.53  
    Total interest bearing deposits  2,372,105   4,687   0.78  
 Borrowed Funds  867,438   6,775   3.10  
  Total interest-bearing liabilities  3,239,543  $11,462   1.40 %
 Non-interest bearing checking accounts  175,010          
 Other non-interest-bearing liabilities  154,893          
  Total liabilities  3,569,446          
 Stockholders' equity  428,396          
Total liabilities and stockholders' equity $3,997,842          
Net interest income     $30,767      
Net interest spread          3.04 %
Net interest-earning assets $563,863          
Net interest margin          3.24 %
              
Ratio of interest-earning assets to interest-bearing liabilities      117.41 %    
              
Deposits (including non-interest bearing checking accounts) $2,547,115  $4,687   0.73 %
              
SUPPLEMENTAL INFORMATION             
Loan prepayment and late payment fee income, net of accelerated premium amortization     $3,216      
Real estate loans (excluding prepayment and late payment fees)       4.16 %
Interest earning assets (excluding net prepayment and late payment fee income)       4.10 %
Net Interest income (excluding net prepayment and late payment fee income)     $27,551      
Net Interest margin (excluding net prepayment and late payment fee income)          2.90 %
          
          
          
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS  
(Dollars In thousands)  
      
   At December 31,   At September 30,   At December 31,  
Non-Performing Loans  2014   2014   2013  
 One- to four-family and cooperative apartment  $1,310   $1,363   $1,242  
 Multifamily residential and mixed use residential real estate (1)(2)   167    1,039    1,197  
 Mixed use commercial real estate (2)   -    4,400    4,400  
 Commercial real estate   4,717    4,717    5,707  
 Other   4    8    3  
Total Non-Performing Loans (3)  $6,198   $11,527   $12,549  
Other Non-Performing Assets                
 Non-performing loans held for sale   -    1,481    -  
 Other real estate owned   18    18    18  
 Pooled bank trust preferred securities (4)   904    903    898  
Total Non-Performing Assets  $7,120   $13,929   $13,465  
                 
TDRs not included in non-performing loans (3)                
 One- to four-family and cooperative apartment   605    607    934  
 Multifamily residential and mixed use residential real estate (1)(2)   1,105    1,115    1,148  
 Mixed use commercial real estate (2)   4,400    -    -  
 Commercial real estate   8,990    9,025    16,538  
Total Performing TDRs  $15,100   $10,747   $18,620  
                 
(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 $4,717 at December 31, 2014, $9,117 at September 30, 2014 and $5,707 at December 31, 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 December 31,   At September 30,   At December 31,  
   2014   2014   2013  
Total Non-Performing Assets  $7,120   $13,929   $13,465  
Loans 90 days or more past due on accrual status (5)   3,332    2,400    1,031  
 TOTAL PROBLEM ASSETS  $10,452   $16,329   $14,496  
                 
Tier One Capital - The Dime Savings Bank of Williamsburgh  $406,910   $399,062   $376,717  
Allowance for loan losses   18,493    19,098    20,153  
 TANGIBLE CAPITAL PLUS RESERVES  $425,403   $418,160   $396,870  
                 
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES   2.5 %  3.9 %  3.7 %
                 
(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