SOURCE: Dime Community Bancshares

Dime Community Bancshares

July 23, 2015 16:15 ET

Dime Community Bancshares, Inc. Posts Strong Quarterly Earnings

Quarterly EPS of $0.32; $91 Million of Growth in Deposits

BROOKLYN, NY--(Marketwired - July 23, 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 ended June 30, 2015. Consolidated net income for the quarter was $11.5 million, or $0.32 per diluted share, compared to $11.8 million, or $0.33 per diluted share, for the quarter ended March 31, 2015, and $10.5 million, or $0.29 per diluted share, for the quarter ended June 30, 2014.

Vincent F. Palagiano, Chairman and Chief Executive Officer of Dime, commented, "We are pleased to report another solid operating quarter, fueled by increased prepayment fee income, a $1.1 million credit to the allowance for loan losses that was primarily attributable to the resolution of our largest problem loan, and continued low funding and operating costs. Dime's traditionally favorable asset quality metrics have even returned to pre-crisis levels." The allowance for loan losses as a percentage of total loans remained relatively unchanged from the 0.43% level at March 31, 2015.

Mr. Palagiano continued, "Despite the elevated loan amortization experienced in the June 2015 quarter, we were still able to grow loans by 7% on an annualized basis during the quarter, utilizing core deposits to fund the growth. We continue to have success in our deposit operation, and, over the first six months of 2015, have experienced over 17% growth in business deposits. Consolidated tangible capital increased by over 10% annualized in the second quarter, leaving the Company well positioned to support its double digit annual asset growth target."

Management's Discussion of Quarterly Operating Results
There were no variances between reported and "core" net income (as computed on page 9 of this release) during the three months ended both June 30, 2015 and 2014. The quarter ended March 31, 2015 featured several items that were non-recurring in nature, which produced a net increase of $1.9 million, or $0.06 per diluted share, in after-tax earnings for the period. Excluding these items, net income was $9.9 million, or $0.27 per diluted share during the three months ended March 31, 2015.

  • Net Interest Margin

Net interest margin ("NIM") was 3.05% during the quarter ended June 30, 2015 compared to 2.80% during the March 2015 quarter, and 2.96% during the June 2014 quarter. Income recognized from loan prepayment activity, which varies from quarter to quarter, had a positive impact on the Company's NIM during each of the reporting periods presented. Due to the refinancing activities of two large borrowers, loan amortization and prepayments were significantly higher during the June 2015 quarter than during the March 2015 quarter. For the second quarter 2015, income from prepayment activity totaled $4.1 million, or 39 basis points of impact upon NIM, compared to $2.3 million, or 22 basis points of impact upon NIM, during the quarter ended March 31, 2015. In addition during the March 2015 quarter, the NIM was adversely impacted by 12 basis points as a result of $1.4 million in additional interest expense recognized from the prepayment of a Federal Home Loan Bank of New York ("FHLBNY") advance. The "core" NIM, which excludes the impact of these prepayment income and expense items, declined from 2.71% during the March 2015 quarter to 2.66% during the June 2015 quarter, caused by a reduction of 8 basis points in the average yield on interest earning assets and an increase of one basis point in the average cost of deposits. Core NIM for the June 2014 quarter was 2.73%.

As mentioned in the Company's previous earnings release, NIM, excluding the effects of prepayment fee income, is not expected to fluctuate significantly as long as the current interest rate environment remains in effect.

The average cost of funds declined by 19 basis points from the March 2015 to the June 2015 quarter, reflecting a 44 basis point reduction in the average cost of borrowings, as the March 2015 quarterly average cost of borrowings was increased by 47 basis points as a result of the prepayment of an FHLBNY advance.

  • Net Interest Income

Net interest income was $33.1 million in the quarter ended June 30, 2015, an increase of $3.0 million from $30.1 million reported in the March 2015 quarter, and $2.5 million from the $30.6 million reported in the June 2014 quarter. The increase from the March 2015 quarter resulted from both an additional $1.8 million of prepayment fee income recognized during the June 2015 quarter, and the additional $1.4 million of interest expense recognized in the March 2015 quarter from the prepayment of the FHLBNY advance. The increase from the June 2014 quarter reflected both $1.8 million of additional prepayment fee income and a reduction of $1.9 million in interest expense on borrowings, as the average balance of borrowings declined $86.6 million from the June 2014 quarter to the June 2015 quarter.

  • (Credit) 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 June 2015 quarter of $1.1 million, due primarily to a recovery of $1.5 million recognized on the resolution of a $4.5 million non-accrual loan. The credit to the allowance for loan losses recognized during the June 2015 quarter was reduced by loan loss reserves added from growth in the loan portfolio experienced during the quarter.

  • Non-Interest Income

Non-interest income was $1.7 million for the quarter ended June 30, 2015, a reduction of $1.6 million from the March 2015 quarter, due primarily to a non-recurring $1.4 million gain on the sale of mortgage-backed securities recognized in the March 2015 quarter, and lower loan-related fee income. Non-interest income was $110,000 above the June 2014 quarter, due to additional income recognized from Bank Owned Life Insurance assets, as the Company purchased additionally BOLI policies in October 2014.

  • Non-Interest Expense

Non-interest expense was $16.4 million in the quarter ended June 30, 2015, up $2.5 million from the March 2015 quarter, but slightly below the $16.5 million projected level. During the March 2015 quarter, a $3.4 million reduction to expense was recognized from the curtailment of a previously-grandfathered post-retirement benefit plan. Excluding the curtailment benefit, non-interest expense was $17.3 million in the March 2015 quarter.

Non-interest expense was 1.44% of average assets during the most recent quarter, compared to 1.53% during the March 2015 quarter (excluding the impact of the postretirement plan curtailment benefit). The efficiency ratio approximated 47% during the June 2015 quarter.

  • Income Tax Expense

The effective tax rate approximated 41% during the most recent quarter, above the forecasted 39% level due to higher than forecasted taxable income from prepayment fees on loan refinancings.

Management's Discussion of the June 30, 2015 Balance Sheet

Total assets were $4.64 billion at June 30, 2015, up $61.2 million, or 1.3%, from March 31, 2015.

  • Real Estate Loans

Real estate loan net portfolio growth was $71.2 million for the quarter. Real estate loan originations were $408.7 million, at a weighted average interest rate of 3.25%. Of this amount, $170.4 million represented loan refinances from the existing portfolio. Approximately one-half of the loans originated during the quarter contained repricing terms of five years or less. Loan amortization and satisfactions totaled $333.0 million, or 31.2% (annualized) of the quarterly average portfolio balance, at an average rate of 4.09%. During the three months ended June 30, 2015, $41.2 million of loans to one large borrower were paid off, accounting for the higher than expected satisfaction volume during the quarter. The average yield on the loan portfolio (excluding income recognized from prepayment activity) during the quarter ended June 30, 2015 was 3.73%, compared to 3.79% during the March 2015 quarter and 4.01% during the June 2014 quarter.

  • Credit Summary

Non-performing loans were $959,000, or 0.02% of total loans, at June 30, 2015, down from $6.4 million, or 0.15% of total loans, at March 31, 2015. During the most recent quarter, four non-accrual loans totaling $4.9 million were either disposed of or satisfied, and a $333,000 non-accrual loan was transferred to held for sale pending closing of an executed note sale agreement. Accruing loans delinquent between 30 and 89 days were $349,000, or 0.01% of total loans, at June 30, 2015, down from $1.2 million, or 0.03% of total loans, at March 31, 2015.

At June 30, 2015, the Bank also had $9.2 million of loans classified as troubled debt restructurings that remained on accrual status and were deemed performing loans. All such loans were current as of June 30, 2015.

The allowance for loan losses as a percentage of total loans remained relatively unchanged from the 0.43% level at March 31, 2015.

At June 30, 2015, non-performing assets represented 0.80% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table). This number compares very favorably to both national and regional industry averages.

  • Deposits and Borrowed Funds

Progress continues to be made in lowering the Bank's loan to deposit ratio, and increasing core deposits, as both are presently viewed as significant components of the Company's long term strategic growth plan.

Deposits increased by $91.4 million during the quarter ended June 30, 2015. Recent deposit gathering initiatives focused upon money markets and business accounts led to growth of $111.4 million and $21.9 million in their respective balances during the period. Offsetting this growth was a reduction of $29.5 million in certificates of deposits ("CDs").

Total borrowings declined $15.0 million during the June 2015 quarter, as shorter-term Federal Home Loan Bank of New York advances were reduced by $15.0 million while the Bank was able to replace borrowings with deposits in order to fund asset growth during the period.

  • Capital

The Bank and Company recently commenced compliance with the Basel III capital rules. The consolidated leverage ratio (Tier 1 capital to average assets) was 11.12% at June 30, 2015, well in excess of all Basel III capital requirements (inclusive of conservation buffer amounts).

The Bank's leverage ratio (Tier 1 capital to average assets) was 9.47% at June 30, 2015, up from 9.24% at March 31, 2015, as a result of $9.5 million of Tier 1 capital added during the quarter. The Bank's "Tier 1" and "Total" capital ratios were 12.44% and 12.99%, respectively, at June 30, 2015, also well in excess of the most stringent Basel III requirements.

Reported diluted earnings per share exceeded the quarterly cash dividend rate per share by 129% during the quarter ended June 30, 2015, equating to a 44% payout ratio. Additions to capital from earnings during the most recent quarterly period raised tangible book value per share by $0.21 sequentially during the most recent quarter, to $11.61 at June 30, 2015.

Outlook for the Quarter Ending September 30, 2015

At June 30, 2015, Dime had outstanding loan commitments totaling $281.9 million, all of which are likely to close during the quarter ending September 30, 2015, at an average interest rate approximating 3.35%. Loan prepayments and amortization are projected to moderate significantly from the June 2015 quarter, and fall within a targeted range of 15% - 20% during the remainder of 2015.

The Company has a balance sheet growth objective approximating 12% for the year ending December 31, 2015, with a preference toward utilizing retail deposits for most of its funding needs.

Deposit funding costs are expected to remain near current historically low levels through the September 2015 quarter. During the quarter ending September 30, 2015, the Bank has $120.9 million of CDs maturing at an average rate of 0.80%, and $205.0 million of borrowings maturing at an average rate of 1.04%. No significant increase or reduction in funding costs is likely to occur from the rollover or re-positioning of these funds.

Loan loss reserve provisions or credits will continue to depend upon annualized loan portfolio growth, incurred and anticipated losses, and the overall performance of the loan portfolio. Significant provisions or credits are less likely as the expected loss component of the allowance continues to stabilize and portfolio growth remains measured and consistent.

Non-interest expense is expected to approximate $16.3 million during the September 2015 quarter, reflecting strategic technology and infrastructure initiatives that have elevated operating costs from their 2014 level.

The Company projects that the consolidated effective tax rate will approximate 39.0% in the September 2015 quarter.

ABOUT DIME COMMUNITY BANCSHARES, INC.

The Company (NASDAQ: DCOM) had $4.64 billion in consolidated assets as of June 30, 2015, 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)
 
   June 30, 2015   March 31, 2015   December 31, 2014  
ASSETS:                
Cash and due from banks  $67,946   $79,149   $78,187  
Investment securities held to maturity   5,300    5,326    5,367  
Investment securities available for sale   3,842    3,846    3,806  
Trading securities   8,777    8,747    8,559  
Mortgage-backed securities available for sale   459    485    26,409  
Federal funds sold and other short-term investments   -    250    250  
Real Estate Loans:                
 One-to-four family and cooperative/condomnium apartment   70,875    70,982    73,500  
 Multifamily and loans underlying cooperatives (1)   3,426,991    3,392,472    3,292,753  
 Commercial real estate   799,882    763,591    745,463  
 Unearned discounts and net deferred loan fees   6,561    6,060    5,695  
 Total real estate loans   4,304,309    4,233,105    4,117,411  
 Other loans   1,954    1,612    1,829  
 Allowance for loan losses   (18,553 )  (18,237 )  (18,493 )
Total loans, net   4,287,710    4,216,480    4,100,747  
Loans held for sale   333    -    -  
Premises and fixed assets, net   15,263    24,485    25,065  
Premises held for sale   8,799    -    -  
Federal Home Loan Bank of New York capital stock   52,728    52,782    58,407  
Other Real Estate Owned   148    148    18  
Goodwill   55,638    55,638    55,638  
Other assets   137,592    136,013    134,654  
TOTAL ASSETS  $4,644,535   $4,583,349   $4,497,107  
LIABILITIES AND STOCKHOLDERS' EQUITY:                
Deposits:                
Non-interest bearing checking  $210,957   $197,102   $187,593  
Interest Bearing Checking   75,677    76,449    78,430  
Savings   370,127    373,730    372,753  
Money Market   1,378,718    1,267,290    1,094,698  
 Sub-total   2,035,479    1,914,571    1,733,474  
Certificates of deposit   898,328    927,863    926,318  
Total Due to Depositors   2,933,807    2,842,434    2,659,792  
Escrow and other deposits   87,239    114,476    91,921  
Federal Home Loan Bank of New York advances   1,033,725    1,048,725    1,173,725  
Trust Preferred Notes Payable   70,680    70,680    70,680  
Other liabilities   41,137    40,978    41,264  
TOTAL LIABILITIES   4,166,588    4,117,293    4,037,382  
STOCKHOLDERS' EQUITY:                
Common stock ($0.01 par, 125,000,000 shares authorized, 53,145,798 shares, 52,886,219 shares and 52,871,443 shares issued at June 30, 2015, March 31, 2015 and December 31, 2014, respectively, and 37,189,352 shares, 36,849,795 shares and 36,855,019 shares outstanding at June 30, 2015, March 31, 2015 and December 31, 2014, respectively)   532    529    529  
Additional paid-in capital   259,637    254,750    254,358  
Retained earnings   440,335    433,863    427,126  
Accumulated other comprehensive loss, net of deferred taxes   (9,349 )  (9,597 )  (8,547 )
Unallocated common stock of Employee Stock Ownership Plan   (2,429 )  (2,487 )  (2,545 )
Unearned Restricted Stock Award common stock   (3,165 )  (2,572 )  (3,066 )
Common stock held by the Benefit Maintenance Plan   (9,354 )  (9,164 )  (9,164 )
Treasury stock (15,956,446 shares, 16,036,424 shares and 16,016,424 shares at June 30, 2015, March 31, 2015 and December 31, 2014, respectively)   (198,260 )  (199,266 )  (198,966 )
TOTAL STOCKHOLDERS' EQUITY   477,947    466,056    459,725  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $4,644,535   $4,583,349   $4,497,107  
                 
(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  
   June 30,   March 31,   June 30,  
   2015   2015   2014  
Interest income:                
 Loans secured by real estate  $43,473   $41,788   $41,973  
 Other loans   24    24    29  
 Mortgage-backed securities   2    181    236  
 Investment securities   121    169    136  
 Federal funds sold and other short-term investments   578    650    536  
  Total interest income   44,198    42,812    42,910  
Interest expense:                
 Deposits and escrow   5,670    5,220    4,992  
 Borrowed funds   5,458    7,498    7,324  
  Total interest expense   11,128    12,718    12,316  
   Net interest income   33,070    30,094    30,594  
Credit for loan losses   (1,135 )  (172 )  (1,130 )
Net interest income after credit for loan losses   34,205    30,266    31,724  
                 
Non-interest income:                
 Service charges and other fees   799    750    769  
 Mortgage banking income, net   41    72    82  
 Gain (loss) on sale of securities and other assets   (4 )  1,388    -  
 Gain (loss) on trading securities   (21 )  62    63  
 Other   862    1,029    651  
  Total non-interest income   1,677    3,301    1,565  
Non-interest expense:                
 Compensation and benefits   9,540    6,841    9,115  
 Occupancy and equipment   2,490    2,944    2,392  
 Federal deposit insurance premiums   576    551    524  
 Other   3,760    3,528    3,267  
  Total non-interest expense   16,366    13,864    15,298  
                 
  Income before taxes   19,516    19,703    17,991  
Income tax expense   7,987    7,925    7,531  
                 
Net Income  $11,529   $11,778   $10,460  
                 
Earnings per Share ("EPS"):                
 Basic  $0.32   $0.33   $0.29  
 Diluted  $0.32   $0.33   $0.29  
                 
Average common shares outstanding for Diluted EPS   36,259,377    36,053,459    35,957,291  
                 
          
   For the Six Months Ended  
   June 30,   June 30,  
   2015   2014  
Interest income:           
 Loans secured by real estate  $85,261   $82,834  
 Other loans   48    54  
 Mortgage-backed securities   183    484  
 Investment securities   290    206  
 Federal funds sold and other short-term investments   1,228    1,058  
  Total interest income   87,010    84,636  
Interest expense:           
 Deposits and escrow   10,890    9,613  
 Borrowed funds   12,956    14,174  
  Total interest expense   23,846    23,787  
   Net interest income   63,164    60,849  
Credit for loan losses   (1,307 )  (849 )
Net interest income after credit for loan losses   64,471    61,698  
            
Non-interest income:           
 Service charges and other fees   1,549    1,424  
 Mortgage banking income, net   113    1,082  
 Gain (loss) on sale of securities and other assets   1,384    649  
 Gain (loss) on trading securities   41    77  
 Other   1,891    1,393  
  Total non-interest income   4,978    4,625  
Non-interest expense:           
 Compensation and benefits   16,381    18,623  
 Occupancy and equipment   5,434    5,143  
 Federal deposit insurance premiums   1,127    1,029  
 Other   7,288    6,326  
  Total non-interest expense   30,230    31,121  
             
  Income before taxes   39,219    35,202  
Income tax expense   15,912    14,708  
            
Net Income  $23,307   $20,494  
            
Earnings per Share ("EPS"):           
 Basic  $0.65   $0.57  
 Diluted  $0.64   $0.57  
            
Average common shares outstanding for Diluted EPS   36,158,821    35,923,349  
         
         
 
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,  
   2015   2015   2014  
Reconciliation of Reported and Adjusted ("Core") Net Income (1):                
Net Income  $11,529   $11,778   $10,460  
Less: After tax gain on sale of securities   -    (764 )  -  
Add: After-tax expense associated with the prepayment of borrowings   -    750    -  
Less: After tax gain on the sale of real estate   -    -    -  
Less: After tax credit on curtailment of postretirement health benefits   -    (1,868 )  -  
Adjusted ("Core") net income  $11,529   $9,896   $10,460  
                 
Performance Ratios (Based upon Reported Net Income):                
Reported EPS (Diluted)  $0.32   $0.33   $0.29  
Return on Average Assets   1.01 %  1.04 %  0.97 %
Return on Average Stockholders' Equity   9.78 %  10.18 %  9.36 %
Return on Average Tangible Stockholders' Equity   10.84 %  11.33 %  10.62 %
Net Interest Spread   2.88 %  2.59 %  2.77 %
Net Interest Margin   3.05 %  2.80 %  2.96 %
Non-interest Expense to Average Assets   1.44 %  1.23 %  1.42 %
Efficiency Ratio   47.97 %  43.40 %  47.66 %
Effective Tax Rate   40.93 %  40.22 %  41.86 %
                 
Performance Ratios (Based upon "Core Net Income" as calculated above):               
EPS (Diluted)  $0.32   $0.27   $0.29  
Return on Average Assets   1.01 %  0.88 %  0.97 %
Return on Average Stockholders' Equity   9.78 %  8.56 %  9.36 %
Return on Average Tangible Stockholders' Equity   10.84 %  9.52 %  10.62 %
Net Interest Spread   2.88 %  2.74 %  2.77 %
Net Interest Margin   3.05 %  2.92 %  2.96 %
Non-interest Expense to Average Assets   1.44 %  1.53 %  1.42 %
Efficiency Ratio   47.97 %  51.81 %  47.66 %
Effective Tax Rate   40.93 %  39.23 %  41.86 %
                 
Book Value and Tangible Book Value Per Share:                
Stated Book Value Per Share  $12.85   $12.65   $12.17  
Tangible Book Value Per Share   11.61    11.40    10.78  
                 
Average Balance Data:                
Average Assets  $4,555,381   $4,520,316   $4,311,701  
Average Interest Earning Assets   4,335,579    4,301,804    4,127,883  
Average Stockholders' Equity   471,628    462,670    446,785  
Average Tangible Stockholders' Equity   425,522    415,827    393,820  
Average Loans   4,216,209    4,174,083    3,945,287  
Average Deposits   2,911,493    2,750,791    2,623,386  
                 
Asset Quality Summary:                
Net (recoveries) charge-offs   ($ 1,451 ) $84    ($ 335 )
Non-performing Loans (excluding loans held for sale)   959    6,399    12,305  
Non-performing Loans/ Total Loans   0.02 %  0.15 %  0.31 %
Nonperforming Assets (2)  $2,659   $7,453   $13,224  
Nonperforming Assets/Total Assets   0.06 %  0.16 %  0.31 %
Allowance for Loan Loss/Total Loans   0.43 %  0.43 %  0.49 %
Allowance for Loan Loss/Non-performing Loans   1934.62 %  285.00 %  159.55 %
Loans Delinquent 30 to 89 Days at period end  $349   $1,239   $2,274  
                 
Consolidated Tangible Stockholders' Equity to Tangible Assets at period end   9.40 %  9.27 %  9.36 %
                 
Regulatory Capital Ratios (Bank Only):                
Common Equity Tier 1 Capital to Risk-Weighted Assets (3)   9.30 %  12.43 %  N/A  
Tier 1 Capital to Risk-Weighted Assets ("Tier 1 Capital Ratio") (3)   12.44 %  12.43 %  N/A  
Total Capital to Risk-Weighted Assets ("Total Capital Ratio") (3)   12.99 %  12.98 %  N/A  
Tier 1 Capital to Average Assets (3)   9.47 %  9.24 %  N/A  
                 
(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 and the recorded balance of pooled bank trust preferred security investments that were deemed to meet the criteria of a non-performing asset.             
(3) The ratios presented as of June 30, 2015 and March 31, 2015 are based upon new regulatory capital measures that became effective on January 1, 2015. Since these ratios were not effective as of June 30, 2014, comparative measures are not available as of that date, and are thus not presented.  
  
          
   For the Six Months Ended  
   June 30,   June 30,  
   2015   2014  
Reconciliation of Reported and Adjusted ("Core") Net Income (1):           
Net Income  $23,307   $20,494  
Less: After tax gain on sale of securities   (764 )  -  
Add: After-tax expense associated with the prepayment of borrowings   750    -  
Less: After tax gain on the sale of real estate   -    (356 )
Less: After tax credit on curtailment of postretirement health benefits   (1,868 )  -  
Adjusted ("Core") net income  $21,425   $20,138  
            
Performance Ratios (Based upon Reported Net Income):           
Reported EPS (Diluted)  $0.64   $0.57  
Return on Average Assets   1.03 %  0.97 %
Return on Average Stockholders' Equity   9.98 %  9.24 %
Return on Average Tangible Stockholders' Equity   11.08 %  10.49 %
Net Interest Spread   2.74 %  2.81 %
Net Interest Margin   2.93 %  3.01 %
Non-interest Expense to Average Assets   1.33 %  1.47 %
Efficiency Ratio   45.31 %  48.06 %
Effective Tax Rate   40.57 %  41.78 %
            
Performance Ratios (Based upon "Core Net Income" as calculated above):          
EPS (Diluted)  $0.59   $0.56  
Return on Average Assets   0.94 %  0.95 %
Return on Average Stockholders' Equity   9.17 %  9.08 %
Return on Average Tangible Stockholders' Equity   10.18 %  10.31 %
Net Interest Spread   2.82 %  2.81 %
Net Interest Margin   2.99 %  3.01 %
Non-interest Expense to Average Assets   1.48 %  1.47 %
Efficiency Ratio   49.39 %  48.06 %
Effective Tax Rate   40.15 %  41.72 %
            
Book Value and Tangible Book Value Per Share:           
Stated Book Value Per Share  $12.85   $12.17  
Tangible Book Value Per Share   11.61    10.78  
            
Average Balance Data:           
Average Assets  $4,537,849   $4,227,155  
Average Interest Earning Assets   4,318,692    4,038,591  
Average Stockholders' Equity   467,149    443,536  
Average Tangible Stockholders' Equity   420,769    390,724  
Average Loans   4,195,146    3,883,239  
Average Deposits   2,831,143    2,576,949  
            
Asset Quality Summary:           
Net (recoveries) charge-offs   ($ 1,367 )  ($ 329 )
Non-performing Loans (excluding loans held for sale)   959    12,305  
Non-performing Loans/ Total Loans   0.02 %  0.31 %
Nonperforming Assets (2)  $2,656   $13,224  
Nonperforming Assets/Total Assets   0.06 %  0.31 %
Allowance for Loan Loss/Total Loans   0.43 %  0.49 %
Allowance for Loan Loss/Non-performing Loans   1934.62 %  159.55 %
Loans Delinquent 30 to 89 Days at period end  $349   $2,274  
            
Consolidated Tangible Stockholders' Equity to Tangible Assets at period end   9.40 %  9.36 %
            
Regulatory Capital Ratios (Bank Only):           
Common Equity Tier 1 Capital to Risk-Weighted Assets (3)   9.30 %  N/A  
Tier 1 Capital to Risk-Weighted Assets ("Tier 1 Capital Ratio") (3)   12.44 %  N/A  
Total Capital to Risk-Weighted Assets ("Total Capital Ratio") (3)   12.99 %  N/A  
Tier 1 Capital to Average Assets (3)   9.47 %  N/A  
            
(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 and the recorded balance of pooled bank trust preferred security investments that were deemed to meet the criteria of a non-performing asset.         
(3) The ratios presented as of June 30, 2015 and March 31, 2015 are based upon new regulatory capital measures that became effective on January 1, 2015. Since these ratios were not effective as of June 30, 2014, comparative measures are not available as of that date, and are thus not presented.  
  
  
  
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME  
(Dollars In thousands)  
             
   For the Three Months Ended  
     June 30, 2015     
          Average  
   Average      Yield/  
   Balance  Interest   Cost  
Assets:              
 Interest-earning assets:              
  Real estate loans  $4,214,674  $43,473   4.13 %
  Other loans   1,535   23   5.99  
  Mortgage-backed securities   461   2   1.74  
  Investment securities   18,491   121   2.62  
  Other short-term investments   100,418   579   2.31  
   Total interest earning assets   4,335,579  $44,198   4.08 %
 Non-interest earning assets   219,802          
Total assets  $4,555,381          
               
Liabilities and Stockholders' Equity:              
 Interest-bearing liabilities:              
  Interest Bearing Checking accounts  $75,739  $60   0.32 %
  Money Market accounts   1,335,793   2,441   0.73  
  Savings accounts   373,430   45   0.05  
  Certificates of deposit   916,684   3,124   1.37  
   Total interest bearing deposits   2,701,646   5,670   0.84  
 Borrowed Funds   1,010,119   5,458   2.17  
  Total interest-bearing liabilities   3,711,765  $11,128   1.20 %
 Non-interest bearing checking accounts   209,847          
 Other non-interest-bearing liabilities   162,141          
  Total liabilities   4,083,753          
 Stockholders' equity   471,628          
Total liabilities and stockholders' equity  $4,555,381          
Net interest income      $33,070      
Net interest spread           2.88 %
Net interest-earning assets  $623,814          
Net interest margin           3.05 %
Ratio of interest-earning assets to interest-bearing liabilities       116.81 %    
               
Deposits (including non-interest bearing checking accounts)  $2,911,493  $5,670   0.78 %
               
SUPPLEMENTAL INFORMATION              
Loan prepayment and late payment fee income      $4,194      
Borrowing Prepayment Costs       -      
Real estate loans (excluding net prepayment and late payment fee income)           3.73 %
Interest earning assets (excluding net prepayment and late payment fee income)           3.69 %
Borrowing (excluding prepayment costs)  $1,010,119  $5,458   2.17 %
Interest bearing liabilities (excluding borrowing prepayment costs)           1.20 %
Net Interest income (excluding net prepayment and late payment fee income)      $28,876      
Net Interest margin (excluding net prepayment and late payment fee income)           2.66 %
           
             
   March 31, 2015  
          Average  
   Average      Yield/  
   Balance  Interest   Cost  
Assets:              
 Interest-earning assets:              
  Real estate loans  $4,172,422  $41,788   4.01 %
  Other loans   1,661   24   5.78  
  Mortgage-backed securities   23,119   181   3.13  
  Investment securities   18,414   169   3.67  
  Other short-term investments   86,188   650   3.02  
   Total interest earning assets   4,301,804  $42,812   3.98 %
 Non-interest earning assets   218,512          
Total assets  $4,520,316          
               
Liabilities and Stockholders' Equity:              
 Interest-bearing liabilities:              
  Interest Bearing Checking accounts  $77,086  $55   0.29 %
  Money Market accounts   1,179,713   1,915   0.66  
  Savings accounts   372,308   45   0.05  
  Certificates of deposit   928,039   3,205   1.40  
   Total interest bearing deposits   2,557,146   5,220   0.83  
 Borrowed Funds   1,162,983   7,498   2.61  
  Total interest-bearing liabilities   3,720,129  $12,718   1.39 %
 Non-interest bearing checking accounts   193,645          
 Other non-interest-bearing liabilities   143,872          
  Total liabilities   4,057,646          
 Stockholders' equity   462,670          
Total liabilities and stockholders' equity  $4,520,316          
Net interest income      $30,094      
Net interest spread           2.59 %
Net interest-earning assets  $581,675          
Net interest margin           2.80 %
Ratio of interest-earning assets to interest-bearing liabilities       115.64 %    
               
Deposits (including non-interest bearing checking accounts)  $2,750,791  $5,220   0.77 %
               
               
Loan prepayment and late payment fee income      $2,299      
Borrowing Prepayment Costs      $1,362      
Real estate loans (excluding net prepayment and late payment fee income)           3.79 %
Interest earning assets (excluding net prepayment and late payment fee income)           3.77 %
Borrowing (excluding prepayment costs)  $1,162,983  $6,136   2.14 %
Interest bearing liabilities (excluding borrowing prepayment costs)           1.24 %
Net Interest income (excluding net prepayment and late payment fee income)      $29,157      
Net Interest margin (excluding net prepayment and late payment fee income)           2.71 %
               
             
   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   0.82  
 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 %
               
               
Loan prepayment and late payment fee income      $2,444      
Borrowing Prepayment Costs       -      
Real estate loans (excluding net prepayment and late payment fee income)           4.01 %
Interest earning assets (excluding net prepayment and late payment fee income)           3.92 %
Borrowing (excluding prepayment costs)  $1,096,742  $7,324   2.68 %
Interest bearing liabilities (excluding borrowing prepayment costs)           1.39 %
Net Interest income (excluding net prepayment and late payment fee income)      $28,150      
Net Interest margin (excluding net prepayment and late payment fee income)           2.73 %
           
 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")
(Dollars In thousands)
    
    
   At June 30,  At March 31,  At June 30,
Non-Performing Loans  2015  2015  2014
 One- to four-family and cooperative/condominium apartment  $749  $1,141  $1,422
 Multifamily residential and mixed use residential real estate (1)(2)   -   537   1,431
 Mixed use commercial real estate (2)   -   -   4,400
 Commercial real estate   207   4,717   5,047
 Other   3   4   5
Total Non-Performing Loans (3)  $959  $6,399  $12,305
Other Non-Performing Assets            
 Non-performing loans held for sale   333   -   -
 Other real estate owned   148   148   18
 Pooled bank trust preferred securities (4)   1,219   906   901
Total Non-Performing Assets  $2,659  $7,453  $13,224
             
TDRs not included in non-performing loans (3)            
 One- to four-family and cooperative/condominium apartment   601   603   609
 Multifamily residential and mixed use residential real estate (1)(2)   712   721   1,126
 Mixed use commercial real estate (2)   4,385   4,400   -
 Commercial real estate   3,459   3,475   7,033
Total Performing TDRs  $9,157  $9,199  $8,768
             
(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 $207 at June 30, 2015, $5,088 at March 31, 2015 and $9,447 at June 30, 2014, are included in the non-performing loan table, but excluded from the TDR amount shown above.
             
(4) As of the dates indicated, certain pooled bank trust preferred securities were deemed to meet the criteria of a non-performing asset.
             

          
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES   
          
   At June 30,  At March 31,  At June 30,
   2015  2015  2014
Total Non-Performing Assets  $2,659  $7,453  $13,224
Loans 90 days or more past due on accrual status (5)   1,044   1,711   2,604
 TOTAL PROBLEM ASSETS  $3,703  $9,164  $15,828
             
Tier One Capital - The Dime Savings Bank of Williamsburgh  $425,334  $416,067  $389,369
Allowance for loan losses   18,553   18,237   19,633
 TANGIBLE CAPITAL PLUS RESERVES  $443,887  $434,304  $409,002
             
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES   0.8%   2.1%   3.9%
             
(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