SOURCE: Dime Community Bancshares

Dime Community Bancshares

January 27, 2016 16:10 ET

Dime Community Bancshares, Inc. Reports Earnings

EPS of $1.23 for the Year and $0.31 for the Quarter; Annualized Deposit Growth of 20% in Most Recent Quarter

BROOKLYN, NY--(Marketwired - January 27, 2016) - 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, 2015. Consolidated net income was $44.8 million, or $1.23 per diluted share, for the year ended December 31, 2015, compared to $44.2 million, or $1.23 per diluted share, for the year ended December 31, 2014. Consolidated net income for the quarter ended December 31, 2015 was $11.4 million, or $0.31 per diluted share, compared to $10.1 million, or $0.28 per diluted share, for the quarter ended September 30, 2015, and $12.0 million, or $0.33 per diluted share, for the quarter ended December 31, 2014.

Vincent F. Palagiano, Chairman and Chief Executive Officer of Dime, commented, "We finished 2015 with solid quarterly earnings that benefitted from both a slight uptick in prepayment fee income and a $439,000 credit (net recovery) to the loan loss reserves. We also achieved our annual growth target, ending 2015 with total assets exceeding $5.0 billion, and experiencing a 38% annual growth in non-interest bearing deposits, due in large part to the efforts of our business banking division."

Mr. Palagiano concluded, "I want to once again thank our management and staff for their hard work and commitment towards achieving our goals during 2015. We look forward to building upon this positive momentum in 2016."

Management's Discussion of 2015 versus 2014 Results

Net interest income increased $4.0 million, or 3.2%, for the year ended December 31, 2015 compared to the year ended December 31, 2014, reflecting both $1.8 million of growth in interest income and a $2.2 million decline in interest expense. The growth in interest income was attributable to $339.5 million of additional interest earning assets during 2015 compared to 2014, which more than offset a reduction of 28 basis points in their average yield year-over-year. The reduction in interest expense was attributable to a shift in the funding mix toward both lower costing deposits and shorter duration borrowings. This shift reduced the average funding cost by 16 basis points year over year (19 basis points excluding the impact of a $1.4 million borrowing prepayment cost incurred in 2015).

Reported Net Interest Margin ("NIM") fell to 2.89% for 2015, from 3.03% for 2014. Loan prepayment fee income, net of accelerated amortization of the premium paid on purchased loans, added $11.3 million to net interest income in 2015 and $12.5 million in 2014. After adjusting for the net impact of prepayment income, the "core" NIM declined year-over-year, from 2.73% for 2014 to 2.67% for 2015.

Further comparing 2015 to 2014, credit loss provisions increased by $542,000, due primarily to loan portfolio growth, non-interest income declined $422,000 due primarily to a valuation decline in equity securities designated as trading, and operating expenses increased by $1.4 million due to higher marketing, data processing and consulting expenses. The ratio of non-interest expense to average assets declined year-over-year from 1.42% in 2014 to 1.34% in 2015 and the efficiency ratio improved as well in 2015.

The net result of all of the above was a $526,000 increase in Net Income on a year-over-year basis, with diluted earnings per share remaining at the $1.23 level from 2014. Average common diluted shares outstanding were 36.3 million in 2015 versus 35.9 million in 2014, an increase of 1.0%, having a dilutive effect of $0.015 cents per share.

Total consolidated assets grew by 11.9% in 2015, fueled by growth in total real estate loans of 14.0%. Loan originations were $1.3 billion for 2015, up from $948.2 million in 2014, and were supplemented by the purchase of approximately $100.0 million in loan participations on well-secured multifamily/mixed use loans. The loan amortization rate was 20% in 2015, up slightly from 19% in 2014. The increased loan originations and $100.0 million loan participation purchase enabled the Company to meet its 12% loan growth target for the year. Tangible (leverage) common equity grew by $34.5 million in 2015, or 8.4%, to $447.1 million, primarily through earnings. Despite an 11.9% growth in assets during the most recent year, the Tier 1 core leverage ratio (tangible common equity) remained high, ending the most recent year at 9.0%.

Management's Discussion of Quarterly Operating Results

  • Net Interest Margin

Net Interest Margin ("NIM") was 2.88% during the quarter ended December 31, 2015, compared to 2.84% during the September 2015 quarter, and 3.02% during the December 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. For the fourth quarter 2015, income from prepayment activity totaled $2.7 million, benefiting NIM by 23 basis points, compared to $2.1 million, or 19 basis points of impact upon NIM, during the quarter ended September 30, 2015. During the most recent quarter, the average yield on interest earning assets declined by 2 basis points (excluding prepayment income), while the average cost of funds declined by 1 basis point. The "core" NIM, which excludes the impact of prepayment income, was 2.65% during the December 2015 quarter, unchanged from the September 2015 quarter, and down slightly from 2.67% during the December 2014 quarter.

The average yield on real estate loans, exclusive of the impact of prepayment income, declined 3 basis points during the most recent quarter, as the average interest rate on amortized/satisfied loans continued to exceed the interest rate on newly originated loans. This was the primary contributor to the 2 basis point decline in the yield on interest earnings assets (excluding prepayment income) during the most recent quarter.

The 1 basis point decline in the average cost of funds during the most recent quarter resulted primarily from a 5 basis point reduction in the average cost of borrowings.

  • Net Interest Income

Net interest income was $33.6 million in the quarter ended December 31, 2015, $1.8 million above the $31.8 million reported in the September 2015 quarter, and $1.9 million above the $31.7 million reported in the December 2014 quarter. The additions from both the September 2015 and December 2014 quarters resulted from higher quarterly average interest earning assets, which, for the quarter ended December 31, 2015, exceeded both their September 2015 and December 2014 quarterly levels by $179.2 million and $457.9 million, respectively. An additional $530,000 of prepayment income recognized in the December 2015 quarter also contributed to the growth in net interest income from the September 2015 quarter. The positive impact from the growth in average interest earning assets far exceeded the adverse impact of the 2 basis point reduction in net interest margin (excluding prepayment income) from the December 2014 quarter.

  • Provision/Allowance For Loan Losses

A loan loss credit (net recovery) of $439,000 was recorded during the most recent quarter, due primarily to a reduction in the impact of the rolling 4-year charge-off experience.

The bank's allowance, and periodic provision, for loan losses is significantly impacted by both loan portfolio growth (as reserves are established for new loans), and an evaluation of the bank's rolling 4-year charge-off experience.

Throughout 2014 and 2015, as the loan portfolio was growing, the loan loss provision calculated to account for portfolio growth was more than offset by the diminishment of the bank's "experience factor," the rolling 4-year charge off experience, resulting in loan reserve recoveries. In fact, in the years since 2011, the bank's charge off rate has not been material. As a result, it is expected that there will be no benefit from reserve recoveries beginning in 2016.

  • Non-Interest Income

Non-interest income was $1.7 million for the quarter ended December 31, 2015, a reduction of $160,000 from the September 2015 quarter. The reduction resulted primarily from higher seasonal administrative fees collected on portfolio loans in the September 2015 quarter. Non-interest income was $857,000 below the December 2014 quarter, due to a non-recurring gain of approximately $1.0 million recognized on the sale of securities during the December 2014 quarter. 

  • Non-Interest Expense

Non-interest expense was $16.1 million in the quarter ended December 31, 2015, unchanged from the September 2015 quarter, and slightly below the $16.2 million projected level.

Non-interest expense was 1.32% of average assets during the most recent quarter, compared to 1.37% during the September 2015 quarter. The efficiency ratio approximated 46% during the December 2015 quarter. 

  • Income Tax Expense

The effective income tax rate approximated 42% during the most recent quarter, above the forecasted 40% level, due primarily to year-end adjustments.

Management's Discussion of the December 31, 2015 Balance Sheet

Total assets were $5.03 billion at December 30, 2015, up $200.4 million, or 16.6% annualized, from September 30, 2015.

  • Real Estate Loans

Real estate loan portfolio growth was $205.0 million on a net basis for the quarter. Real estate loan originations were $281.4 million, at a weighted average interest rate of 3.39%. Of this amount, $73.3 million represented loan refinances from the existing portfolio. Loan amortization and satisfactions totaled $176.9 million, or 15.4% (annualized) of the quarterly average portfolio balance, at an average rate of 4.10%. During the December 2015 quarter, the Company also purchased $100.0 million of participations in well-secured New York City multifamily/mixed use real estate loans with an average yield approximating 3.0%. The average yield on the loan portfolio (excluding income recognized from prepayment activity) was 3.63% during the quarter ended December 31, 2015, compared to 3.66% during the September 2015 quarter and 3.85% during the December 2014 quarter.

  • Credit Summary

Non-performing loans were $1.6 million, or 0.03% of total loans, at December 31, 2015, relatively unchanged from September 30, 2015. Accruing loans delinquent between 30 and 89 days were $3.0 million, or 0.06% of total loans, at December 31, 2015, up slightly from September 30, 2015. The allowance for loan losses was 0.39% of total loans at December 31, 2015, down from 0.42% at September 30, 2015. At December 31, 2015, non-performing assets represented 1.6% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table at the end of this news release). This number compares very favorably to both national and regional industry averages.

  • Deposits and Borrowed Funds

Increasing deposit funding, especially core deposit funding, is viewed as a significant component of the Company's long term strategic growth plan. Although total deposits grew at a meaningful rate of 20% annualized during the quarter, due to the significant growth in loans during the period, the loan-to-deposit ratio remained relatively unchanged at 148% as of December 31, 2015.

Deposits increased by $154.8 million, or 20% annualized, during the quarter ended December 31, 2015. Despite the recent policy actions of the Federal Open Market Committee to increase the target federal funds rate, the average cost of deposits increased only 1 basis point on a linked quarter basis. Recent deposit gathering initiatives focused upon money markets and non-interest bearing checking accounts led to growth of $151.3 million and $29.7 million in their respective balances during the period. Offsetting this growth was a reduction of $28.9 million in certificates of deposits ("CDs"). Checking and non-interest bearing account growth, a primary initiative for the bank, was up 43% annualized, and, as a component of total deposits, reached 10.6%.

Total borrowings increased $97.0 million during the December 2015 quarter. Throughout most of 2015, deposit growth has been emphasized in order to fund asset growth. However, since loan growth outpaced deposit growth in the most recent quarter, additional borrowings were utilized during the period.

While the great majority of borrowing activity during the most recent quarter involved shorter-term Federal Home Loan Bank of New York advances, $37.5 million of longer-term fixed rate borrowings were undertaken with a weighted average term to maturity of 4.2 years and a weighted average cost of 1.60%. Similar duration borrowings are likely to be employed periodically to help mitigate interest rate risk.

  • Capital

The bank and Company commenced compliance with the Basel III capital rules effective January 1, 2015. The consolidated leverage ratio (Tier 1 capital to average assets) was 10.70% at December 31, 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 9.17% at December 31, 2015, down from 9.36% at September 30, 2015, as a result of asset growth of $200.4 million during the quarter. The bank's "Tier 1" and "Total" capital ratios were 11.55% and 12.03%, respectively, at December 31, 2015, also in excess of the Basel III requirements.

Reported diluted earnings per share exceeded the quarterly cash dividend per share by 121% during the quarter ended December 31, 2015, equating to a 45% payout ratio. Additions to capital from earnings during the most recent quarterly period raised tangible book value per share by $0.20 sequentially, to $11.96 at December 31, 2015.

Outlook for the Quarter Ending March 31, 2016

At December 31, 2015, Dime had outstanding loan commitments totaling $304.3 million, all of which are likely to close during the quarter ending March 31, 2016, at an average interest rate approximating 3.14%. Loan prepayments and amortization are projected to fall within the projected annualized range of 15% - 20% during the March 2016 quarter.

The Company has a balance sheet growth range objective of 15% - 18% for the year ending December 31, 2016, with a preference toward utilizing retail deposits for most of its funding needs. 

Despite the recent policy actions of The Federal Open Market Committee, deposit and borrowing funding costs are expected to remain near current historically low levels through the March 2016 quarter. At December 31, 2015, the bank had $73.0 million of CDs at an average rate of 0.68%, and $487.5 million of borrowings at an average rate of 0.58% scheduled to mature during the March 2016 quarter. No significant increase or reduction in funding costs is anticipated 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, the aging of historical loss experience, and the overall performance of the loan portfolio. The portion of the March 2016 quarterly loan loss provision attributable solely to loan portfolio growth is forecasted to approximate $800,000.

Non‐interest expense, which, absent non-recurring items, often runs higher in the first quarter of each year and lower in the final quarter of each year, is expected to approximate $17.5 million during the March 2016 quarter.

The Company projects that the consolidated effective tax rate will approximate 40.0% in the March 2016 quarter.

Recently Disclosed Pending Property Sale

The bank announced on October 7, 2015 that it entered into an agreement to sell real estate parcels in Williamsburg, Brooklyn that are currently utilized as its primary back office operations center. This transaction, which is expected to close during the first quarter of 2016, is currently expected to generate an after-tax profit in the range of $35 - $40 million. While the bank may execute a qualified like-kind property exchange under Section 1031 of the Internal Revenue Code, any such exchange will not impact capital, as deferred income tax expense will be recorded on any financial statement gain recognized.

Utilizing an estimated after-tax gain of $37.5 million (the mid-point of the range noted above), and the components of the tangible book value calculation as of December 31, 2015, the sale would be approximately $1.01 accretive to tangible book value during the quarter in which the closing occurs.

ABOUT DIME COMMUNITY BANCSHARES, INC.

The Company (NASDAQ: DCOM) had $5.03 billion in consolidated assets as of December 31, 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)  
                   
    December 31,     September 30,     December 31,  
    2015     2015     2014  
ASSETS:                        
Cash and due from banks   $ 64,154     $ 74,073     $ 78,187  
Investment securities held to maturity     5,242       5,349       5,367  
Investment securities available for sale     3,756       3,684       3,806  
Trading securities     10,201       8,697       8,559  
Mortgage-backed securities available for sale     431       446       26,409  
Federal funds sold and other short-term investments     -       -       250  
Real Estate Loans:                        
  One-to-four family and cooperative/condomnium apartment     72,095       69,618       73,500  
  Multifamily and loans underlying cooperatives (1)     3,752,328       3,560,134       3,292,753  
  Commercial real estate     863,184       853,633       745,463  
  Unearned discounts and net deferred loan fees     7,579       7,239       5,695  
  Total real estate loans     4,695,186       4,490,624       4,117,411  
  Other loans     1,590       1,468       1,829  
  Allowance for loan losses     (18,514 )     (18,959 )     (18,493 )
Total loans, net     4,678,262       4,473,133       4,100,747  
Premises and fixed assets, net     15,150       15,296       25,065  
Premises held for sale     8,799       8,799       -  
Federal Home Loan Bank of New York capital stock     58,713       54,348       58,407  
Other Real Estate Owned     148       148       18  
Goodwill     55,638       55,638       55,638  
Other assets     132,378       132,881       134,654  
TOTAL ASSETS   $ 5,032,872     $ 4,832,492     $ 4,497,107  
LIABILITIES AND STOCKHOLDERS' EQUITY:                        
Deposits:                        
Non-interest bearing checking   $ 259,182     $ 229,436     $ 187,593  
Interest Bearing Checking     78,994       76,007       78,430  
Savings     368,671       369,044       372,753  
Money Market     1,618,617       1,467,303       1,094,698  
  Sub-total     2,325,464       2,141,790       1,733,474  
Certificates of deposit     858,846       887,707       926,318  
Total Due to Depositors     3,184,310       3,029,497       2,659,792  
Escrow and other deposits     77,130       131,132       91,921  
Federal Home Loan Bank of New York advances     1,166,725       1,069,725       1,173,725  
Trust Preferred Notes Payable     70,680       70,680       70,680  
Other liabilities     40,080       47,579       41,264  
TOTAL LIABILITIES     4,538,925       4,348,613       4,037,382  
STOCKHOLDERS' EQUITY:                        
Common stock ($0.01 par, 125,000,000 shares authorized, 53,326,753 shares, 53,145,798 shares and 52,871,443 shares issued at December 31, 2015, September 30, 2015 and December 31, 2014, respectively, and 37,371,992 shares, 37,188,874 shares and 36,855,019 shares outstanding at December 31, 2015, September 30, 2015 and December 31, 2014, respectively)    


533
     


532
     


529
 
Additional paid-in capital     262,798       259,906       254,358  
Retained earnings     451,606       445,326       427,126  
Accumulated other comprehensive loss, net of deferred taxes     (8,801 )     (9,173 )     (8,547 )
Unallocated common stock of Employee Stock Ownership Plan     (2,313 )     (2,371 )     (2,545 )
Unearned Restricted Stock Award common stock     (2,271 )     (2,709 )     (3,066 )
Common stock held by the Benefit Maintenance Plan     (9,354 )     (9,354 )     (9,164 )
Treasury stock (15,954,761 shares, 15,956,924 shares and 16,016,424 shares at December 31, 2015, September 30, 2015 and December 31, 2014, respectively)    
(198,251
)    
(198,278
)    
(198,966
)
TOTAL STOCKHOLDERS' EQUITY     493,947       483,879       459,725  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 5,032,872     $ 4,832,492     $ 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 separatelyfrom 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  
    December 31,     September 30,     December 31,  
    2015     2015     2014  
Interest income:                        
    Loans secured by real estate   $ 43,977     $ 42,109     $ 42,897  
    Other loans     23       22       25  
    Mortgage-backed securities     2       1       207  
    Investment securities     331       254       286  
    Federal funds sold and other short-term investments     552       510       556  
      Total interest income     44,885       42,896       43,971  
Interest expense:                        
    Deposits and escrow     6,225       5,890       5,002  
    Borrowed funds     5,074       5,192       7,241  
      Total interest expense     11,299       11,082       12,243  
        Net interest income     33,586       31,814       31,728  
Provision (credit) for loan losses     (439 )     416       (522 )
Net interest income after provision  (credit) for loan losses    
34,025
     
31,398
     
32,250
 
                         
Non-interest income:                        
    Service charges and other fees     761       1,013       684  
    Mortgage banking income, net     29       41       72  
    Gain on sale of securities and other assets     -       -       997  
    Gain (loss) on trading securities     (14 )     (138 )     (80 )
    Other     963       983       923  
      Total non-interest income     1,739       1,899       2,596  
Non-interest expense:                        
    Compensation and benefits     9,354       9,255       8,895  
    Occupancy and equipment     2,549       2,531       2,521  
    Federal deposit insurance premiums     602       575       575  
    Other     3,634       3,763       3,240  
      Total non-interest expense     16,139       16,124       15,231  
                         
      Income before taxes     19,625       17,173       19,615  
Income tax expense     8,241       7,092       7,628  
                         
Net Income   $ 11,384     $ 10,081     $ 11,987  
                         
Earnings per Share ("EPS"):                        
  Basic   $ 0.31     $ 0.28     $ 0.33  
  Diluted   $ 0.31     $ 0.28     $ 0.33  
                         
Average common shares outstanding for Diluted EPS     36,521,748       36,421,454       35,971,661  
                         
                         
    For the Year Ended        
    December 31,     December 31,        
    2015     2014        
Interest income:                        
    Loans secured by real estate   $ 171,347     $ 169,208          
    Other loans     93       105          
    Mortgage-backed securities     186       914          
    Investment securities     875       560          
    Federal funds sold andother short-term investments     2,290       2,165          
      Total interest income     174,791       172,952          
Interest expense:                        
    Deposits and escrow     23,005       19,591          
    Borrowed funds     23,222       28,825          
      Total interest expense     46,227       48,416          
        Net interest income     128,564       124,536          
Provision (credit) for loan losses     (1,330 )     (1,872 )        
Net interest income after provision (credit) for loan losses    
129,894
     
126,408
         
                         
Non-interest income:                        
    Service charges and other fees     3,323       3,191          
    Mortgage banking income, net     183       1,225          
    Gain on sale of securities and other assets     1,384       997          
    Gain (loss) on trading securities     (111 )     604          
    Other     3,837       3,021          
      Total non-interest income     8,616       9,038          
Non-interest expense:                        
    Compensation and benefits     34,990       36,279          
    Occupancy and equipment     10,514       10,177          
    Federal deposit insurance premiums     2,304       2,151          
    Other     14,685       12,469          
      Total non-interest expense     62,493       61,076          
                             
      Income before taxes     76,017       74,370          
Income tax expense     31,245       30,124          
                         
Net Income   $ 44,772     $ 44,246          
                         
Earnings per Share ("EPS"):                        
  Basic   $ 1.24     $ 1.23          
  Diluted   $ 1.23     $ 1.23          
                         
Average common shares outstanding for Diluted EPS     36,322,333       35,948,516          
   
   
   
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,  
    2015     2015     2014  
Reconciliation of Reported and Adjusted ("Core") Net Income (1):                        
Net Income   $ 11,384     $ 10,081     $ 11,987  
Less: After tax gain on sale of securities     -       -       (547 )
Add: After-tax expense associated with the prepayment of borrowings     -       -       -  
Less: After tax gain on the sale of real estate     -       -       -  
Less: After tax credit on curtailment of postretirement health benefits     -       -       -  
Adjusted ("Core") net income   $ 11,384     $ 10,081     $ 11,440  
                         
Performance Ratios (Based upon Reported Net Income):                        
Reported Earnings Per Share ("EPS") (Diluted)   $ 0.31     $ 0.28     $ 0.33  
Return on Average Assets     0.93 %     0.86 %     1.09 %
Return on Average Stockholders' Equity     9.32 %     8.38 %     10.45 %
Return on Average Tangible Stockholders' Equity     10.30 %     9.28 %     11.74 %
Net Interest Spread     2.72 %     2.69 %     2.85 %
Net Interest Margin     2.88 %     2.84 %     3.02 %
Non-interest Expense to Average Assets     1.32 %     1.37 %     1.38 %
Efficiency Ratio     45.67 %     47.63 %     45.59 %
Effective Tax Rate     41.99 %     41.30 %     38.89 %
                         
Performance Ratios (Based upon "Core Net Income" as calculated above):                        
EPS (Diluted)   $ 0.31     $ 0.28     $ 0.32  
Return on Average Assets     0.93 %     0.86 %     1.04 %
Return on Average Stockholders' Equity     9.32 %     8.38 %     9.98 %
Return on Average Tangible Stockholders' Equity     10.30 %     9.28 %     11.21 %
Net Interest Spread     2.72 %     2.69 %     2.46 %
Net Interest Margin     2.88 %     2.84 %     2.64 %
Non-interest Expense to Average Assets     1.32 %     1.37 %     1.38 %
Efficiency Ratio     45.67 %     47.63 %     45.59 %
Effective Tax Rate     41.99 %     41.30 %     38.55 %
                         
Book Value and Tangible Book Value Per Share:                        
Stated Book Value Per Share   $ 13.22     $ 13.01     $ 12.47  
Tangible Book Value Per Share     11.96       11.76       11.20  
                         
Average Balance Data:                        
Average Assets   $ 4,875,199     $ 4,691,008     $ 4,403,001  
Average Interest Earning Assets     4,657,917       4,478,684       4,200,047  
Average Stockholders' Equity     488,845       481,069       458,679  
Average Tangible Stockholders' Equity     442,277       434,735       408,350  
Average Loans     4,555,291       4,370,325       4,073,732  
Average Deposits     3,109,044       2,988,325       2,634,222  
                         
Asset Quality Summary:                        
Net (recoveries) charge-offs   $ 6     $ 10     $ 83  
Non-performing Loans (excluding loans held for sale)     1,611       1,590       6,198  
Non-performing Loans/ Total Loans     0.03 %     0.04 %     0.15 %
Nonperforming Assets (2)   $ 2,995     $ 2,965     $ 7,120  
Nonperforming Assets/Total Assets     0.06 %     0.06 %     0.16 %
Allowance for Loan Loss/Total Loans     0.39 %     0.42 %     0.45 %
Allowance for Loan Loss/Non-performing Loans     1149.22 %     1192.39 %     298.37 %
Loans Delinquent 30 to 89 Days at period end   $ 2,970     $ 2,554     $ 1,429  
                         
Consolidated Capital Ratios                        
Tangible Stockholders' Equity to Tangible Assets at period end     8.98 %     9.15 %     9.29 %
Tier 1 Capital to Average Assets     10.70 %     10.91 %     11.20 %
                         
Regulatory Capital Ratios (Bank Only):                        
Common Equity Tier 1 Capital to Risk-Weighted Assets     8.88 %     9.09 %     12.33 %
Tier 1 Capital to Risk-Weighted Assets ("Tier 1 Capital Ratio")     11.55 %     12.04 %     12.33 %
Total Capital to Risk-Weighted Assets ("Total Capital Ratio")     12.03 %     12.57 %     12.89 %
Tier 1 Capital to Average Assets     9.17 %     9.36 %     9.64 %
                         
                         
    For the Year Ended        
    December 31,     December 31,        
    2015     2014        
Reconciliation of Reported and Adjusted ("Core") Net Income (1):                        
Net Income   $ 44,772     $ 44,246          
Less: After tax gain on sale of securities     (764 )     (547 )        
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   $ 42,890     $ 43,343          
                         
Performance Ratios (Based upon Reported Net Income):                        
Reported Earnings Per Share ("EPS") (Diluted)   $ 1.23     $ 1.23          
Return on Average Assets     0.96 %     1.03 %        
Return on Average Stockholders' Equity     9.40 %     9.83 %        
Return on Average Tangible Stockholders' Equity     10.42 %     11.13 %        
Net Interest Spread     2.72 %     2.84 %        
Net Interest Margin     2.89 %     3.03 %        
Non-interest Expense to Average Assets     1.34 %     1.42 %        
Efficiency Ratio     45.98 %     46.28 %        
Effective Tax Rate     41.10 %     40.51 %        
                         
Performance Ratios (Based upon "Core Net Income" as calculated above):                        
EPS (Diluted)   $ 1.18     $ 1.21          
Return on Average Assets     0.92 %     1.01 %        
Return on Average Stockholders' Equity     9.01 %     9.63 %        
Return on Average Tangible Stockholders' Equity     9.98 %     10.90 %        
Net Interest Spread     2.72 %     2.84 %        
Net Interest Margin     2.92 %     3.03 %        
Non-interest Expense to Average Assets     1.41 %     1.42 %        
Efficiency Ratio     48.00 %     46.28 %        
Effective Tax Rate     40.92 %     40.20 %        
                         
Book Value and Tangible Book Value Per Share:                        
Stated Book Value Per Share   $ 13.22     $ 12.47          
Tangible Book Value Per Share     11.96       11.20          
                         
Average Balance Data:                        
Average Assets   $ 4,660,476     $ 4,294,634          
Average Interest Earning Assets     4,443,495       4,104,007          
Average Stockholders' Equity     476,053       449,890          
Average Tangible Stockholders' Equity     429,566       397,669          
Average Loans     4,328,977       3,964,520          
Average Deposits     2,939,914       2,606,178          
                         
Asset Quality Summary:                        
Net (recoveries) charge-offs     ($ 1,351 )     ($ 212 )        
Non-performing Loans (excluding loans held for sale)     1,611       6,198          
Non-performing Loans/ Total Loans     0.03 %     0.15 %        
Nonperforming Assets (2)   $ 2,995     $ 7,120          
Nonperforming Assets/Total Assets     0.06 %     0.16 %        
Allowance for Loan Loss/Total Loans     0.39 %     0.45 %        
Allowance for Loan Loss/Non-performing Loans     1149.22 %     298.37 %        
Loans Delinquent 30 to 89 Days at period end   $ 2,970     $ 1,429          
                         
Consolidated Capital Ratios                        
Tangible Stockholders' Equity to Tangible Assets at period end     8.98 %     9.29 %        
Tier 1 Capital to Average Assets     10.70 %     11.20 %        
                         
Regulatory Capital Ratios (Bank Only):                        
Common Equity Tier 1 Capital to Risk-Weighted Assets     8.88 %     12.33 %        
Tier 1 Capital to Risk-Weighted Assets ("Tier 1 Capital Ratio")     11.55 %     12.33 %        
Total Capital to Risk-Weighted Assets ("Total Capital Ratio")     12.03 %     12.89 %        
Tier 1 Capital to Average Assets     9.17 %     9.64 %        
   
(1) Adjusted net income 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.
   
   
   
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME  
(Dollars In thousands)  
   
    For the Three Months Ended  
    December 31, 2015  
              Average  
    Average         Yield/  
    Balance   Interest     Cost  
Assets:                    
  Interest-earning assets:                    
    Real estate loans   $ 4,553,788   $ 43,977     3.86 %
    Other loans     1,503     23     6.12  
    Mortgage-backed securities     425     2     1.88  
    Investment securities     18,773     331     7.05  
    Federal funds sold and other short-term investments     83,428     552     2.65  
      Total interest earning assets     4,657,917   $ 44,885     3.85 %
  Non-interest earning assets     217,282              
Total assets   $ 4,875,199              
                     
Liabilities and Stockholders' Equity:                    
  Interest-bearing liabilities:                    
    Interest Bearing Checking accounts   $ 76,932   $ 56     0.29 %
    Money Market accounts     1,548,821     3,060     0.78  
    Savings accounts     365,563     46     0.05  
    Certificates of deposit     873,910     3,063     1.39  
      Total interest bearing deposits     2,865,226     6,225     0.86  
  Borrowed Funds     1,094,438     5,074     1.84  
    Total interest-bearing liabilities     3,959,664   $ 11,299     1.13 %
  Non-interest bearing checking accounts     243,818              
  Other non-interest-bearing liabilities     182,872              
    Total liabilities     4,386,354              
  Stockholders' equity     488,845              
Total liabilities and stockholders' equity   $ 4,875,199              
Net interest income         $ 33,586        
Net interest spread                 2.72 %
Net interest-earning assets   $ 698,253              
Net interest margin                 2.88 %
Ratio of interest-earning assets to interest-bearing liabilities           117.63 %      
                     
Deposits (including non-interest bearing checking accounts)   $ 3,109,044   $ 6,225     0.79 %
                     
SUPPLEMENTAL INFORMATION                    
Loan prepayment and late payment fee income         $ 2,675        
Real estate loans (excluding net prepayment and late payment fee income)                 3.63 %
Interest earning assets (excluding net prepayment and late payment fee income)                 3.62 %
Net Interest income (excluding net prepayment and late payment fee income)         $ 30,911        
Net Interest margin (excluding net prepayment and late payment fee income)                 2.65 %
                     
       
    For the Three Months Ended  
    September 30, 2015  
              Average  
    Average         Yield/  
    Balance   Interest     Cost  
Assets:                    
  Interest-earning assets:                    
    Real estate loans   $ 4,368,777   $ 42,109     3.86 %
    Other loans     1,548     22     5.68  
    Mortgage-backed securities     439     1     0.91  
    Investment securities     18,602     254     5.46  
    Federal funds sold and other short-term investments     89,318     510     2.28  
      Total interest earning assets     4,478,684   $ 42,896     3.83 %
  Non-interest earning assets     212,324              
Total assets   $ 4,691,008              
                     
Liabilities and Stockholders' Equity:                    
  Interest-bearing liabilities:                    
    Interest Bearing Checking accounts   $ 75,082   $ 74     0.39 %
    Money Market accounts     1,417,796     2,717     0.76  
    Savings accounts     370,454     45     0.05  
    Certificates of deposit     891,769     3,054     1.36  
        Total interest bearing deposits     2,755,101     5,890     0.85  
  Borrowed Funds     1,091,258     5,192     1.89  
      Total interest-bearing liabilities     3,846,359   $ 11,082     1.14 %
  Non-interest bearing checking accounts     233,224              
  Other non-interest-bearing liabilities     130,356              
      Total liabilities     4,209,939              
  Stockholders' equity     481,069              
Total liabilities and stockholders' equity   $ 4,691,008              
Net interest income         $ 31,814        
Net interest spread                 2.69 %
Net interest-earning assets   $ 632,325              
Net interest margin                 2.84 %
Ratio of interest-earning assets to interest-bearing liabilities           116.44 %      
                     
Deposits (including non-interest bearing checking accounts)   $ 2,988,325   $ 5,890     0.78 %
                     
SUPPLEMENTAL INFORMATION                    
Loan prepayment and late payment fee income         $ 2,145        
Real estate loans (excluding net prepayment and late payment fee income)                 3.66 %
Interest earning assets (excluding net prepayment and late payment fee income)                 3.64 %
Net Interest income (excluding net prepayment and late payment fee income)         $ 29,669        
Net Interest margin (excluding net prepayment and late payment fee income)                 2.65 %
                     
       
    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  
    Federal funds sold and 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         $ 3,695        
Real estate loans (excluding net prepayment and late payment fee income)                 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 %
 
 
 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")
(Dollars In thousands)
     
     
    At December 31,   At September 30,   At December 31,
Non-Performing Loans   2015   2015   2014
  One- to four-family and cooperative/condominium apartment   $ 1,113   $ 834   $ 1,310
  Multifamily residential and mixed use residential real estate (1)(2)     287     547     167
  Mixed use commercial real estate (2)     -     -     -
  Commercial real estate     207     207     4,717
  Other     4     2     4
Total Non-Performing Loans (3)   $ 1,611   $ 1,590   $ 6,198
Other Non-Performing Assets                  
  Non-performing loans held for sale     -     -     -
  Other real estate owned     148     148     18
  Pooled bank trust preferred securities (4)     1,236     1,227     904
Total Non-Performing Assets   $ 2,995   $ 2,965   $ 7,120
                   
TDRs not included in non-performing loans (3)                  
  One- to four-family and cooperative/condominium apartment     598     599     605
  Multifamily residential and mixed use residential real estate (1)(2)     696     704     1,105
  Mixed use commercial real estate (2)     4,344     4,365     4,400
  Commercial real estate     3,428     3,444     8,990
Total Performing TDRs   $ 9,066   $ 9,112   $ 15,100

 

     
(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 this table because there is a residential component to the income, which makes them generally viewed as less risky than pure commercial real estate loans.
     
(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 December 31, 2015, $207 at September 30, 2015 and $4,717 at December 31, 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 December 31,     At September 30,     At December 31,  
    2015     2015     2014  
Total Non-Performing Assets   $ 2,995     $ 2,965     $ 7,120  
Loans 90 days or more past due on accrual status (5)     4,532       2,503       3,332  
  TOTAL PROBLEM ASSETS   $ 7,527     $ 5,468     $ 10,452  
                         
Tier One Capital - The Dime Savings Bank of Williamsburgh   $ 440,374     $ 432,919     $ 406,910  
Allowance for loan losses     18,514       18,959       18,493  
  TANGIBLE CAPITAL PLUS RESERVES   $ 458,888     $ 451,878     $ 425,403  
                         
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES     1.6 %     1.2 %     2.5 %

 

     
(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