SOURCE: Dime Community Bancshares

Dime Community Bancshares

October 27, 2016 16:30 ET

Dime Community Bancshares, Inc. Reports Solid Quarterly Earnings

Quarterly EPS of $0.29; strong deposit growth on linked quarter basis with loan-to-deposit ratio now at 132%, the lowest level in 9 years

BROOKLYN, NY--(Marketwired - October 27, 2016) - Dime Community Bancshares, Inc. (NASDAQ: DCOM) today reported net income of $10.5 million for the third quarter of 2016, or $0.29 per diluted common share, compared with $11.2 million, or $0.30 per diluted common share, in the second quarter of 2016.

Highlights for the third quarter of 2016 included:

  • Real estate loans grew 21.6% (annualized) on a linked quarter basis and 22.2% over the third quarter of 2015;
  • Deposits grew 40.1% (annualized) on a linked quarter basis and 37.3% over the third quarter of 2015;
  • Loan-to-deposit ratio declined to 132.0% in the third quarter of 2016 from 137.8% in the second quarter of 2016;
  • The bank's excellent credit quality on its $5.4 billion commercial real estate ("CRE") portfolio continues, with nonperforming loans to total loans of seven (7) basis points;
  • Quarterly loan loss provisioning of $1.2 million based solely on growth of our New York City-based CRE loan portfolio; and
  • Consistent operational excellence, with the efficiency ratio of 48.8%, compared to 47.8% in the second quarter of 2016 and 47.6% in the third quarter of 2015.

Vincent F. Palagiano, Chairman and Chief Executive Officer of the Company, commented, "The high rate of growth this quarter is gratifying, especially funded by the strong growth in deposits. We were able to grow loans significantly as we continue to execute on our strategy and remain on track to meet our balance sheet growth objective for 2016. This quarter, given the strong deposit growth, we were able to lower our loan-to-deposit ratio to 132%, the lowest level in nine years."

According to President and Chief Operating Officer Kenneth J. Mahon, "I'm pleased that we were able to maintain our focus on our two competitive advantages of low operating costs and low credit costs during a quarter of exceptionally strong growth. We maintained strong underwriting standards while growing loan balances, continued to build deeper relationships with our customers, and prudently managed our expense base. We remain focused on expense discipline, which is evidenced by our ability to lower the ratio of non-interest expense to average assets, a key measure of operating efficiency."

Management's Discussion of Quarterly Operating Results

Net Interest Income

Net interest income in the third quarter of 2016 was $35.3 million, a decrease of $263,000 (0.7%) from the second quarter of 2016 and an increase of $3.5 million (11.1%) over the third quarter of 2015. Net Interest Margin ("NIM") was 2.59% during the third quarter of 2016, compared to 2.68% in the second quarter of 2016 and 2.84% in the third quarter of 2015. NIM was negatively impacted in the third quarter of 2016 primarily by lower yields on loan originations compared to portfolio loans that amortized or refinanced. NIM was also negatively impacted due to lower income recognized from loan prepayment activity. For the third quarter of 2016, income from prepayment activity totaled $1.7 million, benefiting NIM by 12 basis points, compared to $2.0 million, or 15 basis points, during the second quarter of 2016 and $2.1 million, or 19 basis points, during the third quarter of 2015.

Average earning assets were $5.45 billion for the third quarter of 2016, a 10.9% (annualized) increase from $5.31 billion for the second quarter of 2016 and a 21.8% increase from $4.48 billion for the third quarter of 2015.

For the third quarter of 2016, the average yield on interest earning assets (excluding prepayment income) was 3.47%, three basis points lower than the 3.50% for second quarter 2016 and 17 basis points lower than the 3.64% for third quarter 2015, while the average cost of funds was 1.15%, one basis point higher than the 1.14% for both second quarter 2016 and third quarter 2015. For the year ending December 31, 2017, $414.7 million of real estate loans with an average coupon of 3.60% are expected to reprice or mature.

Real Estate Loans

Real estate loan portfolio growth was $281.7 million (21.6% annualized) during the third quarter of 2016. Real estate loan originations were $445.5 million during the quarter, at a weighted average interest rate of 3.25%. Of this amount, $62.4 million represented loan refinances from the existing portfolio. Loan amortization and satisfactions totaled $169.1 million, or 12.7% (annualized) of the quarterly average portfolio balance, at an average rate of 3.94%. The annualized loan amortization and satisfaction rate of 12.7% for third quarter 2016 was lower than both second quarter 2016 (16.1%) and third quarter 2015 (17.8%). The average yield on the loan portfolio (excluding income recognized from prepayment activity) was 3.48% during the third quarter of 2016, compared to 3.53% during the second quarter of 2016, and 3.66% during the third quarter of 2015. Average real estate loans were $5.33 billion in the third quarter of 2016, an increase of $190.7 million (14.8% annualized) from the second quarter of 2016 and an increase of $959.9 million (22.0%) from the third quarter of 2015.

Deposits and Borrowed Funds

Deposit growth was $379.0 million (40.1% annualized) during the third quarter of 2016. Given the strong growth in deposits, the loan-to-deposit ratio fell to 132.0% at September 30, 2016, from 137.8% at June 30, 2016 and 148.3% at September 30, 2015. Core deposits increased to $3.09 billion during the third quarter of 2016, from $2.75 billion during the second quarter of 2016 and $2.14 billion during the third quarter of 2015. The average cost of deposits increased one basis point on a linked quarter basis to 0.86%.

Total borrowings decreased $135.0 million during the third quarter of 2016 as compared to the second quarter of 2016. The reduction in borrowings was due to deposit growth outpacing loan growth, and reflected management's desire to decrease reliance on borrowed funds and to grow both its number of customers and deposits.

Non-Interest Income

Non-interest income was $2.1 million during the third quarter of 2016, which was $234,000 (10.2%) lower than the second quarter of 2016, given the additional income recognized from mortality proceeds from Bank Owned Life Insurance assets in the second quarter of 2016, which offset strong mortgage servicing fee income during the third quarter of 2016. Non-interest income was $172,000 (9.1%) higher than the third quarter of 2015, which reflects the $138,000 of market valuation adjustments on trading securities held in trust for retirement benefits.

Non-Interest Expense

Non-interest expense was $18.2 million during the third quarter of 2016, which was $140,000 (0.8%) higher than the second quarter of 2016, mostly related to higher occupancy expense. Non-interest expense was $2.1 million (13.1%) higher than the third quarter of 2015, related to higher occupancy, data processing, and marketing expense.

The ratio of non-interest expense to average assets, a key measure of operating efficiency, was 1.29% during the third quarter of 2016, compared to 1.31% during the second quarter of 2016 and 1.37% during the third quarter of 2015, reflecting period-over-period average asset growth of 10.4% (annualized) and 20.5%, respectively, which outpaced non-interest expense growth. The efficiency ratio was 48.8% during the third quarter of 2016, compared to 47.8% during the second quarter of 2016 and 47.6% during the third quarter of 2015.

Income Tax Expense

The effective income tax rate approximated 41.5% during the third quarter of 2016, relatively in-line with the 42.2% recorded in the second quarter of 2016.

Credit Quality

Non-performing loans were $3.9 million, or 0.07% of total loans, at September 30, 2016, down from $4.3 million at June 30, 2016, or 0.08% of total loans. The allowance for loan losses was 0.37% of total loans at September 30, 2016, consistent with the 0.36% at June 30, 2016. At September 30, 2016, non-performing assets represented 1.4% 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). A loan loss provision of $1.2 million was recorded during the third quarter of 2016, compared to a loan loss provision of $442,000 during the second quarter of 2016, primarily due to growth in the loan portfolio.

"Dime's superlative credit performance continues to reflect the low risk nature of the multifamily collateral securing its loans as well as the conservative nature of Dime's underwriting and origination practices," stated Kenneth J. Mahon. "Vacancies remain low, and even though many new market rate units are in the pipeline, employment is robust throughout the five boroughs with population increases for New York City expected over the coming decade. These underlying economic and demographic conditions, we believe, will provide continued demand for affordable multifamily housing finance and related deposit and other banking services."

Capital Management

The Company's consolidated Tier 1 capital to average assets ("leverage ratio") was 10.29% at September 30, 2016, in excess of Basel III requirements.

The bank's regulatory capital ratios continued to be in excess of Basel III requirements as well, inclusive of conservation buffer amounts. At September 30, 2016, the bank's leverage ratio was 9.04%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 11.22% and 11.67%, respectively.

Reported diluted earnings per share exceeded the quarterly cash dividend per share by 107.1% during the third quarter of 2016, equating to a 48.3% payout ratio. Tangible book value per share was $13.52 at September 30, 2016, a 15.0% increase from $11.76 at September 30, 2015.

Outlook for the Quarter Ending December 31, 2016

At September 30, 2016, the bank had outstanding loan commitments totaling $201.5 million, at an average interest rate approximating 3.22%, all of which are likely to close during the quarter ending December 31, 2016. Loan prepayments and amortization are expected to fall within the projected annualized range of 15% - 20% during the December 2016 quarter.

The Company has a balance sheet growth objective of 15% - 18% for the year ending December 31, 2016, with a preference toward utilizing retail deposits for most of its funding needs. It now appears that asset growth will approach 20% for the year, with a lower loan-to-deposit ratio than a year ago.

Deposit and borrowing funding costs are expected to remain near current historically low levels through the December 2016 quarter. At September 30, 2016, the bank had $93.1 million of Certificate of Deposits at an average rate of 0.82%, and $161.0 million of borrowings, at an average rate of 0.67%, scheduled to mature during the December 2016 quarter. No significant increase or reduction in funding costs is anticipated from the rollover or re-positioning of these funds.

The bank recorded a loan loss provision during the just completed quarter of $1.2 million, mainly due to loan portfolio growth. During the December 2016 quarter, loan loss provisions are expected to continue mainly as a function of loan growth.

Non‐interest expense is expected to approximate $18.5 million during the December 2016 quarter.

The Company projects that the consolidated effective tax rate will approximate 42.0% in the December 2016 quarter.

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company) had $5.82 billion in consolidated assets as of September 30, 2016, and is the parent company of Dime Community Bank (the "bank" or "Dime"). 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 the bank can be found on Dime's 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  
(Dollars in thousands except share amounts)  
              
   September 30,   June 30,   December 31,  
   2016   2016   2015  
ASSETS:             
Cash and due from banks  $80,870   $89,927   $64,154  
Investment securities held to maturity  5,356   5,319   5,242  
Investment securities available for sale  3,933   3,837   3,756  
Mortgage-backed securities available for sale  3,647   406   431  
Trading securities  6,890   6,814   10,201  
Real Estate Loans:             
 One-to-four family and cooperative/condomnium apartment  75,297   75,452   72,095  
 Multifamily and loans underlying cooperatives (1)  4,450,025   4,211,421   3,752,328  
 Commercial real estate  955,048   911,919   863,184  
 Unearned discounts and net deferred loan fees  8,121   7,989   7,579  
 Total real estate loans  5,488,491   5,206,781   4,695,186  
 Other loans  1,675   2,336   1,590  
 Allowance for loan losses  (20,049 ) (18,909 ) (18,514 )
Total loans, net  5,470,117   5,190,208   4,678,262  
Premises and fixed assets, net  15,666   13,800   15,150  
Premises held for sale  1,379   1,379   8,799  
Federal Home Loan Bank of New York capital stock  46,739   52,814   58,713  
Other Real Estate Owned  18   18   148  
Goodwill  55,638   55,638   55,638  
Other assets  131,533   136,037   132,378  
TOTAL ASSETS  $5,821,786   $5,556,197   $5,032,872  
LIABILITIES AND STOCKHOLDERS' EQUITY:             
Deposits:             
Non-interest bearing checking  $270,698   $261,634   $259,182  
Interest Bearing Checking  94,313   90,172   78,994  
Savings  365,966   369,168   368,671  
Money Market  2,360,346   2,024,770   1,618,617  
 Sub-total  3,091,323   2,745,744   2,325,464  
Certificates of deposit  1,067,941   1,034,522   858,846  
Total Due to Depositors  4,159,264   3,780,266   3,184,310  
Escrow and other deposits  117,309   92,290   77,130  
Federal Home Loan Bank of New York advances  882,125   1,017,125   1,166,725  
Trust Preferred Notes Payable  70,680   70,680   70,680  
Other liabilities  37,117   46,225   40,080  
TOTAL LIABILITIES  5,266,495   5,006,586   4,538,925  
STOCKHOLDERS' EQUITY:             
Common stock ($0.01 par, 125,000,000 shares authorized, 53,520,581 shares, 53,520,581 shares and 53,326,753 shares issued at September 30, 2016, June 30, 2016 and December 31, 2015, respectively, and 37,543,852 shares, 37,654,771 shares and 37,371,992 shares outstanding at September 30, 2016, June 30, 2016 and December 31, 2015, respectively)  535   535   533  
Additional paid-in capital  265,227   266,984   262,798  
Retained earnings  507,956   502,569   451,606  
Accumulated other comprehensive loss, net of deferred taxes  (8,110 ) (8,803 ) (8,801 )
Unallocated common stock of Employee Stock Ownership Plan  (2,140 ) (2,198 ) (2,313 )
Unearned Restricted Stock Award common stock  (2,303 ) (2,754 ) (2,271 )
Common stock held by the Benefit Maintenance Plan  (6,859 ) (9,576 ) (9,354 )
Treasury stock (15,976,729 shares, 15,865,810 shares and 15,954,761 shares at September 30, 2016, June 30, 2016 and December 31, 2015, respectively)  (199,015 ) (197,146 ) (198,251 )
TOTAL STOCKHOLDERS' EQUITY  555,291   549,611   493,947  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $5,821,786   $5,556,197   $5,032,872  
(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   For the Nine Months Ended  
   September 30,  June 30,   September 30,   September 30,  September 30,  
   2016  2016   2015   2016  2015  
Interest income:                   
 Loans secured by real estate  $48,090  $47,358   $42,109   $141,099  $127,370  
 Other loans  28  24   22   76  70  
 Mortgage-backed securities  2  2   1   6  184  
 Investment securities  129  265   254   567  544  
 Federal funds sold and other short-term investments  707  721   510   2,089  1,738  
  Total interest income  48,956  48,370   42,896   143,837  129,906  
Interest expense:                   
 Deposits and escrow  8,635  7,597   5,890   23,026  16,780  
 Borrowed funds  4,974  5,163   5,192   15,223  18,148  
  Total interest expense  13,609  12,760   11,082   38,249  34,928  
   Net interest income  35,347  35,610   31,814   105,588  94,978  
Provision (Credit) for loan losses  1,168  442   416   1,589  (891 )
Net interest income after provision (credit) for loan losses  34,179  35,168   31,398   103,999  95,869  
                    
Non-interest income:                   
 Service charges and other fees  1,123  758   1,013   2,566  2,562  
 Mortgage banking income, net  16  27   41   71  154  
 Gain (loss) on sale of real estate  -  (4 ) -   68,183  -  
 Gain (loss) on sale of securities and other assets  -  -   -   40  1,384  
 Gain (loss) on trading securities  69  33   (138 ) 108  (97 )
 Other  863  1,491   983   3,149  2,874  
  Total non-interest income  2,071  2,305   1,899   74,117  6,877  
Non-interest expense:                   
 Compensation and benefits  9,431  9,532   9,255   28,671  25,637  
 Occupancy and equipment  3,250  3,115   2,531   8,992  7,965  
 Federal deposit insurance premiums  613  581   575   1,933  1,703  
 Other  4,938  4,864   3,763   14,597  11,049  
  Total non-interest expense  18,232  18,092   16,124   54,193  46,354  
                    
  Income before taxes  18,018  19,381   17,173   123,923  56,392  
Income tax expense  7,481  8,173   7,092   52,141  23,004  
                    
Net Income  $10,537  $11,208   $10,081   $71,782  $33,388  
                    
Earnings per Share ("EPS"):                   
 Basic  $0.29  $0.30   $0.28   $1.95  $0.92  
 Diluted  $0.29  $0.30   $0.28   $1.95  $0.92  
                    
Average common shares outstanding for Diluted EPS  36,788,307  36,818,581   36,421,454   36,756,618  36,250,370  
              
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS  
(Dollars in thousands except per share amounts)  
                      
   For the Three Months Ended   For the Nine Months Ended  
   September 30,   June 30,   September 30,   September 30,   September 30,  
   2016   2016   2015   2016   2015  
Performance Ratios (Based upon Reported Net Income):                     
Reported EPS (Diluted)  $0.29   $0.30   $0.28   $1.95   $0.92  
Return on Average Assets   0.75 %  0.81 %  0.86 %  1.76 %  0.97 %
Return on Average Stockholders' Equity   7.63 %  8.23 %  8.38 %  17.89 %  9.44 %
Return on Average Tangible Stockholders' Equity   8.34 %  9.00 %  9.28 %  19.62 %  10.47 %
Net Interest Spread   2.44 %  2.50 %  2.69 %  2.52 %  2.72 %
Net Interest Margin   2.59 %  2.68 %  2.84 %  2.69 %  2.90 %
Non-interest Expense to Average Assets   1.29 %  1.31 %  1.37 %  1.33 %  1.35 %
Efficiency Ratio   48.82 %  47.75 %  47.63 %  48.66 %  46.09 %
Effective Tax Rate   41.52 %  42.17 %  41.30 %  42.08 %  40.79 %
                           
Book Value and Tangible Book Value Per Share:                          
Stated Book Value Per Share  $14.79   $14.60   $13.01   $14.79   $13.01  
Tangible Book Value Per Share   13.52    13.35    11.76    13.52    11.76  
                           
Average Balance Data:                          
Average Assets  $5,653,103   $5,509,549   $4,691,008   $5,444,673   $4,588,901  
Average Interest Earning Assets   5,453,070    5,308,434    4,478,684    5,239,049    4,372,022  
Average Stockholders' Equity   552,370    545,032    481,069    534,851    471,789  
Average Tangible Stockholders' Equity   505,170    497,945    434,735    487,788    425,266  
Average Loans   5,330,442    5,139,564    4,370,325    5,096,174    4,253,539  
Average Deposits   3,973,753    3,612,933    2,988,325    3,638,706    2,883,537  
                           
Asset Quality Summary:                          
Net charge-offs (recoveries)  $29   $45   $10   $54    ($ 1,357 )
Non-performing Loans (excluding loans held for sale)   3,875    4,329    1,590    3,875    1,590  
Non-performing Loans/ Total Loans   0.07 %  0.08 %  0.04 %  0.07 %  0.04 %
Nonperforming Assets (1)  $5,155   $5,600   $2,965   $5,155   $2,965  
Nonperforming Assets/Total Assets   0.09 %  0.10 %  0.06 %  0.09 %  0.06 %
Allowance for Loan Loss/Total Loans   0.37 %  0.36 %  0.42 %  0.37 %  0.42 %
Allowance for Loan Loss/Non-performing Loans   517.39 %  436.80 %  1192.39 %  517.39 %  1192.39 %
Loans Delinquent 30 to 89 Days at period end  $20   $535   $2,554   $20   $2,554  
                           
Consolidated Capital Ratios                          
Tangible Stockholders' Equity to Tangible Assets at period end   8.80 %  9.14 %  9.15 %  8.80 %  9.15 %
Tier 1 Capital to Average Assets   10.29 %  10.47 %  10.91 %  10.29 %  10.91 %
                           
Regulatory Capital Ratios (Bank Only):                          
Common Equity Tier 1 Capital to Risk-Weighted Assets   11.22 %  11.82 %  12.04 %  11.22 %  12.04 %
Tier 1 Capital to Risk-Weighted Assets ("Tier 1 Capital Ratio")   11.22 %  11.82 %  12.04 %  11.22 %  12.04 %
Total Capital to Risk-Weighted Assets ("Total Capital Ratio")   11.67 %  12.27 %  12.57 %  11.67 %  12.57 %
Tier 1 Capital to Average Assets   9.04 %  9.13 %  9.36 %  9.04 %  9.36 %
                           
Reconciliation of Reported and Adjusted ("non-GAAP") Net Income:                          
Net Income  $10,537   $11,208   $10,081   $71,782   $33,388  
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 (2)   -    -    -    (37,483 )  -  
Less: After tax credit on curtailment of postretirement health benefits   -    -    -    -    (1,868 )
Adjusted ("non-GAAP") net income  $10,537   $11,208   $10,081   $34,299   $31,506  
                           
Performance Ratios (Based upon "non-GAAP Net Income" as calculated above):                    
Reported EPS (Diluted)  $0.29   $0.30   $0.28   $0.93   $0.87  
Return on Average Assets   0.75 %  0.81 %  0.86 %  0.84 %  0.92 %
Return on Average Stockholders' Equity   7.63 %  8.23 %  8.38 %  8.55 %  8.90 %
Return on Average Tangible Stockholders' Equity   8.34 %  9.00 %  9.28 %  9.38 %  9.88 %
Net Interest Spread   2.44 %  2.50 %  2.69 %  2.52 %  2.77 %
Net Interest Margin   2.59 %  2.68 %  2.84 %  2.69 %  2.94 %
Non-interest Expense to Average Assets   1.29 %  1.31 %  1.37 %  1.33 %  1.45 %
Efficiency Ratio   48.82 %  47.75 %  47.63 %  48.66 %  48.81 %
(1) Amount comprised of total non-accrual loans, other real estate owned, and the recorded balance of pooled bank trust preferred security investments that were deemed to meet the criteria of a non-performing asset.
(2) The gain on the sale of real estate was taxed at the company's statutory tax rate of 45%.
  
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars in thousands)
 
   For the Three Months Ended
   September 30, 2016  June 30, 2016  September 30, 2015
         Average        Average        Average
   Average     Yield/  Average     Yield/  Average     Yield/
   Balance  Interest  Cost  Balance  Interest  Cost  Balance  Interest  Cost
Assets:                           
 Interest-earning assets:                           
  Real estate loans  $5,328,712  $48,090  3.61%  $5,138,053  $47,358  3.69%  $4,368,777  $42,109  3.86%
  Other loans  1,730  28  6.47  1,511  24  6.35  1,548  22  5.68
  Mortgage-backed securities  456  2  1.75  400  2  2.00  439  1  0.91
  Investment securities  16,718  129  3.09  20,203  265  5.25  18,602  254  5.46
  Other short-term investments  105,454  707  2.68  148,267  721  1.95  89,318  510  2.28
   Total interest earning assets  5,453,070  $48,956  3.59%  5,308,434  $48,370  3.64%  4,478,684  $42,896  3.83%
 Non-interest earning assets  200,033        201,115        212,324      
Total assets  $5,653,103        $5,509,549        $4,691,008      
                            
Liabilities and Stockholders' Equity:                           
 Interest-bearing liabilities:                           
  Interest Bearing Checking accounts  $91,979  $55  0.24%  $84,835  $61  0.29%  $75,082  $74  0.39%
  Money Market accounts  2,196,387  4,702  0.85  1,892,046  3,865  0.82  1,417,796  2,717  0.76
  Savings accounts  366,921  46  0.05  369,266  44  0.05  370,454  45  0.05
  Certificates of deposit  1,056,346  3,832  1.44  1,010,864  3,627  1.44  891,769  3,054  1.36
    Total interest bearing deposits  3,711,633  8,635  0.93  3,357,011  7,597  0.91  2,755,101  5,890  0.85
 Borrowed Funds  983,756  4,974  2.01  1,145,058  5,163  1.81  1,091,258  5,192  1.89
   Total interest-bearing liabilities  4,695,389  $13,609  1.15%  4,502,069  $12,760  1.14%  3,846,359  $11,082  1.14%
 Non-interest bearing checking accounts  262,120        255,922        233,224      
 Other non-interest-bearing liabilities  143,224        206,526        130,356      
   Total liabilities  5,100,733        4,964,517        4,209,939      
 Stockholders' equity  552,370        545,032        481,069      
Total liabilities and stockholders' equity  $5,653,103        $5,509,549        $4,691,008      
Net interest income     $35,347        $35,610        $31,814   
Net interest spread        2.44%        2.50%        2.69%
Net interest-earning assets  $757,681        $806,365        $632,325      
Net interest margin        2.59%        2.68%        2.84%
Ratio of interest-earning assets to interest-bearing liabilities     116.14%        117.91%        116.44%   
                            
Deposits (including non-interest bearing checking accounts)  $3,973,753  $8,635  0.86%  $3,612,933  $7,597  0.85%  $2,988,325  $5,890  0.78%
                   
SUPPLEMENTAL INFORMATION                  
Loan prepayment and late payment fee income   $1,695     $1,978     $2,145  
Real estate loans (excluding net prepayment and late payment fee income)     3.48%     3.53%     3.66%
Interest earning assets (excluding net prepayment and late payment fee income)     3.47%     3.50%     3.64%
Net Interest income (excluding net prepayment and late payment fee income)   $33,652     $33,632     $29,669  
Net Interest margin (excluding net prepayment and late payment fee income)     2.47%     2.53%     2.65%
 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")
(Dollars in thousands)
    
    
   At September 30,  At June 30,  At September 30,
Non-Performing Loans  2016  2016  2015
 One- to four-family and cooperative/condominium apartment  $ 485  $ 487  $ 834
 Multifamily residential and mixed use residential real estate (1)(2)  3,219  3,784  547
 Mixed use commercial real estate (2)  169  54  -
 Commercial real estate  -  -  207
 Other  2  4  2
Total Non-Performing Loans (3)  $ 3,875  $ 4,329  $ 1,590
Other Non-Performing Assets         
 Non-performing loans held for sale  -  -  -
 Other real estate owned  18  18  148
 Pooled bank trust preferred securities (4)  1,262  1,253  1,227
Total Non-Performing Assets  $ 5,155  $ 5,600  $ 2,965
          
TDRs not included in non-performing loans (3)         
 One- to four-family and cooperative/condominium apartment  410  414  599
 Multifamily residential and mixed use residential real estate (1)(2)  667  676  704
 Mixed use commercial real estate (2)  4,282  4,303  4,365
 Commercial real estate  3,380  3,396  3,444
Total Performing TDRs  $ 8,739  $ 8,789  $ 9,112
(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 totaled $207 at September 30, 2015, and are included in the non-performing loan table, but excluded from the TDR amount shown above. There were no non-accruing TDRs at September 30, 2016 or June 30, 2016.
(4) As of the dates presented, 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 September 30,  At June 30,  At September 30,
   2016  2016  2015
Total Non-Performing Assets  $ 5,155  $ 5,600  $ 2,965
Loans 90 days or more past due on accrual status (5)  2,165  4,534  2,503
 TOTAL PROBLEM ASSETS  $ 7,320  $ 10,134  $ 5,468
          
Tier One Capital - Dime Community Bank  $ 505,166  $ 496,757  $ 432,919
Allowance for loan losses  20,049  18,909  18,959
 TANGIBLE CAPITAL PLUS RESERVES  $ 525,215  $ 515,666  $ 451,878
          
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES  1.4%  2.0%  1.2%
(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:
    Anthony J. Rose

    Executive Vice President and Chief Administrative Officer
    718-782-6200 extension 5260