SOURCE: Dime Community Bancshares

Dime Community Bancshares

July 27, 2016 08:30 ET

Dime Community Bancshares, Inc. Reports Strong Quarterly Earnings

Quarterly EPS of $0.30; Solid Loan Growth and Strong Deposit Growth With Loan-to-Deposit Ratio Reduced to 138%

BROOKLYN, NY--(Marketwired - July 27, 2016) - Dime Community Bancshares, Inc. (NASDAQ: DCOM) today reported net income of $11.2 million for the second quarter of 2016, or $0.30 per diluted common share, compared with $50.0 million, or $1.36 per diluted common share, in the first quarter of 2016. Net income in the first quarter of 2016 (excluding the impact of the gain on sale of real estate taxed at the statutory rate) was $12.6 million, or $0.34 per diluted common share and $11.5 million, or $0.32 per diluted common share, in the second quarter of 2015.

Highlights for the second quarter of 2016 included:

  • Average real estate loans grew 26.7% (annualized) on a linked quarter basis and 21.9% over the second quarter of 2015;
  • Average deposits grew 34.1% (annualized) on a linked quarter basis and 24.1% over the second quarter of 2015; the strong deposit growth benefited the loan-to-deposit ratio, which declined to 137.8% in the second quarter of 2016 from 147.0% in the first quarter of 2016;
  • Strong credit quality, with nonperforming loans to total loans of eight basis points; and
  • Efficiency ratio of 47.8%, compared to 49.5% in the first quarter of 2016 and 47.1% in the second quarter of 2015.

Vincent F. Palagiano, Chairman and Chief Executive Officer of the Company, commented, "We are pleased to report another solid quarter of performance, despite the significant headwinds we face from continued low interest rates. Steady loan growth and strong deposit growth led to increased net interest income despite a decline in net interest margin. It's important to note that we delivered these results while maintaining our risk profile and managing our capital effectively."

According to President and Chief Operating Officer Kenneth J. Mahon, "We continue to execute on our strategy to create superior long-term shareholder value. Our focus on deposit growth saw the loan-to-deposit ratio fall to 137.8%, the lowest level since 2007. This quarter continued to show pristine credit quality, with exceptionally low levels of nonperforming loans, and we stayed focused on our cost base, with well-controlled expenses leading to a superior efficiency ratio."

Management's Discussion of Quarterly Operating Results

Net Interest Income

Net interest income in the second quarter of 2016 was $35.6 million, an increase of $979,000 (2.8%) over the first quarter of 2016 and an increase of $2.5 million (7.7%) over the second quarter of 2015. Net Interest Margin ("NIM") was 2.68% during the second quarter of 2016, compared to 2.80% in the first quarter of 2016 and 3.05% in the second quarter of 2015. NIM was negatively impacted in the second quarter of 2016 due to lower income recognized from loan prepayment activity. For the second quarter of 2016, income from prepayment activity totaled $2.0 million, benefiting NIM by 15 basis points, compared to $2.6 million, or 22 basis points, during the first quarter of 2016 and $4.2 million, or 39 basis points, during the second quarter of 2015. Average earning assets were $5.31 billion for the second quarter of 2016, a 28.5% (annualized) increase from $4.96 billion for the first quarter of 2016 and a 22.4% increase from $4.34 billion for the second quarter of 2015. For the second quarter of 2016, the average yield on interest earning assets (excluding prepayment income) was 3.50%, four basis points lower than the 3.54% for first quarter 2016 and 19 basis points lower than the 3.69% for second quarter 2015, while the average cost of funds was 1.14%, two basis points higher than the 1.12% for first quarter 2016 and six basis points lower than the 1.20% for second quarter 2015.

Real Estate Loans

Real estate loan portfolio growth was $151.5 million (11.9% annualized) on a net basis during the second quarter of 2016. Real estate loan originations were $357.3 million during the quarter, at a weighted average interest rate of 3.34%. Of this amount, $104.9 million represented loan refinances from the existing portfolio. Loan amortization and satisfactions totaled $206.1 million, or 16.1% (annualized) of the quarterly average portfolio balance, at an average rate of 4.08%. The average yield on the loan portfolio (excluding income recognized from prepayment activity) was 3.53% during the second quarter of 2016, compared to 3.57% during the first quarter of 2016, and 3.73% during the second quarter of 2015. Average real estate loans were $5.14 billion in the second quarter of 2016, an increase of $321.0 million (26.7% annualized) from the first quarter of 2016 and an increase of $923.4 million (21.9%) from the second quarter of 2015.

Deposits and Borrowed Funds

Deposit growth was $340.5 million (39.6% annualized) during the second quarter of 2016. Given the strong growth in deposits, the loan-to-deposit ratio fell to 137.8% at June 30, 2016, from 147.0% at March 31, 2016 and 146.8% at June 30, 2015. Core deposits increased to $2.75 billion during the second quarter of 2016, from $2.46 billion during the first quarter of 2016 and $2.04 billion during the second quarter of 2015. The average cost of deposits increased three basis points on a linked quarter basis to 0.85%.

Total borrowings decreased $260.0 million during the second quarter of 2016 as compared to the first quarter of 2016. The reduction in borrowings was due to deposit growth outpacing loan growth, and reflects 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 $2.3 million during the second quarter of 2016, which was $751,000 (48.3%) higher than the first quarter of 2016, excluding the gain on the sale of real estate, reflecting additional income recognized from mortality proceeds from Bank Owned Life Insurance assets and strong mortgage service fee income. Non-interest income was $628,000 (37.4%) higher than the second quarter of 2015, reflecting additional income recognized from mortality proceeds from Bank Owned Life Insurance assets and higher service fees.

Non-Interest Expense

Non-interest expense was $18.1 million during the second quarter of 2016, which was $223,000 (1.2%) higher than the first quarter of 2016, related to higher occupancy expense. Non-interest expense was $1.7 million (10.5%) higher than the second quarter of 2015, related to higher occupancy, marketing, and data processing expense. The increase in occupancy expense reflects the accounting expense for the new headquarters lease. The increase above the $17.5 million forecast resulted primarily from the aforementioned occupancy expense.

The ratio of non-interest expense to average assets was 1.31% during the second quarter of 2016, compared to 1.38% during the first quarter of 2016 and 1.44% during the second quarter of 2015, reflecting period-over-period average asset growth of 26.2% (annualized) and 20.9%, respectively. The efficiency ratio was 47.8% during the second quarter of 2016, compared to 49.5% during the first quarter of 2016 and 47.1% during the second quarter of 2015. The efficiency ratio improvement on a linked quarter basis was due to stronger net interest income and higher non-interest income while non-interest expense was relatively flat.

Income Tax Expense

The effective income tax rate approximated 42.2% during the second quarter of 2016, the same rate as the first quarter of 2016.

Credit Quality

Non-performing loans were $4.3 million, or 0.08% of total loans, at June 30, 2016, up from $1.4 million at March 31, 2016, which is mainly due to the addition of one loan. Loans delinquent between 30 and 89 days were $535,000, or 0.01% of total loans, at June 30, 2016, down from $2.3 million at March 31, 2016. The allowance for loan losses was 0.36% of total loans at June 30, 2016, consistent with the 0.37% at March 31, 2016. At June 30, 2016, non-performing assets represented 2.0% 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 $442,000 was recorded during the second quarter of 2016, compared to a loan loss credit of $21,000 during the first quarter of 2016, primarily due to growth in the loan portfolio.

Capital Management

The Company's consolidated Tier 1 capital to average assets ("leverage ratio") was 10.47% at June 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 June 30, 2016, the bank's leverage ratio was 9.13%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 11.82% and 12.27%, respectively.

Reported diluted earnings per share exceeded the quarterly cash dividend per share by 114.3% during the second quarter of 2016, equating to a 46.7% payout ratio. Tangible book value per share was $13.35 at June 30, 2016, a 15.0% increase from $11.61 at June 30, 2015.

Outlook for the Quarter Ending September 30, 2016

At June 30, 2016, the bank had outstanding loan commitments totaling $280.2 million, at an average interest rate approximating 3.42%, all of which are likely to close during the quarter ending September 30, 2016. Loan prepayments and amortization are expected to fall within the projected annualized range of 15% - 20% during the September 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.

Deposit and borrowing funding costs are expected to remain near current historically low levels through the September 2016 quarter. At June 30, 2016, the bank had $80.7 million of CDs at an average rate of 0.86%, and $315.0 million of borrowings, at an average rate of 0.96%, scheduled to mature during the September 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 $442,000, mainly due to loan portfolio growth. During the remainder of 2016, quarterly loan loss provisions are expected to continue to be mainly a function of loan growth.

Non‐interest expense is expected to approximate $18 million during the September 2016 quarter.

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

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company) had $5.56 billion in consolidated assets as of June 30, 2016, and is the parent company of The Dime Savings Bank of Williamsburgh (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 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  
(In thousands except share amounts)  
              
   June 30,   March 31,   December 31,  
   2016   2016   2015  
ASSETS:                
Cash and due from banks  $89,927   $192,917   $64,154  
Investment securities held to maturity   5,319    5,290    5,242  
Investment securities available for sale   3,837    3,787    3,756  
Trading securities   6,814    10,368    10,201  
Mortgage-backed securities available for sale   406    417    431  
Federal funds sold and other short-term investments   -    -    -  
Real Estate Loans:                
 One-to-four family and cooperative/condomnium apartment   81,343    74,734    72,095  
 Multifamily and loans underlying cooperatives (1)   4,206,399    4,077,657    3,752,328  
 Commercial real estate   911,050    895,196    863,184  
 Unearned discounts and net deferred loan fees   7,989    7,706    7,579  
 Total real estate loans   5,206,781    5,055,293    4,695,186  
 Other loans   2,336    1,354    1,590  
 Allowance for loan losses   (18,909 )  (18,513 )  (18,514 )
Total loans, net   5,190,208    5,038,134    4,678,262  
Premises and fixed assets, net   13,800    13,770    15,150  
Premises held for sale   1,379    1,379    8,799  
Federal Home Loan Bank of New York capital stock   52,814    63,681    58,713  
Other Real Estate Owned   18    18    148  
Goodwill   55,638    55,638    55,638  
Other assets   136,037    131,960    132,378  
TOTAL ASSETS  $5,556,197   $5,517,359   $5,032,872  
LIABILITIES AND STOCKHOLDERS' EQUITY:                
Deposits:                
Non-interest bearing checking  $261,634   $250,339   $259,182  
Interest Bearing Checking   90,172    82,850    78,994  
Savings   369,168    368,685    368,671  
Money Market   2,024,770    1,756,823    1,618,617  
 Sub-total   2,745,744    2,458,697    2,325,464  
Certificates of deposit   1,034,522    981,059    858,846  
Total Due to Depositors   3,780,266    3,439,756    3,184,310  
Escrow and other deposits   92,290    126,315    77,130  
Federal Home Loan Bank of New York advances   1,017,125    1,277,125    1,166,725  
Trust Preferred Notes Payable   70,680    70,680    70,680  
Other liabilities   46,225    63,576    40,080  
TOTAL LIABILITIES   5,006,586    4,977,452    4,538,925  
STOCKHOLDERS' EQUITY:                
Common stock ($0.01 par, 125,000,000 shares authorized, 53,520,581 shares, 53,326,753 shares and 53,326,753 shares issued at June 30, 2016, March 31, 2016 and December 31, 2015, respectively, and 37,654,771 shares, 37,399,150 shares and 37,371,992 shares outstanding at June 30, 2016, March 31, 2016 and December 31, 2015, respectively)   


535
   


533
   
 
 
 
 
 
 
533
 
 
 
 
Additional paid-in capital   266,984    263,206    262,798  
Retained earnings   502,569    496,518    451,606  
Accumulated other comprehensive loss, net of deferred taxes   (8,803 )  (8,548 )  (8,801 )
Unallocated common stock of Employee Stock Ownership Plan   (2,198 )  (2,256 )  (2,313 )
Unearned Restricted Stock Award common stock   (2,754 )  (2,279 )  (2,271 )
Common stock held by the Benefit Maintenance Plan   (9,576 )  (9,353 )  (9,354 )
Treasury stock (15,865,810 shares, 15,927,603 shares and 15,954,761 sharesat June 30, 2016, March 31, 2016 and December 31, 2015, respectively)   
(197,146
)  
(197,914
)  
 
 
(198,251
 
)
TOTAL STOCKHOLDERS' EQUITY   549,611    539,907    493,947  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $5,556,197   $5,517,359   $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 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  For the Six Months Ended  
   June 30,  March 31,  June 30,  June 30,  June 30,  
   2016  2016  2015  2016  2015  
Interest income:                      
 Loans secured by real estate  $47,358  $45,651  $43,473  $93,009  $85,261  
 Other loans   24   24   24   48   48  
 Mortgage-backed securities   2   2   2   4   183  
 Investment securities   265   173   121   438   290  
 Federal funds sold and other short-term investments   
721
  
661
  
578
  
1,382
  
1,228
 
  Total interest income   48,370   46,511   44,198   94,881   87,010  
Interest expense:                      
 Deposits and escrow   7,597   6,794   5,670   14,391   10,890  
 Borrowed funds   5,163   5,086   5,458   10,249   12,956  
  Total interest expense   12,760   11,880   11,128   24,640   23,846  
   Net interest income   35,610   34,631   33,070   70,241   63,164  
Provision (Credit) for loan losses   442   (21 ) (1,135 ) 421   (1,307 )
Net interest income after provision (credit) for loan losses   
35,168
  
34,652
  
34,205
  
69,820
  
64,471
 
                       
Non-interest income:                      
 Service charges and other fees   758   685   799   1,443   1,549  
 Mortgage banking income, net   27   28   41   55   113  
 Gain (loss) on sale of real estate   (4 ) 68,187   -   68,183   -  
 Gain (loss) on sale of securities and other assets   
-
  
40
  
(4
) 
40
  
1,384
 
 Gain (loss) on trading securities   33   6   (21 ) 39   41  
 Other   1,491   795   862   2,286   1,891  
  Total non-interest income   2,305   69,741   1,677   72,046   4,978  
Non-interest expense:                      
 Compensation and benefits   9,532   9,708   9,540   19,240   16,381  
 Occupancy and equipment   3,115   2,627   2,490   5,742   5,434  
 Federal deposit insurance premiums   581   739   576   1,320   1,127  
 Other   4,864   4,795   3,760   9,659   7,288  
  Total non-interest expense   18,092   17,869   16,366   35,961   30,230  
                         
  Income before taxes   19,381   86,524   19,516   105,905   39,219  
Income tax expense   8,173   36,487   7,987   44,660   15,912  
                       
Net Income  $11,208  $50,037  $11,529  $61,245  $23,307  
                       
Earnings per Share ("EPS"):                      
 Basic  $0.30  $1.37  $0.32  $1.67  $0.65  
 Diluted  $0.30  $1.36  $0.32  $1.67  $0.64  
                       
Average common shares outstanding for Diluted EPS  36,818,581  36,662,951  36,259,377  36,741,066  36,158,821 
                 
   
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS  
(Dollars In thousands except per share amounts)  
                      
   For the Three Months Ended   For the Six Months Ended  
   June 30,   March 31,   June 30,   June 30,   June 30,  
   2016   2016   2015   2016   2015  
Performance Ratios (Based upon Reported Net Income):                          
Reported EPS (Diluted)  $0.30   $1.36   $0.32   $1.67   $0.64  
Return on Average Assets   0.81 %  3.87 %  1.01 %  2.29 %  1.03 %
Return on Average Stockholders' Equity   8.23 %  39.47 %  9.78 %  23.28 %  9.98 %
Return on Average Tangible Stockholders' Equity   9.01 %  43.49 %  10.84 %  25.57 %  11.08 %
Net Interest Spread   2.50 %  2.63 %  2.88 %  2.57 %  2.74 %
Net Interest Margin   2.68 %  2.80 %  3.05 %  2.74 %  2.93 %
Non-interest Expense to Average Assets   1.31 %  1.38 %  1.44 %  1.35 %  1.33 %
Efficiency Ratio   47.75 %  49.45 %  47.07 %  48.58 %  45.31 %
Effective Tax Rate   42.17 %  42.17 %  40.93 %  42.17 %  40.57 %
                           
Book Value and Tangible Book Value Per Share:                          
Stated Book Value Per Share  $14.60   $14.44   $12.85   $14.60   $12.85  
Tangible Book Value Per Share   13.35    13.18    11.61    13.35    11.61  
                           
Average Balance Data:                          
Average Assets  $5,509,549   $5,171,368   $4,555,381   $5,340,459   $4,537,849  
Average Interest Earning Assets   5,308,434    4,955,643    4,335,579    5,132,039    4,318,692  
Average Stockholders' Equity   545,033    507,151    471,628    526,092    467,149  
Average Tangible Stockholders' Equity   497,850    460,249    425,522    479,049    420,769  
Average Loans   5,139,564    4,818,516    4,216,209    4,979,040    4,195,146  
Average Deposits   3,612,933    3,329,433    2,911,493    3,340,695    2,831,143  
                           
Asset Quality Summary:                          
Net charge-offs (recoveries)  $45   $(20 )  ($ 1,451 ) $25    ($ 1,367 )
Non-performing Loans (excluding loans held for sale)   4,329    1,442    959    4,329    959  
Non-performing Loans/ Total Loans   0.08 %  0.03 %  0.02 %  0.08 %  0.02 %
Nonperforming Assets (1)  $5,600   $2,705   $2,659   $5,600   $2,656  
Nonperforming Assets/Total Assets   0.10 %  0.05 %  0.06 %  0.10 %  0.06 %
Allowance for Loan Loss/Total Loans   0.36 %  0.37 %  0.43 %  0.36 %  0.43 %
Allowance for Loan Loss/Non-performing Loans   436.80 %  1283.84 %  1934.62 %  436.80 %  1934.62 %
Loans Delinquent 30 to 89 Days at period end  $535   $2,291   $349   $535   $349  
                           
Consolidated Capital Ratios                          
Tangible Stockholders' Equity to Tangible Assets at period end   9.14 %  9.02 %  9.40 %  9.14 %  9.40 %
Tier 1 Capital to Average Assets   10.47 %  10.97 %  11.12 %  9.40 %  11.12 %
                           
Regulatory Capital Ratios (Bank Only):                          
Common Equity Tier 1 Capital to Risk-Weighted Assets   11.82 %  11.50 %  9.30 %  11.82 %  9.30 %
Tier 1 Capital to Risk-Weighted Assets ("Tier 1 Capital Ratio")   11.82 %  11.50 %  12.44 %  11.82 %  12.44 %
Total Capital to Risk-Weighted Assets ("Total Capital Ratio")   12.27 %  11.93 %  12.99 %  12.27 %  12.99 %
Tier 1 Capital to Average Assets   9.13 %  9.57 %  9.47 %  9.13 %  9.47 %
                           
Reconciliation of Reported and Adjusted ("non-GAAP") Net Income:                          
Net Income  $11,208   $50,037   $11,529   $61,245   $23,307  
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 )  -    (37,483 )  -  
Less: After tax credit on curtailment of postretirement health benefits   -    -    -    -    (1,868 )
Adjusted ("non-GAAP") net income  $11,208   $12,554   $11,529   $23,762   $21,425  
                           
Performance Ratios (Based upon "non-GAAP Net Income" as calculated above):                         
Reported EPS (Diluted)  $0.30   $0.34   $0.32   $0.65   $0.59  
Return on Average Assets   0.81 %  0.97 %  1.01 %  0.89 %  0.94 %
Return on Average Stockholders' Equity   8.23 %  9.90 %  9.78 %  9.03 %  9.17 %
Return on Average Tangible Stockholders' Equity   9.01 %  10.91 %  10.84 %  9.92 %  10.18 %
Net Interest Spread   2.50 %  2.63 %  2.88 %  2.57 %  2.74 %
Net Interest Margin   2.68 %  2.80 %  3.05 %  2.74 %  2.93 %
Non-interest Expense to Average Assets   1.31 %  1.38 %  1.44 %  1.35 %  1.48 %
Efficiency Ratio   47.75 %  49.45 %  47.07 %  48.58 %  49.39 %
                     
(1) Amount comprised of total non-accrual loans, other real estate owned, and the recorded balance of pooled bank trust preferred security investments thatwere 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  
      June 30, 2016          March 31, 2016         June 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  $5,138,053  $47,358   3.69 % $4,817,095  $45,651  3.79 % $4,214,674  $43,473   4.13 %
  Other loans   1,511   24   6.35    1,421   24  6.76    1,535   23   5.99  
  Mortgage-backed securities   400   2   2.00    414   2  1.93    461   2   1.74  
  Investment securities   20,203   265   5.25    20,217   173  3.42    18,491   121   2.62  
  Other short-term investments   148,267   721   1.95    116,496   661  2.27    100,418   579   2.31  
   Total interest earning assets   5,308,434  $48,370   3.64 %  4,955,643  $46,511  3.75 %  4,335,579  $44,198   4.08 %
 Non-interest earning assets   201,115            215,725           219,802          
Total assets  $5,509,549           $5,171,368          $4,555,381          
                                        
Liabilities and Stockholders' Equity:                                       
 Interest-bearing liabilities:                                       
  Interest Bearing Checking accounts  $84,835  $61   0.29 % $79,839  $56  0.28 % $75,739  $60   0.32 %
  Money Market accounts   1,892,046   3,865   0.82    1,689,903   3,379  0.80    1,335,793   2,441   0.73  
  Savings accounts   369,266   44   0.05    367,707   45  0.05    373,430   45   0.05  
  Certificates of deposit   1,010,864   3,627   1.44    931,007   3,314  1.43    916,684   3,124   1.37  
   Total interest bearing deposits   3,357,011   7,597   0.91    3,068,456   6,794  0.89    2,701,646   5,670   0.84  
 Borrowed Funds   1,145,058   5,163   1.81    1,182,114   5,086  1.73    1,010,119   5,458   2.17  
  Total interest-bearing liabilities   4,502,069  $12,760   1.14 %  4,250,570  $11,880  1.12 %  3,711,765  $11,128   1.20 %
 Non-interest bearing checking accounts   255,922            260,977           209,847          
 Other non-interest-bearing liabilities   206,526            152,670           162,141          
  Total liabilities   4,964,517            4,664,217           4,083,753          
 Stockholders' equity   545,032            507,151           471,628          
Total liabilities and stockholders' equity  $5,509,549           $5,171,368          $4,555,381          
Net interest income      $35,610           $34,631          $33,070      
Net interest spread           2.50 %         2.63 %          2.88 %
Net interest-earning assets  $806,365           $705,073          $623,814          
Net interest margin           2.68 %         2.80 %          3.05 %
Ratio of interest-earning assets to interest-bearing liabilities       117.91 %          116.59 %         116.81 %    
                                        
Deposits (including non-interest bearing checking accounts)  $3,612,933  $7,597   0.85 % $3,329,433  $6,794  0.82 % $2,911,493  $5,670   0.78 %
                                        
SUPPLEMENTAL 
INFORMATION
                                      
Loan prepayment and late payment fee income     $1,978           $2,618          $4,194      
Real estate loans (excluding net prepayment and late payment fee income)          3.53 %         3.57 %          3.73 %
Interest earning assets (excluding net prepayment and late payment fee income)          3.50 %         3.54 %          3.69 %
Net Interest income (excluding net prepayment and late payment fee income)     $33,632           $32,013          $28,876      
Net Interest margin (excluding net prepayment and late payment fee income)         2.53 %         2.58 %          2.66 %
                              
 
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  2016  2016  2015
 One- to four-family and cooperative/condominium apartment  $ 487  $ 1,102  $ 749
 Multifamily residential and mixed use residential real estate (1)(2)  3,784  287  -
 Mixed use commercial real estate (2)  54  53  -
 Commercial real estate  -  -  207
 Other  4  -  3
Total Non-Performing Loans (3)  $ 4,329  $ 1,442  $ 959
Other Non-Performing Assets         
 Non-performing loans held for sale  -  -  333
 Other real estate owned  18  18  148
 Pooled bank trust preferred securities (4)  1,253  1,245  1,219
Total Non-Performing Assets  $ 5,600  $ 2,705  $ 2,659
          
TDRs not included in non-performing loans (3)         
 One- to four-family and cooperative/condominium apartment  32  -  -
 Multifamily residential and mixed use residential real estate (1)(2)  1,058  1,069  1,312
 Mixed use commercial real estate (2)  4,303  4,324  4,385
 Commercial real estate  3,396  3,412  3,459
Total Performing TDRs  $ 8,789  $ 8,805  $ 9,156
          
(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 June 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 June 30, 2016 or March 31, 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 June 30,  At March 31,  At June 30,
   2016  2016  2015
Total Non-Performing Assets  $ 5,600  $ 2,705  $ 2,659
Loans 90 days or more past due on accrual status (5)  4,534  4,713  1,044
 TOTAL PROBLEM ASSETS  $ 10,134  $ 7,418  $ 3,703
          
Tier One Capital - The Dime Savings Bank of Williamsburgh  $ 496,757  $ 487,759  $ 425,334
Allowance for loan losses  18,909  18,513  18,553
 TANGIBLE CAPITAL PLUS RESERVES  $ 515,666  $ 506,272  $ 443,887
          
PROBLEM ASSETS AS A PERCENTAGE OF         
 TANGIBLE CAPITAL AND RESERVES  2.0%  1.5%  0.8%
          
(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 8260