DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
September 30, December 31, June 30,
2010 2009 2010
------------- ------------- -------------
ASSETS:
Cash and due from banks $ 70,761 $ 39,338 $ 164,655
Investment securities held to
maturity 6,639 7,240 7,165
Investment securities
available for sale 64,675 43,162 40,956
Trading securities 1,420 - 1,329
Mortgage-backed securities
available for sale 165,221 224,773 184,723
Federal funds sold and other
short-term investments 23,848 3,785 45,455
Real Estate Loans:
One-to-four family and
cooperative apartment 119,991 131,475 123,434
Multifamily and underlying
cooperative (1) 2,460,882 2,377,278 2,469,271
Commercial real estate (1) 823,018 834,724 837,523
Construction and land
acquisition 16,348 44,544 26,127
Unearned discounts and net
deferred loan fees 4,526 4,017 4,476
------------- ------------- -------------
Total real estate loans 3,424,765 3,392,038 3,460,831
------------- ------------- -------------
Other loans 2,327 3,221 4,211
Allowance for loan losses (16,942) (21,505) (23,350)
------------- ------------- -------------
Total loans, net 3,410,150 3,373,754 3,441,692
------------- ------------- -------------
Loans held for sale 345 416 692
Premises and fixed assets, net 31,224 29,841 30,491
Federal Home Loan Bank of New
York capital stock 47,848 54,083 53,068
Other real estate owned, net 85 755 350
Goodwill 55,638 55,638 55,638
Other assets 118,914 119,489 122,081
------------- ------------- -------------
TOTAL ASSETS $ 3,996,768 $ 3,952,274 $ 4,148,295
============= ============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Non-interest bearing checking $ 119,966 $ 106,449 $ 109,985
Interest Bearing Checking 104,705 114,416 106,226
Savings 318,239 302,340 314,747
Money Market 743,305 708,578 791,413
------------- ------------- -------------
Sub-total 1,286,215 1,231,783 1,322,371
------------- ------------- -------------
Certificates of deposit 1,094,451 985,053 1,117,444
------------- ------------- -------------
Total Due to Depositors 2,380,666 2,216,836 2,439,815
------------- ------------- -------------
Escrow and other deposits 91,965 65,895 77,699
Securities sold under
agreements to repurchase 195,000 230,000 195,000
Federal Home Loan Bank of New
York advances 904,525 1,009,675 1,020,525
Subordinated Notes Sold - 25,000 -
Trust Preferred Notes Payable 70,680 70,680 70,680
Other liabilities 31,470 39,415 29,849
------------- ------------- -------------
TOTAL LIABILITIES 3,674,306 3,657,501 3,833,568
------------- ------------- -------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par,
125,000,000 shares authorized,
51,151,115 shares and
51,131,784 shares issued at
September 30, 2010 and December
31, 2009, respectively and
34,547,769 shares and 34,395,531
shares outstanding at September
30, 2010 and December 31, 2009,
respectively) 511 511 511
Additional paid-in capital 224,239 214,654 223,802
Retained earnings 323,777 306,787 317,088
Unallocated common stock of
Employee Stock Ownership Plan (3,528) (3,701) (3,586)
Unearned common stock of
Restricted Stock Awards (3,226) (2,505) (3,573)
Common stock held by the
Benefit Maintenance Plan (7,979) (8,007) (7,979)
Treasury stock (16,603,346
shares and 16,736,253 shares
at September 30, 2010,
and December 31, 2009,
respectively) (206,259) (207,884) (206,259)
Accumulated other
comprehensive loss, net (5,073) (5,082) (5,277)
------------- ------------- -------------
TOTAL STOCKHOLDERS' EQUITY 322,462 294,773 314,727
------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 3,996,768 $ 3,952,274 $ 4,148,295
============= ============= =============
(1) While the loans within both of these categories are often considered
"commercial real estate" in nature, they are classified separately in
the statement above to provide further emphasis upon the discrete
composition of their underlying real estate collateral.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------------
September 30, June 30, September 30,
2010 2010 2009
------------- ------------- -------------
Interest income:
Loans secured by real estate $ 50,648 $ 51,068 $ 48,422
Other loans 28 30 35
Mortgage-backed securities 1,846 2,082 2,748
Investment securities 290 312 76
Federal funds sold and other
short-term investments 702 681 809
------------- ------------- -------------
Total interest income 53,514 54,173 52,090
------------- ------------- -------------
Interest expense:
Deposits and escrow 7,383 8,010 9,156
Borrowed funds 11,855 12,958 13,965
------------- ------------- -------------
Total interest expense 19,238 20,968 23,121
------------- ------------- -------------
Net interest income 34,276 33,205 28,969
Provision for loan losses 667 3,834 3,769
------------- ------------- -------------
Net interest income after
provision for loan losses 33,609 29,371 25,200
------------- ------------- -------------
Non-interest income:
Service charges and other
fees 1,284 945 1,376
Mortgage banking income
(loss), net 316 303 246
Other than temporary
impairment ("OTTI")charge
on securities(1) (1,639) (508) (556)
Gain (loss) on sale of other
real estate owned and other
assets (10) 282 -
Gain (loss) on trading
securities 86 (66) -
Other 1,031 1,501 1,038
------------- ------------- -------------
Total non-interest
income (loss) 1,068 2,457 2,104
------------- ------------- -------------
Non-interest expense:
Compensation and benefits 8,514 8,522 7,941
Occupancy and equipment 2,190 2,648 1,926
Other 4,188 4,621 3,774
------------- ------------- -------------
Total non-interest
expense 14,892 15,791 13,641
------------- ------------- -------------
Income before taxes 19,785 16,037 13,663
Income tax expense 8,430 6,033 5,337
------------- ------------- -------------
Net Income $ 11,355 $ 10,004 $ 8,326
============= ============= =============
Earnings per Share:
Basic $ 0.34 $ 0.30 $ 0.25
============= ============= =============
Diluted $ 0.34 $ 0.30 $ 0.25
============= ============= =============
Average common shares
outstanding for Diluted EPS 33,394,522 33,341,885 33,126,941
For the Nine Months Ended
----------------------------
September 30, September 30,
2010 2009
------------- -------------
Interest income:
Loans secured by real
estate $ 151,839 $ 144,412
Other loans 97 110
Mortgage-backed securities 6,199 8,997
Investment securities 1,009 515
Federal funds sold and
other short-term
investments 2,125 2,170
------------- -------------
Total interest income 161,269 156,204
------------- -------------
Interest expense:
Deposits and escrow 22,986 35,086
Borrowed funds 38,036 41,720
------------- -------------
Total interest expense 61,022 76,806
------------- -------------
Net interest income 100,247 79,398
Provision for loan losses 7,948 8,661
------------- -------------
Net interest income after
provision for loan losses 92,299 70,737
------------- -------------
Non-interest income:
Service charges and other
fees 3,165 3,118
Mortgage banking income
(loss), net 829 (66)
Other than temporary
impairment ("OTTI")
charge on securities(1) (2,312) (6,482)
Gain (loss) on sale of other
real estate owned and other
assets 618 339
Gain (loss) on trading
securities 243
Other 3,492 3,006
------------- -------------
Total non-interest
income (loss) 6,035 (85)
------------- -------------
Non-interest expense:
Compensation and benefits 25,923 23,358
Occupancy and equipment 7,096 5,894
Other 13,355 13,321
------------- -------------
Total non-interest
expense 46,374 42,573
------------- -------------
Income before taxes 51,960 28,079
Income tax expense 21,131 9,987
------------- -------------
Net Income $ 30,829 $ 18,092
============= =============
Earnings per Share:
Basic $ 0.93 $ 0.55
============= =============
Diluted $ 0.93 $ 0.55
============= =============
Average common shares
outstanding for Diluted EPS 33,328,574 33,005,549
(1) Total OTTI charges on securities were $1,858, $521 and $675 during the
three months ended September 30, 2010, June 30, 2010 and September 30,
2009, respectively, and $736 and $7,939 during the nine months ended
September 30, 2010 and 2009, respectively. The non-credit component of
OTTI recognized in accumulated other comprehensive loss was $219, $13
and $119 during the three months ended September 30, 2010, June 30,
2010 and September 30, 2009, respectively, and $313 and $1,457 during
the nine months ended September 30, 2010 and 2009, respectively.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------------
September 30, June 30, September 30,
2010 2010 2009
------------- ------------- -------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.34 $ 0.30 $ 0.25
Return on Average Assets 1.11% 0.95% 0.85%
Return on Average
Stockholders' Equity 14.23% 12.80% 11.66%
Return on Average Tangible
Stockholders' Equity 16.92% 15.29% 14.07%
Net Interest Spread 3.44% 3.16% 2.91%
Net Interest Margin 3.60% 3.35% 3.11%
Non-interest Expense to
Average Assets 1.46% 1.50% 1.39%
Efficiency Ratio 40.35% 43.92% 43.13%
Effective Tax Rate 42.61% 37.62% 39.06%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 9.33 $ 9.11 $ 8.42
Tangible Book Value Per Share 7.86 7.65 6.97
Average Balance Data:
Average Assets $ 4,090,033 $ 4,211,629 $ 3,912,313
Average Interest Earning
Assets 3,806,510 3,961,750 3,721,680
Average Stockholders' Equity 319,090 312,634 285,688
Average Tangible Stockholders'
Equity 268,477 261,736 236,680
Average Loans 3,440,764 3,479,613 3,267,984
Average Deposits 2,406,853 2,419,758 2,255,479
Asset Quality Summary:
Net charge-offs $ 6,817 $ 5,024 $ 3,619
Nonperforming Loans 19,598 18,691 14,162
Nonperforming Loans/ Total
Loans 0.57% 0.54% 0.43%
Nonperforming Assets (1) 20,242 19,634 16,090
Nonperforming Assets/Total
Assets 0.51% 0.47% 0.41%
Allowance for Loan Loss/Total
Loans 0.49% 0.67% 0.61%
Allowance for Loan
Loss/Nonperforming Loans 86.45% 124.93% 143.07%
Loans Delinquent 30 to 89 Days
at period end $ 15,729 $ 11,133 $ 11,340
Regulatory Capital Ratios:
Consolidated Tangible
Stockholders' Equity to
Tangible Assets at period
end 6.90% 6.46% 6.23%
Tangible Capital Ratio (Bank
Only) 8.01% 7.70% 8.03%
Leverage Capital Ratio (Bank
Only) 8.01% 7.70% 8.03%
Risk Based Capital Ratio (Bank
Only) 11.07% 11.91% 11.73%
For the Nine Months Ended
----------------------------
September 30, September 30,
2010 2009
------------- -------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.93 $ 0.55
Return on Average Assets 1.00% 0.60%
Return on Average
Stockholders' Equity 13.22% 8.55%
Return on Average Tangible
Stockholders' Equity 15.82% 10.29%
Net Interest Spread 3.28% 2.55%
Net Interest Margin 3.47% 2.80%
Non-interest Expense to
Average Assets 1.51% 1.42%
Efficiency Ratio 43.05% 49.82%
Effective Tax Rate 40.67% 35.57%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 9.33 $ 8.42
Tangible Book Value Per Share 7.86 6.97
Average Balance Data:
Average Assets $ 4,105,697 $ 3,987,849
Average Interest Earning
Assets 3,852,759 3,787,316
Average Stockholders' Equity 310,856 281,987
Average Tangible Stockholders'
Equity 259,821 234,538
Average Loans 3,455,969 3,272,472
Average Deposits 2,242,875 2,292,019
Asset Quality Summary:
Net charge-offs $ 12,610 $ 6,023
Nonperforming Loans 19,598 14,162
Nonperforming Loans/ Total
Loans 0.57% 0.43%
Nonperforming Assets (1) 20,242 16,090
Nonperforming Assets/Total
Assets 0.51% 0.41%
Allowance for Loan Loss/Total
Loans 0.49% 0.61%
Allowance for Loan
Loss/Nonperforming Loans 86.45% 143.07%
Loans Delinquent 30 to 89 Days
at period end $ 15,729 $ 11,340
Regulatory Capital Ratios:
Consolidated Tangible
Stockholders' Equity to
Tangible Assets at period
end 6.90% 6.23%
Tangible Capital Ratio (Bank
Only) 8.01% 8.03%
Leverage Capital Ratio (Bank
Only) 8.01% 8.03%
Risk Based Capital Ratio (Bank
Only) 11.07% 11.73%
(1) Amount comprised of total nonperforming loans, other real estate owned
and the recorded balance of two pooled bank trust preferred security
investments for which the Bank has not received any contractual
payments of interest or principal in over 90 days.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
-------------------------------------------
September 30,
2010
-------------------------------------------
Average
Average Yield/
Balance Interest Cost
-------------- ------------- -------------
Assets:
Interest-earning assets:
Real estate loans $ 3,439,448 $ 50,648 5.89%
Other loans 1,316 28 8.51
Mortgage-backed securities 166,672 1,846 4.43
Investment securities 64,325 290 1.80
Other short-term
investments 134,749 702 2.08
-------------- ------------- -------------
Total interest earning
assets $ 3,806,510 $ 53,514 5.62%
-------------- -------------
Non-interest earning assets 283,523
--------------
Total assets $ 4,090,033
==============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 98,588 $ 99 0.40%
Money Market accounts 760,509 1,221 0.64
Savings accounts 317,243 202 0.25
Certificates of deposit 1,107,791 5,861 2.10
-------------- ------------- -------------
Total interest
bearing deposits 2,284,131 7,383 1.28
Borrowed Funds 1,213,607 11,855 3.88
-------------- ------------- -------------
Total interest-bearing
liabilities $ 3,497,738 $ 19,238 2.18%
-------------- ------------- -------------
Non-interest bearing
checking accounts 122,722
Other non-interest-bearing
liabilities 150,483
--------------
Total liabilities 3,770,943
Stockholders' equity 319,090
--------------
Total liabilities and
stockholders' equity $ 4,090,033
==============
Net interest income $ 34,276
=============
Net interest spread 3.44%
=============
Net interest-earning assets $ 308,772
==============
Net interest margin 3.60%
=============
Ratio of interest-earning
assets to interest-bearing
liabilities 108.83%
=============
Deposits (including
non-interest bearing
checking accounts) $ 2,406,853 $ 7,383 1.22%
Interest earning assets
(excluding prepayment and
other fees) 5.54%
For the Three Months Ended
-------------------------------------------
June 30, 2010
-------------------------------------------
Average
Average Yield/
Balance Interest Cost
-------------- ------------- -------------
Assets:
Interest-earning assets:
Real estate loans $ 3,478,236 $ 51,068 5.87%
Other loans 1,377 30 8.71
Mortgage-backed securities 184,613 2,082 4.51
Investment securities 50,709 312 2.46
Other short-term
investments 246,815 681 1.10
-------------- ------------- -------------
Total interest earning
assets $ 3,961,750 $ 54,173 5.47%
-------------- -------------
Non-interest earning assets 249,879
--------------
Total assets $ 4,211,629
==============
Liabilities and Stockholders'
Equity:
Interest-bearing
liabilities:
Interest Bearing Checking $ 102,711 $ 191 0.75%
Money Market accounts 785,323 1,647 0.84
Savings accounts 311,201 200 0.26
Certificates of deposit 1,106,346 5,972 2.17
-------------- ------------- -------------
Total interest
bearing deposits 2,305,581 8,010 1.39
Borrowed Funds 1,336,282 12,958 3.89
-------------- ------------- -------------
Total interest-bearing
liabilities $ 3,641,863 $ 20,968 2.31%
-------------- ------------- -------------
Non-interest bearing
checking accounts 114,177
Other non-interest-bearing
liabilities 142,955
--------------
Total liabilities 3,898,995
Stockholders' equity 312,634
--------------
Total liabilities and
stockholders' equity $ 4,211,629
==============
Net interest income $ 33,205
=============
Net interest spread 3.16%
=============
Net interest-earning assets $ 319,887
==============
Net interest margin 3.35%
=============
Ratio of interest-earning
assets to interest-bearing
liabilities 108.78%
=============
Deposits (including
non-interest bearing
checking accounts) $ 2,419,758 $ 8,010 1.33%
Interest earning assets
(excluding prepayment and
other fees) 5.40%
For the Three Months Ended
--------------------------------------------
September 30, 2009
--------------------------------------------
Average
Average Yield/
Balance Interest Cost
-------------- ------------- -------------
Assets:
Interest-earning assets:
Real estate loans $ 3,266,416 $ 48,422 5.93%
Other loans 1,568 35 8.93
Mortgage-backed securities 246,354 2,748 4.46
Investment securities 26,039 76 1.17
Other short-term
investments 181,303 809 1.78
-------------- ------------- -------------
Total interest earning
assets $ 3,721,680 $ 52,090 5.60%
-------------- -------------
Non-interest earning assets 190,633
--------------
Total assets $ 3,912,313
==============
Liabilities and Stockholders'
Equity:
Interest-bearing
liabilities:
Interest Bearing Checking $ 105,938 $ 179 0.67%
Money Market accounts 730,634 1,738 0.94
Savings accounts 297,450 201 0.27
Certificates of deposit 1,016,246 7,038 2.75
-------------- ------------- -------------
Total interest
bearing deposits 2,150,268 9,156 1.69
Borrowed Funds 1,265,644 13,965 4.38
-------------- ------------- -------------
Total interest-bearing
liabilities $ 3,415,912 $ 23,121 2.69%
-------------- ------------- -------------
Non-interest bearing
checking accounts 105,211
Other non-interest-bearing
liabilities 105,502
--------------
Total liabilities 3,626,625
Stockholders' equity 285,688
--------------
Total liabilities and
stockholders' equity $ 3,912,313
==============
Net interest income $ 28,969
=============
Net interest spread 2.91%
=============
Net interest-earning assets $ 305,768
==============
Net interest margin 3.11%
=============
Ratio of interest-earning
assets to interest-bearing
liabilities 108.95%
=============
Deposits (including
non-interest bearing
checking accounts) $ 2,255,479 $ 9,156 1.61%
Interest earning assets
(excluding prepayment and
other fees) 5.53%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS
(Dollars In thousands)
At September 30, At June 30, At September 30,
2010 2010 2009
------------- ------------- --------------
Non-Performing Loans
One- to four-family $ 224 $ 634 $ 371
Multifamily residential and
mixed use (1) 12,934 13,739 11,020
Commercial real estate (1) 6,396 4,277 2,739
Cooperative apartment 25 25 26
Other 19 16 6
------------- ------------- --------------
Total Non-Performing Loans
(2) $ 19,598 $ 18,691 $ 14,162
------------- ------------- --------------
Other Non-Performing Assets
Other real estate owned (3) 85 350 168
Pooled bank trust preferred
securities 559 593 1,760
------------- ------------- --------------
Total Non-Performing Assets $ 20,242 $ 19,634 $ 16,090
------------- ------------- --------------
Troubled Debt Restructurings
not included in
non-performing loans
Multifamily residential - - -
Commercial real estate 6,600 - -
Mixed Use 1,040 1,040 1,040
Other - - -
------------- ------------- --------------
Total Troubled Debt
Restructurings ("TDRs") (1) $ 7,640 $ 1,040 $ 1,040
------------- ------------- --------------
(1) While the loans within both of these categories are often considered
"commercial real estate" in nature, they are classified separately in
the statement above to provide further emphasis upon the discrete
composition of their underlying real estate collateral.
(2) Total non-performing loans include loans that have been modified in a
manner that would meet the criteria for a TDR should the loans return
to accrual status. These loans, which are included in the
non-performing loan table, but excluded from the TDR amount shown
above, totaled $3.6 million at September 30, 2010, $4.6 million at
June 30, 2010 and $4.6 million at September 30,2009, respectively.
(3) Amount was fully comprised of multifamily residential loans at
September 30, 2010 and June 30, 2010.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES
At September 30, At June 30,
2010 2010
------------- -------------
Total Non-Performing Assets $ 20,242 $ 19,634
Loans over 90 days past due on
accrual status - -
------------- -------------
PROBLEM ASSETS $ 20,242 $ 19,634
------------- -------------
Tier 1 Capital - Dime Savings
Bank of Williamsburgh $ 314,587 $ 313,882
Allowance for loan losses 16,942 23,350
------------- -------------
TANGIBLE CAPITAL PLUS
RESERVES $ 331,529 $ 337,232
------------- -------------
PROBLEM ASSETS AS A PERCENTAGE
OF TANGIBLE CAPITAL AND
RESERVES 6.1% 5.8%
Contact Information: Contact: Kenneth Ceonzo Director of Investor Relations 718-782-6200 extension 8279