SOURCE: Dime Community Bancshares, Inc.

Dime Community Bancshares, Inc.

October 28, 2013 08:00 ET

Dime Community Bancshares Reports Earnings

Net Income of $0.30 per Diluted Share; Credit Quality Remains Solid

BROOKLYN, NY--(Marketwired - Oct 28, 2013) -  Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company" or "Dime"), the parent company of The Dime Savings Bank of Williamsburgh (the "Bank"), today reported financial results for the quarter ended September 30, 2013. Consolidated net income for the quarter was $10.6 million, or $0.30 per diluted share, compared to $12.0 million, or $0.34 per diluted share, for the quarter ended June 30, 2013, and $11.8 million, or $0.34 per diluted share, for the quarter ended September 30, 2012. 

Vincent F. Palagiano, Chairman and Chief Executive Officer of Dime, commented, "We were pleased to post another solid quarter of earnings, as we continue to be impacted by the heavy refinancing activities in our lending marketplace. We closed $289.6 million of loans during the September 2013 quarter, and the annualized growth rate in the real estate loan portfolio has approximated 6% during the first nine months of 2013, putting the Company on track to meet its 2013 goal. Prepayment fees were $1.2 million lower in the third quarter compared to the second quarter, adversely impacting diluted earnings per share by $0.02. Net interest margin excluding prepayment fees declined 8 basis points to 2.98%, providing the bulk of the remaining decline in diluted earnings per share from the June 2013 quarter."

"More importantly," continued Mr. Palagiano, "interest rate offerings in the multifamily sector have turned up from their historic lows in this cycle, as the yield curve continues to steepen, albeit modestly. Should the present conditions persist, we anticipate net interest margin and the average loan portfolio yield hitting their cyclical bottom in the upcoming quarters."

Loan amortization and satisfactions, including refinances of existing loans, declined from a 33.2% annualized rate during the June 2013 quarter to 25.7% during the September 2013 quarter. Prepayment fee income, which is generally proportional to amortization levels, also fell from $4.6 million (or $0.08 per diluted share after-tax) during the June 2013 quarter to $3.4 million (or $0.06 per diluted share after tax) during the September 2013 quarter. 

OPERATING RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2013

Net Interest Margin
Net interest margin ("NIM") was 3.35% during the quarter ended September 30, 2013 compared to 3.55% during the June 2013 quarter. For forecasting purposes, the "core" NIM, which excludes the effect of loan prepayment fees, decreased from 3.06% during the June 2013 quarter to 2.98% during the September 2013 quarter, reflecting a reduction of 10 basis points in the average yield on interest earning assets (primarily caused by a reduction of 16 basis points in the average yield on real estate loans exclusive of the effects of prepayment fee income), that was partially offset by a reduction of 5 basis points in the average cost of interest bearing liabilities.

A 5 basis point decline in the average cost of deposits helped to reduce the average cost of all interest bearing liabilities, as bank deposit rates (mainly short term) remained low in the Bank's market area.

The 16 basis point decline in the average yield on real estate loans (excluding the effects of prepayment fee income) on a linked quarter basis resulted from the cumulative effect of increased portfolio refinance and amortization activities during the period October 2012 through September 2013, as U.S. Treasury yields hovered at historically low levels, and loans repriced at lower rates. Throughout the summer, there was a slight uptick in the offering rate on new multifamily originations, so that the range of rates for a prime, low-loan-to-value 5 year repricing loan was in the 3.50 - 3.75% range. 

Net Interest Income
Net interest income was $31.7 million in the quarter ended September 30, 2013, down $2.1 million from $33.8 million reported in the June 2013 quarter, and down $1.7 million from $33.4 million reported in the September 2012 quarter. Prepayment fee income on loans totaled $3.4 million during the September 2013 quarter, compared to $4.6 million recognized in the June 2013 quarter and $3.1 million during the September 2012 quarter. Absent the impact of loan prepayment fee income, net interest income was $28.2 million during the September 30, 2013 quarter, down $874,000 from the June 30, 2013 quarter and $1.9 million from the September 30, 2012 quarter. The decline in net interest income (excluding loan prepayment fee income) from the June 2013 quarter resulted primarily from a decline of 10 basis points in the average yield earned on the Company's interest earning assets, reflecting the ongoing loan refinancing activity.

Provision/Allowance For Loan Losses
The Company recognized net charge-offs of $202,000 and provisioned $240,000 for loan losses during the September 2013 quarter. This led to a net increase of $38,000 in the allowance for loan losses from June 30, 2013 to September 30, 2013. The quarterly loan loss provision, while increasing from $28,000 in the June 2013 quarter, remained relatively low during the September 2013 quarter, reflecting the continued stability of the Bank's credit quality.

At September 30, 2013, the allowance for loan losses as a percentage of total loans stood at 0.56%, down slightly from 0.57% at the close of the prior quarter, as a result of growth in the loan portfolio during the September 2013 quarter. 

Non-Interest Income
Non-interest income was $2.0 million for the quarter ended September 30, 2013, an increase of $287,000 from the previous quarter. The valuation of equity mutual funds designated as trading for accounting purposes increased $121,000 from the June 2013 quarter. The remaining increase in non-interest income from the previous quarter resulted primarily from higher fees collected on portfolio loans. 

Non-Interest Expense
Non-interest expense was $15.6 million in the quarter ended September 30, 2013, up $228,000 from the prior quarter, and slightly above the forecasted level of $15.5 million. The largest portion of the variance from forecast was due to a variable component of compensation and benefit expense which is linked to the performance of the equity markets, and the smaller portion due to occupancy costs, which are running just slightly above our budget.

Non-interest expense was 1.56% of average assets during the most recent quarter. The efficiency ratio approximated 46.4% during the same period. 

Income Tax Expense
The effective tax rate approximated 40.4% during the most recent quarter, generally in line with the 40.0% forecasted level.

BALANCE SHEET
Total assets were $4.02 billion at September 30, 2013, up $64.1 million from June 30, 2013. Net loans increased by $62.2 million, comprising most of the asset growth during the period. 

The Company added $35.0 million of Federal Home Loan Bank of New York ("FHLBNY") advances on a net basis during the September 2013 quarter to fund a portion of the asset growth during the period. The remaining asset growth was funded primarily through growth in both mortgagor escrow and money market deposits. Assets grew by approximately 3.8% on an annualized basis during the first nine months of 2013, and remain forecasted to grow approximately 5% during the year ending December 31, 2013.

Real Estate Loans
Real estate loan originations were $289.6 million during the September 2013 quarter, at a weighted average interest rate of 3.39%. Of this amount, $108.7 million represented loan refinances from the existing portfolio. Loan amortization and satisfactions, including the $108.7 million of refinances of existing loans, totaled $233.2 million during the quarter, or 25.7% of the average portfolio balance on an annualized basis. The average rate on amortized and satisfied loan balances during the most recent quarter was 5.30%. Total loan commitments stood at $146.9 million at September 30, 2013, with a weighted average rate of 3.75%. The average yield on the loan portfolio (excluding prepayment fee income) during the quarter ended September 30, 2013 was 4.28%, compared to 4.44% during the June 2013 quarter and 5.12% during the September 2012 quarter. 

Credit Summary
Non-performing loans (excluding loans held for sale) were $8.8 million, or 0.24% of total loans, at September 30, 2013, down from $9.5 million, or 0.26% of total loans, at June 30, 2013. Loans delinquent between 30 and 89 days and accruing interest increased to $3.8 million, or approximately 0.10% of total loans, at September 30, 2013, compared to $159,000, or 0.004% of total loans, at June 30, 2013. There tends to be variability in the category "loans delinquent between 30 and 89 days," and this quarter's increase, while still very low as an absolute percentage of the portfolio, does not appear to reflect a negative credit quality trend.

At September 30, 2013, non-performing assets represented 2.6% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table on page 12). This number compares very favorably to both industry and regional averages.

Within the pool of serviced loans previously sold to Fannie Mae with recourse exposure, total loans delinquent 30 days or more approximated $400,000 at September 30, 2013, down from approximately $700,000 at June 30, 2013. The remaining pool of loans serviced for Fannie Mae totaled $216.1 million as of September 30, 2013, down from $229.2 million as of June 30, 2013. Due to both ongoing amortization and the near absence of problem loans within the Fannie Mae portfolio, the Company determined that its liability for the first loss position could be reduced by $50,000, which was recognized during the quarter ended September 30, 2013.

Deposits and Borrowed Funds
Retail deposits increased $1.5 million from June 30, 2013 to September 30, 2013, with net inflows of $24.0 million in core deposits offset by net outflows of $22.5 million in certificates of deposit during the period. The Bank did not implement any significant promotional deposit activities during the September 2013 quarter, and enacted slight reductions in rates that resulted in a reduction of 5 basis points in the average cost of deposits during the September 2013 quarter. At September 30, 2013, average deposit balances approximated $100.4 million per branch.

The Company transacted $60.0 million of new fixed-rate FHLBNY borrowings during the quarter ended September 30, 2013, of which $25.0 million were utilized to replace borrowings that matured during the period. The $60.0 million of new borrowings had an average maturity of 3.75 years and an average cost of 1.31%, providing an element of NIM protection to offset the fixed rate loan portfolio, in the event of rising open market rates over the next four years. The Company intends to use FHLBNY advances to supplement deposit funding when deemed appropriate. 

Capital
The Company's consolidated tangible common equity ratio (Tier 1 core leverage) grew during the most recent quarter as a result of both increased retained earnings and stock option exercise activity. Consolidated tangible capital was 9.51% of tangible assets at September 30, 2013, an increase of 20 basis points from June 30, 2013. The Company also had approximately $70.7 million of trust preferred debt securities outstanding at September 30, 2013, which, when added to Tier 1 (tangible) capital, increased its consolidated Tier 1 (tangible) capital ratio to approximately 11.2%. 

The Bank's tangible capital ratio was 10.24% at September 30, 2013, down slightly from 10.27% at June 30, 2013, due to asset growth during the September 2013 quarter. The Bank's Total Risk-Based Capital Ratio was 14.07% at September 30, 2013, compared to 13.93% at June 30, 2013. 

Reported diluted EPS exceeded the quarterly cash dividend rate per share by 114%, equating to a 47% payout ratio. Additions to capital from earnings and stock option exercises during the most recent quarterly period caused tangible book value per share to increase $0.24 sequentially during the most recent quarter, to $10.30 at September 30, 2013.

OUTLOOK FOR THE QUARTER ENDING DECEMBER 31, 2013
At September 30, 2013, Dime had outstanding loan commitments totaling $146.9 million (of which $38 million related to loan refinances from the existing portfolio), all of which are likely to close during the quarter ending December 31, 2013, at an average interest rate approximating 3.75%.

For the year ending December 31, 2013, balance sheet growth is targeted to approximate 5.0%, subject to change to reflect market conditions. Loan prepayments and amortization are currently anticipated to approximate 20% - 25% on an annualized basis during the December 2013 quarter. 

On the liability side, deposit funding costs are expected to remain near current historically low levels through the final quarter of 2013. The Bank has $134.6 million of certificates of deposit ("CDs") maturing at an average cost of 0.92% during the quarter ending December 31, 2013. Offering rates on 12-month term CDs currently approximate 50 basis points. The Company has $88.5 million of borrowings due to mature during the quarter ending December 31, 2013 at an average cost of 2.46%. FHLBNY advance rates for 3-year, 4-year and 5-year borrowings were 1.06% and 1.55% and 1.94% respectively, as of October 22, 2013. In the coming quarter, management expects to utilize advances rather than deposits to fund growth as a long-term interest rate hedge against future higher rates.

Loan loss provisioning will likely continue to be a function of loan portfolio growth, incurred and anticipated losses and the overall credit quality of the loan portfolio.

Absent any unforeseen items, non-interest expense is expected to approximate $15.7 million during the December 2013 quarter.

The Company projects that the consolidated effective tax rate will approximate 40.0% in the December 2013 quarter.

ABOUT DIME COMMUNITY BANCSHARES, INC.
The Company (NASDAQ: DCOM) had $4.02 billion in consolidated assets as of September 30, 2013, and is the parent company of the Bank. The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-six 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)  
                   
    September 30,     June 30,     December 31,  
    2013     2013     2012  
ASSETS:                  
Cash and due from banks   $ 65,713     $ 61,291     $ 79,076  
Investment securities held to maturity     5,622       5,617       5,927  
Investment securities available for sale     18,468       18,309       32,950  
Trading securities     5,262       5,127       4,874  
Mortgage-backed securities available for sale     34,226       38,193       49,021  
Real Estate Loans:                        
  One-to-four family and cooperative apartment     78,504       81,110       91,876  
  Multifamily and loans underlying cooperatives (1)     2,859,729       2,780,897       2,670,973  
  Commercial real estate (1)     723,312       737,593       735,224  
  Construction and land acquisition     299       338       476  
  Unearned discounts and net deferred loan fees     5,095       4,309       4,836  
  Total real estate loans     3,666,939       3,604,247       3,503,385  
  Other loans     2,109       2,517       2,423  
  Allowance for loan losses     (20,540 )     (20,502 )     (20,550 )
Total loans, net     3,648,508       3,586,262       3,485,258  
Loans held for sale     -       232       560  
Premises and fixed assets, net     29,850       29,894       30,518  
Federal Home Loan Bank of New York capital stock     41,863       40,288       45,011  
Goodwill     55,638       55,638       55,638  
Other assets     110,175       110,392       116,566  
TOTAL ASSETS   $ 4,015,325     $ 3,951,243     $ 3,905,399  
LIABILITIES AND STOCKHOLDERS' EQUITY:                        
Deposits:                        
Non-interest bearing checking   $ 170,250     $ 170,432     $ 159,144  
Interest Bearing Checking     87,995       90,496       95,159  
Savings     379,114       379,367       371,792  
Money Market     1,119,212       1,092,281       961,359  
  Sub-total     1,756,570       1,732,576       1,587,454  
Certificates of deposit     852,594       875,083       891,975  
Total Due to Depositors     2,609,164       2,607,659       2,479,429  
Escrow and other deposits     98,160       86,028       82,753  
Federal Home Loan Bank of New York advances     772,500       737,500       842,500  
Trust Preferred Notes Payable     70,680       70,680       70,680  
Other liabilities     42,076       40,471       38,463  
TOTAL LIABILITIES     3,592,580       3,542,338       3,513,825  
STOCKHOLDERS' EQUITY:                        
Common stock ($0.01 par, 125,000,000 shares authorized, 52,692,461 shares, 52,198,771 shares and 52,021,149 shares issued at September 30, 2013, June 30, 2013 and December 31, 2012, respectively, and 36,548,503 shares, 36,054,813 shares, and 35,714,269 shares outstanding at September 30, 2013, June 30, 2013 and December 31, 2012, respectively)     526       522       520  
Additional paid-in capital     250,105       242,605       239,041  
Retained earnings     397,664       391,989       379,166  
Unallocated common stock of Employee Stock Ownership Plan     (2,834 )     (2,892 )     (3,007 )
Unearned Restricted Stock Award common stock     (3,693 )     (4,192 )     (3,122 )
Common stock held by the Benefit Maintenance Plan     (9,013 )     (9,013 )     (8,800 )
Treasury stock (16,143,958 shares, 16,143,958 shares and 16,306,880 shares at September 30, 2013, June 30, 2013 and December 31, 2012, respectively)     (200,550 )     (200,550 )     (202,584 )
Accumulated other comprehensive loss, net of deferred taxes     (9,460 )     (9,564 )     (9,640 )
TOTAL STOCKHOLDERS' EQUITY     422,745       408,905       391,574  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 4,015,325     $ 3,951,243     $ 3,905,399  
                         
(1) While the loans within both of these categories 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 a 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
    September 30,     June 30,     September 30,
    2013     2013     2012
Interest income:                
  Loans secured by real estate   $ 42,451     $ 44,692     $ 45,963
  Other loans     25       25       28
  Mortgage-backed securities     310       354       677
  Investment securities     84       103       223
  Federal funds sold and other short-term investments     416       462       582
    Total interest income     43,286       45,636       47,473
Interest expense:                      
  Deposits and escrow     4,908       5,132       5,302
  Borrowed funds     6,725       6,752       8,773
    Total interest expense     11,633       11,884       14,075
      Net interest income     31,653       33,752       33,398
Provision for loan losses     240       28       126
Net interest income after provision for loan losses     31,413       33,724       33,272
                       
Non-interest income:                      
  Service charges and other fees     1,015       827       1,244
  Mortgage banking income, net     76       112       259
  Other than temporary impairment ("OTTI") charge on securities (1)     -       -       -
  Gain (loss) on sale of securities and other assets     (21 )     -       -
  Gain (loss) on trading securities     104       (17 )     67
  Other     834       799       1,004
    Total non-interest income     2,008       1,721       2,574
Non-interest expense:                      
  Compensation and benefits     9,466       9,298       9,220
  Occupancy and equipment     2,697       2,506       2,527
  Federal deposit insurance premiums     515       445       502
  Other     2,897       3,098       3,522
    Total non-interest expense     15,575       15,347       15,771
                       
    Income before taxes     17,846       20,098       20,075
Income tax expense     7,215       8,059       8,280
                       
Net Income   $ 10,631     $ 12,039     $ 11,795
                       
Earnings per Share ("EPS"):                      
  Basic   $ 0.30     $ 0.34     $ 0.34
  Diluted   $ 0.30     $ 0.34     $ 0.34
                       
Average common shares outstanding                      
for Diluted EPS     35,527,503       35,048,063       34,497,817
                       
(1) Total OTTI charges on securities are summarized as follows for the periods presented:
Credit component (shown above)   $ -     $ -     $ -
Non-credit component not included in earnings     -       -       -
Total OTTI charges   $ -     $ -     $ -
                       
                       
                       
    For the Nine Months Ended      
    September 30,   September 30,      
    2013   2012      
Interest income:                  
  Loans secured by real estate   $ 130,291   $ 143,735      
  Other loans     74     76      
  Mortgage-backed securities     1,123     2,456      
  Investment securities     316     1,043      
  Federal funds sold and other short-term investments     1,423     1,895      
    Total interest income     133,227     149,205      
Interest expense:                  
  Deposits and escrow     15,240     16,449      
  Borrowed funds     20,267     31,465      
    Total interest expense     35,507     47,914      
      Net interest income     97,720     101,291      
Provision for loan losses     425     3,858      
Net interest income after provision for loan losses     97,295     97,433      
                   
Non-interest income:                  
  Service charges and other fees     2,554     2,840      
  Mortgage banking income, net     350     1,475      
  Other than temporary impairment ("OTTI") charge on securities (1)     -     (181 )    
  Gain (loss) on sale of securities and other assets     89     44      
  Gain (loss) on trading securities     187     136      
  Other     2,446     3,037      
    Total non-interest income     5,626     7,351      
Non-interest expense:                  
  Compensation and benefits     28,715     28,635      
  Occupancy and equipment     7,735     7,431      
  Federal deposit insurance premiums     1,470     1,557      
  Other     9,311     10,232      
    Total non-interest expense     47,231     47,855      
                   
    Income before taxes     55,690     56,929      
Income tax expense     22,450     23,356      
                   
Net Income   $ 33,240   $ 33,573      
                   
Earnings per Share ("EPS"):                  
  Basic   $ 0.95   $ 0.98      
  Diluted   $ 0.95   $ 0.98      
                   
Average common shares outstanding for Diluted EPS     35,157,647     34,287,779      
                   
(1) Total OTTI charges on securities are summarized as follows for the periods presented:      
Credit component (shown above)   $ -   $ 181      
Non-credit component not included in earnings     -     6      
Total OTTI charges   $ -   $ 187      
                   
                   
                   
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,  
    2013     2013     2012  
                   
Performance Ratios:                        
Reported EPS (Diluted)   $ 0.30     $ 0.34     $ 0.34  
Return on Average Assets     1.07 %     1.20 %     1.21 %
Return on Average Stockholders' Equity     10.19 %     11.93 %     12.32 %
Return on Average Tangible Stockholders' Equity     11.49       13.53       14.05  
Net Interest Spread     3.17       3.34       3.38  
Net Interest Margin     3.35       3.55       3.59  
Non-interest Expense to Average Assets     1.56       1.53       1.62  
Efficiency Ratio     46.38       43.24       43.92  
Effective Tax Rate     40.43       40.10       41.25  
                         
                         
Book Value and Tangible Book Value Per Share:                        
Stated Book Value Per Share   $ 11.57     $ 11.34     $ 10.89  
Tangible Book Value Per Share     10.30       10.06       9.58  
                         
Average Balance Data:                        
Average Assets   $ 3,980,840     $ 4,009,237     $ 3,900,029  
Average Interest Earning Assets     3,782,043       3,803,526       3,716,268  
Average Stockholders' Equity     417,459       403,604       383,032  
Average Tangible Stockholders' Equity     369,982       355,823       335,709  
Average Loans     3,646,845       3,602,249       3,332,417  
Average Deposits     2,623,840       2,615,213       2,395,680  
                         
Asset Quality Summary:                        
Net charge-offs (recoveries)   $ 202     $ 57     $ ( 325 )
Non-performing Loans     8,838       9,507       10,690  
Non-performing Loans/ Total Loans     0.24 %     0.26 %     0.32 %
Nonperforming Assets (1)   $ 9,735     $ 10,987     $ 11,580  
Nonperforming Assets/Total Assets     0.24 %     0.28 %     0.29 %
Allowance for Loan Loss/Total Loans     0.56       0.57       0.62  
Allowance for Loan Loss/Non-performing Loans     232.41       215.65       193.59  
Loans Delinquent 30 to 89 Days at period end   $ 3,763     $ 159     $ 4,322  
                         
Consolidated Tangible Stockholders' Equity to                        
Tangible Assets at period end     9.51 %     9.31 %     8.76 %
                         
Regulatory Capital Ratios (Bank Only):                        
Leverage Capital Ratio     10.24 %     10.27 %     9.83 %
Tier One Risk Based Capital Ratio     13.35       13.20       13.56  
Total Risk Based Capital Ratio     14.07       13.93       14.33  
                         
                         
(1) Amount comprised of total non-accrual loans and the recorded balance of pooled bank trust preferred security investments for which the Bank had not received any contractual payments of interest or principal in over 90 days.  
                   
                   
    For the Nine Months Ended        
    September 30,     September 30,        
    2013     2012        
                   
Performance Ratios:                        
Reported EPS (Diluted)   $ 0.95     $ 0.98          
Return on Average Assets     1.11 %     1.13 %        
Return on Average Stockholders' Equity     10.91 %     11.98 %        
Return on Average Tangible Stockholders' Equity     12.35       13.69          
Net Interest Spread     3.24       3.32          
Net Interest Margin     3.45       3.57          
Non-interest Expense to Average Assets     1.58       1.61          
Efficiency Ratio     45.82       44.05          
Effective Tax Rate     40.31       41.03          
                         
                         
Book Value and Tangible Book Value Per Share:                        
Stated Book Value Per Share   $ 11.57     $ 10.89          
Tangible Book Value Per Share     10.30       9.58          
                         
Average Balance Data:                        
Average Assets   $ 3,978,466     $ 3,965,917          
Average Interest Earning Assets     3,781,782       3,787,299          
Average Stockholders' Equity     406,219       373,559          
Average Tangible Stockholders' Equity     358,740       326,992          
Average Loans     3,585,641       3,389,404          
Average Deposits     2,603,607       2,376,987          
                         
Asset Quality Summary:                        
Net charge-offs (recoveries)   $ 435     $ 3,500          
Non-performing Loans     8,838       10,690          
Non-performing Loans/ Total Loans     0.24 %     0.32 %        
Nonperforming Assets (1)   $ 9,735     $ 11,580          
Nonperforming Assets/Total Assets     0.24 %     0.29 %        
Allowance for Loan Loss/Total Loans     0.56       0.62          
Allowance for Loan Loss/Non-performing Loans     232.41       193.59          
Loans Delinquent 30 to 89 Days at period end   $ 3,763     $ 4,322          
                         
Consolidated Tangible Stockholders' Equity to Tangible Assets at period end     9.51 %     8.76 %        
                         
Regulatory Capital Ratios (Bank Only):                        
Leverage Capital Ratio     10.24 %     9.83 %        
Tier One Risk Based Capital Ratio     13.35       13.56          
Total Risk Based Capital Ratio     14.07       14.33          
                         
                         
                         
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES  
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME  
(Dollars In thousands)  
                 
    For the Three Months Ended  
    September 30, 2013  
              Average  
    Average         Yield/  
    Balance   Interest     Cost  
Assets:                    
  Interest-earning assets:                    
    Real estate loans   $ 3,644,557   $ 42,451     4.66 %
    Other loans     2,288     25     4.37  
    Mortgage-backed securities     35,219     310     3.52  
    Investment securities     29,122     84     1.15  
    Other short-term investments     70,857     416     2.35  
      Total interest earning assets     3,782,043   $ 43,286     4.58 %
  Non-interest earning assets     198,797              
Total assets   $ 3,980,840              
                     
Liabilities and Stockholders' Equity:                    
  Interest-bearing liabilities:                    
    Interest Bearing Checking accounts   $ 88,471   $ 49     0.22 %
    Money Market accounts     1,122,644     1,413     0.50  
    Savings accounts     380,088     48     0.05  
    Certificates of deposit     862,792     3,398     1.56  
      Total interest bearing deposits     2,453,995     4,908     0.79  
  Borrowed Funds     810,191     6,725     3.29  
    Total interest-bearing liabilities     3,264,186   $ 11,633     1.41 %
  Non-interest bearing checking accounts     169,845              
  Other non-interest-bearing liabilities     129,350              
    Total liabilities     3,563,381              
  Stockholders' equity     417,459              
Total liabilities and stockholders' equity   $ 3,980,840              
Net interest income         $ 31,653        
Net interest spread                 3.17 %
Net interest-earning assets   $ 517,857              
Net interest margin                 3.35 %
Ratio of interest-earning assets to interest-bearing liabilities           115.86 %      
                     
Deposits (including non-interest bearing checking accounts)   $ 2,623,840   $ 4,908     0.74 %
                     
SUPPLEMENTAL INFORMATION                    
Loan prepayment and late payment fee income         $ 3,467        
Real estate loans (excluding prepayment and late payment fees)                 4.28 %
Interest earning assets (excluding prepayment and late payment fees)                 4.21 %
Net Interest income (excluding loan prepayment and late payment fees and borrowing prepayment costs)         $ 28,186        
Net Interest margin (excluding loan prepayment and late payment fees and borrowing prepayment costs)                 2.98 %
                     
                 
    For the Three Months Ended  
    June 30, 2013  
              Average  
    Average         Yield/  
    Balance   Interest     Cost  
Assets:                    
  Interest-earning assets:                    
    Real estate loans   $ 3,600,154   $ 44,692     4.97 %
    Other loans     2,095     25     4.77  
    Mortgage-backed securities     39,669     354     3.57  
    Investment securities     29,101     103     1.42  
    Other short-term investments     132,507     462     1.39  
      Total interest earning assets     3,803,526   $ 45,636     4.80 %
  Non-interest earning assets     205,711              
Total assets   $ 4,009,237              
                     
Liabilities and Stockholders' Equity:                    
  Interest-bearing liabilities:                    
    Interest Bearing Checking accounts   $ 92,502   $ 70     0.30 %
    Money Market accounts     1,082,789     1,406     0.52  
    Savings accounts     381,137     64     0.07  
    Certificates of deposit     883,881     3,592     1.63  
      Total interest bearing deposits     2,440,309     5,132     0.84  
  Borrowed Funds     813,565     6,752     3.33  
    Total interest-bearing liabilities     3,253,874   $ 11,884     1.46 %
  Non-interest bearing checking accounts     174,904              
  Other non-interest-bearing liabilities     176,855              
    Total liabilities     3,605,633              
  Stockholders' equity     403,604              
Total liabilities and stockholders' equity   $ 4,009,237              
Net interest income         $ 33,752        
Net interest spread                 3.34 %
Net interest-earning assets   $ 549,652              
Net interest margin                 3.55 %
Ratio of interest-earning assets to interest-bearing liabilities           116.89 %      
                     
Deposits (including non-interest bearing checking accounts)   $ 2,615,213   $ 5,132     0.79 %
                     
SUPPLEMENTAL INFORMATION                    
Loan prepayment and late payment fee income         $ 4,692        
Real estate loans (excluding prepayment and late payment fees)                 4.44 %
Interest earning assets (excluding prepayment and late payment fees)                 4.31 %
Net Interest income (excluding loan prepayment and late payment fees and borrowing prepayment costs)         $ 29,060        
Net Interest margin (excluding loan prepayment and late payment fees and borrowing prepayment costs)                 3.06 %
                     
                 
    For the Three Months Ended  
    September 30, 2012  
              Average  
    Average         Yield/  
    Balance   Interest     Cost  
Assets:                    
  Interest-earning assets:                    
    Real estate loans   $ 3,329,996   $ 45,963     5.52 %
    Other loans     2,421     28     4.63  
    Mortgage-backed securities     86,037     677     3.15  
    Investment securities     97,926     223     0.91  
    Other short-term investments     199,888     582     1.16  
      Total interest earning assets     3,716,268   $ 47,473     5.11 %
  Non-interest earning assets     183,761              
Total assets   $ 3,900,029              
                     
Liabilities and Stockholders' Equity:                    
  Interest-bearing liabilities:                    
    Interest Bearing Checking accounts   $ 93,132   $ 48     0.21 %
    Money Market accounts     850,288     1,155     0.54  
    Savings accounts     365,976     141     0.15  
    Certificates of deposit     935,278     3,958     1.68  
      Total interest bearing deposits     2,244,674     5,302     0.94  
  Borrowed Funds     993,289     8,773     3.51  
    Total interest-bearing liabilities     3,237,963   $ 14,075     1.73 %
  Non-interest bearing checking accounts     151,006              
  Other non-interest-bearing liabilities     128,028              
    Total liabilities     3,516,997              
Stockholders' equity     383,032              
Total liabilities and stockholders' equity   $ 3,900,029              
Net interest income         $ 33,398        
Net interest spread                 3.38 %
Net interest-earning assets   $ 478,305              
Net interest margin                 3.59 %
Ratio of interest-earning assets to interest-bearing liabilities           114.77 %      
                     
Deposits (including non-interest bearing checking accounts)   $ 2,395,680   $ 5,302     0.88 %
                     
SUPPLEMENTAL INFORMATION                    
Loan prepayment and late payment fee income         $ 3,332        
Real estate loans (excluding prepayment and late payment fees)                 5.12 %
Interest earning assets (excluding prepayment and late payment fees)                 4.75 %
Net Interest income (excluding loan prepayment and late payment fees and borrowing prepayment costs)         $ 30,066        
Net Interest margin (excluding loan prepayment and late payment fees and borrowing prepayment costs)                 3.24 %
                     
                     
                     
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,
 
Non-Performing Loans   2013     2013     2012  
  One- to four-family and cooperative apartment   $ 1,136     $ 1,164     $ 1,150  
  Multifamily residential and mixed use residential real estate (1)     1,993       1,688       1,008  
  Mixed use commercial real estate (1)     -       1,150       721  
  Commercial real estate     5,707       5,500       7,805  
  Construction     -       -       -  
  Other     2       5       6  
Total Non-Performing Loans (2)   $ 8,838     $ 9,507     $ 10,690  
Other Non-Performing Assets                        
  Other real estate owned     -       585       -  
  Pooled bank trust preferred securities (3)     897       895       -  
  Non-performing loans held for sale:                     -  
    Mixed use commercial real estate     -       -       -  
    Multifamily residential and mixed use residential real estate     -       -       890  
Total Non-Performing Assets   $ 9,735     $ 10,987     $ 11,580  
                         
Troubled Debt Restructurings ("TDRs") not included in non-performing loans (2)                  
  One- to four-family and cooperative apartment     938       941       290  
  Multifamily residential and mixed use residential real estate (1)     1,899       1,524       2,298  
  Mixed use commercial real estate (1)     711       718       736  
  Commercial real estate     29,570       35,516       39,782  
Total Performing TDRs   $ 33,118     $ 38,699     $ 43,106  
                         
(1) Includes loans underlying cooperatives. While the loans within these categories are often considered "commercial real estate" in nature, they are classified separately in the table above to provide further emphasis of the discrete composition of their underlying real estate collateral.  
                         
(2) 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 $5,707 at September 30, 2013, $5,893 at June 30, 2013 and $8,135 at September 30, 2012, are included in the non-performing loan table, but excluded from the TDR amount shown above.  
   
(3) These assets were deemed non-performing since the Company had, as of the dates indicated, not received any payments of principal or interest on them for a period of at least 90 days.  
                         
                         
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES          
                   
    At
September 30,
    At
June 30,
    At
September 30,
 
    2013     2013     2012  
Total Non-Performing Assets   $ 9,735     $ 10,987     $ 10,690  
Loans 90 days or more past due on accrual status (4)     1,398       974       -  
  TOTAL PROBLEM ASSETS   $ 11,133     $ 11,961     $ 10,690  
                         
Tier One Capital - The Dime Savings Bank of Williamsburgh   $ 404,022     $ 398,710     $ 381,700  
Allowance for loan losses     20,540       20,502       20,694  
  TANGIBLE CAPITAL PLUS RESERVES   $ 424,562     $ 419,212     $ 402,394  
                         
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES     2.6 %     2.9 %     2.7 %
                         
(4) 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