-- Total assets increased by $47.2 million, or 1.5%.
-- Total deposits increased by $93.8 million, or 4.9%.
-- Net interest margin declined 36 basis points.
-- Real estate loan originations totaled $563.2 million, with an average
interest rate of 6.43%.
-- The real estate loan portfolio grew 3.5%, within which the commercial
real estate segment of total real estate loans grew by 16%.
-- Loans sold in the secondary market totaled $145.4 million, with a
weighted average term to the earlier of maturity or next repricing of 12.1
years.
-- The Bank's credit profile remained outstanding, with non-performing
loans approximating 0.13% of total loans.
-- The Company repurchased 777,539 shares into treasury during the year.
-- Tangible equity grew slightly to $241.8 million, while the tangible
equity ratio declined slightly to 7.74% at year-end.
Moving to the fourth quarter, the net interest margin declined 19 basis
points sequentially mainly due to the increase in deposit costs.
Previously, the Company stated its intention to increase the deposit base
as a prelude to growth in 2007. The fourth quarter annualized deposit
growth rate was 16%. New promotional deposits carry a higher rate for a
period of 3 to 6 months. As of December 31, 2006, most of the deposit base
is competitively priced.
Fourth Quarter 2006 Highlights
-- Real estate loan originations were $123.8 million at an average rate
of 6.50%, compared to $174.5 million at an average interest rate of 6.58%
during the third quarter of 2006.
-- Loans in the pipeline approximated $68.9 million at quarter-end,
including commitments for sale to Fannie Mae of $12.2 million.
-- The annualized loan amortization rate fell to 9% compared to 15%
during the previous quarter. Prepayment fee income was $561,000, compared
to $1.3 million in the September 2006 quarter and $786,000 in the December
2005 quarter.
-- Deposits increased by 16% annualized, and linked quarter average cost
of deposits rose from 3.10% to 3.35% during the quarter.
-- Net interest margin was 2.34%, 19 basis points lower sequentially.
-- The Company repurchased 209,332 shares of its common stock. The
consolidated tangible equity ratio fell to 7.74% at December 31, 2006 from
7.88% at September 30, 2006.
-- Quarterly non-interest expense remained relatively constant year-over-
year, and declined by 2% from the September 2006 quarter.
FINANCIAL RESULTS
For the quarter ended December 31, 2006, the Company's pre-tax income,
excluding gains and losses on the sale of assets, was $9.4 million,
compared to $13.7 million in the same quarter of the previous year. The
$4.3 million decrease was due to a decline of $4.4 million in net interest
income.
Average earning assets declined by $18.9 million from the December 2005
quarter to the December 2006 quarter. The net interest margin contracted 57
basis points, from 2.91% during the December 2005 quarter to 2.34% during
the December 2006 quarter.
Pre-tax income, excluding gains and losses on the sale of assets, decreased
from $10.4 million during the September 2006 quarter to $9.4 million during
the December 2006 quarter, primarily due to a decline in net interest
income of $1.2 million. Of this $1.2 million decline, $764,000 resulted
from a reduction in interest expense due to a borrowing restructuring that
occurred during the September quarter. The net interest margin decreased 19
basis points, from 2.53% during the September 2006 quarter to 2.34% in the
December 2006 quarter.
The remaining decline in net interest income from the September 2006
quarter to the December 2006 quarter resulted from a reduction in
prepayment fee income. Prepayment fee income was $561,000 in the quarter
ended December 31, 2006, compared to $1.3 million in the quarter ended
September 30, 2006 and $786,000 in the quarter ended December 31, 2005.
The loan repayment speed declined to 9% in the December 2006 quarter,
compared to 15% in the previous quarter. During the year ended December 31,
2006, annualized loan repayment speed approximated 12%, compared with
speeds of 14% and 24% during the years ended December 31, 2005 and 2004,
respectively.
Excluding prepayment fee income from the calculation of net interest
margin, the margin deteriorated on a linked quarter basis from 2.36% to
2.25% due to an increase of 25 basis points in the average cost of deposits
that resulted from increases in short-term interest rates during 2006.
The yield on interest earning assets decreased 1 basis point on a linked
quarter basis, due solely to the decline in prepayment fee income.
Excluding the effect of prepayment fee income, the yield on interest
earning assets would have increased 9 basis points on a linked quarter
basis, reflecting an increase in yield on the Company's real estate loans
(excluding prepayment fee income), which resulted from interest rate
increases during 2005 and 2006, fourth quarter returns on various equity
investments, and the movement of a greater percentage of total interest
earning assets from securities into real estate loans, a higher yielding
asset category. The average yield on real estate loans, excluding the
effects of prepayment fee income, was 5.72% during the quarter ended
December 31, 2006 and 5.70% during the quarter ended September 30, 2006.
The interest rates on newly originated real estate loans averaged 6.50%
during the fourth quarter of 2006, compared to an average rate on loans
repaid of 6.01% during the period. In addition, during the quarter ended
December 31, 2006, the Company received returns of approximately $500,000,
or 27%, on its approximately $7.0 million in equity investments, which
helped the overall yield on interest earning assets during the period.
Excluding the effects of both prepayment fee income and equity returns, the
yield on interest earning assets increased 2 basis points, from 5.59%
during the September 2006 quarter to 5.61% during the December 2006
quarter.
As a result of promotional activities during the fourth quarter of 2006,
deposits increased $77.8 million, reflecting increases of $40.1 million in
non-certificate (mainly money market) deposits and $37.8 million in
certificates of deposit.
Average deposits per branch approximated $96 million at December 31, 2006,
unchanged from the December 2005 quarter and up from the $92 million
average at September 30, 2006. The loan-to-deposit ratio was 135% at
December 31, 2006, compared to 136% at December 31, 2005 and 137% at
September 30, 2006. The increase in average deposits per branch and the
decrease in the loan-to-deposit ratio during the December 2006 quarter
compared to the September 2006 quarter resulted from the $77.8 million
growth in deposits during the period. Core deposits comprised 47% of total
deposits at both December 31, 2006 and September 30, 2006, core deposits
decreased slightly from the 49% level at December 31, 2005 as a result of
the $86.1 million growth in certificates of deposit from December 31, 2005
through December 31, 2006.
Non-interest income, excluding gains or losses on the sale of assets,
totaled $2.3 million during the quarter ended December 31, 2006, relatively
constant from both the December 2005 and September 2006 quarters.
The Company sold loans to Fannie Mae totaling $5.0 million, $23.2 million
and $92.3 million, recording gains of $84,000, $353,000 and $779,000,
during the quarters ended December 31, 2006, December 31, 2005 and
September 30, 2006, respectively. Each of the loans sold during these
periods was designated for sale upon origination. The loans sold during
the quarter ended December 31, 2006 had a weighted average term to the
earlier of maturity or next repricing of 18.0 years.
Non-interest expense totaled $10.4 million during the quarter ended
December 31, 2006, relatively flat from the December 2005 quarter and down
$240,000, or 2.3%, from the September 2006 quarter.
Non-interest expense to average assets was 1.32% in the December 2006
quarter, compared to 1.30% for the quarter ended December 31, 2005, and
1.37% for the quarter ended September 2006. The decline from the September
2006 quarter to the December 2006 quarter resulted from the $240,000
decrease in non-interest expense during the period.
The effective tax rate was 36.8% for the quarter ended December 31, 2006,
35.9% for the quarter ended September 30, 2006 and 36.2% for the quarter
ended December 31, 2005. The effective tax rate is expected to approximate
36.0% for the year ending December 31, 2007.
REAL ESTATE LENDING AND CREDIT QUALITY
Real estate loan originations totaled $123.8 million during the quarter
ended December 31, 2006. The average rate on total loan originations during
the quarter was 6.50%, compared to 5.98% during the quarter ended December
31, 2005 and 6.58% during the quarter ended September 30, 2006. Commercial
real estate originations, which possess higher interest rates, equaled
$16.0 million, or 13% of total real estate loan originations, during the
December 2006 quarter, compared to $33.3 million, or 19% of total real
estate loan originations, during the quarter ended September 30, 2006.
Commercial real estate represented 25% of the gross loan portfolio at
December 31, 2006, compared with 22% as of December 31, 2005.
Real estate loan prepayment and amortization during the December 2006
quarter approximated 9% of the loan portfolio on an annualized basis, down
from 12% during the December 2005 quarter and 15% during the September 2006
quarter. The average interest rate on real estate loan prepayment and
amortization during the most recent quarter was 6.01%.
Non-performing loans were $3.6 million at December 31, 2006, representing
only 0.13% of total loans.
STOCKHOLDERS' EQUITY AND SHARE REPURCHASE PROGRAM
The Company's total stockholders' equity at December 31, 2006 was $290.6
million, or 9.16% of total assets, compared to $295.7 million, or 9.43% of
total assets, at September 30, 2006. The majority of the decline during the
fourth quarter resulted from a $3.8 million increase in the other
comprehensive loss that resulted from the adoption of a new accounting
standard related to retirement and other defined benefit plans. After
outlays for dividends paid to shareholders and share repurchases, by the
end of 2006 the Company's tangible equity declined slightly to $241.8
million, compared to $243.4 million at September 30, 2006. The quarterly
cash dividend paid in November 2006 represented a payout ratio of 82% of
fourth quarter 2006 earnings. At December 31, 2006, tangible stockholders'
equity was 7.74% of tangible assets and the tangible book value per share
was $6.63.
During the quarter ended December 31, 2006, the return on average
stockholders' equity was 8.1%, the return on average tangible equity was
9.8%, and the cash return on average tangible equity was 10.1%.
During the fourth quarter of 2006, the Company repurchased into treasury
209,332 shares, or 0.6%, of its common stock outstanding at September 30,
2006. As of December 31, 2006, the Company had an additional 1,686,610
shares remaining eligible for repurchase under its eleventh stock
repurchase program, approved in December 2005.
OUTLOOK
At present, the overall yield on the Company's interest-earning assets is
rising (excluding the effects of prepayment fee income). The average yield
on interest earning assets, excluding the effects of prepayment fee income
and fourth quarter 2006 equity returns, rose on a linked quarter basis,
from 5.59% to 5.61%.
The cost of deposits rose from 3.10% during the September 30, 2006 quarter
to 3.35% during the December 2006 quarter. This trend is likely to
continue during the first quarter of 2007. The rising cost of deposits is
due to a combination of repricing lower rate deposits already on the books,
plus the cost of attracting new deposits.
Prepayment and amortization rates, which approximated 12% during 2006, are
expected to remain in the 10% to 12% range during 2007. At December 31,
2006, the real estate loan commitment pipeline approximated $68.9 million,
with a weighted average interest rate of 6.36%, including $12.2 million of
loan commitments intended for sale to Fannie Mae.
Operating expenses are expected to be approximately $10.9 million in the
first quarter of 2007. Share repurchases are expected to be in line with
recent practices. The Company is positioned, however, to be opportunistic
in the purchase of its own shares should conditions warrant. Based on this
outlook, the Company now expects first quarter 2007 earnings per diluted
share to be in the range of $0.15 to $0.17.
Mr. Palagiano stated, "It appears that deposit costs are leveling off,
barring any additional Fed tightening. With a strong capital base and a
low level of nonperforming assets, we continue to preserve future
profitability without accepting undue risk to our asset quality."
ABOUT DIME COMMUNITY BANCSHARES
Dime Community Bancshares, Inc. (
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
December 31,
2006 December 31,
(Unaudited) 2005
----------- -----------
ASSETS:
Cash and due from banks $ 26,264 $ 40,199
Investment securities held to maturity 235 455
Investment securities available for sale 29,548 44,832
Mortgage-backed securities available for sale 154,437 193,453
Federal funds sold and other short-term assets 78,752 60,014
Real Estate Loans:
One-to-four family and cooperative apartment 153,847 145,754
Multifamily and underlying cooperative 1,855,106 1,873,940
Commercial real estate 666,927 576,561
Construction and land acquisition 23,340 12,098
Unearned discounts and net deferred loan fees 1,048 501
----------- -----------
Total real estate loans 2,700,268 2,608,854
----------- -----------
Other loans 2,205 2,341
Allowance for loan losses (15,514) (15,785)
----------- -----------
Total loans, net 2,686,959 2,595,410
----------- -----------
Loans held for sale 1,200 900
Premises and fixed assets, net 22,886 16,527
Federal Home Loan Bank of New York capital stock 31,295 29,917
Goodwill 55,638 55,638
Other assets 86,163 88,881
----------- -----------
TOTAL ASSETS $ 3,173,377 $ 3,126,226
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Checking, NOW and Super NOW $ 130,734 $ 135,698
Savings 298,522 335,527
Money Market 514,607 464,962
----------- -----------
Sub-total 943,863 936,187
----------- -----------
Certificates of deposit 1,064,669 978,585
----------- -----------
Total Due to Depositors 2,008,532 1,914,772
----------- -----------
Escrow and other deposits 46,373 47,518
Securities sold under agreements to repurchase 120,235 205,455
Federal Home Loan Bank of New York advances 571,500 531,500
Subordinated Notes Sold 25,000 25,000
Trust Preferred Notes Payable 72,165 72,165
Other liabilities 38,941 38,102
----------- -----------
TOTAL LIABILITIES 2,882,746 2,834,512
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 50,862,867 shares and 50,633,881
shares issued at December 31, 2006 and December
31, 2005, respectively, and 36,456,354 shares
and 36,956,907 shares outstanding at December
31, 2006 and December 31, 2005, respectively) 509 506
Additional paid-in capital 206,601 204,083
Retained earnings 285,420 274,579
Unallocated common stock of Employee Stock
Ownership Plan (4,395) (4,627)
Unearned common stock of Recognition and
Retention Plan (3,452) (2,979)
Common stock held by the Benefit Maintenance Plan (7,941) (7,941)
Treasury stock (14,406,513 shares and 13,676,974
shares at December 31, 2006 and December 31,
2005, respectively) (179,011) (168,579)
Accumulated other comprehensive loss, net (7,100) (3,328)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 290,631 291,714
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,173,377 $ 3,126,226
=========== ===========
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
December 31, September 30, December 31,
------------ ----------- ------------
2006 2006 2005
------------ ----------- ------------
Interest income:
Loans secured by real estate $ 38,705 $ 39,122 $ 37,765
Other loans 49 47 40
Mortgage-backed securities 1,586 1,666 1,929
Investment securities 872 454 640
Other 1,921 1,384 1,684
------------ ----------- ------------
Total interest income 43,133 42,673 $ 42,058
------------ ----------- ------------
Interest expense:
Deposits and escrow 16,590 15,019 10,802
Borrowed funds 9,071 8,948 9,327
------------ ----------- ------------
Total interest expense 25,661 23,967 20,129
------------ ----------- ------------
Net interest income 17,472 18,706 21,929
Provision for loan losses 60 60 160
------------ ----------- ------------
Net interest income after
provision for loan losses 17,412 18,646 21,769
------------ ----------- ------------
Non-interest income:
Service charges and other fees 1,525 1,507 1,484
Net gain (loss) on sales and
redemptions of assets 84 779 353
Other 793 849 771
------------ ----------- ------------
Total non-interest income 2,402 3,135 2,608
------------ ----------- ------------
Non-interest expense:
Compensation and benefits 5,753 6,006 5,659
Occupancy and equipment 1,466 1,504 1,391
Core deposit intangible
amortization - - -
Other 3,161 3,110 3,265
------------ ----------- ------------
Total non-interest expense 10,380 10,620 10,315
------------ ----------- ------------
Income before taxes 9,434 11,161 14,062
Income tax expense 3,469 4,002 5,083
------------ ----------- ------------
Net Income $ 5,965 $ 7,159 $ 8,979
============ =========== ============
Earnings per Share:
Basic $ 0.17 $ 0.21 $ 0.26
============ =========== ============
Diluted $ 0.17 $ 0.20 $ 0.25
============ =========== ============
Average common shares outstanding
for Diluted EPS 34,873,327 35,028,903 35,303,451
For the Year Ended
December 31, December 31,
------------ -----------
2006 2005
------------ -----------
Interest income:
Loans secured by real estate $ 155,510 $ 148,442
Other loans 190 214
Mortgage-backed securities 6,850 11,699
Investment securities 2,277 2,602
Other 5,983 6,755
------------ -----------
Total interest income 170,810 169,712
------------ -----------
Interest expense:
Deposits and escrow 56,659 41,058
Borrowed funds 36,681 36,283
------------ -----------
Total interest expense 93,340 77,341
------------ -----------
Net interest income 77,470 92,371
Provision for loan losses 240 340
------------ -----------
Net interest income after
provision for loan losses 77,230 92,031
------------ -----------
Non-interest income:
Service charges and other fees 5,985 5,967
Net gain (loss) on sales and
redemptions of assets 3,057 (4,252)
Other 3,348 3,436
------------ -----------
Total non-interest income 12,390 5,151
------------ -----------
Non-interest expense:
Compensation and benefits 23,432 22,949
Occupancy and equipment 5,762 5,393
Core deposit intangible
amortization - 48
Other 12,782 12,352
------------ -----------
Total non-interest expense 41,976 40,742
------------ -----------
Income before taxes 47,644 56,440
Income tax expense 17,052 20,230
------------ -----------
Net Income $ 30,592 $ 36,210
============ ===========
Earnings per Share:
Basic $ 0.88 $ 1.03
============ ===========
Diluted $ 0.87 $ 1.02
============ ===========
Average common shares outstanding
for Diluted EPS 35,118,128 35,560,446
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
Core Earnings and Core Cash Earnings Reconciliations
(Dollars In thousands except per share amounts)
Core earnings and related data are "Non-GAAP Disclosures." These
disclosures present information which management considers useful to the
readers of this report since they present a measure of the results of the
Company's ongoing operations (exclusive of significant non-recurring items
such as gains or losses on sales of investment or mortgage-backed
securities) during the period.
Core cash earnings and related data are also "Non-GAAP Disclosures."
These disclosures present information which management considers useful to
the readers of this report since they present a measure of the tangible
equity generated from operations during each period presented. Tangible
equity is derived from stockholders' equity, with various adjustment items
that are based upon standards of the Company's primary regulator, the
Office of Thrift Supervision. Tangible equity generation is a significant
financial measure since banks are subject to regulatory requirements
involving the maintenance of minimum tangible capital levels. A
reconciliation between GAAP and tangible equity can be found in the
Company's audited financial statements for the year ended December 31,
2005.
The following tables present a reconciliation of GAAP net income and
both core earnings and core cash earnings, as well as financial performance
ratios determined based upon core earnings and core cash earnings, for each
of the periods presented:
For the Three Months Ended
-------------------------------------
December 31, September 30, December 31,
2006 2006 2005
----------- ----------- -----------
Net income as reported $ 5,965 $ 7,159 $ 8,979
Pre-tax net (gain) loss on sale of
securities and other assets -
Pre-tax income from borrowings
restructuring - (764) -
Tax effect of adjustments - 271 -
----------- ----------- -----------
Core Earnings $ 5,965 $ 6,666 $ 8,979
----------- ----------- -----------
Cash Earnings Additions :
Core Deposit Intangible Amortization - - -
Non-cash stock benefit plan expense 183 342 260
----------- ----------- -----------
Core Cash Earnings $ 6,148 $ 7,008 $ 9,239
----------- ----------- -----------
Performance Ratios (Based upon Core
Cash Earnings):
Core Cash EPS (Diluted) $ 0.18 $ 0.20 $ 0.26
Core Cash Return on Average Assets 0.78% 0.90% 1.17%
Core Cash Return on Average Tangible
Stockholders' Equity 10.13% 11.55% 15.57%
For the Year Ended
------------------------
December 31, December 31,
2006 2005
----------- -----------
Net income as reported $ 30,592 $ 36,210
Pre-tax net (gain) loss on sale of
securities and other assets (1,542) 5,176
Pre-tax income from borrowings
restructuring (807) -
Tax effect of adjustments 839 (2,143)
----------- -----------
Core Earnings $ 29,082 $ 39,243
----------- -----------
Cash Earnings Additions :
Core Deposit Intangible Amortization - 48
Non-cash stock benefit plan expense 1,250 1,314
----------- -----------
Core Cash Earnings $ 30,332 $ 40,605
----------- -----------
Performance Ratios (Based upon Core
Cash Earnings):
Core Cash EPS (Diluted) $ 0.86 $ 1.14
Core Cash Return on Average Assets 0.97% 1.24%
Core Cash Return on Average Tangible
Stockholders' Equity 12.57% 17.40%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
----------------------------------------
December 31, September 30, December 31,
2006 2006 2005
------------ ------------ ------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.17 $ 0.20 $ 0.25
Return on Average Assets 0.76% 0.92% 1.13%
Return on Average Stockholders'
Equity 8.11% 9.73% 12.38%
Return on Average Tangible
Stockholders' Equity 9.83% 11.80% 15.13%
Net Interest Spread 1.91% 2.16% 2.59%
Net Interest Margin 2.34% 2.53% 2.91%
Non-interest Expense to Average
Assets 1.32% 1.37% 1.30%
Efficiency Ratio 52.45% 50.42% 42.65%
Effective Tax Rate 36.77% 35.86% 36.15%
Performance Ratios (Based upon
Core Earnings):
Core EPS (Diluted) $ 0.17 $ 0.19 $ 0.25
Core Return on Average Assets 0.76% 0.86% 1.13%
Core Return on Average
Stockholders' Equity 8.11% 9.06% 12.38%
Core Return on Average Tangible
Stockholders' Equity 9.83% 10.99% 15.13%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 7.97 $ 8.07 $ 7.89
Tangible Book Value Per Share 6.63 6.64 6.47
Average Balance Data:
Average Assets $ 3,145,446 $ 3,107,482 $ 3,166,725
Average Interest Earning Assets 2,992,771 2,960,468 3,011,695
Average Stockholders' Equity 294,385 294,305 290,077
Average Tangible Stockholders'
Equity 242,652 242,658 237,426
Average Loans 2,662,497 2,656,014 2,598,204
Average Deposits 1,963,369 1,920,061 1,949,438
Asset Quality Summary:
Net charge-offs (recoveries) $ 8 $ 0 $ 61
Nonperforming Loans 3,606 2,889 958
Nonperforming Loans/ Total Loans 0.13% 0.11% 0.04%
Nonperforming Assets/Total Assets 0.11% 0.09% 0.03%
Allowance for Loan Loss/Total
Loans 0.57% 0.60% 0.60%
Allowance for Loan
Loss/Nonperforming Loans 430.23% 552.30% 1647.70%
Regulatory Capital Ratios:
Consolidated Tangible Equity to
Tangible Assets at period end 7.74% 7.88% 7.78%
Tangible Capital Ratio (Bank
Only) 9.05% 9.64% 9.84%
Leverage Capital Ratio (Bank
Only) 9.05% 9.64% 9.84%
Risk Based Capital Ratio (Bank
Only) 12.61% 13.61% 14.30%
For the Year Ended
December 31, December 31,
2006 2005
------------ ------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.87 $ 1.02
Return on Average Assets 0.98% 1.11%
Return on Average Stockholders'
Equity 10.43% 12.65%
Return on Average Tangible
Stockholders' Equity 12.68% 15.51%
Net Interest Spread 2.19% 2.66%
Net Interest Margin 2.60% 2.96%
Non-interest Expense to Average
Assets 1.34% 1.24%
Efficiency Ratio 48.36% 40.03%
Effective Tax Rate 35.79% 35.84%
Performance Ratios (Based upon
Core Earnings):
Core EPS (Diluted) $ 0.83 $ 1.10
Core Return on Average Assets 0.93% 1.20%
Core Return on Average
Stockholders' Equity 9.92% 13.71%
Core Return on Average Tangible
Stockholders' Equity 12.05% 16.81%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 7.97 $ 7.89
Tangible Book Value Per Share 6.63 6.47
Average Balance Data:
Average Assets $ 3,126,640 $ 3,276,547
Average Interest Earning Assets 2,978,147 3,125,782
Average Stockholders' Equity 293,199 286,162
Average Tangible Stockholders'
Equity 241,301 233,404
Average Loans 2,651,601 2,535,574
Average Deposits 1,931,561 2,080,695
Asset Quality Summary:
Net charge-offs (recoveries) $ 27 $ 45
Nonperforming Loans 3,606 958
Nonperforming Loans/ Total Loans 0.13% 0.04%
Nonperforming Assets/Total Assets 0.11% 0.03%
Allowance for Loan Loss/Total
Loans 0.57% 0.60%
Allowance for Loan
Loss/Nonperforming Loans 430.23% 1647.70%
Regulatory Capital Ratios:
Consolidated Tangible Equity to
Tangible Assets at period end 7.74% 7.78%
Tangible Capital Ratio (Bank
Only) 9.05% 9.84%
Leverage Capital Ratio (Bank
Only) 9.05% 9.84%
Risk Based Capital Ratio (Bank
Only) 12.61% 14.30%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
--------------------------------
December 31, 2006
-------------------------------
Average
Average Yield/
Balance Interest Cost
---------- ---------- ---------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $ 2,660,517 $ 38,705 5.82%
Other loans 1,980 49 9.90
Mortgage-backed securities 163,072 1,586 3.89
Investment securities 29,678 872 11.75
Other short-term investments 137,524 1,921 5.59
---------- ---------- ---------
Total interest earning assets 2,992,771 $ 43,133 5.76%
---------- ----------
Non-interest earning assets 152,675
----------
Total assets $3,145,446
==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 34,069 $ 92 1.07%
Money Market accounts 491,946 4,152 3.35
Savings accounts 301,348 442 0.58
Certificates of deposit 1,042,809 11,904 4.53
---------- ---------- ---------
Total interest bearing
deposits 1,870,172 16,590 3.52
Borrowed Funds 771,152 9,071 4.67
---------- ---------- ---------
Total interest-bearing
liabilities 2,641,324 25,661 3.85%
---------- ----------
Checking accounts 93,197
Other non-interest-bearing
liabilities 116,540
----------
Total liabilities 2,851,061
Stockholders' equity 294,385
----------
Total liabilities and stockholders'
equity $3,145,446
==========
Net interest income $ 17,472
==========
Net interest spread (1) 1.91%
=========
Net interest-earning assets $ 351,447
==========
Net interest margin (1) 2.34%
=========
Ratio of interest-earning assets to
interest-bearing liabilities 113.31%
=========
Average deposits (including
non-interest bearing checking
accounts) $1,963,369 $ 16,590 3.35%
For the Three Months Ended
September 30, 2006
-------------------------------
Average
Average Yield/
Balance Interest Cost
---------- ---------- ---------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $2,654,055 $ 39,122 5.90%
Other loans 1,959 47 9.60
Mortgage-backed securities 172,116 1,666 3.87
Investment securities 31,406 454 5.78
Other short-term investments 100,932 1,384 5.48
---------- ---------- ---------
Total interest earning assets 2,960,468 $ 42,673 5.77%
---------- ----------
Non-interest earning assets 147,014
----------
Total assets $3,107,482
==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 33,814 $ 85 1.00%
Money Market accounts 455,629 3,228 2.81
Savings accounts 312,891 493 0.63
Certificates of deposit 1,023,738 11,213 4.35
---------- ---------- ---------
Total interest bearing
deposits 1,826,072 15,019 3.26
Borrowed Funds 808,278 8,948 4.39
---------- ---------- ---------
Total interest-bearing
liabilities 2,634,350 23,967 3.61%
---------- ----------
Checking accounts 93,989
Other non-interest-bearing
liabilities 84,838
----------
Total liabilities 2,813,177
Stockholders' equity 294,305
----------
Total liabilities and stockholders'
equity $3,107,482
==========
Net interest income $ 18,706
==========
Net interest spread (1) 2.16%
=========
Net interest-earning assets $ 326,118
==========
Net interest margin (1) 2.53%
=========
Ratio of interest-earning assets to
interest-bearing liabilities 112.38%
=========
Average deposits (including
non-interest bearing checking
accounts) $1,920,061 $ 15,019 3.10%
For the Three Months Ended
December 31, 2005
-------------------------------
Average
Average Yield/
Balance Interest Cost
---------- ---------- ---------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $2,595,998 $ 37,765 5.82%
Other loans 2,206 40 7.25
Mortgage-backed securities 204,259 1,929 3.78
Investment securities 49,363 640 5.19
Other short-term investments 159,869 1,684 4.21
---------- ---------- ---------
Total interest earning assets 3,011,695 $ 42,058 5.59%
---------- ----------
Non-interest earning assets 155,030
----------
Total assets $3,166,725
==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 38,899 $ 98 1.00%
Money Market accounts 481,385 1,902 1.57
Savings accounts 338,698 474 0.56
Certificates of deposit 995,793 8,328 3.32
---------- ---------- ---------
Total interest bearing
deposits 1,854,775 10,802 2.31
Borrowed Funds 808,429 9,327 4.58
---------- ---------- ---------
Total interest-bearing
liabilities 2,663,204 20,129 3.00%
---------- ----------
Checking accounts 94,663
Other non-interest-bearing
liabilities 118,781
----------
Total liabilities 2,876,648
Stockholders' equity 290,077
----------
Total liabilities and stockholders'
equity $3,166,725
==========
Net interest income $ 21,929
==========
Net interest spread (1) 2.59%
=========
Net interest-earning assets $ 348,491
==========
Net interest margin (1) 2.91%
=========
Ratio of interest-earning assets to
interest-bearing liabilities 113.09%
=========
Average deposits (including
non-interest bearing checking
accounts) $1,949,438 $ 10,802 2.20%
Contact Information: Contact: Kenneth Ceonzo Director of Investor Relations 718-782-6200 extension 8279