-- Real estate loan originations totaled $179.2 million, with an average
interest rate of 5.74%.
-- The loan portfolio grew at a 12% annualized rate.
-- Loan sales to Fannie Mae totaled $15.7 million.
-- The annualized loan amortization rate decreased slightly to 14% from
15% sequentially.
-- Total assets declined by 2.9% sequentially.
-- Net interest margin was 2.75%, twelve basis points lower sequentially.
-- Non-interest expenses increased 2% sequentially while decreasing 6%
year-over-year.
-- The Company repurchased 197,100 shares into treasury during the
quarter.
"Several items contributed to the better than expected operating results in
the second quarter," said Vincent F. Palagiano, Chairman and Chief
Executive Officer. "These included higher than planned prepayment fee
income, a higher than expected yield on assets, and a lower than expected
cost of deposits. In addition, the sale of almost half of our investment
and mortgage-backed securities portfolio during the quarter provides us
with the liquidity to fund future loan originations at significantly higher
yields. This transaction also improved the Company's interest rate risk
profile."
Mr. Palagiano further noted, "We are also very close to signing the lease
for a new branch in Nassau County, within our existing footprint on the
south shore of Long Island, a proven demographic area for our deposit
gathering model. The opening of this branch is being undertaken as we look
ahead to a more favorable operating environment."
FINANCIAL RESULTS
For the quarter ended June 30, 2005, the Company's pre-tax income,
excluding the $5.2 million pre-tax loss on the sale of investment and
mortgage-backed securities, was $16.2 million, compared to $20.0 million in
the same quarter of the previous year. This $3.8 million decrease was
primarily due to decreases of $1.9 million in net interest income and $2.5
million in non-interest income, partially offset by a decrease of $619,000
in non-interest expense. Average earning assets declined by $100 million
year-over-year and the net interest margin contracted 15 basis points from
2.90% during the June 2004 quarter to 2.75% during the June 2005 quarter.
The decline in non-interest income reflected a decline of $2.5 million in
prepayment fees. The decrease of $619,000 in non-interest expense was due
mainly to lower expenses in various Company benefits plans and to the
cessation of quarterly charges related to the amortization of a core
deposit premium paid on an earlier acquisition.
On a linked quarter basis, the Company's pre-tax income, excluding the $5.2
million pre-tax loss on the sale of investment and mortgage-backed
securities, decreased $1.0 million from $17.2 million in the March 2005
quarter, to $16.2 million in the June 2005 quarter primarily due to a
decline in net interest income of $1.0 million during the period. Net
interest margin declined 12 basis points to 2.75% during the June 2005
quarter from 2.87% in the March 2005 quarter. The decline was tempered by
an increase in the average yield on interest earning assets of 5 basis
points, a sign that asset yields have stabilized The average yield on
real estate loans, the largest component of interest earning assets,
expanded by 2 basis points sequentially to 5.64%.
Average deposits per branch approximated $104 million at June 30, 2005,
lower than the $117 million average at June 30, 2004, and the $108 million
average at March 31, 2005. The loan-to-deposit ratio was 122% at June 30,
2005, compared to 104% at June 30, 2004, and 114% at March 31, 2005. Core
deposits comprised 53% of total deposits at June 30, 2005, compared to 58%
at June 30, 2004, and 56% at March 31, 2005. Not unexpectedly, a component
of traditional CD money which resided in core deposits while interest rates
were historically low, is now migrating back to CD's, especially in the
current competitive deposit rate environment.
Over the past twelve months, while balance sheet growth has been
restrained, the Bank did not aggressively compete for deposits.
Promotional rate accounts declined as a percentage of total deposits from
31.5% to 24.6%, as of June 30, 2004 and 2005, respectively, accounting for
most of the 11% decline in deposits over that period. This change in
proportion has helped minimize overall net interest margin contraction
because the cost of deposits component has risen only modestly, by 17 basis
points, from 1.75% to 1.92%, during the quarters ended June 30, 2004 and
June 30, 2005, respectively.
Non-interest income, excluding gains or losses on the sale of assets,
totaled $4.1 million during the quarter ended June 30, 2005, compared to
$6.5 million in the quarter ended June 30, 2004, and $3.9 million in the
quarter ended March 31, 2005. The variances resulted primarily from
prepayment fee income, which totaled $1.3 million in the quarter ended June
30, 2005, $3.8 million in the quarter ended June 30, 2004, and $1.6 million
in the quarter ended March 31, 2005.
The Company recorded a net gain of $152,000 on the sale of $15.7 million in
loans to Fannie Mae during the quarter ended June 30, 2005. The Company
recorded net gains of $207,000 on the sale of $26.8 million in loans to
Fannie Mae during the quarter ended June 30, 2004, and $135,000 on the sale
of $24.4 million in loans to Fannie Mae during the quarter ended March 31,
2005. Retail banking fee income and loan administration fee income
increased $129,000 and $214,000, respectively, during the most recent
quarter, contributing to the sequential quarterly increase in non-interest
income.
As mentioned previously, the Company recorded a pre-tax loss of $5.2
million on the sale of $276 million of investment and mortgage-backed
securities. There were no gains or losses recorded on sales of securities
during the quarters ended June 30, 2004 and March 31, 2005.
Non-interest expense totaled $9.9 million during the quarter ended June 30,
2005, a decrease of $619,000, or 6%, from the prior year quarter, and an
increase of $175,000, or 2%, sequentially. During the June 2005 quarter
compared to the June 2004 quarter, cost savings of $492,000 were realized
from adjustments made to various benefit plans. In addition, the core
deposit premium associated with deposits acquired as a result of a 1999
acquisition became fully amortized as of January 2005, reducing
non-interest expense by $206,000 during the June 30, 2005, quarter. The
linked quarter increase in expense is a result of additional Sarbanes-Oxley
related expenses of $168,000. At the beginning of the fiscal year, the
Company budgeted for an increase in on-going audit costs due mainly to the
increased audit cost of complying with Sarbanes-Oxley, however, the
$130,000 incurred in June was a one-time charge related to the 2004 audit
engagement.
The Company's efficiency ratio for the quarter ended June 30, 2005, was
38.2% as compared to 34.7% in the year ago quarter and 36.3% in the quarter
ended March 31, 2005.
The effective tax rate was 33.9% for the quarter ended June 30, 2005, and
36.8% for the quarter ended March 31, 2005. The decline from the previous
quarter resulted from the tax impact of the loss recorded from the sale of
investment and mortgage-backed securities during the quarter. The effective
tax rate is expected to approximate 36.0% for the full year ending December
31, 2005.
Mr. Palagiano concluded, "We are pleased with the progress we've made so
far in navigating through this stage of the business cycle. Despite the
market pressures on both the asset and liability sides of our balance
sheet, we are pleased with our results and our strong financial position.
The Company's returns on equity continue to remain firmly in the double
digits, even as equity continues to grow. We remain confident in our
ability to achieve future growth as we expand our business into such other
closely related areas as commercial real estate and small mixed-use
lending. Under all conditions, we remain intent on protecting the long term
financial health and integrity of the institution that we have built."
The Company's tangible capital ratio has now reached 7.2%, and tangible
book value per share is $6.28, an increase of 5.7% since June 30, 2004.
During the same period, the Company has repurchased nearly one million
shares, or 2.6%, of common stock outstanding since June 30, 2004. The
dividend payout ratio last quarter was 46%.
REAL ESTATE LENDING AND CREDIT QUALITY
Real estate loan originations totaled $179.2 million during the quarter
ended June 30, 2005, of which $49.5 million, or 28%, represented pure
commercial real estate. The average rate on total loan originations during
the quarter was 5.74%, compared to 4.80% in the quarter ended June 30,
2004, and 5.49% realized during the quarter ended March 31, 2005. Pure
commercial real estate now represents 12.3% of the gross loan portfolio,
compared with 9.7% as of June 30, 2004. Real estate loan prepayment and
amortization during the June 2005 quarter approximated 14% of the loan
portfolio on an annualized basis, compared to 35% during the June 2004
quarter and 15% during the March 2005 quarter.
For the first six months of 2005 total real estate loan originations were
$294.3 million with an average rate of 5.64%. The real estate loan
prepayment and amortization rate was 15% for the first six months of the
year.
At June 30, 2005, the multifamily and mixed use loan commitment pipeline
approximated $111.9 million, including loan commitments intended for sale
to Fannie Mae of $20.2 million. The average rate on the commitment pipeline
is 5.86%.
The Bank continued its solid credit quality performance during the most
recent quarter. Non-performing loans were $5.0 million at June 30, 2005,
representing 0.15% of total assets. Since June 30, 2005, the Company has
resolved several of these loans without incurring any loss.
STOCKHOLDERS EQUITY & SHARE REPURCHASE PROGRAM
The Company's total stockholders' equity at June 30, 2005, was $287.5
million, or 8.78% of total assets, compared to $269.5 million, or 7.77% of
total assets at June 30, 2004. Tangible stockholders' equity was $233.2
million at quarter end, equal to 7.24% of tangible assets, compared to
$221.7 million, or 6.47% of tangible assets at June 30, 2004.
Excluding the loss recorded on the sale of securities during the second
quarter of 2005, the return on average stockholders' equity was 14.4%, the
return on tangible equity was 17.7% and the cash return on average tangible
equity (which management considers the best measurement of the Company's
internal capital generation), was 18.3%.
During the June 2005 quarter, the Company repurchased 197,100 shares of its
common stock into treasury. As of June 30, 2005, the Company had an
additional 1.0 million shares remaining eligible for repurchase under its
tenth stock repurchase program, approved in May 2004.
OUTLOOK
At this point in the cycle, the Company is optimistic that yields on the
asset side of its balance sheet are beginning to rise. The average yield
on interest earning assets rose on a linked quarter basis, from 5.11% to
5.16%. The average yield on real estate loans rose by 2 basis points
during the quarter from 5.62% to 5.64%. The average yield on new loans
originated during the quarter was 5.74%, above the current portfolio rate.
The average yield on loans in the pipeline is 5.86%, also above the current
portfolio rate. Furthermore, as a result of the aforementioned securities
portfolio restructuring, the Company has over $225 million of short-term
investments, equaling approximately 7% of earning assets, tied closely to
overnight rates. However, because asset yields are not yet rising as far
or as fast as liability costs, further net interest margin contraction is
expected over the near term.
Management's expectation is that the Federal Reserve will continue to raise
the Fed Funds rate at a measured pace, as it has consistently announced.
As the Federal Reserve moves closer to a point that it considers Fed Funds
to be 'neutral,' and new loan yields provide a reasonable spread, the
Company will be more inclined to accelerate balance sheet growth.
At 14%, prepayment and amortization rates continue to be within the range
previously discussed by management and are expected to remain near that
level for the balance of the year. While there is potential to increase
interest income by converting balance sheet liquidity to loans, there
appears to be enough current liquidity to meet existing loan origination
needs for the coming quarter. Under these assumptions, the Company now
expects third quarter earnings per share will be in the range of $0.24 -
$0.26 cents.
CONFERENCE CALL
Management will conduct a conference call at 11:30 A.M. Eastern Time, on
Thursday, July 21, 2005, to discuss the Company's operating performance for
the quarterly period ended June 30, 2005.
The conference call will also be available via the Internet by accessing
the following Web address: www.dsbwdirect.com or www.vcall.com. Web users
should go to the site at least fifteen minutes prior to the call to
register, download and install any necessary audio software. The webcast
will be available until August 21, 2005.
ABOUT DIME COMMUNITY BANCSHARES
Dime Community Bancshares, Inc., a unitary thrift holding company, is the
parent company of The Dime Savings Bank of Williamsburgh, Brooklyn, New
York, founded in 1864. With $3.27 billion in assets as of June 30, 2005,
the Bank has twenty branches located throughout Brooklyn, Queens, the Bronx
and Nassau County, New York. More information on the Company and Bank can
be found on the Bank's Internet website at www.dimedirect.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 the Bank; 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
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
June 30,
2005 December 31,
(Unaudited) 2004
--------- ---------
ASSETS:
Cash and due from banks $29,276 $26,581
Investment securities
held to maturity 520 585
Investment securities
available for sale 70,379 54,840
Mortgage-backed securities
held to maturity - 465
Mortgage-backed securities
available for sale 226,736 519,420
Federal funds sold and
other short-term assets 225,852 103,291
Real estate Loans:
One-to-four family and
cooperative apartment 140,255 138,125
Multi-family and underlying
cooperative 1,890,886 1,916,118
Commercial real estate 502,968 424,060
Construction and land
acquisition 13,184 15,558
Unearned discounts and
net deferred loan fees (16) (463)
--------- ---------
Total real estate loans 2,547,277 2,493,398
--------- ---------
Other loans 2,596 2,916
Allowance for loan losses (15,534) (15,543)
--------- ---------
Total loans, net 2,534,339 2,480,771
--------- ---------
Loans held for sale 3,433 5,491
Premises and fixed assets, net 16,526 16,652
Federal Home Loan Bank
of New York capital stock 25,325 25,325
Goodwill 55,638 55,638
Other assets 85,434 88,207
--------- ---------
TOTAL ASSETS $ 3,273,458 $ 3,377,266
========= =========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Checking and NOW $134,854 $138,402
Savings 353,396 362,656
Money Market 618,603 749,040
--------- ---------
Sub-total 1,106,853 1,250,098
--------- ---------
Certificates of deposit 978,489 959,951
--------- ---------
Total Due to depositors 2,085,342 2,210,049
--------- ---------
Escrow and other deposits 56,736 48,284
Securities sold under
agreements to repurchase 205,520 205,584
Federal Home Loan Bank
of New York advances 506,500 506,500
Subordinated Notes Sold 25,000 25,000
Trust Preferred Notes Payable 72,165 72,165
Other liabilities 34,668 27,963
--------- ---------
TOTAL LIABILITIES 2,985,931 3,095,545
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par,
125,000,000 shares authorized,
50,400,844 shares and
50,111,988 shares issued
at June 30, 2005 and
December 31, 2004, respectively,
and 37,143,454 shares and
37,165,740 shares outstanding at
June 30, 2005 and December 31, 2004,
respectively) 503 501
Additional paid-in capital 200,207 198,183
Retained earnings 266,419 258,237
Unallocated common stock
of Employee Stock Ownership Plan (4,702) (4,749)
Unearned common stock of
Recognition and Retention Plan (3,094) (2,612)
Common stock held by the
Benefit Maintenance Plan (7,941) (7,348)
Treasury stock (13,257,390
shares and 12,946,248 shares
at June 30, 2005 and
December 31, 2004, respectively) (162,348) (157,263)
Accumulated other
comprehensive loss, net (1,517) (3,228)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 287,527 281,721
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $3,273,458 $3,377,266
========= =========
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
For the Three Months Ended
June 30, March 31, June 30,
2005 2005 2004
---------- ---------- ----------
Interest income:
Loans secured by real estate $ 35,261 $ 34,848 $ 34,450
Other loans 27 32 60
Mortgage-backed securities 3,270 4,490 6,146
Investment securities 755 606 375
Other 1,887 954 386
---------- ---------- ----------
Total interest income 41,200 40,930 41,417
---------- ---------- ----------
Interest expense:
Deposits and escrow 10,185 9,381 10,242
Borrowed funds 9,077 8,573 7,301
---------- ---------- ----------
Total interest expense 19,262 17,954 17,543
---------- ---------- ----------
Net interest income 21,938 22,976 23,874
Provision for loan losses 60 60 60
---------- ---------- ----------
Net interest income after
provision for loan losses 21,878 22,916 23,814
---------- ---------- ----------
Non-interest income:
Service charges and other fees 1,514 1,408 1,742
Net (loss) gain on sales and
redemptions of assets (5,024) 135 207
Prepayment fee income 1,338 1,585 3,835
Other 1,202 926 948
---------- ---------- ----------
Total non-interest income (970) 4,054 6,732
---------- ---------- ----------
Non-interest expense:
Compensation and benefits 5,625 5,607 6,178
Occupancy and equipment 1,277 1,336 1,253
Core deposit intangible
amortization - 48 206
Other 3,031 2,767 2,915
---------- ---------- ----------
Total non-interest expense 9,933 9,758 10,552
---------- ---------- ----------
Income before taxes 10,975 17,212 19,994
Income tax expense 3,717 6,341 7,588
---------- ---------- ----------
Net Income $ 7,258 $ 10,871 $ 12,406
========== ========== ==========
Earnings per Share:
Basic $ 0.21 $ 0.31 $ 0.35
========== ========== ==========
Diluted $ 0.20 $ 0.30 $ 0.34
========== ========== ==========
Average common shares outstanding
for Diluted EPS 35,644,728 35,757,992 36,135,121
For the Six Months Ended
June 30, June 30,
2005 2004
---------- ----------
Interest income:
Loans secured by real estate $ 70,109 $ 68,065
Other loans 59 123
Mortgage-backed securities 7,760 10,858
Investment securities 1,361 687
Other 2,841 729
---------- ----------
Total interest income 82,130 80,462
---------- ----------
Interest expense:
Deposits and escrow 19,566 19,246
Borrowed funds 17,650 13,226
---------- ----------
Total interest expense 37,216 32,472
---------- ----------
Net interest income 44,914 47,990
Provision for loan losses 120 120
---------- ----------
Net interest income after
provision for loan losses 44,794 47,870
---------- ----------
Non-interest income:
Service charges and other fees 2,922 3,302
Net (loss) gain on sales
and redemptions of assets (4,889) 783
Prepayment fee income 2,923 6,378
Other 2,128 1,886
---------- ----------
Total non-interest income 3,084 12,349
---------- ----------
Non-interest expense:
Compensation and benefits 11,232 11,895
Occupancy and equipment 2,614 2,515
Core deposit intangible
amortization 48 412
Other 5,797 6,095
---------- ----------
Total non-interest expense 19,691 20,917
---------- ----------
Income before taxes 28,187 39,302
Income tax expense 10,058 14,556
---------- ----------
Net Income $ 18,129 $ 24,746
========== ==========
Earnings per Share:
Basic $ 0.52 $ 0.70
========== ==========
Diluted $ 0.51 $ 0.68
========== ==========
Average common shares outstanding
for Diluted EPS 35,697,973 36,498,106
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
Core Earnings and Core Cash Earnings Reconciliations:
(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.
In addition, 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 generation is a significant
financial measure since banks are subject to regulatory requirements
involving the maintenance of minimum tangible capital levels.
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 cash earnings, for each of the periods
presented:
For the Three Months Ended
June 30, March 31, June 30,
2005 2005 2004
------- ------- -------
Net income as reported $ 7,258 $10,871 $12,406
Pre-tax net loss (gain) on
sale of securities 5,176 - -
Tax effect of adjustments ( 2,143) - -
------- ------- -------
Core Earnings $10,291 $10,871 $12,406
------- ------- -------
Cash Earnings Additions :
Core Deposit Intangible
Amortization - 48 206
Non-cash stock benefit
plan expense 352 343 685
------- ------- -------
Core Cash Earnings $10,643 $11,262 $13,297
------- ------- -------
Performance Ratios (Based
upon Core Cash Earnings):
Core Cash EPS (Diluted) 0.30 0.31 0.37
Core Cash Return on
Average Assets 1.28% 1.34% 1.54%
Core Cash Return on Average
Tangible Stockholders' Equity 18.29% 19.63% 24.48%
For the Six Months Ended
June 30, June 30,
2005 2004
------- -------
Net income as reported $18,129 $24,746
Pre-tax net loss (gain)
on sale of securities 5,176 (516)
Tax effect of adjustments (2,143) 103
------- -------
Core Earnings $21,162 $24,333
------- -------
Cash Earnings Additions:
Core Deposit Intangible
Amortization 48 412
Non-cash stock benefit
plan expense 695 1,479
------- -------
Core Cash Earnings $21,905 $26,224
------- -------
Performance Ratios (Based upon
Core Cash Earnings):
Core Cash EPS (Diluted) 0.61 0.72
Core Cash Return on Average
Assets 1.31% 1.60%
Core Cash Return on Average
Tangible Stockholders' Equity 18.98% 24.25%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(In thousands except per share amounts)
For the Three Months Ended
---------------------------
June 30, March 31, June 30,
2005 2005 2004
---- ---- ----
Performance Ratios
(Based upon Reported Earnings):
Reported EPS (Diluted) $ 0.20 $ 0.30 $ 0.34
Return on Average Assets 0.87% 1.30% 1.44%
Return on Average
Stockholders' Equity 10.18% 15.47% 18.42%
Return on Average Tangible
Stockholders' Equity 12.47% 18.95% 22.84%
Net Interest Spread 2.45% 2.59% 2.66%
Net Interest Margin 2.75% 2.87% 2.90%
Non-interest Expense to
Average Assets 1.19% 1.16% 1.22%
Efficiency Ratio 38.22% 36.28% 34.71%
Effective Tax Rate 33.87% 36.84% 37.95%
Performance Ratios (Based
upon Core Earnings):
Core EPS (Diluted) $ 0.29 $ 0.30 $ 0.34
Core Return on Average
Assets 1.23% 1.30% 1.44%
Core Return on Average
Stockholders' Equity 14.44% 15.47% 18.42%
Core Return on Average
Tangible Stockholders'
Equity 17.69% 18.95% 22.84%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 7.74 $ 7.60 $ 7.22
Tangible Book Value Per Share 6.28 6.27 5.94
Average Balance Data:
Average Assets $3,335,107 $3,357,138 $3,448,906
Average Interest Earning Assets 3,195,935 3,204,674 3,295,823
Average Stockholders' Equity 285,103 281,038 269,337
Average Tangible
Stockholders' Equity 232,728 229,509 217,315
Average Loans 2,501,574 2,481,554 2,351,624
Average Deposits 2,132,556 2,183,923 2,349,850
Asset Quality Summary:
Net charge-offs (recoveries) ($ 14) ($ 1) $ 37
Nonperforming Loans 5,025 2,712 1,413
Nonperforming Loans/ Total Loans 0.20% 0.11% 0.06%
Nonperforming Assets/Total Assets 0.15% 0.08% 0.04%
Allowance for Loan Loss/Total Loans 0.61% 0.61% 0.60%
Allowance for Loan
Loss/Nonperforming Loans 309.13% 561.68% 1028.66%
Regulatory Capital Ratios:
Consolidated Tangible Equity
to Tangible Assets at period end 7.24% 7.01% 6.47%
Tangible Capital Ratio (Bank Only) 8.72% 8.23% 7.30%
Leverage Capital Ratio (Bank Only) 8.72% 8.23% 7.30%
Risk-Based Capital Ratio (Bank Only) 13.38% 13.13% 14.46%
For the Six Months Ended
------------------------
June 30, June 30,
2005 2004
---- ----
Performance Ratios
(Based upon Reported Earnings):
Reported EPS (Diluted) $ 0.51 $ 0.68
Return on Average Assets 1.08% 1.51%
Return on Average Stockholders' Equity 12.81% 18.07%
Return on Average Tangible Stockholders' Equity 15.71% 22.53%
Net Interest Spread 2.52% 2.84%
Net Interest Margin 2.81% 3.08%
Non-interest Expense to Average Assets 1.18% 1.28%
Efficiency Ratio 37.23% 35.12%
Effective Tax Rate 35.68% 37.04%
Performance Ratios (Based
upon Core Earnings):
Core EPS (Diluted) $ 0.59 $ 0.67
Core Return on Average Assets 1.26% 1.49%
Core Return on Average
Stockholders' Equity 14.95% 17.76%
Core Return on Average Tangible
Stockholders' Equity 18.33% 22.16%
Book Value and Tangible Book Value Per Share:
Stated Book Value Per Share $ 7.74 $ 7.22
Tangible Book Value Per Share 6.28 5.94
Average Balance Data:
Average Assets $3,346,123 $3,271,553
Average Interest Earning Assets 3,200,304 3,113,490
Average Stockholders' Equity 283,071 273,961
Average Tangible Stockholders' Equity 230,843 219,649
Average Loans 2,491,565 2,285,007
Average Deposits 2,158,240 2,247,246
Asset Quality Summary:
Net charge-offs (recoveries) ($ 15) $ 67
Nonperforming Loans 5,025 1,413
Nonperforming Loans/ Total Loans 0.20% 0.06%
Nonperforming Assets/Total Assets 0.15% 0.04%
Allowance for Loan Loss/Total Loans 0.61% 0.60%
Allowance for Loan Loss/Nonperforming Loans 309.13% 1028.66%
Regulatory Capital Ratios:
Consolidated Tangible Equity to Tangible
Assets at period end 7.24% 6.47%
Tangible Capital Ratio (Bank Only) 8.72% 7.30%
Leverage Capital Ratio (Bank Only) 8.72% 7.30%
Risk -Based Capital Ratio (Bank Only) 13.38% 14.46%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
ANALYSIS OF NET INTEREST INCOME
For the Three Months Ended
June 30, 2005
Average
Average Yield/
Balance Interest Cost
---------- ---------- ----------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $2,499,139 $ 35,261 5.64%
Other loans 2,436 27 4.43
Mortgage-backed securities 369,470 3,270 3.54
Investment securities 90,384 755 3.34
Other short-term investments 234,506 1,887 3.22
---------- ---------- ----------
Total interest earning
assets 3,195,935 $ 41,200 5.16%
---------- ----------
Non-interest earning assets 139,172
----------
Total assets $3,335,107
==========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 40,801 $ 103 1.01%
Money Market accounts 670,907 2,869 1.72
Savings accounts 358,382 493 0.55
Certificates of deposit 966,386 6,720 2.79
---------- ---------- ----------
Total interest
bearing deposits 2,036,476 10,185 2.01
Borrowed Funds 809,248 9,077 4.50
---------- ---------- ----------
Total interest-bearing
liabilities 2,845,724 19,262 2.71%
---------- ----------
Checking accounts 96,080
Other non-interest-bearing
liabilities 108,200
----------
Total liabilities 3,050,004
Stockholders' equity 285,103
----------
Total liabilities and
stockholders' equity $3,335,107
==========
Net interest income $ 21,938
==========
Net interest spread 2.45%
==========
Net interest-earning assets $ 350,211
==========
Net interest margin 2.75%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 112.31%
==========
For the Three Months Ended
March 31, 2005
Average
Average Yield/
Balance Interest Cost
---------- ---------- ----------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $2,478,992 $ 34,848 5.62%
Other loans 2,562 32 5.00
Mortgage-backed securities 504,077 4,490 3.56
Investment securities 68,252 606 3.55
Other short-term investments 150,791 954 2.53
---------- ---------- ----------
Total interest earning
assets 3,204,674 $ 40,930 5.11%
---------- ----------
Non-interest earning assets 152,464
----------
Total assets $3,357,138
==========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 43,071 $ 108 1.02%
Money Market accounts 724,333 2,717 1.52
Savings accounts 360,842 491 0.55
Certificates of deposit 961,947 6,065 2.56
---------- ---------- ----------
Total interest
bearing deposits 2,090,193 9,381 1.82
Borrowed Funds 804,339 8,573 4.32
---------- ---------- ----------
Total interest-bearing
liabilities 2,894,532 17,954 2.52%
---------- ----------
Checking accounts 93,730
Other non-interest-bearing
liabilities 87,838
----------
Total liabilities 3,076,100
Stockholders' equity 281,038
----------
Total liabilities and
stockholders' equity $3,357,138
==========
Net interest income $ 22,976
==========
Net interest spread 2.59%
==========
Net interest-earning assets $ 310,142
==========
Net interest margin 2.87%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 110.71%
==========
For the Three Months Ended
June 30, 2004
Average
Average Yield/
Balance Interest Cost
---------- ---------- ----------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $2,348,236 $ 34,450 5.87%
Other loans 3,388 60 7.08
Mortgage-backed securities 750,157 6,146 3.28
Investment securities 45,188 375 3.32
Other short-term investments 148,854 386 1.04
---------- ---------- ----------
Total interest earning
assets 3,295,823 $ 41,417 5.03%
---------- ----------
Non-interest earning assets 153,083
----------
Total assets $3,448,906
==========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 41,128 $ 105 1.02%
Money Market accounts 844,621 3,177 1.51
Savings accounts 371,427 500 0.54
Certificates of deposit 998,037 6,460 2.60
---------- ---------- ----------
Total interest
bearing deposits 2,255,213 10,242 1.82
Borrowed Funds 718,812 7,301 4.07
---------- ---------- ----------
Total interest-bearing
liabilities 2,974,025 17,543 2.37%
---------- ----------
Checking accounts 94,637
Other non-interest-bearing
liabilities 110,907
----------
Total liabilities 3,179,569
Stockholders' equity 269,337
----------
Total liabilities and
stockholders' equity $3,448,906
==========
Net interest income $ 23,874
==========
Net interest spread 2.66%
==========
Net interest-earning assets $ 321,798
==========
Net interest margin 2.90%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 110.82%
==========
Contact Information: Contact: Kenneth J. Mahon Exec. VP and Chief Financial Officer 718-782-6200 extension 8265 Stephanie Prince Director of Corporate Marketing 718-782-6200 extension 8250