EX-99.1 2 dcom-20230728xex99d1.htm EX-99.1

Page 1

Exhibit 99.1

Graphic

Dime Community Bancshares, Inc. Reports Second Quarter 2023 Results

Average Deposits Increased By Over $150 Million On A Linked Quarter Basis
Successfully Onboarded 7 Deposit Groups, Capitalizing on Moment-In-Time Opportunity to Enhance Deposit Franchise

Capital Ratios and Asset Quality Continue to Be Strong

Announces CEO Succession Plan; Stuart H. Lubow named Successor

Hauppauge, NY, July 28, 2023 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $25.7 million for the quarter ended June 30, 2023, or $0.66 per diluted common share, compared to net income available to common stockholders of $35.5 million for the quarter ended March 31, 2023 or $0.92 per diluted common share, and net income available to common stockholders of $36.7 million for the quarter ended June 30, 2022, or $0.94 per diluted common share.

Adjusted net income available to common stockholders (non-GAAP) totaled $26.6 million for the quarter ended June 30, 2023, or $0.68 per diluted share. Adjusted net income available to common stockholders for the quarter ended June 30, 2023 included $1.3 million of aggregate pre-tax adjustments related to loss on equity securities and severance expense (see “Non-GAAP Reconciliation” tables at the end of this news release).

Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “Despite the challenges posed by the interest rate environment and volatility stemming from bank failures in March, Dime has increased deposits, capital and on balance sheet liquidity versus year-end levels; our year-to-date return on assets was approximately 1%. I am extremely proud of our employees for their unwavering focus on our customers and enabling us to be the premier community-based business bank on Greater Long Island.”

Stuart H. Lubow, President and Chief Operating Officer of the Company, stated, “We successfully onboarded seven prolific deposit-focused Groups in the second quarter, comprising 21 individuals. Hiring these Groups was a validation of Dime’s customer-first mindset, high-touch and relationship-based model, flat organizational structure, best-in-class technology platform and solid financial prospects. Initial results for these Groups have been very positive, with over 600 new customers onboarded and over 1,000 accounts opened in a very short period of time. Building on our success, we continue to receive significant interest from additional Groups looking to join Dime. During the second quarter, we were also pleased to receive affirmations of our investment grade rating from KBRA and Moody’s.”

Highlights for the Second Quarter of 2023 Included:

Average total deposits were $10.54 billion for the second quarter of 2023 compared to $10.38 billion for the first quarter of 2023;
Non-insured deposits (excluding deposits with pass through insurance and collateralized deposits) represented only 28% of total deposits at the end of the second quarter;
The ratio of average non-interest bearing deposits to average total deposits for the second quarter of 2023 was 29%;
Total loans held for investment, net, increased by $147 million or 6% on an annualized basis versus the linked quarter;
The pace of Net Interest Margin (“NIM”) compression slowed in the second quarter; on a linked quarter basis, the NIM declined by 24 basis points in the second quarter of 2023 compared to 41 basis points for the first quarter of 2023;
Expenses remained well-controlled, with non-interest expense to average assets of 1.53% for the second quarter of 2023, compared to 1.71% for the year-ago quarter;
Credit quality continues to be strong with non-performing assets and loans 90 days past due and accruing declining by 12% versus the linked quarter and representing only 0.20% of total assets as of June 30, 2023; and
The Company’s Tier 1 Risk Based Capital Ratio of 10.50% was 11 basis points higher compared to the prior quarter.


Page 2

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the second quarter of 2023 was $80.2 million compared to $85.8 million for the first quarter of 2023 and $93.5 million for the second quarter of 2022.

The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.  

(Dollars in thousands)

    

Q2 2023

    

Q1 2023

    

Q2 2022

 

Net interest income

$

80,219

$

85,752

$

93,512

Purchase accounting amortization (accretion) on loans ("PAA")

58

586

117

Adjusted net interest income excluding PAA on loans (non-GAAP)

$

80,277

$

86,338

$

93,629

Average interest-earning assets

$

12,888,522

$

12,685,235

$

11,412,350

NIM (1)

 

2.50

%  

 

2.74

%  

 

3.29

%

Adjusted NIM excluding PAA on loans (non-GAAP) (2)

 

2.50

%  

 

2.76

%  

3.29

%

(1)NIM represents net interest income divided by average interest-earning assets.
(2)Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes net interest income on PAA loans divided by average interest-earning assets.

Loan Portfolio

The ending weighted average rate (“WAR”)(1) on the total loan portfolio was 5.12% at June 30, 2023, a 16 basis point increase compared to the ending WAR on the total loan portfolio at March 31, 2023.

Outlined below are loan balances and WARs for the period ended as indicated.

June 30, 2023

March 31, 2023

June 30, 2022

 

(Dollars in thousands)

    

Balance

    

WAR

    

Balance

    

WAR

    

Balance

    

WAR

 

Loans held for investment balances at period end:

  

  

  

  

  

  

 

Business loans (2)

$

2,250,108

6.56

%  

$

2,255,316

6.41

%  

$

2,004,072

4.57

%

One-to-four family residential, including condominium and cooperative apartment

 

855,980

 

4.17

 

799,321

 

4.06

 

691,586

 

3.60

Multifamily residential and residential mixed-use (3)(4)

4,132,358

4.38

4,118,439

4.23

3,654,164

3.62

Non-owner-occupied commercial real estate

 

3,406,232

 

5.04

 

3,330,582

 

4.85

 

3,048,188

 

3.89

Acquisition, development, and construction

 

225,580

 

8.99

 

221,015

 

8.62

 

252,108

 

5.41

Other loans

6,157

6.74

7,172

11.03

10,789

7.16

Loans held for investment

$

10,876,415

5.12

%  

$

10,731,845

4.96

%  

$

9,660,907

3.94

%

(1)    Weighted average rate is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.

(2)    Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Small Business Administration Paycheck Protection Program (“PPP”) loans.

(3)    Includes loans underlying multifamily cooperatives.

(4)    While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Outlined below are the loan originations, for the quarter ended as indicated.

 

(Dollars in millions)

    

Q2 2023

    

Q1 2023

    

Q2 2022

Loan originations

$

296.6

$

351.9

$

901.5

Deposits

Period end total deposits (excluding mortgage escrow deposits) at June 30, 2023 were $10.45 billion, compared to $10.46 billion at March 31, 2023 and $10.18 billion at December 31, 2022. Period end total mortgage escrow deposits at June 30, 2023 were $70.6 million, compared to $110.1 million at March 31, 2023 and $69.6 million at December 31, 2022, reflecting normal seasonal escrow payment activity.


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Non-Interest Income

Non-interest income was $10.4 million during the second quarter of 2023, $9.0 million during the first quarter of 2023, and $12.1 million during the second quarter of 2022. Included in non-interest income was income related to mortality proceeds from a death claim of $645 thousand and $2.2 million for the second quarter of 2023 and 2022, respectively.  

Non-Interest Expense

Total non-interest expense was $52.2 million during the second quarter of 2023, $47.5 million during the first quarter of 2023, and $51.8 million during the second quarter of 2022. Excluding the impact of severance expense, loss on extinguishment of debt, and amortization of other intangible assets, adjusted non-interest expense was $51.4 million during the second quarter of 2023, $47.1 million during the first quarter of 2023, and $48.5 million during the second quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release). The increase in adjusted non-interest expense on a linked quarter basis was primarily due to annual merit increases and expenses associated with hiring the previously mentioned seven deposit-focused Groups.

The ratio of non-interest expense to average assets was 1.53% during the second quarter of 2023, compared to 1.41% during the linked quarter and 1.71% for the second quarter of 2022. Excluding the impact of severance expense, loss on extinguishment of debt, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.51% during the second quarter of 2023, compared to 1.40% during the linked quarter and 1.60% for the second quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 57.6% during the second quarter of 2023, compared to 50.1% during the linked quarter and 49.1% during the second quarter of 2022. Excluding the impact of loss on equity securities, net loss on sale of securities and other assets, severance expense, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 56.2% during the second quarter of 2023, compared to 48.9% during the linked quarter and 45.9% during the first quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Income Tax Expense

The reported effective tax rate for both the second and first quarter of 2023 was 26.8%, compared to 28.4% for the second quarter of 2022.

Credit Quality

Non-performing loans at June 30, 2023 were $27.7 million, 12% lower than the prior quarter.

A credit loss provision of $0.9 million was recorded during the second quarter of 2023, compared to a credit loss recovery of $3.6 million during the first quarter of 2023, and a credit loss provision of $44 thousand during the second quarter of 2022. The credit loss provision in the second quarter of 2023 was associated with growth in the loan portfolio and deterioration in forecasted macroeconomic conditions offset by a reduction in the reserve on Purchased Credit Deteriorated ("PCD”) loans that were acquired as part of the Company’s merger of equals transaction in 2021. The credit loss recovery in the first quarter of 2023 was primarily associated with a reduction in reserves on the PCD loans.

Capital Management

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of June 30, 2023. All of the Company’s and Bank’s risk-based regulatory capital ratios increased in the second quarter of 2023.

Dividends per common share were $0.25 during the second quarter of 2023 compared to $0.24 during the first quarter of 2023. The dividend increase reflected Dime’s strong financial position.

Book value per common share was $27.99 at June 30, 2023 compared to $27.70 at March 31, 2023.

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $23.82 at June 30, 2023 compared to $23.52 at March 31, 2023. Excluding the impact of accumulated other comprehensive loss, the adjusted tangible common book value per share was $26.51 at June 30, 2023 compared to $26.06 at March 31, 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).


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CEO Succession

The Company announced today that Kevin M. O’Connor will step down as CEO effective August 31, 2023 and that Stuart H. Lubow, the Company’s current President and Chief Operating Officer, will succeed Mr. O’Connor as CEO. Mr. O’Connor will continue to serve on the Board of Directors until December 31, 2023. Mr. Lubow will be added to the Board of Directors simultaneous with his appointment as CEO.

Mr. O’Connor has been CEO of the Company since Bridge Bancorp, Inc. (“Bridge”) and Dime Community Bancshares, Inc. (“Dime”) merged on February 1, 2021 (the “Merger”). Before the Merger, Mr. O’Connor was President and CEO of Bridge. He joined Bridge in October 2007 as President and Chief Executive Officer and director. Mr. Lubow has been President and Chief Operating Officer of the Company since the Merger. Before the Merger, Mr. Lubow served as President of Dime. Before joining Dime in 2017, Mr. Lubow was a founder, Chairman, President, and CEO of each of Community National Bank and Community State Bank. Mr. Lubow has prior community bank CEO experience of over 17 years.

"Under Kevin’s leadership, we successfully completed a transformational merger, creating the premier business bank on Greater Long Island, driving superior financial results for shareholders and providing tremendous support to our customers and communities" said Executive Chairman, Kenneth J. Mahon, on behalf of the Company's and Bank's Boards of Directors. "We are grateful for Kevin’s strong leadership and are very excited to promote Stu Lubow to CEO. The appointment of Stu as CEO has been under consideration since the beginning of the year and is the culmination of a thoughtful and well-planned succession process. Stu has a proven track record throughout his career of delivering value for customers and shareholders alike. Most recently, he was instrumental in the hiring and onboarding of seven deposit- focused Groups that are already contributing to significant customer growth. The Board of Directors is confident that he will provide a steady, uninterrupted mission and culture of service to our staff and customers. Having admirably weathered the challenges caused by the recent bank failures, evidenced by an increase in deposits on a year-to-date basis, we believe now is the ideal time to execute on the succession plan. We are very excited about our future under Stu’s leadership.”

“I applaud and congratulate the accomplishments of our entire team and am proud of what we have built together. Our focus on developing and strengthening relationships while supporting and serving our communities has served our constituents well, leading to our recognition as the preeminent community bank in our footprint,” said Kevin O’Connor.  “I want to thank and commend all of my colleagues, past and present, and personally wish Stu and the entire Dime team well. I have full confidence that they will reach greater heights as they continue building on our past successes.”

“I am thankful for the opportunity the Board has granted me to lead Dime and would also like to express my gratitude to Kevin for his leadership and support over the years” said Stuart H. Lubow. “Dime has a proud history of being rooted in the communities we serve, and I look forward to working with all of our dedicated employees to add value to our customers and our shareholders. I will draw upon my prior CEO experience to lead Dime into the next chapter of our growth as the preeminent community bank in our footprint.”


Page 5

Earnings Call Information

The Company will conduct a conference call at 8:30 a.m. (ET) on Friday, July 28, 2023, during which CEO O’Connor will discuss the Company’s second quarter 2023 financial performance, with a question-and-answer session to follow.

The conference call will be simultaneously webcast (listen only) and archived for a period of one year at https://events.q4inc.com/attendee/893173701.

Conference Call Details:

Dial-in for Live Call:

United States: 1-833-470-1428

International:+1-929-526-1599

Access code:236348

Telephone Replay:

A recording will be available until Friday, August 11, 2023.

United States: 1-866-813-9403

International:+44-204-525-0658

Access code: 786213

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $13.8 billion in assets and the number one deposit market share among community banks on Greater Long Island(1).

(1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks less than $20 billion in assets.

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 “annualized," “anticipate," "believe," “continue,” "could," "estimate," "expect," "intend," “likely,” "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. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results 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 affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; 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 socio-economic conditions, including conditions caused by the COVID-19 pandemic and any other public health emergency, international conflict, inflation, and recessionary pressures, 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 and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; and 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. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.


Page 6

Contact: Avinash Reddy

Senior Executive Vice President – Chief Financial Officer

718-782-6200 extension 5909


Page 7

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)

    

June 30, 

    

March 31, 

    

December 31, 

2023

2023

2022

Assets:

 

  

 

  

 

  

Cash and due from banks

$

452,504

$

663,132

$

169,297

Securities available-for-sale, at fair value

 

894,856

 

926,812

 

950,587

Securities held-to-maturity

603,960

605,642

585,798

Loans held for sale

371

2,171

Loans held for investment, net:

 

 

  

 

  

Business loans (1)

 

2,250,108

 

2,255,316

 

2,211,857

One-to-four family and cooperative/condominium apartment

 

855,980

 

799,321

 

773,321

Multifamily residential and residential mixed-use (2)(3)

 

4,132,358

 

4,118,439

 

4,026,826

Non-owner-occupied commercial real estate

 

3,406,232

 

3,330,582

 

3,317,485

Acquisition, development and construction

 

225,580

 

221,015

 

229,663

Other loans

 

6,157

 

7,172

 

7,679

Allowance for credit losses

 

(75,646)

 

(78,335)

 

(83,507)

Total loans held for investment, net

 

10,800,769

 

10,653,510

 

10,483,324

Premises and fixed assets, net

 

45,890

 

45,863

 

46,749

Restricted stock

 

104,724

 

105,258

 

88,745

Bank Owned Life Insurance ("BOLI")

 

337,083

 

335,455

 

333,292

Goodwill

 

155,797

 

155,797

 

155,797

Other intangible assets

 

5,758

 

6,107

 

6,484

Operating lease assets

 

54,931

 

57,204

 

57,857

Derivative assets

 

147,740

 

130,294

 

154,485

Accrued interest receivable

 

51,787

 

49,926

 

48,561

Other assets

 

146,692

 

104,553

 

108,945

Total assets

$

13,802,862

$

13,841,724

$

13,189,921

Liabilities:

 

  

 

  

 

  

Non-interest-bearing checking (excluding mortgage escrow deposits)

$

2,884,184

$

3,012,378

$

3,449,763

Interest-bearing checking

 

960,465

 

908,988

 

827,454

Savings (excluding mortgage escrow deposits)

 

2,275,008

 

2,333,196

 

2,259,909

Money market

 

2,801,652

 

2,686,290

 

2,532,270

Certificates of deposit

 

1,530,749

 

1,519,267

 

1,115,364

Deposits (excluding mortgage escrow deposits)

 

10,452,058

 

10,460,119

 

10,184,760

Non-interest-bearing mortgage escrow deposits

70,431

109,867

69,455

Interest-bearing mortgage escrow deposits

203

249

192

Total mortgage escrow deposits

70,634

110,116

69,647

FHLBNY advances

 

1,448,000

 

1,498,000

 

1,131,000

Other short-term borrowings

 

 

2,068

 

1,360

Subordinated debt, net

 

200,240

 

200,261

 

200,283

Derivative cash collateral

140,160

120,680

153,040

Operating lease liabilities

 

57,547

 

59,757

 

60,340

Derivative liabilities

 

131,130

 

115,568

 

137,335

Other liabilities

 

100,590

 

83,902

 

82,573

Total liabilities

 

12,600,359

 

12,650,471

 

12,020,338

Stockholders' equity:

 

  

 

  

 

  

Preferred stock, Series A

 

116,569

 

116,569

 

116,569

Common stock

 

416

 

416

 

416

Additional paid-in capital

 

493,955

 

493,801

 

495,410

Retained earnings

 

804,532

 

789,010

 

762,762

Accumulated other comprehensive loss ("AOCI"), net of deferred taxes

 

(104,385)

 

(98,638)

 

(94,379)

Unearned equity awards

 

(11,746)

 

(13,468)

 

(8,078)

Treasury stock, at cost

 

(96,838)

 

(96,437)

 

(103,117)

Total stockholders' equity

 

1,202,503

 

1,191,253

 

1,169,583

Total liabilities and stockholders' equity

$

13,802,862

$

13,841,724

$

13,189,921

(1)     Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.

(2)     Includes loans underlying multifamily cooperatives.

(3)    While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.


Page 8

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands except share and per share amounts)

Three Months Ended

Six Months Ended

    

June 30, 

    

March 31, 

    

June 30, 

    

June 30, 

    

June 30, 

2023

2023

2022

2023

2022

Interest income:

 

  

 

  

 

  

 

  

 

  

Loans

$

138,310

$

128,439

$

93,102

$

266,749

$

179,522

Securities

 

7,914

 

8,431

 

7,067

 

16,345

 

14,198

Other short-term investments

 

5,867

 

3,802

 

741

 

9,669

 

1,109

Total interest income

 

152,091

 

140,672

 

100,910

 

292,763

 

194,829

Interest expense:

 

  

 

 

  

 

  

 

  

Deposits and escrow

 

52,616

 

37,272

 

3,731

 

89,888

 

6,262

Borrowed funds

 

17,759

 

16,171

 

3,573

 

33,930

 

5,851

Derivative cash collateral

1,497

1,477

94

2,974

95

Total interest expense

 

71,872

 

54,920

 

7,398

 

126,792

 

12,208

Net interest income

 

80,219

 

85,752

 

93,512

 

165,971

 

182,621

Provision (recovery) for credit losses

 

892

 

(3,648)

 

44

 

(2,756)

 

(1,548)

Net interest income after provision (recovery)

 

79,327

 

89,400

 

93,468

 

168,727

 

184,169

Non-interest income:

 

  

 

 

  

 

  

 

  

Service charges and other fees

 

4,856

 

3,814

 

4,337

 

8,670

 

8,395

Title fees

246

292

683

538

1,104

Loan level derivative income

 

2,437

 

3,133

 

1,685

 

5,570

 

1,691

BOLI income

 

2,852

 

2,163

 

4,143

 

5,015

 

5,982

Gain on sale of SBA loans

 

210

 

516

 

723

 

726

 

965

Gain on sale of residential loans

 

34

 

48

 

191

 

82

 

339

Loss on equity securities

(780)

(780)

Net loss on sale of securities and other assets

 

 

(1,447)

 

 

(1,447)

 

Other

 

550

 

482

 

362

 

1,032

 

851

Total non-interest income

 

10,405

 

9,001

 

12,124

 

19,406

 

19,327

Non-interest expense:

 

  

 

 

 

  

 

  

Salaries and employee benefits

 

29,900

 

26,634

 

28,454

 

56,534

 

59,288

Severance

481

25

2,193

506

2,193

Occupancy and equipment

 

7,144

 

7,373

 

7,396

 

14,517

 

14,980

Data processing costs

 

4,197

 

4,238

 

3,913

 

8,435

 

7,718

Marketing

 

1,488

 

1,449

 

1,515

 

2,937

 

2,810

Professional services

1,676

1,923

2,028

3,599

4,122

Federal deposit insurance premiums

 

1,874

 

1,873

 

1,150

 

3,747

 

2,300

Loss on extinguishment of debt

740

740

Amortization of other intangible assets

 

349

 

377

 

430

 

726

 

1,016

Other

 

5,077

 

3,583

 

4,019

 

8,660

 

6,559

Total non-interest expense

 

52,186

 

47,475

 

51,838

 

99,661

 

101,726

Income before taxes

 

37,546

 

50,926

 

53,754

 

88,472

 

101,770

Income tax expense

 

10,048

 

13,623

 

15,269

 

23,671

 

28,754

Net income

 

27,498

 

37,303

 

38,485

 

64,801

 

73,016

Preferred stock dividends

 

1,822

 

1,821

 

1,822

 

3,643

 

3,643

Net income available to common stockholders

$

25,676

$

35,482

$

36,663

$

61,158

$

69,373

Earnings per common share ("EPS"):

 

  

 

  

 

  

 

  

 

  

Basic

$

0.66

$

0.92

$

0.94

$

1.58

$

1.76

Diluted

$

0.66

$

0.92

$

0.94

$

1.58

$

1.76

Average common shares outstanding for diluted EPS

 

38,175,993

 

38,151,465

 

38,631,683

 

38,164,359

 

38,939,753


Page 9

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED SELECTED FINANCIAL HIGHLIGHTS

(Dollars in thousands except per share amounts)

At or For the Three Months Ended

At or For the Six Months Ended

 

    

June 30, 

    

March 31, 

    

June 30, 

    

June 30, 

    

June 30, 

 

2023

2023

2022

2023

2022

 

Per Share Data:

 

  

 

  

 

  

 

  

 

  

Reported EPS (Diluted)

$

0.66

$

0.92

$

0.94

$

1.58

$

1.76

Cash dividends paid per common share

 

0.25

 

0.24

 

0.24

 

0.49

 

0.48

Book value per common share

 

27.99

 

27.70

 

26.41

 

27.99

26.41

Tangible common book value per share (1)

 

23.82

 

23.52

 

22.20

 

23.82

22.20

Tangible common book value per share excluding AOCI (1)

26.51

26.06

24.01

26.51

24.01

Common shares outstanding

38,803

38,804

38,769

38,803

38,769

Dividend payout ratio

 

37.88

%  

 

26.09

%  

 

25.53

%  

 

31.01

%  

 

27.27

%

Performance Ratios (Based upon Reported Net Income):

 

  

 

  

 

  

 

  

 

  

Return on average assets

 

0.81

%  

 

1.11

%  

 

1.27

%  

 

0.96

%  

 

1.20

%

Return on average equity

 

9.03

 

12.50

 

13.44

 

10.75

 

12.47

Return on average tangible common equity (1)

 

11.04

 

15.62

 

17.08

 

13.30

 

15.73

Net interest margin

 

2.50

 

2.74

 

3.29

 

2.62

 

3.24

Non-interest expense to average assets

 

1.53

 

1.41

 

1.71

 

1.47

 

1.67

Efficiency ratio

 

57.6

 

50.1

 

49.1

 

53.8

 

50.4

Effective tax rate

 

26.76

 

26.75

 

28.41

 

26.76

 

28.25

Balance Sheet Data:

 

  

 

  

 

  

 

  

 

  

Average assets

$

13,658,068

$

13,449,746

$

12,121,949

$

13,554,483

$

12,160,620

Average interest-earning assets

 

12,888,522

 

12,685,235

 

11,412,350

 

12,787,441

 

11,373,294

Average tangible common equity (1)

 

940,054

 

914,994

 

865,329

 

927,592

 

891,007

Loan-to-deposit ratio at end of period (2)

 

103.4

 

101.5

 

91.4

 

103.4

91.4

Capital Ratios and Reserves - Consolidated: (3)

 

  

 

  

 

  

 

  

 

  

Tangible common equity to tangible assets (1)

 

6.78

%  

 

6.67

%  

 

7.07

%  

 

Tangible common equity excluding AOCI to tangible assets (1)

7.54

7.39

7.64

Tangible equity to tangible assets (1)

 

7.63

 

7.52

 

8.02

 

Tangible equity excluding AOCI to tangible assets (1)

8.40

 

8.25

 

8.60

 

Tier 1 common equity ratio

 

9.44

 

9.32

 

9.28

 

Tier 1 risk-based capital ratio

 

10.50

 

10.39

 

10.44

 

Total risk-based capital ratio

 

13.06

 

12.98

 

13.26

 

Tier 1 leverage ratio

 

8.42

 

8.43

 

8.71

 

Consolidated CRE concentration ratio (4)

 

555

 

554

 

534

 

Allowance for credit losses/ Total loans

 

0.70

 

0.73

 

0.82

 

Allowance for credit losses/ Non-performing loans

 

273.42

 

248.34

 

218.80

 

(1)    See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets.

(2)    Total deposits include mortgage escrow deposits, which fluctuate seasonally.

(3)

June 30, 2023 amounts are preliminary pending completion and filing of the Company’s regulatory reports.

(4)   The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. June 30, 2023 amounts are preliminary pending completion and filing of the Company’s regulatory reports.


Page 10

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME

(Dollars in thousands)

Three Months Ended

 

June 30, 2023

March 31, 2023

June 30, 2022

 

    

    

    

    

    

Average

    

    

    

    

    

Average

    

    

    

    

    

Average

 

Average

Yield/

Average

Yield/

Average

Yield/

 

Balance

Interest

Cost

Balance

Interest

Cost

Balance

Interest

Cost

 

Assets:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Interest-earning assets:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Business loans (1)

$

2,259,769

$

35,558

6.31

%  

$

2,200,543

$

32,451

5.98

%  

$

1,982,020

$

21,787

4.41

%  

One-to-four family residential, including condo and coop

828,324

9,818

4.75

788,302

8,857

4.56

683,615

6,771

3.97

Multifamily residential and residential mixed-use

4,125,119

45,123

4.39

4,074,011

42,348

4.22

3,510,377

32,024

3.66

Non-owner-occupied commercial real estate

3,337,689

42,559

5.11

3,317,049

39,695

4.85

2,990,246

28,466

3.82

Acquisition, development, and construction

220,795

5,149

9.35

225,898

4,973

8.93

302,534

3,909

5.18

Other loans

 

6,536

 

103

 

6.32

 

7,550

 

115

 

6.18

 

11,571

 

145

 

5.03

Securities

 

1,642,057

 

7,914

 

1.93

 

1,699,846

 

8,431

 

2.01

 

1,695,702

 

7,067

 

1.67

Other short-term investments

 

468,233

 

5,867

 

5.03

 

372,036

 

3,802

 

4.14

 

236,285

 

741

 

1.26

Total interest-earning assets

 

12,888,522

 

152,091

 

4.73

%  

 

12,685,235

 

140,672

 

4.50

%  

 

11,412,350

 

100,910

 

3.55

%

Non-interest-earning assets

 

769,546

 

  

 

  

 

764,511

 

  

 

 

709,599

 

  

 

Total assets

$

13,658,068

 

  

 

  

$

13,449,746

 

  

 

$

12,121,949

 

  

 

Liabilities and Stockholders' Equity:

 

  

 

  

 

  

 

  

 

  

 

 

  

 

  

 

Interest-bearing liabilities:

 

  

 

  

 

  

 

  

 

  

 

 

  

 

  

 

Interest-bearing checking (2)

$

952,424

$

3,081

 

1.30

%  

$

843,108

$

1,523

 

0.73

%  

$

858,402

$

604

 

0.28

%

Money market

 

2,713,816

 

18,284

 

2.70

 

2,699,640

 

13,849

 

2.08

 

3,148,472

 

1,240

 

0.16

Savings (2)

 

2,279,670

 

17,376

 

3.06

 

2,327,126

 

14,599

 

2.54

 

1,509,776

 

859

 

0.23

Certificates of deposit

 

1,546,257

 

13,875

 

3.60

 

1,167,736

 

7,301

 

2.54

 

827,286

 

1,028

 

0.50

Total interest-bearing deposits

 

7,492,167

 

52,616

 

2.82

 

7,037,610

 

37,272

 

2.15

 

6,343,936

 

3,731

 

0.24

FHLBNY advances

 

1,327,121

 

15,206

 

4.60

 

1,255,700

 

13,500

 

4.36

 

79,176

 

172

 

0.87

Subordinated debt, net

 

200,254

 

2,553

 

5.11

 

200,276

 

2,553

 

5.17

 

273,470

 

3,309

 

4.85

Other short-term borrowings

 

814

 

 

 

11,827

 

118

 

4.05

 

54,229

 

92

 

0.68

Total borrowings

 

1,528,189

 

17,759

 

4.66

 

1,467,803

 

16,171

 

4.47

 

406,875

 

3,573

 

3.52

Derivative cash collateral

120,542

1,497

4.98

135,641

1,477

4.42

98,995

94

0.38

Total interest-bearing liabilities

 

9,140,898

 

71,872

 

3.15

%  

 

8,641,054

 

54,920

 

2.58

%  

 

6,849,806

 

7,398

 

0.43

%

Non-interest-bearing checking (2)

 

3,043,899

 

  

 

  

 

3,341,707

 

  

 

  

 

3,935,765

 

  

 

  

Other non-interest-bearing liabilities

 

254,826

 

  

 

  

 

273,281

 

  

 

  

 

191,066

 

  

 

  

Total liabilities

 

12,439,623

 

  

 

  

 

12,256,042

 

  

 

  

 

10,976,637

 

  

 

  

Stockholders' equity

 

1,218,445

 

  

 

  

 

1,193,704

 

  

 

  

 

1,145,312

 

  

 

  

Total liabilities and stockholders' equity

$

13,658,068

 

  

 

  

$

13,449,746

 

  

 

  

$

12,121,949

 

  

 

  

Net interest income

 

  

$

80,219

 

  

 

  

$

85,752

 

  

 

  

$

93,512

 

  

Net interest rate spread

 

  

 

  

 

1.58

%  

 

  

 

  

 

1.92

%  

 

  

 

  

 

3.12

%

Net interest margin

 

  

 

  

 

2.50

%  

 

  

 

  

 

2.74

%  

 

  

 

  

 

3.29

%

Deposits (including non-interest-bearing checking accounts) (2)

$

10,536,066

$

52,616

 

2.00

%  

$

10,379,317

$

37,272

 

1.46

%  

$

10,279,701

$

3,731

 

0.15

%

(1)     Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.

(2)     Includes mortgage escrow deposits.


Page 11

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS

(Dollars in thousands)

    

At or For the Three Months Ended

June 30, 

    

March 31, 

    

June 30, 

Asset Quality Detail

2023

2023

2022

Non-performing loans ("NPLs")

 

  

 

  

 

  

Business loans (1)

$

23,470

$

25,512

$

29,866

One-to-four family residential, including condominium and cooperative apartment

3,305

2,808

3,128

Multifamily residential and residential mixed-use

 

 

 

Non-owner-occupied commercial real estate

 

15

 

2,468

 

2,519

Acquisition, development, and construction

657

657

657

Other loans

 

220

 

99

 

131

Total Non-accrual loans

$

27,667

$

31,544

$

36,301

Total Non-performing assets ("NPAs")

$

27,667

$

31,544

$

36,301

Loans 90 days delinquent and accruing ("90+ Delinquent")

 

  

 

  

 

  

Business loans

$

$

$

24

One-to-four family residential, including condominium and cooperative apartment

341

Multifamily residential and residential mixed-use

 

 

 

Non-owner-occupied commercial real estate

 

 

 

Acquisition, development, and construction

Other loans

 

 

 

90+ Delinquent

$

$

$

365

NPAs and 90+ Delinquent

$

27,667

$

31,544

$

36,666

NPAs and 90+ Delinquent / Total assets

0.20%

0.23%

0.30%

Net charge-offs ("NCOs")

$

3,679

$

1,541

$

555

NCOs / Average loans (2)

0.14%

0.06%

0.02%

(1)     Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.

(2)     Calculated based on annualized NCOs to average loans, excluding loans held for sale.


Page 12

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(Dollars in thousands except per share amounts)

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude pre-tax income and expenses associated with loss on equity securities, net loss on sale of securities and other assets, severance and loss on extinguishment of debt:  

Three Months Ended

Six Months Ended

 

    

June 30, 

    

March 31, 

    

June 30, 

    

June 30, 

June 30, 

 

2023

2023

2022

2023

2022

 

Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders

Reported net income available to common stockholders

$

25,676

$

35,482

$

36,663

$

61,158

$

69,373

Adjustments to net income (1):

 

  

 

  

 

  

Loss on equity securities

780

780

Net loss on sale of securities and other assets

 

 

1,447

 

1,447

Severance

 

481

 

25

 

2,193

506

2,193

Loss on extinguishment of debt

740

740

Income tax effect of adjustments and other tax adjustments

(373)

(436)

(295)

(809)

(295)

Adjusted net income available to common stockholders (non-GAAP)

$

26,564

$

36,518

$

39,301

$

63,082

$

72,011

Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)

 

  

 

  

 

  

 

  

Adjusted EPS (Diluted)

$

0.68

$

0.95

$

1.01

$

1.63

$

1.83

Adjusted return on average assets

 

0.83

%  

 

1.14

%  

 

1.36

%  

 

0.98

%  

 

1.24

%

Adjusted return on average equity

 

9.32

 

12.85

 

14.36

 

11.06

 

12.92

Adjusted return on average tangible common equity

 

11.42

 

16.08

 

18.30

 

13.72

 

16.32

Adjusted non-interest expense to average assets

 

1.51

 

1.40

 

1.60

 

1.45

 

1.61

Adjusted efficiency ratio

 

56.2

 

48.9

 

45.9

 

52.5

 

48.4

(1)    Adjustments to net income are taxed at the Company's statutory tax rate of approximately 30% unless otherwise noted.


Page 13

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

Three Months Ended

Six Months Ended

    

June 30, 

March 31, 

June 30, 

June 30, 

    

June 30, 

 

2023

2023

2022

2023

2022

 

Operating expense as a % of average assets - as reported

 

1.53

%  

1.41

%  

1.71

%  

1.47

%  

1.67

%

Loss on extinguishment of debt

(0.03)

(0.01)

Severance

(0.01)

(0.07)

(0.01)

(0.03)

Amortization of other intangible assets

(0.01)

(0.01)

(0.01)

(0.01)

(0.02)

Adjusted operating expense as a % of average assets (non-GAAP)

 

1.51

%  

1.40

%  

1.60

%  

1.45

%  

1.61

%  

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

Three Months Ended

Six Months Ended

 

    

June 30, 

    

March 31, 

    

June 30, 

    

June 30, 

    

June 30, 

 

2023

2023

2022

2023

2022

 

Efficiency ratio - as reported (non-GAAP) (1)

    

57.6

%  

50.1

%  

49.1

%  

53.8

%  

50.4

%

Non-interest expense - as reported

$

52,186

$

47,475

$

51,838

$

99,661

$

101,726

Severance

(481)

(25)

(2,193)

(506)

(2,193)

Loss on extinguishment of debt

(740)

(740)

Amortization of other intangible assets

 

(349)

 

(377)

 

(430)

 

(726)

 

(1,016)

Adjusted non-interest expense (non-GAAP)

$

51,356

$

47,073

$

48,475

$

98,429

$

97,777

Net interest income - as reported

$

80,219

$

85,752

$

93,512

$

165,971

$

182,621

Non-interest income - as reported

$

10,405

$

9,001

$

12,124

$

19,406

$

19,327

Loss on equity securities

780

 

 

 

780

 

Net loss on sale of securities and other assets

 

 

1,447

 

 

1,447

 

Adjusted non-interest income (non-GAAP)

$

11,185

$

10,448

$

12,124

$

21,633

$

19,327

Adjusted total revenues for adjusted efficiency ratio (non-GAAP)

$

91,404

$

96,200

$

105,636

$

187,604

$

201,948

Adjusted efficiency ratio (non-GAAP) (2)

 

56.2

%  

 

48.9

%  

 

45.9

%  

 

52.5

%  

 

48.4

%


(1)The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
(2)The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.


Page 14

The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):

    

June 30, 

    

March 31, 

    

June 30, 

 

2023

2023

2022

 

Reconciliation of Tangible Assets:

 

 

  

 

  

Total assets

$

13,802,862

$

13,841,724

$

12,347,085

Goodwill

 

(155,797)

 

(155,797)

 

(155,797)

Other intangible assets

(5,758)

 

(6,107)

 

(7,346)

Tangible assets (non-GAAP)

$

13,641,307

$

13,679,820

$

12,183,942

Reconciliation of Tangible Common Equity - Consolidated:

Total stockholders' equity

$

1,202,503

$

1,191,253

$

1,140,522

Goodwill

 

(155,797)

 

(155,797)

 

(155,797)

Other intangible assets

(5,758)

 

(6,107)

 

(7,346)

Tangible equity (non-GAAP)

1,040,948

1,029,349

977,379

Preferred stock, net

 

(116,569)

 

(116,569)

 

(116,569)

Tangible common equity (non-GAAP)

$

924,379

$

912,780

$

860,810

Tangible common equity (non-GAAP)

$

924,379

$

912,780

$

860,810

AOCI, net of deferred taxes

 

104,385

 

98,638

 

69,950

Tangible common equity excluding AOCI (non-GAAP)

$

1,028,764

$

1,011,418

$

930,760

Tangible equity (non-GAAP)

$

1,040,948

$

1,029,349

$

977,379

AOCI, net of deferred taxes

 

104,385

 

98,638

 

69,950

Tangible equity excluding AOCI (non-GAAP)

$

1,145,333

$

1,127,987

$

1,047,329

Common shares outstanding

38,803

38,804

38,769

Tangible common equity to tangible assets (non-GAAP)

6.78

%  

6.67

%  

7.07

%  

Tangible common equity excluding AOCI to tangible assets (non-GAAP)

7.54

7.39

7.64

Tangible equity to tangible assets (non-GAAP)

7.63

7.52

8.02

Tangible equity excluding AOCI to tangible assets (non-GAAP)

8.40

8.25

8.60

Book value per share

$

27.99

$

27.70

$

26.41

Tangible common book value per share (non-GAAP)

23.82

23.52

22.20

Tangible common book value per share excluding AOCI (non-GAAP)

26.51

26.06

24.01