EX-99 2 dcom-20221028xex99.htm EX-99.1

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Exhibit 99.1

Dime Community Bancshares, Inc. Reports Strong Third Quarter 2022 Results With
Earnings Per Share Increasing By 10% On a Year-Over-Year Basis

Robust Quarterly Loan Originations and Net Interest Margin Expansion Drive Net Interest Income Growth

Deposit Costs Remain Well Controlled

Hauppauge, NY, October 28, 2022 (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 $37.7 million for the quarter ended September 30, 2022, or $0.98 per diluted common share, compared to $36.7 million, or $0.94 per diluted common share, for the quarter ended June 30, 2022, and $36.6 million, or $0.89 per diluted common share, for the quarter ended September 30, 2021.

Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “During the third quarter, we had robust loan originations resulting in another quarter of record loan growth of over $450 million. The high level of non-interest-bearing deposits on our balance sheet allowed us to keep our deposit costs well contained. Strong growth in average earning assets and net interest margin expansion resulted in quarterly net interest income surpassing $100 million. We continue to prioritize prudent expense management as demonstrated by a core efficiency ratio of 47% on a year-to-date basis.”

Highlights for the Third Quarter of 2022 Included:

●

Total loans held for investment, net, excluding Paycheck Protection Program (“PPP”) loans, increased by 19% on an annualized basis versus the linked quarter;

●

The net interest margin expanded by 9 basis points versus the linked quarter;

●

The cost of deposits remained well-controlled; on a linked quarter basis, the cost of deposits increased by only 23 basis points compared to the 150 basis points change in the Federal Funds rate between July and September;

●

Credit quality continues to be strong with non-performing assets and loans 90 days past due and accruing remaining stable and representing only 0.34% of total assets as of September 30, 2022; and

●

The Company repurchased 200,346 shares of its common stock, which represented approximately 0.5% of shares outstanding at the beginning of the period, at a weighted-average price of $30.97 per share.

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Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the third quarter of 2022 was $100.4 million compared to $93.5 million for the second quarter of 2022 and $94.8 million for the third quarter of 2021.

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)	Q3 2022			Q2 2022			Q3 2021
Net interest income	$	100,438		$	93,512		$	94,828
Purchase accounting accretion on loans ("PAA")		(57)			117			(2,541)
Adjusted net interest income excluding PAA on loans (non-GAAP)	$	100,381		$	93,629		$	92,287

Average interest-earning assets	$	11,782,361		$	11,412,350		$	11,765,298

NIM⁽¹⁾		3.38	%		3.29	%		3.20	%
Adjusted NIM excluding PAA on loans (non-GAAP)⁽²⁾		3.38	%		3.29	%		3.11	%

(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 4.33% at September 30, 2022, a 39 basis point increase compared to the ending WAR on the total loan portfolio at June 30, 2022.

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


	September 30, 2022				June 30, 2022				September 30, 2021
($ in thousands)	Balance		WAR		Balance		WAR		Balance		WAR
Loans held for investment balances at period end:
Commercial and industrial ("C&I")	$	900,768	5.90	%	$	941,944	4.97	%	$	878,332	4.10	%
Owner-occupied commercial real estate		1,090,417	4.69			1,043,184	4.20			966,895	4.11
Business loans		1,991,185	5.24			1,985,128	4.57			1,845,227	4.11
One-to-four family residential, including condominium and cooperative apartment		722,081	3.77			691,586	3.60			683,665	3.68
Multifamily residential and residential mixed-use ⁽²⁾⁽³⁾		3,968,244	3.83			3,654,164	3.62			3,468,262	3.57
Non-owner-occupied commercial real estate		3,174,102	4.33			3,048,188	3.89			2,847,793	3.70
Acquisition, development, and construction		241,019	6.75			252,108	5.41			285,379	4.69
Other loans		8,927	7.29			10,789	7.16			20,462	4.97
Loans held for investment, excluding PPP loans		10,105,558	4.33			9,641,963	3.95			9,150,788	3.76
PPP loans		11,383	1.00			18,944	1.00			134,083	1.00
Total loans held for investment, including PPP loans	$	10,116,941	4.33	%	$	9,660,907	3.94	%	$	9,284,871	3.72	%

⁽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 amount of loans in the category.

⁽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.

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



($ in millions)	Q3 2022		Q2 2022		Q3 2021
Loan originations, excluding PPP loans	$	800.9	$	901.5	$	464.5

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Deposits

Total average deposits for the third quarter were $10.6 billion, compared to $10.3 billion for the second quarter. The cost of deposits increased by 23 basis points on a linked quarter basis. CEO O’Connor stated, “Despite the significant increase in interest rates, we grew average deposit balances on a linked quarter basis, maintained our non-interest bearing deposit ratio at approximately 37% and kept overall deposits costs relatively well-contained.”

Non-Interest Income

Non-interest income was $9.4 million during the third quarter of 2022, $12.1 million during the second quarter of 2022, and $9.7 million during the third quarter of 2021. Included in non-interest income during the third quarter of 2022 was a $1.4 million gain on the sale of a branch property. Included in non-interest income for the second quarter of 2022 was $2.2 million of income related to mortality proceeds from a death claim. Excluding the net gain on sale of securities and other assets, adjusted non-interest income was $8.0 million during the third quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Non-Interest Expense

Total non-interest expense was $48.3 million during the third quarter of 2022, $51.8 million during the second quarter of 2022, and $56.8 million during the third quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, severance expense, loss on extinguishment of debt, and amortization of other intangible assets, adjusted non-interest expense was $47.9 million during the third quarter of 2022, $48.5 million during the second quarter of 2022, and $49.1 million during the third quarter of 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The ratio of non-interest expense to average assets was 1.54% during the third quarter of 2022, compared to 1.71% during the linked quarter and 1.80% for the third quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, severance expense, loss on extinguishment of debt, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.53% during the third quarter of 2022, compared to 1.60% during the linked quarter and 1.56% for the third quarter of 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 44.0% during the third quarter of 2022, compared to 49.1% during the linked quarter and 54.3% during the third quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, severance expense, loss on extinguishment of debt, amortization of other intangible assets, and gain on sale of securities and other assets, the adjusted efficiency ratio was 44.2% during the third quarter of 2022, compared to 45.9% during the linked quarter and 46.9% during the third quarter of 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Income Tax Expense

The reported effective tax rate for the third quarter of 2022 was 28.1%, compared to 28.4% for the second quarter of 2022, and 27.5% for the third quarter of 2021.

Credit Quality

Non-performing loans at September 30, 2022 were $41.1 million, or 0.41% of total loans.

A credit loss provision of $6.6 million was recorded during the third quarter of 2022, compared to a credit loss provision of $44 thousand during the second quarter of 2022, and a credit loss recovery of $5.2 million during the third quarter of 2021. The credit loss provision for the third quarter was primarily associated with changes to the forecasted macroeconomic conditions used in the Bank’s allowance for credit loss model.

The allowance for credit losses as a percentage of total loans was 0.81% at September 30, 2022 as compared to 0.82% at June 30, 2022 and 0.88% at September 30, 2021.

Capital Management

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of September 30, 2022.

CEO O’Connor commented, “During the third quarter, we continued to execute on our share repurchase program and we repurchased $6.2 million of common stock. On a year-to-date basis we have repurchased approximately $46.5 million of common stock, representing approximately 4% of shares outstanding at the beginning of the year. Our regulatory capital ratios, which exclude the impact of the accumulated other comprehensive loss component of stockholders’ equity, continue to be very strong. Our solid asset quality metrics and internal stress testing analyses continue to provide support for growing our balance sheet and future capital return to shareholders.”

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Dividends per common share were $0.24 during the third quarter of 2022.

Book value per common share was $26.55 at September 30, 2022 compared to $26.41 at June 30, 2022. Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $22.34 at September 30, 2022 compared to $22.20 at June 30, 2022. Excluding the impact of AOCI, the adjusted tangible common book value per share was $24.75 at September 30, 2022 compared to $24.01 at June 30, 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 8:30 a.m. (ET) on Friday, October 28, 2022, during which CEO O’Connor will discuss the Company’s third quarter 2022 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/927279052.

Conference Call Details:

Dial-in for Live Call:

United States: 1-844-200-6205

International:+1-929-526-1599

Access code:728364

Telephone Replay:

A recording will be available until Friday, November 11, 2022.

United States: 1-866-813-9403

International:+44-204-525-0658

Access code: 471079

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 $12.8 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 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

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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. Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees work remotely. 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.

Contact: Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
718-782-6200 extension 5909

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DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)


	September 30,		June 30,		December 31,
	2022		2022		2021
Assets:
Cash and due from banks	$	312,996	$	281,487	$	393,722
Securities available-for-sale, at fair value		962,927		1,007,757		1,563,711
Securities held-to-maturity		591,403		579,965		179,309
Loans held for sale		289		530		5,493
Loans held for investment, net:
C&I		900,768		941,944		867,542
Owner-occupied commercial real estate		1,090,417		1,043,184		1,030,240
Total business loans		1,991,185		1,985,128		1,897,782
One-to-four family and cooperative/condominium apartment		722,081		691,586		669,282
Multifamily residential and residential mixed-use ⁽¹⁾⁽²⁾		3,968,244		3,654,164		3,356,346
Non-owner-occupied commercial real estate		3,174,102		3,048,188		2,915,708
Acquisition, development, and construction		241,019		252,108		322,628
Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans		11,383		18,944		66,017
Other loans		8,927		10,789		16,898
Allowance for credit losses		(81,935)		(79,426)		(83,853)
Total loans held for investment, net		10,035,006		9,581,481		9,160,808
Premises and fixed assets, net		47,406		48,686		50,368
Premises held for sale		—		556		556
Restricted stock		65,656		42,110		37,732
Bank Owned Life Insurance ("BOLI")		331,105		328,928		295,789
Goodwill		155,797		155,797		155,797
Other intangible assets		6,915		7,346		8,362
Operating lease assets		57,916		59,511		64,258
Derivative assets		162,679		106,917		45,086
Accrued interest receivable		41,567		38,382		40,149
Other assets		114,241		107,632		65,224
Total assets	$	12,885,903	$	12,347,085	$	12,066,364
Liabilities:
Non-interest-bearing checking	$	3,830,676	$	3,839,724	$	3,920,423
Interest-bearing checking		936,082		870,974		905,717
Savings		2,237,409		2,011,609		1,158,040
Money market		2,553,729		2,884,382		3,621,552
Certificates of deposit		930,774		959,312		853,242
Total deposits		10,488,670		10,566,001		10,458,974
FHLBNY advances		620,000		100,000		25,000
Other short-term borrowings		2,124		2,162		1,862
Subordinated debt, net		200,305		200,327		197,096
Derivative cash collateral		158,200		115,790		4,550
Operating lease liabilities		60,252		61,850		66,103
Derivative liabilities		144,343		93,420		40,728
Other liabilities		71,218		67,013		79,431
Total liabilities		11,745,112		11,206,563		10,873,744
Stockholders' equity:
Preferred stock, Series A		116,569		116,569		116,569
Common stock		416		416		416
Additional paid-in capital		495,232		495,266		494,125
Retained earnings		733,783		705,371		654,726
Accumulated other comprehensive loss ("AOCI"), net of deferred taxes		(93,036)		(69,950)		(6,181)
Unearned equity awards		(9,177)		(10,260)		(7,842)
Treasury stock, at cost		(102,996)		(96,890)		(59,193)
Total stockholders' equity		1,140,791		1,140,522		1,192,620
Total liabilities and stockholders' equity	$	12,885,903	$	12,347,085	$	12,066,364

⁽¹⁾ Includes loans underlying multifamily cooperatives.

⁽²⁾ 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.

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DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands except share and per share amounts)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2022		2022		2021		2022		2021
Interest income:
Loans	$	106,306	$	93,102	$	94,045	$	285,828	$	269,715
Securities		7,374		7,067		6,030		21,572		15,537
Other short-term investments		847		741		583		1,956		2,562
Total interest income		114,527		100,910		100,658		309,356		287,814
Interest expense:
Deposits and escrow		10,154		3,731		3,565		16,416		13,666
Borrowed funds		3,483		3,573		2,265		9,334		8,225
Derivative cash collateral		452		94		—		547		—
Total interest expense		14,089		7,398		5,830		26,297		21,891
Net interest income		100,438		93,512		94,828		283,059		265,923
Provision (credit) for credit losses		6,587		44		(5,187)		5,039		6,344
Net interest income after provision (credit)		93,851		93,468		100,015		278,020		259,579
Non-interest income:
Service charges and other fees		3,866		4,337		4,581		12,261		11,377
Title fees		474		683		482		1,578		1,603
Loan level derivative income		549		1,685		445		2,240		2,796
BOLI income		2,177		4,143		2,249		8,159		5,181
Gain on sale of SBA loans		211		723		348		1,176		1,485
Gain on sale of PPP loans		—		—		—		—		20,697
Gain on sale of residential loans		54		191		304		393		1,533
Net gain on equity securities		—		—		—		—		131
Net gain on sale of securities and other assets		1,397		—		—		1,397		730
Loss on termination of derivatives		—		—		—		—		(16,505)
Other		634		362		1,319		1,485		2,861
Total non-interest income		9,362		12,124		9,728		28,689		31,889
Non-interest expense:
Salaries and employee benefits		29,188		28,454		28,276		88,476		80,693
Severance		—		2,193		—		2,193		1,875
Occupancy and equipment		7,884		7,396		7,814		22,864		22,913
Data processing costs		3,434		3,913		3,573		11,152		12,132
Marketing		1,531		1,515		1,054		4,341		2,702
Professional services		2,116		2,028		2,751		6,238		7,154
Federal deposit insurance premiums		800		1,150		1,173		3,100		3,046
Loss on extinguishment of debt		—		740		—		740		1,751
Curtailment loss		—		—		—		—		1,543
Merger expenses and transaction costs		—		—		2,472		—		42,250
Branch restructuring		—		—		4,518		—		6,177
Amortization of other intangible assets		431		430		715		1,447		1,907
Other		2,918		4,019		4,437		9,477		10,327
Total non-interest expense		48,302		51,838		56,783		150,028		194,470
Income before taxes		54,911		53,754		52,960		156,681		96,998
Income tax expense		15,430		15,269		14,565		44,184		28,359
Net income		39,481		38,485		38,395		112,497		68,639
Preferred stock dividends		1,822		1,822		1,822		5,465		5,465
Net income available to common stockholders	$	37,659	$	36,663	$	36,573	$	107,032	$	63,174
Earnings per common share ("EPS"):
Basic	$	0.98	$	0.94	$	0.89	$	2.74	$	1.62
Diluted	$	0.98	$	0.94	$	0.89	$	2.74	$	1.62

Average common shares outstanding for diluted EPS		38,165,681		38,631,683		40,426,161		38,678,894		38,574,857

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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 Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2022			2022			2021			2022			2021
Per Share Data:
Reported EPS (Diluted)	$	0.98		$	0.94		$	0.89		$	2.74		$	1.62
Cash dividends paid per common share		0.24			0.24			0.24			0.72			0.72
Book value per common share		26.55			26.41			26.64			26.55			26.64
Tangible common book value per share ⁽¹⁾		22.34			22.20			22.60			22.34			22.60
Tangible common book value per share excluding AOCI ⁽¹⁾		24.75			24.01			22.63			24.75			22.63
Common shares outstanding		38,572			38,769			40,715			38,572			40,715
Dividend payout ratio		24.49	%		25.53	%		26.97	%		26.28	%		44.44	%

Performance Ratios (Based upon Reported Net Income):
Return on average assets		1.26	%		1.27	%		1.22	%		1.22	%		0.76	%
Return on average equity		13.56			13.44			12.69			12.83			8.00
Return on average tangible common equity ⁽¹⁾		17.15			17.08			15.96			16.20			9.84
Net interest margin		3.38			3.29			3.20			3.29			3.15
Non-interest expense to average assets		1.54			1.71			1.80			1.63			2.16
Efficiency ratio ⁽¹⁾		44.0			49.1			54.3			48.1			65.3
Effective tax rate		28.10			28.41			27.50			28.20			29.24

Balance Sheet Data:
Average assets	$	12,550,626		$	12,121,949		$	12,584,372		$	12,292,051		$	12,009,522
Average interest-earning assets		11,782,361			11,412,350			11,765,298			11,511,149			11,277,257
Average tangible common equity ⁽¹⁾		885,182			865,329			929,131			889,044			873,481
Loan-to-deposit ratio at end of period		96.5			91.4			87.0			96.5			87.0

Capital Ratios and Reserves - Consolidated: ⁽³⁾
Tangible common equity to tangible assets ⁽¹⁾		6.77	%		7.07	%		7.54	%
Tangible common equity excluding AOCI to tangible assets ⁽¹⁾		7.45			7.60			7.55
Tangible equity to tangible assets ⁽¹⁾		7.69			8.02			8.50
Tangible equity excluding AOCI to tangible assets ⁽¹⁾		8.36			8.55			8.51
Tier 1 common equity ratio		9.13			9.28			9.92
Tier 1 risk-based capital ratio		10.25			10.44			11.17
Total risk-based capital ratio		12.98			13.26			14.13
Tier 1 leverage ratio		8.61			8.71			8.37
CRE consolidated concentration ratio ⁽²⁾		555			534			516
Allowance for credit losses/ Total loans		0.81			0.82			0.88
Allowance for credit losses/ Non-performing loans		199.45			218.80			238.84

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

⁽²⁾ The CRE consolidated 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. September 30, 2022 amounts are preliminary pending completion and filing of the Company’s regulatory reports.

⁽³⁾	September 30, 2022 amounts are preliminary pending completion and filing of the Company’s regulatory reports.

Page 9

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME

(Dollars in thousands)


	Three Months Ended
	September 30, 2022						June 30, 2022						September 30, 2021
					Average						Average						Average
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Interest-earning assets:
Real estate loans	$	8,981,848	$	92,309	4.08	%	$	8,532,979	$	81,454	3.83	%	$	8,289,973	$	78,820	3.77	%
Commercial and industrial loans		940,628		13,837	5.84			935,813		11,503	4.93			1,134,980		14,786	5.17
Other loans		10,566		160	6.01			11,571		145	5.03			21,391		439	8.14
Securities		1,666,398		7,374	1.76			1,695,702		7,067	1.67			1,438,348		6,030	1.66
Other short-term investments		182,921		847	1.84			236,285		741	1.26			880,606		583	0.26
Total interest-earning assets		11,782,361		114,527	3.86	%		11,412,350		100,910	3.55	%		11,765,298		100,658	3.39	%
Non-interest-earning assets		768,265						709,599						819,074
Total assets	$	12,550,626					$	12,121,949					$	12,584,372

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	833,386	$	970	0.46	%	$	858,402	$	604	0.28	%	$	1,000,435	$	388	0.15	%
Money market		2,651,459		2,046	0.31			3,148,472		1,240	0.16			3,698,124		1,467	0.16
Savings		2,243,887		4,951	0.88			1,509,776		859	0.23			1,335,310		170	0.05
Certificates of deposit		988,827		2,187	0.88			827,286		1,028	0.50			1,138,853		1,540	0.54
Total interest-bearing deposits		6,717,559		10,154	0.60			6,343,936		3,731	0.24			7,172,722		3,565	0.20
FHLBNY advances		166,739		430	1.02			79,176		172	0.87			25,000		59	0.94
Subordinated debt, net		200,320		2,553	5.06			273,470		3,309	4.85			197,172		2,206	4.44
Other short-term borrowings		75,975		500	2.61			54,229		92	0.68			2,290		—	—
Total borrowings		443,034		3,483	3.12			406,875		3,573	3.52			224,462		2,265	4.00
Derivative cash collateral		111,325		452	1.61			98,995		94	0.38			1,695		—	—
Total interest-bearing liabilities		7,271,918		14,089	0.77	%		6,849,806		7,398	0.43	%		7,398,879		5,830	0.31	%
Non-interest-bearing checking		3,894,093						3,935,765						3,787,928
Other non-interest-bearing liabilities		219,883						191,066						186,977
Total liabilities		11,385,894						10,976,637						11,373,784
Stockholders' equity		1,164,732						1,145,312						1,210,588
Total liabilities and stockholders' equity	$	12,550,626					$	12,121,949					$	12,584,372
Net interest income			$	100,438					$	93,512					$	94,828
Net interest rate spread					3.09	%					3.12	%					3.08	%
Net interest margin					3.38	%					3.29	%					3.20	%
Deposits (including non-interest-bearing checking accounts)	$	10,611,652	$	10,154	0.38	%	$	10,279,701	$	3,731	0.15	%	$	10,960,650	$	3,565	0.13	%

Page 10

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS

(Dollars in thousands)


	At or For the Three Months Ended
	September 30,		June 30,		September 30,
Asset Quality Detail	2022		2022		2021
Non-performing loans ("NPLs") ⁽¹⁾
One-to-four family residential, including condominium and cooperative apartment	$	3,219	$	3,128	$	4,938
Multifamily residential and residential mixed-use		—		—		859
Commercial real estate		7,673		5,020		4,122
Acquisition, development, and construction		657		657		—
C&I		29,532		27,365		23,727
Other		—		131		374
Total Non-accrual loans	$	41,081	$	36,301	$	34,020
Total Non-performing assets ("NPAs")	$	41,081	$	36,301	$	34,020

Loans 90 days delinquent and accruing ("90+ Delinquent")
One-to-four family residential, including condominium and cooperative apartment	$	—	$	341	$	5,021
Multifamily residential and residential mixed-use		—		—		—
Commercial real estate		—		—		1,004
Acquisition, development, and construction		—		—		—
C&I		2,781		24		257
Other		—		—		—
90+ Delinquent	$	2,781	$	365	$	6,282

NPAs and 90+ Delinquent	$	43,862	$	36,666	$	40,302

NPAs and 90+ Delinquent / Total assets		0.34%		0.30%		0.33%
Net charge-offs (recoveries) ("NCOs")	$	3,932	$	555	$	4,191
NCOs / Average loans ⁽¹⁾		0.16%		0.02%		0.18%

(1)

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

Page 11

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 provide 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 the Company’s February 2021 merger with Bridge Bancorp, Inc., as well as a gain on sale of a branch property, branch restructuring, gain on sale of PPP loans, severance, and loss on extinguishment of debt:


	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2022			2022			2021			2022			2021
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income available to common stockholders	$	37,659		$	36,663		$	36,573		$	107,032		$	63,174
Adjustments to net income ^(1):
Provision for credit losses - Non-PCD loans (double-count)		—			—			—			—			20,278
Gain on sale of PPP loans		—			—			—			—			(20,697)
Net gain on sale of securities and other assets		(1,397)			—			—			(1,397)			(710)
Loss on termination of derivatives		—			—			—			—			16,505
Severance		—			2,193			—			2,193			1,875
Loss on extinguishment of debt		—			740			—			740			1,751
Curtailment loss		—			—			—			—			1,543
Merger expenses and transaction costs⁽²⁾		—			—			2,472			—			42,250
Branch restructuring		—			—			4,518			—			6,177
Income tax effect of adjustments and other tax adjustments		440			(295)			(2,191)			145			(19,187)
Adjusted net income available to common stockholders (non-GAAP)	$	36,702		$	39,301		$	41,372		$	108,713		$	112,959

Adjusted Ratios (Based upon non-GAAP as calculated above)
Adjusted EPS (Diluted)	$	0.95		$	1.01		$	1.01		$	2.78		$	2.90
Adjusted return on average assets		1.23	%		1.36	%		1.37	%		1.24	%		1.31	%
Adjusted return on average equity		13.23			14.36			14.27			13.02			13.80
Adjusted return on average tangible common equity		16.72			18.30			18.02			16.45			17.44
Adjusted non-interest expense to average assets		1.53			1.60			1.56			1.58			1.54
Adjusted efficiency ratio		44.2			45.9			46.9			46.9			47.4

⁽¹⁾ Adjustments to net income are taxed at the Company's statutory tax rate of approximately 31% unless otherwise noted.

⁽²⁾ Certain merger expenses and transaction costs are non-taxable expense.

Page 12

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						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2022		2022		2021		2022		2021
Operating expense as a % of average assets - as reported	1.54	%	1.71	%	1.80	%	1.63	%	2.16	%
Loss on extinguishment of debt	—		(0.03)		—		(0.01)		(0.02)
Curtailment loss	—		—		—		—		(0.02)
Severance	—		(0.07)		—		(0.02)		(0.02)
Merger expenses and transaction costs	—		—		(0.08)		—		(0.47)
Branch restructuring	—		—		(0.14)		—		(0.07)
Amortization of other intangible assets	(0.01)		(0.01)		(0.02)		(0.02)		(0.02)
Adjusted operating expense as a % of average assets (non-GAAP)	1.53		1.60		1.56		1.58		1.54

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


	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2022			2022			2021			2022			2021
Efficiency ratio - as reported (non-GAAP) (1)		44.0	%		49.1	%		54.3	%		48.1	%		65.3	%
Non-interest expense - as reported	$	48,302		$	51,838		$	56,783		$	150,028		$	194,470
Severance		—			(2,193)			—			(2,193)			(1,875)
Merger expenses and transaction costs		—			—			(2,472)			—			(42,250)
Branch restructuring		—			—			(4,518)			—			(6,177)
Loss on extinguishment of debt		—			(740)			—			(740)			(1,751)
Curtailment loss		—			—			—			—			(1,543)
Amortization of other intangible assets		(431)			(430)			(715)			(1,447)			(1,907)
Adjusted non-interest expense (non-GAAP)	$	47,871		$	48,475		$	49,078		$	145,648		$	138,967
Net interest income - as reported	$	100,438		$	93,512		$	94,828		$	283,059		$	265,923
Non-interest income - as reported	$	9,362		$	12,124		$	9,728		$	28,689		$	31,889
Gain on sale of PPP loans		—			—			—			—			(20,697)
Net gain on sale of securities and other assets		(1,397)			—			—			(1,397)			(710)
Loss on termination of derivatives		—			—			—			—			16,505
Adjusted non-interest income (non-GAAP)	$	7,965		$	12,124		$	9,728		$	27,292		$	26,987
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)	$	108,403		$	105,636		$	104,556		$	310,351		$	292,910
Adjusted efficiency ratio (non-GAAP) (2)		44.2	%		45.9	%		46.9	%		46.9	%		47.4	%

(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 13

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):


	September 30,			June 30,			September 30,
	2022			2022			2021
Reconciliation of Tangible Assets:
Total assets	$	12,885,903		$	12,347,085		$	12,364,381
Goodwill		(155,797)			(155,797)			(155,339)
Other intangible assets		(6,915)			(7,346)			(9,077)
Tangible assets (non-GAAP)	$	12,723,191		$	12,183,942		$	12,199,965

Reconciliation of Tangible Common Equity - Consolidated:
Total stockholders' equity	$	1,140,791		$	1,140,522		$	1,201,117
Goodwill		(155,797)			(155,797)			(155,339)
Other intangible assets		(6,915)			(7,346)			(9,077)
Tangible equity (non-GAAP)		978,079			977,379			1,036,701
Preferred stock, net		(116,569)			(116,569)			(116,569)
Tangible common equity (non-GAAP)	$	861,510		$	860,810		$	920,132

Tangible common equity (non-GAAP)	$	861,510		$	860,810		$	920,132
AOCI, net of deferred taxes		93,036			69,950			1,042
Tangible common equity excluding AOCI (non-GAAP)	$	954,546		$	930,760		$	921,174

Tangible equity (non-GAAP)	$	978,079		$	977,379		$	1,036,701
AOCI, net of deferred taxes		93,036			69,950			1,042
Tangible equity excluding AOCI (non-GAAP)	$	1,071,115		$	1,047,329		$	1,037,743

Common shares outstanding		38,572			38,769			40,715

Tangible common equity to tangible assets (non-GAAP)		6.77	%		7.07	%		7.54	%
Tangible common equity excluding AOCI to tangible assets (non-GAAP)		7.45			7.60			7.55
Tangible equity to tangible assets (non-GAAP)		7.69			8.02			8.50
Tangible equity excluding AOCI to tangible assets (non-GAAP)		8.36			8.55			8.51

Book value per share	$	26.55		$	26.41		$	26.64
Tangible common book value per share (non-GAAP)		22.34			22.20			22.60
Tangible common book value per share excluding AOCI (non-GAAP)		24.75			24.01			22.63