EX-99 2 dcom-20230127xex99.htm EX-99

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Exhibit 99.1

Graphic

Dime Community Bancshares, Inc. Reports Strong Fourth Quarter 2022 Results With
Earnings Per Share Increasing By 19% On a Year-Over-Year Basis

Robust Loan Originations Drive Over $1.3 Billion in Loan Growth for Fiscal Year 2022

Fourth Quarter Results Highlighted by Strong Non Interest Income Growth,
Prudent Expense Management and Improved Credit Quality

Hauppauge, NY, January 27, 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 $145.3 million for the year ended December 31, 2022, or $3.73 per diluted common share, compared to $96.7 million for the year ended December 31, 2021 or $2.45 per diluted common share.

Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “As we close the book on 2022, we can reflect on an extremely successful year for our Company. Reported net income available to common shareholders for the twelve months ended December 31, 2022 increased by 50% on a year-over-year basis. Importantly, we delivered consistent financial results throughout 2022 as demonstrated by an annual return on assets in excess of 1.20% and an efficiency ratio below 50%. We made numerous investments in our business and people over the year, including a buildout of our middle market commercial lending operations. Finally, we were very proud to achieve an overall “Outstanding” rating for our Community Reinvestment Act rating from the Federal Reserve Bank of New York.”

For the quarter ended December 31, 2022, net income available to common stockholders was $38.2 million, or $0.99 per diluted common share, compared to $37.7 million, or $0.98 per diluted common share, for the quarter ended September 30, 2022, and $33.5 million, or $0.83 per diluted common share, for the quarter ended December 31, 2021.

Highlights for the Fourth Quarter of 2022 Included:

Total loans held for investment, net, increased by $450 million or 18% on an annualized basis versus the linked quarter;
Total business loan balances increased by $215 million or 43% on an annualized basis versus the linked quarter;
Non-interest income increased to $9.5 million during the fourth quarter of 2022. Excluding the impact of a $1.4 million gain on sale of a branch property in the third quarter, non-interest income during the third quarter of 2022 was $8.0 million. The increase in non-interest income was driven by customer-related loan swap revenue and SBA gain on sale revenue;
Non-interest expense to average assets remained well controlled at 1.56% for the fourth quarter, compared to 1.54% for the prior quarter and 1.64% for the year-ago quarter; and
Credit quality continues to be strong with non-performing assets and loans 90 days past due and accruing declining by 22% versus the linked quarter and representing only 0.26% of total assets as of December 31, 2022.


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Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the fourth quarter of 2022 was $96.8 million compared to $100.4 million for the third quarter of 2022 and $91.7 million for the fourth 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)

    

Q4 2022

    

Q3 2022

    

Q4 2021

 

Net interest income

$

96,804

$

100,438

$

91,686

Purchase accounting accretion on loans ("PAA")

(390)

(57)

625

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

$

96,414

$

100,381

$

92,311

Average interest-earning assets

$

12,198,905

$

11,782,361

$

11,582,086

NIM (1)

 

3.15

%  

 

3.38

%  

 

3.14

%

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

 

3.14

%  

 

3.38

%  

3.16

%

(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 4.76% at December 31, 2022, a 43 basis point increase compared to the ending WAR on the total loan portfolio at September 30, 2022.

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

December 31, 2022

September 30, 2022

December 31, 2021

 

($ in thousands)

    

Balance

    

WAR

    

Balance

    

WAR

    

Balance

    

WAR

 

Loans held for investment balances at period end:

  

  

  

  

  

  

 

Commercial and industrial ("C&I")

$

1,065,916

 

7.00

%  

$

900,768

 

5.90

%  

$

867,542

 

4.08

%

Owner-occupied commercial real estate

 

1,140,145

 

5.16

 

1,090,417

 

4.69

 

1,030,240

 

4.05

Business loans

2,206,061

6.05

1,991,185

5.24

1,897,782

4.06

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

 

773,321

 

3.96

 

722,081

 

3.77

 

669,282

 

3.63

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

4,026,826

4.08

3,968,244

3.83

3,356,346

3.56

Non-owner-occupied commercial real estate

 

3,317,485

 

4.68

 

3,174,102

 

4.33

 

2,915,708

 

3.69

Acquisition, development, and construction

 

229,663

 

8.19

 

241,019

 

6.75

 

322,628

 

4.53

Other loans

7,679

10.22

8,927

7.29

16,898

5.85

Loans held for investment, excluding PPP loans

10,561,035

4.76

10,105,558

4.33

9,178,644

3.75

PPP loans

 

5,796

 

1.00

 

11,383

 

1.00

 

66,017

 

1.00

Total loans held for investment, including PPP loans

$

10,566,831

 

4.76

%  

$

10,116,941

 

4.33

%  

$

9,244,661

 

3.73

%

(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, for the quarter ended as indicated.

 

($ in millions)

    

Q4 2022

    

Q3 2022

    

Q4 2021

Loan originations

$

638.3

$

800.9

$

463.9


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Deposits

Total average deposits for the fourth quarter of 2022 were $10.4 billion, compared to $10.6 billion for the third quarter of 2022. The cost of deposits increased by 46 basis points on a linked quarter basis. CEO O’Connor stated, “Despite the rapid increase in market interest rates and the competitive environment for deposit balances, we were able to maintain average non-interest bearing deposit balances to average total deposit balances at approximately 36.2% for the fourth quarter of 2022.”

Non-Interest Income

Non-interest income was $9.5 million during the fourth quarter of 2022, $9.4 million during the third quarter of 2022, and $10.2 million during the fourth 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.

Non-Interest Expense

Total non-interest expense was $50.7 million during the fourth quarter of 2022, $48.3 million during the third quarter of 2022, and $50.8 million during the fourth 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 $50.3 million during the fourth quarter of 2022, $47.9 million during the third quarter of 2022, and $48.7 million during the fourth 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 1.56% during the fourth quarter of 2022, compared to 1.54% during the linked quarter and 1.64% for the fourth 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 1.55% during the fourth quarter of 2022, compared to 1.53% during the linked quarter and 1.57% for the fourth quarter of 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 47.7% during the fourth quarter of 2022, compared to 44.0% during the linked quarter and 49.9% during the fourth 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 47.3% during the fourth quarter of 2022, compared to 44.2% during the linked quarter and 48.2% during the fourth 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 fourth quarter of 2022 was 27.5%, compared to 28.1% for the third quarter of 2022, and 30.9% for the fourth quarter of 2021.

Credit Quality

Non-performing loans at December 31, 2022 were $34.2 million, or 0.32% of total loans.

A credit loss provision of $0.3 million was recorded during the fourth quarter of 2022, compared to a credit loss provision of $6.6 million during the third quarter of 2022, and a credit loss recovery of $132 thousand during the fourth quarter of 2021. The credit loss provision for the fourth quarter of 2022 was associated with growth in the loan portfolio offset by a reduction in reserves on individually evaluated loans and unfunded commitments.

The allowance for credit losses as a percentage of total loans was 0.79% at December 31, 2022 as compared to 0.81% at September 30, 2022 and 0.91% at December 31, 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 December 31, 2022.

CEO O’Connor commented, “Our strong internal capital generation allowed us to keep our capital ratios steady in the quarter, while supporting approximately $450 million of quarterly loan growth. Over the course of 2022, we repurchased approximately $47 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.”

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


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Book value per common share was $27.41 at December 31, 2022 compared to $26.55 at September 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 $23.20 at December 31, 2022 compared to $22.34 at September 30, 2022. Excluding the impact of accumulated other comprehensive income, the adjusted tangible common book value per share was $25.54 at December 31, 2022 compared to $24.75 at September 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, January 27, 2023, during which CEO O’Connor will discuss the Company’s fourth 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/499210648.

Conference Call Details:

Dial-in for Live Call:

United States: 1-844-200-6205

International:+1-929-526-1599

Access code:269082

Telephone Replay:

A recording will be available until Friday, February 10, 2023.

United States: 1-866-813-9403

International:+44-204-525-0658

Access code: 964093

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 $13.1 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


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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)

    

December 31, 

    

September 30, 

    

December 31, 

2022

2022

2021

Assets:

 

  

 

  

 

  

Cash and due from banks

$

169,297

$

312,996

$

393,722

Securities available-for-sale, at fair value

 

950,587

 

962,927

 

1,563,711

Securities held-to-maturity

585,798

591,403

179,309

Loans held for sale

289

5,493

Loans held for investment, net:

 

  

 

  

 

  

C&I

1,065,916

 

900,768

 

867,542

Owner-occupied commercial real estate

1,140,145

 

1,090,417

 

1,030,240

Total business loans

 

2,206,061

 

1,991,185

 

1,897,782

One-to-four family and cooperative/condominium apartment

 

773,321

 

722,081

 

669,282

Multifamily residential and residential mixed-use (1)(2)

 

4,026,826

 

3,968,244

 

3,356,346

Non-owner-occupied commercial real estate

 

3,317,485

 

3,174,102

 

2,915,708

Acquisition, development, and construction

 

229,663

 

241,019

 

322,628

Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans

 

5,796

 

11,383

 

66,017

Other loans

 

7,679

 

8,927

 

16,898

Allowance for credit losses

 

(83,507)

 

(81,935)

 

(83,853)

Total loans held for investment, net

 

10,483,324

 

10,035,006

 

9,160,808

Premises and fixed assets, net

 

46,749

 

47,406

 

50,368

Premises held for sale

556

Restricted stock

 

88,745

 

65,656

 

37,732

Bank Owned Life Insurance ("BOLI")

 

333,292

 

331,105

 

295,789

Goodwill

 

155,797

 

155,797

 

155,797

Other intangible assets

 

6,484

 

6,915

 

8,362

Operating lease assets

 

57,857

 

57,916

 

64,258

Derivative assets

 

154,485

 

162,679

 

45,086

Accrued interest receivable

 

48,561

 

41,567

 

40,149

Other assets

 

113,084

 

114,241

 

65,224

Total assets

$

13,194,060

$

12,885,903

$

12,066,364

Liabilities:

 

  

 

  

 

  

Non-interest-bearing checking

$

3,519,218

$

3,830,676

$

3,920,423

Interest-bearing checking

 

827,454

 

936,082

 

905,717

Savings

 

2,260,101

 

2,237,409

 

1,158,040

Money market

 

2,532,270

 

2,553,729

 

3,621,552

Certificates of deposit

 

1,115,364

 

930,774

 

853,242

Total deposits

 

10,254,407

 

10,488,670

 

10,458,974

FHLBNY advances

 

1,131,000

 

620,000

 

25,000

Other short-term borrowings

 

1,360

 

2,124

 

1,862

Subordinated debt, net

 

200,283

 

200,305

 

197,096

Derivative cash collateral

153,040

158,200

4,550

Operating lease liabilities

 

60,340

 

60,252

 

66,103

Derivative liabilities

 

137,335

 

144,343

 

40,728

Other liabilities

 

82,573

 

71,218

 

79,431

Total liabilities

 

12,020,338

 

11,745,112

 

10,873,744

Stockholders' equity:

 

  

 

  

 

  

Preferred stock, Series A

 

116,569

 

116,569

 

116,569

Common stock

 

416

 

416

 

416

Additional paid-in capital

 

495,410

 

495,232

 

494,125

Retained earnings

 

762,762

 

733,783

 

654,726

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

 

(90,240)

 

(93,036)

 

(6,181)

Unearned equity awards

 

(8,078)

 

(9,177)

 

(7,842)

Treasury stock, at cost

 

(103,117)

 

(102,996)

 

(59,193)

Total stockholders' equity

 

1,173,722

 

1,140,791

 

1,192,620

Total liabilities and stockholders' equity

$

13,194,060

$

12,885,903

$

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

Year Ended

    

December 31, 

    

September 30, 

    

December 31, 

    

December 31, 

    

December 31, 

2022

2022

2021

2022

2021

Interest income:

 

  

 

  

 

  

 

  

 

  

Loans

$

120,773

$

106,306

$

89,301

$

406,601

$

359,016

Securities

 

7,652

 

7,374

 

7,097

 

29,224

 

22,634

Other short-term investments

 

1,444

 

847

 

414

 

3,400

 

2,976

Total interest income

 

129,869

 

114,527

 

96,812

 

439,225

 

384,626

Interest expense:

 

  

 

 

  

 

  

 

  

Deposits and escrow

 

22,017

 

10,154

 

2,861

 

38,433

 

16,527

Borrowed funds

 

9,783

 

3,483

 

2,265

 

19,117

 

10,490

Derivative cash collateral

1,265

452

1,812

Total interest expense

 

33,065

 

14,089

 

5,126

 

59,362

 

27,017

Net interest income

 

96,804

 

100,438

 

91,686

 

379,863

 

357,609

Provision (credit) for credit losses

 

335

 

6,587

 

(132)

 

5,374

 

6,212

Net interest income after provision (credit)

 

96,469

 

93,851

 

91,818

 

374,489

 

351,397

Non-interest income:

 

  

 

 

  

 

  

 

  

Service charges and other fees

 

3,945

 

3,866

 

4,621

 

16,206

 

15,998

Title fees

453

474

735

2,031

2,338

Loan level derivative income

 

1,397

 

549

 

113

 

3,637

 

2,909

BOLI income

 

2,187

 

2,177

 

1,890

 

10,346

 

7,071

Gain on sale of SBA loans

 

621

 

211

 

851

 

1,797

 

2,336

Gain on sale of PPP loans

20,697

Gain on sale of residential loans

 

55

 

54

 

225

 

448

 

1,758

Net gain on equity securities

131

Net gain on sale of securities and other assets

 

 

1,397

 

975

 

1,397

 

1,705

Loss on termination of derivatives

 

 

 

 

 

(16,505)

Other

 

809

 

634

 

769

 

2,294

 

3,630

Total non-interest income

 

9,467

 

9,362

 

10,179

 

38,156

 

42,068

Non-interest expense:

 

  

 

 

 

  

 

  

Salaries and employee benefits

 

31,632

 

29,188

 

27,638

 

120,108

 

108,331

Severance

5

2,198

1,875

Occupancy and equipment

 

7,356

 

7,884

 

7,784

 

30,220

 

30,697

Data processing costs

 

4,023

 

3,434

 

4,506

 

15,175

 

16,638

Marketing

 

1,559

 

1,531

 

1,959

 

5,900

 

4,661

Professional services

1,831

2,116

2,130

8,069

9,284

Federal deposit insurance premiums

 

800

 

800

 

1,031

 

3,900

 

4,077

Loss on extinguishment of debt

740

1,751

Curtailment loss

1,543

Merger expenses and transaction costs

 

 

 

2,574

 

 

44,824

Branch restructuring

(1,118)

5,059

Amortization of other intangible assets

 

431

 

431

 

715

 

1,878

 

2,622

Other

 

3,065

 

2,918

 

3,610

 

12,542

 

13,937

Total non-interest expense

 

50,702

 

48,302

 

50,829

 

200,730

 

245,299

Income before taxes

 

55,234

 

54,911

 

51,168

 

211,915

 

148,166

Income tax expense

 

15,175

 

15,430

 

15,811

 

59,359

 

44,170

Net income

 

40,059

 

39,481

 

35,357

 

152,556

 

103,996

Preferred stock dividends

 

1,821

 

1,822

 

1,821

 

7,286

 

7,286

Net income available to common stockholders

$

38,238

$

37,659

$

33,536

$

145,270

$

96,710

Earnings per common share ("EPS"):

 

  

 

  

 

  

 

  

 

  

Basic

$

0.99

$

0.98

$

0.83

$

3.73

$

2.45

Diluted

$

0.99

$

0.98

$

0.83

$

3.73

$

2.45

Average common shares outstanding for diluted EPS

 

38,123,221

 

38,165,681

 

39,876,825

 

38,538,834

 

38,903,037


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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 Year Ended

 

    

December 31, 

    

September 30, 

    

December 31, 

    

December 31, 

    

December 31, 

 

2022

2022

2021

2022

2021

 

Per Share Data:

 

  

 

  

 

  

 

  

 

  

Reported EPS (Diluted)

$

0.99

$

0.98

$

0.83

$

3.73

$

2.45

Cash dividends paid per common share

 

0.24

 

0.24

 

0.24

 

0.96

 

0.96

Book value per common share

 

27.41

 

26.55

 

26.98

 

27.41

26.98

Tangible common book value per share (1)

 

23.20

 

22.34

 

22.87

 

23.20

22.87

Tangible common book value per share excluding AOCI (1)

25.54

24.75

23.02

25.54

23.02

Common shares outstanding

38,573

38,572

39,878

38,573

39,878

Dividend payout ratio

 

24.24

%  

 

24.49

%  

 

28.92

%  

 

25.74

%  

 

39.18

%

Performance Ratios (Based upon Reported Net Income):

 

  

 

  

 

  

 

  

 

  

Return on average assets

 

1.23

%  

 

1.26

%  

 

1.14

%  

 

1.22

%  

 

0.86

%

Return on average equity

 

13.72

 

13.56

 

11.67

 

13.05

 

8.96

Return on average tangible common equity (1)

 

17.34

 

17.15

 

14.61

 

16.48

 

11.09

Net interest margin

 

3.15

 

3.38

 

3.14

 

3.25

 

3.15

Non-interest expense to average assets

 

1.56

 

1.54

 

1.64

 

1.61

 

2.03

Efficiency ratio (1)

 

47.7

 

44.0

 

49.9

 

48.0

 

61.4

Effective tax rate

 

27.47

 

28.10

 

30.90

 

28.01

 

29.81

Balance Sheet Data:

 

  

 

  

 

  

 

  

 

  

Average assets

$

12,985,248

$

12,550,626

$

12,419,184

$

12,466,774

$

12,112,800

Average interest-earning assets

 

12,198,905

 

11,782,361

 

11,582,086

 

11,684,501

 

11,354,111

Average tangible common equity (1)

 

889,018

 

885,182

 

931,503

 

889,038

 

888,128

Loan-to-deposit ratio at end of period

 

103.0

 

96.5

 

88.4

 

103.0

88.4

Capital Ratios and Reserves - Consolidated: (3)

 

  

 

  

 

  

 

  

 

  

Tangible common equity to tangible assets (1)

 

6.87

%  

 

6.77

%  

 

7.66

%  

 

Tangible common equity excluding AOCI to tangible assets (1)

7.56

7.50

7.71

Tangible equity to tangible assets (1)

 

7.76

 

7.69

 

8.64

 

Tangible equity excluding AOCI to tangible assets (1)

8.45

 

8.42

 

8.69

 

Tier 1 common equity ratio

 

9.15

 

9.13

 

9.49

 

Tier 1 risk-based capital ratio

 

10.23

 

10.25

 

10.69

 

Total risk-based capital ratio

 

12.89

 

12.98

 

13.45

 

Tier 1 leverage ratio

 

8.53

 

8.61

 

8.46

 

CRE consolidated concentration ratio (2)

 

554

 

555

 

519

 

Allowance for credit losses/ Total loans

 

0.79

 

0.81

 

0.91

 

Allowance for credit losses/ Non-performing loans

 

243.91

 

199.45

 

208.04

 

(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. December 31, 2022 amounts are preliminary pending completion and filing of the Company’s regulatory reports.

(3)

December 31, 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

 

December 31, 2022

September 30, 2022

December 31, 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

$

9,370,045

$

104,218

 

4.41

%  

$

8,981,848

$

92,309

 

4.08

%  

$

8,293,470

$

78,367

 

3.75

%

Commercial and industrial loans

 

957,151

 

16,430

 

6.81

 

940,628

 

13,837

 

5.84

 

969,338

 

10,702

 

4.38

Other loans

 

8,269

 

125

 

6.00

 

10,566

 

160

 

6.01

 

18,385

 

232

 

5.01

Securities

 

1,663,969

 

7,652

 

1.82

 

1,666,398

 

7,374

 

1.76

 

1,729,191

 

7,097

 

1.63

Other short-term investments

 

199,471

 

1,444

 

2.87

 

182,921

 

847

 

1.84

 

571,702

 

414

 

0.29

Total interest-earning assets

 

12,198,905

 

129,869

 

4.22

%  

 

11,782,361

 

114,527

 

3.86

%  

 

11,582,086

 

96,812

 

3.32

%

Non-interest-earning assets

 

786,343

 

  

 

  

 

768,265

 

  

 

 

837,098

 

  

 

Total assets

$

12,985,248

 

  

 

  

$

12,550,626

 

  

 

$

12,419,184

 

  

 

Liabilities and Stockholders' Equity:

 

  

 

  

 

  

 

  

 

  

 

 

  

 

  

 

Interest-bearing liabilities:

 

  

 

  

 

  

 

  

 

  

 

 

  

 

  

 

Interest-bearing checking

$

845,530

$

1,174

 

0.55

%  

$

833,386

$

970

 

0.46

%  

$

962,597

$

455

 

0.19

%

Money market

 

2,469,177

 

6,620

 

1.06

 

2,651,459

 

2,046

 

0.31

 

3,652,681

 

1,087

 

0.12

Savings

 

2,234,968

 

9,889

 

1.76

 

2,243,887

 

4,951

 

0.88

 

1,174,719

 

108

 

0.04

Certificates of deposit

 

1,063,053

 

4,334

 

1.62

 

988,827

 

2,187

 

0.88

 

915,210

 

1,211

 

0.52

Total interest-bearing deposits

 

6,612,728

 

22,017

 

1.32

 

6,717,559

 

10,154

 

0.60

 

6,705,207

 

2,861

 

0.17

FHLBNY advances

 

724,902

 

6,383

 

3.49

 

166,739

 

430

 

1.02

 

25,000

61

 

0.97

Subordinated debt, net

 

200,298

 

2,553

 

5.06

 

200,320

 

2,553

 

5.06

 

197,126

2,204

 

4.44

Other short-term borrowings

 

90,275

 

847

 

3.72

 

75,975

 

500

 

2.61

 

2,484

 

Total borrowings

 

1,015,475

 

9,783

 

3.82

 

443,034

 

3,483

 

3.12

 

224,610

 

2,265

 

4.00

Derivative cash collateral

157,898

1,265

3.18

111,325

452

1.61

3,842

Total interest-bearing liabilities

 

7,786,101

 

33,065

 

1.68

%  

 

7,271,918

 

14,089

 

0.77

%  

 

6,933,659

 

5,126

 

0.29

%

Non-interest-bearing checking

 

3,755,395

 

  

 

  

 

3,894,093

 

  

 

  

 

4,092,204

 

  

 

  

Other non-interest-bearing liabilities

 

275,636

 

  

 

  

 

219,883

 

  

 

  

 

181,074

 

  

 

  

Total liabilities

 

11,817,132

 

  

 

  

 

11,385,894

 

  

 

  

 

11,206,937

 

  

 

  

Stockholders' equity

 

1,168,116

 

  

 

  

 

1,164,732

 

  

 

  

 

1,212,247

 

  

 

  

Total liabilities and stockholders' equity

$

12,985,248

 

  

 

  

$

12,550,626

 

  

 

  

$

12,419,184

 

  

 

  

Net interest income

 

  

$

96,804

 

  

 

  

$

100,438

 

  

 

  

$

91,686

 

  

Net interest rate spread

 

  

 

  

 

2.54

%  

 

  

 

  

 

3.09

%  

 

  

 

  

 

3.03

%

Net interest margin

 

  

 

  

 

3.15

%  

 

  

 

  

 

3.38

%  

 

  

 

  

 

3.14

%

Deposits (including non-interest-bearing checking accounts)

$

10,368,123

$

22,017

 

0.84

%  

$

10,611,652

$

10,154

 

0.38

%  

$

10,797,411

$

2,861

 

0.11

%


Page 10

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS

(Dollars in thousands)

    

At or For the Three Months Ended

December 31, 

    

September 30, 

    

December 31, 

Asset Quality Detail

2022

2022

2021

Non-performing loans ("NPLs")

 

  

 

  

 

  

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

$

3,203

$

3,219

$

7,623

Multifamily residential and residential mixed-use

 

 

 

Commercial real estate

 

8,332

 

7,673

 

5,053

Acquisition, development, and construction

657

657

C&I

 

21,946

 

29,532

 

27,266

Other

 

99

 

 

365

Total Non-accrual loans

$

34,237

$

41,081

$

40,307

Total Non-performing assets ("NPAs")

$

34,237

$

41,081

$

40,307

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

 

  

 

  

 

  

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

$

$

$

1,945

Multifamily residential and residential mixed-use

 

 

 

Commercial real estate

 

 

 

Acquisition, development, and construction

C&I

 

 

2,781

 

1,056

Other

 

 

 

90+ Delinquent

$

$

2,781

$

3,001

NPAs and 90+ Delinquent

$

34,237

$

43,862

$

43,308

NPAs and 90+ Delinquent / Total assets

0.26%

0.34%

0.36%

Net charge-offs (recoveries) ("NCOs")

$

185

$

3,932

$

(108)

NCOs / Average loans (1)

0.01%

0.16%

0.00%

(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

Year Ended

 

    

December 31, 

    

September 30, 

    

December 31, 

    

December 31, 

December 31, 

 

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

$

38,238

$

37,659

$

33,536

$

145,270

$

96,710

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)

 

(975)

1,397

(1,685)

Loss on termination of derivatives

16,505

Severance

 

5

 

 

2,198

1,875

Loss on extinguishment of debt

740

1,751

Curtailment loss

1,543

Merger expenses and transaction costs (2)

 

 

 

2,574

44,824

Branch restructuring

(1,118)

5,059

Income tax effect of adjustments and other tax adjustments

440

(234)

145

(19,421)

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

$

38,243

$

36,702

$

33,783

$

149,750

$

146,742

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

 

  

 

  

 

  

 

  

Adjusted EPS (Diluted)

$

0.99

$

0.95

$

0.84

$

3.77

$

3.73

Adjusted return on average assets

 

1.23

%  

 

1.23

%  

 

1.15

%  

 

1.24

%  

 

1.27

%

Adjusted return on average equity

 

13.72

 

13.23

 

11.75

 

13.20

 

13.26

Adjusted return on average tangible common equity

 

17.34

 

16.72

 

14.72

 

16.67

 

16.73

Adjusted non-interest expense to average assets

 

1.55

 

1.53

 

1.57

 

1.57

 

1.55

Adjusted efficiency ratio

 

47.3

 

44.2

 

48.2

 

47.0

 

47.6

(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

Year Ended

    

December 31, 

September 30, 

December 31, 

December 31, 

    

December 31, 

 

2022

2022

2021

2022

2021

 

Operating expense as a % of average assets - as reported

 

1.56

%  

1.54

%  

1.64

%  

1.61

%  

2.03

%

Loss on extinguishment of debt

(0.01)

(0.01)

Curtailment loss

(0.02)

Severance

(0.02)

(0.02)

Merger expenses and transaction costs

(0.08)

(0.37)

Branch restructuring

0.03

(0.04)

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)

 

1.55

1.53

1.57

1.57

1.55

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

Three Months Ended

Year Ended

 

    

December 31, 

    

September 30, 

    

December 31, 

    

December 31, 

    

December 31, 

 

2022

2022

2021

2022

2021

 

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

    

47.7

%  

44.0

%  

49.9

%  

48.0

%  

61.4

%

Non-interest expense - as reported

$

50,702

$

48,302

$

50,829

$

200,730

$

245,299

Severance

(5)

(2,198)

(1,875)

Merger expenses and transaction costs

(2,574)

(44,824)

Branch restructuring

1,118

(5,059)

Loss on extinguishment of debt

(740)

(1,751)

Curtailment loss

(1,543)

Amortization of other intangible assets

 

(431)

 

(431)

 

(715)

 

(1,878)

 

(2,622)

Adjusted non-interest expense (non-GAAP)

$

50,266

$

47,871

$

48,658

$

195,914

$

187,625

Net interest income - as reported

$

96,804

$

100,438

$

91,686

$

379,863

$

357,609

Non-interest income - as reported

$

9,467

$

9,362

$

10,179

$

38,156

$

42,068

Gain on sale of PPP loans

(20,697)

Net gain on sale of securities and other assets

 

 

(1,397)

 

(975)

 

(1,397)

 

(1,685)

Loss on termination of derivatives

16,505

Adjusted non-interest income (non-GAAP)

$

9,467

$

7,965

$

9,204

$

36,759

$

36,191

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

$

106,271

$

108,403

$

100,890

$

416,622

$

393,800

Adjusted efficiency ratio (non-GAAP) (2)

 

47.3

%  

 

44.2

%  

 

48.2

%  

 

47.0

%  

 

47.6

%


(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):

    

December 31, 

    

September 30, 

    

December 31, 

 

2022

2022

2021

 

Reconciliation of Tangible Assets:

 

 

  

 

  

Total assets

$

13,194,060

$

12,885,903

$

12,066,364

Goodwill

 

(155,797)

 

(155,797)

 

(155,797)

Other intangible assets

(6,484)

 

(6,915)

 

(8,362)

Tangible assets (non-GAAP)

$

13,031,779

$

12,723,191

$

11,902,205

Reconciliation of Tangible Common Equity - Consolidated:

Total stockholders' equity

$

1,173,722

$

1,140,791

$

1,192,620

Goodwill

 

(155,797)

 

(155,797)

 

(155,797)

Other intangible assets

(6,484)

 

(6,915)

 

(8,362)

Tangible equity (non-GAAP)

1,011,441

978,079

1,028,461

Preferred stock, net

 

(116,569)

 

(116,569)

 

(116,569)

Tangible common equity (non-GAAP)

$

894,872

$

861,510

$

911,892

Tangible common equity (non-GAAP)

$

894,872

$

861,510

$

911,892

AOCI, net of deferred taxes

 

90,240

 

93,036

 

6,181

Tangible common equity excluding AOCI (non-GAAP)

$

985,112

$

954,546

$

918,073

Tangible equity (non-GAAP)

$

1,011,441

$

978,079

$

1,028,461

AOCI, net of deferred taxes

 

90,240

 

93,036

 

6,181

Tangible equity excluding AOCI (non-GAAP)

$

1,101,681

$

1,071,115

$

1,034,642

Common shares outstanding

38,573

38,572

39,878

Tangible common equity to tangible assets (non-GAAP)

6.87

%  

6.77

%  

7.66

%  

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

7.56

7.50

7.71

Tangible equity to tangible assets (non-GAAP)

7.76

7.69

8.64

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

8.45

8.42

8.69

Book value per share

$

27.41

$

26.55

$

26.98

Tangible common book value per share (non-GAAP)

23.20

22.34

22.87

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

25.54

24.75

23.02