Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or
“Dime” or “its”), the parent company of Dime Community Bank (the
“Bank”), today reported net income to common stockholders of $14.0
million for the quarter ended September 30, 2020, or $0.42 per
diluted common share, compared with net income to common
stockholders of $11.8 million for the quarter ended June 30, 2020,
or $0.35 per diluted common share, and net income to common
stockholders of $4.7 million for the quarter ended September 30,
2019, or $0.13 per diluted common share.
Excluding the pre-tax impact of $0.8 million of
merger related expenses and $0.2 million of income from gain on
sale of securities, earnings per share (“EPS”) for the quarter
ended September 30, 2020 would have been $0.44 per diluted
share.
Mr. Kenneth J. Mahon, Chief Executive Officer
(“CEO”) of the Company, stated, “Third quarter of 2020 EPS of $0.44
(on a core basis) represents a record for Dime in our history as a
publicly traded company. We had solid growth in our loan portfolio
and continued net interest margin expansion. In addition, expenses
remained well controlled and non-performing assets declined. Our
earnings profile and robust capital base helps position us well to
serve our customers and communities, our employees and investors.
Our merger integration teams are making good progress on the
previously announced transaction with Bridge Bancorp, Inc. We are
well on our way to create a foundational franchise that has the
opportunity to become one of the elite regional bank competitors in
New York and on Long Island.”
Highlights for the Third Quarter of 2020
Included:
- Linked quarter net interest margin
(“NIM”) expansion of 6 basis points primarily driven by a 28 basis
point linked quarter decrease in the cost of deposits;
- Strong growth in checking account
balances. Compared to the third quarter of 2019, the sum of average
non-interest-bearing checking account balances and average
interest-bearing checking account balances for the third quarter of
2020 increased by 61.1% to $894.1 million;
- The efficiency ratio declined to
49.0% in the third quarter of 2020;
- Total non-interest income increased
by 83% on a year-over-year basis to $6.1 million, driven by $1.5
million of customer-related loan level swap income, $0.8 million of
income from the sale of Small Business Administration (“SBA”)
loans, and $0.6 million from the sale of residential mortgage
loans;
- Capital levels remain strong; our
tangible equity to tangible assets ratio was 9.73% at September 30,
2020 (see “Non-GAAP Reconciliation” tables at the end of this news
release). Excluding the impact of SBA Paycheck Protection Program
(“PPP”) loans, the ratio would have been 10.22%; and
- Non-performing assets declined by
19.2% on a linked quarter basis and represent only 0.19% of total
assets.
Loans with Payment
Deferrals
The Company is seeing positive trends as an
increasing number of loans exit deferment.
As of September 30, 2020, Principal and Interest
(“P&I”) deferrals decreased to $272.0 million or 4.9% of the
total loan portfolio. Furthermore, an additional 1.1% of our
portfolio is currently comprised of loans that are paying full
interest and escrow, and only deferring principal payments.
($ in
millions) |
As of September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
Total Loan Portfolio |
|
P&I Deferrals |
|
|
|
|
|
|
|
% of
Loan |
|
|
|
Balance |
|
LTV |
|
Balance |
|
Category |
|
LTV |
One-to-four family and coop/condo |
$ |
184.8 |
|
51.9 |
% |
|
$ |
8.8 |
|
4.7 |
% |
|
55.2 |
% |
Multifamily
residential and residential mixed-use |
|
2,915.0 |
|
51.7 |
|
|
|
192.3 |
|
6.6 |
|
|
60.5 |
|
Commercial
mixed-use |
|
362.0 |
|
46.4 |
|
|
|
16.1 |
|
4.4 |
|
|
51.4 |
|
|
|
|
|
|
|
|
|
|
|
Pure
commercial real estate (“CRE”): |
|
|
|
|
|
|
|
|
|
Retail |
|
309.7 |
|
53.4 |
|
|
|
13.4 |
|
4.3 |
|
|
65.8 |
|
Office |
|
322.1 |
|
61.1 |
|
|
|
10.5 |
|
3.3 |
|
|
56.7 |
|
Hotels |
|
171.4 |
|
65.7 |
|
|
|
- |
|
- |
|
|
- |
|
Warehouse |
|
134.3 |
|
64.6 |
|
|
|
- |
|
- |
|
|
- |
|
Single Tenant |
|
80.8 |
|
45.4 |
|
|
|
8.9 |
|
11.1 |
|
|
50.9 |
|
Shopping Center |
|
79.7 |
|
43.3 |
|
|
|
- |
|
- |
|
|
- |
|
Industrial |
|
65.1 |
|
60.9 |
|
|
|
- |
|
- |
|
|
- |
|
All Other |
|
147.8 |
|
56.1 |
|
|
|
10.1 |
|
6.8 |
|
|
43.5 |
|
Total Pure
CRE |
|
1,310.9 |
|
56.6 |
|
|
|
42.9 |
|
3.3 |
|
|
55.2 |
|
|
|
|
|
|
|
|
|
|
|
Acquisition,
Development, and Construction |
|
151.9 |
|
n/a |
|
|
|
- |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
- |
|
Commercial
and industrial (“C&I”) |
|
650.0 |
|
n/a |
|
|
|
12.0 |
|
1.9 |
|
|
n/a |
|
Other
Loans |
|
1.4 |
|
n/a |
|
|
|
- |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
5,576.0 |
|
|
|
$ |
272.0 |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Note: Loan balances exclude deferred fees and costs. |
As of September 30, 2020, the Company had 15 loans
aggregating $25.6 million to restaurants. As of September 30, 2020,
there were no loans with P&I deferrals to restaurants. The
Company does not have any exposure to the energy industry, airline
industry, leveraged lending, shared national credits, credits card
loans, or auto loans.
Mr. Mahon commented, “We are encouraged by the
positive trends we are seeing across our loan portfolio. The
multigenerational nature of our multifamily borrower base, coupled
with the low loan-to-value (“LTV”) nature of our multifamily
portfolio (weighted average LTV of approximately 51.7% at September
30, 2020) and our capital strength and earnings profile provides me
confidence in our prospects.”
Management’s Discussion of Quarterly
Operating Results
Net Interest Income
Net interest income in the third quarter of 2020
was $44.9 million, an increase of $1.4 million (3.2%) from the
second quarter of 2020 and an increase of $8.7 million (24.2%) from
the third quarter of 2019. The table below provides a
reconciliation of the reported NIM and the NIM excluding the impact
of loan prepayment fees.
($ in millions) |
Q3 2020 |
Q2 2020 |
Q3 2019 |
NIM |
|
2.92 |
% |
|
2.86 |
% |
|
2.34 |
% |
Net Interest Income |
$ |
44,944 |
|
$ |
43,556 |
|
$ |
36,196 |
|
Income from Loan Prepayment Activity |
$ |
524 |
|
$ |
1,737 |
|
$ |
830 |
|
Net Interest Income Excluding Prepayment Fee Income |
$ |
44,399 |
|
$ |
41,819 |
|
$ |
35,366 |
|
NIM, Excluding Prepayment Fee |
|
2.88 |
% |
|
2.75 |
% |
|
2.28 |
% |
Mr. Mahon commented, “Our NIM (excluding the
impact of prepayment fees) has now increased for eight consecutive
quarters. Our successful business model transformation (from thrift
to commercial bank) continues to produce the expected trends on
NIM.”
Average interest-earning assets were $6.16
billion for the third quarter of 2020, a 4.8% (annualized) increase
from $6.09 billion for the second quarter of 2020, and a 0.4%
decrease from $6.19 billion for the third quarter of 2019. For the
third quarter of 2020, the average yield on interest-earning assets
was 3.72%, a decrease of 13 basis points compared with the second
quarter of 2020, and a decrease of 17 basis points compared to the
third quarter of 2019. The linked quarter decline in yield was
primarily attributable to a decline in income from loan prepayment
activity.
The ending weighted average rate (“WAR”) on the
total loan portfolio was 3.76% at September 30, 2020, a one basis
point decline compared to the ending WAR on the total loan
portfolio at June 30, 2020, and a 26 basis point decrease versus
the ending WAR on the total loan portfolio at September 30, 2019.
The WAR on the total loan portfolio as of September 30, 2020 was
negatively impacted by PPP loans ($318.6 million of loans at
September 30, 2020). Excluding the impact of PPP loans, the WAR on
the loan portfolio was 3.94% at September 30, 2020, compared to
3.94% at June 30, 2020, and 4.02% at September 30, 2019.
The average cost of borrowed funds (which
primarily consist of Federal Home Loan Bank advances) was 1.98% for
the third quarter of 2020, a decrease of 2 basis points versus the
second quarter of 2020, and a decrease of 41 basis points versus
the third quarter of 2019.
Loans
The real estate loan portfolio increased by
$122.1 million (10.2% annualized) during the third quarter of 2020.
Total real estate loan originations were $277.7 million during the
third quarter of 2020, at a weighted average interest rate of
3.53%. Real estate loan amortization and satisfactions totaled
$113.9 million, or 9.4% (annualized) of the portfolio balance, at
an average rate of 3.65%. The annualized real estate loan payoff
rate of 9.4% for the third quarter of 2020 was lower than both the
second quarter of 2020 (23.1% annualized) and the third quarter of
2019 (15.1% annualized).
Average real estate loans were $4.87 billion in
the third quarter of 2020, flat compared to the second quarter of
2020, and a decrease of $314.2 million (6.1%) from the third
quarter of 2019.
Average C&I loans were $643.4 million in the
third quarter of 2020 (including average SBA PPP loans of $316.7
million), an increase of $124.4 million (95.9% annualized) from the
second quarter of 2020, and an increase of $330.9 million (105.9%)
from the third quarter of 2019.
Outlined below are the loan originations for the
current quarter, linked quarter and prior year quarter.
($s in millions) |
Originations/ Weighted Average Rate |
|
Q3 2020 |
Q2 2020 |
Q3 2019 |
Real Estate Originations |
$277.7/3.53% |
$208.8/2.91% |
$166.0/4.93% |
C&I Originations |
$41.2/4.93% |
$15.0/4.19% |
$26.5/6.07% |
SBA PPP Originations |
$7.1/1.00% |
$319.4/1.00% |
n/a |
Deposits and Borrowed Funds
The Company continues to focus on growing
relationship-based business deposits. Mr. Mahon commented,
“Importantly, we continue to improve the quality of our deposit
base, as evidenced by the non-interest- bearing deposits to total
deposits ratio increasing to approximately 15.1% at September 30,
2020, compared to 9.5% at September 30, 2019.”
Total deposits decreased by $65.9 million on a
linked quarter basis to $4.37 billion at September 30, 2020. Mr.
Mahon commented, “The decrease in total deposits was due to
pro-active downward pricing adjustments on certain higher-cost
deposit segments. We remain steadfast in our commitment to grow
lower cost relationship based deposits.”
The cost of total deposits for the quarter ended
September 30, 2020 decreased 28 basis points on a linked quarter
basis. As of September 30, 2020, the Company had $483.3 million of
certificates of deposits, with a weighted average rate of 1.03%,
that were set to mature during the fourth quarter of 2020. Mr.
Mahon commented, “Given the repricing opportunity for certificates
of deposits in the fourth quarter of 2020, we expect our deposit
costs to continue trending downwards.”
Total borrowings (excluding subordinated debt
securities) increased to $1.20 billion at September 30, 2020,
compared to $1.02 billion at the second quarter of 2020, and $1.20
billion at the third quarter of 2019.
Non-Interest Income
Non-interest income was $6.1 million during the
third quarter of 2020, $8.4 million during the second quarter of
2020, and $3.4 million during the third quarter of 2019. Excluding
gains and losses on equity securities and from sales of securities
and other assets, non-interest income was $5.8 million during the
third quarter of 2020 compared to $4.8 million during the second
quarter of 2020 and $3.3 million during the third quarter of
2019.
Mr. Mahon commented, “Our commercial bank
operation continues to produce the desired results on fee income
growth, especially as it relates to gaining significant traction
with our commercial customers on interest rate swap products. In
addition, our business line diversification into SBA and
residential lending produced strong gain-on-sale revenue.”
Non-Interest Expense Remains Well
Controlled
Total non-interest expense was $24.9 million
during the third quarter of 2020, $29.3 million during the second
quarter of 2020, and $22.8 million during the third quarter of
2019. Excluding the impact of severance and merger-related
expenses, non-interest expense was $24.1 million during the third
quarter of 2020, $24.3 million during the second quarter of 2020,
and $22.8 million during the third quarter of 2019.
The ratio of non-interest expense to average
assets was 1.53% during the third quarter of 2020, compared to
1.84% during the linked quarter and 1.41% for the third quarter of
2019. Excluding the impact of severance and merger-related
expenses, the ratio of non-interest expense to average assets was
1.48% during the third quarter of 2020, compared to 1.52% during
the linked quarter and 1.41% for the third quarter of 2019.
The efficiency ratio was 49.0% during the third
quarter of 2020, compared to 60.7% during the linked quarter and
57.7% during the third quarter of 2019. Excluding the impact of
severance and merger-related expenses and gain on sale of
securities, the efficiency ratio was 47.5% during the third quarter
of 2020, compared to 50.3% during the linked quarter and 57.7%
during the third quarter of 2019.
Income Tax Expense
The reported effective tax rate for the third
quarter of 2020 was 21.9%, compared to 21.6% for the second quarter
of 2020, and 15.3% for the third quarter of 2019.
Credit Quality
Non-performing loans at September 30, 2020
declined to $12.4 million, or 0.22% of total loans, compared to
$15.4 million, or 0.28% of total loans, at June 30, 2020.
Under Section 4014 of the Coronavirus Aid,
Relief, and Economic Security Act (the “CARES” Act), financial
institutions had the option to delay the adoption of the Current
Expected Credit Loss (“CECL”) framework until the earlier of
December 31, 2020 or when the national emergency is lifted. The
Bank elected to defer adoption of CECL and is utilizing its
existing incurred loss framework.
A loan loss provision of $5.9 million was
recorded during the third quarter of 2020, compared to a loan loss
provision of $6.1 million during the second quarter of 2020, and a
loan loss provision of $11.2 million during the third quarter of
2019. The $5.9 million provision for the third quarter of 2020 was
primarily associated with an increase in the general loan loss
reserve due to the adjustment of qualitative factors tied to the
Bank’s existing incurred loss framework, to account for the effects
of the COVID-19 pandemic and related economic disruption.
The allowance for loan losses was 0.87% of total
loans at September 30, 2020 as compared to 0.78% of total loans at
June 30, 2020. Excluding $318.6 million of PPP loans, the ratio of
allowance for losses to total loans at September 30, 2020 would
have been 0.92%.
At September 30, 2020, non-performing assets
represented 2.1% of the sum of tangible equity plus the allowance
for loan losses and reserve for contingent liabilities (see
“Problem Assets as a Percentage of Tangible Equity and Reserves”
table and “Non-GAAP Reconciliation” table at the end of this news
release).
Capital Management
The Company’s regulatory capital ratios
continued to be in excess of all applicable regulatory
requirements. At September 30, 2020, the Consolidated Tier 1
capital to average assets (“leverage ratio”) was 10.10%, while the
Tier 1 capital to risk-weighted assets and Total capital to
risk-weighted assets ratios were 13.02% and 16.30%,
respectively.
The Bank’s regulatory capital ratios continued
to be in excess of all applicable regulatory requirements. At
September 30, 2020, the Bank’s leverage ratio was 9.97%, while the
Tier 1 capital to risk-weighted assets and Total capital to
risk-weighted assets ratios were 12.88% and 13.87%,
respectively.
Mr. Mahon commented, “Excluding the impact of
the PPP loans, our tangible equity to tangible assets ratio would
have been 10.22% at September 30, 2020; this is well above the
previously communicated 9.25% minimum target for this ratio that we
disclosed during our first quarter earnings call.”
Diluted earnings per common share of $0.42
exceeded the quarterly $0.14 cash dividend per share by 200.0%
during the third quarter of 2020, equating to a 33.3% dividend
payout ratio.
Book value per common share increased to $17.48
and tangible common book value per share (common equity less
goodwill divided by number of shares outstanding) (see “Non-GAAP
Reconciliation” tables at the end of this news release) increased
to $15.79 at September 30, 2020.
Earnings Call Information
The Company will conduct a conference call at
8:00 a.m. (ET) on October 28, 2020, during which Chief Executive
Officer, Kenneth J. Mahon, will discuss the Company’s third quarter
performance, with a Q&A session to follow. Dial-in information
for the live call is 1-888-348-2672. Upon dialing in, request to be
joined into Dime Community Bancshares, Inc. call with the
conference operator.
The conference call will be simultaneously
webcast (listen only), and archived for a period of one year, at
https://services.choruscall.com/links/dcom201028.html. Dial-in
information for the replay is 1-877-344-7529 using access code
#10148582. Replay will be available October 28, 2020 (10:00 a.m.)
through November 4, 2020 (11:59 p.m.).
ABOUT DIME COMMUNITY BANCSHARES,
INC. The Company had $6.62 billion in consolidated assets
as of September 30, 2020. The Bank was founded in 1864, is
headquartered in Brooklyn, New York, and currently has 28 retail
branches located throughout Brooklyn, Queens, the Bronx, Nassau and
Suffolk Counties, New York. More information on the Company and the
Bank can be found on Dime's website at www.dime.com.
This news release contains a number of
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
These statements may be identified by use of words such as
"anticipate," "believe," “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 include statements regarding the proposed merger of the
Company with Bridge Bancorp, Inc. (the “Merger”). 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 reduce interest margins; changes in deposit flows,
loan demand or real estate values may adversely affect the business
of the Company and/or the Bank; 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
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; 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; we may incur unexpected expenses and
delays related to the Merger; or we may be unable to obtain
regulatory approvals or satisfy other closing conditions required
to complete the Merger. 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 increasingly work remotely.
Contact: Avinash Reddy
Senior Executive Vice President – Chief Financial
Officer 718-782-6200 extension 5909
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
(Dollars in thousands except share
amounts) |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
June 30, |
|
|
December 31, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
ASSETS: |
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
147,283 |
|
|
$ |
117,013 |
|
|
$ |
155,488 |
|
Mortgage-backed securities
available-for-sale, at fair value |
443,824 |
|
|
464,279 |
|
|
502,464 |
|
Investment securities available-for-sale, at fair value |
81,773 |
|
|
77,728 |
|
|
48,531 |
|
Marketable equity securities,
at fair value |
5,759 |
|
|
5,707 |
|
|
5,894 |
|
Real Estate
Loans: |
|
|
|
|
|
|
|
|
One-to-four family and cooperative/condominium apartment |
186,975 |
|
|
182,264 |
|
|
148,429 |
|
Multifamily residential and residential mixed-use (1)(2) |
2,919,186 |
|
|
2,988,511 |
|
|
3,385,375 |
|
Commercial real estate and commercial mixed-use |
1,675,488 |
|
|
1,504,020 |
|
|
1,350,185 |
|
Acquisition, development, and construction ("ADC") |
151,866 |
|
|
136,606 |
|
|
118,365 |
|
Total real estate loans |
4,933,515 |
|
|
4,811,401 |
|
|
5,002,354 |
|
Commercial and industrial ("C&I") |
323,972 |
|
|
321,009 |
|
|
336,412 |
|
Small Business Administration ("SBA") Paycheck Protection Program
("PPP") loans |
318,568 |
|
|
310,509 |
|
|
- |
|
Other loans |
1,448 |
|
|
1,463 |
|
|
1,772 |
|
Allowance for credit losses |
(48,492 |
) |
|
(42,492 |
) |
|
(28,441 |
) |
Total loans, net |
5,529,011 |
|
|
5,401,890 |
|
|
5,312,097 |
|
Premises and fixed assets, net |
20,539 |
|
|
21,423 |
|
|
21,692 |
|
Premises held for sale |
- |
|
|
- |
|
|
514 |
|
Loans held for sale |
2,625 |
|
|
1,794 |
|
|
500 |
|
Federal Home Loan Bank of New York ("FHLBNY") capital stock |
57,305 |
|
|
52,305 |
|
|
56,019 |
|
Bank Owned Life Insurance ("BOLI") |
155,068 |
|
|
154,036 |
|
|
114,257 |
|
Goodwill |
55,638 |
|
|
55,638 |
|
|
55,638 |
|
Operating lease assets |
35,503 |
|
|
36,813 |
|
|
37,858 |
|
Derivative assets |
19,845 |
|
|
18,475 |
|
|
2,443 |
|
Accrued Interest
Receivable |
33,774 |
|
|
27,506 |
|
|
18,891 |
|
Other assets |
31,444 |
|
|
32,914 |
|
|
22,174 |
|
TOTAL
ASSETS |
$ |
6,619,391 |
|
|
$ |
6,467,521 |
|
|
$ |
6,354,460 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
Non-interest-bearing checking |
$ |
658,297 |
|
|
$ |
664,323 |
|
|
$ |
478,549 |
|
Interest-bearing checking |
244,696 |
|
|
231,201 |
|
|
151,491 |
|
Savings |
403,262 |
|
|
406,771 |
|
|
374,265 |
|
Money Market |
1,708,757 |
|
|
1,742,563 |
|
|
1,705,451 |
|
Sub-total |
3,015,012 |
|
|
3,044,858 |
|
|
2,709,756 |
|
Certificates of deposit |
1,357,510 |
|
|
1,393,554 |
|
|
1,572,869 |
|
Total Due to
Depositors |
4,372,522 |
|
|
4,438,412 |
|
|
4,282,625 |
|
Escrow and other deposits |
119,626 |
|
|
87,646 |
|
|
76,481 |
|
FHLBNY advances |
1,128,400 |
|
|
1,017,300 |
|
|
1,092,250 |
|
Subordinated notes payable, net |
114,016 |
|
|
113,979 |
|
|
113,906 |
|
Other borrowings |
70,000 |
|
|
5,000 |
|
|
110,000 |
|
Operating lease liabilities |
41,314 |
|
|
42,733 |
|
|
44,098 |
|
Derivative liabilities |
47,955 |
|
|
48,979 |
|
|
9,080 |
|
Other liabilities |
31,400 |
|
|
31,929 |
|
|
29,262 |
|
TOTAL LIABILITIES |
5,925,233 |
|
|
5,785,978 |
|
|
5,757,702 |
|
STOCKHOLDERS'
EQUITY: |
|
|
|
|
|
|
|
|
Preferred stock, Series A ($0.01 par, $25.00 liquidation value,
9,000,000 shares authorized, 5,299,200 shares |
|
|
|
|
|
|
|
|
shares issued and outstanding at September 30, 2020 and June 30,
2020, and none issued or outstanding at December 31, 2019) |
116,569 |
|
|
116,569 |
|
|
- |
|
Common stock ($0.01 par, 125,000,000 shares authorized, 53,724,233
shares, 53,724,233 shares and 53,721,189 shares issued at |
|
|
|
|
|
|
|
|
September 30, 2020, June 30, 2020, and December 31, 2019,
respectively, and 33,049,822 shares, 33,089,585 shares and
35,154,642 |
|
|
|
|
|
|
|
shares outstanding at September 30, 2020, June 30, 2020, and
December 31, 2019, respectively) |
537 |
|
|
537 |
|
|
537 |
|
Additional paid-in capital |
278,580 |
|
|
278,581 |
|
|
279,322 |
|
Retained earnings |
601,913 |
|
|
592,497 |
|
|
581,817 |
|
Accumulated other comprehensive loss, net of deferred taxes |
(11,539 |
) |
|
(14,403 |
) |
|
(5,940 |
) |
Unearned equity awards |
(6,695 |
) |
|
(7,549 |
) |
|
(6,731 |
) |
Common Stock held by the Benefit Maintenance Plan |
(1,496 |
) |
|
(1,496 |
) |
|
(1,496 |
) |
Treasury stock, at cost (20,674,411 shares, 20,634,648 shares and
18,566,547 shares at September 30, 2020, June 30, 2020 and |
|
|
|
|
|
|
|
|
December 31, 2019, respectively) |
(283,711 |
) |
|
(283,193 |
) |
|
(250,751 |
) |
TOTAL STOCKHOLDERS'
EQUITY |
694,158 |
|
|
681,543 |
|
|
596,758 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ |
6,619,391 |
|
|
$ |
6,467,521 |
|
|
$ |
6,354,460 |
|
|
|
|
|
|
|
|
|
|
(1) Includes loans underlying
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. |
|
|
|
|
|
|
|
|
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Dollars in thousands except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
September 30, |
|
September 30, |
|
|
2020 |
|
2020 |
|
2019 |
|
|
2020 |
|
2019 |
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Loans secured by real estate |
$ |
47,482 |
|
$ |
49,058 |
|
$ |
50,732 |
|
|
$ |
146,657 |
|
$ |
150,720 |
|
Commercial and industrial ("C&I") loans |
5,752 |
|
5,071 |
|
4,442 |
|
|
14,868 |
|
12,012 |
|
Other loans |
11 |
|
13 |
|
18 |
|
|
39 |
|
54 |
|
Mortgage-backed securities |
2,707 |
|
3,064 |
|
2,973 |
|
|
9,076 |
|
9,131 |
|
Investment securities |
715 |
|
582 |
|
626 |
|
|
1,718 |
|
1,616 |
|
Other short-term investments |
729 |
|
846 |
|
1,488 |
|
|
2,577 |
|
4,392 |
|
Total interest income |
57,396 |
|
58,634 |
|
60,279 |
|
|
174,935 |
|
177,925 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits and escrow |
6,672 |
|
9,700 |
|
16,582 |
|
|
28,298 |
|
47,870 |
|
Borrowed funds |
5,780 |
|
5,378 |
|
7,501 |
|
|
17,613 |
|
22,031 |
|
Total interest expense |
12,452 |
|
15,078 |
|
24,083 |
|
|
45,911 |
|
69,901 |
|
Net interest income |
44,944 |
|
43,556 |
|
36,196 |
|
|
129,024 |
|
108,024 |
|
Provision for loan losses |
5,931 |
|
6,060 |
|
11,228 |
|
|
20,003 |
|
11,100 |
|
Net interest income after provision for loan
losses |
39,013 |
|
37,496 |
|
24,968 |
|
|
109,021 |
|
96,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
Service charges and other fees |
1,632 |
|
1,083 |
|
1,780 |
|
|
3,918 |
|
4,143 |
|
Mortgage banking income, net |
71 |
|
52 |
|
77 |
|
|
189 |
|
206 |
|
Gain on equity securities |
175 |
|
436 |
|
14 |
|
|
139 |
|
430 |
|
Gain (loss) on sale of securities and other assets |
215 |
|
3,134 |
|
66 |
|
|
3,357 |
|
(67 |
) |
Gain on sale of loans |
1,425 |
|
206 |
|
443 |
|
|
1,946 |
|
1,037 |
|
Income from BOLI |
1,033 |
|
911 |
|
723 |
|
|
3,831 |
|
2,124 |
|
Loan level derivative income |
1,544 |
|
2,494 |
|
197 |
|
|
5,201 |
|
488 |
|
Other |
54 |
|
70 |
|
61 |
|
|
190 |
|
180 |
|
Total non-interest income |
6,149 |
|
8,386 |
|
3,361 |
|
|
18,771 |
|
8,541 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
13,512 |
|
14,719 |
|
12,948 |
|
|
43,077 |
|
36,893 |
|
Severance pay |
- |
|
3,930 |
|
- |
|
|
4,000 |
|
- |
|
Stock benefit plan compensation expense |
804 |
|
478 |
|
574 |
|
|
1,953 |
|
1,349 |
|
Occupancy and equipment |
4,046 |
|
3,959 |
|
3,970 |
|
|
12,061 |
|
11,666 |
|
Data processing costs |
2,146 |
|
2,007 |
|
1,803 |
|
|
6,177 |
|
5,777 |
|
Marketing |
134 |
|
136 |
|
466 |
|
|
667 |
|
1,397 |
|
Federal deposit insurance premiums |
761 |
|
529 |
|
(506 |
) |
|
1,767 |
|
534 |
|
Merger expenses |
769 |
|
1,072 |
|
- |
|
|
2,427 |
|
- |
|
Other |
2,681 |
|
2,516 |
|
3,519 |
|
|
8,110 |
|
9,506 |
|
Total non-interest expense |
24,853 |
|
29,346 |
|
22,774 |
|
|
80,239 |
|
67,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
20,309 |
|
16,536 |
|
5,555 |
|
|
47,553 |
|
38,343 |
|
Income tax expense |
4,441 |
|
3,570 |
|
850 |
|
|
10,327 |
|
9,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
15,868 |
|
12,966 |
|
4,705 |
|
|
37,226 |
|
29,241 |
|
Preferred stock dividends |
1,822 |
|
1,140 |
|
- |
|
|
2,962 |
|
- |
|
Net income available to common stockholders |
$ |
14,046 |
|
$ |
11,826 |
|
$ |
4,705 |
|
|
$ |
34,264 |
|
$ |
29,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common
Share ("EPS"): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.43 |
|
$ |
0.36 |
|
$ |
0.13 |
|
|
$ |
1.02 |
|
$ |
0.81 |
|
Diluted |
$ |
0.42 |
|
$ |
0.35 |
|
$ |
0.13 |
|
|
$ |
1.01 |
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding for Diluted
EPS |
32,907,696 |
|
33,243,700 |
|
35,769,461 |
|
|
33,628,210 |
|
35,866,059 |
|
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, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported EPS (Diluted) |
$ |
0.42 |
|
|
$ |
0.35 |
|
|
$ |
0.13 |
|
|
$ |
1.01 |
|
|
$ |
0.81 |
|
Cash dividends paid per common share |
0.14 |
|
|
0.14 |
|
|
0.14 |
|
|
0.42 |
|
|
0.42 |
|
Book value per common
share |
17.48 |
|
|
17.07 |
|
|
16.94 |
|
|
17.48 |
|
|
16.94 |
|
Tangible common book value per
share (1) |
15.79 |
|
|
15.39 |
|
|
15.39 |
|
|
15.79 |
|
|
15.39 |
|
Dividend payout ratio |
33.33 |
% |
|
40.00 |
% |
|
107.69 |
% |
|
41.58 |
% |
|
51.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(Based upon Reported Net Income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
0.98 |
% |
|
0.81 |
% |
|
0.29 |
% |
|
0.78 |
% |
|
0.61 |
% |
Return on average equity |
9.22 |
|
|
7.96 |
|
|
3.08 |
|
|
7.59 |
|
|
6.42 |
% |
Return on average tangible equity (1) |
10.03 |
|
|
8.71 |
|
|
3.39 |
|
|
8.27 |
|
|
7.07 |
% |
Return on average tangible common equity (1) |
10.88 |
|
|
9.23 |
|
|
3.39 |
|
|
8.76 |
|
|
7.07 |
% |
Net interest spread |
2.72 |
|
|
2.61 |
|
|
2.07 |
|
|
2.53 |
|
|
2.06 |
% |
Net interest margin |
2.92 |
|
|
2.86 |
|
|
2.34 |
|
|
2.79 |
|
|
2.34 |
% |
Average interest-earning assets to average interest-bearing
liabilities |
125.10 |
|
|
124.97 |
|
|
118.38 |
|
|
123.68 |
|
|
118.70 |
% |
Non-interest expense to average assets |
1.53 |
|
|
1.84 |
|
|
1.41 |
|
|
1.68 |
|
|
1.40 |
% |
Efficiency ratio |
49.02 |
|
|
60.67 |
|
|
57.69 |
|
|
55.61 |
|
|
57.76 |
% |
Loan-to-deposit ratio at end of period |
127.56 |
|
|
122.67 |
|
|
124.86 |
|
|
127.56 |
|
|
124.86 |
% |
CRE consolidated concentration
ratio (2) |
545.10 |
|
|
544.90 |
|
|
678.90 |
|
|
545.10 |
|
|
678.90 |
% |
Effective tax rate |
21.87 |
|
|
21.59 |
|
|
15.30 |
|
|
21.72 |
|
|
23.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
$ |
6,492,173 |
|
|
$ |
6,389,768 |
|
|
$ |
6,446,382 |
|
|
$ |
6,363,767 |
|
|
$ |
6,400,652 |
|
Average interest-earning
assets |
6,164,452 |
|
|
6,091,545 |
|
|
6,191,299 |
|
|
6,069,114 |
|
|
6,145,701 |
|
Average loans |
5,519,607 |
|
|
5,387,839 |
|
|
5,503,233 |
|
|
5,397,425 |
|
|
5,480,330 |
|
Average deposits |
4,421,090 |
|
|
4,413,182 |
|
|
4,416,143 |
|
|
4,337,594 |
|
|
4,378,729 |
|
Average equity |
688,396 |
|
|
651,319 |
|
|
610,487 |
|
|
654,104 |
|
|
607,238 |
|
Average tangible equity
(1) |
632,758 |
|
|
595,681 |
|
|
554,849 |
|
|
600,048 |
|
|
551,600 |
|
Average tangible common equity
(1) |
516,189 |
|
|
512,371 |
|
|
554,849 |
|
|
521,385 |
|
|
551,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans (excluding loans held for sale) |
$ |
12,424 |
|
|
$ |
15,383 |
|
|
$ |
16,378 |
|
|
$ |
12,424 |
|
|
$ |
16,378 |
|
Non-performing assets |
12,424 |
|
|
15,383 |
|
|
16,378 |
|
|
12,424 |
|
|
16,378 |
|
Loans delinquent 30 to 89 days at period end |
16,826 |
|
|
6,278 |
|
|
139 |
|
|
16,826 |
|
|
139 |
|
Net (recoveries) charge-offs |
(69 |
) |
|
31 |
|
|
5,068 |
|
|
(48 |
) |
|
5,588 |
|
Non-performing assets/ Total assets |
0.19 |
% |
|
0.24 |
% |
|
0.25 |
% |
|
0.19 |
% |
|
0.25 |
% |
Non-performing loans/ Total loans |
0.22 |
|
|
0.28 |
|
|
0.30 |
|
|
0.22 |
|
|
0.30 |
|
Allowance for loan loss/ Total loans |
0.87 |
|
|
0.78 |
|
|
0.50 |
|
|
0.87 |
|
|
0.50 |
|
Allowance for loan loss/ Non-performing loans |
390.31 |
|
|
276.23 |
|
|
166.65 |
|
|
390.31 |
|
|
166.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios - Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets (1) |
7.95 |
% |
|
7.94 |
% |
|
8.69 |
% |
|
7.95 |
% |
|
8.69 |
% |
Tangible equity to tangible assets (1) |
9.73 |
|
|
9.76 |
|
|
8.69 |
|
|
9.73 |
|
|
8.69 |
|
Tier 1 common equity ratio |
10.69 |
|
|
10.69 |
|
|
10.62 |
|
|
10.69 |
|
|
10.62 |
|
Tier 1 risk-based capital ratio |
13.02 |
|
|
13.07 |
|
|
10.62 |
|
|
13.02 |
|
|
10.62 |
|
Total risk-based capital ratio |
16.30 |
|
|
16.29 |
|
|
13.33 |
|
|
16.30 |
|
|
13.33 |
|
Tier 1 leverage ratio |
10.10 |
|
|
10.11 |
|
|
8.76 |
|
|
10.10 |
|
|
8.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios - Bank Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common equity ratio |
12.88 |
% |
|
12.97 |
% |
|
11.86 |
% |
|
12.88 |
% |
|
11.86 |
% |
Tier 1 risk-based capital ratio |
12.88 |
|
|
12.97 |
|
|
11.86 |
|
|
12.88 |
|
|
11.86 |
|
Total risk-based capital ratio |
13.87 |
|
|
13.85 |
|
|
12.38 |
|
|
13.87 |
|
|
12.38 |
|
Tier 1 leverage ratio |
9.97 |
|
|
9.98 |
|
|
9.81 |
|
|
9.97 |
|
|
9.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See "Non-GAAP Reconciliation" table for reconciliation of
tangible equity, tangible common equity, and tangible assets.
Average balances are calculated using the ending balance for months
during the period indicated. |
(2) The CRE concentration ratio is calculated using the sum of
commercial real estate, excluding owner occupied commercial real
estate, multifamily, and ADC, divided by consolidated capital. |
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED AVERAGE BALANCES AND NET INTEREST
INCOME |
(Dollars in thousands) |
|
|
For the Three Months Ended |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
|
|
|
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 |
$ |
4,874,780 |
$ |
47,482 |
|
3.90 |
% |
|
$ |
4,867,970 |
$ |
49,058 |
|
4.03 |
% |
|
$ |
5,188,967 |
$ |
50,732 |
|
3.91 |
% |
Commercial and industrial loans |
643,383 |
5,752 |
|
3.58 |
|
|
518,999 |
5,071 |
|
3.91 |
|
|
312,472 |
4,442 |
|
5.69 |
|
Other loans |
1,444 |
11 |
|
3.16 |
|
|
870 |
13 |
|
5.98 |
|
|
1,794 |
18 |
|
4.01 |
|
Mortgage-backed securities |
435,920 |
2,707 |
|
2.48 |
|
|
468,705 |
3,064 |
|
2.61 |
|
|
432,071 |
2,973 |
|
2.75 |
|
Investment securities |
78,405 |
715 |
|
3.65 |
|
|
65,155 |
582 |
|
3.57 |
|
|
74,349 |
626 |
|
3.37 |
|
Other short-term investments |
130,520 |
729 |
|
2.23 |
|
|
169,846 |
846 |
|
1.99 |
|
|
181,646 |
1,488 |
|
3.28 |
|
Total interest-earning assets |
6,164,452 |
57,396 |
|
3.72 |
% |
|
6,091,545 |
58,634 |
|
3.85 |
% |
|
6,191,299 |
60,279 |
|
3.89 |
% |
Non-interest-earning assets |
327,721 |
|
|
|
|
|
298,223 |
|
|
|
|
|
255,083 |
|
|
|
|
Total assets |
$ |
6,492,173 |
|
|
|
|
|
$ |
6,389,768 |
|
|
|
|
|
$ |
6,446,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking accounts |
$ |
241,248 |
$ |
186 |
|
0.31 |
% |
|
$ |
222,694 |
$ |
212 |
|
0.38 |
% |
|
$ |
125,310 |
$ |
56 |
|
0.18 |
% |
Money market accounts |
1,696,297 |
1,858 |
|
0.44 |
|
|
1,656,394 |
2,495 |
|
0.61 |
|
|
1,845,594 |
6,883 |
|
1.48 |
|
Savings accounts |
405,582 |
170 |
|
0.17 |
|
|
404,389 |
305 |
|
0.30 |
|
|
341,170 |
158 |
|
0.18 |
|
Certificates of deposit |
1,425,083 |
4,458 |
|
1.24 |
|
|
1,511,598 |
6,688 |
|
1.78 |
|
|
1,674,478 |
9,485 |
|
2.25 |
|
Total interest-bearing deposits |
3,768,210 |
6,672 |
|
0.70 |
|
|
3,795,075 |
9,700 |
|
1.03 |
|
|
3,986,552 |
16,582 |
|
1.65 |
|
FHLBNY advances |
1,040,127 |
4,448 |
|
1.70 |
|
|
962,657 |
4,047 |
|
1.69 |
|
|
1,127,379 |
6,159 |
|
2.17 |
|
Subordinated notes payable, net |
113,992 |
1,330 |
|
4.64 |
|
|
113,955 |
1,330 |
|
4.69 |
|
|
113,845 |
1,330 |
|
4.64 |
|
Other borrowings |
5,283 |
2 |
|
0.12 |
|
|
2,747 |
1 |
|
0.15 |
|
|
2,337 |
12 |
|
1.99 |
|
Borrowed Funds |
1,159,402 |
5,780 |
|
1.98 |
|
|
1,079,359 |
5,378 |
|
2.00 |
|
|
1,243,561 |
7,501 |
|
2.39 |
|
Total interest-bearing liabilities |
4,927,612 |
12,452 |
|
1.01 |
% |
|
4,874,434 |
15,078 |
|
1.24 |
% |
|
5,230,113 |
24,083 |
|
1.83 |
% |
Non-interest-bearing checking accounts |
652,880 |
|
|
|
|
|
618,107 |
|
|
|
|
|
429,591 |
|
|
|
|
Other non-interest-bearing liabilities |
223,285 |
|
|
|
|
|
245,908 |
|
|
|
|
|
176,191 |
|
|
|
|
Total liabilities |
5,803,777 |
|
|
|
|
|
5,738,449 |
|
|
|
|
|
5,835,895 |
|
|
|
|
Stockholders' equity |
688,396 |
|
|
|
|
|
651,319 |
|
|
|
|
|
610,487 |
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
6,492,173 |
|
|
|
|
|
$ |
6,389,768 |
|
|
|
|
|
$ |
6,446,382 |
|
|
|
|
Net interest income |
|
$ |
44,944 |
|
|
|
|
|
$ |
43,556 |
|
|
|
|
|
$ |
36,196 |
|
|
|
Net interest spread |
|
|
|
2.72 |
% |
|
|
|
|
2.61 |
% |
|
|
|
|
2.07 |
% |
Net interest-earning assets |
$ |
1,236,839 |
|
|
|
|
|
$ |
1,217,111 |
|
|
|
|
|
$ |
961,186 |
|
|
|
|
Net interest margin |
|
|
|
2.92 |
% |
|
|
|
|
2.86 |
% |
|
|
|
|
2.34 |
% |
Ratio of interest-earning assets
to interest-bearing liabilities |
|
125.10 |
% |
|
|
|
|
124.97 |
% |
|
|
|
|
118.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits (including
non-interest-bearing checking accounts) |
$ |
4,421,090 |
$ |
6,672 |
|
0.60 |
% |
|
$ |
4,413,182 |
$ |
9,700 |
|
0.88 |
% |
|
$ |
4,416,143 |
$ |
16,582 |
|
1.49 |
% |
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED SCHEDULE OF LOAN COMPOSITION AND WEIGHTED AVERAGE
RATES ("WAR") (1) |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2020 |
|
At June 30, 2020 |
|
At September 30, 2019 |
|
Balance |
WAR |
|
|
Balance |
WAR |
|
|
Balance |
WAR |
|
Loan balances at period end: |
|
|
|
|
|
|
|
|
|
|
|
One-to-four family residential, including condominium and
cooperative apartment |
$ |
186,975 |
3.97 |
% |
|
$ |
182,264 |
3.98 |
% |
|
$ |
134,361 |
4.38 |
% |
Multifamily residential and residential mixed-use (2)(3) |
2,919,186 |
3.77 |
|
|
2,988,511 |
3.77 |
|
|
3,608,156 |
3.72 |
|
Commercial real estate and commercial mixed-use |
1,675,488 |
4.00 |
|
|
1,504,020 |
4.06 |
|
|
1,333,763 |
4.31 |
|
Acquisition, development, and construction ("ADC") |
151,866 |
5.04 |
|
|
136,606 |
5.08 |
|
|
95,767 |
6.00 |
|
Total real estate loans |
4,933,515 |
3.90 |
|
|
4,811,401 |
3.91 |
|
|
5,172,047 |
3.93 |
|
Commercial and industrial ("C&I") |
323,972 |
4.49 |
|
|
321,009 |
4.39 |
|
|
309,593 |
5.46 |
|
Small Business Administration ("SBA") Paycheck Protection Program
("PPP") loans |
318,568 |
1.00 |
|
|
310,509 |
1.00 |
|
|
- |
- |
|
Total |
$ |
5,576,055 |
3.76 |
% |
|
$ |
5,442,919 |
3.77 |
% |
|
$ |
5,481,640 |
4.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Weighted
average rate is calculated by aggregating interest based on the
current loan rate from each loan in the category, divided by the
total amount of loans in the category. |
(2) Includes
loans underlying 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. |
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED
DEBT RESTRUCTURINGS ("TDRs") |
(Dollars in thousands) |
|
|
|
|
|
At September 30, |
|
At June 30, |
|
At September 30, |
|
2020 |
|
2020 |
|
2019 |
Non-Performing Loans |
|
|
|
|
|
One-to-four family residential, including condominium and
cooperative apartment |
$ |
867 |
|
$ |
819 |
|
$ |
1,161 |
Multifamily residential and residential mixed-use (1)(2) |
1,213 |
|
1,377 |
|
153 |
Commercial real estate and commercial mixed-use real estate
(2) |
47 |
|
3,003 |
|
63 |
C&I |
10,287 |
|
10,176 |
|
15,000 |
Other |
10 |
|
8 |
|
1 |
Total Non-Performing Loans
(3) |
$ |
12,424 |
|
$ |
15,383 |
|
$ |
16,378 |
Total Non-Performing
Assets |
$ |
12,424 |
|
$ |
15,383 |
|
$ |
16,378 |
|
|
|
|
|
|
Performing TDR Loans |
|
|
|
|
|
One-to-four family and cooperative/condominium apartment |
$ |
- |
|
$ |
- |
|
$ |
9 |
Total Performing
TDRs |
$ |
- |
|
$ |
- |
|
$ |
9 |
|
|
|
|
|
|
(1) Includes loans underlying 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. |
(3) There were no non-accruing TDRs for the periods
indicated. |
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE EQUITY AND
RESERVES |
(Dollars in thousands) |
|
|
At September 30, |
|
|
At June 30, |
|
|
At September 30, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
Total Non-Performing Assets |
$ |
12,424 |
|
|
$ |
15,383 |
|
|
$ |
16,378 |
|
Loans 90 days or more past due
on accrual status (4) |
1,939 |
|
|
3,691 |
|
|
380 |
|
TOTAL PROBLEM ASSETS |
$ |
14,363 |
|
|
$ |
19,074 |
|
|
$ |
16,758 |
|
|
|
|
|
|
|
|
|
|
Tangible equity (5) |
$ |
638,520 |
|
|
$ |
625,905 |
|
|
$ |
553,266 |
|
Allowance for loan losses and
reserves for contingent liabilities |
48,517 |
|
|
42,517 |
|
|
27,319 |
|
TANGIBLE EQUITY PLUS RESERVES |
$ |
687,037 |
|
|
$ |
668,422 |
|
|
$ |
580,585 |
|
|
|
|
|
|
|
|
|
|
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE EQUITY AND RESERVES |
2.1 |
% |
|
2.9 |
% |
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
(4) These loans
were, as of the respective dates indicated, expected to be either
satisfied, made current or re-financed in the near future, and were
not expected |
to result in any loss of contractual principal or interest. These
loans are not included in non-performing loans. |
(5) See "Non-GAAP
Reconciliation" table for reconciliation of tangible common equity
and tangible assets. |
DIME COMMUNITY BANCSHARES, INC. AND
SUBSIDIARIES |
NON-GAAP RECONCILIATION |
(Dollars in thousands except per share
amounts) |
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Reconciliation of Reported and Adjusted ("non-GAAP") Net
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income |
$ |
15,868 |
|
|
$ |
12,966 |
|
|
$ |
4,705 |
|
|
$ |
37,226 |
|
|
$ |
29,241 |
|
Adjustments to net income, net of tax (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Merger expenses (2) |
617 |
|
|
879 |
|
|
- |
|
|
1,994 |
|
|
- |
|
Add: Severance |
- |
|
|
2,686 |
|
|
- |
|
|
2,734 |
|
|
- |
|
Less: Loss (Gain) on sale of
securities |
(147 |
) |
|
(2,142 |
) |
|
(45 |
) |
|
(2,294 |
) |
|
46 |
|
Adjusted ("non-GAAP") net income |
$ |
16,338 |
|
|
$ |
14,389 |
|
|
$ |
4,660 |
|
|
$ |
39,660 |
|
|
$ |
29,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Ratios (Based upon "non-GAAP Net Income" as
calculated above): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS (Diluted) |
$ |
0.44 |
|
|
$ |
0.40 |
|
|
$ |
0.13 |
|
|
$ |
1.09 |
|
|
$ |
0.82 |
|
Adjusted return on average assets |
1.01 |
% |
|
0.90 |
% |
|
0.29 |
% |
|
0.83 |
% |
|
0.61 |
% |
Adjusted return on average equity |
9.49 |
|
|
8.84 |
|
|
3.05 |
|
|
8.08 |
|
|
6.43 |
|
Adjusted return on average tangible equity |
10.33 |
|
|
9.66 |
|
|
3.36 |
|
|
8.81 |
|
|
7.08 |
|
Adjusted return on average tangible common equity |
11.25 |
|
|
10.34 |
|
|
3.36 |
|
|
9.38 |
|
|
7.08 |
|
Adjusted non-interest expense to average assets |
1.48 |
|
|
1.52 |
|
|
1.41 |
|
|
1.55 |
|
|
1.40 |
|
Adjusted efficiency ratio |
47.50 |
|
|
50.33 |
|
|
57.69 |
|
|
51.15 |
|
|
57.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
|
|
|
|
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
Reconciliation of Tangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
6,619,391 |
|
|
$ |
6,467,521 |
|
|
$ |
6,425,335 |
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
55,638 |
|
|
55,638 |
|
|
55,638 |
|
|
|
|
|
|
|
Tangible assets |
$ |
6,563,753 |
|
|
$ |
6,411,883 |
|
|
$ |
6,369,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Tangible Common Equity -
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
$ |
694,158 |
|
|
$ |
681,543 |
|
|
$ |
608,904 |
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
55,638 |
|
|
55,638 |
|
|
55,638 |
|
|
|
|
|
|
|
Tangible equity |
638,520 |
|
|
625,905 |
|
|
553,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock, net |
116,569 |
|
|
116,569 |
|
|
- |
|
|
|
|
|
|
|
Tangible common equity |
$ |
521,951 |
|
|
$ |
509,336 |
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$ |
553,266 |
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(1)
Adjustments to net income are taxed at the Company's
statutory tax rate of approximately 32% unless otherwise
noted. |
(2) Certain
merger expenses are non-taxable expense. |
Dime Community Bancshares (NASDAQ:DCOM)
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From Apr 2024 to May 2024
Dime Community Bancshares (NASDAQ:DCOM)
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From May 2023 to May 2024