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 $11.5 million for the quarter ended September 30, 2024, or $0.29 per diluted common share, compared to $16.7 million, or $0.43 per diluted common share, for the quarter ended June 30, 2024, and $13.2 million, or $0.34 per diluted common share for the quarter ended September 30, 2023.

Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Strong growth in low-cost core deposits drove a significant linked quarter expansion in the Net Interest Margin. Importantly, following the recent 50 basis point reduction in the Federal Funds rate, we lowered deposit costs and expect to benefit from these actions in the fourth quarter and beyond. Since the Federal Reserve rate cut in mid-September, the spread between the weighted average rate on loans and core deposits has improved by approximately 15 basis points. We anticipate the full quarter impact of this spread improvement to drive continued Net Interest Margin expansion in the fourth quarter.”

Mr. Lubow commented, “During the third quarter, our Business loan portfolio increased by over $120 million and we continue to have strong pipelines in our Middle Market and Healthcare verticals. Compared to the prior quarter, the level of net charge-offs and criticized and classified loans remained stable and we continued to prudently build our allowance for credit losses to total loans and risk-based capital levels. In conclusion, I am extremely proud of our employees for their unwavering focus on our customers and enabling us to be the premier business bank on Greater Long Island.”

Highlights for the Third Quarter of 2024 Included:

  • Total deposits increased $389 million compared to the second quarter of 2024;
  • Core deposits (excluding brokered and time deposits) increased $505 million compared to the second quarter of 2024;
  • The ratio of average non-interest-bearing deposits to average total deposits for the third quarter was 29% compared to 28% for the second quarter of 2024;
  • The cost of total deposits declined by 4 basis point versus the prior quarter;
  • The net interest margin increased to 2.50% for the third quarter of 2024 compared to 2.41% for the prior quarter;
  • The loan to deposit ratio declined to 95.4% at the end of the third quarter compared to 98.2% for the prior quarter;
  • Net charge-offs to average loans was 0.15% for the third quarter of 2024 compared to 0.14% for prior quarter;
  • The allowance for credit losses to total loans increased to 0.78% at the end of the third quarter compared to 0.72% for the prior quarter; and
  • The Company’s total risk based capital ratio increased to 14.76% at the end of the third quarter compared to 14.46% for the prior quarter.

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the third quarter of 2024 was $79.9 million compared to $75.5 million for the second quarter of 2024 and $76.5 million for the third quarter of 2023.

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 2024   Q2 2024   Q3 2023  
Net interest income   $ 79,924     $ 75,502     $ 76,479  
Purchase accounting amortization (accretion) on loans ("PAA")     (266 )     (101 )     186  
Adjusted net interest income excluding PAA on loans (non-GAAP)   $ 79,658     $ 75,401     $ 76,665  
                     
Average interest-earning assets   $ 12,734,246     $ 12,624,556     $ 12,984,061  
                     
NIM (1)     2.50   %   2.41   %   2.34 %
Adjusted NIM excluding PAA on loans (non-GAAP) (2)     2.49   %   2.40   %   2.34 %

(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 PAA amortization on acquired loans divided by average interest-earning assets.

During the quarter ended June 30, 2024, there was a recovery of interest income from a loan that was previously on non-accrual status in the amount of $1.3 million. Excluding the impact of this item, the second quarter NIM was 2.37%.

Loan Portfolio

The ending WAR on the total loan portfolio was 5.40% at September 30, 2024, a 1 basis point increase compared to the ending WAR of 5.39% on the total loan portfolio at June 30, 2024.

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

                                 
    September 30, 2024   June 30, 2024   September 30, 2023  
(Dollars in thousands)      Balance      WAR (1)      Balance      WAR (1)      Balance      WAR (1)  
Loans held for investment balances at period end:                                
Business loans (2)   $ 2,653,624   6.82 % $ 2,530,896   6.92 % $ 2,271,768   6.72 %
One-to-four family residential, including condominium and cooperative apartment     934,209   4.65     906,949   4.55     892,869   4.39  
Multifamily residential and residential mixed-use (3)(4)     3,866,931   4.60     3,920,354   4.59     4,102,024   4.45  
Non-owner-occupied commercial real estate     3,281,923   5.25     3,315,100   5.25     3,374,281   5.09  
Acquisition, development, and construction     149,299   8.46     144,860   8.96     203,402   8.92  
Other loans     6,058   10.71     6,699   3.39     6,267   6.28  
Loans held for investment   $ 10,892,044   5.40 % $ 10,824,858   5.39 % $ 10,850,611   5.20 %

(1) WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.(2) Business loans include commercial and industrial loans and owner-occupied commercial real estate loans. (3) Includes loans underlying multifamily cooperatives. (4) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

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

                   
(Dollars in millions)   Q3 2024   Q2 2024   Q3 2023
Loan originations   $ 122.7   $ 162.4   $ 153.4

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at September 30, 2024 were $11.42 billion, compared to $11.03 billion at June 30, 2024 and $10.53 billion at December 31, 2023.

Total Federal Home Loan Bank advances were $508.0 million at September 30, 2024 compared to $633.0 million at June 30, 2024 and $1.31 billion at December 31, 2023.

Mr. Lubow commented, “During the third quarter of 2024, we continued our strategy of utilizing core deposit growth to reduce our wholesale funding position.”

Non-Interest Income

Non-interest income was $7.6 million during the third quarter of 2024, $11.8 million during the second quarter of 2024, and $7.9 million during the third quarter of 2023. Included in non-interest income for the second quarter of 2024, was income related to the sale of premises of approximately $3.7 million.

Non-Interest Expense

Total non-interest expense was $57.7 million during the third quarter of 2024, $55.7 million during the second quarter of 2024, and $59.5 million during the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $57.4 million during the third quarter of 2024, $55.4 million during the second quarter of 2024, and $50.6 million during the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Mr. Lubow commented, “As we have communicated previously, the increase in non-interest expense has been due to the significant investments and hires in the Private and Commercial Bank and the Middle Market C&I Lending operations. Third quarter results reflected a fully-loaded run-rate for these initiatives and we expect to keep our expense base relatively flat in the fourth quarter of 2024.”

The ratio of non-interest expense to average assets was 1.71% during the third quarter of 2024, compared to 1.66% during the linked quarter and 1.73% for the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.70% during the third quarter of 2024, compared to 1.65% during the linked quarter and 1.48% for the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 65.9% during the third quarter of 2024, compared to 63.8% during the linked quarter and 70.5% during the third quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 65.6% during the third quarter of 2024, compared to 65.9% during the linked quarter and 59.7% during the third quarter of 2023 (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 2024 was 26.9% compared to 29.0% for the second quarter of 2024, and 35.1% for the third quarter of 2023.

Credit Quality

Non-performing loans were $49.5 million at September 30, 2024, compared to $24.8 million for the prior quarter.

A credit loss provision of $11.6 million was recorded during the third quarter of 2024, compared to a credit loss provision of $5.6 million during the second quarter of 2024, and a credit loss provision of $1.8 million during the third quarter of 2023.

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, 2024. All risk-based regulatory capital ratios increased in the third quarter of 2024.

Dividends per common share were $0.25 during the third and second quarters of 2024, respectively.

Book value per common share was $29.31 at September 30, 2024 compared to $28.97 at June 30, 2024.

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.22 at September 30, 2024 compared to $24.87 at June 30, 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 9:00 a.m. (ET) on Tuesday, October 22, 2024, during which CEO Lubow will discuss the Company’s third quarter 2024 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/hfnjf6ym. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI017781a02def49c0ad228b72ba201600. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/hfnjf6ym.

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 $13.7 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 with 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, the cost of funds, 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, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

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

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(In thousands)
                   
    September 30,    June 30,    December 31, 
    2024   2024   2023
Assets:                    
Cash and due from banks   $ 626,056     $ 413,983     $ 457,547  
Securities available-for-sale, at fair value     774,608       819,222       886,240  
Securities held-to-maturity     592,414       588,000       594,639  
Loans held for sale     13,098       14,766       10,159  
Loans held for investment, net:                  
Business loans (1)     2,653,624       2,530,896       2,310,379  
One-to-four family and cooperative/condominium apartment     934,209       906,949       889,236  
Multifamily residential and residential mixed-use (2)(3)     3,866,931       3,920,354       4,017,703  
Non-owner-occupied commercial real estate     3,281,923       3,315,100       3,381,842  
Acquisition, development and construction     149,299       144,860       168,513  
Other loans     6,058       6,699       5,755  
Allowance for credit losses     (85,221 )     (77,812 )     (71,743 )
Total loans held for investment, net     10,806,823       10,747,046       10,701,685  
Premises and fixed assets, net     35,066       36,054       44,868  
Premises held for sale                 905  
Restricted stock     64,235       68,445       98,750  
Bank Owned Life Insurance ("BOLI")     372,367       354,761       349,816  
Goodwill     155,797       155,797       155,797  
Other intangible assets     4,181       4,467       5,059  
Operating lease assets     48,537       51,703       52,729  
Derivative assets     105,636       134,489       122,132  
Accrued interest receivable     54,578       55,588       55,666  
Other assets     93,133       104,442       100,013  
Total assets   $ 13,746,529     $ 13,548,763     $ 13,636,005  
Liabilities:                   
Non-interest-bearing checking (excluding mortgage escrow deposits)   $ 3,231,160     $ 3,012,481     $ 2,884,378  
Interest-bearing checking     938,070       633,721       515,987  
Savings (excluding mortgage escrow deposits)     1,845,266       2,340,222       2,335,354  
Money market     3,898,509       3,607,090       3,125,996  
Certificates of deposit     1,416,467       1,382,271       1,607,683  
Deposits (excluding mortgage escrow deposits)     11,329,472       10,975,785       10,469,398  
Non-interest-bearing mortgage escrow deposits     87,841       52,647       61,121  
Interest-bearing mortgage escrow deposits     5       2       136  
Total mortgage escrow deposits     87,846       52,649       61,257  
FHLBNY advances     508,000       633,000       1,313,000  
Subordinated debt, net     272,300       262,814       200,196  
Derivative cash collateral     68,960       130,090       108,100  
Operating lease liabilities     51,362       54,530       55,454  
Derivative liabilities     98,108       122,567       121,265  
Other liabilities     66,552       66,732       81,110  
Total liabilities     12,482,600       12,298,167       12,409,780  
Stockholders' equity:                   
Preferred stock, Series A     116,569       116,569       116,569  
Common stock     416       416       416  
Additional paid-in capital     488,607       488,760       494,454  
Retained earnings     827,690       826,080       813,007  
Accumulated other comprehensive loss ("AOCI"), net of deferred taxes     (72,970 )     (82,780 )     (91,579 )
Unearned equity awards     (10,111 )     (12,023 )     (8,622 )
Treasury stock, at cost     (86,272 )     (86,426 )     (98,020 )
Total stockholders' equity     1,263,929       1,250,596       1,226,225  
Total liabilities and stockholders' equity   $ 13,746,529     $ 13,548,763     $ 13,636,005  

(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program (“PPP”) loans.(2) Includes loans underlying multifamily cooperatives.

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

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED 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, 
    2024   2024   2023   2024   2023
Interest income:                               
Loans   $ 151,828   $ 147,099     $ 142,995     $ 442,492     $ 409,744  
Securities     7,766     7,907       7,916       23,553       24,261  
Other short-term investments     4,645     4,412       6,930       18,621       16,599  
Total interest income     164,239     159,418       157,841       484,666       450,604  
Interest expense:                                
Deposits and escrow     74,025     72,878       62,507       219,972       152,395  
Borrowed funds     8,764     9,033       16,925       32,494       50,855  
Derivative cash collateral     1,526     2,005       1,930       5,244       4,904  
Total interest expense     84,315     83,916       81,362       257,710       208,154  
Net interest income     79,924     75,502       76,479       226,956       242,450  
Provision (recovery) for credit losses     11,603     5,585       1,806       22,398       (950 )
Net interest income after provision (recovery)     68,321     69,917       74,673       204,558       243,400  
Non-interest income:                                
Service charges and other fees     4,267     3,972       3,963       12,783       12,633  
Title fees     190     294       291       617       829  
Loan level derivative income     132     1,085       783       1,623       6,353  
BOLI income     2,606     2,484       2,317       7,551       7,332  
Gain on sale of Small Business Administration ("SBA") loans     19     113       335       385       1,061  
Gain on sale of residential loans     38     27       21       142       103  
Fair value change in equity securities and loans held for sale     39     (416 )     (299 )     (1,219 )     (1,079 )
Net loss on sale of securities                           (1,447 )
Gain (loss) on sale of other assets     2     3,695       (22 )     6,665       (22 )
Other     338     554       539       1,359       1,571  
Total non-interest income     7,631     11,808       7,928       29,906       27,334  
Non-interest expense:                                
Salaries and employee benefits     36,132     32,184       30,520       100,353       87,054  
Severance               8,562       42       9,068  
Occupancy and equipment     7,448     7,409       7,277       22,225       21,794  
Data processing costs     4,544     4,405       4,309       13,262       12,744  
Marketing     1,629     1,637       2,079       4,763       5,016  
Professional services     2,036     2,766       1,277       6,269       4,876  
Federal deposit insurance premiums     2,105     2,250       1,866       6,594       5,613  
Loss on extinguishment of debt     1                 454        
Amortization of other intangible assets     286     285       349       878       1,075  
Other     3,548     4,758       3,284       11,094       11,944  
Total non-interest expense     57,729     55,694       59,523       165,934       159,184  
Income before taxes     18,223     26,031       23,078       68,530       111,550  
Income tax expense     4,896     7,552       8,093       19,033       31,764  
Net income     13,327     18,479       14,985       49,497       79,786  
Preferred stock dividends     1,822     1,822       1,822       5,465       5,465  
Net income available to common stockholders   $ 11,505   $ 16,657     $ 13,163     $ 44,032     $ 74,321  
Earnings per common share ("EPS"):                                
Basic   $ 0.29   $ 0.43     $ 0.34     $ 1.13     $ 1.92  
Diluted   $ 0.29   $ 0.43     $ 0.34     $ 1.13     $ 1.92  
                               
Average common shares outstanding for diluted EPS     38,366,619     38,329,485       38,203,961       38,317,223       38,177,704  

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED 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,   
    2024     2024     2023   2024     2023  
Per Share Data:                                        
Reported EPS (Diluted)   $ 0.29     $ 0.43     $ 0.34     $ 1.13     $ 1.92  
Cash dividends paid per common share     0.25       0.25       0.25       0.75       0.74  
Book value per common share     29.31       28.97       28.03       29.31       28.03  
Tangible common book value per share (1)     25.22       24.87       23.87       25.22       23.87  
Common shares outstanding     39,152       39,148       38,811       39,152       38,811  
Dividend payout ratio     86.21 %       58.14 %     73.53 %     66.37 %     38.54 %
                                         
Performance Ratios (Based upon Reported Net Income):                                         
Return on average assets     0.39 %       0.55 %     0.44 %     0.49 %     0.78 %
Return on average equity     4.19       5.88       4.91       5.24       8.78  
Return on average tangible common equity (1)     4.70       6.88       5.69       6.06       10.73  
Net interest margin     2.50       2.41       2.34       2.37       2.52  
Non-interest expense to average assets     1.71       1.66       1.73       1.63       1.56  
Efficiency ratio     65.9       63.8       70.5       64.6       59.0  
Effective tax rate     26.87       29.01       35.07       27.77       28.48  
                                         
Balance Sheet Data:                                         
Average assets   $ 13,502,753     $ 13,418,441     $ 13,759,493     $ 13,571,710     $ 13,623,570  
Average interest-earning assets     12,734,246       12,624,556       12,984,061       12,791,233       12,853,701  
Average tangible common equity (1)     996,578       979,611       943,805       981,614       933,072  
Loan-to-deposit ratio at end of period (2)     95.4       98.2       102.0       95.4       102.0  
                                         
Capital Ratios and Reserves - Consolidated: (3)                                         
Tangible common equity to tangible assets (1)     7.27 %       7.27 %     6.87 %                
Tangible equity to tangible assets (1)     8.13       8.14       7.73                  
Tier 1 common equity ratio     10.16       10.06       9.67                  
Tier 1 risk-based capital ratio     11.28       11.17       10.76                  
Total risk-based capital ratio     14.76       14.46       13.33                  
Tier 1 leverage ratio     8.76       8.78       8.38                  
Consolidated CRE concentration ratio (4)     487       499       547                  
Allowance for credit losses/ Total loans     0.78       0.72       0.67                  
Allowance for credit losses/ Non-performing loans     172.29       313.21       311.16                  

(1) See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets. (2) Total deposits include mortgage escrow deposits, which fluctuate seasonally.(3) September 30, 2024 ratios are preliminary pending completion and filing of the Company’s regulatory reports.

(4) The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The September 30, 2024 ratio is preliminary pending completion and filing of the Company’s regulatory reports.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME(Dollars in thousands)
                                                   
    Three Months Ended  
    September 30, 2024   June 30, 2024   September 30, 2023  
                Average               Average               Average  
    Average         Yield/   Average         Yield/   Average         Yield/  
    Balance   Interest   Cost   Balance   Interest   Cost   Balance   Interest   Cost  
Assets:                                                     
Interest-earning assets:                                                     
Business loans (1)   $ 2,609,934   $ 46,656   7.11 %   $ 2,400,219   $ 42,933   7.19 % $ 2,260,203   $ 38,384   6.74 %
One-to-four family residential, including condo and coop     924,150     11,024   4.75     886,037     9,968   4.52     879,688     9,165   4.13  
Multifamily residential and residential mixed-use     3,902,220     45,790   4.67     3,958,617     45,775   4.65     4,114,476     46,099   4.45  
Non-owner-occupied commercial real estate     3,297,760     44,804   5.40     3,359,004     44,728   5.36     3,382,927     44,184   5.18  
Acquisition, development, and construction     147,875     3,505   9.43     164,283     3,638   8.91     222,039     5,075   9.07  
Other loans     4,891     49   3.99     5,100     57   4.50     6,156     88   5.67  
Securities     1,493,492     7,766   2.07     1,537,487     7,907   2.07     1,619,960     7,916   1.94  
Other short-term investments     353,924     4,645   5.22     313,809     4,412   5.65     498,612     6,930   5.51  
Total interest-earning assets     12,734,246     164,239   5.13 %     12,624,556     159,418   5.08 %   12,984,061     157,841   4.82 %
Non-interest-earning assets     768,507                 793,885               775,432            
Total assets   $ 13,502,753               $ 13,418,441             $ 13,759,493            
                                                   
Liabilities and Stockholders' Equity:                                                  
Interest-bearing liabilities:                                                  
Interest-bearing checking (2)   $ 798,024   $ 4,635   2.31 %   $ 631,403   $ 1,499   0.95 % $ 786,892   $ 2,896   1.46 %
Money market     3,771,562     36,841   3.89     3,495,989     33,193   3.82     2,975,267     24,275   3.24  
Savings (2)     2,102,282     19,492   3.69     2,336,202     23,109   3.98     2,342,424     20,316   3.44  
Certificates of deposit     1,232,984     13,057   4.21     1,393,678     15,077   4.35     1,494,491     15,020   3.99  
Total interest-bearing deposits     7,904,852     74,025   3.73     7,857,272     72,878   3.73     7,599,074     62,507   3.26  
FHLBNY advances     528,652     4,455   3.35     671,242     6,429   3.85     1,250,717     14,370   4.56  
Subordinated debt, net     271,450     4,307   6.31     202,232     2,604   5.18     200,232     2,553   5.06  
Other short-term borrowings     131     2   6.07               120     2   6.61  
Total borrowings     800,233     8,764   4.36     873,474     9,033   4.16     1,451,069     16,925   4.63  
Derivative cash collateral     91,305     1,526   6.65     145,702     2,005   5.53     156,795     1,930   4.88  
Total interest-bearing liabilities     8,796,390     84,315   3.81 %     8,876,448     83,916   3.80 %   9,206,938     81,362   3.51 %
Non-interest-bearing checking (2)     3,209,502                 3,042,382               3,065,186            
Other non-interest-bearing liabilities     223,546                 242,980               265,559            
Total liabilities     12,229,438                 12,161,810               12,537,683            
Stockholders' equity     1,273,315                 1,256,631               1,221,810            
Total liabilities and stockholders' equity   $ 13,502,753               $ 13,418,441             $ 13,759,493            
Net interest income          $ 79,924              $ 75,502             $ 76,479      
Net interest rate spread                 1.32 %               1.28 %             1.31 %
Net interest margin                 2.50 %               2.41 %               2.34 %
Deposits (including non-interest-bearing checking accounts) (2)   $ 11,114,354   $ 74,025   2.65 %   $ 10,899,654   $ 72,878   2.69 % $ 10,664,260   $ 62,507   2.33 %

(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.(2) Includes mortgage escrow deposits.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED SCHEDULE OF NON-PERFORMING ASSETS(Dollars in thousands)
                   
    At or For the Three Months Ended
    September 30,    June 30,    September 30, 
Asset Quality Detail   2024   2024   2023
Non-performing loans ("NPLs")                   
Business loans (1)   $ 25,411     $ 20,287     $ 19,555  
One-to-four family residential, including condominium and cooperative apartment     3,880       3,884       2,874  
Multifamily residential and residential mixed-use                  
Non-owner-occupied commercial real estate     19,509       15       15  
Acquisition, development, and construction     657       657       657  
Other loans     6             219  
Total Non-accrual loans   $ 49,463     $ 24,843     $ 23,320  
Total Non-performing assets ("NPAs")   $ 49,463     $ 24,843     $ 23,320  
                   
Total loans 90 days delinquent and accruing ("90+ Delinquent")   $     $     $  
                   
NPAs and 90+ Delinquent   $ 49,463     $ 24,843     $ 23,320  
                   
NPAs and 90+ Delinquent / Total assets     0.36 %     0.18 %     0.17 %
Net charge-offs ("NCOs")   $ 4,199     $ 3,640     $ 4,864  
NCOs / Average loans (2)     0.15 %     0.14 %     0.18 %

(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.(2) Calculated based on annualized NCOs to average loans, excluding loans held for sale.

                     

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESNON-GAAP RECONCILIATION(Dollars in thousands except per share amounts)

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

The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net (gain) loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:  

                                 
    Three Months Ended   Nine Months Ended  
    September 30,    June 30,       September 30,    September 30,    September 30,   
    2024   2024   2023   2024   2023  
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders                                
Reported net income available to common stockholders   $ 11,505     $ 16,657     $ 13,163     $ 44,032     $ 74,321    
Adjustments to net income (1):                                 
Fair value change in equity securities and loans held for sale     (39 )     416       299       1,219       1,079    
Net (gain) loss on sale of securities and other assets     (2 )     (3,695 )     22       (6,665 )     1,469    
Severance                 8,562       42       9,068    
Loss on extinguishment of debt     1                   454          
Income tax effect of adjustments     13       1,043       (176 )     1,574       (985 )  
Adjusted net income available to common stockholders (non-GAAP)   $ 11,478     $ 14,421     $ 21,870     $ 40,656     $ 84,952    
                                 
Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)                                
Adjusted EPS (Diluted)   $ 0.29     $ 0.37     $ 0.56     $ 1.04     $ 2.19    
Adjusted return on average assets     0.39   %     0.48   %   0.69   %   0.45   %   0.88   %
Adjusted return on average equity     4.18       5.17       7.76       4.89       9.95    
Adjusted return on average tangible common equity     4.69       5.97       9.38       5.60       12.25    
Adjusted non-interest expense to average assets     1.70       1.65       1.48       1.62       1.46    
Adjusted efficiency ratio     65.6       65.9       59.7       65.5       54.7    

(1) Adjustments to net income are taxed at the Company's approximate statutory tax rate.

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,   
    2024       2024       2023       2024       2023    
Operating expense as a % of average assets - as reported   1.71   %     1.66   %   1.73   %   1.63   %     1.56   %
Loss on extinguishment of debt                              
Severance               (0.25 )           (0.09 )  
Amortization of other intangible assets   (0.01 )     (0.01 )           (0.01 )     (0.01 )  
Adjusted operating expense as a % of average assets (non-GAAP)   1.70   %     1.65   %   1.48   %   1.62   %   1.46   %

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,   
    2024   2024   2023   2024   2023  
Efficiency ratio - as reported (non-GAAP) (1)        65.9   %     63.8   %   70.5   %   64.6   %     59.0   %
Non-interest expense - as reported   $ 57,729     $ 55,694     $ 59,523     $ 165,934     $ 159,184    
Severance                 (8,562 )     (42 )     (9,068 )  
Loss on extinguishment of debt     (1 )                 (454 )        
Amortization of other intangible assets     (286 )     (285 )     (349 )     (878 )     (1,075 )  
Adjusted non-interest expense (non-GAAP)   $ 57,442     $ 55,409     $ 50,612     $ 164,560     $ 149,041    
Net interest income - as reported   $ 79,924     $ 75,502     $ 76,479     $ 226,956     $ 242,450    
Non-interest income - as reported   $ 7,631     $ 11,808     $ 7,928     $ 29,906     $ 27,334    
Fair value change in equity securities and loans held for sale     (39 )     416       299       1,219       1,079    
Net (gain) loss on sale of securities and other assets     (2 )     (3,695 )     22       (6,665 )     1,469    
Adjusted non-interest income (non-GAAP)   $ 7,590     $ 8,529     $ 8,249     $ 24,460     $ 29,882    
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)   $ 87,514     $ 84,031     $ 84,728     $ 251,416     $ 272,332    
Adjusted efficiency ratio (non-GAAP) (2)     65.6   %     65.9   %   59.7   %   65.5   %     54.7   %

(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.

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,   
    2024   2024   2023  
Reconciliation of Tangible Assets:                    
Total assets   $ 13,746,529     $ 13,548,763     $ 13,651,405    
Goodwill     (155,797 )     (155,797 )     (155,797 )  
Other intangible assets     (4,181 )     (4,467 )     (5,409 )  
Tangible assets (non-GAAP)   $ 13,586,551     $ 13,388,499     $ 13,490,199    
                     
Reconciliation of Tangible Common Equity - Consolidated:                    
Total stockholders' equity   $ 1,263,929     $ 1,250,596     $ 1,204,344    
Goodwill     (155,797 )     (155,797 )     (155,797 )  
Other intangible assets     (4,181 )     (4,467 )     (5,409 )  
Tangible equity (non-GAAP)     1,103,951       1,090,332       1,043,138    
Preferred stock, net     (116,569 )     (116,569 )     (116,569 )  
Tangible common equity (non-GAAP)   $ 987,382     $ 973,763     $ 926,569    
                     
Common shares outstanding     39,152       39,148       38,811    
                     
Tangible common equity to tangible assets (non-GAAP)     7.27   %   7.27   %   6.87   %
Tangible equity to tangible assets (non-GAAP)     8.13       8.14       7.73    
                     
Book value per common share   $ 29.31     $ 28.97     $ 28.03    
Tangible common book value per share (non-GAAP)     25.22       24.87       23.87    
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