Dime Community Bancshares, Inc. Posts Strong Quarterly Earnings
Quarterly EPS of $0.33; $183 Million of Deposit Growth
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BROOKLYN, NY -- (Marketwired) -- 04/23/15 -- Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company" or "Dime"), the parent company of The Dime Savings Bank of Williamsburgh (the "Bank"), today reported financial results for the quarter ended March 31, 2015. Consolidated net income for the quarter ended March 31, 2015 was $11.8 million, or $0.33 per diluted share, compared to $12.0 million, or $0.33 per diluted share, for the quarter ended December 31, 2014, and $10.0 million, or $0.28 per diluted share, for the quarter ended March 31, 2014.
The quarter ended March 31, 2015 featured several significant income and expense items that were non-recurring in nature. A curtailment of certain postretirement defined benefits generated a $3.4 million pre-tax reduction to the salaries and benefits component of non-interest expense. A pre-tax gain of $1.4 million was recognized in non-interest income on the sale of approximately $25 million of mortgage-backed securities, and offsetting additional interest expense of $1.4 million was recognized on the prepayment of a single $25 million Federal Home Loan Bank of New York advance. These three items produced a net increase of $1.9 million, or $0.06 per diluted share, in after-tax earnings for the period.
Vincent F. Palagiano, Chairman and Chief Executive Officer of Dime, commented, "We began the 2015 fiscal year on a positive track by posting a second consecutive quarter of $0.33 (diluted) earnings per share, recognizing growth in our core net interest margin (adjusted for the impact of prepayment income and expense items), adding $182.6 million in deposits and originating $273.1 million in loans."
Mr. Palagiano continued, "The Company recently established an annual asset growth target of 12% for the year ending December 31, 2015. Should the reduced loan amortization and prepayment levels experienced in the most recent quarter persist, we can readily remain selective in our lending activities and successfully achieve our desired growth target."
Management's Discussion of Quarterly Operating Results
- Net Interest Margin
Net interest margin ("NIM") was 2.80% during the quarter ended March 31, 2015 compared to 3.02% during the December 2014 quarter, and 3.06% during the March 2014 quarter. Income recognized from loan prepayment activity, which varies from quarter to quarter, increased the Company's NIM during each of the reporting periods presented. Loan amortization and prepayments ran significantly lower during the March 2015 quarter than during the December 2014 quarter. For the first quarter 2015, income from prepayment activity was $2.3 million, or 22 basis points of impact upon NIM, compared to $3.7 million, or 35 basis points of impact upon NIM, during the quarter ended December 31, 2014. In addition during the March 2015 quarter, the NIM was adversely impacted by 12 basis points as a result of $1.4 million in additional interest expense recognized from the prepayment of a Federal Home Loan Bank of New York advance. The "core" NIM, which excludes the impact of these prepayment income and expense items, increased from 2.67% during the December 2014 quarter to 2.71% during the March 2015 quarter, caused primarily by a reduction of 10 basis points in the average cost of interest bearing liabilities. Core NIM for the March 2014 quarter was 2.79%.
As mentioned in the Company's previous earnings release, the core NIM is not expected to fluctuate significantly as long as the current interest rate environment remains in effect.
The average cost of funds declined by 10 basis points from the December 2014 to the March 2015 quarter, reflecting a 32 basis point reduction in the average cost of borrowings, as funding costs continued to remain at historically low levels.
- Net Interest Income
Net interest income was $30.1 million in the quarter ended March 31, 2015, down $1.6 million from $31.7 million reported in the December 2014 quarter, and $161,000 from the $30.3 million reported in the March 2014 quarter. The reductions from both the December 2014 and March 2014 quarters resulted from the $1.4 million of additional interest expense from the borrowing prepayment, and a reduction in prepayment related income recognized as a component of real estate loan interest income during the March 2015 quarter, as loan prepayment activity moderated during the March 2015 quarter.
- (Credit) Provision/Allowance For Loan Losses
A recapture of a portion of the allowance for loan loss reserve resulted in a credit, rather than a charge, to earnings in the March 2015 quarter of $172,000, due primarily to a lower loss expectation applied to problematic loans.
- Non-Interest Income
Non-interest income was $3.3 million for the quarter ended March 31, 2015, an increase of $706,000 from the December 2014 quarter. The increase resulted primarily from the $1.4 million gain on the sale of mortgage-backed securities recognized in the March 2015 quarter, which exceeded a gain of $1.0 million recognized on the sale of investment securities in the December 2014 quarter. Excluding the impact of the non-recurring gains or losses on sales of securities, non-interest income was $1.8 million during the March 2015 quarter, up from $1.6 million in the December 2014 quarter due to higher loan-related fee income.
- Non-Interest Expense
Non-interest expense was $13.9 million in the quarter ended March 31, 2015, net of a $3.4 million benefit (reduction to expense) from the curtailment of post-retirement health benefits. Excluding the curtailment benefit, non-interest expense was $17.3 million in the March 2015 quarter. Salaries and benefits are commonly higher in the first quarter of each year due to both the full impact of FICA taxes, and adjustments related to the annual executive officer incentive compensation.
Excluding the curtailment benefit, non-interest expense was 1.53% of average assets during the most recent quarter, compared to 1.38% during the December 2014 quarter. The efficiency ratio approximated 52% during the March 2015 quarter excluding the curtailment benefit.
- Income Tax Expense
The effective tax rate approximated the 40% forecasted level during the most recent quarter. Excluding the unfavorable impact of the curtailment benefit, the effective tax rate would have approximated 39%, as a combination of additional tax strategies and recent tax law changes reduced the consolidated effective tax rate below the forecasted 40% level.
Management's Discussion of the March 31, 2015 Balance Sheet
Total assets were $4.58 billion at March 31, 2015, up $86.2 million, or 1.9%, from December 31, 2014.
- Real Estate Loans
Real estate loan net portfolio growth was $115.7 million for the quarter. Real estate loan originations were $273.1 million, at a weighted average interest rate of 3.19%. Of this amount, $102.1 million represented loan refinances from the existing portfolio. Approximately 74% of the loans originated during the quarter contained repricing terms of 5-years or less. Loan amortization and satisfactions totaled $155.5 million, or 14.9% (annualized) of the quarterly average portfolio balance, at an average rate of 4.27%. The average yield on the loan portfolio (excluding income recognized from prepayment activity) during the quarter ended March 31, 2015 was 3.79%, compared to 3.85% during the December 2014 quarter and 4.00% during the March 2014 quarter.
- Credit Summary
Non-performing loans were $6.4 million, or 0.15% of total loans, at March 31, 2015, relatively unchanged from December 31, 2014. Accruing loans delinquent between 30 and 89 days were $1.2 million, or 0.03% of total loans, at March 31, 2015, down slightly from the levels at December 31, 2014.
At March 31, 2015, the Bank also had $9.2 million of troubled debt restructured loans that remained on accrual status and were deemed performing loans.
The allowance for loan losses as a percentage of total loans declined from 0.45% at December 31, 2014 to 0.43% at March 31, 2015 due to a reduction in the estimated reserves on problematic loans.
At March 31, 2015, non-performing assets represented 2.1% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table on page 10). This number compares very favorably to both national and regional industry averages.
- Deposits and Borrowed Funds
Deposits increased by $182.6 million during the most recent quarter, reflecting net growth of $172.6 million in money markets and $9.5 million in non-interest bearing checking balances.
Total borrowings declined $125.0 million during the March 2015 quarter. Shorter-term Federal Home Loan Bank of New York advances were reduced $100.0 million, as the Company utilized deposits to fund asset growth during the period. During the March 2015 quarter, the Company also utilized the proceeds from the sale of mortgage-backed securities to prepay a $25.0 million, 4.27% fixed-rate advance that was due to mature in August 2016.
- Capital
During the March 2015 quarter, the Bank and Company commenced compliance with the Basel III capital rules. The consolidated leverage ratio (Tier 1 capital to average assets) was 10.81% at March 31, 2015, well in excess of all required levels (inclusive of conservation buffer amounts) stated in the Basel III capital rules.
The Bank's leverage ratio (Tier 1 capital to average assets) was 9.24% at March 31, 2015, down from 9.64% at December 31, 2014, due to the growth in assets during the most recent quarter. The Bank's "Tier 1" and "Total" capital ratios were 12.43% and 12.98%, respectively, at March 31, 2015, also well in excess of the most stringent requirements stated under Basel III.
Reported diluted earnings per share exceeded the quarterly cash dividend rate per share by 136% during the quarter ended March 31, 2015, equating to a 42% payout ratio. Additions to capital from earnings during the most recent quarterly period enabled tangible book value per share to increase $0.20 sequentially during the most recent quarter, to $11.40 at March 31, 2015.
Outlook for the Quarter Ending June 30, 2015
At March 31, 2015, Dime had outstanding loan commitments totaling $246.7 million, all of which are likely to close during the quarter ending June 30, 2015, at an average interest rate approximating 3.22%. Loan prepayments and amortization are currently projected to run in the 15% - 20% range during 2015.
The Company has a balance sheet growth objective approximating 12% for the year ending December 31, 2015. Management currently expects to utilize retail deposits to fund much of this growth.
Deposit funding costs are expected to remain near current historically low levels through the June 2015 quarter. The Bank has $136.8 million of CDs maturing at an average cost of 1.05% during the quarter ending June 30, 2015. The current offering rate on 12-month term CDs approximates 40 basis points. During the quarter ending June 30, 2015, the Bank has $205.0 million in borrowings due to mature at an average cost of 0.86%.
Loan loss reserve provisions or credits will likely depend upon annualized loan portfolio growth, incurred and anticipated losses, and the overall performance of the loan portfolio.
Non-interest expense is expected to approximate $16.5 million during the June 2015 quarter, as strategic technology and infrastructure initiatives planned for 2015 are expected to elevate operating costs from their 2014 level.
The Company projects that the consolidated effective tax rate will approximate 39.0% in the June 2015 quarter.
ABOUT DIME COMMUNITY BANCSHARES, INC.
The Company (NASDAQ: DCOM) had $4.58 billion in consolidated assets as of March 31, 2015, and is the parent company of the Bank. The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-five branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and Dime can be found on the Dime's Internet 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," "could," "estimate," "expect," "intend," "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. These factors 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 Dime; 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; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or 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.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
March 31, December 31,
2015 2014
------------- -------------
ASSETS:
Cash and due from banks $ 79,149 $ 78,187
Investment securities held to maturity 5,326 5,367
Investment securities available for sale 3,846 3,806
Trading securities 8,747 8,559
Mortgage-backed securities available for sale 485 26,409
Federal funds sold and other short-term
investments 250 250
Real Estate Loans:
One-to-four family and cooperative/condomnium
apartment 70,982 73,500
Multifamily and loans underlying cooperatives
(1) 3,392,472 3,292,753
Commercial real estate 763,591 745,463
Construction and land acquisition - -
Unearned discounts and net deferred loan fees 6,060 5,695
------------- -------------
Total real estate loans 4,233,105 4,117,411
------------- -------------
Other loans 1,612 1,829
Allowance for loan losses (18,237) (18,493)
------------- -------------
Total loans, net 4,216,480 4,100,747
------------- -------------
Premises and fixed assets, net 24,485 25,065
Federal Home Loan Bank of New York capital stock 52,782 58,407
Other Real Estate Owned 148 18
Goodwill 55,638 55,638
Other assets 136,013 134,654
------------- -------------
TOTAL ASSETS $ 4,583,349 $ 4,497,107
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking $ 197,102 $ 187,593
Interest Bearing Checking 76,449 78,430
Savings 373,730 372,753
Money Market 1,267,290 1,094,698
------------- -------------
Sub-total 1,914,571 1,733,474
------------- -------------
Certificates of deposit 927,863 926,318
------------- -------------
Total Due to Depositors 2,842,434 2,659,792
------------- -------------
Escrow and other deposits 114,476 91,921
Federal Home Loan Bank of New York advances 1,048,725 1,173,725
Trust Preferred Notes Payable 70,680 70,680
Other liabilities 40,978 41,264
------------- -------------
TOTAL LIABILITIES 4,117,293 4,037,382
------------- -------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 52,886,219 shares and 52,871,443
shares issued at March 31, 2015 and December
31, 2014, respectively, and 36,849,795 shares
and 36,855,019 shares outstanding at March 31,
2015 and December 31, 2014, respectively) 529 529
Additional paid-in capital 254,750 254,358
Retained earnings 433,863 427,126
Accumulated other comprehensive loss, net of
deferred taxes (9,597) (8,547)
Unallocated common stock of Employee Stock
Ownership Plan (2,487) (2,545)
Unearned Restricted Stock Award common stock (2,572) (3,066)
Common stock held by the Benefit Maintenance
Plan (9,164) (9,164)
Treasury stock (16,036,424 shares and 16,016,424
shares at March 31, 2015 and December 31, 2014,
respectively) (199,266) (198,966)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 466,056 459,725
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,583,349 $ 4,497,107
============= =============
(1) 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
----------------------------------------
March 31, December 31, March 31,
2015 2014 2014
------------- ------------- ------------
Interest income:
Loans secured by real estate $ 41,788 $ 42,897 $ 40,861
Other loans 24 25 25
Mortgage-backed securities 181 207 248
Investment securities 169 286 70
Federal funds sold and other
short-term investments 650 556 522
------------- ------------- ------------
Total interest income 42,812 43,971 41,726
------------- ------------- ------------
Interest expense:
Deposits and escrow 5,220 5,002 4,621
Borrowed funds 7,498 7,241 6,850
------------- ------------- ------------
Total interest expense 12,718 12,243 11,471
------------- ------------- ------------
Net interest income 30,094 31,728 30,255
(Credit) Provision for loan losses (172) (522) 281
------------- ------------- ------------
Net interest income after provision
for loan losses 30,266 32,250 29,974
------------- ------------- ------------
Non-interest income:
Service charges and other fees 750 684 655
Mortgage banking income, net 72 72 999
Gain on sale of securities and
other assets 1,388 997 649
Gain (loss) on trading
securities 62 (80) 14
Other 1,029 923 743
------------- ------------- ------------
Total non-interest income 3,301 2,596 3,060
------------- ------------- ------------
Non-interest expense:
Compensation and benefits 6,841 8,895 9,508
Occupancy and equipment 2,944 2,521 2,750
Federal deposit insurance
premiums 551 575 505
Other 3,528 3,240 3,060
------------- ------------- ------------
Total non-interest expense 13,864 15,231 15,823
------------- ------------- ------------
Income before taxes 19,703 19,615 17,211
Income tax expense 7,925 7,628 7,177
------------- ------------- ------------
Net Income $ 11,778 $ 11,987 $ 10,034
============= ============= ============
Earnings per Share ("EPS"):
Basic $ 0.33 $ 0.33 $ 0.28
------------- ------------- ------------
Diluted $ 0.33 $ 0.33 $ 0.28
------------- ------------- ------------
Average common shares outstanding
for Diluted EPS 36,053,459 35,971,661 35,889,584
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-----------------------------------------
March 31, December 31, March 31,
2015 2014 2014
------------- ------------- -------------
Reconciliation of Reported and
Adjusted Earnings (1):
Net Income $ 11,778 $ 11,987 $ 10,034
Less: After tax gain on sale of
securities (764) (547) -
Add: After-tax expense associated
with the prepayment of borrowings 750 - -
Less: After tax gain on the sale
of real estate - - (356)
Less: After tax credit on
curtailment of postretirement
health benefits (1,868) - -
------------- ------------- -------------
Adjusted net income $ 9,896 $ 11,440 $ 9,678
============= ============= =============
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $0.33 $0.33 $0.28
Return on Average Assets 1.04% 1.09% 0.97%
Return on Average Stockholders'
Equity 10.18% 10.45% 9.12%
Return on Average Tangible
Stockholders' Equity 11.33% 11.74% 10.36%
Net Interest Spread 2.59% 2.85% 2.87%
Net Interest Margin 2.80% 3.02% 3.06%
Non-interest Expense to Average
Assets 1.23% 1.38% 1.53%
Efficiency Ratio 43.32% 45.59% 48.46%
Effective Tax Rate 40.22% 38.89% 41.70%
Performance Ratios (Based upon
"Adjusted Net Income" as
calculated above):
EPS (Diluted) $0.27 $0.32 $0.27
Return on Average Assets 0.88% 1.04% 0.93%
Return on Average Stockholders'
Equity 8.56% 9.98% 8.79%
Return on Average Tangible
Stockholders' Equity 9.52% 11.21% 9.99%
Net Interest Spread 2.53% 2.46% 2.87%
Net Interest Margin 2.71% 2.64% 3.06%
Non-interest Expense to Average
Assets 1.53% 1.38% 1.53%
Efficiency Ratio 51.72% 45.59% 48.46%
Effective Tax Rate 39.23% 38.55% 41.57%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 12.65 $ 12.47 $ 12.03
Tangible Book Value Per Share 11.40 11.20 10.64
Average Balance Data:
Average Assets $ 4,520,316 $ 4,403,001 $ 4,142,607
Average Interest Earning Assets 4,301,804 4,200,047 3,949,297
Average Stockholders' Equity 462,670 458,679 440,287
Average Tangible Stockholders'
Equity 415,827 408,350 387,595
Average Loans 4,174,083 4,073,732 3,821,190
Average Deposits 2,750,791 2,634,222 2,530,509
Asset Quality Summary:
Net charge-offs $ 84 $ 83 $ 6
Non-performing Loans (excluding
loans held for sale) 6,399 6,198 12,776
Non-performing Loans/ Total Loans 0.15% 0.15% 0.32%
Nonperforming Assets (2) $ 7,453 $ 7,120 $ 13,694
Nonperforming Assets/Total Assets 0.16% 0.16% 0.32%
Allowance for Loan Loss/Total
Loans 0.43% 0.45% 0.52%
Allowance for Loan Loss/Non-
performing Loans 285.00% 298.37% 159.90%
Loans Delinquent 30 to 89 Days at
period end $ 1,239 $ 1,429 $ 470
Consolidated Tangible (Tier 1)
Capital toAverage Assets at
period end (3) 10.81% 11.20% N/A
Regulatory Capital Ratios (Bank
Only):
Common Equity Tier 1 Capital to
Risk-Weighted Assets (3) 12.43% 12.33% N/A
Tier 1 Capital to Risk-Weighted
Assets ("Tier 1 Capital Ratio")
(3) 12.43% 12.33% N/A
Total Capital to Risk-Weighted
Assets ("Total Capital Ratio")
(3) 12.98% 12.89% N/A
Tier 1 Capital to Average Assets
(3) 9.24% 9.64% N/A
(1) Adjusted earnings is a "non-GAAP" measure. A reconciliation from the
comparable GAAP measure is provided herein.
(2) Amount comprised of total non-accrual loans and the recorded balance
of pooled bank trust preferred security investments
for which the Bank had not received any contractual payments of
interest or principal in over 90 days.
(3) The ratio presented as of March 31, 2015 is based upon new regulatory
capital measures that became effective on
January 1, 2015. Amount shown as of December 31, 2014 is presented for
comparative purposes. Since these ratios were
not effective as of March 31, 2014, comparable measures are not
available as of that date, and are thus not presented.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
----------------------------------------
March 31, 2015
----------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------- -------------
Assets:
Interest-earning assets:
Real estate loans $4,172,422 $41,788 4.01%
Other loans 1,661 24 5.78
Mortgage-backed securities 23,119 181 3.13
Investment securities 18,414 169 3.67
Federal funds sold and other
short-term investments 86,188 650 3.02
------------ ------------- -------------
Total interest earning assets 4,301,804 $42,812 3.98%
------------ -------------
Non-interest earning assets 218,512
------------
Total assets $4,520,316
============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking
accounts $77,086 $55 0.29%
Money Market accounts 1,179,713 1,915 0.66
Savings accounts 372,308 45 0.05
Certificates of deposit 928,039 3,205 1.40
------------ ------------- -------------
Total interest bearing
deposits 2,557,146 5,220 0.83
Borrowed Funds 1,162,983 7,498 2.61
------------ ------------- -------------
Total interest-bearing
liabilities 3,720,129 $12,718 1.39%
------------ -------------
Non-interest bearing checking
accounts 193,645
Other non-interest-bearing
liabilities 143,872
------------
Total liabilities 4,057,646
Stockholders' equity 462,670
------------
Total liabilities and stockholders'
equity $4,520,316
============
Net interest income $30,094
=============
Net interest spread 2.59%
=============
Net interest-earning assets $581,675
============
Net interest margin 2.80%
=============
Ratio of interest-earning assets
to interest-bearing liabilities 115.64%
=============
Deposits (including non-interest
bearing checking accounts) $2,750,791 $5,220 0.77%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment
fee income $2,299
----------------------------------------------------------------------------
Borrowing prepayment costs $1,362
----------------------------------------------------------------------------
Real estate loans (excluding net
prepayment and late payment fees) 3.79%
----------------------------------------------------------------------------
Interest earning assets (excluding
net prepayment and late payment
fees) 3.77%
----------------------------------------------------------------------------
Borrowings (excluding prepayment
costs) $1,162,983 $6,136 2.14%
----------------------------------------------------------------------------
Interest bearing liabilities
(excluding borrowing prepayment
costs) 1.24%
----------------------------------------------------------------------------
Net Interest income (excluding loan
prepayment and late payment fees
and borrowing prepayment costs) $ 29,157
----------------------------------------------------------------------------
Net Interest margin (excluding loan
prepayment and late payment fees
and borrowing prepayment costs) 2.71%
----------------------------------------------------------------------------
December 31, 2014
----------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------- -------------
Assets:
Interest-earning assets:
Real estate loans $4,071,822 $42,897 4.21%
Other loans 1,910 25 5.24
Mortgage-backed securities 25,660 207 3.23
Investment securities 15,870 286 7.21
Federal funds sold and other
short-term investments 84,785 556 2.62
------------ ------------- -------------
Total interest earning assets 4,200,047 $43,971 4.19%
------------ -------------
Non-interest earning assets 202,954
------------
Total assets $4,403,001
============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking
accounts $76,743 $52 0.27%
Money Market accounts 1,132,049 1,710 0.60
Savings accounts 375,667 47 0.05
Certificates of deposit 866,055 3,193 1.46
------------ ------------- -------------
Total interest bearing
deposits 2,450,514 5,002 0.81
Borrowed Funds 1,169,742 7,241 2.46
------------ ------------- -------------
Total interest-bearing
liabilities 3,620,256 $12,243 1.34%
------------ -------------
Non-interest bearing checking
accounts 183,708
Other non-interest-bearing
liabilities 140,358
------------
Total liabilities 3,944,322
Stockholders' equity 458,679
------------
Total liabilities and stockholders'
equity $4,403,001
============
Net interest income $31,728
=============
Net interest spread 2.85%
=============
Net interest-earning assets $579,791
============
Net interest margin 3.02%
=============
Ratio of interest-earning assets to
interest-bearing liabilities 116.02%
=============
Deposits (including non-interest
bearing checking accounts) $2,634,222 $5,002 0.75%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment
fee income $3,695
----------------------------------------------------------------------------
Borrowing prepayment costs -
----------------------------------------------------------------------------
Real estate loans (excluding net
prepayment and late payment fees) 3.85%
----------------------------------------------------------------------------
Interest earning assets (excluding
net prepayment and late payment
fees) 3.84%
----------------------------------------------------------------------------
Borrowings (excluding prepayment
costs) $1,169,742 $7,241 2.46%
----------------------------------------------------------------------------
Interest bearing liabilities
(excluding borrowing prepayment
costs) 1.34%
----------------------------------------------------------------------------
Net Interest income (excluding loan
prepayment and late payment fees
and borrowing prepayment costs) $ 28,033
----------------------------------------------------------------------------
Net Interest margin (excluding loan
prepayment and late payment fees
and borrowing prepayment costs) 2.67%
----------------------------------------------------------------------------
March 31, 2014
----------------------------------------
Average
Average Yield/
Balance Interest Cost
------------ ------------- -------------
Assets:
Interest-earning assets:
Real estate loans $3,819,210 $40,861 4.28%
Other loans 1,980 25 5.05
Mortgage-backed securities 29,475 248 3.37
Investment securities 29,597 70 0.95
Federal funds sold and other
short-term investments 69,035 522 3.02
------------ ------------- -------------
Total interest earning assets 3,949,297 $41,726 4.23%
------------ -------------
Non-interest earning assets 193,310
------------
Total assets $4,142,607
============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking
accounts $84,965 $59 0.28%
Money Market accounts 1,052,680 1,315 0.51
Savings accounts 377,705 46 0.05
Certificates of deposit 842,130 3,201 1.54
------------ ------------- -------------
Total interest bearing
deposits 2,357,480 4,621 0.79
Borrowed Funds 1,051,784 6,850 2.64
------------ ------------- -------------
Total interest-bearing
liabilities 3,409,264 $11,471 1.36%
------------ -------------
Non-interest bearing checking
accounts 173,029
Other non-interest-bearing
liabilities 120,027
------------
Total liabilities 3,702,320
Stockholders' equity 440,287
------------
Total liabilities and stockholders'
equity $4,142,607
============
Net interest income $30,255
=============
Net interest spread 2.87%
=============
Net interest-earning assets $540,033
============
Net interest margin 3.06%
=============
Ratio of interest-earning assets to
interest-bearing liabilities 115.84%
=============
Deposits (including non-interest
bearing checking accounts) $2,530,509 $4,621 0.74%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment
fee income $2,675
----------------------------------------------------------------------------
Borrowing prepayment costs -
----------------------------------------------------------------------------
Real estate loans (excluding net
prepayment and late payment fees) 4.00%
----------------------------------------------------------------------------
Interest earning assets (excluding
net prepayment and late payment
fees) 3.96%
----------------------------------------------------------------------------
Borrowings (excluding prepayment
costs) $1,051,784 $6,850 2.64%
----------------------------------------------------------------------------
Interest bearing liabilities
(excluding borrowing prepayment
costs) 1.36%
----------------------------------------------------------------------------
Net Interest income (excluding loan
prepayment and late payment fees
and borrowing prepayment costs) $ 27,580
----------------------------------------------------------------------------
Net Interest margin (excluding loan
prepayment and late payment fees
and borrowing prepayment costs) 2.79%
----------------------------------------------------------------------------
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS
("TDRs")
(Dollars In thousands)
At March 31, At December 31, At March 31,
Non-Performing Loans 2015 2014 2014
------------ --------------- ------------
One- to four-family and
cooperative/condominium
apartment $ 1,141 $ 1,310 $ 1,382
Multifamily residential and
mixed use residential real
estate (1)(2) 537 167 1,271
Mixed use commercial real estate
(2) - - 4,400
Commercial real estate 4,717 4,717 5,707
Other 4 4 16
------------ --------------- ------------
Total Non-Performing Loans (3) $ 6,399 $ 6,198 $ 12,776
------------ --------------- ------------
Other Non-Performing Assets
Other real estate owned 148 18 18
Pooled bank trust preferred
securities (4) 906 904 900
------------ --------------- ------------
Total Non-Performing Assets $ 7,453 $ 7,120 $ 13,694
------------ --------------- ------------
TDRs not included in non-
performing loans (3)
One- to four-family and
cooperative/condominium
apartment 603 605 930
Multifamily residential and
mixed use residential real
estate (1)(2) 721 1,105 1,137
Mixed use commercial real estate
(2) 4,400 4,400 -
Commercial real estate 3,475 8,990 16,458
------------ --------------- ------------
Total Performing TDRs $ 9,199 $ 15,100 $ 18,525
------------ --------------- ------------
(1) Includes loans underlying cooperatives.
(2) While the loans within these categories are often considered
"commercial real estate" in nature, they are classified separately in
the table above to provide further emphasis of the discrete
composition of their underlying real estate collateral.
(3) Total non-performing loans include some loans that were modified in a
manner that met the criteria for a TDR. These non-accruing TDRs, which
totaled $5,088 at March 31, 2015, $4,717 at December 31, 2014 and
$5,707 at March 31, 2014, are included in the non-performing loan
table, but excluded from the TDR amount shown above.
(4) These assets were deemed non-performing since the Company had, as of
the dates indicated, not received any payments of principal or
interest on them for a period of at least 90 days.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE
CAPITAL AND RESERVES
At March 31, At December 31, At March 31,
2015 2014 2014
------------- ---------------- -------------
Total Non-Performing Assets $ 7,453 $ 7,120 $ 13,694
Loans 90 days or more past due
on accrual status (5) 1,711 3,332 2,699
------------- ---------------- -------------
TOTAL PROBLEM ASSETS $ 9,164 $ 10,452 $ 16,393
------------- ---------------- -------------
Tier One Capital - The Dime
Savings Bank of Williamsburgh $ 416,067 $ 406,910 $ 388,341
Allowance for loan losses 18,237 18,493 20,429
------------- ---------------- -------------
TANGIBLE CAPITAL PLUS
RESERVES $ 434,304 $ 425,403 $ 408,770
------------- ---------------- -------------
PROBLEM ASSETS AS A PERCENTAGE
OF TANGIBLE CAPITAL AND
RESERVES 2.1% 2.5% 4.0%
(5) These loans were, as of the respective dates indicated, expected to be
either satisfied, made current or re-financed within the following
twelve months, and were not expected to result in any loss of
contractual principal or interest. These loans are not included in
non-performing loans.
Contact: Kenneth Ceonzo Director of Investor Relations 718-782-6200 extension 8279
Source: Dime Community Bancshares
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