Dime Community Bancshares, Inc. Posts Strong Quarterly Earnings
Quarterly EPS of $0.32; $91 Million of Growth in Deposits
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Dividend Yield: 5.6%
EPS Growth %: -59.8%
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BROOKLYN, NY -- (Marketwired) -- 07/23/15 -- 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 June 30, 2015. Consolidated net income for the quarter was $11.5 million, or $0.32 per diluted share, compared to $11.8 million, or $0.33 per diluted share, for the quarter ended March 31, 2015, and $10.5 million, or $0.29 per diluted share, for the quarter ended June 30, 2014.
Vincent F. Palagiano, Chairman and Chief Executive Officer of Dime, commented, "We are pleased to report another solid operating quarter, fueled by increased prepayment fee income, a $1.1 million credit to the allowance for loan losses that was primarily attributable to the resolution of our largest problem loan, and continued low funding and operating costs. Dime's traditionally favorable asset quality metrics have even returned to pre-crisis levels." The allowance for loan losses as a percentage of total loans remained relatively unchanged from the 0.43% level at March 31, 2015.
Mr. Palagiano continued, "Despite the elevated loan amortization experienced in the June 2015 quarter, we were still able to grow loans by 7% on an annualized basis during the quarter, utilizing core deposits to fund the growth. We continue to have success in our deposit operation, and, over the first six months of 2015, have experienced over 17% growth in business deposits. Consolidated tangible capital increased by over 10% annualized in the second quarter, leaving the Company well positioned to support its double digit annual asset growth target."
Management's Discussion of Quarterly Operating Results
There were no variances between reported and "core" net income (as computed on page 9 of this release) during the three months ended both June 30, 2015 and 2014. The quarter ended March 31, 2015 featured several items that were non-recurring in nature, which produced a net increase of $1.9 million, or $0.06 per diluted share, in after-tax earnings for the period. Excluding these items, net income was $9.9 million, or $0.27 per diluted share during the three months ended March 31, 2015.
- Net Interest Margin
Net interest margin ("NIM") was 3.05% during the quarter ended June 30, 2015 compared to 2.80% during the March 2015 quarter, and 2.96% during the June 2014 quarter. Income recognized from loan prepayment activity, which varies from quarter to quarter, had a positive impact on the Company's NIM during each of the reporting periods presented. Due to the refinancing activities of two large borrowers, loan amortization and prepayments were significantly higher during the June 2015 quarter than during the March 2015 quarter. For the second quarter 2015, income from prepayment activity totaled $4.1 million, or 39 basis points of impact upon NIM, compared to $2.3 million, or 22 basis points of impact upon NIM, during the quarter ended March 31, 2015. 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 ("FHLBNY") advance. The "core" NIM, which excludes the impact of these prepayment income and expense items, declined from 2.71% during the March 2015 quarter to 2.66% during the June 2015 quarter, caused by a reduction of 8 basis points in the average yield on interest earning assets and an increase of one basis point in the average cost of deposits. Core NIM for the June 2014 quarter was 2.73%.
As mentioned in the Company's previous earnings release, NIM, excluding the effects of prepayment fee income, is not expected to fluctuate significantly as long as the current interest rate environment remains in effect.
The average cost of funds declined by 19 basis points from the March 2015 to the June 2015 quarter, reflecting a 44 basis point reduction in the average cost of borrowings, as the March 2015 quarterly average cost of borrowings was increased by 47 basis points as a result of the prepayment of an FHLBNY advance.
- Net Interest Income
Net interest income was $33.1 million in the quarter ended June 30, 2015, an increase of $3.0 million from $30.1 million reported in the March 2015 quarter, and $2.5 million from the $30.6 million reported in the June 2014 quarter. The increase from the March 2015 quarter resulted from both an additional $1.8 million of prepayment fee income recognized during the June 2015 quarter, and the additional $1.4 million of interest expense recognized in the March 2015 quarter from the prepayment of the FHLBNY advance. The increase from the June 2014 quarter reflected both $1.8 million of additional prepayment fee income and a reduction of $1.9 million in interest expense on borrowings, as the average balance of borrowings declined $86.6 million from the June 2014 quarter to the June 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 June 2015 quarter of $1.1 million, due primarily to a recovery of $1.5 million recognized on the resolution of a $4.5 million non-accrual loan. The credit to the allowance for loan losses recognized during the June 2015 quarter was reduced by loan loss reserves added from growth in the loan portfolio experienced during the quarter.
- Non-Interest Income
Non-interest income was $1.7 million for the quarter ended June 30, 2015, a reduction of $1.6 million from the March 2015 quarter, due primarily to a non-recurring $1.4 million gain on the sale of mortgage-backed securities recognized in the March 2015 quarter, and lower loan-related fee income. Non-interest income was $110,000 above the June 2014 quarter, due to additional income recognized from Bank Owned Life Insurance assets, as the Company purchased additionally BOLI policies in October 2014.
- Non-Interest Expense
Non-interest expense was $16.4 million in the quarter ended June 30, 2015, up $2.5 million from the March 2015 quarter, but slightly below the $16.5 million projected level. During the March 2015 quarter, a $3.4 million reduction to expense was recognized from the curtailment of a previously-grandfathered post-retirement benefit plan. Excluding the curtailment benefit, non-interest expense was $17.3 million in the March 2015 quarter.
Non-interest expense was 1.44% of average assets during the most recent quarter, compared to 1.53% during the March 2015 quarter (excluding the impact of the postretirement plan curtailment benefit). The efficiency ratio approximated 47% during the June 2015 quarter.
- Income Tax Expense
The effective tax rate approximated 41% during the most recent quarter, above the forecasted 39% level due to higher than forecasted taxable income from prepayment fees on loan refinancings.
Management's Discussion of the June 30, 2015 Balance Sheet
Total assets were $4.64 billion at June 30, 2015, up $61.2 million, or 1.3%, from March 31, 2015.
- Real Estate Loans
Real estate loan net portfolio growth was $71.2 million for the quarter. Real estate loan originations were $408.7 million, at a weighted average interest rate of 3.25%. Of this amount, $170.4 million represented loan refinances from the existing portfolio. Approximately one-half of the loans originated during the quarter contained repricing terms of five years or less. Loan amortization and satisfactions totaled $333.0 million, or 31.2% (annualized) of the quarterly average portfolio balance, at an average rate of 4.09%. During the three months ended June 30, 2015, $41.2 million of loans to one large borrower were paid off, accounting for the higher than expected satisfaction volume during the quarter. The average yield on the loan portfolio (excluding income recognized from prepayment activity) during the quarter ended June 30, 2015 was 3.73%, compared to 3.79% during the March 2015 quarter and 4.01% during the June 2014 quarter.
- Credit Summary
Non-performing loans were $959,000, or 0.02% of total loans, at June 30, 2015, down from $6.4 million, or 0.15% of total loans, at March 31, 2015. During the most recent quarter, four non-accrual loans totaling $4.9 million were either disposed of or satisfied, and a $333,000 non-accrual loan was transferred to held for sale pending closing of an executed note sale agreement. Accruing loans delinquent between 30 and 89 days were $349,000, or 0.01% of total loans, at June 30, 2015, down from $1.2 million, or 0.03% of total loans, at March 31, 2015.
At June 30, 2015, the Bank also had $9.2 million of loans classified as troubled debt restructurings that remained on accrual status and were deemed performing loans. All such loans were current as of June 30, 2015.
The allowance for loan losses as a percentage of total loans remained relatively unchanged from the 0.43% level at March 31, 2015.
At June 30, 2015, non-performing assets represented 0.80% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table). This number compares very favorably to both national and regional industry averages.
- Deposits and Borrowed Funds
Progress continues to be made in lowering the Bank's loan to deposit ratio, and increasing core deposits, as both are presently viewed as significant components of the Company's long term strategic growth plan.
Deposits increased by $91.4 million during the quarter ended June 30, 2015. Recent deposit gathering initiatives focused upon money markets and business accounts led to growth of $111.4 million and $21.9 million in their respective balances during the period. Offsetting this growth was a reduction of $29.5 million in certificates of deposits ("CDs").
Total borrowings declined $15.0 million during the June 2015 quarter, as shorter-term Federal Home Loan Bank of New York advances were reduced by $15.0 million while the Bank was able to replace borrowings with deposits in order to fund asset growth during the period.
- Capital
The Bank and Company recently commenced compliance with the Basel III capital rules. The consolidated leverage ratio (Tier 1 capital to average assets) was 11.12% at June 30, 2015, well in excess of all Basel III capital requirements (inclusive of conservation buffer amounts).
The Bank's leverage ratio (Tier 1 capital to average assets) was 9.47% at June 30, 2015, up from 9.24% at March 31, 2015, as a result of $9.5 million of Tier 1 capital added during the quarter. The Bank's "Tier 1" and "Total" capital ratios were 12.44% and 12.99%, respectively, at June 30, 2015, also well in excess of the most stringent Basel III requirements.
Reported diluted earnings per share exceeded the quarterly cash dividend rate per share by 129% during the quarter ended June 30, 2015, equating to a 44% payout ratio. Additions to capital from earnings during the most recent quarterly period raised tangible book value per share by $0.21 sequentially during the most recent quarter, to $11.61 at June 30, 2015.
Outlook for the Quarter Ending September 30, 2015
At June 30, 2015, Dime had outstanding loan commitments totaling $281.9 million, all of which are likely to close during the quarter ending September 30, 2015, at an average interest rate approximating 3.35%. Loan prepayments and amortization are projected to moderate significantly from the June 2015 quarter, and fall within a targeted range of 15% - 20% during the remainder of 2015.
The Company has a balance sheet growth objective approximating 12% for the year ending December 31, 2015, with a preference toward utilizing retail deposits for most of its funding needs.
Deposit funding costs are expected to remain near current historically low levels through the September 2015 quarter. During the quarter ending September 30, 2015, the Bank has $120.9 million of CDs maturing at an average rate of 0.80%, and $205.0 million of borrowings maturing at an average rate of 1.04%. No significant increase or reduction in funding costs is likely to occur from the rollover or re-positioning of these funds.
Loan loss reserve provisions or credits will continue to depend upon annualized loan portfolio growth, incurred and anticipated losses, and the overall performance of the loan portfolio. Significant provisions or credits are less likely as the expected loss component of the allowance continues to stabilize and portfolio growth remains measured and consistent.
Non-interest expense is expected to approximate $16.3 million during the September 2015 quarter, reflecting strategic technology and infrastructure initiatives that have elevated operating costs from their 2014 level.
The Company projects that the consolidated effective tax rate will approximate 39.0% in the September 2015 quarter.
ABOUT DIME COMMUNITY BANCSHARES, INC.
The Company (NASDAQ: DCOM) had $4.64 billion in consolidated assets as of June 30, 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)
June 30, March 31, December 31,
2015 2015 2014
------------ ------------- -------------
ASSETS:
Cash and due from banks $ 67,946 $ 79,149 $ 78,187
Investment securities held to
maturity 5,300 5,326 5,367
Investment securities available
for sale 3,842 3,846 3,806
Trading securities 8,777 8,747 8,559
Mortgage-backed securities
available for sale 459 485 26,409
Federal funds sold and other
short-term investments - 250 250
Real Estate Loans:
One-to-four family and
cooperative/condomnium
apartment 70,875 70,982 73,500
Multifamily and loans
underlying cooperatives (1) 3,426,991 3,392,472 3,292,753
Commercial real estate 799,882 763,591 745,463
Unearned discounts and net
deferred loan fees 6,561 6,060 5,695
------------ ------------- -------------
Total real estate loans 4,304,309 4,233,105 4,117,411
------------ ------------- -------------
Other loans 1,954 1,612 1,829
Allowance for loan losses (18,553) (18,237) (18,493)
------------ ------------- -------------
Total loans, net 4,287,710 4,216,480 4,100,747
------------ ------------- -------------
Loans held for sale 333 - -
Premises and fixed assets, net 15,263 24,485 25,065
Premises held for sale 8,799 - -
Federal Home Loan Bank of New
York capital stock 52,728 52,782 58,407
Other Real Estate Owned 148 148 18
Goodwill 55,638 55,638 55,638
Other assets 137,592 136,013 134,654
------------ ------------- -------------
TOTAL ASSETS $ 4,644,535 $ 4,583,349 $ 4,497,107
============ ============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Non-interest bearing checking $ 210,957 $ 197,102 $ 187,593
Interest Bearing Checking 75,677 76,449 78,430
Savings 370,127 373,730 372,753
Money Market 1,378,718 1,267,290 1,094,698
------------ ------------- -------------
Sub-total 2,035,479 1,914,571 1,733,474
------------ ------------- -------------
Certificates of deposit 898,328 927,863 926,318
------------ ------------- -------------
Total Due to Depositors 2,933,807 2,842,434 2,659,792
------------ ------------- -------------
Escrow and other deposits 87,239 114,476 91,921
Federal Home Loan Bank of New
York advances 1,033,725 1,048,725 1,173,725
Trust Preferred Notes Payable 70,680 70,680 70,680
Other liabilities 41,137 40,978 41,264
------------ ------------- -------------
TOTAL LIABILITIES 4,166,588 4,117,293 4,037,382
------------ ------------- -------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par,
125,000,000 shares authorized,
53,145,798 shares, 52,886,219
shares and 52,871,443 shares
issued at June 30, 2015, March
31, 2015 and December 31, 2014,
respectively, and 37,189,352
shares, 36,849,795 shares and
36,855,019 shares outstanding
at June 30, 2015, March 31,
2015 and December 31, 2014,
respectively) 532 529 529
Additional paid-in capital 259,637 254,750 254,358
Retained earnings 440,335 433,863 427,126
Accumulated other comprehensive
loss, net of deferred taxes (9,349) (9,597) (8,547)
Unallocated common stock of
Employee Stock Ownership Plan (2,429) (2,487) (2,545)
Unearned Restricted Stock Award
common stock (3,165) (2,572) (3,066)
Common stock held by the Benefit
Maintenance Plan (9,354) (9,164) (9,164)
Treasury stock (15,956,446
shares, 16,036,424 shares and
16,016,424 shares at June 30,
2015, March 31, 2015 and
December 31, 2014,
respectively) (198,260) (199,266) (198,966)
------------ ------------- -------------
TOTAL STOCKHOLDERS' EQUITY 477,947 466,056 459,725
------------ ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 4,644,535 $ 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
-------------------------------------
June 30, March 31, June 30,
2015 2015 2014
----------- ----------- -----------
Interest income:
Loans secured by real estate $ 43,473 $ 41,788 $ 41,973
Other loans 24 24 29
Mortgage-backed securities 2 181 236
Investment securities 121 169 136
Federal funds sold and other short-
term investments 578 650 536
----------- ----------- -----------
Total interest income 44,198 42,812 42,910
----------- ----------- -----------
Interest expense:
Deposits and escrow 5,670 5,220 4,992
Borrowed funds 5,458 7,498 7,324
----------- ----------- -----------
Total interest expense 11,128 12,718 12,316
----------- ----------- -----------
Net interest income 33,070 30,094 30,594
Credit for loan losses (1,135) (172) (1,130)
----------- ----------- -----------
Net interest income after credit for
loan losses 34,205 30,266 31,724
----------- ----------- -----------
Non-interest income:
Service charges and other fees 799 750 769
Mortgage banking income, net 41 72 82
Gain (loss) on sale of securities
and other assets (4) 1,388 -
Gain (loss) on trading securities (21) 62 63
Other 862 1,029 651
----------- ----------- -----------
Total non-interest income 1,677 3,301 1,565
----------- ----------- -----------
Non-interest expense:
Compensation and benefits 9,540 6,841 9,115
Occupancy and equipment 2,490 2,944 2,392
Federal deposit insurance premiums 576 551 524
Other 3,760 3,528 3,267
----------- ----------- -----------
Total non-interest expense 16,366 13,864 15,298
----------- ----------- -----------
Income before taxes 19,516 19,703 17,991
Income tax expense 7,987 7,925 7,531
----------- ----------- -----------
Net Income $ 11,529 $ 11,778 $ 10,460
=========== =========== ===========
Earnings per Share ("EPS"):
Basic $ 0.32 $ 0.33 $ 0.29
=========== =========== ===========
Diluted $ 0.32 $ 0.33 $ 0.29
=========== =========== ===========
Average common shares outstanding for
Diluted EPS 36,259,377 36,053,459 35,957,291
For the Six Months Ended
------------------------
June 30, June 30,
2015 2014
----------- -----------
Interest income:
Loans secured by real estate $ 85,261 $ 82,834
Other loans 48 54
Mortgage-backed securities 183 484
Investment securities 290 206
Federal funds sold and other short-
term investments 1,228 1,058
----------- -----------
Total interest income 87,010 84,636
----------- -----------
Interest expense:
Deposits and escrow 10,890 9,613
Borrowed funds 12,956 14,174
----------- -----------
Total interest expense 23,846 23,787
----------- -----------
Net interest income 63,164 60,849
Credit for loan losses (1,307) (849)
----------- -----------
Net interest income after credit for
loan losses 64,471 61,698
----------- -----------
Non-interest income:
Service charges and other fees 1,549 1,424
Mortgage banking income, net 113 1,082
Gain (loss) on sale of securities
and other assets 1,384 649
Gain (loss) on trading securities 41 77
Other 1,891 1,393
----------- -----------
Total non-interest income 4,978 4,625
----------- -----------
Non-interest expense:
Compensation and benefits 16,381 18,623
Occupancy and equipment 5,434 5,143
Federal deposit insurance premiums 1,127 1,029
Other 7,288 6,326
----------- -----------
Total non-interest expense 30,230 31,121
----------- -----------
Income before taxes 39,219 35,202
Income tax expense 15,912 14,708
----------- -----------
Net Income $ 23,307 $ 20,494
=========== ===========
Earnings per Share ("EPS"):
Basic $ 0.65 $ 0.57
=========== ===========
Diluted $ 0.64 $ 0.57
=========== ===========
Average common shares outstanding for
Diluted EPS 36,158,821 35,923,349
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
----------------------------------
June 30, March 31, June 30,
2015 2015 2014
---------- ---------- ----------
Reconciliation of Reported and Adjusted
("Core") Net Income (1):
Net Income $ 11,529 $ 11,778 $ 10,460
Less: After tax gain on sale of
securities - (764) -
Add: After-tax expense associated with
the prepayment of borrowings - 750 -
Less: After tax gain on the sale of real
estate - - -
Less: After tax credit on curtailment of
postretirement health benefits - (1,868) -
---------- ---------- ----------
Adjusted ("Core") net income $ 11,529 $ 9,896 $ 10,460
========== ========== ==========
Performance Ratios (Based upon Reported
Net Income):
Reported EPS (Diluted) $ 0.32 $ 0.33 $ 0.29
Return on Average Assets 1.01% 1.04% 0.97%
Return on Average Stockholders' Equity 9.78% 10.18% 9.36%
Return on Average Tangible Stockholders'
Equity 10.84% 11.33% 10.62%
Net Interest Spread 2.88% 2.59% 2.77%
Net Interest Margin 3.05% 2.80% 2.96%
Non-interest Expense to Average Assets 1.44% 1.23% 1.42%
Efficiency Ratio 47.97% 43.40% 47.66%
Effective Tax Rate 40.93% 40.22% 41.86%
Performance Ratios (Based upon "Core Net
Income" as calculated above):
EPS (Diluted) $ 0.32 $ 0.27 $ 0.29
Return on Average Assets 1.01% 0.88% 0.97%
Return on Average Stockholders' Equity 9.78% 8.56% 9.36%
Return on Average Tangible Stockholders'
Equity 10.84% 9.52% 10.62%
Net Interest Spread 2.88% 2.74% 2.77%
Net Interest Margin 3.05% 2.92% 2.96%
Non-interest Expense to Average Assets 1.44% 1.53% 1.42%
Efficiency Ratio 47.97% 51.81% 47.66%
Effective Tax Rate 40.93% 39.23% 41.86%
Book Value and Tangible Book Value Per
Share:
Stated Book Value Per Share $ 12.85 $ 12.65 $ 12.17
Tangible Book Value Per Share 11.61 11.40 10.78
Average Balance Data:
Average Assets $4,555,381 $4,520,316 $4,311,701
Average Interest Earning Assets 4,335,579 4,301,804 4,127,883
Average Stockholders' Equity 471,628 462,670 446,785
Average Tangible Stockholders' Equity 425,522 415,827 393,820
Average Loans 4,216,209 4,174,083 3,945,287
Average Deposits 2,911,493 2,750,791 2,623,386
Asset Quality Summary:
Net (recoveries) charge-offs ($ 1,451) $ 84 ($ 335)
Non-performing Loans (excluding loans
held for sale) 959 6,399 12,305
Non-performing Loans/ Total Loans 0.02% 0.15% 0.31%
Nonperforming Assets (2) $ 2,659 $ 7,453 $ 13,224
Nonperforming Assets/Total Assets 0.06% 0.16% 0.31%
Allowance for Loan Loss/Total Loans 0.43% 0.43% 0.49%
Allowance for Loan Loss/Non-performing
Loans 1934.62% 285.00% 159.55%
Loans Delinquent 30 to 89 Days at period
end $ 349 $ 1,239 $ 2,274
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period end 9.40% 9.27% 9.36%
Regulatory Capital Ratios (Bank Only):
Common Equity Tier 1 Capital to Risk-
Weighted Assets (3) 9.30% 12.43% N/A
Tier 1 Capital to Risk-Weighted Assets
("Tier 1 Capital Ratio") (3) 12.44% 12.43% N/A
Total Capital to Risk-Weighted Assets
("Total Capital Ratio") (3) 12.99% 12.98% N/A
Tier 1 Capital to Average Assets (3) 9.47% 9.24% 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 that were deemed to meet
the criteria of a non-performing asset.
(3) The ratios presented as of June 30, 2015 and March 31, 2015 are based
upon new regulatory capital measures that became effective on January 1,
2015. Since these ratios were not effective as of June 30, 2014,
comparative measures are not available as of that date, and are thus not
presented.
For the Six Months
Ended
----------------------
June 30, June 30,
2015 2014
---------- ----------
Reconciliation of Reported and Adjusted
("Core") Net Income (1):
Net Income $ 23,307 $ 20,494
Less: After tax gain on sale of
securities (764) -
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 ("Core") net income $ 21,425 $ 20,138
========== ==========
Performance Ratios (Based upon Reported
Net Income):
Reported EPS (Diluted) $ 0.64 $ 0.57
Return on Average Assets 1.03% 0.97%
Return on Average Stockholders' Equity 9.98% 9.24%
Return on Average Tangible Stockholders'
Equity 11.08% 10.49%
Net Interest Spread 2.74% 2.81%
Net Interest Margin 2.93% 3.01%
Non-interest Expense to Average Assets 1.33% 1.47%
Efficiency Ratio 45.31% 48.06%
Effective Tax Rate 40.57% 41.78%
Performance Ratios (Based upon "Core Net
Income" as calculated above):
EPS (Diluted) $ 0.59 $ 0.56
Return on Average Assets 0.94% 0.95%
Return on Average Stockholders' Equity 9.17% 9.08%
Return on Average Tangible Stockholders'
Equity 10.18% 10.31%
Net Interest Spread 2.82% 2.81%
Net Interest Margin 2.99% 3.01%
Non-interest Expense to Average Assets 1.48% 1.47%
Efficiency Ratio 49.39% 48.06%
Effective Tax Rate 40.15% 41.72%
Book Value and Tangible Book Value Per
Share:
Stated Book Value Per Share $ 12.85 $ 12.17
Tangible Book Value Per Share 11.61 10.78
Average Balance Data:
Average Assets $4,537,849 $4,227,155
Average Interest Earning Assets 4,318,692 4,038,591
Average Stockholders' Equity 467,149 443,536
Average Tangible Stockholders' Equity 420,769 390,724
Average Loans 4,195,146 3,883,239
Average Deposits 2,831,143 2,576,949
Asset Quality Summary:
Net (recoveries) charge-offs ($ 1,367) ($ 329)
Non-performing Loans (excluding loans
held for sale) 959 12,305
Non-performing Loans/ Total Loans 0.02% 0.31%
Nonperforming Assets (2) $ 2,656 $ 13,224
Nonperforming Assets/Total Assets 0.06% 0.31%
Allowance for Loan Loss/Total Loans 0.43% 0.49%
Allowance for Loan Loss/Non-performing
Loans 1934.62% 159.55%
Loans Delinquent 30 to 89 Days at period
end $ 349 $ 2,274
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period end 9.40% 9.36%
Regulatory Capital Ratios (Bank Only):
Common Equity Tier 1 Capital to Risk-
Weighted Assets (3) 9.30% N/A
Tier 1 Capital to Risk-Weighted Assets
("Tier 1 Capital Ratio") (3) 12.44% N/A
Total Capital to Risk-Weighted Assets
("Total Capital Ratio") (3) 12.99% N/A
Tier 1 Capital to Average Assets (3) 9.47% 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 that were deemed to meet the criteria of a non-
performing asset.
(3) The ratios presented as of June 30, 2015 and March 31, 2015
are based upon new regulatory capital measures that became
effective on January 1, 2015. Since these ratios were not
effective as of June 30, 2014, comparative 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
-----------------------------
June 30, 2015
-----------------------------
Average
Average Yield/
Balance Interest Cost
---------- --------- -------
Assets:
Interest-earning assets:
Real estate loans $4,214,674 $ 43,473 4.13%
Other loans 1,535 23 5.99
Mortgage-backed securities 461 2 1.74
Investment securities 18,491 121 2.62
Other short-term investments 100,418 579 2.31
---------- --------- -------
Total interest earning assets 4,335,579 $ 44,198 4.08%
---------- ---------
Non-interest earning assets 219,802
----------
Total assets $4,555,381
==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking accounts $ 75,739 $ 60 0.32%
Money Market accounts 1,335,793 2,441 0.73
Savings accounts 373,430 45 0.05
Certificates of deposit 916,684 3,124 1.37
---------- --------- -------
Total interest bearing deposits 2,701,646 5,670 0.84
Borrowed Funds 1,010,119 5,458 2.17
---------- --------- -------
Total interest-bearing liabilities 3,711,765 $ 11,128 1.20%
---------- ---------
Non-interest bearing checking accounts 209,847
Other non-interest-bearing liabilities 162,141
----------
Total liabilities 4,083,753
Stockholders' equity 471,628
----------
Total liabilities and stockholders' equity $4,555,381
==========
Net interest income $ 33,070
=========
Net interest spread 2.88%
=======
Net interest-earning assets $ 623,814
==========
Net interest margin 3.05%
=======
Ratio of interest-earning assets to interest-
bearing liabilities 116.81%
=========
Deposits (including non-interest bearing
checking accounts) $2,911,493 $ 5,670 0.78%
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment fee income $ 4,194
---------------------------------------------------------------------------
Borrowing Prepayment Costs -
---------------------------------------------------------------------------
Real estate loans (excluding net prepayment
and late payment fee income) 3.73%
---------------------------------------------------------------------------
Interest earning assets (excluding net
prepayment and late payment fee income) 3.69%
---------------------------------------------------------------------------
Borrowing (excluding prepayment costs) $1,010,119 $ 5,458 2.17%
---------------------------------------------------------------------------
Interest bearing liabilities (excluding
borrowing prepayment costs) 1.20%
---------------------------------------------------------------------------
Net Interest income (excluding net prepayment
and late payment fee income) $ 28,876
---------------------------------------------------------------------------
Net Interest margin (excluding net prepayment
and late payment fee income) 2.66%
---------------------------------------------------------------------------
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
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%
-----------------------------
Loan prepayment and late payment fee income $ 2,299
---------------------------------------------------------------------------
Borrowing Prepayment Costs $ 1,362
---------------------------------------------------------------------------
Real estate loans (excluding net prepayment
and late payment fee income) 3.79%
---------------------------------------------------------------------------
Interest earning assets (excluding net
prepayment and late payment fee income) 3.77%
---------------------------------------------------------------------------
Borrowing (excluding prepayment costs) $1,162,983 $ 6,136 2.14%
---------------------------------------------------------------------------
Interest bearing liabilities (excluding
borrowing prepayment costs) 1.24%
---------------------------------------------------------------------------
Net Interest income (excluding net prepayment
and late payment fee income) $ 29,157
---------------------------------------------------------------------------
Net Interest margin (excluding net prepayment
and late payment fee income) 2.71%
---------------------------------------------------------------------------
June 30, 2014
-----------------------------
Average
Average Yield/
Balance Interest Cost
---------- --------- -------
Assets:
Interest-earning assets:
Real estate loans $3,943,414 $ 41,973 4.26%
Other loans 1,873 29 6.19
Mortgage-backed securities 28,487 236 3.31
Investment securities 15,585 136 3.49
Other short-term investments 138,524 536 1.55
---------- --------- -------
Total interest earning assets 4,127,883 $ 42,910 4.16%
---------- ---------
Non-interest earning assets 183,818
----------
Total assets $4,311,701
==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking accounts $ 79,490 $ 60 0.30%
Money Market accounts 1,114,169 1,548 0.56
Savings accounts 379,819 47 0.05
Certificates of deposit 873,733 3,337 1.53
---------- --------- -------
Total interest bearing deposits 2,447,211 4,992 0.82
Borrowed Funds 1,096,742 7,324 2.68
---------- --------- -------
Total interest-bearing liabilities 3,543,953 $ 12,316 1.39%
---------- ---------
Non-interest bearing checking accounts 176,175
Other non-interest-bearing liabilities 144,788
----------
Total liabilities 3,864,916
Stockholders' equity 446,785
----------
Total liabilities and stockholders' equity $4,311,701
==========
Net interest income $ 30,594
=========
Net interest spread 2.77%
=======
Net interest-earning assets $ 583,930
==========
Net interest margin 2.96%
=======
Ratio of interest-earning assets to interest-
bearing liabilities 116.48%
=========
Deposits (including non-interest bearing
checking accounts) $2,623,386 $ 4,992 0.76%
-----------------------------
Loan prepayment and late payment fee income $ 2,444
---------------------------------------------------------------------------
Borrowing Prepayment Costs -
---------------------------------------------------------------------------
Real estate loans (excluding net prepayment
and late payment fee income) 4.01%
---------------------------------------------------------------------------
Interest earning assets (excluding net
prepayment and late payment fee income) 3.92%
---------------------------------------------------------------------------
Borrowing (excluding prepayment costs) $1,096,742 $ 7,324 2.68%
---------------------------------------------------------------------------
Interest bearing liabilities (excluding
borrowing prepayment costs) 1.39%
---------------------------------------------------------------------------
Net Interest income (excluding net prepayment
and late payment fee income) $ 28,150
---------------------------------------------------------------------------
Net Interest margin (excluding net prepayment
and late payment fee income) 2.73%
---------------------------------------------------------------------------
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS
("TDRs")
(Dollars In thousands)
At June 30, At March 31, At June 30,
Non-Performing Loans 2015 2015 2014
----------- ------------ -----------
One- to four-family and
cooperative/condominium apartment $ 749 $ 1,141 $ 1,422
Multifamily residential and mixed use
residential real estate (1)(2) - 537 1,431
Mixed use commercial real estate (2) - - 4,400
Commercial real estate 207 4,717 5,047
Other 3 4 5
----------- ------------ -----------
Total Non-Performing Loans (3) $ 959 $ 6,399 $ 12,305
----------- ------------ -----------
Other Non-Performing Assets
Non-performing loans held for sale 333 - -
Other real estate owned 148 148 18
Pooled bank trust preferred securities
(4) 1,219 906 901
----------- ------------ -----------
Total Non-Performing Assets $ 2,659 $ 7,453 $ 13,224
----------- ------------ -----------
TDRs not included in non-performing
loans (3)
One- to four-family and
cooperative/condominium apartment 601 603 609
Multifamily residential and mixed use
residential real estate (1)(2) 712 721 1,126
Mixed use commercial real estate (2) 4,385 4,400 -
Commercial real estate 3,459 3,475 7,033
----------- ------------ -----------
Total Performing TDRs $ 9,157 $ 9,199 $ 8,768
----------- ------------ -----------
(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 $207 at June 30, 2015, $5,088 at March 31, 2015 and $9,447 at June
30, 2014, are included in the non-performing loan table, but excluded from
the TDR amount shown above.
(4) As of the dates indicated, certain pooled bank trust preferred
securities were deemed to meet the criteria of a non-performing asset.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES
At June 30, At March 31, At June 30,
2015 2015 2014
------------ ------------- ------------
Total Non-Performing Assets $ 2,659 $ 7,453 $ 13,224
Loans 90 days or more past due on
accrual status (5) 1,044 1,711 2,604
------------ ------------- ------------
TOTAL PROBLEM ASSETS $ 3,703 $ 9,164 $ 15,828
------------ ------------- ------------
Tier One Capital - The Dime Savings
Bank of Williamsburgh $ 425,334 $ 416,067 $ 389,369
Allowance for loan losses 18,553 18,237 19,633
------------ ------------- ------------
TANGIBLE CAPITAL PLUS RESERVES $ 443,887 $ 434,304 $ 409,002
------------ ------------- ------------
PROBLEM ASSETS AS A PERCENTAGE OF
TANGIBLE CAPITAL AND RESERVES 0.8% 2.1% 3.9%
(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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