• Dime Community Bancshares, Inc. Reports Third Quarter 2023 Results

    ソース: Nasdaq GlobeNewswire / 19 10 2023 05:00:01   America/Chicago

    Growth in New Commercial Customers Leads to Average Deposits Increasing By $128 Million on a Linked Quarter Basis

    Capital Ratios Continue to Grow and Asset Quality Remains Stable

    HAUPPAUGE, N.Y., Oct. 19, 2023 (GLOBE NEWSWIRE) --  Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $13.2 million for the quarter ended September 30, 2023, or $0.34 per diluted common share, compared to net income available to common stockholders of $25.7 million for the quarter ended June 30, 2023, or $0.66 per diluted common share, and net income available to common stockholders of $37.7 million for the quarter ended September 30, 2022, or $0.98 per diluted common share.

    Third quarter 2023 results include $8.9 million of aggregate pre-tax adjustments related to severance from the previously disclosed Chief Executive Officer succession and loss on equity securities. Excluding these items, adjusted net income available to common stockholders (non-GAAP) totaled $21.9 million for the quarter ended September 30, 2023, or $0.56 per diluted share (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Our third quarter results were characterized by good overall deposit growth, a stabilization in our non-interest-bearing deposit base and a continued reduction in the pace of net interest margin compression. Given our unique customer-focused platform, we continue to attract quality talent as evidenced by the addition of a senior healthcare banker in the third quarter. In light of the overall environment, we continue to manage expenses prudently and continue to fortify our balance sheet by building capital. I am incredibly proud of our employees for their tremendous contributions towards serving our customers; as a result of their efforts, we continue to be the premier community-based business bank on Greater Long Island.”

    Highlights for the Third Quarter of 2023 Included:

    • Average total deposits were $10.66 billion for the third quarter of 2023 compared to $10.54 billion for the second quarter of 2023;
    • Non-insured deposits (excluding deposits with pass through insurance and collateralized deposits) represented only 29% of total deposits at the end of the third quarter;
    • The ratio of average non-interest-bearing deposits to average total deposits for the third quarter and the second quarter of 2023 was 29%;
    • Total net loans held for investment of $10.78 billion, remained stable on a linked quarter basis;
    • The pace of Net Interest Margin (“NIM”) compression continued to slow in the third quarter; on a linked quarter basis, the NIM declined by 16 basis points in the third quarter of 2023 compared to 24 basis points for the second quarter of 2023 and 41 basis points for the first quarter of 2023;
    • Expenses remained well-controlled; excluding the impact of severance, non-interest expenses was $51.0 million for the third quarter of 2023, compared to $51.7 million for the second quarter of 2023;
    • Credit quality continues to be stable with non-performing assets and loans 90 days past due and accruing declining by 16% versus the linked quarter and representing only 0.17% of total assets as of September 30, 2023; and
    • The Company’s Tier 1 Risk Based Capital Ratio of 10.76% was 26 basis points higher than the prior quarter.

    Management’s Discussion of Quarterly Operating Results

    Net Interest Income

    Net interest income for the third quarter of 2023 was $76.5 million compared to $80.2 million for the second quarter of 2023 and $100.4 million for the third quarter of 2022.

    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 2023    Q2 2023    Q3 2022 
    Net interest income $ 76,479 $80,219 $100,438  
    Purchase accounting amortization (accretion) on loans ("PAA")   186  58  (57) 
    Adjusted net interest income excluding PAA on loans (non-GAAP) $ 76,665 $80,277 $100,381  
               
    Average interest-earning assets $ 12,984,061 $12,888,522 $11,782,361  
               
    NIM (1)   2.34%   2.50%   3.38%  
    Adjusted NIM excluding PAA on loans (non-GAAP) (2)   2.34%   2.50%   3.38%  


    (1)   NIM represents net interest income divided by average interest-earning assets.
    (2)   Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes net interest income on PAA loans divided by average interest-earning assets.

    Loan Portfolio

    The ending weighted average rate (“WAR”) (1) on the total loan portfolio was 5.20% at September 30, 2023, an 8 basis point increase compared to the ending WAR of 5.12% on the total loan portfolio at June 30, 2023.

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

                     
      September 30, 2023 June 30, 2023 September 30, 2022 
    (Dollars in thousands)    Balance    WAR    Balance    WAR    Balance    WAR 
    Loans held for investment balances at period end:                      
    Business loans (2) $ 2,271,768  6.72%  $2,250,108 6.56%  $2,002,568 5.24%
    One-to-four family residential, including condominium and cooperative apartment   892,869  4.39  855,980 4.17  722,081 3.77 
    Multifamily residential and residential mixed-use (3)(4)   4,102,024  4.45  4,132,358 4.38  3,968,244 3.83 
    Non-owner-occupied commercial real estate   3,374,281  5.09  3,406,232 5.04  3,174,102 4.33 
    Acquisition, development, and construction   203,402  8.92  225,580 8.99  241,019 6.75 
    Other loans   6,267  6.28  6,157 6.74  8,927 7.29 
    Loans held for investment $ 10,850,611  5.20%  $10,876,415 5.12%  $10,116,941 4.33%

     

    (1)    Weighted average rate is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.
    (2)    Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Small Business Administration Paycheck Protection Program (“PPP”) 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 here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

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

               
        
    (Dollars in millions)    Q3 2023    Q2 2023    Q3 2022 
    Loan originations $ 153.4 $296.6 $800.9 


    Deposits and Borrowed Funds

    Period end total deposits (including mortgage escrow deposits) at September 30, 2023 were $10.64 billion, compared to $10.53 billion at June 30, 2023 and $10.25 billion at December 31, 2022. CEO Lubow commented, “During the third quarter we had good growth in business deposits driven by the deposit group hires we made in the second quarter. Given the growth in business deposits, we were able to pay down approximately $80 million of retail brokered deposits in the third quarter. Excluding brokered deposits, deposits increased approximately $200 million on a linked quarter basis.”

    Total Federal Home Loan Bank advances were $1.12 billion at September 30, 2023 compared to $1.45 billion at June 30, 2023. Mr. Lubow stated, “During the third quarter we proactively paid down our Federal Home Loan Bank advance portfolio and we remain focused on operating a core deposit-funded institution.”

    Non-Interest Income

    Non-interest income was $7.9 million during the third quarter of 2023, $10.4 million during the second quarter of 2023, and $9.4 million during the third quarter of 2022. Included in non-interest income for the second quarter of 2023 was income related to mortality proceeds from a death claim of $645 thousand. Included in non-interest income during the third quarter of 2022 was a $1.4 million gain on the sale of a branch property.

    Non-Interest Expense

    Total non-interest expense was $59.5 million during the third quarter of 2023, $52.2 million during the second quarter of 2023, and $48.3 million during the third quarter of 2022. Excluding the impact of severance expense, loss on extinguishment of debt, and amortization of other intangible assets, adjusted non-interest expense was $50.6 million during the third quarter of 2023, $51.4 million during the second quarter of 2023, and $47.9 million during the third quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    The ratio of non-interest expense to average assets was 1.73% during the third quarter of 2023, compared to 1.53% during the linked quarter and 1.54% for the third quarter of 2022. Excluding the impact of severance expense, loss on extinguishment of debt, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.48% during the third quarter of 2023, compared to 1.51% during the linked quarter and 1.53% for the third quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    The efficiency ratio was 70.5% during the third quarter of 2023, compared to 57.6% during the linked quarter and 44.0% during the third quarter of 2022. Excluding the impact of loss on equity securities, net loss on sale of securities and other assets, severance expense, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 59.7% during the third quarter of 2023, compared to 56.2% during the linked quarter and 44.2% during the second quarter of 2022 (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 2023 was 35.1% compared to 26.8% for the second quarter of 2023. The increase in tax rate was primarily due to non-deductible severance expense during the period.

    Credit Quality

    Non-performing loans at September 30, 2023 were $23.3 million, 16% lower than the prior quarter.

    A credit loss provision of $1.8 million was recorded during the third quarter of 2023, compared to a credit loss provision of $892 thousand during the second quarter of 2023, and a credit loss provision of $6.6 million during the third quarter of 2022. The credit loss provision in the third quarter of 2023 was primarily associated with increased provisioning for individually analyzed loans.

    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, 2023. All of the Company’s and Bank’s risk-based regulatory capital ratios increased in the third quarter of 2023.

    Dividends per common share were $0.25 during the third and second quarters of 2023, respectively.

    Book value per common share was $28.03 at September 30, 2023 compared to $27.99 at June 30, 2023.

    Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $23.87 at September 30, 2023 compared to $23.82 at June 30, 2023. Excluding the impact of accumulated other comprehensive loss, the adjusted tangible common book value per share was $26.63 at September 30, 2023 compared to $26.51 at June 30, 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Earnings Call Information

    The Company will conduct a conference call at 8:30 a.m. (ET) on Thursday, October 19, 2023, during which CEO Lubow will discuss the Company’s third quarter 2023 financial performance, with a question-and-answer session to follow.

    The conference call will be simultaneously webcast (listen only) and archived for a period of one year at https://events.q4inc.com/attendee/616795871.                                                                

    Conference Call Details:

    Dial-in for Live Call:                                                      

    United States:                                 
    International:                                 
    Access code:                               



    Telephone Replay:

    A recording will be available until Thursday, November 2, 2023.

    United States:
    International:
    Access code:    		1-833-470-1428
    +1-929-526-1599
    193919

     


    1-866-813-9403
    +44-204-525-0658 
    861279


    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 less than $20 billion in assets.

    This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as “annualized," “anticipate," "believe," “continue,” "could," "estimate," "expect," "intend," “likely,” "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

    Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, including conditions caused by the COVID-19 pandemic and any other public health emergency, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. 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 SUBSIDIARIES
    UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (In thousands)

              
         September 30,     June 30,     December 31, 
      2023 2023 2022
    Assets:           
    Cash and due from banks $ 358,824  $452,504  $169,297 
    Securities available-for-sale, at fair value   869,879   894,856   950,587 
    Securities held-to-maturity   600,291   603,960   585,798 
    Loans held for sale   3,924   371   — 
    Loans held for investment, net:         
    Business loans (1)   2,271,768   2,250,108   2,211,857 
    One-to-four family and cooperative/condominium apartment   892,869   855,980   773,321 
    Multifamily residential and residential mixed-use (2)(3)   4,102,024   4,132,358   4,026,826 
    Non-owner-occupied commercial real estate   3,374,281   3,406,232   3,317,485 
    Acquisition, development and construction   203,402   225,580   229,663 
    Other loans   6,267   6,157   7,679 
    Allowance for credit losses   (72,563)  (75,646)  (83,507)
    Total loans held for investment, net   10,778,048   10,800,769   10,483,324 
    Premises and fixed assets, net   45,064   45,890   46,749 
    Restricted stock   90,085   104,724   88,745 
    Bank Owned Life Insurance ("BOLI")   347,400   337,083   333,292 
    Goodwill   155,797   155,797   155,797 
    Other intangible assets   5,409   5,758   6,484 
    Operating lease assets   55,600   54,931   57,857 
    Derivative assets   177,369   147,740   154,485 
    Accrued interest receivable   53,608   51,787   48,561 
    Other assets   109,202   146,692   108,945 
    Total assets $ 13,651,405  $13,802,862  $13,189,921 
    Liabilities:          
    Non-interest-bearing checking (excluding mortgage escrow deposits) $ 2,935,156  $2,884,184  $3,449,763 
    Interest-bearing checking   630,686   960,465   827,454 
    Savings (excluding mortgage escrow deposits)   2,309,440   2,275,008   2,259,909 
    Money market   3,211,197   2,801,652   2,532,270 
    Certificates of deposit   1,442,299   1,530,749   1,115,364 
    Deposits (excluding mortgage escrow deposits)   10,528,778   10,452,058   10,184,760 
    Non-interest-bearing mortgage escrow deposits   107,545   70,431   69,455 
    Interest-bearing mortgage escrow deposits   223   203   192 
    Total mortgage escrow deposits   107,768   70,634   69,647 
    FHLBNY advances   1,123,000   1,448,000   1,131,000 
    Other short-term borrowings   —   —   1,360 
    Subordinated debt, net   200,218   200,240   200,283 
    Derivative cash collateral   185,620   140,160   153,040 
    Operating lease liabilities   58,281   57,547   60,340 
    Derivative liabilities   160,712   131,130   137,335 
    Other liabilities   82,684   100,590   82,573 
    Total liabilities   12,447,061   12,600,359   12,020,338 
    Stockholders' equity:          
    Preferred stock, Series A   116,569   116,569   116,569 
    Common stock   416   416   416 
    Additional paid-in capital   494,470   493,955   495,410 
    Retained earnings   808,235   804,532   762,762 
    Accumulated other comprehensive loss ("AOCI"), net of deferred taxes   (106,913)  (104,385)  (94,379)
    Unearned equity awards   (10,170)  (11,746)  (8,078)
    Treasury stock, at cost   (98,263)  (96,838)  (103,117)
    Total stockholders' equity   1,204,344   1,202,503   1,169,583 
    Total liabilities and stockholders' equity $ 13,651,405  $13,802,862  $13,189,921 

     

    (1)    Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and 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 SUBSIDIARIES
    UNAUDITED 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, 
      2023  2023  2022 2023  2022
    Interest income:                    
    Loans $ 142,995  $138,310  $106,306 $ 409,744  $285,828
    Securities   7,916   7,914   7,374   24,261   21,572
    Other short-term investments   6,930   5,867   847   16,599   1,956
    Total interest income   157,841   152,091   114,527   450,604   309,356
    Interest expense:                   
    Deposits and escrow   62,507   52,616   10,154   152,395   16,416
    Borrowed funds   16,925   17,759   3,483   50,855   9,334
    Derivative cash collateral   1,930   1,497   452   4,904   547
    Total interest expense   81,362   71,872   14,089   208,154   26,297
    Net interest income   76,479   80,219   100,438   242,450   283,059
    Provision (recovery) for credit losses   1,806   892   6,587   (950)  5,039
    Net interest income after provision (recovery)   74,673   79,327   93,851   243,400   278,020
    Non-interest income:                   
    Service charges and other fees   3,963   4,856   3,866   12,633   12,261
    Title fees   291   246   474   829   1,578
    Loan level derivative income   783   2,437   549   6,353   2,240
    BOLI income   2,317   2,852   2,177   7,332   8,159
    Gain on sale of SBA loans   335   210   211   1,061   1,176
    Gain on sale of residential loans   21   34   54   103   393
    Loss on equity securities   (299)  (780)  —   (1,079)  —
    Net (loss) gain on sale of securities and other assets   (22)  —   1,397   (1,469)  1,397
    Other   539   550   634   1,571   1,485
    Total non-interest income   7,928   10,405   9,362   27,334   28,689
    Non-interest expense:                  
    Salaries and employee benefits   30,520   29,900   29,188   87,054   88,476
    Severance   8,562   481   —   9,068   2,193
    Occupancy and equipment   7,277   7,144   7,884   21,794   22,864
    Data processing costs   4,309   4,197   3,434   12,744   11,152
    Marketing   2,079   1,488   1,531   5,016   4,341
    Professional services   1,277   1,676   2,116   4,876   6,238
    Federal deposit insurance premiums   1,866   1,874   800   5,613   3,100
    Loss on extinguishment of debt   —   —   —   —   740
    Amortization of other intangible assets   349   349   431   1,075   1,447
    Other   3,284   5,077   2,918   11,944   9,477
    Total non-interest expense   59,523   52,186   48,302   159,184   150,028
    Income before taxes   23,078   37,546   54,911   111,550   156,681
    Income tax expense   8,093   10,048   15,430   31,764   44,184
    Net income   14,985   27,498   39,481   79,786   112,497
    Preferred stock dividends   1,822   1,822   1,822   5,465   5,465
    Net income available to common stockholders $ 13,163  $25,676  $37,659 $ 74,321  $107,032
    Earnings per common share ("EPS"):                    
    Basic $ 0.34  $0.66  $0.98 $ 1.92  $2.74
    Diluted $ 0.34  $0.66  $0.98 $ 1.92  $2.74
                    
    Average common shares outstanding for diluted EPS   38,203,961   38,175,993   38,165,681   38,177,704   38,678,894


    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
    (Dollars in thousands except per share amounts)

                     
      At or For the Three Months Ended  At or For the Nine Months Ended  
         September 30,     June 30,     September 30,     September 30,     September 30,  
      2023 2023 2022 2023 2022 
    Per Share Data:                     
    Reported EPS (Diluted) $ 0.34 $0.66 $0.98 $ 1.92 $2.74 
    Cash dividends paid per common share   0.25  0.25  0.24   0.74  0.72 
    Book value per common share   28.03  27.99  26.55   28.03  26.55 
    Tangible common book value per share (1)   23.87  23.82  22.34   23.87  22.34 
    Tangible common book value per share excluding AOCI (1)   26.63  26.51  24.75   26.63  24.75 
    Common shares outstanding   38,811  38,803  38,572   38,811  38,572 
    Dividend payout ratio   73.53%   37.88%   24.49%    38.54%   26.28%
                     
    Performance Ratios (Based upon Reported Net Income):                     
    Return on average assets   0.44%   0.81%   1.26%    0.78%   1.22%
    Return on average equity   4.91  9.03  13.56   8.78  12.83 
    Return on average tangible common equity (1)   5.69  11.04  17.15   10.73  16.20 
    Net interest margin   2.34  2.50  3.38   2.52  3.29 
    Non-interest expense to average assets   1.73  1.53  1.54   1.56  1.63 
    Efficiency ratio   70.5  57.6  44.0   59.0  48.1 
    Effective tax rate   35.07  26.76  28.10   28.48  28.20 
                     
    Balance Sheet Data:                     
    Average assets $ 13,759,493 $13,658,068 $12,550,626 $ 13,623,570 $12,292,051 
    Average interest-earning assets   12,984,061  12,888,522  11,782,361   12,853,701  11,511,149 
    Average tangible common equity (1)   943,805  940,054  885,182   933,072  889,044 
    Loan-to-deposit ratio at end of period (2)   102.0  103.4  96.5   102.0  96.5 
                     
    Capital Ratios and Reserves - Consolidated: (3)                     
    Tangible common equity to tangible assets (1)   6.87%   6.78%   6.77%        
    Tangible common equity excluding AOCI to tangible assets (1)   7.66  7.54  7.45       
    Tangible equity to tangible assets (1)   7.73  7.63  7.69       
    Tangible equity excluding AOCI to tangible assets (1)   8.53  8.40  8.36       
    Tier 1 common equity ratio   9.67  9.44  9.13       
    Tier 1 risk-based capital ratio   10.76  10.50  10.25       
    Total risk-based capital ratio   13.33  13.06  12.98       
    Tier 1 leverage ratio   8.38  8.42  8.61       
    Consolidated CRE concentration ratio (4)   547  555  555       
    Allowance for credit losses/ Total loans   0.67  0.70  0.81       
    Allowance for credit losses/ Non-performing loans   311.16  273.42  199.45       


    (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, 2023 amounts 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. September 30, 2023 amounts are preliminary pending completion and filing of the Company’s regulatory reports.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
    (Dollars in thousands)

                              
      Three Months Ended  
      September 30, 2023 June 30, 2023 September 30, 2022 
                           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) $ 2,260,203 $ 38,384  6.74%  $2,259,769 $36,715 6.52%  $2,013,897 $26,153 5.15%  
    One-to-four family residential, including condo and coop   879,688   9,165  4.13  828,324  8,661 4.19  706,144  6,294 3.54 
    Multifamily residential and residential mixed-use   4,114,476   46,099  4.45  4,125,119  45,123 4.39  3,831,747  36,423 3.77 
    Non-owner-occupied commercial real estate   3,382,927   44,184  5.18  3,337,689  42,559 5.11  3,119,262  33,168 4.22 
    Acquisition, development, and construction   222,039   5,075  9.07  220,795  5,149 9.35  251,426  4,108 6.48 
    Other loans   6,156   88  5.67  6,536  103 6.32  10,566  160 6.01 
    Securities   1,619,960   7,916  1.94  1,642,057  7,914 1.93  1,666,398  7,374 1.76 
    Other short-term investments   498,612   6,930  5.51  468,233  5,867 5.03  182,921  847 1.84 
    Total interest-earning assets   12,984,061   157,841  4.82%   12,888,522  152,091 4.73%   11,782,361  114,527 3.86%
    Non-interest-earning assets   775,432         769,546        768,265       
    Total assets $ 13,759,493        $13,658,068       $12,550,626       
                              
    Liabilities and Stockholders' Equity:                            
    Interest-bearing liabilities:                           
    Interest-bearing checking (2) $ 786,892 $ 2,896  1.46%  $952,424 $3,081 1.30%  $833,386 $970 0.46%
    Money market   2,975,267   24,275  3.24  2,713,816  18,284 2.70  2,651,459  2,046 0.31 
    Savings (2)   2,342,424   20,316  3.44  2,279,670  17,376 3.06  2,243,887  4,951 0.88 
    Certificates of deposit   1,494,491   15,020  3.99  1,546,257  13,875 3.60  988,827  2,187 0.88 
    Total interest-bearing deposits   7,599,074   62,507  3.26  7,492,167  52,616 2.82  6,717,559  10,154 0.60 
    FHLBNY advances   1,250,717   14,370  4.56  1,327,121  15,206 4.60  166,739  430 1.02 
    Subordinated debt, net   200,232   2,553  5.06  200,254  2,553 5.11  200,320  2,553 5.06 
    Other short-term borrowings   120   2  6.61  814  — —  75,975  500 2.61 
    Total borrowings   1,451,069   16,925  4.63  1,528,189  17,759 4.66  443,034  3,483 3.12 
    Derivative cash collateral   156,795   1,930  4.88  120,542  1,497 4.98  111,325  452 1.61 
    Total interest-bearing liabilities   9,206,938   81,362  3.51%   9,140,898  71,872 3.15%   7,271,918  14,089 0.77%
    Non-interest-bearing checking (2)   3,065,186         3,043,899         3,894,093        
    Other non-interest-bearing liabilities   265,559         254,826         219,883        
    Total liabilities   12,537,683         12,439,623         11,385,894        
    Stockholders' equity   1,221,810         1,218,445         1,164,732        
    Total liabilities and stockholders' equity $ 13,759,493        $13,658,068        $12,550,626        
    Net interest income     $ 76,479        $80,219        $100,438    
    Net interest rate spread          1.31%          1.58%          3.09%
    Net interest margin          2.34%          2.50%          3.38%
    Deposits (including non-interest-bearing checking accounts) (2) $ 10,664,260 $ 62,507  2.33%  $10,536,066 $52,616 2.00%  $10,611,652 $10,154 0.38%


    (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 SUBSIDIARIES
    UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
    (Dollars in thousands)

              
         At or For the Three Months Ended
      September 30, June 30, September 30,
    Asset Quality Detail 2023 2023 2022
    Non-performing loans ("NPLs")          
    Business loans (1) $ 19,555  $23,470  $34,706 
    One-to-four family residential, including condominium and cooperative apartment   2,874   3,305   3,219 
    Multifamily residential and residential mixed-use   —   —   — 
    Non-owner-occupied commercial real estate   15   15   2,499 
    Acquisition, development, and construction   657   657   657 
    Other loans   219   220   — 
    Total Non-accrual loans $ 23,320  $27,667  $41,081 
    Total Non-performing assets ("NPAs") $ 23,320  $27,667  $41,081 
              
    Loans 90 days delinquent and accruing ("90+ Delinquent")          
    Business loans $ —  $ —  $2,781 
    One-to-four family residential, including condominium and cooperative apartment   —   —   — 
    Multifamily residential and residential mixed-use   —   —   — 
    Non-owner-occupied commercial real estate   —   —   — 
    Acquisition, development, and construction   —   —   — 
    Other loans   —   —   — 
    90+ Delinquent $ —  $—  $2,781 
              
    NPAs and 90+ Delinquent $ 23,320  $27,667  $43,862 
              
    NPAs and 90+ Delinquent / Total assets  0.17%  0.20%  0.34%
    Net charge-offs ("NCOs") $ 4,864  $3,679  $3,932 
    NCOs / Average loans (2)  0.18%  0.14%  0.16%


    (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 SUBSIDIARIES
    NON-GAAP RECONCILIATION
    (Dollars in thousands except per share amounts)

    The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures 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 loss on equity securities, net loss on sale of securities and other assets, severance and loss on extinguishment of debt:  

                     
      Three Months Ended Nine Months Ended 
       September 30, June 30, September 30, September 30, September 30, 
      2023 2023 2022 2023 2022 
    Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders                
    Reported net income available to common stockholders $ 13,163  $25,676  $37,659  $ 74,321  $107,032  
    Adjustments to net income (1):                 
    Loss on equity securities   299   780   —    1,079    —  
    Net loss (gain) on sale of securities and other assets   22   —   (1,397)   1,469   (1,397) 
    Severance   8,562   481   —    9,068   2,193  
    Loss on extinguishment of debt   —   —   —    —   740  
    Income tax effect of adjustments and other tax adjustments   (176)  (373)  440    (985)  145  
    Adjusted net income available to common stockholders (non-GAAP) $ 21,870  $26,564  $36,702  $ 84,952  $108,713  
                     
    Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)                
    Adjusted EPS (Diluted) $ 0.56  $0.68  $0.95  $ 2.19  $2.78  
    Adjusted return on average assets   0.69%  0.83%  1.23%   0.88%  1.24% 
    Adjusted return on average equity   7.76   9.32   13.23    9.95   13.02  
    Adjusted return on average tangible common equity   9.38   11.42   16.72    12.25   16.45  
    Adjusted non-interest expense to average assets   1.48   1.51   1.53    1.46   1.58  
    Adjusted efficiency ratio   59.7   56.2   44.2    54.7   46.9  

    (1)    Adjustments to net income are taxed at the Company's statutory tax rate of approximately 30% unless otherwise noted.

    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, 
      2023 2023 2022 2023 2022 
    Operating expense as a % of average assets - as reported  1.73%  1.53% 1.54% 1.56%  1.63% 
    Loss on extinguishment of debt —  —  —  —  (0.01) 
    Severance (0.25) (0.01) —  (0.09) (0.02) 
    Amortization of other intangible assets —  (0.01) (0.01) (0.01) (0.02) 
    Adjusted operating expense as a % of average assets (non-GAAP) 1.48%  1.51% 1.53% 1.46% 1.58% 

    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, 
      2023 2023 2022 2023 2022 
    Efficiency ratio - as reported (non-GAAP) (1)    70.5%  57.6%  44.0%   59.0%  48.1%  
    Non-interest expense - as reported $ 59,523  $52,186  $48,302  $ 159,184  $150,028  
    Severance   (8,562)  (481)  —    (9,068)  (2,193) 
    Loss on extinguishment of debt   —   —   —    —   (740) 
    Amortization of other intangible assets   (349)  (349)  (431)   (1,075)  (1,447) 
    Adjusted non-interest expense (non-GAAP) $ 50,612  $51,356  $47,871  $ 149,041  $145,648  
    Net interest income - as reported $ 76,479  $80,219  $100,438  $ 242,450  $283,059  
    Non-interest income - as reported $ 7,928  $10,405  $9,362  $ 27,334  $28,689  
    Loss on equity securities   299   780   —    1,079   —  
    Net loss (gain) on sale of securities and other assets   22   —   (1,397)   1,469   (1,397) 
    Loss on termination of derivatives   —   —   —    —   —  
    Adjusted non-interest income (non-GAAP) $ 8,249  $11,185  $7,965  $ 29,882  $27,292  
    Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 84,728  $91,404  $108,403  $ 272,332  $310,351  
    Adjusted efficiency ratio (non-GAAP) (2)    59.7%   56.2%  44.2%   54.7%  46.9% 

    (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, 
      2023 2023 2022 
    Reconciliation of Tangible Assets:          
    Total assets $ 13,651,405  $13,802,862  $12,885,903  
    Goodwill   (155,797)  (155,797)  (155,797) 
    Other intangible assets   (5,409)  (5,758)  (6,915) 
    Tangible assets (non-GAAP) $ 13,490,199  $13,641,307  $12,723,191  
               
    Reconciliation of Tangible Common Equity - Consolidated:          
    Total stockholders' equity $ 1,204,344  $1,202,503  $1,140,791  
    Goodwill   (155,797)  (155,797)  (155,797) 
    Other intangible assets   (5,409)  (5,758)  (6,915) 
    Tangible equity (non-GAAP)   1,043,138   1,040,948   978,079  
    Preferred stock, net   (116,569)  (116,569)  (116,569) 
    Tangible common equity (non-GAAP) $ 926,569  $924,379  $861,510  
               
    Tangible common equity (non-GAAP) $ 926,569  $924,379  $861,510  
    AOCI, net of deferred taxes   106,913   104,385   93,036  
    Tangible common equity excluding AOCI (non-GAAP) $ 1,033,482  $1,028,764  $954,546  
               
    Tangible equity (non-GAAP) $ 1,043,138  $1,040,948  $978,079  
    AOCI, net of deferred taxes   106,913   104,385   93,036  
    Tangible equity excluding AOCI (non-GAAP) $ 1,150,051  $1,145,333  $1,071,115  
               
    Common shares outstanding   38,811   38,803   38,572  
               
    Tangible common equity to tangible assets (non-GAAP)   6.87%   6.78 %   6.77%  
    Tangible common equity excluding AOCI to tangible assets (non-GAAP)   7.66   7.54   7.45  
    Tangible equity to tangible assets (non-GAAP)   7.73   7.63   7.69  
    Tangible equity excluding AOCI to tangible assets (non-GAAP)   8.53   8.40   8.36  
               
    Book value per share $28.03  $27.99  $26.55  
    Tangible common book value per share (non-GAAP)  23.87   23.82   22.34  
    Tangible common book value per share excluding AOCI (non-GAAP)  26.63   26.51   24.75  



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