Press Release

Dime Community Bancshares, Inc. Increases Quarterly Earnings Per Share by 30% on a Year-Over-Year Basis

Company Release - 4/26/2018 4:15 PM ET

BROOKLYN, N.Y., April 26, 2018 (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 of $14.7 million for the quarter ended March 31, 2018, or $0.39 per diluted common share, compared with net income of $15.4 million for the quarter ended December 31, 2017, or $0.41 per diluted common share, and net income of $11.2 million for the quarter ended March 31, 2017, or $0.30 per diluted common share.

Highlights for the first quarter of 2018 included:

  • New loan originations for the first quarter were at generally higher rates than the overall loan portfolio; the weighted average rate (“WAR”) on new real estate originations was 4.17% and the WAR on new C&I originations was 4.81%, compared to the total loan portfolio WAR of 3.61% for the three months ended March 31, 2018;
  • Continued the build out of the Business Banking division via the hire of a new team that will operate from the Company’s Borough Park branch location and the creation of an additional team from existing personnel. Pro forma for these two new teams, the Company’s Business Banking division has six teams in total;
  • Consolidated  Company CRE concentration ratio declined to 748.6% at March 31, 2018, versus 906.5% at March 31, 2017;
  • Total non-interest income was $3.2 million for the first quarter of 2018, driven by a $1.4 million gain from the sale of a portion of the securities the Company had previously retained from its Freddie Mac sponsored “Q-deal” securitization;
  • Increase in the Company’s on-balance sheet liquidity levels, as average mortgage-backed securities and other short-term investments, as a percentage of average interest-earning assets increased to 9.1% for the quarter versus 4.0% for the prior quarter;
  • Loan-to-deposit ratio declined to 124% at March 31, 2018, versus 128% at March 31, 2017; and
  • Reported book value per share and tangible book value (common equity less goodwill, divided by number of shares outstanding) per share grew to $16.22 and $14.73, respectively, at March 31, 2018.

Kenneth J. Mahon, President and Chief Executive Officer of the Company, stated, “We are on track to achieve our full year 2018 portfolio growth targets for the Business Banking division, as we have a strong pipeline in place. The Business Banking division ended the first quarter with approximately $61 million of low-cost relationship-based deposits at an average cost of 16 basis points. Across the organization, we are highly focused on improving the composition of our deposit base.”

Mr. Mahon concluded, “Our employees are hard at work, ensuring our core systems conversion, which is scheduled to be completed in June, proceeds smoothly. The move to a new core platform will enable us to more effectively service our customers and is consistent with our stated goal of transitioning into a successful community commercial bank.”

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income in the first quarter of 2018 was $38.0 million, a decrease of $0.7 million (-1.9%) from the fourth quarter of 2017 and an increase of $0.5 million (+1.4%) over the first quarter of 2017. Net interest margin (“NIM”) was 2.47% during the first quarter of 2018, compared to 2.50% in the fourth quarter of 2017, and 2.57% during the first quarter of 2017.  The linked quarter decrease in NIM was due to an increase in the level of on balance sheet liquidity levels and a 11 basis point increase in the average cost of funds, partially offset by a 13 basis point increase in the average yield on total real estate loans.

Average interest-earning assets were $6.15 billion for the first quarter of 2018, a 3.8% (annualized) decrease from $6.20 billion for the fourth quarter of 2017, and a 5.5% increase from $5.82 billion for the first quarter of 2017. The linked quarter decline in average interest-earnings assets was primarily driven by a decline in real estate loans, as the volume of loan payoffs exceeded new originations.

Average mortgage backed-securities and other short-term investments were $561.2 million for the first quarter of 2018, a 508.6% (annualized) increase from $247.1 million for the fourth quarter of 2017, and a 382.3% increase from $116.4 million for the first quarter of 2017. “In keeping with our strategic asset diversification objectives, and after reviewing the results of our numerous liquidity stress testing scenarios, we have significantly increased our on-balance sheet liquidity levels over the past few quarters,” stated Mr. Mahon.

For the first quarter of 2018, the average yield on interest-earning assets was 3.58%, an increase of 6 basis points compared with the fourth quarter of 2017, and an increase of 5 basis points compared to the first quarter of 2017.  The average cost of funds (which includes Federal Home Loan Bank advances) was 1.30% for the first quarter of 2018, an increase of 11 basis points versus the fourth quarter of 2017, and an increase of 17 basis points versus the first quarter of 2017.

Loans

The real estate loan portfolio declined by $103.5 million (7.6% annualized) during the first quarter of 2018 due primarily to an increase in the level of loan payoffs versus the fourth quarter of 2017. Real estate loan originations were $75.0 million during the first quarter of 2018, at a weighted average interest rate of 4.17%, compared to $70.6 million of originations for the prior quarter, at a weighted average interest rate of 4.36%. Real estate loan amortization and satisfactions totaled $183.1 million, or 13.6% (annualized) of the portfolio balance, at an average rate of 3.65%. The annualized loan payoff rate of 13.6% for the first quarter of 2018 was higher than both the fourth quarter of 2017 (10.2%) and the first quarter of 2017 (10.8%). Average real estate loans were $5.44 billion in the first quarter of 2018, a decrease of $388.4 million (26.7% annualized) from the fourth quarter of 2017, and a decrease of $252.2 million (4.4%) from the first quarter of 2017.

Included in total real estate loan originations during the first quarter of 2018 were $21.2 million of originations from the Business Banking division at a weighted average rate of 4.21%, compared to $24.1 million of originations at a weighted average rate of 4.78% during the fourth quarter of 2017.

Commercial and industrial (“C&I”) loan originations were $25.3 million during the first quarter of 2018, at a weighted average rate of 4.81%, compared to $27.5 million at a weighted average rate of 4.94% during the fourth quarter of 2017. Total C&I loan balances were $145.8 million at the end of the first quarter of 2018, compared to $136.7 million at the end of the fourth quarter of 2017.

Deposits and Borrowed Funds

The Company continues to focus on growing relationship-based deposits sourced from its retail branches and Business Banking division. On a year-over-year basis, the sum of average non-interest-bearing checking account balances and average interest-bearing checking account balances increased by 8.2% to $435.1 million for the first quarter of 2018.

The average cost of total deposits increased 9 basis points on a linked quarter basis to 1.00% as the bank increased rates on selective money market and certificates of deposit products in light of increased competition. Overall, total deposits increased by $27.0 million during the first quarter of 2018 from the linked quarter. Mr. Mahon commented, “We grew deposits in the first quarter despite approximately $83.0 million of net outflows from our DimeDirect internet channel, where our posted rate continues to lag our online competitors. Our funding focus remains on generating core business deposits, and as such we have maintained a less aggressive online deposit pricing posture. We intend to manage the balance sheet and the loan-to-deposit ratio with the goal of keeping deposit betas as low as possible.”

The loan-to-deposit ratio was 124.3% at March 31, 2018, compared to 127.2% at December 31, 2017 and 127.6% at March 31, 2017.

Reflecting deposit inflows and lower total assets, total borrowings were decreased by $159.6 million during the first quarter of 2018 as compared to the fourth quarter of 2017.  To better position the Company for rising interest rates, the Company reduced its level of short-term borrowings in the first quarter of 2018 and entered into $170.0 million of long-term borrowings (with terms of 2 years and more), at an average rate of 2.57%. This compares to $110.0 million of long-term borrowings at an average rate of 2.22% for the fourth quarter of 2017.

Non-Interest Income

Non-interest income was $3.2 million during the first quarter of 2018, which was $10.5 million lower compared to the fourth quarter of 2017, and an increase of $1.5 million compared to the first quarter of 2017.  The linked quarter decrease in non-interest income was primarily the result of gains of $10.4 million from the sale of real estate property and $1.5 million from the sale of loans in the fourth quarter of 2017, offset by $1.4 million of gains during the first quarter of 2018 from the sale of securities that the bank had retained from its Freddie Mac sponsored Q-deal securitization.

Non-Interest Expense

Total non-interest expense was $21.7 million during the first quarter of 2018, $22.6 million during the fourth quarter of 2017, and $20.8 million during the first quarter of 2017. The year-over-year increase in non-interest expense was primarily the result of a $1.3 million increase in salaries and employee benefits.

The ratio of non-interest expense to average assets was 1.36% during the first quarter of 2018, lower than both 1.41% during the fourth quarter of 2017, and 1.38% during the first quarter of 2017.

The efficiency ratio was 54.6% during the first quarter of 2018, lower than the 55.63% during the fourth quarter of 2017, and higher than the 53.0% during the first quarter of 2017.

Income Tax Expense

The reported effective tax rate for the first quarter of 2018 declined to 23.7%. The lower tax rate was the result of recently enacted corporate tax reform.

Credit Quality

Non-performing loans were $1.7 million, or 0.03% of total loans, at March 31, 2018, an increase from $0.5 million, or 0.01% of total loans, at December 31, 2017.  The allowance for loan losses was 0.39% of total loans at March 31, 2018, versus 0.38% at December 31, 2017. At March 31, 2018, non-performing assets represented 2.5% of the sum of the bank’s tangible common equity plus the allowance for loan losses and reserve for contingent liabilities (this non-Generally Accepted Accounting Principle (“GAAP”) statistic is otherwise known as the "Texas Ratio") (see “Problem Assets as a Percentage of Tangible Capital and Reserves” table and “Non-GAAP Reconciliation” table at the end of this news release), which is lower than the ratio of 3.4% at December 31, 2017.  A loan loss provision of $0.2 million was recorded during the first quarter of 2018, compared to a credit for loan losses of $1.0 million during the fourth quarter of 2017, and a provision for loan losses of $0.5 million during the first quarter of 2017.

Capital Management

The Company’s consolidated Tier 1 capital to average assets (“leverage ratio”), which was 8.79% at March 31, 2018, was in excess of all applicable regulatory requirements.

The bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements inclusive of conservation buffer amounts.  At March 31, 2018, the bank’s leverage ratio was 9.59%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 12.97% and 13.43%, respectively.

Diluted earnings per common share of $0.39 exceeded the quarterly $0.14 cash dividend per share by 179% during the first quarter of 2018, equating to a 35.9% dividend payout ratio.

Book value per share was $16.22 and tangible book value (common equity less goodwill divided by number of shares outstanding) per share was $14.73 at March 31, 2018.

Earnings Call Information

The Company will conduct a conference call at 5:30 p.m. (ET) on Thursday, April 26, 2018, during which President and Chief Executive Officer, Kenneth J. Mahon, will discuss the Company’s first quarter financial performance.  There will be a question and answer period after the CEO remarks. Dial-in information for the live call is 1-888-317-6016. Upon dialing in, request to be joined into Dime Community Bancshares, Inc. call with the conference operator.

The conference call will be simultaneously webcast (listen only), and archived for a period of one year, at https://services.choruscall.com/links/dcom180426.html. Dial-in information for the replay is 1-877-344-7529 using access code #10119608. Replay will be available April 26, 2018 (7:30 p.m.) through May 3, 2018 (11:59 p.m.)

ABOUT DIME COMMUNITY BANCSHARES, INC.
The Company had $6.33 billion in consolidated assets as of March 31, 2018. The bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-nine branches located throughout Brooklyn, Queens, the Bronx, Nassau County and Suffolk County, New York. More information on the Company and the bank can be found on Dime's website at www.dime.com.

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

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and/or the Bank; unanticipated or significant increases in loan losses; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; 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.

Contact: Avinash Reddy
Senior Vice President – Corporate Development and Treasurer
718-782-6200 extension 5909

 

 
DIME COMMUNITY BANCSHARES,  INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands except share amounts)
    
  March 31,   December 31,
  2018   2017
ASSETS:   
Cash and due from banks$188,826  $169,455 
Mortgage-backed securities available for sale 354,410   351,384 
Marketable equity securities, at fair value 6,433   - 
Investment securities available for sale -   4,006 
Trading securities -   2,715 
Real Estate Loans:   
One-to-four family and cooperative/condominium apartment 62,596   63,095 
Multifamily residential and residential mixed use (1)(2) 4,280,951   4,381,180 
Commercial real estate 1,007,595   1,010,603 
Acquisition, development, and construction ("ADC") 9,413   9,189 
Total real estate loans 5,360,555   5,464,067 
Commercial and industrial ("C&I") 145,818   136,671 
Other loans 1,053   1,379 
Allowance for loan losses (21,204)  (21,033)
Total loans, net 5,486,222   5,581,084 
Premises and fixed assets, net 25,276   24,326 
Federal Home Loan Bank of New York capital stock 52,514   59,696 
Bank Owned Life Insurance ("BOLI") 109,257   108,545 
Goodwill 55,638   55,638 
Other assets 47,341   46,611 
TOTAL ASSETS$6,325,917  $6,403,460 
LIABILITIES AND STOCKHOLDERS' EQUITY:   
Deposits:   
Non-interest bearing checking$325,071  $307,746 
Interest-bearing checking 124,527   124,283 
Savings 357,152   362,092 
Money Market 2,399,200   2,517,439 
Sub-total 3,205,950   3,311,560 
Certificates of deposit 1,224,491   1,091,887 
Total Due to Depositors 4,430,441   4,403,447 
Escrow and other deposits 131,953   82,168 
Federal Home Loan Bank of New York advances 1,010,400   1,170,000 
Subordinated Notes Payable, net 113,649   113,612 
Other liabilities 31,517   35,666 
TOTAL LIABILITIES 5,717,960   5,804,893 
STOCKHOLDERS' EQUITY:   
Common stock ($0.01 par, 125,000,000 shares authorized, 53,653,224 shares and 53,624,453 shares   
issued at March 31, 2018 and December 31, 2017, respectively, and 37,484,270 shares and 37,419,070   
shares outstanding at March 31, 2018 and December 31, 2017, respectively) 537   536 
Additional paid-in capital 277,070   276,730 
Retained earnings 544,762   535,130 
Accumulated other comprehensive loss, net of deferred taxes (4,037)  (3,641)
Unearned Restricted Stock Award common stock (3,855)  (2,894)
Common stock held by the Benefit Maintenance Plan (2,196)  (2,736)
Treasury stock (16,168,954 shares and 16,205,383 shares at March 31, 2018 December 31, 2017, respectively) (204,324)  (204,558)
TOTAL STOCKHOLDERS' EQUITY 607,957   598,567 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$6,325,917  $6,403,460 
    
(1) Includes loans underlying cooperatives.   
(2) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant  component of the total loan portfolio.
   


 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
  (Dollars in thousands except share and per share amounts)
      
 For the Three Months  Ended
 March 31, December 31, March 31,
 2018 2017 2017
Interest income:     
Loans secured by real estate$49,575  $51,254  $50,475
Commercial and industrial ("C&I") 1,656   1,514   41
Other loans 19   20   18
Mortgage-backed securities 2,257   487   14
Investment securities 15   115   190
Other short-term investments 1,511   1,204   717
Total interest  income 55,033   54,594   51,455
Interest expense:     
Deposits and escrow 10,751   9,967   9,507
Borrowed funds 6,267   5,895   4,461
Total interest expense 17,018   15,862   13,968
Net interest income 38,015   38,732   37,487
Provision (Credit) for loan losses   193   (1,000)  450
Net interest income after  provision     
(credit) for loan losses 37,822   39,732   37,037
      
Non-interest income:     
Service charges and other fees 911   1,167   794
Mortgage banking income, net 111   51   16
Gain (loss) on equity and trading securities (4)  (29)  75
Gain on sale of securities and other assets 1,370   -   -
Gain on sale of loans 90   1,475   -
Gain on the sale of premises held for sale -   10,412   -
Income from BOLI 712   563   545
Other 54   67   348
Total non-interest income 3,244   13,706   1,778
Non-interest expense:     
Salaries and employee benefits 11,177   9,699   9,926
Stock benefit plan compensation expense 388   417   394
Occupancy and equipment 3,872   3,581   3,628
Data processing costs 1,754   1,778   1,607
Marketing 1,047   1,375   1,466
Federal deposit insurance premiums 665   724   655
Other 2,831   4,999   3,093
Total non-interest expense 21,734   22,573   20,769
      
Income before taxes 19,332   30,865   18,046
Income tax expense 4,587   15,442   6,889
      
Net Income$14,745  $15,423  $11,157
      
Earnings per Share ("EPS"):      
Basic $ 0.39   $ 0.41   $ 0.30
Diluted $ 0.39   $ 0.41   $ 0.30
      
Average common shares outstanding     
for Diluted EPS   37,464,725      37,432,283      37,549,576
      


 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
 UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share amounts)
      
 At  or For the Three Months  Ended
 March 31, December 31, March 31,
 2018 2017 2017
Per Share Data:     
Reported EPS (Diluted)$0.39  $0.41  $0.30 
Cash dividends paid per share 0.14   0.14   0.14 
Book value per share 16.22   16.00   15.26 
Tangible book value per share (1) 14.73   14.51   13.78 
Dividend payout ratio 35.90%  34.15%  46.67%
      
Performance Ratios (Based upon Reported Net Income):     
Return on average assets 0.93%  0.96%  0.74%
Return on average common equity 9.77%  10.41%  7.83%
Return on average tangible common equity (1) 10.76%  11.49%  8.68%
Net interest spread 2.28%  2.33%  2.40%
Net interest margin 2.47%  2.50%  2.57%
Average interest-earning assets to average interest-bearing liabilities 115.84%  117.07%  116.36%
Non-interest expense to average assets 1.36%  1.41%  1.38%
Efficiency ratio 54.60%  55.63%  53.00%
Loan-to-deposit ratio at end of period 124.31%  127.22%  127.59%
Effective tax rate 23.73%  50.03%  38.17%
      
Average Balance Data:     
Average assets$6,369,310  $6,400,719  $6,026,914 
Average interest-earning assets 6,145,013   6,203,511   5,824,309 
Average loans 5,577,309   5,949,955   5,691,098 
Average deposits 4,378,117   4,351,863   4,485,510 
Average common equity 603,555   592,762   569,723 
Average tangible common equity (1) 547,917   537,124   514,085 
      
Asset Quality Summary:     
Non-performing loans (excluding loans held for sale)$1,719  $533  $3,801 
Non-performing assets (2) 1,719   533   5,080 
Net charge-offs (recoveries) 23   (26)  32 
Non-performing loans/ Total loans 0.03%  0.01%  0.07%
Non-performing assets/ Total assets 0.03%  0.01%  0.08%
Allowance for loan loss/ Total loans 0.39%  0.38%  0.36%
Allowance for loan loss/ Non-performing loans 1233.51%  3946.15%  551.28%
Loans delinquent 30 to 89 days at period end$2,947  $37  $173 
      
Capital Ratios - Consolidated:     
Tangible common equity to tangible assets (1) 8.81%  8.55%  8.57%
Tier 1 common equity ratio 11.87   11.42   11.08 
Tier 1 risk-based capital ratio 11.87   11.42   12.53 
Total risk-based capital ratio 14.79   14.27   12.98 
Tier 1 leverage ratio 8.79   8.61   9.91 
      
Capital Ratios - Bank Only:     
Tier 1 common equity ratio 12.97%  12.38%  11.25%
Tier 1 risk-based capital ratio 12.97   12.38   11.25 
Total risk-based capital ratio 13.43   12.83   11.70 
Tier 1 leverage ratio 9.59   9.32   8.88 
      
(1)  See "Non-GAAP Reconciliation" table for reconciliation of tangible common equity and tangible assets.     
(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, if applicable.
 


 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars in thousands)
            
 For the Three Months Ended
 March 31, 2018 December 31, 2017 March 31, 2017
   Average   Average   Average
 Average Yield/ Average Yield/ Average Yield/
 BalanceInterestCost BalanceInterestCost BalanceInterestCost
Assets:           
Interest-earning assets:           
Real estate loans$5,435,400$49,575 3.65% $5,823,794$51,254 3.52% $5,687,557$50,475 3.55%
Commercial and industrial loans 140,720 1,656 4.71   125,095 1,514 4.84   2,474 41 6.63 
Other loans 1,189 19 6.39   1,066 20 7.50   1,067 18 6.75 
Mortgage-backed securities 351,196 2,257 2.57   84,942 487 2.29   3,489 14 1.61 
Investment securities 6,492 15 0.92   6,500 115 7.08   16,841 190 4.51 
Other short-term investments 210,016 1,511 2.88   162,114 1,204 2.97   112,881 717 2.54 
Total interest-earning assets 6,145,013 55,033 3.58%  6,203,511 54,594 3.52%  5,824,309 51,455 3.53%
Non-interest-earning assets 224,297    197,208    202,605  
Total assets$6,369,310   $6,400,719   $6,026,914  
            
Liabilities and Stockholders' Equity:           
Interest-bearing liabilities:           
Interest-bearing checking accounts$124,440$54 0.18% $117,468$56 0.19% $110,797$58 0.21%
Money market accounts 2,432,242 6,318 1.05   2,491,423 5,986 0.95   2,693,219 5,780 0.87 
Savings accounts 359,638 59 0.07   358,859 51 0.06   368,087 45 0.05 
Certificates of deposit 1,151,146 4,320 1.52   1,077,376 3,874 1.43   1,022,155 3,624 1.44 
Total interest-bearing deposits 4,067,466 10,751 1.07   4,045,126 9,967 0.98   4,194,258 9,507 0.92 
Borrowed Funds 1,237,094 6,267 2.05   1,253,860 5,895 1.87   811,288 4,461 2.23 
Total interest-bearing liabilities 5,304,560 17,018 1.30%  5,298,986 15,862 1.19%  5,005,546 13,968 1.13%
Non-interest-bearing checking accounts 310,651    306,737    291,252  
Other non-interest-bearing liabilities 150,544    202,234    160,393  
Total liabilities 5,765,755    5,807,957    5,457,191  
Stockholders' equity 603,555    592,762    569,723  
Total liabilities and stockholders' equity$6,369,310   $6,400,719   $6,026,914  
Net interest income $38,015    $38,732    $37,487  
Net interest spread  2.28%   2.33%   2.40%
Net interest-earning assets$840,453   $904,525   $818,763  
Net interest margin  2.47%   2.50%   2.57%
Ratio of interest-earning assets to interest-bearing liabilities  115.84%    117.07%    116.36% 
            
Deposits (including non-interest bearing checking accounts)$4,378,117$10,751 1.00% $4,351,863$9,967 0.91% $4,485,510$9,507 0.86%
            


 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF LOAN COMPOSITION AND WEIGHTED AVERAGE RATES ("WAR") (1)
(Dollars in thousands)
  
         
 At March 31, 2018 At December 31, 2017 At March 31, 2017
 BalanceWAR BalanceWAR BalanceWAR
Loan balances at period end:        
One-to-four family residential, including condominium and cooperative apartment$62,5964.36% $63,0954.33% $75,1314.30%
Multifamily residential and residential mixed use (2)(3) 4,280,9513.42   4,381,1803.40   4,696,1983.37 
Commercial and commercial mixed use real estate 1,007,5953.95   1,010,6033.95   949,6583.93 
Acquisition, development, and construction ("ADC") 9,4135.84   9,1895.59   -- 
Total real estate loans 5,360,5553.53   5,464,0673.51   5,720,9873.47 
         
Commercial and industrial ("C&I") 145,8184.99% $136,6714.82% $30,1894.21%
         
(1) Weighted average rate is calculated by aggregating interest based on the current loan rate from each loan in the category, divided by the total amount of loans in the category.
(2) Includes loans underlying cooperatives.
(3) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant  component of the total loan portfolio.
 


 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")
  (Dollars in thousands)
  
  
 At March 31,  At December 31, At March 31,
Non-Performing Loans2018 2017 2017
One-to-four family residential, including condominium and cooperative apartment$449  $436  $678 
Multifamily residential and residential mixed use (1)(2) -   -   2,623 
Commercial mixed use real estate (2) 90   93   495 
C&I 1,179   -   - 
Other 1   4   5 
Total Non-Performing Loans (3)$ 1,719   $ 533   $ 3,801  
Other Non-Performing Assets     
Pooled bank trust preferred securities (4) -   -   1,279 
Total Non-Performing Assets$ 1,719   $ 533   $ 5,080  
      
Performing Loans     
One- to four-family and cooperative/condominium apartment 20   22   402 
Multifamily residential and mixed use residential real estate (1)(2) 604   619   649 
Mixed use commercial real estate (2) 4,152   4,174   4,240 
Commercial real estate 3,279   3,296   3,347 
Total Performing TDRs$ 8,055   $ 8,111   $ 8,638  
      
(1) Includes loans underlying cooperatives.     
(2) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant  component of the total loan portfolio.
(3) There were no non-accruing TDRs for the periods indicated.     
(4) As of the date presented, 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 (TEXAS RATIO)
  (Dollars in thousands)
      
 At March 31,  At December 31, At March 31,
 2018 2017 2017
Total Non-Performing Assets$1,719  $533  $5,080 
Loans 90 days or more past due on accrual status (5) 13,816   19,935   719 
TOTAL PROBLEM ASSETS$15,535  $20,468  $5,799 
      
Tangible common equity - Bank only (6)$601,492  $587,622  $529,532 
Allowance for loan losses and reserves for contingent liabilities 21,229   21,058   20,979 
TANGIBLE COMMON EQUITY PLUS RESERVES$622,721  $608,680  $550,511 
      
TEXAS RATIO (PROBLEM ASSETS AS A PERCENTAGE OF     
TANGIBLE COMMON EQUITY AND RESERVES) 2.5%  3.4%  1.1%
      
(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.
(6)  See "Non-GAAP Reconciliation" table for reconciliation of tangible common equity and tangible assets.     
      


 
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION
(Dollars in thousands except per share amounts)
      
 At or For the Three Months  Ended
 March 31,  December 31,  March 31,
 2018 2017 2017
Reconciliation of Reported and Adjusted ("non-GAAP") Net Income:     
Reported net income$14,745  $15,423  $11,157 
Adjustments to Net Income (1):     
Less: Gain on sale of securities (930)  -   - 
Less: After tax gain on the sale of real estate -   (5,724)  - 
Tax adjustment (92)  3,135   - 
Adjusted ("non-GAAP") net income$13,723  $12,834  $11,157 
      
Adjusted Ratios (Based upon "non-GAAP Net Income" as calculated above):     
Adjusted EPS (Diluted)$0.36  $0.34  $0.30 
Adjusted return on average assets 0.86%  0.80%  0.74%
Adjusted return on average common equity 9.09%  8.66%  7.83%
Adjusted return on average tangible common equity 10.02%  9.56%  8.68%
      
Reconciliation of Tangible Assets:     
Total assets$6,325,917  $6,403,460  $6,095,370 
Less:     
Goodwill 55,638   55,638   55,638 
Tangible assets 6,270,279   6,347,822   6,039,732 
      
Reconciliation of Tangible Common Equity - Consolidated:     
Total common equity$607,957  $598,567  $573,225 
Less:     
Goodwill 55,638   55,638   55,638 
Tangible common equity 552,319   542,929   517,587 
      
Reconciliation of Tangible Common Equity - Bank only:     
Total common equity$657,130  $643,260  $579,644 
Less:     
Goodwill 55,638   55,638   55,638 
Tangible common equity 601,492   587,622   524,006 
      
(1)  Adjustments to net income are taxed at the company's statutory tax rate of approximately 32% for 2018 and 45% for 2017, unless otherwise noted.
      

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Source: Dime Community Bancshares, Inc.