Dime Community Bancshares, Inc. Reports First Quarter 2024 Results With Earnings Per Share Increasing By 11% Versus the Prior Quarter

April 23, 2024
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Core Deposit Growth of 19% Annualized Versus Year End

Dime Has Been Executing on Growth Plan And Has Recruited Numerous
Talented Groups of Bankers to Position Itself for Future Growth

Capital Ratios Continue to Increase and Asset Quality Remains Stable

HAUPPAUGE, N.Y., April 23, 2024 (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 $15.9 million for the quarter ended March 31, 2024, or $0.41 per diluted common share, compared to $14.5 million, or $0.37 per diluted common share, for the quarter ended December 31, 2023, and $35.5 million, or $0.92 per diluted common share for the quarter ended March 31, 2023.

Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Dime began 2024 by executing on our growth plan, which prioritizes core deposit growth and diversifying our balance sheet. On a year-to-date basis, we have recruited 34 talented revenue-producing bankers, across our Private and Commercial Bank and C&I lending operations, spread across 8 different Groups. We expect these bankers to contribute meaningfully to our growth in the years ahead. Looking back, our recruiting efforts last year are beginning to pay dividends, with the deposit-gathering Groups hired in 2023 approaching $600 million in deposits; these achievements helped drive the 19% annualized growth in core deposits in the first quarter of 2024. The significant momentum on the deposit front allowed us to reduce our FHLB borrowing position by 41% versus year-end levels.”

Commenting on the first quarter results, Mr. Lubow said “Our results were characterized by stable asset quality, increasing capital ratios, a reduction in our wholesale funding, and prudent expense management. Importantly, the Net Interest Margin for the month of March was 2.23%, which was above the reported first quarter Net Interest Margin of 2.21%. This portends well for the quarters ahead in terms of the NIM trajectory. We continue to build our loan pipeline prudently and recently closed our first loan in our new Healthcare vertical; this new vertical provides us an important avenue to diversify our balance sheet over time. The reduction in our loan-to-deposit ratio to 98.8%, driven by strong deposit growth, provides us even more flexibility to take advantage of the current lending opportunities in the marketplace.”

Highlights for the First Quarter of 2024 Included:

  • Core deposits (excluding brokered deposits and time deposits) increased $421 million versus year-end levels;
  • The ratio of average non-interest-bearing deposits to average total deposits for the first quarter was 27%;
  • Non-interest expenses remained well controlled and declined by 3% versus the linked quarter;
  • Credit quality continues to be stable with non-performing assets and loans 90 days past due representing only 0.26% of total assets as of March 31, 2024;
  • Net charge-offs were $739 thousand for the quarter, representing only 0.03% of average loans;
  • Capital ratios continue to build, with the Company’s Tier 1 Risk Based Capital Ratio increasing to 11.11% and the Common Equity Tier 1 Ratio increasing to 10.00% at March 31, 2024; and
  • Announced the addition of a National Deposits Group, 4 Groups in Brooklyn, 1 Group in Nassau County and 1 Group in Westchester County (marking Dime’s extension into this new attractive banking market).

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the first quarter of 2024 was $71.5 million compared to $74.1 million for the fourth quarter of 2023 and $85.8 million for the first quarter of 2023.

The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.

(Dollars in thousands) Q1 2024 Q4 2023 Q1 2023 
Net interest income $ 71,530  $74,121  $85,752  
Purchase accounting amortization (accretion) on loans ("PAA")   (82)  (55)  586  
Adjusted net interest income excluding PAA on loans (non-GAAP) $ 71,448  $74,066  $86,338  
            
Average interest-earning assets $ 13,015,755  $12,828,060  $12,685,235  
            
NIM (1)   2.21 %   2.29 % 2.74 %
Adjusted NIM excluding PAA on loans (non-GAAP) (2)   2.21 %   2.29 % 2.76 %

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


Loan Portfolio

The ending weighted average rate (“WAR”) on the total loan portfolio was 5.34% at March 31, 2024, a 5 basis point increase compared to the ending WAR of 5.29% on the total loan portfolio at December 31, 2023.

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

  March 31, 2024  December 31, 2023  March 31, 2023 
(Dollars in thousands)    Balance    WAR (1)     Balance    WAR (1)     Balance    WAR (1) 
Loans held for investment balances at period end:                  
Business loans (2) $ 2,327,403  6.90% $2,310,379 6.81% $2,255,316 6.41%
One-to-four family residential, including condominium and cooperative apartment   873,671  4.48   889,236 4.47   799,321 4.06 
Multifamily residential and residential mixed-use (3)(4)   3,996,654  4.57   4,017,703 4.53   4,118,439 4.23 
Non-owner-occupied commercial real estate   3,386,333  5.24   3,381,842 5.19   3,330,582 4.85 
Acquisition, development, and construction   175,352  8.40   168,513 8.71   221,015 8.62 
Other loans   5,170  7.10   5,755 6.75   7,172 11.03 
Loans held for investment $ 10,764,583  5.34% $10,773,428 5.29% $10,731,845 4.96%

________________________
(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) Q1 2024 Q4 2023    Q1 2023
Loan originations $ 98.3  $195.9  $351.9 


Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at March 31, 2024 were $10.90 billion, compared to $10.53 billion at December 31, 2023 and $10.57 billion at March 31, 2023. CEO Lubow commented, “Deposit growth accelerated in the first quarter of 2024 as the investments in talent and technology that we made in 2023 began to pay dividends. Hires that we made in the second quarter of 2023 have generated approximately $600 million of core deposits, at a weighted average rate of approximately 2.5%, providing an important proof-of-concept for our growth plan. We expect the new Groups hired in 2024 to benefit from all the operational, process and technology improvements we have made over the course of the past year and they will be significant contributors to the growth of our franchise in the years ahead.”

Total Federal Home Loan Bank advances were $773.0 million at March 31, 2024 compared to $1.31 billion at December 31, 2023 and $1.50 billion at March 31, 2023. Mr. Lubow commented, “Given the strong deposit growth, we proactively reduced our FHLB borrowings in the first quarter. Based on our strong deposit pipelines, we expect to continue paying down wholesale funding and we intend to create a primarily core-deposit funded institution over the course of the next year.”

Non-Interest Income

Non-interest income was $10.5 million during the first quarter of 2024, $8.9 million during the fourth quarter of 2023, and $9.0 million during the first quarter of 2023.

Non-Interest Expense

Total non-interest expense was $52.5 million during the first quarter of 2024, $53.9 million during the fourth quarter of 2023, and $47.5 million during the first quarter of 2023. Excluding the impact of the FDIC special assessment, loss on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $51.7 million during the first quarter of 2024, $52.6 million during the fourth quarter of 2023, and $47.1 million during the first quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The ratio of non-interest expense to average assets was 1.52% during the first quarter of 2024, compared to 1.58% during the linked quarter and 1.41% for the first quarter of 2023. Excluding the impact of the FDIC special assessment, loss on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.50% during the first quarter of 2024, compared to 1.54% during the linked quarter and 1.40% for the first quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 64.0% during the first quarter of 2024, compared to 65.0% during the linked quarter and 50.1% during the first quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, the FDIC special assessment, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 64.7% during the first quarter of 2024, compared to 63.6% during the linked quarter and 48.9% during the first quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Income Tax Expense

The reported effective tax rate for the first quarter of 2024 was 27.1% compared to 35.6% for the fourth quarter of 2023, and 26.8% for the first quarter of 2023.

Credit Quality

Non-performing loans were $34.8 million at March 31, 2024 compared to $29.1 million at December 31, 2023 and $31.5 million at March 31, 2023.

A credit loss provision of $5.2 million was recorded during the first quarter of 2024, compared to a credit loss provision of $3.7 million during the fourth quarter of 2023, and a credit loss recovery of $3.6 million during the first quarter of 2023.

Capital Management

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of March 31, 2024. All risk-based regulatory capital ratios increased in the first quarter of 2024. Mr. Lubow commented, “Over the course of the past year, we have prudently increased our risk-based capital ratios. Our Common Equity Tier 1 Ratio is now at 10% and we are well positioned from a capital perspective to support all of our customers’ needs.”

Dividends per common share were $0.25 during the first quarter of 2024 and the fourth quarter of 2023, respectively.

Book value per common share was $28.84 at March 31, 2024 compared to $28.58 at December 31, 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 $24.72 at March 31, 2024 compared to $24.44 at December 31, 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 9:00 a.m. (ET) on Tuesday, April 23, 2024, during which CEO Lubow will discuss the Company’s first quarter 2024 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/2kw49bi9. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI99c326361aa645968fe05719ed5f55cb. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

A replay of the conference call and webcast will be available on-demand for 12 months.

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 $13.5 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, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; 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)
 
     March 31,     December 31,     March 31, 
  2024  2023  2023 
Assets:           
Cash and due from banks $ 370,852  $457,547  $663,132 
Securities available-for-sale, at fair value   859,216   886,240   926,812 
Securities held-to-maturity   589,331   594,639   605,642 
Loans held for sale   8,973   10,159   2,171 
Loans held for investment, net:         
Business loans (1)   2,327,403   2,310,379   2,255,316 
One-to-four family and cooperative/condominium apartment   873,671   889,236   799,321 
Multifamily residential and residential mixed-use (2)(3)   3,996,654   4,017,703   4,118,439 
Non-owner-occupied commercial real estate   3,386,333   3,381,842   3,330,582 
Acquisition, development and construction   175,352   168,513   221,015 
Other loans   5,170   5,755   7,172 
Allowance for credit losses   (76,068)  (71,743)  (78,335)
Total loans held for investment, net   10,688,515   10,701,685   10,653,510 
Premises and fixed assets, net   44,501   44,868   45,863 
Premises held for sale   —   905   — 
Restricted stock   74,346   98,750   105,258 
Bank Owned Life Insurance ("BOLI")   352,277   349,816   335,455 
Goodwill   155,797   155,797   155,797 
Other intangible assets   4,753   5,059   6,107 
Operating lease assets   51,988   52,729   57,204 
Derivative assets   135,162   122,132   130,294 
Accrued interest receivable   55,369   55,666   49,926 
Other assets   110,012   100,013   104,553 
Total assets $ 13,501,092  $13,636,005  $13,841,724 
Liabilities:          
Non-interest-bearing checking (excluding mortgage escrow deposits) $ 2,819,481  $2,884,378  $3,012,378 
Interest-bearing checking   635,640   515,987   908,988 
Savings (excluding mortgage escrow deposits)   2,347,114   2,335,354   2,333,196 
Money market   3,440,083   3,125,996   2,686,290 
Certificates of deposit   1,555,157   1,607,683   1,519,267 
Deposits (excluding mortgage escrow deposits)   10,797,475   10,469,398   10,460,119 
Non-interest-bearing mortgage escrow deposits   101,229   61,121   109,867 
Interest-bearing mortgage escrow deposits   173   136   249 
Total mortgage escrow deposits   101,402   61,257   110,116 
FHLBNY advances   773,000   1,313,000   1,498,000 
Other short-term borrowings   —   —   2,068 
Subordinated debt, net   200,174   200,196   200,261 
Derivative cash collateral   132,900   108,100   120,680 
Operating lease liabilities   54,727   55,454   59,757 
Derivative liabilities   122,112   121,265   115,568 
Other liabilities   79,931   81,110   83,902 
Total liabilities   12,261,721   12,409,780   12,650,471 
Stockholders' equity:          
Preferred stock, Series A   116,569   116,569   116,569 
Common stock   416   416   416 
Additional paid-in capital   492,834   494,454   493,801 
Retained earnings   819,130   813,007   789,010 
Accumulated other comprehensive loss ("AOCI"), net of deferred taxes   (85,466)  (91,579)  (98,638)
Unearned equity awards   (10,191)  (8,622)  (13,468)
Treasury stock, at cost   (93,921)  (98,020)  (96,437)
Total stockholders' equity   1,239,371   1,226,225   1,191,253 
Total liabilities and stockholders' equity $ 13,501,092  $13,636,005  $13,841,724 

________________________
(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
     March 31,     December 31,     March 31, 
  2024  2023 2023 
Interest income:           
Loans $ 143,565  $144,744  $128,439 
Securities   7,880   7,918   8,431 
Other short-term investments   9,564   6,094   3,802 
Total interest income   161,009   158,756   140,672 
Interest expense:           
Deposits and escrow   73,069   66,650   37,272 
Borrowed funds   14,697   15,617   16,171 
Derivative cash collateral   1,713   2,368   1,477 
Total interest expense   89,479   84,635   54,920 
Net interest income   71,530   74,121   85,752 
Provision (recovery) for credit losses   5,210   3,720   (3,648)
Net interest income after provision (recovery)   66,320   70,401   89,400 
Non-interest income:           
Service charges and other fees   4,544   3,804   3,814 
Title fees   133   466   292 
Loan level derivative income   406   728   3,133 
BOLI income   2,461   2,416   2,163 
Gain on sale of SBA loans   253   531   516 
Gain on sale of residential loans   77   12   48 
Fair value change in equity securities and loans held for sale   (842)  321   — 
Net gain (loss) on sale of securities and other assets   2,968   —   (1,447)
Other   467   594   482 
Total non-interest income   10,467   8,872   9,001 
Non-interest expense:           
Salaries and employee benefits   32,037   30,383   26,634 
Severance   42   25   25 
Occupancy and equipment   7,368   7,261   7,373 
Data processing costs   4,313   3,730   4,238 
Marketing   1,497   1,765   1,449 
Professional services   1,467   1,279   1,923 
Federal deposit insurance premiums (1)   2,239   3,240   1,873 
Loss on extinguishment of debt   453   —   — 
Amortization of other intangible assets   307   350   377 
Other   2,788   5,911   3,583 
Total non-interest expense   52,511   53,944   47,475 
Income before taxes   24,276   25,329   50,926 
Income tax expense   6,585   9,021   13,623 
Net income   17,691   16,308   37,303 
Preferred stock dividends   1,821   1,821   1,821 
Net income available to common stockholders $ 15,870  $14,487  $35,482 
Earnings per common share ("EPS"):           
Basic $ 0.41  $0.37  $0.92 
Diluted $ 0.41  $0.37  $0.92 
           
Average common shares outstanding for diluted EPS   38,255,559   38,216,476   38,151,465 

________________________
(1)   Fourth quarter of 2023 included $1.0 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank.


 
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,     
  2024  2023  2023 
Per Share Data:            
Reported EPS (Diluted) $ 0.41  $0.37  $0.92 
Cash dividends paid per common share   0.25   0.25   0.24 
Book value per common share   28.84   28.58   27.70 
Tangible common book value per share (1)   24.72   24.44   23.52 
Common shares outstanding   38,932   38,823   38,804 
Dividend payout ratio   60.98%  67.57%  26.09%
             
Performance Ratios (Based upon Reported Net Income):             
Return on average assets   0.51%  0.48%  1.11%
Return on average equity   5.68   5.32   12.50 
Return on average tangible common equity (1)   6.64   6.20   15.62 
Net interest margin   2.21   2.29   2.74 
Non-interest expense to average assets   1.52   1.58   1.41 
Efficiency ratio   64.0   65.0   50.1 
Effective tax rate   27.13   35.62   26.75 
             
Balance Sheet Data:             
Average assets $ 13,794,924  $13,630,096  $13,449,746 
Average interest-earning assets   13,015,755   12,828,060   12,685,235 
Average tangible common equity (1)   968,719   948,024   914,994 
Loan-to-deposit ratio at end of period (2)   98.8   102.3   101.5 
             
Capital Ratios and Reserves - Consolidated: (3)             
Tangible common equity to tangible assets (1)   7.21%  7.04%  6.67%
Tangible equity to tangible assets (1)   8.09   7.91   7.52 
Tier 1 common equity ratio   10.00   9.84   9.32 
Tier 1 risk-based capital ratio   11.11   10.94   10.39 
Total risk-based capital ratio   13.78   13.54   12.98 
Tier 1 leverage ratio   8.48   8.51   8.43 
Consolidated CRE concentration ratio (4)   534   538   554 
Allowance for credit losses/ Total loans   0.71   0.67   0.73 
Allowance for credit losses/ Non-performing loans   218.42   246.55   248.34 

________________________
(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)   March 31, 2024 ratios are preliminary pending completion and filing of the Company’s regulatory reports.
(4)   The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. March 31, 2024 is 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  
  March 31, 2024 December 31, 2023 March 31, 2023 
                    Average             Average          Average 
  Average    Yield/ Average    Yield/ Average    Yield/ 
  Balance Interest Cost Balance Interest Cost Balance Interest Cost 
Assets:                            
Interest-earning assets:                            
Business loans (1) $ 2,308,319 $ 39,224  6.83%  $2,264,401 $38,740 6.79%$2,200,543 $33,691 6.21%
One-to-four family residential, including condo and coop   886,588   9,770  4.43  893,008  9,706 4.31  788,302  7,616 3.92 
Multifamily residential and residential mixed-use   4,000,510   46,019  4.63  4,070,327  46,715 4.55  4,074,011  42,349 4.22 
Non-owner-occupied commercial real estate   3,371,438   44,776  5.34  3,376,581  45,037 5.29  3,317,049  39,695 4.85 
Acquisition, development, and construction   169,775   3,692  8.75  188,022  4,459 9.41  225,898  4,973 8.93 
Other loans   5,420   84  6.23  5,837  87 5.91  7,550  115 6.18 
Securities   1,578,330   7,880  2.01  1,599,724  7,918 1.96  1,699,846  8,431 2.01 
Other short-term investments   695,375   9,564  5.53  430,160  6,094 5.62  372,036  3,802 4.14 
Total interest-earning assets   13,015,755   161,009  4.98%   12,828,060  158,756 4.91% 12,685,235  140,672 4.50%
Non-interest-earning assets   779,169         802,036       764,511      
Total assets $ 13,794,924        $13,630,096      $13,449,746      
                          
Liabilities and Stockholders' Equity:                         
Interest-bearing liabilities:                         
Interest-bearing checking (2) $ 582,047 $ 1,223  0.85%  $524,573 $1,063 0.80%$843,108 $1,523 0.73%
Money market   3,359,884   30,638  3.67  3,136,891  27,541 3.48  2,699,640  13,849 2.08 
Savings (2)   2,368,946   22,810  3.87  2,295,882  20,979 3.63  2,327,126  14,599 2.54 
Certificates of deposit   1,655,882   18,398  4.47  1,564,817  17,067 4.33  1,167,736  7,301 2.54 
Total interest-bearing deposits   7,966,759   73,069  3.69  7,522,163  66,650 3.52  7,037,610  37,272 2.15 
FHLBNY advances   1,094,209   12,143  4.46  1,174,848  13,064 4.41  1,255,700  13,500 4.36 
Subordinated debt, net   200,188   2,553  5.13  200,210  2,553 5.06  200,276  2,553 5.17 
Other short-term borrowings   77   1  5.22  —  — —  11,827  118 4.05 
Total borrowings   1,294,474   14,697  4.57  1,375,058  15,617 4.51  1,467,803  16,171 4.47 
Derivative cash collateral   130,166   1,713  5.29  161,535  2,368 5.82  135,641  1,477 4.42 
Total interest-bearing liabilities   9,391,399   89,479  3.83%   9,058,756  84,635 3.71% 8,641,054  54,920 2.58%
Non-interest-bearing checking (2)   2,909,776         3,059,289       3,341,707      
Other non-interest-bearing liabilities   247,717         286,373       273,281      
Total liabilities   12,548,892         12,404,418       12,256,042      
Stockholders' equity   1,246,032         1,225,678       1,193,704      
Total liabilities and stockholders' equity $ 13,794,924        $13,630,096      $13,449,746      
Net interest income     $ 71,530       $74,121      $85,752   
Net interest rate spread          1.15%        1.20%      1.92%
Net interest margin          2.21%        2.29%        2.74%
Deposits (including non-interest-bearing checking accounts) (2) $ 10,876,535 $ 73,069  2.70%  $10,581,452 $66,650 2.50%$10,379,317 $37,272 1.46%

________________________
(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
  March 31,     December 31,     March 31, 
Asset Quality Detail 2024 2023 2023
Non-performing loans ("NPLs")          
Business loans (1) $ 18,213  $18,574  $25,512 
One-to-four family residential, including condominium and cooperative apartment   3,689   3,248   2,808 
Multifamily residential and residential mixed-use   —   —   — 
Non-owner-occupied commercial real estate   15   6,620   2,468 
Acquisition, development, and construction   12,910   657   657 
Other loans   —   —   99 
Total Non-accrual loans $ 34,827  $29,099  $31,544 
Total Non-performing assets ("NPAs") $ 34,827  $29,099  $31,544 
          
Total loans 90 days delinquent and accruing ("90+ Delinquent") $ —  $—  $— 
          
NPAs and 90+ Delinquent $ 34,827  $29,099  $31,544 
          
NPAs and 90+ Delinquent / Total assets  0.26%  0.21%  0.23%
Net charge-offs ("NCOs") $ 739  $4,555  $1,541 
NCOs / Average loans (2)  0.03%  0.17%  0.06%

________________________
(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 the fair value change in equity securities and loans held for sale, net (gain) loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:  

  Three Months Ended  
     March 31,     December 31,     March 31,     
  2024 2023 2023 
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders          
Reported net income available to common stockholders $ 15,870  $14,487  $35,482  
Adjustments to net income (1):           
Fair value change in equity securities and loans held for sale   842   (321)  —  
Net (gain) loss on sale of securities and other assets   (2,968)  —   1,447  
Severance   42   25   25  
FDIC special assessment   —   999   —  
Loss on extinguishment of debt   453   —   —  
Income tax effect of adjustments   518   (208)  (436) 
Adjusted net income available to common stockholders (non-GAAP) $ 14,757  $14,982  $36,518  
           
Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)          
Adjusted EPS (Diluted) $ 0.38  $0.39  $0.95  
Adjusted return on average assets   0.48 %   0.49 % 1.14 %
Adjusted return on average equity   5.32   5.48   12.85  
Adjusted return on average tangible common equity   6.18   6.41   16.08  
Adjusted non-interest expense to average assets   1.50   1.54   1.40  
Adjusted efficiency ratio   64.7   63.6   48.9  

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


The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

  Three Months Ended  
     March 31,  December 31,  March 31,  
  2024 2023 2023 
Operating expense as a % of average assets - as reported  1.52 %  1.58 %1.41 %
Loss on extinguishment of debt  (0.01) —  —  
Severance  —  —  —  
FDIC special assessment  —  (0.03) —  
Amortization of other intangible assets  (0.01) (0.01) (0.01) 
Adjusted operating expense as a % of average assets (non-GAAP)  1.50 %  1.54 %1.40 %


The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

  Three Months Ended  
     March 31,     December 31,     March 31,     
  2024 2023 2023 
Efficiency ratio - as reported (non-GAAP) (1)      64.0 %   65.0 % 50.1 %
Non-interest expense - as reported $ 52,511  $53,944  $47,475  
Severance   (42)  (25)  (25) 
FDIC special assessment   —   (999)  —  
Loss on extinguishment of debt   (453)  —   —  
Amortization of other intangible assets   (307)  (350)  (377) 
Adjusted non-interest expense (non-GAAP) $ 51,709  $52,570  $47,073  
Net interest income - as reported $ 71,530  $74,121  $85,752  
Non-interest income - as reported $ 10,467  $8,872  $9,001  
Fair value change in equity securities and loans held for sale   842   (321)  —  
Net (gain) loss on sale of securities and other assets   (2,968)  —   1,447  
Adjusted non-interest income (non-GAAP) $ 8,341  $8,551  $10,448  
Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 79,871  $82,672  $96,200  
Adjusted efficiency ratio (non-GAAP) (2)    64.7 %   63.6 % 48.9 %

________________________
(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):

     March 31,     December 31,     March 31,  
  2024 2023 2023 
Reconciliation of Tangible Assets:          
Total assets $ 13,501,092  $13,636,005  $13,841,724  
Goodwill   (155,797)  (155,797)  (155,797) 
Other intangible assets   (4,753)  (5,059)  (6,107) 
Tangible assets (non-GAAP) $ 13,340,542  $13,475,149  $13,679,820  
           
Reconciliation of Tangible Common Equity - Consolidated:          
Total stockholders' equity $ 1,239,371  $1,226,225  $1,191,253  
Goodwill   (155,797)  (155,797)  (155,797) 
Other intangible assets   (4,753)  (5,059)  (6,107) 
Tangible equity (non-GAAP)   1,078,821   1,065,369   1,029,349  
Preferred stock, net   (116,569)  (116,569)  (116,569) 
Tangible common equity (non-GAAP) $ 962,252  $948,800  $912,780  
           
Common shares outstanding   38,932   38,823   38,804  
           
Tangible common equity to tangible assets (non-GAAP)  7.21 % 7.04 % 6.67 %
Tangible equity to tangible assets (non-GAAP)  8.09   7.91   7.52  
           
Book value per common share $28.84  $28.58  $27.70  
Tangible common book value per share (non-GAAP)  24.72   24.44   23.52