Dime Community Bancshares, Inc. Reports Fourth Quarter 2023 Results

January 26, 2024

Total Deposits Grow By Over $276 Million on a Year-Over-Year Basis; Growth Driven By Deposit Gathering Group Hires

Capital Ratios Continue to Increase and Asset Quality Remains Stable

HAUPPAUGE, N.Y., Jan. 26, 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 $88.8 million for the year ended December 31, 2023, or $2.29 per diluted common share, compared to net income available to common stockholders of $145.3 million for the year ended December 31, 2022, or $3.73 per diluted common share.

Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Our fourth quarter results were marked by a continued stabilization in our non-interest-bearing deposit base, a continued reduction in the pace of net interest margin compression, a steady build-up in our capital ratios and stable asset quality. As we close the book on 2023, we are pleased with the initial results of a number of initiatives that we undertook during the year. Specifically, we built out our Private and Commercial Bank via the hiring of several productive groups, we added a new Healthcare lending vertical that will help diversify our asset base over time and we upgraded numerous areas of our technology and treasury management capabilities. I would like to thank all of our employees for contributing to these achievements and look forward to continuing to grow our franchise. As we look forward to 2024, we have strategically positioned our balance sheet to benefit from projected Federal Reserve rate cuts.”

For the quarter ended December 31, 2023, net income available to common stockholders was $14.5 million, or $0.37 per diluted common share, compared to $13.2 million, or $0.34 per diluted common share, for the quarter ended September 30, 2023, and $38.2 million, or $0.99 per diluted common share, for the quarter ended December 31, 2022. Fourth quarter 2023 results 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. Third quarter 2023 results included $8.6 million of pre-tax severance expense. The Company had an elevated effective tax rate in the second half of 2023 of approximately 35%; the tax rate is expected to normalize in 2024 to approximately 27%.

Highlights for the Fourth Quarter of 2023 Included:

  • Total deposits increased $276 million on a year-over-year basis;
  • The ratio of average non-interest-bearing deposits to average total deposits for the fourth quarter was 29%;
  • The pace of NIM compression continued to slow in the fourth quarter; on a linked quarter basis, the NIM declined by 5 basis points in the fourth quarter of 2023 compared to a 16 basis point decline for the third quarter of 2023 and a 24 basis point decline for the second quarter of 2023;
  • Loan originations increased to $195.9 million for the fourth quarter of 2023, compared to $153.4 million in the prior quarter;
  • Credit quality continues to be stable with non-performing assets and loans 90 days past due representing only 0.21% of total assets as of December 31, 2023; and
  • Capital ratios continue to build, with the Company’s Tier 1 Risk Based Capital Ratio increasing to 10.94% at December 31, 2023.

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the fourth quarter of 2023 was $74.1 million compared to $76.5 million for the third quarter of 2023 and $96.8 million for the fourth 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) Q4 2023 Q3 2023 Q4 2022 
Net interest income $74,121  $76,479 $96,804  
Purchase accounting amortization (accretion) on loans ("PAA")  (55)  186  (390) 
Adjusted net interest income excluding PAA on loans (non-GAAP) $74,066  $76,665 $96,414  
           
Average interest-earning assets $12,828,060  $12,984,061 $12,198,905  
           
NIM(1)  2.29 % 2.34% 3.15 %
Adjusted NIM excluding PAA on loans (non-GAAP)(2)  2.29 % 2.34% 3.14 %

_______________________________ 

(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 5.29% at December 31, 2023, a 9 basis point increase compared to the ending WAR of 5.20% on the total loan portfolio at September 30, 2023.

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

                 
  December 31, 2023 September 30, 2023 December 31, 2022 
(Dollars in thousands) Balance WAR Balance WAR Balance WAR 
Loans held for investment balances at period end:                
Business loans(2) $2,310,379 6.81%$2,271,768 6.72%$2,211,857 6.05%
One-to-four family residential, including condominium and cooperative apartment  889,236 4.47  892,869 4.39  773,321 3.96 
Multifamily residential and residential mixed-use(3)(4)  4,017,703 4.53  4,102,024 4.45  4,026,826 4.08 
Non-owner-occupied commercial real estate  3,381,842 5.19  3,374,281 5.09  3,317,485 4.68 
Acquisition, development, and construction  168,513 8.71  203,402 8.92  229,663 8.19 
Other loans  5,755 6.75  6,267 6.28  7,679 10.22 
Loans held for investment $10,773,428 5.29%$10,850,611 5.20%$10,566,831 4.76%

_______________________________ 

(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) Q4 2023 Q3 2023 Q4 2022 
Loan originations $195.9 $153.4 $638.3 


Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at December 31, 2023 were $10.53 billion, compared to $10.64 billion at September 30, 2023 and $10.25 billion at December 31, 2022. CEO Lubow commented, “Despite the impacts of reduced liquidity in the banking system, we were pleased to grow deposits on a year-over-year basis. Hires that we made in the second quarter of 2023 have already generated approximately $333 million of deposits, with 50% of the balances being in non-interest-bearing deposits.”

Total Federal Home Loan Bank advances were $1.31 billion at December 31, 2023 compared to $1.12 billion at September 30, 2023 and $1.13 billion at December 31, 2022.

Non-Interest Income

Non-interest income was $8.9 million during the fourth quarter of 2023, $7.9 million during the third quarter of 2023, and $9.5 million during the fourth quarter of 2022.

Non-Interest Expense

Total non-interest expense was $53.9 million during the fourth quarter of 2023, $59.5 million during the third quarter of 2023, and $50.7 million during the fourth quarter of 2022. Excluding the impact of severance expense, the FDIC special assessment, loss on extinguishment of debt, and amortization of other intangible assets, adjusted non-interest expense was $52.6 million during the fourth quarter of 2023, $50.6 million during the third quarter of 2023, and $50.3 million during the fourth 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 1.58% during the fourth quarter of 2023, compared to 1.73% during the linked quarter and 1.56% for the fourth quarter of 2022. Excluding the impact of severance expense, the FDIC special assessment, loss on extinguishment of debt, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.54% during the fourth quarter of 2023, compared to 1.48% during the linked quarter and 1.55% for the fourth quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 65.0% during the fourth quarter of 2023, compared to 70.5% during the linked quarter and 47.7% during the fourth quarter of 2022. Excluding the impact of net loss on equity securities, net loss on sale of securities and other assets, severance expense, the FDIC special assessment, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 63.6% during the fourth quarter of 2023, compared to 59.7% during the linked quarter and 47.3% during the fourth 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 fourth quarter of 2023 was 35.6% compared to 35.1% for the third quarter of 2023, and 27.5% for the fourth quarter of 2022. The tax rate for 2024 is expected to be approximately 27%.

Credit Quality

Non-performing loans were $29.1 million at December 31, 2023 compared to $23.3 million at September 30, 2023 and $34.2 million at December 31, 2022.

A credit loss provision of $3.7 million was recorded during the fourth quarter of 2023, compared to a credit loss provision of $1.8 million during the third quarter of 2023, and a credit loss provision of $335 thousand during the fourth quarter of 2022. The credit loss provision in the fourth quarter of 2023 was primarily associated with 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 December 31, 2023. All of the Company’s and the Bank’s risk-based regulatory capital ratios increased in the fourth quarter of 2023.

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

Book value per common share was $28.58 at December 31, 2023 compared to $28.03 at September 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 $24.44 at December 31, 2023 compared to $23.87 at September 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 8:00 a.m. (ET) on Friday, January 26, 2024, during which CEO Lubow will discuss the Company’s fourth quarter 2023 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: Webcast Link Here. To participate via telephone, please register in advance using this Registration Link. 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 $13.6 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)
          
  December 31, September 30, December 31,
  2023 2023 2022
Assets:         
Cash and due from banks $457,547  $358,824  $169,297 
Securities available-for-sale, at fair value  886,240   869,879   950,587 
Securities held-to-maturity  594,639   600,291   585,798 
Loans held for sale  10,159   3,924    
Loans held for investment, net:         
Business loans(1)  2,310,379   2,271,768   2,211,857 
One-to-four family and cooperative/condominium apartment  889,236   892,869   773,321 
Multifamily residential and residential mixed-use(2)(3)  4,017,703   4,102,024   4,026,826 
Non-owner-occupied commercial real estate  3,381,842   3,374,281   3,317,485 
Acquisition, development and construction  168,513   203,402   229,663 
Other loans  5,755   6,267   7,679 
Allowance for credit losses  (71,743)  (72,563)  (83,507)
Total loans held for investment, net  10,701,685   10,778,048   10,483,324 
Premises and fixed assets, net  44,868   45,064   46,749 
Premises held for sale  905   905    
Restricted stock  98,750   90,085   88,745 
Bank Owned Life Insurance ("BOLI")  349,816   347,400   333,292 
Goodwill  155,797   155,797   155,797 
Other intangible assets  5,059   5,409   6,484 
Operating lease assets  52,729   55,600   57,857 
Derivative assets  122,132   177,369   154,485 
Accrued interest receivable  55,666   53,608   48,561 
Other assets  100,013   109,202   108,945 
Total assets $13,636,005  $13,651,405  $13,189,921 
Liabilities:         
Non-interest-bearing checking (excluding mortgage escrow deposits) $2,884,378  $2,935,156  $3,449,763 
Interest-bearing checking  515,987   630,686   827,454 
Savings (excluding mortgage escrow deposits)  2,335,354   2,309,440   2,259,909 
Money market  3,125,996   3,211,197   2,532,270 
Certificates of deposit  1,607,683   1,442,299   1,115,364 
Deposits (excluding mortgage escrow deposits)  10,469,398   10,528,778   10,184,760 
Non-interest-bearing mortgage escrow deposits  61,121   107,545   69,455 
Interest-bearing mortgage escrow deposits  136   223   192 
Total mortgage escrow deposits  61,257   107,768   69,647 
FHLBNY advances  1,313,000   1,123,000   1,131,000 
Other short-term borrowings        1,360 
Subordinated debt, net  200,196   200,218   200,283 
Derivative cash collateral  108,100   185,620   153,040 
Operating lease liabilities  55,454   58,281   60,340 
Derivative liabilities  121,265   160,712   137,335 
Other liabilities  81,110   82,684   82,573 
Total liabilities  12,409,780   12,447,061   12,020,338 
Stockholders' equity:         
Preferred stock, Series A  116,569   116,569   116,569 
Common stock  416   416   416 
Additional paid-in capital  494,454   494,470   495,410 
Retained earnings  813,007   808,235   762,762 
Accumulated other comprehensive loss ("AOCI"), net of deferred taxes  (91,579)  (106,913)  (94,379)
Unearned equity awards  (8,622)  (10,170)  (8,078)
Treasury stock, at cost  (98,020)  (98,263)  (103,117)
Total stockholders' equity  1,226,225   1,204,344   1,169,583 
Total liabilities and stockholders' equity $13,636,005  $13,651,405  $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.
(3While 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 Year Ended
  December 31, September 30, December 31, December 31, December 31,
  2023 2023
 2022 2023
 2022
Interest income:               
Loans $144,744 $142,995  $120,773 $554,488  $406,601
Securities  7,918  7,916   7,652  32,179   29,224
Other short-term investments  6,094  6,930   1,444  22,693   3,400
Total interest income  158,756  157,841   129,869  609,360   439,225
Interest expense:               
Deposits and escrow  66,650  62,507   22,017  219,045   38,433
Borrowed funds  15,617  16,925   9,783  66,472   19,117
Derivative cash collateral  2,368  1,930   1,265  7,272   1,812
Total interest expense  84,635  81,362   33,065  292,789   59,362
Net interest income  74,121  76,479   96,804  316,571   379,863
Provision for credit losses  3,720  1,806   335  2,770   5,374
Net interest income after provision  70,401  74,673   96,469  313,801   374,489
Non-interest income:               
Service charges and other fees  3,804  3,963   3,945  16,437   16,206
Title fees  466  291   453  1,295   2,031
Loan level derivative income  728  783   1,397  7,081   3,637
BOLI income  2,416  2,317   2,187  9,748   10,346
Gain on sale of SBA loans  531  335   621  1,592   1,797
Gain on sale of residential loans  12  21   55  115   448
Net gain (loss) on equity securities  321  (299)    (758)  
Net (loss) gain on sale of securities and other assets    (22)    (1,469)  1,397
Other  594  539   809  2,165   2,294
Total non-interest income  8,872  7,928   9,467  36,206   38,156
Non-interest expense:               
Salaries and employee benefits  30,383  30,520   31,632  117,437   120,108
Severance  25  8,562   5  9,093   2,198
Occupancy and equipment  7,261  7,277   7,356  29,055   30,220
Data processing costs  3,730  4,309   4,023  16,474   15,175
Marketing  1,765  2,079   1,559  6,781   5,900
Professional services  1,279  1,277   1,831  6,155   8,069
Federal deposit insurance premiums(1)  3,240  1,866   800  8,853   3,900
Loss on extinguishment of debt            740
Amortization of other intangible assets  350  349   431  1,425   1,878
Other  5,911  3,284   3,065  17,855   12,542
Total non-interest expense  53,944  59,523   50,702  213,128   200,730
Income before taxes  25,329  23,078   55,234  136,879   211,915
Income tax expense  9,021  8,093   15,175  40,785   59,359
Net income  16,308  14,985   40,059  96,094   152,556
Preferred stock dividends  1,821  1,822   1,821  7,286   7,286
Net income available to common stockholders $14,487 $13,163  $38,238 $88,808  $145,270
Earnings per common share ("EPS"):               
Basic $0.37 $0.34  $0.99 $2.29  $3.73
Diluted $0.37 $0.34  $0.99 $2.29  $3.73
                
Average common shares outstanding for diluted EPS  38,216,476  38,203,961   38,123,221  38,187,477   38,538,834

_______________________________ 

(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  At or For the Year Ended  
     December 31,     September 30,     December 31,     December 31,     December 31,  
  2023 2023 2022 2023 2022 
Per Share Data:                     
Reported EPS (Diluted) $ 0.37 $0.34 $0.99 $ 2.29 $3.73 
Cash dividends paid per common share   0.25  0.25  0.24   0.99  0.96 
Book value per common share   28.58  28.03  27.30   28.58  27.30 
Tangible common book value per share (1)   24.44  23.87  23.09   24.44  23.09 
Common shares outstanding   38,823  38,811  38,573   38,823  38,573 
Dividend payout ratio   67.57%   73.53%   24.24%    43.23%   25.74%
                 
Performance Ratios (Based upon Reported Net Income):                     
Return on average assets   0.48%   0.44%   1.23%    0.71%   1.22%
Return on average equity   5.32  4.91  13.72   7.91  13.05 
Return on average tangible common equity (1)   6.20  5.69  17.34   9.59  16.49 
Net interest margin   2.29  2.34  3.15   2.46  3.25 
Non-interest expense to average assets   1.58  1.73  1.56   1.56  1.61 
Efficiency ratio   65.0  70.5  47.7   60.4  48.0 
Effective tax rate   35.62  35.07  27.47   29.80  28.01 
                 
Balance Sheet Data:                     
Average assets $ 13,630,096 $13,759,493 $12,985,203 $ 13,625,215 $12,466,762 
Average interest-earning assets   12,828,060  12,984,061  12,198,905   12,847,238  11,684,501 
Average tangible common equity (1)   948,024  943,805  888,973   936,840  889,026 
Loan-to-deposit ratio at end of period (2)   102.3  102.0  103.0   102.3  103.0 
                 
Capital Ratios and Reserves - Consolidated: (3)                     
Tangible common equity to tangible assets (1)   7.04%   6.87%   6.84%        
Tangible equity to tangible assets (1)   7.91  7.73  7.73       
Tier 1 common equity ratio   9.84  9.67  9.15       
Tier 1 risk-based capital ratio   10.94  10.76  10.23       
Total risk-based capital ratio   13.54  13.33  12.89       
Tier 1 leverage ratio   8.51  8.38  8.53       
Consolidated CRE concentration ratio (4)   538  547  554       
Allowance for credit losses/ Total loans   0.67  0.67  0.79       
Allowance for credit losses/ Non-performing loans   246.55  311.16  243.91       

_______________________________ 

(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) December 31, 2023 ratios are preliminary pending completion and filing of the Company’s regulatory reports.
(4The 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. December 31, 2023 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 
  December 31, 2023 September 30, 2023 December 31, 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) $2,264,401 $38,740 6.79%$2,260,203 $38,384 6.74%$2,070,440 $30,387 5.82%
One-to-four family residential, including condo and coop  893,008  9,706 4.31  879,688  9,165 4.13  750,849  6,892 3.64 
Multifamily residential and residential mixed-use  4,070,327  46,715 4.55  4,114,476  46,099 4.45  3,998,478  40,658 4.03 
Non-owner-occupied commercial real estate  3,376,581  45,037 5.29  3,382,927  44,184 5.18  3,263,917  37,769 4.59 
Acquisition, development, and construction  188,022  4,459 9.41  222,039  5,075 9.07  243,512  4,942 8.05 
Other loans  5,837  87 5.91  6,156  88 5.67  8,269  125 6.00 
Securities  1,599,724  7,918 1.96  1,619,960  7,916 1.94  1,663,969  7,652 1.82 
Other short-term investments  430,160  6,094 5.62  498,612  6,930 5.51  199,471  1,444 2.87 
Total interest-earning assets  12,828,060  158,756 4.91% 12,984,061  157,841 4.82% 12,198,905  129,869 4.22%
Non-interest-earning assets  802,036       775,432       786,298      
Total assets $13,630,096      $13,759,493      $12,985,203      
                          
Liabilities and Stockholders' Equity:                         
Interest-bearing liabilities:                         
Interest-bearing checking(2) $524,573 $1,063 0.80%$786,892 $2,896 1.46%$845,530 $1,174 0.55%
Money market  3,136,891  27,541 3.48  2,975,267  24,275 3.24  2,469,177  6,620 1.06 
Savings(2)  2,295,882  20,979 3.63  2,342,424  20,316 3.44  2,234,968  9,889 1.76 
Certificates of deposit  1,564,817  17,067 4.33  1,494,491  15,020 3.99  1,063,053  4,334 1.62 
Total interest-bearing deposits  7,522,163  66,650 3.52  7,599,074  62,507 3.26  6,612,728  22,017 1.32 
FHLBNY advances  1,174,848  13,064 4.41  1,250,717  14,370 4.56  724,902  6,383 3.49 
Subordinated debt, net  200,210  2,553 5.06  200,232  2,553 5.06  200,298  2,553 5.06 
Other short-term borrowings       120  2 6.61  90,275  847 3.72 
Total borrowings  1,375,058  15,617 4.51  1,451,069  16,925 4.63  1,015,475  9,783 3.82 
Derivative cash collateral  161,535  2,368 5.82  156,795  1,930 4.88  157,898  1,265 3.18 
Total interest-bearing liabilities  9,058,756  84,635 3.71% 9,206,938  81,362 3.51% 7,786,101  33,065 1.68%
Non-interest-bearing checking(2)  3,059,289       3,065,186       3,755,395      
Other non-interest-bearing liabilities  286,373       265,559       275,636      
Total liabilities  12,404,418       12,537,683       11,817,132      
Stockholders' equity  1,225,678       1,221,810       1,168,071      
Total liabilities and stockholders' equity $13,630,096      $13,759,493      $12,985,203      
Net interest income    $74,121      $76,479      $96,804   
Net interest rate spread       1.20%      1.31%      2.54%
Net interest margin       2.29%      2.34%      3.15%
Deposits (including non-interest-bearing checking accounts)(2) $10,581,452 $66,650 2.50%$10,664,260 $62,507 2.33%$10,368,123 $22,017 0.84%

_______________________________ 

(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
  December 31,     September 30,     December 31, 
Asset Quality Detail 2023  2023  2022 
Non-performing loans ("NPLs")            
Business loans (1) $ 18,574  $19,555  $27,787 
One-to-four family residential, including condominium and cooperative apartment   3,248   2,874   3,203 
Multifamily residential and residential mixed-use         
Non-owner-occupied commercial real estate   6,620   15   2,491 
Acquisition, development, and construction   657   657   657 
Other loans     219   99 
Total Non-accrual loans $ 29,099  $23,320  $34,237 
Total Non-performing assets ("NPAs") $ 29,099  $23,320  $34,237 
          
Loans 90 days delinquent and accruing ("90+ Delinquent")            
Business loans $  $  $ 
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 $  $  $ 
          
NPAs and 90+ Delinquent $ 29,099  $23,320  $34,237 
          
NPAs and 90+ Delinquent / Total assets  0.21%  0.17%  0.26%
Net charge-offs ("NCOs") $ 4,555  $4,864  $185 
NCOs / Average loans (2)  0.17%  0.18%  0.01%

_______________________________ 

(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 net loss on equity securities, net loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:  

                 
  Three Months Ended Year Ended 
  December 31, September 30, December 31, December 31, December 31, 
  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 $14,487  $13,163  $38,238 $88,808  $145,270  
Adjustments to net income(1):                
Net (gain) loss on equity securities  (321)  299     758     
Net loss (gain) on sale of securities and other assets     22     1,469   (1,397) 
Severance  25   8,562   5  9,093   2,198  
FDIC special assessment  999        999     
Loss on extinguishment of debt             740  
Income tax effect of adjustments  (208)  (176)    (1,193)  145  
Adjusted net income available to common stockholders (non-GAAP) $14,982  $21,870  $38,243 $99,934  $146,956  
                 
Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)                
Adjusted EPS (Diluted) $0.39  $0.56  $0.99 $2.58  $3.77  
Adjusted return on average assets  0.49 % 0.69 % 1.23% 0.79 % 1.24 %
Adjusted return on average equity  5.48   7.76   13.72  8.82   13.20  
Adjusted return on average tangible common equity  6.41   9.38   17.34  10.77   16.67  
Adjusted non-interest expense to average assets  1.54   1.48   1.55  1.48   1.57  
Adjusted efficiency ratio  63.6   59.7   47.3  56.8   47.0  

_______________________________ 

(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  Year Ended
   December 31,  September 30,  December 31,  December 31,  December 31, 
   2023
  2023
  2022
  2023
  2022
 
Operating expense as a % of average assets - as reported  1.58 % 1.73 % 1.56 % 1.56 % 1.61 %
Loss on extinguishment of debt              (0.01) 
Severance     (0.25)     (0.06)  (0.02) 
FDIC special assessment  (0.03)        (0.01)    
Amortization of other intangible assets  (0.01)     (0.01)  (0.01)  (0.01) 
Adjusted operating expense as a % of average assets (non-GAAP)  1.54 % 1.48 % 1.55 % 1.48 % 1.57 %


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

                 
  Three Months Ended Year Ended 
  December 31, September 30, December 31, December 31, December 31, 
  2023
 2023
 2022
 2023  2022
 
Efficiency ratio - as reported (non-GAAP)(1)  65.0 % 70.5 % 47.7 % 60.4 % 48.0 %
Non-interest expense - as reported $53,944  $59,523  $50,702  $213,128  $200,730  
Severance  (25)  (8,562)  (5)  (9,093)  (2,198) 
FDIC special assessment  (999)        (999)    
Loss on extinguishment of debt              (740) 
Amortization of other intangible assets  (350)  (349)  (431)  (1,425)  (1,878) 
Adjusted non-interest expense (non-GAAP) $52,570  $50,612  $50,266  $201,611  $195,914  
Net interest income - as reported $74,121  $76,479  $96,804  $316,571  $379,863  
Non-interest income - as reported $8,872  $7,928  $9,467  $36,206  $38,156  
Net (gain) loss on equity securities  (321)  299      758     
Net loss (gain) on sale of securities and other assets     22      1,469   (1,397) 
Adjusted non-interest income (non-GAAP) $8,551  $8,249  $9,467  $38,433  $36,759  
Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $82,672  $84,728  $106,271  $355,004  $416,622  
Adjusted efficiency ratio (non-GAAP)(2)  63.6 % 59.7 % 47.3 % 56.8 % 47.0 %

_______________________________

(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):

           
  December 31, September 30, December 31, 
  2023
 2023
 2022
 
Reconciliation of Tangible Assets:          
Total assets $13,636,005  $13,651,405  $13,189,921  
Goodwill  (155,797)  (155,797)  (155,797) 
Other intangible assets  (5,059)  (5,409)  (6,484) 
Tangible assets (non-GAAP) $13,475,149  $13,490,199  $13,027,640  
           
Reconciliation of Tangible Common Equity - Consolidated:          
Total stockholders' equity $1,226,225  $1,204,344  $1,169,583  
Goodwill  (155,797)  (155,797)  (155,797) 
Other intangible assets  (5,059)  (5,409)  (6,484) 
Tangible equity (non-GAAP)  1,065,369   1,043,138   1,007,302  
Preferred stock, net  (116,569)  (116,569)  (116,569) 
Tangible common equity (non-GAAP) $948,800  $926,569  $890,733  
           
Common shares outstanding  38,823   38,811   38,573  
           
Tangible common equity to tangible assets (non-GAAP)  7.04 % 6.87 % 6.84 %
Tangible equity to tangible assets (non-GAAP)  7.91   7.73   7.73  
           
Book value per common share $28.58  $28.03  $27.30  
Tangible common book value per share (non-GAAP)  24.44   23.87   23.09