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Dime Community Bancshares, Inc. Reports First Quarter 2022 Results

04/29/2022

Quarterly Net Income to Common Stockholders Increases by $55.6 Million on a Year-Over-Year Basis

Non-Interest-Bearing Deposits Increase to 38% of Total Deposits
Positioning the Company Well for a Rising Interest Rate Scenario

Net Interest Margin Expands by 5 Basis Points Versus the Prior Quarter

HAUPPAUGE, N.Y., April 29, 2022 (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 $32.7 million for the quarter ended March 31, 2022, or $0.82 per diluted common share, compared to net income available to common stockholders of $33.5 million for the quarter ended December 31, 2021, or $0.83 per diluted common share. For the quarter ended March 31, 2021, net loss available to common stockholders was $22.9 million, or $0.66 per diluted common share.

Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “During the first quarter, we executed well on each of our strategic plan priorities – growing non-interest-bearing deposits, managing our cost of funds appropriately and prioritizing net interest margin expansion, prudent expense discipline, and maintaining solid asset quality. Importantly, we recently announced several key hires in our lending division by capitalizing on merger-related disruption in our marketplace. As the year progresses, we expect loan growth and non-interest income to pick-up. Our high level of non-interest-bearing deposits, coupled with a balance sheet that does not rely on wholesale leverage, positions us well for a rising interest rate scenario.”

Highlights for the First Quarter of 2022 Included:

  • The non-interest-bearing deposits to total deposits ratio increased to 37.9% at March 31, 2022;
  • The cost of deposits declined to 0.10% during the first quarter of 2022;     
  • The net interest margin expanded by 5 basis points versus the linked quarter;
  • Total loans held for investment, net, excluding Paycheck Protection Program (“PPP”) loans increased by 2% on an annualized basis versus the linked quarter;
  • Non-interest expenses for the first quarter of 2022 were down 2% versus the linked quarter;
  • The Company repurchased 505,005 shares of its common stock, which represented approximately 1.3% of shares outstanding at the beginning of the period, at a weighted average price of $34.44 per share; and
  • Non-performing assets and loans 90 days past due and accruing declined by 14% versus the linked quarter and represented only 0.31% of total assets as of March 31, 2022.

Management’s Discussion of Quarterly Operating Results

The Company’s results of operations for the first quarter of 2022 and fourth quarter of 2021 include income for the full quarter from the merger with Bridge Bancorp, Inc. (“Bridge”), compared to two months for the first quarter of 2021 following the completion of the merger on February 1, 2021.

Net Interest Income

Net interest income for the first quarter of 2022 was $89.1 million compared to $91.7 million for the fourth quarter of 2021 and $77.8 million for the first quarter of 2021.

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

                     
(Dollars in thousands)   Q1 2022   Q4 2021   Q1 2021  
Net interest income   $ 89,109     $ 91,686     $ 77,841    
Less: Net interest income on PPP loans     (396 )     (539 )     (4,092 )  
Adjusted net interest income excluding PPP loans (non-GAAP)   $ 88,713     $ 91,147     $ 73,749    
                     
Average interest-earning assets   $ 11,333,805     $ 11,582,086     $ 10,057,682    
Average PPP loan balances     (46,807 )     (96,065 )     (1,020,910 )  
Adjusted average interest-earning assets excluding PPP loans (non-GAAP)   $ 11,286,998     $ 11,486,021     $ 9,036,772    
                     
NIM (1)     3.19   %     3.14   %   3.14   %
Adjusted NIM excluding PPP loans (non-GAAP) (2)     3.19   %     3.15   %   3.31   %
                     
Adjusted net interest income excluding PPP loans (non-GAAP)   $ 88,713     $ 91,147     $ 73,749    
Less: Purchase accounting accretion on loans ("PAA")     (50 )     625       (1,333 )  
Adjusted net interest income excluding PPP loans and PAA on loans (non-GAAP)   $ 88,663     $ 91,772     $ 72,416    
Adjusted NIM excluding PPP loans and PAA on loans (non-GAAP) (3)     3.19   %     3.17   %   3.26   %

 

(1) NIM represents net interest income divided by average interest-earning assets.
(2) Adjusted NIM excluding PPP loans represents adjusted net interest income, which excludes net interest income on PPP loans divided by average interest-earning assets excluding PPP loans. The net interest income on PPP loans is calculated using interest income on the PPP balances less an assumed cost of funding the PPP loans, using the overall cost of funds of the Company.
(3) Adjusted NIM excluding PPP and PAA represents adjusted net interest income, which excludes net interest income on PPP loans and PAA, divided by adjusted average interest-earning assets excluding PPP loans.

Loan Portfolio

The ending weighted average rate (“WAR”)(1) on the total loan portfolio was 3.76% at March 31, 2022, a 3 basis point increase compared to the ending WAR on the total loan portfolio at December 31, 2021. Excluding the impact of PPP loans, the WAR on the loan portfolio was 3.77% at March 31, 2022, compared to 3.75% at December 31, 2021.

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

                                 
    March 31, 2022   December 31, 2021   March 31, 2021  
($ in thousands)      Balance      WAR      Balance      WAR      Balance      WAR  
Loans held for investment balances at period end:                                
Commercial and industrial ("C&I")   $ 888,056   4.19 %   $ 867,542   4.08 % $ 898,533   4.26 %
Owner-occupied commercial real estate     1,016,804   4.04     1,030,240   4.05     948,101   4.19  
Business loans     1,904,860   4.11     1,897,782   4.06     1,846,634   4.22  
One-to-four family residential, including condominium and cooperative apartment     669,099   3.53     669,282   3.63     693,548   3.79  
Multifamily residential and residential mixed-use (2)(3)     3,371,267   3.56     3,356,346   3.56     3,589,074   3.60  
Non-owner-occupied commercial real estate     2,930,114   3.73     2,915,708   3.69     2,665,029   3.72  
Acquisition, development, and construction     329,349   4.63     322,628   4.53     253,837   4.85  
Other loans     12,207   6.52     16,898   5.85     23,912   4.95  
Loans held for investment excluding PPP     9,216,896   3.77     9,178,644   3.75     9,072,034   3.82  
PPP     32,953   1.00     66,017   1.00     1,434,064   1.00  
Total loans held for investment including PPP   $ 9,249,849   3.76 %   $ 9,244,661   3.73 % $ 10,506,098   3.43 %

 

(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 amount of loans in the category.
(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.

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

                     
       
($ in millions)      Q1 2022      Q4 2021      Q1 2021  
Loan originations, excluding PPP   $ 480.4   $ 463.9   $ 334.5  

Deposits

Total deposits decreased by $28.9 million on a linked quarter basis to $10.43 billion at March 31, 2022. The decline in total deposits was primarily due to the Bank not renewing higher-cost certificates of deposit accounts and maintaining pricing discipline on consumer money market accounts.

CEO O’Connor stated, “The weighted-average rate on our deposit portfolio declined to 0.09% at March 31, 2022. We continue to have strong success in growing non-interest-bearing deposit balances from our business customers.”

Non-interest-bearing deposits increased $33.2 million during the first quarter of 2022 to $3.95 billion at March 31, 2022, representing 37.9% of total deposits.

Outlined below are certificates of deposit balances set to mature in 2022 for the quarter ended as indicated.

             
Certificates of deposit set to mature in 2022      
($ in thousands)      Balance      WAR     
Q2 2022   $ 320,775   0.57 %  
Q3 2022     183,568   0.26  
Q4 2022     74,898   0.42  

Non-Interest Income

Non-interest income (loss) was $7.2 million during the first quarter of 2022, $10.2 million during the fourth quarter of 2021, and $(7.4) million during the first quarter of 2021. Excluding net gain on sale of securities and other assets, adjusted non-interest income was $9.2 million during the fourth quarter of 2021. Excluding the loss on termination of derivatives and net gain on sale of securities and other assets, adjusted non-interest income was $8.4 million during the first quarter of 2021 (see “Non-GAAP Reconciliation” table at the end of this news release).

CEO O’Connor stated, “Given our current pipelines, we expect the level of customer-related loan swap revenue and SBA gain on sale revenue to pick-up starting in the second quarter of the year.”

Non-Interest Expense

Total non-interest expense was $49.9 million during the first quarter of 2022, $50.8 million during the fourth quarter of 2021, and $82.8 million during the first quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, and amortization of other intangible assets, adjusted non-interest expense was $48.7 million during the fourth quarter of 2021. Excluding the impact of merger expenses and transaction costs, loss on extinguishment of debt, curtailment loss, and amortization of other intangible assets, adjusted non-interest expense was $41.4 million during the first quarter of 2021 (see “Non-GAAP Reconciliation” table at the end of this news release).

The ratio of non-interest expense to average assets was 1.64% during the first quarter of 2022, compared to 1.64% during the linked quarter and 3.11% for the first quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, loss on extinguishment of debt, curtailment loss, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.57% during the linked quarter and 1.55% for the first quarter of 2021 (see “Non-GAAP Reconciliation” table at the end of this news release).

The efficiency ratio was 51.8% during the first quarter of 2022, compared to 49.9% during the linked quarter and 117.5% during the first quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, loss on extinguishment of debt, curtailment loss, amortization of other intangible assets, loss on termination of derivatives, and net gain on sale of securities and other assets, the adjusted efficiency ratio was 48.2% during the linked quarter and 48.0% during the first quarter of 2021 (see “Non-GAAP Reconciliation” table at the end of this news release).

Income Tax Expense

The reported effective tax rate for the first quarter of 2022 was 28.1%, compared to 30.9% for the fourth quarter of 2021, and 25.2% for the first quarter of 2021.

Credit Quality

Non-performing loans at March 31, 2022 were $36.0 million, or 0.39% of total loans.

A credit loss recovery of $1.6 million was recorded during the first quarter of 2022, compared to a credit loss recovery of $132 thousand during the fourth quarter of 2021, and a credit loss provision of $15.8 million during the first quarter of 2021. The credit loss recovery was associated with the improvement in forecasted macroeconomic conditions as well as a reduction in reserves on individually evaluated loans.

The allowance for credit losses as a percentage of total loans was 0.86% at March 31, 2022 as compared to 0.91% at December 31, 2021 and 0.93% at March 31, 2021.

Capital Management

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements.

CEO O’Connor commented, “During the first quarter, we continued to execute on our share repurchase program and we repurchased $17.4 million of common stock. Our Tier 1 Risk-Based Capital Ratio increased by 7 basis points in the quarter to 10.76%. Our strong balance sheet and internal stress testing analyses continue to provide support for future capital return to shareholders.”

Dividends per common share were $0.24 during the first quarter of 2022.

Book value per common share was $26.32 at March 31, 2022 compared to $26.98 at December 31, 2021. Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by number of shares outstanding) was $22.18 at March 31, 2022 compared to $22.87 at December 31, 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release). The linked quarter declines in book value per share and tangible common book value per share were primarily due to the increase in the accumulated other comprehensive loss component of stockholders’ equity. The accumulated other comprehensive loss component of stockholders’ equity increased on a linked quarter basis due to the increase in market interest rates over the course of the first quarter of 2022.

Earnings Call Information

The Company will conduct a conference call at 8:30 a.m. (ET) on April 29, 2022, during which CEO O’Connor will discuss the Company’s first quarter 2022 financial performance, with a question and answer session to follow. Dial-in information for the live call is 1-844-200-6205. Upon dialing in, request to be joined into the 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://events.q4inc.com/attendee/980319168. Dial-in information for the replay is 1-866-813-9403 using access code 178273. Replay will be available beginning on April 29, 2022 at 10:30 a.m. through May 13, 2022 at 11:59 p.m.

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 $12.0 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 "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; 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 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; 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. Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees work remotely. 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, 
    2022
  2021
  2021
Assets:                    
Cash and due from banks   $ 432,994     $ 393,722     $ 676,723  
Securities available-for-sale, at fair value     1,277,036       1,563,711       1,152,493  
Securities held-to-maturity     383,922       179,309        
Loans held for sale     17,053       5,493       23,704  
Loans held for investment, net:                   
C&I     888,056       867,542       898,533  
Owner-occupied commercial real estate     1,016,804       1,030,240       948,101  
Total business loans     1,904,860       1,897,782       1,846,634  
One-to-four family and cooperative/condominium apartment     669,099       669,282       693,548  
Multifamily residential and residential mixed-use (1)(2)     3,371,267       3,356,346       3,589,074  
Non-owner-occupied commercial real estate     2,930,114       2,915,708       2,665,029  
Acquisition, development, and construction     329,349       322,628       253,837  
Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans     32,953       66,017       1,434,064  
Other loans     12,207       16,898       23,912  
Allowance for credit losses     (79,615 )     (83,853 )     (98,200 )
Total loans held for investment, net     9,170,234       9,160,808       10,407,898  
Premises and fixed assets, net     49,940       50,368       53,829  
Premises held for sale     556       556        
Restricted stock     38,898       37,732       45,063  
Bank Owned Life Insurance ("BOLI")     297,628       295,789       251,521  
Goodwill     155,797       155,797       155,339  
Other intangible assets     7,776       8,362       10,627  
Operating lease assets     61,467       64,258       69,094  
Derivative assets     71,826       45,086       45,760  
Accrued interest receivable     38,456       40,149       51,100  
Other assets     74,662       65,224       75,477  
Total assets   $ 12,078,245     $ 12,066,364     $ 13,018,628  
Liabilities:                   
Non-interest-bearing checking   $ 3,953,627     $ 3,920,423     $ 3,538,936  
Interest-bearing checking     902,360       905,717       1,023,164  
Savings     1,376,092       1,158,040       1,078,687  
Money market     3,416,249       3,621,552       3,629,709  
Certificates of deposit     781,775       853,242       1,540,316  
Total deposits     10,430,103       10,458,974       10,810,812  
FHLBNY advances     50,000       25,000       533,865  
Other short-term borrowings     2,853       1,862       126,763  
Subordinated debt, net     197,050       197,096       197,234  
Derivative cash collateral     64,450              
Operating lease liabilities     63,600       66,103       71,249  
Derivative liabilities     60,586       40,728       41,816  
Other liabilities     54,316       83,981       64,065  
Total liabilities     10,922,958       10,873,744       11,845,804  
Stockholders' equity:                   
Preferred stock, Series A     116,569       116,569       116,569  
Common stock     416       416       416  
Additional paid-in capital     494,969       494,125       492,431  
Retained earnings     677,990       654,726       574,297  
Accumulated other comprehensive (loss) income, net of deferred taxes     (49,380 )     (6,181 )     531  
Unearned equity awards     (10,562 )     (7,842 )     (10,107 )
Treasury stock, at cost     (74,715 )     (59,193 )     (1,313 )
Total stockholders' equity     1,155,287       1,192,620       1,172,824  
Total liabilities and stockholders' equity   $ 12,078,245     $ 12,066,364     $ 13,018,628  

 

(1) Includes loans underlying multifamily 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)

                   
    Three Months Ended
       March 31,       December 31,       March 31, 
    2022
  2021
  2021
Interest income:                   
Loans   $ 86,420     $ 89,301     $ 81,382  
Securities     7,131       7,097       4,380  
Other short-term investments     368       414       993  
Total interest income     93,919       96,812       86,755  
Interest expense:                   
Deposits and escrow     2,531       2,861       5,298  
Borrowed funds     2,278       2,265       3,616  
Derivative cash collateral     1              
Total interest expense     4,810       5,126       8,914  
Net interest income     89,109       91,686       77,841  
(Credit) provision for credit losses     (1,592 )     (132 )     15,779  
Net interest income after (credit) provision     90,701       91,818       62,062  
Non-interest income:                   
Service charges and other fees     4,058       4,621       2,920  
Title fees     421       735       433  
Loan level derivative income     6       113       1,792  
BOLI income     1,839       1,890       1,339  
Gain on sale of SBA loans     242       851       164  
Gain on sale of residential loans     148       225       723  
Net gain on equity securities                 131  
Net gain on sale of securities and other assets           975       710  
Loss on termination of derivatives                 (16,505 )
Other     489       769       910  
Total non-interest income (loss)     7,203       10,179       (7,383 )
Non-interest expense:                   
Salaries and employee benefits     30,834       27,638       24,819  
Occupancy and equipment     7,584       7,784       6,977  
Data processing costs     3,805       4,506       3,528  
Marketing     1,295       1,959       860  
Professional services     2,094       2,130       1,865  
Federal deposit insurance premiums     1,150       1,031       939  
Loss on extinguishment of debt                 1,594  
Curtailment loss                 1,543  
Merger expenses and transaction costs           2,574       37,942  
Branch restructuring           (1,118 )      
Amortization of other intangible assets     586       715       357  
Other     2,540       3,610       2,381  
Total non-interest expense     49,888       50,829       82,805  
Income (loss) before taxes     48,016       51,168       (28,126 )
Income tax expense (benefit)     13,485       15,811       (7,092 )
Net income (loss)     34,531       35,357       (21,034 )
Preferred stock dividends     1,821       1,821       1,821  
Net income (loss) available to common stockholders   $ 32,710     $ 33,536     $ (22,855 )
Earnings per common share ("EPS"):                   
Basic   $ 0.82     $ 0.83     $ (0.66 )
Diluted   $ 0.82     $ 0.83     $ (0.66 )
                   
Average common shares outstanding for diluted EPS     39,251,246       39,876,825       34,262,005  


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,      
    2022   2021   2021
 
Per Share Data:                    
Reported EPS (Diluted)   $ 0.82   $ 0.83   $ (0.66 )  
Cash dividends paid per common share     0.24     0.24     0.24    
Book value per common share     26.32     26.98     25.43    
Tangible common book value per share (1)     22.18     22.87     21.43    
Common shares outstanding     39,460     39,878     41,536    
Dividend payout ratio     29.27 %     28.92 %   (36.36 ) %
                     
Performance Ratios (Based upon Reported Net Income):                     
Return on average assets     1.13 %     1.14 %   (0.79 ) %
Return on average equity     11.53     11.67     (8.18 )  
Return on average tangible common equity (1)     14.44     14.61     (11.58 )  
Net interest margin     3.19     3.14     3.14    
Non-interest expense to average assets     1.64     1.64     3.11    
Efficiency ratio     51.8     49.9     117.5    
Effective tax rate     28.08     30.90     25.22    
                     
Balance Sheet Data:                     
Average assets   $ 12,199,721   $ 12,419,184   $ 10,666,240    
Average interest-earning assets     11,333,805     11,582,086     10,057,682    
Average tangible common equity (1)     916,971     931,503     781,355    
Loan-to-deposit ratio at end of period     88.7     88.4     97.2    
                     
Capital Ratios and Reserves - Consolidated: (3)                     
Tangible common equity to tangible assets (1)     7.35 %     7.66 %   6.93   %
Tangible equity to tangible assets (1)     8.32     8.64     7.83    
Tier 1 common equity ratio     9.56     9.49     9.65    
Tier 1 risk-based capital ratio     10.76     10.69     10.91    
Total risk-based capital ratio     13.48     13.45     14.04    
Tier 1 leverage ratio     8.65     8.46     9.62    
CRE consolidated concentration ratio (2)     519     519     517    
Allowance for credit losses/ Total loans     0.86     0.91     0.93    
Allowance for credit losses/ Non-performing loans     221.39     208.04     276.24    

 

(1) See "Non-GAAP Reconciliation" table for reconciliation of tangible equity, tangible common equity, and tangible assets.
(2) The 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, 2022 amounts are preliminary pending completion and filing of the Company’s regulatory reports.
(3) March 31, 2022 amounts are preliminary pending completion and filing of the Company’s regulatory reports.



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

                                                   
    Three Months Ended  
    March 31, 2022   December 31, 2021   March 31, 2021  
                            Average                     Average                  Average  
    Average         Yield/   Average         Yield/   Average         Yield/  
    Balance   Interest   Cost   Balance   Interest   Cost   Balance   Interest   Cost  
Assets:                                                     
Interest-earning assets:                                                     
Real estate loans   $ 8,296,732   $ 76,437   3.74 %   $ 8,293,470   $ 78,367   3.75 % $ 7,068,571   $ 66,412   3.81 %
Commercial and industrial loans     869,283     9,369   4.37     873,273     10,119   4.60     703,067     9,567   5.52  
SBA PPP loans     46,807     417   3.61     96,065     583   2.41     1,020,910     5,049   2.01  
Other loans     15,658     197   5.10     18,385     232   5.01     16,602     354   8.65  
Securities     1,726,189     7,131   1.68     1,729,191     7,097   1.63     865,192     4,380   2.05  
Other short-term investments     379,136     368   0.39     571,702     414   0.29     383,340     993   1.05  
Total interest-earning assets     11,333,805     93,919   3.36 %     11,582,086     96,812   3.32 %   10,057,682     86,755   3.50 %
Non-interest-earning assets     865,916                 837,098               608,558            
Total assets   $ 12,199,721               $ 12,419,184             $ 10,666,240            
                                                   
Liabilities and Stockholders' Equity:                                                     
Interest-bearing liabilities:                                                     
Interest-bearing checking   $ 870,889   $ 367   0.17 %   $ 962,597   $ 455   0.19 % $ 662,273   $ 311   0.19 %
Money market     3,632,438     973   0.11     3,652,681     1,087   0.12     2,893,723     2,026   0.28  
Savings     1,256,701     207   0.07     1,174,719     108   0.04     863,409     207   0.10  
Certificates of deposit     824,883     984   0.48     915,210     1,211   0.52     1,522,017     2,754   0.73  
Total interest-bearing deposits     6,584,911     2,531   0.16     6,705,207     2,861   0.17     5,941,422     5,298   0.36  
FHLBNY advances     33,889     77   0.92     25,000     61   0.97     853,162     1,711   0.81  
Subordinated debt, net     197,080     2,201   4.53     197,126     2,204   4.44     168,607     1,902   4.57  
Other short-term borrowings     2,459           2,484           15,021     3   0.08  
Total borrowings     233,428     2,278   3.96     224,610     2,265   4.00     1,036,790     3,616   1.41  
Derivative cash collateral     14,335     1   0.03                      
Total interest-bearing liabilities     6,832,674     4,810   0.29 %     6,929,817     5,126   0.29 %   6,978,212     8,914   0.52 %
Non-interest-bearing checking     3,979,741                 4,096,046               2,494,630            
Other non-interest-bearing liabilities     189,843                 181,074               164,859            
Total liabilities     11,002,258                 11,206,937               9,637,701            
Stockholders' equity     1,197,463                 1,212,247               1,028,539            
Total liabilities and stockholders' equity   $ 12,199,721               $ 12,419,184             $ 10,666,240            
Net interest income          $ 89,109              $ 91,686             $ 77,841      
Net interest rate spread                 3.07 %               3.03 %             2.98 %
Net interest margin                 3.19 %               3.14 %               3.14 %
Deposits (including non-interest-bearing checking accounts)   $ 10,564,652   $ 2,531   0.10 %   $ 10,801,253   $ 2,861   0.11 % $ 8,436,052   $ 5,298   0.25 %


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   2022
  2021
  2021
Non-performing loans ("NPLs") (1)                   
One-to-four family residential, including condominium and cooperative apartment   $ 5,241     $ 7,623     $ 5,384  
Multifamily residential and residential mixed-use                 4,844  
Commercial real estate     4,972       5,053       10,595  
Acquisition, development, and construction     665             104  
C&I     25,000       27,266       14,523  
Other     84       365       99  
Total Non-accrual loans   $ 35,962     $ 40,307     $ 35,549  
Total Non-performing assets ("NPAs")   $ 35,962     $ 40,307     $ 35,549  
                   
Loans 90 days delinquent and accruing ("90+ Delinquent")                   
One-to-four family residential, including condominium and cooperative apartment   $ 341     $ 1,945     $ 45  
Multifamily residential and residential mixed-use                 2,871  
Commercial real estate                 2,259  
Acquisition, development, and construction                  
C&I     839       1,056       3,652  
Other                  
90+ Delinquent   $ 1,180     $ 3,001     $ 8,827  
                   
NPAs and 90+ Delinquent   $ 37,142     $ 43,308     $ 44,376  
                   
NPAs and 90+ Delinquent / Total assets     0.31 %     0.36 %     0.34 %
Net charge-offs (recoveries) ("NCOs")   $ 2,583     $ (108 )   $ 4,275  
NCOs / Average loans (1)     0.11 %     0.00 %     0.19 %
                   

      (1)   Excludes 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 provide 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 Company’s merger with Bridge, as well as branch restructuring:  

                     
    Three Months Ended  
       March 31,       December 31,       March 31,      
    2022   2021
  2021
 
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders                    
Reported net income (loss) available to common stockholders   $ 32,710   $ 33,536     $ (22,855 )  
Adjustments to net income (loss) (1):                     
Provision for credit losses - Non-PCD loans (double-count)               20,278    
Net gain on sale of securities and other assets         (975 )     (710 )  
Loss on termination of derivatives               16,505    
Loss on extinguishment of debt               1,594    
Curtailment loss               1,543    
Merger expenses and transaction costs (2)         2,574       37,942    
Branch restructuring         (1,118 )        
Income tax effect of adjustments and other tax adjustments         (234 )     (21,848 )  
Adjusted net income available to common stockholders (non-GAAP)   $ 32,710   $ 33,783     $ 32,449    
                     
Adjusted Ratios (Based upon non-GAAP as calculated above)                    
Adjusted EPS (Diluted)   $ 0.82   $ 0.84     $ 0.94    
Adjusted return on average assets     1.13 %     1.15   %   1.29   %
Adjusted return on average equity     11.53     11.75       13.32    
Adjusted return on average tangible common equity     14.44     14.72       16.74    
Adjusted non-interest expense to average assets     1.62     1.57       1.55    
Adjusted efficiency ratio     51.2     48.2       48.0    

(1)    Adjustments to net income are taxed at the Company's statutory tax rate of approximately 31% unless otherwise noted.
(2)    Certain merger expenses and transaction costs are non-taxable expense.

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,  
      2022     2021     2021  
Operating expense as a % of average assets - as reported     1.64   %     1.64   %   3.11   %
Loss on extinguishment of debt                 (0.06 )  
Curtailment loss                 (0.06 )  
Merger expenses and transaction costs           (0.08 )     (1.43 )  
Branch restructuring           0.03          
Amortization of other intangible assets     (0.02 )     (0.02 )     (0.01 )  
Adjusted operating expense as a % of average assets (non-GAAP)     1.62       1.57       1.55    

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,     
    2022
  2021
  2021
 
Efficiency ratio - as reported (non-GAAP) (1)        51.8   %     49.9   %   117.5   %
Non-interest expense - as reported   $ 49,888     $ 50,829     $ 82,805    
Less: Merger expenses and transaction costs           (2,574 )     (37,942 )  
Less: Branch restructuring           1,118          
Less: Loss on extinguishment of debt                 (1,594 )  
Less: Curtailment loss                 (1,543 )  
Less: Amortization of other intangible assets     (586 )     (715 )     (357 )  
Adjusted non-interest expense (non-GAAP)   $ 49,302     $ 48,658     $ 41,369    
Net interest income - as reported   $ 89,109     $ 91,686     $ 77,841    
Non-interest income (loss) - as reported   $ 7,203     $ 10,179     $ (7,383 )  
Less: Net gain on sale of securities and other assets           (975 )     (710 )  
Less: Loss on termination of derivatives                 16,505    
Adjusted non-interest income (non-GAAP)   $ 7,203     $ 9,204     $ 8,412    
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)   $ 96,312     $ 100,890     $ 86,253    
Adjusted efficiency ratio (non-GAAP) (2)     51.2   %     48.2   %   48.0   %

_________________________

(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 (loss).
(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, 
    2022
  2021
  2021
Reconciliation of Tangible Assets:                  
Total assets   $ 12,078,245     $ 12,066,364     $ 13,018,628  
Less:                  
Goodwill     (155,797 )     (155,797 )     (155,339 )
Other intangible assets     (7,776 )     (8,362 )     (10,627 )
Tangible assets (non-GAAP)   $ 11,914,672     $ 11,902,205     $ 12,852,662  
                   
Reconciliation of Tangible Common Equity - Consolidated:                  
Total stockholders' equity   $ 1,155,287     $ 1,192,620     $ 1,172,824  
Less:                  
Goodwill     (155,797 )     (155,797 )     (155,339 )
Other intangible assets     (7,776 )     (8,362 )     (10,627 )
Tangible equity (non-GAAP)     991,714       1,028,461       1,006,858  
Less:                  
Preferred stock, net     (116,569 )     (116,569 )     (116,569 )
Tangible common equity (non-GAAP)   $ 875,145     $ 911,892     $ 890,289  
                   
Common shares outstanding     39,460       39,878       41,536  
                   
Tangible common equity to tangible assets (non-GAAP)     7.35   %     7.66   %   6.93  
Tangible equity to tangible assets (non-GAAP)     8.32       8.64       7.83  
                   
Book value per share   $ 26.32     $ 26.98     $ 25.43  
Tangible common book value per share (non-GAAP)     22.18       22.87       21.43  

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Source: Dime Community Bancshares, Inc.

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