Dime Community Bancshares, Inc. Reports Second Quarter 2024 Results With Earnings Per Share Increasing By 5% Versus the Prior Quarter
Dime Community Bancshares (NASDAQ: DCOM) reported strong Q2 2024 results, with earnings per share increasing 5% from the previous quarter. Key highlights include:
- Core deposits grew by $302.4 million
- Net interest margin expanded by 20 basis points to 2.41%
- Business loans increased by over $200 million
- Non-performing assets declined by 29%
- Total Risk Based Capital Ratio improved to 14.5% after a successful $65 million subordinated debt offering
The company's focus on core deposit growth and balance sheet diversification is yielding positive results. The Private and Commercial Bank's deposit-gathering groups have grown their portfolio to approximately $1 billion, while investments in Middle Market C&I lending are driving business loan growth.
Dime Community Bancshares (NASDAQ: DCOM) ha riportato risultati solidi nel secondo trimestre del 2024, con un aumento del 5% dell'utile per azione rispetto al trimestre precedente. I punti salienti includono:
- I depositi core sono aumentati di 302,4 milioni di dollari
- Il margine di interesse netto è cresciuto di 20 punti base, raggiungendo il 2,41%
- I prestiti alle imprese sono aumentati di oltre 200 milioni di dollari
- Gli attivi non performanti sono diminuiti del 29%
- Il rapporto totale di capitale a rischio è migliorato al 14,5% dopo un'emissione di debito subordinato di 65 milioni di dollari
Il focus dell'azienda sulla crescita dei depositi core e sulla diversificazione del bilancio sta producendo risultati positivi. I gruppi di raccolta depositi della Banca Privata e Commerciale hanno ampliato il loro portafoglio a circa 1 miliardo di dollari, mentre gli investimenti nel prestito C&I per il mercato medio stanno stimolando la crescita dei prestiti alle imprese.
Dime Community Bancshares (NASDAQ: DCOM) reportó resultados sólidos en el segundo trimestre de 2024, con un aumento del 5% en las ganancias por acción en comparación con el trimestre anterior. Los puntos destacados incluyen:
- Los depósitos core crecieron en 302.4 millones de dólares
- El margen de interés neto se expandió en 20 puntos base, alcanzando el 2.41%
- Los préstamos comerciales aumentaron en más de 200 millones de dólares
- Los activos no productivos disminuyeron en un 29%
- La relación total de capital basada en riesgos mejoró hasta el 14.5% tras una exitosa emisión de deuda subordinada de 65 millones de dólares
El enfoque de la empresa en el crecimiento de depósitos core y en la diversificación del balance está dando resultados positivos. Los grupos de obtención de depósitos del Banco Privado y Comercial han aumentado su cartera a aproximadamente 1 mil millones de dólares, mientras que las inversiones en préstamos C&I para el mercado medio están impulsando el crecimiento de los préstamos comerciales.
Dime Community Bancshares (NASDAQ: DCOM)는 2024년 2분기 강력한 실적을 보고했으며, 주당 순이익이 이전 분기 대비 5% 증가했습니다. 주요 하이라이트는 다음과 같습니다:
- 핵심 예금이 3억 2천만 달러 증가함
- 순이자 마진이 20bp 증가하여 2.41%에 도달함
- 기업 대출이 2억 달러 이상 증가함
- 부실 자산이 29% 감소함
- 총 위험 기반 자본 비율이 1,450bp로 개선됨 (6천5백만 달러의 자본확충을 통해)
회사는 핵심 예금 성장과 재무제표의 다양화에 집중하고 있으며 긍정적인 결과를 얻고 있습니다. 개인 및 상업 은행의 예금 모집 그룹은 포트폴리오를 약 10억 달러로 늘렸으며, 중소기업 C&I 대출에 대한 투자 역시 기업 대출 성장을 이끌고 있습니다.
Dime Community Bancshares (NASDAQ: DCOM) a rapporté des résultats solides pour le deuxième trimestre 2024, avec un bénéfice par action en hausse de 5% par rapport au trimestre précédent. Les principaux points saillants incluent :
- Les dépôts de base ont augmenté de 302,4 millions de dollars
- La marge d'intérêt nette a augmenté de 20 points de base pour atteindre 2,41%
- Les prêts aux entreprises ont augmenté de plus de 200 millions de dollars
- Les actifs non performants ont diminué de 29%
- Le ratio de capital total basé sur les risques s'est amélioré à 14,5% suite à une émission réussie de dette subordonnée de 65 millions de dollars
Le focus de l'entreprise sur la croissance des dépôts de base et la diversification de son bilan produit des résultats positifs. Les groupes de collecte de dépôts de la Banque Privée et Commerciale ont élargi leur portefeuille à environ 1 milliard de dollars, tandis que des investissements dans les prêts C&I pour le marché intermédiaire stimulent la croissance des prêts commerciaux.
Dime Community Bancshares (NASDAQ: DCOM) meldete starke Ergebnisse im 2. Quartal 2024, wobei der Gewinn pro Aktie um 5% im Vergleich zum vorherigen Quartal gestiegen ist. Zu den wichtigsten Höhepunkten gehören:
- Die Kern-Einlagen wuchsen um 302,4 Millionen US-Dollar
- Die Nettozinsmarge erweiterten sich um 20 Basispunkte auf 2,41%
- Die Geschäftskredite stiegen um über 200 Millionen US-Dollar
- Problematische Aktiva gingen um 29% zurück
- Die Gesamtkapitalquote verbesserte sich auf 14,5% nach einer erfolgreichen Ausgabe von nachrangigen Schulden über 65 Millionen US-Dollar
Der Fokus des Unternehmens auf das Wachstum der Kern-Einlagen und die Diversifizierung der Bilanz zeigt positive Ergebnisse. Die Einlagensammelgruppen der Privat- und Geschäftsbank haben ihr Portfolio auf etwa 1 Milliarde US-Dollar ausgedehnt, während Investitionen in C&I-Kredite im Mittelstandsbereich das Wachstum von Geschäftskrediten vorantreiben.
- None.
- None.
Strong Core Deposit Growth Drives 20 Basis Points of Net Interest Margin Expansion
Deposit and Business Loan Growth Driven by Execution of Growth Plan;
Successfully Onboarded Eight New Deposit Groups in the Second Quarter
Subordinated Debt Offering Bolsters Total Capital Ratio to
HAUPPAUGE, N.Y., July 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
Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “We continue to execute on our growth plan, which prioritizes core deposit growth and diversifying our balance sheet. The deposit-gathering Groups in our Private and Commercial Bank have grown their portfolio to approximately
Highlights for the Second Quarter of 2024 Included:
- Core deposits (excluding brokered and time deposits) increased
$302.4 million compared to the first quarter of 2024; - The ratio of average non-interest-bearing deposits to average total deposits for the second quarter was
28% compared to27% for the first quarter of 2024; - The cost of total deposits declined by 1 basis point versus the prior quarter;
- Business loans increased by over
$200 million versus the prior quarter; - The net interest margin increased to
2.41% for the second quarter of 2024 compared to2.21% for the prior quarter; - Non-performing assets and loans 90 days past due declined by
29% versus the prior quarter and represented only0.18% of total assets as of June 30, 2024; - The Company raised
$65 million of gross proceeds from the issuance of subordinated notes in the second quarter; the offering increased the Company’s Total Risk Based Capital Ratio to14.5% .
Management’s Discussion of Quarterly Operating Results
Net Interest Income
Net interest income for the second quarter of 2024 was
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) | Q2 2024 | Q1 2024 | Q2 2023 | |||||||||
| Net interest income | $ | 75,502 | $ | 71,530 | $ | 80,219 | ||||||
| Purchase accounting amortization (accretion) on loans ("PAA") | (101 | ) | (82 | ) | 58 | |||||||
| Adjusted net interest income excluding PAA on loans (non-GAAP) | $ | 75,401 | $ | 71,448 | $ | 80,277 | ||||||
| Average interest-earning assets | $ | 12,624,556 | $ | 13,015,755 | $ | 12,888,522 | ||||||
| NIM (1) | 2.41 | % | 2.21 | % | 2.50 | % | ||||||
| Adjusted NIM excluding PAA on loans (non-GAAP) (2) | 2.40 | % | 2.21 | % | 2.50 | % | ||||||
(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.
During the quarter ended June 30, 2024, there was a recovery of interest income from a loan that was previously on non-accrual status in the amount of
Loan Portfolio
The ending weighted average rate (“WAR”) on the total loan portfolio was
Outlined below are loan balances and WARs for the quarter ended as indicated.
| June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||
| (Dollars in thousands) | Balance | WAR (1) | Balance | WAR (1) | Balance | WAR (1) | ||||||||||
| Loans held for investment balances at period end: | ||||||||||||||||
| Business loans (2) | $ | 2,530,896 | 6.92 | % | $ | 2,327,403 | 6.90 | % | $ | 2,250,108 | 6.56 | % | ||||
| One-to-four family residential, including condominium and cooperative apartment | 906,949 | 4.55 | 873,671 | 4.48 | 855,980 | 4.17 | ||||||||||
| Multifamily residential and residential mixed-use (3)(4) | 3,920,354 | 4.59 | 3,996,654 | 4.57 | 4,132,358 | 4.38 | ||||||||||
| Non-owner-occupied commercial real estate | 3,315,100 | 5.25 | 3,386,333 | 5.24 | 3,406,232 | 5.04 | ||||||||||
| Acquisition, development, and construction | 144,860 | 8.96 | 175,352 | 8.40 | 225,580 | 8.99 | ||||||||||
| Other loans | 6,699 | 3.39 | 5,170 | 7.10 | 6,157 | 6.74 | ||||||||||
| Loans held for investment | $ | 10,824,858 | 5.39 | % | $ | 10,764,583 | 5.34 | % | $ | 10,876,415 | 5.12 | % | ||||
(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 and owner-occupied commercial real estate 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) | Q2 2024 | Q1 2024 | Q2 2023 | ||||||
| Loan originations | $ | 162.4 | $ | 98.3 | $ | 296.6 | |||
Deposits and Borrowed Funds
Period end total deposits (including mortgage escrow deposits) at June 30, 2024 were
On June 28, 2024, the Company raised
Total Federal Home Loan Bank advances were
Non-Interest Income
Non-interest income was
Non-Interest Expense
Total non-interest expense was
Mr. Lubow commented, “The increase in non-interest expense on a year-over-year basis has been due to the significant investments and hires the Company has made in its Private and Commercial Bank, including the hiring and onboarding of 15 deposit-gathering Groups, and its Middle Market C&I Lending operations, including a new Healthcare vertical and a Not-for Profit vertical. The new bankers we have hired have a long runway ahead of them and over time we expect them to contribute meaningfully to the revenue growth of the Company.”
The ratio of non-interest expense to average assets was
The efficiency ratio was
Income Tax Expense
The reported effective tax rate for the second quarter of 2024 was
Credit Quality
Non-performing loans decreased
A credit loss provision of
Capital Management
The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of June 30, 2024. All risk-based regulatory capital ratios increased in the second quarter of 2024. Mr. Lubow commented, “Having fortified our capital base with the issuance of subordinated debt, we are well positioned to support all of our customers’ needs and capitalize on the significant disruption in our marketplace caused by various bank failures and mergers.”
Dividends per common share were
Book value per common share was
Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was
Earnings Call Information
The Company will conduct a conference call at 9:00 a.m. (ET) on Tuesday, July 23, 2024, during which CEO Lubow will discuss the Company’s second 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/vesm9tv4. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BIed4082edb56740ce983e3a3e5c43d5e5. 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 at https://edge.media-server.com/mmc/p/vesm9tv4.
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
(1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than
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; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; 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)
| June 30, | March 31, | December 31, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| Assets: | ||||||||||||
| Cash and due from banks | $ | 413,983 | $ | 370,852 | $ | 457,547 | ||||||
| Securities available-for-sale, at fair value | 819,222 | 859,216 | 886,240 | |||||||||
| Securities held-to-maturity | 588,000 | 589,331 | 594,639 | |||||||||
| Loans held for sale | 14,766 | 8,973 | 10,159 | |||||||||
| Loans held for investment, net: | ||||||||||||
| Business loans (1) | 2,530,896 | 2,327,403 | 2,310,379 | |||||||||
| One-to-four family and cooperative/condominium apartment | 906,949 | 873,671 | 889,236 | |||||||||
| Multifamily residential and residential mixed-use (2)(3) | 3,920,354 | 3,996,654 | 4,017,703 | |||||||||
| Non-owner-occupied commercial real estate | 3,315,100 | 3,386,333 | 3,381,842 | |||||||||
| Acquisition, development and construction | 144,860 | 175,352 | 168,513 | |||||||||
| Other loans | 6,699 | 5,170 | 5,755 | |||||||||
| Allowance for credit losses | (77,812 | ) | (76,068 | ) | (71,743 | ) | ||||||
| Total loans held for investment, net | 10,747,046 | 10,688,515 | 10,701,685 | |||||||||
| Premises and fixed assets, net | 36,054 | 44,501 | 44,868 | |||||||||
| Premises held for sale | — | — | 905 | |||||||||
| Restricted stock | 68,445 | 74,346 | 98,750 | |||||||||
| Bank Owned Life Insurance ("BOLI") | 354,761 | 352,277 | 349,816 | |||||||||
| Goodwill | 155,797 | 155,797 | 155,797 | |||||||||
| Other intangible assets | 4,467 | 4,753 | 5,059 | |||||||||
| Operating lease assets | 51,703 | 51,988 | 52,729 | |||||||||
| Derivative assets | 134,489 | 135,162 | 122,132 | |||||||||
| Accrued interest receivable | 55,588 | 55,369 | 55,666 | |||||||||
| Other assets | 104,442 | 110,012 | 100,013 | |||||||||
| Total assets | $ | 13,548,763 | $ | 13,501,092 | $ | 13,636,005 | ||||||
| Liabilities: | ||||||||||||
| Non-interest-bearing checking (excluding mortgage escrow deposits) | $ | 3,012,481 | $ | 2,819,481 | $ | 2,884,378 | ||||||
| Interest-bearing checking | 633,721 | 635,640 | 515,987 | |||||||||
| Savings (excluding mortgage escrow deposits) | 2,340,222 | 2,347,114 | 2,335,354 | |||||||||
| Money market | 3,607,090 | 3,440,083 | 3,125,996 | |||||||||
| Certificates of deposit | 1,382,271 | 1,555,157 | 1,607,683 | |||||||||
| Deposits (excluding mortgage escrow deposits) | 10,975,785 | 10,797,475 | 10,469,398 | |||||||||
| Non-interest-bearing mortgage escrow deposits | 52,647 | 101,229 | 61,121 | |||||||||
| Interest-bearing mortgage escrow deposits | 2 | 173 | 136 | |||||||||
| Total mortgage escrow deposits | 52,649 | 101,402 | 61,257 | |||||||||
| FHLBNY advances | 633,000 | 773,000 | 1,313,000 | |||||||||
| Other short-term borrowings | — | — | — | |||||||||
| Subordinated debt, net | 262,814 | 200,174 | 200,196 | |||||||||
| Derivative cash collateral | 130,090 | 132,900 | 108,100 | |||||||||
| Operating lease liabilities | 54,530 | 54,727 | 55,454 | |||||||||
| Derivative liabilities | 122,567 | 122,112 | 121,265 | |||||||||
| Other liabilities | 66,732 | 79,931 | 81,110 | |||||||||
| Total liabilities | 12,298,167 | 12,261,721 | 12,409,780 | |||||||||
| Stockholders' equity: | ||||||||||||
| Preferred stock, Series A | 116,569 | 116,569 | 116,569 | |||||||||
| Common stock | 416 | 416 | 416 | |||||||||
| Additional paid-in capital | 488,760 | 492,834 | 494,454 | |||||||||
| Retained earnings | 826,080 | 819,130 | 813,007 | |||||||||
| Accumulated other comprehensive loss ("AOCI"), net of deferred taxes | (82,780 | ) | (85,466 | ) | (91,579 | ) | ||||||
| Unearned equity awards | (12,023 | ) | (10,191 | ) | (8,622 | ) | ||||||
| Treasury stock, at cost | (86,426 | ) | (93,921 | ) | (98,020 | ) | ||||||
| Total stockholders' equity | 1,250,596 | 1,239,371 | 1,226,225 | |||||||||
| Total liabilities and stockholders' equity | $ | 13,548,763 | $ | 13,501,092 | $ | 13,636,005 | ||||||
(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 | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans | $ | 147,099 | $ | 143,565 | $ | 138,310 | $ | 290,664 | $ | 266,749 | ||||||||||
| Securities | 7,907 | 7,880 | 7,914 | 15,787 | 16,345 | |||||||||||||||
| Other short-term investments | 4,412 | 9,564 | 5,867 | 13,976 | 9,669 | |||||||||||||||
| Total interest income | 159,418 | 161,009 | 152,091 | 320,427 | 292,763 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits and escrow | 72,878 | 73,069 | 52,616 | 145,947 | 89,888 | |||||||||||||||
| Borrowed funds | 9,033 | 14,697 | 17,759 | 23,730 | 33,930 | |||||||||||||||
| Derivative cash collateral | 2,005 | 1,713 | 1,497 | 3,718 | 2,974 | |||||||||||||||
| Total interest expense | 83,916 | 89,479 | 71,872 | 173,395 | 126,792 | |||||||||||||||
| Net interest income | 75,502 | 71,530 | 80,219 | 147,032 | 165,971 | |||||||||||||||
| Provision (recovery) for credit losses | 5,585 | 5,210 | 892 | 10,795 | (2,756 | ) | ||||||||||||||
| Net interest income after provision (recovery) | 69,917 | 66,320 | 79,327 | 136,237 | 168,727 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Service charges and other fees | 3,972 | 4,544 | 4,856 | 8,516 | 8,670 | |||||||||||||||
| Title fees | 294 | 133 | 246 | 427 | 538 | |||||||||||||||
| Loan level derivative income | 1,085 | 406 | 2,437 | 1,491 | 5,570 | |||||||||||||||
| BOLI income | 2,484 | 2,461 | 2,852 | 4,945 | 5,015 | |||||||||||||||
| Gain on sale of Small Business Administration ("SBA") loans | 113 | 253 | 210 | 366 | 726 | |||||||||||||||
| Gain on sale of residential loans | 27 | 77 | 34 | 104 | 82 | |||||||||||||||
| Fair value change in equity securities and loans held for sale | (416 | ) | (842 | ) | (780 | ) | (1,258 | ) | (780 | ) | ||||||||||
| Net loss on sale of securities | — | — | — | — | (1,447 | ) | ||||||||||||||
| Gain on sale of other assets | 3,695 | 2,968 | — | 6,663 | — | |||||||||||||||
| Other | 554 | 467 | 550 | 1,021 | 1,032 | |||||||||||||||
| Total non-interest income | 11,808 | 10,467 | 10,405 | 22,275 | 19,406 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 32,184 | 32,037 | 29,900 | 64,221 | 56,534 | |||||||||||||||
| Severance | — | 42 | 481 | 42 | 506 | |||||||||||||||
| Occupancy and equipment | 7,409 | 7,368 | 7,144 | 14,777 | 14,517 | |||||||||||||||
| Data processing costs | 4,405 | 4,313 | 4,197 | 8,718 | 8,435 | |||||||||||||||
| Marketing | 1,637 | 1,497 | 1,488 | 3,134 | 2,937 | |||||||||||||||
| Professional services | 2,766 | 1,467 | 1,676 | 4,233 | 3,599 | |||||||||||||||
| Federal deposit insurance premiums | 2,250 | 2,239 | 1,874 | 4,489 | 3,747 | |||||||||||||||
| Loss on extinguishment of debt | — | 453 | — | 453 | — | |||||||||||||||
| Amortization of other intangible assets | 285 | 307 | 349 | 592 | 726 | |||||||||||||||
| Other | 4,758 | 2,788 | 5,077 | 7,546 | 8,660 | |||||||||||||||
| Total non-interest expense | 55,694 | 52,511 | 52,186 | 108,205 | 99,661 | |||||||||||||||
| Income before taxes | 26,031 | 24,276 | 37,546 | 50,307 | 88,472 | |||||||||||||||
| Income tax expense | 7,552 | 6,585 | 10,048 | 14,137 | 23,671 | |||||||||||||||
| Net income | 18,479 | 17,691 | 27,498 | 36,170 | 64,801 | |||||||||||||||
| Preferred stock dividends | 1,822 | 1,821 | 1,822 | 3,643 | 3,643 | |||||||||||||||
| Net income available to common stockholders | $ | 16,657 | $ | 15,870 | $ | 25,676 | $ | 32,527 | $ | 61,158 | ||||||||||
| Earnings per common share ("EPS"): | ||||||||||||||||||||
| Basic | $ | 0.43 | $ | 0.41 | $ | 0.66 | $ | 0.84 | $ | 1.58 | ||||||||||
| Diluted | $ | 0.43 | $ | 0.41 | $ | 0.66 | $ | 0.84 | $ | 1.58 | ||||||||||
| Average common shares outstanding for diluted EPS | 38,329,485 | 38,255,559 | 38,175,993 | 38,292,253 | 38,164,359 | |||||||||||||||
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 Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Per Share Data: | ||||||||||||||||
| Reported EPS (Diluted) | $ | 0.43 | $ | 0.41 | $ | 0.66 | $ | 0.84 | $ | 1.58 | ||||||
| Cash dividends paid per common share | 0.25 | 0.25 | 0.25 | 0.50 | 0.49 | |||||||||||
| Book value per common share | 28.97 | 28.84 | 27.99 | 28.97 | 27.99 | |||||||||||
| Tangible common book value per share (1) | 24.87 | 24.72 | 23.82 | 24.87 | 23.82 | |||||||||||
| Common shares outstanding | 39,148 | 38,932 | 38,803 | 39,148 | 38,803 | |||||||||||
| Dividend payout ratio | 58.14 | % | 60.98 | % | 37.88 | % | 59.52 | % | 31.01 | % | ||||||
| Performance Ratios (Based upon Reported Net Income): | ||||||||||||||||
| Return on average assets | 0.55 | % | 0.51 | % | 0.81 | % | 0.53 | % | 0.96 | % | ||||||
| Return on average equity | 5.88 | 5.68 | 9.03 | 5.78 | 10.75 | |||||||||||
| Return on average tangible common equity (1) | 6.88 | 6.64 | 11.04 | 6.76 | 13.30 | |||||||||||
| Net interest margin | 2.41 | 2.21 | 2.50 | 2.31 | 2.62 | |||||||||||
| Non-interest expense to average assets | 1.66 | 1.52 | 1.53 | 1.59 | 1.47 | |||||||||||
| Efficiency ratio | 63.8 | 64.0 | 57.6 | 63.9 | 53.8 | |||||||||||
| Effective tax rate | 29.01 | 27.13 | 26.76 | 28.10 | 26.76 | |||||||||||
| Balance Sheet Data: | ||||||||||||||||
| Average assets | $ | 13,418,441 | $ | 13,794,924 | $ | 13,658,068 | $ | 13,606,682 | $ | 13,554,483 | ||||||
| Average interest-earning assets | 12,624,556 | 13,015,755 | 12,888,522 | 12,820,156 | 12,787,441 | |||||||||||
| Average tangible common equity (1) | 979,611 | 968,719 | 940,098 | 974,165 | 927,616 | |||||||||||
| Loan-to-deposit ratio at end of period (2) | 98.2 | 98.8 | 103.4 | 98.2 | 103.4 | |||||||||||
| Capital Ratios and Reserves - Consolidated: (3) | ||||||||||||||||
| Tangible common equity to tangible assets (1) | 7.27 | % | 7.21 | % | 6.78 | % | ||||||||||
| Tangible equity to tangible assets (1) | 8.14 | 8.09 | 7.63 | |||||||||||||
| Tier 1 common equity ratio | 10.06 | 10.00 | 9.44 | |||||||||||||
| Tier 1 risk-based capital ratio | 11.17 | 11.11 | 10.50 | |||||||||||||
| Total risk-based capital ratio | 14.46 | 13.78 | 13.06 | |||||||||||||
| Tier 1 leverage ratio | 8.78 | 8.48 | 8.42 | |||||||||||||
| Consolidated CRE concentration ratio (4) | 499 | 534 | 555 | |||||||||||||
| Allowance for credit losses/ Total loans | 0.72 | 0.71 | 0.70 | |||||||||||||
| Allowance for credit losses/ Non-performing loans | 313.21 | 218.42 | 273.42 | |||||||||||||
(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) June 30, 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. The June 30, 2024 ratio 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 | |||||||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 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) | $ | 2,400,219 | $ | 42,933 | 7.19 | % | $ | 2,308,319 | $ | 39,224 | 6.83 | % | $ | 2,259,769 | $ | 36,715 | 6.52 | % | |||||||
| One-to-four family residential, including condo and coop | 886,037 | 9,968 | 4.52 | 886,588 | 9,770 | 4.43 | 828,324 | 8,661 | 4.19 | ||||||||||||||||
| Multifamily residential and residential mixed-use | 3,958,617 | 45,775 | 4.65 | 4,000,510 | 46,019 | 4.63 | 4,125,119 | 45,123 | 4.39 | ||||||||||||||||
| Non-owner-occupied commercial real estate | 3,359,004 | 44,728 | 5.36 | 3,371,438 | 44,776 | 5.34 | 3,337,689 | 42,559 | 5.11 | ||||||||||||||||
| Acquisition, development, and construction | 164,283 | 3,638 | 8.91 | 169,775 | 3,692 | 8.75 | 220,795 | 5,149 | 9.35 | ||||||||||||||||
| Other loans | 5,100 | 57 | 4.50 | 5,420 | 84 | 6.23 | 6,536 | 103 | 6.32 | ||||||||||||||||
| Securities | 1,537,487 | 7,907 | 2.07 | 1,578,330 | 7,880 | 2.01 | 1,642,057 | 7,914 | 1.93 | ||||||||||||||||
| Other short-term investments | 313,809 | 4,412 | 5.65 | 695,375 | 9,564 | 5.53 | 468,233 | 5,867 | 5.03 | ||||||||||||||||
| Total interest-earning assets | 12,624,556 | 159,418 | 5.08 | % | 13,015,755 | 161,009 | 4.98 | % | 12,888,522 | 152,091 | 4.73 | % | |||||||||||||
| Non-interest-earning assets | 793,885 | 779,169 | 769,546 | ||||||||||||||||||||||
| Total assets | $ | 13,418,441 | $ | 13,794,924 | $ | 13,658,068 | |||||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||
| Interest-bearing checking (2) | $ | 631,403 | $ | 1,499 | 0.95 | % | $ | 582,047 | $ | 1,223 | 0.85 | % | $ | 952,424 | $ | 3,081 | 1.30 | % | |||||||
| Money market | 3,495,989 | 33,193 | 3.82 | 3,359,884 | 30,638 | 3.67 | 2,713,816 | 18,284 | 2.70 | ||||||||||||||||
| Savings (2) | 2,336,202 | 23,109 | 3.98 | 2,368,946 | 22,810 | 3.87 | 2,279,670 | 17,376 | 3.06 | ||||||||||||||||
| Certificates of deposit | 1,393,678 | 15,077 | 4.35 | 1,655,882 | 18,398 | 4.47 | 1,546,257 | 13,875 | 3.60 | ||||||||||||||||
| Total interest-bearing deposits | 7,857,272 | 72,878 | 3.73 | 7,966,759 | 73,069 | 3.69 | 7,492,167 | 52,616 | 2.82 | ||||||||||||||||
| FHLBNY advances | 671,242 | 6,429 | 3.85 | 1,094,209 | 12,143 | 4.46 | 1,327,121 | 15,206 | 4.60 | ||||||||||||||||
| Subordinated debt, net | 202,232 | 2,604 | 5.18 | 200,188 | 2,553 | 5.13 | 200,254 | 2,553 | 5.11 | ||||||||||||||||
| Other short-term borrowings | — | — | — | 77 | 1 | 5.22 | 814 | — | — | ||||||||||||||||
| Total borrowings | 873,474 | 9,033 | 4.16 | 1,294,474 | 14,697 | 4.57 | 1,528,189 | 17,759 | 4.66 | ||||||||||||||||
| Derivative cash collateral | 145,702 | 2,005 | 5.53 | 130,166 | 1,713 | 5.29 | 120,542 | 1,497 | 4.98 | ||||||||||||||||
| Total interest-bearing liabilities | 8,876,448 | 83,916 | 3.80 | % | 9,391,399 | 89,479 | 3.83 | % | 9,140,898 | 71,872 | 3.15 | % | |||||||||||||
| Non-interest-bearing checking (2) | 3,042,382 | 2,909,776 | 3,043,899 | ||||||||||||||||||||||
| Other non-interest-bearing liabilities | 242,980 | 247,717 | 254,826 | ||||||||||||||||||||||
| Total liabilities | 12,161,810 | 12,548,892 | 12,439,623 | ||||||||||||||||||||||
| Stockholders' equity | 1,256,631 | 1,246,032 | 1,218,445 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 13,418,441 | $ | 13,794,924 | $ | 13,658,068 | |||||||||||||||||||
| Net interest income | $ | 75,502 | $ | 71,530 | $ | 80,219 | |||||||||||||||||||
| Net interest rate spread | 1.28 | % | 1.15 | % | 1.58 | % | |||||||||||||||||||
| Net interest margin | 2.41 | % | 2.21 | % | 2.50 | % | |||||||||||||||||||
| Deposits (including non-interest-bearing checking accounts) (2) | $ | 10,899,654 | $ | 72,878 | 2.69 | % | $ | 10,876,535 | $ | 73,069 | 2.70 | % | $ | 10,536,066 | $ | 52,616 | 2.00 | % | |||||||
(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 | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| Asset Quality Detail | 2024 | 2024 | 2023 | |||||||||
| Non-performing loans ("NPLs") | ||||||||||||
| Business loans (1) | $ | 20,287 | $ | 18,213 | $ | 23,470 | ||||||
| One-to-four family residential, including condominium and cooperative apartment | 3,884 | 3,689 | 3,305 | |||||||||
| Multifamily residential and residential mixed-use | — | — | — | |||||||||
| Non-owner-occupied commercial real estate | 15 | 15 | 15 | |||||||||
| Acquisition, development, and construction | 657 | 12,910 | 657 | |||||||||
| Other loans | — | — | 220 | |||||||||
| Total Non-accrual loans | $ | 24,843 | $ | 34,827 | $ | 27,667 | ||||||
| Total Non-performing assets ("NPAs") | $ | 24,843 | $ | 34,827 | $ | 27,667 | ||||||
| Total loans 90 days delinquent and accruing ("90+ Delinquent") | $ | — | $ | — | $ | — | ||||||
| NPAs and 90+ Delinquent | $ | 24,843 | $ | 34,827 | $ | 27,667 | ||||||
| NPAs and 90+ Delinquent / Total assets | 0.18 | % | 0.26 | % | 0.20 | % | ||||||
| Net charge-offs ("NCOs") | $ | 3,640 | $ | 739 | $ | 3,679 | ||||||
| NCOs / Average loans (2) | 0.14 | % | 0.03 | % | 0.14 | % | ||||||
(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 | Six Months Ended | ||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders | |||||||||||||||||||||
| Reported net income available to common stockholders | $ | 16,657 | $ | 15,870 | $ | 25,676 | $ | 32,527 | $ | 61,158 | |||||||||||
| Adjustments to net income (1): | |||||||||||||||||||||
| Fair value change in equity securities and loans held for sale | 416 | 842 | 780 | 1,258 | 780 | ||||||||||||||||
| Net (gain) loss on sale of securities and other assets | (3,695 | ) | (2,968 | ) | — | (6,663 | ) | 1,447 | |||||||||||||
| Severance | — | 42 | 481 | 42 | 506 | ||||||||||||||||
| Loss on extinguishment of debt | — | 453 | — | 453 | — | ||||||||||||||||
| Income tax effect of adjustments | 1,043 | 518 | (373 | ) | 1,561 | (809 | ) | ||||||||||||||
| Adjusted net income available to common stockholders (non-GAAP) | $ | 14,421 | $ | 14,757 | $ | 26,564 | $ | 29,178 | $ | 63,082 | |||||||||||
| Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above) | |||||||||||||||||||||
| Adjusted EPS (Diluted) | $ | 0.37 | $ | 0.38 | $ | 0.68 | $ | 0.75 | $ | 1.63 | |||||||||||
| Adjusted return on average assets | 0.48 | % | 0.48 | % | 0.83 | % | 0.48 | % | 0.98 | % | |||||||||||
| Adjusted return on average equity | 5.17 | 5.32 | 9.32 | 5.25 | 11.06 | ||||||||||||||||
| Adjusted return on average tangible common equity | 5.97 | 6.18 | 11.42 | 6.07 | 13.72 | ||||||||||||||||
| Adjusted non-interest expense to average assets | 1.65 | 1.50 | 1.51 | 1.57 | 1.45 | ||||||||||||||||
| Adjusted efficiency ratio | 65.9 | 64.7 | 56.2 | 65.4 | 52.5 | ||||||||||||||||
(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 | Six Months Ended | ||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Operating expense as a % of average assets - as reported | 1.66 | % | 1.52 | % | 1.53 | % | 1.59 | % | 1.47 | % | |||||||||||
| Loss on extinguishment of debt | — | (0.01 | ) | — | (0.01 | ) | — | ||||||||||||||
| Severance | — | — | (0.01 | ) | — | (0.01 | ) | ||||||||||||||
| Amortization of other intangible assets | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||||
| Adjusted operating expense as a % of average assets (non-GAAP) | 1.65 | % | 1.50 | % | 1.51 | % | 1.57 | % | 1.45 | % | |||||||||||
The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Efficiency ratio - as reported (non-GAAP) (1) | 63.8 | % | 64.0 | % | 57.6 | % | 63.9 | % | 53.8 | % | |||||||||||
| Non-interest expense - as reported | $ | 55,694 | $ | 52,511 | $ | 52,186 | $ | 108,205 | $ | 99,661 | |||||||||||
| Severance | — | (42 | ) | (481 | ) | (42 | ) | (506 | ) | ||||||||||||
| Loss on extinguishment of debt | — | (453 | ) | — | (453 | ) | — | ||||||||||||||
| Amortization of other intangible assets | (285 | ) | (307 | ) | (349 | ) | (592 | ) | (726 | ) | |||||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 55,409 | $ | 51,709 | $ | 51,356 | $ | 107,118 | $ | 98,429 | |||||||||||
| Net interest income - as reported | $ | 75,502 | $ | 71,530 | $ | 80,219 | $ | 147,032 | $ | 165,971 | |||||||||||
| Non-interest income - as reported | $ | 11,808 | $ | 10,467 | $ | 10,405 | $ | 22,275 | $ | 19,406 | |||||||||||
| Fair value change in equity securities and loans held for sale | 416 | 842 | 780 | 1,258 | 780 | ||||||||||||||||
| Net (gain) loss on sale of securities and other assets | (3,695 | ) | (2,968 | ) | — | (6,663 | ) | 1,447 | |||||||||||||
| Adjusted non-interest income (non-GAAP) | $ | 8,529 | $ | 8,341 | $ | 11,185 | $ | 16,870 | $ | 21,633 | |||||||||||
| Adjusted total revenues for adjusted efficiency ratio (non-GAAP) | $ | 84,031 | $ | 79,871 | $ | 91,404 | $ | 163,902 | $ | 187,604 | |||||||||||
| Adjusted efficiency ratio (non-GAAP) (2) | 65.9 | % | 64.7 | % | 56.2 | % | 65.4 | % | 52.5 | % | |||||||||||
(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):
| June 30, | March 31, | June 30, | |||||||||||
| 2024 | 2024 | 2023 | |||||||||||
| Reconciliation of Tangible Assets: | |||||||||||||
| Total assets | $ | 13,548,763 | $ | 13,501,092 | $ | 13,802,862 | |||||||
| Goodwill | (155,797 | ) | (155,797 | ) | (155,797 | ) | |||||||
| Other intangible assets | (4,467 | ) | (4,753 | ) | (5,758 | ) | |||||||
| Tangible assets (non-GAAP) | $ | 13,388,499 | $ | 13,340,542 | $ | 13,641,307 | |||||||
| Reconciliation of Tangible Common Equity - Consolidated: | |||||||||||||
| Total stockholders' equity | $ | 1,250,596 | $ | 1,239,371 | $ | 1,202,503 | |||||||
| Goodwill | (155,797 | ) | (155,797 | ) | (155,797 | ) | |||||||
| Other intangible assets | (4,467 | ) | (4,753 | ) | (5,758 | ) | |||||||
| Tangible equity (non-GAAP) | 1,090,332 | 1,078,821 | 1,040,948 | ||||||||||
| Preferred stock, net | (116,569 | ) | (116,569 | ) | (116,569 | ) | |||||||
| Tangible common equity (non-GAAP) | $ | 973,763 | $ | 962,252 | $ | 924,379 | |||||||
| Common shares outstanding | 39,148 | 38,932 | 38,803 | ||||||||||
| Tangible common equity to tangible assets (non-GAAP) | 7.27 | % | 7.21 | % | 6.78 | % | |||||||
| Tangible equity to tangible assets (non-GAAP) | 8.14 | 8.09 | 7.63 | ||||||||||
| Book value per common share | $ | 28.97 | $ | 28.84 | $ | 27.99 | |||||||
| Tangible common book value per share (non-GAAP) | 24.87 | 24.72 | 23.82 | ||||||||||
FAQ
What was Dime Community Bancshares' (DCOM) earnings per share for Q2 2024?
How much did DCOM's core deposits grow in Q2 2024?
What was DCOM's net interest margin in the second quarter of 2024?
How much did DCOM's business loans grow in Q2 2024?
What was DCOM's Total Risk Based Capital Ratio after the subordinated debt offering?
