Dime Community Bancshares, Inc. Reports Strong First Quarter 2023 Results With Earnings Per Share Increasing by 12.2% On a Year-Over-Year Basis
Total Deposits Increased by
Results Marked By Prudent Expense Control and Increases in Liquidity and Risk-Based Regulatory Capital Ratios
Announces Hiring of 4 Deposit Focused Groups, Capitalizing on Recent Market Disruption
HAUPPAUGE, N.Y., April 28, 2023 (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
Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “Despite the volatile environment in the first quarter, including the failure of two sizable banks, Dime increased earnings per share by
Stuart H. Lubow, President and Chief Operating Officer of the Company, stated, “The recent disruption in our marketplace caused by the failure of a local competitor has provided a significant opportunity for Dime to grow our deposit franchise. We are pleased to announce that over the course of the last few weeks we have hired four seasoned deposit-focused Groups, who were previously employed with Signature Bank.”
Highlights for the First Quarter of 2023 Included:
- Cash and due from banks was
$663 million at the end of the first quarter, representing a$494 million increase versus year-end. Cash and total securities, as a percent of total assets, was15.9% at the end of the first quarter, compared to12.9% at year-end; - The ratio of average non-interest bearing deposits to average total deposits for the first quarter of 2023 was
32% , compared to36% for the fourth quarter of 2022. - Total loans held for investment, net, increased by
$170 million or6% on an annualized basis versus the linked quarter; - Total Business Loans increased by
$47 million or8.6% on an annualized basis versus the linked quarter; - Non-interest expense to average assets improved to
1.41% for the first quarter, compared to1.56% for the prior quarter and1.64% for the year-ago quarter; - Credit quality continues to be strong with non-performing assets and loans 90 days past due and accruing declining by
8% versus the linked quarter and representing only0.23% of total assets as of March 31, 2023; and - The Company’s Tier 1 Risk Based Capital Ratio of
10.39% was 16 basis points higher than year-end levels.
Management’s Discussion of Quarterly Operating Results
Net Interest Income
Net interest income for the first quarter of 2023 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) | Q1 2023 | Q4 2022 | Q1 2022 | ||||||||||
| Net interest income | $ | 85,752 | $ | 96,804 | $ | 89,109 | |||||||
| Purchase accounting amortization (accretion) on loans ("PAA") | 586 | (390 | ) | (50 | ) | ||||||||
| Adjusted net interest income excluding PAA on loans (non-GAAP) | $ | 86,338 | $ | 96,414 | $ | 89,059 | |||||||
| Average interest-earning assets | $ | 12,685,235 | $ | 12,198,905 | $ | 11,333,805 | |||||||
| NIM (1) | 2.74 | % | 3.15 | % | 3.19 | % | |||||||
| Adjusted NIM excluding PAA on loans (non-GAAP) (2) | 2.76 | % | 3.14 | % | 3.19 | % | |||||||
| (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
Outlined below are loan balances and WARs for the period ended as indicated.
| March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||||
| (Dollars in thousands) | Balance | WAR | Balance | WAR | Balance | WAR | |||||||||||||
| Loans held for investment balances at period end: | |||||||||||||||||||
| Commercial and industrial ("C&I") | $ | 1,072,860 | 7.53 | % | $ | 1,065,916 | 7.00 | % | $ | 888,056 | 4.19 | % | |||||||
| Owner-occupied commercial real estate | 1,180,386 | 5.40 | 1,140,145 | 5.16 | 1,016,804 | 4.04 | |||||||||||||
| Business loans | 2,253,246 | 6.41 | 2,206,061 | 6.05 | 1,904,860 | 4.11 | |||||||||||||
| One-to-four family residential, including condominium and cooperative apartment | 799,321 | 4.06 | 773,321 | 3.96 | 669,099 | 3.53 | |||||||||||||
| Multifamily residential and residential mixed-use (2)(3) | 4,118,439 | 4.23 | 4,026,826 | 4.08 | 3,371,267 | 3.56 | |||||||||||||
| Non-owner-occupied commercial real estate | 3,330,582 | 4.85 | 3,317,485 | 4.68 | 2,930,114 | 3.73 | |||||||||||||
| Acquisition, development, and construction | 221,015 | 8.62 | 229,663 | 8.19 | 329,349 | 4.63 | |||||||||||||
| Other loans | 7,172 | 11.03 | 7,679 | 10.22 | 12,207 | 6.52 | |||||||||||||
| Loans held for investment, excluding PPP loans | 10,729,775 | 4.96 | 10,561,035 | 4.76 | 9,216,896 | 3.77 | |||||||||||||
| PPP loans | 2,070 | 1.00 | 5,796 | 1.00 | 32,953 | 1.00 | |||||||||||||
| Total loans held for investment, including PPP loans | $ | 10,731,845 | 4.96 | % | $ | 10,566,831 | 4.76 | % | $ | 9,249,849 | 3.76 | % | |||||||
| (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 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, for the quarter ended as indicated.
| (Dollars in millions) | Q1 2023 | Q4 2022 | Q1 2022 | |||||||||
| Loan originations | $ | 351.9 | $ | 638.3 | $ | 480.4 | ||||||
Deposits
Period end total deposits at March 31, 2023 were
Non-Interest Income
Non-interest income was
Non-Interest Expense
Total non-interest expense was
The ratio of non-interest expense to average assets was
The efficiency ratio was
Income Tax Expense
The reported effective tax rate for the first quarter of 2023 was
Credit Quality
Non-performing loans at March 31, 2023 were
A credit loss recovery 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 March 31, 2023.
During the first quarter of 2023, the Company repurchased 24,813 shares of its common stock, at a weighted average price of
Dividends per common share were
On March 9, 2023, the Company announced that its Board of Directors declared that the next quarterly cash dividend payable on April 24, 2023 (to common stockholders of record as of April 17, 2023) would be
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 8:30 a.m. (ET) on Friday, April 28, 2023, during which CEO O’Connor will discuss the Company’s first quarter 2023 financial performance, with a question-and-answer session to follow.
The conference call will be simultaneously webcast (listen only) and archived for a period of one year at https://events.q4inc.com/attendee/220992518.
Conference Call Details:
| Dial-in for Live Call: | ||
| United States: | 1-833-470-1428 | |
| International: | +1-929-526-1599 | |
| Access code: | 136939 | |
| Telephone Replay: | ||
| A recording will be available until Friday, May 12, 2023. | ||
| United States: | 1-866-813-9403 | |
| International: | +44-204-525-0658 | |
| Access code: | 385978 | |
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 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, 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, including conditions caused by the COVID-19 pandemic and any other public health emergency, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
| Contact: Avinash Reddy | |
| Senior Executive Vice President – Chief Financial Officer | |
| 718-782-6200 extension 5909 |
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | ||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||
| (In thousands) | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| Assets: | ||||||||||||
| Cash and due from banks | $ | 663,132 | $ | 169,297 | $ | 432,994 | ||||||
| Securities available-for-sale, at fair value | 926,812 | 950,587 | 1,277,036 | |||||||||
| Securities held-to-maturity | 605,642 | 585,798 | 383,922 | |||||||||
| Loans held for sale | 2,171 | — | 17,053 | |||||||||
| Loans held for investment, net: | ||||||||||||
| C&I | 1,072,860 | 1,065,916 | 888,056 | |||||||||
| Owner-occupied commercial real estate | 1,180,386 | 1,140,145 | 1,016,804 | |||||||||
| Total business loans | 2,253,246 | 2,206,061 | 1,904,860 | |||||||||
| One-to-four family and cooperative/condominium apartment | 799,321 | 773,321 | 669,099 | |||||||||
| Multifamily residential and residential mixed-use (1)(2) | 4,118,439 | 4,026,826 | 3,371,267 | |||||||||
| Non-owner-occupied commercial real estate | 3,330,582 | 3,317,485 | 2,930,114 | |||||||||
| Acquisition, development, and construction | 221,015 | 229,663 | 329,349 | |||||||||
| Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans | 2,070 | 5,796 | 32,953 | |||||||||
| Other loans | 7,172 | 7,679 | 12,207 | |||||||||
| Allowance for credit losses | (78,335 | ) | (83,507 | ) | (79,615 | ) | ||||||
| Total loans held for investment, net | 10,653,510 | 10,483,324 | 9,170,234 | |||||||||
| Premises and fixed assets, net | 45,863 | 46,749 | 49,940 | |||||||||
| Premises held for sale | — | — | 556 | |||||||||
| Restricted stock | 105,258 | 88,745 | 38,898 | |||||||||
| Bank Owned Life Insurance ("BOLI") | 335,455 | 333,292 | 297,628 | |||||||||
| Goodwill | 155,797 | 155,797 | 155,797 | |||||||||
| Other intangible assets | 6,107 | 6,484 | 7,776 | |||||||||
| Operating lease assets | 57,204 | 57,857 | 61,467 | |||||||||
| Derivative assets | 130,294 | 154,485 | 71,826 | |||||||||
| Accrued interest receivable | 49,926 | 48,561 | 38,456 | |||||||||
| Other assets | 104,553 | 108,945 | 74,662 | |||||||||
| Total assets | $ | 13,841,724 | $ | 13,189,921 | $ | 12,078,245 | ||||||
| Liabilities: | ||||||||||||
| Non-interest-bearing checking | $ | 3,122,245 | $ | 3,519,218 | $ | 3,953,627 | ||||||
| Interest-bearing checking | 908,988 | 827,454 | 902,360 | |||||||||
| Savings | 2,333,445 | 2,260,101 | 1,376,092 | |||||||||
| Money market | 2,686,290 | 2,532,270 | 3,416,249 | |||||||||
| Certificates of deposit | 1,519,267 | 1,115,364 | 781,775 | |||||||||
| Total deposits | 10,570,235 | 10,254,407 | 10,430,103 | |||||||||
| FHLBNY advances | 1,498,000 | 1,131,000 | 50,000 | |||||||||
| Other short-term borrowings | 2,068 | 1,360 | 2,853 | |||||||||
| Subordinated debt, net | 200,261 | 200,283 | 197,050 | |||||||||
| Derivative cash collateral | 120,680 | 153,040 | 64,450 | |||||||||
| Operating lease liabilities | 59,757 | 60,340 | 63,600 | |||||||||
| Derivative liabilities | 115,568 | 137,335 | 60,586 | |||||||||
| Other liabilities | 83,902 | 82,573 | 54,316 | |||||||||
| Total liabilities | 12,650,471 | 12,020,338 | 10,922,958 | |||||||||
| Stockholders' equity: | ||||||||||||
| Preferred stock, Series A | 116,569 | 116,569 | 116,569 | |||||||||
| Common stock | 416 | 416 | 416 | |||||||||
| Additional paid-in capital | 493,801 | 495,410 | 494,969 | |||||||||
| Retained earnings | 789,010 | 762,762 | 677,990 | |||||||||
| Accumulated other comprehensive loss ("AOCI"), net of deferred taxes | (98,638 | ) | (94,379 | ) | (49,380 | ) | ||||||
| Unearned equity awards | (13,468 | ) | (8,078 | ) | (10,562 | ) | ||||||
| Treasury stock, at cost | (96,437 | ) | (103,117 | ) | (74,715 | ) | ||||||
| Total stockholders' equity | 1,191,253 | 1,169,583 | 1,155,287 | |||||||||
| Total liabilities and stockholders' equity | $ | 13,841,724 | $ | 13,189,921 | $ | 12,078,245 | ||||||
| (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, | |||||||||
| 2023 | 2022 | 2022 | |||||||||
| Interest income: | |||||||||||
| Loans | $ | 128,439 | $ | 120,773 | $ | 86,420 | |||||
| Securities | 8,431 | 7,652 | 7,131 | ||||||||
| Other short-term investments | 3,802 | 1,444 | 368 | ||||||||
| Total interest income | 140,672 | 129,869 | 93,919 | ||||||||
| Interest expense: | |||||||||||
| Deposits and escrow | 37,272 | 22,017 | 2,531 | ||||||||
| Borrowed funds | 16,171 | 9,783 | 2,278 | ||||||||
| Derivative cash collateral | 1,477 | 1,265 | 1 | ||||||||
| Total interest expense | 54,920 | 33,065 | 4,810 | ||||||||
| Net interest income | 85,752 | 96,804 | 89,109 | ||||||||
| (Recovery) provision for credit losses | (3,648 | ) | 335 | (1,592 | ) | ||||||
| Net interest income after (recovery) provision | 89,400 | 96,469 | 90,701 | ||||||||
| Non-interest income: | |||||||||||
| Service charges and other fees | 3,814 | 3,945 | 4,058 | ||||||||
| Title fees | 292 | 453 | 421 | ||||||||
| Loan level derivative income | 3,133 | 1,397 | 6 | ||||||||
| BOLI income | 2,163 | 2,187 | 1,839 | ||||||||
| Gain on sale of SBA loans | 516 | 621 | 242 | ||||||||
| Gain on sale of residential loans | 48 | 55 | 148 | ||||||||
| Net loss on sale of securities and other assets | (1,447 | ) | — | — | |||||||
| Other | 482 | 809 | 489 | ||||||||
| Total non-interest income | 9,001 | 9,467 | 7,203 | ||||||||
| Non-interest expense: | |||||||||||
| Salaries and employee benefits | 26,634 | 31,632 | 30,834 | ||||||||
| Severance | 25 | 5 | — | ||||||||
| Occupancy and equipment | 7,373 | 7,356 | 7,584 | ||||||||
| Data processing costs | 4,238 | 4,023 | 3,805 | ||||||||
| Marketing | 1,449 | 1,559 | 1,295 | ||||||||
| Professional services | 1,923 | 1,831 | 2,094 | ||||||||
| Federal deposit insurance premiums | 1,873 | 800 | 1,150 | ||||||||
| Amortization of other intangible assets | 377 | 431 | 586 | ||||||||
| Other | 3,583 | 3,065 | 2,540 | ||||||||
| Total non-interest expense | 47,475 | 50,702 | 49,888 | ||||||||
| Income before taxes | 50,926 | 55,234 | 48,016 | ||||||||
| Income tax expense | 13,623 | 15,175 | 13,485 | ||||||||
| Net income | 37,303 | 40,059 | 34,531 | ||||||||
| Preferred stock dividends | 1,821 | 1,821 | 1,821 | ||||||||
| Net income available to common stockholders | $ | 35,482 | $ | 38,238 | $ | 32,710 | |||||
| Earnings per common share ("EPS"): | |||||||||||
| Basic | $ | 0.92 | $ | 0.99 | $ | 0.82 | |||||
| Diluted | $ | 0.92 | $ | 0.99 | $ | 0.82 | |||||
| Average common shares outstanding for diluted EPS | 38,151,465 | 38,123,221 | 39,251,246 | ||||||||
| 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, | ||||||||
| 2023 | 2022 | 2022 | ||||||||
| Per Share Data: | ||||||||||
| Reported EPS (Diluted) | $ | 0.92 | $ | 0.99 | $ | 0.82 | ||||
| Cash dividends paid per common share | 0.24 | 0.24 | 0.24 | |||||||
| Book value per common share | 27.70 | 27.30 | 26.32 | |||||||
| Tangible common book value per share (1) | 23.52 | 23.09 | 22.18 | |||||||
| Tangible common book value per share excluding AOCI (1) | 26.06 | 25.54 | 23.43 | |||||||
| Common shares outstanding | 38,804 | 38,573 | 39,460 | |||||||
| Dividend payout ratio | 26.09 | % | 24.24 | % | 29.27 | % | ||||
| Performance Ratios (Based upon Reported Net Income): | ||||||||||
| Return on average assets | 1.11 | % | 1.23 | % | 1.13 | % | ||||
| Return on average equity | 12.50 | 13.72 | 11.53 | |||||||
| Return on average tangible common equity (1) | 15.62 | 17.34 | 14.44 | |||||||
| Net interest margin | 2.74 | 3.15 | 3.19 | |||||||
| Non-interest expense to average assets | 1.41 | 1.56 | 1.64 | |||||||
| Efficiency ratio (1) | 50.1 | 47.7 | 51.8 | |||||||
| Effective tax rate | 26.75 | 27.47 | 28.08 | |||||||
| Balance Sheet Data: | ||||||||||
| Average assets | $ | 13,449,746 | $ | 12,985,203 | $ | 12,199,721 | ||||
| Average interest-earning assets | 12,685,235 | 12,198,905 | 11,333,805 | |||||||
| Average tangible common equity (1) | 914,994 | 888,973 | 916,971 | |||||||
| Loan-to-deposit ratio at end of period | 101.5 | 103.0 | 88.7 | |||||||
| Capital Ratios and Reserves - Consolidated: (3) | ||||||||||
| Tangible common equity to tangible assets (1) | 6.67 | % | 6.84 | % | 7.35 | % | ||||
| Tangible common equity excluding AOCI to tangible assets (1) | 7.39 | 7.56 | 7.76 | |||||||
| Tangible equity to tangible assets (1) | 7.52 | 7.73 | 8.32 | |||||||
| Tangible equity excluding AOCI to tangible assets (1) | 8.25 | 8.46 | 8.74 | |||||||
| Tier 1 common equity ratio | 9.32 | 9.15 | 9.56 | |||||||
| Tier 1 risk-based capital ratio | 10.39 | 10.23 | 10.76 | |||||||
| Total risk-based capital ratio | 12.98 | 12.89 | 13.48 | |||||||
| Tier 1 leverage ratio | 8.43 | 8.53 | 8.65 | |||||||
| CRE consolidated concentration ratio (2) | 554 | 554 | 519 | |||||||
| Allowance for credit losses/ Total loans | 0.73 | 0.79 | 0.86 | |||||||
| Allowance for credit losses/ Non-performing loans | 248.34 | 243.91 | 221.39 | |||||||
| (1) | See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets. | |
| (2) | The CRE consolidated 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, 2023 amounts are preliminary pending completion and filing of the Company’s regulatory reports. | |
| (3) | March 31, 2023 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, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||||||||||
| 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 | $ | 9,560,755 | $ | 109,589 | 4.65 | % | $ | 9,370,045 | $ | 104,218 | 4.41 | % | $ | 8,296,732 | $ | 76,437 | 3.74 | % | |||||||
| Commercial and industrial loans | 1,045,048 | 18,735 | 7.27 | 957,151 | 16,430 | 6.81 | 916,090 | 9,786 | 4.33 | ||||||||||||||||
| Other loans | 7,550 | 115 | 6.18 | 8,269 | 125 | 6.00 | 15,658 | 197 | 5.10 | ||||||||||||||||
| Securities | 1,699,846 | 8,431 | 2.01 | 1,663,969 | 7,652 | 1.82 | 1,726,189 | 7,131 | 1.68 | ||||||||||||||||
| Other short-term investments | 372,036 | 3,802 | 4.14 | 199,471 | 1,444 | 2.87 | 379,136 | 368 | 0.39 | ||||||||||||||||
| Total interest-earning assets | 12,685,235 | 140,672 | 4.50 | % | 12,198,905 | 129,869 | 4.22 | % | 11,333,805 | 93,919 | 3.36 | % | |||||||||||||
| Non-interest-earning assets | 764,511 | 786,298 | 865,916 | ||||||||||||||||||||||
| Total assets | $ | 13,449,746 | $ | 12,985,203 | $ | 12,199,721 | |||||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||
| Interest-bearing checking | $ | 843,108 | $ | 1,523 | 0.73 | % | $ | 845,530 | $ | 1,174 | 0.55 | % | $ | 870,889 | $ | 367 | 0.17 | % | |||||||
| Money market | 2,699,640 | 13,849 | 2.08 | 2,469,177 | 6,620 | 1.06 | 3,632,438 | 973 | 0.11 | ||||||||||||||||
| Savings | 2,327,126 | 14,599 | 2.54 | 2,234,968 | 9,889 | 1.76 | 1,256,701 | 207 | 0.07 | ||||||||||||||||
| Certificates of deposit | 1,167,736 | 7,301 | 2.54 | 1,063,053 | 4,334 | 1.62 | 824,883 | 984 | 0.48 | ||||||||||||||||
| Total interest-bearing deposits | 7,037,610 | 37,272 | 2.15 | 6,612,728 | 22,017 | 1.32 | 6,584,911 | 2,531 | 0.16 | ||||||||||||||||
| FHLBNY advances | 1,255,700 | 13,500 | 4.36 | 724,902 | 6,383 | 3.49 | 33,889 | 77 | 0.92 | ||||||||||||||||
| Subordinated debt, net | 200,276 | 2,553 | 5.17 | 200,298 | 2,553 | 5.06 | 197,080 | 2,201 | 4.53 | ||||||||||||||||
| Other short-term borrowings | 11,827 | 118 | 4.05 | 90,275 | 847 | 3.72 | 2,459 | — | — | ||||||||||||||||
| Total borrowings | 1,467,803 | 16,171 | 4.47 | 1,015,475 | 9,783 | 3.82 | 233,428 | 2,278 | 3.96 | ||||||||||||||||
| Derivative cash collateral | 135,641 | 1,477 | 4.42 | 157,898 | 1,265 | 3.18 | 14,335 | 1 | — | ||||||||||||||||
| Total interest-bearing liabilities | 8,641,054 | 54,920 | 2.58 | % | 7,786,101 | 33,065 | 1.68 | % | 6,832,674 | 4,810 | 0.29 | % | |||||||||||||
| Non-interest-bearing checking | 3,341,707 | 3,755,395 | 3,979,741 | ||||||||||||||||||||||
| Other non-interest-bearing liabilities | 273,281 | 275,636 | 189,843 | ||||||||||||||||||||||
| Total liabilities | 12,256,042 | 11,817,132 | 11,002,258 | ||||||||||||||||||||||
| Stockholders' equity | 1,193,704 | 1,168,071 | 1,197,463 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 13,449,746 | $ | 12,985,203 | $ | 12,199,721 | |||||||||||||||||||
| Net interest income | $ | 85,752 | $ | 96,804 | $ | 89,109 | |||||||||||||||||||
| Net interest rate spread | 1.92 | % | 2.54 | % | 3.07 | % | |||||||||||||||||||
| Net interest margin | 2.74 | % | 3.15 | % | 3.19 | % | |||||||||||||||||||
| Deposits (including non-interest-bearing checking accounts) | $ | 10,379,317 | $ | 37,272 | 1.46 | % | $ | 10,368,123 | $ | 22,017 | 0.84 | % | $ | 10,564,652 | $ | 2,531 | 0.10 | % | |||||||
| 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 | 2023 | 2022 | 2022 | |||||||||
| Non-performing loans ("NPLs") | ||||||||||||
| One-to-four family residential, including condominium and cooperative apartment | $ | 2,808 | $ | 3,203 | $ | 5,241 | ||||||
| Multifamily residential and residential mixed-use | — | — | — | |||||||||
| Commercial real estate | 8,068 | 8,332 | 4,972 | |||||||||
| Acquisition, development, and construction | 657 | 657 | 665 | |||||||||
| C&I | 19,912 | 21,946 | 25,000 | |||||||||
| Other | 99 | 99 | 84 | |||||||||
| Total Non-accrual loans | $ | 31,544 | $ | 34,237 | $ | 35,962 | ||||||
| Total Non-performing assets ("NPAs") | $ | 31,544 | $ | 34,237 | $ | 35,962 | ||||||
| Loans 90 days delinquent and accruing ("90+ Delinquent") | ||||||||||||
| One-to-four family residential, including condominium and cooperative apartment | $ | — | $ | — | $ | 341 | ||||||
| Multifamily residential and residential mixed-use | — | — | — | |||||||||
| Commercial real estate | — | — | — | |||||||||
| Acquisition, development, and construction | — | — | — | |||||||||
| C&I | — | — | 839 | |||||||||
| Other | — | — | — | |||||||||
| 90+ Delinquent | $ | — | $ | — | $ | 1,180 | ||||||
| NPAs and 90+ Delinquent | $ | 31,544 | $ | 34,237 | $ | 37,142 | ||||||
| NPAs and 90+ Delinquent / Total assets | 0.23% | |||||||||||
| Net charge-offs ("NCOs") | $ | 1,541 | $ | 185 | $ | 2,583 | ||||||
| NCOs / Average loans (1) | 0.06% | |||||||||||
| (1) | 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 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 severance:
| Three Months Ended | |||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| 2023 | 2022 | 2022 | |||||||||||
| Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders | |||||||||||||
| Reported net income available to common stockholders | $ | 35,482 | $ | 38,238 | $ | 32,710 | |||||||
| Adjustments to net income (1): | |||||||||||||
| Net loss on sale of securities and other assets | 1,447 | — | — | ||||||||||
| Severance | 25 | 5 | — | ||||||||||
| Income tax effect of adjustments and other tax adjustments | (386 | ) | — | — | |||||||||
| Adjusted net income available to common stockholders (non-GAAP) | $ | 36,568 | $ | 38,243 | $ | 32,710 | |||||||
| Adjusted Ratios (Based upon non-GAAP as calculated above) | |||||||||||||
| Adjusted EPS (Diluted) | $ | 0.95 | $ | 0.99 | $ | 0.82 | |||||||
| Adjusted return on average assets | 1.14 | % | 1.23 | % | 1.13 | % | |||||||
| Adjusted return on average equity | 12.86 | 13.72 | 11.53 | ||||||||||
| Adjusted return on average tangible common equity | 16.10 | 17.34 | 14.44 | ||||||||||
| Adjusted non-interest expense to average assets | 1.40 | 1.55 | 1.62 | ||||||||||
| Adjusted efficiency ratio | 48.9 | 47.3 | 51.2 | ||||||||||
| (1) | Adjustments to net income are taxed at the Company's statutory tax rate of approximately |
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, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| Operating expense as a % of average assets - as reported | 1.41 | % | 1.56 | % | 1.64 | % | ||||||
| Amortization of other intangible assets | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||
| Adjusted operating expense as a % of average assets (non-GAAP) | 1.40 | % | 1.55 | % | 1.62 | % | ||||||
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, | |||||||||||
| 2023 | 2023 | 2022 | |||||||||||
| Efficiency ratio - as reported (non-GAAP) (1) | 50.1 | % | 47.7 | % | 51.8 | % | |||||||
| Non-interest expense - as reported | $ | 47,475 | $ | 50,702 | $ | 49,888 | |||||||
| Severance | (25 | ) | (5 | ) | — | ||||||||
| Amortization of other intangible assets | (377 | ) | (431 | ) | (586 | ) | |||||||
| Adjusted non-interest expense (non-GAAP) | $ | 47,073 | $ | 50,266 | $ | 49,302 | |||||||
| Net interest income - as reported | $ | 85,752 | $ | 96,804 | $ | 89,109 | |||||||
| Non-interest income - as reported | $ | 9,001 | $ | 9,467 | $ | 7,203 | |||||||
| Net loss on sale of securities and other assets | 1,447 | — | — | ||||||||||
| Adjusted non-interest income (non-GAAP) | $ | 10,448 | $ | 9,467 | $ | 7,203 | |||||||
| Adjusted total revenues for adjusted efficiency ratio (non-GAAP) | $ | 96,200 | $ | 106,271 | $ | 96,312 | |||||||
| Adjusted efficiency ratio (non-GAAP) (2) | 48.9 | % | 47.3 | % | 51.2 | % | |||||||
| (1) | The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income. | |
| (2) | The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income. |
The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):
| March 31, | December 31, | March 31, | |||||||||||
| 2023 | 2022 | 2022 | |||||||||||
| Reconciliation of Tangible Assets: | |||||||||||||
| Total assets | $ | 13,841,724 | $ | 13,189,921 | $ | 12,078,245 | |||||||
| Goodwill | (155,797 | ) | (155,797 | ) | (155,797 | ) | |||||||
| Other intangible assets | (6,107 | ) | (6,484 | ) | (7,776 | ) | |||||||
| Tangible assets (non-GAAP) | $ | 13,679,820 | $ | 13,027,640 | $ | 11,914,672 | |||||||
| Reconciliation of Tangible Common Equity - Consolidated: | |||||||||||||
| Total stockholders' equity | $ | 1,191,253 | $ | 1,169,583 | $ | 1,155,287 | |||||||
| Goodwill | (155,797 | ) | (155,797 | ) | (155,797 | ) | |||||||
| Other intangible assets | (6,107 | ) | (6,484 | ) | (7,776 | ) | |||||||
| Tangible equity (non-GAAP) | 1,029,349 | 1,007,302 | 991,714 | ||||||||||
| Preferred stock, net | (116,569 | ) | (116,569 | ) | (116,569 | ) | |||||||
| Tangible common equity (non-GAAP) | $ | 912,780 | $ | 890,733 | $ | 875,145 | |||||||
| Tangible common equity (non-GAAP) | $ | 912,780 | $ | 890,733 | $ | 875,145 | |||||||
| AOCI, net of deferred taxes | 98,638 | 94,379 | 49,380 | ||||||||||
| Tangible common equity excluding AOCI (non-GAAP) | $ | 1,011,418 | $ | 985,112 | $ | 924,525 | |||||||
| Tangible equity (non-GAAP) | $ | 1,029,349 | $ | 1,007,302 | $ | 991,714 | |||||||
| AOCI, net of deferred taxes | 98,638 | 94,379 | 49,380 | ||||||||||
| Tangible equity excluding AOCI (non-GAAP) | $ | 1,127,987 | $ | 1,101,681 | $ | 1,041,094 | |||||||
| Common shares outstanding | 38,804 | 38,573 | 39,460 | ||||||||||
| Tangible common equity to tangible assets (non-GAAP) | 6.67 | % | 6.84 | % | 7.35 | % | |||||||
| Tangible common equity excluding AOCI to tangible assets (non-GAAP) | 7.39 | 7.56 | 7.76 | ||||||||||
| Tangible equity to tangible assets (non-GAAP) | 7.52 | 7.73 | 8.32 | ||||||||||
| Tangible equity excluding AOCI to tangible assets (non-GAAP) | 8.25 | 8.46 | 8.74 | ||||||||||
| Book value per share | $ | 27.70 | $ | 27.30 | $ | 26.32 | |||||||
| Tangible common book value per share (non-GAAP) | 23.52 | 23.09 | 22.18 | ||||||||||
| Tangible common book value per share excluding AOCI (non-GAAP) | 26.06 | 25.54 | 23.43 | ||||||||||
