DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
December 31, December 31, September 30,
2010 2009 2010
----------- ----------- -----------
ASSETS:
Cash and due from banks $ 86,193 $ 39,338 $ 70,761
Investment securities held to
maturity 6,641 7,240 6,639
Investment securities available for
sale 85,642 43,162 64,675
Trading securities 1,490 - 1,420
Mortgage-backed securities available
for sale 144,518 224,773 165,221
Federal funds sold and other
short-term investments 4,536 3,785 23,848
Real Estate Loans:
One-to-four family and
cooperative apartment 116,886 131,475 119,991
Multifamily and underlying
cooperative (1) 2,497,339 2,377,278 2,456,348
Commercial real estate (1) 833,314 834,724 823,018
Construction and land acquisition 15,238 44,544 16,348
Unearned discounts and net
deferred loan fees 5,013 4,017 4,526
----------- ----------- -----------
Total real estate loans 3,467,790 3,392,038 3,420,231
----------- ----------- -----------
Other loans 2,394 3,221 2,327
Allowance for loan losses (19,166) (21,505) (16,942)
----------- ----------- -----------
Total loans, net 3,451,018 3,373,754 3,405,616
----------- ----------- -----------
Loans held for sale 3,308 416 4,879
Premises and fixed assets, net 31,613 29,841 31,224
Federal Home Loan Bank of New York
capital stock 51,718 54,083 47,848
Other real estate owned, net - 755 85
Goodwill 55,638 55,638 55,638
Other assets 117,980 119,489 118,914
----------- ----------- -----------
TOTAL ASSETS $ 4,040,295 $ 3,952,274 $ 3,996,768
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Non-interest bearing checking $ 125,730 $ 106,449 $ 119,966
Interest Bearing Checking 108,078 114,416 104,705
Savings 329,182 302,340 318,239
Money Market 727,939 708,578 743,305
----------- ----------- -----------
Sub-total 1,290,929 1,231,783 1,286,215
----------- ----------- -----------
Certificates of deposit 1,059,652 985,053 1,094,451
----------- ----------- -----------
Total Due to Depositors 2,350,581 2,216,836 2,380,666
----------- ----------- -----------
Escrow and other deposits 68,542 65,895 91,965
Securities sold under agreements to
repurchase 195,000 230,000 195,000
Federal Home Loan Bank of New York
advances 990,525 1,009,675 904,525
Subordinated Notes Sold - 25,000 -
Trust Preferred Notes Payable 70,680 70,680 70,680
Other liabilities 36,233 39,415 31,470
----------- ----------- -----------
TOTAL LIABILITIES 3,711,561 3,657,501 3,674,306
----------- ----------- -----------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000
shares authorized, 51,219,609
shares and 51,131,784 shares issued at
December 31, 2010 and December 31, 2009,
respectively and 34,593,180 shares and
34,395,531 shares outstanding at
December 31, 2010 and December 31,
2009, respectively) 512 511 511
Additional paid-in capital 225,585 214,654 224,239
Retained earnings 329,668 306,787 323,777
Unallocated common stock of Employee
Stock Ownership Plan (3,470) (3,701) (3,528)
Unearned common stock of Restricted
Stock Awards (2,684) (2,505) (3,226)
Common stock held by the Benefit
Maintenance Plan (7,979) (8,007) (7,979)
Treasury stock (16,626,429 shares
and 16,736,253 shares at December
31, 2010, and December 31, 2009,
respectively) (206,546) (207,884) (206,259)
Accumulated other comprehensive
loss, net (6,352) (5,082) (5,073)
----------- ----------- -----------
TOTAL STOCKHOLDERS' EQUITY 328,734 294,773 322,462
----------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 4,040,295 $ 3,952,274 $ 3,996,768
=========== =========== ===========
(1) While the loans within both of these categories are often considered
"commercial real estate" in nature, they are classified separately in
the statement above to provide further emphasis upon the discrete
composition of their underlying real estate collateral.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
----------------------------------------
September
December 31, 30, December 31,
2010 2010 2009
------------ ------------ ------------
Interest income:
Loans secured by real estate $ 50,752 $ 50,648 $ 49,277
Other loans 26 28 33
Mortgage-backed securities 1,621 1,846 2,551
Investment securities 268 290 359
Federal funds sold and
other short-term
investments 857 702 744
------------ ------------ ------------
Total interest income 53,524 53,514 52,964
------------ ------------ ------------
Interest expense:
Deposits and escrow 7,005 7,383 7,706
Borrowed funds 11,385 11,855 13,173
------------ ------------ ------------
Total interest expense 18,390 19,238 20,879
------------ ------------ ------------
Net interest income 35,134 34,276 32,085
Provision for loan losses 3,262 667 4,491
------------ ------------ ------------
Net interest income after
provision for loan losses 31,872 33,609 27,594
------------ ------------ ------------
Non-interest income:
Service charges and other
fees 748 1,284 1,091
Mortgage banking income
(loss), net 240 316 (1,708)
Other than temporary
impairment ("OTTI")
charge on securities (1) (163) (1,639) (1,433)
Gain (loss) on sale of other
real estate owned and other
assets 9 (10) -
Gain (loss) on trading
securities 46 86 505
Other 1,140 1,031 884
------------ ------------ ------------
Total non-interest
income (loss) 2,020 1,068 (661)
------------ ------------ ------------
Non-interest expense:
Compensation and benefits 9,300 8,514 8,455
Occupancy and equipment 2,276 2,190 2,075
Other 4,026 4,188 4,206
------------ ------------ ------------
Total non-interest
expense 15,602 14,892 14,736
------------ ------------ ------------
Income before taxes 18,290 19,785 12,197
Income tax expense 7,730 8,430 4,100
------------ ------------ ------------
Net Income $ 10,560 $ 11,355 $ 8,097
============ ============ ============
Earnings per Share:
Basic $ 0.32 $ 0.34 $ 0.24
============ ============ ============
Diluted $ 0.31 $ 0.34 $ 0.24
============ ============ ============
Average common shares outstanding
for Diluted EPS 33,538,319 33,394,522 33,143,496
For the Year Ended
--------------------------
December 31, December 31,
2010 2009
------------ ------------
Interest income:
Loans secured by real estate $ 202,591 $ 193,689
Other loans 123 143
Mortgage-backed securities 7,820 11,548
Investment securities 1,277 874
Federal funds sold and
other short-term investments 2,983 2,914
------------ ------------
Total interest income 214,794 209,168
------------ ------------
Interest expense:
Deposits and escrow 29,991 42,792
Borrowed funds 49,422 54,893
------------ ------------
Total interest expense 79,413 97,685
------------ ------------
Net interest income 135,381 111,483
Provision for loan losses 11,209 13,152
------------ ------------
Net interest income after
provision for loan losses 124,172 98,331
------------ ------------
Non-interest income:
Service charges and other
fees 3,913 4,209
Mortgage banking income
(loss), net 1,069 (1,774)
Other than temporary
impairment ("OTTI")
charge on securities (1) (2,475) (7,915)
Gain (loss) on sale of other
real estate owned and other
assets 627 339
Gain (loss) on trading
securities 289 505
Other 4,632 3,891
------------ ------------
Total non-interest
income (loss) 8,055 (745)
------------ ------------
Non-interest expense:
Compensation and benefits 35,224 31,814
Occupancy and equipment 9,372 7,878
Other 17,381 17,618
------------ ------------
Total non-interest
expense 61,977 57,310
------------ ------------
Income before taxes 70,250 40,276
Income tax expense 28,861 14,087
------------ ------------
Net Income $ 41,389 $ 26,189
============ ============
Earnings per Share:
Basic $ 1.24 $ 0.79
============ ============
Diluted $ 1.24 $ 0.79
============ ============
Average common shares outstanding
for Diluted EPS 33,366,562 33,029,655
(1) Total OTTI charges on securities were $1,858 and $2,980 during the
three months ended September 30, 2010 and December 30, 2009,
respectively, and $2,757 and $10,919 during the years ended December
31, 2010 and 2009, respectively. The non-credit component of OTTI
recognized in accumulated other comprehensive loss was $219 and $1,547
during the three months ended September 30, 2010 and December 31,
2009, respectively, and $282 and $3,004 during the years ended
December 31, 2010 and 2009, respectively. There were no non-credit
OTTI charges recognized during the three months ended December 31,
2010.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
----------------------------------------
December 31, September 30, December 31,
2010 2010 2009
------------ ------------ ------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.31 $ 0.34 $ 0.24
Return on Average Assets 1.05% 1.11% 0.83%
Return on Average Stockholders'
Equity 12.94% 14.23% 11.07%
Return on Average Tangible
Stockholders' Equity 15.29% 16.92% 13.38%
Net Interest Spread 3.51% 3.44% 3.28%
Net Interest Margin 3.71% 3.60% 3.48%
Non-interest Expense to Average
Assets 1.55% 1.46% 1.51%
Efficiency Ratio 41.87% 40.35% 45.55%
Effective Tax Rate 42.26% 42.61% 33.61%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 9.50 $ 9.33 $ 8.57
Tangible Book Value Per Share 8.07 7.86 7.09
Average Balance Data:
Average Assets $ 4,016,457 $ 4,090,033 $ 3,902,218
Average Interest Earning Assets 3,789,755 3,806,510 3,685,509
Average Stockholders' Equity 326,529 319,090 292,480
Average Tangible Stockholders'
Equity 276,184 268,477 242,071
Average Loans 3,454,730 3,440,764 3,332,367
Average Deposits 2,353,411 2,406,853 2,197,708
Asset Quality Summary:
Net charge-offs $ 1,211 $ 6,817 $ 2,970
Non-accrual Loans 20,168 19,598 11,294
Nonperforming Loans/Total Loans 0.58% 0.57% 0.33%
Nonperforming Assets (1) 20,732 20,242 12,737
Nonperforming Assets/Total Assets 0.51% 0.51% 0.32%
Allowance for Loan Loss/Total
Loans 0.55% 0.49% 0.63%
Allowance for Loan
Loss/Nonperforming Loans 95.03% 86.45% 190.41%
Loans Delinquent 30 to 89 Days at
period end $ 21,483 $ 15,729 $ 29,548
Regulatory Capital Ratios:
Consolidated Tangible
Stockholders' Equity to
Tangible Assets at period end 7.01% 6.90% 6.26%
Tangible Capital Ratio (Bank
Only) 8.22% 8.01% 7.59%
Leverage Capital Ratio (Bank
Only) 8.22% 8.01% 7.59%
Risk Based Capital Ratio (Bank
Only) 11.95% 11.07% 11.22%
For the Year Ended
--------------------------
December 31, December 31,
2010 2009
------------ ------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 1.24 $ 0.79
Return on Average Assets 1.01% 0.66%
Return on Average Stockholders'
Equity 13.15% 9.20%
Return on Average Tangible
Stockholders' Equity 15.68% 11.08%
Net Interest Spread 3.34% 2.73%
Net Interest Margin 3.53% 2.96%
Non-interest Expense to Average
Assets 1.52% 1.44%
Efficiency Ratio 42.74% 48.65%
Effective Tax Rate 41.08% 34.98%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 9.50 $ 8.57
Tangible Book Value Per Share 8.07 7.09
Average Balance Data:
Average Assets $ 4,083,387 $ 3,966,441
Average Interest Earning Assets 3,837,007 3,761,865
Average Stockholders' Equity 314,774 284,610
Average Tangible Stockholders'
Equity 263,946 236,455
Average Loans 3,455,649 3,287,445
Average Deposits 2,357,001 2,268,442
Asset Quality Summary:
Net charge-offs $ 13,821 $ 8,993
Non-accrual Loans 20,168 11,294
Nonperforming Loans/Total Loans 0.58% 0.33%
Nonperforming Assets (1) 20,732 12,737
Nonperforming Assets/Total Assets 0.51% 0.32%
Allowance for Loan Loss/Total
Loans 0.55% 0.63%
Allowance for Loan
Loss/Nonperforming Loans 95.03% 190.41%
Loans Delinquent 30 to 89 Days at
period end $ 21,483 $ 29,548
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at
period end 7.01% 6.26%
Tangible Capital Ratio (Bank
Only) 8.22% 7.59%
Leverage Capital Ratio (Bank
Only) 8.22% 7.59%
Risk Based Capital Ratio (Bank
Only) 11.95% 11.22%
(1) Amount comprised of total non-accrual loans, other real estate owned
and the recorded balance of two pooled bank trust preferred security
investments for which the Bank has not received any contractual
payments of interest or principal in over 90 days.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
-----------------------------------------
December 31, 2010
----------------------------------------
Average
Average Yield/
Balance Interest Cost
------------- ------------ ------------
Assets:
Interest-earning assets:
Real estate loans $ 3,453,522 $ 50,752 5.88%
Other loans 1,208 26 8.61
Mortgage-backed securities 148,032 1,621 4.38
Investment securities 82,288 268 1.30
Other short-term investments 104,705 857 3.27
------------- ------------ ------------
Total interest earning
assets 3,789,755 $ 53,524 5.65%
------------- ------------
Non-interest earning assets 226,702
-------------
Total assets $ 4,016,457
=============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 99,464 $ 129 0.51%
Money Market accounts 727,566 1,202 0.66
Savings accounts 321,825 206 0.25
Certificates of deposit 1,073,640 5,468 2.02
------------- ------------ ------------
Total interest bearing
deposits 2,222,495 7,005 1.25
Borrowed Funds 1,194,118 11,385 3.78
------------- ------------ ------------
Total interest-bearing
liabilities 3,416,613 $ 18,390 2.14%
------------- ------------ ------------
Non-interest bearing checking
accounts 130,916
Other non-interest-bearing
liabilities 142,399
-------------
Total liabilities 3,689,928
Stockholders' equity 326,529
-------------
Total liabilities and
stockholders' equity $ 4,016,457
=============
Net interest income $ 35,134
============
Net interest spread 3.51%
============
Net interest-earning assets $ 373,142
=============
Net interest margin 3.71%
============
Ratio of interest-earning assets
to interest-bearing liabilities 110.92%
============
Deposits (including non-interest
bearing checking accounts) $ 2,353,411 $ 7,005 1.18%
Interest earning assets
(excluding prepayment and other
fees) 5.56%
For the Three Months Ended
----------------------------------------
September 30, 2010
----------------------------------------
Average
Average Yield/
Balance Interest Cost
------------- ------------ ------------
Assets:
Interest-earning assets:
Real estate loans $ 3,439,448 $ 50,648 5.89%
Other loans 1,316 28 8.51
Mortgage-backed securities 166,672 1,846 4.43
Investment securities 64,325 290 1.80
Other short-term investments 134,749 702 2.08
------------- ------------ ------------
Total interest earning
assets 3,806,510 $ 53,514 5.62%
------------- ------------
Non-interest earning assets 283,523
-------------
Total assets $ 4,090,033
=============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 98,588 $ 99 0.40%
Money Market accounts 760,509 1,221 0.64
Savings accounts 317,243 202 0.25
Certificates of deposit 1,107,791 5,861 2.10
------------- ------------ ------------
Total interest bearing
deposits 2,284,131 7,383 1.28
Borrowed Funds 1,213,607 11,855 3.88
------------- ------------ ------------
Total interest-bearing
liabilities 3,497,738 $ 19,238 2.18%
------------- ------------ ------------
Non-interest bearing checking
accounts 122,722
Other non-interest-bearing
liabilities 150,483
-------------
Total liabilities 3,770,943
Stockholders' equity 319,090
-------------
Total liabilities and
stockholders' equity $ 4,090,033
=============
Net interest income $ 34,276
============
Net interest spread 3.44%
============
Net interest-earning assets $ 308,772
=============
Net interest margin 3.60%
============
Ratio of interest-earning assets
to interest-bearing liabilities 108.83%
============
Deposits (including non-interest
bearing checking accounts) $ 2,406,853 $ 7,383 1.22%
Interest earning assets
(excluding prepayment and other
fees) 5.54%
For the Three Months Ended
----------------------------------------
December 31, 2009
----------------------------------------
Average
Average Yield/
Balance Interest Cost
------------- ------------ ------------
Assets:
Interest-earning assets:
Real estate loans $ 3,330,848 $ 49,277 5.92%
Other loans 1,519 33 8.69
Mortgage-backed securities 226,224 2,551 4.51
Investment securities 46,329 359 3.10
Other short-term investments 80,589 744 3.69
------------- ------------ ------------
Total interest earning
assets 3,685,509 $ 52,964 5.75%
------------- ------------
Non-interest earning assets 216,709
-------------
Total assets $ 3,902,218
=============
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 106,428 $ 237 0.88%
Money Market accounts 713,234 1,651 0.92
Savings accounts 298,604 200 0.27
Certificates of deposit 969,370 5,618 2.30
------------- ------------ ------------
Total interest bearing
deposits 2,087,636 7,706 1.46
Borrowed Funds 1,268,568 13,173 4.12
------------- ------------ ------------
Total interest-bearing
liabilities 3,356,204 $ 20,879 2.47%
------------- ------------ ------------
Non-interest bearing checking
accounts 110,072
Other non-interest-bearing
liabilities 143,462
-------------
Total liabilities 3,609,738
Stockholders' equity 292,480
-------------
Total liabilities and
stockholders' equity $ 3,902,218
=============
Net interest income $ 32,085
============
Net interest spread 3.28%
============
Net interest-earning assets $ 329,305
=============
Net interest margin 3.48%
============
Ratio of interest-earning assets
to interest-bearing
liabilities 109.81%
============
Deposits (including non-interest
bearing checking accounts) $ 2,197,708 $ 7,706 1.39%
Interest earning assets
(excluding prepayment and other
fees) 5.70%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS
(Dollars In thousands)
At December At September At December
31, 30, 31,
Non-Performing Loans 2010 2010 2009
----------- ----------- ------------
One- to four-family $ 180 $ 224 $ 371
Multifamily residential and
mixed use (1) 8,654 12,934 7,820
Commercial real estate (1) 11,274 6,396 3,070
Cooperative apartment 43 25 26
Other 17 19 7
----------- ----------- ------------
Total Non-Performing Loans (2) $ 20,168 $ 19,598 $ 11,294
----------- ----------- ------------
Other Non-Performing Assets
Other real estate owned (3) - 85 755
Pooled bank trust preferred
securities 564 559 688
----------- ----------- ------------
Total Non-Performing Assets $ 20,732 $ 20,242 $ 12,737
----------- ----------- ------------
Troubled Debt Restructurings not
included in non-performing
loans
Multifamily residential and
mixed use 2,098 - -
Commercial real estate 8,736
Construction - 6,600 -
Mixed Use 1,588 1,040 1,040
Other - - -
----------- ----------- ------------
Total Troubled Debt
Restructurings ("TDRs") (1) $ 12,422 $ 7,640 $ 1,040
----------- ----------- ------------
(1) While the loans within both of these categories are often considered
"commercial real estate" in nature, they are classified separately in
the statement above to provide further emphasis upon the discrete
composition of their underlying real estate collateral.
(2) Total non-performing loans include some loans that have been modified
in a manner that would meet the criteria for a TDR. These non-accruing
TDR's, which totaled $10.1 million at December 31, 2010, $3.6 million
at September 30, 2010 and $4.6 million at December 31, 2009,
respectively, are included in the non-performing loan table, but
excluded from the TDR amount shown above.
(3) Amount was fully comprised of multifamily residential loans at both
September 30, 2010 and December 31, 2009.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES
At December At September
31, 30,
2010 2010
----------- -----------
Total Non-Performing Assets $ 20,732 $ 20,242
Loans over 90 days past due on
accrual status 8,340 (4) -
----------- -----------
PROBLEM ASSETS $ 29,072 $ 20,242
----------- -----------
Tier 1 Capital - Dime Savings
Bank of Williamsburgh $ 326,554 $ 314,587
Allowance for loan losses 19,166 16,942
----------- -----------
TANGIBLE CAPITAL PLUS
RESERVES $ 345,720 $ 331,529
----------- -----------
PROBLEM ASSETS AS A PERCENTAGE
OF TANGIBLE CAPITAL AND RESERVES 8.4% 6.1%
(4) These loans are expected to be either satisfied or re-financed during
2011, and are not expected to result in any loss of contractual
principal or interest. These loans are not included in non-performing
loans.
Contact Information: Contact: Kenneth Ceonzo Director of Investor Relations 718-782-6200 extension 8279