-- The Company recorded a non-recurring reduction to interest expense of
$764,000 related to the restructuring of $170.0 million of borrowings.
Upon completing the transaction, the average interest rate on these
borrowed funds dropped from 4.53% to 3.79%.
-- The annualized loan amortization rate decreased slightly from 16% to
approximately 15% sequentially. Prepayment fee income was $1.3 million,
compared to $2.1 million in the June 2006 quarter and $1.3 million in the
September 2005 quarter.
-- The Bank's credit profile remained outstanding, with nonperforming
loans remaining unchanged from the prior quarter at 0.11% of total loans.
-- Deposits remained relatively constant, although linked quarter average
cost of deposits rose from 2.80% to 3.10% during the quarter.
-- Real estate loan originations rose to $174.5 million at an average
rate of 6.58%, compared to $134.8 million at an average interest rate of
6.44% during the second quarter of 2006.
-- Loans in the pipeline approximated $89.8 million at quarter-end,
including commitments for sale to Fannie Mae of $6.5 million.
-- Net interest margin was 2.53%, 26 basis points lower sequentially.
-- The Company repurchased 179,448 shares of its common stock. The
consolidated tangible equity ratio remained nearly unchanged at 7.88%.
-- Quarterly non-interest expense remained relatively constant from the
June 2006 quarter, and declined by 1% year-over-year.
FINANCIAL RESULTS
For the quarter ended September 30, 2006, the Company's pre-tax income,
excluding gains and losses on the sale of assets, was $10.4 million,
compared to $13.9 million in the same quarter of the previous year. The
$3.5 million decrease was due to a decline of $3.6 million in net interest
income that was offset slightly by a decline of $116,000 in non-interest
expense.
Average earning assets declined by $128.9 million year-over-year. The net
interest margin contracted 36 basis points, from 2.89% during the September
2005 quarter to 2.53% during the September 2006 quarter.
On a linked quarter basis, the Company's pre-tax income, excluding gains
and losses on the sale of assets, decreased $2.2 million, from $12.6
million during the June 2006 quarter to $10.4 million during the quarter
ended September 30, 2006, primarily due to a decline in net interest income
of $2.2 million. The net interest margin decreased 26 basis points, to
2.53% during the September 2006 quarter from 2.79% in the June 2006
quarter.
Prepayment fee income was $1.3 million in the quarter ended September 30,
2006, compared to $2.1 million in the quarter ended June 30, 2006, and
$1.3 million in the quarter ended September 30, 2005. While loan repayment
speeds declined from the previous quarter, they still fell above the 10 -
12% range anticipated by management for 2006. The average interest rate on
loan repayments was 5.99% during the September 2006 quarter compared to an
average origination rate of 6.58%. For the first nine months of 2006,
annualized loan repayment speeds approximated 13%, compared with speeds of
14% and 24% during the years ended December 31, 2005 and 2004,
respectively.
Excluding all prepayment fee income from the calculation of net interest
margin, the margin deteriorated on a linked quarter basis from 2.50% to
2.35% due to an increase of 30 basis points in the average cost of deposits
that resulted from increases in interest rates during 2005 and 2006.
The yield on interest earning assets decreased 8 basis points on a linked
quarter basis, due solely to the decline in prepayment fee income.
Excluding the effect of prepayment fee income, the yield on interest
earning assets would have increased 5 basis points on a linked quarter
basis, reflecting both an increase in yield on the Company's real estate
loans (excluding prepayment fee income) and mortgage backed securities,
both of which resulted from interest rate increases during 2005 and 2006,
and the movement of a greater percentage of the total interest earning
assets from securities into real estate loans, the Company's highest
yielding asset. The average yield on real estate loans, excluding the
effects of prepayment fee income, was 5.70% during the quarter ended
September 30, 2006 and 5.67% during the quarter ended June 30, 2006. The
interest rates on newly originated real estate loans continued to increase,
averaging 6.58% during the third quarter of 2006, up from 5.84% during the
third quarter of 2005 and 6.44% during the second quarter of 2006. This,
combined with both a reduction in the levels of lower-yielding securities
and the increase in yield on existing real estate loans also contributed
greatly to the increase of 5 basis points in yield on earning assets
(excluding prepayment fee income) on a linked quarter basis.
During the third quarter of 2006, deposits remained relatively constant,
with an increase of $5.0 million in core (non-certificate) deposits offset
by a decrease of $5.0 million in certificates of deposit, as promotional
activities during the most recent quarter resulted in the transfer of
deposit funds from certificates of deposit into money market accounts.
Average deposits per branch approximated $92 million at September 30, 2006,
unchanged from the June 2006 quarter and lower than the $101 million
average at September 30, 2005. The loan-to-deposit ratio was 137% at
September 30, 2006, compared to 128% at September 30, 2005 and 138% at June
30, 2006. The decline in the average deposits per branch and the increase
in the loan-to-deposit ratio in the September 2006 quarter compared to the
September 2005 quarter resulted primarily from a reduction of $84.2 million
in deposits from their September 30, 2005 level. This was due to a decline
in money market deposits from September 2005 through June 2006, a period
during which the Bank elected not to compete aggressively to retain money
market deposits in light of rising short-term interest rates. Core deposits
comprised 47% of total deposits at both September 30, 2006 and June 30,
2006, decreasing slightly from the 49% level at September 30, 2005 as a
result of the decline in money market deposits from September 30, 2005
through both June 30, 2006 and September 30, 2006.
During the quarter ended September 30, 2006, the Company restructured
$170.0 million of wholesale borrowings. Under this restructuring, $120.0
million of securities sold under agreement to repurchase ("reverse repos")
and $50.0 million in FHLBNY advances with a 1-year average life were
prepaid and replaced with borrowings having a final maturity of 10 years
(callable after 1 - 3 years). The prepaid borrowings had a weighted
average interest rate of 4.53%, and were replaced with a combination of
reverse repos and FHLBNY advances having an initial weighted average
interest rate of 3.79%. The new FHLBNY advances have a fixed weighted
average interest rate of 4.36%. The new reverse repos are variable rate
initially, and, if not called by the lender, convert to a fixed rate of
4.90% until maturity. The Company recorded a non-recurring reduction of
$764,000 in interest expense related to the prepayment.
Non-interest income, excluding gains or losses on the sale of assets,
totaled $2.4 million during the quarter ended September 30, 2006,
relatively constant from both the September 2005 and June 2006 quarters.
The Company sold loans to Fannie Mae totaling $92.3 million, $25.5 million
and $21.0 million, recording gains of $779,000, $284,000 and $253,000,
during the quarters ended September 30, 2006, September 30, 2005 and June
30, 2006, respectively. All of the loans sold during each of these periods
were designated for sale upon origination. The loans sold during the
quarter ended September 30, 2006 had a weighted average term to the earlier
of maturity or next repricing of 10.2 years.
During the quarter ended June 30, 2006, the Company recorded a pre-tax gain
of $1.1 million on the sale of mutual fund investments associated with its
Benefit Maintenance Plan. The gain resulted from a reallocation of
investments held to fund future supplemental retirement benefits. Since
these available-for-sale investments were carried at market value under
U.S. Generally Accepted Accounting Principles, the after-tax gain was
previously reflected in the Company's stockholders' equity. The act of
reallocating the investments caused the Company to recognize a gain in its
income statement. There were no sales of securities or other assets during
the quarters ended September 30, 2006 and 2005.
Non-interest expense totaled $10.6 million during the quarter ended
September 30, 2006, relatively flat sequentially, and a decrease of
$116,000, or 1.1%, from the September 2005 quarter. The decrease of
$116,000 was due partially to a decline of $159,000 in data processing
systems expense that resulted from a settlement of expenses with the
Company's previous systems provider that occurred in the September 2005
quarter.
Non-interest expense to average assets was 1.37% in the September 2006
quarter, compared to 1.32% for the quarter ended September 30, 2005, and
1.34% for the quarter ended June 2006. The increase in the ratio resulted
primarily from a decline of $138 million in average assets from the
September 2005 quarter to the September 2006 quarter, as the Company
permitted liabilities to runoff without being replaced during the period
(thus reducing interest earning assets) in response to unfavorable market
conditions.
The effective tax rate was 35.9% for the quarter ended September 30, 2006,
35.1% for the quarter ended June 30, 2006 and 35.9% for the quarter ended
September 30, 2005. The effective tax rate is expected to approximate
36.0% for the full year ending December 31, 2006.
REAL ESTATE LENDING AND CREDIT QUALITY
Real estate loan originations totaled $174.5 million during the quarter
ended September 30, 2006, of which $33.3 million, or 19%, represented
commercial real estate. The average rate on total loan originations during
the quarter was 6.58%, compared to 5.84% in the quarter ended September 30,
2005 and 6.44% during the quarter ended June 30, 2006. Commercial real
estate represented 25% of the gross loan portfolio at September 30, 2006,
compared with 22% as of December 31, 2005. The commercial real estate
portfolio grew at a 21% rate year-over-year.
Real estate loan prepayment and amortization during the September 2006
quarter approximated 15% of the loan portfolio on an annualized basis,
unchanged from the September 2005 quarter and down slightly from 16% during
the June 2006 quarter. The average interest rate on real estate loan
prepayment and amortization during the most recent quarter was 5.99%.
Non-performing loans were $2.9 million at September 30, 2006, representing
only 0.11% of total loans. There were no new loans added to non-performing
status during the September 2006 quarter. Management does not currently
expect to incur any significant losses on these loans.
STOCKHOLDERS' EQUITY AND SHARE REPURCHASE PROGRAM
The Company's total stockholders' equity at September 30, 2006 was $295.7
million, or 9.43% of total assets, compared to $293.1 million, or 9.38% of
total assets, at June 30, 2006. After outlays for dividends paid to
shareholders and share repurchases, by the end of the third quarter of 2006
the Company's tangible equity had climbed to $243.4 million, as compared to
$242.2 million at June 30, 2006. The quarterly cash dividend paid in
August 2006 represented a payout ratio of 70% of third quarter 2006
earnings. At September 30, 2006, tangible stockholders' equity was 7.88%
of tangible assets and the tangible book value per share was $6.64.
During the quarter ended September 30, 2006, the return on average
stockholders' equity was 9.7%, the return on average tangible equity was
11.8%, and the cash return on average tangible equity was 12.4%.
During the third quarter of 2006, the Company repurchased into treasury
179,448 shares, or 0.5%, of its common stock outstanding at June 30, 2006.
As of September 30, 2006, the Company had an additional 47,965 shares
remaining eligible for repurchase under its tenth stock repurchase program,
approved in May 2004. On December 15, 2005, the Board of Directors
approved the Company's eleventh stock repurchase program, which authorizes
the purchase, at the discretion of management, of an additional 1,847,977
shares.
OUTLOOK
At present, the overall yield on the Company's interest-earning assets is
rising (excluding the effects of prepayment fee income). The average yield
on interest earning assets, excluding the effects of prepayment fee income,
rose on a linked quarter basis, from 5.54% to 5.59%.
The cost of deposits rose from 2.80% during the June 30, 2006 quarter to
3.10% during the September 2006 quarter. This trend is likely to continue,
whether or not the Bank grows deposits. The rising cost of deposits is due
to a combination of repricing lower rate deposits already on the books,
plus the cost of attracting new deposits.
At 13.6% annualized during the first nine months of 2006, prepayment and
amortization rates were slightly in excess of the range anticipated by
management, and are expected to fall within a 10% to 12% range during the
final quarter of 2006. At September 30, 2006, the real estate loan
commitment pipeline approximated $89.8 million, with a weighted average
interest rate of 6.63%, including $6.5 million of loan commitments intended
for sale to Fannie Mae.
Operating expenses are expected to be approximately $10.7 million in the
fourth quarter of 2006. Share repurchases are expected to be in line with
recent practices. The Company is positioned, however, to be opportunistic
in the purchase of its own shares should conditions warrant. Based on this
outlook, the Company now expects fourth quarter 2006 earnings per diluted
share to be in the range of $0.16 to $0.18.
"The cost of deposits will continue to determine the direction of
earnings," Mr. Palagiano stated. "While there is disagreement about the
direction of the economy and Fed policy, we believe that most of the
increase in deposit rates is behind us. We believe deposit costs are
already near their peak and will level off within the next quarter or two.
With a strong capital base and a low level of nonperforming assets, we look
forward to regaining momentum in both growth and earnings."
ABOUT DIME COMMUNITY BANCSHARES
Dime Community Bancshares, Inc., a unitary thrift holding company, is the
parent company of The Dime Savings Bank of Williamsburgh, founded in 1864,
and headquartered in Brooklyn, New York. With $3.14 billion in assets as
of September 30, 2006, the Bank has twenty-one branches located throughout
Brooklyn, Queens, the Bronx and Nassau County, New York. More information
on the Company and Bank can be found on the Bank's Internet website at
www.dimedirect.com.
This News Release contains a number of forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). These statements may be identified by use of words such
as "anticipate," "believe," "could," "estimate," "expect," "intend," "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. These factors include, without limitation, the following: the
timing and occurrence or non-occurrence of events may be subject to
circumstances beyond the Company's control; there may be increases in
competitive pressure among financial institutions or from non-financial
institutions; changes in the interest rate environment may reduce interest
margins; changes in deposit flows, loan demand or real estate values may
adversely affect the business of the Bank; changes in accounting
principles, policies or guidelines may cause the Company's financial
condition to be perceived differently; changes in corporate and/or
individual income tax laws may adversely affect the Company's financial
condition or results of operations; general economic conditions, either
nationally or locally in some or all areas in which the Company conducts
business, or conditions in the securities markets or the banking industry
may be less favorable than the Company currently anticipates; legislation
or regulatory changes may adversely affect the Company's business;
technological changes may be more difficult or expensive than the Company
anticipates; success or consummation of new business initiatives may be
more difficult or expensive than the Company anticipates; or 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.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
September 30,
2006 December 31,
(Unaudited) 2005
------------- -------------
ASSETS:
Cash and due from banks $ 22,539 $ 40,199
Investment securities held to maturity 380 455
Investment securities available for sale 29,170 44,832
Mortgage-backed securities available for
sale 162,938 193,453
Federal funds sold and other short-term
assets 94,082 60,014
Real estate Loans:
One-to-four family and cooperative
apartment 158,861 145,754
Multifamily and underlying cooperative 1,811,961 1,873,940
Commercial real estate 653,806 576,561
Construction and land acquisition 15,738 12,098
Unearned discounts and net deferred loan
fees 924 501
------------- -------------
Total real estate loans 2,641,290 2,608,854
------------- -------------
Other loans 2,234 2,341
Allowance for loan losses (15,956) (15,785)
------------- -------------
Total loans, net 2,627,568 2,595,410
------------- -------------
Loans held for sale - 900
Premises and fixed assets, net 22,610 16,527
Federal Home Loan Bank of New York capital
stock 31,745 29,917
Goodwill 55,638 55,638
Other assets 90,930 88,881
------------- -------------
TOTAL ASSETS $ 3,137,600 $ 3,126,226
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Checking, NOW and Super NOW $ 127,541 $ 135,698
Savings 305,716 335,527
Money Market 470,541 464,962
------------- -------------
Sub-total 903,798 936,187
------------- -------------
Certificates of deposit 1,026,897 978,585
------------- -------------
Total Due to depositors 1,930,695 1,914,772
------------- -------------
Escrow and other deposits 68,035 47,518
Securities sold under agreements to
repurchase 120,380 205,455
Federal Home Loan Bank of New York advances 581,500 531,500
Subordinated Notes Sold 25,000 25,000
Trust Preferred Notes Payable 72,165 72,165
Other liabilities 44,078 38,102
------------- -------------
TOTAL LIABILITIES 2,841,853 2,834,512
------------- -------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 50,862,445 shares and 50,633,881
shares issued at September 30, 2006 and
December 31, 2005, respectively, and
36,665,264 shares and 36,956,907 shares outstanding at
September 30, 2006 and December 31, 2005,
respectively) 509 506
Additional paid-in capital 206,351 204,083
Retained earnings 284,367 274,579
Unallocated common stock of Employee Stock
Ownership Plan (4,453) (4,627)
Unearned common stock of Recognition and
Retention Plan (3,518) (2,979)
Common stock held by the Benefit Maintenance
Plan (7,941) (7,941)
Treasury stock (14,197,181 shares and
13,676,974 shares at September 30, 2006
and December 31, 2005, respectively) (176,034) (168,579)
Accumulated other comprehensive loss, net (3,534) (3,328)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 295,747 291,714
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,137,600 $ 3,126,226
============= =============
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
September 30, June 30, September 30,
----------- ---------- -----------
2006 2006 2005
----------- ---------- -----------
Interest income:
Loans secured by real estate $ 39,122 $ 39,844 $ 37,472
Other loans 47 45 29
Mortgage-backed securities 1,666 1,753 2,010
Investment securities 454 469 601
Other 1,384 1,522 2,230
----------- ---------- -----------
Total interest income 42,673 43,633 42,342
----------- ---------- -----------
Interest expense:
Deposits and escrow 15,019 13,554 10,690
Borrowed funds 8,948 9,228 9,306
----------- ---------- -----------
Total interest expense 23,967 22,782 19,996
----------- ---------- -----------
Net interest income 18,706 20,851 22,346
Provision for loan losses 60 60 60
----------- ---------- -----------
Net interest income after
provision for loan losses 18,646 20,791 22,286
----------- ---------- -----------
Non-interest income:
Service charges and other fees 1,507 1,457 1,561
Net gain (loss) on sales and
redemptions of assets 779 1,317 284
Other 849 919 796
----------- ---------- -----------
Total non-interest income 3,135 3,693 2,641
----------- ---------- -----------
Non-interest expense:
Compensation and benefits 6,006 5,804 6,059
Occupancy and equipment 1,504 1,379 1,389
Core deposit intangible
amortization - - -
Other 3,110 3,345 3,288
----------- ---------- -----------
Total non-interest expense 10,620 10,528 10,736
----------- ---------- -----------
Income before taxes 11,161 13,956 14,191
Income tax expense 4,002 4,896 5,089
----------- ---------- -----------
Net Income $ 7,159 $ 9,060 $ 9,102
=========== ========== ===========
Earnings per Share:
Basic $ 0.21 $ 0.26 $ 0.26
=========== ========== ===========
Diluted $ 0.20 $ 0.26 $ 0.26
=========== ========== ===========
Average common shares
outstanding for Diluted EPS 35,028,903 35,202,812 35,553,132
For the Nine Months Ended
September 30, September 30,
----------- ----------
2006 2005
Interest income: ----------- ----------
Loans secured by real estate $ 116,805 $ 110,753
Other loans 141 96
Mortgage-backed securities 5,264 9,770
Investment securities 1,405 1,963
Other 4,062 5,071
----------- ----------
Total interest income 127,677 127,653
----------- ----------
Interest expense:
Deposits and escrow 40,069 30,256
Borrowed funds 27,610 26,956
----------- ----------
Total interest expense 67,679 57,212
----------- ----------
Net interest income 59,998 70,441
Provision for loan losses 180 180
----------- ----------
Net interest income after
provision for loan losses 59,818 70,261
----------- ----------
Non-interest income (loss):
Service charges and other fees 4,461 4,483
Net gain (loss) on sales and
redemptions of assets 2,973 (4,605)
Other 2,554 2,666
----------- ----------
Total non-interest income
(loss) 9,988 2,544
----------- ----------
Non-interest expense:
Compensation and benefits 17,678 17,290
Occupancy and equipment 4,295 4,002
Core deposit intangible
amortization - 48
Other 9,623 9,087
----------- ----------
Total non-interest expense 31,596 30,427
----------- ----------
Income before taxes 38,210 42,378
Income tax expense 13,583 15,147
----------- ----------
Net Income $ 24,627 $ 27,231
=========== ==========
Earnings per Share:
Basic $ 0.70 $ 0.77
=========== ==========
Diluted $ 0.70 $ 0.76
=========== ==========
Average common shares
outstanding for Diluted EPS 35,200,367 35,653,116
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
Core Earnings and Core Cash Earnings Reconciliations
(Dollars In thousands except per share amounts)
Core earnings and related data are "Non-GAAP Disclosures." These
disclosures present information which management considers useful to the
readers of this report since they present a measure of the results of the
Company's ongoing operations (exclusive of significant non-recurring items
such as gains or losses on sales of investment or mortgage-backed
securities) during the period.
In addition, Core cash earnings and related data are also "Non-GAAP
Disclosures." These disclosures present information which management
considers useful to the readers of this report since they present a measure
of the tangible equity generated from operations during each period
presented. Tangible equity generation is a significant financial measure
since banks are subject to regulatory requirements involving the
maintenance of minimum tangible capital levels.
The following tables present a reconciliation of GAAP net income and both
core earnings and core cash earnings, as well as financial performance
ratios determined based upon core earnings and core cash earnings, for
each of the periods presented:
For the Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2006 2006 2005
----------- ----------- -----------
Net income as reported $ 7,159 $ 9,060 $ 9,102
Pre-tax net (gain) loss on sale of
securities and other assets - (1,064) -
Pre-tax income from borrowings
restructuring (764) - -
Tax effect of adjustments 271 378 -
----------- ----------- -----------
Core Earnings $ 6,666 $ 8,374 $ 9,102
----------- ----------- -----------
Cash Earnings Additions :
Core Deposit Intangible Amortization - - -
Non-cash stock benefit plan expense 342 358 359
----------- ----------- -----------
Core Cash Earnings $ 7,008 $ 8,732 $ 9,461
----------- ----------- -----------
Performance Ratios (Based upon Core
Cash Earnings):
Core Cash EPS (Diluted) $ 0.20 $ 0.25 0.27
Core Cash Return on Average Assets 0.90% 1.11% 1.17%
Core Cash Return on Average Tangible
Stockholders' Equity 11.55% 14.46% 16.13%
For the Nine Months Ended
-------------------------
September 30, September 30,
2006 2005
----------- -----------
Net income as reported $ 24,627 $ 27,231
Pre-tax net (gain) loss on sale of
securities and other assets (1,542) 5,176
Pre-tax income from borrowings
restructuring (807) -
Tax effect of adjustments 839 (2,143)
----------- -----------
Core Earnings $ 23,117 $ 30,264
----------- -----------
Cash Earnings Additions :
Core Deposit Intangible Amortization - 48
Non-cash stock benefit plan expense 1,067 1,054
----------- -----------
Core Cash Earnings $ 24,184 $ 31,366
----------- -----------
Performance Ratios (Based upon Core
Cash Earnings):
Core Cash EPS (Diluted) $ 0.69 0.88
Core Cash Return on Average Assets 1.03% 1.26%
Core Cash Return on Average Tangible
Stockholders' Equity 13.38% 18.02%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2006 2006 2005
----------- ----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.20 $ 0.26 $ 0.26
Return on Average Assets 0.92% 1.16% 1.12%
Return on Average Stockholders'
Equity 9.73% 12.37% 12.62%
Return on Average Tangible
Stockholders' Equity 11.80% 15.00% 15.52%
Net Interest Spread 2.15% 2.36% 2.61%
Net Interest Margin 2.53% 2.79% 2.89%
Non-interest Expense to Average
Assets 1.37% 1.34% 1.32%
Efficiency Ratio 50.42% 45.33% 43.46%
Effective Tax Rate 35.86% 35.08% 35.86%
Performance Ratios (Based upon Core
Earnings):
Core EPS (Diluted) $ 0.19 $ 0.24 $ 0.26
Core Return on Average Assets 0.86% 1.07% 1.12%
Core Return on Average Stockholders'
Equity 9.06% 11.44% 12.62%
Core Return on Average Tangible
Stockholders' Equity 10.99% 13.87% 15.52%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 8.07 $ 7.97 $ 7.82
Tangible Book Value Per Share 6.64 6.58 6.39
Average Balance Data:
Average Assets $ 3,109,183 $ 3,134,815 $ 3,247,216
Average Interest Earning Assets 2,961,903 2,992,772 3,090,823
Average Stockholders' Equity 294,305 292,882 288,431
Average Tangible Stockholders'
Equity 242,658 241,554 234,560
Average Loans 2,656,014 2,658,556 2,560,963
Average Deposits 1,920,061 1,942,554 2,056,864
Asset Quality Summary:
Net charge-offs (recoveries) $ 0 $ 8 $ (2)
Nonperforming Loans 2,889 2,885 4,608
Nonperforming Loans/ Total Loans 0.11% 0.11% 0.18%
Nonperforming Assets/Total Assets 0.09% 0.09% 0.14%
Allowance for Loan Loss/Total Loans 0.60% 0.60% 0.60%
Allowance for Loan
Loss/Nonperforming Loans 552.30% 555.74% 335.55%
Regulatory Capital Ratios:
Consolidated Tangible Equity to
Tangible Assets at period end 7.88% 7.87% 7.44%
Tangible Capital Ratio (Bank Only) 9.64% 9.39% 9.20%
Leverage Capital Ratio (Bank Only) 9.64% 9.39% 9.20%
Risk-Based Capital Ratio (Bank
Only) 13.61% 13.38% 13.84%
For the Nine Months Ended
------------------------
September 30, September 30,
2006 2005
----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.70 $ 0.76
Return on Average Assets 1.05% 1.10%
Return on Average Stockholders'
Equity 11.21% 12.75%
Return on Average Tangible
Stockholders' Equity 13.63% 15.64%
Net Interest Spread 2.29% 2.68%
Net Interest Margin 2.69% 2.97%
Non-interest Expense to Average
Assets 1.35% 1.22%
Efficiency Ratio 47.15% 39.22%
Effective Tax Rate 35.55% 35.74%
Performance Ratios (Based upon Core
Earnings):
Core EPS (Diluted) $ 0.66 $ 0.85
Core Return on Average Assets 0.99% 1.22%
Core Return on Average Stockholders'
Equity 10.53% 14.17%
Core Return on Average Tangible
Stockholders' Equity 12.79% 17.39%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 8.07 $ 7.82
Tangible Book Value Per Share 6.64 6.39
Average Balance Data:
Average Assets $ 3,120,938 $ 3,313,154
Average Interest Earning Assets 2,973,751 3,163,811
Average Stockholders' Equity 292,805 284,857
Average Tangible Stockholders'
Equity 240,967 232,098
Average Loans 2,647,969 2,514,698
Average Deposits 1,920,958 2,124,448
Asset Quality Summary:
Net charge-offs (recoveries) $ 19 $ (17)
Nonperforming Loans 2,889 4,608
Nonperforming Loans/Total Loans 0.11% 0.18%
Nonperforming Assets/Total Assets 0.09% 0.14%
Allowance for Loan Loss/Total Loans 0.60% 0.60%
Allowance for Loan
Loss/Nonperforming Loans 552.30% 335.55%
Regulatory Capital Ratios:
Consolidated Tangible Equity to
Tangible Assets at period end 7.88% 7.44%
Tangible Capital Ratio (Bank Only) 9.64% 9.20%
Leverage Capital Ratio (Bank Only) 9.64% 9.20%
Risk-Based Capital Ratio (Bank
Only) 13.61% 13.84%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
-----------------------------------
September 30, 2006
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ----------- ----------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $ 2,654,055 $ 39,122 5.90%
Other loans 1,959 47 9.60
Mortgage-backed securities 172,116 1,666 3.87
Investment securities 31,376 454 5.79
Other short-term investments 102,397 1,384 5.41
----------- ----------- ----------
Total interest earning assets 2,961,903 $ 42,673 5.76%
----------- -----------
Non-interest earning assets 147,280
-----------
Total assets $ 3,109,183
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 33,814 $ 85 1.00%
Money Market accounts 455,629 3,228 2.81
Savings accounts 312,891 493 0.63
Certificates of deposit 1,023,738 11,213 4.35
----------- ----------- ----------
Total interest bearing
deposits 1,826,072 15,019 3.26
Borrowed Funds 809,054 8,948 4.39
----------- ----------- ----------
Total interest-bearing
liabilities 2,635,126 23,967 3.61%
----------- -----------
Checking accounts 93,989
Other non-interest-bearing
liabilities 85,763
-----------
Total liabilities 2,814,878
Stockholders' equity 294,305
-----------
Total liabilities and stockholders'
equity $ 3,109,183
===========
Net interest income $ 18,706
===========
Net interest spread (1) 2.15%
==========
Net interest-earning assets $ 326,777
===========
Net interest margin (1) 2.53%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 112.40%
==========
Average deposits (including
non-interest bearing checking
accounts) $ 1,920,061 $ 15,019 3.10%
For the Three Months Ended
-----------------------------------
June 30, 2006
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ----------- ----------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $ 2,656,658 $ 39,844 6.00%
Other loans 1,898 45 9.48
Mortgage-backed securities 182,101 1,753 3.85
Investment securities 31,023 469 6.05
Other short-term investments 121,092 1,522 5.03
----------- ----------- ----------
Total interest earning assets 2,992,772 $ 43,633 5.84%
----------- -----------
Non-interest earning assets 142,043
-----------
Total assets $ 3,134,815
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 36,778 $ 91 0.99%
Money Market accounts 452,288 2,578 2.29
Savings accounts 325,403 476 0.59
Certificates of deposit 1,030,354 10,409 4.05
----------- ----------- ----------
Total interest bearing
deposits 1,844,823 13,554 2.95
Borrowed Funds 783,544 9,228 4.72
----------- ----------- ----------
Total interest-bearing
liabilities 2,628,367 22,782 3.48%
----------- -----------
Checking accounts 97,731
Other non-interest-bearing
liabilities 115,835
-----------
Total liabilities 2,841,933
Stockholders' equity 292,882
-----------
Total liabilities and stockholders'
equity $ 3,134,815
===========
Net interest income $ 20,851
===========
Net interest spread (1) 2.36%
==========
Net interest-earning assets $ 364,405
===========
Net interest margin (1) 2.79%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 113.86%
==========
Average deposits (including
non-interest bearing checking
accounts) $ 1,942,554 $ 13,554 2.80%
For the Three Months Ended
-----------------------------------
September 30, 2005
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ----------- ----------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real Estate Loans $ 2,558,690 $ 37,472 5.86%
Other loans 2,273 29 5.10
Mortgage-backed securities 218,204 2,010 3.68
Investment securities 65,259 601 3.68
Other short-term investments 246,397 2,230 3.62
----------- ----------- ----------
Total interest earning assets 3,090,823 $ 42,342 5.48%
----------- -----------
Non-interest earning assets 156,393
-----------
Total assets $ 3,247,216
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super Now accounts $ 39,728 $ 100 1.00%
Money Market accounts 570,067 2,284 1.59
Savings accounts 349,384 486 0.55
Certificates of deposit 1,003,995 7,820 3.10
----------- ----------- ----------
Total interest bearing
deposits 1,963,174 10,690 2.17
Borrowed Funds 809,185 9,306 4.58
----------- ----------- ----------
Total interest-bearing
liabilities 2,772,359 19,996 2.87%
----------- -----------
Checking accounts 93,690
Other non-interest-bearing
liabilities 92,736
-----------
Total liabilities 2,958,785
Stockholders' equity 288,431
-----------
Total liabilities and stockholders'
equity $ 3,247,216
===========
Net interest income $ 22,346
===========
Net interest spread (1) 2.61%
==========
Net interest-earning assets $ 318,464
===========
Net interest margin (1) 2.89%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 111.49%
==========
Average deposits (including
non-interest bearing checking
accounts) $ 2,056,864 $ 10,690 2.06%
Contact Information: Contact: Kenneth Ceonzo Director of Investor Relations 718-782-6200 extension 8279