Dime Community Bancshares, Inc. Reports Strong Quarterly Earnings
Quarterly EPS of $0.30; Solid Loan Growth and Strong Deposit Growth With Loan-to-Deposit Ratio Reduced to 138%
/EINPresswire.com/ -- BROOKLYN, NY--(Marketwired - July 27, 2016) - Dime Community Bancshares, Inc. (NASDAQ: DCOM) today reported net income of $11.2 million for the second quarter of 2016, or $0.30 per diluted common share, compared with $50.0 million, or $1.36 per diluted common share, in the first quarter of 2016. Net income in the first quarter of 2016 (excluding the impact of the gain on sale of real estate taxed at the statutory rate) was $12.6 million, or $0.34 per diluted common share and $11.5 million, or $0.32 per diluted common share, in the second quarter of 2015.
Highlights for the second quarter of 2016 included:
- Average real estate loans grew 26.7% (annualized) on a linked quarter basis and 21.9% over the second quarter of 2015;
- Average deposits grew 34.1% (annualized) on a linked quarter basis and 24.1% over the second quarter of 2015; the strong deposit growth benefited the loan-to-deposit ratio, which declined to 137.8% in the second quarter of 2016 from 147.0% in the first quarter of 2016;
- Strong credit quality, with nonperforming loans to total loans of eight basis points; and
- Efficiency ratio of 47.8%, compared to 49.5% in the first quarter of 2016 and 47.1% in the second quarter of 2015.
Vincent F. Palagiano, Chairman and Chief Executive Officer of the Company, commented, "We are pleased to report another solid quarter of performance, despite the significant headwinds we face from continued low interest rates. Steady loan growth and strong deposit growth led to increased net interest income despite a decline in net interest margin. It's important to note that we delivered these results while maintaining our risk profile and managing our capital effectively."
According to President and Chief Operating Officer Kenneth J. Mahon, "We continue to execute on our strategy to create superior long-term shareholder value. Our focus on deposit growth saw the loan-to-deposit ratio fall to 137.8%, the lowest level since 2007. This quarter continued to show pristine credit quality, with exceptionally low levels of nonperforming loans, and we stayed focused on our cost base, with well-controlled expenses leading to a superior efficiency ratio."
Management's Discussion of Quarterly Operating Results
Net Interest Income
Net interest income in the second quarter of 2016 was $35.6 million, an increase of $979,000 (2.8%) over the first quarter of 2016 and an increase of $2.5 million (7.7%) over the second quarter of 2015. Net Interest Margin ("NIM") was 2.68% during the second quarter of 2016, compared to 2.80% in the first quarter of 2016 and 3.05% in the second quarter of 2015. NIM was negatively impacted in the second quarter of 2016 due to lower income recognized from loan prepayment activity. For the second quarter of 2016, income from prepayment activity totaled $2.0 million, benefiting NIM by 15 basis points, compared to $2.6 million, or 22 basis points, during the first quarter of 2016 and $4.2 million, or 39 basis points, during the second quarter of 2015. Average earning assets were $5.31 billion for the second quarter of 2016, a 28.5% (annualized) increase from $4.96 billion for the first quarter of 2016 and a 22.4% increase from $4.34 billion for the second quarter of 2015. For the second quarter of 2016, the average yield on interest earning assets (excluding prepayment income) was 3.50%, four basis points lower than the 3.54% for first quarter 2016 and 19 basis points lower than the 3.69% for second quarter 2015, while the average cost of funds was 1.14%, two basis points higher than the 1.12% for first quarter 2016 and six basis points lower than the 1.20% for second quarter 2015.
Real Estate Loans
Real estate loan portfolio growth was $151.5 million (11.9% annualized) on a net basis during the second quarter of 2016. Real estate loan originations were $357.3 million during the quarter, at a weighted average interest rate of 3.34%. Of this amount, $104.9 million represented loan refinances from the existing portfolio. Loan amortization and satisfactions totaled $206.1 million, or 16.1% (annualized) of the quarterly average portfolio balance, at an average rate of 4.08%. The average yield on the loan portfolio (excluding income recognized from prepayment activity) was 3.53% during the second quarter of 2016, compared to 3.57% during the first quarter of 2016, and 3.73% during the second quarter of 2015. Average real estate loans were $5.14 billion in the second quarter of 2016, an increase of $321.0 million (26.7% annualized) from the first quarter of 2016 and an increase of $923.4 million (21.9%) from the second quarter of 2015.
Deposits and Borrowed Funds
Deposit growth was $340.5 million (39.6% annualized) during the second quarter of 2016. Given the strong growth in deposits, the loan-to-deposit ratio fell to 137.8% at June 30, 2016, from 147.0% at March 31, 2016 and 146.8% at June 30, 2015. Core deposits increased to $2.75 billion during the second quarter of 2016, from $2.46 billion during the first quarter of 2016 and $2.04 billion during the second quarter of 2015. The average cost of deposits increased three basis points on a linked quarter basis to 0.85%.
Total borrowings decreased $260.0 million during the second quarter of 2016 as compared to the first quarter of 2016. The reduction in borrowings was due to deposit growth outpacing loan growth, and reflects management's desire to decrease reliance on borrowed funds and to grow both its number of customers and deposits.
Non-Interest Income
Non-interest income was $2.3 million during the second quarter of 2016, which was $751,000 (48.3%) higher than the first quarter of 2016, excluding the gain on the sale of real estate, reflecting additional income recognized from mortality proceeds from Bank Owned Life Insurance assets and strong mortgage service fee income. Non-interest income was $628,000 (37.4%) higher than the second quarter of 2015, reflecting additional income recognized from mortality proceeds from Bank Owned Life Insurance assets and higher service fees.
Non-Interest Expense
Non-interest expense was $18.1 million during the second quarter of 2016, which was $223,000 (1.2%) higher than the first quarter of 2016, related to higher occupancy expense. Non-interest expense was $1.7 million (10.5%) higher than the second quarter of 2015, related to higher occupancy, marketing, and data processing expense. The increase in occupancy expense reflects the accounting expense for the new headquarters lease. The increase above the $17.5 million forecast resulted primarily from the aforementioned occupancy expense.
The ratio of non-interest expense to average assets was 1.31% during the second quarter of 2016, compared to 1.38% during the first quarter of 2016 and 1.44% during the second quarter of 2015, reflecting period-over-period average asset growth of 26.2% (annualized) and 20.9%, respectively. The efficiency ratio was 47.8% during the second quarter of 2016, compared to 49.5% during the first quarter of 2016 and 47.1% during the second quarter of 2015. The efficiency ratio improvement on a linked quarter basis was due to stronger net interest income and higher non-interest income while non-interest expense was relatively flat.
Income Tax Expense
The effective income tax rate approximated 42.2% during the second quarter of 2016, the same rate as the first quarter of 2016.
Credit Quality
Non-performing loans were $4.3 million, or 0.08% of total loans, at June 30, 2016, up from $1.4 million at March 31, 2016, which is mainly due to the addition of one loan. Loans delinquent between 30 and 89 days were $535,000, or 0.01% of total loans, at June 30, 2016, down from $2.3 million at March 31, 2016. The allowance for loan losses was 0.36% of total loans at June 30, 2016, consistent with the 0.37% at March 31, 2016. At June 30, 2016, non-performing assets represented 2.0% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table at the end of this news release). A loan loss provision of $442,000 was recorded during the second quarter of 2016, compared to a loan loss credit of $21,000 during the first quarter of 2016, primarily due to growth in the loan portfolio.
Capital Management
The Company's consolidated Tier 1 capital to average assets ("leverage ratio") was 10.47% at June 30, 2016, in excess of Basel III requirements.
The bank's regulatory capital ratios continued to be in excess of Basel III requirements as well, inclusive of conservation buffer amounts. At June 30, 2016, the bank's leverage ratio was 9.13%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 11.82% and 12.27%, respectively.
Reported diluted earnings per share exceeded the quarterly cash dividend per share by 114.3% during the second quarter of 2016, equating to a 46.7% payout ratio. Tangible book value per share was $13.35 at June 30, 2016, a 15.0% increase from $11.61 at June 30, 2015.
Outlook for the Quarter Ending September 30, 2016
At June 30, 2016, the bank had outstanding loan commitments totaling $280.2 million, at an average interest rate approximating 3.42%, all of which are likely to close during the quarter ending September 30, 2016. Loan prepayments and amortization are expected to fall within the projected annualized range of 15% - 20% during the September 2016 quarter.
The Company has a balance sheet growth objective of 15% - 18% for the year ending December 31, 2016, with a preference toward utilizing retail deposits for most of its funding needs.
Deposit and borrowing funding costs are expected to remain near current historically low levels through the September 2016 quarter. At June 30, 2016, the bank had $80.7 million of CDs at an average rate of 0.86%, and $315.0 million of borrowings, at an average rate of 0.96%, scheduled to mature during the September 2016 quarter. No significant increase or reduction in funding costs is anticipated from the rollover or re-positioning of these funds.
The bank recorded a loan loss provision during the just completed quarter of $442,000, mainly due to loan portfolio growth. During the remainder of 2016, quarterly loan loss provisions are expected to continue to be mainly a function of loan growth.
Non‐interest expense is expected to approximate $18 million during the September 2016 quarter.
The Company projects that the consolidated effective tax rate will approximate 42.0% in the September 2016 quarter.
ABOUT DIME COMMUNITY BANCSHARES, INC.
Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company) had $5.56 billion in consolidated assets as of June 30, 2016, and is the parent company of The Dime Savings Bank of Williamsburgh (the "bank"). The bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-five branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and the bank can be found on Dime's website at www.dime.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 Dime; 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
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
June 30, March 31, December 31,
2016 2016 2015
----------- ----------- ------------
ASSETS:
Cash and due from banks $ 89,927 $ 192,917 $ 64,154
Investment securities held to
maturity 5,319 5,290 5,242
Investment securities available for
sale 3,837 3,787 3,756
Trading securities 6,814 10,368 10,201
Mortgage-backed securities available
for sale 406 417 431
Federal funds sold and other short-
term investments - - -
Real Estate Loans:
One-to-four family and
cooperative/condomnium apartment 81,343 74,734 72,095
Multifamily and loans underlying
cooperatives (1) 4,206,399 4,077,657 3,752,328
Commercial real estate 911,050 895,196 863,184
Unearned discounts and net
deferred loan fees 7,989 7,706 7,579
----------- ----------- ------------
Total real estate loans 5,206,781 5,055,293 4,695,186
----------- ----------- ------------
Other loans 2,336 1,354 1,590
Allowance for loan losses (18,909) (18,513) (18,514)
----------- ----------- ------------
Total loans, net 5,190,208 5,038,134 4,678,262
----------- ----------- ------------
Premises and fixed assets, net 13,800 13,770 15,150
Premises held for sale 1,379 1,379 8,799
Federal Home Loan Bank of New York
capital stock 52,814 63,681 58,713
Other Real Estate Owned 18 18 148
Goodwill 55,638 55,638 55,638
Other assets 136,037 131,960 132,378
----------- ----------- ------------
TOTAL ASSETS $ 5,556,197 $ 5,517,359 $ 5,032,872
=========== =========== ============
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Non-interest bearing checking $ 261,634 $ 250,339 $ 259,182
Interest Bearing Checking 90,172 82,850 78,994
Savings 369,168 368,685 368,671
Money Market 2,024,770 1,756,823 1,618,617
----------- ----------- ------------
Sub-total 2,745,744 2,458,697 2,325,464
----------- ----------- ------------
Certificates of deposit 1,034,522 981,059 858,846
----------- ----------- ------------
Total Due to Depositors 3,780,266 3,439,756 3,184,310
----------- ----------- ------------
Escrow and other deposits 92,290 126,315 77,130
Federal Home Loan Bank of New York
advances 1,017,125 1,277,125 1,166,725
Trust Preferred Notes Payable 70,680 70,680 70,680
Other liabilities 46,225 63,576 40,080
----------- ----------- ------------
TOTAL LIABILITIES 5,006,586 4,977,452 4,538,925
----------- ----------- ------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000
shares authorized, 53,520,581
shares, 53,326,753 shares and
53,326,753 shares issued at June
30, 2016, March 31, 2016 and
December 31, 2015, respectively,
and 37,654,771 shares, 37,399,150
shares and 37,371,992 shares
outstanding at June 30, 2016, March
31, 2016 and December 31, 2015,
respectively) 535 533 533
Additional paid-in capital 266,984 263,206 262,798
Retained earnings 502,569 496,518 451,606
Accumulated other comprehensive
loss, net of deferred taxes (8,803) (8,548) (8,801)
Unallocated common stock of Employee
Stock Ownership Plan (2,198) (2,256) (2,313)
Unearned Restricted Stock Award
common stock (2,754) (2,279) (2,271)
Common stock held by the Benefit
Maintenance Plan (9,576) (9,353) (9,354)
Treasury stock (15,865,810 shares,
15,927,603 shares and 15,954,761
sharesat June 30, 2016, March 31,
2016 and December 31, 2015,
respectively) (197,146) (197,914) (198,251)
----------- ----------- ------------
TOTAL STOCKHOLDERS' EQUITY 549,611 539,907 493,947
----------- ----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 5,556,197 $ 5,517,359 $ 5,032,872
=========== =========== ============
(1) 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)
For the Three Months Ended For the Six Months Ended
----------------------------------- ------------------------
June 30, March 31, June 30, June 30, June 30,
2016 2016 2015 2016 2015
----------- ----------- ----------- ------------ -----------
Interest
income:
Loans secured
by real
estate $ 47,358 $ 45,651 $ 43,473 $ 93,009 $ 85,261
Other loans 24 24 24 48 48
Mortgage-
backed
securities 2 2 2 4 183
Investment
securities 265 173 121 438 290
Federal funds
sold and
other short-
term
investments 721 661 578 1,382 1,228
----------- ----------- ----------- ------------ -----------
Total
interest
income 48,370 46,511 44,198 94,881 87,010
----------- ----------- ----------- ------------ -----------
Interest
expense:
Deposits and
escrow 7,597 6,794 5,670 14,391 10,890
Borrowed
funds 5,163 5,086 5,458 10,249 12,956
----------- ----------- ----------- ------------ -----------
Total
interest
expense 12,760 11,880 11,128 24,640 23,846
----------- ----------- ----------- ------------ -----------
Net
interest
income 35,610 34,631 33,070 70,241 63,164
Provision
(Credit) for
loan losses 442 (21) (1,135) 421 (1,307)
----------- ----------- ----------- ------------ -----------
Net interest
income after
provision
(credit) for
loan losses 35,168 34,652 34,205 69,820 64,471
----------- ----------- ----------- ------------ -----------
Non-interest
income:
Service
charges and
other fees 758 685 799 1,443 1,549
Mortgage
banking
income, net 27 28 41 55 113
Gain (loss)
on sale of
real estate (4) 68,187 - 68,183 -
Gain (loss)
on sale of
securities
and other
assets - 40 (4) 40 1,384
Gain (loss)
on trading
securities 33 6 (21) 39 41
Other 1,491 795 862 2,286 1,891
----------- ----------- ----------- ------------ -----------
Total non-
interest
income 2,305 69,741 1,677 72,046 4,978
----------- ----------- ----------- ------------ -----------
Non-interest
expense:
Compensation
and benefits 9,532 9,708 9,540 19,240 16,381
Occupancy and
equipment 3,115 2,627 2,490 5,742 5,434
Federal
deposit
insurance
premiums 581 739 576 1,320 1,127
Other 4,864 4,795 3,760 9,659 7,288
----------- ----------- ----------- ------------ -----------
Total non-
interest
expense 18,092 17,869 16,366 35,961 30,230
----------- ----------- ----------- ------------ -----------
Income
before
taxes 19,381 86,524 19,516 105,905 39,219
Income tax
expense 8,173 36,487 7,987 44,660 15,912
----------- ----------- ----------- ------------ -----------
Net Income $ 11,208 $ 50,037 $ 11,529 $ 61,245 $ 23,307
=========== =========== =========== ============ ===========
Earnings per
Share
("EPS"):
Basic $ 0.30 $ 1.37 $ 0.32 $ 1.67 $ 0.65
=========== =========== =========== ============ ===========
Diluted $ 0.30 $ 1.36 $ 0.32 $ 1.67 $ 0.64
=========== =========== =========== ============ ===========
Average common
shares
outstanding
for Diluted
EPS 36,818,581 36,662,951 36,259,377 36,741,066 36,158,821
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Six Months
For the Three Months Ended Ended
---------------------------------- ----------------------
June 30, March 31, June 30, June 30, June 30,
2016 2016 2015 2016 2015
---------- ---------- ---------- ---------- ----------
Performance
Ratios (Based
upon Reported
Net Income):
Reported EPS
(Diluted) $ 0.30 $ 1.36 $ 0.32 $ 1.67 $ 0.64
Return on
Average Assets 0.81% 3.87% 1.01% 2.29% 1.03%
Return on
Average
Stockholders'
Equity 8.23% 39.47% 9.78% 23.28% 9.98%
Return on
Average
Tangible
Stockholders'
Equity 9.01% 43.49% 10.84% 25.57% 11.08%
Net Interest
Spread 2.50% 2.63% 2.88% 2.57% 2.74%
Net Interest
Margin 2.68% 2.80% 3.05% 2.74% 2.93%
Non-interest
Expense to
Average Assets 1.31% 1.38% 1.44% 1.35% 1.33%
Efficiency Ratio 47.75% 49.45% 47.07% 48.58% 45.31%
Effective Tax
Rate 42.17% 42.17% 40.93% 42.17% 40.57%
Book Value and
Tangible Book
Value Per
Share:
Stated Book
Value Per Share $ 14.60 $ 14.44 $ 12.85 $ 14.60 $ 12.85
Tangible Book
Value Per Share 13.35 13.18 11.61 13.35 11.61
Average Balance
Data:
Average Assets $5,509,549 $5,171,368 $4,555,381 $5,340,459 $4,537,849
Average Interest
Earning Assets 5,308,434 4,955,643 4,335,579 5,132,039 4,318,692
Average
Stockholders'
Equity 545,033 507,151 471,628 526,092 467,149
Average Tangible
Stockholders'
Equity 497,850 460,249 425,522 479,049 420,769
Average Loans 5,139,564 4,818,516 4,216,209 4,979,040 4,195,146
Average Deposits 3,612,933 3,329,433 2,911,493 3,340,695 2,831,143
Asset Quality
Summary:
Net charge-offs
(recoveries) $ 45 $ (20) ($ 1,451) $ 25 ($ 1,367)
Non-performing
Loans
(excluding
loans held for
sale) 4,329 1,442 959 4,329 959
Non-performing
Loans/ Total
Loans 0.08% 0.03% 0.02% 0.08% 0.02%
Nonperforming
Assets (1) $ 5,600 $ 2,705 $ 2,659 $ 5,600 $ 2,656
Nonperforming
Assets/Total
Assets 0.10% 0.05% 0.06% 0.10% 0.06%
Allowance for
Loan Loss/Total
Loans 0.36% 0.37% 0.43% 0.36% 0.43%
Allowance for
Loan Loss/Non-
performing
Loans 436.80% 1283.84% 1934.62% 436.80% 1934.62%
Loans Delinquent
30 to 89 Days
at period end $ 535 $ 2,291 $ 349 $ 535 $ 349
Consolidated
Capital Ratios
Tangible
Stockholders'
Equity to
Tangible Assets
at period end 9.14% 9.02% 9.40% 9.14% 9.40%
Tier 1 Capital
to Average
Assets 10.47% 10.97% 11.12% 9.40% 11.12%
Regulatory
Capital Ratios
(Bank Only):
Common Equity
Tier 1 Capital
to Risk-
Weighted Assets 11.82% 11.50% 9.30% 11.82% 9.30%
Tier 1 Capital
to Risk-
Weighted Assets
("Tier 1
Capital Ratio") 11.82% 11.50% 12.44% 11.82% 12.44%
Total Capital to
Risk-Weighted
Assets ("Total
Capital Ratio") 12.27% 11.93% 12.99% 12.27% 12.99%
Tier 1 Capital
to Average
Assets 9.13% 9.57% 9.47% 9.13% 9.47%
Reconciliation
of Reported and
Adjusted ("non-
GAAP") Net
Income:
Net Income $ 11,208 $ 50,037 $ 11,529 $ 61,245 $ 23,307
Less: After tax
gain on sale of
securities - - - - (764)
Add: After-tax
expense
associated with
the prepayment
of borrowings - - - - 750
Less: After tax
gain on the
sale of real
estate (2) - (37,483) - (37,483) -
Less: After tax
credit on
curtailment of
postretirement
health benefits - - - - (1,868)
---------- ---------- ---------- ---------- ----------
Adjusted ("non-
GAAP") net
income $ 11,208 $ 12,554 $ 11,529 $ 23,762 $ 21,425
========== ========== ========== ========== ==========
Performance
Ratios (Based
upon "non-GAAP
Net Income" as
calculated
above):
Reported EPS
(Diluted) $ 0.30 $ 0.34 $ 0.32 $ 0.65 $ 0.59
Return on
Average Assets 0.81% 0.97% 1.01% 0.89% 0.94%
Return on
Average
Stockholders'
Equity 8.23% 9.90% 9.78% 9.03% 9.17%
Return on
Average
Tangible
Stockholders'
Equity 9.01% 10.91% 10.84% 9.92% 10.18%
Net Interest
Spread 2.50% 2.63% 2.88% 2.57% 2.74%
Net Interest
Margin 2.68% 2.80% 3.05% 2.74% 2.93%
Non-interest
Expense to
Average Assets 1.31% 1.38% 1.44% 1.35% 1.48%
Efficiency Ratio 47.75% 49.45% 47.07% 48.58% 49.39%
(1) Amount comprised of total non-accrual loans, other real estate owned,
and the recorded balance of pooled bank trust preferred security
investments thatwere deemed to meet the criteria of a non-performing
asset.
(2) The gain on the sale of real estate was taxed at the company's statutory
tax rate of 45%.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
----------------------------------------------------------
June 30, March
2016 31, 2016
--------------------------- ---------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
---------------------------- ---------------------------
Assets:
Interest-earning
assets:
Real estate
loans $5,138,053 $ 47,358 3.69% $4,817,095 $ 45,651 3.79%
Other loans 1,511 24 6.35 1,421 24 6.76
Mortgage-backed
securities 400 2 2.00 414 2 1.93
Investment
securities 20,203 265 5.25 20,217 173 3.42
Other short-
term
investments 148,267 721 1.95 116,496 661 2.27
--------------------------- ---------------------------
Total interest
earning
assets 5,308,434 $ 48,370 3.64% 4,955,643 $ 46,511 3.75%
------------------- -------------------
Non-interest
earning assets 201,115 215,725
---------- ----------
Total assets $5,509,549 $5,171,368
========== ==========
Liabilities and
Stockholders'
Equity:
Interest-bearing
liabilities:
Interest
Bearing
Checking
accounts $ 84,835 $ 61 0.29% $ 79,839 $ 56 0.28%
Money Market
accounts 1,892,046 3,865 0.82 1,689,903 3,379 0.80
Savings
accounts 369,266 44 0.05 367,707 45 0.05
Certificates of
deposit 1,010,864 3,627 1.44 931,007 3,314 1.43
--------------------------- ---------------------------
Total interest
bearing
deposits 3,357,011 7,597 0.91 3,068,456 6,794 0.89
Borrowed Funds 1,145,058 5,163 1.81 1,182,114 5,086 1.73
--------------------------- ---------------------------
Total interest-
bearing
liabilities 4,502,069 $ 12,760 1.14% 4,250,570 $ 11,880 1.12%
------------------- -------------------
Non-interest
bearing
checking
accounts 255,922 260,977
Other non-
interest-
bearing
liabilities 206,526 152,670
---------- ----------
Total
liabilities 4,964,517 4,664,217
Stockholders'
equity 545,032 507,151
---------- ----------
Total liabilities
and
stockholders'
equity $5,509,549 $5,171,368
========== ==========
Net interest
income $ 35,610 $ 34,631
======== ========
Net interest
spread 2.50% 2.63%
====== =======
Net interest-
earning assets $ 806,365 $ 705,073
========== ==========
Net interest
margin 2.68% 2.80%
====== =======
Ratio of
interest-earning
assets to
interest-bearing
liabilities 117.91% 116.59%
======== =======
Deposits
(including non-
interest bearing
checking
accounts) $3,612,933 $ 7,597 0.85% $3,329,433 $ 6,794 0.82%
----------------------------------------------------------------------------
SUPPLEMENTAL
INFORMATION
Loan prepayment
and late payment
fee income $ 1,978 $ 2,618
----------------------------------------------------------------------------
Real estate loans
(excluding net
prepayment and
late payment fee
income) 3.53% 3.57%
----------------------------------------------------------------------------
Interest earning
assets
(excluding net
prepayment and
late payment fee
income) 3.50% 3.54%
----------------------------------------------------------------------------
Net Interest
income
(excluding net
prepayment and
late payment fee
income) $ 33,632 $ 32,013
----------------------------------------------------------------------------
Net Interest
margin
(excluding net
prepayment and
late payment fee
income) 2.53% 2.58%
----------------------------------------------------------------------------
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
---------------------------------
June 30,
2015
---------------------------------
Average
Average Yield/
Balance Interest Cost
---------------------------------
Assets:
Interest-earning
assets:
Real estate
loans $ 4,214,674 $ 43,473 4.13%
Other loans 1,535 23 5.99
Mortgage-backed
securities 461 2 1.74
Investment
securities 18,491 121 2.62
Other short-
term
investments 100,418 579 2.31
---------------------------------
Total interest
earning
assets 4,335,579 $ 44,198 4.08%
----------------------
Non-interest
earning assets 219,802
------------
Total assets $ 4,555,381
============
Liabilities and
Stockholders'
Equity:
Interest-bearing
liabilities:
Interest
Bearing
Checking
accounts $ 75,739 $ 60 0.32%
Money Market
accounts 1,335,793 2,441 0.73
Savings
accounts 373,430 45 0.05
Certificates of
deposit 916,684 3,124 1.37
---------------------------------
Total interest
bearing
deposits 2,701,646 5,670 0.84
Borrowed Funds 1,010,119 5,458 2.17
---------------------------------
Total interest-
bearing
liabilities 3,711,765 $ 11,128 1.20%
----------------------
Non-interest
bearing
checking
accounts 209,847
Other non-
interest-
bearing
liabilities 162,141
------------
Total
liabilities 4,083,753
Stockholders'
equity 471,628
------------
Total liabilities
and
stockholders'
equity $ 4,555,381
============
Net interest
income $ 33,070
=========
Net interest
spread 2.88%
=========
Net interest-
earning assets $ 623,814
============
Net interest
margin 3.05%
=========
Ratio of
interest-earning
assets to
interest-bearing
liabilities 116.81%
=========
Deposits
(including non-
interest bearing
checking
accounts) $ 2,911,493 $ 5,670 0.78%
---------------------------------------------------
SUPPLEMENTAL
INFORMATION
Loan prepayment
and late payment
fee income $ 4,194
--------------------------------------------------
Real estate loans
(excluding net
prepayment and
late payment fee
income) 3.73%
--------------------------------------------------
Interest earning
assets
(excluding net
prepayment and
late payment fee
income) 3.69%
--------------------------------------------------
Net Interest
income
(excluding net
prepayment and
late payment fee
income) $ 28,876
--------------------------------------------------
Net Interest
margin
(excluding net
prepayment and
late payment fee
income) 2.66%
--------------------------------------------------
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS
("TDRs")
(Dollars In thousands)
At June 30, At March 31, At June 30,
Non-Performing Loans 2016 2016 2015
------------ ------------ ------------
One- to four-family and
cooperative/condominium apartment $ 487 $ 1,102 $ 749
Multifamily residential and mixed
use residential real estate (1)(2) 3,784 287 -
Mixed use commercial real estate
(2) 54 53 -
Commercial real estate - - 207
Other 4 - 3
------------ ------------ ------------
Total Non-Performing Loans (3) $ 4,329 $ 1,442 $ 959
------------ ------------ ------------
Other Non-Performing Assets
Non-performing loans held for sale - - 333
Other real estate owned 18 18 148
Pooled bank trust preferred
securities (4) 1,253 1,245 1,219
------------ ------------ ------------
Total Non-Performing Assets $ 5,600 $ 2,705 $ 2,659
------------ ------------ ------------
TDRs not included in non-performing
loans (3)
One- to four-family and
cooperative/condominium apartment 32 - -
Multifamily residential and mixed
use residential real estate (1)(2) 1,058 1,069 1,312
Mixed use commercial real estate
(2) 4,303 4,324 4,385
Commercial real estate 3,396 3,412 3,459
------------ ------------ ------------
Total Performing TDRs $ 8,789 $ 8,805 $ 9,156
------------ ------------ ------------
(1) Includes loans underlying cooperatives.
(2) While the loans within these categories are often considered "commercial
real estate" in nature, they are classified separately in this table
because there is a residential component to the income, which makes them
generally viewed as less risky than pure commercial real estate loans.
(3) Total non-performing loans include some loans that were modified in a
manner that met the criteria for a TDR. These non-accruing TDRs
totaled $207 at June 30, 2015, and are included in the non-performing loan
table, but excluded from the TDR amount shown above. There were
no non-accruing TDRs at June 30, 2016 or March 31, 2016.
(4) As of the dates presented, certain pooled bank trust preferred
securities were deemed to meet the criteria of a non-performing asset.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL
AND RESERVES
At June 30, At March 31, At June 30,
2016 2016 2015
------------ ------------ ------------
Total Non-Performing Assets $ 5,600 $ 2,705 $ 2,659
Loans 90 days or more past due on
accrual status (5) 4,534 4,713 1,044
------------ ------------ ------------
TOTAL PROBLEM ASSETS $ 10,134 $ 7,418 $ 3,703
------------ ------------ ------------
Tier One Capital - The Dime Savings
Bank of Williamsburgh $ 496,757 $ 487,759 $ 425,334
Allowance for loan losses 18,909 18,513 18,553
------------ ------------ ------------
TANGIBLE CAPITAL PLUS RESERVES $ 515,666 $ 506,272 $ 443,887
------------ ------------ ------------
PROBLEM ASSETS AS A PERCENTAGE OF
TANGIBLE CAPITAL AND RESERVES 2.0% 1.5% 0.8%
(5) These loans were, as of the respective dates indicated, expected to be
either satisfied, made current or re-financed within the following twelve
months, and were not expected to result in any loss of contractual
principal or interest. These loans are not included in non-performing
loans.
Contact:
Anthony J. Rose
Executive Vice President and Chief Administrative Officer
718-782-6200 extension 8260
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