• Dime Community Bancshares, Inc. Increases Net Income Available to Common Stockholders By 160% Year-Over-Year

    来源: Nasdaq GlobeNewswire / 29 10月 2021 05:00:01   America/Chicago

    HAUPPAUGE, N.Y., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime” or “its”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $36.6 million for the quarter ended September 30, 2021, or $0.89 per diluted common share, compared with net income available to common stockholders of $14.0 million for the quarter ended September 30, 2020, or $0.65 per diluted common share. For the quarter ended June 30, 2021, net income available to common stockholders was $49.5 million, or $1.19 per diluted common share.

    Adjusted net income to common stockholders (non-GAAP) totaled $41.4 million for the quarter ended September 30, 2021, or $1.01 per diluted share1. Adjusted net income to common stockholders includes the following primary adjustments:

    • Branch restructuring costs: As previously disclosed, the Company combined five branch locations into other existing branches in October 2021; associated branch restructuring costs were $4.5 million during the quarter, pre-tax; and
    • Merger expenses and transaction costs: The Company recorded merger expenses and transaction costs, associated with its February 2021 merger of equals transaction, of $2.5 million, pre-tax, during the quarter.

    Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “We continue to improve the quality of our deposit base, as evidenced by non-interest-bearing accounts growing to 36% of total deposits. Our high level of non-interest-bearing deposits, coupled with a balance sheet that does not rely on wholesale leverage, positions us well for the time when the Federal Reserve begins raising interest rates. In the third quarter, we saw a resumption of loan growth (excluding Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans) and we continue to maintain healthy pipelines. Finally, we continue to focus on prudent expense management as demonstrated by a core efficiency ratio of 47% for the third quarter.”

    Highlights for the Third Quarter of 2021 Included:

    • The non-interest-bearing deposits to total deposits ratio increased to 35.8% at September 30, 2021;
    • The cost of deposits for the third quarter of 2021 declined to 0.13%;
    • Total loans held for investment, net, excluding PPP loans increased by 4% on an annualized basis versus the linked quarter;
    • The Company purchased 480,039 shares of its common stock, at a weighted average price of $32.15 per share;
    • Non-performing assets represent only 0.28% of total assets as of September 30, 2021; and
    • The Company’s Adjusted Pre-tax Pre-provision Net Revenue (“PPNR”) for the third quarter was $54.8 million compared to $52.7 million for the second quarter.1

    1 See reconciliation of this non-GAAP financial measure provided elsewhere herein.

    Management’s Discussion of Quarterly Operating Results

    The Company’s results of operations for the second and third quarters of 2021 include income for the full quarter from the merger with Bridge Bancorp, Inc. (“Bridge”). The Company’s historical information for the third quarter of 2020 does not include the historical GAAP results of Bridge.

    Net Interest Income

    Net interest income for the third quarter of 2021 was $94.8 million compared to $93.3 million for the second quarter of 2021 and $44.9 million for the third quarter of 2020.

    The table below provides a reconciliation of the reported Net Interest Margin (“NIM”), the adjusted NIM excluding the impact of PPP loans, and the adjusted NIM excluding the combined impact of PPP loans and purchasing accounting accretion on the loan portfolio.

               
    ($ in thousands) Q3 2021 Q2 2021 Q3 2020 
    Net interest income $ 94,828  $93,254  $44,944  
    Less: Net interest income on PPP loans   (2,502)  (5,375)  (1,471) 
    Adjusted net interest income excluding PPP loans, (non-GAAP) $ 92,326  $87,879  $43,473  
               
    Average interest-earning assets $ 11,765,298  $11,990,107  $6,164,452  
    Average PPP loan balances   (266,472)  (1,282,347)  (316,747) 
    Adjusted average interest-earning assets excluding PPP loans, (non-GAAP) $ 11,498,826  $10,707,760  $5,847,705  
               
    NIM (1)   3.20 %   3.12 % 2.92 %
    Adjusted NIM excluding PPP loans (non-GAAP) (2)   3.19 %   3.29 % 2.95 %
               
    Adjusted net interest income excluding PPP loans, (non-GAAP) $ 92,326  $87,879  $43,473  
    Less: Purchase Accounting Accretion on loans ("PAA")   (2,541)  (1,925)  —  
    Adjusted net interest income excluding PPP loans and PAA on loans, (non-GAAP) $ 89,785  $85,954  $43,473  
    Adjusted NIM excluding PPP loans and PAA on loans, (non-GAAP) (3)   3.10 %   3.23 % 2.95 %
               


    (1)NIM represents net interest income divided by average interest-earning assets.
    (2)Adjusted NIM excluding PPP represents adjusted net interest income, which excludes net interest income on PPP loans divided by average interest-bearing liabilities excluding PPP loans. The net interest income on PPP loans is calculated using interest income on the PPP balances less an assumed cost of funding the PPP loans, using the overall cost of funds of the Company.
    (3)Adjusted NIM excluding PPP and PAA represents adjusted net interest income excluding PPP loans and PAA, divided by adjusted average interest-earning assets, excluding PPP loans.


    Loan Portfolio

    The ending weighted average rate (“WAR”) on the total loan portfolio was 3.72% at September 30, 2021, a 6 basis point increase compared to the ending WAR on the total loan portfolio at June 30, 2021. Excluding the impact of PPP loans, the WAR on the loan portfolio was 3.76% at September 30, 2021, compared to 3.79% at June 30, 2021.

    Outlined below are loan balances and WARs(1) for the current quarter, linked quarter and prior year quarter.

                     
      September 30, 2021 June 30, 2021 September 30, 2020 
    ($ in thousands)    Balance    WAR    Balance    WAR    Balance    WAR 
    Loans held for investment balances at period end:                
    One-to-four family residential, including condominium and cooperative apartment $ 683,665  3.68%  $704,489 3.72%$186,975 3.97%
    Multifamily residential and residential mixed-use (2)(3)   3,468,262  3.57  3,503,205 3.59  2,919,186 3.77 
    CRE   3,814,437  3.80  3,681,331 3.83  1,675,488 4.00 
    ADC   285,379  4.69  290,462 4.73  151,866 5.04 
    C&I   878,332  4.10  878,331 4.16  323,972 4.49 
    Other loans   20,713  4.97  23,275 4.99  1,448 7.56 
    Loans held for investment excluding PPP   9,150,788  3.76  9,081,093 3.79  5,258,935 3.93 
                     
    PPP   134,083  1.00  465,538 1.00  318,568 1.00 
    Total loans held for investment including PPP $ 9,284,871  3.72%  $9,546,631 3.66%$5,577,503 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 multifamily loans underlying 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, excluding PPP, for the current quarter, linked quarter and prior year.

               
        
    ($ in millions) Q3 2021 Q2 2021    Q3 2020 
    Loan originations, excluding PPP $ 464.9 $425.7 $318.9 

    Deposits and Borrowed Funds

    Total deposits decreased by $392.2 million on a linked quarter basis to $10.7 billion at September 30, 2021. The decline in total deposits was primarily due to the Company not renewing higher-cost certificates of deposit accounts. Mr. O’ Connor stated, “We continue to focus on reducing any high-rate, promotional or rate-sensitive deposits from our portfolio as we prepare for higher interest rates. The weighted average rate on our deposit portfolio declined to 0.11% at September 30, 2021.”

    Non-interest-bearing deposits increased $132.8 million during the third quarter of 2021 to $3.8 billion at September 30, 2021, representing 35.8% of total deposits.

    As of September 30, 2021, the Company had $311.7 million of certificates of deposits, with a weighted average rate of 0.33%, that were set to mature during the fourth quarter of 2021.

    Total Federal Home Loan Bank advances were $25.0 million at September 30, 2021 and June 30, 2021.

    Non-Interest Income

    Non-interest income was $9.7 million during the third quarter of 2021, $29.5 million during the second quarter of 2021, and $6.1 million during the third quarter of 2020. Excluding a $20.7 million gain on sale of PPP loans during the second quarter of 2021, adjusted non-interest income was $8.8 million during the second quarter of 2021. Excluding the gain on sale of securities and other assets, adjusted non-interest income was $5.9 million during the third quarter of 2020 (see “Non-GAAP Reconciliation” table at the end of this news release).

    Non-Interest Expense

    Total non-interest expense was $56.8 million during the third quarter of 2021, $54.9 million during the second quarter of 2021, and $24.9 million during the third quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring costs, and amortization of other intangible assets, adjusted non-interest expense was $49.1 million during the third quarter of 2021, compared to $48.5 million during the second quarter of 2021, and $24.1 million during the third quarter of 2020 (see “Non-GAAP Reconciliation” table at the end of this news release).

    The ratio of non-interest expense to average assets was 1.80% during the third quarter of 2021, compared to 1.72% during the linked quarter and 1.53% for the third quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring costs, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.56% during the third quarter of 2021, compared to 1.52% during the linked quarter and 1.48% for the third quarter of 2020 (see “Non-GAAP Reconciliation” table at the end of this news release).

    The efficiency ratio was 54.3% during the third quarter of 2021, compared to 44.7% during the linked quarter and 48.6% during the third quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring costs, and amortization of other intangible assets, the adjusted efficiency ratio was 46.9% during the third quarter of 2021, compared to 47.5% during the linked quarter and 47.3% during the third quarter of 2020 (see “Non-GAAP Reconciliation” table at the end of this news release).

    Income Tax Expense

    The reported effective tax rate for the third quarter of 2021 was 27.5%, compared to 28.9% for the second quarter of 2021, and 21.9% for the third quarter of 2020. The decrease in the effective tax rate during the third quarter of 2021 was primarily the result of the decrease in taxable income and lower non-deductible expenses during the period. The effective tax rate for the remainder of 2021 is expected to be approximately 27.5%.

    Credit Quality

    Non-performing loans at September 30, 2021 were $34.0 million, or 0.37% of total loans. Non-performing loans, excluding acquired PCD loans, would have been $30.1 million, or 0.34% of total loans excluding acquired PCD loans.

    A credit loss recovery of $5.2 million was recorded during the third quarter of 2021, compared to a credit loss recovery of $4.2 million during the second quarter of 2021, and a credit loss provision of $5.9 million during the third quarter of 2020. The credit loss recovery of $5.2 million for the third quarter of 2021 was primarily associated with a reduction in reserves on acquired PCD loans, given the improvement in economic conditions since the time of the merger closing.

    The allowance for credit losses as a percentage of total loans was 0.88% at September 30, 2021 as compared to 0.97% at June 30, 2021 and 0.87% at September 30, 2020. Excluding PPP loans, the ratio of allowance for credit losses at September 30, 2021 would have been 0.89%.

    Loans with Payment Deferrals

    Full principal and interest (“P&I”) deferrals declined to $26.6 million and represented 0.3% of the total loan portfolio at September 30, 2021.

    Capital Management

    The Company’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements.

    Mr. O’Connor commented, “In August, our Board of Directors approved a new stock repurchase program which authorized the purchase of 5% of outstanding common stock. Our strong balance sheet and internal stress testing analysis results have allowed us to return excess capital to our shareholders. In the third quarter we repurchased 480,039 shares, totaling $15.4 million and we continue to be active on the repurchase front into the fourth quarter.”

    Dividends per common share were $0.24 during the third quarter of 2021.

    Book value per common share was $26.64 and tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by number of shares outstanding) was $22.60 at September 30, 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Including the impact of the remaining unrecognized fees on PPP loans, net of tax, adjusted tangible common book value per share would have been $22.61 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Earnings Call Information

    The Company will conduct a conference call at 8:30 a.m. (ET) on October 29, 2021, during which Kevin M. O’Connor, CEO, will discuss the Company’s third quarter performance, with a question and answer session to follow. Dial-in information for the live call is 1-888-348-2672. Upon dialing in, request to be joined into Dime Community Bancshares, Inc. call with the conference operator.

    The conference call will be simultaneously webcast (listen only), and archived for a period of one year, at https://services.choruscall.com/links/dcom211029.html. Dial-in information for the replay is 1-877-344-7529 using access code #10160977. Replay will be available October 29, 2021 (10:30 a.m.) through November 12, 2021 (11:59 p.m.).

    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 $12.3 billion in assets and the number one deposit market share among community banks on Greater Long Island(1).

    (1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks less than $20 billion in assets.

    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," “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 reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and/or the Bank; 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 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; 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. Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees increasingly work remotely.

    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)

              
         September 30,     June 30,     December 31,
      2021
    		 2021
    		 2020
    Assets:           
    Cash and due from banks $ 629,011  $1,184,183  $243,603 
    Mortgage-backed securities available-for-sale, at fair value   1,212,383   863,239   426,979 
    Investment securities available-for-sale, at fair value   496,680   398,549   111,882 
    Investment securities held-to-maturity   40,303   —   — 
    Marketable equity securities, at fair value   —   —   5,970 
    Loans held for sale   14,720   29,335   5,903 
    Loans held for investment, net:          
    One-to-four family and cooperative/condominium apartment   683,665   704,489   184,989 
    Multifamily residential and residential mixed-use (1)(2)   3,468,262   3,503,205   2,758,743 
    Commercial real estate ("CRE")   3,814,437   3,681,331   1,878,167 
    Acquisition, development, and construction ("ADC")   285,379   290,462   156,296 
    Total real estate loans   8,251,743   8,179,487   4,978,195 
    Commercial and industrial ("C&I")   878,332   878,331   319,626 
    Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans   134,083   465,538   321,907 
    Other loans   20,713   23,275   2,316 
    Allowance for credit losses   (81,255)  (92,760)  (41,461)
    Total loans held for investment, net   9,203,616   9,453,871   5,580,583 
    Premises and fixed assets, net   49,615   51,127   19,053 
    Premises held for sale   2,799   2,799   — 
    Restricted stock   37,719   22,449   60,707 
    Bank Owned Life Insurance ("BOLI")   293,898   293,113   156,096 
    Goodwill   155,339   155,339   55,638 
    Other intangible assets   9,077   9,792   — 
    Operating lease assets   56,836   69,189   33,898 
    Derivative assets   41,700   45,439   18,932 
    Accrued interest receivable   43,284   47,209   34,815 
    Other assets   77,401   78,052   27,551 
    Total assets $ 12,364,381  $12,703,685  $6,781,610 
    Liabilities:          
    Non-interest-bearing checking $ 3,821,832  $3,689,072  $780,751 
    Interest-bearing checking   989,526   1,101,038   290,300 
    Savings   1,188,794   1,305,028   414,809 
    Money market   3,657,669   3,670,090   1,716,624 
    Certificates of deposit   1,016,216   1,300,965   1,322,638 
    Total deposits   10,674,037   11,066,193   4,525,122 
    FHLBNY advances   25,000   25,000   1,204,010 
    Other short-term borrowings   2,629   1,841   120,000 
    Subordinated debt, net   197,142   197,188   114,052 
    Operating lease liabilities   62,870   72,170   39,874 
    Derivative liabilities   38,889   42,892   37,374 
    Other liabilities   162,697   94,125   40,082 
    Total liabilities   11,163,264   11,499,409   6,080,514 
    Stockholders' equity:          
    Preferred stock, Series A   116,569   116,569   116,569 
    Common stock   416   416   348 
    Additional paid-in capital   493,775   492,848   278,295 
    Retained earnings   630,744   613,791   600,641 
    Accumulated other comprehensive (loss) gain, net of deferred taxes   (1,042)  4,576   (5,924)
    Unearned equity awards   (9,417)  (8,529)  — 
    Common stock held by the Benefit Maintenance Plan   —   —   (1,496)
    Treasury stock, at cost   (29,928)  (15,395)  (287,337)
    Total stockholders' equity   1,201,117   1,204,276   701,096 
    Total liabilities and stockholders' equity $ 12,364,381  $12,703,685  $6,781,610 


    (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  Nine Months Ended
         September 30,     June 30,     September 30,     September 30,     September 30, 
      2021
    		 2021
    		 2020 2021
    		 2020
    Interest income:                
    Loans $ 94,045  $94,288  $53,245 $ 269,715  $161,564
    Securities   6,030   5,126   3,422   15,536   10,794
    Other short-term investments   583   987   729   2,563   2,577
    Total interest income   100,658   100,401   57,396   287,814   174,935
    Interest expense:                 
    Deposits and escrow   3,565   4,803   6,672   13,666   28,298
    Borrowed funds   2,265   2,344   5,780   8,225   17,613
    Total interest expense   5,830   7,147   12,452   21,891   45,911
    Net interest income   94,828   93,254   44,944   265,923   129,024
    (Credit) provision for credit losses   (5,187)  (4,248)  5,931   6,344   20,003
    Net interest income after (credit) provision   100,015   97,502   39,013   259,579   109,021
                    
    Non-interest income:                 
    Service charges and other fees   4,581   3,876   1,632   11,377   3,918
    Title fees   482   688   —   1,603   —
    Loan level derivative income   445   559   1,544   2,796   5,201
    BOLI income   2,249   1,593   1,033   5,181   3,831
    Gain on sale of SBA loans excluding PPP   348   973   808   1,485   972
    Gain on sale of PPP loans   —   20,697   —   20,697   —
    Gain on sale of residential loans   304   506   617   1,533   974
    Net gain on equity securities   —   —   175   131   139
    Net gain on sale of securities and other assets   —   20   215   730   3,357
    Loss on termination of derivatives   —   —   —   (16,505)  —
    Other   1,319   632   125   2,861   379
    Total non-interest income   9,728   29,544   6,149   31,889   18,771
    Non-interest expense:                 
    Salaries and employee benefits   28,276   27,598   14,316   80,693   45,030
    Severance   —   1,875   —   1,875   4,000
    Occupancy and equipment   7,814   8,122   4,046   22,913   12,061
    Data processing costs   3,573   5,031   2,146   12,132   6,177
    Marketing   1,054   788   345   2,702   1,140
    Professional services   2,751   2,538   935   7,154   2,713
    Federal deposit insurance premiums   1,173   934   761   3,046   1,767
    Loss on extinguishment of debt   —   157   —   1,751   —
    Curtailment loss   —   —   —   1,543   —
    Merger expenses and transaction costs   2,472   1,836   769   42,250   2,427
    Branch restructuring costs   4,518   1,659   —   6,177   —
    Amortization of other intangible assets   715   835   —   1,907   —
    Other   4,437   3,509   1,535   10,327   4,924
    Total non-interest expense   56,783   54,882   24,853   194,470   80,239
                    
    Income before taxes   52,960   72,164   20,309   96,998   47,553
    Income tax expense   14,565   20,886   4,441   28,359   10,327
    Net income   38,395   51,278   15,868   68,639   37,226
    Preferred stock dividends   1,822   1,822   1,822   5,465   2,962
    Net income available to common stockholders $ 36,573  $49,456  $14,046 $ 63,174  $34,264
                    
    Earnings per common share ("EPS"):                 
    Basic $ 0.89  $1.19  $0.66 $ 1.62  $1.57
    Diluted $ 0.89  $1.19  $0.65 $ 1.62  $1.56
                    
    Average common shares outstanding for diluted EPS   40,426,161   40,981,585   21,324,187   38,574,857   21,791,080


    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
    (Dollars in thousands except per share amounts)

                     
      At or For the Three Months Ended At or For the Nine Months Ended  
         September 30,     June 30,    September 30,     September 30,     September 30,  
      2021 2021 2020 2021 2020 
    Per Share Data:                
    Reported EPS (Diluted) $ 0.89 $1.19 $0.65 $ 1.62 $1.56 
    Cash dividends paid per common share   0.24  0.24  0.22   0.72  0.65 
    Book value per common share   26.64  26.43  26.97       
    Tangible common book value per share (1)   22.60  22.41  24.37       
    Common shares outstanding   40,715  41,160  21,416       
    Dividend payout ratio   26.97 %   20.17 % 33.33 %  44.44% 41.58 %
                     
    Performance Ratios (Based upon Reported Net Income):                 
    Return on average assets   1.22 %   1.61 % 0.98 %  0.76 % 0.78 %
    Return on average equity   12.69  17.22  9.22   8.00  7.59 
    Return on average tangible common equity (1)   15.96  22.02  10.88   9.84  8.76 
    Net interest margin   3.20  3.12  2.92   3.15  2.83 
    Non-interest expense to average assets   1.80  1.72  1.53   2.16  1.68 
    Efficiency ratio   54.3  44.7  48.6   65.3  54.3 
    Effective tax rate   27.50  28.94  21.87   29.24  21.72 
                     
    Balance Sheet Data:                 
    Average assets $ 12,584,372 $12,756,909 $6,492,173 $ 12,009,522 $6,363,768 
    Average interest-earning assets   11,765,298  11,990,107  6,164,452   11,277,257  6,069,115 
    Average tangible common equity (1)   929,131  908,747  516,189   873,481  521,385 
    Loan-to-deposit ratio at end of period   87.0  86.3  125.3       
                     
    Capital Ratios and Reserves - Consolidated: (3)                 
    Tangible common equity to tangible assets (1)   7.54 %   7.36 % 7.95 %      
    Tangible equity to tangible assets (1)   8.50  8.29  9.73       
    Tier 1 common equity ratio   9.92  10.06  10.69       
    Tier 1 risk-based capital ratio   11.17  11.34  13.02       
    Total risk-based capital ratio   14.13  14.45  16.30       
    Tier 1 leverage ratio   8.37  8.24  10.10       
    CRE consolidated concentration ratio (2)   516  506  545       
    Allowance for credit losses/ Total loans   0.88  0.97  0.87       
    Allowance for credit losses/ Non-performing loans   238.84  327.94  390.31       


    (1)See "Non-GAAP Reconciliation" table for reconciliation of tangible equity, tangible common equity, and tangible assets. Average balances are calculated using the ending balance for months during the period indicated.
    (2)The CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner occupied commercial real estate, multifamily, and ADC, divided by consolidated capital. September 30, 2021 amounts are preliminary pending completion and filing of the Company’s regulatory reports.
    (3)September 30, 2021 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 
      September 30, 2021 June 30, 2021 September 30, 2020 
                        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 $ 8,234,182 $ 78,626  3.79%  $8,156,368 $74,437 3.66%$4,874,780 $47,482 3.90%
    Commercial and industrial loans   923,698   12,337  5.30  932,297  13,277 5.71  326,636  3,574 4.38 
    SBA PPP loans   266,472   2,643  3.94  1,282,347  6,174 1.93  316,747  2,178 2.75 
    Other loans   21,992   439  7.92  24,349  400 6.59  1,444  11 3.05 
    Mortgage-backed securities   976,198   3,999  1.63  825,949  3,483 1.69  435,920  2,707 2.48 
    Investment securities   462,150   2,031  1.74  312,012  1,643 2.11  78,405  715 3.65 
    Other short-term investments   880,606   583  0.26  456,785  987 0.87  130,520  729 2.23 
    Total interest-earning assets   11,765,298   100,658  3.39%   11,990,107  100,401 3.36% 6,164,452  57,396 3.72%
    Non-interest-earning assets   819,074         766,802       327,721      
    Total assets $ 12,584,372        $12,756,909      $6,492,173      
                              
    Liabilities and Stockholders' Equity:                            
    Interest-bearing liabilities:                            
    Interest-bearing checking $ 1,000,435 $ 388  0.15%  $1,067,043 $501 0.19%$241,248 $186 0.31%
    Money market   3,698,124   1,467  0.16  3,712,344  1,941 0.21  1,696,297  1,858 0.44 
    Savings   1,335,310   170  0.05  1,189,460  212 0.07  405,582  170 0.17 
    Certificates of deposit   1,138,853   1,540  0.54  1,421,480  2,149 0.61  1,425,083  4,458 1.24 
    Total interest-bearing deposits   7,172,722   3,565  0.20  7,390,327  4,803 0.26  3,768,210  6,672 0.70 
    FHLBNY advances   25,000   59  0.94  145,324  132 0.36  1,040,127  4,448 1.70 
    Subordinated debt, net   197,172   2,206  4.44  197,218  2,211 4.50  113,992  1,330 4.64 
    Other short-term borrowings   2,290   —  —  5,514  1 0.07  5,283  2 0.12 
    Total borrowings   224,462   2,265  4.00  348,056  2,344 2.70  1,159,402  5,780 1.99 
    Total interest-bearing liabilities   7,397,184   5,830  0.31%   7,738,383  7,147 0.37% 4,927,612  12,452 1.01%
    Non-interest-bearing checking   3,789,623         3,652,482       652,880      
    Other non-interest-bearing liabilities   186,977         175,031       223,285      
    Total liabilities   11,373,784         11,565,896       5,803,777      
    Stockholders' equity   1,210,588         1,191,013       688,396      
    Total liabilities and stockholders' equity $ 12,584,372        $12,756,909      $6,492,173      
    Net interest income     $ 94,828       $93,254      $44,944   
    Net interest rate spread          3.08%        2.99%      2.71%
    Net interest margin          3.20%        3.12%        2.92%
    Deposits (including non-interest-bearing checking accounts) $ 10,962,345 $ 3,565  0.13%  $11,042,809 $4,803 0.17%$4,421,090 $6,672 0.60%


    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
    (Dollars in thousands)

              
         At or For the Three Months Ended
      September 30,     June 30,     September 30, 
    Asset Quality Detail 2021 2021 2020
    Non-performing loans (NPLs) (1)          
    One-to-four family residential, including condominium and cooperative apartment $ 4,938  $4,933  $867 
    Multifamily residential and residential mixed-use   859   —   1,213 
    CRE   4,122   9,152   47 
    Acquisition, development, and construction ("ADC")   —   —   — 
    C&I   23,727   14,109   10,287 
    Other   374   92   10 
    Total Non-accrual loans $ 34,020  $28,286  $12,424 
              
    Loans 90 days delinquent and accruing ("90+ Delinquent")          
    One-to-four family residential, including condominium and cooperative apartment $ 5,021  $5,065  $470 
    Multifamily residential and residential mixed-use   —   157   — 
    CRE   1,004   —   — 
    ADC   —   —   1,470 
    C&I   257   1,487   — 
    Other   —   —   — 
    90+ Delinquent $ 6,282  $6,709  $1,940 
              
    NPAs and 90+ Delinquent $ 40,302  $34,995  $14,364 
              
    NPAs and 90+ Delinquent / Total assets  0.33%  0.28%  0.21%
    Net charge-offs (recoveries) (NCOs) $ 4,191  $918  $(69)
    NCOs / Average loans (1)  0.18%  0.04%  (0.01)%
              

          (1)   Excludes 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 the Company’s merger with Bridge, as well as branch restructuring costs, and gain on sale of PPP loans.

                     
      Three Months Ended  Nine Months Ended  
         September 30,     June 30,     September 30,     September 30,  September 30,  
      2021 2021 2020 2021 2020 
    Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders                
    Reported net income (loss) available to common stockholders $ 36,573  $49,456  $14,046  $ 63,174  $34,264  
    Adjustments to net income (1):                 
    Provision for credit losses - Non-PCD loans (double-count)   —   —   —    20,278   —  
    Gain on sale of PPP loans   —   (20,697)  —    (20,697)  —  
    Net gain on sale of securities and other assets   —   —   (215)   (710)  (3,357) 
    Loss on termination of derivatives   —   —   —    16,505   —  
    Severance   —   1,875   —    1,875   4,000  
    Loss on extinguishment of debt   —   157   —    1,751   —  
    Curtailment loss   —   —   —    1,543   —  
    Merger expenses and transaction costs (2)   2,472   1,836   769    42,250   2,427  
    Branch restructuring costs   4,518   1,659   —    6,177   —  
    Income tax effect of adjustments and other tax adjustments   (2,191)  4,852   (84)   (19,187)  (636) 
    Adjusted net income available to common stockholders (non-GAAP) $ 41,372  $39,138  $14,516  $ 112,959  $36,698  
                     
    Adjusted Ratios (Based upon non-GAAP as calculated above)                
    Adjusted EPS (Diluted) $ 1.01  $0.94  $0.68  $ 2.90  $1.68  
    Adjusted return on average assets   1.37 %   1.28 % 1.01 %  1.31 % 0.83 %
    Adjusted return on average equity   14.27   13.76   9.49    13.80   8.08  
    Adjusted return on average tangible common equity   18.02   17.48   11.25    17.44   9.38  
    Adjusted non-interest expense to average assets   1.56   1.52   1.48    1.54   1.55  
    Adjusted efficiency ratio   46.9   47.5   47.3    47.4   51.1  

    (1)    Adjustments to net income are taxed at the Company's statutory tax rate of approximately 31% unless otherwise noted.
    (2)    Certain merger expenses and transaction costs are non-taxable expense.


    The following table presents a reconciliation of net interest income, non-interest income, and non-interest expense to pre-tax pre-provision net revenue (non-GAAP) and adjusted pre-tax pre-provision net revenue (non-GAAP):

           
     Three Months Ended 
     September 30, 2021 June 30, 2021 
    Net interest income$ 94,828 $93,254  
    Non-interest income  9,728  29,544  
    Total revenues  104,556  122,798  
    Non-interest expense  56,783  54,882  
    Pre-tax pre-provision net revenue (non-GAAP) (1)$ 47,773 $67,916  
           
    Adjustments:      
    Gain on sale of PPP loans  —  (20,697) 
    Severance  —  1,875  
    Loss on extinguishment of debt  —  157  
    Merger expenses and transaction costs  2,472  1,836  
    Branch restructuring costs  4,518  1,659  
    Adjusted pre-tax pre-provision net revenue (non-GAAP) (2)$ 54,763 $52,746  


    (1)The reported pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding GAAP net interest income and GAAP non-interest loss less GAAP non-interest expense.
    (2)The adjusted pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding pre-tax pre-provision net revenue less the net gain on sale of PPP loans, severance, loss on extinguishment of debt, merger expenses and transaction costs, and branch restructuring costs.

    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   Nine Months Ended 
          September 30,  June 30,  September 30,  September 30,     September 30, 
       2021  2021  2020  2021  2020 
    Operating expense as a % of average assets - as reported   1.80 %   1.72 % 1.53 %  2.16 %   1.68 %
    Loss on extinguishment of debt   —   —   —    (0.02)  —  
    Curtailment loss   —   —   —    (0.02)  —  
    Severance   —   (0.06)  —    (0.02)  (0.08) 
    Merger expenses and transaction costs   —   (0.06)  (0.05)   (0.47)  (0.05) 
    Branch restructuring costs   (0.08)  (0.05)   —    (0.07)  —  
    Amortization of other intangible assets   (0.14)  (0.03)   —    (0.02)   —  
    Adjusted operating expense as a % of average assets (non-GAAP)   1.56   1.52   1.48    1.54   1.55  

    The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

                     
      Three Months Ended Nine Months Ended 
         September 30,    June 30,    September 30,    September 30, September 30, 
      2021 2021 2020 2021 2020 
    Efficiency ratio - as reported (non-GAAP) (1)      54.3 %   44.7 % 48.6 %  65.3 %   54.3 %
    Non-interest expense - as reported $ 56,783  $54,882  $24,853  $ 194,470  $80,239  
    Less: Severance   —   (1,875)  —    (1,875)  (4,000) 
    Less: Merger expenses and transaction costs   (2,472)  (1,836)  (769)   (42,250)  (2,427) 
    Less: Branch restructuring costs   (4,518)  (1,659)  —    (6,177)  —  
    Less: Loss on extinguishment of debt   —   (157)  —    (1,751)  —  
    Less: Curtailment loss   —   —   —    (1,543)  —  
    Less: Amortization of other intangible assets   (715)  (835)  —    (1,907)  —  
    Adjusted non-interest expense (non-GAAP) $ 49,078  $48,520  $24,084  $ 138,967  $73,812  
    Net interest income - as reported $ 94,828  $93,254  $44,944  $ 265,923  $129,024  
    Non-interest income (loss) - as reported $ 9,728  $29,544  $6,149  $ 31,889  $18,771  
    Less: Gain on sale of PPP loans   —   (20,697)  —    (20,697)  —  
    Less: Net gain on sale of securities and other assets   —   —   (215)   (710)  (3,357) 
    Less: Loss on termination of derivatives   —   —   —    16,505   —  
    Adjusted non-interest income (non-GAAP) $ 9,728  $8,847  $5,934  $ 26,987  $15,414  
    Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 104,556  $102,101  $50,878  $ 292,910  $144,438  
    Adjusted efficiency ratio (non-GAAP) (2)    46.9 %   47.5 % 47.3 %  47.4 %   51.1 %


    (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 (loss) 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 assets, tangible common equity, and adjusted tangible common book value per share calculation (non-GAAP):

              
         September 30,     June 30,     September 30, 
      2021 2021 2020
    Reconciliation of Tangible Assets:         
    Total assets $ 12,364,381 $12,703,685 $6,619,391
    Less:         
    Goodwill   155,339  155,339  55,638
    Other intangible assets   9,077  9,792  —
    Tangible assets (non-GAAP) $ 12,199,965 $12,538,554 $6,563,753
              
    Reconciliation of Adjusted Tangible Common Equity - Consolidated:         
    Total stockholders' equity $ 1,201,117 $1,204,276 $694,158
    Less:         
    Goodwill   155,339  155,339  55,638
    Other intangible assets   9,077  9,792  —
    Tangible equity (non-GAAP)   1,036,701  1,039,145  638,520
    Less:         
    Preferred stock, net   116,569  116,569  116,569
    Tangible common equity (non-GAAP) $ 920,132 $922,576 $521,951
    Add:         
    Unamortized deferred fees on PPP loans, net of tax   612  1,979  5,435
    Adjusted tangible common equity (non-GAAP) $ 920,744 $924,555 $527,386
              
    Common shares outstanding   40,715  41,160  21,416
    Tangible common book value per share (non-GAAP) $22.60 $22.41 $24.37
    Adjusted tangible common book value per share (non-GAAP) $22.61 $22.46 $24.63

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