• Dime Community Bancshares, Inc. Reports Fourth Quarter 2024 Results

    来源: Nasdaq GlobeNewswire / 23 1月 2025 07:15:01   America/New_York

    Strong Growth in Deposits, Business Loans and Capital Ratios on a Year-Over-Year Basis

    Net Interest Margin Expands by 29 basis points on a Linked Quarter Basis to 2.79%

    HAUPPAUGE, N.Y., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $21.8 million for the year ended December 31, 2024, or $0.55 per diluted common share, compared to net income available to common stockholders of $88.8 million, or $2.29 per diluted common share, for the year ended December 31, 2023.

    Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Our fourth quarter results were marked by continued core deposit growth and Net Interest Margin (“NIM”) expansion. In addition, we successfully executed on several important initiatives in the fourth quarter, including a follow-on common equity offering. The proceeds from the offering were utilized to re-position our available-for-sale securities portfolio and Bank Owned Life Insurance (“BOLI”) portfolio and supplement our capital base. These transactions will contribute towards a stronger balance sheet, enhanced earnings power and support future growth. I would like to thank all of our employees for their tremendous efforts throughout the year that led to substantial year-over-year growth in core deposits and business loans as well as the Bank achieving an “Outstanding” rating on our recent Community Reinvestment Act examination.”

    For the quarter ended December 31, 2024, net loss available to common stockholders was $22.2 million, or $(0.54) per diluted common share, compared to net income available to common stockholders of $11.5 million, or $0.29 per diluted common share, for the quarter ended September 30, 2024, and net income available to common stockholders of $14.5 million, or $0.37 per diluted common share, for the quarter ended December 31, 2023. Fourth quarter 2024 results included: $42.8 million of pre-tax loss-on-sale of securities, $1.3 million of pre-tax severance expense and $1.2 million of pre-tax expense related to the termination of a legacy pension plan. In addition, the fourth quarter 2024 results included $9.1 million of income tax expense related to the taxable gain and Modified Endowment Contract Tax (“MEC Tax”) on the surrender of legacy BOLI assets.

    Adjusted net income available to common stockholders (non-GAAP) totaled $17.4 million for the quarter ended December 31, 2024, an increase of 52% versus the prior quarter and an increase of 16% versus the year ago quarter (see “Non-GAAP Reconciliation” tables at the end of this news release). Adjusted EPS (non-GAAP) totaled $0.42 per share for the quarter ended December 31, 2024, an increase of 45% versus the prior quarter and an increase of 8% versus the year ago quarter.

    Highlights for the Fourth Quarter of 2024 Included:

    • Total deposits increased $268.8 million compared to the third quarter of 2024;
    • Core deposits (excluding brokered and time deposits) increased $513.4 million compared to the third quarter of 2024;
    • The ratio of average non-interest-bearing deposits to average total deposits for the fourth quarter increased to 30.0%;
    • The cost of total deposits declined by 37 basis points versus the prior quarter;
    • The net interest margin increased to 2.79% for the fourth quarter of 2024 compared to 2.50% for the prior quarter;
    • The loan to deposit ratio declined to 93.0% at the end of the fourth quarter compared to 95.4% for the prior quarter;
    • The allowance for credit losses to total loans increased to 0.82% at the end of the fourth quarter compared to 0.78% for the prior quarter;
    • The Company’s Common Equity Tier 1 Ratio increased to 11.07% at the end of the fourth quarter; and
    • The Bank received an “Outstanding” overall rating as well as an “Outstanding” rating on each of the individual components (Lending, Investment and Service tests) for its recently concluded Community Reinvestment Act examination.

    Management’s Discussion of Quarterly Operating Results

    Net Interest Income

    Net interest income for the fourth quarter of 2024 was $91.1 million compared to $79.9 million for the third quarter of 2024 and $74.1 million for the fourth quarter of 2023.

    Mr. Lubow commented, “Strong growth in core deposits as well as proactive management of deposit rates led to strong linked quarter growth in our net interest margin. We anticipate the full quarter impact of the securities repositioning (which was completed towards the end of November) to positively benefit the NIM in 2025.”

    The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.

               
    (Dollars in thousands) Q4 2024 Q3 2024 Q4 2023 
    Net interest income $ 91,098  $79,924  $74,121  
    Purchase accounting amortization (accretion) on loans ("PAA")   (1,268)  (266)  (55) 
    Adjusted net interest income excluding PAA on loans (non-GAAP) $ 89,830  $79,658  $74,066  
               
    Average interest-earning assets $ 12,974,958  $12,734,246  $12,828,060  
               
    NIM (1)   2.79 %   2.50 % 2.29 %
    Adjusted NIM excluding PAA on loans (non-GAAP) (2)   2.75 %   2.49 % 2.29 %
                  

    (1)   NIM represents net interest income divided by average interest-earning assets.
    (2)   Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets.

    Loan Portfolio

    The ending weighted average rate (“WAR”) on the total loan portfolio was 5.26% at December 31, 2024, a 14 basis point decrease compared to the ending WAR of 5.40% on the total loan portfolio at September 30, 2024. The linked quarter decline in the WAR on the loan portfolio was primarily due to floating rate loans adjusting lower as a result of the Federal Reserve’s rate cuts.

    Outlined below are loan balances and WARs for the quarter ended as indicated.

                     
      December 31, 2024 September 30, 2024 December 31, 2023 
    (Dollars in thousands)    Balance    WAR (1)    Balance    WAR (1)    Balance    WAR (1) 
    Loans held for investment balances at period end:                
    Business loans (2) $ 2,726,602  6.56%  $2,653,624 6.82%$2,310,379 6.81%
    One-to-four family residential, including condominium and cooperative apartment   952,195  4.72  934,209 4.65  889,236 4.47 
    Multifamily residential and residential mixed-use (3)(4)   3,820,492  4.49  3,866,931 4.60  4,017,703 4.53 
    Non-owner-occupied commercial real estate   3,231,398  5.13  3,281,923 5.25  3,381,842 5.19 
    Acquisition, development, and construction   136,172  7.95  149,299 8.46  168,513 8.71 
    Other loans   5,084  10.51  6,058 10.71  5,755 6.75 
    Loans held for investment $ 10,871,943  5.26%  $10,892,044 5.40%$10,773,428 5.29%
     

    (1)    WAR 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 balance of loans in the category.
    (2)    Business loans include commercial and industrial loans and owner-occupied commercial real estate loans.
    (3)    Includes loans underlying multifamily cooperatives.
    (4)    While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

    Outlined below are the loan originations, for the quarter ended as indicated.

              
    (Dollars in millions) Q4 2024 Q3 2024    Q4 2023
    Loan originations $ 187.5 $122.7 $195.9
              

    Deposits and Borrowed Funds

    Period end total deposits (including mortgage escrow deposits) at December 31, 2024 were $11.69 billion, compared to $11.42 billion at September 30, 2024 and $10.53 billion at December 31, 2023.

    Total Federal Home Loan Bank advances were $608.0 million at December 31, 2024 compared to $508.0 million at September 30, 2024 and $1.31 billion at December 31, 2023.

    Mr. Lubow commented, “Over the course of 2024, we made significant progress in re-creating a core-deposit funded balance sheet. Strong growth in core business deposits allowed us to reduce our FHLB advance position by approximately $700 million on a year-over-year basis and our brokered deposit position by approximately $475 million on a year-over-year basis.”

    Non-Interest Income

    Non-interest income was a loss of $33.9 million during the fourth quarter of 2024, compared to income of $7.6 million during the third quarter of 2024, and income of $8.9 million during the fourth quarter of 2023. Fourth quarter 2024 results included $42.8 million of pre-tax loss-on-sale of securities related to the re-positioning of the available-for-sale securities portfolio.

    Non-Interest Expense

    Total non-interest expense was $60.6 million during the fourth quarter of 2024, $57.7 million during the third quarter of 2024, and $53.9 million during the fourth quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense, settlement loss related to the termination of a legacy pension plan, and the FDIC special assessment, adjusted non-interest expense was $57.7 million during the fourth quarter of 2024, $57.4 million during the third quarter of 2024, and $52.6 million during the fourth quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Mr. Lubow commented, “In line with our previous guidance, our adjusted non-interest expense base was relatively flat in the fourth quarter of 2024 compared to the prior quarter.”

    The ratio of non-interest expense to average assets was 1.76% during the fourth quarter of 2024, compared to 1.71% during the linked quarter and 1.58% for the fourth quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense, the FDIC special assessment and settlement loss related to the termination of a legacy pension plan, the ratio of adjusted non-interest expense to average assets was 1.68% during the fourth quarter of 2024, compared to 1.70% during the linked quarter and 1.54% for the fourth quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    The efficiency ratio was 105.9% during the fourth quarter of 2024, compared to 65.9% during the linked quarter and 65.0% during the fourth quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, the FDIC special assessment, settlement loss related to the termination of a legacy pension plan, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 58.0% during the fourth quarter of 2024, compared to 65.6% during the linked quarter and 63.6% during the fourth quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Income Tax Expense

    The fourth quarter of 2024 income tax expense was $3.3 million, inclusive of $9.1 million of income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets. Excluding the tax impact of the BOLI surrender, the fourth quarter 2024 effective rate was a tax benefit of 33.5%. This compares to an effective tax rate of 26.9% for the third quarter of 2024, and 35.6% for the fourth quarter of 2023.

    Credit Quality

    Non-performing loans were $49.5 million at December 31, 2024, compared to $49.5 million at September 30, 2024 and $29.1 million at December 31, 2023.

    A credit loss provision of $13.7 million was recorded during the fourth quarter of 2024, compared to a credit loss provision of $11.6 million during the third quarter of 2024, and a credit loss provision of $3.7 million during the fourth quarter of 2023.

    Capital Management

    Stockholders’ equity increased $170.3 million to $1.40 billion at December 31, 2024, compared to $1.23 billion at December 31, 2023. The growth primarily reflects retained earnings and the $135.8 million in net proceeds raised in connection with the November 2024 common equity offering.

    The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of December 31, 2024. All risk-based regulatory capital ratios increased in the fourth quarter of 2024.

    Mr. Lubow commented, “During the fourth quarter we raised $136 million of net proceeds from a common equity offering. Our capital ratios are now best-in-class when compared to other community and regional banks in our footprint with over $10 billion of assets.”

    Dividends per common share were $0.25 during the fourth and third quarters of 2024, respectively.

    Book value per common share was $29.34 at December 31, 2024 compared to $29.31 at September 30, 2024.

    Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.68 at December 31, 2024 compared to $25.22 at September 30, 2024 (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 Thursday, January 23, 2025, during which CEO Lubow will discuss the Company’s fourth quarter 2024 financial performance, with a question-and-answer session to follow.

    Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/sjcchcex. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BIe30c4b35e36b49dfa2d4bdc94b8528b3. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

    A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/sjcchcex.

    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 $14.4 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 with 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 “annualized," “anticipate," "believe," “continue,” "could," "estimate," "expect," "intend," “likely,” "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

    Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

    Contact: Avinash Reddy
    Senior Executive Vice President – Chief Financial Officer
    718-782-6200 extension 5909



    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (In thousands)
              
         December 31,     September 30,     December 31, 
      2024
     2024
     2023
    Assets:           
    Cash and due from banks $ 1,283,571  $626,056  $457,547 
    Securities available-for-sale, at fair value   690,693   774,608   886,240 
    Securities held-to-maturity   637,339   592,414   594,639 
    Loans held for sale   22,625   13,098   10,159 
    Loans held for investment, net:         
    Business loans (1)   2,726,602   2,653,624   2,310,379 
    One-to-four family and cooperative/condominium apartment   952,195   934,209   889,236 
    Multifamily residential and residential mixed-use (2)(3)   3,820,492   3,866,931   4,017,703 
    Non-owner-occupied commercial real estate   3,231,398   3,281,923   3,381,842 
    Acquisition, development and construction   136,172   149,299   168,513 
    Other loans   5,084   6,058   5,755 
    Allowance for credit losses   (88,751)  (85,221)  (71,743)
    Total loans held for investment, net   10,783,192   10,806,823   10,701,685 
    Premises and fixed assets, net   34,858   35,066   44,868 
    Premises held for sale        905 
    Restricted stock   69,106   64,235   98,750 
    BOLI   290,665   372,367   349,816 
    Goodwill   155,797   155,797   155,797 
    Other intangible assets   3,896   4,181   5,059 
    Operating lease assets   46,193   48,537   52,729 
    Derivative assets   116,496   105,636   122,132 
    Accrued interest receivable   55,970   54,578   55,666 
    Other assets   162,857   93,133   100,013 
    Total assets $ 14,353,258  $13,746,529  $13,636,005 
    Liabilities:          
    Non-interest-bearing checking (excluding mortgage escrow deposits) $ 3,355,829  $3,231,160  $2,884,378 
    Interest-bearing checking   1,079,823   938,070   515,987 
    Savings (excluding mortgage escrow deposits)   1,927,903   1,845,266   2,335,354 
    Money market   4,198,784   3,898,509   3,125,996 
    Certificates of deposit   1,069,081   1,416,467   1,607,683 
    Deposits (excluding mortgage escrow deposits)   11,631,420   11,329,472   10,469,398 
    Non-interest-bearing mortgage escrow deposits   54,715   87,841   61,121 
    Interest-bearing mortgage escrow deposits   6   5   136 
    Total mortgage escrow deposits   54,721   87,846   61,257 
    FHLBNY advances   608,000   508,000   1,313,000 
    Other short-term borrowings   50,000       
    Subordinated debt, net   272,325   272,300   200,196 
    Derivative cash collateral   112,420   68,960   108,100 
    Operating lease liabilities   48,993   51,362   55,454 
    Derivative liabilities   108,347   98,108   121,265 
    Other liabilities   70,515   66,552   81,110 
    Total liabilities   12,956,741   12,482,600   12,409,780 
    Stockholders' equity:          
    Preferred stock, Series A   116,569   116,569   116,569 
    Common stock   461   416   416 
    Additional paid-in capital   624,822   488,607   494,454 
    Retained earnings   794,526   827,690   813,007 
    Accumulated other comprehensive loss ("AOCI"), net of deferred taxes   (45,018)  (72,970)  (91,579)
    Unearned equity awards   (7,640)  (10,111)  (8,622)
    Treasury stock, at cost   (87,203)  (86,272)  (98,020)
    Total stockholders' equity   1,396,517   1,263,929   1,226,225 
    Total liabilities and stockholders' equity $ 14,353,258  $13,746,529  $13,636,005 
     

    (1)     Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program (“PPP”) loans.
    (2)     Includes loans underlying multifamily cooperatives.
    (3)     While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.



    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands except share and per share amounts)
                      
      Three Months Ended  Year Ended
         December 31,     September 30,     December 31,     December 31,     December 31, 
      2024
     2024 2023 2024
     2023
    Interest income:                  
    Loans $ 148,000  $151,828  $144,744  $ 590,492  $554,488 
    Securities   10,010   7,766   7,918    33,563   32,179 
    Other short-term investments   7,473   4,645   6,094    26,094   22,693 
    Total interest income   165,483   164,239   158,756    650,149   609,360 
    Interest expense:                   
    Deposits and escrow   64,773   74,025   66,650    284,745   219,045 
    Borrowed funds   8,542   8,764   15,617    41,036   66,472 
    Derivative cash collateral   1,070   1,526   2,368    6,314   7,272 
    Total interest expense   74,385   84,315   84,635    332,095   292,789 
    Net interest income   91,098   79,924   74,121    318,054   316,571 
    Provision for credit losses   13,715   11,603   3,720    36,113   2,770 
    Net interest income after provision   77,383   68,321   70,401    281,941   313,801 
    Non-interest income:                   
    Service charges and other fees   3,942   4,267   3,804    16,725   16,437 
    Title fees   226   190   466    843   1,295 
    Loan level derivative income   491   132   728    2,114   7,081 
    BOLI income   2,825   2,606   2,416    10,376   9,748 
    Gain on sale of Small Business Administration ("SBA") loans   22   19   531    407   1,592 
    Gain on sale of residential loans   83   38   12    225   115 
    Fair value change in equity securities and loans held for sale   15   39   321    (1,204)  (758)
    Net loss on sale of securities   (42,810)         (42,810)  (1,447)
    Gain (loss) on sale of other assets   554   2       7,219   (22)
    Other   791   338   594    2,150   2,165 
    Total non-interest (loss) income   (33,861)  7,631   8,872    (3,955)  36,206 
    Non-interest expense:                   
    Salaries and employee benefits   35,761   36,132   30,383    136,114   117,437 
    Severance   1,254      25    1,296   9,093 
    Occupancy and equipment   7,569   7,448   7,261    29,794   29,055 
    Data processing costs   4,483   4,544   3,730    17,745   16,474 
    Marketing   1,897   1,629   1,765    6,660   6,781 
    Professional services   2,345   2,036   1,279    8,614   6,155 
    Federal deposit insurance premiums (1)   2,116   2,105   3,240    8,710   8,853 
    Loss on extinguishment of debt     1       454    
    Loss due to pension settlement   1,215          1,215    
    Amortization of other intangible assets   285   286   350    1,163   1,425 
    Other   3,688   3,548   5,911    14,782   17,855 
    Total non-interest expense   60,613   57,729   53,944    226,547   213,128 
    (Loss) income before taxes   (17,091)  18,223   25,329    51,439   136,879 
    Income tax expense (2)   3,322   4,896   9,021    22,355   40,785 
    Net (loss) income   (20,413)  13,327   16,308    29,084   96,094 
    Preferred stock dividends   1,821   1,822   1,821    7,286   7,286 
    Net (loss) income available to common stockholders $ (22,234) $11,505  $14,487  $ 21,798  $88,808 
    Earnings per common share ("EPS"):                   
    Basic $ (0.54) $0.29  $0.37  $ 0.55  $2.29 
    Diluted $ (0.54) $0.29  $0.37  $ 0.55  $2.29 
                      
    Average common shares outstanding for diluted EPS   40,767,161   38,366,619   38,216,476    38,933,054   38,187,477 
                         

    (1)     Fourth quarter of 2024 and 2023 included $0.1 million and $1.0 million, respectively, of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank.
    (2)     Fourth quarter of 2024 includes $9.1 million of income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets.



    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 Year Ended  
         December 31,  September 30,     December 31,     December 31,     December 31,  
      2024
     2024 2023 2024 2023 
    Per Share Data:                    
    Reported EPS (Diluted) $ (0.54) $0.29  $0.37  $ 0.55  $2.29  
    Cash dividends paid per common share   0.25   0.25   0.25    1.00   0.99  
    Book value per common share   29.34   29.31   28.58    29.34   28.58  
    Tangible common book value per share (1)   25.68   25.22   24.44    25.68   24.44  
    Common shares outstanding   43,622   39,152   38,823    43,622   38,823  
    Dividend payout ratio   (46.30)%   86.21 % 67.57 %  181.82 % 43.23 %
                         
    Performance Ratios (Based upon Reported Net Income):                     
    Return on average assets   (0.59)%   0.39 % 0.48 %  0.21 % 0.71 %
    Return on average equity   (6.02)  4.19   5.32    2.27   7.91  
    Return on average tangible common equity (1)   (8.16)  4.70   6.20    2.24   9.59  
    Net interest margin   2.79   2.50   2.29    2.48   2.46  
    Non-interest expense to average assets   1.76   1.71   1.58    1.66   1.56  
    Efficiency ratio   105.9   65.9   65.0    72.1   60.4  
    Effective tax rate   (19.44)  26.87   35.62    43.46   29.80  
                         
    Balance Sheet Data:                     
    Average assets $ 13,759,002  $13,502,753  $13,630,096  $ 13,618,789  $13,625,215  
    Average interest-earning assets   12,974,958   12,734,246   12,828,060    12,837,416   12,847,238  
    Average tangible common equity (1)   1,080,177   996,578   948,024    1,006,390   936,840  
    Loan-to-deposit ratio at end of period (2)   93.0   95.4   102.3    93.0   102.3  
                         
    Capital Ratios and Reserves - Consolidated: (3)                     
    Tangible common equity to tangible assets (1)   7.89 %   7.27 % 7.04 %        
    Tangible equity to tangible assets (1)   8.71   8.13   7.91          
    Tier 1 common equity ratio   11.07   10.16   9.84          
    Tier 1 risk-based capital ratio   12.17   11.28   10.94          
    Total risk-based capital ratio   15.65   14.76   13.54          
    Tier 1 leverage ratio   9.39   8.76   8.51          
    Consolidated CRE concentration ratio (4)   447   487   538          
    Allowance for credit losses/ Total loans   0.82   0.78   0.67          
    Allowance for credit losses/ Non-performing loans   179.37   172.29   246.55          
                          

    (1)    See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets.
    (2)    Total deposits include mortgage escrow deposits, which fluctuate seasonally.
    (3)    December 31, 2024 ratios are preliminary pending completion and filing of the Company’s regulatory reports.
    (4)   The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The December 31, 2024 ratio is 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  
      December 31, 2024 September 30, 2024 December 31, 2023 
                        Average             Average          Average 
      Average    Yield/ Average    Yield/ Average    Yield/ 
      Balance Interest Cost Balance Interest Cost Balance Interest Cost 
    Assets:                            
    Interest-earning assets:                            
    Business loans (1) $ 2,681,953 $ 46,791  6.94%  $2,609,934 $46,656 7.11%$2,264,401 $38,740 6.79%
    One-to-four family residential, including condo and coop   943,319   11,061  4.66  924,150  11,024 4.75  893,008  9,706 4.31 
    Multifamily residential and residential mixed-use   3,848,579   44,152  4.56  3,902,220  45,790 4.67  4,070,327  46,715 4.55 
    Non-owner-occupied commercial real estate   3,265,906   42,865  5.22  3,297,760  44,804 5.40  3,376,581  45,037 5.29 
    Acquisition, development, and construction   139,440   3,101  8.85  147,875  3,505 9.43  188,022  4,459 9.41 
    Other loans   4,781   30  2.50  4,891  49 3.99  5,837  87 5.91 
    Securities   1,455,449   10,010  2.74  1,493,492  7,766 2.07  1,599,724  7,918 1.96 
    Other short-term investments   635,531   7,473  4.68  353,924  4,645 5.22  430,160  6,094 5.62 
    Total interest-earning assets   12,974,958   165,483  5.07%   12,734,246  164,239 5.13% 12,828,060  158,756 4.91%
    Non-interest-earning assets   784,044         768,507       802,036      
    Total assets $ 13,759,002        $13,502,753      $13,630,096      
                              
    Liabilities and Stockholders' Equity:                         
    Interest-bearing liabilities:                         
    Interest-bearing checking (2) $ 912,645 $ 5,115  2.23%  $798,024 $4,635 2.31%$524,573 $1,063 0.80%
    Money market   3,968,793   33,695  3.38  3,771,562  36,841 3.89  3,136,891  27,541 3.48 
    Savings (2)   1,905,866   14,828  3.10  2,102,282  19,492 3.69  2,295,882  20,979 3.63 
    Certificates of deposit   1,126,859   11,135  3.93  1,232,984  13,057 4.21  1,564,817  17,067 4.33 
    Total interest-bearing deposits   7,914,163   64,773  3.26  7,904,852  74,025 3.73  7,522,163  66,650 3.52 
    FHLBNY advances   509,630   4,241  3.31  528,652  4,455 3.35  1,174,848  13,064 4.41 
    Subordinated debt, net   272,311   4,301  6.28  271,450  4,307 6.31  200,210  2,553 5.06 
    Other short-term borrowings   543     131  2 6.07      
    Total borrowings   782,484   8,542  4.34  800,233  8,764 4.36  1,375,058  15,617 4.51 
    Derivative cash collateral   99,560   1,070  4.28  91,305  1,526 6.65  161,535  2,368 5.82 
    Total interest-bearing liabilities   8,796,207   74,385  3.36%   8,796,390  84,315 3.81% 9,058,756  84,635 3.71%
    Non-interest-bearing checking (2)   3,396,457         3,209,502       3,059,289      
    Other non-interest-bearing liabilities   209,712         223,546       286,373      
    Total liabilities   12,402,376         12,229,438       12,404,418      
    Stockholders' equity   1,356,626         1,273,315       1,225,678      
    Total liabilities and stockholders' equity $ 13,759,002        $13,502,753      $13,630,096      
    Net interest income     $ 91,098       $79,924      $74,121   
    Net interest rate spread          1.71%        1.32%      1.20%
    Net interest margin          2.79%        2.50%        2.29%
    Deposits (including non-interest-bearing checking accounts) (2) $ 11,310,620 $ 64,773  2.28%  $11,114,354 $74,025 2.65%$10,581,452 $66,650 2.50%
     

    (1)     Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
    (2)     Includes mortgage escrow deposits.



    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
    (Dollars in thousands)
              
         At or For the Three Months Ended
      December 31,     September 30,     December 31, 
    Asset Quality Detail 2024
     2024
     2023
    Non-performing loans ("NPLs")          
    Business loans (1) $ 22,624  $25,411  $18,574 
    One-to-four family residential, including condominium and cooperative apartment   3,213   3,880   3,248 
    Multifamily residential and residential mixed-use         
    Non-owner-occupied commercial real estate   22,960   19,509   6,620 
    Acquisition, development, and construction   657   657   657 
    Other loans   25   6    
    Total Non-accrual loans $ 49,479  $49,463  $29,099 
    Total Non-performing assets ("NPAs") $ 49,479  $49,463  $29,099 
              
    Total loans 90 days delinquent and accruing ("90+ Delinquent") $  $  $ 
              
    NPAs and 90+ Delinquent $ 49,479  $49,463  $29,099 
              
    NPAs and 90+ Delinquent / Total assets  0.34%  0.36%  0.21%
    Net charge-offs ("NCOs") $ 10,611  $4,199  $4,555 
    NCOs / Average loans (2)  0.39%  0.15%  0.17%
                 

    (1)     Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
    (2)     Calculated based on annualized NCOs to average loans, excluding loans held for sale.



               DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    NON-GAAP RECONCILIATION
    (Dollars in thousands except per share amounts)

    The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides 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 fair value change in equity securities and loans held for sale, net loss (gain) on sale of securities and other assets, severance, the FDIC special assessment, loss on extinguishment of debt and loss due to pension settlement. The non-GAAP financial measures also include taxes related to the surrender of BOLI assets.  

                     
      Three Months Ended  Year Ended  
         December 31,     September 30,     December 31,     December 31,  December 31,  
      2024
     2024
     2023
     2024
     2023
     
    Reconciliation of Reported and Adjusted (non-GAAP) Net (Loss) Income Available to Common Stockholders                
    Reported net (loss) income available to common stockholders $ (22,234) $11,505  $14,487  $ 21,798  $88,808  
    Adjustments to net income (1):                 
    Fair value change in equity securities and loans held for sale   (15)  (39)  (321)   1,204   758  
    Net loss (gain) on sale of securities and other assets   42,256   (2)      35,591   1,469  
    Severance   1,254      25    1,296   9,093  
    FDIC special assessment   126      999    126   999  
    Loss on extinguishment of debt     1       454     
    Loss due to pension settlement   1,215          1,215     
    Income tax effect of adjustments noted above (1)   (14,258)  13   (208)   (12,684)  (1,193) 
    BOLI tax adjustment (2):   9,073          9,073     
    Adjusted net income available to common stockholders (non-GAAP) $ 17,417  $11,478  $14,982  $ 58,073  $99,934  
                     
    Adjusted Ratios (Based upon Adjusted (non-GAAP) Net (Loss) Income as calculated above)                
    Adjusted EPS (Diluted) $ 0.42  $0.29  $0.39  $ 1.46  $2.58  
    Adjusted return on average assets   0.56 %   0.39 % 0.49 %  0.48 % 0.79 %
    Adjusted return on average equity   5.67   4.18   5.48    5.09   8.82  
    Adjusted return on average tangible common equity   6.52   4.69   6.41    5.85   10.77  
    Adjusted non-interest expense to average assets   1.68   1.70   1.54    1.63   1.48  
    Adjusted efficiency ratio   58.0   65.6   63.6    63.4   56.8  
                          

    (1)    Adjustments to net (loss) income are taxed at the Company's approximate statutory tax rate.
    (2)    Reflects income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets.


    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   Year Ended
         December 31,   September 30,   December 31,   December 31,      December 31,  
      2024  2024  2023  2024  2023 
    Operating expense as a % of average assets - as reported   1.76 %   1.71 % 1.58 %  1.66 %   1.56 %
    Severance   (0.04)         (0.01)  (0.06) 
    FDIC special assessment        (0.03)     (0.01) 
    Loss on extinguishment of debt                
    Loss due to pension settlement   (0.04)         (0.01)    
    Amortization of other intangible assets     (0.01)  (0.01)   (0.01)  (0.01) 
    Adjusted operating expense as a % of average assets (non-GAAP)   1.68 %   1.70 % 1.54 %  1.63 % 1.48 %
     


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

                     
      Three Months Ended  Year Ended  
         December 31,     September 30,     December 31,     December 31,  December 31,  
      2024
     2024
     2023
     2024
     2023
     
    Efficiency ratio - as reported (non-GAAP) (1)      105.9 %   65.9 % 65.0 %  72.1 %   60.4 %
    Non-interest expense - as reported $ 60,613  $57,729  $53,944  $ 226,547  $213,128  
    Severance   (1,254)     (25)   (1,296)  (9,093) 
    FDIC special assessment   (126)     (999)   (126)  (999) 
    Loss on extinguishment of debt     (1)      (454)    
    Loss due to pension settlement   (1,215)         (1,215)    
    Amortization of other intangible assets   (285)  (286)  (350)   (1,163)  (1,425) 
    Adjusted non-interest expense (non-GAAP) $ 57,733  $57,442  $52,570  $ 222,293  $201,611  
    Net interest income - as reported $ 91,098  $79,924  $74,121  $ 318,054  $316,571  
    Non-interest (loss) income - as reported $ (33,861) $7,631  $8,872  $ (3,955) $36,206  
    Fair value change in equity securities and loans held for sale   (15)  (39)  (321)   1,204   758  
    Net loss (gain) on sale of securities and other assets   42,256   (2)      35,591   1,469  
    Adjusted non-interest income (non-GAAP) $ 8,380  $7,590  $8,551  $ 32,840  $38,433  
    Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 99,478  $87,514  $82,672  $ 350,894  $355,004  
    Adjusted efficiency ratio (non-GAAP) (2)    58.0 %   65.6 % 63.6 %  63.4 %   56.8 %
     

    (1)   The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
    (2)   The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.


    The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):

               
         December 31,     September 30,     December 31,  
      2024
     2024
     2023
     
    Reconciliation of Tangible Assets:          
    Total assets $ 14,353,258  $13,746,529  $13,636,005  
    Goodwill   (155,797)  (155,797)  (155,797) 
    Other intangible assets   (3,896)  (4,181)  (5,059) 
    Tangible assets (non-GAAP) $ 14,193,565  $13,586,551  $13,475,149  
               
    Reconciliation of Tangible Common Equity - Consolidated:          
    Total stockholders' equity $ 1,396,517  $1,263,929  $1,226,225  
    Goodwill   (155,797)  (155,797)  (155,797) 
    Other intangible assets   (3,896)  (4,181)  (5,059) 
    Tangible equity (non-GAAP)   1,236,824   1,103,951   1,065,369  
    Preferred stock, net   (116,569)  (116,569)  (116,569) 
    Tangible common equity (non-GAAP) $ 1,120,255  $987,382  $948,800  
               
    Common shares outstanding   43,622   39,152   38,823  
               
    Tangible common equity to tangible assets (non-GAAP)  7.89 % 7.27 % 7.04 %
    Tangible equity to tangible assets (non-GAAP)  8.71   8.13   7.91  
               
    Book value per common share $29.34  $29.31  $28.58  
    Tangible common book value per share (non-GAAP)  25.68   25.22   24.44  
                  

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