BROOKLYN, N.Y., Jan. 25, 2018 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ:DCOM) (the “Company”), the parent company of Dime Community Bank (the “bank”), today reported net income of $51.9 million for the fiscal year ended December 31, 2017, or $1.38 per diluted common share. For the quarter ended December 31, 2017, net income was $15.4 million, or $0.41 per diluted common share.
Highlights for the fiscal year of 2017 included:
- Successful launch of the Business Banking division, with commercial and industrial (“C&I”) loan balances of $137 million and direct-sourced commercial real estate (“CRE”) loan balances of $98.6 million at year-end;
- Consolidated Company CRE concentration ratio declined to approximately 778% at year-end 2017, versus 903% at year-end 2016;
- Continued expense discipline, with operating expenses to average assets (adjusted for non-recurring expenses) remaining well-controlled on a year-over-year basis; and
- Reported book value per share and tangible book value (common equity less goodwill divided by number of shares outstanding) per share grew to $16.00 and $14.51, respectively, at December 31, 2017.
Highlights for the fourth quarter of 2017 included:
- Continued the build out of the Business Banking division via the hire of Alan Green, Senior Vice President of Business Banking, who will operate from the bank’s Manhattan office;
- Hired a proven industry veteran, Nancy Tomich, Senior Vice President and Head of Residential Lending, who will be responsible for building the bank’s residential lending infrastructure;
- Significantly bolstered the risk management department with the hires of Chris Porzelt, Executive Vice President and Chief Risk Officer, who will be responsible for managing all aspects of the buildout of the bank’s enterprise risk management function, and Kevin Corbett, Senior Vice President and Chief Credit Officer, who will be responsible for overseeing the bank’s credit administration department;
- Successfully completed a $280 million securitization of multifamily loans in December through a Freddie Mac sponsored “Q-deal” securitization (“Loan Securitization”); transaction represents first such multifamily loan securitization for a bank headquartered in the metropolitan New York City marketplace;
- Loan-to-deposit ratio declined to 127% at year-end 2017 versus 137% at the end of the third quarter of 2017; and
- Credit quality continued to remain pristine, with total non-performing loans to loans of 0.01%.
Kenneth J. Mahon, President and CEO of the Company, commented, “During 2017, Dime put into place the necessary building blocks for our transformation towards a leading community commercial bank. The early results of our Business Banking initiative are extremely promising. Importantly, the Business Banking division ended the year with approximately $52 million of low-cost relationship-based deposits at an average cost of approximately 10 basis points and approximately 43% of the year-to-date originations have been floating rate loans.”
Mr. Mahon concluded, “Our focus in 2018 is to continue to grow relationship-based loans and improve the composition of our deposit base. At the same time, we will remain steadfast in maintaining our key competitive strengths of expense discipline and maintaining pristine credit quality.”
Management’s Discussion of 2017 Operating Results
Net Interest Income
Net interest income in 2017 was $152.7 million, an increase of $9.2 million (+6.4%) from 2016. The increase reflects a $16.5 million increase in interest income compared to a $7.2 million increase in interest expense. The growth in interest income was driven by an increase of $656.6 million (+12.3%) in average interest-earning assets, which more than offset the 13 basis point decline in average yield. The increase in interest expense was attributable to an increase of $579.9 million (+16.4%) in average interest-bearing deposits as well as an increase in the cost of borrowed funds of 13 basis points. Net interest margin (“NIM”) was 2.54% during 2017, compared to 2.68% in 2016. NIM was negatively impacted in 2017 by lower income recognized from loan prepayment activity. For 2017, income from prepayment activity totaled $5.0 million, benefiting NIM by 8 basis points, compared to $9.0 million, or 17 basis points in 2016.
Balance Sheet
Total assets grew by $398.0 million (+6.6%) in 2017, primarily the result of an increase in investment securities by $338.3 million and cash by $56.0 million. While the decrease in total loans during 2017 was $34.8 million, a shift in the portfolio mix resulted in a decrease of real estate loans by $168.9 million and an increase in C&I loans by $134.6 million. Total loan originations were $899.9 million during 2017, down from $1.54 billion in 2016, of which $757.9 million were real estate loans and $139.7 million were C&I and other loans. The real estate loan payoff rate of 10.8% in 2017 was less than the 2016 payoff rate of 14.6%. Deposits remained relatively flat in 2017 compared to 2016. Borrowings rose by $381.8 million, primarily due to the increase in Federal Home Loan Bank advances of $338.9 million. The additional increase of $42.9 million in borrowings during 2017 was the result of the issuance of subordinated debt in June 2017, offset by the redemption of trust preferred securities in July 2017.
Non-Interest Income
Non-interest income of $21.5 million in 2017 included gains of $10.4 million from the sale of real estate property, $2.6 million from the sale of the Company’s pooled trust preferred securities portfolio, and $1.5 million from the sale of loans. Non-interest income of $75.9 million in 2016 included gains of $68.2 million from the sale of real estate property. Excluding these gains, non-interest income was $7.0 million in 2017 and $7.7 million in 2016.
Non-Interest Expense
Non-interest expense was $85.0 million in 2017 and $83.8 million during 2016. During 2017, the Company recognized non-recurring expenses of $1.3 million for loss on extinguishment of debt related to the redemption of trust preferred securities and $1.7 million related to de-conversion costs associated with the planned change in the bank’s core processor. During 2016, the Company recognized a non-cash, non-tax deductible expense of $11.3 million on the prepayment of the Employee Stock Ownership Plan (“ESOP”) share acquisition loan. Excluding these items, non-interest expense was $82.0 million in 2017 and $72.5 million in 2016, an increase of $9.5 million. The increase was primarily the result of higher occupancy expense of $2.1 million, data processing expense of $1.4 million, marketing expense of $1.7 million, accelerated consulting expenses of $1.4 million, and recognition of the bank’s first loss guarantee for the Loan Securitization totaling $0.4 million. The additional consulting expense was related to an earlier-than-anticipated completion of such services.
The ratio of non-interest expense to average assets was 1.37% in 2017 compared to 1.51% in 2016. Excluding the non-recurring expenses mentioned above, the ratio was 1.32% and 1.31% for 2017 and 2016, respectively. The efficiency ratio was 53.24% in 2017, down from 55.48% in 2016. Excluding the non-recurring expenses mentioned above, the ratio was 51.37% and 47.98% for 2017 and 2016, respectively.
Management’s Discussion of Quarterly Operating Results
Net Interest Income
Net interest income in the fourth quarter of 2017 was $38.7 million, comparable to the third quarter of 2017, and an increase of $0.8 million (+2.2%) over the fourth quarter of 2016. NIM was 2.50% during the fourth quarter of 2017, compared to 2.53% in the third quarter of 2017, and 2.67% in the fourth quarter of 2016. The linked quarter decrease in NIM was due to lower income recognized from loan prepayment activity and an increase in the cost of deposits of 5 basis points. For the fourth quarter of 2017, income from prepayment activity totaled $1.3 million, benefiting NIM by 8 basis points, compared to $1.4 million, or 9 basis points, during the third quarter of 2017, and $2.7 million, or 19 basis points, during the fourth quarter of 2016.
Average interest-earning assets were $6.20 billion for the fourth quarter of 2017, representing a 7.8% (annualized) increase from $6.08 billion for the third quarter of 2017 and a 9.1% increase from $5.69 billion for the fourth quarter of 2016.
The average yield on interest-earning assets was 3.52%, 3.53%, and 3.64% for the fourth quarter of 2017, third quarter of 2017, and fourth quarter of 2016, respectively. Excluding prepayment income, the average yield on interest-earning assets was 3.44%, flat with the third quarter of 2017, and 2 basis points lower than fourth quarter 2016, while the average cost of funds was 1.19%, 5 basis points higher than the 1.14% cost of funds for third quarter of 2017 and 6 basis points higher than the fourth quarter of 2016.
Loans
The real estate loan portfolio decreased by $402.5 million during the fourth quarter of 2017, primarily as a result of the Loan Securitization. Real estate loan originations were $70.6 million during the quarter, at a weighted average interest rate of 4.36%. Real estate loan amortization and satisfactions totaled $143.6 million, or 10.2% (annualized) of the portfolio balance, at an average rate of 4.11%. The annualized real estate loan payoff rate of 10.2% for fourth quarter 2017 was in line with the third quarter 2017 and lower than the fourth quarter 2016 (15.1%). Average real estate loans were $5.82 billion in the fourth quarter of 2017, a decrease of $19.1 million (-1.3% annualized) from the third quarter of 2017 and an increase of $263.7 million (+4.7%) from the fourth quarter of 2016.
Included in total real estate loan originations during the fourth quarter of 2017 were $24.1 million of originations from the Business Banking division at a weighted average rate of 4.78%, compared to $41.5 million of originations at a weighted average rate of 4.62% during the third quarter of 2017.
At December 31, 2017, the bank had outstanding real estate loan commitments totaling $46.1 million, at an average interest rate approximating 4.20%, all of which are likely to close during the quarter ending March 31, 2018.
C&I loan originations were $27.5 million during the quarter, at a weighted average rate of 4.94%, compared to $44.6 million at a weighted average rate of 4.60% during the third quarter of 2017. Total C&I loan balances were $136.7 million at the end of the fourth quarter of 2017, compared to $111.1 million at the end of the third quarter of 2017.
Cash and Securities
Fourth quarter 2017 cash and securities balances increased by $320.4 million versus the third quarter of 2017, primarily as a result of the Loan Securitization which was completed in December 2017.
Deposits and Borrowed Funds
Total deposits grew $32.3 million (+3.0% annualized) compared to the third quarter of 2017. This was primarily the result of a $66.4 million increase in certificates of deposits, offset by a $47.0 million decrease in money market accounts. Declines in money market accounts were primarily driven by outflows in DimeDirect, the bank’s online channel as the bank’s posted rate in the fourth quarter of 2017 continued to lag many of its online competitors.
The average cost of deposits increased 5 basis points on a linked quarter basis to 0.91% as the bank selectively increased rates on certain deposit products in light of increased deposit competition.
The loan-to-deposit ratio fell to 127.2% at December 31, 2017, from 136.8% at September 30, 2017 and 128.3% at December 31, 2016. The linked quarter decline in the ratio was primarily the result of the Loan Securitization.
Total borrowings decreased $47.5 million during the fourth quarter of 2017 versus the third quarter of 2017, as deposit growth outpaced loan growth. In the fourth quarter, the Company entered into $110.0 million of long-term borrowings (with initial terms of 2 years and more), at an average rate of 2.22%, versus $97.0 million of long-term borrowings at an average rate of 1.74% in the third quarter of 2017.
Non-Interest Income
Non-interest income was $13.7 million during the fourth quarter of 2017. This includes gains of $10.4 million from the sale of real estate property and $1.5 million from the sale of loans. Non-interest income of $4.3 million for the third quarter of 2017 included gains of $2.6 million from the sale of the Company’s pooled trust preferred securities portfolio. Excluding these gains, non-interest income was $1.8 million during the fourth quarter of 2017 and $1.7 million during the third quarter of 2017, and comparable to the fourth quarter of 2016.
Non-Interest Expense
Non-interest expense was $22.6 million during the fourth quarter of 2017, $22.2 million during the third quarter of 2017, and $29.6 million during the fourth quarter of 2016. During the third quarter of 2017, the Company recognized non-recurring expenses of $1.3 million for loss on extinguishment of debt related to the redemption of trust preferred securities and $1.7 million related to de-conversion costs associated with the planned change in the bank’s core processor. During the fourth quarter of 2016, the Company recognized a non-cash, non-tax deductible expense of $11.3 million on the prepayment of the ESOP share acquisition loan.
Excluding these non-recurring items, non-interest expense was $19.2 million during the third quarter of 2017 and $18.3 million during the fourth quarter of 2016. The increase in non-interest expenses in the fourth quarter 2017 of $3.4 million versus the linked quarter was primarily the result of an increase in salaries and benefits by $1.2 million, accelerated consulting expenses of $1.4 million, and recognition of the bank’s first loss guarantee for the Loan Securitization totaling $0.4 million. The increase in salaries and benefits in the fourth quarter of 2017 included a one-time bonus accrual of $0.4 million for non-executive employees, as part of the Company’s previously announced plan to share the benefits of the Federal tax cuts with employees. The accelerated consulting expense recognized in the fourth quarter of 2017 was related to an earlier-than-anticipated completion of such services.
The ratio of non-interest expense to average assets was 1.41% during the fourth quarter of 2017, in line with the third quarter of 2017 (1.41%),and lower than the fourth quarter of 2016 (2.01%). Excluding the non-recurring expenses mentioned above, the ratio was 1.22% during the third quarter of 2017 and 1.25% during the fourth quarter of 2016. The efficiency ratio was 55.63% during the fourth quarter of 2017, comparable to 55.29% during the linked quarter, and lower than 74.58% during the fourth quarter of 2016. Excluding the non-recurring expenses mentioned above, the ratio was 47.8% during the third quarter of 2017 and 46.1% during the fourth quarter of 2016.
Income Tax Expense and Deferred Tax Asset and Liability Re-evaluation
The effective income tax rate was 50.0% during the fourth quarter of 2017, higher than the 35.2% recorded in the third quarter of 2017, primarily as a result of $3.1 million of tax expense, which represents a reduction of $0.08 per diluted share, recognized to re-value the Company’s deferred tax assets and liabilities due to the passage of the Tax Cuts and Jobs Act (the “Act”) that the President signed into law on December 22, 2017. The Company’s re-valuation of its net deferred tax asset is an estimate and subject to change as further clarification of the Act becomes available.
The Company estimates that its effective tax rate for 2018 will approximate 25% due to the new tax legislation.
Credit Quality
Non-performing loans were $0.5 million, or 0.01% of total loans, at December 31, 2017, a decrease from $0.8 million, or 0.01% of total loans, at September 30, 2017. The allowance for loan losses was 0.38% of total loans at December 31, 2017, consistent with the 0.37% at September 30, 2017. At December 31, 2017, non-performing assets represented 3.4% of the sum of tangible capital plus the allowance for loan losses (this non-Generally Accepted Accounting Principle (“GAAP”) statistic is otherwise known as the "Texas Ratio") (see table at the end of this news release). A credit for loan losses of $1.0 million was recorded during the fourth quarter of 2017, compared to a loan loss provision of $0.02 million during the third quarter of 2017, mainly as a result of the reduction in real estate loan balances by $402.5 million, (primarily as a result of the Loan Securitization), offset by growth in C&I loans on a linked quarter basis.
Capital Management
The Company’s consolidated Tier 1 capital to average assets (“leverage ratio”), which was 8.61% at December 31, 2017, was in excess of all applicable regulatory requirements.
The bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements, inclusive of conservation buffer amounts. At December 31, 2017, the bank’s leverage ratio was 9.32%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 12.73% and 13.13%, respectively.
Diluted earnings per common share exceeded the quarterly $0.14 cash dividend per share by 192.86% during the fourth quarter of 2017, equating to a 34.15% payout ratio.
Book value per share was $16.00 and tangible book value (common equity less goodwill divided by number of shares outstanding) per share was $14.51 at December 31, 2017.
Earnings Call Information
The Company will conduct a conference call at 5:30 p.m. (ET) on January 25, 2018, during which President and Chief Executive Officer, Kenneth J. Mahon, will discuss the Company’s fourth quarter and fiscal year performance, with a Q&A session to follow. Dial-in information for the live call is 1-888-317-6016. 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/dcom180125.html. Dial-in information for the replay is 1-877-344-7529 using access code #10115844. Replay will be available January 25, 2018 (6:30 p.m.) through February 1 (11:59 p.m.).
ABOUT DIME COMMUNITY BANCSHARES, INC.
The Company had $6.40 billion in consolidated assets as of December 31, 2017, and is the parent company of the bank. The bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has 28 branches located throughout Brooklyn, Queens, the Bronx, and Nassau County and Suffolk 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," “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. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company and/or the Bank; changes in tax laws or 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.
Contact: Avinash Reddy
Senior Vice President – Corporate Development and Treasurer
718-782-6200 extension 5909
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
| (Dollars in thousands except share amounts) | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| 2017 | 2017 | 2016 | |||||||||
| ASSETS: | |||||||||||
| Cash and due from banks | $ | 169,455 | $ | 173,060 | $ | 113,503 | |||||
| Investment securities held to maturity | - | - | 5,378 | ||||||||
| Investment securities available for sale | 4,006 | 4,034 | 3,895 | ||||||||
| Mortgage-backed securities available for sale | 351,384 | 27,381 | 3,558 | ||||||||
| Trading securities | 2,715 | 2,675 | 6,953 | ||||||||
| Real Estate Loans: | |||||||||||
| One-to-four family and cooperative/condominium apartment | 63,095 | 66,519 | 74,022 | ||||||||
| Multifamily residential and residential mixed use (1)(2) | 4,381,180 | 4,787,291 | 4,600,526 | ||||||||
| Commercial real estate | 1,010,603 | 1,003,642 | 958,459 | ||||||||
| Acquisition, development, and construction ("ADC") | 9,189 | 9,115 | - | ||||||||
| Total real estate loans | 5,464,067 | 5,866,567 | 5,633,007 | ||||||||
| Commercial and industrial ("C&I") | 136,671 | 111,099 | 2,058 | ||||||||
| Other loans | 1,379 | 1,092 | 1,357 | ||||||||
| Allowance for loan losses | (21,033 | ) | (22,007 | ) | (20,536 | ) | |||||
| Total loans, net | 5,581,084 | 5,956,751 | 5,615,886 | ||||||||
| Premises and fixed assets, net | 24,326 | 22,968 | 18,405 | ||||||||
| Premises held for sale | - | 1,379 | 1,379 | ||||||||
| Federal Home Loan Bank of New York capital stock | 59,696 | 61,833 | 44,444 | ||||||||
| Bank Owned Life Insurance ("BOLI") | 108,545 | 87,982 | 86,328 | ||||||||
| Goodwill | 55,638 | 55,638 | 55,638 | ||||||||
| Other assets | 46,611 | 50,728 | 50,063 | ||||||||
| TOTAL ASSETS | $ | 6,403,460 | $ | 6,444,429 | $ | 6,005,430 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing checking | $ | 307,746 | $ | 309,126 | $ | 297,434 | |||||
| Interest Bearing Checking | 124,283 | 111,612 | 106,525 | ||||||||
| Savings | 362,092 | 360,559 | 366,921 | ||||||||
| Money Market | 2,517,439 | 2,564,396 | 2,576,081 | ||||||||
| Sub-total | 3,311,560 | 3,345,693 | 3,346,961 | ||||||||
| Certificates of deposit | 1,091,887 | 1,025,500 | 1,048,465 | ||||||||
| Total Due to Depositors | 4,403,447 | 4,371,193 | 4,395,426 | ||||||||
| Escrow and other deposits | 82,168 | 117,765 | 103,001 | ||||||||
| Federal Home Loan Bank of New York advances | 1,170,000 | 1,217,500 | 831,125 | ||||||||
| Subordinated Notes Payable, net | 113,612 | 113,575 | - | ||||||||
| Trust Preferred Notes Payable | - | - | 70,680 | ||||||||
| Other liabilities | 35,666 | 38,359 | 39,330 | ||||||||
| TOTAL LIABILITIES | 5,804,893 | 5,858,392 | 5,439,562 | ||||||||
| STOCKHOLDERS' EQUITY: | |||||||||||
| Common stock ($0.01 par, 125,000,000 shares authorized, 53,624,453 shares, 53,617,919 shares and | |||||||||||
| 53,572,745 shares issued at December 31, 2017, September 30, 2017 and December 31, 2016, | |||||||||||
| respectively, and 37,419,070 shares, 37,422,884 shares and 37,455,853 shares outstanding | |||||||||||
| at December 31, 2017, September 30, 2017, and December 31, 2016, respectively) | 536 | 536 | 536 | ||||||||
| Additional paid-in capital | 276,730 | 276,674 | 278,356 | ||||||||
| Retained earnings | 535,130 | 524,237 | 503,539 | ||||||||
| Accumulated other comprehensive loss, net of deferred taxes | (3,641 | ) | (4,711 | ) | (5,939 | ) | |||||
| Unearned Restricted Stock Award common stock | (2,894 | ) | (3,536 | ) | (1,932 | ) | |||||
| Common stock held by the Benefit Maintenance Plan | (2,736 | ) | (2,736 | ) | (6,859 | ) | |||||
| Treasury stock (16,205,383 shares,16,195,035 shares and 16,116,892 shares | |||||||||||
| at December 31, 2017, September 30, 2017 and December 31, 2016, respectively) | (204,558 | ) | (204,427 | ) | (201,833 | ) | |||||
| TOTAL STOCKHOLDERS' EQUITY | 598,567 | 586,037 | 565,868 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,403,460 | $ | 6,444,429 | $ | 6,005,430 | |||||
| (1) Includes loans underlying 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) | ||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||
| 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Interest income: | ||||||||||||||||
| Loans secured by real estate | $ | 51,254 | $ | 51,621 | $ | 50,757 | $ | 204,487 | $ | 191,856 | ||||||
| Commercial and industrial ("C&I") | 1,514 | 1,043 | 21 | 3,072 | 41 | |||||||||||
| Other loans | 20 | 19 | 18 | 75 | 74 | |||||||||||
| Mortgage-backed securities | 487 | 27 | 14 | 542 | 20 | |||||||||||
| Investment securities | 115 | 108 | 313 | 577 | 880 | |||||||||||
| Other short-term investments | 1,204 | 811 | 667 | 3,343 | 2,756 | |||||||||||
| Total interest income | $ | 54,594 | $ | 53,629 | 51,790 | $ | 212,096 | 195,627 | ||||||||
| Interest expense: | ||||||||||||||||
| Deposits and escrow | 9,967 | 9,408 | 9,348 | 38,391 | 32,374 | |||||||||||
| Borrowed funds | 5,895 | 5,763 | 4,544 | 20,975 | 19,767 | |||||||||||
| Total interest expense | 15,862 | 15,171 | 13,892 | 59,366 | 52,141 | |||||||||||
| Net interest income | 38,732 | 38,458 | 37,898 | 152,730 | 143,486 | |||||||||||
| Provision (Credit) for loan losses | (1,000 | ) | 23 | 529 | 520 | 2,118 | ||||||||||
| Net interest income after provision | ||||||||||||||||
| (credit) for loan losses | 39,732 | 38,435 | 37,369 | 152,210 | 141,368 | |||||||||||
| Non-interest income: | ||||||||||||||||
| Service charges and other fees | 1,167 | 948 | 863 | 3,828 | 3,429 | |||||||||||
| Mortgage banking income, net | 51 | 69 | 25 | 201 | 96 | |||||||||||
| Gain (loss) on trading securities | (29 | ) | 28 | (25 | ) | 133 | 123 | |||||||||
| Gain on sale of securities and other assets | - | 2,607 | - | 2,607 | - | |||||||||||
| Gain on sale of loans | 1,475 | - | - | 1,475 | - | |||||||||||
| Gain on the sale of premises held for sale | 10,412 | - | - | 10,412 | 68,183 | |||||||||||
| Income from BOLI | 563 | 558 | 561 | 2,217 | 2,734 | |||||||||||
| Other | 67 | 73 | 393 | 641 | 1,369 | |||||||||||
| Total non-interest income | 13,706 | 4,283 | 1,817 | 21,514 | 75,934 | |||||||||||
| Non-interest expense: | ||||||||||||||||
| Salaries and employee benefits | 9,777 | 8,593 | 8,722 | 37,354 | 34,854 | |||||||||||
| ESOP and RRP benefit expense | 339 | 353 | 12,112 | 1,369 | 14,651 | |||||||||||
| Occupancy and equipment | 3,581 | 3,492 | 3,111 | 14,201 | 12,103 | |||||||||||
| Data processing costs | 1,778 | 3,392 | 1,459 | 8,280 | 5,194 | |||||||||||
| Marketing | 1,375 | 1,467 | 844 | 5,774 | 4,121 | |||||||||||
| Federal deposit insurance premiums | 724 | 875 | 582 | 2,966 | 2,515 | |||||||||||
| Loss from extinguishment of debt | - | 1,272 | - | 1,272 | - | |||||||||||
| Other | 4,999 | 2,731 | 2,808 | 13,770 | 10,393 | |||||||||||
| Total non-interest expense | 22,573 | 22,175 | 29,638 | 84,986 | 83,831 | |||||||||||
| Income before taxes | 30,865 | 20,543 | 9,548 | 88,738 | 133,471 | |||||||||||
| Income tax expense | 15,442 | 7,230 | 8,816 | 36,856 | 60,957 | |||||||||||
| Net Income | $ | 15,423 | $ | 13,313 | $ | 732 | $ | 51,882 | $ | 72,514 | ||||||
| Earnings per Share ("EPS"): | ||||||||||||||||
| Basic | $ | 0.41 | $ | 0.36 | $ | 0.02 | $ | 1.38 | $ | 1.97 | ||||||
| Diluted | $ | 0.41 | $ | 0.35 | $ | 0.02 | $ | 1.38 | $ | 1.97 | ||||||
| Average common shares outstanding | ||||||||||||||||
| for Diluted EPS | 37,432,283 | 36,441,855 | 36,803,342 | 37,510,449 | 36,764,086 | |||||||||||
| 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 Twelve Months Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| Per Share Data: | |||||||||||||||||||
| Reported EPS (Diluted) | $ | 0.41 | $ | 0.35 | $ | 0.02 | $ | 1.38 | $ | 1.97 | |||||||||
| Cash dividends paid per share | 0.14 | 0.14 | 0.14 | 0.56 | 0.56 | ||||||||||||||
| Book value per share | 16.00 | 15.66 | 15.11 | 16.00 | 15.11 | ||||||||||||||
| Tangible book value per share (1) | 14.51 | 14.17 | 13.62 | 14.51 | 13.62 | ||||||||||||||
| Dividend payout ratio | 34.15 | % | 40.00 | % | 700.00 | % | 40.58 | % | 28.43 | % | |||||||||
| Performance Ratios (Based upon Reported Net Income): | |||||||||||||||||||
| Return on average assets | 0.96 | % | 0.85 | % | 0.05 | % | 0.84 | % | 1.31 | % | |||||||||
| Return on average common equity | 10.41 | % | 9.14 | % | 0.52 | % | 8.94 | % | 13.40 | % | |||||||||
| Return on average tangible common equity (1) | 11.49 | % | 10.11 | % | 0.58 | % | 9.89 | % | 14.93 | % | |||||||||
| Net interest spread | 2.33 | % | 2.38 | % | 2.51 | % | 2.38 | % | 2.52 | % | |||||||||
| Net interest margin | 2.50 | % | 2.53 | % | 2.67 | % | 2.54 | % | 2.68 | % | |||||||||
| Average interest-earning assets to average interest-bearing liabilities | 117.07 | % | 115.62 | % | 116.78 | % | 116.55 | % | 116.85 | % | |||||||||
| Non-interest expense to average assets | 1.41 | % | 1.41 | % | 2.01 | % | 1.37 | % | 1.51 | % | |||||||||
| Efficiency ratio | 55.63 | % | 55.29 | % | 74.58 | % | 53.24 | % | 55.48 | % | |||||||||
| Loan-to-deposit ratio at end of period | 127.22 | % | 136.78 | % | 128.33 | % | 127.22 | % | 128.33 | % | |||||||||
| Effective tax rate | 50.03 | % | 35.19 | % | 92.33 | % | 41.53 | % | 45.67 | % | |||||||||
| Average Balance Data: | |||||||||||||||||||
| Average assets | $ | 6,400,719 | $ | 6,290,568 | $ | 5,885,051 | $ | 6,211,645 | $ | 5,554,768 | |||||||||
| Average interest-earning assets | 6,203,511 | 6,084,253 | 5,686,894 | 6,007,562 | 5,351,010 | ||||||||||||||
| Average loans | 5,949,955 | 5,930,165 | 5,562,394 | 5,843,409 | 5,212,729 | ||||||||||||||
| Average deposits | 4,351,863 | 4,355,770 | 4,281,627 | 4,417,287 | 3,799,437 | ||||||||||||||
| Average common equity | 592,762 | 582,545 | 560,434 | 580,430 | 541,247 | ||||||||||||||
| Average tangible common equity (1) | 537,124 | 526,907 | 504,796 | 524,792 | 485,610 | ||||||||||||||
| Asset Quality Summary: | |||||||||||||||||||
| Non-performing loans (excluding loans held for sale) | $ | 533 | $ | 806 | $ | 4,237 | $ | 533 | $ | 4,237 | |||||||||
| Non-performing assets (2) | 533 | 806 | 5,507 | 533 | 5,507 | ||||||||||||||
| Net charge-offs (recoveries) | (26 | ) | 1 | 43 | 23 | 97 | |||||||||||||
| Non-performing loans/ Total loans | 0.01 | % | 0.01 | % | 0.08 | % | 0.01 | % | 0.08 | % | |||||||||
| Non-performing assets/ Total assets | 0.01 | % | 0.01 | % | 0.09 | % | 0.01 | % | 0.09 | % | |||||||||
| Allowance for loan loss/ Total loans | 0.38 | % | 0.37 | % | 0.36 | % | 0.38 | % | 0.36 | % | |||||||||
| Allowance for loan loss/ Non-performing loans | 3946.15 | % | 2730.40 | % | 484.68 | % | 3946.15 | % | 484.68 | % | |||||||||
| Loans delinquent 30 to 89 days at period end | $ | 37 | $ | 84 | $ | 1,920 | $ | 37 | $ | 1,920 | |||||||||
| Capital Ratios - Consolidated: | |||||||||||||||||||
| Tangible common equity to tangible assets (1) | 8.55 | % | 8.30 | % | 8.58 | % | 8.55 | % | 8.58 | % | |||||||||
| Tier 1 common equity ratio | 11.74 | 10.65 | 11.44 | 11.74 | 11.44 | ||||||||||||||
| Tier 1 risk-based capital ratio | 11.74 | 10.65 | 12.95 | 11.74 | 12.95 | ||||||||||||||
| Total risk-based capital ratio | 14.61 | 13.38 | 13.41 | 14.61 | 13.41 | ||||||||||||||
| Tier 1 leverage ratio | 8.61 | 8.58 | 10.03 | 8.61 | 10.03 | ||||||||||||||
| Capital Ratios - Bank Only: | |||||||||||||||||||
| Tier 1 common equity ratio | 12.73 | % | 11.47 | % | 11.60 | % | 12.73 | % | 11.60 | % | |||||||||
| Tier 1 risk-based capital ratio | 12.73 | 11.47 | 11.60 | 12.73 | 11.60 | ||||||||||||||
| Total risk-based capital ratio | 13.13 | 11.91 | 12.05 | 13.13 | 12.05 | ||||||||||||||
| Tier 1 leverage ratio | 9.32 | 9.23 | 8.95 | 9.32 | 8.95 | ||||||||||||||
| (1) See "Non-GAAP Reconciliation" table for reconciliation of tangible common equity and tangible assets. | |||||||||||||||||||
| (2) Amount comprised of total non-accrual loans, other real estate owned, and the recorded balance of pooled bank trust preferred security investments that were deemed to meet the criteria of a non-performing asset. | |||||||||||||||||||
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME | |||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| December 31, 2017 | September 30, 2017 | December 31, 2016 | |||||||||||||||||||||
| 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 | $ | 5,823,794 | $ | 51,254 | 3.52 | % | $ | 5,842,921 | $ | 51,621 | 3.53 | % | $ | 5,560,078 | $ | 50,757 | 3.65 | % | |||||
| Commercial and industrial loans | 125,095 | 1,514 | 4.84 | 86,014 | 1,043 | 4.85 | 1,275 | 21 | 6.59 | ||||||||||||||
| Other loans | 1,066 | 20 | 7.50 | 1,230 | 19 | 6.18 | 1,041 | 18 | 6.92 | ||||||||||||||
| Mortgage-backed securities | 84,942 | 487 | 2.29 | 5,631 | 27 | 1.92 | 3,593 | 14 | 1.56 | ||||||||||||||
| Investment securities | 6,500 | 115 | 7.08 | 9,304 | 108 | 4.64 | 16,821 | 313 | 7.44 | ||||||||||||||
| Other short-term investments | 162,114 | 1,204 | 2.97 | 139,153 | 811 | 2.33 | 104,086 | 667 | 2.56 | ||||||||||||||
| Total interest-earning assets | 6,203,511 | 54,594 | 3.52 | % | 6,084,253 | $ | 53,629 | 3.53 | % | 5,686,894 | $ | 51,790 | 3.64 | % | |||||||||
| Non-interest-earning assets | 197,208 | 206,315 | 198,157 | ||||||||||||||||||||
| Total assets | $ | 6,400,719 | $ | 6,290,568 | $ | 5,885,051 | |||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing checking accounts | $ | 117,468 | $ | 56 | 0.19 | % | $ | 110,384 | $ | 58 | 0.21 | % | $ | 100,134 | $ | 58 | 0.23 | % | |||||
| Money market accounts | 2,491,423 | 5,986 | 0.95 | 2,643,537 | 5,961 | 0.89 | 2,476,810 | 5,348 | 0.86 | ||||||||||||||
| Savings accounts | 358,859 | 51 | 0.06 | 362,423 | 45 | 0.05 | 365,350 | 45 | 0.05 | ||||||||||||||
| Certificates of deposit | 1,077,376 | 3,874 | 1.43 | 932,208 | 3,344 | 1.42 | 1,064,241 | 3,897 | 1.46 | ||||||||||||||
| Total interest-bearing deposits | 4,045,126 | 9,967 | 0.98 | 4,048,552 | 9,408 | 0.92 | 4,006,535 | 9,348 | 0.93 | ||||||||||||||
| Borrowed Funds | 1,253,860 | 5,895 | 1.87 | 1,213,786 | 5,763 | 1.88 | 863,131 | 4,544 | 2.09 | ||||||||||||||
| Total interest-bearing liabilities | 5,298,986 | 15,862 | 1.19 | % | 5,262,338 | $ | 15,171 | 1.14 | % | 4,869,666 | $ | 13,892 | 1.13 | % | |||||||||
| Non-interest-bearing checking accounts | 306,737 | 307,218 | 275,092 | ||||||||||||||||||||
| Other non-interest-bearing liabilities | 202,234 | 138,467 | 179,859 | ||||||||||||||||||||
| Total liabilities | 5,807,957 | 5,708,023 | 5,324,617 | ||||||||||||||||||||
| Stockholders' equity | 592,762 | 582,545 | 560,434 | ||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 6,400,719 | $ | 6,290,568 | $ | 5,885,051 | |||||||||||||||||
| Net interest income | $ | 38,732 | $ | 38,458 | $ | 37,898 | |||||||||||||||||
| Net interest spread | 2.33 | % | 2.38 | % | 2.51 | % | |||||||||||||||||
| Net interest-earning assets | $ | 904,525 | $ | 821,915 | $ | 817,228 | |||||||||||||||||
| Net interest margin | 2.50 | % | 2.53 | % | 2.67 | % | |||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 117.07 | % | 115.62 | % | 116.78 | % | |||||||||||||||||
| Deposits (including non-interest bearing checking accounts) | $ | 4,351,863 | $ | 9,967 | 0.91 | % | $ | 4,355,770 | 9,408 | 0.86 | % | $ | 4,281,627 | $ | 9,348 | 0.87 | % | ||||||
| SUPPLEMENTAL INFORMATION | |||||||||||||||||||||||
| Loan prepayment and late payment fee income | $ | 1,250 | $ | 1,371 | $ | 2,669 | |||||||||||||||||
| Real estate loans (excluding net prepayment and late payment fee income) | 3.43 | % | 3.44 | % | 3.46 | % | |||||||||||||||||
| Interest-earning assets (excluding net prepayment and late payment fee income) | 3.44 | % | 3.44 | % | 3.46 | % | |||||||||||||||||
| Net Interest income (excluding net prepayment and late payment fee income) | $ | 37,482 | $ | 37,087 | $ | 35,229 | |||||||||||||||||
| Net Interest margin (excluding net prepayment and late payment fee income) | 2.42 | % | 2.44 | % | 2.48 | % | |||||||||||||||||
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | ||||||||||||||
| UNAUDITED SCHEDULE OF LOAN COMPOSITION AND WEIGHTED AVERAGE RATES ("WAR") (1) | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| At December 31, 2017 | At September 30, 2017 | At December 31, 2016 | ||||||||||||
| Balance | WAR | Balance | WAR | Balance | WAR | |||||||||
| Loan balances at period end: | ||||||||||||||
| One-to-four family residential, including condominium and cooperative apartment | $ | 63,095 | 4.33 | % | $ | 66,519 | 4.31 | % | $ | 74,022 | 4.28 | % | ||
| Multifamily residential and residential mixed use (2)(3) | 4,381,180 | 3.40 | 4,787,291 | 3.39 | 4,600,526 | 3.37 | ||||||||
| Commercial and commercial mixed use real estate | 1,010,603 | 3.95 | 1,003,642 | 3.92 | 958,459 | 3.91 | ||||||||
| Acquisition, development, and construction ("ADC") | 9,189 | 5.59 | 9,115 | 5.34 | - | - | ||||||||
| Total real estate loans | 5,464,067 | 3.51 | 5,866,567 | 3.50 | 5,633,007 | 3.48 | ||||||||
| Commercial and industrial ("C&I") | 136,671 | 4.82 | % | $ | 111,099 | 4.68 | % | $ | 2,058 | 6.60 | % | |||
| (1) Weighted average rate is calculated by aggregating interest based on the current loan rate from each loan in the category, divided by the total amount of loans in the category. | ||||||||||||||
| (2) Includes 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. | ||||||||||||||
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||||||||||
| UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs") | |||||||||||
| (Dollars in thousands) | |||||||||||
| At December 31, | At September 30, | At December 31, | |||||||||
| Non-Performing Loans | 2017 | 2017 | 2016 | ||||||||
| One-to-four family residential, including condominium and cooperative apartment | $ | 436 | $ | 708 | $ | 1,012 | |||||
| Multifamily residential and residential mixed use (1)(2) | - | - | 2,675 | ||||||||
| Commercial mixed use real estate (2) | 93 | 96 | 549 | ||||||||
| Other | 4 | 2 | 1 | ||||||||
| Total Non-Performing Loans (3) | $ | 533 | $ | 806 | $ | 4,237 | |||||
| Other Non-Performing Assets | |||||||||||
| Pooled bank trust preferred securities (4) | - | - | 1,270 | ||||||||
| Total Non-Performing Assets | $ | 533 | $ | 806 | $ | 5,507 | |||||
| Performing Loans | |||||||||||
| One- to four-family and cooperative/condominium apartment | 22 | 395 | 407 | ||||||||
| Multifamily residential and mixed use residential real estate (1)(2) | 619 | 629 | 658 | ||||||||
| Mixed use commercial real estate (2) | 4,174 | 4,197 | 4,261 | ||||||||
| Commercial real estate | 3,296 | 3,313 | 3,363 | ||||||||
| Total Performing TDRs | $ | 8,111 | $ | 8,534 | $ | 8,689 | |||||
| (1) Includes loans underlying 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. | |||||||||||
| (3) There were no non-accruing TDRs for the periods indicated. | |||||||||||
| (4) As of the date 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 (TEXAS RATIO) | |||||||||||
| (Dollars in thousands) | |||||||||||
| At December 31, | At September 30, | At December 31, | |||||||||
| 2017 | 2017 | 2016 | |||||||||
| Total Non-Performing Assets | $ | 533 | $ | 806 | $ | 5,507 | |||||
| Loans 90 days or more past due on accrual status (5) | 19,935 | 3,466 | 3,070 | ||||||||
| TOTAL PROBLEM ASSETS | $ | 20,468 | $ | 4,272 | $ | 8,577 | |||||
| Tangible common equity - Bank only (6) | $ | 587,622 | $ | 570,286 | $ | 515,511 | |||||
| Allowance for loan losses and reserves for contingent liabilities | 21,058 | 22,032 | 20,561 | ||||||||
| TANGIBLE COMMON EQUITY PLUS RESERVES | $ | 608,680 | $ | 592,318 | $ | 536,072 | |||||
| TEXAS RATIO (PROBLEM ASSETS AS A PERCENTAGE OF | |||||||||||
| TANGIBLE COMMON EQUITY AND RESERVES) | 3.4 | % | 0.7 | % | 1.6 | % | |||||
| (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. | |||||||||||
| (6) See "Non-GAAP Reconciliation" table for reconciliation of tangible common equity and tangible assets. | |||||||||||
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||||||||||||||||||
| NON-GAAP RECONCILIATION | |||||||||||||||||||
| (Dollars in thousands except per share amounts) | |||||||||||||||||||
| At or For the Three Months Ended | At or For the Twelve Months Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| Reconciliation of Reported and Adjusted ("non-GAAP") Net Income: | |||||||||||||||||||
| Reported net income | $ | 15,423 | $ | 13,313 | $ | 732 | $ | 51,882 | $ | 72,514 | |||||||||
| Adjustments to Net Income (1): | |||||||||||||||||||
| Add: After-tax expense associated with the prepayment of the ESOP Share Acquisition Loan (2) | - | - | 11,319 | - | 11,319 | ||||||||||||||
| Add: Loss from extinguishment of debt | - | 698 | - | 698 | - | ||||||||||||||
| Add: De-conversion costs | - | 946 | - | 946 | - | ||||||||||||||
| Less: Gain on sale of securities | - | (1,430 | ) | - | (1,430 | ) | - | ||||||||||||
| Less: After tax gain on the sale of real estate | (5,724 | ) | - | - | (5,724 | ) | (37,483 | ) | |||||||||||
| Tax adjustment | 3,135 | (985 | ) | - | 2,150 | - | |||||||||||||
| Adjusted ("non-GAAP") net income | $ | 12,834 | $ | 12,542 | $ | 12,051 | $ | 48,522 | $ | 46,350 | |||||||||
| Adjusted Ratios (Based upon "non-GAAP Net Income" as calculated above): | |||||||||||||||||||
| Adjusted EPS (Diluted) | $ | 0.34 | $ | 0.33 | $ | 0.02 | $ | 1.29 | $ | 1.26 | |||||||||
| Adjusted return on average assets | 0.80 | % | 0.80 | % | 0.82 | % | 0.78 | % | 0.83 | % | |||||||||
| Adjusted return on average common equity | 8.66 | % | 8.61 | % | 8.60 | % | 8.36 | % | 8.56 | % | |||||||||
| Adjusted return on average tangible common equity | 9.56 | % | 9.52 | % | 9.55 | % | 9.25 | % | 9.54 | % | |||||||||
| Adjusted net interest spread | 2.33 | % | 2.38 | % | 2.51 | % | 2.38 | % | 2.52 | % | |||||||||
| Adjusted net interest margin | 2.50 | % | 2.53 | % | 2.67 | % | 2.54 | % | 2.68 | % | |||||||||
| Adjusted non-interest expense to average assets | 1.41 | % | 1.22 | % | 1.25 | % | 1.32 | % | 1.31 | % | |||||||||
| Adjusted efficiency ratio | 55.63 | % | 47.82 | % | 46.10 | % | 51.37 | % | 47.98 | % | |||||||||
| Reconciliation of Tangible Assets: | |||||||||||||||||||
| Total assets | $ | 6,403,460 | $ | 6,444,429 | $ | 6,005,430 | $ | 6,403,460 | $ | 6,005,430 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 55,638 | 55,638 | 55,638 | 55,638 | 55,638 | ||||||||||||||
| Tangible assets | 6,347,822 | 6,388,791 | 5,949,792 | 6,347,822 | 5,949,792 | ||||||||||||||
| Reconciliation of Tangible Common Equity - Consolidated: | |||||||||||||||||||
| Total common equity | $ | 598,567 | $ | 586,037 | $ | 565,868 | $ | 598,567 | $ | 565,868 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 55,638 | 55,638 | 55,638 | 55,638 | 55,638 | ||||||||||||||
| Tangible common equity | 542,929 | 530,399 | 510,230 | 542,929 | 510,230 | ||||||||||||||
| Reconciliation of Tangible Common Equity - Bank only: | |||||||||||||||||||
| Total common equity | $ | 643,260 | $ | 625,924 | $ | 571,150 | $ | 643,260 | $ | 571,150 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 55,638 | 55,638 | 55,638 | 55,638 | 55,638 | ||||||||||||||
| Tangible common equity | 587,622 | 570,286 | 515,512 | 587,622 | 515,512 | ||||||||||||||
| (1) Adjustments to net income are taxed at the company's statutory tax rate of approximately 45%, unless otherwise noted. | |||||||||||||||||||
| (2) The expense for the prepayment of the ESOP Share Acquisition Loan is a non-taxable transaction | |||||||||||||||||||