-- Real estate loan originations were $164.9 million at an average rate
of 6.56%, compared to $111.0 million at an average interest rate of 6.59%
during the quarter ended June 30, 2007.
-- Real estate loans in the pipeline approximated $148.6 million at
quarter-end, including commitments for sale to Fannie Mae of $15.1 million.
-- The annualized loan amortization rate was 11%, compared to 10% during
the previous quarter. Prepayment fee income was $727,000, compared to
$934,000 in the June 2007 quarter and $1.3 million in the September 2006
quarter.
-- Linked quarter average cost of deposits declined from 3.62% to 3.52%.
-- Net interest margin was 2.28%, up slightly from 2.27% sequentially.
-- The Company repurchased 742,640 shares of its common stock, compared
to 819,526 shares repurchased in the June 2007 quarter. The consolidated
tangible stockholders' equity ratio declined to 6.75% at September 30, 2007
from 7.06% at June 30, 2007. Year-to-date through September 30, 2007, the
Company has repurchased 2.0 million shares, or 5.5% of its beginning shares
outstanding, at an average price of $12.85 per share.
-- Quarterly non-interest expense increased 5% sequentially due primarily
to additional payroll expense.
OPERATING RESULTS
For the quarter ended September 30, 2007, the Company's pre-tax income,
excluding gains and losses on the sale of assets, was $8.7 million,
compared to $10.4 million in the same quarter of the previous year. The
$1.7 million decrease was due to a decline of $1.3 million in net interest
income, and an increase of $1.1 million in non-interest expense experienced
primarily in salary, benefits and other compensation, which was partially
offset by an increase of $696,000 in non-interest income due primarily to
the non-recurring $546,000 BOLI settlement, and an increase of $164,000 in
loan administration income.
Pre-tax income, excluding gains and losses on the sale of assets, was $8.6
million during the June 2007 quarter. The $79,000 increase from the June
2007 quarter to the September 2007 quarter was primarily due to an increase
of $888,000 in non-interest income (excluding gains or losses on the sale
of assets), reflecting both the non-recurring BOLI settlement and an
increase of $291,000 in loan administration fees. Partially offsetting
this increase was a decline in net interest income of $291,000 that
resulted principally from a decrease of $63.1 million in average interest
earning assets during the period, and an increase of $518,000 in
non-interest expense, due primarily to higher salary expense.
The net interest margin contracted 25 basis points to 2.28% during the
September 2007 quarter, from 2.53% during the September 2006 quarter, due
primarily to an increase of 42 basis points in the average cost of deposits
that reflected growth in deposit balances from successful promotional
activities from October 2006 through June 2007.
Excluding the effects of prepayment and late fee income, net interest
income would have decreased $47,000 and the net interest margin would have
increased 4 basis points during the quarter ended September 30, 2007
compared to the quarter ended June 30, 2007. During the three months ended
September 30, 2007, management elected to utilize a portion of its liquid
assets to fund operational needs and treasury stock repurchases. As a
result, average interest earning assets declined $63.1 million from the
June 2007 quarter to the September 2007 quarter, which led to a slight
decline in interest income during the period despite higher average yields.
The average yield on portfolio real estate loans, excluding the effects of
prepayment and late fee income, was 5.84% during the quarter ended
September 30, 2007 and 5.77% during the quarter ended June 30, 2007.
Interest rates on newly originated real estate loans averaged 6.56% during
the third quarter of 2007, compared to a weighted average rate on loans
repaid of 6.00% during the period.
Non-interest income, excluding gains or losses on the sale of assets,
totaled $3.1 million during the quarter ended September 30, 2007, up
$888,000 from the June 2007 quarter and $696,000 from the September 2006
quarter, due primarily to the aforementioned BOLI settlement and a loan
administration fee that is collected in the third quarter of each year.
The Company sold loans to Fannie Mae totaling $10.1 million, $17.0 million
and $92.3 million, recording gains of $79,000, $223,000 and $779,000 during
the quarters ended September 30, 2007, June 30, 2007 and September 30,
2006, respectively. Each of the loans sold during these periods was
designated for sale upon origination. The loans sold during the quarter
ended September 30, 2007 had a weighted average term to the earlier of
maturity or next repricing of 9.0 years.
Non-interest expense totaled $11.7 million during the quarter ended
September 30, 2007, up $1.1 million from the September 2006 quarter and
$518,000 from the June 2007 quarter. The growth in non-interest expense
from the September 2006 quarter resulted primarily from an increase of
$420,000 in salary and benefits, an additional $270,000 of compensation
expense from the grant of equity awards to certain officers and outside
directors in May 2007, and a combined increase of $240,000 in expenses
related to advertising and regulatory compliance. The increase in
non-interest expense from the June 2007 quarter resulted primarily from
additional payroll expense during the September 2007 quarter. Non-interest
expense to average assets was 1.45% in the September 2007 quarter, compared
to 1.37% for the quarters ended both September 30, 2006 and June 30, 2007.
The effective tax rate was 36.5% for the quarter ended September 30, 2007,
35.9% for the quarter ended September 30, 2006, and 35.8% for the quarter
ended June 30, 2007. The increase in the effective tax rate resulted from
an adjustment to the reserve for uncertain tax positions in accordance with
Financial Accounting Standards Board Interpretation Number 48. The
effective tax rate is expected to approximate 36.0% for the year ending
December 31, 2007.
REAL ESTATE LENDING AND CREDIT QUALITY
Real estate loan originations totaled $164.9 million during the quarter
ended September 30, 2007. The average rate on real estate loan originations
during the quarter was 6.56%, compared to 6.58% during the quarter ended
September 30, 2006 and 6.59% during the quarter ended June 30, 2007.
Offering rates on multifamily loans closed during the quarter ended
September 30, 2007 remained relatively constant while the benchmark
treasury rates declined during the period, temporarily resulting in wider
origination spreads. Those spreads narrowed in recent weeks as some of the
pricing leaders appear to be reducing offering rates on certain multifamily
residential loan products.
Real estate loan prepayments and amortization during the September 2007
quarter approximated 11% of the real estate loan portfolio on an annualized
basis, compared to 15% during the September 2006 quarter and 10% during the
June 2007 quarter.
Non-performing loans were $1.8 million at September 30, 2007, representing
only 0.06% of total loans, down from 0.11% at June 30, 2007.
DEPOSITS
Deposits decreased $121.7 million from June 30, 2007 to September 30, 2007.
Core (non-certificate) deposits declined $62.1 million and certificates of
deposit declined by $59.7 million.
The market price for consumer deposits experienced significant volatility
during the third quarter of 2007, driven by the recent liquidity crisis.
Dime used its liquidity on hand and FHLBNY Advances to maintain price
discipline during this period, managing to reduce deposit cost of funds by
10 basis points as compared to the previous quarter. This pricing
discipline resulted in a net decrease of $121.7 million in deposits during
the third quarter of 2007.
Several categories of deposit accounts, including Checking, Money Market,
and Certificates, experienced year-to-date annualized growth rates in
non-promotional balances of 7.7%, 27.8%, and 18.0%, respectively, during
the first nine months of 2007 as a result of successful retention efforts.
Mr. Palagiano commented, "The goal of our rebranding initiative and the
launch of Prime Dime Banking is to enable us to migrate promotional
deposits, upon completion of the promotional period, into non-promotional,
relationship-based retail accounts. Dime plans to continue to use
promotional deposit pricing as a cost-efficient way to attract new
households to the Bank."
Average deposits per branch approximated $99 million at September 30, 2007,
up from $92 million at September 30, 2006, and down from $105 million at
June 30, 2007. Core deposits comprised 51% of total deposits at September
30, 2007, relatively unchanged from June 30, 2007 and up from 47% at
September 30, 2006 (reflecting growth of $160.9 million in money market
accounts during the twelve months ended September 30, 2007). The
loan-to-deposit ratio was 137% at September 30, 2007, compared to 137% at
September 30, 2006 and 126% at June 30, 2007.
STOCKHOLDERS' EQUITY AND SHARE REPURCHASE PROGRAM
The Company's total stockholders' equity at September 30, 2007 was $270.0
million, or 8.18% of total assets, compared to $275.2 million, or 8.47% of
total assets, at June 30, 2007. The decline in stockholders' equity as a
percentage of assets resulted from an increase of $51.1 million in
period-end assets coupled with $9.0 million in treasury stock repurchases
during the period .
During the third quarter of 2007, the Company repurchased into treasury
742,640 shares, or 2.1%, of its common stock outstanding at June 30, 2007.
As of September 30, 2007, the Company had an additional 1,486,651 shares
remaining eligible for repurchase under its twelfth stock repurchase
program, approved in June 2007.
After outlays for dividends paid to shareholders and share repurchases, by
the end of the third quarter of 2007 the Company's tangible stockholders'
equity had declined to $219.9 million, compared to $226.4 million at June
30, 2007. The quarterly cash dividend paid in August 2007 represented a
payout ratio of 82.0% of third quarter 2007 earnings. At September 30,
2007, tangible stockholders' equity was 6.75% of tangible assets and the
tangible book value per share was $6.43.
For the quarter ended September 30, 2007, the return on average
stockholders' equity was 8.20%, the return on average tangible equity was
10.04%, and the cash return on average tangible equity was 10.98%.
OUTLOOK
At present, the overall yield on the Company's interest-earning assets is
rising. The average yield on interest-earning assets, excluding the
effects of prepayment and late fee income, rose on a linked quarter basis,
from 5.69% to 5.78%. This trend appears likely to continue, as $390
million in portfolio mortgage loans with a below current market weighted
average coupon of 5.37% contractually reprice or mature between October 1,
2007 and December 31, 2008. During the year ending December 31, 2009, an
additional $366 million in mortgage loans with a weighted average coupon of
5.38% are scheduled to reprice. These loan repricings and maturities
provide a potentially significant boost to overall portfolio yields.
The average cost of deposits declined from 3.62% during the June 30, 2007
quarter to 3.52% during the September 2007 quarter. During the remainder
of 2007, average deposit costs are expected to remain relatively stable, as
maturing accounts that are anticipated to re-price at lower rates are
expected to be offset by new promotional accounts.
Prepayment and amortization rates, which approximated 10.5% during the
first nine months of 2007, are expected to remain in the 10% to 12% range
during the remainder of 2007. At September 30, 2007, the real estate loan
commitment pipeline approximated $148.6 million, including $15.1 million of
loan commitments intended for sale to Fannie Mae. The real estate loan
pipeline had a weighted average interest rate approximating 6.2% at
September 30, 2007, lower than the loan origination rate of 6.56%
experienced during the third quarter.
We would need to see more steepness in the yield curve, mainly represented
by a reduction in short-term rates, before we would see a significant
increase in the net interest margin, and there remains a great deal of
uncertainty about Federal Open Market Committee ("FOMC") moves in the near
term. Since the Bank's interest bearing liabilities traditionally reprice
faster than its interest earning assets, further reductions in short-term
interest rates would have a meaningful positive impact on earnings.
Operating expenses are expected to approximate $11.5 million in the fourth
quarter of 2007. The Company is positioned to be opportunistic in the
purchase of its own shares should conditions warrant. Based on an outlook
of little or no change in FOMC monetary policy over the next quarter, the
Company expects fourth quarter 2007 earnings per diluted share to again be
in the range of $0.15 to $0.17.
ABOUT DIME COMMUNITY BANCSHARES
The Company (
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
September 30,
2007 December 31,
(Unaudited) 2006
------------- -------------
ASSETS:
Cash and due from banks $ 35,739 $ 26,264
Investment securities held to maturity 160 235
Investment securities available for sale 34,591 29,548
Mortgage-backed securities available for
sale 169,908 154,437
Federal funds sold and other short-term
investments 35,224 78,752
Real Estate Loans:
One-to-four family and cooperative
apartment 148,145 153,847
Multifamily and underlying cooperative 1,927,307 1,855,106
Commercial real estate 711,574 666,927
Construction and land acquisition 47,261 23,340
Unearned discounts and net deferred loan
fees 1,536 1,048
------------- -------------
Total real estate loans 2,835,823 2,700,268
------------- -------------
Other loans 2,096 2,205
Allowance for loan losses (15,374) (15,514)
------------- -------------
Total loans, net 2,822,545 2,686,959
------------- -------------
Loans held for sale - 1,200
Premises and fixed assets, net 23,625 22,886
Federal Home Loan Bank of New York capital
stock 33,629 31,295
Goodwill 55,638 55,638
Other assets 90,413 86,163
------------- -------------
TOTAL ASSETS $ 3,301,472 $ 3,173,377
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking $ 90,720 $ 95,215
NOW, Super NOW and Interest Bearing Checking 47,642 35,519
Savings 277,650 298,522
Money Market 631,478 514,607
------------- -------------
Sub-total $ 1,047,490 $ 943,863
------------- -------------
Certificates of deposit 1,026,530 1,064,669
------------- -------------
Total Due to Depositors 2,074,020 2,008,532
------------- -------------
Escrow and other deposits 72,572 46,373
Securities sold under agreements to
repurchase 155,160 120,235
Federal Home Loan Bank of New York advances 586,500 571,500
Subordinated Notes Sold 25,000 25,000
Trust Preferred Notes Payable 72,165 72,165
Other liabilities 46,007 38,941
------------- -------------
TOTAL LIABILITIES 3,031,424 2,882,746
------------- -------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 50,904,028 shares and
50,862,867 shares issued at September 30,
2007 and December 31, 2006, respectively,
and 34,218,754 shares and 36,456,354 shares
outstanding at September 30, 2007 and
December 31, 2006, respectively) 509 509
Additional paid-in capital 207,896 206,601
Retained earnings 287,253 285,420
Unallocated common stock of Employee Stock
Ownership Plan (4,222) (4,395)
Unearned common stock of Recognition and
Retention Plan (741) (3,452)
Common stock held by the Benefit Maintenance
Plan (7,941) (7,941)
Treasury stock (16,685,274 shares and
14,406,513 shares at September 30, 2007 and
December 31, 2006, respectively) (207,005) (179,011)
Accumulated other comprehensive loss, net (5,701) (7,100)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 270,048 290,631
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,301,472 $ 3,173,377
============= =============
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
September June September
30, 30, 30,
---------- ---------- ----------
2007 2007 2006
---------- ---------- ----------
Interest income:
Loans secured by real estate $ 41,420 $ 40,697 $ 39,122
Other loans 45 42 47
Mortgage-backed securities 1,588 1,435 1,666
Investment securities 374 377 454
Federal funds sold and other
short-term investments 1,474 2,793 1,384
---------- ---------- ----------
Total interest income 44,901 45,344 42,673
---------- ---------- ----------
Interest expense:
Deposits and escrow 18,919 19,576 15,019
Borrowed funds 8,604 8,099 8,948
---------- ---------- ----------
Total interest expense 27,523 27,675 23,967
---------- ---------- ----------
Net interest income 17,378 17,669 18,706
Provision for loan losses 60 60 60
---------- ---------- ----------
Net interest income after
provision for loan losses 17,318 17,609 18,646
---------- ---------- ----------
Non-interest income:
Service charges and other fees 1,609 1,282 1,507
Net gain on sales and redemptions of
assets 79 223 779
Other 1,443 882 849
---------- ---------- ----------
Total non-interest income 3,131 2,387 3,135
---------- ---------- ----------
Non-interest expense:
Compensation and benefits 6,667 6,198 6,006
Occupancy and equipment 1,566 1,512 1,504
Other 3,484 3,489 3,110
---------- ---------- ----------
Total non-interest expense 11,717 11,199 10,620
---------- ---------- ----------
Income before taxes 8,732 8,797 11,161
Income tax expense 3,188 3,152 4,002
---------- ---------- ----------
Net Income $ 5,544 $ 5,645 $ 7,159
========== ========== ==========
Earnings per Share:
Basic $ 0.17 $ 0.17 $ 0.21
========== ========== ==========
Diluted $ 0.17 $ 0.17 $ 0.20
========== ========== ==========
Average common shares outstanding for
Diluted EPS 33,106,224 34,123,887 35,028,903
For the Nine Months Ended
September September
30, 30,
---------- ----------
2007 2006
---------- ----------
Interest income:
Loans secured by real estate $ 122,367 $ 116,805
Other loans 132 141
Mortgage-backed securities 4,535 5,264
Investment securities 1,194 1,405
Federal funds sold and other
short-term investments 6,736 4,062
---------- ----------
Total interest income 134,964 127,677
---------- ----------
Interest expense:
Deposits and escrow 56,657 40,069
Borrowed funds 25,375 27,610
---------- ----------
Total interest expense 82,032 67,679
---------- ----------
Net interest income 52,932 59,998
Provision for loan losses 180 180
---------- ----------
Net interest income after
provision for loan losses 52,752 59,818
---------- ----------
Non-interest income:
Service charges and other fees 4,247 4,461
Net gain on sales and redemptions of
assets 546 2,973
Other 3,216 2,554
---------- ----------
Total non-interest income 8,009 9,988
---------- ----------
Non-interest expense:
Compensation and benefits 19,316 17,678
Occupancy and equipment 4,572 4,295
Other 10,276 9,623
---------- ----------
Total non-interest expense 34,164 31,596
---------- ----------
Income before taxes 26,597 38,210
Income tax expense 9,591 13,583
---------- ----------
Net Income $ 17,006 $ 24,627
========== ==========
Earnings per Share:
Basic $ 0.50 $ 0.70
========== ==========
Diluted $ 0.50 $ 0.70
========== ==========
Average common shares outstanding for
Diluted EPS 33,946,319 35,200,367
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
Core Earnings and Core Cash Earnings Reconciliations
(Dollars In thousands except per share amounts)
Core earnings and related data are "Non-GAAP Disclosures." These
disclosures present information which management considers useful to the
readers of this report since they present a measure of the results of the
Company's ongoing operations (exclusive of significant non-recurring items
such as gains or losses on sales of investment or mortgage-backed
securities) during the period.
Core cash earnings and related data are also "Non-GAAP Disclosures." These
disclosures present information which management considers useful to the
readers of this report since they present a measure of the tangible equity
generated from operations during each period presented. Tangible
stockholders' equity is derived from stockholders' equity, with various
adjustment items that are based upon standards of the Company's primary
regulator, the Office of Thrift Supervision. Tangible stockholders'
equity generation is a significant financial measure since banks are
subject to regulatory requirements involving the maintenance of minimum
tangible capital levels. A reconciliation between GAAP and tangible
stockholders' equity can be found in the Company's audited financial
statements for the year ended December 31, 2006.
The following tables present a reconciliation of GAAP net income and both
core earnings and core cash earnings, as well as financial performance
ratios determined based upon core earnings and core cash earnings, for each
of the periods presented:
For the Three Months Ended
-------------------------------------
September June September
30, 30, 30,
2007 2007 2006
----------- ----------- -----------
Net income as reported $ 5,544 $ 5,645 $ 7,159
Pre-tax net (gain) loss on sale of
securities and other assets - -
Pre-tax income from life insurance
contract settlement (546)
Pre-tax income from borrowings
restructuring - - (764)
Tax effect of adjustments - - 271
----------- ----------- -----------
Core Earnings $ 4,998 $ 5,645 $ 6,666
----------- ----------- -----------
Cash Earnings Additions :
Non-cash stock benefit plan expense 519 466 342
----------- ----------- -----------
Core Cash Earnings $ 5,517 $ 6,111 $ 7,008
----------- ----------- -----------
Performance Ratios (Based upon Core
Cash Earnings):
Core Cash EPS (Diluted) $ 0.17 $ 0.18 $ 0.20
Core Cash Return on Average Assets 0.68% 0.75% 0.90%
Core Cash Return on Average Tangible
Stockholders' Equity 9.99% 10.58% 11.55%
For the Nine Months Ended
-------------------------
September September
30, 30,
2007 2006
----------- -----------
Net income as reported $ 17,006 $ 24,627
Pre-tax net (gain) loss on sale of
securities and other assets - (1,542)
Pre-tax income from life insurance
contract settlement (546)
Pre-tax income from borrowings
restructuring - (807)
Tax effect of adjustments - 839
----------- -----------
Core Earnings $ 16,460 $ 23,117
----------- -----------
Cash Earnings Additions :
Non-cash stock benefit plan expense 1,314 1,067
----------- -----------
Core Cash Earnings $ 17,774 $ 24,184
----------- -----------
Performance Ratios (Based upon Core
Cash Earnings):
Core Cash EPS (Diluted) $ 0.52 $ 0.69
Core Cash Return on Average Assets 0.73% 1.03%
Core Cash Return on Average Tangible
Stockholders' Equity 10.30% 13.38%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------
September 30, June 30, September 30,
2007 2007 2006
----------- ----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.17 $ 0.17 $ 0.20
Return on Average Assets 0.69% 0.69% 0.92%
Return on Average Stockholders'
Equity 8.20% 8.06% 9.73%
Return on Average Tangible
Stockholders' Equity 10.04% 9.77% 11.80%
Net Interest Spread 1.92% 1.81% 2.16%
Net Interest Margin 2.28% 2.27% 2.53%
Non-interest Expense to Average
Assets 1.45% 1.37% 1.37%
Efficiency Ratio 57.35% 56.47% 50.42%
Effective Tax Rate 36.51% 35.83% 35.86%
Performance Ratios (Based upon Core
Earnings):
Core EPS (Diluted) $ 0.15 $ 0.17 $ 0.19
Core Return on Average Assets 0.62% 0.69% 0.86%
Core Return on Average Stockholders'
Equity 7.39% 8.06% 9.06%
Core Return on Average Tangible
Stockholders' Equity 9.05% 9.77% 10.99%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 7.89 $ 7.81 $ 8.07
Tangible Book Value Per Share 6.43 6.42 6.64
Average Balance Data:
Average Assets $ 3,224,578 $ 3,267,736 $ 3,107,482
Average Interest Earning Assets 3,054,499 3,117,578 2,960,468
Average Stockholders' Equity 270,350 280,282 294,305
Average Tangible Stockholders'
Equity 220,915 231,127 242,658
Average Loans 2,786,862 2,752,200 2,656,014
Average Deposits 2,130,472 2,166,907 1,920,069
Asset Quality Summary:
Net charge-offs (recoveries) $ 7 $ (1) $ 0
Nonperforming Loans 1,792 2,937 2,889
Nonperforming Loans/Total Loans 0.06% 0.11% 0.11%
Nonperforming Assets/Total Assets 0.05% 0.09% 0.09%
Allowance for Loan Loss/Total Loans 0.54% 0.56% 0.60%
Allowance for Loan
Loss/Nonperforming Loans 857.92% 524.51% 552.30%
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period
end 6.75% 7.06% 7.88%
Tangible Capital Ratio (Bank Only) 8.75% 9.13% 9.64%
Leverage Capital Ratio (Bank Only) 8.75% 9.13% 9.64%
Risk Based Capital Ratio (Bank Only) 12.65% 12.83% 13.61%
For the Nine Months Ended
--------------------------
September 30, September 30,
2007 2006
----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.50 $ 0.70
Return on Average Assets 0.70% 1.05%
Return on Average Stockholders'
Equity 8.13% 11.21%
Return on Average Tangible
Stockholders' Equity 9.86% 13.63%
Net Interest Spread 1.86% 2.29%
Net Interest Margin 2.29% 2.69%
Non-interest Expense to Average
Assets 1.41% 1.35%
Efficiency Ratio 56.57% 47.15%
Effective Tax Rate 36.06% 35.55%
Performance Ratios (Based upon Core
Earnings):
Core EPS (Diluted) $ 0.48 $ 0.66
Core Return on Average Assets 0.68% 0.99%
Core Return on Average Stockholders'
Equity 7.87% 10.53%
Core Return on Average Tangible
Stockholders' Equity 9.54% 12.79%
Book Value and Tangible Book Value
Per Share:
Stated Book Value Per Share $ 7.89 $ 8.07
Tangible Book Value Per Share 6.43 6.64
Average Balance Data:
Average Assets $ 3,235,546 $ 3,120,371
Average Interest Earning Assets 3,080,412 2,973,272
Average Stockholders' Equity 279,014 292,805
Average Tangible Stockholders'
Equity 230,057 240,967
Average Loans 2,749,274 2,647,969
Average Deposits 2,126,957 1,920,958
Asset Quality Summary:
Net charge-offs (recoveries) $ 4 $ 19
Nonperforming Loans 1,792 2,889
Nonperforming Loans/Total Loans 0.06% 0.11%
Nonperforming Assets/Total Assets 0.05% 0.09%
Allowance for Loan Loss/Total Loans 0.54% 0.60%
Allowance for Loan
Loss/Nonperforming Loans 857.92% 552.30%
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period
end 6.75% 7.88%
Tangible Capital Ratio (Bank Only) 8.75% 9.64%
Leverage Capital Ratio (Bank Only) 8.75% 9.64%
Risk Based Capital Ratio (Bank Only) 12.65% 13.61%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
-----------------------------------
September 30, 2007
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------------------------------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real estate loans $ 2,785,057 $ 41,420 5.95%
Other loans 1,805 45 9.97
Mortgage-backed securities 153,738 1,588 4.13
Investment securities 22,921 374 6.53
Other short-term investments 90,978 1,474 6.48
----------- ---------- ----------
Total interest earning assets 3,054,499 $ 44,901 5.88%
----------- ----------
Non-interest earning assets 170,079
-----------
Total assets $ 3,224,578
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super NOW and Interest Bearing
Checking $ 45,609 $ 220 1.91%
Money Market accounts 654,192 6,348 3.85
Savings accounts 284,366 388 0.54
Certificates of deposit 1,053,972 11,963 4.50
----------- ---------- ----------
Total interest bearing
deposits 2,038,139 18,919 3.68
Borrowed Funds 717,926 8,604 4.75
----------- ---------- ----------
Total interest-bearing
liabilities 2,756,065 27,523 3.96%
----------- ----------
Non-interest bearing checking
accounts 92,333
Other non-interest-bearing
liabilities 105,830
-----------
Total liabilities 2,954,228
Stockholders' equity 270,350
-----------
Total liabilities and stockholders'
equity $ 3,224,578
===========
Net interest income $ 17,378
==========
Net interest spread 1.92%
==========
Net interest-earning assets $ 298,434
===========
Net interest margin 2.28%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 110.83%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,130,472 $ 18,919 3.52%
Interest earning assets (excluding
prepayment fees and late charges) 5.78%
For the Three Months Ended
-----------------------------------
June 30, 2007
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------------------------------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real estate loans $ 2,750,429 $ 40,697 5.92%
Other loans 1,771 42 9.49
Mortgage-backed securities 146,181 1,435 3.93
Investment securities 25,534 377 5.91
Other short-term investments 193,663 2,793 5.77
----------- ---------- ----------
Total interest earning assets 3,117,578 $ 45,344 5.82%
----------- ----------
Non-interest earning assets 150,158
-----------
Total assets $ 3,267,736
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super NOW and Interest Bearing
Checking $ 42,705 $ 186 1.75%
Money Market accounts 636,893 6,103 3.84
Savings accounts 293,759 449 0.61
Certificates of deposit 1,097,137 12,838 4.69
----------- ---------- ----------
Total interest bearing
deposits 2,070,494 19,576 3.79
Borrowed Funds 698,765 8,099 4.65
----------- ---------- ----------
Total interest-bearing
liabilities 2,769,259 27,675 4.01%
----------- ----------
Non-interest bearing checking
accounts 96,413
Other non-interest-bearing
liabilities 121,782
-----------
Total liabilities 2,987,454
Stockholders' equity 280,282
-----------
Total liabilities and stockholders'
equity $ 3,267,736
===========
Net interest income $ 17,669
==========
Net interest spread 1.81%
==========
Net interest-earning assets $ 348,319
===========
Net interest margin 2.27%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 112.58%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,166,907 $ 19,576 3.62%
Interest earning assets (excluding
prepayment fees and late charges) 5.69%
For the Three Months Ended
-----------------------------------
September 30, 2006
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------------------------------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real estate loans $ 2,654,055 $ 39,122 5.90%
Other loans 1,959 47 9.60
Mortgage-backed securities 172,116 1,666 3.87
Investment securities 31,406 454 5.78
Other short-term investments 100,932 1,384 5.48
----------- ---------- ----------
Total interest earning assets 2,960,468 $ 42,673 5.77%
----------- ----------
Non-interest earning assets 147,014
-----------
Total assets $ 3,107,482
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super NOW and Interest Bearing
Checking $ 33,814 $ 85 1.00%
Money Market accounts 455,629 3,228 2.81
Savings accounts 312,891 493 0.63
Certificates of deposit 1,023,738 11,213 4.35
----------- ---------- ----------
Total interest bearing
deposits 1,826,072 15,019 3.26
Borrowed Funds 808,278 8,948 4.39
----------- ---------- ----------
Total interest-bearing
liabilities 2,634,350 23,967 3.61%
----------- ----------
Non-interest bearing checking
accounts 93,989
Other non-interest-bearing
liabilities 84,838
-----------
Total liabilities 2,813,177
Stockholders' equity 294,305
-----------
Total liabilities and stockholders'
equity $ 3,107,482
===========
Net interest income $ 18,706
==========
Net interest spread 2.16%
==========
Net interest-earning assets $ 326,118
===========
Net interest margin 2.53%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 112.38%
==========
Deposits (including non-interest
bearing checking accounts) $ 1,920,061 $ 15,019 3.10%
Interest earning assets (excluding
prepayment fees and late charges) 5.60%
Contact Information: Contact: Kenneth Ceonzo Director of Investor Relations 718-782-6200 extension 8279