-- Total assets increased by $327.8 million, or 10.3%.
-- Total deposits increased by $171.5 million, or 8.5%.
-- Net interest margin declined 31 basis points.
-- Real estate loan originations totaled $574.5 million, with an average
interest rate of 6.38%.
-- The real estate loan portfolio grew 6.4%.
-- Loans sold in the secondary market totaled $77.6 million, with a
weighted average term to the earlier of maturity or next repricing of 9.1
years.
-- The Bank's credit profile remained outstanding, with non-performing
loans approximating 0.10% of total loans.
-- The Company repurchased 2,298,726 shares into treasury during the
year, or 6.3% of beginning shares outstanding, at an average price of
$12.90 per share.
-- The Company remained well capitalized, with the tangible equity ratio
standing at 6.29% at year-end.
Fourth Quarter 2007 Highlights
-- Real estate loan originations were $175.3 million at an average rate
of 6.10%, compared to $164.9 million at an average interest rate of 6.56%
during the quarter ended September 30, 2007.
-- The annualized loan amortization rate was 15%, compared to 11% during
the previous quarter. Prepayment fee income was $1.2 million, compared to
$727,000 in the September 2007 quarter and $561,000 in the December 2006
quarter.
-- Linked quarter average cost of deposits increased slightly from 3.52%
to 3.55%.
-- Net interest margin was 2.27%, a slight decline from the previous
quarter.
-- The Company repurchased 311,102 shares of its common stock, compared
to 742,640 shares repurchased in the September 2007 quarter.
-- Quarterly non-interest expense decreased 3% sequentially on
compensation expense; 3rd quarter compensation expense was slightly higher
due to a seasonal adjustment.
OPERATING RESULTS
For the quarter ended December 31, 2007, the Company's pre-tax income,
excluding gains and losses on the sale of assets, was $8.9 million,
compared to $9.4 million in the same quarter of the previous year. The
$460,000 decrease was due to an increase of $958,000 in non-interest
expense and a decline of $110,000 in non-interest income, which were
partially offset by an increase of $608,000 in net interest income.
Excluding the effects of prepayment and late fee income, net interest
income would have remained constant from the December 2006 quarter and the
net interest margin would have decreased 14 basis points during the quarter
ended December 31, 2007 compared to the quarter ended December 31, 2006 due
primarily to an increase of 20 basis points in the average cost of
deposits. The increase in deposit costs reflected both growth in deposit
balances related to the volume of promotional activities during 2007, as
well as increased competition experienced from lending conduits that sought
bank deposits for funding when their sources of short-term wholesale
financing became unavailable.
Pre-tax income, excluding gains and losses on the sale of loans, was $8.7
million during the September 2007 quarter. The $237,000 increase from the
September 2007 quarter to the December 2007 quarter resulted from an
increase of $702,000 in net interest income and a decline of $379,000 in
non-interest expense, which were partially offset by a decline of $844,000
in non-interest income (excluding gains or losses on the sale of assets).
The majority of the increase in net interest income from the September 2007
quarter to the December 2007 quarter resulted from increased prepayment fee
and late charge income. Excluding the effects of prepayment fee and late
charge income, net interest income would have increased $184,000 and the
net interest margin would have declined 7 basis points from the September
2007 quarter to the December 2007 quarter. This decline resulted from an
increase of 6 basis points in the average cost of interest bearing
liabilities, reflecting increases in both higher-cost borrowing and
promotional deposit balances, coupled with a decline in the yield on
interest earning assets reflecting reductions in interest rates during the
last six months of 2007.
The average yield on portfolio real estate loans, excluding the effects of
prepayment and late fee income, was 5.82% during the quarter ended December
31, 2007, compared to 5.72% during the quarter ended December 31, 2006 and
5.84% during the quarter ended September 30, 2007. Interest rates on newly
originated real estate loans averaged 6.10% during the fourth quarter of
2007, compared to a weighted average rate on loans repaid of 5.75% during
the period.
Non-interest income, excluding gains or losses on the sale of loans,
totaled $2.2 million during the quarter ended December 31, 2007, down
$844,000 from the September 2007 quarter, and $110,000 from the December
2006 quarter. The reduction in non-interest income from the September 2007
quarter resulted primarily from a non-recurring $546,000 BOLI benefit
payment received during the September 2007 quarter, along with a $212,000
reduction in a loan administration fees, due to seasonality. The net
decline of $110,000 from the December 2006 quarter resulted from minor
decreases in several loan and deposit fee categories.
The Company executed third-party loan sales totaling $30.4 million, $10.1
million and $5.0 million, recording gains of $204,000, $79,000 and $84,000,
during the quarters ended December 31, 2007, September 30, 2007 and
December 31, 2006, respectively. The loans sold during the quarter ended
December 31, 2007 had a weighted average term to the earlier of maturity or
next repricing of 6.6 years.
Non-interest expense totaled $11.3 million during the quarter ended
December 31, 2007, up $958,000 from the December 2006 quarter and down
$379,000 from the September 2007 quarter. The growth in non-interest
expense from the December 2006 quarter resulted from several items,
including a $239,000 charge for the early termination of leased equipment
and $236,000 in expense associated with equity awards granted during 2007.
The decline in non-interest expense from the September 2007 quarter
reflected a reduction of $566,000 in salaries and benefits. Non-interest
expense to average assets was 1.36% in the December 2007 quarter, compared
to 1.32% for the quarter ended December 31, 2006 and 1.45% for the quarter
ended September 30, 2007.
The effective tax rate was 40.2% for the quarter ended December 31, 2007
and 37.1% for the year ended December 31, 2007. The effective tax rate is
expected to approximate 37% for the year ending December 31, 2008. The
increase in effective tax rate during the fourth quarter of 2007 related to
the dissolution of a subsidiary.
REAL ESTATE LENDING AND CREDIT QUALITY
Real estate loan originations totaled $175.3 million during the quarter
ended December 31, 2007. The average rate on real estate loan originations
during the quarter ended December 31, 2007 was 6.10%, compared to 6.50%
during the quarter ended December 31, 2006 and 6.56% during the quarter
ended September 30, 2007. Offering rates on multifamily loans closed
during the quarter ended December 31, 2007 declined from the previous
quarter, however, this decline was less than the decline in their benchmark
treasury rates during the same period, as origination spreads to their
benchmark rates widened during the period.
Real estate loan prepayments and amortization during the December 2007
quarter approximated 15% of the real estate loan portfolio on an annualized
basis, compared to 9% during the December 2006 quarter and 11% during the
September 2007 quarter.
Non-performing loans were $2.8 million at December 31, 2007, representing
only 0.10% of total loans.
DEPOSITS
Deposits increased $106.0 million from September 30, 2007 to December 31,
2007 as a result of seasonal promotional marketing. Core (non-certificate)
deposits increased $55.4 million and certificates of deposit increased by
$50.6 million. Demand deposits increased by $11.7 million, or 8.4%, to
$150.1 million from September 30, 2007 to December 31, 2007, and by $19.4
million, or 14.8%, during the year ended December 31, 2007. This increase
was driven by the growth in Prime Dime, an interest-bearing checking
account, coupled with an increase in Dime's Professional Banking commercial
deposit gathering program.
Mr. Palagiano noted, "We are pleased that deposit growth was concentrated
in core money market and checking accounts. Unless rate relief comes in
the form of lower deposit rates, it is likely that we will see significant
reductions to our promotional deposits during the first quarter of 2008.
In the meantime, we will avail ourselves of the wholesale funding market
where it presents more advantageous funding opportunities."
Despite the challenging deposit market, average deposit cost for the
quarter ended December 31, 2007 was 3.55%, an increase of just 3 basis
points as compared to the quarter ended September 30, 2007.
Average deposits per branch approximated $104 million at December 31, 2007,
up from $96 million at December 31, 2006 and $99 million at September 30,
2007. Core deposits comprised 51% of total deposits at December 31, 2007,
relatively unchanged from September 30, 2007 and up from 47% at December
31, 2006 (reflecting growth of $164.2 million in money market accounts
during the year ended December 31, 2007). The loan-to-deposit ratio was
132% at December 31, 2007, compared to 135% at December 31, 2006 and 137%
at September 30, 2007.
STOCKHOLDERS' EQUITY AND SHARE REPURCHASE PROGRAM
The Company's total stockholders' equity at December 31, 2007 was $268.9
million, or 7.68% of total assets, compared to $270.0 million, or 8.18% of
total assets, at September 30, 2007. The decline in stockholders' equity as
a percentage of assets resulted from an increase of $199.7 million in
period-end assets coupled with $4.1 million in treasury stock repurchases
during the period.
During the fourth quarter of 2007, the Company repurchased into treasury
311,102 shares, or nearly 1% of its common stock outstanding at September
30, 2007. As of December 31, 2007, the Company had an additional
1,175,549 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 2007 the Company's tangible stockholders' equity had declined to
$217.2 million, compared to $219.9 million at September 30, 2007. The
quarterly cash dividend paid in November 2007 represented a payout ratio of
82.4% of fourth quarter 2007 earnings. At December 31, 2007, the
consolidated tangible stockholders' equity ratio was 6.29% of tangible
assets and the tangible book value per share was $6.41.
For the quarter ended December 31, 2007, the return on average
stockholders' equity was 8.11%, the return on average tangible equity was
10.00%, and the cash return on average tangible equity was 10.83%.
OUTLOOK
Mr. Palagiano stated, "For the first time in many quarters we are in a
position to expect earnings per share to trend upward. While there are
significant future uncertainties about economic and credit conditions, our
Company remains a liability-sensitive institution, and any downward
movement in short-term interest rates should be helpful to net interest
income over time."
The decline in both short- and medium-term interest rates during the last
six months of 2007 resulted in a decline in the average yield on the
Company's interest-earning assets (exclusive of the effects of prepayment
and late fee income) from 5.78% during the September 2007 quarter to 5.73%
during the December 2007 quarter. However, approximately $308 million in
portfolio mortgage loans with a below current market weighted average
coupon of 5.28% contractually reprice or mature during 2008. During the
year ending December 31, 2009, an additional $360 million in mortgage loans
with a weighted average coupon of 5.38% are scheduled to reprice.
The average cost of deposits increased from 3.52% during the September 2007
quarter to 3.55% during the December 2007 quarter. During the first
quarter of 2008, average deposit costs are expected to lower, as maturing
accounts are anticipated to re-price at lower rates and balance sheet
growth is expected to be funded primarily through wholesale borrowings or
non-promotional deposits. Recent and any future actions by the Federal
Open Market Committee resulting in lower short-term rates should help to
reduce the average cost of deposits, and, would likely provide more
attractive wholesale borrowings rates.
Prepayment and amortization rates, which approximated 11.6% during 2007
(inclusive of loan refinancing activity), are expected to increase to the
20% to 25% range during 2008, due primarily to increased loan refinancing
activity. At December 31, 2007, the real estate loan commitment pipeline
approximated $152.8 million, including $9.4 million of loan commitments
intended for sale to Fannie Mae. The real estate loan pipeline had a
weighted average interest rate approximating 6.14% at December 31, 2007,
relatively unchanged from the loan origination rate of 6.10% experienced
during the fourth quarter.
Absent growth in assets, we would expect to see some improvement in the net
interest margin during 2008. However, during the fourth quarter of 2007,
the Company elected to commence balance sheet growth and expects to
continue to grow its balance sheet during the first quarter of 2008. This
growth may come at interest rate spreads below the Bank's embedded margin
of 2.27%, but should contribute favorably to earnings.
Operating expenses are expected to approximate $11.6 million in the first
quarter of 2008. The Company will continue to repurchase its common stock,
and has sufficient capital to remain opportunistic, if conditions warrant.
The Company currently expects first quarter 2008 earnings per diluted share
to again be in the range of $0.17 to $0.19.
ABOUT DIME COMMUNITY BANCSHARES
The Company (
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
December 31,
2007 December 31,
(Unaudited) 2006
------------ ------------
ASSETS:
Cash and due from banks $ 101,708 $ 26,264
Investment securities held to maturity 80 235
Investment securities available for sale 34,095 29,548
Mortgage-backed securities available for sale 162,764 154,437
Federal funds sold and other short-term
investments 128,014 78,752
Real Estate Loans:
One-to-four family and cooperative apartment 145,592 153,847
Multifamily and underlying cooperative 1,949,025 1,855,106
Commercial real estate 728,129 666,927
Construction and land acquisition 49,387 23,340
Unearned discounts and net deferred loan fees 1,833 1,048
------------ ------------
Total real estate loans 2,873,966 2,700,268
------------ ------------
Other loans 2,169 2,205
Allowance for loan losses (15,387) (15,514)
------------ ------------
Total loans, net 2,860,748 2,686,959
------------ ------------
Loans held for sale 890 1,200
Premises and fixed assets, net 23,878 22,886
Federal Home Loan Bank of New York capital stock 39,029 31,295
Goodwill 55,638 55,638
Other assets 94,331 86,163
------------ ------------
TOTAL ASSETS $ 3,501,175 $ 3,173,377
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking $ 91,671 $ 95,215
NOW, Super NOW and Interest Bearing Checking 58,414 35,519
Savings 274,067 298,522
Money Market 678,759 514,607
------------ ------------
Sub-total $ 1,102,911 $ 943,863
------------ ------------
Certificates of deposit 1,077,087 1,064,669
------------ ------------
Total Due to Depositors 2,179,998 2,008,532
------------ ------------
Escrow and other deposits 52,209 46,373
Securities sold under agreements to repurchase 155,080 120,235
Federal Home Loan Bank of New York advances 706,500 571,500
Subordinated Notes Sold 25,000 25,000
Trust Preferred Notes Payable 72,165 72,165
Other liabilities 41,371 38,941
------------ ------------
TOTAL LIABILITIES 3,232,323 2,882,746
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 50,906,278 shares and 50,862,867
shares issued at December 31, 2007 and December
31, 2006, respectively, and 33,909,902 shares
and 36,456,354 shares outstanding at December
31, 2007 and December 31, 2006, respectively) 509 509
Additional paid-in capital 208,369 206,601
Retained earnings 288,112 285,420
Unallocated common stock of Employee Stock
Ownership Plan (4,164) (4,395)
Unearned common stock of Recognition and
Retention Plan (634) (3,452)
Common stock held by the Benefit Maintenance
Plan (7,941) (7,941)
Treasury stock (16,996,376 shares and 14,406,513
shares at December 31, 2007 and December 31, 2006,
respectively) (211,121) (179,011)
Accumulated other comprehensive loss, net (4,278) (7,100)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 268,852 290,631
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,501,175 $ 3,173,377
============ ============
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
---------------------------------------
December 31, September 30, December 31,
2007 2007 2006
(Unaudited) (Unaudited) (Unaudited)
------------ ------------- ------------
Interest income:
Loans secured by real estate $ 42,854 $ 41,420 $ 38,705
Other loans 46 45 49
Mortgage-backed securities 1,809 1,588 1,586
Investment securities 818 374 872
Federal funds sold and other
short-term investments 1,670 1,474 1,921
------------ ------------- ------------
Total interest income 47,197 44,901 43,133
------------ ------------- ------------
Interest expense:
Deposits and escrow 19,105 18,919 16,590
Borrowed funds 10,012 8,604 9,071
------------ ------------- ------------
Total interest expense 29,117 27,523 25,661
------------ ------------- ------------
Net interest income 18,080 17,378 17,472
Provision for loan losses 60 60 60
------------ ------------- ------------
Net interest income after
provision for loan losses 18,020 17,318 17,412
------------ ------------- ------------
Non-interest income:
Service charges and other fees 1,295 1,609 1,525
Net gain on sales of assets 204 79 84
Other 913 1,443 793
------------ ------------- ------------
Total non-interest income 2,412 3,131 2,402
------------ ------------- ------------
Non-interest expense:
Compensation and benefits 6,101 6,667 5,753
Occupancy and equipment 1,859 1,566 1,466
Other 3,378 3,484 3,161
------------ ------------- ------------
Total non-interest expense 11,338 11,717 10,380
------------ ------------- ------------
Income before taxes 9,094 8,732 9,434
Income tax expense 3,657 3,188 3,469
------------ ------------- ------------
Net Income $ 5,437 $ 5,544 $ 5,965
============ ============= ============
Earnings per Share:
Basic $ 0.17 $ 0.17 $ 0.17
============ ============= ============
Diluted $ 0.17 $ 0.17 $ 0.17
============ ============= ============
Average common shares outstanding
for Diluted EPS 32,737,939 33,106,224 34,873,327
For the Year Ended
--------------------------
December 31,
2007 December 31,
(Unaudited) 2006
------------ -------------
Interest income:
Loans secured by real estate $ 165,221 $ 155,510
Other loans 178 190
Mortgage-backed securities 6,344 6,850
Investment securities 2,011 2,277
Federal funds sold and other
short-term investments 8,406 5,983
------------ -------------
Total interest income 182,160 170,810
------------ -------------
Interest expense:
Deposits and escrow 75,761 56,659
Borrowed funds 35,386 36,681
------------ -------------
Total interest expense 111,147 93,340
------------ -------------
Net interest income 71,013 77,470
Provision for loan losses 240 240
------------ -------------
Net interest income after provision
for loan losses 70,773 77,230
------------ -------------
Non-interest income:
Service charges and other fees 5,542 5,985
Net gain on sales of assets 750 3,057
Other 4,128 3,348
------------ -------------
Total non-interest income 10,420 12,390
------------ -------------
Non-interest expense:
Compensation and benefits 25,416 23,432
Occupancy and equipment 6,431 5,762
Other 13,655 12,782
------------ -------------
Total non-interest
expense 45,502 41,976
------------ -------------
Income before taxes 35,691 47,644
Income tax expense 13,248 17,052
------------ -------------
Net Income $ 22,443 $ 30,592
============ =============
Earnings per Share:
Basic $ 0.67 $ 0.88
============ =============
Diluted $ 0.67 $ 0.87
============ =============
Average common shares
outstanding for Diluted EPS 33,641,875 35,118,128
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
Unaudited 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
----------------------------------------
December 31, September 30, December 31,
2007 2007 2006
------------ ------------ ------------
Net income as reported $ 5,437 $ 5,544 $ 5,965
Pre-tax net gain on sale of
securities and other assets - -
Pre-tax income from BOLI benefit
payment (546) -
Pre-tax income from borrowings
restructuring - - -
Tax effect of adjustments - -
------------ ------------ ------------
Core Earnings $ 5,437 $ 4,998 $ 5,965
------------ ------------ ------------
Cash Earnings Additions :
Non-cash stock benefit plan
expense 453 528 183
------------ ------------ ------------
Core Cash Earnings $ 5,890 $ 5,526 $ 6,148
------------ ------------ ------------
Performance Ratios (Based upon
Core Cash Earnings):
Core Cash EPS (Diluted) $ 0.18 $ 0.17 $ 0.18
Core Cash Return on Average
Assets 0.70% 0.69% 0.78%
Core Cash Return on Average
Tangible Stockholders' Equity 10.83% 10.01% 10.13%
For the Year Ended
--------------------------
December 31, December 31,
2007 2006
------------ ------------
Net income as reported $ 22,443 $ 30,592
Pre-tax net gain on sale of
securities and other assets - (1,542)
Pre-tax income from BOLI benefit
payment (546) -
Pre-tax income from borrowings
restructuring - (807)
Tax effect of adjustments - 839
------------ ------------
Core Earnings $ 21,897 $ 29,082
------------ ------------
Cash Earnings Additions : 0
Non-cash stock benefit plan
expense 1,768 1,250
------------ ------------
Core Cash Earnings $ 23,665 $ 30,332
------------ ------------
Performance Ratios (Based upon
Core Cash Earnings):
Core Cash EPS (Diluted) $ 0.70 $ 0.86
Core Cash Return on Average
Assets 0.73% 0.97%
Core Cash Return on Average
Tangible Stockholders' Equity 10.43% 12.57%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
----------------------------------------
December 31, September 30, December 31,
2007 2007 2006
------------ ------------ ------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.17 $ 0.17 $ 0.17
Return on Average Assets 0.65% 0.69% 0.76%
Return on Average Stockholders'
Equity 8.11% 8.20% 8.11%
Return on Average Tangible
Stockholders' Equity 10.00% 10.04% 9.83%
Net Interest Spread 1.92% 1.92% 1.91%
Net Interest Margin 2.27% 2.28% 2.34%
Non-interest Expense to Average
Assets 1.36% 1.45% 1.32%
Efficiency Ratio 55.89% 57.35% 52.45%
Effective Tax Rate 40.21% 36.51% 36.77%
Performance Ratios (Based upon
Core Earnings):
Core EPS (Diluted) $ 0.17 $ 0.15 $ 0.17
Core Return on Average Assets 0.65% 0.62% 0.76%
Core Return on Average
Stockholders' Equity 8.11% 7.39% 8.11%
Core Return on Average Tangible
Stockholders' Equity 10.00% 9.05% 9.83%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 7.93 $ 7.89 $ 7.97
Tangible Book Value Per Share 6.41 6.43 6.63
Average Balance Data:
Average Assets $ 3,345,437 $ 3,224,578 $ 3,145,446
Average Interest Earning Assets 3,180,603 3,054,499 2,992,771
Average Stockholders' Equity 268,177 270,350 294,385
Average Tangible Stockholders'
Equity 217,501 220,915 242,652
Average Loans 2,861,060 2,786,862 2,662,497
Average Deposits 2,132,528 2,130,472 1,963,369
Asset Quality Summary:
Net charge-offs $ 5 $ 7 $ 8
Nonperforming Loans 2,856 1,792 3,606
Nonperforming Loans/ Total Loans 0.10% 0.06% 0.13%
Nonperforming Assets/Total Assets 0.08% 0.05% 0.11%
Allowance for Loan Loss/Total
Loans 0.53% 0.54% 0.57%
Allowance for Loan
Loss/Nonperforming Loans 538.76% 857.92% 430.23%
Regulatory Capital Ratios:
Consolidated Tangible
Stockholders' Equity to Tangible
Assets at period end 6.29% 6.75% 7.74%
Tangible Capital Ratio (Bank Only) 7.88% 8.75% 9.05%
Leverage Capital Ratio (Bank Only) 7.88% 8.75% 9.05%
Risk Based Capital Ratio (Bank Only) 11.92% 12.65% 12.61%
For the Year Ended
--------------------------
December 31, December 31,
2007 2006
------------ ------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.67 $ 0.87
Return on Average Assets 0.69% 0.98%
Return on Average Stockholders'
Equity 8.11% 10.43%
Return on Average Tangible
Stockholders' Equity 9.89% 12.68%
Net Interest Spread 1.88% 2.19%
Net Interest Margin 2.29% 2.60%
Non-interest Expense to Average
Assets 1.39% 1.34%
Efficiency Ratio 56.40% 48.36%
Effective Tax Rate 37.12% 35.79%
Performance Ratios (Based upon
Core Earnings):
Core EPS (Diluted) $ 0.65 $ 0.83
Core Return on Average Assets 0.67% 0.93%
Core Return on Average
Stockholders' Equity 7.92% 9.92%
Core Return on Average Tangible
Stockholders' Equity 9.65% 12.05%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 7.93 $ 7.97
Tangible Book Value Per Share 6.41 6.63
Average Balance Data:
Average Assets $ 3,263,018 $ 3,126,640
Average Interest Earning Assets 3,105,459 2,978,147
Average Stockholders' Equity 276,582 293,199
Average Tangible Stockholders'
Equity 226,977 241,301
Average Loans 2,777,220 2,651,601
Average Deposits 2,128,350 1,931,561
Asset Quality Summary:
Net charge-offs $ 9 $ 27
Nonperforming Loans 2,856 3,606
Nonperforming Loans/ Total Loans 0.10% 0.13%
Nonperforming Assets/Total Assets 0.08% 0.11%
Allowance for Loan Loss/Total
Loans 0.53% 0.57%
Allowance for Loan
Loss/Nonperforming Loans 538.76% 430.23%
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at period
end 6.29% 7.74%
Tangible Capital Ratio (Bank Only) 7.88% 9.05%
Leverage Capital Ratio (Bank Only) 7.88% 9.05%
Risk Based Capital Ratio (Bank Only) 11.92% 12.61%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
For the Three Months Ended
-----------------------------------
December 31, 2007
-----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ----------- ----------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real estate loans $ 2,859,240 $ 42,854 6.00%
Other loans 1,820 46 10.11
Mortgage-backed securities 167,273 1,809 4.33
Investment securities 28,217 818 11.60
Other short-term investments 124,052 1,670 5.38
----------- ----------- ----------
Total interest earning assets 3,180,602 $ 47,197 5.94%
----------- -----------
Non-interest earning assets 164,835
-----------
Total assets $ 3,345,437
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super NOW and Interest
Bearing Checking $ 53,231 $ 306 2.28%
Money Market accounts 663,395 6,663 3.98
Savings accounts 275,606 372 0.54
Certificates of deposit 1,049,843 11,764 4.45
----------- ----------- ----------
Total interest bearing
deposits 2,042,075 19,105 3.71
Borrowed Funds 833,973 10,012 4.76
----------- ----------- ----------
Total interest-bearing
liabilities 2,876,048 29,117 4.02%
----------- -----------
Non-interest bearing checking
accounts 90,453
Other non-interest-bearing
liabilities 110,759
-----------
Total liabilities 3,077,260
Stockholders' equity 268,177
-----------
Total liabilities and stockholders'
equity $ 3,345,437
===========
Net interest income $ 18,080
===========
Net interest spread 1.92%
==========
Net interest-earning assets $ 304,554
===========
Net interest margin 2.27%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 110.59%
===========
Deposits (including non-interest
bearing checking accounts) $ 2,132,528 $ 19,105 3.55%
Interest earning assets (excluding
prepayment fees and late charges) 5.73%
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
-----------------------------------
December 31, 2006
-----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ----------- ----------
(Dollars In Thousands)
Assets:
Interest-earning assets:
Real estate loans $ 2,660,517 $ 38,705 5.82%
Other loans 1,980 49 9.90
Mortgage-backed securities 163,072 1,586 3.89
Investment securities 29,678 872 11.75
Other short-term investments 137,524 1,921 5.59
----------- ----------- ----------
Total interest earning assets 2,992,771 $ 43,133 5.76%
----------- -----------
Non-interest earning assets 152,675
-----------
Total assets $ 3,145,446
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
NOW, Super NOW and Interest
Bearing Checking $ 34,069 $ 92 1.07%
Money Market accounts 491,946 4,152 3.35
Savings accounts 301,348 442 0.58
Certificates of deposit 1,042,809 11,904 4.53
----------- ----------- ----------
Total interest bearing
deposits 1,870,172 16,590 3.52
Borrowed Funds 771,152 9,071 4.67
----------- ----------- ----------
Total interest-bearing
liabilities 2,641,324 25,661 3.85%
----------- -----------
Non-interest bearing checking
accounts 93,197
Other non-interest-bearing
liabilities 116,540
-----------
Total liabilities 2,851,061
Stockholders' equity 294,385
-----------
Total liabilities and stockholders'
equity $ 3,145,446
===========
Net interest income $ 17,472
===========
Net interest spread 1.91%
==========
Net interest-earning assets $ 351,447
===========
Net interest margin 2.34%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 113.31%
==========
Deposits (including non-interest
bearing checking accounts) $ 1,963,369 $ 16,590 3.35%
Interest earning assets (excluding
prepayment fees and late charges) 5.68%
Contact Information: Contact: Kenneth Ceonzo Director of Investor Relations 718-782-6200 extension 8279