Dime Community Bancshares Reports Earnings for Fourth Quarter and Fiscal Year Ended December 31, 2008
Market Wire, January, 2009
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
December 31, September 30,
2008 December 31, 2008
(Unaudited) 2007 (Unaudited)
------------- ------------- -------------
ASSETS:
Cash and due from banks $ 211,020 $ 101,708 $ 78,159
Investment securities held to
maturity 10,861 80 11,513
Investment securities
available for sale 16,602 34,095 16,059
Mortgage-backed securities
available for sale 301,351 162,764 309,094
Federal funds sold and other
short-term investments - 128,014 -
Real Estate Loans:
One-to-four family and
cooperative apartment 142,295 145,592 150,414
Multifamily and underlying
cooperative 2,242,542 1,949,025 2,187,981
Commercial real estate 848,208 728,129 803,020
Construction and land
acquisition 52,982 49,387 46,788
Unearned discounts and net
deferred loan fees 3,287 1,833 3,138
------------- ------------- -------------
Total real estate loans 3,289,314 2,873,966 3,191,341
------------- ------------- -------------
Other loans 2,191 2,169 2,133
Allowance for loan losses (17,454) (15,387) (16,549)
------------- ------------- -------------
Total loans, net 3,274,051 2,860,748 3,176,925
------------- ------------- -------------
Loans held for sale - 890 736
Premises and fixed assets, net 30,426 23,878 25,883
Federal Home Loan Bank of New
York capital stock 53,435 39,029 52,985
Other real estate owned, net 300 - -
Goodwill 55,638 55,638 55,638
Other assets 101,914 94,331 101,644
------------- ------------- -------------
TOTAL ASSETS $ 4,055,598 $ 3,501,175 $ 3,828,636
============= ============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Deposits:
Non-interest bearing checking $ 90,710 $ 88,398 $ 89,744
Interest Bearing Checking 112,687 61,687 101,381
Savings 270,321 274,067 271,062
Money Market 633,167 678,759 595,551
------------- ------------- -------------
Sub-total $ 1,106,885 $ 1,102,911 $ 1,057,738
------------- ------------- -------------
Certificates of deposit 1,153,166 1,077,087 1,040,039
------------- ------------- -------------
Total Due to Depositors 2,260,051 2,179,998 2,097,777
------------- ------------- -------------
Escrow and other deposits 130,121 52,209 80,110
Securities sold under
agreements to repurchase 230,000 155,080 230,000
Federal Home Loan Bank of New
York advances 1,019,675 706,500 1,009,675
Subordinated Notes Sold 25,000 25,000 25,000
Trust Preferred Notes Payable 72,165 72,165 72,165
Other liabilities 41,622 41,371 37,807
------------- ------------- -------------
TOTAL LIABILITIES 3,778,634 3,232,323 3,552,534
------------- ------------- -------------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par,
125,000,000 shares
authorized, 51,122,319
shares, 51,121,694 shares
and 50,906,278 shares issued
at December 31, 2008,
September 30, 2008 and
December 31, 2007,
respectively, and 34,179,900
shares, 34,179,275 shares
and 33,909,902 shares
outstanding at
December 31, 2008, September
30, 2008 and December 31,
2007, respectively) 511 509 511
Additional paid-in capital 213,917 208,369 213,335
Retained earnings 297,848 288,112 297,146
Unallocated common stock of
Employee Stock Ownership Plan (3,933) (4,164) (3,990)
Unearned common stock of
Restricted Stock Awards (1,790) (634) (2,014)
Common stock held by the
Benefit Maintenance Plan (8,007) (7,941) (8,007)
Treasury stock (16,942,419
shares, 16,942,419 shares and
16,996,376 shares at December
31, 2008, September 30, 2008
and December 31, 2007,
respectively) (210,471) (211,121) (210,471)
Accumulated other
comprehensive loss, net (11,111) (4,278) (10,408)
------------- ------------- -------------
TOTAL STOCKHOLDERS' EQUITY 276,964 268,852 276,102
------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 4,055,598 $ 3,501,175 $ 3,828,636
============= ============= =============
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------------
December 31, September 30, December 31,
2008 2008 2007
------------- ------------- --------------
Interest income:
Loans secured by real
estate $ 47,987 $ 47,734 $ 42,854
Other loans 40 41 46
Mortgage-backed
securities 3,489 3,610 1,809
Investment securities 538 340 818
Federal funds sold and
other short-term
investments 594 783 1,670
------------- ------------- --------------
Total interest
income 52,648 52,508 47,197
------------- ------------- --------------
Interest expense:
Deposits and escrow 14,631 12,927 19,105
Borrowed funds 14,188 14,399 10,012
------------- ------------- --------------
Total interest
expense 28,819 27,326 29,117
------------- ------------- --------------
Net interest
income 23,829 25,182 18,080
Provision for credit losses 1,040 596 60
------------- ------------- --------------
Net interest income after
provision for credit losses 22,789 24,586 18,020
------------- ------------- --------------
Non-interest income:
Service charges and other
fees 1,077 1,500 1,103
Mortgage banking (loss)
income, net (1,782) (724) 396
Impairment charge on
securities (3,209) - -
Loss on sale of other
real estate owned and
other assets - - -
Other 1,024 901 913
------------- ------------- --------------
Total non-interest
income (loss) (2,890) 1,677 2,412
------------- ------------- --------------
Non-interest expense:
Compensation and benefits 7,011 7,491 6,101
Occupancy and equipment 1,817 1,815 1,859
Other 3,694 3,607 3,378
------------- ------------- --------------
Total non-interest
expense 12,522 12,913 11,338
------------- ------------- --------------
Income before taxes 7,377 13,350 9,094
Income tax expense 2,084 4,997 3,657
------------- ------------- --------------
Net Income $ 5,293 $ 8,353 $ 5,437
============= ============= ==============
Earnings per Share:
Basic $ 0.16 $ 0.26 $ 0.17
============= ============= ==============
Diluted $ 0.16 $ 0.25 $ 0.17
============= ============= ==============
Average common shares
outstanding for Diluted EPS 32,903,141 33,036,937 32,737,939
For the Year Ended
----------------------------
December 31, December 31,
2008 2007
------------- -------------
Interest income:
Loans secured by real
estate $ 182,934 $ 165,221
Other loans 166 178
Mortgage-backed
securities 12,685 6,344
Investment securities 1,950 2,011
Federal funds sold and
other short-term
investments 4,919 8,406
------------- -------------
Total interest
income 202,654 182,160
------------- -------------
Interest expense:
Deposits and escrow 59,978 75,761
Borrowed funds 51,324 35,386
------------- -------------
Total interest
expense 111,302 111,147
------------- -------------
Net interest
income 91,352 71,013
Provision for credit losses 2,006 240
------------- -------------
Net interest income after
provision for credit losses 89,346 70,773
------------- -------------
Non-interest income:
Service charges and other
fees 4,766 4,780
Mortgage banking (loss)
income, net (2,190) 1,512
Impairment charge on
securities (3,209) -
Loss on sale of other
real estate owned and
other assets (129) -
Other 3,576 4,128
------------- -------------
Total non-interest
income (loss) 2,814 10,420
------------- -------------
Non-interest expense:
Compensation and benefits 28,624 25,416
Occupancy and equipment 6,967 6,431
Other 14,382 13,655
------------- -------------
Total non-interest
expense 49,973 45,502
------------- -------------
Income before taxes 42,187 35,691
Income tax expense 14,159 13,248
------------- -------------
Net Income $ 28,028 $ 22,443
============= =============
Earnings per Share:
Basic $ 0.85 $ 0.67
============= =============
Diluted $ 0.85 $ 0.67
============= =============
Average common shares
outstanding for Diluted EPS 32,824,802 33,641,875
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 during the period (exclusive of gains or
losses on sales of securities and other real estate owned and other
material non-recurring items).
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 stockholders' equity (GAAP
capital) and tangible stockholders' equity (regulatory capital) can be
found in the Company's Form 10-K for the year ended December 31, 2007.
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,
2008 2008 2007
------------- ------------- -------------
Net income as reported $ 5,293 $ 8,353 $ 5,437
Loss on sale of other real
estate owned and other assets - - -
Impairment charge on
securities 3,209 - -
Non-recurring adjustment to
income taxes 36 15 -
Pre-tax income from life
insurance contract settlement - - -
Tax effect of adjustments (1,449) - -
------------- ------------- -------------
Core Earnings $ 7,089 $ 8,368 $ 5,437
------------- ------------- -------------
Cash Earnings Additions:
Non-cash stock benefit plan
expense 685 713 453
------------- ------------- -------------
Core Cash Earnings $ 7,774 $ 9,081 $ 5,890
------------- ------------- -------------
Performance Ratios (Based upon
Core Cash Earnings):
Core Cash EPS (Diluted) $ 0.24 $ 0.27 $ 0.18
Core Cash Return on Average
Assets 0.80% 0.96% 0.70%
Core Cash Return on Average
Tangible Stockholders' Equity 13.47% 15.97% 10.83%
For the Year Ended
----------------------------
December 31, December 31,
2008 2007
------------- -------------
Net income as reported $ 28,028 $ 22,443
Loss on sale of other real
estate owned and other assets 129 -
Impairment charge on
securities 3,209 -
Non-recurring adjustment to
income taxes (510) -
Pre-tax income from life
insurance contract settlement - (546)
Tax effect of adjustments (1,507) -
------------- -------------
Core Earnings $ 29,349 $ 21,897
------------- -------------
Cash Earnings Additions:
Non-cash stock benefit plan
expense 2,572 1,768
------------- -------------
Core Cash Earnings $ 31,921 $ 23,665
------------- -------------
Performance Ratios (Based upon
Core Cash Earnings):
Core Cash EPS (Diluted) $ 0.97 $ 0.70
Core Cash Return on Average
Assets 0.86% 0.73%
Core Cash Return on Average
Tangible Stockholders' Equity 14.26% 10.43%
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,
2008 2008 2007
------------- ------------- -------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.16 $ 0.25 $ 0.17
Return on Average Assets 0.55% 0.88% 0.65%
Return on Average
Stockholders' Equity 7.67% 12.20% 8.11%
Return on Average Tangible
Stockholders' Equity 9.17% 14.69% 10.00%
Net Interest Spread 2.42% 2.52% 1.92%
Net Interest Margin 2.63% 2.77% 2.27%
Non-interest Expense to
Average Assets 1.29% 1.36% 1.36%
Efficiency Ratio (1) 51.85% 48.08% 55.89%
Effective Tax Rate 28.25% 37.43% 40.21%
Performance Ratios (Based upon
Core Earnings):
Core EPS (Diluted) $ 0.22 $ 0.25 $ 0.17
Core Return on Average Assets 0.73% 0.88% 0.65%
Core Return on Average
Stockholders' Equity 10.28% 12.22% 8.11%
Core Return on Average
Tangible Stockholders' Equity 12.28% 14.72% 10.00%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 8.10 $ 8.08 $ 7.93
Tangible Book Value Per Share 6.79 6.75 6.41
Average Balance Data:
Average Assets $ 3,873,395 $ 3,794,495 $ 3,345,437
Average Interest Earning
Assets 3,629,527 3,639,964 3,180,603
Average Stockholders' Equity 275,896 273,816 268,177
Average Tangible Stockholders'
Equity 230,886 227,454 217,501
Average Loans 3,237,562 3,219,914 2,861,060
Average Deposits 2,163,553 2,049,783 2,132,528
Asset Quality Summary:
Net (recoveries) charge-offs $ 350 ($ 26) $ 5
Nonperforming Loans 7,402 6,440 2,856
Nonperforming Loans/ Total
Loans 0.22% 0.20% 0.10%
Nonperforming Assets 7,702 6,440 2,856
Nonperforming Assets/Total
Assets 0.19% 0.17% 0.08%
Allowance for Loan Loss/Total
Loans 0.53% 0.52% 0.53%
Allowance for Loan
Loss/Nonperforming Loans 235.80% 256.97% 538.76%
Regulatory Capital Ratios:
Consolidated Tangible
Stockholders' Equity to
Tangible Assets at period
end 5.79% 6.08% 6.29%
Tangible Capital Ratio (Bank
Only) 7.63% 7.87% 7.88%
Leverage Capital Ratio (Bank
Only) 7.63% 7.87% 7.88%
Risk Based Capital Ratio (Bank
Only) 11.43% 11.43% 11.92%
For the Year Ended
----------------------------
December 31, December 31,
2008 2007
------------- -------------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.85 $ 0.67
Return on Average Assets 0.76% 0.69%
Return on Average
Stockholders' Equity 10.29% 8.11%
Return on Average Tangible
Stockholders' Equity 12.52% 9.89%
Net Interest Spread 2.34% 1.88%
Net Interest Margin 2.60% 2.29%
Non-interest Expense to
Average Assets 1.35% 1.39%
Efficiency Ratio (1) 51.25% 56.40%
Effective Tax Rate 33.56% 37.12%
Performance Ratios (Based upon
Core Earnings):
Core EPS (Diluted) $ 0.89 $ 0.65
Core Return on Average Assets 0.79% 0.67%
Core Return on Average
Stockholders' Equity 10.78% 7.92%
Core Return on Average
Tangible Stockholders' Equity 13.12% 9.65%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 8.10 $ 7.93
Tangible Book Value Per Share 6.79 6.41
Average Balance Data:
Average Assets $ 3,709,924 $ 3,263,018
Average Interest Earning
Assets 3,512,771 3,105,459
Average Stockholders' Equity 272,299 276,582
Average Tangible Stockholders'
Equity 223,778 226,977
Average Loans 3,090,032 2,777,220
Average Deposits 2,131,211 2,128,350
Asset Quality Summary:
Net (recoveries) charge-offs $ 584 $ 9
Nonperforming Loans 7,402 2,856
Nonperforming Loans/Total
Loans 0.22% 0.10%
Nonperforming Assets 7,702 2,856
Nonperforming Assets/Total
Assets 0.19% 0.08%
Allowance for Loan Loss/Total
Loans 0.53% 0.53%
Allowance for Loan
Loss/Nonperforming Loans 235.80% 538.76%
Regulatory Capital Ratios:
Consolidated Tangible
Stockholders' Equity to
Tangible Assets at period
end 5.79% 6.29%
Tangible Capital Ratio (Bank
Only) 7.63% 7.88%
Leverage Capital Ratio (Bank
Only) 7.63% 7.88%
Risk Based Capital Ratio (Bank
Only) 11.43% 11.92%
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
----------------------------------
December 31, 2008
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,235,756 $ 47,987 5.93%
Other loans 1,806 40 8.86
Mortgage-backed securities 306,652 3,489 4.55
Investment securities 27,456 538 7.84
Other short-term investments 57,857 594 4.11
----------- ---------- ----------
Total interest earning assets 3,629,527 $ 52,648 5.80%
----------- ----------
Non-interest earning assets 243,868
-----------
Total assets $ 3,873,395
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 104,224 $ 603 2.30%
Money Market accounts 606,647 4,074 2.67
Savings accounts 269,153 382 0.56
Certificates of deposit 1,090,661 9,572 3.49
----------- ---------- ----------
Total interest bearing
deposits 2,070,685 14,631 2.81
Borrowed Funds 1,317,166 14,188 4.29
----------- ---------- ----------
Total interest-bearing
liabilities 3,387,851 28,819 3.38%
----------- ---------- ----------
Non-interest bearing checking
accounts 92,868
Other non-interest-bearing
liabilities 116,780
-----------
Total liabilities 3,597,499
Stockholders' equity 275,896
-----------
Total liabilities and stockholders'
equity $ 3,873,395
===========
Net interest income $ 23,829
==========
Net interest spread 2.42%
==========
Net interest-earning assets $ 241,676
===========
Net interest margin 2.63%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 107.13%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,163,553 $ 14,631 2.69%
Interest earning assets (excluding
prepayment and other fees) 5.70%
For the Three Months Ended
----------------------------------
September 30, 2008
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,218,192 $ 47,734 5.93%
Other loans 1,722 41 9.52
Mortgage-backed securities 318,224 3,610 4.54
Investment securities 31,271 340 4.35
Other short-term investments 70,555 783 4.44
----------- ---------- ----------
Total interest earning assets 3,639,964 $ 52,508 5.77%
----------- ----------
Non-interest earning assets 154,531
-----------
Total assets $ 3,794,495
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 103,718 $ 607 2.33%
Money Market accounts 633,946 4,075 2.56
Savings accounts 275,104 387 0.56
Certificates of deposit 944,367 7,858 3.31
----------- ---------- ----------
Total interest bearing
deposits 1,957,135 12,927 2.63
Borrowed Funds 1,388,337 14,399 4.13
----------- ---------- ----------
Total interest-bearing
liabilities 3,345,472 27,326 3.25%
----------- ---------- ----------
Non-interest bearing checking
accounts 92,648
Other non-interest-bearing
liabilities 82,559
-----------
Total liabilities 3,520,679
Stockholders' equity 273,816
-----------
Total liabilities and stockholders'
equity $ 3,794,495
===========
Net interest income $ 25,182
==========
Net interest spread 2.52%
==========
Net interest-earning assets $ 294,492
===========
Net interest margin 2.77%
==========
Ratio of interest-earning assets
to interest-bearing liabilities 108.80%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,049,783 $ 12,927 2.51%
Interest earning assets (excluding
prepayment and other fees) 5.64%
For the Three Months Ended
----------------------------------
December 31, 2007
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
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:
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 and other fees) 5.73%
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