Dime Community Bancshares Reports Earnings for the Quarter Ended March 31, 2009
Market Wire, April, 2009
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
March 31,
2009 December 31,
(Unaudited) 2008
----------- -----------
ASSETS:
Cash and due from banks $ 199,318 $ 211,020
Investment securities held to maturity 9,406 10,861
Investment securities available for sale 5,966 16,602
Mortgage-backed securities available for sale 287,335 301,351
Federal funds sold and other short-term
investments 20,230 -
Real Estate Loans:
One-to-four family and cooperative apartment 143,074 142,295
Multifamily and underlying cooperative 2,170,922 2,242,542
Commercial real estate 827,875 848,208
Construction and land acquisition 50,824 52,982
Unearned discounts and net deferred loan fees 3,335 3,287
----------- -----------
Total real estate loans 3,196,030 3,289,314
----------- -----------
Other loans 1,942 2,191
Allowance for loan losses (18,351) (17,454)
----------- -----------
Total loans, net 3,179,621 3,274,051
----------- -----------
Loans held for sale 100,377 -
Premises and fixed assets, net 30,144 30,426
Federal Home Loan Bank of New York capital stock 50,735 53,435
Other real estate owned, net 300 300
Goodwill 55,638 55,638
Other assets 101,688 101,914
----------- -----------
TOTAL ASSETS $ 4,040,758 $ 4,055,598
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking $ 91,952 $ 90,710
Interest Bearing Checking 115,277 112,687
Savings 279,956 270,321
Money Market 734,001 633,167
----------- -----------
Sub-total $ 1,221,186 $ 1,106,885
----------- -----------
Certificates of deposit 1,114,338 1,153,166
----------- -----------
Total Due to Depositors 2,335,524 2,260,051
----------- -----------
Escrow and other deposits 96,423 130,121
Securities sold under agreements to repurchase 230,000 230,000
Federal Home Loan Bank of New York advances 959,675 1,019,675
Subordinated Notes Sold 25,000 25,000
Trust Preferred Notes Payable 72,165 72,165
Other liabilities 42,249 41,622
----------- -----------
TOTAL LIABILITIES 3,761,036 3,778,634
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares
authorized, 51,122,319 shares issued at both
March 31, 2009 and December 31, 2008, and
34,179,900 shares outstanding at both March 31,
2009 and December 31, 2008) 511 511
Additional paid-in capital 214,357 213,917
Retained earnings 297,350 297,848
Unallocated common stock of Employee Stock
Ownership Plan (3,875) (3,933)
Unearned common stock of Restricted Stock Awards (1,559) (1,790)
Common stock held by the Benefit Maintenance Plan (8,007) (8,007)
Treasury stock (16,942,419 shares at both March
31, 2009 and December 31, 2008) (210,471) (210,471)
Accumulated other comprehensive loss, net (8,584) (11,111)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 279,722 276,964
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,040,758 $ 4,055,598
=========== ===========
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In thousands except per share amounts)
For the Three Months Ended
-------------------------------------
March 31, December 31, March 31,
2009 2008 2008
---------- ---------- -----------
Interest income:
Loans secured by real estate $ 48,329 $ 47,987 $ 43,066
Other loans 37 40 44
Mortgage-backed securities 3,280 3,489 2,216
Investment securities 245 538 708
Federal funds sold and other
short-term investments 503 594 2,196
---------- ---------- -----------
Total interest income 52,394 52,648 48,230
---------- ---------- -----------
Interest expense:
Deposits and escrow 14,212 14,631 17,968
Borrowed funds 14,042 14,188 11,031
---------- ---------- -----------
Total interest expense 28,254 28,819 28,999
---------- ---------- -----------
Net interest income 24,140 23,829 19,231
Provision for credit losses 2,640 1,040 60
---------- ---------- -----------
Net interest income after provision
for credit losses 21,500 22,789 19,171
---------- ---------- -----------
Non-interest income:
Service charges and other fees 858 1,077 1,049
Mortgage banking (loss)
income, net (1,169) (1,782) 286
Impairment charge on
securities (5,040)(1) (3,209) -
Gain on sale of other real
estate owned and other assets 431 - -
Other 874 1,024 832
---------- ---------- -----------
Total non-interest income
(loss) (4,046) (2,890) 2,167
---------- ---------- -----------
Non-interest expense:
Compensation and benefits 7,801 7,011 7,234
Occupancy and equipment 2,086 1,817 1,570
Other 3,721 3,694 3,476
---------- ---------- -----------
Total non-interest expense 13,608 12,522 12,280
---------- ---------- -----------
Income before taxes 3,846 7,377 9,058
Income tax expense 996 2,084 3,101
---------- ---------- -----------
Net Income $ 2,850 $ 5,293 $ 5,957
========== ========== ===========
Earnings per Share:
Basic $ 0.09 $ 0.16 $ 0.18
========== ========== ===========
Diluted $ 0.09 $ 0.16 $ 0.18
========== ========== ===========
Average common shares outstanding
for Diluted EPS 32,888,319 32,903,141 32,683,161
(1) Total other-than-temporary impairment on securities was $6,102,000 and
$3,209,000, respectively, during the three months ended March 31, 2009
and December 31, 2008. The non-credit component of the impairment
charge recognized in accumulated other comprehensive income was
$1,062,000 during the three months ended March 31, 2009. The
non-credit component of the impairment charge recorded during
the quarter ended December 31, 2008 was $2,287,000, and was recognized
as a cumulative effect adjustment to retained earnings as of
January 1, 2009.
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, 2008.
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
------------------------------------
March 31, December 31, March 31,
2009 2008 2008
---------- ---------- ----------
Net income as reported $ 2,850 $ 5,293 $ 5,957
Loss on sale of other real estate
owned and other assets - - -
Impairment charge on equity mutual
funds 3,063 - -
Credit related impairment charge on
trust preferred securities 1,977 3,209(1) -
Gain on sale of municipal agency
securities (431) - -
Non-recurring adjustment to income
taxes - 36 -
Expense associated with prepayment
of FHLBNY Advances 185 - -
Tax effect of adjustments and other
non-recurring tax items (2,185) (1,449) 29
---------- ---------- ----------
Core Earnings $ 5,459 $ 7,089 $ 5,986
---------- ---------- ----------
Cash Earnings Additions :
Non-cash stock benefit plan expense 640 685 563
---------- ---------- ----------
Core Cash Earnings $ 6,099 $ 7,774 $ 6,549
---------- ---------- ----------
Performance Ratios (Based upon Core
Cash Earnings):
Core Cash EPS (Diluted) $ 0.19 $ 0.24 $ 0.20
Core Cash Return on Average Assets 0.60% 0.80% 0.75%
Core Cash Return on Average
Tangible Stockholders' Equity 10.46% 13.47% 12.09%
(1) Amount reflects the pre-tax charge through the Company's earnings
during the quarter ended December 31, 2008. Of this total,
$2,287,000 was reversed on January 1, 2009 for the cumulative
effect adjustment of adopting Financial Accounting Standards Board
Staff Positions 115-2 and 124-2, "Recognition and Presentation of
Other-Than Temporary Impairments."
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
For the Three Months Ended
---------------------------------------
March 31, December 31, March 31,
2009 2008 2008
----------- ----------- -----------
Performance Ratios (Based upon
Reported Earnings):
Reported EPS (Diluted) $ 0.09 $ 0.16 $ 0.18
Return on Average Assets 0.28% 0.55% 0.68%
Return on Average Stockholders'
Equity 4.08% 7.67% 8.87%
Return on Average Tangible
Stockholders' Equity 4.89% 9.17% 11.00%
Net Interest Spread 2.21% 2.42% 2.01%
Net Interest Margin 2.51% 2.63% 2.32%
Non-interest Expense to Average
Assets 1.35% 1.29% 1.40%
Efficiency Ratio 55.09% 51.85% 57.39%
Effective Tax Rate 25.90% 28.25% 34.23%
Performance Ratios (Based upon
Core Earnings):
Core EPS (Diluted) $ 0.17 $ 0.22 $ 0.18
Core Return on Average Assets 0.54% 0.73% 0.68%
Core Return on Average
Stockholders' Equity 7.82% 10.28% 8.92%
Core Return on Average Tangible
Stockholders' Equity 9.36% 12.28% 11.05%
Book Value and Tangible Book
Value Per Share:
Stated Book Value Per Share $ 8.18 $ 8.10 $ 7.97
Tangible Book Value Per Share 6.80 6.79 6.46
Average Balance Data:
Average Assets $ 4,039,762 $ 3,873,395 $ 3,512,724
Average Interest Earning Assets 3,853,025 3,629,527 3,320,124
Average Stockholders' Equity 279,072 275,896 268,512
Average Tangible Stockholders'
Equity 233,200 230,886 216,623
Average Loans 3,311,006 3,237,562 2,896,081
Average Deposits 2,321,613 2,163,553 2,153,031
Asset Quality Summary:
Net (recoveries) charge-offs $ 1,876(1) $ 350 $ 144
Nonperforming Loans 13,123 7,402 3,090
Nonperforming Loans/Total Loans 0.40% 0.22% 0.11%
Nonperforming Assets 13,423 7,702 3,985
Nonperforming Assets/Total Assets 0.33% 0.19% 0.11%
Allowance for Loan Loss/Total Loans 0.56% 0.53% 0.53%
Allowance for Loan Loss/
Nonperforming Loans 139.84% 235.80% 506.96%
Regulatory Capital Ratios:
Consolidated Tangible Stockholders'
Equity to Tangible Assets at
period end 5.83% 5.79% 6.09%
Tangible Capital Ratio (Bank Only) 7.86% 7.63% 7.77%
Leverage Capital Ratio (Bank Only) 7.86% 7.63% 7.77%
Risk Based Capital Ratio (Bank Only) 11.83% 11.43% 11.78%
(1) Amount includes $347,000 of charge-offs recognized as a direct witedown
of loan principal balance and not as a reduction of the allowance for
loan losses.
DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
For the Three Months Ended
----------------------------------
March 31, 2009
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 3,309,307 $ 48,329 5.84%
Other loans 1,699 37 8.71
Mortgage-backed securities 292,865 3,280 4.48
Investment securities 22,806 245 4.30
Other short-term investments 227,015 503 0.89
----------- ---------- ----------
Total interest earning assets 3,853,692 $ 52,394 5.44%
----------- ----------
Non-interest earning assets 186,070
-----------
Total assets $ 4,039,762
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 109,621 $ 407 1.51%
Money Market accounts 712,311 3,596 2.05
Savings accounts 272,893 353 0.52
Certificates of deposit 1,130,672 9,856 3.54
----------- ---------- ----------
Total interest bearing
deposits 2,225,497 14,212 2.59
Borrowed Funds 1,321,340 14,042 4.31
----------- ---------- ----------
Total interest-bearing
liabilities 3,546,837 28,254 3.23%
----------- ---------- ----------
Non-interest bearing checking
accounts 96,116
Other non-interest-bearing
liabilities 117,737
-----------
Total liabilities 3,760,690
Stockholders' equity 279,072
-----------
Total liabilities and stockholders'
equity $ 4,039,762
===========
Net interest income $ 24,140
==========
Net interest spread 2.21%
==========
Net interest-earning assets $ 306,855
===========
Net interest margin 2.51%
==========
Ratio of interest-earning assets to
interest-bearing liabilities 108.65%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,321,613 $ 14,212 2.48%
Interest earning assets (excluding
prepayment and other fees) 5.41%
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
----------------------------------
March 31, 2008
----------------------------------
Average
Average Yield/
Balance Interest Cost
----------- ---------- ----------
Assets:
Interest-earning assets:
Real estate loans $ 2,894,264 $ 43,066 5.95%
Other loans 1,817 44 9.69
Mortgage-backed securities 192,772 2,216 4.60
Investment securities 35,655 708 7.94
Other short-term investments 195,616 2,196 4.49
----------- ---------- ----------
Total interest earning assets 3,320,124 $ 48,230 5.81%
----------- ----------
Non-interest earning assets 192,600
-----------
Total assets $ 3,512,724
===========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking $ 63,834 $ 410 2.58%
Money Market accounts 670,662 5,956 3.56
Savings accounts 271,839 367 0.54
Certificates of deposit 1,057,803 11,235 4.26
----------- ---------- ----------
Total interest bearing
deposits 2,064,138 17,968 3.49
Borrowed Funds 995,888 11,031 4.44
----------- ---------- ----------
Total interest-bearing
liabilities 3,060,026 28,999 3.80%
----------- ----------
Non-interest bearing checking
accounts 88,893
Other non-interest-bearing
liabilities 95,293
-----------
Total liabilities 3,244,212
Stockholders' equity 268,512
-----------
Total liabilities and stockholders'
equity $ 3,512,724
===========
Net interest income $ 19,231
==========
Net interest spread 2.01%
==========
Net interest-earning assets $ 260,098
===========
Net interest margin 2.32%
==========
Ratio of interest-earning assets to
interest-bearing liabilities 108.50%
==========
Deposits (including non-interest
bearing checking accounts) $ 2,153,031 $ 17,968 3.35%
Interest earning assets (excluding
prepayment and other fees) 5.68%
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