Dime Community Bancshares Inc.

10/22/2024 | Press release | Distributed by Public on 10/22/2024 05:30

Dime Community Bancshares, Inc. Reports Third Quarter 2024 Results Form 8 K

Dime Community Bancshares, Inc. Reports Third Quarter 2024 Results

Acceleration in Core Deposit Growth Drives Increase in Quarterly Net Interest Margin to 2.50%

Balance Sheet Well Positioned to Benefit From Federal Reserve Rate Cuts

Hauppauge, NY, October 22, 2024 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the "Company" or "Dime"), the parent company of Dime Community Bank (the "Bank"), today reported net income available to common stockholders of $11.5 million for the quarter ended September 30, 2024, or $0.29 per diluted common share, compared to $16.7 million, or $0.43 per diluted common share, for the quarter ended June 30, 2024, and $13.2 million, or $0.34 per diluted common share for the quarter ended September 30, 2023.

Stuart H. Lubow, President and Chief Executive Officer ("CEO") of the Company, stated, "Strong growth in low-cost core deposits drove a significant linked quarter expansion in the Net Interest Margin. Importantly, following the recent 50 basis point reduction in the Federal Funds rate, we lowered deposit costs and expect to benefit from these actions in the fourth quarter and beyond. Since the Federal Reserve rate cut in mid-September, the spread between the weighted average rate on loans and core deposits has improved by approximately 15 basis points. We anticipate the full quarter impact of this spread improvement to drive continued Net Interest Margin expansion in the fourth quarter."

Mr. Lubow commented, "During the third quarter, our Business loan portfolio increased by over $120 million and we continue to have strong pipelines in our Middle Market and Healthcare verticals. Compared to the prior quarter, the level of net charge-offs and criticized and classified loans remained stable and we continued to prudently build our allowance for credit losses to total loans and risk-based capital levels. In conclusion, I am extremely proud of our employees for their unwavering focus on our customers and enabling us to be the premier business bank on Greater Long Island."

Highlights for the Third Quarter of 2024 Included:

● Total deposits increased $389 million compared to the second quarter of 2024;
● Core deposits (excluding brokered and time deposits) increased $505 million compared to the second quarter of 2024;
● The ratio of average non-interest-bearing deposits to average total deposits for the third quarter was 29% compared to 28% for the second quarter of 2024;
● The cost of total deposits declined by 4 basis point versus the prior quarter;
● The net interest margin increased to 2.50% for the third quarter of 2024 compared to 2.41% for the prior quarter;
● The loan to deposit ratio declined to 95.4% at the end of the third quarter compared to 98.2% for the prior quarter;
● Net charge-offs to average loans was 0.15% for the third quarter of 2024 compared to 0.14% for prior quarter;
● The allowance for credit losses to total loans increased to 0.78% at the end of the third quarter compared to 0.72% for the prior quarter; and
● The Company's total risk based capital ratio increased to 14.76% at the end of the third quarter compared to 14.46% for the prior quarter.

Page 2

Management's Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the third quarter of 2024 was $79.9 million compared to $75.5 million for the second quarter of 2024 and $76.5 million for the third quarter of 2023.

The table below provides a reconciliation of the reported net interest margin ("NIM") and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.

(Dollars in thousands)

Q3 2024

Q2 2024

Q3 2023

Net interest income

$

79,924

$

75,502

$

76,479

Purchase accounting amortization (accretion) on loans ("PAA")

(266)

(101)

186

Adjusted net interest income excluding PAA on loans (non-GAAP)

$

79,658

$

75,401

$

76,665

Average interest-earning assets

$

12,734,246

$

12,624,556

$

12,984,061

NIM (1)

2.50

%

2.41

%

2.34

%

Adjusted NIM excluding PAA on loans (non-GAAP) (2)

2.49

%

2.40

%

2.34

%

(1) NIM represents net interest income divided by average interest-earning assets.
(2) Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets.

During the quarter ended June 30, 2024, there was a recovery of interest income from a loan that was previously on non-accrual status in the amount of $1.3 million. Excluding the impact of this item, the second quarter NIM was 2.37%.

Loan Portfolio

The ending WAR on the total loan portfolio was 5.40% at September 30, 2024, a 1 basis point increase compared to the ending WAR of 5.39% on the total loan portfolio at June 30, 2024.

Outlined below are loan balances and WARs for the quarter ended as indicated.

September 30, 2024

June 30, 2024

September 30, 2023

(Dollars in thousands)

Balance

WAR (1)

Balance

WAR (1)

Balance

WAR (1)

Loans held for investment balances at period end:

Business loans (2)

$

2,653,624

6.82

%

$

2,530,896

6.92

%

$

2,271,768

6.72

%

One-to-four family residential, including condominium and cooperative apartment

934,209

4.65

906,949

4.55

892,869

4.39

Multifamily residential and residential mixed-use (3)(4)

3,866,931

4.60

3,920,354

4.59

4,102,024

4.45

Non-owner-occupied commercial real estate

3,281,923

5.25

3,315,100

5.25

3,374,281

5.09

Acquisition, development, and construction

149,299

8.46

144,860

8.96

203,402

8.92

Other loans

6,058

10.71

6,699

3.39

6,267

6.28

Loans held for investment

$

10,892,044

5.40

%

$

10,824,858

5.39

%

$

10,850,611

5.20

%

(1) WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.

(2) Business loans include commercial and industrial loans and owner-occupied commercial real estate loans.

(3) Includes loans underlying multifamily cooperatives.

(4) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Outlined below are the loan originations, for the quarter ended as indicated.

(Dollars in millions)

Q3 2024

Q2 2024

Q3 2023

Loan originations

$

122.7

$

162.4

$

153.4

Page 3

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at September 30, 2024 were $11.42 billion, compared to $11.03 billion at June 30, 2024 and $10.53 billion at December 31, 2023.

Total Federal Home Loan Bank advances were $508.0 million at September 30, 2024 compared to $633.0 million at June 30, 2024 and $1.31 billion at December 31, 2023.

Mr. Lubow commented, "During the third quarter of 2024, we continued our strategy of utilizing core deposit growth to reduce our wholesale funding position."

Non-Interest Income

Non-interest income was $7.6 million during the third quarter of 2024, $11.8 million during the second quarter of 2024, and $7.9 million during the third quarter of 2023. Included in non-interest income for the second quarter of 2024, was income related to the sale of premises of approximately $3.7 million.

Non-Interest Expense

Total non-interest expense was $57.7 million during the third quarter of 2024, $55.7 million during the second quarter of 2024, and $59.5 million during the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $57.4 million during the third quarter of 2024, $55.4 million during the second quarter of 2024, and $50.6 million during the third quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

Mr. Lubow commented, "As we have communicated previously, the increase in non-interest expense has been due to the significant investments and hires in the Private and Commercial Bank and the Middle Market C&I Lending operations. Third quarter results reflected a fully-loaded run-rate for these initiatives and we expect to keep our expense base relatively flat in the fourth quarter of 2024."

The ratio of non-interest expense to average assets was 1.71% during the third quarter of 2024, compared to 1.66% during the linked quarter and 1.73% for the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.70% during the third quarter of 2024, compared to 1.65% during the linked quarter and 1.48% for the third quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

The efficiency ratio was 65.9% during the third quarter of 2024, compared to 63.8% during the linked quarter and 70.5% during the third quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense,loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 65.6% during the third quarter of 2024, compared to 65.9% during the linked quarter and 59.7% during the third quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

Income Tax Expense

The reported effective tax rate for the third quarter of 2024 was 26.9% compared to 29.0% for the second quarter of 2024, and 35.1% for the third quarter of 2023.

Credit Quality

Non-performing loans were $49.5 million at September 30, 2024, compared to $24.8 million for the prior quarter.

A credit loss provision of $11.6 million was recorded during the third quarter of 2024, compared to a credit loss provision of $5.6 million during the second quarter of 2024, and a credit loss provision of $1.8 million during the third quarter of 2023.

Capital Management

The Company's and the Bank's regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of September 30, 2024. All risk-based regulatory capital ratios increased in the third quarter of 2024.

Dividends per common share were $0.25 during the third and second quarters of 2024, respectively.

Book value per common share was $29.31 at September 30, 2024 compared to $28.97 at June 30, 2024.

Page 4

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.22 at September 30, 2024 compared to $24.87 at June 30, 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 9:00 a.m. (ET) on Tuesday, October 22, 2024, during which CEO Lubow will discuss the Company's third quarter 2024 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/hfnjf6ym.To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI017781a02def49c0ad228b72ba201600. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/hfnjf6ym.

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $13.7 billion in assets and the number one deposit market share among community banks on Greater Long Island(1).

(1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "annualized," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company's loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company's financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company's business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and updates set forth in the Company's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Contact: Avinash Reddy

Senior Executive Vice President - Chief Financial Officer

718-782-6200 extension 5909

Page 5

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)

September 30,

June 30,

December 31,

2024

2024

2023

Assets:

Cash and due from banks

$

626,056

$

413,983

$

457,547

Securities available-for-sale, at fair value

774,608

819,222

886,240

Securities held-to-maturity

592,414

588,000

594,639

Loans held for sale

13,098

14,766

10,159

Loans held for investment, net:

Business loans (1)

2,653,624

2,530,896

2,310,379

One-to-four family and cooperative/condominium apartment

934,209

906,949

889,236

Multifamily residential and residential mixed-use (2)(3)

3,866,931

3,920,354

4,017,703

Non-owner-occupied commercial real estate

3,281,923

3,315,100

3,381,842

Acquisition, development and construction

149,299

144,860

168,513

Other loans

6,058

6,699

5,755

Allowance for credit losses

(85,221)

(77,812)

(71,743)

Total loans held for investment, net

10,806,823

10,747,046

10,701,685

Premises and fixed assets, net

35,066

36,054

44,868

Premises held for sale

-

-

905

Restricted stock

64,235

68,445

98,750

Bank Owned Life Insurance ("BOLI")

372,367

354,761

349,816

Goodwill

155,797

155,797

155,797

Other intangible assets

4,181

4,467

5,059

Operating lease assets

48,537

51,703

52,729

Derivative assets

105,636

134,489

122,132

Accrued interest receivable

54,578

55,588

55,666

Other assets

93,133

104,442

100,013

Total assets

$

13,746,529

$

13,548,763

$

13,636,005

Liabilities:

Non-interest-bearing checking (excluding mortgage escrow deposits)

$

3,231,160

$

3,012,481

$

2,884,378

Interest-bearing checking

938,070

633,721

515,987

Savings (excluding mortgage escrow deposits)

1,845,266

2,340,222

2,335,354

Money market

3,898,509

3,607,090

3,125,996

Certificates of deposit

1,416,467

1,382,271

1,607,683

Deposits (excluding mortgage escrow deposits)

11,329,472

10,975,785

10,469,398

Non-interest-bearing mortgage escrow deposits

87,841

52,647

61,121

Interest-bearing mortgage escrow deposits

5

2

136

Total mortgage escrow deposits

87,846

52,649

61,257

FHLBNY advances

508,000

633,000

1,313,000

Subordinated debt, net

272,300

262,814

200,196

Derivative cash collateral

68,960

130,090

108,100

Operating lease liabilities

51,362

54,530

55,454

Derivative liabilities

98,108

122,567

121,265

Other liabilities

66,552

66,732

81,110

Total liabilities

12,482,600

12,298,167

12,409,780

Stockholders' equity:

Preferred stock, Series A

116,569

116,569

116,569

Common stock

416

416

416

Additional paid-in capital

488,607

488,760

494,454

Retained earnings

827,690

826,080

813,007

Accumulated other comprehensive loss ("AOCI"), net of deferred taxes

(72,970)

(82,780)

(91,579)

Unearned equity awards

(10,111)

(12,023)

(8,622)

Treasury stock, at cost

(86,272)

(86,426)

(98,020)

Total stockholders' equity

1,263,929

1,250,596

1,226,225

Total liabilities and stockholders' equity

$

13,746,529

$

13,548,763

$

13,636,005

(1)Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program ("PPP") loans.

(2)Includes loans underlying multifamily cooperatives.

(3) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Page 6

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands except share and per share amounts)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2024

2024

2023

2024

2023

Interest income:

Loans

$

151,828

$

147,099

$

142,995

$

442,492

$

409,744

Securities

7,766

7,907

7,916

23,553

24,261

Other short-term investments

4,645

4,412

6,930

18,621

16,599

Total interest income

164,239

159,418

157,841

484,666

450,604

Interest expense:

Deposits and escrow

74,025

72,878

62,507

219,972

152,395

Borrowed funds

8,764

9,033

16,925

32,494

50,855

Derivative cash collateral

1,526

2,005

1,930

5,244

4,904

Total interest expense

84,315

83,916

81,362

257,710

208,154

Net interest income

79,924

75,502

76,479

226,956

242,450

Provision (recovery) for credit losses

11,603

5,585

1,806

22,398

(950)

Net interest income after provision (recovery)

68,321

69,917

74,673

204,558

243,400

Non-interest income:

Service charges and other fees

4,267

3,972

3,963

12,783

12,633

Title fees

190

294

291

617

829

Loan level derivative income

132

1,085

783

1,623

6,353

BOLI income

2,606

2,484

2,317

7,551

7,332

Gain on sale of Small Business Administration ("SBA") loans

19

113

335

385

1,061

Gain on sale of residential loans

38

27

21

142

103

Fair value change in equity securities and loans held for sale

39

(416)

(299)

(1,219)

(1,079)

Net loss on sale of securities

-

-

-

-

(1,447)

Gain (loss) on sale of other assets

2

3,695

(22)

6,665

(22)

Other

338

554

539

1,359

1,571

Total non-interest income

7,631

11,808

7,928

29,906

27,334

Non-interest expense:

Salaries and employee benefits

36,132

32,184

30,520

100,353

87,054

Severance

-

-

8,562

42

9,068

Occupancy and equipment

7,448

7,409

7,277

22,225

21,794

Data processing costs

4,544

4,405

4,309

13,262

12,744

Marketing

1,629

1,637

2,079

4,763

5,016

Professional services

2,036

2,766

1,277

6,269

4,876

Federal deposit insurance premiums

2,105

2,250

1,866

6,594

5,613

Loss on extinguishment of debt

1

-

-

454

-

Amortization of other intangible assets

286

285

349

878

1,075

Other

3,548

4,758

3,284

11,094

11,944

Total non-interest expense

57,729

55,694

59,523

165,934

159,184

Income before taxes

18,223

26,031

23,078

68,530

111,550

Income tax expense

4,896

7,552

8,093

19,033

31,764

Net income

13,327

18,479

14,985

49,497

79,786

Preferred stock dividends

1,822

1,822

1,822

5,465

5,465

Net income available to common stockholders

$

11,505

$

16,657

$

13,163

$

44,032

$

74,321

Earnings per common share ("EPS"):

Basic

$

0.29

$

0.43

$

0.34

$

1.13

$

1.92

Diluted

$

0.29

$

0.43

$

0.34

$

1.13

$

1.92

Average common shares outstanding for diluted EPS

38,366,619

38,329,485

38,203,961

38,317,223

38,177,704

​

Page 7

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED SELECTED FINANCIAL HIGHLIGHTS

(Dollars in thousands except per share amounts)

At or For the Three Months Ended

At or For the Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2024

2024

2023

2024

2023

Per Share Data:

Reported EPS (Diluted)

$

0.29

$

0.43

$

0.34

$

1.13

$

1.92

Cash dividends paid per common share

0.25

0.25

0.25

0.75

0.74

Book value per common share

29.31

28.97

28.03

29.31

28.03

Tangible common book value per share (1)

25.22

24.87

23.87

25.22

23.87

Common shares outstanding

39,152

39,148

38,811

39,152

38,811

Dividend payout ratio

86.21

%

58.14

%

73.53

%

66.37

%

38.54

%

Performance Ratios (Based upon Reported Net Income):

Return on average assets

0.39

%

0.55

%

0.44

%

0.49

%

0.78

%

Return on average equity

4.19

5.88

4.91

5.24

8.78

Return on average tangible common equity (1)

4.70

6.88

5.69

6.06

10.73

Net interest margin

2.50

2.41

2.34

2.37

2.52

Non-interest expense to average assets

1.71

1.66

1.73

1.63

1.56

Efficiency ratio

65.9

63.8

70.5

64.6

59.0

Effective tax rate

26.87

29.01

35.07

27.77

28.48

Balance Sheet Data:

Average assets

$

13,502,753

$

13,418,441

$

13,759,493

$

13,571,710

$

13,623,570

Average interest-earning assets

12,734,246

12,624,556

12,984,061

12,791,233

12,853,701

Average tangible common equity (1)

996,578

979,611

943,805

981,614

933,072

Loan-to-deposit ratio at end of period (2)

95.4

98.2

102.0

95.4

102.0

Capital Ratios and Reserves - Consolidated: (3)

Tangible common equity to tangible assets (1)

7.27

%

7.27

%

6.87

%

Tangible equity to tangible assets (1)

8.13

8.14

7.73

Tier 1 common equity ratio

10.16

10.06

9.67

Tier 1 risk-based capital ratio

11.28

11.17

10.76

Total risk-based capital ratio

14.76

14.46

13.33

Tier 1 leverage ratio

8.76

8.78

8.38

Consolidated CRE concentration ratio (4)

487

499

547

Allowance for credit losses/ Total loans

0.78

0.72

0.67

Allowance for credit losses/ Non-performing loans

172.29

313.21

311.16

(1) See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets.

(2) Total deposits include mortgage escrow deposits, which fluctuate seasonally.

(3)

September 30, 2024 ratios are preliminary pending completion and filing of the Company's regulatory reports.

(4) The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The September 30, 2024 ratio is preliminary pending completion and filing of the Company's regulatory reports.

​

Page 8

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME

(Dollars in thousands)

Three Months Ended

September 30, 2024

June 30, 2024

September 30, 2023

Average

Average

Average

Average

Yield/

Average

Yield/

Average

Yield/

Balance

Interest

Cost

Balance

Interest

Cost

Balance

Interest

Cost

Assets:

Interest-earning assets:

Business loans (1)

$

2,609,934

$

46,656

7.11

%

$

2,400,219

$

42,933

7.19

%

$

2,260,203

$

38,384

6.74

%

One-to-four family residential, including condo and coop

924,150

11,024

4.75

886,037

9,968

4.52

879,688

9,165

4.13

Multifamily residential and residential mixed-use

3,902,220

45,790

4.67

3,958,617

45,775

4.65

4,114,476

46,099

4.45

Non-owner-occupied commercial real estate

3,297,760

44,804

5.40

3,359,004

44,728

5.36

3,382,927

44,184

5.18

Acquisition, development, and construction

147,875

3,505

9.43

164,283

3,638

8.91

222,039

5,075

9.07

Other loans

4,891

49

3.99

5,100

57

4.50

6,156

88

5.67

Securities

1,493,492

7,766

2.07

1,537,487

7,907

2.07

1,619,960

7,916

1.94

Other short-term investments

353,924

4,645

5.22

313,809

4,412

5.65

498,612

6,930

5.51

Total interest-earning assets

12,734,246

164,239

5.13

%

12,624,556

159,418

5.08

%

12,984,061

157,841

4.82

%

Non-interest-earning assets

768,507

793,885

775,432

Total assets

$

13,502,753

$

13,418,441

$

13,759,493

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Interest-bearing checking (2)

$

798,024

$

4,635

2.31

%

$

631,403

$

1,499

0.95

%

$

786,892

$

2,896

1.46

%

Money market

3,771,562

36,841

3.89

3,495,989

33,193

3.82

2,975,267

24,275

3.24

Savings (2)

2,102,282

19,492

3.69

2,336,202

23,109

3.98

2,342,424

20,316

3.44

Certificates of deposit

1,232,984

13,057

4.21

1,393,678

15,077

4.35

1,494,491

15,020

3.99

Total interest-bearing deposits

7,904,852

74,025

3.73

7,857,272

72,878

3.73

7,599,074

62,507

3.26

FHLBNY advances

528,652

4,455

3.35

671,242

6,429

3.85

1,250,717

14,370

4.56

Subordinated debt, net

271,450

4,307

6.31

202,232

2,604

5.18

200,232

2,553

5.06

Other short-term borrowings

131

2

6.07

-

-

-

120

2

6.61

Total borrowings

800,233

8,764

4.36

873,474

9,033

4.16

1,451,069

16,925

4.63

Derivative cash collateral

91,305

1,526

6.65

145,702

2,005

5.53

156,795

1,930

4.88

Total interest-bearing liabilities

8,796,390

84,315

3.81

%

8,876,448

83,916

3.80

%

9,206,938

81,362

3.51

%

Non-interest-bearing checking (2)

3,209,502

3,042,382

3,065,186

Other non-interest-bearing liabilities

223,546

242,980

265,559

Total liabilities

12,229,438

12,161,810

12,537,683

Stockholders' equity

1,273,315

1,256,631

1,221,810

Total liabilities and stockholders' equity

$

13,502,753

$

13,418,441

$

13,759,493

Net interest income

$

79,924

$

75,502

$

76,479

Net interest rate spread

1.32

%

1.28

%

1.31

%

Net interest margin

2.50

%

2.41

%

2.34

%

Deposits (including non-interest-bearing checking accounts) (2)

$

11,114,354

$

74,025

2.65

%

$

10,899,654

$

72,878

2.69

%

$

10,664,260

$

62,507

2.33

%

(1)Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.

(2)Includes mortgage escrow deposits.

Page 9

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS

(Dollars in thousands)

At or For the Three Months Ended

September 30,

June 30,

September 30,

Asset Quality Detail

2024

2024

2023

Non-performing loans ("NPLs")

Business loans (1)

$

25,411

$

20,287

$

19,555

One-to-four family residential, including condominium and cooperative apartment

3,880

3,884

2,874

Multifamily residential and residential mixed-use

-

-

-

Non-owner-occupied commercial real estate

19,509

15

15

Acquisition, development, and construction

657

657

657

Other loans

6

-

219

Total Non-accrual loans

$

49,463

$

24,843

$

23,320

Total Non-performing assets ("NPAs")

$

49,463

$

24,843

$

23,320

Total loans 90 days delinquent and accruing ("90+ Delinquent")

$

-

$

-

$

-

NPAs and 90+ Delinquent

$

49,463

$

24,843

$

23,320

NPAs and 90+ Delinquent / Total assets

0.36%

0.18%

0.17%

Net charge-offs ("NCOs")

$

4,199

$

3,640

$

4,864

NCOs / Average loans (2)

0.15%

0.14%

0.18%

(1)Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.

(2)Calculated based on annualized NCOs to average loans, excluding loans held for sale.

Page 10

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(Dollars in thousands except per share amounts)

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company's management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company's operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company's performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net (gain) loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2024

2024

2023

2024

2023

Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders

Reported net income available to common stockholders

$

11,505

$

16,657

$

13,163

$

44,032

$

74,321

Adjustments to net income (1):

Fair value change in equity securities and loans held for sale

(39)

416

299

1,219

1,079

Net (gain) loss on sale of securities and other assets

(2)

(3,695)

22

(6,665)

1,469

Severance

-

-

8,562

42

9,068

Loss on extinguishment of debt

1

-

-

454

-

Income tax effect of adjustments

13

1,043

(176)

1,574

(985)

Adjusted net income available to common stockholders (non-GAAP)

$

11,478

$

14,421

$

21,870

$

40,656

$

84,952

Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)

Adjusted EPS (Diluted)

$

0.29

$

0.37

$

0.56

$

1.04

$

2.19

Adjusted return on average assets

0.39

%

0.48

%

0.69

%

0.45

%

0.88

%

Adjusted return on average equity

4.18

5.17

7.76

4.89

9.95

Adjusted return on average tangible common equity

4.69

5.97

9.38

5.60

12.25

Adjusted non-interest expense to average assets

1.70

1.65

1.48

1.62

1.46

Adjusted efficiency ratio

65.6

65.9

59.7

65.5

54.7

(1) Adjustments to net income are taxed at the Company's approximate statutory tax rate.

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

Three Months Ended

Nine Months Ended

​

September 30,

June 30,

September 30,

September 30,

September 30,

​

2024

2024

2023

2024

2023

Operating expense as a % of average assets - as reported

1.71

%

1.66

%

1.73

%

1.63

%

1.56

%

Loss on extinguishment of debt

-

-

-

-

-

Severance

-

-

(0.25)

-

(0.09)

Amortization of other intangible assets

(0.01)

(0.01)

-

(0.01)

(0.01)

Adjusted operating expense as a % of average assets (non-GAAP)

1.70

%

1.65

%

1.48

%

1.62

%

1.46

%

Page 11

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

September 30,

2024

2024

2023

2024

2023

Efficiency ratio - as reported (non-GAAP) (1)

65.9

%

63.8

%

70.5

%

64.6

%

59.0

%

Non-interest expense - as reported

$

57,729

$

55,694

$

59,523

$

165,934

$

159,184

Severance

-

-

(8,562)

(42)

(9,068)

Loss on extinguishment of debt

(1)

-

-

(454)

-

Amortization of other intangible assets

(286)

(285)

(349)

(878)

(1,075)

Adjusted non-interest expense (non-GAAP)

$

57,442

$

55,409

$

50,612

$

164,560

$

149,041

Net interest income - as reported

$

79,924

$

75,502

$

76,479

$

226,956

$

242,450

Non-interest income - as reported

$

7,631

$

11,808

$

7,928

$

29,906

$

27,334

Fair value change in equity securities and loans held for sale

(39)

416

299

1,219

1,079

Net (gain) loss on sale of securities and other assets

(2)

(3,695)

22

(6,665)

1,469

Adjusted non-interest income (non-GAAP)

$

7,590

$

8,529

$

8,249

$

24,460

$

29,882

Adjusted total revenues for adjusted efficiency ratio (non-GAAP)

$

87,514

$

84,031

$

84,728

$

251,416

$

272,332

Adjusted efficiency ratio (non-GAAP) (2)

65.6

%

65.9

%

59.7

%

65.5

%

54.7

%

(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
(2) The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.

The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):

September 30,

June 30,

September 30,

2024

2024

2023

Reconciliation of Tangible Assets:

Total assets

$

13,746,529

$

13,548,763

$

13,651,405

Goodwill

(155,797)

(155,797)

(155,797)

Other intangible assets

(4,181)

(4,467)

(5,409)

Tangible assets (non-GAAP)

$

13,586,551

$

13,388,499

$

13,490,199

Reconciliation of Tangible Common Equity - Consolidated:

Total stockholders' equity

$

1,263,929

$

1,250,596

$

1,204,344

Goodwill

(155,797)

(155,797)

(155,797)

Other intangible assets

(4,181)

(4,467)

(5,409)

Tangible equity (non-GAAP)

1,103,951

1,090,332

1,043,138

Preferred stock, net

(116,569)

(116,569)

(116,569)

Tangible common equity (non-GAAP)

$

987,382

$

973,763

$

926,569

Common shares outstanding

39,152

39,148

38,811

Tangible common equity to tangible assets (non-GAAP)

7.27

%

7.27

%

6.87

%

Tangible equity to tangible assets (non-GAAP)

8.13

8.14

7.73

Book value per common share

$

29.31

$

28.97

$

28.03

Tangible common book value per share (non-GAAP)

25.22

24.87

23.87