Dime Community Bancshares Inc.

07/23/2024 | Press release | Distributed by Public on 07/23/2024 05:30

Dime Community Bancshares, Inc. Reports Second Quarter 2024 Results With Earnings Per Share Increasing By 5% Versus the Prior Quarter Form 8 K

Dime Community Bancshares, Inc. Reports Second Quarter 2024 Results With Earnings Per Share Increasing By 5% Versus the Prior Quarter

Strong Core Deposit Growth Drives 20 Basis Points of Net Interest Margin Expansion

Deposit and Business Loan Growth Driven by Execution of Growth Plan;

Successfully Onboarded Eight New Deposit Groups in the Second Quarter

​
Subordinated Debt Offering Bolsters Total Capital Ratio to 14.5%

Hauppauge, NY, July 23, 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 $16.7 million for the quarter ended June 30, 2024, or $0.43 per diluted common share, compared to $15.9 million, or $0.41 per diluted common share, for the quarter ended March 31, 2024, and $25.7 million, or $0.66 per diluted common share for the quarter ended June 30, 2023.

Stuart H. Lubow, President and Chief Executive Officer ("CEO") of the Company, stated, "We continue to execute on our growth plan, which prioritizes core deposit growth and diversifying our balance sheet. The deposit-gathering Groups in our Private and Commercial Bank have grown their portfolio to approximately $1 billion. The growth in low-cost core deposits drove a significant expansion in our Net Interest Margin for the second quarter. In addition, the investments and hires we have made over the last two years in our Middle Market C&I lending operations are beginning to pay dividends as evidenced by the strong growth in our Business Loan portfolio. Finally, with the successful completion of our Subordinated Debt offering, Dime's Total Risk Based Capital Ratio is now best-in-class when compared to other community and regional banks in our footprint with over $10 billion of assets. With a Total Risk Based Capital Ratio of 14.5%, we are well positioned to take advantage of growth opportunities in the future."

Highlights for the Second Quarter of 2024 Included:

● Core deposits (excluding brokered and time deposits) increased $302.4 million compared to the first quarter of 2024;
● The ratio of average non-interest-bearing deposits to average total deposits for the second quarter was 28% compared to 27% for the first quarter of 2024;
● The cost of total deposits declined by 1 basis point versus the prior quarter;
● Business loans increased by over $200 million versus the prior quarter;
● The net interest margin increased to 2.41% for the second quarter of 2024 compared to 2.21% for the prior quarter;
● Non-performing assets and loans 90 days past due declined by 29% versus the prior quarter and represented only 0.18% of total assets as of June 30, 2024;
● The Company raised $65 million of gross proceeds from the issuance of subordinated notes in the second quarter; the offering increased the Company's Total Risk Based Capital Ratio to 14.5%.

Page 2

Management's Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the second quarter of 2024 was $75.5 million compared to $71.5 million for the first quarter of 2024 and $80.2 million for the second 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)

Q2 2024

Q1 2024

Q2 2023

Net interest income

$

75,502

$

71,530

$

80,219

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

(101)

(82)

58

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

$

75,401

$

71,448

$

80,277

Average interest-earning assets

$

12,624,556

$

13,015,755

$

12,888,522

NIM (1)

2.41

%

2.21

%

2.50

%

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

2.40

%

2.21

%

2.50

%

(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. This recovery of interest income had a 4 basis point favorable impact on the second quarter NIM.

Loan Portfolio

The ending weighted average rate ("WAR") on the total loan portfolio was 5.39% at June 30, 2024, a 5 basis point increase compared to the ending WAR of 5.34% on the total loan portfolio at March 31, 2024.

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

June 30, 2024

March 31, 2024

June 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)

$

2,530,896

6.92

%

$

2,327,403

6.90

%

$

2,250,108

6.56

%

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

906,949

4.55

873,671

4.48

855,980

4.17

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

3,920,354

4.59

3,996,654

4.57

4,132,358

4.38

Non-owner-occupied commercial real estate

3,315,100

5.25

3,386,333

5.24

3,406,232

5.04

Acquisition, development, and construction

144,860

8.96

175,352

8.40

225,580

8.99

Other loans

6,699

3.39

5,170

7.10

6,157

6.74

Loans held for investment

$

10,824,858

5.39

%

$

10,764,583

5.34

%

$

10,876,415

5.12

%

(1) Weighted average rate 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 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.

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

(Dollars in millions)

Q2 2024

Q1 2024

Q2 2023

Loan originations

$

162.4

$

98.3

$

296.6

Page 3

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at June 30, 2024 were $11.03 billion, compared to $10.90 billion at March 31, 2024 and $10.53 billion at December 31, 2023.

On June 28, 2024, the Company raised $65.0 million of gross proceeds from a registered public offering of its 9.000% fixed-to-floating rate subordinated notes due 2034 (the "Notes"). Subsequently, on July 9, 2024, the Company issued and sold an additional $9.8 million of Notes, pursuant to an overallotment option granted to the underwriters of the offering. Including the overallotment option, the total gross proceeds from the offering were $74.8 million, before discounts and estimated offering expenses.

Total Federal Home Loan Bank advances were $633.0 million at June 30, 2024 compared to $773.0 million at March 31, 2024 and $1.31 billion at December 31, 2023. Mr. Lubow commented, "During the second 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 $11.8 million during the second quarter of 2024, $10.5 million during the first quarter of 2024, and $10.4 million during the second quarter of 2023. Included in non-interest income for the second and the first quarter of 2024, was income related to the sale of premises of approximately $3.7 million and $3.0 million, respectively.

Non-Interest Expense

Total non-interest expense was $55.7 million during the second quarter of 2024, $52.5 million during the first quarter of 2024, and $52.2 million during the second 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 $55.4 million during the second quarter of 2024, $51.7 million during the first quarter of 2024, and $51.4 million during the second quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

Mr. Lubow commented, "The increase in non-interest expense on a year-over-year basis has been due to the significant investments and hires the Company has made in its Private and Commercial Bank, including the hiring and onboarding of 15 deposit-gathering Groups, and its Middle Market C&I Lending operations, including a new Healthcare vertical and a Not-for Profit vertical. The new bankers we have hired have a long runway ahead of them and over time we expect them to contribute meaningfully to the revenue growth of the Company."

The ratio of non-interest expense to average assets was 1.66% during the second quarter of 2024, compared to 1.52% during the linked quarter and 1.53% for the second 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 1.65% during the second quarter of 2024, compared to 1.50% during the linked quarter and 1.51% for the second quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

The efficiency ratio was 63.8% during the second quarter of 2024, compared to 64.0% during the linked quarter and 57.6% during the second 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 65.9% during the second quarter of 2024, compared to 64.7% during the linked quarter and 56.2% during the second 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 second quarter of 2024 was 29.0% compared to 27.1% for the first quarter of 2024, and 26.8% for the second quarter of 2023. The effective tax rate for the third quarter of 2024 is expected to be approximately 27%.

Credit Quality

Non-performing loans decreased 29% on a linked quarter basis to $24.8 million at June 30, 2024.

A credit loss provision of $5.6 million was recorded during the second quarter of 2024, compared to a credit loss provision of $5.2 million during the first quarter of 2024, and a credit loss provision of $892 thousand during the second 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 June 30, 2024. All risk-based regulatory capital ratios increased in the second quarter of 2024. Mr. Lubow commented, "Having fortified our capital base with the issuance of subordinated debt, we are well positioned to support all of our customers' needs and capitalize on the significant disruption in our marketplace caused by various bank failures and mergers."

Page 4

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

Book value per common share was $28.97 at June 30, 2024 compared to $28.84 at March 31, 2024.

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $24.87 at June 30, 2024 compared to $24.72 at March 31, 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, July 23, 2024, during which CEO Lubow will discuss the Company's second 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/vesm9tv4.To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BIed4082edb56740ce983e3a3e5c43d5e5. 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/vesm9tv4.

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 $13.5 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)

June 30,

March 31,

December 31,

2024

2024

2023

Assets:

Cash and due from banks

$

413,983

$

370,852

$

457,547

Securities available-for-sale, at fair value

819,222

859,216

886,240

Securities held-to-maturity

588,000

589,331

594,639

Loans held for sale

14,766

8,973

10,159

Loans held for investment, net:

Business loans (1)

2,530,896

2,327,403

2,310,379

One-to-four family and cooperative/condominium apartment

906,949

873,671

889,236

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

3,920,354

3,996,654

4,017,703

Non-owner-occupied commercial real estate

3,315,100

3,386,333

3,381,842

Acquisition, development and construction

144,860

175,352

168,513

Other loans

6,699

5,170

5,755

Allowance for credit losses

(77,812)

(76,068)

(71,743)

Total loans held for investment, net

10,747,046

10,688,515

10,701,685

Premises and fixed assets, net

36,054

44,501

44,868

Premises held for sale

-

-

905

Restricted stock

68,445

74,346

98,750

Bank Owned Life Insurance ("BOLI")

354,761

352,277

349,816

Goodwill

155,797

155,797

155,797

Other intangible assets

4,467

4,753

5,059

Operating lease assets

51,703

51,988

52,729

Derivative assets

134,489

135,162

122,132

Accrued interest receivable

55,588

55,369

55,666

Other assets

104,442

110,012

100,013

Total assets

$

13,548,763

$

13,501,092

$

13,636,005

Liabilities:

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

$

3,012,481

$

2,819,481

$

2,884,378

Interest-bearing checking

633,721

635,640

515,987

Savings (excluding mortgage escrow deposits)

2,340,222

2,347,114

2,335,354

Money market

3,607,090

3,440,083

3,125,996

Certificates of deposit

1,382,271

1,555,157

1,607,683

Deposits (excluding mortgage escrow deposits)

10,975,785

10,797,475

10,469,398

Non-interest-bearing mortgage escrow deposits

52,647

101,229

61,121

Interest-bearing mortgage escrow deposits

2

173

136

Total mortgage escrow deposits

52,649

101,402

61,257

FHLBNY advances

633,000

773,000

1,313,000

Other short-term borrowings

-

-

-

Subordinated debt, net

262,814

200,174

200,196

Derivative cash collateral

130,090

132,900

108,100

Operating lease liabilities

54,530

54,727

55,454

Derivative liabilities

122,567

122,112

121,265

Other liabilities

66,732

79,931

81,110

Total liabilities

12,298,167

12,261,721

12,409,780

Stockholders' equity:

Preferred stock, Series A

116,569

116,569

116,569

Common stock

416

416

416

Additional paid-in capital

488,760

492,834

494,454

Retained earnings

826,080

819,130

813,007

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

(82,780)

(85,466)

(91,579)

Unearned equity awards

(12,023)

(10,191)

(8,622)

Treasury stock, at cost

(86,426)

(93,921)

(98,020)

Total stockholders' equity

1,250,596

1,239,371

1,226,225

Total liabilities and stockholders' equity

$

13,548,763

$

13,501,092

$

13,636,005

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

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2024

2024

2023

2024

2023

Interest income:

Loans

$

147,099

$

143,565

$

138,310

$

290,664

$

266,749

Securities

7,907

7,880

7,914

15,787

16,345

Other short-term investments

4,412

9,564

5,867

13,976

9,669

Total interest income

159,418

161,009

152,091

320,427

292,763

Interest expense:

Deposits and escrow

72,878

73,069

52,616

145,947

89,888

Borrowed funds

9,033

14,697

17,759

23,730

33,930

Derivative cash collateral

2,005

1,713

1,497

3,718

2,974

Total interest expense

83,916

89,479

71,872

173,395

126,792

Net interest income

75,502

71,530

80,219

147,032

165,971

Provision (recovery) for credit losses

5,585

5,210

892

10,795

(2,756)

Net interest income after provision (recovery)

69,917

66,320

79,327

136,237

168,727

Non-interest income:

Service charges and other fees

3,972

4,544

4,856

8,516

8,670

Title fees

294

133

246

427

538

Loan level derivative income

1,085

406

2,437

1,491

5,570

BOLI income

2,484

2,461

2,852

4,945

5,015

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

113

253

210

366

726

Gain on sale of residential loans

27

77

34

104

82

Fair value change in equity securities and loans held for sale

(416)

(842)

(780)

(1,258)

(780)

Net loss on sale of securities

-

-

-

-

(1,447)

Gain on sale of other assets

3,695

2,968

-

6,663

-

Other

554

467

550

1,021

1,032

Total non-interest income

11,808

10,467

10,405

22,275

19,406

Non-interest expense:

Salaries and employee benefits

32,184

32,037

29,900

64,221

56,534

Severance

-

42

481

42

506

Occupancy and equipment

7,409

7,368

7,144

14,777

14,517

Data processing costs

4,405

4,313

4,197

8,718

8,435

Marketing

1,637

1,497

1,488

3,134

2,937

Professional services

2,766

1,467

1,676

4,233

3,599

Federal deposit insurance premiums

2,250

2,239

1,874

4,489

3,747

Loss on extinguishment of debt

-

453

-

453

-

Amortization of other intangible assets

285

307

349

592

726

Other

4,758

2,788

5,077

7,546

8,660

Total non-interest expense

55,694

52,511

52,186

108,205

99,661

Income before taxes

26,031

24,276

37,546

50,307

88,472

Income tax expense

7,552

6,585

10,048

14,137

23,671

Net income

18,479

17,691

27,498

36,170

64,801

Preferred stock dividends

1,822

1,821

1,822

3,643

3,643

Net income available to common stockholders

$

16,657

$

15,870

$

25,676

$

32,527

$

61,158

Earnings per common share ("EPS"):

Basic

$

0.43

$

0.41

$

0.66

$

0.84

$

1.58

Diluted

$

0.43

$

0.41

$

0.66

$

0.84

$

1.58

Average common shares outstanding for diluted EPS

38,329,485

38,255,559

38,175,993

38,292,253

38,164,359

​

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 Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2024

2024

2023

2024

2023

Per Share Data:

Reported EPS (Diluted)

$

0.43

$

0.41

$

0.66

$

0.84

$

1.58

Cash dividends paid per common share

0.25

0.25

0.25

0.50

0.49

Book value per common share

28.97

28.84

27.99

28.97

27.99

Tangible common book value per share (1)

24.87

24.72

23.82

24.87

23.82

Common shares outstanding

39,148

38,932

38,803

39,148

38,803

Dividend payout ratio

58.14

%

60.98

%

37.88

%

59.52

%

31.01

%

Performance Ratios (Based upon Reported Net Income):

Return on average assets

0.55

%

0.51

%

0.81

%

0.53

%

0.96

%

Return on average equity

5.88

5.68

9.03

5.78

10.75

Return on average tangible common equity (1)

6.88

6.64

11.04

6.76

13.30

Net interest margin

2.41

2.21

2.50

2.31

2.62

Non-interest expense to average assets

1.66

1.52

1.53

1.59

1.47

Efficiency ratio

63.8

64.0

57.6

63.9

53.8

Effective tax rate

29.01

27.13

26.76

28.10

26.76

Balance Sheet Data:

Average assets

$

13,418,441

$

13,794,924

$

13,658,068

$

13,606,682

$

13,554,483

Average interest-earning assets

12,624,556

13,015,755

12,888,522

12,820,156

12,787,441

Average tangible common equity (1)

979,611

968,719

940,098

974,165

927,616

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

98.2

98.8

103.4

98.2

103.4

Capital Ratios and Reserves - Consolidated: (3)

Tangible common equity to tangible assets (1)

7.27

%

7.21

%

6.78

%

Tangible equity to tangible assets (1)

8.14

8.09

7.63

Tier 1 common equity ratio

10.06

10.00

9.44

Tier 1 risk-based capital ratio

11.17

11.11

10.50

Total risk-based capital ratio

14.46

13.78

13.06

Tier 1 leverage ratio

8.78

8.48

8.42

Consolidated CRE concentration ratio (4)

499

534

555

Allowance for credit losses/ Total loans

0.72

0.71

0.70

Allowance for credit losses/ Non-performing loans

313.21

218.42

273.42

(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)

June 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 June 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

June 30, 2024

March 31, 2024

June 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)

$

2,400,219

$

42,933

7.19

%

$

2,308,319

$

39,224

6.83

%

$

2,259,769

$

36,715

6.52

%

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

886,037

9,968

4.52

886,588

9,770

4.43

828,324

8,661

4.19

Multifamily residential and residential mixed-use

3,958,617

45,775

4.65

4,000,510

46,019

4.63

4,125,119

45,123

4.39

Non-owner-occupied commercial real estate

3,359,004

44,728

5.36

3,371,438

44,776

5.34

3,337,689

42,559

5.11

Acquisition, development, and construction

164,283

3,638

8.91

169,775

3,692

8.75

220,795

5,149

9.35

Other loans

5,100

57

4.50

5,420

84

6.23

6,536

103

6.32

Securities

1,537,487

7,907

2.07

1,578,330

7,880

2.01

1,642,057

7,914

1.93

Other short-term investments

313,809

4,412

5.65

695,375

9,564

5.53

468,233

5,867

5.03

Total interest-earning assets

12,624,556

159,418

5.08

%

13,015,755

161,009

4.98

%

12,888,522

152,091

4.73

%

Non-interest-earning assets

793,885

779,169

769,546

Total assets

$

13,418,441

$

13,794,924

$

13,658,068

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Interest-bearing checking (2)

$

631,403

$

1,499

0.95

%

$

582,047

$

1,223

0.85

%

$

952,424

$

3,081

1.30

%

Money market

3,495,989

33,193

3.82

3,359,884

30,638

3.67

2,713,816

18,284

2.70

Savings (2)

2,336,202

23,109

3.98

2,368,946

22,810

3.87

2,279,670

17,376

3.06

Certificates of deposit

1,393,678

15,077

4.35

1,655,882

18,398

4.47

1,546,257

13,875

3.60

Total interest-bearing deposits

7,857,272

72,878

3.73

7,966,759

73,069

3.69

7,492,167

52,616

2.82

FHLBNY advances

671,242

6,429

3.85

1,094,209

12,143

4.46

1,327,121

15,206

4.60

Subordinated debt, net

202,232

2,604

5.18

200,188

2,553

5.13

200,254

2,553

5.11

Other short-term borrowings

-

-

-

77

1

5.22

814

-

-

Total borrowings

873,474

9,033

4.16

1,294,474

14,697

4.57

1,528,189

17,759

4.66

Derivative cash collateral

145,702

2,005

5.53

130,166

1,713

5.29

120,542

1,497

4.98

Total interest-bearing liabilities

8,876,448

83,916

3.80

%

9,391,399

89,479

3.83

%

9,140,898

71,872

3.15

%

Non-interest-bearing checking (2)

3,042,382

2,909,776

3,043,899

Other non-interest-bearing liabilities

242,980

247,717

254,826

Total liabilities

12,161,810

12,548,892

12,439,623

Stockholders' equity

1,256,631

1,246,032

1,218,445

Total liabilities and stockholders' equity

$

13,418,441

$

13,794,924

$

13,658,068

Net interest income

$

75,502

$

71,530

$

80,219

Net interest rate spread

1.28

%

1.15

%

1.58

%

Net interest margin

2.41

%

2.21

%

2.50

%

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

$

10,899,654

$

72,878

2.69

%

$

10,876,535

$

73,069

2.70

%

$

10,536,066

$

52,616

2.00

%

(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

June 30,

March 31,

June 30,

Asset Quality Detail

2024

2024

2023

Non-performing loans ("NPLs")

Business loans (1)

$

20,287

$

18,213

$

23,470

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

3,884

3,689

3,305

Multifamily residential and residential mixed-use

-

-

-

Non-owner-occupied commercial real estate

15

15

15

Acquisition, development, and construction

657

12,910

657

Other loans

-

-

220

Total Non-accrual loans

$

24,843

$

34,827

$

27,667

Total Non-performing assets ("NPAs")

$

24,843

$

34,827

$

27,667

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

$

-

$

-

$

-

NPAs and 90+ Delinquent

$

24,843

$

34,827

$

27,667

NPAs and 90+ Delinquent / Total assets

0.18%

0.26%

0.20%

Net charge-offs ("NCOs")

$

3,640

$

739

$

3,679

NCOs / Average loans (2)

0.14%

0.03%

0.14%

(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

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 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

$

16,657

$

15,870

$

25,676

$

32,527

$

61,158

Adjustments to net income (1):

Fair value change in equity securities and loans held for sale

416

842

780

1,258

780

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

(3,695)

(2,968)

-

(6,663)

1,447

Severance

-

42

481

42

506

Loss on extinguishment of debt

-

453

-

453

-

Income tax effect of adjustments

1,043

518

(373)

1,561

(809)

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

$

14,421

$

14,757

$

26,564

$

29,178

$

63,082

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

Adjusted EPS (Diluted)

$

0.37

$

0.38

$

0.68

$

0.75

$

1.63

Adjusted return on average assets

0.48

%

0.48

%

0.83

%

0.48

%

0.98

%

Adjusted return on average equity

5.17

5.32

9.32

5.25

11.06

Adjusted return on average tangible common equity

5.97

6.18

11.42

6.07

13.72

Adjusted non-interest expense to average assets

1.65

1.50

1.51

1.57

1.45

Adjusted efficiency ratio

65.9

64.7

56.2

65.4

52.5

(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

Six Months Ended

​

June 30,

March 31,

June 30,

June 30,

June 30,

​

2024

2024

2023

2024

2023

Operating expense as a % of average assets - as reported

1.66

%

1.52

%

1.53

%

1.59

%

1.47

%

Loss on extinguishment of debt

-

(0.01)

-

(0.01)

-

Severance

-

-

(0.01)

-

(0.01)

Amortization of other intangible assets

(0.01)

(0.01)

(0.01)

(0.01)

(0.01)

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

1.65

%

1.50

%

1.51

%

1.57

%

1.45

%

Page 11

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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2024

2024

2023

2024

2023

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

63.8

%

64.0

%

57.6

%

63.9

%

53.8

%

Non-interest expense - as reported

$

55,694

$

52,511

$

52,186

$

108,205

$

99,661

Severance

-

(42)

(481)

(42)

(506)

Loss on extinguishment of debt

-

(453)

-

(453)

-

Amortization of other intangible assets

(285)

(307)

(349)

(592)

(726)

Adjusted non-interest expense (non-GAAP)

$

55,409

$

51,709

$

51,356

$

107,118

$

98,429

Net interest income - as reported

$

75,502

$

71,530

$

80,219

$

147,032

$

165,971

Non-interest income - as reported

$

11,808

$

10,467

$

10,405

$

22,275

$

19,406

Fair value change in equity securities and loans held for sale

416

842

780

1,258

780

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

(3,695)

(2,968)

-

(6,663)

1,447

Adjusted non-interest income (non-GAAP)

$

8,529

$

8,341

$

11,185

$

16,870

$

21,633

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

$

84,031

$

79,871

$

91,404

$

163,902

$

187,604

Adjusted efficiency ratio (non-GAAP) (2)

65.9

%

64.7

%

56.2

%

65.4

%

52.5

%

(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):

June 30,

March 31,

June 30,

2024

2024

2023

Reconciliation of Tangible Assets:

Total assets

$

13,548,763

$

13,501,092

$

13,802,862

Goodwill

(155,797)

(155,797)

(155,797)

Other intangible assets

(4,467)

(4,753)

(5,758)

Tangible assets (non-GAAP)

$

13,388,499

$

13,340,542

$

13,641,307

Reconciliation of Tangible Common Equity - Consolidated:

Total stockholders' equity

$

1,250,596

$

1,239,371

$

1,202,503

Goodwill

(155,797)

(155,797)

(155,797)

Other intangible assets

(4,467)

(4,753)

(5,758)

Tangible equity (non-GAAP)

1,090,332

1,078,821

1,040,948

Preferred stock, net

(116,569)

(116,569)

(116,569)

Tangible common equity (non-GAAP)

$

973,763

$

962,252

$

924,379

Common shares outstanding

39,148

38,932

38,803

Tangible common equity to tangible assets (non-GAAP)

7.27

%

7.21

%

6.78

%

Tangible equity to tangible assets (non-GAAP)

8.14

8.09

7.63

Book value per common share

$

28.97

$

28.84

$

27.99

Tangible common book value per share (non-GAAP)

24.87

24.72

23.82