Dime Community Bancshares, Inc. Reports First Quarter 2022 Results

Источник: Nasdaq GlobeNewswire / 29 апр 2022 05:00:01 America/Chicago

Quarterly Net Income to Common Stockholders Increases by $55.6 Million on a Year-Over-Year Basis

Non-Interest-Bearing Deposits Increase to 38% of Total Deposits
Positioning the Company Well for a Rising Interest Rate Scenario

Net Interest Margin Expands by 5 Basis Points Versus the Prior Quarter

HAUPPAUGE, N.Y., April 29, 2022 (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 $32.7 million for the quarter ended March 31, 2022, or $0.82 per diluted common share, compared to net income available to common stockholders of $33.5 million for the quarter ended December 31, 2021, or $0.83 per diluted common share. For the quarter ended March 31, 2021, net loss available to common stockholders was $22.9 million, or $0.66 per diluted common share.

Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “During the first quarter, we executed well on each of our strategic plan priorities – growing non-interest-bearing deposits, managing our cost of funds appropriately and prioritizing net interest margin expansion, prudent expense discipline, and maintaining solid asset quality. Importantly, we recently announced several key hires in our lending division by capitalizing on merger-related disruption in our marketplace. As the year progresses, we expect loan growth and non-interest income to pick-up. Our high level of non-interest-bearing deposits, coupled with a balance sheet that does not rely on wholesale leverage, positions us well for a rising interest rate scenario.”

Highlights for the First Quarter of 2022 Included:

The non-interest-bearing deposits to total deposits ratio increased to 37.9% at March 31, 2022;
The cost of deposits declined to 0.10% during the first quarter of 2022;
The net interest margin expanded by 5 basis points versus the linked quarter;
Total loans held for investment, net, excluding Paycheck Protection Program (“PPP”) loans increased by 2% on an annualized basis versus the linked quarter;
Non-interest expenses for the first quarter of 2022 were down 2% versus the linked quarter;
The Company repurchased 505,005 shares of its common stock, which represented approximately 1.3% of shares outstanding at the beginning of the period, at a weighted average price of $34.44 per share; and
Non-performing assets and loans 90 days past due and accruing declined by 14% versus the linked quarter and represented only 0.31% of total assets as of March 31, 2022.

Management’s Discussion of Quarterly Operating Results

The Company’s results of operations for the first quarter of 2022 and fourth quarter of 2021 include income for the full quarter from the merger with Bridge Bancorp, Inc. (“Bridge”), compared to two months for the first quarter of 2021 following the completion of the merger on February 1, 2021.

Net Interest Income

Net interest income for the first quarter of 2022 was $89.1 million compared to $91.7 million for the fourth quarter of 2021 and $77.8 million for the first quarter of 2021.

The table below provides a reconciliation of the reported net interest margin (“NIM”), the adjusted NIM excluding the impact of PPP loans, and the adjusted NIM excluding the combined impact of PPP loans and purchase accounting accretion on the loan portfolio.


(Dollars in thousands)	Q1 2022				Q4 2021				Q1 2021
Net interest income	$	89,109			$	91,686			$	77,841
Less: Net interest income on PPP loans		(396	)			(539	)			(4,092	)
Adjusted net interest income excluding PPP loans (non-GAAP)	$	88,713			$	91,147			$	73,749

Average interest-earning assets	$	11,333,805			$	11,582,086			$	10,057,682
Average PPP loan balances		(46,807	)			(96,065	)			(1,020,910	)
Adjusted average interest-earning assets excluding PPP loans (non-GAAP)	$	11,286,998			$	11,486,021			$	9,036,772

NIM⁽¹⁾		3.19		%		3.14		%		3.14		%
Adjusted NIM excluding PPP loans (non-GAAP)⁽²⁾		3.19		%		3.15		%		3.31		%

Adjusted net interest income excluding PPP loans (non-GAAP)	$	88,713			$	91,147			$	73,749
Less: Purchase accounting accretion on loans ("PAA")		(50	)			625				(1,333	)
Adjusted net interest income excluding PPP loans and PAA on loans (non-GAAP)	$	88,663			$	91,772			$	72,416
Adjusted NIM excluding PPP loans and PAA on loans (non-GAAP) ⁽³⁾		3.19		%		3.17		%		3.26		%

⁽¹⁾	NIM represents net interest income divided by average interest-earning assets.
⁽²⁾	Adjusted NIM excluding PPP loans represents adjusted net interest income, which excludes net interest income on PPP loans divided by average interest-earning assets excluding PPP loans. The net interest income on PPP loans is calculated using interest income on the PPP balances less an assumed cost of funding the PPP loans, using the overall cost of funds of the Company.
⁽³⁾	Adjusted NIM excluding PPP and PAA represents adjusted net interest income, which excludes net interest income on PPP loans and PAA, divided by adjusted average interest-earning assets excluding PPP loans.

Loan Portfolio

The ending weighted average rate (“WAR”)⁽¹⁾ on the total loan portfolio was 3.76% at March 31, 2022, a 3 basis point increase compared to the ending WAR on the total loan portfolio at December 31, 2021. Excluding the impact of PPP loans, the WAR on the loan portfolio was 3.77% at March 31, 2022, compared to 3.75% at December 31, 2021.

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


	March 31, 2022				December 31, 2021				March 31, 2021
($ in thousands)	Balance		WAR		Balance		WAR		Balance		WAR
Loans held for investment balances at period end:
Commercial and industrial ("C&I")	$	888,056	4.19	%	$	867,542	4.08	%	$	898,533	4.26	%
Owner-occupied commercial real estate		1,016,804	4.04			1,030,240	4.05			948,101	4.19
Business loans		1,904,860	4.11			1,897,782	4.06			1,846,634	4.22
One-to-four family residential, including condominium and cooperative apartment		669,099	3.53			669,282	3.63			693,548	3.79
Multifamily residential and residential mixed-use ⁽²⁾⁽³⁾		3,371,267	3.56			3,356,346	3.56			3,589,074	3.60
Non-owner-occupied commercial real estate		2,930,114	3.73			2,915,708	3.69			2,665,029	3.72
Acquisition, development, and construction		329,349	4.63			322,628	4.53			253,837	4.85
Other loans		12,207	6.52			16,898	5.85			23,912	4.95
Loans held for investment excluding PPP		9,216,896	3.77			9,178,644	3.75			9,072,034	3.82
PPP		32,953	1.00			66,017	1.00			1,434,064	1.00
Total loans held for investment including PPP	$	9,249,849	3.76	%	$	9,244,661	3.73	%	$	10,506,098	3.43	%

⁽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 amount of loans in the category.
⁽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.

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



($ in millions)	Q1 2022		Q4 2021		Q1 2021
Loan originations, excluding PPP	$	480.4	$	463.9	$	334.5

Deposits

Total deposits decreased by $28.9 million on a linked quarter basis to $10.43 billion at March 31, 2022. The decline in total deposits was primarily due to the Bank not renewing higher-cost certificates of deposit accounts and maintaining pricing discipline on consumer money market accounts.

CEO O’Connor stated, “The weighted-average rate on our deposit portfolio declined to 0.09% at March 31, 2022. We continue to have strong success in growing non-interest-bearing deposit balances from our business customers.”

Non-interest-bearing deposits increased $33.2 million during the first quarter of 2022 to $3.95 billion at March 31, 2022, representing 37.9% of total deposits.

Outlined below are certificates of deposit balances set to mature in 2022 for the quarter ended as indicated.


Certificates of deposit set to mature in 2022
($ in thousands)	Balance		WAR
Q2 2022	$	320,775	0.57	%
Q3 2022		183,568	0.26
Q4 2022		74,898	0.42

Non-Interest Income

Non-interest income (loss) was $7.2 million during the first quarter of 2022, $10.2 million during the fourth quarter of 2021, and $(7.4) million during the first quarter of 2021. Excluding net gain on sale of securities and other assets, adjusted non-interest income was $9.2 million during the fourth quarter of 2021. Excluding the loss on termination of derivatives and net gain on sale of securities and other assets, adjusted non-interest income was $8.4 million during the first quarter of 2021 (see “Non-GAAP Reconciliation” table at the end of this news release).

CEO O’Connor stated, “Given our current pipelines, we expect the level of customer-related loan swap revenue and SBA gain on sale revenue to pick-up starting in the second quarter of the year.”

Non-Interest Expense

Total non-interest expense was $49.9 million during the first quarter of 2022, $50.8 million during the fourth quarter of 2021, and $82.8 million during the first quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, and amortization of other intangible assets, adjusted non-interest expense was $48.7 million during the fourth quarter of 2021. Excluding the impact of merger expenses and transaction costs, loss on extinguishment of debt, curtailment loss, and amortization of other intangible assets, adjusted non-interest expense was $41.4 million during the first quarter of 2021 (see “Non-GAAP Reconciliation” table at the end of this news release).

The ratio of non-interest expense to average assets was 1.64% during the first quarter of 2022, compared to 1.64% during the linked quarter and 3.11% for the first quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, loss on extinguishment of debt, curtailment loss, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.57% during the linked quarter and 1.55% for the first quarter of 2021 (see “Non-GAAP Reconciliation” table at the end of this news release).

The efficiency ratio was 51.8% during the first quarter of 2022, compared to 49.9% during the linked quarter and 117.5% during the first quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, loss on extinguishment of debt, curtailment loss, amortization of other intangible assets, loss on termination of derivatives, and net gain on sale of securities and other assets, the adjusted efficiency ratio was 48.2% during the linked quarter and 48.0% during the first quarter of 2021 (see “Non-GAAP Reconciliation” table at the end of this news release).

Income Tax Expense

The reported effective tax rate for the first quarter of 2022 was 28.1%, compared to 30.9% for the fourth quarter of 2021, and 25.2% for the first quarter of 2021.

Credit Quality

Non-performing loans at March 31, 2022 were $36.0 million, or 0.39% of total loans.

A credit loss recovery of $1.6 million was recorded during the first quarter of 2022, compared to a credit loss recovery of $132 thousand during the fourth quarter of 2021, and a credit loss provision of $15.8 million during the first quarter of 2021. The credit loss recovery was associated with the improvement in forecasted macroeconomic conditions as well as a reduction in reserves on individually evaluated loans.

The allowance for credit losses as a percentage of total loans was 0.86% at March 31, 2022 as compared to 0.91% at December 31, 2021 and 0.93% at March 31, 2021.

Capital Management

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements.

CEO O’Connor commented, “During the first quarter, we continued to execute on our share repurchase program and we repurchased $17.4 million of common stock. Our Tier 1 Risk-Based Capital Ratio increased by 7 basis points in the quarter to 10.76%. Our strong balance sheet and internal stress testing analyses continue to provide support for future capital return to shareholders.”

Dividends per common share were $0.24 during the first quarter of 2022.

Book value per common share was $26.32 at March 31, 2022 compared to $26.98 at December 31, 2021. Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by number of shares outstanding) was $22.18 at March 31, 2022 compared to $22.87 at December 31, 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release). The linked quarter declines in book value per share and tangible common book value per share were primarily due to the increase in the accumulated other comprehensive loss component of stockholders’ equity. The accumulated other comprehensive loss component of stockholders’ equity increased on a linked quarter basis due to the increase in market interest rates over the course of the first quarter of 2022.

Earnings Call Information

The Company will conduct a conference call at 8:30 a.m. (ET) on April 29, 2022, during which CEO O’Connor will discuss the Company’s first quarter 2022 financial performance, with a question and answer session to follow. Dial-in information for the live call is 1-844-200-6205. Upon dialing in, request to be joined into the Dime Community Bancshares, Inc. call with the conference operator.

The conference call will be simultaneously webcast (listen only), and archived for a period of one year, at https://events.q4inc.com/attendee/980319168. Dial-in information for the replay is 1-866-813-9403 using access code 178273. Replay will be available beginning on April 29, 2022 at 10:30 a.m. through May 13, 2022 at 11:59 p.m.

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 $12.0 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 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 "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 reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company; 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 economic conditions, 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; 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; 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. Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees work remotely. 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

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)


	March 31,			December 31,			March 31,
	2022			2021			2021
Assets:
Cash and due from banks	$	432,994		$	393,722		$	676,723
Securities available-for-sale, at fair value		1,277,036			1,563,711			1,152,493
Securities held-to-maturity		383,922			179,309			—
Loans held for sale		17,053			5,493			23,704
Loans held for investment, net:
C&I		888,056			867,542			898,533
Owner-occupied commercial real estate		1,016,804			1,030,240			948,101
Total business loans		1,904,860			1,897,782			1,846,634
One-to-four family and cooperative/condominium apartment		669,099			669,282			693,548
Multifamily residential and residential mixed-use ⁽¹⁾⁽²⁾		3,371,267			3,356,346			3,589,074
Non-owner-occupied commercial real estate		2,930,114			2,915,708			2,665,029
Acquisition, development, and construction		329,349			322,628			253,837
Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans		32,953			66,017			1,434,064
Other loans		12,207			16,898			23,912
Allowance for credit losses		(79,615	)		(83,853	)		(98,200	)
Total loans held for investment, net		9,170,234			9,160,808			10,407,898
Premises and fixed assets, net		49,940			50,368			53,829
Premises held for sale		556			556			—
Restricted stock		38,898			37,732			45,063
Bank Owned Life Insurance ("BOLI")		297,628			295,789			251,521
Goodwill		155,797			155,797			155,339
Other intangible assets		7,776			8,362			10,627
Operating lease assets		61,467			64,258			69,094
Derivative assets		71,826			45,086			45,760
Accrued interest receivable		38,456			40,149			51,100
Other assets		74,662			65,224			75,477
Total assets	$	12,078,245		$	12,066,364		$	13,018,628
Liabilities:
Non-interest-bearing checking	$	3,953,627		$	3,920,423		$	3,538,936
Interest-bearing checking		902,360			905,717			1,023,164
Savings		1,376,092			1,158,040			1,078,687
Money market		3,416,249			3,621,552			3,629,709
Certificates of deposit		781,775			853,242			1,540,316
Total deposits		10,430,103			10,458,974			10,810,812
FHLBNY advances		50,000			25,000			533,865
Other short-term borrowings		2,853			1,862			126,763
Subordinated debt, net		197,050			197,096			197,234
Derivative cash collateral		64,450			—			—
Operating lease liabilities		63,600			66,103			71,249
Derivative liabilities		60,586			40,728			41,816
Other liabilities		54,316			83,981			64,065
Total liabilities		10,922,958			10,873,744			11,845,804
Stockholders' equity:
Preferred stock, Series A		116,569			116,569			116,569
Common stock		416			416			416
Additional paid-in capital		494,969			494,125			492,431
Retained earnings		677,990			654,726			574,297
Accumulated other comprehensive (loss) income, net of deferred taxes		(49,380	)		(6,181	)		531
Unearned equity awards		(10,562	)		(7,842	)		(10,107	)
Treasury stock, at cost		(74,715	)		(59,193	)		(1,313	)
Total stockholders' equity		1,155,287			1,192,620			1,172,824
Total liabilities and stockholders' equity	$	12,078,245		$	12,066,364		$	13,018,628

⁽¹⁾	Includes loans underlying multifamily cooperatives.
⁽²⁾	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.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except share and per share amounts)


	Three Months Ended
	March 31,			December 31,			March 31,
	2022			2021			2021
Interest income:
Loans	$	86,420		$	89,301		$	81,382
Securities		7,131			7,097			4,380
Other short-term investments		368			414			993
Total interest income		93,919			96,812			86,755
Interest expense:
Deposits and escrow		2,531			2,861			5,298
Borrowed funds		2,278			2,265			3,616
Derivative cash collateral		1			—			—
Total interest expense		4,810			5,126			8,914
Net interest income		89,109			91,686			77,841
(Credit) provision for credit losses		(1,592	)		(132	)		15,779
Net interest income after (credit) provision		90,701			91,818			62,062
Non-interest income:
Service charges and other fees		4,058			4,621			2,920
Title fees		421			735			433
Loan level derivative income		6			113			1,792
BOLI income		1,839			1,890			1,339
Gain on sale of SBA loans		242			851			164
Gain on sale of residential loans		148			225			723
Net gain on equity securities		—			—			131
Net gain on sale of securities and other assets		—			975			710
Loss on termination of derivatives		—			—			(16,505	)
Other		489			769			910
Total non-interest income (loss)		7,203			10,179			(7,383	)
Non-interest expense:
Salaries and employee benefits		30,834			27,638			24,819
Occupancy and equipment		7,584			7,784			6,977
Data processing costs		3,805			4,506			3,528
Marketing		1,295			1,959			860
Professional services		2,094			2,130			1,865
Federal deposit insurance premiums		1,150			1,031			939
Loss on extinguishment of debt		—			—			1,594
Curtailment loss		—			—			1,543
Merger expenses and transaction costs		—			2,574			37,942
Branch restructuring		—			(1,118	)		—
Amortization of other intangible assets		586			715			357
Other		2,540			3,610			2,381
Total non-interest expense		49,888			50,829			82,805
Income (loss) before taxes		48,016			51,168			(28,126	)
Income tax expense (benefit)		13,485			15,811			(7,092	)
Net income (loss)		34,531			35,357			(21,034	)
Preferred stock dividends		1,821			1,821			1,821
Net income (loss) available to common stockholders	$	32,710		$	33,536		$	(22,855	)
Earnings per common share ("EPS"):
Basic	$	0.82		$	0.83		$	(0.66	)
Diluted	$	0.82		$	0.83		$	(0.66	)

Average common shares outstanding for diluted EPS		39,251,246			39,876,825			34,262,005

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share amounts)


	At or For the Three Months Ended
	March 31,			December 31,			March 31,
	2022			2021			2021
Per Share Data:
Reported EPS (Diluted)	$	0.82		$	0.83		$	(0.66	)
Cash dividends paid per common share		0.24			0.24			0.24
Book value per common share		26.32			26.98			25.43
Tangible common book value per share ⁽¹⁾		22.18			22.87			21.43
Common shares outstanding		39,460			39,878			41,536
Dividend payout ratio		29.27	%		28.92	%		(36.36	)	%

Performance Ratios (Based upon Reported Net Income):
Return on average assets		1.13	%		1.14	%		(0.79	)	%
Return on average equity		11.53			11.67			(8.18	)
Return on average tangible common equity ⁽¹⁾		14.44			14.61			(11.58	)
Net interest margin		3.19			3.14			3.14
Non-interest expense to average assets		1.64			1.64			3.11
Efficiency ratio		51.8			49.9			117.5
Effective tax rate		28.08			30.90			25.22

Balance Sheet Data:
Average assets	$	12,199,721		$	12,419,184		$	10,666,240
Average interest-earning assets		11,333,805			11,582,086			10,057,682
Average tangible common equity ⁽¹⁾		916,971			931,503			781,355
Loan-to-deposit ratio at end of period		88.7			88.4			97.2

Capital Ratios and Reserves - Consolidated: ⁽³⁾
Tangible common equity to tangible assets ⁽¹⁾		7.35	%		7.66	%		6.93		%
Tangible equity to tangible assets ⁽¹⁾		8.32			8.64			7.83
Tier 1 common equity ratio		9.56			9.49			9.65
Tier 1 risk-based capital ratio		10.76			10.69			10.91
Total risk-based capital ratio		13.48			13.45			14.04
Tier 1 leverage ratio		8.65			8.46			9.62
CRE consolidated concentration ratio ⁽²⁾		519			519			517
Allowance for credit losses/ Total loans		0.86			0.91			0.93
Allowance for credit losses/ Non-performing loans		221.39			208.04			276.24

⁽¹⁾	See "Non-GAAP Reconciliation" table for reconciliation of tangible equity, tangible common equity, and tangible assets.
⁽²⁾	The 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. March 31, 2022 amounts are preliminary pending completion and filing of the Company’s regulatory reports.
⁽³⁾	March 31, 2022 amounts are preliminary pending completion and filing of the Company’s regulatory reports.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars in thousands)


	Three Months Ended
	March 31, 2022						December 31, 2021						March 31, 2021
					Average						Average						Average
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Interest-earning assets:
Real estate loans	$	8,296,732	$	76,437	3.74	%	$	8,293,470	$	78,367	3.75	%	$	7,068,571	$	66,412	3.81	%
Commercial and industrial loans		869,283		9,369	4.37			873,273		10,119	4.60			703,067		9,567	5.52
SBA PPP loans		46,807		417	3.61			96,065		583	2.41			1,020,910		5,049	2.01
Other loans		15,658		197	5.10			18,385		232	5.01			16,602		354	8.65
Securities		1,726,189		7,131	1.68			1,729,191		7,097	1.63			865,192		4,380	2.05
Other short-term investments		379,136		368	0.39			571,702		414	0.29			383,340		993	1.05
Total interest-earning assets		11,333,805		93,919	3.36	%		11,582,086		96,812	3.32	%		10,057,682		86,755	3.50	%
Non-interest-earning assets		865,916						837,098						608,558
Total assets	$	12,199,721					$	12,419,184					$	10,666,240

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	870,889	$	367	0.17	%	$	962,597	$	455	0.19	%	$	662,273	$	311	0.19	%
Money market		3,632,438		973	0.11			3,652,681		1,087	0.12			2,893,723		2,026	0.28
Savings		1,256,701		207	0.07			1,174,719		108	0.04			863,409		207	0.10
Certificates of deposit		824,883		984	0.48			915,210		1,211	0.52			1,522,017		2,754	0.73
Total interest-bearing deposits		6,584,911		2,531	0.16			6,705,207		2,861	0.17			5,941,422		5,298	0.36
FHLBNY advances		33,889		77	0.92			25,000		61	0.97			853,162		1,711	0.81
Subordinated debt, net		197,080		2,201	4.53			197,126		2,204	4.44			168,607		1,902	4.57
Other short-term borrowings		2,459		—	—			2,484		—	—			15,021		3	0.08
Total borrowings		233,428		2,278	3.96			224,610		2,265	4.00			1,036,790		3,616	1.41
Derivative cash collateral		14,335		1	0.03			—		—	—			—		—	—
Total interest-bearing liabilities		6,832,674		4,810	0.29	%		6,929,817		5,126	0.29	%		6,978,212		8,914	0.52	%
Non-interest-bearing checking		3,979,741						4,096,046						2,494,630
Other non-interest-bearing liabilities		189,843						181,074						164,859
Total liabilities		11,002,258						11,206,937						9,637,701
Stockholders' equity		1,197,463						1,212,247						1,028,539
Total liabilities and stockholders' equity	$	12,199,721					$	12,419,184					$	10,666,240
Net interest income			$	89,109					$	91,686					$	77,841
Net interest rate spread					3.07	%					3.03	%					2.98	%
Net interest margin					3.19	%					3.14	%					3.14	%
Deposits (including non-interest-bearing checking accounts)	$	10,564,652	$	2,531	0.10	%	$	10,801,253	$	2,861	0.11	%	$	8,436,052	$	5,298	0.25	%

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
(Dollars in thousands)


	At or For the Three Months Ended
	March 31,			December 31,			March 31,
Asset Quality Detail	2022			2021			2021
Non-performing loans ("NPLs") ⁽¹⁾
One-to-four family residential, including condominium and cooperative apartment	$	5,241		$	7,623		$	5,384
Multifamily residential and residential mixed-use		—			—			4,844
Commercial real estate		4,972			5,053			10,595
Acquisition, development, and construction		665			—			104
C&I		25,000			27,266			14,523
Other		84			365			99
Total Non-accrual loans	$	35,962		$	40,307		$	35,549
Total Non-performing assets ("NPAs")	$	35,962		$	40,307		$	35,549

Loans 90 days delinquent and accruing ("90+ Delinquent")
One-to-four family residential, including condominium and cooperative apartment	$	341		$	1,945		$	45
Multifamily residential and residential mixed-use		—			—			2,871
Commercial real estate		—			—			2,259
Acquisition, development, and construction		—			—			—
C&I		839			1,056			3,652
Other		—			—			—
90+ Delinquent	$	1,180		$	3,001		$	8,827

NPAs and 90+ Delinquent	$	37,142		$	43,308		$	44,376

NPAs and 90+ Delinquent / Total assets		0.31	%		0.36	%		0.34	%
Net charge-offs (recoveries) ("NCOs")	$	2,583		$	(108	)	$	4,275
NCOs / Average loans ⁽¹⁾		0.11	%		0.00	%		0.19	%

(1) Excludes loans held for sale

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 provide 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 Company’s merger with Bridge, as well as branch restructuring:


	Three Months Ended
	March 31,			December 31,				March 31,
	2022			2021				2021
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income (loss) available to common stockholders	$	32,710		$	33,536			$	(22,855	)
Adjustments to net income (loss) ^(1):
Provision for credit losses - Non-PCD loans (double-count)		—			—				20,278
Net gain on sale of securities and other assets		—			(975	)			(710	)
Loss on termination of derivatives		—			—				16,505
Loss on extinguishment of debt		—			—				1,594
Curtailment loss		—			—				1,543
Merger expenses and transaction costs⁽²⁾		—			2,574				37,942
Branch restructuring		—			(1,118	)			—
Income tax effect of adjustments and other tax adjustments		—			(234	)			(21,848	)
Adjusted net income available to common stockholders (non-GAAP)	$	32,710		$	33,783			$	32,449

Adjusted Ratios (Based upon non-GAAP as calculated above)
Adjusted EPS (Diluted)	$	0.82		$	0.84			$	0.94
Adjusted return on average assets		1.13	%		1.15		%		1.29		%
Adjusted return on average equity		11.53			11.75				13.32
Adjusted return on average tangible common equity		14.44			14.72				16.74
Adjusted non-interest expense to average assets		1.62			1.57				1.55
Adjusted efficiency ratio		51.2			48.2				48.0

⁽¹⁾ Adjustments to net income are taxed at the Company's statutory tax rate of approximately 31% unless otherwise noted.
⁽²⁾ Certain merger expenses and transaction costs are non-taxable expense.

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
	March 31,			December 31,			March 31,
	2022			2021			2021
Operating expense as a % of average assets - as reported	1.64		%	1.64		%	3.11		%
Loss on extinguishment of debt	—			—			(0.06	)
Curtailment loss	—			—			(0.06	)
Merger expenses and transaction costs	—			(0.08	)		(1.43	)
Branch restructuring	—			0.03			—
Amortization of other intangible assets	(0.02	)		(0.02	)		(0.01	)
Adjusted operating expense as a % of average assets (non-GAAP)	1.62			1.57			1.55

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

	Three Months Ended
	March 31,				December 31,				March 31,
	2022				2021				2021
Efficiency ratio - as reported (non-GAAP) (1)		51.8		%		49.9		%		117.5		%
Non-interest expense - as reported	$	49,888			$	50,829			$	82,805
Less: Merger expenses and transaction costs		—				(2,574	)			(37,942	)
Less: Branch restructuring		—				1,118				—
Less: Loss on extinguishment of debt		—				—				(1,594	)
Less: Curtailment loss		—				—				(1,543	)
Less: Amortization of other intangible assets		(586	)			(715	)			(357	)
Adjusted non-interest expense (non-GAAP)	$	49,302			$	48,658			$	41,369
Net interest income - as reported	$	89,109			$	91,686			$	77,841
Non-interest income (loss) - as reported	$	7,203			$	10,179			$	(7,383	)
Less: Net gain on sale of securities and other assets		—				(975	)			(710	)
Less: Loss on termination of derivatives		—				—				16,505
Adjusted non-interest income (non-GAAP)	$	7,203			$	9,204			$	8,412
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)	$	96,312			$	100,890			$	86,253
Adjusted efficiency ratio (non-GAAP) (2)		51.2		%		48.2		%		48.0		%

_________________________

⁽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 (loss).
⁽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):

	March 31,				December 31,				March 31,
	2022				2021				2021
Reconciliation of Tangible Assets:
Total assets	$	12,078,245			$	12,066,364			$	13,018,628
Less:
Goodwill		(155,797	)			(155,797	)			(155,339	)
Other intangible assets		(7,776	)			(8,362	)			(10,627	)
Tangible assets (non-GAAP)	$	11,914,672			$	11,902,205			$	12,852,662

Reconciliation of Tangible Common Equity - Consolidated:
Total stockholders' equity	$	1,155,287			$	1,192,620			$	1,172,824
Less:
Goodwill		(155,797	)			(155,797	)			(155,339	)
Other intangible assets		(7,776	)			(8,362	)			(10,627	)
Tangible equity (non-GAAP)		991,714				1,028,461				1,006,858
Less:
Preferred stock, net		(116,569	)			(116,569	)			(116,569	)
Tangible common equity (non-GAAP)	$	875,145			$	911,892			$	890,289

Common shares outstanding		39,460				39,878				41,536

Tangible common equity to tangible assets (non-GAAP)		7.35		%		7.66		%		6.93
Tangible equity to tangible assets (non-GAAP)		8.32				8.64				7.83

Book value per share	$	26.32			$	26.98			$	25.43
Tangible common book value per share (non-GAAP)		22.18				22.87				21.43

Dime Community Bancshares, Inc. Reports First Quarter 2022 Results

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