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

    Источник: Nasdaq GlobeNewswire / 23 июл 2024 06:30:01   America/Chicago

    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, N.Y., 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%.

    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
              

    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.”

    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


    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.

    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 
                         

    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.

    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.

    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.

    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 %  
                          

    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  

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