Dime Community Bancshares Inc.

04/23/2024 | Press release | Distributed by Public on 04/23/2024 05:16

Dime Community Bancshares, Inc. Reports First Quarter 2024 Results With Earnings Per Share Increasing By 11% Versus the Prior Quarter - Form 8-K

Dime Community Bancshares, Inc. Reports First Quarter 2024 Results With Earnings Per Share Increasing By 11% Versus the Prior Quarter

Core Deposit Growth of 19% Annualized Versus Year End

Dime Has Been Executing on Growth Plan And Has Recruited Numerous
Talented Groups of Bankers to Position Itself for Future Growth

Capital Ratios Continue to Increase and Asset Quality Remains Stable

Hauppauge, NY, April 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 $15.9 million for the quarter ended March 31, 2024, or $0.41 per diluted common share, compared to $14.5 million, or $0.37 per diluted common share, for the quarter ended December 31, 2023, and $35.5 million, or $0.92 per diluted common share for the quarter ended March 31, 2023.

Stuart H. Lubow, President and Chief Executive Officer ("CEO") of the Company, stated, "Dime began 2024 by executing on our growth plan, which prioritizes core deposit growth and diversifying our balance sheet. On a year-to-date basis, we have recruited 34 talented revenue-producing bankers, across our Private and Commercial Bank and C&I lending operations, spread across 8 different Groups. We expect these bankers to contribute meaningfully to our growth in the years ahead. Looking back, our recruiting efforts last year are beginning to pay dividends, with the deposit-gathering Groups hired in 2023 approaching $600 million in deposits; these achievements helped drive the 19% annualized growth in core deposits in the first quarter of 2024. The significant momentum on the deposit front allowed us to reduce our FHLB borrowing position by 41% versus year-end levels."

Commenting on the first quarter results, Mr. Lubow said "Our results were characterized by stable asset quality, increasing capital ratios, a reduction in our wholesale funding, and prudent expense management. Importantly, the Net Interest Margin for the month of March was 2.23%, which was above the reported first quarter Net Interest Margin of 2.21%. This portends well for the quarters ahead in terms of the NIM trajectory. We continue to build our loan pipeline prudently and recently closed our first loan in our new Healthcare vertical; this new vertical provides us an important avenue to diversify our balance sheet over time. The reduction in our loan-to-deposit ratio to 98.8%, driven by strong deposit growth, provides us even more flexibility to take advantage of the current lending opportunities in the marketplace."

Highlights for the First Quarter of 2024 Included:

● Core deposits (excluding brokered deposits and time deposits) increased $421 million versus year-end levels;
● The ratio of average non-interest-bearing deposits to average total deposits for the first quarter was 27%;
● Non-interest expenses remained well controlled and declined by 3% versus the linked quarter;
● Credit quality continues to be stable with non-performing assets and loans 90 days past due representing only 0.26% of total assets as of March 31, 2024;
● Net charge-offs were $739 thousand for the quarter, representing only 0.03% of average loans;
● Capital ratios continue to build, with the Company's Tier 1 Risk Based Capital Ratio increasing to 11.11% and the Common Equity Tier 1 Ratio increasing to 10.00% at March 31, 2024; and
● Announced the addition of a National Deposits Group, 4 Groups in Brooklyn, 1 Group in Nassau County and 1 Group in Westchester County (marking Dime's extension into this new attractive banking market).

Page 2

Management's Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the first quarter of 2024 was $71.5 million compared to $74.1 million for the fourth quarter of 2023 and $85.8 million for the first 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)

Q1 2024

Q4 2023

Q1 2023

Net interest income

$

71,530

$

74,121

$

85,752

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

(82)

(55)

586

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

$

71,448

$

74,066

$

86,338

Average interest-earning assets

$

13,015,755

$

12,828,060

$

12,685,235

NIM (1)

2.21

%

2.29

%

2.74

%

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

2.21

%

2.29

%

2.76

%

(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.

Loan Portfolio

The ending weighted average rate ("WAR") on the total loan portfolio was 5.34% at March 31, 2024, a 5 basis point increase compared to the ending WAR of 5.29% on the total loan portfolio at December 31, 2023.

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

March 31, 2024

December 31, 2023

March 31, 2023

(Dollars in thousands)

Balance

WAR (1)

Balance

WAR (1)

Balance

WAR (1)

Loans held for investment balances at period end:

Business loans (2)

$

2,327,403

6.90

%

$

2,310,379

6.81

%

$

2,255,316

6.41

%

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

873,671

4.48

889,236

4.47

799,321

4.06

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

3,996,654

4.57

4,017,703

4.53

4,118,439

4.23

Non-owner-occupied commercial real estate

3,386,333

5.24

3,381,842

5.19

3,330,582

4.85

Acquisition, development, and construction

175,352

8.40

168,513

8.71

221,015

8.62

Other loans

5,170

7.10

5,755

6.75

7,172

11.03

Loans held for investment

$

10,764,583

5.34

%

$

10,773,428

5.29

%

$

10,731,845

4.96

%

(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, owner-occupied commercial real estate loans and Small Business Administration Paycheck Protection Program ("PPP") 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)

Q1 2024

Q4 2023

Q1 2023

Loan originations

$

98.3

$

195.9

$

351.9

Page 3

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at March 31, 2024 were $10.90 billion, compared to $10.53 billion at December 31, 2023 and $10.57 billion at March 31, 2023. CEO Lubow commented, "Deposit growth accelerated in the first quarter of 2024 as the investments in talent and technology that we made in 2023 began to pay dividends. Hires that we made in the second quarter of 2023 have generated approximately $600 million of core deposits, at a weighted average rate of approximately 2.5%, providing an important proof-of-concept for our growth plan. We expect the new Groups hired in 2024 to benefit from all the operational, process and technology improvements we have made over the course of the past year and they will be significant contributors to the growth of our franchise in the years ahead."

Total Federal Home Loan Bank advances were $773.0 million at March 31, 2024 compared to $1.31 billion at December 31, 2023 and $1.50 billion at March 31, 2023. Mr. Lubow commented, "Given the strong deposit growth, we proactively reduced our FHLB borrowings in the first quarter. Based on our strong deposit pipelines, we expect to continue paying down wholesale funding and we intend to create a primarily core-deposit funded institution over the course of the next year."

Non-Interest Income

Non-interest income was $10.5 million during the first quarter of 2024, $8.9 million during the fourth quarter of 2023, and $9.0 million during the first quarter of 2023.

Non-Interest Expense

Total non-interest expense was $52.5 million during the first quarter of 2024, $53.9 million during the fourth quarter of 2023, and $47.5 million during the first quarter of 2023. Excluding the impact of the FDIC special assessment, loss on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $51.7 million during the first quarter of 2024, $52.6 million during the fourth quarter of 2023, and $47.1 million during the first quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

The ratio of non-interest expense to average assets was 1.52% during the first quarter of 2024, compared to 1.58% during the linked quarter and 1.41% for the first quarter of 2023. Excluding the impact of the FDIC special assessment, loss on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.50% during the first quarter of 2024, compared to 1.54% during the linked quarter and 1.40% for the first quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

The efficiency ratio was 64.0% during the first quarter of 2024, compared to 65.0% during the linked quarter and 50.1% during the first 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, the FDIC special assessment, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 64.7% during the first quarter of 2024, compared to 63.6% during the linked quarter and 48.9% during the first 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 first quarter of 2024 was 27.1% compared to 35.6% for the fourth quarter of 2023, and 26.8% for the first quarter of 2023.

Credit Quality

Non-performing loans were $34.8 million at March 31, 2024 compared to $29.1 million at December 31, 2023 and $31.5 million at March 31, 2023.

A credit loss provision of $5.2 million was recorded during the first quarter of 2024, compared to a credit loss provision of $3.7 million during the fourth quarter of 2023, and a credit loss recovery of $3.6 million during the first 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 March 31, 2024. All risk-based regulatory capital ratios increased in the first quarter of 2024. Mr. Lubow commented, "Over the course of the past year, we have prudently increased our risk-based capital ratios. Our Common Equity Tier 1 Ratio is now at 10% and we are well positioned from a capital perspective to support all of our customers' needs."

Dividends per common share were $0.25 during the first quarter of 2024 and the fourth quarter of 2023, respectively.

Book value per common share was $28.84 at March 31, 2024 compared to $28.58 at December 31, 2023.

Page 4

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $24.72 at March 31, 2024 compared to $24.44 at December 31, 2023 (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, April 23, 2024, during which CEO Lubow will discuss the Company's first 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/2kw49bi9. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI99c326361aa645968fe05719ed5f55cb. 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.

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 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; 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)

March 31,

December 31,

March 31,

2024

2023

2023

Assets:

Cash and due from banks

$

370,852

$

457,547

$

663,132

Securities available-for-sale, at fair value

859,216

886,240

926,812

Securities held-to-maturity

589,331

594,639

605,642

Loans held for sale

8,973

10,159

2,171

Loans held for investment, net:

Business loans (1)

2,327,403

2,310,379

2,255,316

One-to-four family and cooperative/condominium apartment

873,671

889,236

799,321

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

3,996,654

4,017,703

4,118,439

Non-owner-occupied commercial real estate

3,386,333

3,381,842

3,330,582

Acquisition, development and construction

175,352

168,513

221,015

Other loans

5,170

5,755

7,172

Allowance for credit losses

(76,068)

(71,743)

(78,335)

Total loans held for investment, net

10,688,515

10,701,685

10,653,510

Premises and fixed assets, net

44,501

44,868

45,863

Premises held for sale

-

905

-

Restricted stock

74,346

98,750

105,258

Bank Owned Life Insurance ("BOLI")

352,277

349,816

335,455

Goodwill

155,797

155,797

155,797

Other intangible assets

4,753

5,059

6,107

Operating lease assets

51,988

52,729

57,204

Derivative assets

135,162

122,132

130,294

Accrued interest receivable

55,369

55,666

49,926

Other assets

110,012

100,013

104,553

Total assets

$

13,501,092

$

13,636,005

$

13,841,724

Liabilities:

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

$

2,819,481

$

2,884,378

$

3,012,378

Interest-bearing checking

635,640

515,987

908,988

Savings (excluding mortgage escrow deposits)

2,347,114

2,335,354

2,333,196

Money market

3,440,083

3,125,996

2,686,290

Certificates of deposit

1,555,157

1,607,683

1,519,267

Deposits (excluding mortgage escrow deposits)

10,797,475

10,469,398

10,460,119

Non-interest-bearing mortgage escrow deposits

101,229

61,121

109,867

Interest-bearing mortgage escrow deposits

173

136

249

Total mortgage escrow deposits

101,402

61,257

110,116

FHLBNY advances

773,000

1,313,000

1,498,000

Other short-term borrowings

-

-

2,068

Subordinated debt, net

200,174

200,196

200,261

Derivative cash collateral

132,900

108,100

120,680

Operating lease liabilities

54,727

55,454

59,757

Derivative liabilities

122,112

121,265

115,568

Other liabilities

79,931

81,110

83,902

Total liabilities

12,261,721

12,409,780

12,650,471

Stockholders' equity:

Preferred stock, Series A

116,569

116,569

116,569

Common stock

416

416

416

Additional paid-in capital

492,834

494,454

493,801

Retained earnings

819,130

813,007

789,010

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

(85,466)

(91,579)

(98,638)

Unearned equity awards

(10,191)

(8,622)

(13,468)

Treasury stock, at cost

(93,921)

(98,020)

(96,437)

Total stockholders' equity

1,239,371

1,226,225

1,191,253

Total liabilities and stockholders' equity

$

13,501,092

$

13,636,005

$

13,841,724

(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

March 31,

December 31,

March 31,

2024

2023

2023

Interest income:

Loans

$

143,565

$

144,744

$

128,439

Securities

7,880

7,918

8,431

Other short-term investments

9,564

6,094

3,802

Total interest income

161,009

158,756

140,672

Interest expense:

Deposits and escrow

73,069

66,650

37,272

Borrowed funds

14,697

15,617

16,171

Derivative cash collateral

1,713

2,368

1,477

Total interest expense

89,479

84,635

54,920

Net interest income

71,530

74,121

85,752

Provision (recovery) for credit losses

5,210

3,720

(3,648)

Net interest income after provision (recovery)

66,320

70,401

89,400

Non-interest income:

Service charges and other fees

4,544

3,804

3,814

Title fees

133

466

292

Loan level derivative income

406

728

3,133

BOLI income

2,461

2,416

2,163

Gain on sale of SBA loans

253

531

516

Gain on sale of residential loans

77

12

48

Fair value change in equity securities and loans held for sale

(842)

321

-

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

2,968

-

(1,447)

Other

467

594

482

Total non-interest income

10,467

8,872

9,001

Non-interest expense:

Salaries and employee benefits

32,037

30,383

26,634

Severance

42

25

25

Occupancy and equipment

7,368

7,261

7,373

Data processing costs

4,313

3,730

4,238

Marketing

1,497

1,765

1,449

Professional services

1,467

1,279

1,923

Federal deposit insurance premiums (1)

2,239

3,240

1,873

Loss on extinguishment of debt

453

-

-

Amortization of other intangible assets

307

350

377

Other

2,788

5,911

3,583

Total non-interest expense

52,511

53,944

47,475

Income before taxes

24,276

25,329

50,926

Income tax expense

6,585

9,021

13,623

Net income

17,691

16,308

37,303

Preferred stock dividends

1,821

1,821

1,821

Net income available to common stockholders

$

15,870

$

14,487

$

35,482

Earnings per common share ("EPS"):

Basic

$

0.41

$

0.37

$

0.92

Diluted

$

0.41

$

0.37

$

0.92

Average common shares outstanding for diluted EPS

38,255,559

38,216,476

38,151,465

(1)Fourth quarter of 2023 included $1.0 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank.

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

March 31,

December 31,

March 31,

2024

2023

2023

Per Share Data:

Reported EPS (Diluted)

$

0.41

$

0.37

$

0.92

Cash dividends paid per common share

0.25

0.25

0.24

Book value per common share

28.84

28.58

27.70

Tangible common book value per share (1)

24.72

24.44

23.52

Common shares outstanding

38,932

38,823

38,804

Dividend payout ratio

60.98

%

67.57

%

26.09

%

Performance Ratios (Based upon Reported Net Income):

Return on average assets

0.51

%

0.48

%

1.11

%

Return on average equity

5.68

5.32

12.50

Return on average tangible common equity (1)

6.64

6.20

15.62

Net interest margin

2.21

2.29

2.74

Non-interest expense to average assets

1.52

1.58

1.41

Efficiency ratio

64.0

65.0

50.1

Effective tax rate

27.13

35.62

26.75

Balance Sheet Data:

Average assets

$

13,794,924

$

13,630,096

$

13,449,746

Average interest-earning assets

13,015,755

12,828,060

12,685,235

Average tangible common equity (1)

968,719

948,024

914,994

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

98.8

102.3

101.5

Capital Ratios and Reserves - Consolidated: (3)

Tangible common equity to tangible assets (1)

7.21

%

7.04

%

6.67

%

Tangible equity to tangible assets (1)

8.09

7.91

7.52

Tier 1 common equity ratio

10.00

9.84

9.32

Tier 1 risk-based capital ratio

11.11

10.94

10.39

Total risk-based capital ratio

13.78

13.54

12.98

Tier 1 leverage ratio

8.48

8.51

8.43

Consolidated CRE concentration ratio (4)

534

538

554

Allowance for credit losses/ Total loans

0.71

0.67

0.73

Allowance for credit losses/ Non-performing loans

218.42

246.55

248.34

(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)

March 31, 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. March 31, 2024 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

March 31, 2024

December 31, 2023

March 31, 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)

$

2,308,319

$

39,224

6.83

%

$

2,264,401

$

38,740

6.79

%

$

2,200,543

$

33,691

6.21

%

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

886,588

9,770

4.43

893,008

9,706

4.31

788,302

7,616

3.92

Multifamily residential and residential mixed-use

4,000,510

46,019

4.63

4,070,327

46,715

4.55

4,074,011

42,349

4.22

Non-owner-occupied commercial real estate

3,371,438

44,776

5.34

3,376,581

45,037

5.29

3,317,049

39,695

4.85

Acquisition, development, and construction

169,775

3,692

8.75

188,022

4,459

9.41

225,898

4,973

8.93

Other loans

5,420

84

6.23

5,837

87

5.91

7,550

115

6.18

Securities

1,578,330

7,880

2.01

1,599,724

7,918

1.96

1,699,846

8,431

2.01

Other short-term investments

695,375

9,564

5.53

430,160

6,094

5.62

372,036

3,802

4.14

Total interest-earning assets

13,015,755

161,009

4.98

%

12,828,060

158,756

4.91

%

12,685,235

140,672

4.50

%

Non-interest-earning assets

779,169

802,036

764,511

Total assets

$

13,794,924

$

13,630,096

$

13,449,746

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Interest-bearing checking (2)

$

582,047

$

1,223

0.85

%

$

524,573

$

1,063

0.80

%

$

843,108

$

1,523

0.73

%

Money market

3,359,884

30,638

3.67

3,136,891

27,541

3.48

2,699,640

13,849

2.08

Savings (2)

2,368,946

22,810

3.87

2,295,882

20,979

3.63

2,327,126

14,599

2.54

Certificates of deposit

1,655,882

18,398

4.47

1,564,817

17,067

4.33

1,167,736

7,301

2.54

Total interest-bearing deposits

7,966,759

73,069

3.69

7,522,163

66,650

3.52

7,037,610

37,272

2.15

FHLBNY advances

1,094,209

12,143

4.46

1,174,848

13,064

4.41

1,255,700

13,500

4.36

Subordinated debt, net

200,188

2,553

5.13

200,210

2,553

5.06

200,276

2,553

5.17

Other short-term borrowings

77

1

5.22

-

-

-

11,827

118

4.05

Total borrowings

1,294,474

14,697

4.57

1,375,058

15,617

4.51

1,467,803

16,171

4.47

Derivative cash collateral

130,166

1,713

5.29

161,535

2,368

5.82

135,641

1,477

4.42

Total interest-bearing liabilities

9,391,399

89,479

3.83

%

9,058,756

84,635

3.71

%

8,641,054

54,920

2.58

%

Non-interest-bearing checking (2)

2,909,776

3,059,289

3,341,707

Other non-interest-bearing liabilities

247,717

286,373

273,281

Total liabilities

12,548,892

12,404,418

12,256,042

Stockholders' equity

1,246,032

1,225,678

1,193,704

Total liabilities and stockholders' equity

$

13,794,924

$

13,630,096

$

13,449,746

Net interest income

$

71,530

$

74,121

$

85,752

Net interest rate spread

1.15

%

1.20

%

1.92

%

Net interest margin

2.21

%

2.29

%

2.74

%

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

$

10,876,535

$

73,069

2.70

%

$

10,581,452

$

66,650

2.50

%

$

10,379,317

$

37,272

1.46

%

(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

March 31,

December 31,

March 31,

Asset Quality Detail

2024

2023

2023

Non-performing loans ("NPLs")

Business loans (1)

$

18,213

$

18,574

$

25,512

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

3,689

3,248

2,808

Multifamily residential and residential mixed-use

-

-

-

Non-owner-occupied commercial real estate

15

6,620

2,468

Acquisition, development, and construction

12,910

657

657

Other loans

-

-

99

Total Non-accrual loans

$

34,827

$

29,099

$

31,544

Total Non-performing assets ("NPAs")

$

34,827

$

29,099

$

31,544

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

$

-

$

-

$

-

NPAs and 90+ Delinquent

$

34,827

$

29,099

$

31,544

NPAs and 90+ Delinquent / Total assets

0.26%

0.21%

0.23%

Net charge-offs ("NCOs")

$

739

$

4,555

$

1,541

NCOs / Average loans (2)

0.03%

0.17%

0.06%

(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

March 31,

December 31,

March 31,

2024

2023

2023

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

Reported net income available to common stockholders

$

15,870

$

14,487

$

35,482

Adjustments to net income (1):

Fair value change in equity securities and loans held for sale

842

(321)

-

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

(2,968)

-

1,447

Severance

42

25

25

FDIC special assessment

-

999

-

Loss on extinguishment of debt

453

-

-

Income tax effect of adjustments

518

(208)

(436)

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

$

14,757

$

14,982

$

36,518

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

Adjusted EPS (Diluted)

$

0.38

$

0.39

$

0.95

Adjusted return on average assets

0.48

%

0.49

%

1.14

%

Adjusted return on average equity

5.32

5.48

12.85

Adjusted return on average tangible common equity

6.18

6.41

16.08

Adjusted non-interest expense to average assets

1.50

1.54

1.40

Adjusted efficiency ratio

64.7

63.6

48.9

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

Page 11

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,

​

2024

2023

2023

Operating expense as a % of average assets - as reported

1.52

%

1.58

%

1.41

%

Loss on extinguishment of debt

(0.01)

-

-

Severance

-

-

-

FDIC special assessment

-

(0.03)

-

Amortization of other intangible assets

(0.01)

(0.01)

(0.01)

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

1.50

%

1.54

%

1.40

%

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,

2024

2023

2023

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

64.0

%

65.0

%

50.1

%

Non-interest expense - as reported

$

52,511

$

53,944

$

47,475

Severance

(42)

(25)

(25)

FDIC special assessment

-

(999)

-

Loss on extinguishment of debt

(453)

-

-

Amortization of other intangible assets

(307)

(350)

(377)

Adjusted non-interest expense (non-GAAP)

$

51,709

$

52,570

$

47,073

Net interest income - as reported

$

71,530

$

74,121

$

85,752

Non-interest income - as reported

$

10,467

$

8,872

$

9,001

Fair value change in equity securities and loans held for sale

842

(321)

-

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

(2,968)

-

1,447

Adjusted non-interest income (non-GAAP)

$

8,341

$

8,551

$

10,448

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

$

79,871

$

82,672

$

96,200

Adjusted efficiency ratio (non-GAAP) (2)

64.7

%

63.6

%

48.9

%

(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.

Page 12

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,

2024

2023

2023

Reconciliation of Tangible Assets:

Total assets

$

13,501,092

$

13,636,005

$

13,841,724

Goodwill

(155,797)

(155,797)

(155,797)

Other intangible assets

(4,753)

(5,059)

(6,107)

Tangible assets (non-GAAP)

$

13,340,542

$

13,475,149

$

13,679,820

Reconciliation of Tangible Common Equity - Consolidated:

Total stockholders' equity

$

1,239,371

$

1,226,225

$

1,191,253

Goodwill

(155,797)

(155,797)

(155,797)

Other intangible assets

(4,753)

(5,059)

(6,107)

Tangible equity (non-GAAP)

1,078,821

1,065,369

1,029,349

Preferred stock, net

(116,569)

(116,569)

(116,569)

Tangible common equity (non-GAAP)

$

962,252

$

948,800

$

912,780

Common shares outstanding

38,932

38,823

38,804

Tangible common equity to tangible assets (non-GAAP)

7.21

%

7.04

%

6.67

%

Tangible equity to tangible assets (non-GAAP)

8.09

7.91

7.52

Book value per common share

$

28.84

$

28.58

$

27.70

Tangible common book value per share (non-GAAP)

24.72

24.44

23.52