• Dime Community Bancshares, Inc. Reports Strong Fourth Quarter 2022 Results With Earnings Per Share Increasing By 19% On a Year-Over-Year Basis

    Source: Nasdaq GlobeNewswire / 27 Jan 2023 06:00:01   America/New_York

    Robust Loan Originations Drive Over $1.3 Billion in Loan Growth for Fiscal Year 2022

    Fourth Quarter Results Highlighted by Strong Non-Interest Income Growth,
    Prudent Expense Management and Improved Credit Quality

    HAUPPAUGE, N.Y., Jan. 27, 2023 (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 $145.3 million for the year ended December 31, 2022, or $3.73 per diluted common share, compared to $96.7 million for the year ended December 31, 2021 or $2.45 per diluted common share.

    Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “As we close the book on 2022, we can reflect on an extremely successful year for our Company. Reported net income available to common shareholders for the twelve months ended December 31, 2022 increased by 50% on a year-over-year basis. Importantly, we delivered consistent financial results throughout 2022 as demonstrated by an annual return on assets in excess of 1.20% and an efficiency ratio below 50%. We made numerous investments in our business and people over the year, including a buildout of our middle market commercial lending operations. Finally, we were very proud to achieve an overall “Outstanding” rating for our Community Reinvestment Act rating from the Federal Reserve Bank of New York.”

    For the quarter ended December 31, 2022, net income available to common stockholders was $38.2 million, or $0.99 per diluted common share, compared to $37.7 million, or $0.98 per diluted common share, for the quarter ended September 30, 2022, and $33.5 million, or $0.83 per diluted common share, for the quarter ended December 31, 2021.

    Highlights for the Fourth Quarter of 2022 Included:

    • Total loans held for investment, net, increased by $450 million or 18% on an annualized basis versus the linked quarter;
    • Total business loan balances increased by $215 million or 43% on an annualized basis versus the linked quarter;
    • Non-interest income increased to $9.5 million during the fourth quarter of 2022. Excluding the impact of a $1.4 million gain on sale of a branch property in the third quarter, non-interest income during the third quarter of 2022 was $8.0 million. The increase in non-interest income was driven by customer-related loan swap revenue and SBA gain on sale revenue;
    • Non-interest expense to average assets remained well controlled at 1.56% for the fourth quarter, compared to 1.54% for the prior quarter and 1.64% for the year-ago quarter; and
    • Credit quality continues to be strong with non-performing assets and loans 90 days past due and accruing declining by 22% versus the linked quarter and representing only 0.26% of total assets as of December 31, 2022.

    Management’s Discussion of Quarterly Operating Results

    Net Interest Income

    Net interest income for the fourth quarter of 2022 was $96.8 million compared to $100.4 million for the third quarter of 2022 and $91.7 million for the fourth quarter of 2021.

    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) Q4 2022 Q3 2022 Q4 2021 
    Net interest income $ 96,804  $100,438  $91,686 
    Purchase accounting accretion on loans ("PAA")   (390)  (57)  625 
    Adjusted net interest income excluding PAA on loans (non-GAAP) $ 96,414  $100,381  $92,311 
               
    Average interest-earning assets $ 12,198,905  $11,782,361  $11,582,086 
               
    NIM (1)   3.15 % 3.38 % 3.14%
    Adjusted NIM excluding PAA on loans (non-GAAP) (2)   3.14 % 3.38 % 3.16%

    (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 net interest income on PAA loans divided by average interest-earning assets.

    Loan Portfolio

    The ending weighted average rate (“WAR”)(1) on the total loan portfolio was 4.76% at December 31, 2022, a 43 basis point increase compared to the ending WAR on the total loan portfolio at September 30, 2022.

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

                     
      December 31, 2022 September 30, 2022 December 31, 2021 
    ($ in thousands) Balance WAR Balance WAR Balance WAR 
    Loans held for investment balances at period end:                
    Commercial and industrial ("C&I") $ 1,065,916  7.00%$900,768 5.90%$867,542 4.08%
    Owner-occupied commercial real estate   1,140,145  5.16  1,090,417 4.69  1,030,240 4.05 
    Business loans   2,206,061  6.05  1,991,185 5.24  1,897,782 4.06 
    One-to-four family residential, including condominium and cooperative apartment   773,321  3.96  722,081 3.77  669,282 3.63 
    Multifamily residential and residential mixed-use (2)(3)   4,026,826  4.08  3,968,244 3.83  3,356,346 3.56 
    Non-owner-occupied commercial real estate   3,317,485  4.68  3,174,102 4.33  2,915,708 3.69 
    Acquisition, development, and construction   229,663  8.19  241,019 6.75  322,628 4.53 
    Other loans   7,679  10.22  8,927 7.29  16,898 5.85 
    Loans held for investment, excluding PPP loans   10,561,035  4.76  10,105,558 4.33  9,178,644 3.75 
    PPP loans   5,796  1.00  11,383 1.00  66,017 1.00 
    Total loans held for investment, including PPP loans $ 10,566,831  4.76%$10,116,941 4.33%$9,244,661 3.73%

    (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, for the quarter ended as indicated.

        
    ($ in millions) Q4 2022 Q3 2022    Q4 2021 
    Loan originations $ 638.3 $800.9 $463.9 

    Deposits

    Total average deposits for the fourth quarter of 2022 were $10.4 billion, compared to $10.6 billion for the third quarter of 2022. The cost of deposits increased by 46 basis points on a linked quarter basis. CEO O’Connor stated, “Despite the rapid increase in market interest rates and the competitive environment for deposit balances, we were able to maintain average non-interest bearing deposit balances to average total deposit balances at approximately 36.2% for the fourth quarter of 2022.”

    Non-Interest Income

    Non-interest income was $9.5 million during the fourth quarter of 2022, $9.4 million during the third quarter of 2022, and $10.2 million during the fourth quarter of 2021. Included in non-interest income during the third quarter of 2022 was a $1.4 million gain on the sale of a branch property.

    Non-Interest Expense

    Total non-interest expense was $50.7 million during the fourth quarter of 2022, $48.3 million during the third quarter of 2022, and $50.8 million during the fourth quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, severance expense, loss on extinguishment of debt, and amortization of other intangible assets, adjusted non-interest expense was $50.3 million during the fourth quarter of 2022, $47.9 million during the third quarter of 2022, and $48.7 million during the fourth quarter of 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    The ratio of non-interest expense to average assets was 1.56% during the fourth quarter of 2022, compared to 1.54% during the linked quarter and 1.64% for the fourth quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, severance expense, loss on extinguishment of debt, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.55% during the fourth quarter of 2022, compared to 1.53% during the linked quarter and 1.57% for the fourth quarter of 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    The efficiency ratio was 47.7% during the fourth quarter of 2022, compared to 44.0% during the linked quarter and 49.9% during the fourth quarter of 2021. Excluding the impact of merger expenses and transaction costs, branch restructuring, severance expense, loss on extinguishment of debt, amortization of other intangible assets, and gain on sale of securities and other assets, the adjusted efficiency ratio was 47.3% during the fourth quarter of 2022, compared to 44.2% during the linked quarter and 48.2% during the fourth quarter of 2021 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Income Tax Expense

    The reported effective tax rate for the fourth quarter of 2022 was 27.5%, compared to 28.1% for the third quarter of 2022, and 30.9% for the fourth quarter of 2021.

    Credit Quality

    Non-performing loans at December 31, 2022 were $34.2 million, or 0.32% of total loans.

    A credit loss provision of $0.3 million was recorded during the fourth quarter of 2022, compared to a credit loss provision of $6.6 million during the third quarter of 2022, and a credit loss recovery of $132 thousand during the fourth quarter of 2021. The credit loss provision for the fourth quarter of 2022 was associated with growth in the loan portfolio offset by a reduction in reserves on individually evaluated loans and unfunded commitments.

    The allowance for credit losses as a percentage of total loans was 0.79% at December 31, 2022 as compared to 0.81% at September 30, 2022 and 0.91% at December 31, 2021.

    Capital Management

    The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of December 31, 2022.

    CEO O’Connor commented, “Our strong internal capital generation allowed us to keep our capital ratios steady in the quarter, while supporting approximately $450 million of quarterly loan growth. Over the course of 2022, we repurchased approximately $47 million of common stock, representing approximately 4% of shares outstanding at the beginning of the year. Our regulatory capital ratios, which exclude the impact of the accumulated other comprehensive loss component of stockholders’ equity, continue to be very strong.”

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

    Book value per common share was $27.41 at December 31, 2022 compared to $26.55 at September 30, 2022. Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $23.20 at December 31, 2022 compared to $22.34 at September 30, 2022. Excluding the impact of accumulated other comprehensive income, the adjusted tangible common book value per share was $25.54 at December 31, 2022 compared to $24.75 at September 30, 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Earnings Call Information

    The Company will conduct a conference call at 8:30 a.m. (ET) on Friday, January 27, 2023, during which CEO O’Connor will discuss the Company’s fourth quarter 2022 financial performance, with a question-and-answer session to follow.

    The conference call will be simultaneously webcast (listen only) and archived for a period of one year at https://events.q4inc.com/attendee/499210648.

    Conference Call Details:

    Dial-in for Live Call:

    United States:1-844-200-6205
    International:+1-929-526-1599
    Access code:269082

    Telephone Replay:

    A recording will be available until Friday, February 10, 2023.

    United States:1-866-813-9403
    International:+44-204-525-0658
    Access code:964093

    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 $13.1 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, 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, including conditions caused by the COVID-19 pandemic and any other public health emergency, 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. 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)

              
         December 31,     September 30,     December 31, 
      2022
    		 2022
    		 2021
    Assets:           
    Cash and due from banks $ 169,297  $312,996  $393,722 
    Securities available-for-sale, at fair value   950,587   962,927   1,563,711 
    Securities held-to-maturity   585,798   591,403   179,309 
    Loans held for sale   —   289   5,493 
    Loans held for investment, net:          
    C&I   1,065,916   900,768   867,542 
    Owner-occupied commercial real estate   1,140,145   1,090,417   1,030,240 
    Total business loans   2,206,061   1,991,185   1,897,782 
    One-to-four family and cooperative/condominium apartment   773,321   722,081   669,282 
    Multifamily residential and residential mixed-use (1)(2)   4,026,826   3,968,244   3,356,346 
    Non-owner-occupied commercial real estate   3,317,485   3,174,102   2,915,708 
    Acquisition, development, and construction   229,663   241,019   322,628 
    Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans   5,796   11,383   66,017 
    Other loans   7,679   8,927   16,898 
    Allowance for credit losses   (83,507)  (81,935)  (83,853)
    Total loans held for investment, net   10,483,324   10,035,006   9,160,808 
    Premises and fixed assets, net   46,749   47,406   50,368 
    Premises held for sale   —   —   556 
    Restricted stock   88,745   65,656   37,732 
    Bank Owned Life Insurance ("BOLI")   333,292   331,105   295,789 
    Goodwill   155,797   155,797   155,797 
    Other intangible assets   6,484   6,915   8,362 
    Operating lease assets   57,857   57,916   64,258 
    Derivative assets   154,485   162,679   45,086 
    Accrued interest receivable   48,561   41,567   40,149 
    Other assets   113,084   114,241   65,224 
    Total assets $ 13,194,060  $12,885,903  $12,066,364 
    Liabilities:          
    Non-interest-bearing checking $ 3,519,218  $3,830,676  $3,920,423 
    Interest-bearing checking   827,454   936,082   905,717 
    Savings   2,260,101   2,237,409   1,158,040 
    Money market   2,532,270   2,553,729   3,621,552 
    Certificates of deposit   1,115,364   930,774   853,242 
    Total deposits   10,254,407   10,488,670   10,458,974 
    FHLBNY advances   1,131,000   620,000   25,000 
    Other short-term borrowings   1,360   2,124   1,862 
    Subordinated debt, net   200,283   200,305   197,096 
    Derivative cash collateral   153,040   158,200   4,550 
    Operating lease liabilities   60,340   60,252   66,103 
    Derivative liabilities   137,335   144,343   40,728 
    Other liabilities   82,573   71,218   79,431 
    Total liabilities   12,020,338   11,745,112   10,873,744 
    Stockholders' equity:          
    Preferred stock, Series A   116,569   116,569   116,569 
    Common stock   416   416   416 
    Additional paid-in capital   495,410   495,232   494,125 
    Retained earnings   762,762   733,783   654,726 
    Accumulated other comprehensive loss ("AOCI"), net of deferred taxes   (90,240)  (93,036)  (6,181)
    Unearned equity awards   (8,078)  (9,177)  (7,842)
    Treasury stock, at cost   (103,117)  (102,996)  (59,193)
    Total stockholders' equity   1,173,722   1,140,791   1,192,620 
    Total liabilities and stockholders' equity $ 13,194,060  $12,885,903  $12,066,364 

    (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  Year Ended
         December 31,     September 30,     December 31,     December 31,     December 31, 
      2022 2022 2021
    		 2022 2021
    Interest income:                
    Loans $ 120,773 $106,306 $89,301  $ 406,601 $359,016 
    Securities   7,652  7,374  7,097    29,224  22,634 
    Other short-term investments   1,444  847  414    3,400  2,976 
    Total interest income   129,869  114,527  96,812    439,225  384,626 
    Interest expense:                 
    Deposits and escrow   22,017  10,154  2,861    38,433  16,527 
    Borrowed funds   9,783  3,483  2,265    19,117  10,490 
    Derivative cash collateral   1,265  452  —    1,812  — 
    Total interest expense   33,065  14,089  5,126    59,362  27,017 
    Net interest income   96,804  100,438  91,686    379,863  357,609 
    Provision (credit) for credit losses   335  6,587  (132)   5,374  6,212 
    Net interest income after provision (credit)   96,469  93,851  91,818    374,489  351,397 
    Non-interest income:                 
    Service charges and other fees   3,945  3,866  4,621    16,206  15,998 
    Title fees   453  474  735    2,031  2,338 
    Loan level derivative income   1,397  549  113    3,637  2,909 
    BOLI income   2,187  2,177  1,890    10,346  7,071 
    Gain on sale of SBA loans   621  211  851    1,797  2,336 
    Gain on sale of PPP loans   —  —  —    —  20,697 
    Gain on sale of residential loans   55  54  225    448  1,758 
    Net gain on equity securities   —  —  —    —  131 
    Net gain on sale of securities and other assets   —  1,397  975    1,397  1,705 
    Loss on termination of derivatives   —  —  —    —  (16,505)
    Other   809  634  769    2,294  3,630 
    Total non-interest income   9,467  9,362  10,179    38,156  42,068 
    Non-interest expense:                 
    Salaries and employee benefits   31,632  29,188  27,638    120,108  108,331 
    Severance   5  —  —    2,198  1,875 
    Occupancy and equipment   7,356  7,884  7,784    30,220  30,697 
    Data processing costs   4,023  3,434  4,506    15,175  16,638 
    Marketing   1,559  1,531  1,959    5,900  4,661 
    Professional services   1,831  2,116  2,130    8,069  9,284 
    Federal deposit insurance premiums   800  800  1,031    3,900  4,077 
    Loss on extinguishment of debt   —  —  —    740  1,751 
    Curtailment loss   —  —  —    —  1,543 
    Merger expenses and transaction costs   —  —  2,574    —  44,824 
    Branch restructuring   —  —  (1,118)   —  5,059 
    Amortization of other intangible assets   431  431  715    1,878  2,622 
    Other   3,065  2,918  3,610    12,542  13,937 
    Total non-interest expense   50,702  48,302  50,829    200,730  245,299 
    Income before taxes   55,234  54,911  51,168    211,915  148,166 
    Income tax expense   15,175  15,430  15,811    59,359  44,170 
    Net income   40,059  39,481  35,357    152,556  103,996 
    Preferred stock dividends   1,821  1,822  1,821    7,286  7,286 
    Net income available to common stockholders $ 38,238 $37,659 $33,536  $ 145,270 $96,710 
    Earnings per common share ("EPS"):                 
    Basic $ 0.99 $0.98 $0.83  $ 3.73 $2.45 
    Diluted $ 0.99 $0.98 $0.83  $ 3.73 $2.45 
                    
    Average common shares outstanding for diluted EPS   38,123,221  38,165,681  39,876,825    38,538,834  38,903,037 


    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 Year Ended  
         December 31,     September 30,     December 31,     December 31,     December 31,  
      2022 2022 2021 2022 2021 
    Per Share Data:                
    Reported EPS (Diluted) $ 0.99 $0.98 $0.83 $ 3.73 $2.45 
    Cash dividends paid per common share   0.24  0.24  0.24   0.96  0.96 
    Book value per common share   27.41  26.55  26.98   27.41  26.98 
    Tangible common book value per share (1)   23.20  22.34  22.87   23.20  22.87 
    Tangible common book value per share excluding AOCI (1)   25.54  24.75  23.02   25.54  23.02 
    Common shares outstanding   38,573  38,572  39,878   38,573  39,878 
    Dividend payout ratio   24.24%   24.49% 28.92%  25.74% 39.18%
                     
    Performance Ratios (Based upon Reported Net Income):                 
    Return on average assets   1.23%   1.26% 1.14%  1.22% 0.86%
    Return on average equity   13.72  13.56  11.67   13.05  8.96 
    Return on average tangible common equity (1)   17.34  17.15  14.61   16.48  11.09 
    Net interest margin   3.15  3.38  3.14   3.25  3.15 
    Non-interest expense to average assets   1.56  1.54  1.64   1.61  2.03 
    Efficiency ratio (1)   47.7  44.0  49.9   48.0  61.4 
    Effective tax rate   27.47  28.10  30.90   28.01  29.81 
                     
    Balance Sheet Data:                 
    Average assets $ 12,985,248 $12,550,626 $12,419,184 $ 12,466,774 $12,112,800 
    Average interest-earning assets   12,198,905  11,782,361  11,582,086   11,684,501  11,354,111 
    Average tangible common equity (1)   889,018  885,182  931,503   889,038  888,128 
    Loan-to-deposit ratio at end of period   103.0  96.5  88.4   103.0  88.4 
                     
    Capital Ratios and Reserves - Consolidated: (3)                 
    Tangible common equity to tangible assets (1)   6.87%   6.77% 7.66%      
    Tangible common equity excluding AOCI to tangible assets (1)   7.51  7.45  7.71       
    Tangible equity to tangible assets (1)   7.76  7.69  8.64       
    Tangible equity excluding AOCI to tangible assets (1)   8.40  8.36  8.69       
    Tier 1 common equity ratio   9.15  9.13  9.49       
    Tier 1 risk-based capital ratio   10.23  10.25  10.69       
    Total risk-based capital ratio   12.89  12.98  13.45       
    Tier 1 leverage ratio   8.53  8.61  8.46       
    CRE consolidated concentration ratio (2)   554  555  519       
    Allowance for credit losses/ Total loans   0.79  0.81  0.91       
    Allowance for credit losses/ Non-performing loans   243.91  199.45  208.04       
                     

    (1)    See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets.
    (2)    The CRE consolidated 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. December 31, 2022 amounts are preliminary pending completion and filing of the Company’s regulatory reports.
    (3)   December 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  
      December 31, 2022 September 30, 2022 December 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 $ 9,370,045 $ 104,218  4.41%  $8,981,848 $92,309 4.08%$8,293,470 $78,367 3.75%
    Commercial and industrial loans   957,151   16,430  6.81  940,628  13,837 5.84  969,338  10,702 4.38 
    Other loans   8,269   125  6.00  10,566  160 6.01  18,385  232 5.01 
    Securities   1,663,969   7,652  1.82  1,666,398  7,374 1.76  1,729,191  7,097 1.63 
    Other short-term investments   199,471   1,444  2.87  182,921  847 1.84  571,702  414 0.29 
    Total interest-earning assets   12,198,905   129,869  4.22%   11,782,361  114,527 3.86% 11,582,086  96,812 3.32%
    Non-interest-earning assets   786,343         768,265       837,098      
    Total assets $ 12,985,248        $12,550,626      $12,419,184      
                              
    Liabilities and Stockholders' Equity:                            
    Interest-bearing liabilities:                            
    Interest-bearing checking $ 845,530 $ 1,174  0.55%  $833,386 $970 0.46%$962,597 $455 0.19%
    Money market   2,469,177   6,620  1.06  2,651,459  2,046 0.31  3,652,681  1,087 0.12 
    Savings   2,234,968   9,889  1.76  2,243,887  4,951 0.88  1,174,719  108 0.04 
    Certificates of deposit   1,063,053   4,334  1.62  988,827  2,187 0.88  915,210  1,211 0.52 
    Total interest-bearing deposits   6,612,728   22,017  1.32  6,717,559  10,154 0.60  6,705,207  2,861 0.17 
    FHLBNY advances   724,902   6,383  3.49  166,739  430 1.02  25,000  61 0.97 
    Subordinated debt, net   200,298   2,553  5.06  200,320  2,553 5.06  197,126  2,204 4.44 
    Other short-term borrowings   90,275   847  3.72  75,975  500 2.61  2,484  — — 
    Total borrowings   1,015,475   9,783  3.82  443,034  3,483 3.12  224,610  2,265 4.00 
    Derivative cash collateral   157,898   1,265  3.18  111,325  452 1.61  3,842  — — 
    Total interest-bearing liabilities   7,786,101   33,065  1.68%   7,271,918  14,089 0.77% 6,933,659  5,126 0.29%
    Non-interest-bearing checking   3,755,395         3,894,093       4,092,204      
    Other non-interest-bearing liabilities   275,636         219,883       181,074      
    Total liabilities   11,817,132         11,385,894       11,206,937      
    Stockholders' equity   1,168,116         1,164,732       1,212,247      
    Total liabilities and stockholders' equity $ 12,985,248        $12,550,626      $12,419,184      
    Net interest income     $ 96,804       $100,438      $91,686   
    Net interest rate spread          2.54%        3.09%      3.03%
    Net interest margin          3.15%        3.38%        3.14%
    Deposits (including non-interest-bearing checking accounts) $ 10,368,123 $ 22,017  0.84%  $10,611,652 $10,154 0.38%$10,797,411 $2,861 0.11%


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

              
         At or For the Three Months Ended
      December 31,     September 30,     December 31, 
    Asset Quality Detail 2022
    		 2022
    		 2021
    Non-performing loans ("NPLs")          
    One-to-four family residential, including condominium and cooperative apartment $ 3,203  $3,219  $7,623 
    Multifamily residential and residential mixed-use   —   —   — 
    Commercial real estate   8,332   7,673   5,053 
    Acquisition, development, and construction   657   657   — 
    C&I   21,946   29,532   27,266 
    Other   99   —   365 
    Total Non-accrual loans $ 34,237  $41,081  $40,307 
    Total Non-performing assets ("NPAs") $ 34,237  $41,081  $40,307 
              
    Loans 90 days delinquent and accruing ("90+ Delinquent")          
    One-to-four family residential, including condominium and cooperative apartment $ —  $—  $1,945 
    Multifamily residential and residential mixed-use   —   —   — 
    Commercial real estate   —   —   — 
    Acquisition, development, and construction   —   —   — 
    C&I   —   2,781   1,056 
    Other   —   —   — 
    90+ Delinquent $ —  $2,781  $3,001 
              
    NPAs and 90+ Delinquent $ 34,237  $43,862  $43,308 
              
    NPAs and 90+ Delinquent / Total assets  0.26%  0.34%  0.36%
    Net charge-offs (recoveries) ("NCOs") $ 185  $3,932  $(108)
    NCOs / Average loans (1)  0.01%  0.16%  0.00%

          (1)   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 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 February 2021 merger with Bridge Bancorp, Inc., as well as a gain on sale of a branch property, branch restructuring, gain on sale of PPP loans, severance, and loss on extinguishment of debt:  

                     
      Three Months Ended  Year Ended  
         December 31,     September 30,     December 31,     December 31,  December 31,  
      2022 2022
    		 2021
    		 2022 2021
    		 
    Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders                
    Reported net income available to common stockholders $ 38,238 $37,659  $33,536  $ 145,270 $96,710  
    Adjustments to net income (1):                 
    Provision for credit losses - Non-PCD loans (double-count)   —  —   —    —  20,278  
    Gain on sale of PPP loans   —  —   —    —  (20,697) 
    Net gain on sale of securities and other assets   —  (1,397)  (975)   1,397  (1,685) 
    Loss on termination of derivatives   —  —   —    —  16,505  
    Severance   5  —   —    2,198  1,875  
    Loss on extinguishment of debt   —  —   —    740  1,751  
    Curtailment loss   —  —   —    —  1,543  
    Merger expenses and transaction costs (2)   —  —   2,574    —  44,824  
    Branch restructuring   —  —   (1,118)   —  5,059  
    Income tax effect of adjustments and other tax adjustments   —  440   (234)   145  (19,421) 
    Adjusted net income available to common stockholders (non-GAAP) $ 38,243 $36,702  $33,783  $ 149,750 $146,742  
                     
    Adjusted Ratios (Based upon non-GAAP as calculated above)                
    Adjusted EPS (Diluted) $ 0.99 $0.95  $0.84  $ 3.77 $3.73  
    Adjusted return on average assets   1.23 %   1.23 % 1.15 %  1.24 % 1.27 %
    Adjusted return on average equity   13.72  13.23   11.75    13.20  13.26  
    Adjusted return on average tangible common equity   17.34  16.72   14.72    16.67  16.73  
    Adjusted non-interest expense to average assets   1.55  1.53   1.57    1.57  1.55  
    Adjusted efficiency ratio   47.3  44.2   48.2    47.0  47.6  

    (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   Year Ended
          December 31,   September 30,   December 31,   December 31,      December 31,  
       2022  2022  2021  2022  2021 
    Operating expense as a % of average assets - as reported   1.56 %   1.54 % 1.64 %  1.61 %   2.03 %
    Loss on extinguishment of debt  —   —   —    (0.01)  (0.01) 
    Curtailment loss  —   —   —   —   (0.02) 
    Severance  —   —   —    (0.02)  (0.02) 
    Merger expenses and transaction costs  —   —   (0.08)  —   (0.37) 
    Branch restructuring  —   —   0.03   —   (0.04) 
    Amortization of other intangible assets  (0.01)  (0.01)  (0.02)   (0.02)  (0.02) 
    Adjusted operating expense as a % of average assets (non-GAAP)   1.55   1.53   1.57    1.57   1.55  

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

                     
      Three Months Ended  Year Ended  
         December 31,     September 30,     December 31,     December 31,  December 31,  
      2022
    		 2022
    		 2021
    		 2022
    		 2021
    		 
    Efficiency ratio - as reported (non-GAAP) (1)      47.7 %   44.0 % 49.9 %  48.0 %   61.4 %
    Non-interest expense - as reported $ 50,702  $48,302  $50,829  $ 200,730  $245,299  
    Severance   (5)  —   —    (2,198)  (1,875) 
    Merger expenses and transaction costs   —   —   (2,574)   —   (44,824) 
    Branch restructuring   —   —   1,118    —   (5,059) 
    Loss on extinguishment of debt   —   —   —    (740)  (1,751) 
    Curtailment loss   —   —   —    —   (1,543) 
    Amortization of other intangible assets   (431)  (431)  (715)   (1,878)  (2,622) 
    Adjusted non-interest expense (non-GAAP) $ 50,266  $47,871  $48,658  $ 195,914  $187,625  
    Net interest income - as reported $ 96,804  $100,438  $91,686  $ 379,863  $357,609  
    Non-interest income - as reported $ 9,467  $9,362  $10,179  $ 38,156  $42,068  
    Gain on sale of PPP loans   —   —   —    —   (20,697) 
    Net gain on sale of securities and other assets   —   (1,397)  (975)   (1,397)  (1,685) 
    Loss on termination of derivatives   —   —   —    —   16,505  
    Adjusted non-interest income (non-GAAP) $ 9,467  $7,965  $9,204  $ 36,759  $36,191  
    Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 106,271  $108,403  $100,890  $ 416,622  $393,800  
    Adjusted efficiency ratio (non-GAAP) (2)    47.3 %   44.2 % 48.2 %  47.0 %   47.6 %

          (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):

               
         December 31,     September 30,     December 31,  
      2022
    		 2022
    		 2021
    		 
    Reconciliation of Tangible Assets:          
    Total assets $ 13,194,060  $12,885,903  $12,066,364  
    Goodwill   (155,797)  (155,797)  (155,797) 
    Other intangible assets   (6,484)  (6,915)  (8,362) 
    Tangible assets (non-GAAP) $ 13,031,779  $12,723,191  $11,902,205  
               
    Reconciliation of Tangible Common Equity - Consolidated:          
    Total stockholders' equity $ 1,173,722  $1,140,791  $1,192,620  
    Goodwill   (155,797)  (155,797)  (155,797) 
    Other intangible assets   (6,484)  (6,915)  (8,362) 
    Tangible equity (non-GAAP)   1,011,441   978,079   1,028,461  
    Preferred stock, net   (116,569)  (116,569)  (116,569) 
    Tangible common equity (non-GAAP) $ 894,872  $861,510  $911,892  
               
    Tangible common equity (non-GAAP) $ 894,872  $861,510  $911,892  
    AOCI, net of deferred taxes   90,240   93,036   6,181  
    Tangible common equity excluding AOCI (non-GAAP) $ 985,112  $954,546  $918,073  
               
    Tangible equity (non-GAAP) $ 1,011,441  $978,079  $1,028,461  
    AOCI, net of deferred taxes   90,240   93,036   6,181  
    Tangible equity excluding AOCI (non-GAAP) $ 1,101,681  $1,071,115  $1,034,642  
               
    Common shares outstanding   38,573   38,572   39,878  
               
    Tangible common equity to tangible assets (non-GAAP)   6.87 %   6.77 % 7.66 %
    Tangible common equity excluding AOCI to tangible assets (non-GAAP)   7.51   7.45   7.71  
    Tangible equity to tangible assets (non-GAAP)   7.76   7.69   8.64  
    Tangible equity excluding AOCI to tangible assets (non-GAAP)   8.40   8.36   8.69  
               
    Book value per share $27.41  $26.55  $26.98  
    Tangible common book value per share (non-GAAP)  23.20   22.34   22.87  
    Tangible common book value per share excluding AOCI (non-GAAP)  25.54   24.75   23.02  

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