Dime Community Bancshares, Inc. Reports Strong Quarterly Earnings

BROOKLYN, NY--(Marketwired - July 27, 2016) - Dime Community Bancshares, Inc. (DCOM) today reported net income of $11.2 million for the second quarter of 2016, or $0.30 per diluted common share, compared with $50.0 million, or $1.36 per diluted common share, in the first quarter of 2016. Net income in the first quarter of 2016 (excluding the impact of the gain on sale of real estate taxed at the statutory rate) was $12.6 million, or $0.34 per diluted common share and $11.5 million, or $0.32 per diluted common share, in the second quarter of 2015.

Highlights for the second quarter of 2016 included:

• Average real estate loans grew 26.7% (annualized) on a linked quarter basis and 21.9% over the second quarter of 2015;

• Average deposits grew 34.1% (annualized) on a linked quarter basis and 24.1% over the second quarter of 2015; the strong deposit growth benefited the loan-to-deposit ratio, which declined to 137.8% in the second quarter of 2016 from 147.0% in the first quarter of 2016;

• Strong credit quality, with nonperforming loans to total loans of eight basis points; and

• Efficiency ratio of 47.8%, compared to 49.5% in the first quarter of 2016 and 47.1% in the second quarter of 2015.

Vincent F. Palagiano, Chairman and Chief Executive Officer of the Company, commented, "We are pleased to report another solid quarter of performance, despite the significant headwinds we face from continued low interest rates. Steady loan growth and strong deposit growth led to increased net interest income despite a decline in net interest margin. It's important to note that we delivered these results while maintaining our risk profile and managing our capital effectively."

According to President and Chief Operating Officer Kenneth J. Mahon, "We continue to execute on our strategy to create superior long-term shareholder value. Our focus on deposit growth saw the loan-to-deposit ratio fall to 137.8%, the lowest level since 2007. This quarter continued to show pristine credit quality, with exceptionally low levels of nonperforming loans, and we stayed focused on our cost base, with well-controlled expenses leading to a superior efficiency ratio."

Management's Discussion of Quarterly Operating Results

Net Interest Income

Net interest income in the second quarter of 2016 was $35.6 million, an increase of $979,000 (2.8%) over the first quarter of 2016 and an increase of $2.5 million (7.7%) over the second quarter of 2015. Net Interest Margin ("NIM") was 2.68% during the second quarter of 2016, compared to 2.80% in the first quarter of 2016 and 3.05% in the second quarter of 2015. NIM was negatively impacted in the second quarter of 2016 due to lower income recognized from loan prepayment activity. For the second quarter of 2016, income from prepayment activity totaled $2.0 million, benefiting NIM by 15 basis points, compared to $2.6 million, or 22 basis points, during the first quarter of 2016 and $4.2 million, or 39 basis points, during the second quarter of 2015. Average earning assets were $5.31 billion for the second quarter of 2016, a 28.5% (annualized) increase from $4.96 billion for the first quarter of 2016 and a 22.4% increase from $4.34 billion for the second quarter of 2015. For the second quarter of 2016, the average yield on interest earning assets (excluding prepayment income) was 3.50%, four basis points lower than the 3.54% for first quarter 2016 and 19 basis points lower than the 3.69% for second quarter 2015, while the average cost of funds was 1.14%, two basis points higher than the 1.12% for first quarter 2016 and six basis points lower than the 1.20% for second quarter 2015.

Real Estate Loans

Real estate loan portfolio growth was $151.5 million (11.9% annualized) on a net basis during the second quarter of 2016. Real estate loan originations were $357.3 million during the quarter, at a weighted average interest rate of 3.34%. Of this amount, $104.9 million represented loan refinances from the existing portfolio. Loan amortization and satisfactions totaled $206.1 million, or 16.1% (annualized) of the quarterly average portfolio balance, at an average rate of 4.08%. The average yield on the loan portfolio (excluding income recognized from prepayment activity) was 3.53% during the second quarter of 2016, compared to 3.57% during the first quarter of 2016, and 3.73% during the second quarter of 2015. Average real estate loans were $5.14 billion in the second quarter of 2016, an increase of $321.0 million (26.7% annualized) from the first quarter of 2016 and an increase of $923.4 million (21.9%) from the second quarter of 2015.

Deposits and Borrowed Funds

Deposit growth was $340.5 million (39.6% annualized) during the second quarter of 2016. Given the strong growth in deposits, the loan-to-deposit ratio fell to 137.8% at June 30, 2016, from 147.0% at March 31, 2016 and 146.8% at June 30, 2015. Core deposits increased to $2.75 billion during the second quarter of 2016, from $2.46 billion during the first quarter of 2016 and $2.04 billion during the second quarter of 2015. The average cost of deposits increased three basis points on a linked quarter basis to 0.85%.

Total borrowings decreased $260.0 million during the second quarter of 2016 as compared to the first quarter of 2016. The reduction in borrowings was due to deposit growth outpacing loan growth, and reflects management's desire to decrease reliance on borrowed funds and to grow both its number of customers and deposits.

Non-Interest Income

Non-interest income was $2.3 million during the second quarter of 2016, which was $751,000 (48.3%) higher than the first quarter of 2016, excluding the gain on the sale of real estate, reflecting additional income recognized from mortality proceeds from Bank Owned Life Insurance assets and strong mortgage service fee income. Non-interest income was $628,000 (37.4%) higher than the second quarter of 2015, reflecting additional income recognized from mortality proceeds from Bank Owned Life Insurance assets and higher service fees.

Non-Interest Expense

Non-interest expense was $18.1 million during the second quarter of 2016, which was $223,000 (1.2%) higher than the first quarter of 2016, related to higher occupancy expense. Non-interest expense was $1.7 million (10.5%) higher than the second quarter of 2015, related to higher occupancy, marketing, and data processing expense. The increase in occupancy expense reflects the accounting expense for the new headquarters lease. The increase above the $17.5 million forecast resulted primarily from the aforementioned occupancy expense.

The ratio of non-interest expense to average assets was 1.31% during the second quarter of 2016, compared to 1.38% during the first quarter of 2016 and 1.44% during the second quarter of 2015, reflecting period-over-period average asset growth of 26.2% (annualized) and 20.9%, respectively. The efficiency ratio was 47.8% during the second quarter of 2016, compared to 49.5% during the first quarter of 2016 and 47.1% during the second quarter of 2015. The efficiency ratio improvement on a linked quarter basis was due to stronger net interest income and higher non-interest income while non-interest expense was relatively flat.

Income Tax Expense

The effective income tax rate approximated 42.2% during the second quarter of 2016, the same rate as the first quarter of 2016.

Credit Quality

Non-performing loans were $4.3 million, or 0.08% of total loans, at June 30, 2016, up from $1.4 million at March 31, 2016, which is mainly due to the addition of one loan. Loans delinquent between 30 and 89 days were $535,000, or 0.01% of total loans, at June 30, 2016, down from $2.3 million at March 31, 2016. The allowance for loan losses was 0.36% of total loans at June 30, 2016, consistent with the 0.37% at March 31, 2016. At June 30, 2016, non-performing assets represented 2.0% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table at the end of this news release). A loan loss provision of $442,000 was recorded during the second quarter of 2016, compared to a loan loss credit of $21,000 during the first quarter of 2016, primarily due to growth in the loan portfolio.

Capital Management

The Company's consolidated Tier 1 capital to average assets ("leverage ratio") was 10.47% at June 30, 2016, in excess of Basel III requirements.

The bank's regulatory capital ratios continued to be in excess of Basel III requirements as well, inclusive of conservation buffer amounts. At June 30, 2016, the bank's leverage ratio was 9.13%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 11.82% and 12.27%, respectively.

Reported diluted earnings per share exceeded the quarterly cash dividend per share by 114.3% during the second quarter of 2016, equating to a 46.7% payout ratio. Tangible book value per share was $13.35 at June 30, 2016, a 15.0% increase from $11.61 at June 30, 2015.

Outlook for the Quarter Ending September 30, 2016

At June 30, 2016, the bank had outstanding loan commitments totaling $280.2 million, at an average interest rate approximating 3.42%, all of which are likely to close during the quarter ending September 30, 2016. Loan prepayments and amortization are expected to fall within the projected annualized range of 15% - 20% during the September 2016 quarter.

The Company has a balance sheet growth objective of 15% - 18% for the year ending December 31, 2016, with a preference toward utilizing retail deposits for most of its funding needs.

Deposit and borrowing funding costs are expected to remain near current historically low levels through the September 2016 quarter. At June 30, 2016, the bank had $80.7 million of CDs at an average rate of 0.86%, and $315.0 million of borrowings, at an average rate of 0.96%, scheduled to mature during the September 2016 quarter. No significant increase or reduction in funding costs is anticipated from the rollover or re-positioning of these funds.

The bank recorded a loan loss provision during the just completed quarter of $442,000, mainly due to loan portfolio growth. During the remainder of 2016, quarterly loan loss provisions are expected to continue to be mainly a function of loan growth.

Non‐interest expense is expected to approximate $18 million during the September 2016 quarter.

The Company projects that the consolidated effective tax rate will approximate 42.0% in the September 2016 quarter.

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. (DCOM) (the "Company) had $5.56 billion in consolidated assets as of June 30, 2016, and is the parent company of The Dime Savings Bank of Williamsburgh (the "bank"). The bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-five branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and the bank can be found on Dime's website at www.dime.com.

This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "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. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of Dime; changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company's business; technological changes may be more difficult or expensive than the Company anticipates; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or 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.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share amounts)
			June 30,				March 31,				December 31,
			2016				2016				2015
ASSETS:
Cash and due from banks			$	89,927			$	192,917			$	64,154
Investment securities held to maturity				5,319				5,290				5,242
Investment securities available for sale				3,837				3,787				3,756
Trading securities				6,814				10,368				10,201
Mortgage-backed securities available for sale				406				417				431
Federal funds sold and other short-term investments				-				-				-
Real Estate Loans:
	One-to-four family and cooperative/condomnium apartment			81,343				74,734				72,095
	Multifamily and loans underlying cooperatives (1)			4,206,399				4,077,657				3,752,328
	Commercial real estate			911,050				895,196				863,184
	Unearned discounts and net deferred loan fees			7,989				7,706				7,579
	Total real estate loans			5,206,781				5,055,293				4,695,186
	Other loans			2,336				1,354				1,590
	Allowance for loan losses			(18,909	)			(18,513	)			(18,514	)
Total loans, net				5,190,208				5,038,134				4,678,262
Premises and fixed assets, net				13,800				13,770				15,150
Premises held for sale				1,379				1,379				8,799
Federal Home Loan Bank of New York capital stock				52,814				63,681				58,713
Other Real Estate Owned				18				18				148
Goodwill				55,638				55,638				55,638
Other assets				136,037				131,960				132,378
TOTAL ASSETS			$	5,556,197			$	5,517,359			$	5,032,872
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking			$	261,634			$	250,339			$	259,182
Interest Bearing Checking				90,172				82,850				78,994
Savings				369,168				368,685				368,671
Money Market				2,024,770				1,756,823				1,618,617
	Sub-total			2,745,744				2,458,697				2,325,464
Certificates of deposit				1,034,522				981,059				858,846
Total Due to Depositors				3,780,266				3,439,756				3,184,310
Escrow and other deposits				92,290				126,315				77,130
Federal Home Loan Bank of New York advances				1,017,125				1,277,125				1,166,725
Trust Preferred Notes Payable				70,680				70,680				70,680
Other liabilities				46,225				63,576				40,080
TOTAL LIABILITIES				5,006,586				4,977,452				4,538,925
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares authorized, 53,520,581 shares, 53,326,753 shares and 53,326,753 shares issued at June 30, 2016, March 31, 2016 and December 31, 2015, respectively, and 37,654,771 shares, 37,399,150 shares and 37,371,992 shares outstanding at June 30, 2016, March 31, 2016 and December 31, 2015, respectively)				535				533				533
Additional paid-in capital				266,984				263,206				262,798
Retained earnings				502,569				496,518				451,606
Accumulated other comprehensive loss, net of deferred taxes				(8,803	)			(8,548	)			(8,801	)
Unallocated common stock of Employee Stock Ownership Plan				(2,198	)			(2,256	)			(2,313	)
Unearned Restricted Stock Award common stock				(2,754	)			(2,279	)			(2,271	)
Common stock held by the Benefit Maintenance Plan				(9,576	)			(9,353	)			(9,354	)
Treasury stock (15,865,810 shares, 15,927,603 shares and 15,954,761 sharesat June 30, 2016, March 31, 2016 and December 31, 2015, respectively)				(197,146	)			(197,914	)			(198,251	)
TOTAL STOCKHOLDERS' EQUITY				549,611				539,907				493,947
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	5,556,197			$	5,517,359			$	5,032,872

(1) 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)
					For the Three Months Ended									For the Six Months Ended
					June 30,			March 31,			June 30,			June 30,			June 30,
					2016			2016			2015			2016			2015
Interest income:
	Loans secured by real estate				$	47,358		$	45,651		$	43,473		$	93,009		$	85,261
	Other loans					24			24			24			48			48
	Mortgage-backed securities					2			2			2			4			183
	Investment securities					265			173			121			438			290
	Federal funds sold and other short-term investments					721			661			578			1,382			1,228
		Total interest income				48,370			46,511			44,198			94,881			87,010
Interest expense:
	Deposits and escrow					7,597			6,794			5,670			14,391			10,890
	Borrowed funds					5,163			5,086			5,458			10,249			12,956
		Total interest expense				12,760			11,880			11,128			24,640			23,846
			Net interest income			35,610			34,631			33,070			70,241			63,164
Provision (Credit) for loan losses						442			(21	)		(1,135	)		421			(1,307	)
Net interest income after provision (credit) for loan losses						35,168			34,652			34,205			69,820			64,471
Non-interest income:
	Service charges and other fees					758			685			799			1,443			1,549
	Mortgage banking income, net					27			28			41			55			113
	Gain (loss) on sale of real estate					(4	)		68,187			-			68,183			-
	Gain (loss) on sale of securities and other assets					-			40			(4	)		40			1,384
	Gain (loss) on trading securities					33			6			(21	)		39			41
	Other					1,491			795			862			2,286			1,891
		Total non-interest income				2,305			69,741			1,677			72,046			4,978
Non-interest expense:
	Compensation and benefits					9,532			9,708			9,540			19,240			16,381
	Occupancy and equipment					3,115			2,627			2,490			5,742			5,434
	Federal deposit insurance premiums					581			739			576			1,320			1,127
	Other					4,864			4,795			3,760			9,659			7,288
		Total non-interest expense				18,092			17,869			16,366			35,961			30,230
		Income before taxes				19,381			86,524			19,516			105,905			39,219
Income tax expense						8,173			36,487			7,987			44,660			15,912
Net Income					$	11,208		$	50,037		$	11,529		$	61,245		$	23,307
Earnings per Share ("EPS"):
	Basic				$	0.30		$	1.37		$	0.32		$	1.67		$	0.65
	Diluted				$	0.30		$	1.36		$	0.32		$	1.67		$	0.64
Average common shares outstanding for Diluted EPS						36,818,581			36,662,951			36,259,377			36,741,066			36,158,821

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
(Dollars In thousands except per share amounts)
		For the Three Months Ended												For the Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
		2016				2016				2015				2016				2015
Performance Ratios (Based upon Reported Net Income):
Reported EPS (Diluted)		$	0.30			$	1.36			$	0.32			$	1.67			$	0.64
Return on Average Assets			0.81	%			3.87	%			1.01	%			2.29	%			1.03	%
Return on Average Stockholders' Equity			8.23	%			39.47	%			9.78	%			23.28	%			9.98	%
Return on Average Tangible Stockholders' Equity			9.01	%			43.49	%			10.84	%			25.57	%			11.08	%
Net Interest Spread			2.50	%			2.63	%			2.88	%			2.57	%			2.74	%
Net Interest Margin			2.68	%			2.80	%			3.05	%			2.74	%			2.93	%
Non-interest Expense to Average Assets			1.31	%			1.38	%			1.44	%			1.35	%			1.33	%
Efficiency Ratio			47.75	%			49.45	%			47.07	%			48.58	%			45.31	%
Effective Tax Rate			42.17	%			42.17	%			40.93	%			42.17	%			40.57	%
Book Value and Tangible Book Value Per Share:
Stated Book Value Per Share		$	14.60			$	14.44			$	12.85			$	14.60			$	12.85
Tangible Book Value Per Share			13.35				13.18				11.61				13.35				11.61
Average Balance Data:
Average Assets		$	5,509,549			$	5,171,368			$	4,555,381			$	5,340,459			$	4,537,849
Average Interest Earning Assets			5,308,434				4,955,643				4,335,579				5,132,039				4,318,692
Average Stockholders' Equity			545,033				507,151				471,628				526,092				467,149
Average Tangible Stockholders' Equity			497,850				460,249				425,522				479,049				420,769
Average Loans			5,139,564				4,818,516				4,216,209				4,979,040				4,195,146
Average Deposits			3,612,933				3,329,433				2,911,493				3,340,695				2,831,143
Asset Quality Summary:
Net charge-offs (recoveries)		$	45			$	(20	)			($ 1,451	)		$	25				($ 1,367	)
Non-performing Loans (excluding loans held for sale)			4,329				1,442				959				4,329				959
Non-performing Loans/ Total Loans			0.08	%			0.03	%			0.02	%			0.08	%			0.02	%
Nonperforming Assets (1)		$	5,600			$	2,705			$	2,659			$	5,600			$	2,656
Nonperforming Assets/Total Assets			0.10	%			0.05	%			0.06	%			0.10	%			0.06	%
Allowance for Loan Loss/Total Loans			0.36	%			0.37	%			0.43	%			0.36	%			0.43	%
Allowance for Loan Loss/Non-performing Loans			436.80	%			1283.84	%			1934.62	%			436.80	%			1934.62	%
Loans Delinquent 30 to 89 Days at period end		$	535			$	2,291			$	349			$	535			$	349
Consolidated Capital Ratios
Tangible Stockholders' Equity to Tangible Assets at period end			9.14	%			9.02	%			9.40	%			9.14	%			9.40	%
Tier 1 Capital to Average Assets			10.47	%			10.97	%			11.12	%			9.40	%			11.12	%
Regulatory Capital Ratios (Bank Only):
Common Equity Tier 1 Capital to Risk-Weighted Assets			11.82	%			11.50	%			9.30	%			11.82	%			9.30	%
Tier 1 Capital to Risk-Weighted Assets ("Tier 1 Capital Ratio")			11.82	%			11.50	%			12.44	%			11.82	%			12.44	%
Total Capital to Risk-Weighted Assets ("Total Capital Ratio")			12.27	%			11.93	%			12.99	%			12.27	%			12.99	%
Tier 1 Capital to Average Assets			9.13	%			9.57	%			9.47	%			9.13	%			9.47	%
Reconciliation of Reported and Adjusted ("non-GAAP") Net Income:
Net Income		$	11,208			$	50,037			$	11,529			$	61,245			$	23,307
Less: After tax gain on sale of securities			-				-				-				-				(764	)
Add: After-tax expense associated with the prepayment of borrowings			-				-				-				-				750
Less: After tax gain on the sale of real estate (2)			-				(37,483	)			-				(37,483	)			-
Less: After tax credit on curtailment of postretirement health benefits			-				-				-				-				(1,868	)
Adjusted ("non-GAAP") net income		$	11,208			$	12,554			$	11,529			$	23,762			$	21,425
Performance Ratios (Based upon "non-GAAP Net Income" as calculated above):
Reported EPS (Diluted)		$	0.30			$	0.34			$	0.32			$	0.65			$	0.59
Return on Average Assets			0.81	%			0.97	%			1.01	%			0.89	%			0.94	%
Return on Average Stockholders' Equity			8.23	%			9.90	%			9.78	%			9.03	%			9.17	%
Return on Average Tangible Stockholders' Equity			9.01	%			10.91	%			10.84	%			9.92	%			10.18	%
Net Interest Spread			2.50	%			2.63	%			2.88	%			2.57	%			2.74	%
Net Interest Margin			2.68	%			2.80	%			3.05	%			2.74	%			2.93	%
Non-interest Expense to Average Assets			1.31	%			1.38	%			1.44	%			1.35	%			1.48	%
Efficiency Ratio			47.75	%			49.45	%			47.07	%			48.58	%			49.39	%

(1)		Amount comprised of total non-accrual loans, other real estate owned, and the recorded balance of pooled bank trust preferred security investments thatwere deemed to meet the criteria of a non-performing asset.
(2)		The gain on the sale of real estate was taxed at the company's statutory tax rate of 45%.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
(Dollars In thousands)
					For the Three Months Ended
								June 30, 2016										March 31, 2016									June 30, 2015
											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			$	5,138,053		$	47,358			3.69	%		$	4,817,095		$	45,651		3.79	%		$	4,214,674		$	43,473			4.13	%
		Other loans				1,511			24			6.35				1,421			24		6.76				1,535			23			5.99
		Mortgage-backed securities				400			2			2.00				414			2		1.93				461			2			1.74
		Investment securities				20,203			265			5.25				20,217			173		3.42				18,491			121			2.62
		Other short-term investments				148,267			721			1.95				116,496			661		2.27				100,418			579			2.31
			Total interest earning assets			5,308,434		$	48,370			3.64	%			4,955,643		$	46,511		3.75	%			4,335,579		$	44,198			4.08	%
	Non-interest earning assets					201,115										215,725									219,802
Total assets					$	5,509,549									$	5,171,368								$	4,555,381
Liabilities and Stockholders' Equity:
	Interest-bearing liabilities:
		Interest Bearing Checking accounts			$	84,835		$	61			0.29	%		$	79,839		$	56		0.28	%		$	75,739		$	60			0.32	%
		Money Market accounts				1,892,046			3,865			0.82				1,689,903			3,379		0.80				1,335,793			2,441			0.73
		Savings accounts				369,266			44			0.05				367,707			45		0.05				373,430			45			0.05
		Certificates of deposit				1,010,864			3,627			1.44				931,007			3,314		1.43				916,684			3,124			1.37
			Total interest bearing deposits			3,357,011			7,597			0.91				3,068,456			6,794		0.89				2,701,646			5,670			0.84
	Borrowed Funds					1,145,058			5,163			1.81				1,182,114			5,086		1.73				1,010,119			5,458			2.17
		Total interest-bearing liabilities				4,502,069		$	12,760			1.14	%			4,250,570		$	11,880		1.12	%			3,711,765		$	11,128			1.20	%
	Non-interest bearing checking accounts					255,922										260,977									209,847
	Other non-interest-bearing liabilities					206,526										152,670									162,141
		Total liabilities				4,964,517										4,664,217									4,083,753
	Stockholders' equity					545,032										507,151									471,628
Total liabilities and stockholders' equity					$	5,509,549									$	5,171,368								$	4,555,381
Net interest income								$	35,610									$	34,631								$	33,070
Net interest spread												2.50	%								2.63	%									2.88	%
Net interest-earning assets					$	806,365									$	705,073								$	623,814
Net interest margin												2.68	%								2.80	%									3.05	%
Ratio of interest-earning assets to interest-bearing liabilities									117.91	%									116.59	%								116.81	%
Deposits (including non-interest bearing checking accounts)					$	3,612,933		$	7,597			0.85	%		$	3,329,433		$	6,794		0.82	%		$	2,911,493		$	5,670			0.78	%
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment fee income								$	1,978									$	2,618								$	4,194
Real estate loans (excluding net prepayment and late payment fee income)												3.53	%								3.57	%									3.73	%
Interest earning assets (excluding net prepayment and late payment fee income)												3.50	%								3.54	%									3.69	%
Net Interest income (excluding net prepayment and late payment fee income)								$	33,632									$	32,013								$	28,876
Net Interest margin (excluding net prepayment and late payment fee income)												2.53	%								2.58	%									2.66	%

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs")
(Dollars In thousands)
			At June 30,		At March 31,		At June 30,
Non-Performing Loans			2016		2016		2015
	One- to four-family and cooperative/condominium apartment		$ 487		$ 1,102		$ 749
	Multifamily residential and mixed use residential real estate (1)(2)		3,784		287		-
	Mixed use commercial real estate (2)		54		53		-
	Commercial real estate		-		-		207
	Other		4		-		3
Total Non-Performing Loans (3)			$ 4,329		$ 1,442		$ 959
Other Non-Performing Assets
	Non-performing loans held for sale		-		-		333
	Other real estate owned		18		18		148
	Pooled bank trust preferred securities (4)		1,253		1,245		1,219
Total Non-Performing Assets			$ 5,600		$ 2,705		$ 2,659
TDRs not included in non-performing loans (3)
	One- to four-family and cooperative/condominium apartment		32		-		-
	Multifamily residential and mixed use residential real estate (1)(2)		1,058		1,069		1,312
	Mixed use commercial real estate (2)		4,303		4,324		4,385
	Commercial real estate		3,396		3,412		3,459
Total Performing TDRs			$ 8,789		$ 8,805		$ 9,156
(1) Includes loans underlying cooperatives.
(2) While the loans within these categories are often considered "commercial real estate" in nature, they are classified separately in this table
because there is a residential component to the income, which makes them generally viewed as less risky than pure commercial real estate loans.
(3) Total non-performing loans include some loans that were modified in a manner that met the criteria for a TDR. These non-accruing TDRs
totaled $207 at June 30, 2015, and are included in the non-performing loan table, but excluded from the TDR amount shown above. There were
no non-accruing TDRs at June 30, 2016 or March 31, 2016.
(4) As of the dates presented, certain pooled bank trust preferred securities were deemed to meet the criteria of a non-performing asset.
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES
			At June 30,		At March 31,		At June 30,
			2016		2016		2015
Total Non-Performing Assets			$ 5,600		$ 2,705		$ 2,659
Loans 90 days or more past due on accrual status (5)			4,534		4,713		1,044
	TOTAL PROBLEM ASSETS		$ 10,134		$ 7,418		$ 3,703
Tier One Capital - The Dime Savings Bank of Williamsburgh			$ 496,757		$ 487,759		$ 425,334
Allowance for loan losses			18,909		18,513		18,553
	TANGIBLE CAPITAL PLUS RESERVES		$ 515,666		$ 506,272		$ 443,887
PROBLEM ASSETS AS A PERCENTAGE OF
	TANGIBLE CAPITAL AND RESERVES		2.0%		1.5%		0.8%
(5) These loans were, as of the respective dates indicated, expected to be either satisfied, made current or re-financed within the following twelve months, and were not expected to result in any loss of contractual principal or interest. These loans are not included in non-performing loans.