U.S. Markets closed

Dime Community Bancshares, Inc. Reports 175% Year-Over-Year Increase in Business Banking Loan Portfolio

Net interest margin expands by 13 basis points versus the linked quarter

BROOKLYN, N.Y., Jan. 24, 2019 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income of $51.3 million for the fiscal year ended December 31, 2018, or $1.38 per diluted common share. For the quarter ended December 31, 2018, net income was $12.4 million, or $0.34 per diluted common share.

Excluding the impact of $0.7 million of pre-tax severance-related expenses related to a workforce reduction and a $0.7 million reduction in income tax expense associated with a one-time tax rate benefit recognized in conjunction with the filing of the prior year tax return, earnings per share (“EPS”) for the quarter ended December 31, 2018 would have been $0.34, which represents a 6.3% increase versus EPS of $0.32 for the quarter ended September 30, 2018.

The increase in linked quarter EPS was primarily attributable to a 13 basis points linked quarter increase in the net interest margin (“NIM”). Excluding the impact of prepayment related fee income, the NIM increased by 1 basis point on a linked quarter basis.

Relationship Based Business Banking Division Drives Net Interest Margin Expansion

Commenting on the linked quarter NIM expansion, Kenneth J. Mahon, President and CEO of the Company, stated, “The increase in our NIM (excluding the impact of prepayment fees) was driven by the growing contribution of our Business Banking division. The Business Banking division’s loan portfolio reached $648 million (or 12% of total loans) at December 31, 2018, versus $511 million (or 9% of total loans) at September 30, 2018. As the Business Banking portfolio increasingly becomes a larger percentage of our overall balance sheet, we expect our overall loan yields to continue trending upwards. Notably, the ending weighted average rate on the total loan portfolio increased nine basis points when comparing the fourth quarter of 2018 to the third quarter of 2018, versus a seven basis points increase when comparing the third quarter of 2018 to the second quarter of 2018.”

Mr. Mahon continued: “In addition, the linked quarter increase in our cost of deposits was only nine basis points, compared to a twelve basis point increase when comparing the third quarter of 2018 with the second quarter of 2018. Total Business Banking deposits grew to approximately $188 million at year-end and contributed to the lower linked quarter deposit beta. Dime’s new business model is beginning to bear fruit, and the results are becoming more apparent on our financial statements as each quarter passes.”

Repricing Loans, That Have Low Existing Coupons, Provide Significant Re-Mixing Opportunity

Mr. Mahon commented: “As outlined in the table below, Dime has $1.54 billion of real estate loans on its balance sheet that will reach contractual repricings (generally at 200-250 basis points over the then current 5-Year Federal Home Loan Bank advance rate) over the next two years. The presence of these loans on our balance sheet, and the loan origination capabilities we have developed as part of our Business Banking build out, provides us the opportunity to continue growing the core NIM in the year ahead.”

(As of December 31, 2018) FY 2019 FY 2020
Amount of Repricing Real Estate Loans $613.3 million $924.5 million
Weighted Average Rate 3.24% 3.55%

Highlights for the fourth quarter of 2018 included:

  • Continued robust Business Banking originations of $142.4 million in the fourth quarter of 2018, a 176% increase versus the fourth quarter of 2017;
  • New Business Banking loan originations for the fourth quarter of 2018 were at significantly higher rates than the overall portfolio. The weighted average rate (“WAR”) on new Business Banking real estate originations was 5.08% and the WAR on new C&I originations was 6.12% for the quarter ended December 31, 2018, compared to the total real estate and C&I loan portfolio WAR of 3.82% for the quarter ended December 31, 2018;
  • Strong growth in checking account balances. Compared to the fourth quarter of 2017, the sum of average non-interest bearing checking account balances and average interest bearing checking account balances for the fourth quarter of 2018 increased by 18.4% to $502.1 million;
  • In December 2018, the Bank was designated a “Preferred Lender” by the U.S. Small Business Administration ("SBA"). The designation will enable the Bank to make SBA lending approvals more rapidly.  In January 2019, the Bank hired Kevin Gallagher as Senior Vice President and Head of SBA Lending, to lead its SBA Lending division;
  • The Company repurchased 494,249 shares, which represented approximately 1.4% of beginning period shares outstanding, in the fourth quarter of 2018 at a weighted average price of $17.13;
  • Consolidated Company commercial real estate (“CRE”) concentration ratio of 703% at December 31, 2018, versus 775% at December 31, 2017;
  • Nonperforming assets and loans 90 days or more past due on accrual status declined by 42% on a linked quarter basis to $2.4 million at December 31, 2018, and represented only 0.04% of total assets at that date; and
  • Reported book value per share and tangible book value per share (which consists of common equity less goodwill, divided by the number of shares outstanding) grew to $16.68 and $15.14, respectively, at December 31, 2018 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Mr. Mahon commented,We surpassed our internal full year 2018 loan portfolio net growth target for the Business Banking division by over $90 million and expect continued strong growth for this portfolio during 2019. We remain steadfast in our belief that the Business Banking division will accelerate the re-mixing of our balance sheet towards a more relationship-driven model and drive solid, long-term risk adjusted commercial-bank like margins and returns.”

Management’s Discussion of Fiscal Year 2018 Operating Results

Net Interest Income

Net interest income in 2018 was $146.3 million, a decrease of $6.4 million (-4.2%) from 2017. The decrease reflects a $9.6 million increase in interest income offset by a $16.0 million increase in interest expense. Net interest margin was 2.41% during 2018, compared to 2.54% in 2017.

Balance Sheet

Total assets decreased by $82.9 million (-1.3%) in 2018, primarily the result of a decrease in loans of $209.0 million, partially offset by an increase in securities of $150.4 million.  Mr. Mahon commented, “We are pleased that our decision to contain asset growth for 2018 produced the desired results on core NIM. While the size of our balance sheet contracted a modest amount in 2018, we were focused on creating a higher quality balance sheet with the intermediate-term goal of growing linked quarter core NIM by year-end, which we successfully accomplished. As mentioned previously, relationship-based Business Banking loans now comprise 12% of our loan portfolio and we intend to continue growing this component of our balance sheet in 2019.” Total deposits decreased $46.7 million from 2018 to 2017. Mr. Mahon continued, “Total deposits declined by approximately 1% on a year-over-year basis, primarily due to approximately $415 million of net outflows from our DimeDirect internet channel, as we did not raise our posted rates beyond 1.35%. The current internet channel deposit portfolio is down to approximately $291 million at year-end 2018, and we expect the magnitude of dollar outflows to decline over time, resulting in less of a headwind to grow overall deposits over time. Most importantly, we improved the quality of our deposit base over the course of 2018, as evidenced by the non-interest- bearing deposits to total deposits ratio increasing by over 200 basis points on a year-over-year basis. We continue to manage our deposit pricing to remain competitive with the market while keeping our loan-to-deposit ratio range at approximately 125%. We remain committed to managing the balance sheet and the loan-to-deposit ratio with the goal of keeping deposit betas as low as possible. This past year, the results have met our financial objectives.” We reduced our reliance on Federal Home Loan Bank advances, as that portfolio declined by approximately $44.7 million on a year-over-year basis.

Non-Interest Income

Non-interest income of $9.5 million in 2018 included gains of $1.4 million on securities and other assets and $0.3 million from the sale of loans. Non-interest income of $21.5 million in 2017 included gains of $10.4 million from the sale of premises, $2.6 million from securities and other assets, and $1.5 million from the sale of loans. Excluding these gains, non-interest income was $7.9 million in 2018 and $7.0 million in 2017.

Non-Interest Expense

Non-interest expense was $86.9 million in 2018 and $85.0 million during 2017. During 2018, the Company recognized $0.7 million of severance expense related to a reduction in the workforce in the fourth quarter of 2018.  During 2017, the Company recognized non-recurring expenses of $1.3 million for loss on extinguishment of debt related to the redemption of trust preferred securities and $1.7 million related to de-conversion costs associated with the planned change in the Bank’s core processor. Excluding these items, non-interest expense was $86.2 million in 2018 and $82.0 million in 2017, an increase of $4.2 million in 2018. The increase was primarily the result of increased salaries and employee benefits as the Company added relationship bankers and support staff for its Business Banking buildout.

The ratio of non-interest expense to average assets was 1.38% in 2018 compared to 1.37% in 2017. Excluding the non-recurring expenses mentioned above, the ratio was 1.37% and 1.32% for 2018 and 2017, respectively. The efficiency ratio was 56.25% in 2018, up from 53.24% in 2017. Excluding the non-recurring expenses mentioned above, the ratio was 55.77% and 51.37% for 2018 and 2017, respectively.

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income in the fourth quarter of 2018 was $37.2 million, higher than the $35.0 million for the third quarter of 2018, and a decrease of $1.6 million (-4.1%) over the fourth quarter of 2017.  NIM was 2.46% during the fourth quarter of 2018, compared to 2.33% in the third quarter of 2018, and 2.50% in the fourth quarter of 2017. For the fourth quarter of 2018, income from prepayment activity totaled $3.2 million, benefiting NIM by 21 basis points, compared to $1.3 million, or 9 basis points, during the third quarter of 2018, and $1.3 million, or 8 basis points, during the fourth quarter of 2017.

Average interest-earning assets were $6.03 billion for the fourth quarter of 2018, representing a 1.0% (annualized) increase from $6.02 billion for the third quarter of 2018 and a 2.8% decrease from $6.20 billion for the fourth quarter of 2017.

For the fourth quarter of 2018, the average yield on interest-earning assets was 3.85%, an increase of 22 basis points compared with the third quarter of 2018, and an increase of 33 basis points compared to the fourth quarter of 2017.  The average cost of funds (which includes Federal Home Loan Bank advances) was 1.63% for the fourth quarter of 2018, an increase of 11 basis points versus the third quarter of 2018, and an increase of 44 basis points versus the fourth quarter of 2017.

Loans

The real estate loan portfolio decreased by $41.5 million during the fourth quarter of 2018.  Real estate loan originations were $232.8 million during the quarter, at a weighted average interest rate of 4.89%. Real estate loan amortization and satisfactions totaled $267.6 million, or 20.7% (annualized) of the portfolio balance, at an average rate of 3.69%. The annualized real estate loan payoff rate of 20.7% for fourth quarter 2018 was higher than both the third quarter 2018 (14.0%) and the fourth quarter 2017 (10.2%). Average real estate loans were $5.18 billion in the fourth quarter of 2018, a decrease of $20.2 million (-1.6% annualized) from the third quarter of 2018 and a decrease of $644.0 million (-11.1%) from the fourth quarter of 2017.

Outlined below are the loan originations for the current quarter, linked quarter and year-ago quarter.

($s in millions) Originations/ Weighted Average Rate
Real Estate Originations Q4 2018 Q3 2018 Q4 2017
Non-Business Banking $131.6/4.74% $  47.2/4.71% $46.5/4.14%
Business Banking $101.2/5.08% $101.8/4.99% $24.1/4.78%
Total Real Estate $232.8/4.89% $149.0/4.90% $70.6/4.36%
C&I Originations  $  41.2/6.12% $  44.3/5.67% $27.5/4.94%

Deposits and Borrowed Funds

The Company continues to focus on growing relationship-based business deposits sourced from its retail branches and its Business Banking division.  The Business Banking division ended the fourth quarter of 2018 with approximately $98.7 million of low-cost relationship-based checking and leasehold deposits at an average rate of approximately 1 basis point and total deposits of $188.2 million at an average rate of 51 basis points, compared to approximately $52.2 million of checking and leasehold deposits at an average rate of approximately 1 basis point and total deposits of $77.3 million at an average rate of 13 basis points, respectively, for the year-ago time period.

The cost of total deposits increased 9 basis points on a linked quarter basis, compared to a 12 basis points increase when comparing the third quarter of 2018 to the second quarter of 2018. Total deposits decreased by $25.5 million on a linked quarter basis to $4.36 billion, due to net outflows from the DimeDirect internet channel totaling $88.2 million offset by $62.7 million of growth in all other deposit categories.

The loan-to-deposit ratio was 123.8% at December 31, 2018, compared to 123.5% at September 30, 2018 and 127.2% at December 31, 2017.

Total borrowings increased $82.4 million during the fourth quarter of 2018 versus the third quarter of 2018.  At December 31, 2018, 32.7% of the $1.13 billion Federal Home Loan Bank borrowing portfolio consisted of bullet advances that have a remaining term of less than a year, compared to 45.5% of the $1.17 billion Federal Home Loan Bank borrowing portfolio from the prior year end.

Non-Interest Income

Non-interest income was $1.8 million during the fourth quarter of 2018.  Non-interest income for the third quarter of 2018 was $2.2 million. In the fourth quarter of 2017, non-interest income was $13.7 million which included $10.4 million from the sale of premises and $1.5 million on the sale of loans; excluding these items, non-interest income for the fourth quarter of 2017 was $1.8 million.

Non-Interest Expense

Non-interest expense was $22.7 million during the fourth quarter of 2018, $21.6 million during the third quarter of 2018, and $22.6 million during the fourth quarter of 2017. During the fourth quarter the Company recognized a non-recurring expense of $0.7 million for severance expense related to a reduction in the workforce.

Excluding the non-recurring item in the fourth quarter of 2018, non-interest expense was $22.0 million.

The ratio of non-interest expense to average assets was 1.46% during the fourth quarter of 2018, higher than the third quarter of 2018 (1.39%), and higher than the fourth quarter of 2017 (1.41%). The efficiency ratio was 57.98% during the fourth quarter of 2018, compared to 58.13% during the linked quarter and 55.63% during the fourth quarter of 2017. Excluding the non-recurring expenses mentioned above, the ratio of non-interest expense to average assets was 1.41% and the efficiency ratio was 56.12% during the fourth quarter of 2018. 

Income Tax Expense and Deferred Tax Asset and Liability Re-evaluation

The effective income tax rate was 20.4% during the fourth quarter of 2018, lower than the 23.1% recorded in the third quarter of 2018. As disclosed previously, in the fourth quarter of 2018, the Company recognized a one-time tax rate benefit in conjunction with the filing of the prior year tax return.

Credit Quality

Non-performing loans were $2.3 million, or 0.04% of total loans, at December 31, 2018, a decrease from $3.0 million, or 0.05% of total loans, at September 30, 2018. The allowance for loan losses was 0.40% of total loans at December 31, 2018, up slightly from the 0.39% at September 30, 2018. At December 31, 2018, non-performing assets represented 0.4% of the sum of tangible capital plus the allowance for loan losses (this non-Generally Accepted Accounting Principle (“GAAP”) statistic is otherwise known as the "Texas Ratio") (see table at the end of this news release).  A provision for loan losses of $0.6 million was recorded during the fourth quarter of 2018, compared to a loan loss provision of $0.3 million during the third quarter of 2018.

Capital Management

The Company’s consolidated Tier 1 capital to average assets (“leverage ratio”), which was 8.92% at December 31, 2018, was in excess of all applicable regulatory requirements.

The Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements, inclusive of conservation buffer amounts. At December 31, 2018, the Bank’s leverage ratio was 10.31%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 13.36% and 13.82%, respectively.

Mr. Mahon commented, “During the fourth quarter of 2018, the Board of Directors approved our thirteenth share repurchase program. We believe that the share repurchase program is consistent with the Company’s objectives to enhance long-term shareholder value. As disclosed previously, the Company repurchased 1.4% of beginning period shares outstanding in the fourth quarter at a weighted average price of $17.13.”

Diluted earnings per common share exceeded the quarterly $0.14 cash dividend per share by 142.86% during the fourth quarter of 2018, equating to a 41.18% payout ratio.

Book value per share was $16.68 and tangible book value (common equity less goodwill divided by number of shares outstanding) per share was $15.14 at December 31, 2018.

Earnings Call Information

The Company will conduct a conference call at 5:30 p.m. (ET) on January 24, 2019, during which President and Chief Executive Officer, Kenneth J. Mahon, will discuss the Company’s fourth quarter and fiscal year performance, with a Q&A session to follow. Dial-in information for the live call is 1-888-317-6016. Upon dialing in, request to be joined into Dime Community Bancshares, Inc. call with the conference operator.

The conference call will be simultaneously webcast (listen only), and archived for a period of one year, at https://services.choruscall.com/links/dcom190124.html. Dial-in information for the replay is 1-877-344-7529 using access code #10127443. Replay will be available January 24, 2019 (6:30 p.m.) through January 31, 2019 (11:59 p.m.).

ABOUT DIME COMMUNITY BANCSHARES, INC.

The Company had $6.32 billion in consolidated assets as of December 31, 2018, and is the parent company of the Bank. The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-nine branches located throughout Brooklyn, Queens, the Bronx, and Nassau County and Suffolk Counties, 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," “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. 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 the Company and/or the Bank; changes in tax laws or 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.  Accordingly, you should not place undue reliance on forward-looking statements.  See the section entitled “Risk Factors” in the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q that we file with the Securities and Exchange Commission for more information. 

Contact: Avinash Reddy
Executive Vice President – Chief Financial Officer
718-782-6200 extension 5909

 
DIME COMMUNITY BANCSHARES,  INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands except share amounts)
           
   December 31,     September 30,     December 31, 
     2018         2018         2017   
ASSETS:          
Cash and due from banks $ 147,256     $ 132,822     $ 169,455  
Mortgage-backed securities available for sale   466,605       465,490       351,384  
Investment securities available for sale   36,280       5,088       4,006  
Marketable equity securities, at fair value   5,667       6,111       -  
Trading securities   -       -       2,715  
Real Estate Loans:                      
One-to-four family and cooperative/condominium apartment   96,847       71,464       63,095  
Multifamily residential and residential mixed use (1)(2)   3,866,788       4,015,424       4,381,180  
Commercial real estate   1,170,085       1,106,430       1,010,603  
Acquisition, development, and construction ("ADC")   29,402       11,144       9,189  
Total real estate loans   5,163,122       5,204,462       5,464,067  
Commercial and industrial ("C&I")   229,504       207,743       136,671  
Other loans   1,192       1,162       1,379  
Allowance for loan losses   (21,782 )     (21,330 )     (21,033 )
Total loans, net   5,372,036       5,392,037       5,581,084  
Premises and fixed assets, net   24,713       24,736       24,326  
Loans held for sale   1,097       -       -  
Federal Home Loan Bank of New York capital stock   57,551       53,842       59,696  
Bank Owned Life Insurance ("BOLI")   111,427       110,706       108,545  
Goodwill   55,638       55,638       55,638  
Other assets   42,308       47,723       46,611  
TOTAL ASSETS $ 6,320,578     $ 6,294,193     $ 6,403,460  
LIABILITIES AND STOCKHOLDERS' EQUITY:                      
Deposits:                      
Non-interest bearing checking $ 395,477     $ 368,780     $ 307,746  
Interest-bearing checking   115,972       112,180       124,283  
Savings   336,669       342,908       362,092  
Money Market   2,098,599       2,220,719       2,517,439  
Sub-total   2,946,717       3,044,587       3,311,560  
Certificates of deposit   1,410,037       1,337,663       1,091,887  
Total Due to Depositors   4,356,754       4,382,250       4,403,447  
Escrow and other deposits   85,234       119,796       82,168  
Federal Home Loan Bank of New York advances   1,125,350       1,042,925       1,170,000  
Subordinated Notes Payable, net   113,759       113,722       113,612  
Other liabilities   37,400       31,923       35,666  
TOTAL LIABILITIES   5,718,497       5,690,616       5,804,893  
STOCKHOLDERS' EQUITY:                      
Common stock ($0.01 par, 125,000,000 shares authorized, 53,690,825 shares, 53,690,825 shares and                      
53,624,453 shares issued at December 31, 2018, September 30, 2018, and December 31, 2017,                      
respectively, and  36,092,952 shares, 36,612,153 shares and 37,419,070  shares outstanding                      
at December 31, 2018, September 30, 2018 and December 31, 2017, respectively)   537       537       536  
Additional paid-in capital   277,512       277,718       276,730  
Retained earnings   565,713       558,357       535,130  
Accumulated other comprehensive loss, net of deferred taxes   (6,500 )     (5,734 )     (3,641 )
Unearned Restricted Stock Award common stock   (3,623 )     (4,699 )     (2,894 )
Common stock held by the Benefit Maintenance Plan   (1,509 )     (1,509 )     (2,736 )
Treasury stock (17,597,873 shares, 17,078,672 shares and 16,205,383 shares                      
at December 31, 2018, September 30, 2018, and December 31, 2017, respectively)   (230,049 )     (221,093 )     (204,558 )
TOTAL STOCKHOLDERS' EQUITY   602,081       603,577       598,567  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 6,320,578     $ 6,294,193     $ 6,403,460  
                       
(1) Includes loans underlying 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)
                   
  For the Three Months  Ended   For the Year Ended
  December 31,   September 30,   December 31,   December 31,   December 31,
    2018       2018     2017       2018       2017
Interest income:                                  
Loans secured by real estate $ 49,953     $ 47,486   $ 51,254     $ 194,842     $ 204,487
Commercial and industrial ("C&I")   3,200       2,729     1,514       9,741       3,072
Other loans   19       18     20       74       75
Mortgage-backed securities   3,279       2,852     487       10,794       542
Investment securities   240       59     115       363       577
Other short-term investments   1,359       1,480     1,204       5,896       3,343
Total interest  income   58,050       54,624     54,594       221,710       212,096
Interest expense:                                  
Deposits and escrow   14,289       13,361     9,967       50,389       38,391
Borrowed funds   6,611       6,235     5,895       24,995       20,975
Total interest expense   20,900       19,596     15,862       75,384       59,366
Net interest income   37,150       35,028     38,732       146,326       152,730
Provision for loan losses    603       335     (1,000 )     2,244       520
Net interest income after  provision                                  
for loan losses   36,547       34,693     39,732       144,082       152,210
                                   
Non-interest income:                                  
Service charges and other fees   1,199       1,233     1,167       4,642       3,828
Mortgage banking income, net   75       79     51       367       201
Gain (loss) on equity and trading securities   (416 )     99     (29 )     (302 )     133
Gain on sale of securities and other assets   -       -     -       1,370       2,607
Gain on sale of loans   159       18     1,475       302       1,475
Gain on the sale of premises held for sale   -       -     10,412       -       10,412
Income from BOLI   721       729     563       2,882       2,217
Other   83       63     67       262       641
Total non-interest income   1,821       2,221     13,706       9,523       21,514
Non-interest expense:                                  
Salaries and employee benefits   12,042       10,963     9,777       45,066       37,354
Stock benefit plan compensation expense   326       403     339       1,524       1,369
Occupancy and equipment   3,836       3,845     3,581       15,250       14,201
Data processing costs   1,635       1,823     1,778       7,009       8,280
Marketing   1,030       975     1,375       3,198       5,774
Federal deposit insurance premiums   448       382     724       1,969       2,966
Loss from extinguishment of debt           -     -       -       1,272
Other   3,428       3,194     4,999       12,874       13,770
Total non-interest expense   22,745       21,585     22,573       86,890       84,986
                                   
Income before taxes   15,623       15,329     30,865       66,715       88,738
Income tax expense   3,183       3,547     15,442       15,427       36,856
                                   
Net Income $ 12,440     $ 11,782   $ 15,423     $ 51,288     $ 51,882
                                   
Earnings per Share ("EPS"):                                   
Basic  $ 0.34     $ 0.32   $ 0.41     $ 1.38     $ 1.38
Diluted  $ 0.34     $ 0.32   $ 0.41     $ 1.38     $ 1.38
                                   
Average common shares outstanding                                  
for Diluted EPS     36,296,298         37,189,648       37,432,283         37,087,762         37,510,449
                                   

  

...
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,
    2018       2018       2017       2018       2017  
Per Share Data:                                      
Reported EPS (Diluted) $ 0.34     $ 0.32     $ 0.41     $ 1.38     $ 1.38  
Cash dividends paid per share   0.14       0.14       0.14       0.56       0.56  
Book value per share   16.68       16.49       16.00       16.68       16.00  
Tangible book value per share (1)   15.14       14.97       14.51       15.14       14.51  
Dividend payout ratio   41.18 %     43.75 %     34.15 %     40.58 %     40.58 %
                                       
Performance Ratios (Based upon Reported Net Income):                                      
Return on average assets   0.80 %     0.76 %     0.96 %     0.82 %     0.84 %
Return on average common equity   8.25 %     7.71 %     10.41 %     8.44 %     8.94 %
Return on average tangible common equity (1)   9.08 %     8.49 %     11.49 %     9.30 %     9.89 %
Net interest spread   2.22 %     2.11 %     2.33 %     2.20 %     2.38 %
Net interest margin   2.46 %     2.33 %     2.50 %     2.41 %     2.54 %
Average interest-earning assets to average interest-bearing liabilities   118.71 %     117.46 %     117.07 %     117.47 %     116.55 %
Non-interest expense to average assets   1.46 %     1.39 %     1.41 %     1.38 %     1.37 %
Efficiency ratio   57.98 %     58.13 %     55.63 %     56.25 %     53.24 %
Loan-to-deposit ratio at end of period   123.80 %     123.53 %     127.22 %     123.80 %     127.22 %
CRE consolidated concentration ratio (2)   702.7 %     706.1 %     775.2 %     702.7 %     775.2 %
Effective tax rate   20.37 %     23.14 %     50.03 %     23.12 %     41.53 %
                                       
Average Balance Data:                                      
Average assets $ 6,251,691     $ 6,231,801     $ 6,400,719     $ 6,279,483     $ 6,211,645  
Average interest-earning assets   6,031,823       6,016,728       6,203,511       6,060,291       6,007,562  
Average loans   5,400,166       5,388,065       5,949,955       5,454,128       5,843,409  
Average deposits   4,349,419       4,386,631       4,351,863       4,377,439       4,417,287  
Average common equity   603,358       611,022       592,762       607,353       580,430  
Average tangible common equity (1)   547,721       555,385