Acceleration in Core Deposit Growth Drives Increase in Quarterly Net Interest Margin to 2.50%

Balance Sheet Well Positioned to Benefit From Federal Reserve Rate Cuts

HAUPPAUGE, N.Y., Oct. 22, 2024 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ:DCOM) (the "Company" or "Dime"), the parent company of Dime Community Bank (the "Bank"), today reported net income available to common stockholders of $11.5 million for the quarter ended September 30, 2024, or $0.29 per diluted common share, compared to $16.7 million, or $0.43 per diluted common share, for the quarter ended June 30, 2024, and $13.2 million, or $0.34 per diluted common share for the quarter ended September 30, 2023.

Stuart H. Lubow, President and Chief Executive Officer ("CEO") of the Company, stated, "Strong growth in low-cost core deposits drove a significant linked quarter expansion in the Net Interest Margin. Importantly, following the recent 50 basis point reduction in the Federal Funds rate, we lowered deposit costs and expect to benefit from these actions in the fourth quarter and beyond. Since the Federal Reserve rate cut in mid-September, the spread between the weighted average rate on loans and core deposits has improved by approximately 15 basis points. We anticipate the full quarter impact of this spread improvement to drive continued Net Interest Margin expansion in the fourth quarter."

Mr. Lubow commented, "During the third quarter, our Business loan portfolio increased by over $120 million and we continue to have strong pipelines in our Middle Market and Healthcare verticals. Compared to the prior quarter, the level of net charge-offs and criticized and classified loans remained stable and we continued to prudently build our allowance for credit losses to total loans and risk-based capital levels. In conclusion, I am extremely proud of our employees for their unwavering focus on our customers and enabling us to be the premier business bank on Greater Long Island."

Highlights for the Third Quarter of 2024 Included:

Total deposits increased $389 million compared to the second quarter of 2024;
Core deposits (excluding brokered and time deposits) increased $505 million compared to the second quarter of 2024;
The ratio of average non-interest-bearing deposits to average total deposits for the third quarter was 29% compared to 28% for the second quarter of 2024;
The cost of total deposits declined by 4 basis point versus the prior quarter;
The net interest margin increased to 2.50% for the third quarter of 2024 compared to 2.41% for the prior quarter;
The loan to deposit ratio declined to 95.4% at the end of the third quarter compared to 98.2% for the prior quarter;
Net charge-offs to average loans was 0.15% for the third quarter of 2024 compared to 0.14% for prior quarter;
The allowance for credit losses to total loans increased to 0.78% at the end of the third quarter compared to 0.72% for the prior quarter; and
The Company's total risk based capital ratio increased to 14.76% at the end of the third quarter compared to 14.46% for the prior quarter.

Management's Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the third quarter of 2024 was $79.9 million compared to $75.5 million for the second quarter of 2024 and $76.5 million for the third quarter of 2023.

The table below provides a reconciliation of the reported net interest margin ("NIM") and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.


(Dollars in thousands)	Q3 2024				Q2 2024				Q3 2023
Net interest income	$	79,924			$	75,502			$	76,479
Purchase accounting amortization (accretion) on loans ("PAA")		(266	)			(101	)			186
Adjusted net interest income excluding PAA on loans (non-GAAP)	$	79,658			$	75,401			$	76,665

Average interest-earning assets	$	12,734,246			$	12,624,556			$	12,984,061

NIM⁽¹⁾		2.50		%		2.41		%		2.34	%
Adjusted NIM excluding PAA on loans (non-GAAP)⁽²⁾		2.49		%		2.40		%		2.34	%

⁽¹⁾NIM represents net interest income divided by average interest-earning assets.

⁽²⁾Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets.

During the quarter ended June 30, 2024, there was a recovery of interest income from a loan that was previously on non-accrual status in the amount of $1.3 million. Excluding the impact of this item, the second quarter NIM was 2.37%.

Loan Portfolio

The ending WAR on the total loan portfolio was 5.40% at September 30, 2024, a 1 basis point increase compared to the ending WAR of 5.39% on the total loan portfolio at June 30, 2024.

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


	September 30, 2024				June 30, 2024				September 30, 2023
(Dollars in thousands)	Balance		WAR⁽¹⁾		Balance		WAR⁽¹⁾		Balance		WAR⁽¹⁾
Loans held for investment balances at period end:
Business loans ⁽²⁾	$	2,653,624	6.82	%	$	2,530,896	6.92	%	$	2,271,768	6.72	%
One-to-four family residential, including condominium and cooperative apartment		934,209	4.65			906,949	4.55			892,869	4.39
Multifamily residential and residential mixed-use ⁽³⁾⁽⁴⁾		3,866,931	4.60			3,920,354	4.59			4,102,024	4.45
Non-owner-occupied commercial real estate		3,281,923	5.25			3,315,100	5.25			3,374,281	5.09
Acquisition, development, and construction		149,299	8.46			144,860	8.96			203,402	8.92
Other loans		6,058	10.71			6,699	3.39			6,267	6.28
Loans held for investment	$	10,892,044	5.40	%	$	10,824,858	5.39	%	$	10,850,611	5.20	%

⁽¹⁾ WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.

⁽²⁾ Business loans include commercial and industrial loans and owner-occupied commercial real estate loans.

⁽³⁾ Includes loans underlying multifamily cooperatives.

⁽⁴⁾ While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Outlined below are the loan originations, for the quarter ended as indicated.


(Dollars in millions)	Q3 2024		Q2 2024		Q3 2023
Loan originations	$	122.7	$	162.4	$	153.4

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at September 30, 2024 were $11.42 billion, compared to $11.03 billion at June 30, 2024 and $10.53 billion at December 31, 2023.

Total Federal Home Loan Bank advances were $508.0 million at September 30, 2024 compared to $633.0 million at June 30, 2024 and $1.31 billion at December 31, 2023.

Mr. Lubow commented, "During the third quarter of 2024, we continued our strategy of utilizing core deposit growth to reduce our wholesale funding position."

Non-Interest Income

Non-interest income was $7.6 million during the third quarter of 2024, $11.8 million during the second quarter of 2024, and $7.9 million during the third quarter of 2023. Included in non-interest income for the second quarter of 2024, was income related to the sale of premises of approximately $3.7 million.

Non-Interest Expense

Total non-interest expense was $57.7 million during the third quarter of 2024, $55.7 million during the second quarter of 2024, and $59.5 million during the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $57.4 million during the third quarter of 2024, $55.4 million during the second quarter of 2024, and $50.6 million during the third quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

Mr. Lubow commented, "As we have communicated previously, the increase in non-interest expense has been due to the significant investments and hires in the Private and Commercial Bank and the Middle Market C&I Lending operations. Third quarter results reflected a fully-loaded run-rate for these initiatives and we expect to keep our expense base relatively flat in the fourth quarter of 2024."

The ratio of non-interest expense to average assets was 1.71% during the third quarter of 2024, compared to 1.66% during the linked quarter and 1.73% for the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.70% during the third quarter of 2024, compared to 1.65% during the linked quarter and 1.48% for the third quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

The efficiency ratio was 65.9% during the third quarter of 2024, compared to 63.8% during the linked quarter and 70.5% during the third quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 65.6% during the third quarter of 2024, compared to 65.9% during the linked quarter and 59.7% during the third quarter of 2023 (see "Non-GAAP Reconciliation" tables at the end of this news release).

Income Tax Expense

The reported effective tax rate for the third quarter of 2024 was 26.9% compared to 29.0% for the second quarter of 2024, and 35.1% for the third quarter of 2023.

Credit Quality

Non-performing loans were $49.5 million at September 30, 2024, compared to $24.8 million for the prior quarter.

A credit loss provision of $11.6 million was recorded during the third quarter of 2024, compared to a credit loss provision of $5.6 million during the second quarter of 2024, and a credit loss provision of $1.8 million during the third quarter of 2023.

Capital Management

The Company's and the Bank's regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of September 30, 2024. All risk-based regulatory capital ratios increased in the third quarter of 2024.

Dividends per common share were $0.25 during the third and second quarters of 2024, respectively.

Book value per common share was $29.31 at September 30, 2024 compared to $28.97 at June 30, 2024.

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.22 at September 30, 2024 compared to $24.87 at June 30, 2024 (see "Non-GAAP Reconciliation" tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 9:00 a.m. (ET) on Tuesday, October 22, 2024, during which CEO Lubow will discuss the Company's third quarter 2024 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/hfnjf6ym. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI017781a02def49c0ad228b72ba201600. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/hfnjf6ym.

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 $13.7 billion in assets and the number one deposit market share among community banks on Greater Long Island⁽¹⁾.

⁽¹⁾ Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "annualized," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company's loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company's financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company's business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled "Forward-Looking Statements" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and updates set forth in the Company's subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

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

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands)

	September 30,			June 30,			December 31,
	2024			2024			2023
Assets:
Cash and due from banks	$	626,056		$	413,983		$	457,547
Securities available-for-sale, at fair value		774,608			819,222			886,240
Securities held-to-maturity		592,414			588,000			594,639
Loans held for sale		13,098			14,766			10,159
Loans held for investment, net:
Business loans ⁽¹⁾		2,653,624			2,530,896			2,310,379
One-to-four family and cooperative/condominium apartment		934,209			906,949			889,236
Multifamily residential and residential mixed-use ⁽²⁾⁽³⁾		3,866,931			3,920,354			4,017,703
Non-owner-occupied commercial real estate		3,281,923			3,315,100			3,381,842
Acquisition, development and construction		149,299			144,860			168,513
Other loans		6,058			6,699			5,755
Allowance for credit losses		(85,221	)		(77,812	)		(71,743	)
Total loans held for investment, net		10,806,823			10,747,046			10,701,685
Premises and fixed assets, net		35,066			36,054			44,868
Premises held for sale		—			—			905
Restricted stock		64,235			68,445			98,750
Bank Owned Life Insurance ("BOLI")		372,367			354,761			349,816
Goodwill		155,797			155,797			155,797
Other intangible assets		4,181			4,467			5,059
Operating lease assets		48,537			51,703			52,729
Derivative assets		105,636			134,489			122,132
Accrued interest receivable		54,578			55,588			55,666
Other assets		93,133			104,442			100,013
Total assets	$	13,746,529		$	13,548,763		$	13,636,005
Liabilities:
Non-interest-bearing checking (excluding mortgage escrow deposits)	$	3,231,160		$	3,012,481		$	2,884,378
Interest-bearing checking		938,070			633,721			515,987
Savings (excluding mortgage escrow deposits)		1,845,266			2,340,222			2,335,354
Money market		3,898,509			3,607,090			3,125,996
Certificates of deposit		1,416,467			1,382,271			1,607,683
Deposits (excluding mortgage escrow deposits)		11,329,472			10,975,785			10,469,398
Non-interest-bearing mortgage escrow deposits		87,841			52,647			61,121
Interest-bearing mortgage escrow deposits		5			2			136
Total mortgage escrow deposits		87,846			52,649			61,257
FHLBNY advances		508,000			633,000			1,313,000
Subordinated debt, net		272,300			262,814			200,196
Derivative cash collateral		68,960			130,090			108,100
Operating lease liabilities		51,362			54,530			55,454
Derivative liabilities		98,108			122,567			121,265
Other liabilities		66,552			66,732			81,110
Total liabilities		12,482,600			12,298,167			12,409,780
Stockholders' equity:
Preferred stock, Series A		116,569			116,569			116,569
Common stock		416			416			416
Additional paid-in capital		488,607			488,760			494,454
Retained earnings		827,690			826,080			813,007
Accumulated other comprehensive loss ("AOCI"), net of deferred taxes		(72,970	)		(82,780	)		(91,579	)
Unearned equity awards		(10,111	)		(12,023	)		(8,622	)
Treasury stock, at cost		(86,272	)		(86,426	)		(98,020	)
Total stockholders' equity		1,263,929			1,250,596			1,226,225
Total liabilities and stockholders' equity	$	13,746,529		$	13,548,763		$	13,636,005

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program ("PPP") loans.

⁽²⁾ Includes loans underlying multifamily cooperatives.

⁽³⁾ While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except share and per share amounts)

	Three Months Ended								Nine Months Ended
	September 30,		June 30,			September 30,			September 30,			September 30,
	2024		2024			2023			2024			2023
Interest income:
Loans	$	151,828	$	147,099		$	142,995		$	442,492		$	409,744
Securities		7,766		7,907			7,916			23,553			24,261
Other short-term investments		4,645		4,412			6,930			18,621			16,599
Total interest income		164,239		159,418			157,841			484,666			450,604
Interest expense:
Deposits and escrow		74,025		72,878			62,507			219,972			152,395
Borrowed funds		8,764		9,033			16,925			32,494			50,855
Derivative cash collateral		1,526		2,005			1,930			5,244			4,904
Total interest expense		84,315		83,916			81,362			257,710			208,154
Net interest income		79,924		75,502			76,479			226,956			242,450
Provision (recovery) for credit losses		11,603		5,585			1,806			22,398			(950	)
Net interest income after provision (recovery)		68,321		69,917			74,673			204,558			243,400
Non-interest income:
Service charges and other fees		4,267		3,972			3,963			12,783			12,633
Title fees		190		294			291			617			829
Loan level derivative income		132		1,085			783			1,623			6,353
BOLI income		2,606		2,484			2,317			7,551			7,332
Gain on sale of Small Business Administration ("SBA") loans		19		113			335			385			1,061
Gain on sale of residential loans		38		27			21			142			103
Fair value change in equity securities and loans held for sale		39		(416	)		(299	)		(1,219	)		(1,079	)
Net loss on sale of securities		—		—			—			—			(1,447	)
Gain (loss) on sale of other assets		2		3,695			(22	)		6,665			(22	)
Other		338		554			539			1,359			1,571
Total non-interest income		7,631		11,808			7,928			29,906			27,334
Non-interest expense:
Salaries and employee benefits		36,132		32,184			30,520			100,353			87,054
Severance		—		—			8,562			42			9,068
Occupancy and equipment		7,448		7,409			7,277			22,225			21,794
Data processing costs		4,544		4,405			4,309			13,262			12,744
Marketing		1,629		1,637			2,079			4,763			5,016
Professional services		2,036		2,766			1,277			6,269			4,876
Federal deposit insurance premiums		2,105		2,250			1,866			6,594			5,613
Loss on extinguishment of debt		1		—			—			454			—
Amortization of other intangible assets		286		285			349			878			1,075
Other		3,548		4,758			3,284			11,094			11,944
Total non-interest expense		57,729		55,694			59,523			165,934			159,184
Income before taxes		18,223		26,031			23,078			68,530			111,550
Income tax expense		4,896		7,552			8,093			19,033			31,764
Net income		13,327		18,479			14,985			49,497			79,786
Preferred stock dividends		1,822		1,822			1,822			5,465			5,465
Net income available to common stockholders	$	11,505	$	16,657		$	13,163		$	44,032		$	74,321
Earnings per common share ("EPS"):
Basic	$	0.29	$	0.43		$	0.34		$	1.13		$	1.92
Diluted	$	0.29	$	0.43		$	0.34		$	1.13		$	1.92

Average common shares outstanding for diluted EPS		38,366,619		38,329,485			38,203,961			38,317,223			38,177,704

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 Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Per Share Data:
Reported EPS (Diluted)	$	0.29		$	0.43		$	0.34		$	1.13		$	1.92
Cash dividends paid per common share		0.25			0.25			0.25			0.75			0.74
Book value per common share		29.31			28.97			28.03			29.31			28.03
Tangible common book value per share ⁽¹⁾		25.22			24.87			23.87			25.22			23.87
Common shares outstanding		39,152			39,148			38,811			39,152			38,811
Dividend payout ratio		86.21	%		58.14	%		73.53	%		66.37	%		38.54	%

Performance Ratios (Based upon Reported Net Income):
Return on average assets		0.39	%		0.55	%		0.44	%		0.49	%		0.78	%
Return on average equity		4.19			5.88			4.91			5.24			8.78
Return on average tangible common equity ⁽¹⁾		4.70			6.88			5.69			6.06			10.73
Net interest margin		2.50			2.41			2.34			2.37			2.52
Non-interest expense to average assets		1.71			1.66			1.73			1.63			1.56
Efficiency ratio		65.9			63.8			70.5			64.6			59.0
Effective tax rate		26.87			29.01			35.07			27.77			28.48

Balance Sheet Data:
Average assets	$	13,502,753		$	13,418,441		$	13,759,493		$	13,571,710		$	13,623,570
Average interest-earning assets		12,734,246			12,624,556			12,984,061			12,791,233			12,853,701
Average tangible common equity ⁽¹⁾		996,578			979,611			943,805			981,614			933,072
Loan-to-deposit ratio at end of period⁽²⁾		95.4			98.2			102.0			95.4			102.0

Capital Ratios and Reserves - Consolidated: ⁽³⁾
Tangible common equity to tangible assets ⁽¹⁾		7.27	%		7.27	%		6.87	%
Tangible equity to tangible assets ⁽¹⁾		8.13			8.14			7.73
Tier 1 common equity ratio		10.16			10.06			9.67
Tier 1 risk-based capital ratio		11.28			11.17			10.76
Total risk-based capital ratio		14.76			14.46			13.33
Tier 1 leverage ratio		8.76			8.78			8.38
Consolidated CRE concentration ratio ⁽⁴⁾		487			499			547
Allowance for credit losses/ Total loans		0.78			0.72			0.67
Allowance for credit losses/ Non-performing loans		172.29			313.21			311.16

⁽¹⁾ See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets.

⁽²⁾ Total deposits include mortgage escrow deposits, which fluctuate seasonally.

⁽³⁾ September 30, 2024 ratios are preliminary pending completion and filing of the Company's regulatory reports.

⁽⁴⁾The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The September 30, 2024 ratio is preliminary pending completion and filing of the Company's regulatory reports.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME (Dollars in thousands)

	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
					Average						Average						Average
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Interest-earning assets:
Business loans ⁽¹⁾	$	2,609,934	$	46,656	7.11	%	$	2,400,219	$	42,933	7.19	%	$	2,260,203	$	38,384	6.74	%
One-to-four family residential, including condo and coop		924,150		11,024	4.75			886,037		9,968	4.52			879,688		9,165	4.13
Multifamily residential and residential mixed-use		3,902,220		45,790	4.67			3,958,617		45,775	4.65			4,114,476		46,099	4.45
Non-owner-occupied commercial real estate		3,297,760		44,804	5.40			3,359,004		44,728	5.36			3,382,927		44,184	5.18
Acquisition, development, and construction		147,875		3,505	9.43			164,283		3,638	8.91			222,039		5,075	9.07
Other loans		4,891		49	3.99			5,100		57	4.50			6,156		88	5.67
Securities		1,493,492		7,766	2.07			1,537,487		7,907	2.07			1,619,960		7,916	1.94
Other short-term investments		353,924		4,645	5.22			313,809		4,412	5.65			498,612		6,930	5.51
Total interest-earning assets		12,734,246		164,239	5.13	%		12,624,556		159,418	5.08	%		12,984,061		157,841	4.82	%
Non-interest-earning assets		768,507						793,885						775,432
Total assets	$	13,502,753					$	13,418,441					$	13,759,493

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking ⁽²⁾	$	798,024	$	4,635	2.31	%	$	631,403	$	1,499	0.95	%	$	786,892	$	2,896	1.46	%
Money market		3,771,562		36,841	3.89			3,495,989		33,193	3.82			2,975,267		24,275	3.24
Savings ⁽²⁾		2,102,282		19,492	3.69			2,336,202		23,109	3.98			2,342,424		20,316	3.44
Certificates of deposit		1,232,984		13,057	4.21			1,393,678		15,077	4.35			1,494,491		15,020	3.99
Total interest-bearing deposits		7,904,852		74,025	3.73			7,857,272		72,878	3.73			7,599,074		62,507	3.26
FHLBNY advances		528,652		4,455	3.35			671,242		6,429	3.85			1,250,717		14,370	4.56
Subordinated debt, net		271,450		4,307	6.31			202,232		2,604	5.18			200,232		2,553	5.06
Other short-term borrowings		131		2	6.07			—		—	—			120		2	6.61
Total borrowings		800,233		8,764	4.36			873,474		9,033	4.16			1,451,069		16,925	4.63
Derivative cash collateral		91,305		1,526	6.65			145,702		2,005	5.53			156,795		1,930	4.88
Total interest-bearing liabilities		8,796,390		84,315	3.81	%		8,876,448		83,916	3.80	%		9,206,938		81,362	3.51	%
Non-interest-bearing checking ⁽²⁾		3,209,502						3,042,382						3,065,186
Other non-interest-bearing liabilities		223,546						242,980						265,559
Total liabilities		12,229,438						12,161,810						12,537,683
Stockholders' equity		1,273,315						1,256,631						1,221,810
Total liabilities and stockholders' equity	$	13,502,753					$	13,418,441					$	13,759,493
Net interest income			$	79,924					$	75,502					$	76,479
Net interest rate spread					1.32	%					1.28	%					1.31	%
Net interest margin					2.50	%					2.41	%					2.34	%
Deposits (including non-interest-bearing checking accounts) ⁽²⁾	$	11,114,354	$	74,025	2.65	%	$	10,899,654	$	72,878	2.69	%	$	10,664,260	$	62,507	2.33	%

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.

⁽²⁾ Includes mortgage escrow deposits.

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

	At or For the Three Months Ended
	September 30,			June 30,			September 30,
Asset Quality Detail	2024			2024			2023
Non-performing loans ("NPLs")
Business loans⁽¹⁾	$	25,411		$	20,287		$	19,555
One-to-four family residential, including condominium and cooperative apartment		3,880			3,884			2,874
Multifamily residential and residential mixed-use		—			—			—
Non-owner-occupied commercial real estate		19,509			15			15
Acquisition, development, and construction		657			657			657
Other loans		6			—			219
Total Non-accrual loans	$	49,463		$	24,843		$	23,320
Total Non-performing assets ("NPAs")	$	49,463		$	24,843		$	23,320

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

NPAs and 90+ Delinquent	$	49,463		$	24,843		$	23,320

NPAs and 90+ Delinquent / Total assets		0.36	%		0.18	%		0.17	%
Net charge-offs ("NCOs")	$	4,199		$	3,640		$	4,864
NCOs / Average loans ⁽²⁾		0.15	%		0.14	%		0.18	%

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.

⁽²⁾ Calculated based on annualized NCOs to average loans, excluding loans held for sale.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(Dollars in thousands except per share amounts)

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company's management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company's operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company's performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net (gain) loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:


	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income available to common stockholders	$	11,505			$	16,657			$	13,163			$	44,032			$	74,321
Adjustments to net income ^(1):
Fair value change in equity securities and loans held for sale		(39	)			416				299				1,219				1,079
Net (gain) loss on sale of securities and other assets		(2	)			(3,695	)			22				(6,665	)			1,469
Severance		—				—				8,562				42				9,068
Loss on extinguishment of debt		1				—				—				454				—
Income tax effect of adjustments		13				1,043				(176	)			1,574				(985	)
Adjusted net income available to common stockholders (non-GAAP)	$	11,478			$	14,421			$	21,870			$	40,656			$	84,952

Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)
Adjusted EPS (Diluted)	$	0.29			$	0.37			$	0.56			$	1.04			$	2.19
Adjusted return on average assets		0.39		%		0.48		%		0.69		%		0.45		%		0.88		%
Adjusted return on average equity		4.18				5.17				7.76				4.89				9.95
Adjusted return on average tangible common equity		4.69				5.97				9.38				5.60				12.25
Adjusted non-interest expense to average assets		1.70				1.65				1.48				1.62				1.46
Adjusted efficiency ratio		65.6				65.9				59.7				65.5				54.7

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

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):


	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Operating expense as a % of average assets - as reported	1.71		%	1.66		%	1.73		%	1.63		%	1.56		%
Loss on extinguishment of debt	—			—			—			—			—
Severance	—			—			(0.25	)		—			(0.09	)
Amortization of other intangible assets	(0.01	)		(0.01	)		—			(0.01	)		(0.01	)
Adjusted operating expense as a % of average assets (non-GAAP)	1.70		%	1.65		%	1.48		%	1.62		%	1.46		%

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


	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Efficiency ratio - as reported (non-GAAP)⁽¹⁾		65.9		%		63.8		%		70.5		%		64.6		%		59.0		%
Non-interest expense - as reported	$	57,729			$	55,694			$	59,523			$	165,934			$	159,184
Severance		—				—				(8,562	)			(42	)			(9,068	)
Loss on extinguishment of debt		(1	)			—				—				(454	)			—
Amortization of other intangible assets		(286	)			(285	)			(349	)			(878	)			(1,075	)
Adjusted non-interest expense (non-GAAP)	$	57,442			$	55,409			$	50,612			$	164,560			$	149,041
Net interest income - as reported	$	79,924			$	75,502			$	76,479			$	226,956			$	242,450
Non-interest income - as reported	$	7,631			$	11,808			$	7,928			$	29,906			$	27,334
Fair value change in equity securities and loans held for sale		(39	)			416				299				1,219				1,079
Net (gain) loss on sale of securities and other assets		(2	)			(3,695	)			22				(6,665	)			1,469
Adjusted non-interest income (non-GAAP)	$	7,590			$	8,529			$	8,249			$	24,460			$	29,882
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)	$	87,514			$	84,031			$	84,728			$	251,416			$	272,332
Adjusted efficiency ratio (non-GAAP)⁽²⁾		65.6		%		65.9		%		59.7		%		65.5		%		54.7		%

⁽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):


	September 30,				June 30,				September 30,
	2024				2024				2023
Reconciliation of Tangible Assets:
Total assets	$	13,746,529			$	13,548,763			$	13,651,405
Goodwill		(155,797	)			(155,797	)			(155,797	)
Other intangible assets		(4,181	)			(4,467	)			(5,409	)
Tangible assets (non-GAAP)	$	13,586,551			$	13,388,499			$	13,490,199

Reconciliation of Tangible Common Equity - Consolidated:
Total stockholders' equity	$	1,263,929			$	1,250,596			$	1,204,344
Goodwill		(155,797	)			(155,797	)			(155,797	)
Other intangible assets		(4,181	)			(4,467	)			(5,409	)
Tangible equity (non-GAAP)		1,103,951				1,090,332				1,043,138
Preferred stock, net		(116,569	)			(116,569	)			(116,569	)
Tangible common equity (non-GAAP)	$	987,382			$	973,763			$	926,569

Common shares outstanding		39,152				39,148				38,811

Tangible common equity to tangible assets (non-GAAP)		7.27		%		7.27		%		6.87		%
Tangible equity to tangible assets (non-GAAP)		8.13				8.14				7.73

Book value per common share	$	29.31			$	28.97			$	28.03
Tangible common book value per share (non-GAAP)		25.22				24.87				23.87

Dime Community Bancshares, Inc. Reports Third Quarter 2024 Results