---

Exhibit 99

 

DIME COMMUNITY BANCSHARES, INC. REPORTS SOLID QUARTERLY EARNINGS

Quarterly EPS of $0.29; strong deposit growth on linked quarter basis with loan-to-deposit ratio now at 132%, the lowest level in 9 years

Brooklyn, NY – October 27, 2016 - Dime Community Bancshares, Inc. (NASDAQ: DCOM) today reported net income of $10.5 million for the third quarter of 2016, or $0.29 per diluted common share, compared with $11.2 million, or $0.30 per diluted common share, in the second quarter of 2016.

Highlights for the third quarter of 2016 included:

·

Real estate loans grew 21.6% (annualized) on a linked quarter basis and 22.2% over the third quarter of 2015;

·

Deposits grew 40.1% (annualized) on a linked quarter basis and 37.3% over the third quarter of 2015;

·

Loan-to-deposit ratio declined to 132.0% in the third quarter of 2016 from 137.8% in the second quarter of 2016;

·

The bank’s excellent credit quality on its $5.4 billion commercial real estate (“CRE”) portfolio continues, with nonperforming loans to total loans of seven (7) basis points;

·

Quarterly loan loss provisioning of $1.2 million based solely on growth of our New York City-based CRE loan portfolio; and

·

Consistent operational excellence, with the efficiency ratio of 48.8%, compared to 47.8% in the second quarter of 2016 and 47.6% in the third quarter of 2015.

Vincent F. Palagiano, Chairman and Chief Executive Officer of the Company, commented, “The high rate of growth this quarter is gratifying, especially funded by the strong growth in deposits. We were able to grow loans significantly as we continue to execute on our strategy and remain on track to meet our balance sheet growth objective for 2016. This quarter, given the strong deposit growth, we were able to lower our loan-to-deposit ratio to 132%, the lowest level in nine years.”

According to President and Chief Operating Officer Kenneth J. Mahon, “I’m pleased that we were able to maintain our focus on our two competitive advantages of low operating costs and low credit costs during a quarter of exceptionally strong growth. We maintained strong underwriting standards while growing loan balances, continued to build deeper relationships with our customers, and prudently managed our expense base. We remain focused on expense discipline, which is evidenced by our ability to lower the ratio of non-interest expense to average assets, a key measure of operating efficiency.”

 

Management’s Discussion of Quarterly Operating Results

Net interest income in the third quarter of 2016 was $35.3 million, a decrease of $263,000 (0.7%) from the second quarter of 2016 and an increase of $3.5 million (11.1%) over the third quarter of 2015.  Net Interest Margin ("NIM") was 2.59% during the third quarter of 2016, compared to 2.68% in the second quarter of 2016 and 2.84% in the third quarter of 2015. NIM was negatively impacted in the third quarter of 2016 primarily by lower yields on loan originations compared to portfolio loans that amortized or refinanced. NIM was also negatively impacted due to lower income recognized from loan prepayment activity. For the third quarter of 2016, income from prepayment activity totaled $1.7 million, benefiting NIM by 12 basis points, compared to $2.0 million, or 15 basis points, during the second quarter of 2016 and $2.1 million, or 19 basis points, during the third quarter of 2015.

Average earning assets were $5.45 billion for the third quarter of 2016, a 10.9% (annualized) increase from $5.31 billion for the second quarter of 2016 and a 21.8% increase from $4.48 billion for the third quarter of 2015.

For the third quarter of 2016, the average yield on interest earning assets (excluding prepayment income) was 3.47%, three basis points lower than the 3.50% for second quarter 2016 and 17 basis points lower than the 3.64% for third quarter 2015, while the average cost of funds was 1.15%, one basis point higher than the 1.14% for both second quarter 2016 and third quarter 2015. For the year ending December 31, 2017, $414.7 million of real estate loans with an average coupon of 3.60% are expected to reprice or mature.

Real estate loan portfolio growth was $281.7 million (21.6% annualized) during the third quarter of 2016. Real estate loan originations were $445.5 million during the quarter, at a weighted average interest rate of 3.25%. Of this amount, $62.4 million represented loan refinances from the existing portfolio. Loan amortization and satisfactions totaled $169.1 million, or 12.7% (annualized) of the quarterly average portfolio balance, at an average rate of 3.94%. The annualized loan amortization and satisfaction rate of 12.7% for third quarter 2016 was lower than both second quarter 2016 (16.1%) and third quarter 2015 (17.8%). The average yield on the loan portfolio (excluding income recognized from prepayment activity) was 3.48% during the third quarter of 2016, compared to 3.53% during the second quarter of 2016, and 3.66% during the third quarter of 2015. Average real estate loans were $5.33 billion in the third quarter of 2016, an increase of $190.7 million (14.8% annualized) from the second quarter of 2016 and an increase of $959.9 million (22.0%) from the third quarter of 2015.

Deposit growth was $379.0 million (40.1% annualized) during the third quarter of 2016. Given the strong growth in deposits, the loan-to-deposit ratio fell to 132.0% at September 30, 2016, from 137.8% at June 30, 2016 and 148.3% at September 30, 2015. Core deposits increased to $3.09 billion during the third quarter of 2016, from $2.75 billion during the second quarter of 2016 and $2.14 billion during the third quarter of 2015. The average cost of deposits increased one basis point on a linked quarter basis to 0.86%.

 

Total borrowings decreased $135.0 million during the third quarter of 2016 as compared to the second quarter of 2016. The reduction in borrowings was due to deposit growth outpacing loan growth, and reflected management’s desire to decrease reliance on borrowed funds and to grow both its number of customers and deposits.

Non-interest income was $2.1 million during the third quarter of 2016, which was $234,000 (10.2%) lower than the second quarter of 2016, given the additional income recognized from mortality proceeds from Bank Owned Life Insurance assets in the second quarter of 2016, which offset strong mortgage servicing fee income during the third quarter of 2016. Non-interest income was $172,000 (9.1%) higher than the third quarter of 2015, which reflects the $138,000 of market valuation adjustments on trading securities held in trust for retirement benefits.

Non-interest expense was $18.2 million during the third quarter of 2016, which was $140,000 (0.8%) higher than the second quarter of 2016, mostly related to higher occupancy expense. Non-interest expense was $2.1 million (13.1%) higher than the third quarter of 2015, related to higher occupancy, data processing, and marketing expense.

The ratio of non-interest expense to average assets, a key measure of operating efficiency, was 1.29% during the third quarter of 2016, compared to 1.31% during the second quarter of 2016 and 1.37% during the third quarter of 2015, reflecting period-over-period average asset growth of 10.4% (annualized) and 20.5%, respectively, which outpaced non-interest expense growth. The efficiency ratio was 48.8% during the third quarter of 2016, compared to 47.8% during the second quarter of 2016 and 47.6% during the third quarter of 2015.

The effective income tax rate approximated 41.5% during the third quarter of 2016, relatively in-line with the 42.2% recorded in the second quarter of 2016.

Non-performing loans were $3.9 million, or 0.07% of total loans, at September 30, 2016, down from $4.3 million at June 30, 2016, or 0.08% of total loans. The allowance for loan losses was 0.37% of total loans at September 30, 2016, consistent with the 0.36% at June 30, 2016. At September 30, 2016, non-performing assets represented 1.4% 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 $1.2 million was recorded during the third quarter of 2016, compared to a loan loss provision of $442,000 during the second quarter of 2016, primarily due to growth in the loan portfolio.

“Dime's superlative credit performance continues to reflect the low risk nature of the multifamily collateral securing its loans as well as the conservative nature of Dime's underwriting and origination practices,” stated Kenneth J. Mahon. “Vacancies remain low, and even though many new market rate units are in the pipeline, employment is robust throughout the five boroughs with population increases for New York City expected over the coming decade. These underlying economic and demographic conditions, we believe, will provide continued demand for affordable multifamily housing finance and related deposit and other banking services.”

 

The Company’s consolidated Tier 1 capital to average assets (“leverage ratio”) was 10.29% at September 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 September 30, 2016, the bank’s leverage ratio was 9.04%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 11.22% and 11.67%, respectively.

Reported diluted earnings per share exceeded the quarterly cash dividend per share by 107.1% during the third quarter of 2016, equating to a 48.3% payout ratio. Tangible book value per share was $13.52 at September 30, 2016, a 15.0% increase from $11.76 at September 30, 2015.

 

At September 30, 2016, the bank had outstanding loan commitments totaling $201.5 million, at an average interest rate approximating 3.22%, all of which are likely to close during the quarter ending December 31, 2016. Loan prepayments and amortization are expected to fall within the projected annualized range of 15% - 20% during the December 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.  It now appears that asset growth will approach 20% for the year, with a lower loan-to-deposit ratio than a year ago.

Deposit and borrowing funding costs are expected to remain near current historically low levels through the December 2016 quarter. At September 30, 2016, the bank had $93.1 million of Certificate of Deposits at an average rate of 0.82%, and $161.0 million of borrowings, at an average rate of 0.67%, scheduled to mature during the December 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 $1.2 million, mainly due to loan portfolio growth. During the December 2016 quarter, loan loss provisions are expected to continue mainly as a function of loan growth.

Non‐interest expense is expected to approximate $18.5 million during the December 2016 quarter.

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

 

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company) had $5.82 billion in consolidated assets as of September 30, 2016, and is the parent company of Dime Community Bank (the “bank” or “Dime”). 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.

Contact: Anthony J. Rose

Executive Vice President and Chief Administrative Officer

718-782-6200 extension 5260

 

DIME COMMUNITY BANCSHARES,  INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands except share amounts)

		September 30, 2016				June 30, 2016				December 31, 2015
ASSETS:
Cash and due from banks		$	80,870			$	89,927			$	64,154
Investment securities held to maturity			5,356				5,319				5,242
Investment securities available for sale			3,933				3,837				3,756
Mortgage-backed securities available for sale			3,647				406				431
Trading securities			6,890				6,814				10,201
Real Estate Loans:
One-to-four family and cooperative/condomnium apartment			75,297				75,452				72,095
Multifamily and loans underlying cooperatives (1)			4,450,025				4,211,421				3,752,328
Commercial real estate			955,048				911,919				863,184
Unearned discounts and net deferred loan fees			8,121				7,989				7,579
Total real estate loans			5,488,491				5,206,781				4,695,186
Other loans			1,675				2,336				1,590
Allowance for loan losses			(20,049	)			(18,909	)			(18,514	)
Total loans, net			5,470,117				5,190,208				4,678,262
Premises and fixed assets, net			15,666				13,800				15,150
Premises held for sale			1,379				1,379				8,799
Federal Home Loan Bank of New York capital stock			46,739				52,814				58,713
Other Real Estate Owned			18				18				148
Goodwill			55,638				55,638				55,638
Other assets			131,533				136,037				132,378
TOTAL ASSETS		$	5,821,786			$	5,556,197			$	5,032,872
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Non-interest bearing checking		$	270,698			$	261,634			$	259,182
Interest Bearing Checking			94,313				90,172				78,994
Savings			365,966				369,168				368,671
Money Market			2,360,346				2,024,770				1,618,617
Sub-total			3,091,323				2,745,744				2,325,464
Certificates of deposit			1,067,941				1,034,522				858,846
Total Due to Depositors			4,159,264				3,780,266				3,184,310
Escrow and other deposits			117,309				92,290				77,130
Federal Home Loan Bank of New York advances			882,125				1,017,125				1,166,725
Trust Preferred Notes Payable			70,680				70,680				70,680
Other liabilities			37,117				46,225				40,080
TOTAL LIABILITIES			5,266,495				5,006,586				4,538,925
STOCKHOLDERS' EQUITY:
Common stock ($0.01 par, 125,000,000 shares authorized, 53,520,581 shares, 53,520,581 shares and 53,326,753 shares issued at September 30, 2016, June 30, 2016  and December 31, 2015, respectively, and 37,543,852 shares,  37,654,771 shares and 37,371,992 shares outstanding at September 30, 2016,  June 30, 2016 and December 31, 2015, respectively)			535				535				533
Additional paid-in capital			265,227				266,984				262,798
Retained earnings			507,956				502,569				451,606
Accumulated other comprehensive loss, net of deferred taxes			(8,110	)			(8,803	)			(8,801	)
Unallocated common stock of Employee Stock Ownership Plan			(2,140	)			(2,198	)			(2,313	)
Unearned Restricted Stock Award common stock			(2,303	)			(2,754	)			(2,271	)
Common stock held by the Benefit Maintenance Plan			(6,859	)			(9,576	)			(9,354	)
Treasury stock (15,976,729 shares, 15,865,810 shares and 15,954,761 shares at September 30, 2016, June 30, 2016 and December 31, 2015, respectively)			(199,015	)			(197,146	)			(198,251	)
TOTAL STOCKHOLDERS' EQUITY			555,291				549,611				493,947
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	5,821,786			$	5,556,197			$	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 Nine Months Ended
		September 30, 2016				June 30, 2016				September 30, 2015				September 30, 2016				September 30, 2015
Interest income:
Loans secured by real estate		$	48,090			$	47,358			$	42,109			$	141,099			$	127,370
Other loans			28				24				22				76				70
Mortgage-backed securities			2				2				1				6				184
Investment securities			129				265				254				567				544
Federal funds sold and other short-term investments			707				721				510				2,089				1,738
Total interest  income			48,956				48,370				42,896				143,837				129,906
Interest expense:
Deposits  and escrow			8,635				7,597				5,890				23,026				16,780
Borrowed funds			4,974				5,163				5,192				15,223				18,148
Total interest expense			13,609				12,760				11,082				38,249				34,928
Net interest income			35,347				35,610				31,814				105,588				94,978
Provision (Credit) for loan losses			1,168				442				416				1,589				(891	)
Net interest income after  provision (credit) for loan losses			34,179				35,168				31,398				103,999				95,869
Non-interest income:
Service charges and other fees			1,123				758				1,013				2,566				2,562
Mortgage banking income, net			16				27				41				71				154
Gain (loss) on sale of real estate			-				(4	)			-				68,183				-
Gain (loss) on sale of securities and other assets			-				-				-				40				1,384
Gain (loss) on trading securities			69				33				(138	)			108				(97	)
Other			863				1,491				983				3,149				2,874
Total non-interest income			2,071				2,305				1,899				74,117				6,877
Non-interest expense:
Compensation and benefits			9,431				9,532				9,255				28,671				25,637
Occupancy and equipment			3,250				3,115				2,531				8,992				7,965
Federal deposit insurance premiums			613				581				575				1,933				1,703
Other			4,938				4,864				3,763				14,597				11,049
Total non-interest expense			18,232				18,092				16,124				54,193				46,354
Income before taxes			18,018				19,381				17,173				123,923				56,392
Income tax expense			7,481				8,173				7,092				52,141				23,004
Net Income		$	10,537			$	11,208			$	10,081			$	71,782			$	33,388
Earnings per Share ("EPS"):
Basic		$	0.29			$	0.30			$	0.28			$	1.95			$	0.92
Diluted		$	0.29			$	0.30			$	0.28			$	1.95			$	0.92
Average common shares outstanding for Diluted EPS			36,788,307				36,818,581				36,421,454				36,756,618				36,250,370

 

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

 UNAUDITED SELECTED FINANCIAL HIGHLIGHTS

(Dollars in thousands except per share amounts)

		For the Three Months Ended												For the Nine Months Ended
		September 30, 2016				June 30, 2016				September 30, 2015				September 30, 2016				September 30, 2015
Performance Ratios (Based upon Reported Net Income):
Reported EPS (Diluted)		$	0.29			$	0.30			$	0.28			$	1.95			$	0.92
Return on Average Assets			0.75	%			0.81	%			0.86	%			1.76	%			0.97	%
Return on Average Stockholders' Equity			7.63	%			8.23	%			8.38	%			17.89	%			9.44	%
Return on Average Tangible Stockholders' Equity			8.34	%			9.00	%			9.28	%			19.62	%			10.47	%
Net Interest Spread			2.44	%			2.50	%			2.69	%			2.52	%			2.72	%
Net Interest Margin			2.59	%			2.68	%			2.84	%			2.69	%			2.90	%
Non-interest Expense to Average Assets			1.29	%			1.31	%			1.37	%			1.33	%			1.35	%
Efficiency Ratio			48.82	%			47.75	%			47.63	%			48.66	%			46.09	%
Effective Tax Rate			41.52	%			42.17	%			41.30	%			42.08	%			40.79	%
Book Value and Tangible Book Value Per Share:
Stated Book Value Per Share		$	14.79			$	14.60			$	13.01			$	14.79			$	13.01
Tangible Book Value Per Share			13.52				13.35				11.76				13.52				11.76
Average Balance Data:
Average Assets		$	5,653,103			$	5,509,549			$	4,691,008			$	5,444,673			$	4,588,901
Average Interest Earning Assets			5,453,070				5,308,434				4,478,684				5,239,049				4,372,022
Average Stockholders' Equity			552,370				545,032				481,069				534,851				471,789
Average Tangible Stockholders' Equity			505,170				497,945				434,735				487,788				425,266
Average Loans			5,330,442				5,139,564				4,370,325				5,096,174				4,253,539
Average Deposits			3,973,753				3,612,933				2,988,325				3,638,706				2,883,537
Asset Quality Summary:
Net charge-offs (recoveries)		$	29			$	45			$	10			$	54			$	(1,357	)
Non-performing Loans (excluding loans held for sale)			3,875				4,329				1,590				3,875				1,590
Non-performing Loans/ Total Loans			0.07	%			0.08	%			0.04	%			0.07	%			0.04	%
Nonperforming Assets (1)		$	5,155			$	5,600			$	2,965			$	5,155			$	2,965
Nonperforming Assets/Total Assets			0.09	%			0.10	%			0.06	%			0.09	%			0.06	%
Allowance for Loan Loss/Total Loans			0.37	%			0.36	%			0.42	%			0.37	%			0.42	%
Allowance for Loan Loss/Non-performing Loans			517.39	%			436.80	%			1192.39	%			517.39	%			1192.39	%
Loans Delinquent 30 to 89 Days at period end		$	20			$	535			$	2,554			$	20			$	2,554
Consolidated Capital Ratios
Tangible Stockholders' Equity to Tangible Assets at period end			8.80	%			9.14	%			9.15	%			8.80	%			9.15	%
Tier 1 Capital to Average Assets			10.29	%			10.47	%			10.91	%			10.29	%			10.91	%
Regulatory Capital Ratios (Bank Only):
Common Equity Tier 1 Capital to Risk-Weighted Assets			11.22	%			11.82	%			12.04	%			11.22	%			12.04	%
Tier 1 Capital to Risk-Weighted Assets ("Tier 1 Capital Ratio")			11.22	%			11.82	%			12.04	%			11.22	%			12.04	%
Total Capital to Risk-Weighted Assets ("Total Capital Ratio")			11.67	%			12.27	%			12.57	%			11.67	%			12.57	%
Tier 1 Capital to Average Assets			9.04	%			9.13	%			9.36	%			9.04	%			9.36	%
Reconciliation of Reported and Adjusted ("non-GAAP") Net Income:
Net Income		$	10,537			$	11,208			$	10,081			$	71,782			$	33,388
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	)			-
Less:  After tax credit on curtailment of postretirement health benefits			-				-				-				-				(1,868	)
Adjusted ("non-GAAP") net income		$	10,537			$	11,208			$	10,081			$	34,299			$	31,506
Performance Ratios (Based upon "non-GAAP Net Income" as calculated above):
Reported EPS (Diluted)		$	0.29			$	0.30			$	0.28			$	0.93			$	0.87
Return on Average Assets			0.75	%			0.81	%			0.86	%			0.84	%			0.92	%
Return on Average Stockholders' Equity			7.63	%			8.23	%			8.38	%			8.55	%			8.90	%
Return on Average Tangible Stockholders' Equity			8.34	%			9.00	%			9.28	%			9.38	%			9.88	%
Net Interest Spread			2.44	%			2.50	%			2.69	%			2.52	%			2.77	%
Net Interest Margin			2.59	%			2.68	%			2.84	%			2.69	%			2.94	%
Non-interest Expense to Average Assets			1.29	%			1.31	%			1.37	%			1.33	%			1.45	%
Efficiency Ratio			48.82	%			47.75	%			47.63	%			48.66	%			48.81	%

 

(1)	Amount comprised of total non-accrual loans, other real estate owned, and the recorded balance of pooled bank trust preferred security investments that were 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
		September 30, 2016												June 30, 2016												September 30, 2015
		Average Balance				Interest				Average Yield/ Cost				Average Balance				Interest				Average Yield/ Cost				Average Balance				Interest				Average Yield/ Cost
Assets:
Interest-earning assets:
Real estate loans		$	5,328,712			$	48,090				3.61	%		$	5,138,053			$	47,358				3.69	%		$	4,368,777			$	42,109				3.86	%
Other loans			1,730				28				6.47				1,511				24				6.35				1,548				22				5.68
Mortgage-backed securities			456				2				1.75				400				2				2.00				439				1				0.91
Investment securities			16,718				129				3.09				20,203				265				5.25				18,602				254				5.46
Other short-term investments			105,454				707				2.68				148,267				721				1.95				89,318				510				2.28
Total interest earning assets			5,453,070			$	48,956				3.59	%			5,308,434			$	48,370				3.64	%			4,478,684			$	42,896				3.83	%
Non-interest earning assets			200,033												201,115												212,324
Total assets		$	5,653,103											$	5,509,549											$	4,691,008
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest Bearing Checking accounts		$	91,979			$	55				0.24	%		$	84,835			$	61				0.29	%		$	75,082			$	74				0.39	%
Money Market accounts			2,196,387				4,702				0.85				1,892,046				3,865				0.82				1,417,796				2,717				0.76
Savings accounts			366,921				46				0.05				369,266				44				0.05				370,454				45				0.05
Certificates of deposit			1,056,346				3,832				1.44				1,010,864				3,627				1.44				891,769				3,054				1.36
Total interest bearing deposits			3,711,633				8,635				0.93				3,357,011				7,597				0.91				2,755,101				5,890				0.85
Borrowed Funds			983,756				4,974				2.01				1,145,058				5,163				1.81				1,091,258				5,192				1.89
Total interest-bearing liabilities			4,695,389			$	13,609				1.15	%			4,502,069			$	12,760				1.14	%			3,846,359			$	11,082				1.14	%
Non-interest bearing checking accounts			262,120												255,922												233,224
Other non-interest-bearing liabilities			143,224												206,526												130,356
Total liabilities			5,100,733												4,964,517												4,209,939
Stockholders' equity			552,370												545,032												481,069
Total liabilities and stockholders' equity		$	5,653,103											$	5,509,549											$	4,691,008
Net interest income						$	35,347											$	35,610											$	31,814
Net interest spread											2.44	%											2.50	%											2.69	%
Net interest-earning assets		$	757,681											$	806,365											$	632,325
Net interest margin											2.59	%											2.68	%											2.84	%
Ratio of interest-earning assets to interest-bearing liabilities							116.14	%											117.91	%											116.44	%
Deposits (including non-interest bearing checking accounts)		$	3,973,753			$	8,635				0.86	%		$	3,612,933			$	7,597				0.85	%		$	2,988,325			$	5,890				0.78	%
SUPPLEMENTAL INFORMATION
Loan prepayment and late payment fee income						$	1,695											$	1,978											$	2,145
Real estate loans (excluding net prepayment and late payment fee income)											3.48	%											3.53	%											3.66	%
Interest earning assets (excluding net prepayment and late payment fee income)											3.47	%											3.50	%											3.64	%
Net Interest income (excluding net prepayment and late payment fee income)						$	33,652											$	33,632											$	29,669
Net Interest margin (excluding net prepayment and late payment fee income)											2.47	%											2.53	%											2.65	%

 

Non-Performing Loans		At September 30, 2016				At June 30, 2016				At September 30, 2015
One- to four-family and cooperative/condominium apartment		$	485			$	487			$	834
Multifamily residential and mixed use residential real estate (1)(2)			3,219				3,784				547
Mixed use commercial real estate (2)			169				54				-
Commercial real estate			-				-				207
Other			2				4				2
Total Non-Performing Loans (3)		$	3,875			$	4,329			$	1,590
Other Non-Performing Assets
Non-performing loans held for sale			-				-				-
Other real estate owned			18				18				148
Pooled bank trust preferred securities (4)			1,262				1,253				1,227
Total Non-Performing Assets		$	5,155			$	5,600			$	2,965
TDRs not included in non-performing loans (3)
One- to four-family and cooperative/condominium apartment			410				414				599
Multifamily residential and mixed use residential real estate (1)(2)			667				676				704
Mixed use commercial real estate (2)			4,282				4,303				4,365
Commercial real estate			3,380				3,396				3,444
Total Performing TDRs		$	8,739			$	8,789			$	9,112

(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 September 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 September 30, 2016 or June 30, 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 September 30, 2016				At June 30, 2016				At September 30, 2015
Total Non-Performing Assets		$	5,155			$	5,600			$	2,965
Loans 90 days or more past due on accrual status (5)			2,165				4,534				2,503
TOTAL PROBLEM ASSETS		$	7,320			$	10,134			$	5,468
Tier One Capital - Dime Community Bank		$	505,166			$	496,757			$	432,919
Allowance for loan losses			20,049				18,909				18,959
TANGIBLE CAPITAL PLUS RESERVES		$	525,215			$	515,666			$	451,878
PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES			1.4	%			2.0	%			1.2	%

(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.

 

 

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