Dime Community Bancshares, Inc. Reports First Quarter 2021 Results
First Quarter Results Highlighted by Robust Deposit Growth and PPP Originations
Announces Plans to Resume Share Repurchase Program
HAUPPAUGE, N.Y., April 30, 2021 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime” or “its”), the parent company of Dime Community Bank (the “Bank”), today reported a net loss to common stockholders of
Adjusted net income to common stockholders (non-GAAP) totaled
- Merger expenses and transaction costs: The Company completed its merger of equals transaction in the first quarter of 2021; associated merger expenses and transaction costs were
$37.9 million , pre-tax; - Termination of Borrowings and Sale of Securities: The Company utilized excess liquidity on the balance sheet to restructure its wholesale borrowings portfolio and also repositioned its securities portfolio in the first quarter of 2021; this resulted in a pre-tax loss on termination of derivatives of
$16.5 million , a pre-tax loss on extinguishment of debt of$1.6 million , and a pre-tax gain on sale of securities of$0.7 million ; - Provision for credit losses on acquired non-purchase credit deteriorated (“Non-PCD”) loans of
$20.3 million , pre-tax.
Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “Our merger closed on February 1, 2021, creating the premier community-based business bank from Montauk to Manhattan with over
Mr. O’ Connor continued, “While accounting rules under the CECL standard required us to book a large provision for credit loss expense in the first quarter on acquired Non-PCD loans, contributing to the reported net loss for the quarter, I am extremely pleased with the underlying fundamental trends in our business as well as our pipelines for future growth. The loss absorption capacity on the balance sheet post-merger, and the unique culture we have forged through our core conversion gives me tremendous confidence in our future prospects.”
Highlights for the First Quarter of 2021 Included:
- The non-interest-bearing deposits to total deposits ratio increased to
32.7% at March 31, 2021 and the cost of deposits for the first quarter of 2021 was proactively managed lower to0.25% ; - Originated
$573.3 million of PPP loans during the first quarter of 2021. Net unrecognized deferred fees related to PPP loans were$24.4 million at March 31, 2021; - The total provision for credit losses was
$15.8 million . The provision expense on the acquired Non-PCD loans was$20.3 million and the provision for unfunded commitments (“UFC”) was$3.1 million . The provision on the remainder of the portfolio was negative$7.6 million primarily as a result of improvement in forecasted macroeconomic conditions. The provision expenses for the acquired Non-PCD loans and UFC are the result of the accounting requirements for mergers under the Current Expected Credit Loss standard (“CECL Standard”), which the Company adopted on January 1, 2021; - Significant allowance for credit losses and credit marks on the balance sheet due to provision for credit losses and purchase accounting marks;
- Capital levels remain strong; the tangible equity to tangible assets ratio was
7.83% at March 31, 2021. Excluding the impact of PPP loans, the ratio would have been8.82% ; - Our Board of Directors has approved the resumption of share repurchases. Our existing share repurchase plan has approximately 797,780 shares remaining;
- The results for the first quarter of 2021 include the operations of Bridge Bancorp Inc. (“Legacy Bridge”) for the final two months of the quarter. For the two-month period following the merger completion on February 1, 2021, the Company’s Adjusted Pre-Provision Net Revenue (“PPNR”) was
$34.1 million .1
1 See reconciliation of this non-GAAP financial measure provided elsewhere herein.
Management’s Discussion of Quarterly Operating Results
Net Interest Income
Net interest income for the first quarter of 2021 was
The table below provides a reconciliation of the reported Net Interest Margin (“NIM”), the NIM excluding the impact of SBA PPP loans, and the NIM excluding purchasing accounting accretion on the loan portfolio.
| ($ in thousands) | Q1 2021 | Q4 2020 | Q1 2020 | ||||||||
| Net interest income | $ | 77,841 | $ | 48,680 |
Dime Community Bancshares, Inc.
NASDAQ:DCOMDCOM RankingsDCOM Latest NewsDCOM Stock Data
773.17M
36.00M
7.22%
76.49%
5.79%
Commercial Banking
Finance and Insurance
United States of America
HAUPPAUGE
About DCOMthe largest community bank headquartered in brooklyn, new york, chartered on april 19, 1864. the bank specializes in commercial mortgage finance in the ny metro area and services depositors in 24 full service branches throughout brooklyn, queens, nassau, and the bronx.
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