Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — Keefe Bruyette & Woods 10th Annual Community Bank Investor Conference 2009
25 slides from Dime Community Bancshares's conference presentation, Jul 29, 2009
Slide 1: Dime Community Bancshares, Inc.
DIME Benatar Bancshares, Inc. Keefe Bruyette & Woods 10! Annual Community Bank Investor Conference July 2: 2009 Dime Community Bancshares, Inc. Nasdaq: DCOM
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements contained inthis presentation that are net statements of historical fact constitute fonvardooking statements within the meaning of the Private Seourties Litigation Reform Act of 1096 (he "Aat), nobuthstanding that such statements are not=peotically Wentfe
Slide 3: Who We Are
Who We Are . Dime Savings Bank founded in 1864 in Williamsburgh, Brooklyn . Community retail bank model . Converted to Public Ownership in June 1996 . Acquired two local community banks since IPO «Pioneer Savings Bank in 1996 «Financial Federal Savings Bank in 1999 . Emphasis upon multifamily reside
Slide 4: Prudent Branch Expansion
Prudent Branch Expansion sf a v \ Two new branches | ain \ strategically located, ae \ deepen the Dime fe \ footprint. Dees
Slide 5: Balance Sheet Review
Balance Sheet Review As of or for the Three Months Ended June 30, 2009 2008 change Total Assets $3,974,399 $3,742,004 $232,395 6.2% increase Total Loans 3,245,962 3,134,803 $111,159 3.5%increase Total Deposits 2,293,109 2,080,892 $212,217 10.2% increase Consolidated TangibleEquity 235,252 226,041 $9
Slide 6: Financial Performance Review
Financial Performance Review Three Months Ended June 30, 2009 Core Earnings Per Share $0.23* Net Interest Margin 2.78% 1. 2 3. Core Return on Average Tangible Equity 12.8%* 4. Core Return on Average Assets 0.74%* 5 Efficiency ratio 52.6%* “Amount includes a $1.8 milion pre-tax special insurance asse
Slide 7: Recent Highlights
Recent Highlights 1. OTTI charge of $886,000 or 11 cents per share in most recent quarter None forecasted in the guidance for the September 2009 quarter 2. Loan credit costs of $2.3 million (4 cents per share) in most recent quarter Guidance for September 2009 quarter inciudes $3.0 million 3. Non-in
Slide 8: Quarterly GAAP EPS vs. Stock Price
Quarterly “GAAP” EPS vs. Stock Price T $0.30 more one $0.17 $0.17 $0.17 S047 as aa 2006 a @ as at 2007 a 2008 @ as at $20.00 $18.00 $18.00 $14.00 $12.00 $10.00 $8.00 $8.00 $4.00 $2.00 $0.00 Qt a2 asest 2009 Note: Estimate for September 2009 quarter equals midoinf of guidance given inthe Company's Ju
Slide 9: Balance Sheet Composition
Balance Sheet Composition Assets Liabilities and Equity ster term a an aN her All Other MES 7% Equity al oe : ‘Cash short-term Investments 6% mlnvestmentsMBS 7% aloms8t% aaAll Other 6% Dime Community Bancshares, In Note: as of June 30, 2009,
Slide 10: New York City
New York City Types of Housing* Mitchell. ‘Conventional’ Renter. Lama 21% Occupied 2% 67% Condo, 2% * Housing stock equals 3,325,902 units. Dime Community Bancshare. ine. Sourve: 2005 New York City Housing and Vacancy Siney, U.S. Cones Bureau, www oenais.cou 10
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition At June 30, 2009 1tod Traditional Family with tod Commercial . Family Rents Commercial 2% 5% Real Estate 15% Dime Community Bancshares, Inc. "1
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition Total Loan Portfolio as of June 30, 2009. FRSC) Construction Loans] Trasitional 1to 4Farily lpriman Residence eoscoon| aa NA 10% 7a Famiy vith Commercial Rent |eined ues seosts.coo] san 13 5a iar Residential aziesens7d ea rr en uti amy (Commercial Rents <B0% eur.s7o.354) o
Slide 13: Experienced Lenders
Experienced Lenders + Management Team has many years of experience in Multifamily Lending in the New York Market: + Vincent Palagiano, Chairman/CEO, 39 years with Dime + Michael Devine, President/COO, 38 years with Dime + Kenneth Mahon, 1% Executive VP/CFO, 29 years with Dime + Dan Harris Executive
Slide 14: Insider Ownership
Insider Ownership* Vincent F. Palagiano - Chairman of the Board and CEO 991,181* Michael P. Devine - President and Chief Operating Officer 629,293** Kenneth J. Mahon First Executive Vice President and CFO 403,829°* All Directors and Executive Officers 4,997,911 All Directors and Executive Officers (
Slide 15: Loan Originations
Loan Originations ees Total Originations =EEBVTD Oniginistions Through June 30th Sinrilfions 9 Average loan orignation rate Average 8-Vear Treasury Rate $1,200.0 7.00% $1,088.7 $1,000.0 Soar 6.00% $800.0 4.00% gs00.0 | $963.2 $574.5 3.00% 3400.0 2.00% $200.0 | 1.00% $0.0 0.00% 2008 2007 2008 2009 Di
Slide 16: Loan-to-Value Ratios on New Loans
Loan-to-Value Ratios on New Loans Loan policy permits LTVs to 80%; however, weighted average consistently below 70% 2006 2007 2008 2009YTD Dime Community Bancshares, Inc. 16
Slide 17: Low Level of Non-Performing Assets
Low Level of Non-Performing Assets Dime continues to be an industry leader in loan quality, with a low level of non-performing assets.... 300% 250% mDCOM 200% {— Industry Median Industry Average 1.50% 1.00% 96 of total assets aso | 0.00% 2008 2008 2007 2008 March 2009 Dime Community Bancshares, In S
Slide 18: Charge-off & Non-Performing Asset Percentages
Charge-off & Non-Performing Asset Percentages NPA's peaked at 5.01% of Total Loans in 1992... 6.00% lm Charge-offs as a% ofLoans | —@—NPA’s as a % of Total Loans 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% an | I Hoo ee ee ee ee Dime Community Bancshares, Inc. 18
Slide 19: Non-Performing Assets/Tangible Equity
Non-Performing Assets/Tangible Equity NPA's peaked at 62% of Tangible Equity also in 1992... i thousands 300,000 mnt Loens 3,000,000, te 200,000 2,000,000 4,00,000 4,000,000, FOAL AL IE LL LP MP PS ge As of June 30, 2009 ~ Total Stockholders’ Equity Plus Allowance = 2,357% of Non-Performing Assets D
Slide 20: Repricing Loans
Repricing Loans $in millions $3,500 17% of the Loan Portfolio reprices within the next 18 months mam Annual Repricings 92/625 — Cumulative Repricings $1,750 + $875 7 $0 2009 2010 2011 2012 Dime Community Bancshares, Inc. 2013 Beyond 20
Slide 21: Funding Liabilities
Funding Liabilities June 30, 2009 June 30, 2008 Inet Inst Preferred Preferred suberdnated suberdnated Nites Neter 26 2 Deposits Deposits Borrowings Borrowings Trust Preferreds Subordinated Notes Trust Preferreds /Subordinated Notes Dime Community Bancshares, inc. 21
Slide 22: Maturing Borrowings
Maturing Borrowings Sinthousands —_ June 30, 2009 - Total Borrowings = $1.19 billion’ $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 93-2009 42009 20102011 2012-2013 Beyond + Excludes $25.0 milion 926% subordinated note that mature in 2010 and $70 milion 7% trust preferred
Slide 23: Focus on Profitable Deposits
Focus on Profitable Deposits June 2008 June 2009 Total Deposits = $2.08 billion Total Deposits = $2.29 billion Prime Other Prime Oth Dime chectng oe cracking 4% Growth in Checking Accounts since June 2008 Dime Community Bancshares, Inc. D 23
Slide 24: Maturing CD's
Maturing CD’s Maturing CD's - 2009 4.50% 4.00% 3.50% ot: _ 3.00% [saasoa J 2.50% 2.00% 4.50% 4.00% 0.50% 0.00% Sa a a Oe Se eh Me Me Se Me — Dime’s highest non-prometional CD rate ofered to Retal Deposits for matuties of 18 months o ess. Thee are no premium rates for accounts over 100000, — The Aver
Slide 25: Dime Ranks Near the Top in 2008
Dime Ranks Near the Top in 2008 SNL Top 100 Thrifts Total Score (Top Score = 87.3) 85.7 -4- Return on Assets 0.81% =i0e Return on Equity 11.06% -7- 3-Year Annual Growth Rate of TBV 1.62% -33- Efficiency Ratio (operating expenses) 51.25% wD Non-p erforming Assets 0.19% othe Charge- offs 0.02% -10- Di