Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — Sandler O'Neill Bus Tour (May 2008)
18 slides from Dime Community Bancshares's conference presentation, May 30, 2008
Slide 1: Sandler O'Neill Bus Tour — Investor Presentation
Sandler O'Neill Bus Tour — Investor Presentation May 29, 2008 Statements made herein that ae fomward looking in nature within the mearing ofthe Pavate Secuites Ligation Reform Act of 1006 are subject rds and uncertainges that could cauce adual results to differ matstialy. Such sks and uncerlainges i
Slide 2: 2007 Year in Review
2007 Year in Review as of December 31, 2007 2006 change Total Assets $3,501,175 $3,173,377 $327,798 «10.3% increase Total Loans 2,860,748 2,686,959 $173,789 6.5% increase Total Deposits 2,179,998 2,008,532 $ 171,466 8.5% increase Loan Originations 574,526 563,200 $11,326 2.0% increase Yield 6.38% 6.
Slide 3: 2007 Year in Review
2007 Year in Review 1. DCOM has no “sub-prime” or “Alt-A” Loans 2. Earnings Per Share $0.67 decrease of 23.0% compared to $0.87 in Calendar 2006 3. Return on Average Tangible Equity 9.9% compared to 12.7% in 2006 4. Return on Average Assets 0.69% + compared to 0.98% last year 5. Current Stock Price
Slide 4: Quarterly EPS vs. Stock Price
Quarterly EPS vs. Stock Price $0.30 90.28 90.25 mmmers 90.25 0.24 Stack Price oo $0.20 $017 g047 $017 go17 $017 9015 g010 $0.05 F $0.00 D0 M-06 08 <S-06 0S M07 407 5.07 DOT M08 08 Note: 2 Quarter 2008 EPS guidance is §0.24 - $0.26; $18.67 is price as of April 30, 2008, s19.00 s18.00 $17.00 s18.00 $1
Slide 5: Share Repurchase Program
Share Repurchase Program 900,000 att mmm Shares Repurchased 819,628, 800,000 Stock Price saseae we Aapia88 88% of shares O/S since 40°05 r 317.00 eooieee 6.2% of shares 0/S during 2007 500,000 $16.00 425,458 400.000 oll 300,000 09,596 20ataz $14.00 200,000 179.800182,100 179,448 313.00 400,000 4 312
Slide 6: Balance Sheet Composition
Balance Sheet Composition Loans comprise 80% of earning assets; 133% Loan to Deposit Ratio Composition of Assets Composition of Liabilkies 6% Cashasrr ‘on Saat took equ, 5% All Cther ae mi Cash/Short-Term Investments 6% mDue Depositors 60% mSecurities Portfolio 9% = Borrowings 26% Loans 80% WAI Othe
Slide 7: Experienced Lenders
Experienced Lenders + Management Team has many years of experience in Multifamily Lending in the New York Market: + Vincent Palagiano, Chairman/CEO, 38 years with Dime + Michael Devine, President/COO, 37 years with Dime + Kenneth Mahon, 1% Executive VP/CFO, 28 years with Dime + Dan Harris Executive
Slide 8: Loan Originations
Loan Originations Originations picking up beginning 3" Quarter 2007 20% econ {oraz seazzy S745 00% oom 5.40% y anon 8 mm OFginations 620% 5 wo Average ate ap a 00% zo.ee0 520% ‘oon 580% 5.40% ams 206 OT «10K 20N8 ODS 400 1007 O07 sau7 aq07 108 2008 Dime Community Bancshares, inc. DIME Note: 2" quart
Slide 9: 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% 100% 2% sow eat ee ea Kao em cay 8 cow So a a a ow oe ed yovs 2008 9005 aon 1007 2007 soW7 aDuT 1008 2008 Dime Community Bancshares, In
Slide 10: 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... 4.20% 7 1.00% = DCOM 0.80% | o Industry Median m Industry Average 0.80% 0.4086 0.20% 0.00% 2004 2008 2008 2007 Dime Community Bancshares, Inc. Source: Sandler
Slide 11: Charge-off & Non-Performing Asset Percentages
Charge-off & Non-Performing Asset Percentages NPA's peaked at 5.01% of Total Loans in 1992... —— 10.00% 10.00% 2.00% 2.00% em Charge Of % of Loans —NPA's as % of Total Loans 6.00% 6.00% 4.00% 4.00% 2.00% 0.86% 2.00% 0 100s8%_ 0.949% g.00% 0.04% 0.00% a.00% 0.00% 0.009 o.gsoé % 0.01% 0.00% 0.00% 0.00
Slide 12: Non-Performing Assets/Tangible Equity
Non-Performing Assets/Tangible Equity NPA's peaked at 62% of Tangible Equity also in 1992... —] $3,500,000 mms Total Loans NPAs to WE $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 & 89 90 91 92 93 94 95 96 97 98 G9 00 01 02 03 04 05 06 07 Dime Community Bancshares, In 12
Slide 13: Interest Rate Risk
Interest Rate Risk Extending Duration of Liabilities Proactive Interest Rate Risk Management Steps (YTD through May 29) s uti Extended durations on over 6% of Company Ii strategies: 9 3 Separate © Purchased $85 m LIBOR Caps (3 - 5 year terms). © Borrowed $100 in new medium term (4-year average matur
Slide 14: Repricing Loans
Repricing Loans 73% of the Loan Portfolio reprices within the next 54 months Fd 3.000.000 enon ai. mm Annual Repicnge yon | MmBLoare Repricing ®) ar. 200.000 amen ulate Reproings seo,oe0 coe 200,000 acon g mon 3 3 se0% eon, B ooo ° 2 san 2 5 & 5 soon é onan sam 8 amon on anon 100,000 480% a.com me m
Slide 15: Quarterly Deposit Flows
200,000 460,000 400,000 50,000 (60,000) (100,000) (180,000) (200,000) Quarterly Deposit Flows mG aterty Deposit Flove Total Deposits Linear (Total D eposis) Dec06 MatO7 Jun-07 J? eco? Manos 3° Quarter ‘07: Countrywide strikes at the retail deposit market nationwide... Dime Community Bancshares, inc.
Slide 16: Focus on Profitable Deposits
Focus on Profitable Deposits December 2006 March 2008 Checking Accounts 6.5% Prime Dime and Checking 7.6% | Prime Dime mChecking mAll Other 26.5% Growth in Prime Dime and Checking Accounts since December 2006! Dime Community Bancshares, Inc. 16
Slide 17: Prudent Branch Expansion
Prudent Branch Expansion sf a v \ Two new branches | ain \ strategically located, ae \ deepen the Dime fe \ footprint. Dees 7
Slide 18: Dime Ranks Near the Top
Dime Ranks Near the Top SNL Top 100 Thrifts Dime Community Bancshares, Inc Rank Total Score 721 -17- Retum on Assets 0.69% oe Retum on Equity 1.9% -20- 3-Year Annual Growth Rate of TEV 133% == Efficiency Ratio (operating expenses) 56.25% -10- ‘Non-performing Assets 0.08% a3. Charge-offs 0.00% -3- Di
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