Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — Investor Presentation (November 2024)
27 slides from Dime Community Bancshares's investor presentation, Nov 12, 2024
Slide 1: Follow-on Offering Investor Presentation
1 Follow - on Offering Investor Presentation Dime Community Bancshares, Inc. (NASDAQ: DCOM) NOVEMBER 2024
Slide 2: Forward-Looking Statements
2 2 Forward - Looking Statements This presentation contains a number of forward - looking statements within the meaning of the federal securities laws. These state ments may be identified by use of words such as “annualized,” “anticipate,” “anticipated,” “believe,” “continue,” “could,” “estimate,” “
Slide 3: Additional Information
3 3 Additional Information No Offer or Solicitation This presentation is neither an offer to sell nor a solicitation of an offer to purchase any securities of the Company. There wi ll be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to
Slide 4: Common Stock Offering Term Sheet
4 4 Common Stock Offering Term Sheet November 12 , 2024 Raymond James & Associates, Inc. Keefe, Bruyette & Woods, Inc., a Stifel Company 90 days General corporate purposes to support our continued organic growth, which may include, among other things, working capital, investments in our bank subsidi
Slide 5: Capitalizing on Growth Opportunities
5 Capitalizing on Growth Opportunities (1) Core deposits is a Non - GAAP financial measure and is defined as total deposits less time deposits and brokered deposits; see rec onciliation in the Appendix. $8.7 $10.0 12/31/2023 9/30/2024 DDA Growth Declining Short - Term Interest Rates Disruption in Lo
Slide 6: Capital facilitates repositioning and accelerates organic growth
6 1. Capital facilitates AFS securities portfolio and Bank Owned Life Insurance (“BOLI”) policies repositioning • Approximately $400 million of AFS securities yielding on average 1.25%; immediate improvement to NIM with de minimis impact to TBV • Approximately $100 million of underperforming BOLI po
Slide 7: Franchise Overview: NY's Premier Business Bank
7 Hauppauge Rank Institution Branches Deposits ($B) Market Share 1 Dime 57 $10.5 22.0% 2 Apple 46 $7.0 14.6% 3 Flushing 25 $6.5 13.6% 4 Ridgewood 27 $4.8 10.0% 5 ConnectOne 42 $3.6 7.5% #1 Community Bank on Greater Long Island by Deposit Market Share Franchise Overview NY’s Premier Business Bank – M
Slide 8: Highly Attractive Market with Significant Opportunities for Growth
8 8 Highly Attractive Market with Significant Opportunities for Growth $309 $231 Total: Greater Long Island Market share of banks with >$100B of assets $115,375 $75,874 Dime's Greater Long Island footprint United States Total Deposits in Greater Long Island (1) ($ in billions) Median household incom
Slide 9: Disruption in New York Banking Market
9 9 $10.2B $10.2B $10.5B 2022 2023 2024 2.82% 3.10% 3.41% Disruption in New York Banking Market Source: S&P Capital IQ Pro (1) Includes selected bank transactions since January 1, 2021 with the target headquartered in the New York - Newark - Jersey City, NY - N J MSA and a deal value greater than $1
Slide 10: Expansion of Lending Capabilities Into New Verticals
10 10 Middle Market C&I Lending Healthcare Not - for - Profit Expansion of Lending Capabilities Into New Verticals Robert Maichin Head of Middle Market Lending • Date of Hire: April 2022 • Previous: Market President of Commercial Banking and Head of Middle Market for the Northeast at Bank Leumi • Re
Slide 11: Opportunity to Further Transform Balance Sheet Towards Business Loans
11 11 Opportunity to Further Transform Balance Sheet Towards Business Loans Loan Portfolio Mix (1) (1) 12/31/16 represents sum of Legacy Dime and Legacy BNB on a combined basis. $526 $1,274 12/31/16 9/30/2024 C&I ($ in millions) 6% 12% 12/31/16 9/30/2024 C&I (% of Loans) 7% 13% 12/31/16 9/30/2024 $5
Slide 12: Opportunistically Expanding Our Deposit Franchise
12 12 Opportunistically Expanding Our Deposit Franchise Dime has capitalized on local market disruption by strategically expanding its footprint over the past 18 months April 2023: 3 New Deposit Groups June 2023: 3 New Deposit Groups March 2024: Added National Deposit Group from leading regional ban
Slide 13: Strong Growth in Noninterest Bearing Deposits
13 13 (15%) (10%) (5%) 0% 5% 10% 15% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Noninterest Bearing Deposits YTD Growth (%) Noninterest Bearing Deposits / Total Deposits (%) Strong Growth in Noninterest Bearing Deposits Source: S&P Capital IQ Pro (1) Includes institutions headquartered in the New York
Slide 14: Significant Net Interest Margin Expansion
14 14 29bp 10bp DCOM Nationwide Peers (Median) Significant ’24Q1 – ’24Q3 Net Interest Margin Expansion vs. Nationwide Peers (2) Improving NIM Will Drive Higher Profitability 1. NIM bottomed in the first quarter of 2024 and has since expanded by 29bp in the subsequent two quarters. YTD expansion has
Slide 15: Pristine Asset Quality Remains a Hallmark
15 15 Pristine Asset Quality Remains a Hallmark Our cumulative credit losses were extremely low compared to the KRX Bank Index during the 2008 Financial Crisis. Post 2008 Financial Crisis, our credit losses continue to track well below the bank index Source: S&P Capital IQ Pro (1) Represents the sum
Slide 16: Low Level of Nonperforming Assets
16 16 Low Level of Nonperforming Assets Source: S&P Capital IQ Pro Note: As of September 30, 2024; Listing of banks includes publicly traded institutions (<$100 billion of assets and HQs in N Y a nd NJ) with over $5 billion of deposits in New York - Newark - Jersey City MSA; Nationwide Peers defined
Slide 17: Potential Balance Sheet Optimization
17 17 Potential Balance Sheet Optimization Would Further Improve Dime’s Profitability Profile… We are evaluating a potential repositioning of low - yielding available - for - sale securities and a repositioning of our BOLI portfolio The goal of a potential securities repositioning and BOLI repositio
Slide 18: Supplement Dime's Capital Base
18 18 TCE Ratio 7.0% 7.3% 8.0% 2023Q4 2024Q3 – … And Supplement Dime’s Capital Base for Continued Growth Source: S&P Capital IQ Pro (1) Potential b alance shee t optimization includes ~$400 million securities repositioning and ~$100 million BOLI repositioning. Please see slide 17 for additional info
Slide 19: Clear Path to Higher Structural Profitability
19 19 $10B - $15B Bank Median $53.3 $108.6 $155.7 $33.6 $14.5 $7.2 $11.6 $35.5 DCOM Q3 2024 Annualized Net Income Anticipated Uplift From Fed Rate Cuts Impact of Balance Sheet Optimization Impact From Deployment of New Capital Add-Back of Excess Provision Back-Book Repricing Illustrative Potential N
Slide 20: Compelling Valuation & Upside Potential
20 20 Compelling Valuation & Upside Potential Source: S&P Capital IQ Pro; FactSet estimates (1) Major exchange - traded U.S. - based banks and thrifts with total assets between $10 billion to $15 billion, excluding merger target s, mutuals, and banks with specialized business models. (2) Assumes a g
Slide 21: Investment Highlights
21 21 Local market Disruption presenting unprecedented opportunities for growth Strong track record of DDA Growth with engine primed for more Well - positioned for further Declining Short - Term Interest Rate Environment Superior Asset Quality underpinned by disciplined credit culture 21 NEW YORK’S
Slide 22: Appendix
Appendix aii DIME
Slide 23: Loans by Asset Class
23 23 $ in millions Avg Loan Size 1-4 Family 934$ 57% 0.5$ Multi-Family 3,867 57% 3.7 Owner Occupied Real Estate 1,380 58% 2.3 Investor CRE Retail 1,158 52% 2.6 Investor Office 610 59% 5.9 Warehouse/Industrial 454 54% 3.9 Hotels 353 57% 8.4 Supportive Housing 180 60% 22.5 Medical Office 141 62% 6.1
Slide 24: Core Deposits Reconciliation
24 Core Deposits Reconciliation Non - GAAP Reconciliation (Dollars in billions) As of Period Ended Core Deposits Reconciliation 12/31/2023 9/30/2024 Total Deposits $10.5 $11.4 Less: Brokered Deposits (non-time brokered deposits) (0.2) (0.1) Less: Time Deposits (including brokered deposits) (1.6) (1.
Slide 25: Consensus Estimated 2025 EPS
25 Consensus Estimated 2025 EPS $ (mm) Shares (mm) Per Share Standalone Net Income Available To Common Stockholders $103.4 39.2 $2.64 Net of Tax Adjustments @ 31.5% Marginal Tax Rate: Add: Income From ~$400M Securities Repositioning (1) 9.2 Add: Income From ~$100M BOLI Repositioning (2) 5.3 Add: Int
Slide 26: Illustrative Pro Forma Tangible Book Value Walk
26 Illustrative Pro Forma Tangible Book Value Walk (1) Assumes a gross offering of $125 million of common equity at $34.43/share, with an underwriting spread and customary offering ex penses. (2) Assumes ~$400 million of AFS securities are sold ; impact on Tangible Common Equity reflects estimated m
Slide 27: Illustrative Pro Forma Balance Sheet
27 Illustrative Pro Forma Balance Sheet (1) Assumes a gross offering of $125 million of common equity at $34.43/share, with an underwriting spread and customary offering ex penses. Note: Please see slide 17 for additional information regarding the balance sheet optimization transactions. Please see
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