Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — IPO Roadshow (January 2020)
28 slides from Dime Community Bancshares's IPO roadshow presentation, Jan 29, 2020
Slide 1: Investor Presentation January 2020
Investor PresentationJanuary 2020 DIME COMMUNITY BANCSHARES, INC.(Nasdaq: DCOM)
Slide 2: Disclaimers
2 Disclaimers This presentation 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
Slide 3: Dime's Vision Statement
3 Dime’s Vision Statement To transform the business model from a “mono-line thrift” into the preeminent Metro New York community commercial bank.
Slide 4: Preliminary Term Sheet
4 Preliminary Term Sheet (1) A rating is not a recommendation to buy, sell or hold securities. Ratings may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating agency has its own methodology for assigning ratings and, accordingly, each rating should be e
Slide 5: Leadership Team
Leadership Team 5 Robert VolinoSEVP, COOHired: October 1999 Stuart LubowSEVP, Chief Banking OfficerHired: January 2017 Kenneth MahonPresident & CEOHired: July 1980 Angela Blum-FinlayEVP, Chief Human Resources OfficerHired: October 2016 Conrad GuntherEVP, Business BankingHired: Dec. 2016 Michael Fega
Slide 6: Corporate profile
Corporate profile Founded as The Dime Savings Bank of Williamsburgh in 1864; converted to public ownership in 1996Changed name to “Dime Community Bank”, effective August 201628 branches in Brooklyn, Queens, Nassau, Bronx and SuffolkHistorically, Dime specialized in lending against New York City mult
Slide 7: Key Highlights
Key Highlights 7 Fully Committed to Business Model TransformationBusiness Banking Division Demonstrating Strong MomentumInvestments Made in New Business OpportunitiesBranch Franchise Has Significant Scarcity ValueReduced CRE Concentration and Improved LiquidityFocused on Preserving Best-In Class Cre
Slide 8: Rationale for Transformation: Significant Runway To Improve Margin
Institution Name Yield on Total Loans (%) Multifamily Loans / Total Loans (%) ConnectOne 5.19 29.4 Sterling 4.99 22.9 Bridge 4.73 19.2 Lakeland 4.71 11.5 OceanFirst 4.63 8.3 Provident 4.47 17.9 Flushing 4.45 38.8 - MEDIAN - 4.45 28.7 Northfield 4.20 66.0 Peapack 4.19 28.7 Kearny 4.18 45.2 Dime 4.01
Slide 9: Business Banking: Progress To-Date
9 Business Banking: Progress To-Date Business Banking Originations To-Date ($M) Since its inception in 2017, the Business Banking division has originated over $1.3B of relationship-based loans. Business Banking origination yields are well above the overall portfolio rate. WAR% 4.19% 4.73% 4.61% 4.87
Slide 10: Business Banking: Significant Deposit Opportunity
10 Business Banking: Significant Deposit Opportunity Deposits associated with Dime’s legacy multi-family loan portfolio have historically been in the 5% areaDeposits associated with the new Business Banking loan portfolio are currently 25%By simply re-mixing Dime’s portfolio from multifamily loans t
Slide 11: Business Banking: Loan Portfolio Overview (9/30/19)
11 Business Banking: Loan Portfolio Overview (9/30/19) Total Business Banking Portfolio: $1.2 Billion Total Portfolio: Adjustable vs Fixed WAR: 5.05% Growth in our Business Banking portfolio is accretive to our overall NIM, as the portfolio has a higher yield and is accompanied by self-funding depos
Slide 12: Business Banking: Overview of C&I Portfolio
12 Business Banking: Overview of C&I Portfolio Breakdown by Industry ($ Millions) Breakdown by Size Average Loan Size for Total Portfolio: $2.3 MillionAverage Loan Size Excluding Loans <$250k: $4.3 Million Industry Balance % of Total High Net Worth Individuals $96.3 31% Finance and Insurance $49.8 1
Slide 13: Investments Made in New Business Opportunities
13 Investments Made in New Business Opportunities Fee Income Deposits Lending
Slide 14: Branch Franchise Has Significant Scarcity Value
Branch Franchise Has Significant Scarcity Value 14 Brooklyn Nassau Queens Brooklyn is the 2nd most densely populated county nationwide and is one of the fastest growing population centers for millennials. Queens (#4 by population density) and Nassau (ranks #20 by population density) are also very at
Slide 15: Significant Number of Business Establishments in Our Geographic Area
Source: United State Census Bureau. Data based on the 2016 County Business Patterns.(*) An establishment is a single physical location at which business is conducted or services or industrial operations are performed. It is not necessarily identical with a company or enterprise, which may consist of
Slide 16: Reduced CRE Concentration and Improved Liquidity
Dime Reduced CRE Concentration and Improved Liquidity 16 CRE Concentration (1) Cash and Unencumbered Securities / Total Assets (2) Note: All data presented at the Consolidated Company level. (*) Peers include: Bridge, ConnectOne, First of Long Island, Flushing, Lakeland, New York Community, OceanFir
Slide 17: Strong Capital Position
Strong Capital Position 17 Note: Pro forma assumes a $50 million gross offering, no exercise of the underwriters’ option to purchase additional depositary shares, 3.15% gross underwriting fee and 20% risk-weighting on new assets. Source: S&P Global Market Intelligence Consolidated Capital Ratios at
Slide 18: Historically Low Credit Losses
Historically Low Credit Losses 18 Cumulative NCOs represent net charge-offs from 2007, 2008, 2009, 2010, 2011, 2012 and 2013 divided by gross loans at 12/31/2006Cumulative NCOs represent net charge-offs from 2013, 2014, 2015, 2016, 2017, 2018 and 2019 YTD divided by gross loans at 12/31/2012 Note: Y
Slide 19: Strong Asset Quality
Strong Asset Quality 19 Note: Year-to-date 2019 is for the nine months ended September 30, 2019.(1) Year-to-date net charge-offs / average loans as of September 30, 2019 presented on an annualized basis Allowance / Nonperforming Loans Reserves / Loans Nonaccruals / Loans Net Charge-offs / Average Lo
Slide 20: Proven History of Growing Tangible Book Value
Proven History of Growing Tangible Book Value 20 “Economic Value” Creation (1) by Dime (FY 2008 – FY 2018) “Economic Value” Creation (1) vs. Peers (FY 2008 – FY 2018) Calculated as follows: increase in tangible book value per share plus cumulative dividends, as a percentage of starting tangible book
Slide 21: Sources of holding company liquidity
Sources of holding company liquidity Dime Community Bancshares, Inc.’s principal source of funds to pay cash dividends is cash dividends from Dime Community Bank As of September 30, 2019 the dividend capacity from Dime Community Bank was $75.7 millionThe only existing holding company debt obligation
Slide 22: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results 22 Net income of $6.9 million ($0.19 per share), or $9.6 million ($0.27 per share)(1) excluding non-recurring items Non-recurring items include $3.8 million of pre-tax expenses related to the extinguishment of higher-cost Federal Home Loan Bank (“FHLB”) borrowings and $0.
Slide 23: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results 23 NPLs of $11.1 million, or 0.2% of total loans, at 12/31/19 represents a 32% decrease from $16.4 million, or 0.3% of total loans, at 9/30/19Credit costs resulted primarily from a $5.0 million charge-off and a $7.5 million specific reserve taken against a single C&I rela
Slide 24: Appendix
24 Appendix
Slide 25: Historical Financials
HISTORICAL FINANCIALS Note: Dollars in millions except per share dataThese are non-GAAP measures. See “Non-GAAP Reconciliation” in the Appendix.Presented on an annualized basis. For the Year Ended 2015 2016 2017 2018 Q2 2019 Q3 2019 Balance Sheet Items Total Assets $5,033 $6,005 $6,403 $6,321 $6,498
Slide 26: Dime Non-GAAP Reconciliation
Sin thousands, exceptper share amounts For th DIME NON-GAAP RECONCILIATION ‘Tangible Common Equity Total Equity sa03947 $565,868 © $50R567 $e02081 S60, 701 $08,904 Less: Goodwill 55.638 55.638 55.638 55.638 55,68 55,638 ‘Tangible Common Ratio “Tangible Common Equity $438,309 $510,230 $5az.979 «$545,
Slide 27: Non-GAAP Reconciliation (continued)
Year-to-date average is a quarterly average taken over the trailing 4 quartersQuarter-to-date average is a monthly average taken over the trailing 4 months NON-Gaap reconciliation (continued)
Slide 28: Non-GAAP Reconciliation (continued)
Adjustments to net income are taxed at the Company’s statutory tax rate of approximately 32% NON-Gaap reconciliation (continued)
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