Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — Sandler O'Neill Road Trip (May 2009)
23 slides from Dime Community Bancshares's conference presentation, May 14, 2009
Slide 1: Sandler O'Neill Road Trip
Since 1864 Sandler O'Neill Road Trip May 14, 2009 Statements made herein that are fonard looking in nature within the mearing ofthe Paivate SecuiliesLitgation Reform Act of 1095 are subjactto disks and Unoefaines that could cause actual results to der matedaly. Such fsks and unoertaines include but
Slide 2: Financial Statistics Review
Financial Statistics Review ‘As of or for the Three Months Ended March 31, 2009 2008 change Total Assets $4,040,758 $3,640,301 $400,457 11.0% increase Total Loans 3,298,349 2,934,098 $364,251 «12. 4%increase Total Deposits 2,335,524 2,193,636 $141,888 6 S%inerease Loan Originations 84,051 163,695 79
Slide 3: Financial Review
Financial Review Three Months Ended March 31, 2009 1. DCOM has no “sub-prime” or “Alt-A” Loans Core Earnings Per Share $0.17 Core Return on Average Tangible Equity 9.4% Return on Average Assets 0.54% a KR WN Current Stock Price $7.96 (close of 5/12/2009) Dime Community Bancshares, inc.
Slide 4: Financial Review (continued)
Financial Review Three Months Ended March 31, 2009 (continued) 6. OTTI charge of $5.1 million or 8 cents per share + None currently forecasted in the June 2009 quarterly projection 7. Loan credit costs of $4.1 million (7 cents per share) Guidance for June 2009 quarter includes $3.0 million 8. Non-in
Slide 5: Quarterly GAAP EPS vs. Stock Price
Quarterly “GAAP” EPS vs. Stock Price 80.30, nes $26.00 ga: mmmEPS = ——Stock Price pales $21.00 80.20 90,18 S047 $017 $017 S017 SUIT Sit $13.00 $9.00 $6.00 Note: Estimate for Jume 2008 quarter equals midpoint of guidance given in the Comaany’s April 29, 2008 earnings release Dime Community Bancshares
Slide 6: Share Repurchase Program
900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Dime Community Bancshare. Share Repurchase Program mag Shares Repurchased -e Stock Price 8.8% of shares OS since 40'05| 6.2% of shares 01S during 2007| Ma08 Jun-08 Sep-05 DecOS MarO7 JunG? SepO7 Deo07 MacOS Jund8 Sep-08 Deo-C8
Slide 7: Balance Sheet Composition
Balance Sheet Composition Assets " Liabilities and Equity shan Panes uestmarts aber All Other MBS 7% Equity ad oe i ‘mCash short-term Investments 5% investments MBS 7% aLoms82% all Other 6% Dime Community Bancshares, In Note: as of March 31, 2009,
Slide 8: New York City
New York City Types of Housing** Mitchell. Conventional” Renter. Lama 21% Occupied 2% 67% Condo, 2% “Owner occupied buildings camprised predominantly of f to 4 residential unis, * Housing stock equals 3,925,902 units, Dime Community Bancshares, inc. Sourve: 2005 New York City Housing and Vacancy Sin
Slide 9: Loan Portfolio Composition
Loan Portfolio Composition [Total Loan Portfolio as of December 31, 2008 (excluding construction loans) Description | Total Balance | Curent LT | Original DSR | % of Portfolio Mulally Residential 1,240,700,000 50% 16 38.7% Muttitamity (Commercial Rents < 50%) 797,500,000 49% 18 24.9% Mutttamity (Com
Slide 10: 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 11: Insider Ownership
Insider Ownership Vincent F. Palagiano - Chairman of the Board and CEO 1,460,688 Michael P. Devine - President and Chief Operating Officer 845,762 Kenneth J. Mahon First Executive Vice President and CFO 569,441 All Directors and Executive Officers 7,008,346 Dime Community Bancshare. 43% 25% 1.7% 205
Slide 12: Loan Originations
Loan Originations Strong Origination Volumes During 2008. Reduced Origination Volume in Q1 of 2009 as Company Elects to Preserve Capital Levels. 51,200,000, e.s0% 6.40% mmdignaions wo pe 5,000,000 ‘ones 630% SPened th loan pipeline 800,000 620% 500,000 ‘s400,000 20% $200,000 so scm ‘2008 ‘2007 2008
Slide 13: 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% “00% 20% 8 sy cy ae 2% com, ew aK 05% 20% aw 20% ow tf ae a Saw. cn 1007 2007 auOr anor 1008 2008 su0e 4oNe 1200 13
Slide 14: Low Level of Non-Performing Assets
Low Level of Non-Performing Assets 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Dime Community Bancshares, In Dime continues to be an industry leader in loan quality, with a low level of non-performing assets... mDCOM Olndustry Median ulndustry Average 2008 2008 2006 2007 March 2008 Source: Sandler O'N
Slide 15: Charge-off & Non-Performing Asset Percentages
Charge-off & Non-Performing Asset Percentages NPA's peaked at 5.01% of Total Loans in 1992... mmm Charge Of % of Loans ——NPA's as % of Total Loans Dime Community Bancshares, inc. 15
Slide 16: Non-Performing Assets/Tangible Equity
Non-Performing Assets/Tangible Equity NPA's peaked at 62% of Tangible Equity also in 1992. 3,500,00 mma Total Loans NPAs to TE 3,000,000 2,800,000 2,000,000 + 000m + 000,000 00,000 PLP LE LE LL EL PT SPT ie Dime Community Bancshares, Inc. 16
Slide 17: Repricing Loans
Repricing Loans 19% of the Loan Portfolio reprices within the next 21 months $3,400,000 may Annual Repricings $2,550,000 7 -Cumulative Repricings $1,700,000 $748,341 $850,000 151,0 $- 5301 2009-2010) 2011» 2012) 2013 Beyond Dime Community Bancshares, inc. : 7
Slide 18: Maturing Borrowings
Maturing Borrowings $400,000 March 31, 2009 Total Borrowings = $1.19 billion’ aig $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 4 4 3 422009 @32009 @42009 2010 © 2011-2012 2013 Beyond + Excludes $25.0 milion 926% subordinated note that mature in 2010 and $70 milion 7% trust prefer
Slide 19: Focus on Profitable Deposits
Focus on Profitable Deposits March 2008 March 2009 Total Deposits = $2.33 billion Total Deposits = $2.19 billion Prime Other Pie Other Dine checking checking Money Mons 25% Growth in Checking Accounts since March 2008 Dime Community Bancshares, Inc. D 19
Slide 20: Maturing CD's
Maturing CD’s Maturing CD's -2009 Dies highest non promalional CO rate oVeted fp Rata Deposits Tor maluies oF 18 mohs or ess Thave are no premium rates for accounts over 100000, — The Average 2 Year FHLBNY Advance Rate for each Month Dime Community Bancshares, inc. 20
Slide 21: Key Interest Rates
Key Interest Rates Key Interest Rates Fed Funds| 2 Year FHLBNY Advance Rate| CD Rate ® 9 Month Brokered CD Rate ®) MMA Rate ®) MMA Peer Grow © Dime's highest non promotional CD rate offered to Retail Depositoxs for maturities cf 18 months or bss, Bere ate no premhmaraes fr accoues ove $100,000. ® so
Slide 22: Prudent Branch Expansion
Prudent Branch Expansion sf a v \ Two new branches | ain \ strategically located, ae \ deepen the Dime fe \ footprint. Dees 22
Slide 23: 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
Dime Community Bancshares — Sandler O'Neill Road Trip (May 2009) on 6ix