Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — Sterne Agee Financial Services Conference 2009
23 slides from Dime Community Bancshares's conference presentation, Feb 17, 2009
Slide 1: Sterne Agee Financial Services Conference
a of Mi 5 Since 1864 Sterne Agee Financial Services Conference February 9, 2009 Statements made herein that are fonard looking in nature within the meaning ofthe Paivate SecuiliesLitgation Reform Act of 1095 are subjactto disks and Unoefaines that could cause actual results to der matedaly. Such fsk
Slide 2: Financial Statistics Review
Financial Statistics Review As of or for the Year Ended December 31, 2008 2007 change Total Assets $4,055,598 $3,501,175 $554,423 15.8% increase Total Loans 3,291,505 2877,025 $414,480 14 4%increase Total Deposits 2,260,051 2,179,998 $80,053 37%decrease Loan Originations 1,089,361 574526 $514,835 89
Slide 3: Financial Review
Financial Review Year Ended December 31, 2008 1. DCOM has no “sub-prime” or “Alt-A” Loans 2. Earnings Per Share $0.85 + increase of 27% compared to $0.67 in 2007 3. Return on Average Tangible Equity 12.5% + compared to 9.9% in 2007 4. Return on Average Assets 0.76% + compared to 0.69% in 2007 5. Cur
Slide 4: Financial Review
Financial Review Highlights of the Quarter Ended December 31, 2008 1. Core Earnings Per Share $0.22 Guidance of $0.20 to $0.22 provided for March 2009 quarter 2. OTTI charge of $3.2 million or 5 cents per share + None currently forecasted in the March 2009 quarterly projection 3. Provision for loan
Slide 5: Quarterly EPS vs. Stock Price
Quarterly EPS vs. Stock Price $19.00 $18.00 $17.00 $16.00 $16.00 $14.00 $13.00 $12.00 mmm EPS Stock Price $0.17 $0.17 go17 go17 ga17 3 Note: Estimate for March 2003 quarter equals midpoint of quidance given ia the Company's January 23,2009 earnings release e Community Bancshares, in IME
Slide 6: Share Repurchase Program
900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Share Repurchase Program mag Shares Repurchased -e Stock Price 8.8% of shares OS since 40°05 6.2% of shares O1S during 2007 Dime Community Bancshare. Mar-O6 Jun-06 Sep-06 Dec-06 Mar-O7 Jun-7 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 De
Slide 7: Balance Sheet Composition
Balance Sheet Composition ASSES Liabilities and Equity shartterm Investments ee me ratmerte ter MES O96 all ater co faity 5 En [mCash short-term Investments mDeposts 55% investments MBS 8% orrowings 3% Loans 81% quity 7% All Other 6% Other 3% Dime Community Bancshares, In Note: as of December 31, 20
Slide 8: Loan Portfolio Composition
Loan Portfolio Composition ‘Small Mixed Com mercial Use Canstruction Mixed Use 25% 14% (tte LTV 64% other Underlying a 22% COOP LTV 45% // Leds Bure. TW 49% Commercial Multiram ity Mixed Use 24.9' LTV 68% Total weighted Average LTV = 56% Total weighted Average DSR = 1.80X Note: as of December 31, 20
Slide 9: 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 10: Insider Ownership
Insider Ownership Vincent F. Palagiano - Chairman of the Board and CEO 1,482,629 Michael P. Devine - President and Chief Operating Officer 870,688 Kenneth J. Mahon First Executive Vice President and CFO 536,278 All Directors and Executive Officers 6,354,252 Dime Community Bancshare. 44% 26% 1.6% 18.
Slide 11: Loan Originations
Loan Originations Originations picking up beginning 3° Quarter 2007. Large Increase in June and September 2008 Quarters. 51,200,000, ecm 6.40% se ongiaions 5,000,000 Swro marage rate 630% Seid nd ean piping 800,000 620% 500,000 ‘s400,000 $200,000 so Dime Community Bancshares, Inc. "1
Slide 12: 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% 20% 20% 20% ow 05% ae Co ex ex sos et on 58% on a6 200 ame 2008 40% tour 2007 acu? sou tone 20ne sone 4oTe 12
Slide 13: Low Level of Non-Performing Assets
Low Level of Non-Performing Assets 1.80% 1.860% Dime continues to be an industry leader in loan quality, 2.00% With a low level of non-performing assets.... 4.40% | — 41.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Dime Community Bancshares, In mDCOM Olndustry Median ulndustry Average 2008 2008 2006 2007
Slide 14: 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% wm Charge OF % of Loans Si00%e: —NPA\s a5 % of Total Loans S008, 6.00% 6.00% 4.00% 4.00% 2.00% 2.00% 0.00% | a.00% PPE PEP A PE EEIEEE EES Dime Community Bancshares, inc. 14
Slide 15: Non-Performing Assets/Tangible Equity
Non-Performing Assets/Tangible Equity NPA's peaked at 62% of Tangible Equity also in 1992. 93,500,000 mma Total Loans $3,000,000 EASTER $2,g00,000 2,000,000 1,g00,000 1,000,000. $s00,000! ” PSGPASISAOM OES MSETESE Dime Community Bancshares, Inc. 15
Slide 16: Other-than Temporary Securities Impairment and Fannie Mae Support Obligation
Other-than Temporary Securities Impairment and Fannie Mae Support Obligation Other than Temporary Securities Impairment + $3.2 million recognized to date on trust preferred securities portfolio +$14.4 million amortized cost remaining in trust preferred securities. > $8.7 million of unrealized loss a
Slide 17: Repricing Loans
Repricing Loans 22% of the Loan Portfolio reprices within the next 24 months $3,400,000 $2,550,000 $1,700,000 $850,000 $- wag Annual Repricings ——Cumulative Repricings 253,28 z my | $445,319 $829.63 7¢647 176] | a 2009 2010 2011 2012 Dime Community Bancshares, In 2013 Beyond
Slide 18: Maturing Borrowings
Maturing Borrowings $950,000 December 31, 2008 $300,000 | Total Borrowings = $1.25 billion’ $250,000 $200,000 $150,000 $100,000 $50,000 $0 @1-2009 42.2009 03.2009 042009 2010 2011 2012-2013 Beyond Dime Community Bancshares, inc. + Excludes $25.0 milion 926% subordinated note that mature in 2010 and
Slide 19: Focus on Profitable Deposits
Focus on Profitable Deposits December 2006 December 2008 Total Deposits = $2.01 billion Total Deposits = $2.26 billion Other Pie Othe erecta pie creck Money Ms Non-promotional Deposits - 40% Non-promotional Deposits - 52% 56% Growth in Checking Accounts since December 2006! Dime Community Bancshares
Slide 20: Maturing CD's
Maturing CD’s Maturing CD's -2009 — Dime’s highest non-prometional CO rate ofered tp Retal Depositors for matuties of 18 months of less. There 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 Raie | 9 Month Brokered CD Rate | MMA Rate ®| MMA Peer Grow ®| ime hihectnonpromotinal CD rate oferedte Retail posters for matures f oman oss. Thar aero prenim rites fer accouss one $100 000, source Sui Nikolas pines pron
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 2007
Dime Ranks Near the Top in 2007 SNL Top 100 Thrifts Total Score 1 AR 2008 Retum on Assets 0% 2225 076% Retum on Equity 1.9% -20- 10.29% 3-Year Annual Growth Rate of TBV 1.33% =2Ve 1.60% Efficiency Ratio (operating expenses) 56.25% 10- 51.25% ‘Non-performing Assets 0.08% <3 0.22% Charge-ofifs 0.00% a
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