Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — IPO Roadshow (June 2024)
37 slides from Dime Community Bancshares's IPO roadshow presentation, Jun 25, 2024
Slide 1: Dime Community Bancshares, Inc. (NASDAQ: DCOM) June 2024
Dime Community Bancshares, Inc. (NASDAQ: DCOM) June 2024
Slide 2: Forward-Looking Statements
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,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,
Slide 3: Additional Information
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 r
Slide 4: Offering Summary
4 Issuer Security Type Offering Size Issuance Type Term Bookrunning Managers Call Date Use of Proceeds Expected Security Rating (1) Offering Summary Dime Community Bancshares, Inc. NASDAQ: DCOM Fixed - to - Floating Rate Subordinated Notes Due 2034 $25 par value $50 million Kroll: BBB - , Outlook St
Slide 5: Outstanding Subordinated Debt Schedule
5 Outstanding Subordinated Debt Schedule Term / Structure Maturity Call Date Amount ($000) Front - End Coupon Back - End Coupon Current Coupon 10yr NC 5 5/15/2032 5/15/2027 $160,000 5.00% 3mS + 218bps 5.00% 15yr NC 10 9/30/2030 9/30/2025 $40,000 5.75% 3mS + 372bps 5.75% Total / Weighted Avg. 1/17/20
Slide 6: Investment Highlights
6 Investment Highlights 1. Experienced management team executing on relationship banking strategy and capitalizing on disruption in local marketplace 2. Leader in highly attractive and stable market with a granular portfolio and best - in - class deposit franchise 3. Growth plan focused on increasin
Slide 7: History
7 History A community bank built on perseverance, character, customer service and community reinvestment 1864 1910 2021 The Dime Savings Bank of Williamsburg is founded approximately 6 months after President Lincoln delivers Gettysburg Address, and approximately 1 year before the US is reunited afte
Slide 8: #1 Community Bank on Greater Long Island by Deposit Market Share
8 1 Dime 56 $10.2 22.3% 2 Apple 46 $7.1 15.6% 3 Flushing 24 $6.3 13.8% 4 Ridgewood 27 $4.7 10.3% 5 First of Long Island 40 $3.4 7.4% #1 Community Bank on Greater Long Island by Deposit Market Share RankInstitution Branches Deposits ($B) Market Share Leading Market Share and Significant Scarcity Valu
Slide 9: Best-in-Class Deposit Franchise
9 Best - in - Class Deposit Franchise Non - Int Bearing DDA , 27% Savings, MMA & NOW , 59% Time , 14% $10.9B Total Q1 2024 Cost of Deposits: Vs “Footprint Peers” (1) (1) “Footprint Peers” include institutions with assets between $ 7.5 B - $75B and >$500M of deposits in any one of the Greater Long Is
Slide 10: Footprint with Above Average Wealth and Business Density
10 $116,449 $75,874 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 Dime's Greater Long Island Footprint United States Median Household Income Our Footprint is Characterized by Above Average Wealth and Significant Business Density • Median household income in our deposit footprint is w
Slide 11: Attractive Market with Opportunities for Market Share Gains
11 We Operate in An Attractive Market with Significant Opportunities for Market Share Gains • Combined population of ~ 8 million for Kings, Queens, Nassau, and Suffolk would represent the 14th largest state in the country • $329 Billion of total deposits in Greater Long Island marketplace (1) Source
Slide 12: Proven Track Record of DDA Growth
12 Proven Track Record of DDA Growth Total Non - interest - bearing Deposits ($ in millions) Our management team has a proven track record of growing DDA organically (1) Represents sum of Legacy Dime & Legacy BNB on a combined basis. $1,449 $2,921 12/31/2016 3/31/2024 (1)
Slide 13: Executing on Our Growth Plan
13 Executing on Our Growth Plan • 15 deposit - focused groups onboarded since March 2023. Collectively, the groups managed several billion in deposits at predecessor institutions • Successfully launched Healthcare lending vertical. Strong healthcare lending pipeline that is currently ~ $200 million
Slide 14: Focused on Customer and Banker Experience
14 Focused on Customer and Banker Experience Dime expands Commercial Online Banking platform for clients with real - time foreign currency needs April 2024 Dime Launches Zsuite to Expand Digital Banking Capabilities for Commercial Escrow Customers June 2023 Dime Announces Availability of Zelle® for
Slide 15: Year over Year Progression in Balance Sheet
15 Year over Year Progression in Balance Sheet Gross Loans ($M) $10,734 $10,774 Total Deposits ($M) $10,570 $10,899 FHLB Borrowings ($M) $1,498 $773 Loan / Deposit Ratio 101.5% 98.8% 3/31/2023 3/31/2024 Source: S&P Capital IQ Pro
Slide 16: Opportunity to Further Transform Balance Sheet
16 Opportunity to Further Transform Balance Sheet • Our focus is on growing Business loans (C&I & Owner - Occupied CRE), which are accompanied by a greater level of associated deposits. • Built out a middle market lending group and industry specific lending expertise to create a sustainable organic
Slide 17: Proactively Increased Capital Ratios
17 Proactively Increased Capital Ratios Note: Capital ratios shown on a consolidated basis; assumes $50 million of subordinated debt raised with customary offering e xpe nses; pro forma shown illustratively at 3/31/2024 on a consolidated basis Source: S&P Capital IQ Pro CET - 1 Ratio 9.3% 9.4% 9.7%
Slide 18: Dime Has Proactively Moderated CRE Growth
18 Dime Has Proactively Moderated CRE Growth Note: listing of banks includes publicly traded institutions (<$100 billion of assets and HQs in NY and NJ) with over $5 billion of deposits in New York - Newark - Jersey City MSA * All information from regulatory financials. CRE includes Investor CRE loa
Slide 19: Superior Asset Quality Through Various Cycles
19 Superior Asset Quality Through Various Cycles Our cumulative credit losses were extremely low compared to the KRX Bank Index during the 2008 Financial Crisis. Post 2008 Financial Crisis, our credit losses continue to track well below the bank index (1) Represents the sum of Legacy Dime and Legacy
Slide 20: Loans by Asset Class as of March 31, 2024
20 Loans by Asset Class as of March 31, 2024 (1) “Other” category includes various property types such as gas stations, restaurants, storage facilities, and other special us e properties. Dollars in millions Balance LTV 1-4 Family 874$ 56% Multi-Family 3,997 58% CRE Owner 1,246 57% Investor CRE Reta
Slide 21: Overview of Multifamily Portfolio
21 (1) For the nine months ended December 31, 2024 Note: Financial data as of March 31, 2024. Composition based on revenue. Loan Portfolio : $ 595 million Average Loan Balance: $2.52 million Weighted Average LTV: 58% Nonperforming Loans / Loans 0.00% 2024 Maturities & Repricing: $ 38 million 2025 Ma
Slide 22: Diversified and Granular Investor Office Portfolio
22 Diversified and Granular Investor Office Portfolio Investor Office Portfolio ($619M) Characteristics • Granular portfolio comprised of loans to experienced operators • Average loan size of ~$5.8 million • Manhattan exposure is ~$178 million with an LTV of ~ 48 % • Limited near - term maturity wal
Slide 23: Low Level of Nonperforming Assets
23 Low Level of Nonperforming Assets Note: As of March 31, 2024; Listing of banks includes publicly traded institutions (<$100 billion of assets and HQs in NY an d N J) with over $5 billion of deposits in New York - Newark - Jersey City MSA; Nationwide Peers defined as median major exchange traded U
Slide 24: Conservatively Managed Liquidity Position
24 Conservatively Managed Liquidity Position (1) Coverage defined as (On - Balance Sheet Liquidity + FHLB Capacity + FRB Capacity + Correspondent Lines) / Non - Insured Deposits (2) L isting of banks includes publicly traded institutions (<$100 billion of assets and HQs in NY and NJ) with over $5 bi
Slide 25: Strong Corporate Governance
25 Strong Corporate Governance x Significant Insider Ownership (9% of shares outstanding) x Annual election of entire slate of Board of Directors x Shareholder representation on Board of Directors (Basswood) x CEO & Chairman roles are split
Slide 26: Maintained Outstanding CRA Rating
26 Maintained Outstanding Community Reinvestment Act (“CRA”) Rating □ Maintained CRA rating of “OUTSTANDING” – the highest achievable mark □ Noted as a “leader in providing community development services” by the Federal Reserve Bank of New York for strong, effective, and consistent commitment to the
Slide 27: 2024 Q2 Mid-Quarter Update
27 2024 Q2 Mid - Quarter Update Balance Sheet Trends Income Statement Trends Asset Quality & Capital Trends x Deposits, excluding b rokered deposits and seasonal escrow deposits, expected to be up approximately $200 million for the second quarter x Core deposit growth driven by group hires within Pr
Slide 28: Appendix
28 Appendix
Slide 29: Experienced Management Team
29 Experienced Management Team Stuart Lubow – President & CEO Mr. Lubow served as President & Chief Operating Officer prior to being promoted to Chief Executive Officer in 2023. Mr. Lubow joined Dime as the Head of Business Banking in January 2017. Prior to joining Dime, he founded and was the CEO o
Slide 30: Sources of Holding Company and Bank Liquidity
30 Sources of Holding Company and Bank Liquidity • Cash at the Holding Company was approximately $23.5 million as of March 31, 2024 • The Holding Company’s principal source of funds to service debt is cash dividends from Dime Community Bank • As of March 31, 2024 the dividend capacity from Dime Comm
Slide 31: Double Leverage Ratio & Interest Coverage
31 Double Leverage Ratio & Interest Coverage For the 12-months ended Double Leverage As of Actual PF for $50 million sub debt raise 12/31/2021 12/31/2022 12/31/2023 3/31/2024 3/31/2024 Bank Subsidiary Total Equity 1,366,797$ 1,348,962$ 1,395,526$ 1,410,566$ 1,451,366$ Consolidated Total Equity 1,192
Slide 32: Historical Financial Performance
32 1.11% 0.81% 0.44% 0.48% 0.51% 1.14% 0.83% 0.69% 0.49% 0.48% 1.45% 1.16% 0.98% 0.87% 0.81% Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 ROAA Adjusted ROAA Adjusted PTPP ROAA (1) 15.6% 11.0% 5.7% 6.2% 6.6% 16.1% 11.4% 9.4% 6.4% 6.2% Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 ROATCE Adjusted ROATCE Historic
Slide 33: Return on Avg. Assets
33 Return on Avg. Assets (1) Adjustments to net income are taxed at the Company's statutory tax rate during the period unless otherwise noted. March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Return on Average Assets - as reported 0.51% 0.48% 0.44% 0.81% 1.11% Reporte
Slide 34: Return on Avg. Tangible Common Equity
34 Return on Avg. Tangible Common Equity (1) Adjustments to net income are taxed at the Company's statutory tax rate during the period unless otherwise noted. March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net Income - as reported $17,691 $16,308 $14,985 $27,498 $37
Slide 35: Pre-Tax Pre-Provision Net Revenue Reconciliation
35 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net interest income $71,530 $74,121 $76,479 $80,219 $85,752 Non-interest income 10,467 8,872 7,928 10,405 9,001 Total revenues 81,997 82,993 84,407 90,624 94,753 Non-interest expense 52,511 53,944 59,523 52,186 47,47
Slide 36: Reconciliation of Adjusted Net Interest Margin
36 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 NIM - as reported (1) 2.21% 2.29% 2.34% 2.50% 2.74% Net interest income - as reported $71,530 $74,121 $76,479 $80,219 $85,752 Less: Purchase Accounting Accretion on loans ("PAA") (82) (55) 186 58 586 Adjusted net int
Slide 37: Reconciliation of Adjusted Operating Expense as a % of Average Assets
37 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Operating expense as a % of average assets - as reported 1.52% 1.58% 1.73% 1.53% 1.41% Loss on extinguishment of debt -0.01% - - - - Severance - - -0.25% -0.01% - FDIC special assessment - -0.03% - - - Amortization o