Dime Community Bancshares, Inc. · NYSE:DCOM

Dime Community Bancshares — Keefe, Bruyette & Woods New York Field Trip (May 2006)

20 slides from Dime Community Bancshares's conference presentation, May 10, 2006

  1. Slide 1: Keefe, Bruyette & Woods New York Field Trip

    "a DIME COMMUNITY BY, CSHARES, INC. (Nasdaq: DCOM) Keefe, Bruyette & Woods New York Field Trip May 9, 2006

  2. Slide 2: Overview of Dime Community Bancshares, Inc.

    DIME COMMUNITY Overview of Dime Community Bancshares, Inc. $3.14 billion in Assets as of March 31, 2006 Market Capitalization — Approx. $525 million Average Daily Trading — Approx. 130,000 shares Insider Ownership — 13.4% (excluding stock options)

  3. Slide 3: Diluted Earnings Per Share

    ( DIME COMMUNITY O__ Diluted Earnings Per Share $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- Historical Earnings Per Share Consensus Estimate $0.90 2000 2001 2002 2003 2004 2005 2006

  4. Slide 4: Diluted Earnings Per Share and Dividends per Share

    f DIME COMMUNITY O Diluted Earnings Per Share @ Dividends per share 2000 §=2001 2002 2003 2004 2005

  5. Slide 5: US Treasury: Historical Spot Curves

    DIME COMML NITY 6.00 5.00 4n0 £. 3.00 a 200 100 ooo US Treasury: Historical Spot Curves May 1, 2006 June 1, 2004

  6. Slide 6: Trend in Yields and Costs

    DIME COMML NITY Trend in Yields and Costs Rate on R/E Loan Originations == Avg. Cost of Deposits: 3.00% —*—Period End Target Fed Funds Rate 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Mar- Jun- Sep- Dee- Mar- Jun- Sep- Deo Mar- Jun- Sep- Dee Mar- Jun- Sep- Dec- Mar- oz 02 02 02 2 03 03 02 04 04

  7. Slide 7: Net Interest Margin

    f°), DIME COMML NITY Net Interest Margin (including Prepayment Fee Income and Excluding Non-Recurring Items) aan 00% 4 00% 3.21% : 3.06% 308% t [293% 289% 25506 » Joy itar-03 iiar-04 itar-05 itar-06 Three Months Ended

  8. Slide 8: Loan Activity

    f u )DIME COMMUNITY $in Thousands $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 4am $ Originations Loan Activity Amortization Speed % 1999 2000 2001 2002 2003 2004 2005 10 2006 Annualized 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

  9. Slide 9: Loan Portfolio: Distribution by Property Type

    ( DIME COMML Signet Loan Portfolio: Distribution by Property Type (March 31, 2006) 50% 7 B Residencial Nxed O Commercial One to Four Family @ Construction and Land Acquisition | 5 Coop ave 08 Ema LOC

  10. Slide 10: Loans Maturing or Repricing by Year

    Loans Maturing or Repricing by Year (with current weighted average rate) $800,000, Combined $1.37 billion at average rate of 5.40% |uums $600,000, ook é y | 5.38% ss5y% 4.29% $400,000, $200,0005 6.55% 7.20% $014 cd | . 2006 «#2007 «+2008 2009 2010 2011 Beyond 10

  11. Slide 11: Non-Performing Assets in Dollars and as % of Total Assets

    DIME COMMUNITY Non-Performing Assets in Dollars and as % of Total Assets $in Thousands $5,000- 017% $4,000- $3,000 $2,000- $1,000- $0- 1998 «1999 2000 2001 2002 2003. 204) 2005 Mar-06 i

  12. Slide 12: The best of the largest publicly traded thrifts, ranked by performance

    Table 4: The best of the The 100 largest pubes by asset size, ranked by nancial performance fo FY 2005 Tiree yar WrAs NCOs! “Total Core Core Annual Core Efficiency +90 Aug jggest 03 Performance Assets ROAR ROAE EPS Growth Rao Assets Loans Rank Company (2008 Rant) Ticker stte Score omy.) o 8 © © 1 Tr

  13. Slide 13: Deposit Balances

    $in Thousands $2,500,000 5 $2,000,000 4 $1,500,000-4 $1,000,000 4 $500,000 + $o-+ {a Deposit Balances 2000 2001 2002 2003 2004 2005 2006YTD 13

  14. Slide 14: Loan to Deposit Ratio

    ( DIME COMMUNITY 150% 100% 50% 0% 2000 2001 Loan to Deposit Ratio 2002 2003 2004 2005 2006Q1 14

  15. Slide 15: Deposit Data

    PME COMMUNITY i Deposit Data Checking 34,NOW co's u% Money Mkt. March 31, 2006 Total Deposits = $1.95 Billion Average Cost = 2.71% Average Deposits / Branch = $92.7 Million 15

  16. Slide 16: Retail Banking Initiatives

    DIME COMMU: NITY Retail Banking Initiatives + More competitive pricing in order to stabilize deposit balance levels + Early stages of formation of professional banking group to drive low-cost deposit generation {expected to favorably impact deposit costs in 2007 and beyond) + Promotional passbook an

  17. Slide 17: Capital Generation (Cash Return on Tangible Equity)

    DIME COMML NITY 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Capital Generation (Cash Return on Tangible Equity) 14.7% 1999 2000 2001 2002 2003 2005 10 2006 7

  18. Slide 18: Tangible Equity

    @! \DIME COMMUNITY Tangible Equity $350 mma Amt. (in mi ji Ro $s0G seni $250 ees $200 Sos S156 Fan $100 $50 toes s- + bei d 2000 89-2001 2002 «2003 «2004 «= 2005 «0 1Q2006 18

  19. Slide 19: Excess Tangible Capital Allows for Future Growth Potential

    esata ee NE Excess Tangible Capital Allows for Future Growth Potential (March 31, 2006) Tangible Capital Ta . Asset: Equity Ratio a> setnee $ 240,831 7.79% $ 3,090,583 $ 240,831 5.50% $ 4,378,745 Asset growth potential = $ 1,288,162 19

  20. Slide 20: Excess Capital also Helps Facilitate Dividends and Repurchases

    DIME COMMUNITY Excess Capital also Helps Facilitate « Retention of quarterly cash dividend ¢ Treasury stock repurchases > Currently over 1.8 million shares authorized for future repurchase 20

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