Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — Raymond James 31st Annual Institutional Investors Conference (March 2010)
27 slides from Dime Community Bancshares's conference presentation, Mar 8, 2010
Slide 1: Raymond James 31st Annual Institutional Investors Conference
DIME Benatar Bancshares, Inc. Raymond James 31° Annual Institutional Investors Conference March 8, 2010 Dime Community Bancshares, Inc. Nasdaq: DCOM
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements contained inthis presentation that are net statements of historical fact contitute fonvardooking statement within the meaning of the Private Seourties Litigation Reform Act of 1096 (he "Aet), nobuthstanding that such statements are not=peotically Wentfed
Slide 3: Who We Are
Who We Are + Dime Savings Bank founded 1864 as a mutual savings bank in Williamsburg, Brooklyn * Converted to Public Ownership in June 1996 * Community retail bank model with an emphasis on multifamily residential lending « Help to grow to current size through 2 thrift acquisitions: “> Pioneer Savin
Slide 4: Experienced Lenders
Experienced Lenders The Management Team includes officers with many years of experience in commercial real estate and multifamily lending through numerous credit cycles in the New York market, including: + Vincent Palagiano, Chairman/CEO, 39 years with Dime + Michael Devine, President/COO, 38 years
Slide 5: Insider Ownership
Insider Ownership* The Executive Officers and Directors, and employees, have a significant ownership stake in the performance of the Company. Vincent F. Palagiano - Chairman of the Board & CEO 991,181" 2.9% Michael P. Devine - President and Chief Operating Officer 629,293 18% Kenneth J. Mahon - Firs
Slide 6: Prudent Branch Expansion
Prudent Branch Expansion sf a v \ Two new branches | ain \ strategically located, ae \ deepen the Dime fe \ footprint. Dees
Slide 7: Balance Sheet Review
Balance Sheet Review As of or for the Three Months Ended December 31, 2009 2008 change Total Assets $3,952,274 $4,055,598 ($103,324) 2.5% decrease Total Loans 3,395,675 3,291,505 $104,170 3.2%increase Total Deposits 2,216,836 2,260,051 ($43,215) 1. 9%6decrease Consolidated Tangible Equity 243,938 23
Slide 8: Balance Sheet Composition
Balance Sheet Composition Loans comprise 86% of assets; 153% Loan to Deposit Ratio Assets Liabilities and Equity caste sherttem rucstmerts —_thestmerte ai other Eqity z ‘@ Cash short-term Investments 1% minvestmentsiMBS 7% oLoms86% All Other 6% Dime Community Bancshares, In Note: as of December 31,
Slide 9: Financial Performance Review
Financial Performance Review Three Months Ended December 31, 2009 Core Earnings Per Share $0.26 Net Interest Margin 3.48% Core Return on Average Tangible Equity 14.4% Core Return on Average Assets 0.89% Efficiency ratio 45.6% a 8 WON > Dime Community Bancshares, inc.
Slide 10: 2009 P&L Line Items
2009 P&L Line Items 2009 REPORTED EPS = $ .79 1. OTTI credit charges of $7.9 million (13 cents per share) 2. Loan credit costs of $16.5 million (27 cents per share) 3. FDIC Assessment cost of $5.5 million (9 cents per share) (of which 3 cents was a one-time special assessment) EPS after adjustments
Slide 11: New York City
New York City Types of Housing* Mitchell. 1to 4 Family Renter- Lama 21% Occupied 2% 67% Condo, 2% * Housing stock equals 3,325,902 units. ine. DI Sourve: 2005 New York City Housing and Vacancy Siney, U.S. Cones Bureau, www oenais.cou Dime Community Bancshare. "1
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition At December 31, 2009 igi, 1tod Traditional Family with 2 in Commercial ail Commercial 2% Rents 5% Real Estate 15% ty Bancshares, Inc. 12
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition Tracitional 1to 4 Family Primary Residence msss2| 42% Nia 21% “tod Fanily with Commercial Rent [iced Ure ame) 6a 13 5% ut amily Residential a2amns.c00| 61% az 2an% aera Bool Mut amity (Commercial Rants © 60% e1a70,192| 60% 48 240% Mut amy (Commercial Rants » 60% 2a521704|
Slide 14: Loan Originations
Loan Originations EE Total Originations —e=Average Loan Origination Rate Average 5-Year Treasury Rate 31,2000 7.00% $4,086.7 1,000.0 6.00% 5.00% 3800.0 4.00% 36000 $563.2 3.00% $400.0 2.00% $2000 00g 00 0.00% 2008 2007 § in mitions 2008 2008 Dime Community Bancshares, inc. 14
Slide 15: Repricing Loans
Repricing Loans $inmillions 12% of the Loan Portfolio reprices within the next 12 months $3,500 mm Annual Repricings — Cumulative Repricings $2,625 4 $1,750 4 $1,1404 $875 7 $0 2010 2011 2012 2013 Beyond $in millions Dime Community Bancshares, Inc. 15
Slide 16: 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% 2006 2007 2008 2009 Dime Community Bancshares, Inc. 16
Slide 17: Low Level of Non-Performing Assets
Low Level of Non-Performing Assets Dime continues to be an industry leader in loan quality, with a low level of non-performing assets... 450% 400% sot} DCOM sms} industry Median mindustry Average 260% 200% 96 of total assets 150% 100% os0% ono 2008 206 2007 2008 Sep. 2000 Dime Community Bancshares,
Slide 18: Charge-off & Non-Performing Asset Percentages
Charge-off & Non-Performing Asset Percentages NPA's peaked at 5.01% of Total Loans in 1992... 6.00% mECharge-offeasa% ofLoans —#—NPA‘s asa‘% of Total Loans 5.00% 4.00% 3.00% 2.00% 1.00% 1991 1992 49959971999 201 20022008 0.00% Dime Community Bancshares, Inc. 18
Slide 19: Historical NPA Performance
Historical NPA Performance NPA's peaked at 62% of Tangible Equity also in 1992... inthousande ‘gep0.000 000% Total Loan nas to TE 0% ‘300,000 eno 2ep0.000 0% 200,000 0% mn sen0.000 pee so00.000 mn0% mow e100 6 PERCE ESSEC EPE PE At December 31, 2009 — Bank's “TEXAS” Ratio = 4.0% Dime Community Bancs
Slide 20: Funding Liabilities
Funding Liabilities December 31, 2008 December 31, 2009 Trust Trust Preferred Preferred suberdnated suberdrated Neter Neter 8 oe Deposits Deposits mBorowings mBorowings 1 Trust Preferreds / Subordinated Notes| a Trust Preferred / Subordinated Notes| 20
Slide 21: Maturing Borrowings
Maturing Borrowings December 31, 2009 - Total Borrowings = $1.24 billion’ Weighted Average Duration = 3.7 years $in thousands $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 240 2 2012 2013 2014 Bonds + Excludes $25.0 milion 926% subordinated note that matures in 2010 and $
Slide 22: Maturing CD's
Maturing CD’s CD Maturities by Quarter 2009" vs 2010" 400 2009 2010 350 g 300 i 250 = 200 4 150 * 100 50 o+ Quarter] Quarter2 Quaner3 Quarter 4 Weighted Average Duration of CD’s = 15.5 Months at December 31, 2009 Weighted Average Duration of CD’s = 9 Months at December 31, 2008 Dime Community Bancsh
Slide 23: Focus on Profitable Deposits
Focus on Profitable Deposits December 31, 2008 December 31, 2009 Total Deposits = $2.26 billion Total Deposits = $2.22 billion Oth Pr ne chee Die het a Checking % om ar Money Mit 8.5% Growth in Checking Accounts since December 2008 Dime Community Bancshares, Inc. 23
Slide 24: Dime's Deposit Share
DIME’S DEPOSIT SHARE 9 9 $943,172 2.76% $34,113,822 13 8 $816,800 1.98% $ 41,339,284 16 5 $552,692 1.02% $54,303,097 18 1 $ 68,717 0.67% $10,250,729 Data as of June 30, 2009 Source: FDIC Dime Community Bancshares, Inc. 24
Slide 25: Turnover Rate for NYC Commercial Real Estate
TURNOVER RATE for NYC Commercial Real Estate The turnaver rate for buildings—the ratio of the number of buildings sold compared to the existing stack of buildings—hit a 25-year low of 0.87% in 2009. During the previcus two recessions, the turnover rate fell only as far as 1.6%. Over the last 25 year
Slide 26: Growth Opportunities in New York
Growth Opportunities in New York RETAIL DEPOSITS 2 LARGE NEW \ B york MARKETS MULTIFAMILY HOUSING Dime Community Bancshares, Inc. 26
Slide 27: Thank you.
Thank you. < Main Office Havemeyer Street, Williamshurgh, Brooklyn Opening Ceremony > Brooklyn Heights Office on Montague Street a7