Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — IPO Roadshow (June 2017)
28 slides from Dime Community Bancshares's IPO roadshow presentation, Jun 8, 2017
Slide 1: Subordinated Notes Offering
Subordinated Notes OfferingJune 2017 DIME COMMUNITY BANCSHARES, INC(NASDAQ: DCOM) Forward-Looking Statements This presentation has been prepared by Dime Community Bancshares, Inc. (“Dime Community” or the “Company”) solely for informational purposes based on its own information, as well as informati
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation has been prepared by Dime Community Bancshares, Inc. (“Dime Community” or the “Company”) solely for informational purposes based on its own information, as well as information from public sources. This presentation has been prepared to assist interested p
Slide 3: Terms of proposed offering
Terms of proposed offering Issuer: Dime Community Bancshares, Inc. (NASDAQ: DCOM) Security Type: Fixed-to-Floating Rate Subordinated Notes due June 2027 Rating: BBB- by Fitch Ratings, Inc. Coupon: To be determined Term: 10 Years (Non-Call 5 Years) Redemption: At the Company’s option beginning in 202
Slide 4: Corporate profile
Corporate profile Founded as The Dime Savings Bank of Williamsburgh in 1864; converted to public ownership in 1996Changed name to “Dime Community Bank”, effective August 201627 branches in Brooklyn, Queens, Nassau and BronxHistorically, Dime has specialized in lending against New York City multifami
Slide 5: Management team
Management team Name / Title Background Kenneth J. Mahon – President & CEO Appointed President & CEO of the Company and the Bank in January 2017Joined the Bank in 1980; Director of the Bank since 1998; Director of the Company since 2002Previously served as the Bank’s SVP & Comptroller, and the Compa
Slide 6: Strength in attractive markets
E IN ATTRACTIVE MARKETS Dime is Brooklyn’s pre-eminent community bank Brooklyn is the 24 most densely populated county in the country (after Manhattan) Brooklyn is also one of the fastest growing population centers for millennials Dime is the only community bank with ~ $1 billion of deposits in all
Slide 7: Significant Progress Made over the Last Year
Please reference slide 25 for the Non-GAAP Reconciliation Significant Progress Made over the Last Year Dime management team has been significantly bolsteredNew leadership in Business Banking, Chief Administrative Officer, Head of Human Resources, Corporate Development/Treasurer, Head of Public Discl
Slide 8: Business Banking Division Gaining Traction
Business Banking Division Gaining Traction In January 2017, Dime hired proven bank executive Stu Lubow to spearhead Business BankingOpportunistic hire capitalizing on local M&A (Community National sale to Bridge Bancorp)Dime effectively created a new business line without putting on any goodwill/int
Slide 9: Low Cost Operator Relative to Peers
Low Cost Operator Relative to Peers Adjusted Noninterest Expenses / Average Assets² Adjusted Efficiency Ratio² Peers include: Bridge, ConnectOne, First of Long Island, Flushing, Lakeland, New York Community, OceanFirst, Peapack, and Provident. Data in the charts represent median values; Source SNL F
Slide 10: Organic growth: assets and capital
ORGANIC growth: assets and capital Total Assets Tangible Stockholders’ Equity¹ Tangible Book Value Per Share¹ CAGR = 11.0% CAGR = 10.3% CAGR = 8.9% Gross Loans CAGR = 12.4% Please reference slide 26 for the Non-GAAP Reconciliation
Slide 11: Organic growth: deposits
ORGANIC growth: DEPOSITS Core Deposits¹ Loans / Deposits CAGR = 20.8% Total Deposits CAGR = 15.1% Please reference slide 26 for the Non-GAAP Reconciliation
Slide 12: Loan portfolio
Loan portfolio Dime’s primary lending area is the New York City metropolitan area93% of mortgage loans secured by real estate in Dime’s primary lending areaHistorical weighted average loan-to-value ratios on new loans consistently at or below 60%Dime’s real estate loan collateral: Approximately 60%
Slide 13: CRE Loans / Total Risk Based Capital
CRE Loans/Total Risj Based Capital In recognition of the prevailing regulatory environment, Dime enhanced its CRE underwriting criteria and built out a strong credit administration and portfolio monitoring function81% of Dime’s current CRE collateral consists of New York City residential multifamily
Slide 14: Risk management
RISK MANAGEMENT In 2008, Dime created the position of CHIEF RISK OFFICER, encompassing the fields of: Enterprise Risk, Credit Administration, Compliance, Audit, and Cybersecurity RiskCredit: Concentration in low-risk NYC multifamily marketInterest Rate: Nature of loans is short-term (5- and 7-year)L
Slide 15: Asset quality ratios
Asset quality ratios Texas Ratio defined as nonperforming assets and loans 90+ days past due divided by tangible common equity and loan loss reserves; Please reference slide 26 for the Non-GAAP Reconciliation
Slide 16: Deposit profile
Deposit profile Dime gathers deposits primarily from the communities and neighborhoods in close proximity to its branches, and via the internetStrong deposit growth across all categories has helped reduce Dime’s Loans / Deposits ratio from 147% at March 31, 2016 to 128% at March 31, 2017DimeDirect,
Slide 17: Interest Rate Risk Management
Interest Rate Risk Management As of March 31, 2017. Dollars in thousands. Borrowings exclude trust preferred debt $292 million of CDs with maturities beyond 2018 $374 million of borrowings with maturities beyond 2018
Slide 18: Liquidity Risk Management
Liquidity Risk Management More than sufficient borrowing capacity to meet liquidity demandsAmple access to deposit funding in either the local retail marketplace or via internetSufficient capital to support deposit growth/ borrowings should funding needs warrant Excludes holding company trust prefer
Slide 19: Holding Company Capital overview
Holding Company Capital overview Please reference slide 26 for the Non-GAAP Reconciliation; TCE calculation does not add back unrealized gains / (losses), AOCI and servicing assets (10%)Note: Assumes the repayment of $70.7 million of outstanding trust preferred securities (can be repaid as early as
Slide 20: Earnings to Fixed Charges ratio
Earnings to Fixed Charges ratio Note: Assumes the repayment of outstanding trust preferred securities (can be repaid as early as July 15th), a $100 million subordinated debt raise, a 1.00% underwriting spread and $20 million of the offering downstreamed to the bank level
Slide 21: Holding company liquidity
Holding company liquidity Dime Community Bancshares, Inc.’s main source of liquidity is dividends from its subsidiary, Dime Community BankBank dividend capacity of $100.8 million as of March 31, 2017Status quo cash at the holding company is approximately $50 million as of March 31, 2017The Company c
Slide 22: Strategic objectives
Strategic objectives C&I and directly-sourced CRE loans to constitute a larger portion of the loan portfolioTake advantage of disruptions in the local marketplace by hiring high quality relationship lendersIncrease lower cost commercial depositsLeverage the unique brand recognition we have by pivoti
Slide 23: Investment Highlights
Investment Highlights Strong presence in attractive marketsKey investments have already been made to improve franchise and diversify balance sheetNewly launched Business Banking division gaining significant tractionDeposit franchise has been growing robustly across credit cyclesLow risk loan portfol
Slide 24: Appendix
Appendix
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation Average Tangible Stockholders’ Equity is a monthly average taken over the trailing 13 months
Slide 26: Non-GAAP Reconciliation (Continued)
Non-GAAP Reconciliation (Continued)
Slide 27: Repricing Loans
Repricing Loans Migration of Repricing Loans by Year as of March 31, 2017 ($ in thousands)
Slide 28: Rankings from SNL Financial
Rankings from SNL Financial Source: SNL Financial: “The best of the biggest public thrifts”. Table above only shows the top 30 companies in the rankings. Score based on a scale of -200 to 200. Analysis limited to the 50 largest thrifts by total assets at December 31st 2016, trading on the Nasdaq, NY