Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — Institutions Investor Conference 2011
36 slides from Dime Community Bancshares's conference presentation, Feb 18, 2011
Slide 1: Dime Community Bancshares Institutions Investor Conference
[E Community Mim Bancshares, Inc. SENTATION ITUTIONS STOR CONFERENCE RY 1 011 es, Inc. Nasdaq: DCOM
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements contained inthis presentation that are net statements of historical fact constitute fonvardooking statements within the meaning of the Private Seourties Litigation Reform Act of 1096 (he "Aat), nobuthstanding that such statements are not=peotically Wentfe
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 Savi
Slide 4: Experienced Operators
Experienced Operators 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, 40 years with Dime « Michael Devine, PresidentiCOO, 39 year
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 992,104* 29% Michael P. Devine - President and Chief Operating Officer 656,542* 19% Kenneth J. Mahon - Firs
Slide 6: Prudent Branch Expansion
Prudent Branch Expansion Strategically located De novo branches deepen he Dime footprint. Opened in September 2010 / @ i. = Opened inJune2010 |__ to open in mid 2011 25 Branch locations currently open. 2°! Bay Ridge Branch |_——______ Average size of branches that have been open over 1 year = $99 mil
Slide 7: Balance Sheet Review
Balance Sheet Review As ofor for the Three Months Ended December 31, 2010 2009 change Total Assets $4,040,295 $3,952,274 $88,021 2.2% increase Total Loans 3,473,492 3,395,675 $7,817 2.3%increase Total Deposits 2,350,581 2,216,836 $133,745 57 %inerease Consolidated Tangible Equity 279,219 243,938 © $
Slide 8: Balance Sheet Composition
Balance Sheet Composition Loans comprise 86% of assets; 148% Loan fo Deposit Ratio Assets se ? Liabilities and Equity cay otter AL Other hveskmenis edmert! cay Se oe Oe ese oe mCashishortteminvestments 2% WvestnentsMBS 6% ea orrowings 31% Loans 86% 5. quity 8% All Other 6% See a Dime Community Bancs
Slide 9: Financial Performance Review
Financial Performance Review Three Months Ended December 31, 2010 Core Earnings Per Share $0.33 Net Interest Margin 3.71% Core Return on Average Tangible Equity 13.3% Core Return on Average Assets 1.11% Efficiency ratio 41.9% a 8 Ww N > Dime Community Bancshares, Inc.
Slide 10: 2010 P&L Line Items
2010 P&L Line Items 2010 REPORTED EPS = $1.24 1. OTTI credit charges of $7.9 million (4 cents per share} 2. Loan credit costs of $11.2 million (20 cents per share) Dime Community Bancshares, Inc. 10
Slide 11: New York City
New York City Types of Housing* Renter. miltchall: ‘to 4F amily Occupied = 24% 64% Co-op B% Condo, 2% * Housing stock equals 3,328,648 units. Dime Community Bancshares, Inc. Source: 2008 New York City Housing and Vacancy Simvey and cana date "1
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition At December 31, 2010 Construction Traditional % ‘Ito 4 Family cr Dime Community Bancshares, Inc.
Slide 13: Real Estate Loan Portfolio Composition
Real Estate Loan Portfolio Composition Traditional 1te 4 Family / COOP Unit [Primary Residence sa7.aze.oo| 51% NA 3.4% MukiF amily Residential 7428, s00,000| 60% rd Per Multifamily Mixed Use Portioio [MuliFamit (Commercial Rens €50%6 ese.s71.s00| 68% 49 24.1% [Mixed Use (Commercial Rents > 6016 305,
Slide 14: Loan Originations
Loan Originations EETotal Originations © —e=averaye Loan Origination Rate Averaue 5.Vear Treasury Rate 31,2000 7.00% o 1,000.0 6.00% 5.00% 3800.0 4.00% 36000 3.00% $400.0 2.00% $2000 00g 00 0.00% 2007 2008 § in mitions 2009 2010 Dime Community Bancshares, Inc. 14
Slide 15: Debt Service & Loan-to-Value Ratios on New Loans
Debt Service & Loan-to-Value Ratios on New Loans $inmillions Weighted average consistently below 70% 1,200.0 $1,086.7 1,000.0 Average: psp = 1.47 800.0 LIv=59% $600.0 S575 sang Average: $400.0 Average: REELS psp = 1.96 DsR=204 $200.0 Ltv= 52% EN ss x00 2007 2008 2008 2010 Dime Community Bancshares,
Slide 16: Repricing Loans
Repricing Loans $3500" 26% of the Loan Portfolio reprices within the next 24 months $3,000 mmm Annual Repricings $2,500 — Cumulative Reprievags $2,000 $1,500 $1,000 $944.0 $538.1 $5810 84515-94233 ssap , $135.0 $1617 $o = 2011 2012 2013-2014 2015 «2016» 2017-2018 Beyond 2018 Dime Community Bancshare
Slide 17: Low Level of Non-Performing Assets
Low Level of Non-Performing Assets Dime is an industry leader in loan quality, with a low level of non-performing assets.... Non-performing assets as % of Loans + ORE mDCOM Clndustry Median industry Aver: Sep-2010 Dime Community Bancshares, Inc. Source: SNL Thi Investor @ Quarter 2010) 7
Slide 18: Funding Liabilities
Funding Liabilities December 31, 2009 Trust Preferred Deposits Borrowings, Trust Preferreds / Subordinated Notes, Dime Community Bancshares, Inc. December 31, 2010 Trust refered ae Deposits mBorrowings, a Twust Preferred, 18
Slide 19: Maturing Borrowings
Maturing Borrowings December 31, 2010 - Total Borrowings = $1.19 billion’ Weighted Average Duration = 3.5 years Sinthousands $350,000 $300,000 $250,000 $200,000 $150,000 $100,900 $50,000 ait 2012 2013 2014 2015 Bayona * Excludes $68.5 milion 7% tst preferred borrowing that matures in 2084, 19
Slide 20: CD Maturities - Upcoming Quarters
CD Maturities -Upcoming 4 Qtrs $ in millions $250.0 December 31, 2010 $200.0 $150.0 $100.0 $50.0 $- Qi Q2 a Qa Weighted Average Duration of all CD’s = 15.7 Months at December 31, 2010 Wi ited Average Duration of all CD’s 5 Months at December 3 Dime Community Bancshares, Inc. 20
Slide 21: Focus on Profitable Deposits
Focus on Profitable Deposits December 31, 2009 December 31, 2010 Total Deposits = $2.22 billion Total Deposits = $2.35 billion Prime tne Pr ny Oe checking ie Checking 6% ‘as 4 13.0% Growth in Checking Accounts since December 2009 Dime Community Bancshares, Inc. Di 21
Slide 22: Dime's Deposit Share
DIME’S DEPOSIT SHARE 9 9 $930,790 2.70% $34,475,800 13 8 $828,698 2.00% $41,386,700 15 7 $611,552 112% $64,496,200 18 1 $68,775 067% $10,219,100 Data as of June 30, 2010 Source: FDIC Dime Community Bancshares, Inc. 22
Slide 23: Turnover Rate for NYC Commercial Real Estate
TURNOVER RATE for NYC Commercial Real Estate The turaver 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 years
Slide 24: EPS Composition
EPS Composition $067 $0.94 $7.21 $1.48 $per Share 2006 2007 2008 2009 Year DReported EPS MOTT! mProvisions ano
Slide 25: From Crain's NY Business...
From Crain’s NY Business... According to real estate firm Massey Knakal Realty Services, total New York City real estate dollar volume was $14 5 billion in 2012, compared to $6.3 billion in 2009 While a strong rebound, activity remains well below the peak of $62 billion in 2007 The market is expecte
Slide 26: Dime's CRA Assessment Area: Multifamily Originations
Dime’s CRA Assessment Area: Multifamily Originations ONLY 2007 § 9.034 billionactual 2008 $ 11.298 ‘urna: Atun Dnt: Harm Mortgage are Astra, 207,208, 20H
Slide 27: 2007 HMDA Data on NYC Bank Lending
2007 HMDA Data on NYC Bank Lending... Tela Dollar free 2007 Wes Arnri loansze Fark rebiution Hare Gr # ($0009 = Masmes $00 “WASHINGTON MUTUAL BANK 91 231% 1,821,083 180% 1,638 2 SOVIREGN BANK aod 71% «= S7BE7D «108% 3213 3 GERMAN AMERCAN CAPITAL OORP St 12% © 905002 100% 17,745 4 DEUTSCHE BANC MORTG
Slide 28: Top Twenty NYC Multifamily Lenders in 2007
Top Twenty NYC Multifamily Lenders in 2007... 2007 (ranked by market share$) 1 WASHINGTON MUTUAL BANK 2 SOVEREGN BANK 3 GERMAN AMERCAN CAFITAL CORP 4 DEUTSCHE BANC MORTGAGE CARTTAL 5 NEW YORK COMMUNITY BANK. 6 WACHOVIA BANK NA 7 NATIONAL COOP BANK, FEB, @ DIVE SAVINGS BANK of WvisEG. 9 CTEANK,NA 10
Slide 29: Ten Lenders Remaining by 2008
Ten Lenders remaining by 2008... 2008 (ranked by market share$) 3 SOVEREGN BANK 2. NEW YORXCOMMUNITY BANK. 6 WACHOVIA BANK NA 8 NATIONAL COOP BANK FSB 4 DIVE SAVINGSBANK of WVIS8G 9 CTBANK,NA. 7 ASTORA FEDERAL SAVINGS & LOAN 11 RUSHING SAVINGS BANK FSB, 10 CARTALONENA 13 HSBC BANK USA, NA,
Slide 30: Seven Lenders Remaining by 2009
Seven lenders remaining by 2009...Dime ranked #2 2008 (ranked by market share $) 5 SOVEREGN BANK 1. NEW YORK COMMUNITY BANK 8 NATIONAL COOP BANK FSB 2 DIVE SAVINGS BANK of WVIS8G 4 FIUSHING SAVINGS BANK FSB, 11 CARITALONENA 20 HEEC BANKUSA, NA
Slide 31: A Crowded Field for New York City Multifamily Properties
...A crowded field for New York City multifamily properties... soe r erin. DIME Since 1864 INVESTORS Te Samily, -
Slide 32: Loan Spreads at Cyclical Highs
..loan spreads for our core product are at cyclical highs even though coupon rates are at cyclical lows... Historical CRE Loan Spreads ‘Weighted average coupons today approximate 4.75% for 5/5 year “typical Dime loans” Loan Spreads Le af A Curve represents the Weighted Average Loan Coupon for the qu
Slide 33: Cost of Funds Has Nowhere to Go but Up
...which can only mean that “cost of funds” has no where to go but up... ‘Weighted average coupons today approximate 4.75% for 5/5 year “typical Dime loans” Historical CRE Luan Spreads vs. Cost of Funds r es 1 (CRE chove represents de Weighted Average Loan Coupon fir the qarey, less che comparable t
Slide 34: So What Is the Investment Thesis?
...50 what is the investment thesis? -Expect short-term interest rates to stay low until unemployment drops to around 7%. Inthe meantime, anticipate a very good level of spread earnings. » More than ever, banks are looking like regulated utilities: look for certainty of dividends, predictable stream
Slide 35: Peer Group Total Returns
Peer Group Total Returns (through Nov 2010) ane [ nition Tebierunsetty | ane | writen Tebiertmsetny | mane | nition Te ae 4 [ NY Community ease |_1 | Signature Bank e248 | 41 | Fist Niagara Financial er 2 | Stering Bancorp aaa7 | 2 | New Yok commun aac | 2 | New You Community 20185 3 | Signature Ban
Slide 36: Thank you.
Thank you. < Main Office Ganden Gity Park Branch > Opened September 2010 Havemeyer Street, Wilfiamsiurgh, Brooklyn 36
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