Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — IPO Roadshow (May 2022)
29 slides from Dime Community Bancshares's IPO roadshow presentation, May 3, 2022
Slide 1: Dime Community Bancshares, Inc. (NASDAQ: DCOM) May 2022
Dime Community Bancshares, Inc. (NASDAQ: DCOM) May 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by us
Slide 3: Additional Information
Additional Information 3 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 will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to re
Slide 4: Terms of Planned Offering
4 Terms of Planned Offering Active Bookrunner Passive Bookrunners Issuer (Ticker) Dime Community Bancshares, Inc. (NASDAQ: DCOM) Security Fixed-to-Float Rate Subordinated Notes due 2032 Amount $160 Million Expected Security Rating ¹ Moody’s: Baa3 with a “Stable” Outlook Kroll: BBB- with a “Positive”
Slide 5: Investment Highlights
Investment Highlights 1. Leading market share and best-in-class deposit franchise with significant scarcity value 2. Operates in an attractive, high-density market for business customers 3. Strong financial performance following completion of merger 4. Well positioned for rising rates and continued
Slide 6: History
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 after
Slide 7: Leading Market Share and Significant Scarcity Value
Leading Market Share and Significant Scarcity Value • Dime ranks #1 by deposit market share on Greater Long Island amongst community banks (1)(2) • Ubiquitous brand and coverage spanning entire footprint • Only publicly-traded community bank with over $1.0 billion of Tier 1 capital headquartered on
Slide 8: Best-in-Class Deposit Franchise
8 Best-in-Class Deposit Franchise Non - Int Bearing DDA, 38% Savings, MMDA & NOW, 54 % Time, 8% $10.5B Total Cost of Deposits: Vs “Footprint Banks” * Our goal is to operate with a DDA % > 40% Cost of Deposits: 0.11% Maspeth FSLA 0.00% 0.20% 0.40% Source: S&P Global – financial data as of most recent
Slide 9: Proven Track Record of DDA Growth
9 $1,449 $3,920 1 12/31/2016 12/31/2021 Proven Track Record of DDA Growth Noninterest Bearing Deposits ($ in millions) Our management team has a proven track record of growing DDA organically 1 Represents sum of Legacy Dime Community Bancshares, Inc. & Legacy Bridge Bancorp, Inc. on a combined basis
Slide 10: We Operate in An Attractive Market with Significant Opportunities for Market Share Gains
10 We Operate in An Attractive Market with Significant Opportunities for Market Share Gains $328 $222 $350 $300 $250 $200 $150 $100 $50 $0 • Combined population of ~ 8 million for Kings, Queens, Nassau, and Suffolk would represent the 14th largest state in the country 1 • $328 Billion of total depos
Slide 11: Our Footprint is Characterized by Above Average Wealth and Significant Business Density
$111,616 $70,412 0 20,000 40,000 60,000 80,000 100,000 120,000 Dime's Greater LI Footprint 1 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 well above national average
Slide 12: Highly Responsive Customer Focused Platform As Demonstrated by PPP Performance
Highly Responsive Customer Focused Platform As Demonstrated by PPP Performance PPP Originations • Participating in PPP was a firmwide priority in FY 2020 and FY 2021 • We were the leading provider of PPP amongst community banks in our footprint • Serviced existing relationships and generated signifi
Slide 13: Strong Financial Performance Following Completion of Merger
13 Strong Financial Performance Following Completion of Merger 1 1 The merger was completed on February 1 st , 2021 2 See Appendix for reconciliation of non-GAAP adjusted ratios - 11.6% 22.0% 16.0% 16.7% 17.5% 18.0% 14.6% 14.7% Q1-2021 Q2-2021 Q3-2021 Q4-2021 ROATCE Adusted ROATCE 3.14% 3.12% 3.20%
Slide 14: Well-Positioned for Rising Rates
14 Well-Positioned for Rising Rates Well Balanced Loan Portfolio 1 Adjustable-Rate $4.7 51% ($ billions) Variabl e- Rate $2.4 26% Fixed-Rate $2.1 23% $9.2B Total Trends in Cost of Total Deposits 0.17% 0.13% 0.11% 0.25% 0.25% 0.10% Q1 2021 Q2 2021 Q3 2021 Q4 2021 0. 1 5% 0. 2 0% 0. 3 0% Net Interest
Slide 15: Continued Opportunity to Transform Balance Sheet
15 $325 $236 $68 $72 $0 $ 5 0 $ 1 00 $ 1 50 $ 2 00 $ 2 50 $ 3 00 $ 3 50 Q1 2022 Q2 2022 Q3 2022 Q4 2022 • We continue to have opportunities to reprice our CD book lower $526 $868 12/31/16 12/31/21 C&I (% of Loans) 2 9% C&I less PPP ($ in millions) Continued Opportunity to Transform Balance Sheet • W
Slide 16: Superior Asset Quality Through Various Cycles
16 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. Cumulative NCOs from 2007 to 2013 over 2006 Gro
Slide 17: Overview of Loan Portfolio
Overview of Loan Portfolio NPAs and 90 Days Past Due / Total Assets 0.34% 0.28% 0.33% 0.36% 0.00% 0.25% One-to-four family and coop/condo $669 52% 0.75% Multifamily and residential mixed-use 3 , 356 54% Commercial mixed-use 290 41% 0.50% 1.00% Q1 2021 Q2 2021 Q3 2021 Q4 2021 NCOs / Average Loans 0.1
Slide 18: Skilled Acquiror with Significant M&A Experience
Skilled Acquiror with Significant M&A Experience Avi Reddy CFO (Former M&A banker at Evercore, Barclays and Lehman Brothers) Kevin O'Connor CEO (Part of numerous M&A transactions at North Fork) Stuart Lubow President & COO (Sale of Community National, Garden State, Community State) 18 x Closed merge
Slide 19: Strong Corporate Governance
Strong Corporate Governance 19 x Significant Insider Ownership (15% 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 x Lead Director is Independent
Slide 20: Recent Developments: First Quarter 2022 Results
Recent Developments: First Quarter 2022 Results • Net income to common stockholders of $32.7 million or $0.82 per diluted common share • Non-interest bearing deposits to total deposits ratio increased to 37.9% at March 31, 2022 • The cost of deposits declined to 10 basis points during the first quar
Slide 21: Appendix
Appendix 21
Slide 22: Current Outstanding Subordinated Debt Schedule
Current Outstanding Subordinated Debt Schedule 22 Term / Structure Maturity Call Date Amount ($000) Front -E nd Coupon Bac k - E nd Coupon Current Coupon 10yr NC 5 9/30/2025 9/30/2020 $40,000 5.25% 3mL + 360bps 4.74% 10yr NC 5 6/15/2027 6/15/2022 $115,000 4.50% 3mL + 266bps 4.50% 15yr NC 10 9/30/203
Slide 23: Double Leverage & Interest Coverage
Double Leverage & Interest Coverage Note: Assumes a $160 million gross offering, a 4.75% coupon, a gross spread of 1.25%, and other expenses of $433,250 Source: S&P Capital IQ Pro, Company filings Offering Assumptions Debt Refinancing Assumptions Gross Proceeds ($000): Coupon: Gross Spread: Other Ex
Slide 24: Strong Capital Ratios
Strong Capital Ratios Note: Pro forma assumes a $160 million gross offering, a gross spread of 1.25%, risk-weighting on new assets of 20%, and other expenses of $433,250 Source: S&P Capital IQ Pro, Company filings 8 .4 6% 9 . 49% 1 0. 6 9 % 1 3 .4 5% 8 . 35% 9. 4 6 % 1 0 .6 5% 15 . 05% 8. 4 5 % 9 .4
Slide 25: Sources of Holding Company and Bank Liquidity
Sources of Holding Company and Bank Liquidity 25 • Cash at the Holding Company was approximately $27.4 million as of December 31, 2021 • Dime Community Bancshares, Inc.’s principal source of funds to service debt is cash dividends from Dime Community Bank • As of December 31, 2021 the dividend capac
Slide 26: Return on Avg. Assets & Return on Avg. Tangible Common Equity
26 Return on Avg. Assets & Return on Avg. Tangible Common Equity 1 Adjustments to net income are taxed at the Company's statutory tax rate of approximately 31% unless otherwise noted. 2 Certain merger expenses and transaction costs are non-taxable expense. Return on Average Assets - as reported 1 .
Slide 27: Pre-Tax Pre-Provision Net Revenue / Average Assets
27 Pre-Tax Pre-Provision Net Revenue / Average Assets 1 The reported pre-tax pre-provision net revenue is a non-GAAP measure calculated by adding GAAP net interest income and GAAP non-interest income/(loss) less GAAP non-interest expense. 2 The adjusted pre-tax pre-provision net revenue is a non-GAA
Slide 28: Net Interest Margin
28 Net Interest Margin (1) NIM represents net interest income as reported divided by average interest-earning assets as reported. (2) Adjusted NIM excluding PPP and PAA represents adjusted net interest income excluding PPP loans and purchase accounting accretion, divided by adjusted average interest
Slide 29: Efficiency Ratio & Operating Expense to Average Assets
29 Efficiency Ratio & Operating Expense to Average Assets 1 The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest (loss) income. 2 The adjusted efficiency ratio is a non-GAAP measure calculate