Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — KBW 16th Annual Community Bank Investor Conference 2016
32 slides from Dime Community Bancshares's conference presentation, Aug 3, 2016
Slide 1: Lending for the Way New Yorkers Live - Investor Presentation
“Lending for the Way New Yorkers Live” INVESTOR PRESENTATIONKBW 16th Annual Community Bank Investor ConferenceAugust 2016
Slide 2: Forward-looking Statements
Forward-looking StatementsThis 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 use o
Slide 3: About Dime
about… DIMENEW YORK CITY’S PREMIER COMMUNITY BANK MULTIFAMILY LENDER SINCE 1965 Dime Community Bancshares, Inc., is the holding company for Dime Community Bank, a $5.56 billion dollar institutionCommunity retail bank model with an emphasis on New York City Multifamily LendingLow credit risk model wi
Slide 4: Branch Network
Branch Network 4 25 Branches in New York City metropolitan areaAverage branch size = $151.2 million as of June 30, 2016 (1) Data as of June 30, 2015 Source: FDIC(2) As of June 30, 2016 City / County 2015 Market Share Rank (1) Number of Dime Branches (2) Deposits in Market ($mm) Total Market Share (%
Slide 5: Key Officers & Directors
Key Officers & Directors 5 Amounts per page 4 of the Company’s proxy statement dated April 12, 2016. Name Title Tenure Inside Ownership* EXECUTIVE OFFICERS and DIRECTORS: Vincent F. Palagiano Chairman & CEO 46 years 2.3% (863,872 shares) Kenneth J. Mahon President & COO 36 years 1.0% (380,665 shares
Slide 6: Initiatives: Investing in the Business
Initiatives: Investing in the Business 6 Plans for three new Brooklyn branches to open by Fall 2016Including 2 new branches in Williamsburg and 1 in Park SlopeBusiness banking outreach to commercial borrowers to grow business depositsDevelopment of Outreach Programs to small- and micro- business cus
Slide 7: Initiatives: Investing in the Business
Initiatives: Investing in the Business 7 Investments in technology and staffing; major focus on e-banking, internet and cybersecurityMobile banking for consumers and small businessDevelopment of the internet banking channel to grow deposits more efficiently and rapidly than brick-and-mortarCost-cutt
Slide 8: Another Year of Top Performance
Another Year of Top Performance BankDirector: DIME RANKS # 39 in $1 to $5 billion asset group“The 200 largest U.S. banks are stronger and more profitable than at any time since the Great Recession.” SNLThrift Investor:DIME RANKS # 5 of 100For the eighth straight year, Dime ranks fifth or higher in S
Slide 9: Investor Highlights
Focus on GrowthStrong Multifamily ExpertiseLow Cost OperatorShareholder ValueRisk Management Investor Highlights 9
Slide 10: 3 to 5 Year Goals: Focus on Asset Growth
Tangible Common Equity / Tangible Assets (%) Grow assets 15% on average over the next 3 years (goal of 15%-18% growth for 2016)Decrease the loan to deposit ratioRemain focused on NYC commercial real estate lendingMaintain tangible common equity sufficient to support growthRaise additional capital fr
Slide 11: Loan and Deposit Growth
Loan and Deposit Growth 11 Loan CAGR: 10%Deposit CAGR: 11%
Slide 12: Deposit Growth Initiatives
12 Deposit Growth Initiatives Increase Percentage of Commercial and Small Business Deposits 2015 - 2017 Deposit Change from 2015 - 2016 Category June 2015 Avg. Cost June 2016 Avg. Cost % Growth CRE deposits 156,036 0.12% 235,484 0.17% 51% Business Deposits 38,503 0.17% 70,450 0.41% 83% Branch Consum
Slide 13: Investor Highlights
Focus on GrowthStrong Multifamily ExpertiseLow Cost OperatorShareholder ValueRisk Management Investor Highlights 13
Slide 14: Loan Portfolio Geographic Distribution
MANHATTAN Loan Portfolio Geographic Distribution BROOKLYN 14
Slide 15: New York City Housing Stock
New York City Housing Stock 15 Source: 2014 New York City Housing and Vacancy Survey and census data. Total housing stock equals 3,217,521 units1 New York City is a city of apartment dwellers, and even more so a city of renters. About 2/3rds of New York City’s housing stock is classified as renter-o
Slide 16: Real Estate Loan Portfolio
Balance % of Total Current LTV Pure multi-family 2,658,418 51% 53% Residential mixed use 1,547,981 30% 56% Pure commercial 517,938 10% 51% Commercial mixed use 393,112 8% 50% 1-4 family / Co-ops 67,697 1% 50% HELOC / Home Improvement 13,647 0% N/A 16 Real Estate Loan Portfolio 16 Pure Multifamily Re
Slide 17: Forward-looking statements (Form 10-Q)
Certain statements contained in this quarterly report on Form 10-Q that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identi
Slide 18: CRE Portfolio concentrated in NYC multifamily
DIME CRE Portfolio concentrated in NYC multifamily residential properties Other Includes:StorageLandReligiousMixed UseResi. Construction *Source: (1) 1st Annual ABA Commercial Real Estate Survey Report April 2016; 136 Survey Participants (77% banks 23% savings institutions); 61% assets under 1 billi
Slide 19: Repricing Real Estate Loans
Repricing Real Estate Loans 19 ©1999-2008 Annual Repricings ($ in millions) Frequent repricingEarly prepayments add an element of revenue to the P&L Cumulative Repricings ($ in millions)
Slide 20: Real Estate Loan Originations
Real Estate Loan Originations 20 Originations in ($ millions) Refinancings of Existing Dime Loans ($ millions) Year-end except for 2016, which represents June 30Totals include (1) 2014 loan re-purchase from Fannie Mae ($200m), (2) 2015 loan participation purchase of $99m, and (3) 2016 loan participa
Slide 21: Debt Service & Loan-to-Value Ratios on New Loans
Debt Service & Loan-to-Value Ratios on New Loans 21 ©1999-2008 Loan originations ($ millions) Weighted average LTV consistently at or below 65% Average:DSR = 2.11LTV = 58% Average:DSR = 1.85LTV = 59% Average:DSR = 1.52LTV = 65% Average:DSR = 1.53LTV = 63% Average:DSR = 1.47LTV = 59% Average:DSR = 1.
Slide 22: Investor Highlights
Focus on GrowthStrong Multifamily ExpertiseLow Cost OperatorShareholder ValueRisk Management Investor Highlights 22
Slide 23: Low Cost Operator Relative to Peers
Source: SNL Financial; peer group includes AF, FNFG, FFIC, ISBC, KRNY, ORIT, NFBK, OCFC, PFS, SNBC, STL, SBNY, VLY2016 represents June 30, 2016 for DCOM, FFIC, SNBC, STL, VLY, SBNY, NYCB, AF, and ISBC. All other peers reflect March 31, 2016 Efficiency Ratio (%) Net Operating Expense / Avg. Assets (%
Slide 24: Investor Highlights
Focus on GrowthStrong Multifamily ExpertiseLow Cost OperatorShareholder ValueRisk Management Investor Highlights 24
Slide 25: Creating Shareholder Value
CAGR: 11% Creating Shareholder Value 25
Slide 26: Investor Highlights
Focus on GrowthStrong Multifamily ExpertiseLow Cost OperatorShareholder ValueRisk Management Investor Highlights 26
Slide 27: 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)
Slide 28: Credit Risk Management
Credit Risk Management Dime has a long, successful history of managing its highly concentrated “CRE” portfolio, mainly because multifamily loans are residential housing loansDime has historically been one of the leading lenders in the small (10 – 75 unit) rent-regulated multifamily housing market in
Slide 29: Credit Metrics since the onset of the financial crisis
Credit Metrics since the onset of the financial crisis 29 $ thousands 2010 2011 2012 2013 2014 2015 2016 Q2 Total Loans 3,468,479 3,458,416 3,506,368 3,699,519 4,119,240 4,696,776 5,209,117 Non-Performing Loans 20,168 28,973 8,888 12,549 6,198 1,611 4,329 NPLs to Total Loans 0.58% 0.84% 0.25% 0.34%
Slide 30: Credit Metrics vs Peer Group
Credit Metrics vs Peer Group Dime’s conservative underwriting has resulted in consistent out-performance of its peers in credit loss experience 30 Source: SNL Financial; peer group includes xxxxxx2016 represents June 30, 2016 for DCOM, FFIC, SNBC, STL, VLY, SBNY, NYCB, AF, and ISBC. All other peers
Slide 31: Interest Rate Risk Management
$469 million of CD’s with maturities beyond 2017 Maturity in Year Ending Dec. 31st (1) As of June 30, 2016. Dollars in thousands. Borrowings exclude trust preferred corporate debt. Interest Rate Risk Management $419 million of borrowings with maturities beyond 2017 $ in Thousands 31 CD Maturities by
Slide 32: Liquidity Risk Management
Liquidity Risk Management ** Excludes holding company trust preferred debt.As of June 30; Dollars in thousands. 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 acceler
Dime Community Bancshares — KBW 16th Annual Community Bank Investor Conference 2016 on 6ix