Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — 2015 Sterne Agee Financial Institutions Investor Conference
32 slides from Dime Community Bancshares's conference presentation, Feb 12, 2015
Slide 1: Investor Presentation – Sterne Agee Financial Institutions Investor Conference
INVESTOR PRESENTATION 2015 STERNE AGEE FINANCIAL INSTITUTIONS INVESTOR CONFERENCE FEBRUARY 11-13, 2015
Slide 2: About Dime
about... DIME * Dime Community Bancshares, Inc., is the holding company for The Dime Savings Bank of Williamsburgh, a $4.50 billion dollar institution. ¢ Low credit risk model with consistently strong returns. * Community retail bank model with an emphasis on NEW YORK CITY MULTIFAMILY LENDING. * Twe
Slide 3: Officers & Directors
Officer & Directors TIME TENURE INSIDER OWNERSHIP* Vincent. Palagiano Chairman of the Board & CEO 44 years 3.0% (1,083,392 shares) Michael P. Devine Vice Chairman of the Board & President 43 years 1.8% (676,435) kenneth J. Mahon Senior Executive Vice President & COO B4years 1.1% (407,406 shares) All
Slide 4: A low-risk business model with conservative management, and the value of the New York City market
DIME: A low-risk business model with conservative management, and the value of the New York City Market Lending model based on very low risk class of Commercial Real Estate: NYC multifamily apartment buildings, including a i int component of rent-regulated buildings in a large, vibrant and growing m
Slide 5: Peer Statistics
PEER STATISTICS
Slide 6: Peer Group Comparison
Dime Community Bancshares, Inc. PEER GROUP COMPARISON ROAALTM (%) 1.03 0.75 0.61 ROAE LTM (%) 9.83 6.32 484 ROATE LTM (%) 11.12 731 5.17 Efficiency Ratio LTM (%) 96.28 59.13 64.03 Net Interest Margin LTM(%) 3.03 3.19 3.10 Loans / Deposits (%) (as of December 31, 2014) 154.87 103.36 103.61 Asset Qual
Slide 7: Trends
TRENDS Dime Community Bancshares, Inc.
Slide 8: Market Metrics and Capital Ratios
Market Metrics and Capital Ratios 201404 DCOM Price Per Share() $16.28 Earnings Per Share-LTM. Price/Earnings Multiple Tangible BV Per Share Price/Tangible Book Value 196% 145% (at end of period Capital Ratios Holding Company Bank Subsidiary TIER 1 CORE CAPITAL (LEVERAGE) 9.29% 9.20% TIER 1 RISK BAS
Slide 9: Key Financial Metrics - Year Trendline
Key Financial Metrics - 10 Year Trendline ‘tor for the Year Ended December 31, zoos | 205 | 2065 | 2007 | 2008 | 209 | 20 | mu | a2 | 23 201M ($in thousands) Earnings Per Share $127 $1.01 $0.87 $067 085 0.79 $124 $140 $117 $1.24 $1.23 IDCOM Share Price $791 $14.61 $1401 $1277 «$13.30 $1173. $14.90 $
Slide 10: Credit Metrics — Year Trendline
Credit Metrics — 6 year trendline ($ inthousands) Total Loans $3,288,218 $3,391,658 $3,468,479 $3,458,416 $3,506,368 $3,699,519 $4,119,240 Non-Performing Loans $7,402 $11,294 $20,168 $28,973 $98,888 $12,549 $6,198 NPLs to Total Loans 0.22% 0.33% 0.58% 0.84% 0.25% 0.34% 0.15% Net Charge Offs (Recover
Slide 11: Credit Metrics vs Peer Group
Credit Metrics vs Peer Group CHARGE OFF HISTORY 2009 — 201403 == DIME PEERS 159% (% of Average Total Loans) 0.28% 2009 2010 2011 2012 2013 2014.Q3 e Dime Community Bancshares, Inc. DIME For purposesofthischar,, Dime Community Bancshares, In.'spaergroupconsistsofthefollawing: Astoria Financial Corpor
Slide 12: Loan Portfolio
LOAN PORTFOLIO
Slide 13: Balance Sheet Composition
Balance Sheet Composition Loans comprise 91% of assets; 155% Loan to Deposit Ratio Assets Liabilities and Equity All Other, 34% Investments! MBS, 1% All other, 6% Borrowings, 28% Dime Community Bancshares, Inc. Note: as of December 31, 2014 13
Slide 14: Lending for the Way New Yorkers Live
“Lending for the Way New Yorkers Live” New York City Housing Stock* Co-op, 10% Condo, 4% L- * Total housing stock equals 3,187,575 units. Dime Community Bancshares, Inc. As shown in the adjacent chart, New York City is a city of apartment dwellers. Only 18% of the City's housing stock is classified
Slide 15: CRE Concentration
CRE Concentration + The Interagency Guidance CRE CONCENTRATION to TOTAL RISK-BASED CAPITAL of October 2009 defined ‘Commercial Real Estate” as including multifamily housing 1200% 1000% + Asaresult, Dime was identified as having a “high concentration” of CRE, a 800% red flag for the regulators. + How
Slide 16: Real Estate Loan Portfolio
Real Estate Loan Portfolio current Amount rentLTV DSR ($ in Thousands) 6a% |$ 263,508 19% N/A 100% Comme rial, ana Bl 49% N/A soa Comme ial wi some. 44.5% 3,830,47| 53% 24 residential .0% 100% mutta, 4s 29.3% 2,206,066 | 56% 22 Mutamly wl some 8.0% 328,667] 50% 22 Pure Commeriall, 10.1% 415193] 50%
Slide 17: Loan Portfolio Geographic Distribution
LOAN PORTFOLIO GEOGRAPHIC DISTRIBUTION New York County $1,793,521 48% Kings County $1,074,469 26% ne Yer county Queens County $676,323 17% a Bronx County $172,077 4% eons Soul Westchester County $130,974 3% ‘nBrom County Other NY Counties $168,275 4% Stickies, New Jersey $73,131 2% other WY Counties
Slide 18: Real Estate Loan Originations
$1,400.0 $1,200.0 $1,000.0 $800.0 $600.0 $400.0 $200.0 $0.0 Real Estate Loan Originations —Average Loan Origination Rate Average 5-Year Treasury Rate 7.00% sand 6.00% $1,099,764 973.1 4 j | 5.00% $1,086.7 + 4.00% | 3.00% | 2.00% | 1.00% _ Lt | | a ee ee 60% 2002 ©2003-2004» 2005-2006: 2007 «2008» 20
Slide 19: Debt Service & Loan-to-Value Ratios on New Loans
$loan originations in millions Debt Service & Loan-to-Value Ratios on New Loans Weighted average LTV consistently at or below 65% Originated Gurchased $1,200.00 $1,000.00 $800.00 600.00 aa - Average: $400.00 $200.00 $. , a Mu 2002 2003 «2004» 2005-2008 ~= 2007S 2008 += 2009S 2010» 2011-2012 2013S 20
Slide 20: Repricing Real Estate Loans
Repricing Real Estate Loans $4,000 + Frequent repricing. $3,500 + Early prepayments add an element of revenue to the P&L. 25.4% of total loans reprice 77.3% of total loans reprice $3,000 by the end of 2017 by the end of 2020 Annual Repricings —Cumulative Repricings = = £ $2,000 2 $1,500 $1,000 $500
Slide 21: Payoff Speed and Origination Spread
Payoff Speed and Origination Spread Speed Spread 40% 1.5% mmm Payoff Speed (Annualized) 35% Spread Between Origination rate and Weighted Ava 1.0% Portfolio Rate 30% 0.5% 25% 20% 0.0% 15% 05% 10% 1.0% 5% 0% 15% z 2 Fi 5 z 2 g 5 z 2 g 5 z 2 g = 3 3 = 8 3 2 g 8 3 2 g 8 3 ¢ €& &@ &® & & 8 8&8 8 8 & 8 8
Slide 22: Deposits & Borrowed Funds
DEPOSITS & BORROWED FUNDS Dime Community Bancshares, Inc.
Slide 23: Branch Network
Branch Network * 25 Branches in New York City metropolitan area. * Average branch size = $106.4 million as of December 31, 2014 23
Slide 24: Dime's Deposit Share
DIME’S DEPOSIT SHARE 4 40 $1,041,000 2.38% $ 42,294,000 13 7 $ 756,000 1.64% $ 48,812,000 14 7 $ 795,000 1.25% $ 62,547,000 18 4 $ 68,000 0.62% $ 11,041,000 (1) Data as of December 31, 2014 Source: FDIC Dime Community Bancshare: 24
Slide 25: Focus on Profitable Deposits
Focus on Profitable Deposits December 31, 2014 December 31, 2013 Total Deposits = $2.07 billion Total Deposits = $2.66 billion Interest Non- Interest Non- Money bearing interest Money bearing interest Mkt/ checking, bearing Mkt cheking, bearing Passbook 3% checking, Passbook 3% checking, Savings, |
Slide 26: Core Deposits
Core Deposits ‘Sin Thousands *| Core Deposits represent 65% of total 200, ty junding as of December 31, 2014. 1,200,000 0.61% fundi Ff D ber 31, 2014. $1.8 billion of deposits outstanding ee as of December 31, 2014 with a — weighted average rate of 0.40% (presented in chart). 800,000 * Approx. 50,00
Slide 27: Retail CDs
Retail CDs $n Thousands 600,000 500,000 400,000 300,000 200,000 100,000 e Dime Community Bancshares, Inc. DIME 1.10% 2015 2016 ™Volume —% Avg. Cost. December 31, 2014 (presented in chart). * Retail CDs represent 24% of total funding as of December 31, 2014. * Weighted average maturity of CDs is 1.65
Slide 28: Borrowed Funds
Borrowed Funds $ in Thousands $600,000 * Borrowings consist of short- and long-term FHLB advances. + $1.17 billion outstanding as of mVolume —_% Avg. Cost. December 31, 2014 (presented in chart). $500,000 * Borrowed funds add stability to arising rate environment. $400,000 $300,000 * Borrowed funds
Slide 29: Competitive Performance
COMPETITIVE PERFORMANCE
Slide 30: Another Year of Top Financial Performance
Another year of Top Financial Performance SNLThrift Investor: SNL DIME RANKS # 4 of 100 For the sixth straight year, Dime ranks fifth or higher in SNL survey. BankDirector: Bank Director DIME RANKS # 7 in $1 to $5 billion asset group “The 200 largest U.S. banks are stronger and more profitable than
Slide 31: Appendix 1 – Additional Financial Metrics - Year Trendline
APPENDIX1 Additional Financial Metrics - 10 Year Trendline 2003 2004 2006 -2007___-2008___2011 2012 2013 2014 {(S in thousands) Total Assets $2,974,661] $3,377,2663,126,226] $3,173,377] $3,501,175|$4,055,598] $4,021,180, _$3,905,399|_$4,028,190| $4,497,107) Total loans, net of allowance 2,477,622 2,
Slide 32: Appendix – Stock Price Performance
. APPENDIX 2 Stock Price Performance Dime Community Bancshares, Inc. - Price Change (%) * Split-adjusted IPO —2c00 28.26%) Rosset 2000 83.96%) Kew Bank 090.0895) price of aDCOM share is $2.96. Total Return since the IPO inJune 1996: 749%. * Current dividend $0.14/QTR Price Change (%) a0! T 1 T r 1 T
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