Dime Community Bancshares, Inc. Reports Fourth Quarter 2024 Results

Strong Growth in Deposits, Business Loans and Capital Ratios on a Year-Over-Year Basis Net Interest Margin Expands by 29 basis points on a Linked Quarter Basis to 2.79% HAUPPAUGE, N.Y., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $21.8 million for the year ended December 31, 2024, or $0.55 per diluted common share, compared to net income available to common stockholders of $88.8 million, or $2.29 per diluted common share, for the year ended December 31, 2023. Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Our fourth quarter results were marked by continued core deposit growth and Net Interest Margin (“NIM”) expansion. In addition, we successfully executed on several important initiatives in the fourth quarter, including a follow-on common equity offering. The proceeds from the offering were utilized to re-position our available-for-sale securities portfolio and Bank Owned Life Insurance (“BOLI”) portfolio and supplement our capital base. These transactions will contribute towards a stronger balance sheet, enhanced earnings power and support future growth. I would like to thank all of our employees for their tremendous efforts throughout the year that led to substantial year-over-year growth in core deposits and business loans as well as the Bank achieving an “Outstanding” rating on our recent Community Reinvestment Act examination.” For the quarter ended December 31, 2024, net loss available to common stockholders was $22.2 million, or $(0.54) per diluted common share, compared to net income available to common stockholders of $11.5 million, or $0.29 per diluted common share, for the quarter ended September 30, 2024, and net income available to common stockholders of $14.5 million, or $0.37 per diluted common share, for the quarter ended December 31, 2023. Fourth quarter 2024 results included: $42.8 million of pre-tax loss-on-sale of securities, $1.3 million of pre-tax severance expense and $1.2 million of pre-tax expense related to the termination of a legacy pension plan. In addition, the fourth quarter 2024 results included $9.1 million of income tax expense related to the taxable gain and Modified Endowment Contract Tax (“MEC Tax”) on the surrender of legacy BOLI assets. Adjusted net income available to common stockholders (non-GAAP) totaled $17.4 million for the quarter ended December 31, 2024, an increase of 52% versus the prior quarter and an increase of 16% versus the year ago quarter (see “Non-GAAP Reconciliation” tables at the end of this news release). Adjusted EPS (non-GAAP) totaled $0.42 per share for the quarter ended December 31, 2024, an increase of 45% versus the prior quarter and an increase of 8% versus the year ago quarter. Highlights for the Fourth Quarter of 2024 Included: Total deposits increased $268.8 million compared to the third quarter of 2024;Core deposits (excluding brokered and time deposits) increased $513.4 million compared to the third quarter of 2024;The ratio of average non-interest-bearing deposits to average total deposits for the fourth quarter increased to 30.0%;The cost of total deposits declined by 37 basis points versus the prior quarter;The net interest margin increased to 2.79% for the fourth quarter of 2024 compared to 2.50% for the prior quarter;The loan to deposit ratio declined to 93.0% at the end of the fourth quarter compared to 95.4% for the prior quarter;The allowance for credit losses to total loans increased to 0.82% at the end of the fourth quarter compared to 0.78% for the prior quarter;The Company’s Common Equity Tier 1 Ratio increased to 11.07% at the end of the fourth quarter; andThe Bank received an “Outstanding” overall rating as well as an “Outstanding” rating on each of the individual components (Lending, Investment and Service tests) for its recently concluded Community Reinvestment Act examination. Management’s Discussion of Quarterly Operating Results Net Interest Income Net interest income for the fourth quarter of 2024 was $91.1 million compared to $79.9 million for the third quarter of 2024 and $74.1 million for the fourth quarter of 2023. Mr. Lubow commented, “Strong growth in core deposits as well as proactive management of deposit rates led to strong linked quarter growth in our net interest margin. We anticipate the full quarter impact of the securities repositioning (which was completed towards the end of November) to positively benefit the NIM in 2025.” The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio. (Dollars in thousands) Q4 2024 Q3 2024 Q4 2023 Net interest income $ 91,098 $79,924 $74,121 Purchase accounting amortization (accretion) on loans ("PAA") (1,268) (266) (55) Adjusted net interest income excluding PAA on loans (non-GAAP) $ 89,830 $79,658 $74,066 Average interest-earning assets $ 12,974,958 $12,734,246 $12,828,060 NIM (1) 2.79 % 2.50 % 2.29 %Adjusted NIM excluding PAA on loans (non-GAAP) (2) 2.75 % 2.49 % 2.29 % (1) NIM represents net interest income divided by average interest-earning assets.(2) Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets. Loan Portfolio The ending weighted average rate (“WAR”) on the total loan portfolio was 5.26% at December 31, 2024, a 14 basis point decrease compared to the ending WAR of 5.40% on the total loan portfolio at September 30, 2024. The linked quarter decline in the WAR on the loan portfolio was primarily due to floating rate loans adjusting lower as a result of the Federal Reserve’s rate cuts. Outlined below are loan balances and WARs for the quarter ended as indicated. December 31, 2024 September 30, 2024 December 31, 2023 (Dollars in thousands) Balance WAR (1) Balance WAR (1) Balance WAR (1) Loans held for investment balances at period end: Business loans (2) $ 2,726,602 6.56% $2,653,624 6.82%$2,310,379 6.81%One-to-four family residential, including condominium and cooperative apartment 952,195 4.72 934,209 4.65 889,236 4.47 Multifamily residential and residential mixed-use (3)(4) 3,820,492 4.49 3,866,931 4.60 4,017,703 4.53 Non-owner-occupied commercial real estate 3,231,398 5.13 3,281,923 5.25 3,381,842 5.19 Acquisition, development, and construction 136,172 7.95 149,299 8.46 168,513 8.71 Other loans 5,084 10.51 6,058 10.71 5,755 6.75 Loans held for investment $ 10,871,943 5.26% $10,892,044 5.40%$10,773,428 5.29% (1) WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.(2) Business loans include commercial and industrial loans and owner-occupied commercial real estate loans. (3) Includes loans underlying multifamily cooperatives. (4) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio. Outlined below are the loan originations, for the quarter ended as indicated. (Dollars in millions) Q4 2024 Q3 2024 Q4 2023Loan originations $ 187.5 $122.7 $195.9 Deposits and Borrowed Funds Period end total deposits (including mortgage escrow deposits) at December 31, 2024 were $11.69 billion, compared to $11.42 billion at September 30, 2024 and $10.53 billion at December 31, 2023. Total Federal Home Loan Bank advances were $608.0 million at December 31, 2024 compared to $508.0 million at September 30, 2024 and $1.31 billion at December 31, 2023. Mr. Lubow commented, “Over the course of 2024, we made significant progress in re-creating a core-deposit funded balance sheet. Strong growth in core business deposits allowed us to reduce our FHLB advance position by approximately $700 million on a year-over-year basis and our brokered deposit position by approximately $475 million on a year-over-year basis.” Non-Interest Income Non-interest income was a loss of $33.9 million during the fourth quarter of 2024, compared to income of $7.6 million during the third quarter of 2024, and income of $8.9 million during the fourth quarter of 2023. Fourth quarter 2024 results included $42.8 million of pre-tax loss-on-sale of securities related to the re-positioning of the available-for-sale securities portfolio. Non-Interest Expense Total non-interest expense was $60.6 million during the fourth quarter of 2024, $57.7 million during the third quarter of 2024, and $53.9 million during the fourth quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense, settlement loss related to the termination of a legacy pension plan, and the FDIC special assessment, adjusted non-interest expense was $57.7 million during the fourth quarter of 2024, $57.4 million during the third quarter of 2024, and $52.6 million during the fourth quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release). Mr. Lubow commented, “In line with our previous guidance, our adjusted non-interest expense base was relatively flat in the fourth quarter of 2024 compared to the prior quarter.” The ratio of non-interest expense to average assets was 1.76% during the fourth quarter of 2024, compared to 1.71% during the linked quarter and 1.58% for the fourth quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense, the FDIC special assessment and settlement loss related to the termination of a legacy pension plan, the ratio of adjusted non-interest expense to average assets was 1.68% during the fourth quarter of 2024, compared to 1.70% during the linked quarter and 1.54% for the fourth quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release). The efficiency ratio was 105.9% during the fourth quarter of 2024, compared to 65.9% during the linked quarter and 65.0% during the fourth quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, the FDIC special assessment, settlement loss related to the termination of a legacy pension plan, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 58.0% during the fourth quarter of 2024, compared to 65.6% during the linked quarter and 63.6% during the fourth quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release). Income Tax Expense The fourth quarter of 2024 income tax expense was $3.3 million, inclusive of $9.1 million of income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets. Excluding the tax impact of the BOLI surrender, the fourth quarter 2024 effective rate was a tax benefit of 33.5%. This compares to an effective tax rate of 26.9% for the third quarter of 2024, and 35.6% for the fourth quarter of 2023. Credit Quality Non-performing loans were $49.5 million at December 31, 2024, compared to $49.5 million at September 30, 2024 and $29.1 million at December 31, 2023. A credit loss provision of $13.7 million was recorded during the fourth quarter of 2024, compared to a credit loss provision of $11.6 million during the third quarter of 2024, and a credit loss provision of $3.7 million during the fourth quarter of 2023. Capital Management Stockholders’ equity increased $170.3 million to $1.40 billion at December 31, 2024, compared to $1.23 billion at December 31, 2023. The growth primarily reflects retained earnings and the $135.8 million in net proceeds raised in connection with the November 2024 common equity offering. The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of December 31, 2024. All risk-based regulatory capital ratios increased in the fourth quarter of 2024. Mr. Lubow commented, “During the fourth quarter we raised $136 million of net proceeds from a common equity offering. Our capital ratios are now best-in-class when compared to other community and regional banks in our footprint with over $10 billion of assets.” Dividends per common share were $0.25 during the fourth and third quarters of 2024, respectively. Book value per common share was $29.34 at December 31, 2024 compared to $29.31 at September 30, 2024. Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.68 at December 31, 2024 compared to $25.22 at September 30, 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release). Earnings Call Information The Company will conduct a conference call at 8:30 a.m. (ET) on Thursday, January 23, 2025, during which CEO Lubow will discuss the Company’s fourth quarter 2024 financial performance, with a question-and-answer session to follow. Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/sjcchcex. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BIe30c4b35e36b49dfa2d4bdc94b8528b3. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time. A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/sjcchcex. ABOUT DIME COMMUNITY BANCSHARES, INC.Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $14.4 billion in assets and the number one deposit market share among community banks on Greater Long Island (1). (1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets. This news release 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 of words such as “annualized," “anticipate," "believe," “continue,” "could," "estimate," "expect," "intend," “likely,” "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Contact: Avinash ReddySenior Executive Vice President – Chief Financial Officer718-782-6200 extension 5909 DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(In thousands) December 31, September 30, December 31, 2024 2024 2023Assets: Cash and due from banks $ 1,283,571 $626,056 $457,547 Securities available-for-sale, at fair value 690,693 774,608 886,240 Securities held-to-maturity 637,339 592,414 594,639 Loans held for sale 22,625 13,098 10,159 Loans held for investment, net: Business loans (1) 2,726,602 2,653,624 2,310,379 One-to-four family and cooperative/condominium apartment 952,195 934,209 889,236 Multifamily residential and residential mixed-use (2)(3) 3,820,492 3,866,931 4,017,703 Non-owner-occupied commercial real estate 3,231,398 3,281,923 3,381,842 Acquisition, development and construction 136,172 149,299 168,513 Other loans 5,084 6,058 5,755 Allowance for credit losses (88,751) (85,221) (71,743)Total loans held for investment, net 10,783,192 10,806,823 10,701,685 Premises and fixed assets, net 34,858 35,066 44,868 Premises held for sale — — 905 Restricted stock 69,106 64,235 98,750 BOLI 290,665 372,367 349,816 Goodwill 155,797 155,797 155,797 Other intangible assets 3,896 4,181 5,059 Operating lease assets 46,193 48,537 52,729 Derivative assets 116,496 105,636 122,132 Accrued interest receivable 55,970 54,578 55,666 Other assets 162,857 93,133 100,013 Total assets $ 14,353,258 $13,746,529 $13,636,005 Liabilities: Non-interest-bearing checking (excluding mortgage escrow deposits) $ 3,355,829 $3,231,160 $2,884,378 Interest-bearing checking 1,079,823 938,070 515,987 Savings (excluding mortgage escrow deposits) 1,927,903 1,845,266 2,335,354 Money market 4,198,784 3,898,509 3,125,996 Certificates of deposit 1,069,081 1,416,467 1,607,683 Deposits (excluding mortgage escrow deposits) 11,631,420 11,329,472 10,469,398 Non-interest-bearing mortgage escrow deposits 54,715 87,841 61,121 Interest-bearing mortgage escrow deposits 6 5 136 Total mortgage escrow deposits 54,721 87,846 61,257 FHLBNY advances 608,000 508,000 1,313,000 Other short-term borrowings 50,000 — — Subordinated debt, net 272,325 272,300 200,196 Derivative cash collateral 112,420 68,960 108,100 Operating lease liabilities 48,993 51,362 55,454 Derivative liabilities 108,347 98,108 121,265 Other liabilities 70,515 66,552 81,110 Total liabilities 12,956,741 12,482,600 12,409,780 Stockholders' equity: Preferred stock, Series A 116,569 116,569 116,569 Common stock 461 416 416 Additional paid-in capital 624,822 488,607 494,454 Retained earnings 794,526 827,690 813,007 Accumulated other comprehensive loss ("AOCI"), net of deferred taxes (45,018) (72,970) (91,579)Unearned equity awards (7,640) (10,111) (8,622)Treasury stock, at cost (87,203) (86,272) (98,020)Total stockholders' equity 1,396,517 1,263,929 1,226,225 Total liabilities and stockholders' equity $ 14,353,258 $13,746,529 $13,636,005 (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program (“PPP”) loans.(2) Includes loans underlying multifamily cooperatives.(3) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio. DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands except share and per share amounts) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023Interest income: Loans $ 148,000 $151,828 $144,744 $ 590,492 $554,488 Securities 10,010 7,766 7,918 33,563 32,179 Other short-term investments 7,473 4,645 6,094 26,094 22,693 Total interest income 165,483 164,239 158,756 650,149 609,360 Interest expense: Deposits and escrow 64,773 74,025 66,650 284,745 219,045 Borrowed funds 8,542 8,764 15,617 41,036 66,472 Derivative cash collateral 1,070 1,526 2,368 6,314 7,272 Total interest expense 74,385 84,315 84,635 332,095 292,789 Net interest income 91,098 79,924 74,121 318,054 316,571 Provision for credit losses 13,715 11,603 3,720 36,113 2,770 Net interest income after provision 77,383 68,321 70,401 281,941 313,801 Non-interest income: Service charges and other fees 3,942 4,267 3,804 16,725 16,437 Title fees 226 190 466 843 1,295 Loan level derivative income 491 132 728 2,114 7,081 BOLI income 2,825 2,606 2,416 10,376 9,748 Gain on sale of Small Business Administration ("SBA") loans 22 19 531 407 1,592 Gain on sale of residential loans 83 38 12 225 115 Fair value change in equity securities and loans held for sale 15 39 321 (1,204) (758)Net loss on sale of securities (42,810) — — (42,810) (1,447)Gain (loss) on sale of other assets 554 2 — 7,219 (22)Other 791 338 594 2,150 2,165 Total non-interest (loss) income (33,861) 7,631 8,872 (3,955) 36,206 Non-interest expense: Salaries and employee benefits 35,761 36,132 30,383 136,114 117,437 Severance 1,254 — 25 1,296 9,093 Occupancy and equipment 7,569 7,448 7,261 29,794 29,055 Data processing costs 4,483 4,544 3,730 17,745 16,474 Marketing 1,897 1,629 1,765 6,660 6,781 Professional services 2,345 2,036 1,279 8,614 6,155 Federal deposit insurance premiums (1) 2,116 2,105 3,240 8,710 8,853 Loss on extinguishment of debt — 1 — 454 — Loss due to pension settlement 1,215 — — 1,215 — Amortization of other intangible assets 285 286 350 1,163 1,425 Other 3,688 3,548 5,911 14,782 17,855 Total non-interest expense 60,613 57,729 53,944 226,547 213,128 (Loss) income before taxes (17,091) 18,223 25,329 51,439 136,879 Income tax expense (2) 3,322 4,896 9,021 22,355 40,785 Net (loss) income (20,413) 13,327 16,308 29,084 96,094 Preferred stock dividends 1,821 1,822 1,821 7,286 7,286 Net (loss) income available to common stockholders $ (22,234) $11,505 $14,487 $ 21,798 $88,808 Earnings per common share ("EPS"): Basic $ (0.54) $0.29 $0.37 $ 0.55 $2.29 Diluted $ (0.54) $0.29 $0.37 $ 0.55 $2.29 Average common shares outstanding for diluted EPS 40,767,161 38,366,619 38,216,476 38,933,054 38,187,477 (1) Fourth quarter of 2024 and 2023 included $0.1 million and $1.0 million, respectively, of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank.(2) Fourth quarter of 2024 includes $9.1 million of income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets. DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED SELECTED FINANCIAL HIGHLIGHTS(Dollars in thousands except per share amounts) At or For the Three Months Ended At or For the Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Per Share Data: Reported EPS (Diluted) $ (0.54) $0.29 $0.37 $ 0.55 $2.29 Cash dividends paid per common share 0.25 0.25 0.25 1.00 0.99 Book value per common share 29.34 29.31 28.58 29.34 28.58 Tangible common book value per share (1) 25.68 25.22 24.44 25.68 24.44 Common shares outstanding 43,622 39,152 38,823 43,622 38,823 Dividend payout ratio (46.30)% 86.21 % 67.57 % 181.82 % 43.23 % Performance Ratios (Based upon Reported Net Income): Return on average assets (0.59)% 0.39 % 0.48 % 0.21 % 0.71 %Return on average equity (6.02) 4.19 5.32 2.27 7.91 Return on average tangible common equity (1) (8.16) 4.70 6.20 2.24 9.59 Net interest margin 2.79 2.50 2.29 2.48 2.46 Non-interest expense to average assets 1.76 1.71 1.58 1.66 1.56 Efficiency ratio 105.9 65.9 65.0 72.1 60.4 Effective tax rate (19.44) 26.87 35.62 43.46 29.80 Balance Sheet Data: Average assets $ 13,759,002 $13,502,753 $13,630,096 $ 13,618,789 $13,625,215 Average interest-earning assets 12,974,958 12,734,246 12,828,060 12,837,416 12,847,238 Average tangible common equity (1) 1,080,177 996,578 948,024 1,006,390 936,840 Loan-to-deposit ratio at end of period (2) 93.0 95.4 102.3 93.0 102.3 Capital Ratios and Reserves - Consolidated: (3) Tangible common equity to tangible assets (1) 7.89 % 7.27 % 7.04 % Tangible equity to tangible assets (1) 8.71 8.13 7.91 Tier 1 common equity ratio 11.07 10.16 9.84 Tier 1 risk-based capital ratio 12.17 11.28 10.94 Total risk-based capital ratio 15.65 14.76 13.54 Tier 1 leverage ratio 9.39 8.76 8.51 Consolidated CRE concentration ratio (4) 447 487 538 Allowance for credit losses/ Total loans 0.82 0.78 0.67 Allowance for credit losses/ Non-performing loans 179.37 172.29 246.55 (1) See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets. (2) Total deposits include mortgage escrow deposits, which fluctuate seasonally.(3) December 31, 2024 ratios are preliminary pending completion and filing of the Company’s regulatory reports.(4) The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The December 31, 2024 ratio is preliminary pending completion and filing of the Company’s regulatory reports. DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME(Dollars in thousands) Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Average Average Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Interest-earning assets: Business loans (1) $ 2,681,953 $ 46,791 6.94% $2,609,934 $46,656 7.11%$2,264,401 $38,740 6.79%One-to-four family residential, including condo and coop 943,319 11,061 4.66 924,150 11,024 4.75 893,008 9,706 4.31 Multifamily residential and residential mixed-use 3,848,579 44,152 4.56 3,902,220 45,790 4.67 4,070,327 46,715 4.55 Non-owner-occupied commercial real estate 3,265,906 42,865 5.22 3,297,760 44,804 5.40 3,376,581 45,037 5.29 Acquisition, development, and construction 139,440 3,101 8.85 147,875 3,505 9.43 188,022 4,459 9.41 Other loans 4,781 30 2.50 4,891 49 3.99 5,837 87 5.91 Securities 1,455,449 10,010 2.74 1,493,492 7,766 2.07 1,599,724 7,918 1.96 Other short-term investments 635,531 7,473 4.68 353,924 4,645 5.22 430,160 6,094 5.62 Total interest-earning assets 12,974,958 165,483 5.07% 12,734,246 164,239 5.13% 12,828,060 158,756 4.91%Non-interest-earning assets 784,044 768,507 802,036 Total assets $ 13,759,002 $13,502,753 $13,630,096 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Interest-bearing checking (2) $ 912,645 $ 5,115 2.23% $798,024 $4,635 2.31%$524,573 $1,063 0.80%Money market 3,968,793 33,695 3.38 3,771,562 36,841 3.89 3,136,891 27,541 3.48 Savings (2) 1,905,866 14,828 3.10 2,102,282 19,492 3.69 2,295,882 20,979 3.63 Certificates of deposit 1,126,859 11,135 3.93 1,232,984 13,057 4.21 1,564,817 17,067 4.33 Total interest-bearing deposits 7,914,163 64,773 3.26 7,904,852 74,025 3.73 7,522,163 66,650 3.52 FHLBNY advances 509,630 4,241 3.31 528,652 4,455 3.35 1,174,848 13,064 4.41 Subordinated debt, net 272,311 4,301 6.28 271,450 4,307 6.31 200,210 2,553 5.06 Other short-term borrowings 543 — — 131 2 6.07 — — — Total borrowings 782,484 8,542 4.34 800,233 8,764 4.36 1,375,058 15,617 4.51 Derivative cash collateral 99,560 1,070 4.28 91,305 1,526 6.65 161,535 2,368 5.82 Total interest-bearing liabilities 8,796,207 74,385 3.36% 8,796,390 84,315 3.81% 9,058,756 84,635 3.71%Non-interest-bearing checking (2) 3,396,457 3,209,502 3,059,289 Other non-interest-bearing liabilities 209,712 223,546 286,373 Total liabilities 12,402,376 12,229,438 12,404,418 Stockholders' equity 1,356,626 1,273,315 1,225,678 Total liabilities and stockholders' equity $ 13,759,002 $13,502,753 $13,630,096 Net interest income $ 91,098 $79,924 $74,121 Net interest rate spread 1.71% 1.32% 1.20%Net interest margin 2.79% 2.50% 2.29%Deposits (including non-interest-bearing checking accounts) (2) $ 11,310,620 $ 64,773 2.28% $11,114,354 $74,025 2.65%$10,581,452 $66,650 2.50% (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.(2) Includes mortgage escrow deposits. DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED SCHEDULE OF NON-PERFORMING ASSETS(Dollars in thousands) At or For the Three Months Ended December 31, September 30, December 31, Asset Quality Detail 2024 2024 2023Non-performing loans ("NPLs") Business loans (1) $ 22,624 $25,411 $18,574 One-to-four family residential, including condominium and cooperative apartment 3,213 3,880 3,248 Multifamily residential and residential mixed-use — — — Non-owner-occupied commercial real estate 22,960 19,509 6,620 Acquisition, development, and construction 657 657 657 Other loans 25 6 — Total Non-accrual loans $ 49,479 $49,463 $29,099 Total Non-performing assets ("NPAs") $ 49,479 $49,463 $29,099 Total loans 90 days delinquent and accruing ("90+ Delinquent") $ — $— $— NPAs and 90+ Delinquent $ 49,479 $49,463 $29,099 NPAs and 90+ Delinquent / Total assets 0.34% 0.36% 0.21%Net charge-offs ("NCOs") $ 10,611 $4,199 $4,555 NCOs / Average loans (2) 0.39% 0.15% 0.17% (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.(2) Calculated based on annualized NCOs to average loans, excluding loans held for sale. DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESNON-GAAP RECONCILIATION(Dollars in thousands except per share amounts) The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP. The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net loss (gain) on sale of securities and other assets, severance, the FDIC special assessment, loss on extinguishment of debt and loss due to pension settlement. The non-GAAP financial measures also include taxes related to the surrender of BOLI assets. Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Reconciliation of Reported and Adjusted (non-GAAP) Net (Loss) Income Available to Common Stockholders Reported net (loss) income available to common stockholders $ (22,234) $11,505 $14,487 $ 21,798 $88,808 Adjustments to net income (1): Fair value change in equity securities and loans held for sale (15) (39) (321) 1,204 758 Net loss (gain) on sale of securities and other assets 42,256 (2) — 35,591 1,469 Severance 1,254 — 25 1,296 9,093 FDIC special assessment 126 — 999 126 999 Loss on extinguishment of debt — 1 — 454 — Loss due to pension settlement 1,215 — — 1,215 — Income tax effect of adjustments noted above (1) (14,258) 13 (208) (12,684) (1,193) BOLI tax adjustment (2): 9,073 — — 9,073 — Adjusted net income available to common stockholders (non-GAAP) $ 17,417 $11,478 $14,982 $ 58,073 $99,934 Adjusted Ratios (Based upon Adjusted (non-GAAP) Net (Loss) Income as calculated above) Adjusted EPS (Diluted) $ 0.42 $0.29 $0.39 $ 1.46 $2.58 Adjusted return on average assets 0.56 % 0.39 % 0.49 % 0.48 % 0.79 %Adjusted return on average equity 5.67 4.18 5.48 5.09 8.82 Adjusted return on average tangible common equity 6.52 4.69 6.41 5.85 10.77 Adjusted non-interest expense to average assets 1.68 1.70 1.54 1.63 1.48 Adjusted efficiency ratio 58.0 65.6 63.6 63.4 56.8 (1) Adjustments to net (loss) income are taxed at the Company's approximate statutory tax rate.(2) Reflects income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets. The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP): Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Operating expense as a % of average assets - as reported 1.76 % 1.71 % 1.58 % 1.66 % 1.56 %Severance (0.04) — — (0.01) (0.06) FDIC special assessment — — (0.03) — (0.01) Loss on extinguishment of debt — — — — — Loss due to pension settlement (0.04) — — (0.01) — Amortization of other intangible assets — (0.01) (0.01) (0.01) (0.01) Adjusted operating expense as a % of average assets (non-GAAP) 1.68 % 1.70 % 1.54 % 1.63 % 1.48 % The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP): Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Efficiency ratio - as reported (non-GAAP) (1) 105.9 % 65.9 % 65.0 % 72.1 % 60.4 %Non-interest expense - as reported $ 60,613 $57,729 $53,944 $ 226,547 $213,128 Severance (1,254) — (25) (1,296) (9,093) FDIC special assessment (126) — (999) (126) (999) Loss on extinguishment of debt — (1) — (454) — Loss due to pension settlement (1,215) — — (1,215) — Amortization of other intangible assets (285) (286) (350) (1,163) (1,425) Adjusted non-interest expense (non-GAAP) $ 57,733 $57,442 $52,570 $ 222,293 $201,611 Net interest income - as reported $ 91,098 $79,924 $74,121 $ 318,054 $316,571 Non-interest (loss) income - as reported $ (33,861) $7,631 $8,872 $ (3,955) $36,206 Fair value change in equity securities and loans held for sale (15) (39) (321) 1,204 758 Net loss (gain) on sale of securities and other assets 42,256 (2) — 35,591 1,469 Adjusted non-interest income (non-GAAP) $ 8,380 $7,590 $8,551 $ 32,840 $38,433 Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 99,478 $87,514 $82,672 $ 350,894 $355,004 Adjusted efficiency ratio (non-GAAP) (2) 58.0 % 65.6 % 63.6 % 63.4 % 56.8 % (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 income.(2) The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income. The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP): December 31, September 30, December 31, 2024 2024 2023 Reconciliation of Tangible Assets: Total assets $ 14,353,258 $13,746,529 $13,636,005 Goodwill (155,797) (155,797) (155,797) Other intangible assets (3,896) (4,181) (5,059) Tangible assets (non-GAAP) $ 14,193,565 $13,586,551 $13,475,149 Reconciliation of Tangible Common Equity - Consolidated: Total stockholders' equity $ 1,396,517 $1,263,929 $1,226,225 Goodwill (155,797) (155,797) (155,797) Other intangible assets (3,896) (4,181) (5,059) Tangible equity (non-GAAP) 1,236,824 1,103,951 1,065,369 Preferred stock, net (116,569) (116,569) (116,569) Tangible common equity (non-GAAP) $ 1,120,255 $987,382 $948,800 Common shares outstanding 43,622 39,152 38,823 Tangible common equity to tangible assets (non-GAAP) 7.89 % 7.27 % 7.04 %Tangible equity to tangible assets (non-GAAP) 8.71 8.13 7.91 Book value per common share $29.34 $29.31 $28.58 Tangible common book value per share (non-GAAP) 25.68 25.22 24.44

Dime Community Bancshares, Inc. Reports Fourth Quarter 2024 Results

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