Dime Community Bancshares, Inc. · NYSE:DCOM
Dime Community Bancshares — D.A. Davidson Virtual Investor Conference (September 2020)
27 slides from Dime Community Bancshares's conference presentation, September 2020
Slide 1: Dime Community Bancshares, Inc.
DIME COMMUNITY BANCSHARES, INC. (NASDAQ: DCOM) D.A. Davidson Virtual Investor Conference
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 use
Slide 3: Dime's Vision Statement
Dime’s Vision Statement To transform the business model from a “mono-line thrift” into The Best Business Bank in New York 3
Slide 4: Corporate Profile
CORPORATE PROFILE History Dime Branch Footprint • Founded as The Dime Savings Bank of Williamsburgh in 1864; converted to public ownership in 1996 Greater New York City Area – Changed name to “Dime Community Bank”, effective August 2016 • 28 branches in Brooklyn, Queens, Nassau, Bronx and Suffolk •
Slide 5: Update on Business Model Transformation
Update on Business Model Transformation Commentary Stock Performance: 12/31/16(1) to 6/30/20 Dime’s stock price has out-performed all of our peers* on a relative basis since our commercial bank transformation began -60.8% -41.3% -31.7% Peer Peer Dime Dime successfully completed its charter conve
Slide 6: Improving Five Fundamental Metrics
Our Strategic Plan is Based On Improving Five Fundamental Metrics 1 Growing our total checking account balances 2 Increasing low-cost commercial deposits 3 Growing relationship-based commercial loans which will lead to Core NIM expansion 4 Growing sources and the contribution of non-spread revenue 5
Slide 7: Increasing Low Cost Deposits
Increasing Low Cost Deposits 1 Checking Account Balances(1) 2 Low Cost Commercial Deposits (2) $900.0 $700.0 $674.8 $840.8 $650.0 $800.0 $600.0 $700.0 $550.0 $494.4 $600.0 $500.0 $547.1 $450.0 $500.0 $400.0 $400.0 $350.0 $300.0 $300.0 6/30/19 6/30/20 6/30/19 6/30/20 Checking Account Balances (millio
Slide 8: Significant Deposit Opportunity
Significant Deposit Opportunity Business Banking Division Deposits / Loans by Source (6/30/20) Deposits associated with Dime’s legacy multi-family loan 30% portfolio have historically been in the 5% area 26% 20% Deposits associated with our Business Banking loan portfolio are currently 26% 10% 6
Slide 9: Business Banking Division Continues to Make Strong Progress
Business Banking Division Continues to Make Strong Progress Since its inception in 2017, the Business Banking division has originated over $1.7B of relationship-based loans 3 Business Banking Originations To-Date ($M) $250 $247 $200 $200 $174 $153 $143 $146 $142 $145 $150 $110 $100 $86 $65 $52 $46 $
Slide 10: Contributing to Core NIM Expansion
Contributing to Core NIM Expansion The Business Banking division continues to be significantly accretive to our overall NIM and has contributed to seven consecutive quarters of core NIM(1) expansion 3 Net Interest Margin (Ex. Prepayment Fees) 2.80% 2.75% 2.70% 2.59% 2.60% 2.50% 2.47% 2.40% 2.28% 2.2
Slide 11: Increasing Non-Spread Revenue
Increasing Non-Spread Revenue Non-interest income, excluding securities gains and losses, grew by approximately 83% 4 on a year-over-year basis $6.0 $5.3 $5.0 $4.0 $2.9 $3.0 $2.0 $1.0 $0.0 2019 Q2 2020 Q2 $ in Millions We have gained significant traction with our commercial customers on interest r
Slide 12: Improved Liquidity and Reduced CRE Concentration
Improved Liquidity and Reduced CRE Concentration As Dime transitions its balance sheet towards a commercial bank like balance sheet, we have taken steps to significantly improve our on balance sheet liquidity levels and reduce our CRE Concentration levels. 5 Cash & Unencumbered Securities / Total As
Slide 13: Preferred Stock Offerings in 2020 Supplemented Already Strong Capital Ratios
Preferred Stock Offerings in 2020 Supplemented Already Strong Capital Ratios Management began preparations for bolstering our capital base as early as December 2019 and successfully issued Preferred Stock in the first quarter and second quarter of 2020 Total Net Proceeds of The Preferred Stock i
Slide 14: Historically Low Credit Losses
Historically Low Credit Losses Dime’s cumulative credit losses were extremely low during the financial crisis. Post financial-crisis, the Company’s credit losses continue to track below peer levels Cumulative NCOs from 2007 to Cumulative NCOs from 2013 to 2013 over 2006 Gross Loans(1) 2020 YTD over
Slide 15: Summary of Loan Deferrals
Summary of Loan Deferrals Total Loan Deferrals ($ in millions) Tranche of Loans Granted Deferrals in April ($M) Payment Status Balance $1,200 Still in Phase 1 $1.9 No additional payment relief $175.0 $1,000 Phase 2: Paying full escrow + full interest $122.8 Phase 2: Paying full escrow + partial inte
Slide 16: Loan Deferrals By Asset Class as of July 31, 2020
Loan Deferrals By Asset Class as of July 31, 2020 Note: Dollars in millions Total Loan Portfolio Loan Deferrals Balance % of Loans LTV Balance LTV One-to-four family and coop/condo $179 3% 52% $20 50% Multifamily residential and residential mixed-use 2,955 54% 51% 388 59% Commercial mixed-use 362 7%
Slide 17: Combination of Two Iconic Community Banks
Combination of Two Iconic Community Banks to Create a NY-Based Champion That Will Be a Significant Source of Strength 17
Slide 18: Transaction Summary
Transaction Summary • 100% stock with Dime merging with and into Bridge Structure and • Dime shareholders receive 0.6480 Bridge shares per Dime share Exchange Ratio Implied value of $14.80(1) per Dime share, or approximately $489M(1)(2) in aggregate • Kevin O'Connor - Chief Executive Officer Manag
Slide 19: Impressive Branch Footprint with Significant Scarcity Value
Impressive Branch Footprint with Significant Scarcity Value Bridgehampton Suffolk Hauppauge HQ NYC Nassau Brooklyn BDGE (38) DCOM (28) Identified Cost Savings Enhanced Scale Premier NY Franchise Results in Improved Efficiency $11.5B $8.9B $8.4B ~50% 66 Largest Assets Loans Deposits Efficiency Ratio
Slide 20: Consolidates Presence in Highly Attractive Markets
Consolidates Presence in Highly Attractive Markets Affluent Markets with Significant Business Activity #1 Community Bank Deposit Market Share on Greater Long Island (1) Rank Institution City, State Branches Deposits ($B) Mkt. Share # of Business Establishments 1 Pro Forma Hauppauge, NY 64 $8.1 22.0%
Slide 21: Appendix
Appendix 21
Slide 22: Business Banking: Loan Portfolio Overview (6/30/20)
Business Banking: Loan Portfolio Overview (6/30/20) Total Business Banking Portfolio: $1.6 Billion(1) Total Portfolio: Adjustable vs Fixed(1) Construction C&I 9% 21% Owner Occupied CRE 19% Adjustable 45% Fixed 55% Non-Owner Occupied CRE 52% WAR(1): 4.29% Total Portfolio: $1.6B(1) Growth in our Bus
Slide 23: Business Banking: Overview of C&I Portfolio
Business Banking: Overview of C&I Portfolio (1) Breakdown by Industry ($ Millions) Breakdown by Size Industry Balance % of Total # of Loans High Net Worth Individuals $92.7 29% 90 84 Real Estate Rental and Leasing $45.4 14% 80 Finance and Insurance $43.5 14% 70 Health Care and Social Assistance $28.
Slide 24: Historical Financials
HISTORICAL FINANCIALS For the Year Ended Quarter Ended 2016 2017 2018 2019 Q1 2020 Q2 2020 Balance Sheet Items Total Assets $6,005 $6,403 $6,321 $6,354 $6,348 $6,467 Total Gross Loans 5,636 5,602 5,394 5,341 5,207 5,444 Total Deposits 4,395 4,403 4,357 4,283 4,240 4,438 Loans / Deposits 128.2 % 127.
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in thousands, except per share amounts For the Year Ended December 31, Quarter Ended 2016 2017 2018 2019 Q1 2020 Q2 2020 Tangible Common Equity Total Equity $565,868 $598,567 $602,081 $596,758 $645,648 $681,543 Less: Goodwill 55,638 55,638 55,638 55,638 55,638 55,638 Less:
Slide 26: Non-GAAP Reconciliation (Continued)
NON-GAAP RECONCILIATION (CONTINUED) $ in thousands, except per share amounts For the Year Ended December 31, Quarter Ended 2016 2017 2018 2019 Q1 2020 Q2 2020 Return on Average Tangible Common Equity Net Income Available to Common Stockholders $72,514 $51,882 $51,288 $36,186 $8,392 $11,826 Average T
Slide 27: Non-GAAP Reconciliation (Continued)
NON-GAAP RECONCILIATION (CONTINUED) $ in thousands For the Quarter Ended Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Net Interest Margin Net Interest Income $35,028 $37,150 $35,324 $36,504 $36,196 $39,397 $40,524 $43,556 Income from Loan Repayment Activity 1,344 3,167 820 1,581 8
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