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Dime Community Bancshares Inc. Reports Operating Results (10-Q)

November 09, 2009 | About:
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10qk

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Dime Community Bancshares Inc. (DCOM) filed Quarterly Report for the period ended 2009-09-30.

Dime Community Bancshares Inc. has a market cap of $380.7 million; its shares were traded at around $11.07 with a P/E ratio of 13.02 and P/S ratio of 1.85. The dividend yield of Dime Community Bancshares Inc. stocks is 5.06%. Dime Community Bancshares Inc. had an annual average earning growth of 27.4% over the past 10 years. GuruFocus rated Dime Community Bancshares Inc. the business predictability rank of 2-star.

Highlight of Business Operations:

Stockholders' Equity. Stockholders' equity increased $12.7 million during the nine months ended September 30, 2009, due primarily to net income of $18.1 million, a reduction of $6.3 million in the after-tax balance of accumulated other comprehensive loss (which increases stockholders' equity), and amortization of stock plan benefit expense of $2.2 million, which were partially offset by $13.8 million in cash dividends paid during the period. The decline in the balance of accumulated other comprehensive loss reflected an increase in valuation of a great majority of the Company's available-for-sale investments and MBS during the period as a result of greater marketplace demand for securities possessing high credit quality during the nine months ended September 30, 2009.

General. Net income was $8.3 million during the three months ended September 30, 2009, a reduction of $27,000 from net income of $8.4 million during the three months ended September 30, 2008. During the comparative period, net interest income increased $3.8 million and non-interest income increased $427,000, while the provision for loan losses increased $3.2 million and non-interest expense increased $728,000, resulting in an increase in pre-tax income of $313,000. Income tax expense increased $340,000 during the comparative period due to both the increase in pre-tax earnings as well as the impact of reconciliations to the filing of the Company's consolidated 2008 income tax returns.

Interest Income. Interest income was $52.1 million during the three months ended September 30, 2009, a decrease of $418,000 from $52.5 million during the three months ended September 30, 2008. This resulted primarily from reductions interest income of $862,000 on MBS and $263,000 on investment securities, which were partially offset by an increase of $688,000 in interest income on real estate loans.

Interest Expense. Interest expense decreased $4.2 million, to $23.1 million, during the three months ended September 30, 2009, from $27.3 million during the three months ended September 30, 2008. The decline resulted from reductions in interest expense of $2.3 million on money market accounts, $820,000 on CDs, $428,000 on interest bearing checking accounts, and $434,000 on borrowed funds.

Salaries and employee benefits increased $561,000 during the comparative period as a result of higher expenses associated with the Employee Retirement Plan (caused by a reduction in the projected future earnings of the plan assets due to a decline in their value during the recent economic downturn), as well as a $113,000 reduction in the offset to salaries for capitalized loan origination salary costs during the three months ended September 30, 2009 compared to the three months ended September 30, 2008 (reflecting lower loan origination levels during the comparative period). Occupancy and equipment expense increased by $111,000 during the comparative period, reflecting the opening of the Brooklyn Heights branch in late 2008 and the acquisition of a building in late 2008 intended for future operational use. Federal deposit insurance costs increased $599,000 during the comparative period as a result of ongoing increases in such costs resulting from recent FDIC DIF re-capitalization plans. Other operating expenses declined $359,000, primarily as a result of reduced professional fees.

General. Net income was $18.1 million during the nine months ended September 30, 2009, a decline of $4.6 million from net income of $22.7 million during the nine months ended September 30, 2008. During the comparative period, the provision for loan losses increased $7.7 million, non-interest income declined $5.8 million and non-interest expense increased $5.1 million, while net interest income increased $11.9 million, resulting in a reduction in pre-tax income of $6.7 million. Income tax expense decreased $2.1 million during the comparative period due to the decline in pre-tax earnings.

Read the The complete ReportDCOM is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Irving Kahn of Kahn Brothers & Company Inc..

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