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

August 09, 2010 | About:

Dime Community Bancshares Inc. (NASDAQ:DCOM) filed Quarterly Report for the period ended 2010-06-30.

Dime Community Bancshares Inc. has a market cap of $444.56 million; its shares were traded at around $12.87 with a P/E ratio of 12.03 and P/S ratio of 2.13. The dividend yield of Dime Community Bancshares Inc. stocks is 4.35%. Dime Community Bancshares Inc. had an annual average earning growth of 14.4% over the past 10 years.DCOM is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

In general, increases in charge-offs and non-performing loans should result in higher current levels of allowance for loan losses and related loan loss provisions. However, the Company has historically experienced low levels of non-performing assets and charge-offs and the relationship between changes in non-performing loans, charge-off experience and changes in the allowance for loan losses may thus not fully correlate in each operating period. Since January 1, 2008, as the Company has experienced increased non-performing loans and charge-offs, it has provided $17.0 million to its allowance for loan losses, increasing its balance by $5.9 million.

Assets. Assets totaled $4.15 billion at June 30, 2010, an increase of $196.0 million from total assets of $3.95 billion at December 31, 2009.

Cash and due from banks and federal funds sold and other short-term investments increased $125.3 million and $41.7 million, respectively, during the period. During the first six months of 2010, the Company gathered $223.0 million in new deposits and elected to retain a significant portion of these funds in liquid balances to fund some required cash payments during the final six months of 2010. Portfolio real estate loans increased $68.2 million during the period, as a result of $259.9 million of originations and $22.8 million of purchases, which were partially offset by amortization and satisfactions of $221.5 million and portfolio sales of $14.8 million during the same period. MBS available-for-sale declined $40.1 million during the period on principal repayments of $40.6 million during the six months ended June 30, 2010.

Liabilities. Total liabilities increased $176.1 million during the six months ended June 30, 2010, primarily as a result of the addition of $223.0 million in deposits, and $11.8 million in mortgagor escrow balances during the period. The Company repaid a maturing $25.0 million subordinated note on May 1, 2010 and reduced its aggregate balance of FHLBNY advances and REPO borrowings by $24.1 million during the six months ended June 30, 2010. Mortgagor escrow balances increased as a result of both increased loan balances and borrowers funding real estate escrow obligations in advance of annual payments to be made by the Bank on their behalf in December 2010. See "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" for a discussion of the changes in retail branch and Internet banking deposits, FHLBNY

Stockholders' Equity. Stockholders' equity increased $20.0 million during the six months ended June 30, 2010, due primarily to net income of $19.5 million, a reclassification of $8.0 million from liabilities to equity related to the ESOP benefit component of the Company s BMP that resulted from modifications made to the BMP in March 2010, and $1.6 million of stock benefit plan expense amortization that added to the cumulative balance of stockholders' equity. Partially offsetting these items were $9.3 million in cash dividends paid during the period.

General. Net income was $10.0 million during the three months ended June 30, 2010, an increase of $3.1 million from net income of $6.9 million during the three months ended June 30, 2009. During the comparative period, net interest income increased $6.9 million and non-interest income increased $600,000, while the provision for loan losses increased $1.6 million and non-interest expense increased $466,000, resulting in an increase in pre-tax income of $5.5 million. Income tax expense increased $2.4 million during the comparative period due to both the increase in pre-tax earnings as well as a higher effective tax rate.

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