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Dime Community Bancshares, Inc. Reports Strong First Quarter 2023 Results With Earnings Per Share Increasing by 12.2% On a Year-Over-Year Basis
المصدر: Nasdaq GlobeNewswire / 28 أبريل 2023 05:00:01 America/Chicago
Total Deposits Increased by $316 Million Versus Year-End 2022
Results Marked By Prudent Expense Control and Increases in Liquidity and Risk-Based Regulatory Capital Ratios
Announces Hiring of 4 Deposit Focused Groups, Capitalizing on Recent Market Disruption
HAUPPAUGE, N.Y., April 28, 2023 (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 $35.5 million for the quarter ended March 31, 2023, or $0.92 per diluted common share, compared to $32.7 million for the quarter ended March 31, 2022 or $0.82 per diluted common share.
Kevin M. O’Connor, Chief Executive Officer (“CEO”) of the Company, stated, “Despite the volatile environment in the first quarter, including the failure of two sizable banks, Dime increased earnings per share by 12.2% on a year-over-year basis. Importantly, we grew deposits, and increased our on balance sheet liquidity and regulatory capital ratios versus year-end levels. The granularity of our deposit base is evidenced by non-insured deposits (excludes deposits with pass through insurance and collateralized deposits) representing only 30% of total deposits at the end of the first quarter. Our business model is that of a plain-vanilla community commercial bank and we are well positioned to continue growing our franchise one relationship at a time."
Stuart H. Lubow, President and Chief Operating Officer of the Company, stated, “The recent disruption in our marketplace caused by the failure of a local competitor has provided a significant opportunity for Dime to grow our deposit franchise. We are pleased to announce that over the course of the last few weeks we have hired four seasoned deposit-focused Groups, who were previously employed with Signature Bank.”
Highlights for the First Quarter of 2023 Included:
- Cash and due from banks was $663 million at the end of the first quarter, representing a $494 million increase versus year-end. Cash and total securities, as a percent of total assets, was 15.9% at the end of the first quarter, compared to 12.9% at year-end;
- The ratio of average non-interest bearing deposits to average total deposits for the first quarter of 2023 was 32%, compared to 36% for the fourth quarter of 2022.
- Total loans held for investment, net, increased by $170 million or 6% on an annualized basis versus the linked quarter;
- Total Business Loans increased by $47 million or 8.6% on an annualized basis versus the linked quarter;
- Non-interest expense to average assets improved to 1.41% for the first quarter, compared to 1.56% for the prior quarter and 1.64% for the year-ago quarter;
- Credit quality continues to be strong with non-performing assets and loans 90 days past due and accruing declining by 8% versus the linked quarter and representing only 0.23% of total assets as of March 31, 2023; and
- The Company’s Tier 1 Risk Based Capital Ratio of 10.39% was 16 basis points higher than year-end levels.
Management’s Discussion of Quarterly Operating Results
Net Interest Income
Net interest income for the first quarter of 2023 was $85.8 million compared to $89.1 million for the first quarter of 2022.
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) Q1 2023 Q4 2022 Q1 2022 Net interest income $ 85,752 $ 96,804 $ 89,109 Purchase accounting amortization (accretion) on loans ("PAA") 586 (390 ) (50 ) Adjusted net interest income excluding PAA on loans (non-GAAP) $ 86,338 $ 96,414 $ 89,059 Average interest-earning assets $ 12,685,235 $ 12,198,905 $ 11,333,805 NIM (1) 2.74 % 3.15 % 3.19 % Adjusted NIM excluding PAA on loans (non-GAAP) (2) 2.76 % 3.14 % 3.19 % (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 net interest income on PAA loans divided by average interest-earning assets. Loan Portfolio
The ending weighted average rate (“WAR”)(1) on the total loan portfolio was 4.96% at March 31, 2023, a 20 basis point increase compared to the ending WAR on the total loan portfolio at December 31, 2022.
Outlined below are loan balances and WARs for the period ended as indicated.
March 31, 2023 December 31, 2022 March 31, 2022 (Dollars in thousands) Balance WAR Balance WAR Balance WAR Loans held for investment balances at period end: Commercial and industrial ("C&I") $ 1,072,860 7.53 % $ 1,065,916 7.00 % $ 888,056 4.19 % Owner-occupied commercial real estate 1,180,386 5.40 1,140,145 5.16 1,016,804 4.04 Business loans 2,253,246 6.41 2,206,061 6.05 1,904,860 4.11 One-to-four family residential, including condominium and cooperative apartment 799,321 4.06 773,321 3.96 669,099 3.53 Multifamily residential and residential mixed-use (2)(3) 4,118,439 4.23 4,026,826 4.08 3,371,267 3.56 Non-owner-occupied commercial real estate 3,330,582 4.85 3,317,485 4.68 2,930,114 3.73 Acquisition, development, and construction 221,015 8.62 229,663 8.19 329,349 4.63 Other loans 7,172 11.03 7,679 10.22 12,207 6.52 Loans held for investment, excluding PPP loans 10,729,775 4.96 10,561,035 4.76 9,216,896 3.77 PPP loans 2,070 1.00 5,796 1.00 32,953 1.00 Total loans held for investment, including PPP loans $ 10,731,845 4.96 % $ 10,566,831 4.76 % $ 9,249,849 3.76 % (1) Weighted average rate 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 amount of loans in the category. (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. Outlined below are the loan originations, for the quarter ended as indicated.
(Dollars in millions) Q1 2023 Q4 2022 Q1 2022 Loan originations $ 351.9 $ 638.3 $ 480.4
DepositsPeriod end total deposits at March 31, 2023 were $10.57 billion, compared to $10.25 billion at December 31, 2022. The ratio of non-insured deposits (excluding deposits with pass through insurance and collateralized deposits) to total deposits was 30% at the end of the first quarter of 2023.
Non-Interest Income
Non-interest income was $9.0 million during the first quarter of 2023, $9.5 million during the fourth quarter of 2022, and $7.2 million during the first quarter of 2022. Excluding the impact of $1.4 million of net loss on sale of securities and other assets, non-interest income for the first quarter would have been $10.4 million. CEO O’Connor stated, “We had a strong first quarter for non-interest income, driven by increases in customer-related loan swap revenue.”
Non-Interest Expense
Total non-interest expense was $47.5 million during the first quarter of 2023, $50.7 million during the fourth quarter of 2022, and $49.9 million during the first quarter of 2022. Excluding the impact of severance expense, and amortization of other intangible assets, adjusted non-interest expense was $47.1 million during the first quarter of 2023, $50.3 million during the fourth quarter of 2022, and $49.3 million during the first quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).
The ratio of non-interest expense to average assets was 1.41% during the first quarter of 2023, compared to 1.56% during the linked quarter and 1.64% for the first quarter of 2022. Excluding the impact of severance expense, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.40% during the first quarter of 2023, compared to 1.55% during the linked quarter and 1.62% for the first quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).
The efficiency ratio was 50.1% during the first quarter of 2023, compared to 47.7% during the linked quarter and 51.8% during the first quarter of 2022. Excluding the impact of severance expense, amortization of other intangible assets and the net loss on sale of securities and other assets the adjusted efficiency ratio was 48.9% during the first quarter of 2023, compared to 47.3% during the linked quarter and 51.2% during the first quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).
Income Tax Expense
The reported effective tax rate for the first quarter of 2023 was 26.8%, compared to 27.5% for the fourth quarter of 2022, and 28.1% for the first quarter of 2022.
Credit Quality
Non-performing loans at March 31, 2023 were $31.5 million, 8% lower than the prior quarter.
A credit loss recovery of $3.6 million was recorded during the first quarter of 2023, compared to a credit loss provision of $0.3 million during the fourth quarter of 2022, and a credit loss recovery of $1.6 million during the first quarter of 2022. The credit loss recovery in the first quarter of 2023 was primarily associated with a reduction in reserves on pooled Purchased Credit Deteriorated ("PCD”) loans that were acquired as part of the Company’s merger of equals transaction in 2021.
Capital Management
The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of March 31, 2023.
During the first quarter of 2023, the Company repurchased 24,813 shares of its common stock, at a weighted average price of $29.33 per share.
Dividends per common share were $0.24 during the first quarter of 2023.
On March 9, 2023, the Company announced that its Board of Directors declared that the next quarterly cash dividend payable on April 24, 2023 (to common stockholders of record as of April 17, 2023) would be $0.25 per share. The dividend increase reflects Dime’s strong financial position.
Book value per common share was $27.70 at March 31, 2023 compared to $27.30 at December 31, 2022.
Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $23.52 at March 31, 2023 compared to $23.09 at December 31, 2022. Excluding the impact of accumulated other comprehensive loss, the adjusted tangible common book value per share was $26.06 at March 31, 2023 compared to $25.54 at December 31, 2022 (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 Friday, April 28, 2023, during which CEO O’Connor will discuss the Company’s first quarter 2023 financial performance, with a question-and-answer session to follow.
The conference call will be simultaneously webcast (listen only) and archived for a period of one year at https://events.q4inc.com/attendee/220992518.
Conference Call Details:
Dial-in for Live Call: United States: 1-833-470-1428 International: +1-929-526-1599 Access code: 136939 Telephone Replay: A recording will be available until Friday, May 12, 2023. United States: 1-866-813-9403 International: +44-204-525-0658 Access code: 385978
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 $13.8 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 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, 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, including conditions caused by the COVID-19 pandemic and any other public health emergency, 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; 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 Reddy Senior Executive Vice President – Chief Financial Officer 718-782-6200 extension 5909 DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands) March 31, December 31, March 31, 2023 2022 2022 Assets: Cash and due from banks $ 663,132 $ 169,297 $ 432,994 Securities available-for-sale, at fair value 926,812 950,587 1,277,036 Securities held-to-maturity 605,642 585,798 383,922 Loans held for sale 2,171 — 17,053 Loans held for investment, net: C&I 1,072,860 1,065,916 888,056 Owner-occupied commercial real estate 1,180,386 1,140,145 1,016,804 Total business loans 2,253,246 2,206,061 1,904,860 One-to-four family and cooperative/condominium apartment 799,321 773,321 669,099 Multifamily residential and residential mixed-use (1)(2) 4,118,439 4,026,826 3,371,267 Non-owner-occupied commercial real estate 3,330,582 3,317,485 2,930,114 Acquisition, development, and construction 221,015 229,663 329,349 Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans 2,070 5,796 32,953 Other loans 7,172 7,679 12,207 Allowance for credit losses (78,335 ) (83,507 ) (79,615 ) Total loans held for investment, net 10,653,510 10,483,324 9,170,234 Premises and fixed assets, net 45,863 46,749 49,940 Premises held for sale — — 556 Restricted stock 105,258 88,745 38,898 Bank Owned Life Insurance ("BOLI") 335,455 333,292 297,628 Goodwill 155,797 155,797 155,797 Other intangible assets 6,107 6,484 7,776 Operating lease assets 57,204 57,857 61,467 Derivative assets 130,294 154,485 71,826 Accrued interest receivable 49,926 48,561 38,456 Other assets 104,553 108,945 74,662 Total assets $ 13,841,724 $ 13,189,921 $ 12,078,245 Liabilities: Non-interest-bearing checking $ 3,122,245 $ 3,519,218 $ 3,953,627 Interest-bearing checking 908,988 827,454 902,360 Savings 2,333,445 2,260,101 1,376,092 Money market 2,686,290 2,532,270 3,416,249 Certificates of deposit 1,519,267 1,115,364 781,775 Total deposits 10,570,235 10,254,407 10,430,103 FHLBNY advances 1,498,000 1,131,000 50,000 Other short-term borrowings 2,068 1,360 2,853 Subordinated debt, net 200,261 200,283 197,050 Derivative cash collateral 120,680 153,040 64,450 Operating lease liabilities 59,757 60,340 63,600 Derivative liabilities 115,568 137,335 60,586 Other liabilities 83,902 82,573 54,316 Total liabilities 12,650,471 12,020,338 10,922,958 Stockholders' equity: Preferred stock, Series A 116,569 116,569 116,569 Common stock 416 416 416 Additional paid-in capital 493,801 495,410 494,969 Retained earnings 789,010 762,762 677,990 Accumulated other comprehensive loss ("AOCI"), net of deferred taxes (98,638 ) (94,379 ) (49,380 ) Unearned equity awards (13,468 ) (8,078 ) (10,562 ) Treasury stock, at cost (96,437 ) (103,117 ) (74,715 ) Total stockholders' equity 1,191,253 1,169,583 1,155,287 Total liabilities and stockholders' equity $ 13,841,724 $ 13,189,921 $ 12,078,245 (1) Includes loans underlying multifamily cooperatives. (2) 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 SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except share and per share amounts) Three Months Ended March 31, December 31, March 31, 2023 2022 2022 Interest income: Loans $ 128,439 $ 120,773 $ 86,420 Securities 8,431 7,652 7,131 Other short-term investments 3,802 1,444 368 Total interest income 140,672 129,869 93,919 Interest expense: Deposits and escrow 37,272 22,017 2,531 Borrowed funds 16,171 9,783 2,278 Derivative cash collateral 1,477 1,265 1 Total interest expense 54,920 33,065 4,810 Net interest income 85,752 96,804 89,109 (Recovery) provision for credit losses (3,648 ) 335 (1,592 ) Net interest income after (recovery) provision 89,400 96,469 90,701 Non-interest income: Service charges and other fees 3,814 3,945 4,058 Title fees 292 453 421 Loan level derivative income 3,133 1,397 6 BOLI income 2,163 2,187 1,839 Gain on sale of SBA loans 516 621 242 Gain on sale of residential loans 48 55 148 Net loss on sale of securities and other assets (1,447 ) — — Other 482 809 489 Total non-interest income 9,001 9,467 7,203 Non-interest expense: Salaries and employee benefits 26,634 31,632 30,834 Severance 25 5 — Occupancy and equipment 7,373 7,356 7,584 Data processing costs 4,238 4,023 3,805 Marketing 1,449 1,559 1,295 Professional services 1,923 1,831 2,094 Federal deposit insurance premiums 1,873 800 1,150 Amortization of other intangible assets 377 431 586 Other 3,583 3,065 2,540 Total non-interest expense 47,475 50,702 49,888 Income before taxes 50,926 55,234 48,016 Income tax expense 13,623 15,175 13,485 Net income 37,303 40,059 34,531 Preferred stock dividends 1,821 1,821 1,821 Net income available to common stockholders $ 35,482 $ 38,238 $ 32,710 Earnings per common share ("EPS"): Basic $ 0.92 $ 0.99 $ 0.82 Diluted $ 0.92 $ 0.99 $ 0.82 Average common shares outstanding for diluted EPS 38,151,465 38,123,221 39,251,246 DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED SELECTED FINANCIAL HIGHLIGHTS (Dollars in thousands except per share amounts) At or For the Three Months Ended March 31, December 31, March 31, 2023 2022 2022 Per Share Data: Reported EPS (Diluted) $ 0.92 $ 0.99 $ 0.82 Cash dividends paid per common share 0.24 0.24 0.24 Book value per common share 27.70 27.30 26.32 Tangible common book value per share (1) 23.52 23.09 22.18 Tangible common book value per share excluding AOCI (1) 26.06 25.54 23.43 Common shares outstanding 38,804 38,573 39,460 Dividend payout ratio 26.09 % 24.24 % 29.27 % Performance Ratios (Based upon Reported Net Income): Return on average assets 1.11 % 1.23 % 1.13 % Return on average equity 12.50 13.72 11.53 Return on average tangible common equity (1) 15.62 17.34 14.44 Net interest margin 2.74 3.15 3.19 Non-interest expense to average assets 1.41 1.56 1.64 Efficiency ratio (1) 50.1 47.7 51.8 Effective tax rate 26.75 27.47 28.08 Balance Sheet Data: Average assets $ 13,449,746 $ 12,985,203 $ 12,199,721 Average interest-earning assets 12,685,235 12,198,905 11,333,805 Average tangible common equity (1) 914,994 888,973 916,971 Loan-to-deposit ratio at end of period 101.5 103.0 88.7 Capital Ratios and Reserves - Consolidated: (3) Tangible common equity to tangible assets (1) 6.67 % 6.84 % 7.35 % Tangible common equity excluding AOCI to tangible assets (1) 7.39 7.56 7.76 Tangible equity to tangible assets (1) 7.52 7.73 8.32 Tangible equity excluding AOCI to tangible assets (1) 8.25 8.46 8.74 Tier 1 common equity ratio 9.32 9.15 9.56 Tier 1 risk-based capital ratio 10.39 10.23 10.76 Total risk-based capital ratio 12.98 12.89 13.48 Tier 1 leverage ratio 8.43 8.53 8.65 CRE consolidated concentration ratio (2) 554 554 519 Allowance for credit losses/ Total loans 0.73 0.79 0.86 Allowance for credit losses/ Non-performing loans 248.34 243.91 221.39 (1) See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets. (2) The CRE consolidated 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. March 31, 2023 amounts are preliminary pending completion and filing of the Company’s regulatory reports. (3) March 31, 2023 amounts are preliminary pending completion and filing of the Company’s regulatory reports. DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME (Dollars in thousands) Three Months Ended March 31, 2023 December 31, 2022 March 31, 2022 Average Average Average Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Interest-earning assets: Real estate loans $ 9,560,755 $ 109,589 4.65 % $ 9,370,045 $ 104,218 4.41 % $ 8,296,732 $ 76,437 3.74 % Commercial and industrial loans 1,045,048 18,735 7.27 957,151 16,430 6.81 916,090 9,786 4.33 Other loans 7,550 115 6.18 8,269 125 6.00 15,658 197 5.10 Securities 1,699,846 8,431 2.01 1,663,969 7,652 1.82 1,726,189 7,131 1.68 Other short-term investments 372,036 3,802 4.14 199,471 1,444 2.87 379,136 368 0.39 Total interest-earning assets 12,685,235 140,672 4.50 % 12,198,905 129,869 4.22 % 11,333,805 93,919 3.36 % Non-interest-earning assets 764,511 786,298 865,916 Total assets $ 13,449,746 $ 12,985,203 $ 12,199,721 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Interest-bearing checking $ 843,108 $ 1,523 0.73 % $ 845,530 $ 1,174 0.55 % $ 870,889 $ 367 0.17 % Money market 2,699,640 13,849 2.08 2,469,177 6,620 1.06 3,632,438 973 0.11 Savings 2,327,126 14,599 2.54 2,234,968 9,889 1.76 1,256,701 207 0.07 Certificates of deposit 1,167,736 7,301 2.54 1,063,053 4,334 1.62 824,883 984 0.48 Total interest-bearing deposits 7,037,610 37,272 2.15 6,612,728 22,017 1.32 6,584,911 2,531 0.16 FHLBNY advances 1,255,700 13,500 4.36 724,902 6,383 3.49 33,889 77 0.92 Subordinated debt, net 200,276 2,553 5.17 200,298 2,553 5.06 197,080 2,201 4.53 Other short-term borrowings 11,827 118 4.05 90,275 847 3.72 2,459 — — Total borrowings 1,467,803 16,171 4.47 1,015,475 9,783 3.82 233,428 2,278 3.96 Derivative cash collateral 135,641 1,477 4.42 157,898 1,265 3.18 14,335 1 — Total interest-bearing liabilities 8,641,054 54,920 2.58 % 7,786,101 33,065 1.68 % 6,832,674 4,810 0.29 % Non-interest-bearing checking 3,341,707 3,755,395 3,979,741 Other non-interest-bearing liabilities 273,281 275,636 189,843 Total liabilities 12,256,042 11,817,132 11,002,258 Stockholders' equity 1,193,704 1,168,071 1,197,463 Total liabilities and stockholders' equity $ 13,449,746 $ 12,985,203 $ 12,199,721 Net interest income $ 85,752 $ 96,804 $ 89,109 Net interest rate spread 1.92 % 2.54 % 3.07 % Net interest margin 2.74 % 3.15 % 3.19 % Deposits (including non-interest-bearing checking accounts) $ 10,379,317 $ 37,272 1.46 % $ 10,368,123 $ 22,017 0.84 % $ 10,564,652 $ 2,531 0.10 % DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS (Dollars in thousands) At or For the Three Months Ended March 31, December 31, March 31, Asset Quality Detail 2023 2022 2022 Non-performing loans ("NPLs") One-to-four family residential, including condominium and cooperative apartment $ 2,808 $ 3,203 $ 5,241 Multifamily residential and residential mixed-use — — — Commercial real estate 8,068 8,332 4,972 Acquisition, development, and construction 657 657 665 C&I 19,912 21,946 25,000 Other 99 99 84 Total Non-accrual loans $ 31,544 $ 34,237 $ 35,962 Total Non-performing assets ("NPAs") $ 31,544 $ 34,237 $ 35,962 Loans 90 days delinquent and accruing ("90+ Delinquent") One-to-four family residential, including condominium and cooperative apartment $ — $ — $ 341 Multifamily residential and residential mixed-use — — — Commercial real estate — — — Acquisition, development, and construction — — — C&I — — 839 Other — — — 90+ Delinquent $ — $ — $ 1,180 NPAs and 90+ Delinquent $ 31,544 $ 34,237 $ 37,142 NPAs and 90+ Delinquent / Total assets 0.23% 0.26% 0.31% Net charge-offs ("NCOs") $ 1,541 $ 185 $ 2,583 NCOs / Average loans (1) 0.06% 0.01% 0.11% (1) Calculated based on annualized NCOs to average loans, excluding loans held for sale. DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES NON-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 provide 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 severance:
Three Months Ended March 31, December 31, March 31, 2023 2022 2022 Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders Reported net income available to common stockholders $ 35,482 $ 38,238 $ 32,710 Adjustments to net income (1): Net loss on sale of securities and other assets 1,447 — — Severance 25 5 — Income tax effect of adjustments and other tax adjustments (386 ) — — Adjusted net income available to common stockholders (non-GAAP) $ 36,568 $ 38,243 $ 32,710 Adjusted Ratios (Based upon non-GAAP as calculated above) Adjusted EPS (Diluted) $ 0.95 $ 0.99 $ 0.82 Adjusted return on average assets 1.14 % 1.23 % 1.13 % Adjusted return on average equity 12.86 13.72 11.53 Adjusted return on average tangible common equity 16.10 17.34 14.44 Adjusted non-interest expense to average assets 1.40 1.55 1.62 Adjusted efficiency ratio 48.9 47.3 51.2 (1) Adjustments to net income are taxed at the Company's statutory tax rate of approximately 30% unless otherwise noted. 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 March 31, December 31, March 31, 2023 2022 2022 Operating expense as a % of average assets - as reported 1.41 % 1.56 % 1.64 % Amortization of other intangible assets (0.01 ) (0.01 ) (0.02 ) Adjusted operating expense as a % of average assets (non-GAAP) 1.40 % 1.55 % 1.62 % The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):
Three Months Ended March 31, December 31, March 31, 2023 2023 2022 Efficiency ratio - as reported (non-GAAP) (1) 50.1 % 47.7 % 51.8 % Non-interest expense - as reported $ 47,475 $ 50,702 $ 49,888 Severance (25 ) (5 ) — Amortization of other intangible assets (377 ) (431 ) (586 ) Adjusted non-interest expense (non-GAAP) $ 47,073 $ 50,266 $ 49,302 Net interest income - as reported $ 85,752 $ 96,804 $ 89,109 Non-interest income - as reported $ 9,001 $ 9,467 $ 7,203 Net loss on sale of securities and other assets 1,447 — — Adjusted non-interest income (non-GAAP) $ 10,448 $ 9,467 $ 7,203 Adjusted total revenues for adjusted efficiency ratio (non-GAAP) $ 96,200 $ 106,271 $ 96,312 Adjusted efficiency ratio (non-GAAP) (2) 48.9 % 47.3 % 51.2 % (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):March 31, December 31, March 31, 2023 2022 2022 Reconciliation of Tangible Assets: Total assets $ 13,841,724 $ 13,189,921 $ 12,078,245 Goodwill (155,797 ) (155,797 ) (155,797 ) Other intangible assets (6,107 ) (6,484 ) (7,776 ) Tangible assets (non-GAAP) $ 13,679,820 $ 13,027,640 $ 11,914,672 Reconciliation of Tangible Common Equity - Consolidated: Total stockholders' equity $ 1,191,253 $ 1,169,583 $ 1,155,287 Goodwill (155,797 ) (155,797 ) (155,797 ) Other intangible assets (6,107 ) (6,484 ) (7,776 ) Tangible equity (non-GAAP) 1,029,349 1,007,302 991,714 Preferred stock, net (116,569 ) (116,569 ) (116,569 ) Tangible common equity (non-GAAP) $ 912,780 $ 890,733 $ 875,145 Tangible common equity (non-GAAP) $ 912,780 $ 890,733 $ 875,145 AOCI, net of deferred taxes 98,638 94,379 49,380 Tangible common equity excluding AOCI (non-GAAP) $ 1,011,418 $ 985,112 $ 924,525 Tangible equity (non-GAAP) $ 1,029,349 $ 1,007,302 $ 991,714 AOCI, net of deferred taxes 98,638 94,379 49,380 Tangible equity excluding AOCI (non-GAAP) $ 1,127,987 $ 1,101,681 $ 1,041,094 Common shares outstanding 38,804 38,573 39,460 Tangible common equity to tangible assets (non-GAAP) 6.67 % 6.84 % 7.35 % Tangible common equity excluding AOCI to tangible assets (non-GAAP) 7.39 7.56 7.76 Tangible equity to tangible assets (non-GAAP) 7.52 7.73 8.32 Tangible equity excluding AOCI to tangible assets (non-GAAP) 8.25 8.46 8.74 Book value per share $ 27.70 $ 27.30 $ 26.32 Tangible common book value per share (non-GAAP) 23.52 23.09 22.18 Tangible common book value per share excluding AOCI (non-GAAP) 26.06 25.54 23.43 
