Delaware
|
11-3297463
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. employer identification number)
|
|
300 Cadman Plaza West, 8th Floor, Brooklyn, NY
|
11201
|
|
(Address of principal executive offices)
|
(Zip Code)
|
LARGE ACCELERATED FILER ☐
|
ACCELERATED FILER ☒
|
NON -ACCELERATED FILER ☐
|
SMALLER REPORTING COMPANY ☐
|
EMERGING GROWTH COMPANY ☐
|
Classes of Common Stock
|
Number of Shares Outstanding at November 8, 2018
|
|
$.01 Par Value
|
36,445,304
|
Page
|
||
Item 1.
|
||
4
|
||
5
|
||
6
|
||
7
|
||
9
|
||
10
|
||
Item 2.
|
31
|
|
Item 3.
|
43
|
|
Item 4.
|
44
|
|
PART II - OTHER INFORMATION
|
||
Item 1.
|
45
|
|
Item 1A.
|
45
|
|
Item 2.
|
45
|
|
Item 3.
|
45
|
|
Item 4.
|
45
|
|
Item 5.
|
45
|
|
Item 6.
|
46
|
|
47
|
● |
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;
|
● |
the net interest margin is subject to material short-term fluctuation based upon market rates;
|
● |
changes in deposit flows, loan demand or real estate values may adversely affect the business of Dime Community Bank (the “Bank”);
|
● |
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 business or financial condition;
|
● |
general economic conditions, 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;
|
● |
legislative or regulatory changes may adversely affect the Company’s business;
|
● |
technological changes may be more difficult or expensive than the Company anticipates;
|
● |
our ability to successfully integrate acquired entities, if any;
|
● |
breaches, failures and interruptions in information tehcnology (“IT”) systems and IT security;
|
● |
ability to retain key employees/executive management team;
|
● |
success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates;
|
● |
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; and
|
● |
the risks referred to in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017 as updated by our Quarterly Reports on
Form 10-Q.
|
September
30, 2018
|
December 31,
2017
|
|||||||
ASSETS:
|
||||||||
Cash and due from banks
|
$
|
132,822
|
$
|
169,455
|
||||
Mortgage-backed securities (“MBS”) available-for-sale, at fair value (See Note 7)
|
465,490
|
351,384
|
||||||
Marketable equity securities, at fair value
|
6,111
|
—
|
||||||
Investment securities available-for-sale, at fair value (See Note 7)
|
5,088
|
4,006
|
||||||
Trading securities
|
—
|
2,715
|
||||||
Loans:
|
||||||||
Real estate
|
5,204,462
|
5,464,067
|
||||||
Commercial and industrial (“C&I”) loans
|
207,743
|
136,671
|
||||||
Other loans
|
1,162
|
1,379
|
||||||
Less allowance for loan losses
|
(21,330
|
)
|
(21,033
|
)
|
||||
Total loans, net
|
5,392,037
|
5,581,084
|
||||||
Premises and fixed assets, net
|
24,736
|
24,326
|
||||||
Federal Home Loan Bank of New York (“FHLBNY”) capital stock
|
53,842
|
59,696
|
||||||
Bank Owned Life Insurance (“BOLI”)
|
110,706
|
108,545
|
||||||
Goodwill
|
55,638
|
55,638
|
||||||
Other assets
|
47,723
|
46,611
|
||||||
Total Assets
|
$
|
6,294,193
|
$
|
6,403,460
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Due to depositors:
|
||||||||
Interest-bearing deposits
|
$
|
4,013,470
|
$
|
4,095,701
|
||||
Non-interest-bearing deposits
|
368,780
|
307,746
|
||||||
Total deposits
|
4,382,250
|
4,403,447
|
||||||
Escrow and other deposits
|
119,796
|
82,168
|
||||||
FHLBNY advances
|
1,042,925
|
1,170,000
|
||||||
Subordinated debt, net
|
113,722
|
113,612
|
||||||
Other liabilities
|
31,923
|
35,666
|
||||||
Total Liabilities
|
5,690,616
|
5,804,893
|
||||||
Stockholders’ Equity:
|
||||||||
Preferred stock ($0.01 par, 9,000,000 shares authorized, none issued or outstanding at September 30, 2018
and December 31, 2017)
|
—
|
—
|
||||||
Common stock ($0.01 par, 125,000,000 shares authorized, 53,690,825 shares and 53,624,453 shares issued at
September 30, 2018 and December 31, 2017, respectively, and 36,612,153 shares and 37,419,070 shares outstanding at September 30, 2018 and December 31, 2017, respectively)
|
537
|
536
|
||||||
Additional paid-in capital
|
277,718
|
276,730
|
||||||
Retained earnings
|
558,357
|
535,130
|
||||||
Accumulated other comprehensive loss, net of deferred taxes
|
(5,734
|
)
|
(3,641
|
)
|
||||
Unearned Restricted Stock Award common stock
|
(4,699
|
)
|
(2,894
|
)
|
||||
Common stock held by Benefit Maintenance Plan (“BMP”)
|
(1,509
|
)
|
(2,736
|
)
|
||||
Treasury stock, at cost (17,078,672 shares and 16,205,383 shares at September 30, 2018 and December 31,
2017, respectively)
|
(221,093
|
)
|
(204,558
|
)
|
||||
Total Stockholders’ Equity
|
603,577
|
598,567
|
||||||
Total Liabilities and Stockholders’ Equity
|
$
|
6,294,193
|
$
|
6,403,460
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans secured by real estate
|
$
|
47,486
|
$
|
51,621
|
$
|
144,889
|
$
|
153,233
|
||||||||
C&I loans
|
2,729
|
1,043
|
6,541
|
1,558
|
||||||||||||
Other loans
|
18
|
19
|
55
|
55
|
||||||||||||
MBS
|
2,852
|
27
|
7,515
|
55
|
||||||||||||
Investment securities
|
59
|
108
|
123
|
462
|
||||||||||||
Other short-term investments
|
1,480
|
811
|
4,537
|
2,139
|
||||||||||||
Total interest income
|
54,624
|
53,629
|
163,660
|
157,502
|
||||||||||||
Interest expense:
|
||||||||||||||||
Deposits and escrow
|
13,361
|
9,408
|
36,100
|
28,424
|
||||||||||||
Borrowed funds
|
6,235
|
5,763
|
18,384
|
15,080
|
||||||||||||
Total interest expense
|
19,596
|
15,171
|
54,484
|
43,504
|
||||||||||||
Net interest income
|
35,028
|
38,458
|
109,176
|
113,998
|
||||||||||||
Provision for loan losses
|
335
|
23
|
1,641
|
1,520
|
||||||||||||
Net interest income after provision for loan losses
|
34,693
|
38,435
|
107,535
|
112,478
|
||||||||||||
Non-interest income:
|
||||||||||||||||
Service charges and other fees
|
1,233
|
948
|
3,443
|
2,661
|
||||||||||||
Net mortgage banking income
|
79
|
69
|
292
|
150
|
||||||||||||
Net gain on sale of securities and other
assets(1)
|
99
|
2,635
|
1,484
|
2,769
|
||||||||||||
Gain on sale of loans
|
18
|
—
|
143
|
—
|
||||||||||||
Income from BOLI
|
729
|
558
|
2,161
|
1,654
|
||||||||||||
Other
|
63
|
73
|
179
|
574
|
||||||||||||
Total non-interest income
|
2,221
|
4,283
|
7,702
|
7,808
|
||||||||||||
Non-interest expense:
|
||||||||||||||||
Salaries and employee benefits
|
10,963
|
8,593
|
33,024
|
27,577
|
||||||||||||
Stock benefit plan compensation expense
|
403
|
353
|
1,198
|
1,030
|
||||||||||||
Occupancy and equipment
|
3,845
|
3,492
|
11,414
|
10,620
|
||||||||||||
Data processing costs
|
1,823
|
3,392
|
5,374
|
6,502
|
||||||||||||
Marketing
|
975
|
1,467
|
2,168
|
4,399
|
||||||||||||
Federal deposit insurance premiums
|
382
|
875
|
1,521
|
2,242
|
||||||||||||
Loss from extinguishment of debt
|
—
|
1,272
|
—
|
1,272
|
||||||||||||
Other
|
3,194
|
2,731
|
9,446
|
8,771
|
||||||||||||
Total non-interest expense
|
21,585
|
22,175
|
64,145
|
62,413
|
||||||||||||
Income before income taxes
|
15,329
|
20,543
|
51,092
|
57,873
|
||||||||||||
Income tax expense
|
3,547
|
7,230
|
12,244
|
21,414
|
||||||||||||
Net income
|
$
|
11,782
|
$
|
13,313
|
$
|
38,848
|
$
|
36,459
|
||||||||
Earnings per Share:
|
||||||||||||||||
Basic
|
$
|
0.32
|
$
|
0.36
|
$
|
1.04
|
$
|
0.97
|
||||||||
Diluted
|
$
|
0.32
|
$
|
0.35
|
$
|
1.04
|
$
|
0.97
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net Income
|
$
|
11,782
|
$
|
13,313
|
$
|
38,848
|
$
|
36,459
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in unrealized holding loss on securities held-to-maturity and transferred securities
|
—
|
1,235
|
—
|
1,299
|
||||||||||||
Change in unrealized holding loss on securities available-for-sale
|
(2,774
|
)
|
27
|
(7,011
|
)
|
251
|
||||||||||
Change in pension and other postretirement obligations
|
287
|
355
|
728
|
1,012
|
||||||||||||
Change in unrealized gain on derivatives
|
754
|
92
|
3,330
|
(326
|
)
|
|||||||||||
Other comprehensive gain (loss) before income taxes
|
(1,733
|
)
|
1,709
|
(2,953
|
)
|
2,236
|
||||||||||
Deferred tax expense (benefit)
|
(577
|
)
|
773
|
(981
|
)
|
1,008
|
||||||||||
Other comprehensive income (loss), net of tax
|
(1,156
|
)
|
936
|
(1,972
|
)
|
1,228
|
||||||||||
Total comprehensive income
|
$
|
10,626
|
$
|
14,249
|
$
|
36,876
|
$
|
37,687
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||||||||
Number
of Shares
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated Other
Comprehensive
Loss,
Net of Deferred
Taxes
|
Unearned
Stock Award
Common
Stock
|
Common
Stock
Held by
BMP
|
Treasury
Stock, at
cost
|
Total
Stockholders’
Equity
|
||||||||||||||||||||||||||||
Beginning balance as of January 1, 2018
|
37,419,070
|
$
|
536
|
$
|
276,730
|
$
|
535,130
|
$
|
(3,641
|
)
|
$
|
(2,894
|
)
|
$
|
(2,736
|
)
|
$
|
(204,558
|
)
|
$
|
598,567
|
|||||||||||||||
Reclassification of unrealized gains and losses on marketable equity securities
|
—
|
—
|
—
|
153
|
(153
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||
Adjusted beginning balance as of January 1, 2018
|
37,419,070
|
536
|
276,730
|
535,283
|
(3,794
|
)
|
(2,894
|
)
|
(2,736
|
)
|
(204,558
|
)
|
598,567
|
|||||||||||||||||||||||
Net Income
|
—
|
—
|
—
|
38,848
|
—
|
—
|
—
|
—
|
38,848
|
|||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
—
|
—
|
—
|
—
|
(1,972
|
)
|
—
|
—
|
—
|
(1,972
|
)
|
|||||||||||||||||||||||||
Exercise of stock options, net
|
57,327
|
1
|
1,118
|
—
|
—
|
—
|
—
|
(165
|
)
|
954
|
||||||||||||||||||||||||||
Release of shares, net of forfeitures
|
158,851
|
—
|
1,022
|
—
|
—
|
(3,003
|
)
|
—
|
1,994
|
13
|
||||||||||||||||||||||||||
Stock-based compensation
|
—
|
—
|
—
|
—
|
—
|
1,198
|
—
|
—
|
1,198
|
|||||||||||||||||||||||||||
Shares received to satisfy distribution of retirement benefits
|
(49,895
|
)
|
—
|
(1,152
|
)
|
—
|
—
|
—
|
1,227
|
(958
|
)
|
(883
|
)
|
|||||||||||||||||||||||
Reclassification of tax effects on other comprehensive income (loss)
|
—
|
—
|
—
|
(32
|
)
|
32
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||
Cash dividends declared and paid
|
—
|
—
|
—
|
(15,742
|
)
|
—
|
—
|
—
|
—
|
(15,742
|
)
|
|||||||||||||||||||||||||
Repurchase of shares of Common Stock
|
(973,200
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
(17,406
|
)
|
(17,406
|
)
|
||||||||||||||||||||||||
Ending balance as of September 30, 2018
|
36,612,153
|
$
|
537
|
$
|
277,718
|
$
|
558,357
|
$
|
(5,734
|
)
|
$
|
(4,699
|
)
|
$
|
(1,509
|
)
|
$
|
(221,093
|
)
|
$
|
603,577
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||||||||||||||||
Number
of Shares
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss,
Net of Deferred
Taxes
|
Unearned
Stock
Award
Common
Stock
|
Common
Stock
Held by
BMP
|
Treasury
Stock, at
cost
|
Total
Stockholders’
Equity
|
||||||||||||||||||||||||||||
Beginning balance as of January 1, 2017
|
37,455,853
|
$
|
536
|
$
|
278,356
|
$
|
503,539
|
$
|
(5,939
|
)
|
$
|
(1,932
|
)
|
$
|
(6,859
|
)
|
$
|
(201,833
|
)
|
$
|
565,868
|
|||||||||||||||
Net Income
|
—
|
—
|
—
|
36,459
|
—
|
—
|
—
|
—
|
36,459
|
|||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
—
|
—
|
—
|
—
|
1,228
|
—
|
—
|
—
|
1,228
|
|||||||||||||||||||||||||||
Exercise of stock options
|
45,174
|
—
|
680
|
—
|
—
|
—
|
—
|
—
|
680
|
|||||||||||||||||||||||||||
Release of shares, net of forfeitures
|
152,215
|
—
|
1,325
|
—
|
—
|
(2,874
|
)
|
(170
|
)
|
1,917
|
198
|
|||||||||||||||||||||||||
Stock-based compensation
|
—
|
—
|
—
|
—
|
—
|
1,270
|
—
|
—
|
1,270
|
|||||||||||||||||||||||||||
Shares received to satisfy distribution of retirement benefits
|
(230,358
|
)
|
—
|
(3,687
|
)
|
—
|
—
|
—
|
4,293
|
(4,511
|
)
|
(3,905
|
)
|
|||||||||||||||||||||||
Cash dividends declared and paid
|
—
|
—
|
—
|
(15,761
|
)
|
—
|
—
|
—
|
—
|
(15,761
|
)
|
|||||||||||||||||||||||||
Ending balance as of September 30, 2017
|
37,422,884
|
$
|
536
|
$
|
276,674
|
$
|
524,237
|
$
|
(4,711
|
)
|
$
|
(3,536
|
)
|
$
|
(2,736
|
)
|
$
|
(204,427
|
)
|
$
|
586,037
|
Nine Months Ended September
30,
|
||||||||
2018
|
2017
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net Income
|
$
|
38,848
|
$
|
36,459
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Net gain recognized on marketable equity and trading securities
|
(110
|
)
|
(2,769
|
)
|
||||
Net gain on sale of loans held for sale
|
(143
|
)
|
—
|
|||||
Net gain on sale of MBS available-for-sale
|
(1,374
|
)
|
—
|
|||||
Net depreciation, amortization and accretion
|
3,054
|
2,697
|
||||||
Stock plan compensation
|
1,198
|
1,270
|
||||||
Provision for loan losses
|
1,641
|
1,520
|
||||||
Loss from extinguishment of debt
|
—
|
1,272
|
||||||
Proceeds from sale of loans held for sale
|
2,283
|
—
|
||||||
Increase in cash surrender value of BOLI
|
(2,161
|
)
|
(1,654
|
)
|
||||
Deferred income tax provision
|
(1,910
|
)
|
(2,869
|
)
|
||||
Reduction in credit related other than temporary impairment (“OTTI”) amortized through interest income
|
—
|
(60
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
Decrease (Increase) in other assets
|
5,129
|
(351
|
)
|
|||||
Increase in other liabilities
|
(3,010
|
)
|
(10
|
)
|
||||
Net cash provided by Operating activities
|
43,445
|
35,505
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from sales of marketable equity securities
|
923
|
—
|
||||||
Proceeds from sale of investment securities held to maturity
|
—
|
9,167 |
||||||
Proceeds from sales of investment securities available-for-sale
|
— | 240 |
||||||
Proceeds from sales of MBS available-for-sale
|
158,758 |
— | ||||||
Proceeds from sales of trading securities
|
— | 4,629 |
||||||
Proceeds from calls and principal repayments of MBS available-for-sale
|
51,472 |
|
38 |
|
||||
Purchases of investment securities available-for-sale
|
(5,071
|
)
|
(242 |
) |
||||
Purchases of marketable equity securities
|
(202
|
)
|
— | |
||||
Purchases of MBS available-for-sale
|
(330,987 |
) |
(23,995 |
) |
||||
Proceeds from sale of portfolio loans held for sale
|
— | 4,471 |
|
|||||
Net decrease (increase) in loans
|
185,239 |
|
(346,856 |
)
|
||||
Purchases of fixed assets, net
|
(2,356
|
) |
(7,024
|
)
|
||||
Redemption (purchase) of FHLBNY capital stock, net | 5,854 |
(17,345 |
) |
|||||
Net cash provided by (used in) Investing Activities
|
63,630
|
(376,917
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Decrease in due to depositors
|
(21,197
|
)
|
(24,233
|
)
|
||||
Increase in escrow and other deposits
|
37,628
|
14,764
|
||||||
Repayments of FHLBNY advances
|
(2,519,600
|
)
|
(3,044,575
|
)
|
||||
Proceeds from FHLBNY advances
|
2,392,525
|
3,430,950
|
||||||
Proceeds from exercise of stock options
|
954
|
680
|
||||||
Release of stock for benefit plan awards
|
13
|
198
|
||||||
BMP ESOP shares received to satisfy distribution of retirement benefits
|
(883
|
)
|
(3,905
|
)
|
||||
Treasury shares repurchased
|
(17,406
|
)
|
—
|
|||||
Cash dividends paid to stockholders, net
|
(15,742
|
)
|
(15,761
|
)
|
||||
Proceeds from Subordinated debt issuance, net
|
—
|
113,531
|
||||||
Repayments of Trust Preferred securities
|
— | (70,680 |
) |
|||||
Net cash provided by (used in) Financing Activities
|
(143,708
|
)
|
400,969
|
|||||
DECREASE (INCREASE) IN CASH AND CASH EQUIVALENTS
|
(36,633
|
)
|
59,557
|
|||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
169,455
|
113,503
|
||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
132,822
|
$
|
173,060
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid for income taxes
|
$
|
7,928
|
$
|
26,415
|
||||
Cash paid for interest
|
52,450
|
42,794
|
||||||
Loans transferred to held for sale
|
2,140
|
4,471
|
||||||
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity
|
—
|
50
|
||||||
Net decrease in non-credit component of OTTI
|
—
|
20
|
||||||
Reductions for previous credit losses realized on securities sold
|
—
|
1,229
|
1. |
NATURE OF OPERATIONS
|
2. |
SUMMARY OF ACCOUNTING POLICIES
|
3. |
RECENT ACCOUNTING PRONOUNCEMENTS
|
4. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
Securities
Held-to-
Maturity
and Transferred
Securities
|
Securities
Available-for-
Sale
|
Defined
Benefit
Plans
|
Derivative
Asset
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||||||||||||
Balance as of January 1, 2018
|
$
|
—
|
$
|
285
|
$
|
(6,633
|
)
|
$
|
2,707
|
$
|
(3,641
|
)
|
||||||||
Reclassification of unrealized gains and losses on available-for-sale equity securities (1)
|
—
|
(153
|
)
|
—
|
—
|
(153
|
)
|
|||||||||||||
Adjusted balance as of January 1, 2018
|
—
|
132
|
(6,633
|
)
|
2,707
|
(3,794
|
)
|
|||||||||||||
Other comprehensive income (loss) before reclassifications
|
—
|
(3,928
|
)
|
161
|
2,711
|
(1,056
|
)
|
|||||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
(932
|
)
|
329
|
(313
|
)
|
(916
|
)
|
||||||||||||
Net other comprehensive income during the period
|
—
|
(4,860
|
)
|
490
|
2,398
|
(1,972
|
)
|
|||||||||||||
Reclassification of tax effects on other comprehensive income (2)
|
—
|
—
|
32
|
—
|
32
|
|||||||||||||||
Balance as of September 30, 2018
|
$
|
—
|
$
|
(4,728
|
)
|
$
|
(6,111
|
)
|
$
|
5,105
|
$
|
(5,734
|
)
|
|||||||
Balance as of January 1, 2017
|
$
|
(713
|
)
|
$
|
(92
|
)
|
$
|
(6,910
|
)
|
$
|
1,776
|
$
|
(5,939
|
)
|
||||||
Other comprehensive income (loss) before reclassifications
|
39
|
133
|
—
|
(313
|
)
|
(141
|
)
|
|||||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
674
|
—
|
560
|
135
|
1,369
|
|||||||||||||||
Net other comprehensive income during the period
|
713
|
133
|
560
|
(178
|
)
|
1,228
|
||||||||||||||
Balance as of September 30, 2017
|
$
|
—
|
$
|
41
|
$
|
(6,350
|
)
|
$
|
1,598
|
$
|
(4,711
|
)
|
(1) |
Represents the impact of adopting ASU 2016-01 allowing the reclassification of unrealized gains and losses on available-for-sale equity securities from accumulated other
comprehensive income to retained earnings.
|
(2) |
Represents the impact of adopting ASU 2018-02 allowing the reclassification of certain stranded income tax effects in accumulated other comprehensive income resulting
from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) from accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act (or
portion thereof) is recorded. The amount of the reclassification is an adjustment for the difference between the historical corporate income tax rate (35%) and the newly enacted 21% corporate income tax rate.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Change in unrealized holding loss on securities held-to-maturity and transferred securities:
|
||||||||||||||||
Accretion of previously recognized non-credit component of OTTI
|
$
|
—
|
$
|
3
|
$
|
—
|
$
|
20
|
||||||||
Change in unrealized loss on securities transferred to held-to-maturity
|
—
|
3
|
—
|
50
|
||||||||||||
Reclassification adjustment for net gains included in net gain on securities and other assets
|
—
|
1,229
|
—
|
1,229
|
||||||||||||
Net change
|
—
|
1,235
|
—
|
1,299
|
||||||||||||
Tax expense
|
—
|
558
|
—
|
586
|
||||||||||||
Net change in unrealized holding loss on securities held-to-maturity and transferred securities
|
—
|
677
|
—
|
713
|
||||||||||||
Change in unrealized holding gain on securities available-for-sale:
|
||||||||||||||||
Change in net unrealized gain during the period
|
(2,770
|
)
|
27
|
(5,637
|
)
|
251
|
||||||||||
Reclassification adjustment for net gains included in net gain on securities and other assets
|
(4
|
)
|
—
|
(1,374
|
)
|
—
|
||||||||||
Net change
|
(2,774
|
)
|
27
|
(7,011
|
)
|
251
|
||||||||||
Tax expense (benefit)
|
(767
|
)
|
19
|
(2,151
|
)
|
118
|
||||||||||
Net change in unrealized holding gain on securities available-for-sale
|
(2,007
|
)
|
8
|
(4,860
|
)
|
133
|
||||||||||
Change in pension and other postretirement obligations:
|
||||||||||||||||
Reclassification adjustment for expense included in other expense
|
162
|
355
|
485
|
1,012
|
||||||||||||
Change in the net actuarial gain or loss
|
125
|
—
|
243
|
—
|
||||||||||||
Net change
|
287
|
355
|
728
|
1,012
|
||||||||||||
Tax expense
|
94
|
160
|
238
|
452
|
||||||||||||
Net change in pension and other postretirement obligations
|
193
|
195
|
490
|
560
|
||||||||||||
Change in unrealized loss on derivatives:
|
||||||||||||||||
Change in net unrealized loss during the period
|
966
|
24
|
3,792
|
(573
|
)
|
|||||||||||
Reclassification adjustment for expense included in interest expense
|
(212
|
)
|
68
|
(462
|
)
|
247
|
||||||||||
Net change
|
754
|
92
|
3,330
|
(326
|
)
|
|||||||||||
Tax expense (benefit)
|
96
|
36
|
932
|
(148
|
)
|
|||||||||||
Net change in unrealized loss on derivatives
|
658
|
56
|
2,398
|
(178
|
)
|
|||||||||||
Other comprehensive income (loss)
|
$
|
(1,156
|
)
|
$
|
936
|
$
|
(1,972
|
)
|
$
|
1,228
|
5. |
EARNINGS PER SHARE (“EPS”)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net income per the Consolidated Statements of Income
|
$
|
11,782
|
$
|
13,313
|
$
|
38,848
|
$
|
36,459
|
||||||||
Less: Dividends paid and earnings allocated to participating securities
|
(41
|
)
|
(34
|
)
|
(113
|
)
|
(97
|
)
|
||||||||
Income attributable to common stock
|
$
|
11,741
|
$
|
13,279
|
$
|
38,735
|
$
|
36,362
|
||||||||
Weighted average common shares outstanding, including participating securities
|
37,220,933
|
37,528,933
|
37,428,595
|
37,627,568
|
||||||||||||
Less: weighted average participating securities
|
(154,775
|
)
|
(162,074
|
)
|
(156,311
|
)
|
(169,797
|
)
|
||||||||
Weighted average common shares outstanding
|
37,066,158
|
37,366,859
|
37,272,284
|
37,457,771
|
||||||||||||
Basic EPS
|
$
|
0.32
|
$
|
0.36
|
$
|
1.04
|
$
|
0.97
|
||||||||
Income attributable to common stock
|
$
|
11,741
|
$
|
13,279
|
$
|
38,735
|
$
|
36,362
|
||||||||
Weighted average common shares outstanding
|
37,066,158
|
37,366,859
|
37,272,284
|
37,457,771
|
||||||||||||
Weighted average common equivalent shares outstanding
|
123,490
|
74,996
|
127,456
|
79,045
|
||||||||||||
Weighted average common and equivalent shares outstanding
|
37,189,648
|
37,441,855
|
37,399,740
|
37,536,816
|
||||||||||||
Diluted EPS
|
$
|
0.32
|
$
|
0.35
|
$
|
1.04
|
$
|
0.97
|
6. |
REVENUE FROM CONTRACTS WITH CUSTOMERS
|
1. |
Identify the contract with a customer
|
2. |
Identify the performance obligations in the contract
|
3. |
Determine the transaction price
|
4. |
Allocate the transaction price to performance obligations in the contract
|
5 |
Recognize revenue when (or as) the Company satisfies a performance obligation
|
7. |
INVESTMENT AND MORTGAGE-BACKED SECURITIES
|
At September 30, 2018
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Debt securities available-for-sale:
|
||||||||||||||||
Agency Notes
|
$
|
5,096
|
$
|
—
|
$
|
8
|
$
|
5,088
|
||||||||
Pass-through MBS issued by Government-sponsored Enterprises (“GSEs”)
|
353,124
|
1
|
5,478
|
347,647
|
||||||||||||
Agency Collateralized Mortgage Obligation (“CMO”)
|
119,172
|
227
|
1,556
|
117,843
|
||||||||||||
Total debt securities available-for-sale
|
$
|
477,392
|
$
|
228
|
$
|
7,042
|
$
|
470,578
|
At December 31, 2017
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Investment securities available-for-sale:
|
||||||||||||||||
Registered Mutual Funds
|
$
|
3,779
|
$
|
311
|
$
|
84
|
$
|
4,006
|
||||||||
Pass-through MBS issued by GSEs
|
72,938
|
16
|
325
|
72,629
|
||||||||||||
CMO
|
278,251
|
669
|
165
|
278,755
|
||||||||||||
Total investment securities available-for-sale
|
$
|
354,968
|
$
|
996
|
$
|
574
|
$
|
355,390
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Proceeds:
|
||||||||||||||||
Marketable equity securities
|
$
|
394
|
$
|
—
|
$
|
923
|
$
|
—
|
||||||||
Investment securities available-for-sale
|
—
|
137
|
—
|
240
|
||||||||||||
Trading securities
|
—
|
85
|
—
|
4,629
|
September 30, 2018
|
||||||||||||||||||||||||
Less than 12
Consecutive Months
|
12 Consecutive
Months or Longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
Debt securities available-for-sale:
|
||||||||||||||||||||||||
Agency Notes
|
$
|
5,088
|
$
|
8
|
$
|
—
|
$
|
—
|
$
|
5,088
|
$
|
8
|
||||||||||||
Pass through MBS issued by GSEs
|
289,994
|
4,546
|
47,569
|
932
|
337,563
|
5478
|
||||||||||||||||||
Agency CMO
|
51,362
|
1,435
|
4,664
|
121
|
56,026
|
1,556
|
December 31, 2017
|
||||||||||||||||||||||||
Less than 12
Consecutive Months
|
12 Consecutive
Months or Longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
Investment securities available-for-sale:
|
||||||||||||||||||||||||
Registered Mutual Funds
|
$
|
—
|
$
|
—
|
$
|
2,591
|
$
|
84
|
$
|
2,591
|
$
|
84
|
||||||||||||
Pass through MBS issued by GSEs
|
55,819
|
325
|
—
|
—
|
55,819
|
325
|
||||||||||||||||||
Agency CMO
|
86,746
|
96
|
3,168
|
69
|
89,914
|
165
|
8. |
LOANS RECEIVABLE AND CREDIT QUALITY
|
Balance at September 30, 2018
|
||||||||||||||||||||
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
Real Estate:
|
||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment
|
$
|
70,657
|
$
|
—
|
$
|
807
|
$
|
—
|
$
|
71,464
|
||||||||||
Multifamily residential and residential mixed-use
|
4,009,338
|
3,142
|
2,944
|
—
|
4,015,424
|
|||||||||||||||
Commercial mixed-use real estate
|
381,547
|
1,329
|
4,310
|
—
|
387,186
|
|||||||||||||||
Commercial real estate
|
717,892
|
497
|
855
|
—
|
719,244
|
|||||||||||||||
ADC
|
11,144
|
—
|
—
|
—
|
11,144
|
|||||||||||||||
Total real estate
|
5,190,578
|
4,968
|
8,916
|
—
|
5,204,462
|
|||||||||||||||
C&I
|
207,743
|
—
|
—
|
—
|
207,743
|
|||||||||||||||
Total Real Estate and C&I
|
$
|
5,398,321
|
$
|
4,968
|
$
|
8,916
|
$
|
—
|
$
|
5,412,205
|
Balance at December 31, 2017
|
||||||||||||||||||||
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
Real Estate:
|
||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment
|
$
|
62,042
|
$
|
178
|
$
|
875
|
$
|
—
|
$
|
63,095
|
||||||||||
Multifamily residential and residential mixed-use
|
4,374,388
|
6,326
|
466
|
—
|
4,381,180
|
|||||||||||||||
Commercial mixed-use real estate
|
396,647
|
—
|
4,908
|
—
|
401,555
|
|||||||||||||||
Commercial real estate
|
602,448
|
1,897
|
4,703
|
—
|
609,048
|
|||||||||||||||
ADC
|
9,189
|
—
|
—
|
—
|
9,189
|
|||||||||||||||
Total real estate
|
5,444,714
|
8,401
|
10,952
|
—
|
5,464,067
|
|||||||||||||||
C&I
|
136,671
|
—
|
—
|
—
|
136,671
|
|||||||||||||||
Total Real Estate and C&I
|
$
|
5,581,385
|
$
|
8,401
|
$
|
10,952
|
$
|
—
|
$
|
5,600,738
|
Grade
|
September 30, 2018
|
December 31, 2017
|
||||||
Performing
|
$
|
1,159
|
$
|
1,375
|
||||
Non-accrual
|
3
|
4
|
||||||
Total
|
$
|
1,162
|
$
|
1,379
|
At September 30, 2018
|
||||||||||||||||||||||||||||
30 to 59
Days
Past Due
|
60 to 89
Days
Past Due
|
Loans 90
Days or
More Past
Due and
Still
Accruing
Interest
|
Non-
accrual (1)
|
Total
Past Due
|
Current
|
Total
Loans
|
||||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment
|
$
|
72
|
$
|
449
|
$
|
—
|
$
|
443
|
$
|
964
|
$
|
70,500
|
$
|
71,464
|
||||||||||||||
Multifamily residential and residential mixed-use
|
—
|
—
|
—
|
1,473
|
1,473
|
4,013,951
|
4,015,424
|
|||||||||||||||||||||
Commercial mixed-use real estate
|
—
|
—
|
—
|
204
|
204
|
386,982
|
387,186
|
|||||||||||||||||||||
Commercial real estate
|
—
|
—
|
1,242
|
855
|
2,097
|
717,147
|
719,244
|
|||||||||||||||||||||
ADC
|
—
|
—
|
—
|
—
|
—
|
11,144
|
11,144
|
|||||||||||||||||||||
Total real estate
|
$
|
72
|
$
|
449
|
$
|
1,242
|
$
|
2,975
|
$
|
4,738
|
$
|
5,199,722
|
$
|
5,204,462
|
||||||||||||||
C&I
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
207,743
|
$
|
207,743
|
||||||||||||||
Consumer
|
$
|
7
|
$
|
3
|
$
|
—
|
$
|
3
|
$
|
13
|
$
|
1,149
|
$
|
1,162
|
(1) |
Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of September 30, 2018.
|
At December 31, 2017
|
||||||||||||||||||||||||||||
30 to 59
Days
Past Due
|
60 to 89
Days
Past Due
|
Loans 90
Days or
More Past
Due and
Still
Accruing
Interest
|
Non-
accrual (1)
|
Total
Past Due
|
Current
|
Total
Loans
|
||||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment
|
$
|
10
|
$
|
23
|
$
|
6,397
|
$
|
436
|
$
|
6,866
|
$
|
56,229
|
$
|
63,095
|
||||||||||||||
Multifamily residential and residential mixed-use
|
—
|
—
|
1,669
|
—
|
1,669
|
4,379,511
|
4,381,180
|
|||||||||||||||||||||
Commercial mixed-use real estate
|
—
|
—
|
520
|
93
|
613
|
400,942
|
401,555
|
|||||||||||||||||||||
Commercial real estate
|
—
|
—
|
11,349
|
—
|
11,349
|
597,699
|
609,048
|
|||||||||||||||||||||
ADC
|
—
|
—
|
—
|
—
|
—
|
9,189
|
9,189
|
|||||||||||||||||||||
Total real estate
|
$
|
10
|
$
|
23
|
$
|
19,935
|
$
|
529
|
$
|
20,497
|
$
|
5,443,570
|
$
|
5,464,067
|
||||||||||||||
C&I
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
136,671
|
$
|
136,671
|
||||||||||||||
Consumer
|
$
|
4
|
$
|
—
|
$
|
—
|
$
|
4
|
$
|
8
|
$
|
1,371
|
$
|
1,379
|
(1) |
Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2017.
|
· |
A reduction of interest rate has been made for the remaining term of the loan
|
· |
The maturity date of the loan has been extended with a stated interest rate lower than the current market rate for new debt with similar risk
|
· |
The outstanding principal amount and/or accrued interest have been reduced
|
As of September 30, 2018
|
As of December 31, 2017
|
|||||||||||||||
No. of
Loans
|
Balance
|
No. of
Loans
|
Balance
|
|||||||||||||
One-to-four family residential, including condominium and cooperative apartment
|
1
|
$
|
16
|
1
|
$
|
22
|
||||||||||
Multifamily residential and residential mixed-use
|
2
|
277
|
3
|
619
|
||||||||||||
Commercial mixed-use real estate
|
1
|
4,107
|
1
|
4,174
|
||||||||||||
Commercial real estate
|
—
|
—
|
1
|
3,296
|
||||||||||||
Total real estate
|
5
|
$
|
4,400
|
6
|
$
|
8,111
|
9. |
ALLOWANCE FOR LOAN LOSSES
|
(i) |
Charge-off experience (including peer charge-off experience)
|
(ii) |
Economic conditions
|
(iii) |
Underwriting standards or experience
|
(iv) |
Loan concentrations
|
(v) |
Regulatory climate
|
(vi) |
Nature and volume of the portfolio
|
(vii) |
Changes in the quality and scope of the loan review function
|
(i) |
Charge-off experience – Loans within the non-impaired loan portfolio are segmented by significant
common characteristics, against which historical loss rates are applied to reflect probable incurred loss percentages. The Bank also reviews and considers the charge-off experience of peer banks in its lending marketplace in order to
determine whether probable incurred losses that could take a longer period to flow through its allowance for loan losses possibly exist.
|
(ii) |
Economic conditions – The Bank assigned a loss allocation to its entire non-impaired real estate
loan portfolio based, in part, upon a review of economic conditions affecting the local real estate market. Specifically, the Bank considered both the level of, and recent trends in: 1) the local and national unemployment rate, 2)
residential and commercial vacancy rates, 3) real estate sales and pricing, and 4) delinquencies in the Bank’s loan portfolio.
|
(iii) |
Underwriting standards or experience – Underwriting standards are reviewed to ensure that changes
in the Bank’s lending policies and practices are adequately evaluated for risk and reflected in its analysis of potential credit losses. Loss expectations associated with changes in the Bank’s lending policies and practices, if any,
are then incorporated into the methodology.
|
(iv) |
Loan concentrations – The Bank regularly reviews its loan concentrations (borrower, collateral
type, location, etc.) in order to ensure that heightened risk has not evolved that has not been captured through other factors. The risk component of loan concentrations is regularly evaluated for reserve adequacy.
|
(v) |
Regulatory climate – Consideration is given to public statements made by the banking regulatory agencies that have a potential impact on the Bank’s loan portfolio and
allowance for loan losses.
|
(vi) |
Nature and volume of the portfolio – The Bank considers any significant changes in the overall nature and volume of its loan portfolio.
|
(vii) |
Changes in the quality and scope of the loan review function – The Bank considers the potential impact upon its allowance for loan losses of any adverse change in the
quality and scope of the loan review function.
|
At or for the Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||||
One-to-Four Family
Residential, Including
Condominium and
Cooperative
Apartment
|
Multifamily
Residential
and
Residential
Mixed-Use
|
Commercial
Mixed-Use
Real Estate
|
Commercial
Real Estate
|
ADC
|
Total
Real
Estate
|
C&I
|
Consumer
Loans
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
123
|
$
|
14,299
|
$
|
1,382
|
$
|
2,285
|
$
|
141
|
$
|
18,230
|
$
|
2,737
|
$
|
17
|
||||||||||||||||
Provision (credit) for loan losses
|
(2
|
)
|
(312
|
)
|
(43
|
)
|
220
|
8
|
(129
|
)
|
463
|
1
|
||||||||||||||||||||
Charge-offs
|
(1
|
)
|
(1
|
)
|
—
|
—
|
—
|
(2
|
)
|
—
|
—
|
|||||||||||||||||||||
Recoveries
|
10
|
—
|
3
|
—
|
—
|
13
|
—
|
—
|
||||||||||||||||||||||||
Ending balance
|
$
|
130
|
$
|
13,986
|
$
|
1,342
|
$
|
2,505
|
$
|
149
|
$
|
18,112
|
$
|
3,200
|
$
|
18
|
At or for the Three Months Ended September 30, 2017
|
||||||||||||||||||||||||||||||||
One- to Four Family
Residential, Including
Condominium and
Cooperative
Apartment
|
Multifamily
Residential
and
Residential
Mixed-Use
|
Commercial
Mixed-Use
Real Estate
|
Commercial
Real Estate
|
ADC
|
Total
Real
Estate
|
C&I
|
Consumer
Loans
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
122
|
$
|
17,372
|
$
|
1,411
|
$
|
2,034
|
$
|
6
|
$
|
20,945
|
$
|
1,023
|
$
|
17
|
||||||||||||||||
Provision (credit) for loan losses
|
(7
|
)
|
(709
|
)
|
37
|
49
|
8
|
(622
|
)
|
643
|
2
|
|||||||||||||||||||||
Charge-offs
|
(2
|
)
|
(12
|
)
|
—
|
—
|
—
|
(14
|
)
|
—
|
—
|
|||||||||||||||||||||
Recoveries
|
2
|
11
|
—
|
—
|
—
|
13
|
—
|
—
|
||||||||||||||||||||||||
Ending balance
|
$
|
115
|
$
|
16,662
|
$
|
1,448
|
$
|
2,083
|
$
|
14
|
$
|
20,322
|
$
|
1,666
|
$
|
19
|
At or for the Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||||||
One-to-Four Family
Residential, Including
Condominium and
Cooperative
Apartment
|
Multifamily
Residential
and
Residential
Mixed-Use
|
Commercial
Mixed-Use
Real Estate
|
Commercial
Real Estate
|
ADC
|
Total
Real
Estate
|
C&I
|
Consumer
Loans
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
116
|
$
|
15,219
|
$
|
1,388
|
$
|
2,147
|
$
|
123
|
$
|
18,993
|
$
|
2,021
|
$
|
19
|
||||||||||||||||
Provision (credit) for loan losses
|
171
|
(1,232
|
)
|
(43
|
)
|
358
|
26
|
(720
|
)
|
2,358
|
3
|
|||||||||||||||||||||
Charge-offs
|
(169
|
)
|
(1
|
)
|
(6
|
)
|
—
|
—
|
(176
|
)
|
(1,179
|
)
|
(4
|
)
|
||||||||||||||||||
Recoveries
|
12
|
—
|
3
|
—
|
—
|
15
|
—
|
—
|
||||||||||||||||||||||||
Ending balance
|
$
|
130
|
$
|
13,986
|
$
|
1,342
|
$
|
2,505
|
$
|
149
|
$
|
18,112
|
$
|
3,200
|
$
|
18
|
At or for the Nine Months Ended September 30, 2017
|
||||||||||||||||||||||||||||||||
One-to-Four Family
Residential, Including
Condominium and
Cooperative
Apartment
|
Multifamily
Residential
and
Residential
Mixed-Use
|
Commercial
Mixed-Use
Real Estate
|
Commercial
Real Estate
|
ADC
|
Total
Real
Estate
|
C&I
|
Consumer
Loans
|
|||||||||||||||||||||||||
Beginning balance
|
$
|
145
|
$
|
16,555
|
$
|
1,698
|
$
|
2,118
|
$
|
—
|
$
|
20,516
|
$
|
—
|
$
|
20
|
||||||||||||||||
Provision (credit) for loan losses
|
(30
|
)
|
155
|
(254
|
)
|
(35
|
)
|
14
|
(150
|
)
|
1,666
|
4
|
||||||||||||||||||||
Charge-offs
|
(15
|
)
|
(104
|
)
|
—
|
—
|
—
|
(119
|
)
|
—
|
(5
|
)
|
||||||||||||||||||||
Recoveries
|
15
|
56
|
4
|
—
|
—
|
75
|
—
|
—
|
||||||||||||||||||||||||
Ending balance
|
$
|
115
|
$
|
16,662
|
$
|
1,448
|
$
|
2,083
|
$
|
14
|
$
|
20,322
|
$
|
1,666
|
$
|
19
|
At September 30, 2018
|
||||||||||||||||||||||||||||||||
One-to-Four Family
Residential,
Including
Condominium and
Cooperative
Apartment
|
Multifamily
Residential
and
Residential
Mixed-Use
|
Commercial
Mixed-Use
Real Estate
|
Commercial
Real Estate
|
ADC
|
Total
Real
Estate
|
C&
|
I
|
Consumer
Loans
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||||
Collectively evaluated for impairment
|
130
|
13,986
|
1,342
|
2,505
|
149
|
18,112
|
3,200
|
18
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
130
|
$
|
13,986
|
$
|
1,342
|
$
|
2,505
|
$
|
149
|
$
|
18,112
|
$
|
3,200
|
$
|
18
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
16
|
$
|
1,750
|
$
|
4,311
|
$
|
855
|
$
|
—
|
$
|
6,932
|
$
|
—
|
$
|
—
|
||||||||||||||||
Collectively evaluated for impairment
|
71,448
|
4,013,674
|
382,875
|
718,389
|
11,144
|
5,197,530
|
207,743
|
1,162
|
||||||||||||||||||||||||
Total ending loans balance
|
$
|
71,464
|
$
|
4,015,424
|
$
|
387,186
|
$
|
719,244
|
$
|
11,144
|
$
|
5,204,462
|
$
|
207,743
|
$
|
1,162
|
At December 31, 2017
|
||||||||||||||||||||||||||||||||
One-to-Four Family
Residential,
Including
Condominium and
Cooperative
Apartment |
Multifamily
Residential
and
Residential Mixed-Use
|
Commercial
Mixed-Use
Real Estate
|
Commercial
Real Estate
|
ADC
|
Total
Real
Estate
|
C&
|
I
|
Consumer
Loans
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||||
Collectively evaluated for impairment
|
116
|
15,219
|
1,388
|
2,147
|
123
|
18,993
|
2,021
|
19
|
||||||||||||||||||||||||
Total ending allowance balance
|
$
|
116
|
$
|
15,219
|
$
|
1,388
|
$
|
2,147
|
$
|
123
|
$
|
18,993
|
$
|
2,021
|
$
|
19
|
||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
22
|
$
|
619
|
$
|
4,267
|
$
|
3,296
|
$
|
—
|
$
|
8,204
|
$
|
—
|
$
|
—
|
||||||||||||||||
Collectively evaluated for impairment
|
63,073
|
4,380,561
|
397,288
|
605,752
|
9,189
|
5,455,863
|
136,671
|
1,379
|
||||||||||||||||||||||||
Total ending loans balance
|
$
|
63,095
|
$
|
4,381,180
|
$
|
401,555
|
$
|
609,048
|
$
|
9,189
|
$
|
5,464,067
|
$
|
136,671
|
$
|
1,379
|
At September 30, 2018
|
At December 31, 2017
|
|||||||||||||||||||||||
Unpaid
Principal
Balance
|
Recorded
Investment
(1)
|
Related
Allowance
|
Unpaid
Principal
Balance
|
Recorded
Investment
(1)
|
Related
Allowance
|
|||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment
|
$
|
16
|
$
|
16
|
$
|
—
|
$
|
22
|
$
|
22
|
$
|
—
|
||||||||||||
Multifamily residential and residential mixed-use
|
1,750
|
1,750
|
—
|
619
|
619
|
—
|
||||||||||||||||||
Commercial mixed-use real estate
|
4,311
|
4,311
|
—
|
4,267
|
4,267
|
—
|
||||||||||||||||||
Commercial real estate
|
855
|
855
|
—
|
3,296
|
3,296
|
—
|
||||||||||||||||||
Total with no related allowance recorded
|
$
|
6,932
|
$
|
6,932
|
$
|
—
|
$
|
8,204
|
$
|
8,204
|
$
|
—
|
(1) |
The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.
|
Three Months Ended
September 30, 2018
|
Three Months Ended
September 30, 2017
|
|||||||||||||||
Average
Recorded
Investment (1)
|
Interest
Income
Recognized
|
Average
Recorded
Investment (1)
|
Interest
Income
Recognized
|
|||||||||||||
With no related allowance recorded:
|
||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment
|
$
|
17
|
$
|
—
|
$
|
397
|
$
|
7
|
||||||||
Multifamily residential and residential mixed-use
|
1,174
|
8
|
1,943
|
13
|
||||||||||||
Commercial mixed-use real estate
|
4,204
|
58
|
4,306
|
43
|
||||||||||||
Commercial real estate
|
1,066
|
35
|
3,321
|
33
|
||||||||||||
Total with no related allowance recorded
|
6,461
|
101
|
9,967
|
96
|
||||||||||||
With an allowance recorded:
|
||||||||||||||||
C&I
|
—
|
—
|
—
|
—
|
||||||||||||
Total
|
$
|
6,461
|
$
|
101
|
$
|
9,967
|
$
|
96
|
(1) |
The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.
|
Nine Months Ended
September 30, 2018
|
Nine Months Ended
September 30, 2017
|
|||||||||||||||
Average
Recorded
Investment (1)
|
Interest
Income
Recognized
|
Average
Recorded
Investment (1)
|
Interest
Income
Recognized
|
|||||||||||||
With no related allowance recorded:
|
||||||||||||||||
One-to-four family residential, including condominium and cooperative apartment
|
$
|
19
|
$
|
—
|
$
|
400
|
$
|
21
|
||||||||
Multifamily residential and residential mixed-use
|
892
|
43
|
2,623
|
75
|
||||||||||||
Commercial mixed-use real estate
|
4,230
|
131
|
4,539
|
131
|
||||||||||||
Commercial real estate
|
2,177
|
152
|
3,339
|
100
|
||||||||||||
Total with no related allowance recorded
|
7,318
|
326
|
10,901
|
327
|
||||||||||||
With an allowance recorded:
|
||||||||||||||||
C&I
|
295
|
—
|
—
|
—
|
||||||||||||
Total
|
$
|
7,613
|
$
|
326
|
$
|
10,901
|
$
|
327
|
(1) |
The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.
|
10. |
LOAN SECURITIZATION
|
11. |
DERIVATIVES AND HEDGING ACTIVITIES
|
At September 30, 2018
|
At December 31, 2017
|
|||||||||||||||||||||||||||||||
Count
|
Notional
Amount
|
Fair
Value
Assets
|
Fair
Value
Liabilities
|
Count
|
Notional
Amount
|
Fair
Value
Assets
|
Fair
Value
Liabilities
|
|||||||||||||||||||||||||
Included in other assets/(liabilities):
|
||||||||||||||||||||||||||||||||
Interest rate swaps related to FHLBNY advances
|
11
|
$
|
200,000
|
$
|
7,353
|
$
|
–
|
7
|
$
|
135,000
|
$
|
4,041
|
$
|
—
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Interest rate products
|
||||||||||||||||
Amount of gain (loss) recognized in other comprehensive income
|
$
|
966
|
$
|
24
|
$
|
3,792
|
$
|
(573
|
)
|
|||||||
Amount of gain (loss) reclassified from other comprehensive income into interest expense
|
212
|
(68
|
)
|
462
|
(247
|
)
|
At September 30, 2018
|
||||||||||||||||||||||||
Gross
Amounts
|
Gross
Amounts
Offset in the
|
Net Amounts of
Assets Presented
in
|
Gross Amounts Not Offset
in the Statement of Financial
Position
|
|||||||||||||||||||||
of
Recognized Assets
|
Statement of
Financial
Position
|
the Statement of
Financial
Position
|
Financial
Instruments
|
Cash
Collateral
Received
|
Net
Amount
|
|||||||||||||||||||
FHLB Advances
|
$
|
7,353
|
$
|
—
|
$
|
7,353
|
$
|
—
|
$
|
—
|
$
|
7,353
|
At December 31, 2017
|
||||||||||||||||||||||||
Gross
Amounts
|
Gross
Amounts
Offset in the
|
Net Amounts of
Assets Presented
in
|
Gross Amounts Not Offset
in the
Statement of Financial
Position
|
|||||||||||||||||||||
of
Recognized
Assets
|
Statement of
Financial
Position
|
the Statement of
Financial
Position
|
Financial
Instruments
|
Cash
Collateral
Received
|
Net
Amount
|
|||||||||||||||||||
FHLB Advances
|
$
|
4,041
|
$
|
—
|
$
|
4,041
|
$
|
—
|
$
|
—
|
$
|
4,041
|
12. |
FAIR VALUE OF FINANCIAL INSTRUMENTS
|
Fair Value Measurements
at September 30, 2018 Using
|
||||||||||||||||
Total
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
|||||||||||||
Financial Assets
|
||||||||||||||||
Marketable equity securities (Registered Mutual Funds):
|
||||||||||||||||
Domestic Equity Mutual Funds
|
$
|
4,168
|
$
|
4,168
|
$
|
—
|
$
|
—
|
||||||||
International Equity Mutual Funds
|
239
|
239
|
—
|
—
|
||||||||||||
Fixed Income Mutual Funds
|
1,704
|
1,704
|
—
|
—
|
||||||||||||
Debt securities available-for-sale:
|
||||||||||||||||
Agency Notes
|
5,088
|
— |
5,088
|
— | ||||||||||||
Pass-through MBS issued by GSEs
|
347,647
|
—
|
347,647
|
—
|
||||||||||||
Agency CMOs
|
117,843
|
—
|
117,843
|
—
|
||||||||||||
Derivative – interest rate product
|
7,353
|
—
|
7,353
|
—
|
Fair Value Measurements
at December 31, 2017 Using
|
||||||||||||||||
Total
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
|||||||||||||
Financial Assets
|
||||||||||||||||
Trading securities (Registered Mutual Funds):
|
||||||||||||||||
Domestic Equity Mutual Funds
|
$
|
460
|
$
|
460
|
$
|
—
|
$
|
—
|
||||||||
International Equity Mutual Funds
|
120
|
120
|
—
|
—
|
||||||||||||
Fixed Income Mutual Funds
|
2,135
|
2,135
|
—
|
—
|
||||||||||||
Investment securities available-for-sale:
|
||||||||||||||||
Registered Mutual Funds:
|
||||||||||||||||
Domestic Equity Mutual Funds
|
1,512
|
1,512
|
—
|
—
|
||||||||||||
International Equity Mutual Funds
|
445
|
445
|
—
|
—
|
||||||||||||
Fixed Income Mutual Funds
|
2,049
|
2,049
|
—
|
—
|
||||||||||||
Pass-through MBS issued by GSEs
|
72,629
|
—
|
72,629
|
—
|
||||||||||||
Agency CMOs
|
278,755
|
—
|
278,755
|
—
|
||||||||||||
Derivative – interest rate product
|
4,041
|
—
|
4,041
|
—
|
Fair Value Measurements
at September 30, 2018 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total
|
||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
132,822
|
$
|
132,822
|
$
|
—
|
$
|
—
|
$
|
132,822
|
||||||||||
Loans, net
|
5,392,037
|
—
|
—
|
5,323,822
|
5,323,822
|
|||||||||||||||
Accrued interest receivable
|
17,379
|
—
|
1,144
|
16,235
|
17,379
|
|||||||||||||||
FHLBNY capital stock
|
53,842
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Savings, money market and checking accounts
|
3,044,587
|
3,044,587
|
—
|
—
|
3,044,587
|
|||||||||||||||
Certificates of Deposits (“CDs”)
|
1,337,663
|
—
|
1,333,445
|
—
|
1,333,445
|
|||||||||||||||
Escrow and other deposits
|
119,796
|
119,796
|
—
|
—
|
119,796
|
|||||||||||||||
FHLBNY Advances
|
1,042,925
|
—
|
1,032,262
|
—
|
1,032,262
|
|||||||||||||||
Subordinated debt, net
|
113,722
|
—
|
112,585
|
—
|
112,585
|
|||||||||||||||
Accrued interest payable
|
3,657
|
—
|
3,657
|
—
|
3,657
|
Fair Value Measurements
at December 31, 2017 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total
|
||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
169,455
|
$
|
169,455
|
$
|
—
|
$
|
—
|
$
|
169,455
|
||||||||||
Loans, net
|
5,581,084
|
—
|
—
|
5,519,746
|
5,519,746
|
|||||||||||||||
Accrued interest receivable
|
16,543
|
—
|
751
|
15,792
|
16,543
|
|||||||||||||||
FHLBNY capital stock
|
59,696
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Savings, money market and checking accounts
|
3,311,560
|
3,311,560
|
—
|
—
|
3,311,560
|
|||||||||||||||
CDs
|
1,091,887
|
—
|
1,192,964
|
—
|
1,192,964
|
|||||||||||||||
Escrow and other deposits
|
82,168
|
82,168
|
—
|
—
|
82,168
|
|||||||||||||||
FHLBNY Advances
|
1,170,000
|
—
|
1,164,947
|
—
|
1,164,947
|
|||||||||||||||
Subordinated debt, net
|
113,612
|
—
|
115,337
|
—
|
115,337
|
|||||||||||||||
Accrued interest payable
|
1,623
|
—
|
1,623
|
—
|
1,623
|
13. |
RETIREMENT AND POSTRETIREMENT PLANS
|
Three Months Ended September 30,
|
||||||||||||||||
2018
|
2017
|
|||||||||||||||
BMP, Employee and
Outside Director
Retirement Plans
|
Postretirement
Plan
|
BMP, Employee and
Outside Director
Retirement Plans
|
Postretirement
Plan
|
|||||||||||||
Service cost
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
Interest cost
|
291
|
13
|
329
|
14
|
||||||||||||
Expected return on assets
|
(430
|
)
|
—
|
(395
|
)
|
—
|
||||||||||
Unrecognized past service liability
|
—
|
(2
|
)
|
—
|
(2
|
)
|
||||||||||
Amortization of unrealized loss (gain)
|
289
|
—
|
358
|
(1
|
)
|
|||||||||||
Net periodic cost
|
$
|
150
|
$
|
11
|
$
|
292
|
$
|
11
|
Nine Months Ended September 30,
|
||||||||||||||||
2018
|
2017
|
|||||||||||||||
BMP, Employee and
Outside Director
Retirement Plans
|
Postretirement
Plan
|
BMP, Employee and
Outside Director
Retirement Plans
|
Postretirement
Plan
|
|||||||||||||
Service cost
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
Interest cost
|
874
|
40
|
987
|
42
|
||||||||||||
Expected return on assets
|
(1,290
|
)
|
—
|
(1,185
|
)
|
—
|
||||||||||
Unrecognized past service liability
|
—
|
(6
|
)
|
—
|
(6
|
)
|
||||||||||
Amortization of unrealized loss (gain)
|
866
|
—
|
1,076
|
(3
|
)
|
|||||||||||
Net periodic cost
|
$
|
450
|
$
|
34
|
$
|
878
|
$
|
33
|
14. |
ACCOUNTING FOR STOCK BASED COMPENSATION
|
Number of
Options
|
Weighted-Average
Exercise Price
|
Weighted-Average
Remaining
Contractual Years
|
Aggregate
Intrinsic Value
|
|||||||||||||
Options outstanding at January 1, 2018
|
157,546
|
$
|
15.53
|
|||||||||||||
Options granted
|
—
|
—
|
||||||||||||||
Options expired
|
(18,779
|
)
|
17.50
|
|||||||||||||
Options exercised
|
(66,372
|
)
|
$
|
17.10
|
||||||||||||
Options outstanding at September 30, 2018
|
72,395
|
$
|
13.58
|
2.2
|
$
|
309
|
||||||||||
Options vested and exercisable at September 30, 2018
|
72,395
|
$
|
13.58
|
2.2
|
$
|
309
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Cash received for option exercise cost
|
$
|
—
|
$
|
54
|
$
|
954
|
$
|
680
|
||||||||
Income tax benefit recognized on stock option exercises(1)
|
(68
|
)
|
—
|
(44
|
)
|
69
|
||||||||||
Intrinsic value of options exercised
|
—
|
10
|
167
|
286
|
(1) |
Effective January 1, 2017, income tax benefits were recognized as discrete items in income tax expense in accordance to ASU 2016-09. Prior to January 1, 2017, income tax
benefits were recognized through additional paid in capital.
|
Number of
Shares
|
Weighted-Average
Grant-Date
Fair Value
|
|||||||
Unvested allocated shares outstanding at January 1, 2018
|
$
|
150,567
|
$
|
18.85
|
||||
Shares granted
|
63,612
|
19.75
|
||||||
Shares vested
|
(56,742
|
)
|
18.19
|
|||||
Shares forfeited
|
(2,014
|
)
|
19.39
|
|||||
Unvested allocated shares at September 30, 2018
|
155,423
|
$
|
19.45
|
At or for the Three
Months Ended September
30,
|
At or for the Nine Months
Ended September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Compensation expense recognized
|
$
|
326
|
$
|
353
|
$
|
950
|
$
|
1,195
|
||||||||
Income tax benefit (expense) recognized on vesting of RSA(1)
|
0
|
3
|
(22
|
)
|
78
|
|||||||||||
Weighted average remaining years for which compensation expense is to be recognized
|
2.5
|
2.8
|
2.5
|
2.8
|
(1) |
Effective January 1, 2017, income tax benefits were recognized as discrete items in income tax expense in accordance to ASU 2016-09. Prior to January 1, 2017, income tax
benefits were recognized through additional paid in capital.
|
Number of
Shares
|
Weighted-Average
Grant-Date
Fair Value
|
|||||||
Maximum aggregate share payout at January 1, 2018
|
69,224
|
$
|
19.19
|
|||||
Shares granted
|
81,353
|
18.55
|
||||||
Shares vested
|
(3,536
|
)
|
18.83
|
|||||
Shares forfeited
|
(6,320
|
)
|
19.19
|
|||||
Maximum aggregate share payout at September 30, 2018
|
140,721
|
$
|
18.83
|
|||||
Minimum aggregate share payout
|
—
|
—
|
||||||
Expected aggregate share payout
|
93,813
|
$
|
18.83
|
Number of
Shares
|
Weighted-Average
Grant-Date
Fair Value
|
|||||||
Maximum aggregate share payout at January 1, 2018
|
—
|
$
|
—
|
|||||
Shares granted
|
21,736
|
18.40
|
||||||
Shares vested
|
—
|
—
|
||||||
Shares forfeited
|
—
|
—
|
||||||
Maximum aggregate share payout at September 30, 2018
|
21,736
|
$
|
18.40
|
|||||
Minimum aggregate share payout
|
—
|
—
|
||||||
Expected aggregate share payout
|
21,736
|
$
|
18.40
|
15. |
SUBORDINATED NOTES PAYABLE
|
16. |
TRUST PREFERRED SECURITIES PAYABLE
|
17. |
INCOME TAXES
|
18. |
SUBSEQUENT EVENTS
|
Direct Subsidiaries of the Bank
|
Year/ State of
Incorporation
|
Primary Business Activities
|
||
Boulevard Funding Corp.
|
1981 / New York
|
Management and ownership of real estate
|
||
Dime Insurance Agency Inc. (f/k/a Havemeyer Investments,
Inc.)
|
1997 / New York
|
Sale of non-FDIC insured investment products
|
||
DSBW Preferred Funding Corp.
|
1998 / Delaware
|
Real Estate Investment Trust investing in multifamily
residential and commercial real estate loans
|
||
DSBW Residential Preferred Funding Corp.
|
1998 / Delaware
|
Real Estate Investment Trust investing in one-to-four
family residential loans
|
||
Dime Reinvestment Corporation
|
2004 / Delaware
|
Community Development Entity. Currently inactive.
|
||
195 Havemeyer Corp.
|
2008 / New York
|
Management and ownership of real estate. Currently inactive.
|
||
DSB Holdings NY, LLC
|
2015 / New York
|
Management and ownership of real estate. Currently inactive.
|
At or For the Three
Months Ended September
30,
|
At or For the Nine
Months Ended September
30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Per Share Data:
|
||||||||||||||||
EPS (Diluted)
|
$
|
0.32
|
$
|
0.35
|
$
|
1.04
|
$
|
0.97
|
||||||||
Cash dividends paid per share
|
0.14
|
0.14
|
0.42
|
0.42
|
||||||||||||
Book value per share
|
16.49
|
15.66
|
16.49
|
15.66
|
||||||||||||
Dividend Payout Ratio
|
43.75
|
%
|
40.00
|
%
|
40.38
|
%
|
43.30
|
%
|
||||||||
Performance and Other Selected Ratios:
|
||||||||||||||||
Return on average assets
|
0.76
|
%
|
0.85
|
%
|
0.82
|
%
|
0.79
|
%
|
||||||||
Return on average common equity
|
7.71
|
9.14
|
8.51
|
8.43
|
||||||||||||
Net interest spread
|
2.11
|
2.38
|
2.20
|
2.39
|
||||||||||||
Net interest margin
|
2.33
|
2.53
|
2.40
|
2.56
|
||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
117.46
|
115.62
|
117.06
|
116.38
|
||||||||||||
Non-interest expense to average assets
|
1.39
|
1.41
|
1.36
|
1.35
|
||||||||||||
Efficiency Ratio
|
58.13
|
55.29
|
55.66
|
52.43
|
||||||||||||
Loan-to-Deposit ratio at end of period
|
123.53
|
136.78
|
123.53
|
136.78
|
||||||||||||
Effective tax rate
|
23.14
|
35.19
|
23.96
|
37.00
|
||||||||||||
Asset Quality Summary:
|
||||||||||||||||
Non-performing loans (1)
|
$
|
2,978
|
$
|
806
|
$
|
2,978
|
$
|
806
|
||||||||
Non-performing assets
|
2,978
|
806
|
2,978
|
806
|
||||||||||||
Net charge-offs (recoveries)
|
(11
|
)
|
1
|
1,344
|
49
|
|||||||||||
Non-performing loans/Total loans
|
0.06
|
%
|
0.01
|
%
|
0.06
|
%
|
0.01
|
%
|
||||||||
Non-performing assets/Total assets
|
0.05
|
0.01
|
0.05
|
0.01
|
||||||||||||
Allowance for loan loss/Total loans
|
0.39
|
0.37
|
0.39
|
0.37
|
||||||||||||
Allowance for loan loss/Non-performing loans
|
716.25
|
2,730.40
|
716.25
|
2,730.40
|
||||||||||||
Earnings to Fixed Charges Ratios (2)
|
||||||||||||||||
Including interest on deposits
|
2.10
|
x
|
2.31
|
x
|
2.27
|
x
|
2.28
|
x
|
||||||||
Excluding interest on deposits
|
3.82
|
4.26
|
4.57
|
4.45
|
(1) |
Non-performing loans are defined as all loans on non-accrual status.
|
(2) |
Please refer to Exhibit 12.1 for further detail on the calculation of these ratios.
|
Actual Ratios at
September 30, 2018
|
Basel III
|
Well
Capitalized
|
||||||||||||||||||||||
Bank
|
Consolidated
Company
|
Minimum
Requirement
|
Minimum
Requirement
Plus
1.875%
Buffer(1)
|
Minimum
Requirement
Plus
2.5%
Buffer(2)
|
Requirement
Under FDIC
Prompt
Corrective
Action
Framework(3)
|
|||||||||||||||||||
Tier 1 common equity ratio
|
13.26
|
%
|
11.66
|
%
|
4.50
|
%
|
6.38
|
%
|
7.0
|
%
|
6.5
|
%
|
||||||||||||
Tier 1 risk-based based capital ratio
|
13.26
|
11.66
|
6.0
|
7.88
|
8.5
|
8.0
|
||||||||||||||||||
Total risk-based based capital ratio
|
13.71
|
14.54
|
8.0
|
9.88
|
10.5
|
10.0
|
||||||||||||||||||
Tier 1 leverage ratio
|
10.15
|
8.96
|
4.00
|
n/a
|
n/a
|
5.0
|
(1) |
The 1.875% buffer percentage represents the phased-in requirement as of September 30, 2018.
|
(2) |
The 2.5% buffer percentage represents the fully phased-in requirement as of January 1, 2019.
|
(3) |
Only the Bank is subject to these requirements.
|
The Holding Company repurchased 973,200 shares of its common stock during the nine months ended September 30, 2018 and no shares during the nine months ended September 30, 2017. As of September 30, 2018, up to 131,349 shares remained available for purchase under authorized share purchase programs. See "Part II - Item 2. Other Information - Unregistered Sales of Equity Securities and Use of Proceeds" for additional information about repurchases of common stock.
Less than
One Year
|
One Year to
Three Years
|
Over Three
Years to
Five Years
|
Over Five
Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Credit Commitments:
|
||||||||||||||||||||
Available lines of credit
|
$
|
101,351
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
101,351
|
||||||||||
Other loan commitments
|
94,782
|
—
|
—
|
—
|
94,782
|
|||||||||||||||
Stand-by letters of credit
|
1,662
|
—
|
—
|
—
|
1,662
|
|||||||||||||||
Total Off-Balance Sheet Arrangements
|
$
|
197,795
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
197,795
|
September
30, 2018
|
December
31, 2017
|
|||||||
(Dollars in Thousands)
|
||||||||
Non-accrual loans (1):
|
||||||||
One-to-four family residential, including condominium and cooperative apartment
|
$
|
443
|
$
|
436
|
||||
Multifamily residential and residential mixed-use real estate
|
1,473
|
—
|
||||||
Commercial mixed use real estate
|
84
|
93
|
||||||
Commercial real estate
|
975
|
—
|
||||||
Consumer
|
3
|
4
|
||||||
Total non-accrual loans
|
2,978
|
533
|
||||||
Non-accrual one-to-four family residential and consumer loans deemed homogeneous loans
|
(446
|
)
|
(440
|
)
|
||||
TDRs:
|
||||||||
One-to-four family residential, including condominium and cooperative apartment
|
16
|
22
|
||||||
Multifamily residential and residential mixed-use real estate
|
277
|
619
|
||||||
Commercial mixed-use real estate
|
4,107
|
4,174
|
||||||
Commercial real estate
|
—
|
3,296
|
||||||
Total TDRs
|
4,400
|
8,111
|
||||||
Impaired loans
|
$
|
6,932
|
$
|
8,204
|
(1) |
There was one non-accruing TDR included in the total non-accrual loans in the table above at September 30, 2018. There were no non-accruing TDRs for
December 31, 2017.
|
Ratios:
|
||||||||
Total non-accrual loans to total loans
|
0.06
|
%
|
0.01
|
%
|
||||
Total non-performing assets to total assets
|
0.05
|
0.01
|
● |
A reduction of interest rate has been made for the remaining term of the loan
|
● |
The maturity date of the loan has been extended with a stated interest rate lower than the current market rate for new debt with similar risk
|
● |
The outstanding principal amount and/or accrued interest have been reduced
|
September
30, 2018
|
December
31, 2017
|
September
30, 2017
|
||||||||||
(Dollars in Thousands)
|
||||||||||||
Impaired loans
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Pass graded loans:
|
||||||||||||
Real estate loans
|
18,112
|
18,993
|
20,322
|
|||||||||
C&I loans
|
3,200
|
2,021
|
1,666
|
|||||||||
Consumer loans
|
18
|
19
|
19
|
|||||||||
Total
|
$
|
21,330
|
$
|
21,033
|
$
|
22,007
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
2018
|
2017
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|||||||||||||||||||
Assets:
|
(Dollars in Thousands)
|
|||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Real estate loans
|
$
|
5,200,021
|
$
|
47,486
|
3.65
|
%
|
$
|
5,842,921
|
$
|
51,621
|
3.53
|
%
|
||||||||||||
C&I loans
|
186,686
|
2,729
|
5.85
|
86,014
|
1,043
|
4.85
|
||||||||||||||||||
Other loans
|
1,358
|
18
|
5.30
|
1,230
|
19
|
6.18
|
||||||||||||||||||
MBS
|
432,213
|
2,852
|
2.64
|
5,631
|
27
|
1.92
|
||||||||||||||||||
Investment securities
|
11,158
|
59
|
2.12
|
9,304
|
108
|
4.64
|
||||||||||||||||||
Other
|
185,292
|
1,480
|
3.19
|
139,153
|
811
|
2.33
|
||||||||||||||||||
Total interest-earning assets
|
6,016,728
|
54,624
|
3.63
|
%
|
6,084,253
|
$
|
53,629
|
3.53
|
%
|
|||||||||||||||
Non-interest earning assets
|
215,073
|
206,315
|
||||||||||||||||||||||
Total assets
|
$
|
6,231,801
|
$
|
6,290,568
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing checking accounts
|
$
|
114,865
|
$
|
55
|
0.19
|
%
|
$
|
110,384
|
$
|
58
|
0.21
|
%
|
||||||||||||
Money Market accounts
|
2,264,082
|
7,542
|
1.32
|
2,643,537
|
5,961
|
0.89
|
||||||||||||||||||
Savings accounts
|
347,041
|
50
|
0.06
|
362,423
|
45
|
0.05
|
||||||||||||||||||
CDs
|
1,297,857
|
5,714
|
1.75
|
932,208
|
3,344
|
1.42
|
||||||||||||||||||
Borrowed funds
|
1,098,713
|
6,235
|
2.25
|
1,213,786
|
5,763
|
1.88
|
||||||||||||||||||
Total interest-bearing liabilities
|
5,122,558
|
19,596
|
1.52
|
%
|
5,262,338
|
$
|
5,763
|
1.14
|
%
|
|||||||||||||||
Non-interest-bearing checking accounts
|
362,786
|
307,218
|
||||||||||||||||||||||
Other non-interest-bearing liabilities
|
135,435
|
138,467
|
||||||||||||||||||||||
Total liabilities
|
5,620,779
|
5,708,023
|
||||||||||||||||||||||
Stockholders’ equity
|
611,022
|
582,545
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
6,231,801
|
$
|
6,290,568
|
||||||||||||||||||||
Net interest income
|
$
|
35,028
|
$
|
38,458
|
||||||||||||||||||||
Net interest spread
|
2.11
|
%
|
2.38
|
%
|
||||||||||||||||||||
Net interest-earning assets
|
$
|
894,170
|
$
|
821,915
|
||||||||||||||||||||
Net interest margin
|
2.33
|
%
|
2.53
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
117.46
|
%
|
115.62
|
%
|
||||||||||||||||||||
Deposits
|
$
|
4,386,631
|
$
|
13,361
|
1.21
|
%
|
$
|
4,355,770
|
$
|
9,408
|
0.86
|
%
|
Three Months Ended September 30,
2018
Compared to Three Months Ended
September 30, 2017
Increase/ (Decrease) Due to:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(Dollars In thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Real estate loans
|
$
|
(5,784
|
)
|
$
|
1,648
|
$
|
(4,136
|
)
|
||||
C&I loans
|
1,346
|
340
|
1,686
|
|||||||||
Other loans
|
2
|
(3
|
)
|
(1
|
)
|
|||||||
MBS
|
2,430
|
395
|
2,825
|
|||||||||
Investment securities
|
16
|
(65
|
)
|
(49
|
)
|
|||||||
Other
|
320
|
350
|
670
|
|||||||||
Total
|
$
|
(1,670
|
)
|
$
|
2,665
|
$
|
995
|
|||||
Interest-bearing liabilities:
|
||||||||||||
Interest-bearing checking accounts
|
$
|
2
|
$
|
(6
|
)
|
$
|
(4
|
)
|
||||
Money market accounts
|
(1,070
|
)
|
2,652
|
1,582
|
||||||||
Savings accounts
|
(3
|
)
|
8
|
5
|
||||||||
CDs
|
1,454
|
916
|
2,370
|
|||||||||
Borrowed funds
|
(603
|
)
|
1,075
|
472
|
||||||||
Total
|
$
|
(220
|
)
|
$
|
4,645
|
$
|
4,425
|
|||||
Net change in net interest income
|
$
|
(1,450
|
)
|
$
|
(1,980
|
)
|
$
|
(3,430
|
)
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2018
|
2017
|
|||||||||||||||||||||||
Average
Balance |
Interest
|
Average
Yield/Cost
|
Average
Balance
|
Interest
|
Average
Yield/Cost
|
|||||||||||||||||||
Assets:
|
(Dollars in Thousands)
|
|||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Real estate loans
|
$
|
5,314,378
|
$
|
$144,889
|
3.64
|
%
|
$
|
5,763,348
|
$
|
153,233
|
3.54
|
%
|
||||||||||||
C&I loans
|
156,543
|
6,541
|
5.57
|
43,421
|
1,558
|
4.78
|
||||||||||||||||||
Other loans
|
1,195
|
55
|
6.14
|
1,124
|
55
|
6.52
|
||||||||||||||||||
MBS
|
390,927
|
7,515
|
2.56
|
4,193
|
55
|
1.75
|
||||||||||||||||||
Investment securities
|
9,298
|
123
|
1.76
|
14,372
|
462
|
4.29
|
||||||||||||||||||
Other
|
197,439
|
4,537
|
3.06
|
115,787
|
2,139
|
2.46
|
||||||||||||||||||
Total interest-earning assets
|
6,069,780
|
163,660
|
3.60
|
%
|
5,942,245
|
$
|
157,502
|
3.53
|
%
|
|||||||||||||||
Non-interest earning assets
|
218,966
|
206,375
|
||||||||||||||||||||||
Total assets
|
$
|
6,288,746
|
$
|
6,148,620
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing checking accounts
|
$
|
121,937
|
$
|
166
|
0.18
|
%
|
$
|
111,813
|
$
|
$181
|
0.22
|
%
|
||||||||||||
Money Market accounts
|
2,349,419
|
20,753
|
1.18
|
2,701,404
|
17,880
|
0.88
|
||||||||||||||||||
Savings accounts
|
353,707
|
165
|
0.06
|
366,168
|
136
|
0.05
|
||||||||||||||||||
CDs
|
1,225,272
|
15,016
|
1.63
|
959,966
|
10,227
|
1.43
|
||||||||||||||||||
Borrowed funds
|
1,134,797
|
18,384
|
2.16
|
966,710
|
15,080
|
2.09
|
||||||||||||||||||
Total interest-bearing liabilities
|
5,185,132
|
54,484
|
1.40
|
%
|
5,106,061
|
$
|
43,504
|
1.14
|
%
|
|||||||||||||||
Non-interest-bearing checking accounts
|
336,444
|
299,744
|
||||||||||||||||||||||
Other non-interest-bearing liabilities
|
158,485
|
166,496
|
||||||||||||||||||||||
Total liabilities
|
5,680,061 |
5,572,301
|
||||||||||||||||||||||
Stockholders’ equity
|
608,685
|
576,319
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
6,288,746
|
$
|
6,148,620
|
||||||||||||||||||||
Net interest income
|
$
|
109,176
|
$
|
113,998
|
||||||||||||||||||||
Net interest spread
|
2.20
|
%
|
2.39
|
%
|
||||||||||||||||||||
Net interest-earning assets
|
$
|
884,648
|
$
|
836,184
|
||||||||||||||||||||
Net interest margin
|
2.43
|
%
|
2.56
|
%
|
||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities
|
117.06
|
%
|
116.38
|
%
|
||||||||||||||||||||
Deposits
|
$
|
4,386,779
|
$
|
36,100
|
1.10
|
%
|
$
|
4,439,095
|
$
|
28,424
|
0.86
|
%
|
Nine Months Ended September 30,
2018
Compared to Nine Months Ended
September 30, 2017
Increase/ (Decrease) Due to:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(Dollars In thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Real estate loans
|
$
|
($12,302
|
)
|
$
|
$3,958
|
$
|
($8,344
|
)
|
||||
C&I loans
|
4,393
|
591
|
4,984
|
|||||||||
Other loans
|
3
|
(3
|
)
|
—
|
||||||||
MBS
|
6,254
|
1,205
|
7,459
|
|||||||||
Investment securities
|
(114
|
)
|
(225
|
)
|
(339
|
)
|
||||||
Other
|
1,693
|
705
|
2,398
|
|||||||||
Total
|
$
|
(73
|
)
|
$
|
6,231
|
$
|
6,158
|
|||||
Interest-bearing liabilities:
|
||||||||||||
Interest-bearing checking accounts
|
$
|
17
|
$
|
(33
|
)
|
$
|
(16
|
)
|
||||
Money market accounts
|
(2,775
|
)
|
5,648
|
2,873
|
||||||||
Savings accounts
|
(2
|
)
|
31
|
29
|
||||||||
CDs
|
3,057
|
1,733
|
4,790
|
|||||||||
Borrowed funds
|
2,714
|
590
|
3,304
|
|||||||||
Total
|
$
|
3,011
|
$
|
7,969
|
$
|
10,980
|
||||||
Net change in net interest income
|
$
|
(3,084
|
)
|
$
|
(1,738
|
)
|
$
|
(4,822
|
)
|
At September 30, 2018
|
At December 31, 2017
|
|||||||||||||||||||||||
EVE
|
Dollar
Change
|
Percentage
Change
|
EVE
|
Dollar
Change
|
Percentage
Change
|
|||||||||||||||||||
Rate Shock Scenario
|
(Dollars in Thousands)
|
|||||||||||||||||||||||
+ 200 Basis Points
|
$
|
717,011
|
$
|
(57,999
|
)
|
(7.5
|
)%
|
$
|
572,782
|
$
|
(93,677
|
)
|
(14.1
|
)%
|
||||||||||
Pre-Shock Scenario
|
775,010
|
—
|
—
|
666,459
|
—
|
—
|
Gradual Change in Interest rates of:
|
Percentage Change in
Net Interest Income (1)
|
|||
+ 200 Basis Points
|
(2.08
|
)%
|
||
+ 100 Basis Points
|
(1.99
|
)%
|
(1) |
The impact of 100 and 200 basis point reductions in interest rates are not presented in view of the current level of the federal funds rate and other short-term interest
rates.
|
(a) |
Not applicable.
|
(b) |
Not applicable.
|
Exhibit Number
|
|
Amended and Restated Certificate of Incorporation of Dime Community Bancshares, Inc. (incorporated by reference to Exhibit 3.1 to the
Registrant’s Transition Report on Form 10-K for the transition period ended December 31, 2002, filed with the SEC on March 28, 2003 (File No. 000-27782))
|
|
Amended and Restated Bylaws of Dime Community Bancshares, Inc. (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K, filed with the SEC on September 28, 2018 (File No. 000-27782))
|
|
Draft Stock Certificate of Dime Community Bancshares, Inc. (incorporated by reference to Exhibit 4.3 to the Registrant’s Annual Report on Form
10-K for the fiscal year ended June 30, 1998, filed with the SEC on September 28, 1998 (File No. 000-27782))
|
|
Indenture, dated as of June 13, 2017, by and between Dime Community Bancshares, Inc. and Wilmington Trust, National Association, as Trustee
(incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K, filed with the SEC on June 13, 2017 (File No. 000-27782))
|
|
First Supplemental Indenture, dated as of June 13, 2017, by and between Dime Community Bancshares, Inc. and Wilmington Trust, National
Association, as Trustee, including the form of 4.50% fixed-to-floating rate subordinated debentures due 2027 (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K, filed with the SEC on June 13, 2017
(File No. 000-27782))
|
|
Computation of ratio of earnings to fixed charges
|
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350
|
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. 1350
|
|
101
|
Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended
September 30, 2018 is formatted in XBRL (Extensible Business Reporting Language) interactive data files: (i) the Consolidated Statements of Financial Condition (Unaudited), (ii) the Consolidated Statements of Income f(Unaudited), (iii)
the Consolidated Statements of Comprehensive Income (Unaudited), (iv) the Consolidated Statements of Changes in Stockholders’ Equity (Unaudited), (v) the Consolidated Statements of Cash Flows (Unaudited), and (vi) the Notes to Unaudited
Condensed Consolidated Financial Statements **
|
Dated: November 8, 2018
|
By:
|
/s/ KENNETH J. MAHON
|
|
Kenneth J. Mahon
|
|||
President and Chief Executive Officer
|
Dated: November 8, 2018
|
By:
|
/s/ JAMES L. RIZZO
|
|
James L. Rizzo
|
|||
Senior Vice President and Comptroller
(Principal Financial Officer)
|
[-- Start “Cover Page and Index” Segment --]
[-- End “Signatures” Segment --]