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EX - 99.1 2 dcom - 20210430ex9914cc689.htm EX - 99.1 Page 1 Exhibit 99.1 DIME Co Community Bancshares , Inc. DIME COMMUNITY BANCSHARES , INC . REPORTS FIRST QUARTER 2021 RESULTS First Quarter Results Highlighted by Robust Deposit Growth and PPP Originations Announces Plans to Resume Share Repurchase Program Hauppauge , NY , April 30 , 2021 ( GLOBE NEWSWIRE ) -- Dime Community Bancshares , Inc. ( NASDAQ : DCOM ) ( the " Company " or " Dime ” or “ its ” ) , the parent company of Dime Community Bank ( the “ Bank ” ) , today reported a net loss to common stockholders of $ 22.9 million for the quarter ended March 31 , 2021 , or $ 0.66 per diluted common share , compared with net income to common stockholders of $ 3.3 million for the quarter ended December 31 , 2020 , or $ 0.16 per diluted common share , and net income to common stockholders of $ 8.4 million for the quarter ended March 31 , 2020 , or $ 0.37 per diluted common share . Adjusted net income to common stockholders ( non - GAAP ) totaled $ 32.4 million for the quarter ended March 31 , 2021 , or $ 0.94 per diluted share¹ . Adjusted net income to common stockholders includes the following primary adjustments : • Merger expenses and transaction costs : The Company completed its merger of equals transaction in the first quarter of 2021 ; associated merger expenses and transaction costs were $ 37.9 million , pre - tax ; Termination of Borrowings and Sale of Securities : The Company utilized excess liquidity on the balance sheet to restructure its wholesale borrowings portfolio and also repositioned its securities portfolio in the first quarter of 2021 ; this resulted in a pre - tax loss on termination of derivatives of $ 16.5 million , a pre- tax loss on extinguishment of debt of $ 1.6 million , and a pre - tax gain on sale of securities of $ 0.7 million ; Provision for credit losses on acquired non - purchase credit deteriorated ( “ Non - PCD " ) loans of $ 20.3 million , pre - tax . Kevin M. O'Connor , Chief Executive Officer ( " CEO ” ) of the Company , stated , “ Our merger closed on February 1 , 2021 , creating the premier community - based business bank from Montauk to Manhattan with over $ 13 billion in total assets . Since the closing , we have had significant growth in our client base - in fact , since February 1 , total deposits increased by over $ 800 million and we were again the leading community bank provider of Paycheck Protection Program ( “ PPP ” ) loans in our footprint with approximately $ 575 million of originations . I am also pleased to announce we successfully converted our core system over the weekend of April 17th . Having completed this conversion , we see a significant opportunity to capitalize on the disruption in our marketplace from recently announced large M & A transactions involving our competitors . " Mr. O ' Connor continued , " While accounting rules under the CECL standard required us to book a large provision for credit loss expense in the first quarter on acquired Non - PCD loans , contributing to the reported net loss for the quarter , I am extremely pleased with the underlying fundamental trends in our business as well as our pipelines for future growth . The loss absorption capacity on the balance sheet post - merger , and the unique culture we have forged through our core conversion gives me tremendous confidence in our future prospects . " Highlights for the First Quarter of 2021 Included : • The non - interest - bearing deposits to total deposits ratio increased to 32.7 % at March 31 , 2021 and the cost of deposits for the first quarter of 2021 was proactively managed lower to 0.25 % ; Originated $ 573.3 million of PPP loans during the first quarter of 2021. Net unrecognized deferred fees related to PPP loans were $ 24.4 million at March 31 , 2021 ; The total provision for credit losses was $ 15.8 million . The provision expense on the acquired Non - PCD loans was $ 20.3 million and the provision for unfunded commitments ( " UFC " ) was $ 3.1 million . The provision on the remainder of the portfolio was negative $ 7.6 million primarily as a result of improvement in forecasted macroeconomic conditions . The provision expenses for the acquired Non - PCD loans and UFC are the result of