GlobeNewswire Inc | Jan 28, 2022 06:00AM EST

January 28, 2022

Continued Increase in Non-Interest-Bearing Deposits Positions the Company Well for A Rising Interest Rate Scenario

Robust Quarterly Loan Originations in Excess of $500 Million

HAUPPAUGE, N.Y., Jan. 28, 2022 (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 $96.7 million for the year ended December 31, 2021, or $2.45 per diluted common share.

For the quarter ended December 31, 2021, net income available to common stockholders was $33.5 million, or $0.83 per diluted common share, compared to net income available to common stockholders of $3.3 million for the quarter ended December 31, 2020, or $0.16 per diluted common share. Adjusted net income available to common stockholders (non-GAAP) totaled $33.8 million for the quarter ended December 31, 2021, or $0.84 per diluted share. Adjusted net income available to common stockholders includes $0.5 million of aggregate pre-tax adjustments related to merger expenses and transaction costs, branch restructuring, and net gain on sale of securities and other assets (see Non-GAAP Reconciliation table at the end of this news release).

Kevin M. OConnor, Chief Executive Officer (CEO) of the Company, stated, As we close the book on 2021, we can reflect on a successful year for our Company. We integrated our merger transaction seamlessly and delivered on our financial goals as it relates to return on assets and efficiency. During the fourth quarter of 2021, our loan originations increased to $505 million (representing a linked quarter increase of approximately 9%). In addition, we grew our non-interest-bearing deposits to total deposits ratio to 37.5% and have positioned our balance sheet favorably for a rising rate scenario.

Highlights for the Fourth Quarter of 2021 Included:

-- The non-interest-bearing deposits to total deposits ratio increased to 37.5% at December 31, 2021; -- The cost of deposits for the fourth quarter of 2021 declined to 0.11%; -- Total loans held for investment, net, excluding Paycheck Protection Program (PPP) loans increased by 1% on an annualized basis versus the linked quarter; -- The reported efficiency ratio for the fourth quarter of 2021 was 49.9%; excluding the impact of merger expenses and transaction costs, branch restructuring, and amortization of other intangible assets, the adjusted efficiency ratio was 48.2%; -- The Company repurchased 850,901 shares of its common stock, which represented approximately 2% of shares outstanding at the beginning of the period, at a weighted average price of $34.44; and -- Non-performing assets represented only 0.33% of total assets as of December 31, 2021.

Managements Discussion of Quarterly Operating Results

The Companys results of operations for the third and fourth quarters of 2021 include income for the full quarter from the merger with Bridge Bancorp, Inc. (Bridge). The Companys historical information for the fourth quarter of 2020 does not include the historical GAAP results of Bridge.

Net Interest Income

Net interest income for the fourth quarter of 2021 was $91.7 million compared to $94.8 million for the third quarter of 2021 and $48.7 million for the fourth quarter of 2020.

The table below provides a reconciliation of the reported Net Interest Margin (NIM), the adjusted NIM excluding the impact of PPP loans, and the adjusted NIM excluding the combined impact of PPP loans and purchasing accounting accretion on the loan portfolio.

($ in thousands) Q4 2021 Q3 2021 Q4 2020Net interest income $ 91,686 $ 94,828 $ 48,680 Less: Net interest income on (539 ) (2,502 ) (1,678 )PPP loansAdjusted net interest incomeexcluding PPP loans, $ 91,147 $ 92,326 $ 47,002 (non-GAAP) Average interest-earning $ 11,582,086 $ 11,765,298 $ 6,281,488 assetsAverage PPP loan balances (96,065 ) (266,472 ) (318,793 )Adjusted averageinterest-earning assets $ 11,486,021 $ 11,498,826 $ 5,962,695 excluding PPP loans,(non-GAAP) NIM^ (1) 3.14 % 3.20 % 3.10 %Adjusted NIM excluding PPP 3.15 % 3.19 % 3.15 %loans (non-GAAP)^ (2) Adjusted net interest incomeexcluding PPP loans, $ 91,147 $ 92,326 $ 47,002 (non-GAAP)Less: Purchase Accounting 625 (2,541 ) ? Accretion on loans ("PAA")Adjusted net interest incomeexcluding PPP loans and PAA $ 91,772 $ 89,785 $ 47,002 on loans, (non-GAAP)Adjusted NIM excluding PPPloans and PAA on loans, 3.17 % 3.10 % 3.15 %(non-GAAP) ^(3)

(1)NIM represents net interest income divided by average interest-earning assets.(2)Adjusted NIM excluding PPP represents adjusted net interest income, which excludes net interest income on PPP loans divided by average interest-earning assets excluding PPP loans. The net interest income on PPP loans is calculated using interest income on the PPP balances less an assumed cost of funding the PPP loans, using the overall cost of funds of the Company.(3)Adjusted NIM excluding PPP and PAA represents adjusted net interest income, which excludes net interest income on PPP loans and PAA, divided by adjusted average interest-earning assets excluding PPP loans.

Loan Portfolio

The ending weighted average rate (WAR)(1) on the total loan portfolio was 3.73% at December 31, 2021, a 1 basis point increase compared to the ending WAR on the total loan portfolio at September 30, 2021. Excluding the impact of PPP loans, the WAR on the loan portfolio was 3.75% at December 31, 2021, compared to 3.76% at September 30, 2021.

Outlined below are loan balances and WARs for the period ended as indicated.

December31,2021 September30,2021 December31,2020 ($ in thousands) Balance WAR Balance WAR Balance WAR Loans held forinvestment balances at periodend:One-to-four familyresidential,including $ 669,282 3.63 % $ 683,665 3.68 % $ 184,989 3.76 %condominium andcooperativeapartmentMultifamilyresidential and 3,356,346 3.56 3,468,262 3.57 2,758,743 3.75 residentialmixed-use ^(2)(3)Non-owner-occupiedcommercial real 2,915,693 3.69 2,844,171 3.70 1,560,811 3.86 estate ("CRE")Owner-occupied CRE 1,030,255 4.05 970,266 4.11 317,356 4.14 Acquisition,development, and 322,628 4.53 285,379 4.69 156,296 5.02 construction("ADC")Commercial and 867,542 4.08 878,332 4.10 319,626 4.49 industrial ("C&I")Other loans 16,898 5.85 20,713 4.97 2,316 7.63 Loans held forinvestment 9,178,644 3.75 9,150,788 3.76 5,300,137 3.89 excluding PPP PPP 66,017 1.00 134,083 1.00 321,907 1.00 Total loans heldfor investment $ 9,244,661 3.73 % $ 9,284,871 3.72 % $ 5,622,044 3.73 %including PPP

(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 multifamily loans underlying 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, excluding PPP, for the quarter ended as indicated.

($ in millions) Q4 2021 Q3 2021 Q4 2020Loan originations, excluding PPP $ 505.1 $ 464.9 $ 223.8

Deposits

Total deposits decreased by $215.1 million on a linked quarter basis to $10.5 billion at December 31, 2021. The decline in total deposits was primarily due to the Bank not renewing higher-cost certificates of deposit accounts.

CEO OConnor stated, We continued to focus on reducing higher-rate, promotional or rate-sensitive deposits in our portfolio as we prepare for higher interest rates. The weighted-average rate on our deposit portfolio declined to 0.09% at December 31, 2021.

Non-interest-bearing deposits increased $98.6 million during the fourth quarter of 2021 to $3.9 billion at December 31, 2021, representing 37.5% of total deposits.

As of December 31, 2021, the Company had $324.9 million of certificates of deposits, with a weighted average rate of 0.29%, that were set to mature during the first quarter of 2022 and $376.3 million of certificates of deposits, with a weighted average rate of 0.69%, that were set to mature during the remainder of 2022.

Non-Interest Income

Non-interest income was $10.2 million during the fourth quarter of 2021, $9.7 million during the third quarter of 2021, and $2.5 million during the fourth quarter of 2020. Excluding the net gain on sale of securities and other assets, adjusted non-interest income was $9.2 million during the fourth quarter of 2021. The net gain on sale of securities and other assets during the fourth quarter of 2021 was primarily due to the sale of a branch property. Excluding the loss on termination of derivatives and net gain on sale of securities and other assets, adjusted non-interest income was $7.9 million during the fourth quarter of 2020 (see Non-GAAP Reconciliation table at the end of this news release).

Non-Interest Expense

Total non-interest expense was $50.8 million during the fourth quarter of 2021, $56.8 million during the third quarter of 2021, and $37.6 million during the fourth quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring, and amortization of other intangible assets, adjusted non-interest expense was $48.7 million during the fourth quarter of 2021, compared to $49.1 million during the third quarter of 2021, and $25.3 million during the fourth quarter of 2020 (see Non-GAAP Reconciliation table at the end of this news release).

The ratio of non-interest expense to average assets was 1.64% during the fourth quarter of 2021, compared to 1.80% during the linked quarter and 2.28% for the fourth quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.57% during the fourth quarter of 2021, compared to 1.56% during the linked quarter and 1.53% for the fourth quarter of 2020 (see Non-GAAP Reconciliation table at the end of this news release).

The efficiency ratio was 49.9% during the fourth quarter of 2021, compared to 54.3% during the linked quarter and 73.4% during the fourth quarter of 2020. Excluding the impact of merger expenses and transaction costs, branch restructuring, and amortization of other intangible assets, the adjusted efficiency ratio was 48.2% during the fourth quarter of 2021, compared to 46.9% during the linked quarter and 44.8% during the fourth quarter of 2020 (see Non-GAAP Reconciliation table at the end of this news release).

Income Tax Expense

The reported effective tax rate for the fourth quarter of 2021 was 30.9%, compared to 27.5% for the third quarter of 2021, and 31.5% for the fourth quarter of 2020. The increase in the effective tax rate during the fourth quarter of 2021 was primarily the result of higher non-deductible expenses during the period.

Credit Quality

Non-performing loans at December 31, 2021 were $40.3 million, or 0.44% of total loans.

Excluding the impact of purchased loans with credit deterioration (PCD loans), non-performing loans would have been $32.2 million, or 0.36% of total loans (excluding PCD loans).

A credit loss recovery of $132 thousand was recorded during the fourth quarter of 2021, compared to a credit loss recovery of $5.2 million during the third quarter of 2021, and a credit loss provision of $6.2 million during the fourth quarter of 2020.

The allowance for credit losses as a percentage of total loans was 0.91% at December 31, 2021 as compared to 0.88% at September 30, 2021 and 0.74% at December 31, 2020.

Loans with Payment Deferrals

Loans subject to full principal and interest (P&I) payment deferrals declined to $5.7 million and represented 0.1% of the total loan portfolio at December 31, 2021.

Capital Management

The Companys and the Banks regulatory capital ratios continued to be in excess of all applicable regulatory requirements.

CEO OConnor commented, During the fourth quarter, we continued to execute on our share repurchase program and we repurchased $29.3 million of common stock. Our tangible equity to tangible assets ratio increased by 14 basis points in the quarter to 8.64%. Our strong balance sheet and internal stress testing analyses continue to provide support for future capital return to shareholders (see Non-GAAP Reconciliation tables at the end of this news release).

Dividends per common share were $0.24 during the fourth quarter of 2021.

Book value per common share was $26.98 and tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by number of shares outstanding) was $22.87 at December 31, 2021 (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 January 28, 2022, during which CEO OConnor will discuss the Companys fourth quarter and fiscal year 2021 performance, with a question and answer session to follow. Dial-in information for the live call is 1-888-348-2672. Upon dialing in, request to be joined into Dime Community Bancshares, Inc. call with the conference operator.

The conference call will be simultaneously webcast (listen only), and archived for a period of one year, at https://services.choruscall.com/links/dcom220128.html. Dial-in information for the replay is 1-877-344-7529 using access code #6633695. Replay will be available beginning on January 28, 2022 at 10:30 a.m. through February 11, 2022 at 11:59 p.m.

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 $12.0 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 "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 Companys control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of the Company; unanticipated or significant increases in loan losses may negatively affect the Companys financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Companys 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 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; legislation or regulatory changes may adversely affect the Companys 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. Further, given its ongoing and dynamic nature, it is difficult to predict what effects the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, result in a decline in demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch closures, work stoppages and unavailability of personnel; and increased cybersecurity risks, as employees work remotely. 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 Companys Annual Report on Form 10-K and subsequent updates set forth in the Companys Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Contact: Avinash ReddySenior Executive Vice President Chief Financial Officer718-782-6200 extension 5909



DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(In thousands)

December31, September 30, December 31, 2021 2021 2020Assets: Cash and due from $ 393,722 $ 629,011 $ 243,603 banksSecuritiesavailable-for-sale, 1,563,711 1,709,063 538,861 at fair valueSecurities 179,309 40,303 ? held-to-maturityMarketable equitysecurities, at fair ? ? 5,970 valueLoans held for sale 5,493 14,720 5,903 Loans held for investment, net:One-to-four familyand cooperative/ 669,282 683,665 184,989 condominiumapartmentMultifamilyresidential and 3,356,346 3,468,262 2,758,743 residentialmixed-use ^(1)(2)CRE 3,945,948 3,814,437 1,878,167 ADC 322,628 285,379 156,296 Total real estate 8,294,204 8,251,743 4,978,195 loansC&I 867,542 878,332 319,626 Small BusinessAdministration("SBA") Paycheck 66,017 134,083 321,907 Protection Program("PPP") loansOther loans 16,898 20,713 2,316 Allowance for credit (83,853 ) (81,255 ) (41,461 )lossesTotal loans held for 9,160,808 9,203,616 5,580,583 investment, netPremises and fixed 50,368 49,615 19,053 assets, netPremises held for 556 2,799 ? saleRestricted stock 37,732 37,719 60,707 Bank Owned Life 295,789 293,898 156,096 Insurance ("BOLI")Goodwill 155,797 155,339 55,638 Other intangible 8,362 9,077 ? assetsOperating lease 64,258 56,836 33,898 assetsDerivative assets 45,086 41,700 18,932 Accrued interest 40,149 43,284 34,815 receivableOther assets 65,224 77,401 27,551 Total assets $ 12,066,364 $ 12,364,381 $ 6,781,610 Liabilities: Non-interest-bearing $ 3,920,423 $ 3,821,832 $ 780,751 checkingInterest-bearing 905,717 989,526 290,300 checkingSavings 1,158,040 1,188,794 414,809 Money market 3,621,552 3,657,669 1,716,624 Certificates of 853,242 1,016,216 1,322,638 depositTotal deposits 10,458,974 10,674,037 4,525,122 FHLBNY advances 25,000 25,000 1,204,010 Other short-term 1,862 2,629 120,000 borrowingsSubordinated debt, 197,096 197,142 114,052 netOperating lease 66,103 62,870 39,874 liabilitiesDerivative 40,728 38,889 37,374 liabilitiesOther liabilities 83,981 162,697 40,082 Total liabilities 10,873,744 11,163,264 6,080,514 Stockholders' equity:Preferred stock, 116,569 116,569 116,569 Series ACommon stock 416 416 348 Additional paid-in 494,125 493,775 278,295 capitalRetained earnings 654,726 630,744 600,641 Accumulated othercomprehensive loss, (6,181 ) (1,042 ) (5,924 )net of deferredtaxesUnearned equity (7,842 ) (9,417 ) ? awardsCommon stock held bythe Benefit ? ? (1,496 )Maintenance PlanTreasury stock, at (59,193 ) (29,928 ) (287,337 )costTotal stockholders' 1,192,620 1,201,117 701,096 equityTotal liabilitiesand stockholders' $ 12,066,364 $ 12,364,381 $ 6,781,610 equity

(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 SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands except share and per share amounts)

Three Months Ended Year Ended December31, September30, December31, December31, December31, 2021 2021 2020 2021 2020Interest income:Loans $ 89,301 $ 94,045 $ 55,002 $ 359,016 $ 216,566 Securities 7,097 6,030 3,365 22,634 14,159 Othershort-term 414 583 705 2,976 3,282 investmentsTotal interest 96,812 100,658 59,072 384,626 234,007 incomeInterest expense:Deposits and 2,861 3,565 4,740 16,527 33,038 escrowBorrowed funds 2,265 2,265 5,652 10,490 23,265 Total interest 5,126 5,830 10,392 27,017 56,303 expenseNet interest 91,686 94,828 48,680 357,609 177,704 income(Credit)provision for (132 ) (5,187 ) 6,162 6,212 26,165 credit lossesNet interestincome after 91,818 100,015 42,518 351,397 151,539 (credit)provision Non-interest income:Servicecharges and 4,621 4,581 1,653 15,998 5,571 other feesTitle fees 735 482 ? 2,338 ? Loan levelderivative 113 445 3,671 2,909 8,872 incomeBOLI income 1,890 2,249 1,028 7,071 4,859 Gain on saleof SBA loans 851 348 146 2,336 1,118 excluding PPPGain on sale ? ? ? 20,697 ? of PPP loansGain on saleof residential 225 304 910 1,758 1,884 loansNet gain onequity ? ? 222 131 361 securitiesNet gain onsale of 975 ? 1,235 1,705 4,592 securities andother assetsLoss ontermination of ? ? (6,596 ) (16,505 ) (6,596 )derivativesOther 769 1,319 233 3,630 612 Totalnon-interest 10,179 9,728 2,502 42,068 21,273 incomeNon-interest expense:Salaries andemployee 27,638 28,276 15,726 108,331 60,756 benefitsSeverance ? ? ? 1,875 4,000 Occupancy and 7,784 7,814 4,116 30,697 16,177 equipmentDataprocessing 4,506 3,573 2,152 16,638 8,329 costsMarketing 1,959 1,054 318 4,661 1,458 Professional 2,130 2,751 681 9,284 3,394 servicesFederaldeposit 1,031 1,173 490 4,077 2,257 insurancepremiumsLoss onextinguishment ? ? 1,104 1,751 1,104 of debtCurtailment ? ? (1,651 ) 1,543 (1,651 )(gain) lossMergerexpenses and 2,574 2,472 12,829 44,824 15,256 transactioncostsBranch (1,118 ) 4,518 ? 5,059 ? restructuringAmortizationof other 715 715 ? 2,622 ? intangibleassetsOther 3,610 4,437 1,824 13,937 6,748 Totalnon-interest 50,829 56,783 37,589 245,299 117,828 expense Income before 51,168 52,960 7,431 148,166 54,984 taxesIncome tax 15,811 14,565 2,339 44,170 12,666 expenseNet income 35,357 38,395 5,092 103,996 42,318 Preferredstock 1,821 1,822 1,821 7,286 4,783 dividendsNet incomeavailable to $ 33,536 $ 36,573 $ 3,271 $ 96,710 $ 37,535 commonstockholders Earnings percommon share ("EPS"):Basic $ 0.83 $ 0.89 $ 0.16 $ 2.45 $ 1.74 Diluted $ 0.83 $ 0.89 $ 0.16 $ 2.45 $ 1.74 Average commonsharesoutstanding 39,876,825 40,426,161 21,233,018 38,903,037 21,538,448 for dilutedEPS

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED SELECTED FINANCIAL HIGHLIGHTS(Dollars in thousands except per share amounts)

At or For the Three Months Ended At or For the Year Ended December31, September 30, December31, December31, December31, 2021 2021 2020 2021 2020 Per Share Data: Reported EPS $ 0.83 $ 0.89 $ 0.16 $ 2.45 $ 1.74 (Diluted)Cash dividendspaid per common 0.24 0.24 0.22 0.96 0.86 shareBook value per 26.98 26.64 27.53 26.98 27.53 common shareTangible commonbook value per 22.87 22.60 24.91 22.87 24.91 share ^(1)Common shares 39,878 40,715 21,233 39,878 21,233 outstandingDividend payout 28.92 % 26.97 % 135.03 % 39.18 % 49.79 %ratio PerformanceRatios (Based upon ReportedNet Income):Return on 1.14 % 1.22 % 0.31 % 0.86 % 0.66 %average assetsReturn on 11.67 12.69 2.89 8.96 6.30 average equityReturn onaverage tangible 14.61 15.96 2.45 11.09 7.14 common equity ^(1)Net interest 3.14 3.20 3.10 3.15 2.90 marginNon-interestexpense to 1.64 1.80 2.28 2.03 1.83 average assetsEfficiency ratio 49.9 54.3 73.4 61.4 59.2 Effective tax 30.90 27.50 31.48 29.81 23.04 rate Balance Sheet Data:Average assets $ 12,419,184 $ 12,584,372 $ 6,604,409 $ 12,112,800 $ 6,424,251 Averageinterest-earning 11,582,086 11,765,298 6,281,488 11,354,111 6,122,643 assetsAverage tangiblecommon equity ^ 931,503 929,131 533,476 888,128 525,817 (1)Loan-to-depositratio at end of 88.4 87.0 124.2 88.4 124.2 period Capital Ratiosand Reserves - Consolidated: ^(3)Tangible commonequity to 7.66 % 7.54 % 7.86 % tangible assets^(1)Tangible equityto tangible 8.64 8.50 9.60 assets ^(1)Tier 1 common 9.50 9.92 10.22 equity ratioTier 1risk-based 10.71 11.17 12.44 capital ratioTotal risk-based 13.47 14.13 15.44 capital ratioTier 1 leverage 8.46 8.37 9.95 ratioCRE consolidatedconcentration 519 516 554 ratio ^(2)Allowance forcredit losses/ 0.91 0.88 0.74 Total loansAllowance forcredit losses/ 208.04 238.84 231.26 Non-performingloans

(1)See "Non-GAAP Reconciliation" table for reconciliation of tangible equity, tangible common equity, and tangible assets. Average balances are calculated using the ending balance for months during the period indicated.(2)The CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner occupied commercial real estate, multifamily, and ADC, divided by consolidated capital. December 31, 2021 amounts are preliminary pending completion and filing of the Companys regulatory reports.(3)December 31, 2021 amounts are preliminary pending completion and filing of the Companys regulatory reports.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME(Dollars in thousands)

Three Months Ended December31,2021 September30,2021 December31,2020 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 $ 8,293,470 $ 78,367 3.75 % $ 8,289,973 $ 78,820 3.77 % $ 4,966,327 $ 49,487 3.99 %Commercial and 873,273 10,119 4.60 868,508 12,143 5.55 328,754 3,252 3.96 industrial loansSBA PPP loans 96,065 583 2.41 266,472 2,643 3.94 318,793 2,252 2.83 Other loans 18,385 232 5.01 21,391 439 8.14 1,318 11 3.34 Securities 1,729,191 7,097 1.63 1,438,348 6,030 1.66 498,861 3,365 2.70 Other short-term 571,702 414 0.29 880,606 583 0.26 167,435 705 1.68 investmentsTotal interest-earning 11,582,086 96,812 3.32 % 11,765,298 100,658 3.39 % 6,281,488 59,072 3.76 %assetsNon-interest-earning 837,098 819,074 322,921 assetsTotal assets $ 12,419,184 $ 12,584,372 $ 6,604,409 Liabilities and Stockholders' Equity:Interest-bearing liabilities:Interest-bearing $ 962,597 $ 455 0.19 % $ 1,000,435 $ 388 0.15 % $ 259,155 $ 142 0.22 %checkingMoney market 3,652,681 1,087 0.12 3,698,124 1,467 0.16 1,679,578 1,285 0.30 Savings 1,174,719 108 0.04 1,335,310 170 0.05 408,241 141 0.14 Certificates of deposit 915,210 1,211 0.52 1,138,853 1,540 0.54 1,333,079 3,172 0.95 Total interest-bearing 6,705,207 2,861 0.17 7,172,722 3,565 0.20 3,680,053 4,740 0.51 depositsFHLBNY advances 25,000 61 0.97 25,000 59 0.94 1,172,191 4,319 1.47 Subordinated debt, net 197,126 2,204 4.44 197,172 2,206 4.44 114,028 1,330 4.64 Other short-term 2,484 ? ? 2,290 ? ? 4,424 3 0.27 borrowingsTotal borrowings 224,610 2,265 4.00 224,462 2,265 4.00 1,290,643 5,652 1.74 Total interest-bearing 6,929,817 5,126 0.29 % 7,397,184 5,830 0.31 % 4,970,696 10,392 0.83 %liabilitiesNon-interest-bearing 4,096,046 3,789,623 795,204 checkingOthernon-interest-bearing 181,074 186,977 132,826 liabilitiesTotal liabilities 11,206,937 11,373,784 5,898,726 Stockholders' equity 1,212,247 1,210,588 705,683 Total liabilities and $ 12,419,184 $ 12,584,372 $ 6,604,409 stockholders' equityNet interest income $ 91,686 $ 94,828 $ 48,680 Net interest rate spread 3.03 % 3.08 % 2.93 %Net interest margin 3.14 % 3.20 % 3.10 %Deposits (includingnon-interest-bearing $ 10,801,253 $ 2,861 0.11 % $ 10,962,345 $ 3,565 0.13 % $ 4,475,257 $ 4,740 0.42 %checking accounts)

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED SCHEDULE OF NON-PERFORMING ASSETS(Dollars in thousands)

At or For the Three Months Ended December31, September30, December31,Asset Quality Detail 2021 2021 2020Non-performing loans ("NPLs") ^(1)One-to-four familyresidential,including condominium $ 7,623 $ 4,938 $ 858 and cooperativeapartmentMultifamilyresidential and ? 859 1,863 residential mixed-useCRE 5,053 4,122 2,704 ADC ? ? ? C&I 27,266 23,727 12,502 Other 365 374 1 Total Non-accrual $ 40,307 $ 34,020 $ 17,928 loansTotal Non-performing $ 40,307 $ 34,020 $ 17,928 assets ("NPAs") Loans 90 daysdelinquent and accruing ("90+Delinquent")One-to-four familyresidential,including condominium $ 1,945 $ 5,021 $ 44 and cooperativeapartmentMultifamilyresidential and ? ? 437 residential mixed-useCRE ? 1,004 ? ADC ? ? ? C&I 1,056 257 2,848 Other ? ? ? 90+ Delinquent $ 3,001 $ 6,282 $ 3,329 NPAs and 90+ $ 43,308 $ 40,302 $ 21,257 Delinquent NPAs and 90+Delinquent / Total 0.36 % 0.33 % 0.31 %assetsNet charge-offs $ (108 ) $ 4,191 $ 13,193 (recoveries) ("NCOs")NCOs / Average loans 0.00 % 0.18 % 0.94 %^(1)

(1)Excludes loans held for sale

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESNON-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 Companys management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Companys operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Companys 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 the Companys merger with Bridge, as well as branch restructuring, and gain on sale of PPP loans.

Three Months Ended Year Ended December31, September30, December31, December31, December31, 2021 2021 2020 2021 2020Reconciliationof Reportedand Adjusted(non-GAAP) Net IncomeAvailable toCommonStockholdersReported netincomeavailable to $ 33,536 $ 36,573 $ 3,271 $ 96,710 $ 37,535 commonstockholdersAdjustments tonet income ^ (1):Provision forcredit losses- Non-PCD ? ? ? 20,278 ? loans(double-count)Gain on sale ? ? ? (20,697 ) ? of PPP loansNet gain onsale of (975 ) ? (1,235 ) (1,685 ) (4,592 )securities andother assetsLoss ontermination of ? ? 6,596 16,505 6,596 derivativesSeverance ? ? ? 1,875 4,000 Loss onextinguishment ? ? 1,104 1,751 1,104 of debtCurtailment ? ? (1,651 ) 1,543 (1,651 )(gain) lossMergerexpenses and 2,574 2,472 12,829 44,824 15,256 transactioncosts^ (2)Branch (1,118 ) 4,518 ? 5,059 ? restructuringIncome taxeffect ofadjustments (234 ) (2,191 ) (4,901 ) (19,421 ) (5,537 )and other taxadjustmentsAdjusted netincomeavailable to $ 33,783 $ 41,372 $ 16,013 $ 146,742 $ 52,711 commonstockholders(non-GAAP) AdjustedRatios (Basedupon non-GAAP as calculatedabove)Adjusted EPS $ 0.84 $ 1.01 $ 0.76 $ 3.73 $ 2.44 (Diluted)Adjustedreturn on 1.15 % 1.37 % 1.08 % 1.27 % 0.89 %average assetsAdjustedreturn on 11.75 14.27 10.11 13.26 8.56 average equityAdjustedreturn onaverage 14.72 18.02 12.01 16.73 10.02 tangiblecommon equityAdjustednon-interest 1.57 1.56 1.53 1.55 1.54 expense toaverage assetsAdjustedefficiency 48.2 46.9 44.8 47.6 49.3 ratio

(1)Adjustments to net income are taxed at the Company's statutory tax rate of approximately 31% unless otherwise noted.(2)Certain merger expenses and transaction costs are non-taxable expense.

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 Year Ended December September December December December 31, 30, 31, 31, 31, 2021 2021 2020 2021 2020Operating expense asa % of average 1.64 % 1.80 % 2.28 % 2.03 % 1.83 %assets - as reportedLoss onextinguishment of ? ? (0.07 ) (0.01 ) (0.02 )debtCurtailment gain ? ? 0.10 (0.02 ) 0.03 (loss)Severance ? ? ? (0.02 ) (0.06 )Merger expenses and (0.08 ) (0.08 ) (0.78 ) (0.37 ) (0.24 )transaction costsBranch restructuring 0.03 (0.14 ) ? (0.04 ) ? Amortization ofother intangible (0.02 ) (0.02 ) ? (0.02 ) ? assetsAdjusted operatingexpense as a % of 1.57 1.56 1.53 1.55 1.54 average assets(non-GAAP)

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

Three Months Ended Year Ended December September December December December 31, 30, 31, 31, 31, 2021 2021 2020 2021 2020Efficiencyratio - as 49.9 % 54.3 % 73.4 % 61.4 % 59.2 %reported(non-GAAP) (1)Non-interestexpense - as $ 50,829 $ 56,783 $ 37,589 $ 245,299 $ 117,828 reportedLess: ? ? ? (1,875 ) (4,000 )SeveranceLess: Mergerexpenses and (2,574 ) (2,472 ) (12,829 ) (44,824 ) (15,256 )transactioncostsLess: Branch 1,118 (4,518 ) ? (5,059 ) ? restructuringLess: Loss onextinguishment ? ? (1,104 ) (1,751 ) (1,104 )of debtLess:Curtailment ? ? 1,651 (1,543 ) 1,651 gain (loss)Less:Amortizationof other (715 ) (715 ) ? (2,622 ) ? intangibleassetsAdjustednon-interest $ 48,658 $ 49,078 $ 25,307 $ 187,625 $ 99,119 expense(non-GAAP)Net interestincome - as $ 91,686 $ 94,828 $ 48,680 $ 357,609 $ 177,704 reportedNon-interestincome - as $ 10,179 $ 9,728 $ 2,502 $ 42,068 $ 21,273 reportedLess: Gain onsale of PPP ? ? ? (20,697 ) ? loansLess: Net gainon sale of (975 ) ? (1,235 ) (1,685 ) (4,592 )securities andother assetsLess: Loss ontermination of ? ? 6,596 16,505 6,596 derivativesAdjustednon-interest $ 9,204 $ 9,728 $ 7,863 $ 36,191 $ 23,277 income(non-GAAP)Adjusted totalrevenues foradjusted $ 100,890 $ 104,556 $ 56,543 $ 393,800 $ 200,981 efficiencyratio(non-GAAP)Adjustedefficiency 48.2 % 46.9 % 44.8 % 47.6 % 49.3 %ratio(non-GAAP) (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 (loss) 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):

December31, September30, December31, 2021 2021 2020Reconciliation of Tangible Assets:Total assets $ 12,066,364 $ 12,364,381 $ 6,781,610 Less: Goodwill (155,797 ) (155,339 ) (55,638 )Other intangible (8,362 ) (9,077 ) ? assetsTangible assets $ 11,902,205 $ 12,199,965 $ 6,725,972 (non-GAAP) Reconciliation ofTangible Common Equity -Consolidated:Total stockholders' $ 1,192,620 $ 1,201,117 $ 701,096 equityLess: Goodwill (155,797 ) (155,339 ) (55,638 )Other intangible (8,362 ) (9,077 ) ? assetsTangible equity 1,028,461 1,036,701 645,458 (non-GAAP)Less: Preferred stock, net (116,569 ) (116,569 ) (116,569 )Tangible common $ 911,892 $ 920,132 $ 528,889 equity (non-GAAP) Common shares 39,878 40,715 21,233 outstanding Tangible commonequity to tangible 7.66 % 7.54 % 7.86 %assets (non-GAAP)Tangible equity totangible assets 8.64 8.50 9.60 (non-GAAP) Book value per share $ 26.98 $ 26.64 $ 27.53 Tangible common bookvalue per share 22.87 22.60 24.91 (non-GAAP)