 Preferred Stock Offering in Second Quarter of 2020 Fortifies Capital Base and Increases Tier 1 Risk-Based Capital Ratio to 13.1 and Total Risk-Based Capital Ratio to 16.3BROOKLYN, N.Y., July 28, 2020 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 net income to common stockholders of 11.8 million for the quarter ended June 30, 2020, or 0.35 per diluted common share, compared with net income to common stockholders of 8.4 million for the quarter ended March 31, 2020, or 0.24 per diluted common share, and net income to common stockholders of 13.0 million for the quarter ended June 30, 2019, or 0.36 per diluted common share. Excluding the pre-tax impact of 3.9 million of severance expenses related to an organizational restructuring, 1.1 million of merger related expenses, and 3.1 million of income from gain on sale of securities, earnings per share EPS for the quarter ended June 30, 2020 would have been 0.39 per diluted share.Mr. Kenneth J. Mahon, Chief Executive Officer CEO of the Company, stated, Our extremely strong second quarter results were underpinned by linked quarter net interest margin NIM expansion of 14 basis points and year-over-year non-interest income growth excluding gain on sale of securities of 83. In the month of June we fortified already very strong capital ratios through the issuance of perpetual preferred stock. During this challenging period in the midst of the pandemic and economic downturn, Dimes earnings profile and robust capital base helps position us well to serve our customers and communities, our employees and investors. Earlier this month, we announced our intention to merge with Bridge Bancorp, Inc. and create a premier community-based business bank with over 11 billion in assets. I am proud of the hard work and collaboration from our respective integration teams and am extremely excited that we are on our way to create a foundational franchise that has the opportunity to dominate the New York community banking landscape in the years ahead.Highlights for the Second Quarter of 2020 Included: The Company raised net proceeds of 44 million from its perpetual preferred stock offering in the second quarter of 2020. The Company had previously raised net proceeds of 72 million from its perpetual preferred stock offering in the first quarter of 2020. Outlined below are the Companys consolidated capital ratios. Q2 2020Q1 2020Q2 2019 Total Equity to Total Assets10.5410.179.37 Tangible Equity to Tangible Assets 19.769.388.58 Tier 1 Risk-Based Capital Ratio13.0712.1510.94 Total Risk-Based Capital Ratio16.2915.2113.58 1 See Non-GAAP Reconciliation tables for reconciliation of tangible equity and tangible assets. Linked quarter NIM expansion of 14 basis points primarily driven by a 27 basis point linked quarter decrease in the cost of deposits; Strong growth in checking account balances. Compared to the second quarter of 2019, the sum of average non-interest-bearing checking account balances and average interest-bearing checking account balances for the second quarter of 2020 increased by 53.7 to 840.8 million; Loans to small businesses under the Small Business Administration SBA Paycheck Protection Program PPP totaled 310.5 million at June 30, 2020. Total potential unrecognized income from processing these loans is approximately 8.9 million; Loan-to-deposit ratio declined to 122.7 at June 30, 2020, versus 124.7 at June 30, 2019. Excluding the 310.5 million of PPP loans, the loan-to-deposit ratio would have been 115.7 at June 30, 2020; Our Municipal Banking division, which began operations in the fourth quarter of 2019, grew its deposit portfolio to approximately 351 million at June 30, 2020; Total non-interest income grew to 8.4 million in the second quarter of 2020, driven by 2.5 million of customer-related loan level swap income, 0.9 million of BOLI income the Company purchased 20.0 million of additional BOLI in the month of June and 3.1 million of gain on sale of securities, versus 2.8 million of non-interest income for the second quarter of 2019; and The Company repurchased 975,064 shares of its common stock, which represented 2.9 of beginning period shares outstanding, in the second quarter of 2020, at a weighted average price of 14.62.Loans with Payment DeferralsWe are focused on supporting our clients who may be experiencing financial hardships due to COVID-19, including making deferrals on payments as needed. Our deferral program began in April 2020. Total loans with payment deferrals as of June 30, 2020, declined to 916.3 million versus 1.09 billion as of May 31, 2020. Of the tranche of 489.1 million of loans that were provided payment deferrals in the month of April, 120.1 million are now paying full interest and escrow i.e., only principal is being deferred on these loans and 194.9 million are no longer requiring any form of payment relief.We continue to closely monitor segments of our loan portfolio that may be disproportionately impacted by the pandemic. As of June 30, 2020, the Company had 15 loans aggregating 27.0 million to restaurants and 13 loans aggregating 176.3 million to hotels. As of June 30, 2020, loans with payment deferrals to restaurants totaled 12.4 million and loans with payment deferrals to hotels totaled 43.1 million. The Company does not have any exposure to the energy industry, airline industry, leveraged lending, shared national credits, credits card loans, or auto loans.Mr. Mahon concluded, Our capital strength, earnings profile and the nature of our asset classes provides me confidence that we will be able to navigate through the pandemic. The largest segment within our loan portfolio remains multifamily loans, which constituted 55 of our loan portfolio at June 30, 2020. New York City multifamily loans were one of the best performing asset classes during the financial crisis of 2008. Year after year, Dime had one of the lowest loss rates in the nation. Given the low loan-to-value LTV nature of our multifamily portfolio weighted average of approximately 50 at June 30, 2020, we anticipate our track record will continue.Managements Discussion of Quarterly Operating ResultsNet Interest IncomeNet interest income in the second quarter of 2020 was 43.6 million, an increase of 3.0 million 7.5 from the first quarter of 2020 and an increase of 7.1 million 19.3 from the second quarter of 2019. The table below provides a reconciliation of the reported NIM and the NIM excluding the impact of loan prepayment fees. in millionsQ2 2020Q1 2020Q2 2019 NIM2.862.722.38 Net Interest Income43,55640,52436,504 Income from Loan Prepayment Activity1,7371,9751,581 Net Interest Income Excluding Prepayment Fee Income41,81938,54934,923 NIM, Excluding Prepayment Fee 2.752.592.28 Mr. Mahon commented, Our NIM excluding the impact of prepayment fees has now increased for seven consecutive quarters. As anticipated, our business model transformation is producing the desired trends on NIM.Average interest-earning assets were 6.10 billion for the second quarter of 2020, a 9.6 annualized increase from 5.95 billion for the first quarter of 2020, and a 0.7 decrease from 6.13 billion for the second quarter of 2019. For the second quarter of 2020, the average yield on interest-earning assets was 3.85, a decrease of 11 basis points compared with the first quarter of 2020, and a decrease of 6 basis points compared to the second quarter of 2019. The decline in the yield on earning assets reflected the full quarter impact of the 150 basis point reduction in the federal funds rate by the Federal Reserve in March 2020 and the related decline in market interest rates.The ending weighted average rate WAR on the total loan portfolio was 3.77 at June 30, 2020, which represents a 23 basis point decrease versus the ending WAR on the total loan portfolio at March 31, 2020, and a 22 basis point decrease versus the ending WAR on the total loan portfolio at June 30, 2019. The WAR on the total loan portfolio as of June 30, 2020 was negatively impacted by PPP loans 310.5 million of loans at June 30, 2020 with a WAR of 1.00. Excluding the impact of PPP loans, the WAR on the loan portfolio was 3.94 at June 30, 2020, which represents a 6 basis point decrease versus the ending WAR on the total loan portfolio at March 31, 2020, and a 5 basis point decrease versus the ending WAR on the total loan portfolio at June 30, 2019.The average cost of borrowed funds which primarily consist of Federal Home Loan Bank advances was 2.00 for the second quarter of 2020, a decrease of 15 basis points versus the first quarter of 2020, and a decrease of 44 basis points versus the second quarter of 2019.LoansThe real estate loan portfolio decreased by 63.1 million 5.2 annualized during the second quarter of 2020, primarily due to managed run-off in the Banks lower-yielding legacy multifamily business. Total real estate loan originations were 208.8 million during the second quarter of 2020, at a weighted average interest rate of 2.91. Real estate loan amortization and satisfactions totaled 278.6 million, or 23.1 annualized of the portfolio balance, at an average rate of 3.65. The annualized real estate loan payoff rate of 23.1 for the second quarter of 2020 was comparable to the first quarter of 2020 23.5 annualized and higher than the second quarter of 2019 20.6 annualized.Average real estate loans were 4.87 billion in the second quarter of 2020, a decrease of 86.4 million -7.0 annualized from the first quarter of 2020, and a decrease of 333.4 million -6.4 from the second quarter of 2019. 