Delaware
(State or other jurisdiction of incorporation or organization)
|
11-3297463
(I.R.S. employer identification number)
|
|
209 Havemeyer Street, Brooklyn, NY
(Address of principal executive offices)
|
11211
(Zip Code)
|
LARGE ACCELERATED FILER ___
|
ACCELERATED FILER X
|
NON -ACCELERATED FILER ___
|
SMALLER REPORTING COMPANY ___
|
Classes of Common Stock
|
Number of Shares Outstanding at November 7, 2011
|
|
$.01 Par Value
|
35,023,818
|
Page
|
|||||
PART I – FINANCIAL INFORMATION
|
|||||
Item 1.
|
Unaudited Condensed Consolidated Financial Statements
|
||||
Condensed Consolidated Statements of Financial Condition at September 30, 2011 and December 31, 2010
|
3 | ||||
Condensed Consolidated Statements of Operations and Comprehensive Income for the Three-Month and Nine-Month Periods Ended
September 30, 2011 and 2010
|
4 | ||||
Condensed Consolidated Statements of Changes in Stockholders' Equity for the Nine Months Ended September 30, 2011 and 2010
|
5 | ||||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2011 and 2010
|
6 | ||||
Notes to Consolidated Financial Statements
|
7-32 | ||||
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
33-51 | |||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
51-52 | |||
Item 4.
|
Controls and Procedures
|
53 | |||
PART II - OTHER INFORMATION
|
|||||
Item 1.
|
Legal Proceedings
|
53 | |||
Item 1A.
|
Risk Factors
|
53-55 | |||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
55 | |||
Item 3.
|
Defaults Upon Senior Securities
|
56 | |||
Item 5.
|
Other Information
|
56 | |||
Item 6.
|
Exhibits
|
56-57 | |||
Signatures
|
58 |
·
|
the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control;
|
·
|
there may be increases in competitive pressure among financial institutions or from non-financial institutions;
|
·
|
changes in the interest rate environment may reduce interest margins;
|
·
|
changes in deposit flows, loan demand or real estate values may adversely affect the business of The Dime Savings Bank of Williamsburgh (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 banking industry, may be less favorable than currently
anticipated;
|
·
|
legislation or regulatory changes may adversely affect the Company's business;
|
·
|
technological changes may be more difficult or expensive than the Company anticipates;
|
·
|
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."
|
September 30, 2011
|
December 31, 2010
|
|||||||
ASSETS:
|
||||||||
Cash and due from banks
|
$ | 120,703 | $ | 86,193 | ||||
Federal funds sold and other short-term investments
|
- | 4,536 | ||||||
Investment securities held-to-maturity (estimated fair value of $5,513 and $4,408 at September 30, 2011 and December 31, 2010, respectively) (Fully unencumbered)
|
7,173 | 6,641 | ||||||
Investment securities available-for-sale, at fair value:
|
||||||||
Encumbered
|
113,929 | 80,229 | ||||||
Unencumbered
|
25,697 | 5,413 | ||||||
139,626 | 85,642 | |||||||
Mortgage-backed securities available-for-sale, at fair value:
|
||||||||
Encumbered
|
101,624 | 139,192 | ||||||
Unencumbered
|
4,071 | 5,326 | ||||||
105,695 | 144,518 | |||||||
Trading securities
|
1,675 | 1,490 | ||||||
Loans:
|
||||||||
Real estate, net
|
3,432,309 | 3,467,644 | ||||||
Other loans
|
2,244 | 2,540 | ||||||
Less allowance for loan losses
|
(21,539 | ) | (19,166 | ) | ||||
Total loans, net
|
3,413,014 | 3,451,018 | ||||||
Loans held for sale
|
642 | 3,308 | ||||||
Premises and fixed assets, net
|
32,695 | 31,613 | ||||||
Federal Home Loan Bank of New York ("FHLBNY") capital stock
|
47,014 | 51,718 | ||||||
Other real estate owned ("OREO")
|
- | - | ||||||
Goodwill
|
55,638 | 55,638 | ||||||
Other assets
|
115,990 | 117,980 | ||||||
Total Assets
|
$ | 4,039,865 | $ | 4,040,295 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Liabilities:
|
||||||||
Due to depositors:
|
||||||||
Interest bearing deposits
|
$ | 2,249,163 | $ | 2,224,851 | ||||
Non-interest bearing deposits
|
135,454 | 125,730 | ||||||
Total deposits
|
2,384,617 | 2,350,581 | ||||||
Escrow and other deposits
|
92,345 | 68,542 | ||||||
Securities sold under agreements to repurchase
|
195,000 | 195,000 | ||||||
FHLBNY advances
|
884,775 | 990,525 | ||||||
Trust Preferred securities payable
|
70,680 | 70,680 | ||||||
Other liabilities
|
57,656 | 36,233 | ||||||
Total Liabilities
|
$ | 3,685,073 | $ | 3,711,561 | ||||
Commitments and Contingencies
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock ($0.01 par, 9,000,000 shares authorized, none issued or outstanding at September 30, 2011 and December 31, 2010)
|
- | - | ||||||
Common stock ($0.01 par, 125,000,000 shares authorized, 51,470,184 shares and 51,219,609 shares issued at September 30, 2011 and
December 31, 2010, respectively, and 35,013,131 shares and 34,593,180 shares outstanding at September 30, 2011 and December 31, 2010,
respectively)
|
515 | 512 | ||||||
Additional paid-in capital
|
230,196 | 225,585 | ||||||
Retained earnings
|
350,094 | 329,668 | ||||||
Accumulated other comprehensive loss, net of deferred taxes
|
(6,143 | ) | (6,352 | ) | ||||
Unallocated common stock of Employee Stock Ownership Plan ("ESOP")
|
(3,297 | ) | (3,470 | ) | ||||
Unearned Restricted Stock Award common stock
|
(3,476 | ) | (2,684 | ) | ||||
Common stock held by Benefit Maintenance Plan ("BMP")
|
(8,655 | ) | (7,979 | ) | ||||
Treasury stock, at cost (16,457,053 shares and 16,626,429 shares at September 30, 2011
and December 31, 2010, respectively)
|
(204,442 | ) | (206,546 | ) | ||||
Total Stockholders' Equity
|
$ | 354,792 | $ | 328,734 | ||||
Total Liabilities And Stockholders' Equity
|
$ | 4,039,865 | $ | 4,040,295 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans secured by real estate
|
$ | 49,139 | $ | 50,648 | $ | 151,625 | $ | 151,839 | ||||||||
Other loans
|
24 | 28 | 74 | 97 | ||||||||||||
Mortgage-backed securities
|
1,192 | 1,846 | 3,974 | 6,199 | ||||||||||||
Investment securities
|
321 | 290 | 1,019 | 1,009 | ||||||||||||
Federal funds sold and other short-term investments
|
640 | 702 | 2,089 | 2,125 | ||||||||||||
Total interest income
|
51,316 | 53,514 | 158,781 | 161,269 | ||||||||||||
Interest expense:
|
||||||||||||||||
Deposits and escrow
|
6,498 | 7,383 | 20,081 | 22,986 | ||||||||||||
Borrowed funds
|
10,646 | 11,855 | 33,325 | 38,036 | ||||||||||||
Total interest expense
|
17,144 | 19,238 | 53,406 | 61,022 | ||||||||||||
Net interest income
|
34,172 | 34,276 | 105,375 | 100,247 | ||||||||||||
Provision for loan losses
|
2,217 | 667 | 5,305 | 7,948 | ||||||||||||
Net interest income after provision for loan losses
|
31,955 | 33,609 | 100,070 | 92,299 | ||||||||||||
Non-interest income:
|
||||||||||||||||
Total other than temporary impairment ("OTTI") losses
|
(83 | ) | (1,858 | ) | (720 | ) | (2,594 | ) | ||||||||
Less: Non-credit portion of OTTI recorded in other comprehensive income (before taxes)
|
24 | 219 | 25 | 282 | ||||||||||||
Net OTTI recognized in earnings
|
(59 | ) | (1,639 | ) | (695 | ) | (2,312 | ) | ||||||||
Service charges and other fees
|
1,172 | 1,284 | 2,836 | 3,165 | ||||||||||||
Net mortgage banking income
|
136 | 316 | 433 | 829 | ||||||||||||
Net gain on sales of securities and other assets
|
(136 | ) | 76 | (69 | ) | 861 | ||||||||||
Income from bank owned life insurance
|
420 | 472 | 1,334 | 1,464 | ||||||||||||
Other
|
616 | 559 | 1,954 | 2,028 | ||||||||||||
Total non-interest income
|
2,149 | 1,068 | 5,793 | 6,035 | ||||||||||||
Non-interest expense:
|
||||||||||||||||
Salaries and employee benefits
|
7,723 | 7,497 | 24,518 | 22,966 | ||||||||||||
Stock benefit plan amortization expense
|
939 | 1,017 | 2,886 | 2,957 | ||||||||||||
Occupancy and equipment
|
2,649 | 2,190 | 7,741 | 7,096 | ||||||||||||
Federal deposit insurance premiums
|
591 | 1,116 | 2,163 | 3,099 | ||||||||||||
Data processing costs
|
760 | 766 | 2,236 | 2,328 | ||||||||||||
Provision for losses on OREO
|
- | 65 | - | 422 | ||||||||||||
Other
|
2,302 | 2,241 | 7,363 | 7,506 | ||||||||||||
Total non-interest expense
|
14,964 | 14,892 | 46,907 | 46,374 | ||||||||||||
Income before income taxes
|
19,140 | 19,785 | 58,956 | 51,960 | ||||||||||||
Income tax expense
|
7,976 | 8,430 | 24,374 | 21,131 | ||||||||||||
Net income
|
$ | 11,164 | $ | 11,355 | $ | 34,582 | $ | 30,829 | ||||||||
Earnings per Share:
|
||||||||||||||||
Basic
|
$ | 0.33 | $ | 0.34 | $ | 1.03 | $ | 0.93 | ||||||||
Diluted
|
$ | 0.33 | $ | 0.34 | $ | 1.02 | $ | 0.93 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||||||
Net Income
|
$ | 11,164 | $ | 11,355 | $ | 34,582 | $ | 30,829 | ||||||||
Amortization and reversal of net unrealized loss on securities transferred from available-for-sale
to held-to-maturity, net of taxes of $12 and $12 during the three months ended
September 30, 2011 and 2010, respectively, and $38 and $41 during the nine months ended
September 30, 2011 and 2010, respectively
|
15 | 15 | 47 | 51 | ||||||||||||
Reduction in non-credit component of OTTI charge, net of taxes of $4 and $601 during the three
months ended September 30, 2011 and 2010, respectively, and $570 and $905 during the nine
months ended September 30, 2011 and 2010, respectively
|
5 | 731 | 693 | 1,101 | ||||||||||||
Non-credit component of OTTI charge recognized during the period, net of tax benefits of $(11)
and $(99) during the three months ended September 30, 2011 and 2010, respectively, and $(11)
and $(126) during the nine months ended September 30, 2011 and 2010, respectively
|
(13 | ) | (120 | ) | (13 | ) | (156 | ) | ||||||||
Reclassification adjustment for securities sold during the period, net of taxes of $10 during the
three-month and nine-month periods ended September 30, 2011 and $384 during the nine
months ended September 30, 2010
|
12 | - | 12 | (467 | ) | |||||||||||
Net unrealized securities gains arising during the period, net of taxes of $(494) and $(348) during
the three months ended September 30, 2011 and 2010, respectively, and $(457) and $131
during the nine months ended September 30, 2011 and 2010, respectively
|
(601 | ) | (422 | ) | (557 | ) | 160 | |||||||||
Defined benefit plan adjustments, net of tax benefits of $23 and $(560) during the nine months
ended September 30, 2011 and 2010, respectively
|
- | - | 27 | (680 | ) | |||||||||||
Comprehensive Income
|
$ | 10,582 | $ | 11,559 | $ | 34,791 | $ | 30,838 |
Nine Months Ended September 30,
|
||||||||
2011
|
2010
|
|||||||
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
|
||||||||
Common Stock (Par Value $0.01):
|
||||||||
Balance at beginning of period
|
$ | 512 | $ | 511 | ||||
Shares issued in exercise of options
|
3 | - | ||||||
Balance at end of period
|
515 | 511 | ||||||
Additional Paid-in Capital:
|
||||||||
Balance at beginning of period
|
225,585 | 214,654 | ||||||
Stock options exercised
|
2,627 | 165 | ||||||
Forfeited restricted stock award shares returned to treasury stock
|
2 | 3 | ||||||
Tax benefit of stock plans
|
399 | 88 | ||||||
BMP award distribution
|
- | (28 | ) | |||||
BMP reclassification
|
- | 8,007 | ||||||
Amortization of excess fair value over cost – ESOP stock and stock options expense
|
1,082 | 1,303 | ||||||
Release from treasury stock for restricted stock award and BMP benefit shares
|
501 | 47 | ||||||
Balance at end of period
|
230,196 | 224,239 | ||||||
Retained Earnings:
|
||||||||
Balance at beginning of period
|
329,668 | 306,787 | ||||||
Net income for the period
|
34,582 | 30,829 | ||||||
Cash dividends declared and paid
|
(14,156 | ) | (13,971 | ) | ||||
BMP reclassification
|
- | 132 | ||||||
Balance at end of period
|
350,094 | 323,777 | ||||||
Accumulated Other Comprehensive Loss, net of tax:
|
||||||||
Balance at beginning of period
|
(6,352 | ) | (5,082 | ) | ||||
Amortization and reversal of net unrealized loss on securities transferred from available-for-sale
to held-to-maturity, net of tax
|
47 | 51 | ||||||
Non-credit component of OTTI charge recognized during the period, net of tax
|
(13 | ) | (156 | ) | ||||
Reduction in non-credit component of OTTI during the period, net of tax
|
693 | 1,101 | ||||||
Change in unrealized gain or loss on available-for-sale securities during the period
|
(545 | ) | (307 | ) | ||||
Adjustments to comprehensive income from defined benefit plans, net of tax
|
27 | (680 | ) | |||||
Balance at end of period
|
(6,143 | ) | (5,073 | ) | ||||
ESOP:
|
||||||||
Balance at beginning of period
|
(3,470 | ) | (3,701 | ) | ||||
Amortization of earned portion of ESOP stock
|
173 | 173 | ||||||
Balance at end of period
|
(3,297 | ) | (3,528 | ) | ||||
Unearned Restricted Stock Award Common Stock:
|
||||||||
Balance at beginning of period
|
(2,684 | ) | (2,505 | ) | ||||
Amortization of earned portion of restricted stock awards
|
1,139 | 954 | ||||||
Forfeited restricted stock award shares returned to treasury stock
|
22 | 149 | ||||||
Release from treasury stock for restricted stock award shares
|
(1,953 | ) | (1,824 | ) | ||||
Balance at end of period
|
(3,476 | ) | (3,226 | ) | ||||
Treasury Stock, at cost:
|
||||||||
Balance at beginning of period
|
(206,546 | ) | (207,884 | ) | ||||
Forfeited restricted stock award shares returned to treasury stock
|
(24 | ) | (152 | ) | ||||
Release from treasury stock for restricted stock award and BMP benefit shares
|
2,128 | 1,777 | ||||||
Balance at end of period
|
(204,442 | ) | (206,259 | ) | ||||
Common Stock Held by BMP:
|
||||||||
Balance at beginning of period
|
(7,979 | ) | (8,007 | ) | ||||
Release from treasury stock for BMP benefit shares
|
(676 | ) | - | |||||
BMP award distribution
|
- | 28 | ||||||
Balance at end of period
|
(8,655 | ) | (7,979 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY
|
$ | 354,792 | $ | 322,462 |
Nine Months Ended September 30 ,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net Income
|
$ | 34,582 | $ | 30,829 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Net loss on the sale of OREO
|
- | 10 | ||||||
Net loss (gain) on sale of loans originated for sale
|
8 | (321 | ) | |||||
Net gain on sale of investment securities available-for-sale
|
(22 | ) | (609 | ) | ||||
Net gain recognized on the transfer of securities from available-for-sale into trading
|
- | (242 | ) | |||||
Net loss (gain) on trading securities
|
105 | (20 | ) | |||||
Net depreciation and amortization
|
2,236 | 1,892 | ||||||
ESOP compensation expense
|
812 | 740 | ||||||
Stock plan compensation (excluding ESOP)
|
1,582 | 1,690 | ||||||
Provision for loan losses
|
5,305 | 7,948 | ||||||
Provision for losses on OREO
|
- | 422 | ||||||
OTTI charge for investment securities recognized in earnings
|
695 | 2,312 | ||||||
Increase in cash surrender value of Bank Owned Life Insurance
|
(1,334 | ) | (1,464 | ) | ||||
Deferred income tax credit
|
(2,415 | ) | 696 | |||||
Excess tax benefit of stock plans
|
(399 | ) | (88 | ) | ||||
Changes in assets and liabilities:
|
||||||||
Origination of loans held for sale
|
(4,539 | ) | (22,361 | ) | ||||
Proceeds from sale of loans held for sale
|
7,957 | 22,753 | ||||||
Decrease in other assets
|
5,966 | 1,317 | ||||||
Increase (Decrease) in other liabilities
|
21,473 | (938 | ) | |||||
Net cash provided by operating activities
|
72,012 | 44,566 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Proceeds from principal repayments of investment securities held-to-maturity
|
118 | 124 | ||||||
Proceeds from maturities of investment securities available-for-sale
|
- | - | ||||||
Proceeds from calls and principal repayments of investment securities available-for-sale
|
174,000 | 46,510 | ||||||
Proceeds from sales of investment securities available-for-sale
|
226 | 2,519 | ||||||
Purchases of investment securities available-for-sale
|
(228,132 | ) | (71,429 | ) | ||||
Principal collected on mortgage backed securities available-for-sale
|
37,706 | 59,062 | ||||||
Proceeds from sales of trading securities
|
136 | - | ||||||
Purchases of trading securities
|
(426 | ) | - | |||||
Net decrease (increase) in loans
|
31,939 | (44,664 | ) | |||||
Proceeds from the sale of OREO
|
- | 558 | ||||||
Purchases of fixed assets, net
|
(3,271 | ) | (3,027 | ) | ||||
Redemption of FHLBNY capital stock
|
4,704 | 6,235 | ||||||
Net cash provided by (used in) investing activities
|
17,000 | (4,112 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net increase in due to depositors
|
34,036 | 163,830 | ||||||
Net increase in escrow and other deposits
|
23,803 | 26,070 | ||||||
Increase in securities sold under agreements to repurchase
|
- | (35,000 | ) | |||||
Decrease in FHLBNY advances
|
(105,750 | ) | (105,150 | ) | ||||
Repayment of subordinated note
|
- | (25,000 | ) | |||||
Cash dividends paid
|
(14,156 | ) | (13,971 | ) | ||||
Exercise of stock options
|
2,630 | 165 | ||||||
BMP award distribution
|
- | - | ||||||
Excess tax benefit of stock plans
|
399 | 88 | ||||||
Net cash (used in) provided by financing activities
|
(59,038 | ) | 11,032 | |||||
INCREASE IN CASH AND DUE FROM BANKS
|
29,974 | 51,486 | ||||||
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD
|
90,729 | 43,123 | ||||||
CASH AND DUE FROM BANKS, END OF PERIOD
|
$ | 120,703 | $ | 94,609 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid for income taxes
|
$ | 20,718 | $ | 22,385 | ||||
Cash paid for interest
|
53,573 | 61,801 | ||||||
Loans transferred to OREO
|
- | 320 | ||||||
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity
|
85 | 92 | ||||||
Net decrease in non-credit component of OTTI
|
(1,239 | ) | (1,724 | ) | ||||
Adjustments to other comprehensive income from defined benefit plans, net of tax
|
$ | 27 | $ | (680 | ) |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net Income per the Consolidated Statements of Operations
|
$ | 11,164 | $ | 11,355 | $ | 34,582 | $ | 30,829 | ||||||||
Denominator:
|
||||||||||||||||
Weighted-average number of shares outstanding utilized in the calculation of basic EPS
|
33,831,618 | 33,297,297 | 33,666,202 | 33,237,395 | ||||||||||||
Common stock equivalents resulting from the dilutive effect of "in-the-money" outstanding stock options
|
58,566 | 110,192 | 131,923 | 104,329 | ||||||||||||
Anti-dilutive effect of tax benefits associated with "in-the-money" outstanding stock options
|
(8,861 | ) | (12,967 | ) | (14,717 | ) | (13,150 | ) | ||||||||
Weighted average number of shares outstanding utilized in the calculation of diluted EPS
|
33,881,323 | 33,394,522 | 33,783,408 | 33,328,574 |
At or for the Three Months
Ended September 30,
|
At or for the Nine Months
Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in Thousands, Except per Share Amounts)
|
||||||||||||||||
Options outstanding – beginning of period
|
3,079,040 | 3,327,984 | 3,213,007 | 3,266,920 | ||||||||||||
Options granted
|
- | - | 91,583 | 97,294 | ||||||||||||
Weighted average exercise price of grants
|
- | - | $ | 15.46 | $ | 12.75 | ||||||||||
Options exercised
|
55,955 | - | 276,944 | 19,331 | ||||||||||||
Weighted average exercise price of exercised options
|
10.91 | - | 10.95 | 8.53 | ||||||||||||
Options forfeited
|
10,312 | - | 14,873 | 16,899 | ||||||||||||
Weighted average exercise price of forfeited options
|
18.11 | - | 17.69 | $ | 14.30 | |||||||||||
Options outstanding – end of period
|
3,012,773 | 3,327,984 | 3,012,773 | 3,327,984 | ||||||||||||
Weighted average exercise price of outstanding options at the end of period
|
$ | 14.97 | $ | 14.54 | $ | 14.97 | $ | 14.54 | ||||||||
Remaining options available for grant
|
422,274 | 553,738 | 422,274 | 553,738 | ||||||||||||
Exercisable options at end of period
|
2,801,169 | 2,860,928 | 2,801,169 | 2,860,928 | ||||||||||||
Weighted average exercise price of exercisable options at the end of period
|
$ | 15.12 | $ | 14.86 | $ | 15.12 | $ | 14.86 | ||||||||
Cash received for option exercise cost
|
610 | - | 3,030 | 165 | ||||||||||||
Income tax benefit recognized
|
94 | - | 339 | 20 | ||||||||||||
Compensation expense recognized
|
$ | 85 | 246 | $ | 444 | 738 | ||||||||||
Remaining unrecognized compensation expense
|
628 | 928 | 628 | 928 | ||||||||||||
Weighted average remaining years for which compensation expense is to be recognized
|
2.9 | 1.8 | 2.9 | 1.8 |
Outstanding Options as of September 30, 2011
|
Vested Options as of September 30, 2011
|
|||||||||||||||||
Exercise Prices
|
Amount
|
Weighted Average Contractual Years Remaining
|
Amount
|
Weighted Average Contractual Years Remaining
|
||||||||||||||
$ | 8.34 | 149,909 | 7.6 | 92,679 | 7.6 | |||||||||||||
$ | 10.91 | 116,126 | 0.1 | 116,126 | 0.1 | |||||||||||||
$ | 12.75 | 87,541 | 8.6 | 46,345 | 8.6 | |||||||||||||
$ | 13.16 | 511,078 | 1.3 | 511,078 | 1.3 | |||||||||||||
$ | 13.74 | 863,375 | 5.6 | 863,375 | 5.6 | |||||||||||||
$ | 14.92 | 34,425 | 6.4 | 25,818 | 6.4 | |||||||||||||
$ | 15.10 | 318,492 | 3.7 | 318,492 | 3.7 | |||||||||||||
$ | 15.46 | 91,583 | 9.6 | - | 9.6 | |||||||||||||
$ | 16.45 | 76,320 | 3.3 | 76,320 | 3.3 | |||||||||||||
$ | 16.73 | 51,943 | 6.8 | 38,955 | 6.8 | |||||||||||||
$ | 18.18 | 80,000 | 6.7 | 80,000 | 6.7 | |||||||||||||
$ | 19.90 | 631,981 | 2.3 | 631,981 | 2.3 | |||||||||||||
Total
|
3,012,773 | 4.1 | 2,801,169 | 3.7 |
Nine Months Ended September 30,
|
||||||||
2011
|
2010
|
|||||||
Total options granted
|
91,583 | 97,294 | ||||||
Estimated fair value on date of grant
|
$ | 4.82 | $ | 3.70 | ||||
Pricing methodology utilized
|
Black- Scholes
|
Black- Scholes
|
||||||
Expected life (in years)
|
6.80 | 5.99 | ||||||
Interest rate
|
2.59 | % | 2.76 | % | ||||
Volatility
|
42.35 | 43.69 | ||||||
Dividend yield
|
3.62 | 4.39 |
At or for the Three Months
Ended September 30,
|
At or for the Nine Months
Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Unvested allocated shares – beginning of period
|
324,454 | 332,866 | 309,783 | 295,066 | ||||||||||||
Shares granted
|
- | - | 126,304 | 143,083 | ||||||||||||
Shares vested
|
- | - | 109,649 | 95,107 | ||||||||||||
Shares forfeited
|
- | - | 1,984 | 10,176 | ||||||||||||
Unvested allocated shares – end of period
|
324,454 | 332,866 | 324,454 | 332,866 | ||||||||||||
Unallocated shares - end of period
|
- | - | - | - | ||||||||||||
Compensation recorded to expense
|
$ | 439 | $ | 347 | $ | 1,139 | $ | 954 | ||||||||
Income tax benefit recognized
|
60 | - | 60 | 68 |
Balance at September 30, 2011
|
||||||||||||||||||||||||
Grade
|
One- to Four-Family
Residential and
Cooperative Unit
|
Multifamily
Residential and Residential
Mixed Use
|
Mixed Use Commercial
Real Estate
|
Commercial Real Estate
|
Construction
|
Total
|
||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Pass
|
$ | 66,692 | $ | 2,520,387 | $ | 333,273 | $ | 367,402 | $ | 4,705 | $ | 3,292,459 | ||||||||||||
Special Mention
|
840 | 11,198 | 13,056 | 30,986 | 3,018 | 59,098 | ||||||||||||||||||
Substandard
|
72 | 20,730 | 5,713 | 17,278 | 2,865 | 46,658 | ||||||||||||||||||
Total real estate loans individually assigned a
credit grade
|
$ | 67,604 | $ | 2,552,315 | $ | 352,042 | $ | 415,666 | $ | 10,588 | $ | 3,398,215 | ||||||||||||
Real estate loans not individually assigned a
credit grade (1)
|
$ | 34,736 | - | - | - | - | $ | 34,736 |
Balance at December 31, 2010
|
||||||||||||||||||||||||
Grade
|
One- to Four-Family
Residential and
Cooperative Unit
|
Multifamily
Residential and Residential
Mixed Use
|
Mixed Use Commercial
Real Estate
|
Commercial Real Estate
|
Construction
|
Total
|
||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Pass
|
$ | 70,831 | $ | 2,483,695 | $ | 357,463 | $ | 426,518 | $ | 9,465 | $ | 3,347,972 | ||||||||||||
Special Mention
|
127 | 10,367 | 5,989 | 23,150 | 5,773 | 45,406 | ||||||||||||||||||
Substandard
|
257 | 11,216 | 1,613 | 18,435 | - | 31,521 | ||||||||||||||||||
Total real estate loans individually assigned a
credit grade
|
$ | 71,215 | $ | 2,505,278 | $ | 365,065 | $ | 468,103 | $ | 15,238 | $ | 3,424,899 | ||||||||||||
Real estate loans not individually assigned a
credit grade (1)
|
$ | 46,053 | - | - | - | - | $ | 46,053 |
Grade
|
Balance at September 30, 2011
|
Balance at December 31, 2010
|
||||||
(Dollars in Thousands)
|
||||||||
Performing
|
$ | 2,237 | $ | 2,523 | ||||
Non-accrual
|
7 | 17 | ||||||
Total
|
$ | 2,244 | $ | 2,540 |
At September 30, 2011
|
|||||||
30 to 59 Days Past Due
|
60 to 89 Days Past Due
|
90 Days or More Past Due
|
Total Past Due
|
Current
|
Total Loans
|
Loans 90 Days or More Past Due and Still Accruing Interest
|
|
(Dollars in Thousands)
|
|||||||
Real Estate:
|
|||||||
One- to four-family residential and cooperative unit
|
$1,235
|
$-
|
$72
|
$1,307
|
$101,033
|
$102,340
|
-
|
Multifamily residential and residential mixed use
|
6,782
|
13,817
|
5,341
|
25,940
|
2,526,375(a)
|
2,552,315
|
$799
|
Mixed use commercial real estate
|
5,379
|
1,468
|
3,672
|
10,519
|
341,523
|
352,042
|
-
|
Commercial real estate
|
1,036
|
4,129
|
10,751
|
15,916
|
399,750
|
415,666
|
4,441
|
Construction
|
-
|
-
|
3,297
|
3,297
|
7,291
|
10,588
|
432
|
Total real estate (including loans held for sale)
|
$14,432
|
$19,414
|
$23,133
|
$56,979
|
$3,375,972
|
$3,432,951
|
$5,672
|
Consumer
|
$4
|
$5
|
$7
|
$16
|
$2,228
|
$2,244
|
-
|
At December 31, 2010
|
|||||||
30 to 59 Days Past Due
|
60 to 89 Days Past Due
|
90 Days or More Past Due
|
Total Past Due
|
Current
|
Total Loans
|
Loans 90 Days or More Past Due and Still Accruing Interest
|
|
(Dollars in Thousands)
|
|||||||
Real Estate:
|
|||||||
One- to four-family residential and cooperative unit
|
$130
|
$141
|
$223
|
$494
|
$116,774
|
$117,268
|
-
|
Multifamily residential and residential mixed use
|
4,435
|
2,631
|
11,058
|
18,124
|
2,487,054(a)
|
2,505,178
|
$3,510
|
Mixed use commercial real estate
|
190
|
3,051
|
1,217
|
4,458
|
360,607
|
365,065
|
-
|
Commercial real estate
|
3,059
|
7,592
|
11,494
|
22,145
|
446,058
|
468,203
|
331
|
Construction
|
-
|
-
|
4,500
|
4,500
|
10,738
|
15,238
|
4,500
|
Total real estate (including loans held for sale)
|
$7,814
|
$13,415
|
$28,492
|
$49,721
|
$3,421,231
|
$3,470,952
|
$8,341
|
Consumer
|
$6
|
$1
|
$17
|
$24
|
$2,516
|
$2,540
|
-
|
At September 30,
2011
|
At December 31, 2010
|
|||||||
(Dollars in Thousands)
|
||||||||
Real Estate Loans:
|
||||||||
One- to four-family residential and cooperative unit
|
$ | 72 | $ | 223 | ||||
Multifamily residential and residential mixed use
|
4,542 | 7,548 | ||||||
Mixed use commercial real estate
|
3,672 | 1,217 | ||||||
Commercial real estate
|
6,310 | 11,163 | ||||||
Construction
|
2,865 | - | ||||||
Total real estate loans (including loans held for sale)
|
$ | 17,461 | 20,151 | |||||
Consumer loans
|
7 | 17 | ||||||
Total non-accrual
|
$ | 17,468 | $ | 20,168 |
As of September 30, 2011
|
As of December 31, 2010
|
|||
No. of Loans
|
Balance
|
No. of Loans
|
Balance
|
|
(Dollars in Thousands)
|
||||
Outstanding principal balance at period end
|
21
|
$39,229
|
19
|
$22,558
|
TDRs that re-defaulted subsequent to being modified (at period end):
|
3
|
6,818
|
7
|
10,136
|
TDRs on accrual status at period end
|
17
|
32,199
|
12
|
12,422
|
TDRs on non-accrual status at period end
|
4
|
7,030
|
7
|
10,136
|
For the Three-Month and Nine-Month Periods Ended September 30, 2011
|
|||
Number of Loans
|
Pre-Modification
Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|
(Dollars in Thousands)
|
|||
Loans modifications identified during the period that met the definition of a TDR:
|
|||
Multifamily residential and residential mixed use
|
2
|
$573
|
$21,096
|
Commercial real estate
|
5
|
$20,523
|
$21,096
|
Concessions granted:
|
|||
Temporary deferral of principal payments
|
5
|
20,523
|
20,523
|
Temporary deferral of interest payments
|
1
|
212
|
212
|
Reduction in interest rate for the remainder of the term of the loan
|
1
|
361
|
361
|
Extension of maturity
|
-
|
-
|
-
|
TOTAL
|
7
|
$21,096
|
$21,096
|
At or for the Three Months Ended
September 30, 2011
|
At or for the Nine Months Ended
September 30, 2011
|
|||
TDRs that Subsequently Defaulted Within 12 Months of Modification:
|
No. of Loans
|
Recorded Investment
|
No. of Loans
|
Recorded Investment
|
(Dollars in Thousands)
|
||||
Mixed use commercial real estate
|
1
|
$508
|
1
|
$508
|
Commercial real estate
|
2
|
6,310
|
2
|
6,310
|
Total real estate (including loans held for sale)
|
3
|
$6,818
|
3
|
$6,818
|
i.
|
Charge-off experience
|
ii.
|
Economic conditions
|
iii.
|
Underwriting standards or experience
|
iv.
|
Loan concentrations
|
v.
|
The period of time the loan has been held and performing
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Balance at beginning of period
|
$ | 19,518 | $ | 23,350 | $ | 19,166 | $ | 21,505 | ||||||||
Provision for loan losses
|
2,217 | 667 | 5,305 | 7,948 | ||||||||||||
Loans charged off
|
(175 | ) | (6,838 | ) | (3,387 | ) | (12,638 | ) | ||||||||
Recoveries
|
27 | 21 | 325 | 28 | ||||||||||||
Transfer from (to) reserves on loan commitments
|
(48 | ) | (258 | ) | 130 | 99 | ||||||||||
Balance at end of period
|
$ | 21,539 | $ | 16,942 | $ | 21,539 | $ | 16,942 |
At or for the Three Months Ended September 30, 2011
|
|||||||
Real Estate Loans
|
Consumer Loans
|
||||||
One- to Four Family Residential
and
Cooperative
Unit
|
Multifamily Residential and Residential Mixed Use
|
Mixed Use Commercial
Real Estate
|
Commercial Real Estate
|
Construction
|
Total Real Estate
|
||
(Dollars in Thousands)
|
|||||||
Beginning balance
|
$399
|
$14,396
|
$1,108
|
$3,407
|
$179
|
$19,489
|
$29
|
Charge-offs
|
(5)
|
(40)
|
(79)
|
(46)
|
-
|
(170)
|
(5)
|
Recoveries
|
-
|
1
|
14
|
12
|
-
|
27
|
-
|
Transfer (to) from reserve for loan commitments
|
-
|
(39)
|
(5)
|
(9)
|
5
|
(48)
|
-
|
Provision
|
(12)
|
230
|
432
|
1,562
|
1
|
2,213
|
4
|
Ending balance
|
$382
|
$14,548
|
$1,470
|
$4,926
|
$185
|
$21,511
|
$28
|
At or for the Nine Months Ended September 30, 2011
|
|||||||
Real Estate Loans
|
Consumer Loans
|
||||||
One- to Four Family Residential
and
Cooperative
Unit
|
Multifamily Residential and Residential Mixed Use
|
Mixed Use Commercial
Real Estate
|
Commercial Real Estate
|
Construction
|
Total Real Estate
|
||
(Dollars in Thousands)
|
|||||||
Beginning balance
|
$409
|
$14,226
|
$1,331
|
$2,821
|
$345
|
$19,132
|
$34
|
Charge-offs
|
(88)
|
(552)
|
(362)
|
(1,642)
|
(725)
|
(3,369)
|
(18)
|
Recoveries
|
-
|
143
|
36
|
146
|
-
|
325
|
-
|
Transfer from (to) reserve for loan commitments
|
-
|
121
|
(11)
|
5
|
15
|
130
|
-
|
Provision
|
61
|
610
|
476
|
3,596
|
550
|
5,293
|
12
|
Ending balance
|
$382
|
$14,548
|
$1,470
|
$4,926
|
$185
|
$21,511
|
$28
|
At September 30, 2011
|
|||||||
Real Estate Loans
|
Consumer Loans
|
||||||
One- to Four Family Residential
and Cooperative
Unit
|
Multifamily Residential and Residential Mixed Use
|
Mixed Use Commercial
Real Estate
|
Commercial Real Estate
|
Construction
|
Total Real Estate
|
||
(Dollars in Thousands)
|
|||||||
Ending balance – loans individually
evaluated for impairment
|
$-
|
$28,412
|
$5,299
|
$39,044
|
$3,297
|
$76,052
|
$-
|
Ending balance – loans collectively
evaluated for impairment
|
102,340
|
2,519,096
|
346,743
|
376,623
|
7,291
|
3,352,093
|
2,244
|
Allowance balance associated with loans
individually evaluated for impairment
|
-
|
1,440
|
225
|
1,156
|
-
|
2,821
|
-
|
Allowance balance associated with loans
collectivelly evaluated for impairment
|
382
|
13,108
|
1,242
|
3,767
|
185
|
18,684
|
28
|
At December 31, 2010
|
|||||||
Real Estate Loans
|
Consumer Loans
|
||||||
One- to Four Family Residential
and
Cooperative
Unit
|
Multifamily Residential and Residential Mixed Use
|
Mixed Use Commercial
Real Estate
|
Commercial Real Estate
|
Construction
|
Total Real Estate
|
||
(Dollars in Thousands)
|
|||||||
Ending balance – loans individually
evaluated for impairment
|
$-
|
$16,368
|
$2,387
|
$20,842
|
$4,500
|
$44,097
|
$-
|
Ending balance – loans collectively
evaluated for impairment
|
117,268
|
2,483,897
|
362,678
|
447,261
|
10,738
|
3,421,842
|
2,540
|
Allowance balance associated with loans
individually evaluated for impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Allowance balance associated with loans
collectivelly evaluated for impairment
|
409
|
14,226
|
1,331
|
2,821
|
345
|
19,132
|
34
|
At September 30, 2011
|
For the Three Months Ended September 30, 2011
|
For the Nine Months
Ended September 30, 2011
|
|||||
Unpaid Principal Balance at Period End
|
Recorded Investment
at Period End
|
Reserve Balance Allocated within the Allowance for Loan Losses at Period End
|
Average Recorded Balance
|
Interest
Income Recognized
|
Average Recorded Balance
|
Interest
Income Recognized
|
|
(Dollars in Thousands)
|
|||||||
Multifamily Residential and Residential Mixed Use
|
|||||||
With no allocated reserve
|
$14,390
|
$13,902
|
-
|
$11,809
|
$193
|
$12,660
|
$456
|
With an allocated reserve
|
14,959
|
14,511
|
1,440
|
7,256
|
82
|
2,419
|
82
|
Mixed Use Commercial Real Estate
|
|||||||
With no allocated reserve
|
2,822
|
2,595
|
-
|
3,532
|
67
|
4,011
|
153
|
With an allocated reserve
|
2,868
|
2,704
|
225
|
1,352
|
8
|
451
|
8
|
Commercial Real Estate
|
|||||||
With no allocated reserve
|
13,027
|
11,908
|
-
|
12,607
|
141
|
14,836
|
286
|
With an allocated reserve
|
27,173
|
27,135
|
1,156
|
16,476
|
365
|
8,409
|
623
|
Construction
|
|||||||
With no allocated reserve
|
4,022
|
3,297
|
-
|
3,297
|
-
|
3,159
|
213
|
With an allocated reserve
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
|||||||
With no allocated reserve
|
$34,261
|
$31,702
|
$-
|
$31,245
|
$401
|
$34,666
|
$1,108
|
With an allocated reserve
|
$45,000
|
$44,350
|
$2,821
|
$25,768
|
$455
|
$11,279
|
$713
|
At December 31, 2010
|
|||
Unpaid Principal Balance at Period End
|
Recorded investment
at Period End
|
Reserve Balance Allocated within the Allowance for Loan Losses at Period End
|
|
(Dollars in Thousands)
|
|||
Multifamily Residential and Residential Mixed Use
|
|||
With no allocated reserve
|
$19,460
|
$16,368
|
$-
|
With an allocated reserve
|
-
|
-
|
|
Mixed Use Commercial Real Estate
|
|||
With no allocated reserve
|
2,387
|
2,387
|
-
|
With an allocated reserve
|
-
|
-
|
-
|
Commercial Real Estate
|
|||
With no allocated reserve
|
23,771
|
20,842
|
-
|
With an allocated reserve
|
-
|
-
|
-
|
Construction
|
|||
With no allocated reserve
|
4,500
|
4,500
|
-
|
With an allocated reserve
|
-
|
-
|
-
|
Total
|
|||
With no allocated reserve
|
$50,118
|
$44,097
|
-
|
With an allocated reserve
|
$-
|
$-
|
$-
|
At or for the Three Months Ended September 30,
|
At or for the Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Outstanding balance of multifamily loans serviced for FNMA at period end
|
$ | 318,113 | $ | 392,582 | $ | 318,113 | $ | 392,582 | ||||||||
Total First Loss Position at end of period
|
16,356 | 18,697 | 16,356 | 18,697 | ||||||||||||
Reserve Liability on the First Loss Position
|
||||||||||||||||
Balance at beginning of period
|
$ | 2,993 | $ | 2,993 | $ | 2,993 | $ | 4,373 | ||||||||
Transfer of specific reserve for serviced loans re-acquired by the Bank
|
- | - | - | (1,123 | ) | |||||||||||
Provision for losses on problem loans(1)
|
- | - | - | - | ||||||||||||
Charge-offs and other net reductions in balance
|
- | - | - | (257 | ) | |||||||||||
Balance at period end
|
$ | 2,993 | $ | 2,993 | $ | 2,993 | $ | 2,993 |
Unrealized Gains or Losses Recognized in Accumulated Other Comprehensive Loss
|
||||||||||||||||||||||||||||||||
Purchase
Amortized / Historical Cost
|
Recorded Amortized/
Historical Cost (1)
|
Non-Credit
OTTI
|
Unrealized
Gains
|
Unrealized Losses
|
Book Value
|
Other Unrealized Losses
|
Fair
Value
|
|||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||
Investment securities held-to-maturity:
|
||||||||||||||||||||||||||||||||
Pooled bank trust preferred
securities ("TRUPS")
|
$ | 18,911 | $ | 9,969 | $ | (965 | ) | - | $ | (1,831 | )(2) | $ | 7,173 | $ | (1,660 | ) | $ | 5,513 | ||||||||||||||
Investment securities available for sale:
|
||||||||||||||||||||||||||||||||
Registered Mutual Funds
|
5,006 | 3,581 | - | 690 | (19 | ) | 4,252 | - | 4,252 | |||||||||||||||||||||||
Agency notes
|
135,371 | 135,371 | - | 49 | (46 | ) | 135,374 | - | 135,374 | |||||||||||||||||||||||
Pass-through MBS issued by GSEs
|
77,750 | 77,750 | - | 4,938 | - | 82,688 | - | 82,688 | ||||||||||||||||||||||||
Collateralized mortgage obligations
("CMOs") issued by GSEs
|
19,313 | 19,313 | - | 436 | - | 19,749 | - | 19,749 | ||||||||||||||||||||||||
Private issuer pass through MBS
|
1,789 | 1,789 | - | - | (112 | ) | 1,677 | - | 1,677 | |||||||||||||||||||||||
Private issuer CMOs
|
1,556 | 1,556 | - | 25 | - | 1,581 | - | 1,581 | ||||||||||||||||||||||||
Total
|
$ | 259,696 | $ | 249,329 | $ | (965 | ) | $ | 6,138 | $ | (2,008 | ) | $ | 252,494 | $ | (1,660 | ) | $ | 250,834 |
Unrealized Gains or Losses Recognized in Accumulated Other Comprehensive Loss
|
||||||||||||||||||||||||||||||||
Purchase
Amortized / Historical Cost
|
Recorded Amortized/
Historical Cost (1)
|
Non-Credit
OTTI
|
Unrealized
Gains
|
Unrealized Losses
|
Book Value
|
Other Unrealized Losses
|
Fair
Value
|
|||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||
Investment securities held-to-maturity:
|
||||||||||||||||||||||||||||||||
TRUPS
|
$ | 19,008 | $ | 10,760 | $ | (2,203 | ) | - | $ | (1,916 | )(2) | $ | 6,641 | $ | (2,233 | ) | $ | 4,408 | ||||||||||||||
Investment securities available for sale:
|
||||||||||||||||||||||||||||||||
Registered Mutual Funds
|
4,962 | 3,537 | - | 957 | (4 | ) | 4,490 | - | 4,490 | |||||||||||||||||||||||
Agency notes
|
81,388 | 81,388 | - | 5 | (241 | ) | 81,152 | - | 81,152 | |||||||||||||||||||||||
Pass-through MBS issued by GSEs
|
100,847 | 100,847 | - | 5,236 | - | 106,083 | - | 106,083 | ||||||||||||||||||||||||
CMOs issued by GSEs
|
32,953 | 32,953 | - | 1,012 | - | 33,965 | - | 33,965 | ||||||||||||||||||||||||
Private issuer pass through MBS
|
2,363 | 2,363 | - | - | (65 | ) | 2,298 | - | 2,298 | |||||||||||||||||||||||
Private issuer CMOs
|
2,122 | 2,122 | - | 50 | - | 2,172 | - | 2,172 | ||||||||||||||||||||||||
Total
|
243,643 | 233,970 | $ | (2,203 | ) | 7,260 | (2,226 | ) | 236,801 | (2,233 | ) | $ | 234,568 |
Amortized Cost
|
Estimated Fair Value
|
|||||||
(Dollars in Thousands)
|
||||||||
Due after one year through five years
|
$ | 134,981 | $ | 134,982 | ||||
Due after five years through ten years
|
390 | 392 | ||||||
$ | 135,371 | $ | 135,374 |
At or for the Three Months Ended September 30, 2011
|
At or for the Three Months Ended September 30, 2010
|
||||||
Credit Related OTTI Recognized in Earnings
|
Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss
|
Total OTTI
|
Credit Related OTTI Recognized in Earnings
|
Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss
|
Total OTTI
|
||
(Dollars in Thousands)
|
|||||||
Cumulative balance at the beginning of the period
|
$8,883
|
$951
|
$9,834
|
$6,445
|
$3,815
|
$10,260
|
|
OTTI recognized on securities with previous OTTI
|
59
|
24
|
83
|
1,639
|
219
|
1,858
|
|
Reductions and transfers to credit-related OTTI
|
-
|
-
|
-
|
-
|
(1,327)
|
(1,327)
|
|
Amortization of previously recognized OTTI
|
-
|
(9)
|
(9)
|
-
|
(6)
|
(6)
|
|
Cumulative balance at end of the period
|
$8,942
|
$966
|
$9,908
|
$8,084
|
$2,701
|
$10,785
|
At or for the Nine Months Ended September 30, 2011
|
At or for the Nine Months Ended September 30, 2010
|
||||||
Credit Related OTTI Recognized in Earnings
|
Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss
|
Total OTTI
|
Credit Related OTTI Recognized in Earnings
|
Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss
|
Total OTTI
|
||
(Dollars in Thousands)
|
|||||||
Cumulative balance at the beginning of the period
|
$8,247
|
$2,203
|
$10,450
|
$5,772
|
$4,425
|
$10,197
|
|
OTTI recognized on securities with previous OTTI
|
695
|
25
|
720
|
2,312
|
282
|
2,594
|
|
Reductions and transfers to credit-related OTTI
|
-
|
(1,245)
|
(1,245)
|
-
|
(1,946)
|
(1,946)
|
|
Amortization of previously recognized OTTI
|
-
|
(17)
|
(17)
|
-
|
(60)
|
(60)
|
|
Cumulative balance at end of the period
|
$8,942
|
$966
|
$9,908
|
$8,084
|
$2,701
|
$10,785
|
At or For the Three Months
Ended September 30,
|
At or For the Nine Months
Ended September 30,
|
||||
2011
|
2010
|
2011
|
2010
|
||
PRE-TAX OTTI
|
(Dollars in Thousands)
|
||||
Cumulative balance at the beginning of the period
|
$1,425
|
$1,425
|
$1,425
|
$3,063
|
|
OTTI recognized during the period
|
-
|
-
|
-
|
_
|
|
Reduction of OTTI for securities sold during the period
|
-
|
-
|
-
|
(1,302)
|
|
Reduction of OTTI for securities transferred to trading during the period
|
-
|
-
|
-
|
(336)
|
|
Cumulative balance at end of the period
|
$1,425
|
$1,425
|
$1,425
|
$1,425
|
Total
|
12 or More Consecutive Months
of Unrealized Losses
|
Less than 12 Consecutive Months
of Unrealized Losses
|
||||||||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Investment securities held-to-maturity:
|
||||||||||||||||||||||||
TRUPS (1)
|
$ | 5,513 | $ | 4,456 | $ | 5,513 | $ | 4,456 | $ | - | $ | - | ||||||||||||
Investment securities available for sale:
|
||||||||||||||||||||||||
Agency notes
|
34,954 | 46 | - | - | 34,954 | 46 | ||||||||||||||||||
Registered Mutual Funds (2)
|
760 | 19 | - | - | 760 | 19 | ||||||||||||||||||
Private issuer pass through MBS
|
1,677 | 112 | 1,677 | 112 | - | - | ||||||||||||||||||
Total
|
$ | 42,904 | $ | 4,633 | $ | 7,190 | $ | 4,568 | $ | 35,714 | $ | 65 |
(1)
|
At September 30, 2011, the recorded balance of these securities was $7.2 million. This balance reflected both the remaining unrealized loss of $1.8 million that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity) for two TRUPS that have not been deemed OTTI, and an unrealized loss of $965,000 that has been recognized in accumulated other comprehensive loss that represents the non-credit component of impairment for five TRUPS that have been deemed OTTI. In accordance with both ASC 320-10-35-17 and ASC 320-10-65, these unrealized losses are currently being amortized over the remaining estimated life of these securities.
|
(2)
|
Comprised of two Domestic Equity Mutual Funds.
|
Total
|
12 or More Consecutive Months
of Unrealized Losses
|
Less than 12 Consecutive Months
of Unrealized Losses
|
||||||||||||||||||||||
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Investment securities held-to-maturity:
|
||||||||||||||||||||||||
TRUPS
|
$ | 4,408 | $ | 6,352 | $ | 4,408 | $ | 6,352 | $ | - | $ | - | ||||||||||||
Investment securities available for sale:
|
||||||||||||||||||||||||
Agency notes
|
75,756 | 241 | - | - | 75,756 | 241 | ||||||||||||||||||
Registered Mutual Funds (1)
|
506 | 4 | - | - | 506 | 4 | ||||||||||||||||||
Private issuer pass through MBS
|
2,298 | 65 | 2,298 | 65 | ||||||||||||||||||||
Total
|
$ | 82,968 | $ | 6,662 | $ | 6,706 | $ | 6,417 | $ | 76,262 | $ | 245 |
Assets Measured at Fair Value on a Recurring Basis at September 30, 2011
|
||||||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||||||
Description
|
Total
|
Level 1 Inputs
|
Level 2
Inputs
|
Level 3 Inputs
|
Losses for the
Three-Month and Nine-Month Periods Ended
September 30, 2011
|
|||||||||||||||
(Dollars in Thousands)
|
|
|||||||||||||||||||
Trading securities (Registered Mutual Funds):
|
||||||||||||||||||||
Domestic Equity Mutual Funds
|
$ | 700 | $ | 700 | $ | - | $ | - | $ | 115 | ||||||||||
International Equity Mutual Funds
|
102 | 102 | - | - | 29 | |||||||||||||||
Fixed Income Mutual Funds
|
873 | 873 | - | - | 6 | |||||||||||||||
Investment securities available-for-sale:
|
- | |||||||||||||||||||
Agency obligations
|
135,374 | - | 135,374 | - | - | |||||||||||||||
Registered Mutual Funds
|
||||||||||||||||||||
Domestic Equity Mutual Funds
|
2,891 | 2,891 | - | - | - | |||||||||||||||
International Equity Mutual Funds
|
296 | 296 | - | - | - | |||||||||||||||
Fixed Income Mutual Funds
|
1,065 | 1,065 | - | - | - | |||||||||||||||
MBS available-for-sale
|
105,695 | - | 105,695 | - | - |
Assets Measured at Fair Value on a Recurring Basis at December 31, 2010
|
||||||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||||||
Description
|
Total
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Losses for the Three-Month and Nine-Month Periods Ended
September 30, 2010
|
|||||||||||||||
(Dollars in Thousands)
|
($ in Thousands)
|
|||||||||||||||||||
Trading Securities (Registered Mutual Funds)
|
||||||||||||||||||||
Domestic Equity Mutual Funds
|
$ | 672 | $ | 672 | $ | - | $ | - | $ | - | ||||||||||
International Equity Mutual Funds
|
108 | 108 | - | - | - | |||||||||||||||
Fixed Income Mutual Funds
|
710 | 710 | - | - | - | |||||||||||||||
Investment securities available-for-sale:
|
4,883 | - | ||||||||||||||||||
Agency obligations
|
81,152 | - | 81,152 | - | ||||||||||||||||
Registered Mutual Funds
|
||||||||||||||||||||
Domestic Equity Mutual Funds
|
3,097 | 3,097 | - | - | - | |||||||||||||||
International Equity Mutual Funds
|
367 | 367 | - | - | - | |||||||||||||||
Fixed Income Mutual Funds
|
1,026 | 1,026 | - | - | - | |||||||||||||||
MBS available-for-sale
|
144,518 | - | 144,518 | - | - |
Investment Category
|
Percentage of
Total
|
Valuation Level
Under ASC 820-10
|
|||
Agency Notes
|
55.2 | % |
Two
|
||
Pass Through MBS or CMOs issued by GSEs
|
41.8 |
Two
|
|||
Pass Through MBS or CMOs issued by entities other than GSEs
|
1.3 |
Two
|
|||
Registered Mutual Funds (Domestic Equity, International Equity and Fixed Income)
|
1.7 |
One
|
Assets Measured at Fair Value on a Non-Recurring Basis at September 30, 2011
|
||||||||||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||||||||||
Description
|
Total
|
Level 1 Inputs
|
Level 2
Inputs
|
Level 3 Inputs
|
Losses for the Three Months Ended
September 30, 2011
|
Losses for the Nine Months Ended
September 30, 2011
|
||||||||||||||||||
(Dollars in Thousands)
|
(Dollars in Thousands)
|
|||||||||||||||||||||||
Investment securities held-to-maturity (TRUPS)
|
$ | 291 | (1) | $ | - | $ | - | $ | 291 | $ | 83 | (2) | $ | 720 | (2) | |||||||||
Impaired loans
|
||||||||||||||||||||||||
Multifamily Residential and Residential
Mixed Use Real Estate
|
28,056 | - | - | 28,056 | 39 | (3) | 409 | (3) | ||||||||||||||||
Mixed Use Commercial Real Estate
|
5,299 | - | - | 5,299 | 65 | (3) | 325 | (3) | ||||||||||||||||
Commercial Real Estate
|
18,520 | - | - | 18,520 | 44 | (3) | 1,506 | (3) | ||||||||||||||||
Construction
|
3,297 | - | - | 3,297 | - | (3) | 725 | (3) |
Assets Measured at Fair Value on a Non-Recurring Basis at December 31, 2010
|
||||||||||||||||||||||||
Fair Value Measurements Using
|
||||||||||||||||||||||||
Description
|
Total
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Losses for the Three Months Ended
September 30, 2010
|
Losses for the Nine Months Ended
September 30, 2010
|
||||||||||||||||||
(Dollars in Thousands)
|
(Dollars in Thousands)
|
|||||||||||||||||||||||
TRUPS
|
$ | 650 | (1) | $ | - | $ | - | $ | 650 | $ | 1,858 | (2) | $ | 2,594 | (2) | |||||||||
Impaired loans:
|
||||||||||||||||||||||||
Multifamily Residential and Residential
Mixed Use Real Estate
|
16,368 | - | - | 16,368 | 3,293 | (3) | 8,465 | (3) | ||||||||||||||||
Mixed Use Commercial Real Estate
|
2,387 | - | - | 2,387 | 1,390 | (3) | 1,550 | (3) | ||||||||||||||||
Commercial Real Estate
|
20,842 | - | - | 20,842 | 1,987 | (3) | 2,430 | (3) | ||||||||||||||||
Construction
|
4,500 | - | - | 4,500 | - | - |
(1)
|
Purchase discount rate – the rate used to determine the "credit" based valuation of the security.
|
At September 30, 2011
|
Carrying Amount
|
Fair Value
|
||||||
(Dollars in Thousands)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 120,703 | $ | 120,703 | ||||
Federal funds sold and other short term investments
|
- | - | ||||||
Investment securities held to maturity (TRUPS)
|
7,173 | 5,513 | ||||||
Investment securities available for sale:
|
||||||||
Agency obligations
|
135,374 | 135,374 | ||||||
Domestic Equity Mutual Funds
|
2,891 | 2,891 | ||||||
International Equity Mutual Funds
|
296 | 296 | ||||||
Fixed Income Mutual Funds
|
1,065 | 1,065 | ||||||
Pass-through MBS issued by GSEs
|
82,688 | 82,688 | ||||||
CMOs issued by GSEs
|
19,749 | 19,749 | ||||||
Private issuer pass-through MBS
|
1,677 | 1,677 | ||||||
Private issuer CMOs
|
1,581 | 1,581 | ||||||
Trading securities
|
1,675 | 1,675 | ||||||
Loans, net
|
3,413,014 | 3,598,186 | ||||||
Loans held for sale
|
642 | 643 | ||||||
MSR
|
1,762 | 2,319 | ||||||
FHLBNY capital stock
|
47,014 | N/A | ||||||
Liabilities:
|
||||||||
Savings, money market and checking accounts
|
1,356,069 | 1,356,069 | ||||||
CDs
|
1,028,548 | 1,047,068 | ||||||
Escrow and other deposits
|
92,345 | 92,345 | ||||||
REPOs
|
195,000 | 224,280 | ||||||
FHLBNY advances
|
884,775 | 938,126 | ||||||
Trust Preferred securities payable1
|
70,680 | 66,439 | ||||||
Commitments to extend credit
|
629 | 629 |
At December 31, 2010
|
Carrying Amount
|
Fair Value
|
||||||
(Dollars in Thousands)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 86,193 | $ | 86,193 | ||||
Investment securities held to maturity (TRUPS)
|
6,641 | 4,408 | ||||||
Investment securities available for sale:
|
||||||||
Agency obligations
|
81,152 | 81,152 | ||||||
Domestic Equity Mutual Funds
|
3,097 | 3,097 | ||||||
International Equity Mutual Funds
|
367 | 367 | ||||||
Fixed Income Mutual Funds
|
1,026 | 1,026 | ||||||
Pass-through MBS issued by GSEs
|
106,083 | 106,083 | ||||||
CMOs issued by GSEs
|
33,965 | 33,965 | ||||||
Private issuer pass through MBS
|
2,298 | 2,298 | ||||||
Private issuer CMOs
|
2,172 | 2,172 | ||||||
Loans, net
|
3,451,018 | 3,598,027 | ||||||
Loans held for sale
|
3,308 | 3,309 | ||||||
MSR
|
2,271 | 2,840 | ||||||
Federal funds sold and other short-term investments
|
4,536 | 4,536 | ||||||
FHLBNY capital stock
|
51,718 | N/A | ||||||
Liabilities:
|
||||||||
Savings, money market and checking accounts
|
1,290,929 | 1,290,929 | ||||||
CDs
|
1,059,652 | 1,074,114 | ||||||
Escrow and other deposits
|
68,542 | 68,542 | ||||||
REPOs
|
195,000 | 217,735 | ||||||
FHLBNY advances
|
990,525 | 1,032,555 | ||||||
Trust Preferred securities payable1
|
70,680 | 63,612 | ||||||
Commitments to extend credit
|
631 | 631 |
Three Months Ended
September 30, 2011
|
Three Months Ended
September 30, 2010
|
|||||||||||||||
BMP,
Employee and Outside Director
Retirement Plans
|
Postretirement Plan
|
BMP,
Employee and Outside Director
Retirement Plans
|
Postretirement
Plan
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Service cost
|
$ | - | $ | 33 | $ | - | $ | 29 | ||||||||
Interest cost
|
339 | 86 | 358 | 79 | ||||||||||||
Actuarial adjustment to prior period interest cost and amortization
|
- | - | - | - | ||||||||||||
Expected return on assets
|
(361 | ) | - | (347 | ) | - | ||||||||||
Unrecognized past service liability
|
- | - | - | 14 | ||||||||||||
Amortization of unrealized loss
|
312 | 29 | 263 | - | ||||||||||||
Net periodic cost
|
$ | 290 | $ | 148 | $ | 274 | $ | 122 |
Nine Months Ended
September 30, 2011
|
Nine Months Ended
September 30, 2010
|
|||||||||||||||
BMP,
Employee and Outside Director
Retirement Plans
|
Postretirement Plan
|
BMP,
Employee and Outside Director
Retirement Plans
|
Postretirement
Plan
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Service cost
|
$ | - | $ | 99 | $ | - | $ | 87 | ||||||||
Interest cost
|
1,017 | 258 | 1,073 | 237 | ||||||||||||
Actuarial adjustment to prior period
interest cost and amortization
|
- | - | 353 | - | ||||||||||||
Expected return on assets
|
(1,083 | ) | - | (1,041 | ) | - | ||||||||||
Unrecognized past service liability
|
- | - | - | 42 | ||||||||||||
Amortization of unrealized loss
|
936 | 87 | 789 | - | ||||||||||||
Net periodic cost
|
$ | 870 | $ | 444 | $ | 1,174 | $ | 366 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Gain (loss) on the sale of loans originated for sale
|
$ | 6 | $ | 140 | $ | (8 | ) | $ | 321 | |||||||
Credit (Provision) to the liability for First Loss Position
|
- | - | - | - | ||||||||||||
Recovery of write down of mortgage servicing asset
|
- | - | - | - | ||||||||||||
Mortgage banking fees
|
130 | 176 | 441 | 508 | ||||||||||||
Net mortgage banking income
|
$ | 136 | $ | 316 | $ | 433 | $ | 829 |
At or For the Three Months Ended September 30,
|
At or For the Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Performance and Other Selected Ratios:
|
||||||||||||||||
Return on Average Assets
|
1.10 | % | 1.11 | % | 1.12 | % | 1.00 | % | ||||||||
Return on Average Stockholders' Equity
|
12.70 | 14.23 | 13.46 | 13.22 | ||||||||||||
Stockholders' Equity to Total Assets
|
8.78 | 8.07 | 8.78 | 8.07 | ||||||||||||
Loans to Deposits at End of Period
|
144.06 | 143.97 | 144.06 | 143.97 | ||||||||||||
Loans to Earning Assets at End of Period
|
91.94 | 91.71 | 91.94 | 91.71 | ||||||||||||
Net Interest Spread
|
3.39 | 3.44 | 3.41 | 3.28 | ||||||||||||
Net Interest Margin
|
3.58 | 3.60 | 3.62 | 3.47 | ||||||||||||
Average Interest Earning Assets to Average Interest Bearing Liabilities
|
111.12 | 108.83 | 111.41 | 108.80 | ||||||||||||
Non-Interest Expense to Average Assets
|
1.48 | 1.46 | 1.52 | 1.51 | ||||||||||||
Efficiency Ratio
|
40.98 | 40.35 | 41.91 | 43.05 | ||||||||||||
Effective Tax Rate
|
41.67 | 42.61 | 41.34 | 40.67 | ||||||||||||
Dividend Payout Ratio
|
42.42 | 41.18 | 41.18 | 45.16 | ||||||||||||
Per Share Data:
|
||||||||||||||||
Reported EPS (Diluted)
|
$ | 0.33 | $ | 0.34 | $ | 1.02 | $ | 0.93 | ||||||||
Cash Dividends Paid Per Share
|
0.14 | 0.14 | 0.42 | 0.42 | ||||||||||||
Stated Book Value
|
10.13 | 9.33 | 10.13 | 9.33 | ||||||||||||
Asset Quality Summary:
|
||||||||||||||||
Net Charge-offs
|
$ | 148 | $ | 6,817 | $ | 3,062 | $ | 12,610 | ||||||||
Non-performing Loans
|
17,468 | 19,598 | 17,468 | 19,598 | ||||||||||||
Non-performing Loans/Total Loans
|
0.51 | % | 0.57 | % | 0.51 | % | 0.57 | % | ||||||||
Non-performing Assets
|
$ | 18,483 | $ | 20,242 | $ | 18,483 | $ | 20,242 | ||||||||
Non-performing Assets/Total Assets
|
0.46 | % | 0.51 | % | 0.46 | % | 0.51 | % | ||||||||
Allowance for Loan Loss/Total Loans
|
0.63 | 0.49 | 0.63 | 0.49 | ||||||||||||
Allowance for Loan Loss/Non-performing Loans
|
123.31 | 86.45 | 123.31 | 86.45 | ||||||||||||
Earnings to Fixed Charges Ratios (1)
|
||||||||||||||||
Including Interest on Deposits
|
2.05 | x | 1.98 | x | 2.07 | x | 1.49 | x | ||||||||
Excluding Interest on Deposits
|
2.64 | 2.56 | 2.69 | 1.78 |
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
|
$ | 37,106 | $ | - | $ | - | $ | - | $ | 37,106 | ||||||||||
Other loan commitments (1)
|
52,368 | - | - | - | 52,368 | |||||||||||||||
Other Commitments:
|
||||||||||||||||||||
First Loss Position on loans sold to FNMA (1)
|
16,356 | - | - | - | 16,356 | |||||||||||||||
Total Commitments
|
$ | 105,830 | $ | - | $ | - | $ | - | $ | 105,830 |
(Dollars in Thousands)
|
||||
Non-accrual loans
|
$ | 17,468 | ||
Non-accrual one- to four-family loans with balances equal to or less than the FNMA conforming loan limits for high-cost areas
(such as the Bank's primary lending area) and consumer loans
|
(79 | ) | ||
TDRs retained on accrual status
|
32,199 | |||
Other loans deemed impaired but retained on accrual status
|
26,464 | (a) | ||
Impaired loans
|
$ | 76,052 |
·
|
For economic or legal reasons related to the debtor's financial difficulties, a concession has been granted that would not have otherwise been considered;
|
·
|
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; or
|
·
|
The outstanding principal amount and/or or accrued interest have been reduced
|
·
|
The reduction in interest rate reflected either a general decline in market interest rates or an effort to maintain a relationship with a borrower who could readily obtain funds from other sources at the then current market interest rate.
|
·
|
The terms of the restructured loan must have been comparable to the terms offered by the Bank to non-troubled debtors.
|
At or for the Nine Months Ended
September 30, 2011
|
At or for the Year Ended
December 31, 2010
|
|||
No. of Loans
|
Balance
|
No. of Loans
|
Balance
|
|
(Dollars in Thousands)
|
||||
Loan modifications identified during the period that met the definition of a TDR
|
7
|
$21,096
|
18
|
$24,928
|
Modifications granted:
|
||||
Reduction of outstanding principal due
|
-
|
-
|
-
|
-
|
Deferral of principal amounts due
|
5
|
20,523
|
17
|
16,342
|
Deferral of interest amounts due
|
1
|
212
|
-
|
-
|
Temporary reduction in interest rate
|
1
|
361
|
6
|
10,517
|
Below market interest rate
|
-
|
-
|
-
|
-
|
Outstanding principal balance immediately before and after modification
|
7
|
21,096
|
18
|
24,928
|
Aggregate principal charge-off recognized on TDRs outstanding at period end
|
1
|
1,100
|
9
|
2,204
|
Outstanding principal balance at period end
|
21
|
39,229
|
19
|
22,558
|
TDRs that re-defaulted subsequent to being modified (at period end):
|
3
|
6,818
|
7
|
10,136
|
TDRs on accrual status at period end
|
17
|
32,199
|
12
|
12,422
|
TDRs on non-accrual status at period end
|
4
|
7,030
|
7
|
10,136
|
At September 30,
2011
|
At December 31, 2010
|
|||||||
(Dollars in Thousands)
|
||||||||
Real Estate Loans:
|
||||||||
One- to four-family residential and cooperative unit
|
$ | 72 | $ | 223 | ||||
Multifamily residential and residential mixed use
|
4,542 | 7,548 | ||||||
Mixed use commercial real estate
|
3,672 | 1,217 | ||||||
Commercial real estate
|
6,310 | 11,163 | ||||||
Construction
|
2,865 | - | ||||||
Total real estate loans (including loans held for sale)
|
$ | 17,461 | 20,151 | |||||
Consumer loans
|
7 | 17 | ||||||
Total non-accrual loans
|
$ | 17,468 | $ | 20,168 | ||||
OREO
|
- | - | ||||||
Non-performing investment securities
|
1,015 | 564 | ||||||
Total non-performing assets
|
$ | 18,483 | $ | 20,732 | ||||
Ratios:
|
||||||||
Total non-accrual loans to total loans
|
0.51 | % | 0.58 | % | ||||
Total non-performing assets to total assets
|
0.46 | 0.51 |
For the Nine Months Ended
September 30, 2011
|
For the Nine Months Ended
September 30, 2010
|
||||
# Loans
|
Balance
|
# Loans
|
Balance
|
||
(Dollars in Thousands)
|
|||||
Loans modified during the period in a manner that did not meet the definition of a TDR
|
5
|
$5,599
|
9
|
$29,865
|
|
Modification made:
|
-
|
-
|
|||
Reduction of outstanding principal due
|
-
|
-
|
-
|
-
|
|
Deferral of principal amounts due
|
5
|
5,599
|
9
|
29,865
|
|
Temporary reduction in interest rate
|
-
|
-
|
-
|
-
|
|
Below market interest rate granted
|
-
|
-
|
-
|
-
|
|
Outstanding principal balance immediately before and after modification
|
5
|
5,599
|
9
|
29,865
|
At September 30, 2011
|
At June 30, 2011
|
At December 31 2010
|
|
(Dollars in Thousands)
|
|||
Real Estate Loans:
|
|||
Impaired loans1
|
$2,821
|
$280
|
$-
|
Special Mention loans
|
1,606
|
2,046
|
1,880
|
Pass graded loans
|
17,010
|
17,006
|
17,178
|
Debit escrow balances
|
74
|
157
|
74
|
Sub-total real estate loans
|
21,511
|
19,489
|
19,132
|
Consumer loans
|
28
|
29
|
34
|
TOTAL
|
$21,539
|
$19,518
|
$19,166
|
Three Months Ended September 30, 2011
|
Nine Months Ended September 30, 2011
|
|||||||
(Dollars in Thousands)
|
||||||||
Net charge-offs
|
$ | (148 | ) | $ | (3,062 | ) | ||
Provision
|
2,217 | 5,305 | ||||||
Transfer (to) from reserve for loan commitments
|
(48 | ) | 128 |
Three Months Ended September 30,
|
|||||||
2011
|
2010
|
||||||
Average
|
Average
|
||||||
Average
|
Yield/
|
Average
|
Yield/
|
||||
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
||
Assets:
|
(Dollars In Thousands)
|
||||||
Interest-earning assets:
|
|||||||
Real estate loans
|
$3,412,553
|
$49,139
|
5.76%
|
$3,439,448
|
$50,648
|
5.89%
|
|
Other loans
|
1,043
|
24
|
9.20
|
1,316
|
28
|
8.51
|
|
MBS
|
105,886
|
1,192
|
4.50
|
166,672
|
1,846
|
4.43
|
|
Investment securities
|
150,930
|
321
|
0.85
|
64,325
|
290
|
1.80
|
|
Federal funds sold and other short-term investments
|
151,335
|
640
|
1.69
|
134,749
|
702
|
2.08
|
|
Total interest-earning assets
|
3,821,747
|
$51,316
|
5.37%
|
3,806,510
|
$53,514
|
5.62%
|
|
Non-interest earning assets
|
230,412
|
283,523
|
|||||
Total assets
|
$4,052,159
|
$4,090,033
|
|||||
Liabilities and Stockholders' Equity:
|
|||||||
Interest-bearing liabilities:
|
|||||||
Interest bearing checking accounts
|
$93,649
|
$66
|
0.28%
|
$98,588
|
$99
|
0.40%
|
|
Money Market accounts
|
775,697
|
1,295
|
0.66
|
760,509
|
1,221
|
0.64
|
|
Savings accounts
|
345,237
|
180
|
0.21
|
317,243
|
202
|
0.25
|
|
CDs
|
1,053,415
|
4,957
|
1.87
|
1,107,791
|
5,861
|
2.10
|
|
Borrowed Funds
|
1,171,433
|
10,646
|
3.61
|
1,213,607
|
11,855
|
3.88
|
|
Total interest-bearing liabilities
|
3,439,431
|
$17,144
|
1.98%
|
3,497,738
|
$19,238
|
2.18%
|
|
Non-interest bearing checking accounts
|
142,035
|
122,722
|
|||||
Other non-interest-bearing liabilities
|
119,078
|
150,483
|
|||||
Total liabilities
|
3,700,544
|
3,770,943
|
|||||
Stockholders' equity
|
351,615
|
319,090
|
|||||
Total liabilities and stockholders' equity
|
$4,052,159
|
$4,090,033
|
|||||
Net interest income
|
$34,172
|
$34,276
|
|||||
Net interest spread
|
3.39%
|
3.44%
|
|||||
Net interest-earning assets
|
$382,316
|
$308,772
|
|||||
Net interest margin
|
3.58%
|
3.60%
|
|||||
Ratio of interest-earning assets to interest-bearing liabilities
|
111.12%
|
108.83%
|
Three Months Ended September 30, 2011
|
||||||||||||
Compared to Three Months Ended September 30, 2010
|
||||||||||||
Increase/ (Decrease) Due to:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(Dollars In thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Real Estate Loans
|
$ | (394 | ) | $ | (1,115 | ) | $ | (1,509 | ) | |||
Other loans
|
(7 | ) | 3 | (4 | ) | |||||||
MBS
|
(678 | ) | 24 | (654 | ) | |||||||
Investment securities
|
287 | (256 | ) | 31 | ||||||||
Federal funds sold and other short-term investments
|
78 | (140 | ) | (62 | ) | |||||||
Total
|
$ | (714 | ) | $ | (1,484 | ) | $ | (2,198 | ) | |||
Interest-bearing liabilities:
|
||||||||||||
Interest bearing checking accounts
|
$ | (4 | ) | $ | (29 | ) | $ | (33 | ) | |||
Money market accounts
|
30 | 44 | 74 | |||||||||
Savings accounts
|
14 | (36 | ) | (22 | ) | |||||||
CDs
|
(275 | ) | (629 | ) | (904 | ) | ||||||
Borrowed funds
|
(398 | ) | (811 | ) | (1,209 | ) | ||||||
Total
|
$ | (633 | ) | $ | (1,461 | ) | $ | (2,094 | ) | |||
Net change in net interest income
|
$ | (81 | ) | $ | (23 | ) | $ | (104 | ) |
Nine Months Ended September 30,
|
|||||||
2011
|
2010
|
||||||
Average
|
Average
|
||||||
Average
|
Yield/
|
Average
|
Yield/
|
||||
Balance
|
Interest
|
Cost
|
Balance
|
Interest
|
Cost
|
||
Assets:
|
(Dollars In Thousands)
|
||||||
Interest-earning assets:
|
|||||||
Real estate loans
|
$3,445,220
|
$151,625
|
5.87%
|
$3,454,596
|
$151,839
|
5.86%
|
|
Other loans
|
1,090
|
74
|
9.05
|
1,373
|
97
|
9.42
|
|
MBS
|
117,436
|
3,974
|
4.51
|
185,917
|
6,199
|
4.45
|
|
Investment securities
|
150,650
|
1,019
|
0.90
|
57,398
|
1,009
|
2.34
|
|
Federal funds sold and other short-term investments
|
166,407
|
2,089
|
1.67
|
153,475
|
2,125
|
1.85
|
|
Total interest-earning assets
|
3,880,803
|
$158,781
|
5.46%
|
3,852,759
|
$161,269
|
5.58%
|
|
Non-interest earning assets
|
225,541
|
252,938
|
|||||
Total assets
|
$4,106,344
|
$4,105,697
|
|||||
Liabilities and Stockholders' Equity:
|
|||||||
Interest-bearing liabilities:
|
|||||||
Interest bearing checking accounts
|
$96,870
|
$266
|
0.37%
|
$101,805
|
$473
|
0.62%
|
|
Money Market accounts
|
752,423
|
3,818
|
0.68
|
754,176
|
4,577
|
0.81
|
|
Savings accounts
|
339,778
|
551
|
0.22
|
310,198
|
602
|
0.26
|
|
CDs
|
1,070,216
|
15,446
|
1.93
|
1,076,696
|
17,334
|
2.15
|
|
Borrowed Funds
|
1,224,048
|
33,325
|
3.64
|
1,298,267
|
38,036
|
3.92
|
|
Total interest-bearing liabilities
|
3,483,335
|
$53,406
|
2.05%
|
3,541,142
|
$61,022
|
2.30%
|
|
Non-interest bearing checking accounts
|
139,983
|
115,323
|
|||||
Other non-interest-bearing liabilities
|
140,570
|
138,376
|
|||||
Total liabilities
|
3,763,888
|
3,794,841
|
|||||
Stockholders' equity
|
342,456
|
310,856
|
|||||
Total liabilities and stockholders' equity
|
$4,106,344
|
$4,105,697
|
|||||
Net interest income
|
$105,375
|
$100,247
|
|||||
Net interest spread
|
3.41%
|
3.28%
|
|||||
Net interest-earning assets
|
$397,468
|
$311,617
|
|||||
Net interest margin
|
3.62%
|
3.47%
|
|||||
Ratio of interest-earning assets to interest-bearing liabilities
|
111.41%
|
108.80%
|
Nine Months Ended September 30, 2011
|
||||||||||||
Compared to Nine Months Ended September 30, 2010
|
||||||||||||
Increase/ (Decrease) Due to:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(Dollars In thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Real Estate Loans
|
$ | (443 | ) | $ | 229 | $ | (214 | ) | ||||
Other loans
|
(19 | ) | (4 | ) | (23 | ) | ||||||
MBS
|
(2,296 | ) | 71 | (2,225 | ) | |||||||
Investment securities
|
1,135 | (1,125 | ) | 10 | ||||||||
Federal funds sold and other short-term investments
|
175 | (211 | ) | (36 | ) | |||||||
Total
|
$ | (1,448 | ) | $ | (1,040 | ) | $ | (2,488 | ) | |||
Interest-bearing liabilities:
|
||||||||||||
Interest bearing checking accounts
|
$ | (20 | ) | $ | (187 | ) | $ | (207 | ) | |||
Money market accounts
|
(19 | ) | (740 | ) | (759 | ) | ||||||
Savings accounts
|
50 | (101 | ) | (51 | ) | |||||||
CDs
|
(110 | ) | (1,778 | ) | (1,888 | ) | ||||||
Borrowed funds
|
(2,083 | ) | (2,628 | ) | (4,711 | ) | ||||||
Total
|
$ | (2,182 | ) | $ | (5,434 | ) | $ | (7,616 | ) | |||
Net change in net interest income
|
$ | 734 | $ | 4,394 | $ | 5,128 |
At September 30, 2011
|
At December 31, 2010
|
|||||||||||||||||||||||||||||||||||||||
Economic Value of Equity
|
||||||||||||||||||||||||||||||||||||||||
Dollar
Amount
|
Dollar
Change
|
Percentage
Change
|
EVE
Ratio
|
Basis Point Change in EVE Ratio
|
Board Approved EVE Ratio Limit
|
EVE Dollar
Amount
|
EVE
Ratio
|
Basis Point Change in EVE Ratio
|
Board Approved EVE Ratio Limit
|
|||||||||||||||||||||||||||||||
Rate Shock Scenario
|
||||||||||||||||||||||||||||||||||||||||
+ 200 Basis Points
|
$ | 469,713 | $ | (3,018 | ) | -0.64 | % | 11.48 | % | 20 | 6.0 | % | $ | 432,333 | 10.63 | % | (9 | ) | 5.0 | % | ||||||||||||||||||||
+ 100 Basis Points
|
480,287 | 7,556 | 1.60 | % | 11.58 | 30 | 7.0 | 448,038 | 10.86 | 14 | 6.0 | |||||||||||||||||||||||||||||
Pre-Shock Scenario
|
472,731 | - | - | 11.28 | - | 8.0 | 447,222 | 10.72 | - | 7.0 | ||||||||||||||||||||||||||||||
- 100 Basis Points
|
520,128 | 47,397 | 10.03 | % | 12.12 | 84 | 8.0 | 457,563 | 10.81 | 9 | 7.0 | |||||||||||||||||||||||||||||
- 200 Basis Points
|
N/A | N/A | N/A | N/A | N/A | 8.0 | N/A | N/A | N/A | 7.0 |
3(i)
|
Amended and Restated Certificate of Incorporation of Dime Community Bancshares, Inc. (1)
|
|
3(ii)
|
Amended and Restated Bylaws of Dime Community Bancshares, Inc. (15)
|
|
4.1
|
Amended and Restated Certificate of Incorporation of Dime Community Bancshares, Inc. [See Exhibit 3(i) hereto]
|
|
4.2
|
Amended and Restated Bylaws of Dime Community Bancshares, Inc. [See Exhibit 3(ii) hereto]
|
|
4.3
|
Draft Stock Certificate of Dime Community Bancshares, Inc. (3)
|
|
4.4
|
Second Amended and Restated Declaration of Trust, dated as of July 29, 2004, by and among Wilmington Trust
Company, as Delaware Trustee, Wilmington Trust Company as Institutional Trustee, Dime Community Bancshares,
Inc., as Sponsor, the Administrators of Dime Community Capital Trust I and the holders from time to time of undivided
beneficial interests in the assets of Dime Community Capital Trust I (8)
|
|
4.5
|
Indenture, dated as of March 19, 2004, between Dime Community Bancshares, Inc. and Wilmington Trust Company, as
trustee (8)
|
|
4.6
|
Series B Guarantee Agreement, dated as of July 29, 2004, executed and delivered by Dime Community Bancshares,
Inc., as Guarantor and Wilmington Trust Company, as Guarantee Trustee, for the benefit of the holders from time to
time of the Series B Capital Securities of Dime Community Capital Trust I (8)
|
|
10.1
|
Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and Vincent F.
Palagiano (12)
|
|
10.2
|
Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and Michael P.
Devine (12)
|
|
10.3
|
Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and
Kenneth J. Mahon (12)
|
|
10.4
|
Employment Agreement between Dime Community Bancorp, Inc. and Vincent F. Palagiano(16)
|
|
10.5
|
Employment Agreement between Dime Community Bancorp, Inc. and Michael P. Devine (16)
|
|
10.6
|
Employment Agreement between Dime Community Bancorp, Inc. and Kenneth J. Mahon(16)
|
|
10.7
|
Form of Employee Retention Agreement by and among The Dime Savings Bank of Williamsburgh, Dime Community Bancorp, Inc. and certain officers (5)
|
|
10.7(i)
|
Amendment to Form of Employee Retention Agreement by and among The Dime Savings Bank of Williamsburgh, Dime Community Bancorp, Inc. and certain officers (12)
|
|
10.8
|
The Benefit Maintenance Plan of Dime Community Bancorp, Inc. (16)
|
10.9
|
Severance Pay Plan of The Dime Savings Bank of Williamsburgh (12)
|
|
10.10
|
Retirement Plan for Board Members of Dime Community Bancorp, Inc. (12)
|
|
10.12
|
Recognition and Retention Plan for Outside Directors, Officers and Employees of Dime Community Bancorp, Inc., as amended by amendments number 1 and 2 (6)
|
|
10.13
|
Form of stock option agreement for Outside Directors under Dime Community Bancshares, Inc. 1996 and 2001 Stock Option Plans for Outside Directors, Officers and
Employees and the 2004 Stock Incentive Plan. (6)
|
|
10.14
|
Form of stock option agreement for officers and employees under Dime Community Bancshares, Inc. 1996 and 2001 Stock Option Plans for Outside Directors, Officers and
Employees and the 2004 Stock Incentive Plan (6)
|
|
10.15
|
Form of award notice for outside directors under the Recognition and Retention Plan for Outside Directors, Officers and Employees of Dime Community Bancorp, Inc. (6)
|
|
10.16
|
Form of award notice for officers and employees under the Recognition and Retention Plan for Outside Directors, Officers and Employees of Dime Community Bancorp, Inc. (6)
|
|
10.17
|
Financial Federal Savings Bank Incentive Savings Plan in RSI Retirement Trust (7)
|
|
10.18
|
Financial Federal Savings Bank Employee Stock Ownership Plan (7)
|
|
10.19
|
Option Conversion Certificates between Dime Community Bancshares, Inc. and each of Messrs. Russo, Segrete, Calamari, Latawiec, O'Gorman, and Ms. Swaya pursuant to
Section 1.6(b) of the Agreement and Plan of Merger, dated as of July 18, 1998 by and between Dime Community Bancshares, Inc. and Financial Bancorp, Inc. (7)
|
|
10.20
|
Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees (18)
|
|
10.21
|
Dime Community Bancshares, Inc. 2004 Stock Incentive Plan for Outside Directors, Officers and Employees (11)
|
|
10.22
|
Waiver executed by Vincent F. Palagiano (10)
|
|
10.23
|
Waiver executed by Michael P. Devine (10)
|
10.24
|
Waiver executed by Kenneth J. Mahon (10)
|
|
10.25
|
Form of restricted stock award notice for officers and employees under the 2004 Stock Incentive Plan (9)
|
|
10.27
|
Form of restricted stock award notice for outside directors under the 2004 Stock Incentive Plan (9)
|
|
10.28
|
Employee Retention Agreement between The Dime Savings Bank of Williamsburgh, Dime Community Bancshares, Inc. and Daniel Harris (12)
|
|
10.29
|
Dime Community Bancshares, Inc. Annual Incentive Plan (12)
|
|
10.30
|
Amendment to the Dime Savings Bank of Williamsburgh 401(K) Plan (14)
|
|
10.31
|
Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and Certain Affiliates (12)
|
|
12.1
|
Computation of ratio of earnings to fixed charges
|
|
31(i).1
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
|
31(i).2
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
|
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350
|
|
32.2
|
Certification of Chief 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, 2011, is formatted in XBRL (Extensible Business Reporting Language) interactive data files: (i) the Condensed Consolidated Balance Sheets as of September 30, 2011 and December 31, 2010, (ii) the Condensed Consolidated Statements of Operations and Comprehensive Income for the three-month and nine-month periods ended September 30, 2011 and 2010, (iii) the Condensed Consolidated Statements of Changes in Stockholders' Equity for the nine-month periods ended September 30, 2011 and 2010, (iv) the Condensed Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2011 and 2010, and (iv) the Notes to Consolidated Financial Statements, tagged as blocks of text.
|
**
|
Furnished, not filed, herewith.
|
(1)
|
Incorporated by reference to the registrant's Transition Report on Form 10-K for the transition period ended December 31, 2002 filed on March 28, 2003.
|
(2)
|
Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 filed on May 11, 2009.
|
(3)
|
Incorporated by reference to the registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1998 filed on September 28, 1998.
|
(4)
|
Incorporated by reference to the registrant's Current Report on Form 8-K dated April 9, 1998 and filed on April 16, 1998.
|
(5)
|
Incorporated by reference to Exhibits to the registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1997 filed on September 26, 1997.
|
(6)
|
Incorporated by reference to the registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1997 filed on September 26, 1997, and the Current Reports on Form 8-K filed on March 22, 2004 and March 29, 2005.
|
(7)
|
Incorporated by reference to the registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 2000 filed on September 28, 2000.
|
(8)
|
Incorporated by reference to Exhibits to the registrant’s Registration Statement No. 333-117743 on Form S-4 filed on July 29, 2004.
|
(9)
|
Incorporated by reference to the registrant's Current Report on Form 8-K filed on March 22, 2005.
|
(10)
|
Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 filed on May 10, 2005.
|
(11)
|
Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 filed on August 8, 2008.
|
(12)
|
Incorporated by reference to the registrant's Annual Report on Form 10-K for the year ended December 31, 2008 filed on March 16, 2009.
|
(13)
|
Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 filed on May 11, 2009
|
(14)
|
Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 filed on May 10, 2010
|
(15)
|
Incorporated by reference to the registrant's Current Report on Form 8-K filed on March 17, 2011.
|
(16)
|
Incorporated by reference to the registrant's Current Report on Form 8-K filed on April 4, 2011.
|
(17)
|
Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed on May 10, 2011
|
(18)
|
Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 filed on August 9, 2011
|
Dime Community Bancshares, Inc.
|
Dated: November 9, 2011
|
By: /s/ VINCENT F. PALAGIANO
|
|
Vincent F. Palagiano
|
||
Chairman of the Board and Chief Executive Officer
|
Dated: November 9, 2011
|
By: /s/ KENNETH J. MAHON
|
|
Kenneth J. Mahon
|
||
First Executive Vice President and Chief Financial Officer (Principal Accounting Officer)
|
Three Months Ended | |||
September 30, 2011
|
September 30, 2010
|
||
Ratio of Earnings to Fixed Charges (Including Deposits)
|
|||
Earnings:
|
|||
Income before income taxes
|
$19,140
|
$19,785
|
|
Add: Fixed charges, net
|
18,158
|
20,100
|
|
Income before income taxes and fixed charges, net
|
37,298
|
39,885
|
|
Fixed charges
|
|||
Interest expense
|
$17,144
|
$19,238
|
|
One-third of rental expense
|
241
|
217
|
|
Interest on unrecognized tax benefits
|
773
|
645
|
|
Total fixed charges
|
18,158
|
20,100
|
|
Ratio of Earnings to Fixed Charges
|
2.05
|
1.98
|
|
Ratio of Earnings to Fixed Charges (Excluding Deposits)
|
|||
Earnings:
|
|||
Income before income taxes
|
$19,140
|
$19,785
|
|
Add: Fixed charges, net
|
11,660
|
12,717
|
|
Income before income taxes and fixed charges, net
|
30,800
|
32,502
|
|
Fixed charges
|
|||
Interest expense (excluding deposits)
|
10,646
|
|
11,855
|
One-third of rental expense
|
241
|
217
|
|
Interest on unrecognized tax benefits
|
773
|
645
|
|
Total fixed charges
|
11,660
|
12,717
|
|
Ratio of Earnings to Fixed Charges
|
2.64
|
2.56
|
Nine Months Ended | |||
September 30, 2011
|
September 30, 2010
|
||
Ratio of Earnings to Fixed Charges (Including Deposits)
|
|||
Earnings:
|
|||
Income before income taxes
|
$58,956
|
$30,829
|
|
Add: Fixed charges, net
|
54,920
|
62,554
|
|
Income before income taxes and fixed charges, net
|
113,876
|
93,383
|
|
Fixed charges
|
|||
Interest expense
|
$53,406
|
$61,022
|
|
One-third of rental expense
|
741
|
887
|
|
Interest on unrecognized tax benefits
|
773
|
645
|
|
Total fixed charges
|
54,920
|
62,554
|
|
Ratio of Earnings to Fixed Charges
|
2.07
|
1.49
|
|
Ratio of Earnings to Fixed Charges (Excluding Deposits)
|
|||
Earnings:
|
|||
Income before income taxes
|
$58,956
|
$30,829
|
|
Add: Fixed charges, net
|
34,839
|
39,568
|
|
Income before income taxes and fixed charges, net
|
93,795
|
70,397
|
|
Fixed charges
|
|||
Interest expense (excluding deposits)
|
33,325
|
|
38,036
|
One-third of rental expense
|
741
|
887
|
|
Interest on unrecognized tax benefits
|
773
|
645
|
|
Total fixed charges
|
34,839
|
39,568
|
|
Ratio of Earnings to Fixed Charges
|
2.69
|
1.78
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter In the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter In the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) (USD $) In Thousands, except Share data | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
ASSETS | ||
Investment securities held-to-maturity, fair value | $ 5,513 | $ 4,408 |
Stockholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 9,000,000 | 9,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 51,470,184 | 51,219,609 |
Common stock, shares outstanding (in shares) | 35,013,131 | 34,593,180 |
Treasury stock (in shares) | 16,457,053 | 16,626,429 |
Document And Entity Information (USD $) | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Jun. 30, 2010 | |
Entity Registrant Name | DIME COMMUNITY BANCSHARES INC | |
Entity Central Index Key | 0001005409 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | No | |
Entity Filer Category | Accelerated Filer | |
Entity Public Float | $ 27,800,000 | |
Entity Common Stock, Shares Outstanding | 35,013,131 | |
Document Fiscal Year Focus | 2010 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2011 |
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ACCOUNTING FOR GOODWILL | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
ACCOUNTING FOR GOODWILL [Abstract] | |
ACCOUNTING FOR GOODWILL | 5. ACCOUNTING FOR GOODWILL The Company has designated the last day of its fiscal year as its date for annual impairment testing. The Company performed an impairment test as of December 31, 2010 and concluded that no impairment of goodwill existed. No events or circumstances have occurred subsequent to December 31, 2010 that would, in management's opinion, reduce the fair value of the Company's reporting unit below its carrying value. Such events or circumstances would require the immediate performance of an impairment test in accordance with ASC 350. |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT AND MORTGAGE-BACKED SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 10. INVESTMENT AND MORTGAGE-BACKED SECURITIES The following is a summary of major categories of securities owned by the Company at September 30, 2011:
(1) Amount represents the purchase amortized / historical cost less any credit-related OTTI charges recognized through earnings. (2) Amount represents the unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity). The following is a summary of major categories of securities owned by the Company at December 31, 2010:
(1) Amount represents the purchase amortized / historical cost less any credit-related OTTI charges recognized through earnings. (2) Amount represents the remaining unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity). -22- At September 30, 2011, the agency note investments in the above table had contractual maturities as follows:
The held-to-maturity TRUPS had a weighted average term to maturity of 23.2 years at September 30, 2011. At September 30, 2011, MBS available-for-sale (which include pass-through MBS issued by GSEs, CMOs issued by GSEs, private issuer pass through MBS and private issuer CMOs) possessed a weighted average contractual maturity of 16.9 years and a weighted average estimated duration of 2.1 years. There were no sales of MBS available-for-sale during the nine months ended September 30, 2011 or 2010. There were no sales of investment securities available-for-sale during the nine months ended September 30, 2011. Proceeds from the sales of investment securities available-for-sale (which include mutual funds and agency notes) were $2.5 million during the nine months ended September 30, 2010. Gains of $850,000 were recognized on these sales. On March 31, 2010, the Company transferred nine mutual fund investments totaling $1.4 million from available-for-sale to trading. Unrealized holding gains totaling $242,000 were recognized on these investments on the date of transfer. At September 30, 2011, in management's judgment, the credit quality of the collateral pool underlying six of the Company's eight TRUPS had deteriorated to the point that full recovery of the Company's initial investment was considered uncertain, thus resulting in recognition of OTTI charges. At September 30, 2011, these six securities had credit ratings ranging from "D" to "Caa3." The Company applied ASC 320-10-65 to determine the credit related component of OTTI for the nine TRUPS by discounting the expected future cash flows applicable to the securities at the effective interest rate implicit in the security at the date of acquisition by the Company. The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS:
The remaining aggregate amortized cost of TRUPS potentially subject to future OTTI charges through earnings was $10.0 million at September 30, 2011. Of this total, unrealized losses of $2.8 million have already been recognized as a component of accumulated other comprehensive loss. -23- The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's equity mutual funds (contained within investment securities available-for-sale):
During the nine months ended September 30, 2010, the Company sold portions of mutual fund investments for which it had previously recognized OTTI charges, recovering $1.3 million, of the apportioned OTTI previously recognized on these fund shares. In addition, during the nine months ended September 30, 2010, the Company transferred mutual fund balances from available-for-sale into trading as part of a re-positioning of a portion of its BMP investments. The transfer of these mutual funds during 2010 resulted in the recovery of approximately $336,000 of previously recognized OTTI charges. Any recovery in value of mutual funds has been recognized as a component of other comprehensive income for mutual funds that both have had OTTI charges and have not been either subsequently sold or transferred into trading. The following table summarizes the gross unrealized losses and fair value of investment securities and MBS as of September 30, 2011, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:
TRUPS That Have Maintained an Unrealized Holding Loss for 12 or More Consecutive Months At September 30, 2011, two of the TRUPS, with an amortized cost of $7.2 million, were not deemed to have OTTI. These securities remained in an unrealized loss for 12 or more consecutive months, and their cumulative unrealized loss was $1.8 million at September 30, 2011, reflecting both illiquidity in the marketplace and concerns over future bank failures. At September 30, 2011, both of these securities had ratings ranging from "CC" to "Ba1." Despite both the significant decline in market value and the duration of their impairment, management believes that the unrealized losses on these securities at September 30, 2011 were temporary, and that the full value of the investments will be realized once the market dislocations have been removed, or as the securities continue to make their contractual payments of principal and interest. In making this determination, management considered the following: � Based upon an internal review of the collateral backing the TRUPS portfolio, which accounted for current and prospective deferrals, each of the securities could reasonably be expected to continue making all contractual payments � The Company has the intent and ability to hold these securities until they fully recover their impairment, evidenced by the election to reclassify them as held-to-maturity in 2008 � There were no cash or working capital requirements nor contractual or regulatory obligations that would compel the Company to sell any of these securities prior to their forecasted recovery or maturity -24- � Each security has a pool of underlying issuers comprised primarily of banks � None of the securities have exposure to real estate investment trust issued debt (which has experienced high default rates) � Each security featured either a mandatory auction or a de-leveraging mechanism that could result in principal repayments to the Bank prior to the stated maturity of the security � Each security is characterized by some level of over-collateralization The remaining six TRUPs, with an aggregate amortized cost of $3.4 million at September 30, 2011, have previously been determined to meet the OTTI criteria. Private Issuer Pass Through MBS That Have Maintained an Unrealized Holding Loss for 12 or More Consecutive Months At September 30, 2011, the Company owned one private label pass-through MBS that possessed unrealized losses for 12 or more consecutive months, with an amortized cost of $1.8 million and an unrealized loss of $112,000. The Company's investment is in the most senior tranche (or repayment pool) of this security. Despite a challenging real estate marketplace, the private label pass-through MBS made contractual principal and interest payments that reduced its principal balance by approximately 28% during the twelve months ended September 30, 2011. At September 30, 2011, the Company performed an analysis of likely potential defaults of the real estate loans underlying this security in the current economic environment, and determined that this security could reasonably be expected to continue making all contractual payments. The Company has no intent to sell this security and it is not likely that the Company will be required to sell this security before the recovery of its remaining amortized cost. The following summarizes the gross unrealized losses and fair value of investment securities and MBS as of December 31, 2010, aggregated by investment category and the length of time that the securities were in a continuous unrealized loss position:
(1) Comprised of one Fixed Income Mutual Fund. |
NATURE OF OPERATIONS | 9 Months Ended |
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Sep. 30, 2011 | |
NATURE OF OPERATIONS [Abstract] | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Dime Community Bancshares, Inc. (the "Holding Company") is a Delaware corporation and parent company of the Bank, a federally chartered stock savings bank. The Holding Company's direct subsidiaries are the Bank, Dime Community Capital Trust 1 and 842 Manhattan Avenue Corp. The Bank's direct subsidiaries are Boulevard Funding Corp., Dime Insurance Agency Inc. (f/k/a Havemeyer Investments, Inc.), DSBW Preferred Funding Corporation, DSBW Residential Preferred Funding Corp., Dime Reinvestment Corp. and 195 Havemeyer Corp. The Bank maintains its headquarters in the Williamsburg section of Brooklyn, New York and operates twenty-six full service retail banking offices located in the New York City boroughs of Brooklyn, Queens, and the Bronx, and in Nassau County, New York. The Bank’s principal business is gathering deposits from customers within its market area and via the internet, and investing them primarily in multifamily residential, commercial real estate, one- to four-family residential, construction and land acquisition, and consumer loans, as well as mortgage-backed securities (“MBS”), obligations of the U.S. Government and Government Sponsored Entities ("GSEs"), and corporate debt and equity securities. All of the Bank's lending occurs in the greater New York City metropolitan area. |
ACCOUNTING FOR STOCK BASED COMPENSATION | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTING FOR STOCK BASED COMPENSATION | 7. ACCOUNTING FOR STOCK BASED COMPENSATION During the three-month and nine-month periods ended September 30, 2011 and 2010, the Holding Company and Bank maintained the Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees and the 2004 Stock Incentive Plan (collectively the "Stock Plans"), which are discussed more fully in Note 15 to the Company's audited consolidated financial statements for the year ended December 31, 2010, and which are subject to the accounting requirements of ASC 505-50 and ASC 718. Stock Option Awards Combined activity related to stock options granted under the Stock Plans during the periods presented was as follows:
-9- The range of exercise prices and weighted-average remaining contractual lives of options outstanding, vested and unvested, under the Stock Plans were as follows:
The weighted average fair value per option at the date of grant for stock options granted was estimated as follows:
Restricted Stock Awards The Company, from time to time, issues restricted stock awards to outside directors and officers under the 2004 Stock Incentive Plan. Typically, awards to outside directors fully vest on the first anniversary of the grant date, while awards to officers vest in equal annual installments over a four- or five-year period. The following is a summary of activity related to the restricted stock awards granted under the 2004 Stock Incentive Plan during the periods indicated:
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RETIREMENT AND POSTRETIREMENT PLANS | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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RETIREMENT AND POSTRETIREMENT PLANS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT AND POSTRETIREMENT PLANS | 12. RETIREMENT AND POSTRETIREMENT PLANS The Holding Company or the Bank maintains the Retirement Plan of The Dime Savings Bank of Williamsburgh (the "Employee Retirement Plan"), the Retirement Plan for Board Members of Dime Community Bancshares, Inc. (the "Outside Director Retirement Plan"), the BMP, and the Postretirement Welfare Plan of The Dime Savings Bank of Williamsburgh ("Postretirement Plan"). Net expenses associated with these plans were comprised of the following components:
-31-
The Company disclosed in its consolidated financial statements for the year ended December 31, 2010 that it expected to make contributions or benefit payments totaling $48,000 to the Employee Retirement Plan, $389,000 to the BMP, $135,000 to the Outside Director Retirement Plan, and $173,000 to the Postretirement Plan during the year ending December 31, 2011. The Company made contributions of $36,000 to the Employee Retirement Plan during the nine months ended September 30, 2011, and expects to make an additional $12,000 of contributions or benefit payments during the remainder of 2011. The Company made benefit payments of $96,000 to the Outside Director Retirement Plan during the nine months ended September 30, 2011, and expects to make an additional $32,000 of contributions or benefit payments during the remainder of 2011. The Company made net contributions totaling $153,000 to the Postretirement Plan during the nine months ended September 30, 2011, and expects to make the remainder of the estimated $173,000 of net contributions or benefit payments during 2011. The Company contributed $1.0 million to the BMP during the nine months ended September 30, 2011, all of which related to reinstatement benefits that were separate in nature from the $389,000 actuarily determined contributions expected for 2011. The Company does not expect to make the $389,000 of benefit payments to the BMP during 2011, since anticipated retirements that formed the basis for these expected benefit payments in 2011 are presently not expected to occur. |
LOANS RECEIVABLE AND CREDIT QUALITY | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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LOANS RECEIVABLE AND CREDIT QUALITY [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS RECEIVABLE AND CREDIT QUALITY | 8. LOANS RECEIVABLE AND CREDIT QUALITY Loans are reported at the principal amount outstanding, net of unearned fees or costs and the allowance for loan losses. Interest income on loans is recorded using the level yield method. Under this method, discount accretion and premium amortization are included in interest income. Loan origination fees and certain direct loan origination costs are -10- deferred and amortized as yield adjustments over the contractual loan terms. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying them as to credit risk. This analysis includes all non-homogeneous loans, such as multifamily residential, mixed use residential, mixed use commercial, commercial real estate and construction loans, as well as one-to four family residential and cooperative apartment loans with balances greater than the Fannie Mae ("FNMA") conforming loan limits for high-cost areas such as the Bank's primary lending area. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. All loans not classified as Special Mention, Substandard or Doubtful were deemed pass loans at both September 30, 2011 and December 31, 2010. The Bank had no loans classified as Doubtful at September 30, 2011 or December 31, 2010. The following is a summary of the credit risk profile of the real estate loans (principal balance only and including loans held for sale) by internally assigned grade as of the date indicated:
(1) Amount comprised of fully performing one- to four-family residential and cooperative unit loans with balances equal to or less than the FNMA conforming loan limits for high-cost areas such as the Bank's primary lending area. The credit quality of these loans was instead evaluated based upon payment activity. -11-
(1) Amount comprised of fully performing one- to four-family residential and cooperative unit loans with balances equal to or less than the FNMA conforming loan limits for high-cost areas such as the Bank's primary lending area. The credit quality of these loans was instead evaluated based upon payment activity. For consumer loans, the Company evaluates credit quality based on payment activity. Consumer loans that are 90 days or more past due are placed on non-accrual status, while all remaining consumer loans are classified and evaluated as performing. The following is a summary of the credit risk profile of consumer loans by internally assigned grade:
The following is an age analysis of past due loans (including loans held for sale) as of the dates indicated:
(a) Includes FHA/VA insured loans totaling $94. -12-
(a) Includes FHA/VA insured loans totaling $285. All of the $8.3 million in loans 90 days or more past due and accruing interest at December 31, 2010 have been either satisfied or re-financed except for two loans totaling $426,000. The Company expects the re-financing of these two loans to be completed prior to December 31, 2011. Accrual of interest is generally discontinued on loans that have missed three consecutive monthly payments, at which time the Bank reverses all interest associated with the missed payments. The Bank generally initiates foreclosure proceedings when a loan enters non-accrual status, and does not accept partial payments on loans on which foreclosure proceedings have commenced. At some point during foreclosure proceedings, the Bank procures current appraisal information in order to prepare an estimate of the fair value of the underlying collateral. If a foreclosure action is instituted and the loan is not brought current, paid in full, or refinanced before the foreclosure action is completed, the property securing the loan is transferred to OREO. The Bank generally utilizes all available remedies in an effort to resolve either non-accrual loans or OREO properties as quickly and prudently as possible in consideration of market conditions, the physical condition of the property and any other mitigating circumstances. In the event that a non-accrual loan is subsequently brought current, it is returned to accrual status once the doubt concerning collectability has been removed and the borrower has demonstrated performance in accordance with the loan terms and conditions for a period of at least six months. Management may elect to continue the accrual of interest when a loan is in the process of collection and the estimated fair value and cash flows of the underlying collateral property are sufficient to satisfy the outstanding principal balance (including any outstanding advances related to the loan) and accrued interest. Such elections have not been commonplace. The following table summarizes loans on non-accrual status for the periods indicated:
Subsequent to September 30, 2011, six additional loans totaling $15.5 million (represented by three borrower relationships) were deemed non-accrual loans as of October 31, 2011. All of these loans were included in loans delinquent 30 to 89 days as of September 30, 2011 discussed in this document, and were loans deemed impaired as of September 30, 2011, and thus individually evaluated for impairment for purposes of determining the allowance for loan losses as of September 30, 2011. -13- Accruing Loans 90 Days or More Past Due: At September 30, 2011, the Bank owned four real estate loans totaling $3.7 million that were in excess of 90 days past due on their contractual balloon principal payment that continued to make monthly payments consistent with their initial contractual amortization schedule exclusive of the balloon payment. The weighted average loan-to-value ratios of three of these loans were below 30% at September 30, 2011, and the loan-to-value ratio on the fourth loan approximated 71%. Management expects that each of these four loans will either be satisfied or formally modified in the future. As a result, these loans remained on accrual status at September 30, 2011 and were deemed performing assets. The Bank also had one commercial real estate loan at September 30, 2011 with an outstanding balance of $1.6 million that was temporarily in excess of 90 days past due on principal or interest payments while the borrower was finalizing negotiation of a new tenant lease for the underlying collateral property. The new tenant commenced occupancy in October 2011, and the borrower has been making monthly payments of principal and interest on the loan since July 2011. The Bank expects to receive all principal and interest on this loan, and therefore retained it on accrual status as of September 30, 2011. The borrower also made a monthly payment on October 1, 2011, making the loan less than 90 days past due. In addition, the Bank had one construction loan totaling $432,000 that was in excess of 90 days past its contractual maturity at September 30, 2011, on which it received payments throughout 2010 and the nine months ended September 30, 2011, and, on September 30, 2011, expected to either receive satisfaction or convert to a permanent real estate loan in future quarters. As a result, this loan remained on accrual status and was deemed performing at September 30, 2011. This loan was internally graded Special Mention at September 30, 2011, and was fully satisfied on November 1, 2011. TDRs. At September 30, 2011, the Bank had twenty-one loans totaling $39.2 million with terms that were modified in a manner that met the criteria for a TDR. Eleven of these TDRs totaling $34.9 million were commercial real estate loans, seven loans totaling $2.6 million were multifamily residential and residential mixed-use real estate loans and the remaining three loans totaling $1.7 million were mixed-use commercial real estate loans. At December 31, 2010, the Bank had nineteen loans totaling $22.6 million with terms that were modified in a manner that met the criteria for a TDR. Eight of these TDRs were commercial real estate loans, eight were multifamily residential and residential mixed-use real estate loans and the remaining were mixed-use commercial real estate loans. The following table summarizes outstanding TDRs as of the dates indicated:
The Company has not restructured troubled consumer loans, as its small consumer loan portfolio is small and has not had any problem issues warranting restructuring. Therefore, all TDRs have been made on real estate loans. The following table summarizes activity related to TDRs as of and for the periods indicated:
-15- The Bank's provision for loan losses reflects $865,000 of allocated reserve associated with modifications identified as TDRs during the three-month and nine-month periods ended September 30, 2011. In addition, prior to entering into the restructuring agreement, the Bank charged-off approximately $47,000 of principal on one TDR identified during the three-month and nine-month periods ended September 30, 2011. Such charge-off was recognized during the year ended December 31, 2010. Otherwise there was no impact on the Bank's allowance for loan losses related to TDRs during the three month or nine month periods ended September 30, 2011. As of September 30, 2011, the Bank had no loan commitments to borrowers with outstanding TDRs. A TDR is considered to be in payment default once it is 90 days contractually past due under the modified terms. All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any. If a TDR is substantially performing in accordance with its restructured terms, management will look to either the present value of the expected cash flows from the debt service or the potential net liquidation proceeds of the underlying collateral property in measuring impairment (whichever is deemed most appropriate under the circumstances). If a TDR has re-defaulted, only the likely realizable net proceeds from either a note sale or the liquidation of collateral is considered when measuring impairment. While measured impairment on TDRs is typically charged off immediately, if such impairment was measured either from a reduction in the present value of expected cash flows of a performing TDR or from future losses deemed probable to occur on TDRs that were not otherwise specifically measured, it is reflected as an allocated reserve within the allowance for loan losses. The following table presents, as of September 30, 2011, TDRs by collateral type for which there was a payment default within twelve months following their respective modification date:
The TDRs that subsequently defaulted, have, since default, been evaluated for impairment based upon the likely realizable net proceeds from either a note sale or the liquidation of collateral property. As a result of these evaluations, aggregate charges-offs of $1.1 million were recognized against the allowance for loan losses on loans described in the above table. None of these charge-offs were taken during the three months ended September 30, 2011. Aggregate charge-offs of $112,000 and $219,000, respectively, were taken on TDRs that defaulted during the three-month and nine-month periods ended September 30, 2010. In addition, during both the three-month and nine month periods ended September 30, 2011, allocated reserves totaling $91,000 were recognized on TDRs that defaulted for future losses deemed probable to occur on these loans, and were not specifically measured from the likely realizable net proceeds from either a note sale or the liquidation of collateral property. No such allocated reserves were maintained during the three-month or nine-month periods ended September 30, 2010. At September 30, 2011, the terms of certain other loans were modified in a manner that did not meet the definition of a TDR. These loans had a total recorded investment as of September 30, 2011 of $14.8 million, and involved either the modification of a loan to borrowers who were not experiencing financial difficulties or a deferral in a portion of payment of 12 months or less and was therefore considered to be insignificant. Of this total, five loans totaling $5.4 million were modified during the nine months ended September 30, 2011 (all prior to June 30, 2011). In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company's internal underwriting policy. Impaired Loans At September 30, 2011, the Bank had fifty-six loans totaling $76.1 million deemed impaired (as defined in Note 9), compared to fifty-seven loans totaling $44.1 million as of December 31, 2010. The average balance of impaired loans was approximately $45.9 million during the nine months ended September 30, 2011. The average balance of impaired loans approximated its period-end balance during the nine months ended September 30, 2010. During the nine months ended September 30, 2011, thirty-two loans totaling $53.5 million were added to impaired status, fourteen loans totaling $5.4 million improved in such a manner that they were removed from impaired status, and write-downs of principal totaling $2.8 million were recognized on ten impaired loans. The Bank disposed of eighteen impaired loans with a recorded balance totaling $10.4 million during the nine months ended September 30, 2011, receiving an aggregate amount approximating their recorded balance. During the nine months ended September 30, 2010, twenty-four loans totaling $18.0 million were added to impaired status, while two loans totaling $1.8 million were sold, one $425,000 loan was upgraded, and one $320,000 loan was transferred to OREO. In addition, $3.1 million of aggregate principal -15- balance on fourteen impaired loans at December 31, 2009 was charged-off during the nine months ended September 30, 2010. At September 30, 2011, an aggregate balance of $2.8 million was allocated within the allowance for loan losses for probable losses on impaired loans. At September 30, 2010, there were no impaired loans with allocated reserves. At September 30, 2011 and December 31, 2010, loans totaling $58.7 million and $24.3 million, respectively, while on accrual status, were deemed impaired. These loans were comprised of the following as of the respective quarter end: I) accruing TDRs; 2) loans past due 90 days or more but still accruing; and 3) loans with sufficient weakness to warrant a Substandard internal rating but possessing payment history and collateralization sufficient to maintain accrual status. Net interest received on these impaired loans totaled $1.8 million during the nine months ended September 30, 2011. At September 30, 2011 and December 31, 2010, approximately $72,000 and $340,000, respectively, of one- to four-family residential and cooperative apartment loans with a balance equal to or less than the FNMA conforming loan limits for high-cost areas such as the Bank's primary lending area, and consumer loans were on non-accrual status, but were not included in the category of impaired loans, as these loans are considered homogeneous loan pools not individually analyzed for impairment. Delinquent Serviced Loans Subject to a First Loss Position The Bank has a first loss position associated with multifamily loans that it sold to FNMA between December 2002 and February 2009 (the "First Loss Position"). Under the terms of its seller/servicer agreement with FNMA, the Bank is obligated to fund FNMA all monthly principal and interest payments under the original terms of the sold loans until the earlier of the following events: (1) the loans have been fully satisfied or enter OREO status; or (2) the First Loss Position is fully exhausted. At September 30, 2011, within the pool of multifamily loans sold to FNMA, one $1.4 million loan was delinquent between 30 and 89 days, and one $757,000 loan was 90 days or more delinquent. At December 31, 2010, within the pool of multifamily loans sold to FNMA, three loans totaling $3.7 million were 30 to 89 days delinquent, and no loans were 90 days or more delinquent. |
EARNINGS PER SHARE (EPS) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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EARNINGS PER SHARE (EPS) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | 6. EARNINGS PER SHARE ("EPS") EPS is calculated and reported in accordance with ASC 260. For entities like the Company with complex capital structures, ASC 260 requires disclosure of basic EPS and diluted EPS on the face of the income statement, along with a reconciliation of their numerators and denominators. Basic EPS is computed by dividing net income by the weighted-average number of common shares outstanding during the period (weighted-average common shares are adjusted to exclude unallocated ESOP shares). Diluted EPS is computed using the same method as basic EPS, however, the computation reflects the potential dilution that would occur if outstanding in-the-money stock options were exercised and converted into common stock. The following is a reconciliation of the numerators and denominators of basic EPS and diluted EPS for the periods presented:
-8- Common stock equivalents resulting from the dilutive effect of "in-the-money" outstanding stock options are calculated based upon the excess of the average market value of the Holding Company's common stock over the exercise price of outstanding in-the-money stock options during the period. There were 2,746,738 and 2,666,287 weighted-average stock options outstanding for the three-month periods ended September 30, 2011 and 2010, respectively, that were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period. There were 1,245,159 and 2,721,171 weighted-average stock options outstanding for the nine-month periods ended September 30, 2011 and 2010, respectively, that were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period. |
SUMMARY OF ACCOUNTING POLICIES | 9 Months Ended |
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Sep. 30, 2011 | |
SUMMARY OF ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF ACCOUNTING POLICIES | 2. SUMMARY OF ACCOUNTING POLICIES In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company's financial condition as of September 30, 2011, the results of operations and statements of comprehensive income for the three-month and nine-month periods ended September 30, 2011 and 2010, and the changes in stockholders' equity and cash flows for the nine months ended September 30, 2011 and 2010. The results of operations for the three-month and nine-month periods ended September 30, 2011 are not necessarily indicative of the results of operations for the remainder of the year ending December 31, 2011. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to the rules and regulations of the SEC. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Please see "Item 2. - Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies" for a discussion of areas in the accompanying condensed consolidated financial statements where significant estimates are utilized. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2010 and notes thereto. |
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
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Sep. 30, 2011 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 3. RECENT ACCOUNTING PRONOUNCEMENTS In April 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2011-2, "A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring" ("ASU 2011-2"). ASU 2011-2 clarifies the guidance for determining whether a loan restructuring constitutes a troubled debt restructuring ("TDR") outlined in Accounting Standards Codification ("ASC") No. 310-40, "Receivables-Troubled Debt Restructurings by Creditors," by providing additional guidance to a creditor in making the following required assessments needed to determine whether a restructuring is a TDR: (i) whether or not a concession has been granted in a debt restructuring; (ii) whether a temporary or permanent increase in the contractual interest rate precludes the restructuring from being a TDR; (iii) whether a restructuring results in an insignificant delay in payment; (iv) whether a borrower that is not currently in payment default is experiencing financial difficulties; and (v) whether a creditor can use the effective interest rate test outlined in debtor's guidance on restructuring of payables (ASC Topic No. 470-60-55-10) when evaluating whether or not a restructuring constitutes a TDR. ASU 2011-2 is effective for interim periods beginning on or after June 15, 2011, which is the current reporting quarter for the Company. Please see Note 8 for a further discussion of TDRs. In July 2010, the FASB issued Accounting Standards Update No. 2010-20, "Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses" ("ASU 2010-20"). ASU 2010-20 requires companies to provide a greater level of disaggregated information regarding: (1) the credit quality of their financing receivables; and (2) their allowance for credit losses. ASU 2010-20 further requires companies to disclose credit quality indicators, past due information, and modifications of their financing receivables. For public companies, ASU 2010-20 is effective for interim and annual reporting periods ending on or after December 15, 2010. ASU 2010-20 encourages, but does not require, comparative disclosures for earlier reporting periods that ended before initial adoption. Adoption of ASU 2010-20 did not have a material impact upon the Company's consolidated financial condition or results of operations. -7- In January 2010, FASB issued Accounting Standards Update No. 2010-06, " Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements" ("ASU 2010-6"). ASU 2010-6 required new disclosures related to transfers into and out of fair value hierarchy Levels 1 and 2, as well as certain activities for assets with fair values measured under the Level 3 hierarchy. ASU 2010-6 also provided amendments clarifying the level of disaggregation and disclosures about inputs and valuation techniques along with conforming amendments to the guidance on employers' disclosures about postretirement benefit plan assets. ASU 2010-6 was effective for interim and annual reporting periods beginning after December 15, 2009, except for disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Adoption of ASU 2010-6 did not have a material impact upon the Company's financial condition or results of operations. |
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