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Dime Community Bancshares, Inc.: Dime Community Has Elected Not to Participate in the U.S. Treasury Capital Purchase Program

^{Published on 2009-01-05 14:01:49, Last Modified on 2009-01-05 14:03:09 - Market Wire}
 

BROOKLYN, NY--(Marketwire - January 5, 2009) - Dime Community Bancshares, Inc. (NASDAQ: [ DCOM ]) (the "Company"), the parent company of The Dime Savings Bank of Williamsburgh (the "Bank"), today announced that it has elected not to participate in the U.S. Department of Treasury's Capital Purchase Program ("CPP"). The Company disclosed on December 5, 2008 that the Bank had received preliminary approval to receive up to $77.3 million of capital from the CPP and that its evaluation as to the costs and benefits of participation was ongoing. The determination not to participate in the CPP was reached after evaluating all of the relevant financial and other factors.

Vincent F. Palagiano, Chairman of the Board and Chief Executive Officer of the Company and Bank, stated, "While we understand that the extraordinary measures undertaken by U.S. Department of Treasury are intended to help ensure the long-term stability of the banking system, we ultimately concluded that the election not to participate in the CPP best serves the interests of our community and shareholders. We have consistently applied prudent underwriting standards to the loans in our mortgage portfolio, which consists primarily of rent-regulated multi-family residential dwellings located in New York City. We believe that these assets have enough inherent stability to ensure that the Bank will continue to be well capitalized. Based upon our strong balance sheet, well-capitalized position and solid credit quality, we determined that the CPP provided no material benefit to our shareholders or other constituents."

As of September 30, 2008, the Bank was well capitalized by all regulatory measures, with a Tier 1 tangible capital ratio of 7.87% and a total risk-based capital ratio of 11.43%. In addition, neither the Company nor Bank has ever invested in real estate loans or collateral underlying mortgage-backed securities that would be considered subprime loans, (i.e., mortgage loans advanced to borrowers who do not qualify for market interest rates because of problems with their income or credit history). All mortgage-backed securities owned by the Company or Bank as of September 30, 2008 possessed the highest possible investment credit rating.

ABOUT DIME COMMUNITY BANCSHARES

The Company (NASDAQ: [ DCOM ]) had $3.83 billion in consolidated assets as of September 30, 2008, and is the parent company of the Bank. The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-three branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and Bank can be found on the Bank's Internet website at [ www.dime.com ].

This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: 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 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 financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the 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; or 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.