EXHIBIT 20
Dime Financial P.O. Box 700
Corporation Wallingford, CT 06492
(203) 269-8881
Dime Financial Corporation - First Quarter Results
Dime Financial Corporation ("DFC") (NASDAQ: DIBK) announced net income of
$2.9 million or $0.57 per share for the quarter ended March 31, 1996 compared
with a loss of $791,000 or $0.16 per share for the quarter ended March 31,
1995. The change in net income from the year earlier period was primarily the
result of a reduction in the provision to the allowance for loan losses and a
decline in operating expenses. In addition, The Board of Directors declared a
dividend of $0.07 per share payable on May 23, 1996 to shareholders of record
on May 6, 1996.
The provision to the allowance for loan losses totalled $700,000 during the
first quarter of 1996 compared with a provision of $3.5 million during the
first quarter of 1995. The allowance for loan losses at March 31, 1996
equalled $13.2 million and represented 220% of non-performing loans of $6.0
million and 2.98% of total loans outstanding. The allowance for loan losses at
December 31, 1995 totalled $12.8 million and represented 166% of non-
performing loans of $7.7 million and 2.80% of total loans outstanding and
totalled $12.5 million or 150% of non-performing loans of $8.3 million and
2.47% of total loans at March 31, 1995.
Operating expenses totalled $3.5 million for the quarter ended March 31, 1996,
a decrease of $1.1 million or 24% from the quarter ended March 31, 1995. The
decline in operating expenses was primarily the result of a restructure
program, implemented during 1995, which has resulted in a reduction of
approximately 33% of the Company's workforce. Salaries and employee benefits
for the quarter ended March 31, 1996 totalled $1.8 million compared with
salaries and employee benefits of $2.3 million for the quarter ended March 31,
1995 representing a decline of $524,000 or 23%.
The cost of FDIC insurance also declined and totalled $38,000 for the quarter
ended March 31, 1996 compared with a cost of $378,000 for the quarter ended
March 31, 1995, representing a reduction of $340,000 or 90%. The drop in the
cost of FDIC insurance was caused primarily by a general reduction in the
assessment rate charged. In addition, the net cost of the operation of other
real estate owned ("OREO operations") declined. OREO operations equalled a net
gain of $154,000 for the quarter ended March 31, 1996 as gains realized from
the sales of OREO more than offset the cost of operations. OREO operations for
the quarter ended March 31, 1995 totalled a net cost of $85,000.
Non-performing loans totalled $6.0 million at March 31, 1996 representing a
decrease of $1.7 million or 22% from December 31, 1995 and representing a
decrease of $2.3 million or 28% from March 31, 1995. Other real estate owned
("OREO") totalled $600,000 at March 31, 1996 compared with OREO of $1.4
million at December 31, 1995 and $3.5 million at March 31, 1995. Total non-
performing assets were $6.6 million at March 31, 1996 compared with $9.1
million at December 31, 1995 and $11.8 million at March 31, 1995. Non-
performing assets equalled 0.99% of total assets at March 31, 1996 compared
with 1.38% of total assets at December 31, 1995 and compared with 1.88% of
total assets at March 31, 1995.
Net interest income totalled $6.4 million for the quarter ended March 31, 1996
representing a net interest rate spread of 3.41% and a net interest margin of
3.95%. Net interest income for the year earlier quarter ended March 31, 1995
totalled $6.6 million and represented a net interest rate spread of 3.94% and
a net interest margin of 4.32%.
Total assets were $671.4 million at March 31, 1996 compared with total assets
of $631.7 million at March 31, 1995, representing an increase of $39.7 million
or 6.3%. Total deposits were $554.7 million at March 31, 1996 compared with
$524.2 million at March 31, 1995, representing an increase of $30.5 million or
6.8%.
Total shareholders' equity was $53.4 million at March 31, 1996 representing an
equity to assets ratio of 7.95% compared with shareholders' equity of $44.3
million at March 31, 1995 which represented an equity to assets ratio of
7.01%. The Tier 1 regulatory capital ratio at March 31, 1996 for The Dime
Savings Bank of Wallingford, the Company's subsidiary bank, was 7.71% compared
with a Tier 1 regulatory capital ratio of 6.56% at March 31, 1995. This ratio
is in excess of the regulatory minimum.
Dime Financial Corporation and Subsidiary
Consolidated Statements of Condition
March 31, December 31, March 31,
(In thousands, except share data) 1996 1995 1995
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Assets
Cash and amounts due from banks $ 12,148 $ 11,172 $ 13,257
Interest bearing deposits 293 2,983 5,644
Federal funds sold 12,546 21,334 31,946
Investment securities available for sale (a) 4,018 8,138 4,002
Investment securities held to maturity (b) 64,861 47,898 54,746
Mortgage-backed securities available for sale (c) 120,843 95,190 ---
Investment in Federal Home Loan Bank of Boston stock 7,192 7,192 7,192
Loans receivable:
Mortgage Loans:
Residential real estate - owner occupied 320,387 329,597 389,621
Residential real estate - non-owner occupied 26,359 27,699 (d)
Commercial real estate 42,356 43,658 56,067
Builders' and Land 1,684 1,501 3,680
Commercial loans 4,223 4,529 6,602
Consumer loans 48,166 49,459 49,951
Allowance for loan losses (13,204) (12,779) (12,477)
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Loans receivable, net 429,971 443,664 493,444
Premises and equipment, net 5,946 5,926 7,967
Accrued income receivable 5,011 4,451 4,223
Other real estate owned, net 608 1,415 3,533
Other assets 5,309 6,242 2,728
Excess of cost over fair value of net assets acquired 2,680 2,768 3,030
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Total assets $671,426 $658,373 $631,712
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Liabilities and Shareholders' equity
Liabilities:
Deposits $554,715 $543,344 $524,200
Federal Home Loan Bank of Boston advances 58,000 58,000 58,000
Other liabilities 5,312 5,361 5,220
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Total liabilities 618,027 606,705 587,420
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Shareholders' equity:
Preferred stock; no par value; authorized
1,000,000 shares; none issued and outstanding --- --- ---
Common stock; $1.00 par value; authorized
9,000,000 shares; issued 5,375,592 shares,
5,373,992 and 5,345,390, respectively. 5,375 5,374 5,345
Additional paid-in capital 51,133 51,117 50,846
Retained earnings (deficit) 342 (2,166) (8,998)
Net unrealized gain (loss) on available for sale
securities (553) 241 (3)
Treasury stock--351,607 shares at cost (2,898) (2,898) (2,898)
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Total shareholders' equity 53,399 51,668 44,292
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Total liabilities and shareholders' equity $671,426 $658,373 $631,712
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<FN>
<Fa> amortized cost: $4,023 at March 31, 1996; $8,155 at December 31, 1995;
and $4,006 at March 31, 1995.
<Fb> market value: $64,187 at March 31, 1996; $48,245 at December 31, 1995;
and $54,362 at March 31, 1995.
<Fc> amortized cost: $121,676 at March 31, 1996; and $94,809 at December 31,
1995.
<Fd> information for this period is not available, it is included within
Residential real estate - owner occupied.
</FN>
Dime Financial Corporation and Subsidiary
Consolidated Statements of Operations
Three months ended March 31,
(In thousands, except share data) 1996 1995
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Interest Income:
Interest and fees on loans $ 9,508 $10,183
Interest-bearing deposits 12 51
Federal funds sold 210 384
Interest and dividends on investments:
U.S. treasury securities 62 241
U.S. government agency obligations 992 290
REMIC/CMO's 833 ---
Non-agency REMIC/CMO's 68 ---
Mortgage backed securities 751 ---
Other bonds and notes 39 190
Equity securities --- 3
Dividends on Federal Home Loan Bank of Boston Stock 113 132
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Total Interest Income 12,588 11,474
Interest Expense:
Interest to depositors 5,132 3,835
Interest on Federal Home Loan Bank of Boston
advances 1,042 1,036
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Total Interest Expense 6,174 4,871
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Net Interest Income 6,414 6,603
Provision for loan losses 700 3,500
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Net Interest Income after provision 5,714 3,103
Investment securities gains (losses), net 159 234
Other operating income 506 552
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Income before other operating expenses 6,379 3,889
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Other Operating Expenses:
Salaries and employee benefits 1,765 2,289
Professional and other services 516 619
Bank occupancy and equipment expense 674 754
FDIC Assessment 38 378
Net cost of operation of other real estate (154) 84
Other operating expenses 689 545
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Total Other Operating Expenses 3,528 4,669
Income (loss) before income taxes 2,851 (780)
Income tax expense (benefit) (8) 11
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Net income (loss) $2,859 ($ 791)
===============================================================================
Weighted average common shares 5,023 4,994
Earnings (loss) per share $ 0.57 ($ 0.16)
Selected Financial Highlights
For the three months
ended March 31,
(Dollars in thousands) 1996 1995
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Average yield on interest-earning assets 7.79% 7.59 %
Average cost of funds 4.38% 3.65 %
Net interest rate spread 3.41% 3.94 %
Net yield on interest-earning assets 3.95% 4.32 %
Net income $2,859 ($ 791)
Return on average assets 1.73% (0.50)%
Return on average equity 21.80% (6.94)%
Leverage capital ratio 7.72% 6.58 %
Earnings per share $ 0.57 ($0.16)
Book value per share $10.63 $8.87
Dime Financial Corporation And Subsidiary
Selected Financial Data
March 31, December 31, March 31,
(in thousands) 1996 1995 1995
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Non-Performing Asset Information:
Non-Performing Loans:
Residential Real Estate - owner occupied $2,316 $2,729 $ 4,039
Residential Real Estate - non-owner occupied 1,376 1,235 *
Commercial Real Estate 1,536 2,580 2,677
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Total Mortgage Loans 5,228 6,544 6,716
Commercial Loans 373 690 1,290
Consumer Loans 409 448 306
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Total Non-Performing Loans 6,010 7,682 8,312
Other Real Estate Owned 868 1,865 4,163
Less: Reserve for OREO Losses 260 450 630
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Total OREO, net 608 1,415 3,533
Total Non-Performing Assets $6,618 $9,097 $11,845
<FN>
<F*> information for this period is not available, it is included
within Residential real estate - owner occupied
March 31, December 31, March 31,
(in thousands) 1996 1995 1995
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Average Balance Information
For the quarters ended:
Interest earning assets:
Gross loans $450,462 $472,201 $509,234
Investment securities 179,356 136,976 62,843
Federal funds sold / interest bearing deposits 16,348 20,244 32,928
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Total interest earning assets 646,166 629,421 605,005
Total Assets $662,414 $644,264 $628,130
Interest bearing liabilities:
Interest bearing deposits $509,063 $494,502 $482,409
Borrowings 58,000 58,000 58,244
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Total interest bearing liabilities 567,063 552,502 540,653
Total Liabilities 609,961 594,596 582,498
Shareholders' Equity 52,453 49,668 45,632
Total Liabilities & Shareholders' Equity $662,414 $644,264 $628,130