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FORWARD-LOOKING STATEMENTS
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THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS REGARDING DIME,
HUDSON AND NORTH FORK, INCLUDING STATEMENTS ABOUT STRATEGIES, PLANS AND
OBJECTIVES, AS WELL AS ESTIMATES AND STATEMENTS BASED ON UNDERLYING
ESTIMATES OF THE FUTURE FINANCIAL CONDITION, PERFORMANCE AND OPERATING
EFFICIENCIES ON A PRO FORMA BASIS AND COST SAVINGS AND REVENUE
ENHANCEMENTS AND ACCRETION TO REPORTED EARNINGS THAT WILL BE REALIZED
FROM THE DIME-HUDSON MERGER OR NORTH FORK'S OFFER.
A VARIETY OF FACTORS COULD CAUSE ACTUAL RESULTS AND EXPERIENCE TO
DIFFER MATERIALLY FROM THE ANTICIPATED RESULTS OR OTHER EXPECTATIONS
EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. FACTORS THAT MIGHT CAUSE
SUCH A DIFFERENCE INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING:
o Risks and uncertainties related to the consummation of the
Dime-Hudson merger or North Fork's offer, including
realization of expected cost savings;
o Realization of the level of revenues following the
Dime-Hudson merger or North Fork's offer;
o Integration costs or difficulties;
o Competition from both financial and non-financial
institutions;
o Changes in interest rates, deposit flows, loan demand and
real estate values;
o Changes in legislation or regulation;
o Changes in accounting principles, policies or guidelines;
o The timing and occurrence (or non-occurrence) of transactions
and events that may be subject to circumstances beyond the
control of Dime, Hudson or North Fork; and
o Other economic, competitive, governmental, regulatory and
technological factors affecting Dime, Hudson or North Fork,
specifically or the banking industry or economy generally.
NEITHER DIME NOR HUDSON ASSUMES ANY OBLIGATION TO UPDATE THESE
FORWARD-LOOKING STATEMENTS OR TO UPDATE THE REASONS WHY ACTUAL RESULTS
COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS.
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OVERVIEW
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DIME UNITED NFB(1) PROPOSAL
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o EPS accretive to Dime shareholders o Highly EPS dilutive to Dime shareholders
o Predicated on conservative assumptions o Reliant on unachievable assumptions
o Higher quality earnings stream o Increasingly thrift-like earnings stream
o Transaction less than one month from o Proposal highly uncertain given multitude of
completion contingencies. Timing no earlier than end
of 3rd Quarter, 2000
o Low execution risk - transition plan
completed o High execution risk given in-market and
hostile nature of acquisition
o Significant P/E multiple expansion -
improved franchise value o Possibility of significant P/E multiple
contraction
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(1) North Fork Bancorporation, Inc.
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NFB PROPOSAL - WHAT NFB WANTS YOU TO BELIEVE
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THE CLAIM IS: THE FACTS ARE:
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SIGNIFICANTLY ACCRETIVE Using NFB's assumptions, the NFB Proposal 15% EPS dilutive to Dime's
shareholders in 2001
SIGNIFICANT PREMIUM Would have represented a discount to Dime's share price as little as 6
months ago and an average premium of less than 10% during all of 1999
ACHIEVABLE ASSUMPTIONS Cost savings assumptions represent 64% of Dime's operating expense
base (excluding NAMCO(1)), implying a 15% marginal efficiency ratio for
Dime. No revenue run-off taken into account, despite anticipated sale to
FleetBoston of 14% of Dime's deposit base
LOW RISK TRANSACTION NFB's unrealistically high level of projected cost savings, when coupled with
hostile nature of proposal, underscores high degree of execution risk
A REAL OFFER NFB has a history of abandoning unsolicited approaches. NFB Proposal is
highly contingent upon terms and conditions which will not be met
RELEVANT PRIOR ACQUISITION Dime is more than seven times the size of the largest transaction NFB has
EXPERIENCE ever completed and three times the size of all their acquisitions put together
(1) North American Mortgage Company.
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NFB PROPOSAL - HIGHLY EPS DILUTIVE
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DIME UNITED TRANSACTION YIELDS A SUPERIOR EARNINGS STREAM FOR DIME
STOCKHOLDERS:
o Implicit dilution in NFB proposal understated, given "hidden"
dilution inherent in FleetBoston financing structure
[BAR CHART]
2000 2001
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$2.39(3) $2.66(4)
Dime United(1) $2.28 $2.67
NFB/Dime(2) $1.75 $2.26
(1) As disclosed in Dime United's September 1999 investor
presentation.
(2) Based on NFB assumptions provided in March 6, 2000 investor
presentation. Includes the benefit to Dime shareholders of
reinvesting the $2.00 in cash per share received from NFB at
an after-tax rate of 4.5%.
(3) Dime 2000 stand alone EPS estimate as disclosed in Dime
United's September 1999 investor presentation.
(4) Dime 2001 stand alone EPS estimate as disclosed in Dime
United's September 1999 investor presentation.
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NFB'S COST SAVINGS ARE UNACHIEVABLE
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ESTIMATED COST SAVINGS EQUAL 64% OF DIME'S OPERATING EXPENSES
(EXCLUDING NAMCO) AND REPRESENT 86% OF NFB'S EXPENSE BASE:
o Implies a marginal efficiency ratio of less than 15% for Dime
(excluding NAMCO) and 4% if looked at on the basis of NFB's
operating expenses
o No revenue run-off projected despite anticipated sale of 14%
of Dime's most attractive deposits to FleetBoston for a below
market premium
ESTIMATED EXPENSE SAVINGS
(DOLLARS IN MILLIONS)
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NFB PROPOSAL
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Dime's Total Non-Interest Expense Base $724
Less: NAMCO(1) (431)
Less: Intangible amortization (32)
Dime's "Core Bank" Expense Base 261
Cost Savings Assumptions(2) 167
Pro Forma Expense Base 94
% OF DIME "CORE BANK" EXPENSE BASE 63.7%
IMPLIED MARGINAL EFFICIENCY RATIO ON "CORE BANK" 14.7(3)
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Note: Expenses are based on Fourth Quarter 1999 financial data unless
otherwise noted.
(1) Based on detail for mortgage banking operations in the
September 30, 1999 10-Q. Includes amortization of mortgage
servicing rights..
(2) Based on $100 million after tax estimate provided by NFB,
adjusted to pretax amount assuming a 40% tax rate.
(3) Pro forma expense base divided by net revenues of Dime
excluding NAMCO.
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JSB FINANCIAL, INC.(1)/RELIANCE BANCORP(2) TRANSACTIONS MAGNIFY RISK
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NFB ASSUMPTIONS AS DISCLOSED IN INVESTOR PRESENTATIONS
(DOLLARS IN MILLIONS)
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RELIANCE JSB DIME TOTAL
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Cost Savings $22.8 $20.2 $167.0 $210.0
Revenue Enhancement 5.0 7.2 - 12.2
Tax Efficiencies 3.2 7.2 - 10.5
Portfolio Optimization - 8.7 - 8.7
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Total Pre-tax Synergies 31.0 43.3 167.0 241.4
Core Expense Base $36.3 $28.9 $261.0 $326.2
RESULTING RATIOS:
Synergies/Core Expense Base 85.4% 149.8% 63.7% 74.0%
Cost Savings/Core Expense Base 62.8 69.9 63.7 64.4
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(1) Jamaica Savings Bank ("JSB").
(2) Reliance Federal Savings Bank ("Reliance").
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NFB Would More Than Quadruple in Size
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Acquired Assets as % of NFB(1)
(Dollars in Millions)
[BAR CHART]
NFB 12/31/97 $ 6,829
New York Bancorp $ 3,284 50%
Reliance $ 1,613 14%
JSB $ 2,452 21%
Dime $23,921 198%
(1) As a % of NFB's assets at the quarter end prior to
announcement.
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Total Assets(1)
(Dollars in Millions)
[BAR CHART]
NFB 12/31/97 $ 6,829
NFB Pro Forma $37,430 448% More than NFB 12/31/97
(1) Includes deposit sale to FleetBoston, purchase
accounting adjustments and deleveraging balance
sheet.
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PREMIUM IN NFB PROPOSAL IS MISLEADING
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IMPLIED PREMIUM IN NFB PROPOSAL INFLATED BY DIME'S CURRENTLY DEPRESSED
STOCK PRICE:
o NFB Proposal would have reflected a discount to Dime's stock
price as recently as September '99
[LINE CHART]
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Value of
NFB
Dime Proposal
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12/31/97 30.25 22.93
3/31/98 30.06 25.80
6/30/98 29.94 24.73
9/30/98 25.31 20.60
12/31/98 26.25 24.27
3/31/99 23.19 21.65
6/30/99 20.13 21.88
9/30/99 17.50 20.14
12/31/99 15.13 18.16
3/3/00 12.94 17.00
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IN-MARKET TRANSACTIONS HAVE PERFORMED POORLY
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MAJOR IN-MARKET TRANSACTIONS
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ANNOUNCE DATE ACQUIROR TARGET PREMIUM % COST EXPECTED PRETAX PROFIT STOCK
PAID SAVINGS(1) SHORTFALL(2) PERFORMANCE OF
---------------------- ACQUIROR VS. BKX(3)
($MM) %
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06/06/99 Zions First Security 55% 15% NM NM (17.1)%
03/17/98 Washington Mutual H.F. Ahmanson 23 40 $(811) (21)% (33.0)
11/18/97 First Union CoreStates 17 46 (1,606) (24) (37.9)
08/29/97 NationsBank Barnett Banks 24 55 (2,256) (25) (29.9)
03/06/97 Washington Mutual Great Western 39 33 (575) (17) (43.4)
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Average 32% 38% - (22)% (32.1)%
NFB PROPOSAL DIME 41% 86% - - -
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(1) Announced cost savings as a percentage of the smaller
company's annual expense base.
(2) Based on difference between current analyst estimates or
actual results and management estimates provided in the
investor presentations.
(3) Keefe, Bruyette and Woods Bank Stock Index.
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NFB PROPOSAL HIGHLY UNCERTAIN & UNLIKELY TO SUCCEED
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= Dime Board of Directors rejected NFB proposal on both
strategic and financial grounds
= More than 50% of all hostile exchange offers in the banking
industry have been withdrawn before completion
= NFB has a long history of undertaking hostile approaches on
which they have not followed through
= Nothing compels NFB to follow-through with the offer
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IT IS HIGHLY UNLIKELY THAT DIME'S SHAREHOLDERS WILL EVER GET TO ACT ON
THE NFB PROPOSAL, EVEN IF THE HUDSON UNITED DEAL IS VOTED DOWN
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NFB PROPOSAL DESTROYS SHAREHOLDER VALUE
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Value of 10 year warrants issued to FleetBoston $50 - $70 MM
Breakup fee payable to Hudson United 50
Excess restructuring charge (after tax) 100
Sale of $2 billion in deposits to FleetBoston at
below market premiums(1) 100
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TOTAL SHAREHOLDER VALUE DESTROYED $300 - $320 MM
AS A % OF NFB PROPOSED VALUE(2) 16% - 17%
(1) Represents a 5% incremental premium over the 8% deposit
premium purchase price disclosed in NFB Proposal, for a 13%
total market-based deposit premium.
(2) Based on $17.00 per Dime share.
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DIME UNITED - A SUPERIOR FRANCHISE
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THE COMBINATION WITH HUDSON UNITED CREATES A MORE COMPELLING FRANCHISE:
o Dime United will have a powerful branch network encompassing
a four state region from Philadelphia to Hartford
o Greater presence in more affluent areas, particularly in New
Jersey and Connecticut
o 40% of NFB Proposal franchise highly concentrated in just two
counties
DIME UNITED NFB PROPOSAL
[GRAPHIC BRANCH MAP OF DIME UNITED] [GRAPHIC BRANCH MAP OF NFB PROPOSAL]
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DIME UNITED - A SUPERIOR FRANCHISE
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BALANCED GEOGRAPHIC DIVERSIFICATION
DIME UNITED DEPOSITS
[PIE CHART]
Connecticut 8%
New Jersey 27%
New York 59%
Pennsylvania 6%
NFB/DIME DEPOSITS
[PIE CHART]
Connecticut 2%
New Jersey 10%
New York 88%
MORE AFFLUENT DEMOGRAPHICS AND MARKETS
% OF DEPOSITS IN AFFLUENT MARKETS(1)
[BAR CHART]
Dime United 72%
NFB/Dime 64%
(1) Defined as counties with median household income greater than
U.S. median.
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DIME SHAREHOLDERS GET LESS FROM NFB PROPOSAL
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CONTRIBUTION ANALYSIS
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DIME UNITED NFB/DIME
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DIME % OVER- DIME % OVER-
CONTRIBUTION CONTRIBUTION CONTRIBUTION CONTRIBUTION
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Total Assets 71.2% 27% 59.5% 72%
Tangible Common Equity 64.1 15 48.6 41
2000E Net Income 63.7 14 45.0 31
2000E Net Income Including Synergies(1) 57.1 2 53.1 54
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Dime Pro Forma Ownership 55.9% - 34.5%(2) -
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(1) 100% of synergies ascribed to target institution.
(2) Pro forma for ownership ascribed to FleetBoston.
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A THRIFT IN A BANK'S CLOTHING
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NFB'S GROWTH HAS PRINCIPALLY BEEN ACHIEVED THROUGH THRIFT ACQUISITIONS
AND INCREASES IN BALANCE SHEET LEVERAGE:
ALL NFB ACQUISITIONS SINCE 1995
(DOLLARS IN MILLIONS)
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TRANSACTION TOTAL ASSETS TOTAL DEPOSITS
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Northside Savings Bank - Thrift $1,580 $1,227
Branford Savings Bank - Thrift 177 158
New York Bancorp - Thrift 3,284 1,691
Jamaica Savings Bank - Thrift 1,613 1,119
Reliance Federal - Thrift 2,452 1,549
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TOTAL THRIFTS ACQUIRED $9,106 $5,744
NFB Total Balance Sheet Pro Forma 12/31/99 $16,266 $9,157
% THRIFT COMPOSITION OF NFB 56% 63%
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NET INTEREST MARGIN INFLUENCES P/E MULTIPLE
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NET INTEREST MARGIN(1)
[BAR CHART]
135 bp reduction
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1997 1998 1999 Pro Forma(2)
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NFB 4.69% 4.48% 4.16% 3.34%
87 bp Increase
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1997 1998 1999 Pro Forma(3)
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Dime 2.51% 2.68% 2.91% 3.38%
(1) As originally reported.
(2) Pro forma for Dime, JSB, and Reliance.
(3) Dime United pro forma.
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2000 P/E MULTIPLE
[GRAPHIC OMITTED]
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| |
| ----------------- |
| | Bank Peer | |
| | Average P/E(1) | |
| ----------------- |
9.1x |----------------------------------------------|
| ------ / |
| | NFB | / |
| | 8.8x | / |
| ------ \ / |
| 32% Decrease \ / |
| \ / 75% Increase |
| \ / |
| \/ |
| / \ |
| / \ |
6.0x |----------------------------------------------|
| ---------- / ----------------- |
| | Dime | | Thrift Peer | |
| | United | | Average P/E(2) | |
| | 5.2x | ----------------- |
| ---------- |
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(1) Includes Summit Bancorp, Associated Banc-Corp, and M&T Bank
Corp.
(2) Includes Astoria Financial Corp., Sovereign Bancorp,
Washington Mutual, and Golden State Bancorp.
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DIME UNITED TRANSACTION STRATEGICALLY SUPERIOR
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= Provides greater upside potential through multiple expansion
= Broadens franchise geographically into new markets
(Pennsylvania, Upstate NY and Connecticut) while greatly
enhancing its New Jersey presence
= Capitalizes on Dime's strong retail brand identity
= Balances and diversifies Dime's earnings stream. Accelerates
Dime's progression towards a commercial bank profile
= Dime shareholders preserve the opportunity to realize a
"change of control" premium for the more valuable Dime United
franchise
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DIME UNITED TRANSACTION SUPERIOR FOR DIME SHAREHOLDERS
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OTHER DOCUMENTS
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INVESTORS ARE URGED TO READ DIME AND HUDSON'S PROXY
STATEMENT/PROSPECTUS, INCLUDING THE SUPPLEMENT DATED MARCH 7, 2000 AND
ANY OTHER AMENDMENTS OR SUPPLEMENTS WHEN THEY BECOME AVAILABLE, AS WELL
AS ANY SOLICITATION/RECOMMENDATION STATEMENT THAT MAY BE FILED BY DIME,
BECAUSE THEY CONTAIN IMPORTANT INFORMATION. EACH OF THESE DOCUMENTS HAS
BEEN OR WILL BE FILED WITH THE SEC AND INVESTORS MAY OBTAIN A FREE COPY
OF THEM AT THE SEC'S INTERNET WEB SITE AT WWW.SEC.GOV. THESE DOCUMENTS
MAY ALSO BE OBTAINED FOR FREE FROM DIME BY DIRECTING SUCH REQUEST TO:
DIME BANCORP, INC., C/O INNISFREE M&A INCORPORATED, 501 MADISON AVENUE,
20TH FLOOR, NEW YORK, NEW YORK 10022, TOLL FREE PHONE: (888) 750-5834.
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INFORMATION ABOUT NORTH FORK AND FLEETBOSTON
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THE INFORMATION IN THIS PRESENTATION REGARDING NORTH FORK, NORTH FORK'S
OFFER AND NORTH FORK'S ARRANGEMENTS WITH FLEETBOSTON IS BASED ENTIRELY
ON, AND IS QUALIFIED ENTIRELY BY REFERENCE TO, NORTH FORK'S AND
FLEETBOSTON'S DOCUMENTS FILED WITH THE SEC AS OF MARCH 7TH.
THESE DOCUMENTS INCLUDE:
o Communications by North Fork, filed on March 6, 2000,
pursuant to the SEC's Rule 425 under the Securities Act of
1933
o Preliminary Proxy Solicitation Material by North Fork, filed
on March 6, 2000, pursuant to the SEC's Rule 14a-12 under the
Securities Exchange Act of 1934
o Schedule TO by FleetBoston, filed on March 6, 2000
DIME AND HUDSON MAKE NO GUARANTEE AS TO THE ACCURACY OF THE INFORMATION
CONTAINED IN THESE DOCUMENTS.
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