1
Contact: Dime
William S. Burns
(212) 326-6170
January 19, 2001
03/01
FOR IMMEDIATE RELEASE
DIME BANCORP ANNOUNCES RECORD QUARTERLY
AND ANNUAL OPERATING EARNINGS
New York -- January 19, 2001 -- Dime Bancorp, Inc. (NYSE: DME) today
announced record quarterly operating earnings of $72.5 million for the fourth
quarter of 2000, up 16.2% from $62.3 million for the fourth quarter of 1999 and
up 4.4% from $69.4 million in the 2000 third quarter. Dime also posted record
annual operating earnings of $273.7 million for the year ended December 31,
2000, up 12.2% from $243.9 million for 1999. Operating earnings are reported
results adjusted for the effects of certain non-recurring or unusual items.
Tony Terracciano, Chairman of Dime, said, "We continued to demonstrate
the value of our franchise with another quarter of solid performance. Credit
quality remains sound, and with about 75% of our loan portfolio secured by
single- or multi-family residential properties, we believe we are better
insulated against the stresses of an economic slowdown. In addition, we are
excited about the progress we have made on our technology initiatives, which we
expect will provide new and valuable Internet-based products and services to our
business and retail customers."
Lawrence J. Toal, Dime's Chief Executive Officer, said, "Despite the
distractions of the past year, our strategy stayed on course, enabling us to
continue to generate record operating earnings. Our approach includes balanced
business lines, discipline in managing credit risk and interest rate risk and a
continued focus on expense management. The profit improvement initiatives
announced in the third quarter of 2000 are on track and should positively impact
our results in 2001. In addition, we ended the year with growing momentum,
including strong loan origination pipelines."
Diluted earnings per share for the quarter and the year ended December
31, 2000 were reduced $0.03 and $0.05, respectively, as a result of a temporary
increase in average diluted common shares outstanding due to the issuance of
13.6 million shares to Warburg Pincus Equity Partners, L.P. and affiliates. The
bulk of the shares were issued early in the third quarter of 2000 and the
remainder early in the fourth quarter of 2000, while a program to repurchase
13.6 million shares did not commence until October 24, 2000. Since that time,
Dime has repurchased 6.8 million shares at an average cost of $24.67 per share.
Stock repurchases are expected to continue in the first quarter of 2001.
Diluted operating earnings per share, adjusted to exclude the temporary
increase in average shares outstanding and the related net interest income
benefit, were $0.62 for the 2000 fourth quarter, up 10.7% from $0.56 in the 1999
fourth quarter and up from $0.61 in the 2000 third quarter. On a similar basis,
diluted operating earnings per share for the year ended December 31, 2000 were
$2.41, an 11.1% increase from $2.17 in 1999. Earnings per share for 1999 were
not impacted by the Warburg investment.
Diluted operating earnings per share for the fourth quarter of 2000,
excluding any adjustment for average shares outstanding, were $0.59, compared
with $0.56 in the 1999 fourth quarter and $0.59 in the 2000 third
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quarter. For the year ended December 31, 2000, such unadjusted operating
earnings per diluted share were $2.36, compared with $2.17 for 1999.
On a reported basis, Dime had net income of $71.5 million, or $0.58 per
diluted share, for the 2000 fourth quarter, compared with net income of $62.3
million, or $0.56 per diluted share, in the 1999 fourth quarter and a net loss
of $16.5 million, or $0.16 per diluted share, for the 2000 third quarter. For
the year ended December 31, 2000, Dime had reported net income of $154.7
million, or $1.35 per diluted share, versus $239.8 million, or $2.13 per diluted
share, for 1999.
Operating earnings for the 2000 fourth quarter include adjustments to
reported earnings of $1.5 million of pre-tax charges related to a hostile
takeover attempt of Dime. There were no adjustments to reported earnings in the
1999 fourth quarter, while the calculation of operating earnings for the 2000
third quarter excluded $131.0 million of pre-tax charges related to the
designation for sale of securities from DimeSection s portfolio, actions
associated with an initiative to reduce annual expenses by $50 million and
charges related to the hostile takeover attempt. For the year ended December 31,
2000, operating earnings include adjustments to reported earnings of $186.7
million of pre-tax charges, which includes the charges described above for the
third and fourth quarter as well as $54.3 million of pre-tax charges, taken in
the second quarter, related to the termination of a planned merger and the
hostile takeover attempt, while operating earnings in 1999 include a pre-tax
adjustment of $7.2 million from the extraordinary loss on the early
extinguishment of debt.
CASH OPERATING EARNINGS
Cash operating earnings were $78.8 million, or $0.64 per diluted share,
for the 2000 fourth quarter, compared with $68.5 million, or $0.62 per diluted
share, for the 1999 fourth quarter and $75.5 million, or $0.64 per diluted
share, for the 2000 third quarter. Cash operating earnings for the year ended
December 31, 2000 were $299.0 million, or $2.57 per diluted share, compared with
$260.2 million, or $2.31 per diluted share, for 1999. Cash operating earnings
are operating earnings excluding the after-tax effect of goodwill amortization
expense and have not been adjusted for the above-mentioned temporary increase in
shares outstanding in 2000.
NET INTEREST INCOME AND NET INTEREST MARGIN
Net interest income increased to $155.8 million in the fourth quarter of
2000 from $153.9 million in the fourth quarter of 1999 and was basically flat
versus $156.8 million in the third quarter of 2000. The increase as compared
with the year earlier quarter reflects a higher level of interest-earning
assets, partially offset by a decline in the net interest margin.
The net interest margin for the 2000 fourth quarter was 2.81%, versus
2.98% in the 1999 fourth quarter and 2.84% in the 2000 third quarter. Dime's
interest rate spread was 2.90%, 3.05%, and 2.92% in the fourth quarter of 2000,
the fourth quarter of 1999, and the third quarter of 2000, respectively. The
declines versus the prior year quarter in net interest margin and spread were
primarily due to higher funding costs associated with an inverted yield curve
interest rate environment, partially offset by a higher proportion of higher
yielding non-residential loans.
NON-INTEREST INCOME
Non-interest income in the 2000 fourth quarter on an operating earnings
basis totaled $149.0 million, up 12.4% from $132.6 million in the 1999 fourth
quarter and 6.5% from $139.9 million in the third quarter of 2000.
- - Loan servicing and production fees were $75.3 million in the 2000 fourth
quarter, up 9.9% from $68.5 million in the fourth quarter of 1999 and 2.8%
from $73.2 million in the 2000 third quarter.
- - Banking service fees in the 2000 fourth quarter increased 9.4% to $16.3
million from $14.9 million in the 1999 fourth quarter and were down slightly
from $16.7 million in the 2000 third quarter.
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- - Securities and insurance brokerage fees of $8.8 million for the 2000 fourth
quarter decreased from $9.1 million in the 1999 fourth quarter and $10.2
million in the 2000 third quarter.
- - Net gains on sales activities for the 2000 fourth quarter were $44.7
million, up $8.4 million from $36.3 million in the 1999 fourth quarter and
$8.7 million from $36.0 million in the third quarter of 2000, reflecting in
part higher refinancing activity.
NON-INTEREST EXPENSE
Non-interest expense on an operating earnings basis was $186.8 million
in the 2000 fourth quarter, compared with $181.0 million in the 1999 fourth
quarter and $182.9 million in the 2000 third quarter. The increases in the
current quarter largely reflected higher levels of mortgage servicing rights
amortization resulting from increases in residential mortgage loan prepayment
rates. These increases were partially offset by reduced general and
administrative expenses related to management's ongoing efforts to contain
costs. G&A expenses were $140.0 million in the 2000 fourth quarter, down from
$144.1 million in the 1999 fourth quarter and $142.0 in the 2000 third quarter.
The efficiency ratio improved during the fourth quarter of 2000 to 45.9%
from 50.3% in the fourth quarter of 1999 and 47.9% in the third quarter of 2000.
LOANS RECEIVABLE AND LOAN SERVICING
At December 31, 2000, Dime's loans receivable portfolio totaled $16.3
billion, compared with $15.2 billion at December 31, 1999 and $16.1 billion at
September 30, 2000. The increases from the prior periods were related to
continued growth in the commercial real estate, consumer, and business loan
portfolios, which represented 51.4% of total loans at December 31, 2000, up from
46.1% at December 31, 1999 and 50.2% at September 30, 2000.
At December 31, 2000, Dime serviced $44.1 billion of loans for others,
substantially all of which were residential real estate loans. This compares
with $38.4 billion at December 31, 1999 and $42.6 billion at September 30, 2000.
Excluding loans being subserviced, the weighted average coupon rate of
residential loans serviced for others was 7.40% at December 31, 2000, compared
with 7.25% at December 31, 1999 and 7.37% at September 30, 2000. The book value
of mortgage servicing assets at December 31, 2000 was $1.02 billion, including
$75 million associated with hedges, while the estimated fair value was $1.03
billion.
The residential mortgage pipeline was $7.6 billion at December 31, 2000,
compared with $4.4 billion at December 31, 1999 and $7.0 billion at September
30, 2000. The pipeline currently stands in excess of $9.0 billion. The actual
level of loans closed is related to the level of the pipeline, but may fluctuate
due to various factors, including changes in market rates for residential
mortgages.
ASSET QUALITY
The allowance for loan losses was $144.4 million at December 31, 2000,
representing 215% of non-accrual loans. These figures compare favorably with the
allowance and coverage levels of $140.3 million and 202%, respectively, at
December 31, 1999 and $146.7 million and 198%, respectively, at September 30,
2000.
At December 31, 2000, non-performing assets (non-accrual loans and other
real estate owned) totaled $87.5 million, or 0.34% of total assets, compared
with $86.1 million, or 0.36% of total assets, at December 31, 1999 and $91.3
million, or 0.36% of total assets, at September 30, 2000. At December 31, 2000,
approximately 75% of Dime's non-performing assets were related to 1-4 family
residential property assets, which typically have low loss rates.
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In the fourth quarter of 2000, the provision for loan losses was $7.0
million, unchanged from both the fourth quarter of 1999 and the third quarter of
2000. Net charge-offs were $9.3 million in the 2000 fourth quarter, compared
with $5.8 million in the 1999 fourth quarter and $3.8 million in the 2000 third
quarter. Net charge-offs were higher in the fourth quarter of 2000 due primarily
to a regulatory policy change that accelerated charge-offs on certain consumer
and residential mortgage loans. This policy change resulted in a one-time $3.3
million increase in charge-offs.
RECENT EVENTS
On December 29, 2000, Dime distributed to its common shareholders one
Litigation Tracking Warrant(TM) (LTW(TM)) per common share. These LTWs represent
a substantial portion of Dime's economic interest in its pending "goodwill"
lawsuit against the U.S. government. The LTWs are listed on the Nasdaq National
Market under the trading symbol DIMEZ.
Today, at 11:00 a.m. EST, Lawrence J. Toal, Chief Executive Officer, and
Anthony R. Burriesci, Chief Financial Officer, will host an investor conference
call to review Dime's financial and operating performance for the period. The
conference call is open to the public by calling 1-800-553-5260. A replay of the
conference call will also be available beginning at 3:00 p.m. EST on January 19
through 5:00 p.m. EST on January 26 at 1-800-475-6701. The access code for the
replay is 566317.
At December 31, 2000, Dime had assets of $25.7 billion and deposits of
$14.0 billion. Its principal subsidiary, The Dime Savings Bank of New York, FSB
(www.dime.com), is a regional bank serving consumers and businesses throughout
the greater New York City metropolitan area. Directly and through its mortgage
banking subsidiary, North American Mortgage Company (www.namc.com), Dime also
provides consumer loans, insurance products and mortgage banking services
throughout the United States.
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Certain statements in Dime's press releases may be forward-looking. A
variety of factors could cause Dime's actual results and experience to differ
materially from the anticipated results or other expectations expressed in such
forward-looking statements. The risks and uncertainties that may affect the
operations, performance, development, and results of Dime's business include
litigation, interest rate movements, competition from both financial and
non-financial institutions, changes in applicable laws and regulations, the
timing and occurrence (or non-occurrence) of transactions and events that may be
subject to circumstances beyond Dime's control and general economic conditions.
Dime believes that "operating earnings" and "cash operating earnings"
basis information, when taken in conjunction with reported results, provide
useful information in evaluating performance on a comparable basis, although
operating earnings and cash operating earnings are not currently a required
basis for reporting financial results under generally accepted accounting
principles.
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DIME BANCORP, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
At or For the
At or For the Three Months Ended Year Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31,
2000 2000 2000 2000 1999 2000 1999
OPERATING EARNINGS BASIS (1)
Operating earnings (in thousands) $72,458 $ 69,381 $66,616 $65,273 $62,331 $273,728 $243,940
Basic operating earnings per common share 0.66 0.63 0.60 0.59 0.56 2.48 2.19
Diluted operating earnings per common share 0.59 0.59 0.60 0.59 0.56 2.36 2.17
Return on average assets 1.16 % 1.10 % 1.09 % 1.11 % 1.07 % 1.11 % 1.11 %
Return on average stockholders' equity 16.35 16.09 17.14 17.04 16.67 16.62 16.74
Interest rate spread 2.90 2.92 2.99 3.07 3.05 2.94 2.97
Net interest margin 2.81 2.84 2.88 2.96 2.98 2.84 2.91
Non-interest income to total revenues 48.89 47.16 46.07 46.27 46.29 47.12 49.55
Efficiency ratio 45.93 47.85 48.03 49.08 50.30 47.70 51.40
CASH OPERATING EARNINGS BASIS (2)
Cash operating earnings (in thousands) $78,818 $ 75,457 $73,040 $71,669 $68,486 $298,984 $260,167
Basic cash operating earnings per common share 0.72 0.68 0.66 0.65 0.62 2.71 2.34
Diluted cash operating earnings per common share 0.64 0.64 0.66 0.64 0.62 2.57 2.31
Return on average tangible assets 1.28 % 1.22 % 1.22 % 1.25 % 1.21 % 1.24 % 1.20 %
Return on average tangible stockholders' equity 24.91 24.96 28.31 28.59 27.27 26.50 22.88
REPORTED BASIS
Net income (loss) (in thousands) $71,476 $(16,539) $34,443 $65,273 $62,331 $154,653 $239,813
Basic earnings (loss) per common share 0.65 (0.16) 0.31 0.59 0.56 1.39 2.15
Diluted earnings (loss) per common share 0.58 (0.16) 0.31 0.59 0.56 1.35 2.13
Return on average assets 1.14 % NM % 0.56 % 1.11 % 1.07 % 0.63 % 1.09 %
Return on average stockholders' equity 16.13 NM 8.86 17.04 16.67 9.39 16.46
PERIOD END BALANCE SHEET ITEMS
(IN MILLIONS)
Total assets $25,688 $ 25,232 $25,259 $24,180 $23,921 $ 25,688 $ 23,921
Total interest-earning assets 22,425 22,227 22,509 21,519 21,314 22,425 21,314
Securities available for sale 2,851 3,342 3,900 3,928 3,850 2,851 3,850
Loans held for sale 2,805 2,364 2,165 1,505 1,734 2,805 1,734
Loans receivable 16,287 16,051 15,959 15,579 15,207 16,287 15,207
Total interest-bearing liabilities 23,479 22,961 23,242 22,085 22,007 23,479 22,007
Deposits 13,977 13,903 14,284 14,406 14,261 13,977 14,261
Borrowed funds 9,502 9,058 8,958 7,679 7,746 9,502 7,746
Total stockholders' equity 1,725 1,786 1,560 1,573 1,516 1,725 1,516
(1) Operating earnings represent net income/loss adjusted for the effects of
certain non-recurring or unusual items.
(2) Cash operating earnings represent operating earnings excluding amortization
of goodwill, net of taxes.
NM = Not meaningful.
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DIME BANCORP, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA (CONTINUED)
(UNAUDITED)
At or For the
At or For the Three Months Ended Year Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31,
2000 2000 2000 2000 1999 2000 1999
AVERAGE BALANCES (IN MILLIONS)
Total assets $ 25,081 $ 25,192 $ 24,442 $ 23,476 $ 23,201 $ 24,551 $ 21,963
Total interest-earning assets 22,426 22,626 21,934 21,014 20,975 22,003 19,861
Securities available for sale 3,272 4,002 3,935 3,858 3,955 3,766 3,545
Loans held for sale 2,449 2,177 1,776 1,325 1,596 1,934 2,342
Loans receivable 16,236 15,969 15,734 15,315 14,897 15,815 13,466
Total interest-bearing liabilities 22,834 23,004 22,456 21,536 21,332 22,460 20,112
Deposits 13,979 14,034 14,259 14,231 14,121 14,125 13,524
Borrowed funds 8,855 8,970 8,197 7,305 7,211 8,335 6,588
Total stockholders' equity 1,773 1,725 1,555 1,532 1,496 1,647 1,457
ASSET QUALITY (DOLLARS IN THOUSANDS)
Non-performing assets:
Non-accrual loans $ 67,163 $ 73,958 $ 65,829 $ 73,562 $ 69,362 $ 67,163 $ 69,362
Other real estate owned, net 20,372 17,331 18,272 16,635 16,691 20,372 16,691
-------- -------- -------- -------- -------- -------- --------
Total non-performing assets $ 87,535 $ 91,289 $ 84,101 $ 90,197 $ 86,053 $ 87,535 $ 86,053
======== ======== ======== ======== ======== ======== ========
Non-performing assets to total assets 0.34 % 0.36 % 0.33 % 0.37 % 0.36 % 0.34 % 0.36 %
Non-accrual loans to loans receivable 0.41 0.46 0.41 0.47 0.46 0.41 0.46
Allowance for loan losses $144,362 $146,655 $143,432 $ 142,485 $ 140,296 $ 144,362 $140,296
Allowance for loan losses to:
Loans receivable 0.89 % 0.91 % 0.90 % 0.91 % 0.92 % 0.89 % 0.92 %
Non-accrual loans 214.94 198.29 217.89 193.69 202.27 214.94 202.27
CAPITAL RATIOS
Total stockholders' equity to total
assets 6.71 % 7.08 % 6.18 % 6.51 % 6.34 % 6.71 % 6.34 %
The Dime Savings Bank of New York, FSB:
Tangible and core 5.83 (3) 5.86 5.93 6.16 5.90 5.83 (3) 5.90
Tier 1 risk-based 8.54 (3) 8.66 8.71 9.00 8.80 8.54 (3) 8.80
Total risk-based 10.12 (3) 10.13 10.14 10.50 10.33 10.12 (3) 10.33
OTHER PERIOD END DATA
Common shares outstanding
(in thousands) 116,851 109,635 109,299 111,688 110,895 116,851 110,895
Book value per common share $ 14.36 $ 14.38 $ 14.27 $ 14.09 $ 13.67 $ 14.36 $ 13.67
Tangible book value per common share 10.02 9.70 9.49 9.34 8.84 10.02 8.84
Loans serviced for others (in millions) 44,143 42,555 41,124 39,947 38,430 44,143 38,430
(3) Preliminary.
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DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
FOR THE THREE MONTHS ENDED FOR THE YEAR ENDED
---------------------------------------------------------
DEC. 31, SEPT. 30, JUNE 30, MARCH 31, DEC. 31, DEC. 31,
-----------------------
2000 2000 2000 2000 1999 2000 1999
--------- ---------- ----------- ----------- ---------- ---------- ----------
INTEREST INCOME
Residential real estate loans $197,432 $193,176 $183,730 $172,462 $176,044 $ 746,800 $ 744,382
Commercial real estate loans 86,239 82,569 75,764 69,161 63,389 313,733 228,571
Consumer loans 64,876 61,147 56,696 53,059 51,147 235,778 132,213
Business loans 26,292 25,540 24,012 22,862 18,658 98,706 39,740
Mortgage-backed securities 54,402 67,200 64,835 63,678 63,515 250,115 222,385
Other securities 14,495 14,339 14,151 12,538 12,721 55,523 50,296
Money market investments 324 212 202 247 239 985 1,511
--------- --------- --------- --------- ---------- ---------- ----------
Total interest income 444,060 444,183 419,390 394,007 385,713 1,701,640 1,419,098
--------- --------- --------- --------- ---------- ---------- ----------
INTEREST EXPENSE
Deposits 139,581 137,729 132,286 130,476 127,895 540,072 482,006
Borrowed funds 148,720 149,684 130,955 108,863 103,964 538,222 358,607
--------- --------- --------- --------- ---------- ---------- ----------
Total interest expense 288,301 287,413 263,241 239,339 231,859 1,078,294 840,613
--------- --------- --------- --------- ---------- ---------- ----------
Net interest income 155,759 156,770 156,149 154,668 153,854 623,346 578,485
Provision for loan losses 7,000 7,000 7,000 7,000 7,000 28,000 29,500
--------- --------- --------- --------- ---------- ---------- ----------
Net interest income after provision
for loan losses 148,759 149,770 149,149 147,668 146,854 595,346 548,985
--------- --------- --------- --------- ---------- ---------- ----------
NON-INTEREST INCOME
Loan servicing and production fees 75,269 73,227 71,265 66,844 68,474 286,605 267,520
Banking service fees 16,285 16,709 16,418 15,521 14,884 64,933 51,798
Securities and insurance brokerage fees 8,815 10,167 11,314 10,533 9,129 40,829 36,710
Net gains on sales activities 44,679 35,998 30,519 36,639 36,310 147,835 200,427
Other 3,957 3,797 3,891 3,644 3,821 15,289 11,788
--------- --------- --------- --------- ---------- ---------- ----------
Total non-interest income 149,005 139,898 133,407 133,181 132,618 555,491 568,243
--------- --------- --------- --------- ---------- ---------- ----------
NON-INTEREST EXPENSE
General and administrative expense:
Compensation and employee benefits 75,129 77,237 75,831 75,617 74,555 303,814 303,750
Occupancy and equipment 27,723 27,960 27,612 28,114 27,077 111,409 103,661
Other 37,137 36,772 35,643 37,553 42,465 147,105 182,059
--------- --------- --------- --------- ---------- ---------- ----------
Total general and administrative expense 139,989 141,969 139,086 141,284 144,097 562,328 589,470
Amortization of mortgage servicing assets 38,343 32,631 31,009 29,232 28,989 131,215 122,786
Amortization of goodwill 8,496 8,329 8,371 8,346 7,917 33,542 18,520
--------- --------- --------- --------- ---------- ---------- ----------
Total non-interest expense 186,828 182,929 178,466 178,862 181,003 727,085 730,776
--------- --------- --------- --------- ---------- ---------- ----------
Operating earnings before income tax expense 110,936 106,739 104,090 101,987 98,469 423,752 386,452
Income tax expense 38,478 37,358 37,474 36,714 36,138 150,024 142,512
--------- --------- --------- --------- ---------- ---------- ----------
Operating earnings $ 72,458 $ 69,381 $ 66,616 $ 65,273 $ 62,331 $ 273,728 $ 243,940
========= ========= ========= ========= ========== ========== ==========
Operating earnings applicable to common
stockholders for basic operating earnings
per common share $ 71,097 $ 68,420 $ 66,616 $ 65,273 $ 62,331 $ 271,406 $ 243,940
Operating earnings applicable to common
stockholders for diluted operating earnings
per common share 72,458 69,381 66,616 65,273 62,331 273,728 243,940
OPERATING EARNINGS PER COMMON SHARE
Basic $ 0.66 $ 0.63 $ 0.60 $ 0.59 $ 0.56 $ 2.48 $ 2.19
Diluted 0.59 0.59 0.60 0.59 0.56 2.36 2.17
AVERAGE COMMON SHARES OUTSTANDING FOR
OPERATING EARNINGS PER COMMON SHARE
Basic 107,092 109,323 110,293 110,537 110,440 109,305 111,355
Diluted 123,649 118,374 111,439 111,229 111,332 116,199 112,533
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DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
FOR THE THREE MONTHS ENDED FOR THE YEAR ENDED
--------------------------------------------------------
DEC. 31, SEPT. 30, JUNE 30, MARCH 31, DEC. 31, DEC. 31,
--------------------
2000 2000 2000 2000 1999 2000 1999
---------- ---------- --------- ---------- -------- --- ------- -----------
INTEREST INCOME
Residential real estate loans $197,432 $193,176 $183,730 $172,462 $176,044 $ 746,800 $ 744,382
Commercial real estate loans 86,239 82,569 75,764 69,161 63,389 313,733 228,571
Consumer loans 64,876 61,147 56,696 53,059 51,147 235,778 132,213
Business loans 26,292 25,540 24,012 22,862 18,658 98,706 39,740
Mortgage-backed securities 54,402 67,200 64,835 63,678 63,515 250,115 222,385
Other securities 14,495 14,339 14,151 12,538 12,721 55,523 50,296
Money market investments 324 212 202 247 239 985 1,511
--------- ---------- -------- --------- -------- ---------- ----------
Total interest income 444,060 444,183 419,390 394,007 385,713 1,701,640 1,419,098
--------- ---------- -------- --------- -------- ---------- ----------
INTEREST EXPENSE
Deposits 139,581 137,729 132,286 130,476 127,895 540,072 482,006
Borrowed funds 148,720 149,684 130,955 108,863 103,964 538,222 358,607
--------- ---------- -------- --------- -------- ---------- ---------
Total interest expense 288,301 287,413 263,241 239,339 231,859 1,078,294 840,613
--------- ---------- -------- --------- -------- ---------- ----------
Net interest income 155,759 156,770 156,149 154,668 153,854 623,346 578,485
Provision for loan losses 7,000 7,000 7,000 7,000 7,000 28,000 29,500
--------- ---------- -------- --------- -------- ---------- ----------
Net interest income after provision
For loan losses 148,759 149,770 149,149 147,668 146,854 595,346 548,985
--------- ---------- -------- --------- -------- ---------- ----------
NON-INTEREST INCOME
Loan servicing and production fees 75,269 73,227 71,265 66,844 68,474 286,605 267,520
Banking service fees 16,285 16,709 16,418 15,521 14,884 64,933 51,798
Securities and insurance brokerage fees 8,815 10,167 11,314 10,533 9,129 40,829 36,710
Loss upon designation for sale of
mortgage-backed securities -- (87,441) -- -- -- (87,441) --
Net gains on sales activities 44,679 35,998 30,519 36,639 36,310 147,835 200,427
Other 3,957 3,797 3,891 3,644 3,821 15,289 11,788
--------- ---------- -------- --------- -------- ---------- ----------
Total non-interest income 149,005 52,457 133,407 133,181 132,618 468,050 568,243
--------- ---------- -------- --------- -------- ---------- ----------
NON-INTEREST EXPENSE
General and administrative expense:
Compensation and employee benefits 75,129 77,237 75,831 75,617 74,555 303,814 303,750
Occupancy and equipment 27,723 27,960 27,612 28,114 27,077 111,409 103,661
Other 37,137 36,772 35,643 37,553 42,465 147,105 182,059
--------- ---------- -------- --------- -------- ---------- ----------
Total general and administrative expense 139,989 141,969 139,086 141,284 144,097 562,328 589,470
Amortization of mortgage servicing assets 38,343 32,631 31,009 29,232 28,989 131,215 122,786
Amortization of goodwill 8,496 8,329 8,371 8,346 7,917 33,542 18,520
Restructuring and other special charges 1,512 43,537 54,255 -- -- 99,304 --
--------- ---------- -------- --------- -------- ---------- ----------
Total non-interest expense 188,340 226,466 232,721 178,862 181,003 826,389 730,776
--------- ---------- -------- --------- -------- --------- ----------
Income (loss) before income tax expense
(benefit) and extraordinary items 109,424 (24,239) 49,835 101,987 98,469 237,007 386,452
Income tax expense (benefit) 37,948 (7,700) 15,392 36,714 36,138 82,354 142,512
--------- ---------- -------- --------- -------- ---------- ----------
Income (loss) before extraordinary items 71,476 (16,539) 34,443 65,273 62,331 154,653 243,940
Extraordinary items - losses on early
extinguishment of debt, net of tax benefits -- -- -- -- -- -- (4,127)
--------- ---------- -------- --------- -------- ---------- ----------
Net income (loss) $ 71,476 $(16,539) $ 34,443 $ 65,273 $ 62,331 $ 154,653 $ 239,813
========= ========== ======== ========= ======== ========== ==========
Income (loss) applicable to common stockholders
for basic earnings (loss) per
common share:
Income (loss) income before
extraordinary items $ 70,115 $(17,500) $ 34,443 $ 65,273 $ 62,331 $ 152,331 $ 243,940
Net income (loss) 70,115 (17,500) 34,443 65,273 62,331 152,331 239,813
Income (loss) applicable to common stockholders
for diluted earnings (loss) per common share:
Income (loss) before extraordinary items 71,476 (17,500) 34,443 65,273 62,331 153,692 243,940
Net income (loss) 71,476 (17,500) 34,443 65,273 62,331 153,692 239,813
PER COMMON SHARE
Basic earnings (loss):
Income (loss) before extraordinary items $ 0.65 $ (0.16) $ 0.31 $ 0.59 $ 0.56 $ 1.39 $ 2.19
Net income (loss) 0.65 (0.16) 0.31 0.59 0.56 1.39 2.15
Diluted earnings (loss):
Income (loss) before extraordinary items 0.58 (0.16) 0.31 0.59 0.56 1.35 2.17
Net income (loss) 0.58 (0.16) 0.31 0.59 0.56 1.35 2.13
Cash dividends declared 0.10 0.08 0.08 0.06 0.06 0.32 0.23
AVERAGE COMMON SHARES OUTSTANDING
Basic 107,092 109,323 110,293 110,537 110,440 109,305 111,355
Diluted 123,649 109,323 111,439 111,229 111,332 113,924 112,533
10
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(IN THOUSANDS)
(UNAUDITED)
DECEMBER 31, DECEMBER 31,
2000 1999
------------------ ------------------
ASSETS
Cash and due from banks $ 421,685 $ 414,289
Money market investments 13,626 18,166
Securities available for sale 2,851,043 3,849,676
Federal Home Loan Bank of New York stock 346,770 328,732
Loans held for sale 2,804,767 1,733,667
Loans receivable, net:
Residential real estate loans 7,916,035 8,200,120
Commercial real estate loans 4,152,874 3,482,857
Consumer loans 3,050,377 2,495,321
Business loans 1,167,878 1,028,756
------------------ ------------------
Total loans receivable 16,287,164 15,207,054
Allowance for loan losses (144,362) (140,296)
------------------ ------------------
Total loans receivable, net 16,142,802 15,066,758
------------------ ------------------
Premises and equipment, net 187,746 207,373
Mortgage servicing assets 1,021,861 980,934
Goodwill 503,320 531,415
Other assets 1,394,208 790,315
------------------ ------------------
Total assets $ 25,687,828 $ 23,921,325
================== ==================
LIABILITIES
Deposits $ 13,976,941 $ 14,261,449
Federal funds purchased and securities sold under
agreements to repurchase 3,082,322 1,106,067
Other short-term borrowings 4,545,199 5,321,838
Guaranteed preferred beneficial interests in Dime Bancorp, Inc.'s
junior subordinated deferrable interest debentures 152,243 152,219
Other long-term debt 1,722,623 1,165,868
Other liabilities 483,661 397,779
------------------ ------------------
Total liabilities 23,962,989 22,405,220
------------------ ------------------
STOCKHOLDERS' EQUITY
Common stock 1,203 1,203
Additional paid-in capital 1,153,376 1,166,530
Warrants 46,722 --
Retained earnings 643,838 670,343
Treasury stock, at cost (87,225) (230,035)
Accumulated other comprehensive loss (30,191) (87,257)
Unearned compensation (2,884) (4,679)
------------------ ------------------
Total stockholders' equity 1,724,839 1,516,105
------------------ ------------------
Total liabilities and stockholders' equity $ 25,687,828 $ 23,921,325
================== ==================