1
Exhibit 99.1
Contact: Dime
William S. Burns
(212) 326-6170
April 19, 2001
01/8
FOR IMMEDIATE RELEASE
DIME BANCORP REPORTS A 25% INCREASE
IN QUARTERLY NET INCOME
New York - April 19, 2001- Dime Bancorp, Inc. (NYSE: DME) today
reported net income of $81.5 million for the first quarter of 2001, up 24.9%
from $65.3 million earned during the first quarter a year ago and up 14.1%
versus $71.5 million earned in the sequential 2000 fourth quarter. Diluted
earnings per share were $0.67 for the 2001 first quarter, up 13.6% from $0.59
earned in the first quarter a year ago and up 15.5% from $0.58 for the 2000
fourth quarter.
Return on average assets was 1.28% for the 2001 first quarter,
representing a 17 basis point increase over the same period a year ago, and
return on average equity was 18.84%, 180 basis points higher than the 2000 first
quarter.
Net income, before the cumulative effect of a change in accounting
principle, for the 2001 first quarter was $92.0 million, or $0.76 per diluted
share. The adoption of SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activities," resulted in a one-time after-tax loss of $10.5 million
associated primarily with the closing of certain hedge positions.
Tony Terracciano, Chairman of Dime, said, "We continued to execute our
plan for creating shareholder value. Our program to intensify communications
with the investment community appears to be working -- the market is beginning
to give Dime credit for its track record of profitability and consistency. Also,
the three-year performance objectives recently announced indicate to investors
that we believe there is more value to be created. Further, we expect our
technology initiatives to allow us to expand our menu of products in a
cost-effective manner. For example, our web-based trade finance product,
TradeCard, is up and running and is now being sold to our business customers."
Lawrence J. Toal, Dime's Chief Executive Officer, said, "Our business
model, which is focused on creating balanced and growing revenues while
controlling expenses and managing risk, continues to drive results. Although a
lower-growth economic environment in the first quarter temporarily slowed the
pace of our ongoing transition to a more commercial bank-like loan mix, our
mortgage banking business generated record quarterly production of $9.5 billion.
Credit quality remains sound, with nonperforming assets declining by about 20%
and reserve coverage of nonaccrual loans increasing considerably from the prior
quarter. Our loan portfolio is performing well despite the stresses of the
current economic
2
slowdown. Furthermore, we expect that recent declines in short-term interest
rates will have a positive effect on net interest income going forward."
NET INTEREST INCOME AND NET INTEREST MARGIN
Net interest income increased to $158.4 million in the first quarter of
2001 from $154.7 million in the first quarter of 2000 and from $155.8 million in
the fourth quarter of 2000. The increase versus the prior periods resulted
largely from growth in interest earning assets offset partially by a decline in
the net interest margin.
The net interest margin for the 2001 first quarter was 2.78%, versus
2.96% in the 2000 first quarter and 2.81% in the 2000 fourth quarter. Dime's
interest rate spread was 2.89%, 3.07%, and 2.90% in the first quarter of 2001,
the first quarter of 2000, and the fourth quarter of 2000, respectively. The
2001 first quarter net interest margin and spread benefited, versus prior
periods, from increased levels of non-residential loans and lower levels of
securities. This benefit, however, was more than offset by a higher level of
loans held for sale reflecting substantially higher residential mortgage loan
production, the normal lag associated with time deposit re-pricing during a
period of declining rates and strategic deposit pricing actions.
NON-INTEREST INCOME
Non-interest income in the 2001 first quarter totaled $213.0 million,
up 59.9% from $133.2 million in the 2000 first quarter and 43.0% from $149.0
million in the fourth quarter of 2000.
- Loan servicing and production fees were $82.2 million in the 2001 first
quarter, up 22.9% from $66.8 million in the first quarter of 2000 and
9.2% from $75.3 million in the 2000 fourth quarter. The increases were
primarily related to substantially higher residential loan production.
- Banking service fees in the 2001 first quarter were $15.9 million, up
2.1% from $15.5 million in the 2000 first quarter but down 2.6% from
$16.3 million in the 2000 fourth quarter.
- Securities and insurance brokerage fees were $10.7 million for the 2001
first quarter, an increase of 1.7% from $10.5 million in the 2000 first
quarter and up 21.5% from $8.8 million in the 2000 fourth quarter.
- Net gains on sales and related activities were $100.5 million for the
2001 first quarter, up $63.8 million from $36.6 million in the 2000
first quarter and up $55.8 million from $44.7 million in the fourth
quarter of 2000, reflecting higher residential loan originations
resulting primarily from significantly higher levels of refinance
activity and, to a lesser extent, higher levels of originations of loans
for home purchases. In addition, net gains were positively affected by
the implementation of SFAS No. 133. With the adoption of the new
accounting rule, gains are recorded at the time value is created during
the residential mortgage origination process. Under the prior
guidelines, the value of loans originated for sale was recognized only
upon actual sale. Approximately $29.5 million of net gains
3
recorded during the first quarter would have been recorded during the
fourth quarter of 2000 had SFAS No. 133 been in effect at that time.
NON-INTEREST EXPENSE
General and administrative expenses were $142.9 million in the 2001
first quarter, higher than both $141.3 million in the 2000 first quarter and
$140.0 million in the 2000 fourth quarter. The increase versus prior periods is
due largely to higher expenses associated with increased residential loan
production at Dime's mortgage banking subsidiary, North American Mortgage
Company, substantially offset by the implementation of an expense reduction
initiative announced in September 2000.
Amortization and valuation adjustments of mortgage servicing assets and
related hedging activities increased in the 2001 first quarter to $62.6 million
from $29.2 million in the 2000 first quarter and $38.3 million in the 2000
fourth quarter. The increase in the current quarter versus prior periods was due
in part to higher levels of mortgage servicing assets amortization resulting
from increases in prepayment rates. In addition, included in the 2001 first
quarter is a charge of $14.8 million against the value of mortgage servicing
assets, net of related hedges, resulting from the sharp decline in interest
rates during the first quarter of 2001.
LOANS RECEIVABLE AND LOAN SERVICING
At March 31, 2001, Dime's loans receivable portfolio totaled $16.3
billion, compared with $15.6 billion at March 31, 2000 and $16.3 billion at
December 31, 2000. The increase from last year's first quarter was related to
growth in the commercial real estate, consumer, and business loan portfolios.
These non-residential loans represented 51.7% of total loans at March 31, 2001,
up from 47.2% at March 31, 2000 and 51.4% at December 31, 2000.
At March 31, 2001, Dime serviced $45.0 billion of loans for others,
substantially all of which were residential real estate loans. This compares
with $39.9 billion at March 31, 2000 and $44.1 billion at December 31, 2000.
Excluding loans being subserviced, the weighted average note rate of residential
loans serviced for others was 7.38% at March 31, 2001, compared with 7.27% at
March 31, 2000 and 7.40% at December 31, 2000.
The residential mortgage pipeline was $14.8 billion at March 31, 2001,
compared with $6.2 billion at March 31, 2000 and $7.6 billion at December 31,
2000.
ASSET QUALITY
The allowance for loan losses was $147.2 million at March 31, 2001,
representing 243.7% of nonaccrual loans. This coverage is considerably higher
than 193.7% and 214.9% at March 31, 2000 and December 31, 2000, respectively.
At March 31, 2001, nonperforming assets declined to $70.6 million, or
just 0.26% of total assets, compared with $90.2 million, or 0.37% of total
assets, at March 31, 2000 and $87.5 million, or 0.34% of total assets, at
December 31, 2000.
4
Net charge-offs were $14.2 million in the 2001 first quarter, compared
with $4.8 million in the 2000 first quarter and $9.3 million in the 2000 fourth
quarter. Net charge-offs for the 2001 first quarter included a $9.0 million
write-off of a single commercial loan. Net charge-offs in the fourth quarter of
2000 included a one-time $3.3 million charge due to a regulatory policy change
that accelerated charge- offs on certain consumer and residential mortgage
loans.
The total provision for loan losses recorded during the 2001 first
quarter was $17.0 million, an increase of $10.0 million from both the first and
fourth quarters of 2000. This increase is consistent with management's recently
announced performance objectives, which include the migration of the allowance
for loans losses to a level that is commensurate with Dime's changing loan mix.
STOCK REPURCHASES AND AVERAGE SHARES OUTSTANDING
During the quarter, 3.5 million common shares were repurchased pursuant
to a plan commenced on October 24, 2000 to repurchase an aggregate of 13.6
million common shares. Since commencement of the program, 10.4 million shares
have been repurchased at an average price of $26.37.
Average diluted common shares for the quarter were 121.4 million. If
the 13.6 million share repurchase program had been completed by January 1, 2001,
average diluted shares would have been 116.1 million, and earnings per share
would have been approximately $0.02 higher.
5
EARNINGS CONFERENCE CALL
Today, at 2:00 p.m. EDT, 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 1-800-450-0786. A replay of the
conference call will also be available beginning at 6:00 p.m. EDT on April 19
through 5:00 p.m. EDT on April 26 at 1-800-475-6701. The access code for the
replay is 583023.
At March 31, 2001, Dime had assets of $27.0 billion and deposits of
$14.6 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.
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.
# # #
6
DIME BANCORP, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(unaudited)
At or For the Three Months Ended
-------------------------------------------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
2001 2000 2000 2000 2000
----------- ----------- ----------- ----------- -----------
REPORTED BASIS
Net income (loss) (in thousands) $ 81,524 $ 71,476 $ (16,539) $ 34,443 $ 65,273
Basic earnings (loss) per common share 0.71 0.65 (0.16) 0.31 0.59
Diluted earnings (loss) per common share 0.67 0.58 (0.16) 0.31 0.59
Return on average assets 1.28 % 1.14 % NM % 0.56 % 1.11 %
Return on average stockholders' equity 18.84 16.13 NM 8.86 17.04
OPERATING EARNINGS BASIS (1)
Operating earnings (in thousands) $ 92,045 $ 72,458 $ 69,381 $ 66,616 $ 65,273
Basic operating earnings per common share 0.80 0.66 0.63 0.60 0.59
Diluted operating earnings per common share 0.76 0.59 0.59 0.60 0.59
Return on average assets 1.44 % 1.16 % 1.10 % 1.09 % 1.11 %
Return on average stockholders' equity 21.27 16.35 16.09 17.14 17.04
Non-interest income to total revenues 57.36 48.89 47.16 46.07 46.27
Efficiency ratio 38.48 45.93 47.85 48.03 49.08
CASH OPERATING EARNINGS BASIS (2)
Cash operating earnings (in thousands) $ 98,308 $ 78,818 $ 75,457 $ 73,040 $ 71,669
Basic cash operating earnings per common share 0.85 0.72 0.68 0.66 0.65
Diluted cash operating earnings per common share 0.81 0.64 0.64 0.66 0.64
Return on average tangible assets 1.57 % 1.28 % 1.22 % 1.22 % 1.25 %
Return on average tangible stockholders' equity 31.93 24.91 24.96 28.31 28.59
ASSET QUALITY (dollars in thousands)
Non-performing assets:
Non-accrual loans $ 60,406 $ 67,163 $ 73,958 $ 65,829 $ 73,562
Other real estate owned, net 10,232 20,372 17,331 18,272 16,635
----------- ----------- ----------- ----------- -----------
Total non-performing assets $ 70,638 $ 87,535 $ 91,289 $ 84,101 $ 90,197
=========== =========== =========== =========== ===========
Non-performing assets to total assets 0.26 % 0.34 % 0.36 % 0.33 % 0.37 %
Non-accrual loans to loans receivable 0.37 0.41 0.46 0.41 0.47
Allowance for loan losses $ 147,210 $ 144,362 $ 146,655 $ 143,432 $ 142,485
Allowance for loan losses to:
Loans receivable 0.90 % 0.89 % 0.91 % 0.90 % 0.91 %
Non-accrual loans 243.70 214.94 198.29 217.89 193.69
CAPITAL RATIOS
Total stockholders' equity to total assets 6.35 % 6.71 % 7.08 % 6.18 % 6.51 %
The Dime Savings Bank of New York, FSB:
Tangible and core 5.81(3) 5.83 5.86 5.93 6.16
Tier 1 risk-based 8.65(3) 8.54 8.66 8.71 9.00
Total risk-based 10.19(3) 10.11 10.13 10.14 10.50
OTHER PERIOD END DATA
Common shares outstanding (in thousands) 114,554 116,851 109,635 109,299 111,688
Book value per common share $ 14.59 $ 14.36 $ 14.38 $ 14.27 $ 14.09
Tangible book value per common share 10.24 10.02 9.70 9.49 9.34
Loans serviced for others (in millions) 45,006 44,143 42,555 41,124 39,947
(1) Operating earnings represent net income/loss adjusted for the effects of
certain non-recurring or unusual items. For the three months ended March 31,
2001, operating earnings excludes the cumulative effect of a change in
accounting principle.
(2) Cash operating earnings represent operating earnings excluding amortization
of goodwill, net of taxes.
(3) Preliminary.
NM = Not meaningful.
7
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
(In thousands, except per share data)
(unaudited)
For the Three Months Ended
------------------------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
2001 2000 2000 2000 2000
-------- -------- -------- -------- --------
INTEREST INCOME
Loans held for sale $ 60,867 $ 50,865 $ 46,956 $ 36,639 $ 26,957
Residential real estate loans receivable 143,578 146,567 146,220 147,091 145,505
Commercial real estate loans receivable 79,357 86,239 82,569 75,764 69,161
Consumer loans receivable 62,214 64,876 61,147 56,696 53,059
Business loans receivable 24,216 26,292 25,540 24,012 22,862
Securities available for sale 48,224 60,425 73,156 70,750 67,702
Other interest-earning assets 9,016 8,796 8,595 8,438 8,761
-------- -------- -------- -------- --------
Total interest income 427,472 444,060 444,183 419,390 394,007
-------- -------- -------- -------- --------
INTEREST EXPENSE
Deposits 135,048 139,581 137,729 132,286 130,476
Borrowed funds 134,057 148,720 149,684 130,955 108,863
-------- -------- -------- -------- --------
Total interest expense 269,105 288,301 287,413 263,241 239,339
-------- -------- -------- -------- --------
Net interest income 158,367 155,759 156,770 156,149 154,668
Provision for loan losses 17,000 7,000 7,000 7,000 7,000
-------- -------- -------- -------- --------
Net interest income after provision
for loan losses 141,367 148,759 149,770 149,149 147,668
-------- -------- -------- -------- --------
NON-INTEREST INCOME
Loan servicing and production fees 82,168 75,269 73,227 71,265 66,844
Banking service fees 15,854 16,285 16,709 16,418 15,521
Securities and insurance brokerage fees 10,707 8,815 10,167 11,314 10,533
Net gains on sales and related activities 100,478 44,679 35,998 30,519 36,639
Other 3,804 3,957 3,797 3,891 3,644
-------- -------- -------- -------- --------
Total non-interest income 213,011 149,005 139,898 133,407 133,181
-------- -------- -------- -------- --------
NON-INTEREST EXPENSE
General and administrative expense:
Compensation and employee benefits 81,139 75,129 77,237 75,831 75,617
Occupancy and equipment 27,681 27,723 27,960 27,612 28,114
Other 34,076 37,137 36,772 35,643 37,553
-------- -------- -------- -------- --------
Total general and administrative expense 142,896 139,989 141,969 139,086 141,284
Amortization and valuation adjustments of
mortgage servicing assets and related
hedging activities 62,646 38,343 32,631 31,009 29,232
Amortization of goodwill 8,310 8,496 8,329 8,371 8,346
-------- -------- -------- -------- --------
Total non-interest expense 213,852 186,828 182,929 178,466 178,862
-------- -------- -------- -------- --------
Operating earnings before income tax expense 140,526 110,936 106,739 104,090 101,987
Income tax expense 48,481 38,478 37,358 37,474 36,714
-------- -------- -------- -------- --------
Operating earnings $ 92,045 $ 72,458 $ 69,381 $ 66,616 $ 65,273
======== ======== ======== ======== ========
Operating earnings applicable to common
stockholders for basic operating earnings per
common share $ 92,045 $ 71,097 $ 68,420 $ 66,616 $ 65,273
Operating earnings applicable to common
stockholders for diluted operating earnings per
common share 92,045 72,458 69,381 66,616 65,273
OPERATING EARNINGS PER COMMON SHARE
Basic $ 0.80 $ 0.66 $ 0.63 $ 0.60 $ 0.59
Diluted 0.76 0.59 0.59 0.60 0.59
AVERAGE COMMON SHARES OUTSTANDING FOR
OPERATING EARNINGS PER COMMON SHARE
Basic 115,629 107,092 109,323 110,293 110,537
Diluted 121,393 123,649 118,374 111,439 111,229
8
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
(unaudited)
March 31, December 31, September 30, June 30, March 31,
2001 2000 2000 2000 2000
------------ ------------ ------------ ------------ ------------
ASSETS
Cash and due from banks $ 414,918 $ 421,685 $ 325,721 $ 367,626 $ 331,776
Money market investments 68,688 13,626 13,085 12,872 14,579
Securities available for sale 2,331,806 2,851,043 3,341,773 3,900,016 3,928,419
Federal Home Loan Bank of New York stock 364,345 346,770 328,732 328,732 328,732
Loans held for sale 4,747,676 2,804,767 2,363,552 2,165,150 1,504,564
Loans receivable, net:
Residential real estate loans 7,886,309 7,916,035 7,995,503 8,145,896 8,231,525
Commercial real estate loans 4,280,231 4,152,874 3,973,993 3,881,308 3,648,372
Consumer loans 3,042,698 3,050,377 2,941,984 2,817,474 2,608,209
Business loans 1,108,569 1,167,878 1,139,558 1,114,016 1,091,004
------------ ------------ ------------ ------------ ------------
Total loans receivable 16,317,807 16,287,164 16,051,038 15,958,694 15,579,110
Allowance for loan losses (147,210) (144,362) (146,655) (143,432) (142,485)
------------ ------------ ------------ ------------ ------------
Total loans receivable, net 16,170,597 16,142,802 15,904,383 15,815,262 15,436,625
------------ ------------ ------------ ------------ ------------
Premises and equipment, net 186,589 187,746 188,125 202,940 208,247
Mortgage servicing assets, net 852,703 1,021,861 980,228 946,489 943,400
Goodwill 495,010 503,320 508,928 518,352 525,548
Other assets 1,417,709 1,394,208 1,277,815 1,001,337 958,040
------------ ------------ ------------ ------------ ------------
Total assets $ 27,050,041 $ 25,687,828 $ 25,232,342 $ 25,258,776 $ 24,179,930
============ ============ ============ ============ ============
LIABILITIES
Deposits $ 14,593,669 $ 13,976,941 $ 13,903,058 $ 14,284,216 $ 14,405,595
Federal funds purchased and securities sold under
agreements to repurchase 3,063,255 3,082,322 3,260,488 3,435,582 3,603,841
Other short-term borrowings 4,831,562 4,545,199 4,640,463 4,215,379 2,767,461
Guaranteed preferred beneficial interests in Dime
Bancorp, Inc.'s junior subordinated deferrable
interest debentures 152,249 152,243 152,236 152,230 152,225
Other long-term debt 1,923,704 1,722,623 1,004,769 1,154,738 1,155,825
Other liabilities 767,509 483,661 485,158 456,408 521,577
------------ ------------ ------------ ------------ ------------
Total liabilities 25,331,948 23,962,989 23,446,172 23,698,553 22,606,524
------------ ------------ ------------ ------------ ------------
STOCKHOLDERS' EQUITY
Preferred stock -- -- 168,931 -- --
Common stock 1,203 1,203 1,203 1,203 1,203
Additional paid-in capital 1,155,348 1,153,376 1,154,827 1,168,087 1,166,543
Warrants 46,722 46,722 41,235 -- --
Retained earnings 703,640 643,838 723,572 750,748 726,015
Treasury stock, at cost (161,788) (87,225) (253,420) (259,564) (216,002)
Accumulated other comprehensive loss (20,787) (30,191) (46,733) (100,251) (89,866)
Unearned compensation (6,245) (2,884) (3,445) -- (14,487)
------------ ------------ ------------ ------------ ------------
Total stockholders' equity 1,718,093 1,724,839 1,786,170 1,560,223 1,573,406
------------ ------------ ------------ ------------ ------------
Total liabilities and stockholders' equity $ 27,050,041 $ 25,687,828 $ 25,232,342 $ 25,258,776 $ 24,179,930
============ ============ ============ ============ ============
9
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF AVERAGE FINANCIAL CONDITION
TAXABLE EQUIVALENT BASIS
(Dollars in thousands)
(unaudited)
For the Three Months Ended
----------------------------------------------------------------------------------
March 31, 2001 December 31, 2000 March 31, 2000
------------------------- -------------------------- -------------------------
Average Average Average
Average Yield/ Average Yield/ Average Yield/
ASSETS Balance Cost Balance Cost Balance Cost
----------- ---- ----------- ---- ----------- ----
Interest-earning assets:
Loans held for sale $ 3,177,268 7.74 % $ 2,449,276 8.28 % $ 1,324,593 8.17 %
Loans receivable:
Residential real estate 7,955,884 7.22 8,019,642 7.31 8,196,136 7.10
Commercial real estate 4,151,366 7.67 4,065,434 8.47 3,516,274 7.87
Consumer 3,052,144 8.22 2,998,716 8.63 2,536,935 8.39
Business 1,135,153 8.63 1,152,472 9.08 1,065,954 8.60
----------- ----------- -----------
Total loans receivable 16,294,547 7.62 16,236,264 7.97 15,315,299 7.60
----------- ----------- -----------
Securities available for sale:
Mortgage-backed securities 2,209,094 7.27 2,798,452 7.43 3,466,532 7.00
Other 455,237 7.55 473,668 7.70 391,674 7.38
----------- ----------- -----------
Total securities available for sale 2,664,331 7.32 3,272,120 7.47 3,858,206 7.04
----------- ----------- -----------
Other interest-earning assets 496,416 7.34 468,826 7.47 515,502 6.82
----------- ----------- -----------
Total interest-earning assets 22,632,562 7.59 22,426,486 7.92 21,013,600 7.51
----------- ----------- -----------
Other assets 2,941,275 2,654,614 2,462,560
----------- ----------- -----------
Total assets $25,573,837 $25,081,100 $23,476,160
=========== =========== ===========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Deposits:
Core:
Demand $ 2,438,919 0.35 $ 2,252,585 0.34 $ 2,024,915 0.35
Savings 2,233,474 2.16 2,252,810 2.15 2,371,125 2.19
Money market 3,236,423 4.21 3,202,246 4.52 3,254,423 4.07
----------- ----------- -----------
Total core 7,908,816 2.44 7,707,641 2.60 7,650,463 2.50
Time 6,253,312 5.67 6,271,704 5.66 6,580,779 5.06
----------- ----------- -----------
Total deposits 14,162,128 3.87 13,979,345 3.97 14,231,242 3.69
----------- ----------- -----------
Borrowed funds:
Federal funds purchased and securities
sold under agreements to repurchase 3,247,117 5.75 3,941,049 6.66 3,355,987 5.76
Other short-term borrowings 3,682,721 5.70 3,570,489 6.54 2,633,645 5.64
Long-term debt 2,109,453 6.94 1,343,378 7.12 1,315,485 6.78
----------- ----------- -----------
Total borrowed funds 9,039,291 6.00 8,854,916 6.69 7,305,117 5.90
----------- ----------- -----------
Total interest-bearing liabilities 23,201,419 4.70 22,834,261 5.02 21,536,359 4.44
----------- ----------- -----------
Other liabilities 641,433 473,871 407,368
Stockholders' equity 1,730,985 1,772,968 1,532,433
----------- ----------- -----------
Total liabilities and stockholders' equity $25,573,837 $25,081,100 $23,476,160
=========== =========== ===========
Interest rate spread 2.89 2.90 3.07
Net interest margin 2.78 2.81 2.96
10
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
For the Three Months Ended
-------------------------------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
2001 2000 2000 2000 2000
--------- --------- --------- --------- ---------
INTEREST INCOME
Loans held for sale $ 60,867 $ 50,865 $ 46,956 $ 36,639 $ 26,957
Residential real estate loans receivable 143,578 146,567 146,220 147,091 145,505
Commercial real estate loans receivable 79,357 86,239 82,569 75,764 69,161
Consumer loans receivable 62,214 64,876 61,147 56,696 53,059
Business loans receivable 24,216 26,292 25,540 24,012 22,862
Securities available for sale 48,224 60,425 73,156 70,750 67,702
Other interest-earning assets 9,016 8,796 8,595 8,438 8,761
--------- --------- --------- --------- ---------
Total interest income 427,472 444,060 444,183 419,390 394,007
--------- --------- --------- --------- ---------
INTEREST EXPENSE
Deposits 135,048 139,581 137,729 132,286 130,476
Borrowed funds 134,057 148,720 149,684 130,955 108,863
--------- --------- --------- --------- ---------
Total interest expense 269,105 288,301 287,413 263,241 239,339
--------- --------- --------- --------- ---------
Net interest income 158,367 155,759 156,770 156,149 154,668
Provision for loan losses 17,000 7,000 7,000 7,000 7,000
--------- --------- --------- --------- ---------
Net interest income after provision
for loan losses 141,367 148,759 149,770 149,149 147,668
--------- --------- --------- --------- ---------
NON-INTEREST INCOME
Loan servicing and production fees 82,168 75,269 73,227 71,265 66,844
Banking service fees 15,854 16,285 16,709 16,418 15,521
Securities and insurance brokerage fees 10,707 8,815 10,167 11,314 10,533
Loss upon designation for sale of
mortgage-backed securities -- -- (87,441) -- --
Net gains on sales and related activities 100,478 44,679 35,998 30,519 36,639
Other 3,804 3,957 3,797 3,891 3,644
--------- --------- --------- --------- ---------
Total non-interest income 213,011 149,005 52,457 133,407 133,181
--------- --------- --------- --------- ---------
NON-INTEREST EXPENSE
General and administrative expense:
Compensation and employee benefits 81,139 75,129 77,237 75,831 75,617
Occupancy and equipment 27,681 27,723 27,960 27,612 28,114
Other 34,076 37,137 36,772 35,643 37,553
--------- --------- --------- --------- ---------
Total general and administrative expense 142,896 139,989 141,969 139,086 141,284
Amortization and valuation adjustments of
mortgage servicing assets and related
hedging activities 62,646 38,343 32,631 31,009 29,232
Amortization of goodwill 8,310 8,496 8,329 8,371 8,346
Restructuring and other special charges -- 1,512 43,537 54,255 --
--------- --------- --------- --------- ---------
Total non-interest expense 213,852 188,340 226,466 232,721 178,862
--------- --------- --------- --------- ---------
Income (loss) before income tax expense
(benefit) and cumulative effect of a change in
accounting principle 140,526 109,424 (24,239) 49,835 101,987
Income tax expense (benefit) 48,481 37,948 (7,700) 15,392 36,714
--------- --------- --------- --------- ---------
Income (loss) before cumulative effect of a
change in accounting principle 92,045 71,476 (16,539) 34,443 65,273
Cumulative effect of a change in accounting
principle, net of tax benefit (10,521) -- -- -- --
--------- --------- --------- --------- ---------
Net income (loss) $ 81,524 $ 71,476 $ (16,539) $ 34,443 $ 65,273
========= ========= ========= ========= =========
11
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - (CONTINUED)
(In thousands, except per share data)
(unaudited)
For the Three Months Ended
------------------------------------------------------------------
March 31, Dec. 31, Sept. 30, June 30, March 31,
2001 2000 2000 2000 2000
--------- --------- --------- --------- ---------
Income (loss) applicable to common stockholders
for basic earnings (loss) per common share:
Income (loss) before cumulative effect
of a change in accounting principle $ 92,045 $ 70,115 $ (17,500) $ 34,443 $ 65,273
Net income (loss) 81,524 70,115 (17,500) 34,443 65,273
Income (loss) applicable to common stockholders
for diluted earnings (loss) per common share:
Income (loss) before cumulative effect
of a change in accounting principle 92,045 71,476 (17,500) 34,443 65,273
Net income (loss) 81,524 71,476 (17,500) 34,443 65,273
PER COMMON SHARE
Basic earnings (loss):
Income (loss) before cumulative effect
of a change in accounting principle $ 0.80 $ 0.65 $ (0.16) $ 0.31 $ 0.59
Net income (loss) 0.71 0.65 (0.16) 0.31 0.59
Diluted earnings (loss):
Income (loss) before cumulative effect
of a change in accounting principle 0.76 0.58 (0.16) 0.31 0.59
Net income (loss) 0.67 0.58 (0.16) 0.31 0.59
Cash dividends declared 0.10 0.10 0.08 0.08 0.06
AVERAGE COMMON SHARES OUTSTANDING
Basic 115,629 107,092 109,323 110,293 110,537
Diluted 121,393 123,649 109,323 111,439 111,229