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Exhibit 99.2
Dime Bancorp, Inc. [DIME LOGO]
Acquisition of
North American Mortgage Company [NORTH AMERICAN
MORTGAGE COMPANY LOGO]
June 23, 1997
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FORWARD LOOKING INFORMATION
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This presentation contains estimates of future operating results for both Dime
Bancorp, Inc. ("Dime") and North American Mortgage Company ("North American") on
a stand-alone and pro forma combined basis and estimates of financial condition
and cost savings on a combined basis. These estimates constitute forward-looking
statements (within the meaning of the Private Securities Litigation Reform Act
of 1996), which involve significant risks and uncertainties. Actual results may
differ materially from the results discussed in these forward-looking
statements. Factors that might cause such a difference include, but are not
limited to, the following: (1) expected cost savings from the acquisition may
not be fully realized or realized within the expected time frame; (2) revenues
following the proposed acquisition may be lower than expected; (3) costs or
difficulties related to the integration of the businesses of Dime and North
American may be greater than expected; (4) changes in the interest rate
environment may reduce interest margins; and (5) general economic conditions,
either nationally or in the states in which the combined company will be
concentrated, may be less favorable than expected. Further information which
could affect the financial results of Dime after the proposed merger is
discussed in Dime's Reports on Form 10-K for the period ended December 31, 1996
and Form 10-Q for the period ended March 31, 1997 and Forms 8-K as of April 23,
1997, April 25, 1997, May 9, 1997 and June 16, 1997, as filed with the
Securities and Exchange Commission, to which reports reference is hereby made.
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TRANSACTION SUMMARY
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* Status: Definitive agreement signed
* Acquired Company: North American Mortgage Company (NYSE:NAC)
- Headquartered in Santa Rosa, CA;
- 107 offices servicing 31 states
- $9.5 billion loan production in 1996
- $12.5 billion servicing portfolio at 3/31/97
* Consideration: 100% common stock
* Fixed Exchange Ratio: 1.37x DME shares per NAC share
* Implied Value per NAC share:(a) $26.03
* Total Value: $374 million(b)
* Caps/Collars: none
* Accounting/Tax Treatment: Purchase/tax-free exchange
* Estimated Closing: 4th quarter 1997
* Termination Fee: $15.0 million
* Proposed Share-buyback: 6.9 million shares (approx. 35% of shares to be issued)
* Walkaway Provision: two-step test (down 20% in absolute and versus index)
(a) Based on Dime's closing stock price of $19.00 on 6/20/97.
(b) Value of North American shares and options at Exchange Ratio
less cash-in value of the options
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VALUATION PARAMETERS
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Premium to Market (30 day average) 27.2%
Price to 1997 EPS (IBES) 10.0x
Price to 1998 EPS (IBES) 8.4x
Price to 3/31/97 Stated Book Value 1.79x
Price based on 1.37 Exchange Ratio and Dime stock price based on
June 20, 1997 close of $19.00.
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FINANCIAL HIGHLIGHTS
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* Immediately Accretive to Earnings Per Share
1998 1999
---- ----
GAAP REPORTED EPS 2.0% 7.3%
CASH EPS 7.4% 12.0%
* Increases fee income to 45% of Dime's revenue(a)
* Purchase accounting maximizes capital flexibility
- Share repurchase program of up to 6.9 million shares
- Capital ratios remain strong
(a) Based on 1998 projections.
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DIME'S CORPORATE STRATEGY
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MORTGAGE BANKING CONSUMER FINANCIAL SERVICES
Originations/Servicing Deposits/Insurance/
Securities Brokerage
* SUPER-COMMUNITY BANK IN
GREATER NY AREA
* HIGH PERFORMANCE MORTGAGE
BANKING AND CONSUMER FINANCIAL
SERVICES IN SELECT MARKETS
COMMERCIAL REAL ESTATE BUSINESS BANKING CONSUMER LENDING
Multifamily/Commercial Deposits/Services/Lending Home Equity/Personal
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DIME'S MORTGAGE BANKING STRATEGY
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GOAL: DEVELOP A HIGH-PERFORMING MORTGAGE BANKING BUSINESS
* Manage originations and servicing to:
- produce quality loans for Dime portfolio
- generate fee income from production and servicing
* Build an origination network that is:
- geographically diverse
- multi-channel/multi-product
- a low cost producer
* Run a "best practices" servicing platform
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NORTH AMERICAN MORTGAGE COMPANY
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* Nationwide origination franchise
* $9.5 billion in total originations in 1996
* Balanced national originator
- 60/40 - Wholesale/Retail
* Experienced high quality management and "field" professionals
* Strong technology infrastructure
* Innovative business expansion: telemarketing, affinity lending, insurance
* Growing sub-prime lending business without significant credit risk
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NORTH AMERICAN'S ORIGINATION
COMPOSITION
LOAN PRODUCTION BY STATE
California 32.3%
Other 30.2%
Texas 6.8%
Minnesota 5.1%
Florida 4.6%
Arizona 4.3%
Virginia 3.5%
Massachusetts 3.4%
Ohio 3.3%
Oregon 3.3%
Colorado 3.3%
LOAN PRODUCTION BY SOURCE
Wholesale 57.6%
Retail 36.9%
Telemarketing 5.5%
Source: North American Mortgage Company's 10-K for the period ended December 31,
1996.
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DUE DILIGENCE REVIEW
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-- Extensive effort led by functional team leaders
- Finance/Audit/Legal
- Production
- Servicing
- Credit
- Human Resources
- 54 staff on site in Santa Rosa
- 88+ man weeks
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COMPLEMENTARY BUSINESS MIX
DIME NORTH COMBINED
AMERICAN
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GEOGRAPHICALLY DIVERSE X X
MULTI-CHANNEL
Retail X X X
Broker X X X
Correspondent X X
MULTI-PRODUCT
Conforming X X X
Jumbo X X X
FHA/VA X X X
Sub-prime X X
PRODUCT OUTLET
Third Party Investors X X X
Dime Portfolio X X
TOP 10 IN ORIGINATIONS X
CRITICAL MASS IN SERVICING X
COST EFFECTIVE INTEGRATED TECHNOLOGY
Originations X X
Servicing X X X
Mortgage Bank Infrastructure X X
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COMBINED MORTGAGE AND SATELLITES FRANCHISE
Offices by State
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[MAP OF UNITED STATES]
Alabama
Arizona (11)
Arkansas
California (39)
Colorado (4)
Connecticut (1)
Delaware (1)
Florida (7)
Georgia (11)
Hawaii (3)
Idaho (3)
Illinois (8)
Indiana (1)
Iowa
Kansas (2)
Kentucky
Louisiana (3)
Maine (1)
Maryland (11)
Massachusetts (9)
Michigan (7)
Minnesota (4)
Mississippi
Missouri (3)
Montana
Nebraska
Nevada (9)
New Hampshire (1)
New Jersey (2)
New Mexico (9)
New York (2)
North Carolina (1)
North Dakota
Ohio (4)
Oklahoma
Oregon (7)
Pennsylvania (5)
Rhode Island (1)
South Carolina
South Dakota
Texas (12)
Tennessee (1)
Utah (1)
Vermont
Virginia (11)
Washington (7)
West Virginia
Wisconsin (2)
Wyoming
Dime Stand Alone Offices: 32. Pro Forma Offices and Satellites: (204).
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Top Tier Mortgage Business
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NORTH DIME
AMERICAN MORTGAGE COMBINED
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Total Originations (1Q 97) $2.0 b $0.5 b $2.5 b
Rank #11 not ranked #10
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Retail Originations (1Q 97) $0.9 b $0.2 b $1.1 b
Rank #12 not ranked #8
% of total originations 45% 28% 41%
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Servicing Portfolio (3/31/97) $12.5 b $17.5 b $30.0 b
Rank not ranked #30 #21
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Source: Inside Mortgage Finance.
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RANKING
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MORTGAGE ORIGINATORS
LTM MARKET
RANK ORIGINATOR VOLUME SHARE
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1 Norwest Mortgage $50.17 6.3%
2 Countrywide Home Loans 37.18 4.7
3 Chase Manhattan Mortgage Holdings 36.36 4.6
4 HomeSide Lending 21.36 2.7
5 Washington Mutual(c) 19.11 2.4
6 Fleet Mortgage Group 17.33 2.2
7 BankAmerica 14.64 1.8
8 NationsBanc & Affiliates 11.97 1.5
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DIME BANCORP,INC. PRO FORMA(d) 11.75 1.5
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9 Standard Federal Bank 10.52 1.3
10 FT Mortgage Companies 9.21 1.2
11 Resource Bancshares Mtg. 9.05 1.1
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12 NORTH AMERICAN MORTGAGE 9.02 1.1
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13 PHH Mortgage Services 7.95 1.0
14 Golden West Financial 6.72 0.8
15 GE Capital Mortgage Services 6.11 0.8
16 Flagstar Bank 6.05 0.8
17 Principal Residential Mortgage 5.96 0.8
18 PNC Mortgage Corp 5.46 0.7
19 Accubanc Mortgage 5.24 0.7
20 First Union Mortgage 5.01 0.6
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DIME BANCORP, INC. $2.73 0.3
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Total Mortgage Originations (est.) $793.91
(c) Washington Mutual pro forma for the pending acquisition of Great Western
Financial.
(d) Dime Bancorp, Inc. pro forma for North American Mortgage Company's LTM
originations.
Source: Inside Mortgage Finance & Origination News
MORTGAGE SERVICERS
PORTFOLIO MARKET
RANK SERVICER SIZE SHARE
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1 Norwest Mortgage $184.55 4.7%
2 Chase & Affiliates 160.50 4.1
3 Countrywide Home Loans 155.50 3.9
4 Fleet Mortgage Group 119.63 3.0
5 NationsBanc & Affiliates 118.67 3.0
6 GE Capital Mortgage Corp. 104.62 2.7
7 Washington Mutual(a) 89.72 2.3
8 Homeside Lending 89.45 2.3
9 BankAmerica 87.72 2.2
10 Mellon Mortgage 63.31 1.6
11 First Nationwide Mortgage Corp. 58.49 1.5
12 GMAC Mortgage Group 53.80 1.4
13 First Union Mortgage Corp. 51.56 1.3
14 H.F. Ahmanson & Co. 48.13 1.2
15 PNC Mortgage Corp 40.90 1.0
16 Capstead Mortgage 38.82 1.0
17 Citicorp Mortgage Inc. & Affiliates 38.70 1.0
18 Wells Fargo Bank 36.15 0.9
19 Prudential Insurance Co. of America 31.80 0.8
20 Golden West Fin. Corp 30.95 0.8
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21 DIME BANCORP, INC. PRO FORMA(b) 30.04 0.8
30 DIME BANCORP, INC. 17.54 0.4
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1-4 Family Mortgages Outstanding (est.) $3,940.54
(a) Washington Mutual pro forma for the pending acquisition of Great Western
Financial.
(b) Dime Bancorp, Inc. pro forma for North American Mortgage Company's servicing
portfolio of $12.5 billion at March 31, 1997.
Source: Inside Mortgage Finance
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FINANCIAL HIGHLIGHTS
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* Accretion to be achieved through:
- Estimated cost savings of $18.8 million, pre-tax
- Scale benefits in servicing and production
- Enhanced spread income
- Improved utilization of escrow balances
- Lower funding costs
* One time restructuring charge of $31.1 million, after-tax
- - Includes $19.4 million in capitalized charges and $11.7 million in current
expenses.
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ATTRACTIVE EPS ACCRETION
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($ in millions, except per share data)
1997P 1998P 1999P
----- ----- -----
Dime Estimated Net Income(a) $133.6 $155.2 $173.9
North American Estimated Net Income(b) 4.3 26.2 35.1
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Total Estimated Net Income 137.9 181.4 209.0
Cost Savings and Revenue Enhancements 1.8 15.2 21.4
Hedge Costs (0.9) (5.2) (7.4)
Incremental Amortization (2.5) (10.2) (10.2)
Cost of Buyback (1.0) (4.0) (4.0)
Non-Recurring Charge (11.7) -- --
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Pro Forma Net Income $123.6(c) $177.2 $208.8
135.0(d)
Stand Alone EPS(a) $1.26 $1.46 $1.64
Pro Forma EPS 1.13(c) 1.49 1.75
1.24(d)
% Accretion/(Dilution) (1.4)%(b) 2.0% 7.3%
% EPS Growth -- 20.2 17.5
% Cash EPS Accretion/(Dilution) 5.4 7.4 12.0
(a) Based upon IBES estimates.
(b) Dime Bancorp estimates.
(c) Includes $11.7 m in after-tax non-recurring charge.
(d) Excludes $11.7 m in after-tax non-recurring charge.
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SYNERGIES AND REVENUE
ENHANCEMENTS
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1998P(a) 1999P(a)
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Cost Savings
Administration $7.1 $7.6
Servicing 3.6 5.0
Revenue Enhancements
Funding Benefits 3.0 3.7
Additional Portfolio NII 1.5 5.1
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Total $15.2 $21.4
(a) after-tax dollars in millions
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FINANCIAL IMPACT TO DIME
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PROJECTED
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PRO FORMA WITH NORTH AMERICAN
1ST QUARTER -------------------------------------
DIME 3/31 1997P 1998P 1999P
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Return on Average Assets 0.69% 0.69% 0.77% 0.82%
Return on Average Common Equity 12.7 12.4 12.6 13.1
Cash Return on Avg. Tang. Common Eq. 12.9 14.9 15.7 15.7
Fee Income/Revenue 19.1 28.7 45.5 45.9
Tangible Common Equity/Assets 5.66(b) 5.20 5.37 5.80
Bank Leverage Capital 6.32(b) 6.00 5.75 6.05
Double Leverage 111.3(b) 113.0 106.2 103.8
Tangible Book Value per Share $9.92(b) $9.71 $11.24 $13.16
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(a) Income statement figures exclude effect of one-time charge.
(b) Pro Forma adjusted for BFS and Stock Buyback: Tangible Common
Equity/Assets of 5.14%, Bank Leverage Capital of 6.11%, Double Leverage of
114.7% and F.D. Tangible Book Value per Share of $9.27.
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MORTGAGE BANK CORPORATE STRUCTURE
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Ownership: Wholly-owned Subsidiary of Dime Savings Bank
Operating Name: North American nationally, Dime in selected markets
Headquarters: Tampa, FL
Management: Fred Koons - Chairman/Chief Executive Officer
Terry Hodel - Vice Chairman
Rich Mirro - President/Chief Operating Officer
Origination: 107 offices serving 31 states
Servicing Center: Albion, New York
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STRATEGIC BUSINESS HIGHLIGHTS
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* Accelerates positioning of Dime's mortgage banking business
- National presence
- Balanced multi-product/multi-channel capability
- Experienced mortgage banking management team
- Economies of scale in origination and servicing
- Balanced weighting of originations and servicing
- Profitable sub-prime lending without significant credit risk
* Enhances opportunities in related business (e.g. insurance, HELOC)
* Adds effective technology: highly integrated servicing, production
and management information systems.
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SUMMARY
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- - Acquisition consistent with stated strategy
- - Strengthens key business
- - Improves risk profile
- - Accelerates transition to consumer bank
- - Accretive to both reported EPS and cash EPS
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