DIME BANCORP REPORTS THIRD QUARTER EARNINGS.NEW YORK--(BUSINESS WIRE)--October 30, 1995--Dime Bancorp, Inc. (NYSE NYSE See: New York Stock Exchange : DME (Distributed Management Environment) A network monitoring and control protocol defined by the Open Software Foundation (now The Open Group). DME was not widely used. DME - Distributed Management Environment ), parent company of The Dime Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , FSB (FrontSide Bus) See system bus. FSB - front side bus , today reported net income of $19.5 million, or $0.18 per common share, for the third quarter of 1995, as compared with net income of $37.2 million, or $0.35 per common share, in the comparable prior year quarter. The 1994 results included the recognition of deferred tax assets and other income tax adjustments, which increased net income by $15.9 million, or $0.15 per common share. Net income for the first nine months of 1995 was $59.9 million, or $0.55 per common share, as compared with net income of $11.8 million, or $0.11 per common share, for the first nine months of 1994. The 1994 results included a charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a change in the accounting for goodwill of $92.9 million and the recognition of deferred tax assets and other income tax adjustments that increased net income by $52.9 million. The prior year data reflects the combined restated results of Dime and Anchor anchor, device cast overboard to secure a ship, boat, or other floating object by means of weight, friction, or hooks called flukes. In ancient times an anchor was often merely a large stone, a bag or basket of stones, a bag of sand, or, as with the Egyptians, a Bancorp, Inc., which merged on January January: see month. 13, 1995. Commenting on the results, Mr. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. M. Large, Jr., Chairman and Chief Executive Officer, said, "The relatively flat yield curve Flat Yield Curve A chart that shows that the yields of bonds with short maturities are equal to the yields of bonds with longer maturities. and an acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. on mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. continued to cause downward pressure on our net interest margin and a reduction in net interest income." Mr. Large said that the net interest margin averaged 2.02% for the 1995 third quarter, down 7 basis points from the previous quarter and down 14 basis points from the first quarter. He added that net interest margins would continue to experience pressure if the current interest rate environment persisted. "We have been pleased by many aspects of our performance. The quarter was marked by significant progress in completing the Dime-Anchor consolidation and in building our franchise for the future, as evidenced by our lower general and administrative expense and increased residential loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ," said Mr. Large. "General and administrative expense was reduced to $64.0 million, down $11.0 million from the 1995 second quarter," he stated. Mr. Large noted that, while a reduction in FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insurance premiums accounted for $4.4 million of the decline, there was also an aggregate $6.6 million, or 9.8%, reduction in the other components of general and administrative expense. "During the just-ended quarter, we completed the consolidation of mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. operations into our upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. facility, and shortly after the quarter's end, we completed the conversion of one half of our branches to our new retail banking computer system. Both of these actions will result in future cost reductions," said Mr. Large. Mr. Large noted that, for the 1995 third quarter, the ratio of general and administrative expense to total assets was 1.25%, and the efficiency ratio was 54.37%. "We are clearly well on our way to achieving the $50 million in annual cost savings related to the merger," he stated. "In addition, the lending power of the "new" Dime franchise is increasingly evident. Residential loan production increased to $555 million in the 1995 third quarter, up 67% from the previous quarter and up 71% from the third quarter of 1994. Going forward, our retail loan production will be augmented by the recently acquired National Mortgage and the planned acquisition of James Madison Madison, cities, United States Madison. 1 City (1990 pop. 12,006), seat of Jefferson co., SE Ind., on the Ohio River; settled c.1806, inc. 1838. It is a port of entry and a tobacco marketing center. Mortgage," commented Mr. Large. He noted that the two companies together were expected to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. upwards of $1 billion in residential loans in 1995. The level of Dime's non-performing assets, which consist of nonaccrual loans and other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most , also improved, dropping to $342.3 million at September September: see month. 30, 1995, down $22.0 million from the June June: see month. 30, 1995 level and down $70.5 million from the level at December December: see month. 31, 1994. Non-performing assets were 1.71% of total assets and the allowance for loan losses represented 51.7% of nonaccrual loans at September 30, 1995. Mr. Large said that, during the quarter, the Bank continued to resolve problem assets and that charge-offs were in line with prior expectations. He added that, while continued progress in this area is expected, it is dependent on general economic conditions, including the real estate market and interest rate environment. Net interest income in the three months ended September 30, 1995 amounted to $96.9 million, down $5.3 million from the second quarter of 1995. The decline was due, in large part, to the relatively flat yield curve and the decline in long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. interest rates. This also negatively affected the net interest margin, as high prepayment speeds Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. accelerated the amortization of premiums associated with the mortgage-backed securities portfolio. Without this rise in prepayment speeds, the net interest margin would have increased quarter to quarter despite the relatively flat yield curve. Net gains on sales activities were $0.4 million for the third quarter of 1995, as compared with $0.7 million in the preceding quarter. During the 1995 third quarter, Dime adopted SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 122, retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a to January 1, 1995, which now requires recognition of the value of mortgage servicing rights on mortgage loans originated and sold. This resulted in a gain of $2.2 million, which was largely offset by a $2.0 million revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of certain investment-grade investment-grade Of, relating to, or being a bond suitable for purchase by institutions under the prudent man rule. Investment-grade is restricted to those bonds graded BBB and above by Standard & Poor's and graded Baa3 and above by Moody's. mortgage-backed securities prompted by eroding credit enhancements Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing . At September 30, 1995, Dime had $20.0 billion of assets, $12.6 billion of deposits, and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $973.0 million. The Bank maintained its "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. classification as its leverage capital ratio was 5.31% at September 30, 1995 and risk-based ratios were well above requirements. Dime is the largest thrift thrift: see leadwort. in the greater New York/northern New Jersey metropolitan area and the fifth largest publicly-traded thrift in the nation. -0- CONTACT: Franklin Franklin, cities, United States Franklin. 1 City (1990 pop. 12,907), seat of Johnson co., S central Ind., inc. 1823. It is a farm trade center. Manufactures include auto parts, aluminum doors and windows, and copper panels. L. Wright (212) 326-6170 or McDonough McDonough is the name of several places in the United States:
(212) 334-0033 -0-
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF FINANCIAL CONDITION
Sept. 30, Dec. 31,
(unaudited) 1995 1994
(In thousands)
ASSETS
Cash and due from banks $150,173 $178,984
Money market investments 7,862 28,173
Loans held for sale 90,096 16,621
Securities available for sale 525,139 530,714
Investment securities held to maturity 126,548 140,928
Federal Home Loan Bank of
New York stock 286,872 265,586
Mortgage-backed securities
held to maturity 8,637,612 8,468,969
Loans receivable, net:
First mortgage loans 7,563,993 7,336,218
Cooperative apartment loans 1,206,287 1,175,118
Consumer and business loans 794,331 806,410
Allowance for loan losses (141,701) (167,349)
Total loans receivable, net 9,422,910 9,150,397
Other real estate owned, net 67,990 104,844
Accrued interest receivable 116,941 105,529
Premises and equipment, net 113,601 119,099
Capitalized excess servicing 34,567 40,976
Mortgage servicing rights 66,780 62,541
Deferred tax asset, net 225,944 271,736
Other assets 145,855 162,840
Total assets $20,018,890 $19,647,937
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $12,649,015 $12,811,269
Federal Home Loan Bank of
New York advances 4,055,225 5,319,271
Securities sold under agreements
to repurchase 1,777,265 9,741
Senior notes 197,381 197,200
Other borrowed funds 213,171 232,522
Other liabilities 153,866 172,809
Total liabilities 19,045,923 18,742,812
Stockholders' equity:
Common stock 997 986
Additional paid-in capital 914,899 910,036
Common stock deferred incentive shares - 2,994
Retained earnings 63,648 3,796
Net unrealized loss on
securities available for sale,
net of related income taxes (6,398) (12,612)
Unearned compensation (179) (75)
Total stockholders' equity 972,967 905,125
Total liabilities and
stockholders' equity $20,018,890 $19,647,937
-0-
DIME BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF OPERATIONS
For the three months
(unaudited) ended Sept. 30,
(In thousands except per share data) 1995 1994
Interest income $336,983 $299,545 Interest expense 240,037 185,766
Net interest income 96,946 113,779
Provision for loan losses 9,900 11,468
Net interest income after
provision for loan losses 87,046 102,311
Non-interest income:
Loan servicing fees, net 8,825 6,958
Securities and insurance
brokerage fees 3,887 3,971
Net gains on sales activities 424 365
Banking service fees and other 7,771 7,660
Total non-interest income 20,907 18,954
Non-interest expense:
General and administrative:
Compensation and
employee benefits 29,057 34,862
Occupancy and equipment, net 13,396 14,121
Federal deposit insurance premiums 3,268 7,448
Other 18,317 16,199
Total general and
administrative expense 64,038 72,630
Other real estate owned expense, net 3,401 3,347
Amortization of mortgage servicing rights 3,459 1,993
Restructuring and merger-related expense 2,393 2,330
Total non-interest expense 73,291 80,300
Minority interest- preferred stock dividend of subsidiary - 2,625 Income before income tax provision 34,662 38,340 Income tax provision (15,208) (1,093) Net income $19,454 $37,247 Primary and fully diluted earnings per common share:
Net income $0.18 $0.35
Primary average common shares outstanding 109,943 107,788 Fully diluted average common shares outstanding 110,064 107,789
For the nine months
(unaudited) ended Sept. 30,
(In thousands except per share data) 1995 1994
Interest income $1,010,100 $820,382 Interest expense 703,491 500,207
Net interest income 306,609 320,175
Provision for loan losses 29,750 30,659
Net interest income after
provision for loan losses 276,859 289,516
Non-interest income:
Loan servicing fees, net 26,099 20,131
Securities and insurance
brokerage fees 11,602 13,297
Net gains on sales activities 10,506 1,344
Banking service fees and other 23,910 23,001
Total non-interest income 72,117 57,773
Non-interest expense:
General and administrative:
Compensation and
employee benefits 100,022 101,383
Occupancy and equipment, net 43,849 40,688
Federal deposit insurance premiums 18,673 23,126
Other 55,451 50,247
Total general and
administrative expense 217,995 215,444
Other real estate owned expense, net 10,417 12,582
Amortization of mortgage servicing rights 9,125 6,775
Restructuring and merger-related expense 5,556 2,330
Total non-interest expense 243,093 237,131
Minority interest- preferred stock dividend of subsidiary - 7,875 Income before income tax (provision) benefit and cumulative effect of a change in accounting principle 105,883 102,283 Income tax (provision) benefit (46,031) 2,397 Income before cumulative effect of a change in accounting principle 59,852 104,680 Cumulative effect of a change in accounting principle for goodwill - (92,887) Net income $59,852 $11,793
Primary and fully diluted earnings
per common share:
Income before cumulative effect
of a change in accounting principle $0.55 $0.97
Cumulative effect of a change
in accounting principle - (0.86)
Net income $0.55 $0.11
Primary average common shares outstanding 109,660 107,657 Fully diluted average common shares outstanding 109,810 107,758 -0-
DIME BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(unaudited) For the three months (Dollars in thousands ended Sept. 30, except per share data) 1995 1994 Performance Ratios: (1) Interest rate spread 1.93% 2.37% Net interest margin 2.02% 2.45% General and administrative expense as a percentage of average assets 1.25% 1.49% Return on average assets 0.38% 0.76% Return on average stockholders' equity 8.12% 16.97% Average Balances: Interest-earning assets $19,715,672 $18,821,713 Interest-bearing liabilities $19,328,339 $18,416,640 Total assets $20,440,263 $19,511,441 Stockholders' equity $958,665 $877,976
For the nine months
ended Sept. 30,
1995 1994
Performance Ratios: (1) Interest rate spread 2.00% 2.31% Net interest margin 2.09% 2.39% General and administrative expense as a percentage of average assets 1.42% 1.56% Return on average assets 0.39% 0.09% Return on average stockholders' equity 8.52% 1.85% Average Balances: Interest-earning assets $19,680,816 $17,780,722 Interest-bearing liabilities $19,314,278 $17,378,264 Total assets $20,404,321 $18,423,635 Stockholders' equity $936,240 $847,694
At At
Sept. 30, Dec. 31,
1995 1994
Regulatory Capital Ratios: Tangible 5.31% 4.98% Leverage 5.31% 5.00% Risk-based 12.36% 11.41% Tier 1 risk-based 11.10% 10.34% Book value per common share (2) $9.00 $8.43 Asset Quality: (3) Total non-accrual loans and other real estate owned, net $342,291 $412,832 Non-accrual loans and other real estate owned, net, as a percentage of total assets 1.71% 2.10% Allowance for loan losses as a percentage of non-accrual loans 51.66% 54.34% Financial Condition and Other Data: Interest-earning assets $19,238,740 $18,768,737 Interest-bearing liabilities $18,892,057 $18,570,003 Loans serviced for others $9,527,470 $8,713,047 (1) Ratios have been annualized. (2) Assumes the warrants issued to the Federal Deposit Insurance Corporation to acquire 8.4 million shares of Dime Bancorp, Inc. common stock at $.01 per share were exercised. (3) At September 30, 1995, in accordance with Statement of Financial Accounting Standards No. 114 which The Dime adopted effective January 1, 1995, in-substance foreclosed loans were reported as loans. Prior to January 1, 1995, in- substance foreclosed loans were reported as other real estate owned. CONTACT: Franklin L. Wright (212) 326-6170 or McDonough & Associates (212) 334-0033 |
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