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OFFICE OF THRIFT SUPERVISION APPROVES DIME SAVINGS BANK CAPITAL PLAN

 NEW YORK, Jan. 4 /PRNewswire/ -- The Dime Savings Bank of New York, FSB (NYSE: DME) today announced that the Office of Thrift Supervision (OTS), the bank's primary federal regulator, has approved its revised capital plan.
 The revised plan, submitted to the OTS on Dec. 18, 1992, calls for The Dime to achieve leverage and risk-based capital ratios of 5.0 percent and 8.0 percent, respectively, by June 30, 1993. The Dime had recently announced that the OTS had reduced the risk-based requirement at June 30, 1993, from 9.0 percent to 8.0 percent. The plan also specifies that the bank increase its risk-based capital to 9.0 percent by year-end 1993 and to 10 percent by the end of 1994.
 The capital ratios called for by the plan are to be achieved principally by means of branch sales, continued reduction in non- performing assets, reduction of non-interest expenses and the infusion of approximately $125 million of additional equity.
 Commenting on the approval, Richard D. Parsons, chairman and chief executive officer of the Dime, said, "I am extremely pleased that our plan has been approved. While continuing to hold us to high capital standards, our regulators have shown flexibility in the timing and tactics for achieving these goals. This approval now sets the stage for completion of the final phase of our program to return the bank to full fiscal health."
 The plan calls for The Dime to sell those branches located outside its core franchise area. The Dime has executed a letter of intent to sell its Albany/Utica, N.Y., branches and has entered into a definitive agreement to sell its Buffalo, N.Y., branches. The sale of branches and other actions are expected to reduce The Dime's total assets to approximately $7.5 billion by June 30, 1993, as compared to $9.4 billion at Sept. 30, 1992.
 Commenting on the equity infusion projected under the plan, Mr. Parsons said, "Infusion of a significant amount of new equity is a key part of our capital plan, and we are exploring a variety of options to achieve it. We do not rule out any options at this time, although our preference is for a structure that would allow preservation of our existing tax NOLs, since this will significantly improve our ability to add capital earnings in the future."
 Mr. Parsons added, "This plan is not an easy one. It imposes sacrifices on all of The Dime constituencies and reflects hard choices. Nevertheless, we and our advisors believe it is the most feasible way to meet the capital goals that have been set for us under the regulations. The branch sales and other downsizing and expense reduction initiatives will produce short-term restructuring charges that will affect the income statement, but we believe that they will ultimately result in a leaner and more focused institution, well-positioned to compete in the future."
 OTS approval of The Dime's revised capital plan is subject to certain implementing actions on the part of The Dime's board of directors which are expected to be taken in January 1993.
 Mr. Parsons pointed out that the bank earned $25.4 million, or $1.10 per share, in the first nine months of 1992, compared with a loss of $40.1 million, or $1.37 per share, in the same period in 1991. Additionally, non-performing assets declined for the fourth consecutive quarter to $1.01 billion at Sept. 30, 1992, a reduction of $66.7 million since year-end 1991.
 Founded in 1859, The Dime is the largest thrift institution in the east and operates retail banking offices in New York and New Jersey.
 -0- 1/4/92
 /CONTACT: David J. Totaro, 212-326-6965, or Richard Terzian, 212-326-6915 or 212-326-6170, both of Dime Savings Bank of New York, or Idan Sims of Sims, & Associates, Inc., 212-725-3838, for Dime Savings Bank of New York/
 (DME)


CO: The Dime Savings Bank of New York ST: New York IN: FIN SU:

CK-AH -- NY023 -- 1242 01/04/93 10:39 EST
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Date:Jan 4, 1993
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