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DIME SAVINGS BANK REPORTS 1991 FOURTH QUARTER RESULTS

       DIME SAVINGS BANK REPORTS 1991 FOURTH QUARTER RESULTS
    NEW YORK, March 30 /PRNewswire/ -- The Dime Savings Bank of New York, FSB (NYSE: DME) today reported a fourth quarter 1991 loss of $197.3 million, or $8.54 per share compared with a 1990 fourth quarter loss of $12.6 million, or $0.55 per share.
    Four the year 1991, the Dime reported a loss of $237.4 million, or $10.27 per share, compared with a loss of $135.7 million, or $5.94 per share, for 1990.
    The 1991 loss was principally the result of a $306.7 million provision of $195.4 million.  As a result of the 1991 provision, the allowance for loan losses was $291.6 million at Dec. 31, 1991.  The fourth quarter provision of $203.7 million resulted from a thorough management review, as part of the normal periodic analysis of the adequacy of the allowance for loan losses, of the impact of the deteriorating economic conditions in the Northeast during 1991 on the bank's entire loan portfolio.  The bank's analysis and the resulting loan loss provision assumed no significant improvement for the next several years in the economy or in the real estate markets in which the bank operates.
    The bank's review was conducted in conjunction with regular periodic examinations of the bank by the Office of Thrift Supervision, the bank's primary regulator, and the Federal Deposit Insurance Corporation.  The examinations have been completed as they relate to the bank's allowance for loan losses at year end.
    As a result of the 1991 loss, the bank's OTS risk-based capital ratio fell further below the regulatory minimum and the bank's leverage capital ratio was below the minimum regulatory requirement.  The Dime remained in compliance with the OTS tangible capital requirement.
    In commenting on the bank's results, Richard D. Parsons, chairman and chief executive officer, said, "The continuing slide in the regional economy and real estate markets took a further toll on our residential and commercial real estate portfolios as the adverse impact of the deterioration in real estate values was greater than we, as well as most observers, anticipated."
    Parsons went on to state:  "In making this large provision, we believe we have captured the full extent of potential losses in the bank's portfolio of non-performing and performing loans.  Therefore, we expect significantly lower loan loss provisions going forward,  Given that our losses in recent years have been primarily the result of making extraordinary provisions for loan losses with respect to these portfolios -- rather than from a lack of operating earnings -- this should enable the Dime to return to profitability in 1992."
    "It is significant that the bank's net interest margin improved sharply in 1991, rising to over 3 percent at year-end 1991, compared with 2.19 percent at year-end 1990.  This margin, together with significant fee-based earnings, enabled the bank to generate strong operating earnings before the loan loss provision.
    The bank said that in addition to a lower loan loss provision, 1992 results would reflect savings in operating expenses from its recently announced staff reduction.  The elimination of 400 positions, a 17 percent reduction in staffing levels, should result in annual savings in excess of $10 million.  The bank said it is also working to reduce other costs, particularly occupancy costs, to generate additional savings in 1992.
    The bank also reported that non-performing assets declined in the fourth quarter of 1991.  Parsons noted, "Non-performing assets, after increasing by $90 million to $100 million per quarter during 1990 and in the first quarter of 1991, showed significantly slower growth beginning in mid-year and there was actually a small decline in the fourth quarter.  While it is difficult to accurately predict quarterly changes given the continued depressed real estate markets, I believe that we will see a further decline in problem loans by the end of 1992."
    The bank's OTS tangible capital ratio at year end was 2.27 percent compared with an OTS minimum of 1.5 percent.  Its leverage capital ratio was 2.35 percent, compared with a minimum of 3.00 percent, and its risk- based capital ration was 4.46 percent, compared with the OTS requirement of 7.20 percent.  The bank said that it would shortly file with the OTS a capital plan to achieve required capital levels.
    At Dec. 31, 1991, the Dime had assets of $9.9 billion and deposits of $8.2 billion.  The bank operates 46 banking offices in New York State and through its subsidiary, the Dime Savings Bank of New Jersey, eight banking offices in central New Jersey.
                 THE DIME SAVINGS BANK OF NEW YORK, FSB
              Selected Consolidated Financial Information
                      Statement of Condition Data
                         (Dollars in thousands)
      At Dec. 31                      1991                1990
    Total assets                  $9,898,094         $10,841,836
    Money market investments         114,386              93,576
    United States Government and
     Federal agency securities       226,135              64,171
    Other investment securities,
     net                             428,886             447,390
    Total loans, net               8,374,815           9,495,253
    Home mortgage loans            6,483,604        1?19,714
    Cooperative apartment loans      900,498           1,169,818
    Commercial real estate loans     709,192             781,785
    Multifamily property loans       472,213             509,533
    Consumer & business loans        100,946             112,374
    Allowance for loan losses        291,638             197,971
    Allowance for loan losses to
     total loans (in percents)          3.37                2.04
    Allowance for loan losses to
     non-performing loans
     (in percents)                     34.65               25.61
    Total non-performing assets   $1,101,388            $952,723
    Non-performing assets to
     total assets (in percents)        11.13                8.79
    Other real estate owned, net    $285,182            $178,193
    Goodwill                          32,825              35,055
    Total deposits                 8,238,865           8,831,889
    Borrowed funds                 1,306,364           1,448,764
    Stockholders' equity             256,928             486,950
    Book value per share              $11.11              $21.12
                   THE DIME SAVINGS BANK OF NEW YORK, FSB
                 Selected Consolidated Financial Information
                     Non-performing assets and key ratios
                            (Dollars in thousands)
    Non-performing assets:  12/31/91    9/30/91     6/30/91    3/31/91
    Residential property:
     Non-performing loans   $669,638   $681,532    $684,364   $661,110
     Other real estate
     owned, net              187,551    183,768     166,270    152,104
    Total residential property
     non-performing assets   857,090    885,300     850,634    813,214
    Commercial real estate
     and multifamily property:
     Non-performing loans    169,448    165,619     171,349    168,104
     Other real estate
     owned, net               70,631     77,991      54,909     56,280
    Total commercial real
     estate and multifamily
     property non-performing
     assets                  240,079    243,610     226,258    224,384
    Other non-performing
     loans                     2,894      5,155       5,163     4?
    Investment securities
     in default                1,525      1,525       1,525      1,525
    Total non-performing
     assets                1,101,388  1,115,590   1,083,580  1,043,867
    Ratio of non-performing
     assets to total assets
     (in percents)             11.13      10.80       10.15       9.69
                                          12/31/90    12/31/89
    Residential property:
     Non-performing loans                 $631,836    $444,186
     Other real estate
     owned, net                            121,649      45,284
    Total residential property
     non-performing assets                 753,485     489,470
    Commercial real estate
     and multifamily property:
     Non-performing loans                  136,649      41,546
     Other real estate owned, net           58,544      14,048
    Total commercial real
     estate and multifamily
     property non-performing assets        193,193      55,594
    Other non-performing loans               4,520       3,926
    Investment securities in default         1,525       1,569
    Total non-performing assets            952,723     550,559
    Ratio of non-performing
     assets to total assets (In percent)     8.79        4.72
      Period ended                      Three months         Year
       Dec. 31                         1991     1990     1991    1990
                                               (In percents)
    Interest-earning assets yield      8.84     9.58     9.20    9.71
    Cost of deposits and borrowings    6.09     7.52     6.67    7.65
    Interest rate margin during period 2.75     2.06     2.53    2.08
    Net yield on average interest-
     earning assets                    2.68     2.11     2.48    2.21
    General and administrative expense
     as a percentage of:
     Average total assets              2.10     1.52     1.77    1.55
     Average total assets and loans
      serviced for others              1.46     1.18     1.29    1.22
       At Dec. 31                           1991       1990
                                             (In percents)
    OTS tangible capital ratio              2.27       4.18
    OTS leverage capital ratio              2.35       4.25
    OTS risk-based capital ratio            4.46       7.04
    Stockholders' equity to total assets    2.60       4.49
               Selected Consolidated Financial Information
                      Statement of Operations Data
               (Dollars in thousands, except per-share data)
     Periods ended                Three Months              Year
     Dec. 31                     1991      1990       1991        1990
    Interest income           $211,689  $256,308   $915,535  $1,075,828
    Interest expense           148,545   201,262    667,501     830,953
    Net interest income         63,144    55,044    248,034     244,875
    Provision for losses       203,714    16,000    306,714     195,400
    Other operating income:
     Net gains (losses) on sales
      of Dime-originated loans   7,364    (2,274)    28,171      (6,913)
     Net gains (losses) on sales
      of investment securities
      and purchased loans       15,644       (76)    17,010         (76)
     Gain on sale of branches       --     3,374         --       3,374
     Loan servicing fees         3,854     3,790     13,889      14,908
     Banking service fees
      and other                  4,413     3,575     17,979      15,659
     Total other oper. income   31,275     8,389     77,049      26,952
    Other operating expense:
     General and administrative 53,564    42,801    187,089     179,715
     Other real estate owned    26,737    14,642     56,531      25,049
     Amortization of goodwill      772       650      2,230       2,632
     Provision for restructuring 6,000        --      6,000          --
     Total other oper. expense  87,073    58,093    251,850     207,396
    Loss before income taxes
     and extraordinary item   (196,368)  (10,000)  (233,481)   (130,969)
    Income tax provision           960       316      3,911       4,765
    Loss bef. extraord. item  (197,328)  (10,976)  (237,392)   (135,734)
    Extraordinary item - federal
     income tax charge relating
     to net operating loss
     carryforward                   --    (1,585)        --          --
    Net loss                  (197,328)  (12,581)  (237,392)   (135,734)
    Loss per share:
     Loss before extraord. item ($8.54)   ($0.48)   ($10.27)     ($5.94)
     Extraordinary item             --     (0.07)        --          --
     Net loss                    (8.54)    (0.55)    (10.27)      (5.94)
    -0-                               3/30/92
    /CONTACT:  Kate Barker of the Dime Savings Bank of New York, FSB, 212-326-6170 or 800-548-3463/
    (DME) CO:  Dime Savings Bank of New York, FSB ST:  New York IN:  FIN SU:  ERN AH -- NY092 -- 3080 03/30/92 17:06 EST
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