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DIME SAVINGS BANK REPORTS THIRD QUARTER EARNINGS

 DIME SAVINGS BANK REPORTS THIRD QUARTER EARNINGS
 NEW YORK, Oct. 26 /PRNewswire/ -- The Dime Savings Bank of New York,


FSB (NYSE: DME), today reported earnings of $8.7 million, or $0.38 per share, for the third quarter of 1992, compared with a loss of $4.5 million, or $0.19 per share, for the third quarter of 1991.
 In addition, The Dime reported that its level of non-performing assets declined for the fourth consecutive quarter to the lowest level since the first quarter of 1991.
 For the first nine months of 1992, earnings totaled $25.4 million, or $1.10 per share, compared with a loss of $40.1 million, or $1.73 per share, for the comparable period of 1991.
 "Our third quarter performance was driven by the most important components of the bank's operations -- notably, strong improvements in net interest income and relatively significant growth in fee income -- together with the need for a more moderate provision for loan losses," said Richard D. Parsons, chairman and chief executive officer of The Dime. "In addition, selected asset sales, transacted primarily to strengthen our capital ratios, contributed to our results."
 Net Interest Income
 During the third quarter of 1992, net interest income was $72.1 million. "While this is slightly below that of the second quarter, it represents a 17 percent improvement over the third quarter of 1991," added Mr. Parsons. For the first nine months of 1992, net interest income was $214.4 million, compared with $184.9 million reported for the first nine months of 1991.
 Net interest margin during the third quarter was 3.42 percent, a significantly higher level than the 2.59 percent for the 1991 third quarter, and was due primarily to the bank's lower funding costs in the 1992 period.
 Fee Income
 The Dime reported that fee income during the third quarter of 1992 was $10.5 million, up 31 percent from $8.1 million in the same quarter of 1991. For the first nine months, fee income was $29.5 million in 1992 and $23.6 million in 1991, a 25 percent improvement. Growth in fee income during 1992 resulted largely from the bank's development of its fee-based products and services, particularly the expanded investment services a Dime subsidiary now offers to the bank's customers.
 Non-Performing Assets
 The Dime's non-performing assets were $1.03 billion at Sept. 30, 1992, a decline of $36.6 million since June 30, 1992, and a decline of $66.7 million since Dec. 31, 1991. Of this total, non-performing loans were $711.6 million at Sept. 30, 1992, a decline of $49.8 million for the quarter and $130.1 million for the nine months. Other real estate owned grew by $13.2 million and $63.4 million during the third quarter and nine months, respectively. Approximately 78 percent of the bank's non-performing assets at Sept. 30, 1992, were related to single-family residential properties.
 The Dime's provision for loan losses of $28.2 million for the quarter resulted in an allowance for loan losses at Sept. 30, 1992, of $224.6 million, or 31.6 percent of non-performing loans. In addition, the bank maintains a reserve for potential declines in the value of real estate owned which stood at $18.7 million at Sept. 30, 1992, or 5.5 percent of the balance of such real estate.
 Capital
 At Sept. 30, 1992, The Dime's regulatory capital ratios were: tangible 2.64 percent, leverage 2.71 percent, and risk-based 5.11 percent. As previously reported, a Capital Plan was filed on Sept. 25, 1992, with the bank's primary regulator, the Office of Thrift Supervision. The document details The Dime's plans to reach a leverage ratio of 5 percent and risk-based ratio of 9 percent at June 30, 1993, and a risk-based ratio of 10 percent by Dec. 31, 1994. The plan is currently under review by the OTS.
 At Sept. 30, 1992, The Dime was the largest thrift headquartered in New York. It operated 47 branches in New York, and, through a subsidiary, eight branches in New Jersey. The bank recently entered into a letter of intent to sell eight branches in the Albany and Utica areas which, at Sept. 30, 1992, had deposits of approximately $450 million.
 THE DIME SAVINGS BANK OF NEW YORK, FSB
 Selected Consolidated Financial Information
 Statement of Condition Data
 (Dollars in thousands except per share data)
 At 9/30/92 At 12/31/91 At 9/30/91
 Total assets $9,378,969 $9,898,094 $10,329,000
 Money market investments 84,710 114,386 233,760
 Assets held for sale 1,637,288 405,489 7,075
 U.S. Government & Federal
 agency securities 222,223 226,135 215,384
 Other investment securities,
 net 330,394 428,886 432,892
 Total loans, net 6,258,648 7,969,326 8,684,568
 Home mortgage loans 2,689,727 4,628,864 5,423,590
 Mortgage-backed
 certificates 1,793,015 1,449,251 1,172,518
 Cooperative apartment loans 821,916 900,498 922,588
 Commercial real estate loans 650,749 709,192 723,357
 Multifamily property loans 441,600 472,213 495,257
 Consumer & business loans 86,261 100,946 105,993
 Allowance for loan losses 224,620 291,638 158,735
 Allowance for loan losses
 to total loans 2.79 pct 3.37 pct 1.79 pct
 Allowance for loan losses
 to non-performing loans 31.57 pct 34.65 pct 18.62 pct
 Total non-performing assets 1,034,674 1,101,388 1,115,590
 Non-performing assets to
 total assets 11.03 pct 11.13 pct 10.80 pct
 Total non-performing loans 711,608 841,681 852,306
 Residential property loans 565,977 669,539 681,532
 Commercial real estate &
 multifamily loans 141,876 169,448 165,619
 Other non-performing loans 3,755 2,694 5,155
 Other real estate owned, net 321,541 258,182 261,759
 Goodwill 31,391 32,825 33,597
 Total deposits 7,511,985 8,238,865 8,317,154
 Borrowed funds 1,486,444 l,306,364 1,479,485
 Stockholders' equity 282,983 256,928 452,727
 Book value per share $12.20 $11.11 $19.58
 THE DIME SAVINGS BANK OF NEW YORK, FSB
 Selected Consolidated Financial Information
 Statement of Operations Data
 (Dollars in thousands, except per share data)
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Interest income $181,255 $223,629 $569,560 $703,846
 Interest expense 109,154 161,961 355,176 518,956
 Net interest income 72,101 61,668 214,384 184,890
 Provision for losses 28,200 33,700 60,050 103,000
 Other operating income:
 Net gains on sales of
 Dime-originated loans 20,338 21,920 23,517 20,807
 Net gains (losses) on sales
 of investment securities &
 purchased loans (925) 18 (919) 1,366
 Loan servicing fees 3,408 3,400 11,204 10,035
 Securities & insurance
 brokerage fee income 4,402 1,954 9,917 5,235
 Banking service fees & other 2,735 2,706 8,414 8,331
 Total other operating income 29,958 29,998 52,133 45,774
 Other operating expense:
 General & administrative
 Salaries and benefits 21,574 20,400 63,014 59,836
 Occupancy 11,933 12,505 34,998 35,592
 Federal deposit insurance 4,495 4,889 13,903 13,620
 Other general &
 administrative 10,156 8,152 29,362 24,477
 Total general & admin. 48,158 45,946 141,277 133,525
 Other real estate owned 13,072 15,089 33,100 29,794
 Amortization of goodwill 478 486 1,434 1,458
 Total other operating expense 61,708 61,521 175,811 164,777
 Inc. (loss) bef. inc. taxes
 and extraordinary item 12,151 (3,555) 30,656 (37,113)
 Income tax provision 663 961 2,527 2,951
 Income (loss) before
 extraordinary item 11,488 (4,516) 28,129 (40,064)
 Extraord. item - loss on early
 extinguishment of debt (2,760) -- (2,760) --
 Net income (loss) $ 8,728 $ (4,516) $ 25,369 $(40,064)
 Earnings (loss) per share:
 Income (loss) before
 extraordinary item $ .50 $(.19) $1.22 $(1.73)
 Extraordinary item (.12) -- (.12) --
 Net income (loss) $ .38 $(.19) $1.10 $(1.73)
 THE DIME SAVINGS BANK OF NEW YORK, FSB
 Selected Consolidated Financial Information
 Non-Performing Assets and Key Ratios
 (Dollars in thousands)
 NON-PERFORMING ASSETS:
 9/30/92 6/30/92 3/31/92 12/31/91 9/30/91 6/30/91
 Residential property:
 Non-performing
 loans $565,977 $611,349 $655,640 $669,539 $681,532 $684,364
 Other real estate
 owned, net 238,123 233,278 199,797 187,551 183,768 166,270
 Total residential
 property non-performing
 assets 804,100 844,627 855,437 857,090 865,300 850,634
 Commercial real
 estate & multifamily
 property:
 Non-performing
 loans 141,876 146,212 163,153 169,448 165,619 171,349
 Other real estate
 owned, net 83,418 75,056 72,197 70,631 77,991 54,909
 Total commercial
 real estate &
 multifamily property
 non-performing
 assets 225,294 221,268 235,350 240,079 243,610 226,258
 Other non-performing
 loans 3,755 3,874 3,908 2,694 5,155 5,163
 Investment securities
 in default 1,525 1,525 1,525 1,525 1,525 1,525
 Total non-performing
 assets 1,034,674 1,096,220 1,115,590
 1,071,294 1,101,388 1,083,580
 Ratio of non-performing
 assets to total
 assets (pct.) 11.03 10.77 10.98 11.13 10.80 10.15
 KEY RATIOS (in percent):
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Interest-earning assets yield 8.09 9.03 8.39 9.30
 Cost of deposits & borrowings 4.67 6.44 5.08 6.85
 Interest rate margin during
 period 3.42 2.59 3.31 2.45
 Net yield on average. interest-
 earning assets 3.24 2.54 3.15 2.43
 General & administrative
 expense as a percentage of:
 Average total assets 1.99 1.74 1.94 1.66
 Average total assets and loans
 serviced for others 1.31 1.26 1.29 1.23
 At September 1992 At December 1991
 Regulatory capital ratios
 Tangible capital ratio 2.64 2.27
 Leverage capital ratio 2.71 2.35
 Risk-based capital ratio 5.11 4.46
 Stockholders' equity to total assets 3.02 2.60
 -0- 10/26/92
 /CONTACT: Dime Savings Bank of New York, FSB, Shareholder Relations Office, 212-326-6170; or Richard H. Terzian, 212-326-6915, for The Dime/
 (DME) CO: The Dime Savings Bank of New York FSB ST: New York IN: FIN SU: ERN


GK-EE -- NY028 -- 4725 10/26/92 11:18 EST
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