<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 20, 1999
Dime Bancorp, Inc.
------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 001-13094 11-3197414
-------- --------- ----------
(State or Other Jurisdiction) (Commission (IRS Employer
File Number) Identification No.)
589 Fifth Avenue
New York, New York 10017
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 326-6170
Not applicable
--------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
Item 5. Other Events.
As previously announced, on September 15, 1999, Dime Bancorp, Inc. (the
"Registrant") entered into an Agreement and Plan of Merger by and between Hudson
United Bancorp ("Hudson United") and the Registrant. This current report on Form
8-K includes certain investor presentation materials related to the merger of
equals.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a)-(b) Not applicable.
(c) Exhibits Required by Item 601 of Regulation S-K
Exhibit Number Description
-------------- -----------
99.1 Investor presentation materials, dated
September 1999, regarding the merger
of equals of Hudson United and the
Registrant.
-2-
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DIME BANCORP, INC.
By: /s/ Anthony R. Burriesci
---------------------------------
Name: Anthony R. Burriesci
Title: Chief Financial Officer
Date: September 20, 1999
-3-
<PAGE> 4
EXHIBIT INDEX
Exhibit Number Description
99.1 Investor presentation materials, dated September
1999, relating to the proposed merger of equals of
Hudson United Bancorp and Dime Bancorp, Inc.
-4-
<PAGE> 1
DIME UNITED
CREATING THE MID-ATLANTIC'S PREMIER
REGIONAL BANK
September 1999
MERGER OF EQUALS
[DIME LOGO] [HUDSON UNITED BANK LOGO]
<PAGE> 2
FORWARD LOOKING STATEMENT
- --------------------------------------------------------------------------------
- - This presentation contains certain statements regarding Dime Bancorp,
Inc., Hudson United Bancorp and Dime United Bancorp, Inc. following the
completion of the merger of equals discussed herein, including
strategies, plans and objectives, as well as estimates and statements
based on underlying estimates of future financial condition,
performance and operating efficiencies on a pro forma basis and cost
savings and revenue enhancements and accretion to reported earnings
that will be realized from the merger.
- - These statements and estimates constitute forward-looking statements
(within the meaning of the Private Securities Litigation Reform Act of
1995), which involve significant risks and uncertainties. A variety of
factors could cause actual results and experience to differ materially
from the anticipated results or other expectations expressed in such
forward-looking statements.
- - Factors that might cause such a difference include, but are not limited
to, risks and uncertainties related to the consummation of the merger,
including the realization of expected cost savings from the merger;
realization of the level of revenues following the merger; integration
costs or difficulties; competition from both financial and
non-financial institutions; changes in interest rates, deposit flows,
loan demand and real estate values; changes in legislation or
regulation; changes in accounting principles, policies or guidelines;
the timing and occurrence (or non-occurrence) of transactions and
events that may be subject to circumstances beyond the control of Dime
or Hudson United; and other economic, competitive, governmental,
regulatory and technological factors affecting Dime, Hudson United or
Dime United, specifically or the banking industry or economy generally.
- - Neither Dime or Hudson United assumes any obligation to update these
forward-looking statements or to update the reasons why actual results
could differ from those projected in the forward-looking statements.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 3
TRANSACTION OVERVIEW
- --------------------------------------------------------------------------------
Transaction Structure: Merger of Equals
Name: Dime United Bancorp, Inc. (Bank Holding Company)
Principal Subsidiary: DimeBank (Commercial bank)
Headquarters: Corporate HQ - New York City
Bank HQ - Mahwah, NJ
Board of Directors: 13 Dime / 12 Hudson United
Management: Larry Toal - Chairman & CEO until 12/31/02
Ken Neilson - President & COO
Tony Burriesci - Chief Financial Officer
John McIlwain - Chief Credit Officer
Rich Mirro - Mortgage Banking Executive
Tom Shara - Commercial Lending Executive
CEO Succession: Ken Neilson to succeed Larry Toal on 1/1/03
NYSE Ticker Symbol: DU - to be applied for
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 4
TRANSACTION OVERVIEW
- --------------------------------------------------------------------------------
Fixed Exchange Ratio: Market based exchange ratio
0.585 - Dime United share per DME share
1.000 - Dime United share per HU share
Dividends: $1.00 per share annually (Implied Yield - 3.2%)
Accounting Treatment: Pooling of interests
Tax free exchange
Option Agreements: 19.9% cross-options granted at market
Anticipated Closing: 1Q 2000
Pro Forma Ownership: 56% Dime / 44% Hudson United
Due Diligence: Completed; including Y2K
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 5
TRANSACTION RATIONALE - DIME UNITED
- --------------------------------------------------------------------------------
DIME
- - Accelerates transformation to commercial bank
- - Dramatically expands geographic footprint
- - Balances and diversifies earnings composition
HUDSON UNITED
- - Expansion into New York metro small business market
- - Provides scale and critical mass
- - Strong retail brand identity
CREATES VALUE FROM COST SAVINGS,
WITH ADDITIONAL POTENTIAL VALUE
FROM MULTIPLE EXPANSION
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 6
MID-ATLANTIC'S PREMIER REGIONAL BANK
- --------------------------------------------------------------------------------
- - Concentration in the nation's most affluent markets:
- Creates the 5th largest Mid-Atlantic regional bank
- Contiguous branch system in 4 state region from Philadelphia
to Hartford
- Over 1 million households and approx. 100,000 commercial
customers
- - A regional banking franchise with unique characteristics:
- Breadth of products required to compete with super-regionals
- Profitability statistics compare favorably with regional peer
group
- Diversified business mix and revenue streams
- - A unique investment opportunity:
- Outstanding franchise in attractive markets coupled with
national distribution capabilities
- Superior transaction economics consistent with no premium
merger
- Opportunity for significant revenue enhancements not taken
into account
- Creates value from cost savings, with additional potential
value from multiple expansion
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 7
AN EXPERIENCED BANK MANAGEMENT TEAM
- --------------------------------------------------------------------------------
TOP 20 SENIOR MANAGEMENT POSITIONS HAVE BEEN DECIDED AND ANNOUNCED INCLUDING:
<TABLE>
<CAPTION>
YEARS OF
COMMERCIAL BANKING
EXPERIENCE
<S> <C> <C>
Larry Toal Chairman & CEO 26
Ken Neilson President & COO 29
Tony Burriesci Chief Financial Officer 26
John McIlwain Chief Credit Officer 35
Rich Mirro Mortgage Banking Executive 20
Tom Shara Commercial Lending Executive 18
</TABLE>
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 8
LOW RISK TRANSACTION
- --------------------------------------------------------------------------------
- - All the tough decisions have been made:
- Social issues have been decided
- Key senior management identified
- - Management uniquely positioned to successfully execute transaction:
- Dime/Anchor - one of the industry's most successful MOEs
- Successful acquisition integration a core competency for both
companies
- - Compatible corporate culture and strategy:
- Both companies committed to high-performing commercial bank
profitability
- Community-based consumer and business banking strategy
- - Integration risk mitigated by:
- Complementary branch networks
- Complementary product offerings and skill sets
- Strong regional brand
- Cost savings principally derived from non-customer contact
areas
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 9
DIME UNITED FINANCIAL TARGETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRO FORMA (1) GOALS PEER GROUP (2)
<S> <C> <C> <C>
Net Interest Margin 3.38% 4.00%+ 3.96%
Efficiency Ratio 44% less than 45% 48%
ROA 1.35% 1.50%+ 1.48%
ROE 20.0% 20.0%+ 17.7%
EPS Growth - 12%+ 10.1%
</TABLE>
(1) Including synergies and pro forma for pending acquisitions.
(2) Peer group includes Associated, M&T, North Fork and Summit pro forma
for all announced acquisitions.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 10
COMBINATION OF
TWO COMPANIES COMMITTED
TO BUILDING SHAREHOLDER
VALUE
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 11
PROFILE OF DIME BANCORP, INC.
- --------------------------------------------------------------------------------
GROWTH IN DIME'S SHAREHOLDER VALUE HAS ACCELERATED IN RECENT YEARS:
- - Improving Quality of Earnings
- - Increasing Net Interest Margin
- - Transforming Balance Sheet Towards Commercial Bank Composition
- - Shareholder-Oriented Redeployment of Excess Capital
- - Strategic Investments and Acquisitions in New and Existing Businesses
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 12
PROFILE OF DIME BANCORP, INC.
- --------------------------------------------------------------------------------
BALANCE SHEET TRANSFORMATION
LOAN DIVERSIFICATION
<TABLE>
<CAPTION>
12/31/97 6/30/99
<S> <C> <C>
Commercial Real Estate, Consumer, Business 24% 36%
Residential 76% 64%
Yield on Loans: 7.58% 7.28%
</TABLE>
BALANCE SHEET TRANSFORMATION
CORE DEPOSIT GROWTH
<TABLE>
<CAPTION>
12/31/97 6/30/99
<S> <C> <C>
Core Deposits 44% 53%
Time Deposits 56% 47%
Costs of Deposits: 4.19% 3.49%
</TABLE>
EXPANDING NET INTEREST MARGIN
<TABLE>
<S> <C>
1996 2.40%
1997 2.51%
1998 2.68%
2Q 1999 2.94%
</TABLE>
HIGHER FEE INCOME
FEE INCOME/TOTAL REVENUE
<TABLE>
<S> <C>
1996 17.6%
1997 21.6%
1998 34.7%
2Q 1999 40.4%
</TABLE>
COST CONTROLS IN PLACE
EFFICIENCY RATIO
<TABLE>
<S> <C>
1996 51.8%
1997 52.0%
1998 54.6%
2Q 1999 51.2%
</TABLE>
SOLID ASSET QUALITY
NET CHARGE-OFF RATIO
<TABLE>
<S> <C>
1996 0.61%
1997 0.55%
1998 0.24%
2Q 1999 0.11%
</TABLE>
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 13
PROFILE OF DIME BANCORP, INC.
- --------------------------------------------------------------------------------
RETURN ON AVERAGE ASSETS
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
<S> <C> <C> <C> <C>
1996 0.58% 0.59% 0.62% 0.63%
1997 0.69% 0.75% 0.78% 0.89%
1998 0.91% 1.01% 1.08% 1.07%
1999 1.09% 1.15%
</TABLE>
RETURN ON AVERAGE EQUITY
<TABLE>
1Q 2Q 3Q 4Q
<S> <C> <C> <C> <C>
1996 11.9% 11.7% 12.2% 12.2%
1997 12.7% 14.2% 15.1% 14.9%
1998 15.4% 16.4% 16.7% 16.8%
1999 16.8% 16.7%
</TABLE>
NOTE: OPERATING EARNINGS BASIS.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 14
PROFILE OF DIME BANCORP, INC.
- --------------------------------------------------------------------------------
<TABLE>
1Q 2Q 3Q 4Q
<S> <C> <C> <C> <C>
1996 $0.27 $0.27 $0.28 $0.29
1997 $0.31 $0.35 $0.38 $0.41
1998 $0.43 $0.47 $0.49 $0.51
1999 $0.52 $0.54
</TABLE>
22% CAGR
NOTE: OPERATING EARNINGS BASIS.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 15
PROFILE OF HUDSON UNITED BANCORP, INC.
- --------------------------------------------------------------------------------
HIGH PERFORMANCE BANKING
- - Superior Profitability Statistics
- - Successful Integration Track Record - 23 acquisitions over last 5 years
- - Consistent Improvement in Efficiency Levels
- - Attractive Retail Footprint
- - Attractive Low Cost Deposit Base
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 16
PROFILE OF HUDSON UNITED BANCORP, INC.
- --------------------------------------------------------------------------------
IMPROVING EFFICIENCY
EFFICIENCY RATIO
<TABLE>
<S> <C>
1996 54.0%
1997 50.4%
1998 49.6%
2Q 1999 46.7%
</TABLE>
HIGHER FEE INCOME
<TABLE>
<S> <C>
1996 $ 40
1997 $ 45
1998 $ 53
2Q 1999 $ 65
</TABLE>
21% CAGR
STRONG - DESPITE THRIFT ACQUISITIONS
NET INTEREST MARGIN
<TABLE>
<S> <C>
1996 5.05%
1997 5.20%
1998 4.10%
2Q 1999 4.15%
</TABLE>
3.96% - Bank Median
LOAN DISTRIBUTION AS OF 6/30/99
<TABLE>
<S> <C>
Commercial Loans 20%
Residential Mtge. Fixed 28%
Residential Mtge. Adj. 17%
Consumer Loans 16%
Commercial Mtge. 19%
Yield on Loans 8.51%
</TABLE>
LOW COST DEPOSIT BASE
<TABLE>
<S> <C>
Time Deposits 42%
DDA 18%
NOW/MMDA 18%
Savings 22%
Cost of Deposits 2.62%
</TABLE>
SOLID ASSET QUALITY
NPAs/TOTAL ASSETS
<TABLE>
<S> <C>
1996 1.20%
1997 1.23%
1998 0.36%
2Q 1999 0.29%
</TABLE>
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 17
PROFILE OF HUDSON UNITED BANCORP, INC.
- --------------------------------------------------------------------------------
CONSISTENTLY SUPERIOR PROFITABILITY STATISTICS
ROA
<TABLE>
<S> <C>
1996 1.50%
1997 1.67%
1998 1.46%
June 30, 1999 1.45%
</TABLE>
ROE
<TABLE>
<S> <C>
1996 20.0%
1997 24.4%
1998 21.9%
June 30, 1999 23.3%
</TABLE>
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 18
PROFILE OF HUDSON UNITED BANCORP, INC.
- --------------------------------------------------------------------------------
DILUTED EARNINGS PER SHARE
Percent
Increase
<TABLE>
<S> <C> <C>
1993 $ 1.26 --
1994 $ 1.50 19%
1995 $ 1.67 11%
1996 $ 1.75 5%
1997 $ 2.04 17%
1998 $ 2.21 8%
1999 $ 2.48 12%
12% CAGR
</TABLE>
Note: Excludes special charges.
1999 represents six-months ended June 30, 1999 annualized.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 19
OVERVIEW OF DIME UNITED
- --------------------------------------------------------------------------------
(Dollars in Billions)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DIME UNITED
- --------------------------------------------------------------------------------
<S> <C>
Market Cap. $ 3.6
SELECTED BALANCE SHEET DATA:(1)
Gross Loans $19.4
Total Assets 32.5
Deposits 21.7
Common Equity 2.0
PROFITABILITY STATISTICS:(2)
Net Interest Margin(3) 3.38%
Fee Income / Total Revenue 33.6
Efficiency Ratio 44.2
Return on Avg. Assets 1.35
Return on Avg. Equity 20.0
Cash ROAA 1.45
Cash ROAE 28.1
TOTAL BRANCHES 334
- --------------------------------------------------------------------------------
</TABLE>
Note: Market data as of September 14, 1999.
(1) Pro forma as of June 30, 1999, including all pending acquisitions.
(2) Pro forma with full phase-in of synergies.
(3) Pro forma for all announced acquisitions.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 20
CREATING THE MID-
ATLANTIC'S PREMIER
REGIONAL BANK
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 21
MID-ATLANTIC'S PREMIER REGIONAL BANK
- --------------------------------------------------------------------------------
DIME UNITED RANKS AS THE 5TH LARGEST BANK IN THE MID-ATLANTIC REGION:
TOP MID-ATLANTIC REGIONALS(1)
(DOLLARS IN BILLIONS)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
REGIONAL MARKET
RANK INSTITUTION DEPOSITS(2) BRANCHES(2) SHARE MARKET CAP(3)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 First Union $49.0 779 11.5% $39.2
2 Fleet Boston 35.3 572 8.3 34.4
3 Bank of New York 26.5 354 6.3 26.5
4 HSBC 23.7 233 5.6 -
- -----------------------------------------------------------------------------------------------------------------------------------
5 DIME UNITED PRO FORMA 22.3 334 5.2 3.6
- -----------------------------------------------------------------------------------------------------------------------------------
6 Summit 21.6 413 5.1 5.9
7 PNC 18.3 347 4.3 15.7
8 GreenPoint 11.0 73 2.6 2.6
9 Sovereign 10.7 221 2.5 1.8
10 Astoria Financial 9.6 92 2.3 1.7
11 North Fork 9.2 159 2.2 3.4
12 Mellon 7.9 138 1.9 17.4
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Defined as CT, NJ, NY Metropolitan Area and Chester, Delaware,
Montgomery and Philadelphia counties in PA. Excludes money center
banks.
(2) Within region, as of June 30, 1998, as reported by SNL, pro forma for
all pending acquisitions.
(3) On a pro forma basis including pending acquisitions as of September 14,
1999.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 22
MID-ATLANTIC'S PREMIER REGIONAL BANK
- --------------------------------------------------------------------------------
CONTIGUOUS BRANCH NETWORK IN FOUR STATE REGION FROM PHILADELPHIA TO HARTFORD:
[MAP]
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 23
MID-ATLANTIC'S PREMIER REGIONAL BANK
- --------------------------------------------------------------------------------
DIME UNITED FRANCHISE IS CONCENTRATED IN THE U.S.' MOST AFFLUENT AND DENSELY
POPULATED MARKETS:
- - Market area includes 8 of the nation's 25 most affluent counties
- - Median HH Income 125% of national average
- - Population in footprint of 26 million or 9.6% of U.S.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
DIME UNITED PRO FORMA MEDIAN NATIONAL HH INCOME
DEPOSITS HH INCOME RANK GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York Metro Area (1) $13.4B $45,297 (2) 6 (5) 8.3%
New Jersey 5.6 52,423 1 11.9
Connecticut 2.1 52,415 2 10.5
Philadelphia Metro Area(3) 1.2 40,863 (4) 18 (5) 11.2
Dime United/
Mid-Atlantic Region $22.3 $47,991 - 10.0%
U.S. Average - $38,302 - 10.3%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Includes New York MSA, Long Island, Westchester, Rockland, Ulster,
Putnam, Dutchess, Sullivan and Orange Counties.
(2) Weighted average of New York Metro Area counties.
(3) Includes Chester, Delaware, Montgomery and Philadelphia counties in
Pennsylvania.
(4) Weighted average of Philadelphia Metro Area counties of Chester,
Delaware, Montgomery, and Philadelphia Counties.
(5) If New York Metro and Philadelphia Metro Areas were ranked as states.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 24
A REGIONAL BANK WITH UNIQUE CHARACTERISTICS
- --------------------------------------------------------------------------------
PRO FORMA PROFITABILITY STATISTICS CONSISTENT WITH THAT OF HIGH PERFORMING
REGIONAL PEER GROUP:
- - Market multiple significantly lower than peers
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DIME UNITED
PRO FORMA(2) PEER GROUP(3)
- --------------------------------------------------------------------------------
<S> <C> <C>
Price / 1999E EPS 8.5x 13.0x
Net Interest Margin 3.38% 3.96%
Fee Income/Total Revenue 33.6 21.7
Efficiency Ratio(1) 44.2 47.9
Return on Avg. Assets 1.35 1.48
Return on Avg. Equity 20.0 17.7
Cash ROAA 1.45 1.61
Cash ROAE 28.1 22.6
- --------------------------------------------------------------------------------
</TABLE>
Note: Market data as of September 14, 1999. Financial information includes all
pending acquisitions.
(1) Excludes goodwill amortization.
(2) Includes full phase-in of projected cost savings and all pending
acquisitions.
(3) Peer group includes Associated, M&T, North Fork and Summit pro forma
for all announced acquisitions.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 25
A REGIONAL BANK WITH UNIQUE CHARACTERISTICS
- --------------------------------------------------------------------------------
MIGRATING DIME UNITED'S LOAN COMPOSITION TO PEER AVERAGE WILL ENHANCE YIELD:
<TABLE>
<CAPTION>
Dime United Regional Peers(1)
<S> <C> <C>
Residential 52% 43%
Commercial Real Estate 21% 22%
Consumer 17% 16%
Business 10% 19%
AVERAGE LOAN YIELD: 7.62% 7.96%
</TABLE>
Note: Financial data as of June 30, 1999, including all pending acquisitions.
(1) Peer group includes Associated, M&T, North Fork, and Summit pro forma
for all announced acquisitions.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 26
A REGIONAL BANK WITH UNIQUE CHARACTERISTICS
- --------------------------------------------------------------------------------
DIME UNITED'S DEPOSIT MIX ALREADY LOWER COST THAN THAT OF PEERS:
<TABLE>
<CAPTION>
Dime United Regional Peers(1)
<S> <C> <C>
Demand 16% 18%
Savings and Money Market 39% 35%
Time 45% 47%
COST OF DEPOSITS: 3.35% 3.52%
</TABLE>
Note: Financial data as of June 30, 1999, including all pending acquisitions.
(1) Peer group includes Associated, M&T, North Fork, and Summit pro forma
for all announced acquisitions.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 27
A REGIONAL BANK WITH UNIQUE CHARACTERISTICS
- --------------------------------------------------------------------------------
DIME UNITED'S ESTIMATED PRO FORMA EARNINGS COMPOSITION IS BOTH BALANCED AND
DIVERSIFIED:
<TABLE>
<S> <C>
Consumer Financial Services 52%
Commercial Banking 25%
Mortgage Banking 13%
Consumer Lending 10%
</TABLE>
Note: Financial data as of June 30, 1999, including all pending acquisitions.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 28
A REGIONAL BANK WITH UNIQUE CHARACTERISTICS
- --------------------------------------------------------------------------------
A REGIONAL BANK WITH A SUPER-REGIONAL PRODUCT SET:
- - Consumer Loan Products
- Home Equity [DIME LOGO] [HUB LOGO]
- Auto [DIME LOGO]
- Credit Card [HUB LOGO]
- - Non-Banking Services
- Investment Products [DIME LOGO] [HUB LOGO]
- Insurance [DIME LOGO]
- Venture Capital [DIME LOGO]
- Trust Services [HUB LOGO]
- Private Label Credit Card [HUB LOGO]
- - Consumer Banking
- PC Banking [DIME LOGO] [HUB LOGO]
- Deposit Services [DIME LOGO] [HUB LOGO]
- Advest Joint Venture [HUB LOGO]
- ATM Network [DIME LOGO] [HUB LOGO]
- 24/7 Telebank [DIME LOGO] [HUB LOGO]
- - Business Banking Products
- Small Business Lending [DIME LOGO] [HUB LOGO]
- Business Checking [DIME LOGO] [HUB LOGO]
- PC Business Banking [HUB LOGO]
- Community Municipal Banking [HUB LOGO]
- Pension/401(k) Services [HUB LOGO]
- - Commercial Banking
- Commercial Lending [DIME LOGO] [HUB LOGO]
- Commercial RE Lending [DIME LOGO] [HUB LOGO]
- Cash Management [DIME LOGO] [HUB LOGO]
- Asset-Based Lending [HUB LOGO]
- Middle Market Leasing [DIME LOGO] [HUB LOGO]
- - Mortgage Banking
- Originations [DIME LOGO]
- Servicing [DIME LOGO]
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 29
A UNIQUE INVESTMENT OPPORTUNITY
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 30
A UNIQUE INVESTMENT OPPORTUNITY
- --------------------------------------------------------------------------------
PRO FORMA'S BASED ON ALREADY IDENTIFIED COST SAVINGS OPPORTUNITIES:
- - Represents 8.6% of combined expense bases and 13.7% excluding North American
Mortgage
- - $136 million pre-tax merger charge - $94 million after-tax
SOURCES OF COST SAVINGS
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
2000 2001
- --------------------------------------------------------------------------------
<S> <C> <C>
Staff-related $20 $42
Systems 3 7
Facilities/Branches 3 7
Other 11 22
----- -----
Total (Pre-tax) $37 $78
Total (After-tax) $24 $50
- --------------------------------------------------------------------------------
</TABLE>
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 31
A UNIQUE INVESTMENT OPPORTUNITY
- --------------------------------------------------------------------------------
NET INTEREST MARGIN INITIATIVES TO INCLUDE:
INITIATIVE
- Migration of loan composition to higher yielding mix
- Continue to improve deposit mix/costs
- Improve asset mix
COMMENT
- Hudson United's loan yields 127 bps higher than Dime's
- Dime/Hudson United have grown demand deposits by approx. 15%
since 1997
- Decrease securities portfolio as a percent of earning assets
IMPROVE DIME UNITED'S NET INTEREST MARGIN TO 4.00%+
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 32
A UNIQUE INVESTMENT OPPORTUNITY
- --------------------------------------------------------------------------------
REVENUE ENHANCEMENT OPPORTUNITIES IDENTIFIED BUT NOT FACTORED INTO PRO FORMA:
HOW
- - Adopt best of class sales practices
- - Leverage core competencies:
- Commercial lending
- Home equity lending
- Retail deposit services
- Investment and insurance prod.
- Mortgage lending
- - Leverage brand and scale
OPPORTUNITY
- - Consumer lending
- Auto
- Home equity
- - Business banking
- Loan originations
- - Consumer banking
- Insurance and securities sales
- Increased fee opportunities (ie, debit card, ATM)
- Core deposit growth
- - Leverage national business lines
IMPACT
INITIATIVES IDENTIFIED TO DATE WOULD APPROXIMATE $20 MILLION ADDITIONAL
CONTRIBUTION ANNUALLY
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 33
A UNIQUE INVESTMENT OPPORTUNITY
- --------------------------------------------------------------------------------
PRO FORMA'S PREDICATED ON CONSERVATIVE COST SAVINGS PROJECTIONS AND NO REVENUE
ENHANCEMENTS:
(Dollars in Millions)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
2000 2001
- --------------------------------------------------------------------------------
<S> <C> <C>
Dime Stand Alone Net Income(1) $ 269 $ 299
Hudson United Stand Alone Net Income(1) 147 164
Cost Savings (After-tax) 24 50
Other (After-tax)(2) 4 8
----- -----
Pro Forma Net Income $ 444 $ 521
Dime United Pro Forma EPS $3.89 $4.56
Hudson United Stand Alone EPS 2.83 3.16
Accretion/(Dilution) 37.4% 44.5%
Dime Stand Alone EPS $2.39 $2.66
Accretion/(Dilution) (4.9)% 0.1%
- --------------------------------------------------------------------------------
</TABLE>
(1) Based on IBES EPS estimates.
(2) Includes tax savings and reinvestment of synergies net of interest
costs.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 34
A UNIQUE INVESTMENT OPPORTUNITY
- --------------------------------------------------------------------------------
VALUE CREATION RESULTING FROM THE TRANSACTION IS BOTH SIGNIFICANT AND
PROPORTIONALLY SHARED AMONG BOTH SHAREHOLDER BASES:
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DME HU PRO FORMA
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Market Capitalization $1,986 $1,569 $3,554
2000E Net Income 270 147 417
Implied P/E Multiple 7.4x 10.6x 8.5x
Cost Savings (Fully Phased In) - - $ 50
% Ownership 56% 44% 100%
Cost Savings per Partner $ 28 $ 22 50
Weighted Average Multiple 8.5x
Impact of Applying Weighted
Average Multiple on Synergies $ 238 $ 188 $ 426
Pro Forma Market Cap 2,224 1,757 3,981
- --------------------------------------------------------------------------------
% THEORETICAL INCREASE IN MARKET VALUE 12.0% 12.0% 12.0%
- --------------------------------------------------------------------------------
</TABLE>
Note: Market data as of September 14, 1999.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 35
A UNIQUE INVESTMENT OPPORTUNITY
- --------------------------------------------------------------------------------
VALUE CREATED BY REALIZATION OF COST SAVINGS COULD BE SIGNIFICANTLY ENHANCED
WITH MULTIPLE EXPANSION:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
PRO FORMA(1) IMPLIED
DIME UNITED PEER GROUP(2) UPSIDE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Pro Forma Market Cap. $3.6 Billion - -
Implied Multiple to:
1999E EPS 8.5x 13.0x 54%
2000E EPS 7.7 11.8 53
Book Value 1.69 2.39 41
Tangible Book Value 2.39 3.16 32
- --------------------------------------------------------------------------------
</TABLE>
Note: Market data as of September 14, 1999.
(1) Includes full phase-in of synergies.
(2) Includes Associated, M&T, North Fork and Summit pro forma for all
announced acquisitions.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 36
CONCLUSION
- --------------------------------------------------------------------------------
- - Creates the 5th largest Mid-Atlantic regional bank
- - Concentrated market shares in U.S.' most affluent markets
- - Profitability compares favorably with that of its Regional Peer Group
- - Experienced commercial bank management team
- - Low risk/high potential transaction
(Downward Pointing Arrow)
- -------------------------------------------------------------------------
CREATING SIGNIFICANT FRANCHISE AND SHAREHOLDER VALUE
- -------------------------------------------------------------------------
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 37
APPENDIX
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 38
COMBINED BALANCE SHEET
- --------------------------------------------------------------------------------
(As of June 30, 1999; In Millions)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DIME HUDSON UNITED COMBINED
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and Short-Term Investments $ 6,385 $4,044 $10,429
Net Loans 13,929 5,192 19,121
Goodwill 531 110 641
Other Assets 1,924 350 2,274
------- ------ -------
Total Assets $22,769 $9,695 $32,465
LIABILITIES AND EQUITY
Deposits $14,725 $6,971 $21,696
Borrowings 5,398 1,896 7,294
Other Liabilities 1,000 156 1,156
------- ------ -------
Total Liabilities $21,123 $9,023 $30,146
Capital Securities 152 125 277
Common Equity 1,493 547 2,040
------- ------ -------
Total Liabilities and Equity $22,769 $9,695 $32,465
- --------------------------------------------------------------------------------
</TABLE>
NOTE: INCLUDES ALL PENDING ACQUISITIONS.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 39
COMBINED INCOME STATEMENT
- --------------------------------------------------------------------------------
(For the Quarter Ended June 30, 1999 Annualized; In Millions)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DIME HUDSON UNITED (1) COMBINED
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest Income $1,340 $642 $1,982
Interest Expense 780 294 1,074
------ ---- ------
Net Interest Income $ 560 $348 $ 908
Provision for Loan Losses 30 18 48
Non-Interest Income 610 88 698
Non-Interest Expense 754 242 996
------ ---- ------
Pretax Income $ 386 $175 $ 561
Net Income $ 243 $116 $ 359
- --------------------------------------------------------------------------------
</TABLE>
(1) INCLUDES PENDING POOLING-OF-INTERESTS TRANSACTIONS.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 40
DIME FINANCIAL TRENDS
- --------------------------------------------------------------------------------
SELECTED FINANCIAL DATA
(In Millions)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
1996 1997 1998 2Q 1999
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PERFORMANCE DATA(1)
ROAA 0.52% 0.60% 1.11% 1.15%
ROAE 10.4 11.0 17.8 16.7
Net Interest Margin 2.40 2.51 2.68 2.94
Fee Income/Total Revenues 17.6 21.6 34.7 40.4
Efficiency 51.8 52.0 54.6 51.2
BALANCE SHEET DATA(2)
Total Loans $10,738 $12,985 $12,748 $14,063
Total Deposits 12,857 13,847 13,651 14,725
Total Assets 18,870 21,848 22,321 22,769
Total Equity(3) 1,022 1,511 1,548 1,646
Loans/Deposits 83.5% 93.8% 93.4% 95.5%
Equity/Assets 5.42 6.92 6.93 7.23
CREDIT QUALITY
Reserves/Total Loans(2) 0.99% 0.81% 0.82% 0.86%
Net Charge-off Ratio 0.61 0.55 0.24 0.11
- --------------------------------------------------------------------------------
</TABLE>
(1) As reported for year end and second quarter annualized for 1999.
(2) Includes pending acquisitions.
(3) Includes capital securities.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 41
HUDSON UNITED FINANCIAL TRENDS
- --------------------------------------------------------------------------------
SELECTED FINANCIAL DATA
(IN MILLIONS)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
1996 1997 1998 2Q 1999
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PERFORMANCE DATA(1)
ROAA 1.50% 1.67% 1.46% 1.45%
ROAE 20.0 24.4 21.9 23.3
Net Interest Margin 5.05 5.20 4.10 4.15
Fee Income/Total Revenues 17.0 17.5 18.2 20.1
Efficiency 54.0 50.4 49.6 46.7
BALANCE SHEET DATA(2)
Total Loans $4,854 $4,907 $4,871 $5,269
Total Deposits 6,690 6,777 6,773 6,971
Total Assets 8,258 8,650 8,898 9,695
Total Equity(3) 672 744 746 672
Loans/Deposits 72.6% 72.4% 71.9% 75.6%
Equity/Assets 8.14 8.60 8.38 6.93
CREDIT QUALITY
Reserves/Total Loans 1.70% 1.73% 1.56% 1.52%
Net Charge-off Ratio 0.70 0.50 0.95 0.55
- --------------------------------------------------------------------------------
</TABLE>
(1) Not restated for pooling-of-interests transactions.
(2) Restated for pooling-of-interests transactions.
(3) Includes capital securities.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 42
DIME GOODWILL LAWSUIT
- --------------------------------------------------------------------------------
DIME UNITED MAINTAINS THE GOODWILL LAWSUIT CLAIM AGAINST THE U.S. GOVERNMENT:
- - Dime's case expected to go to trial by year end 2000
- - Write-off of approximately $560MM of supervisory goodwill and capital
credit:(1)
- Represents approx. 115% of goodwill written-off by Glendale
- Glendale awarded approx. $900MM in damages
(1) $717 million of regulatory capital.
[Dime Logo] [Hudson United
Bank Logo]
<PAGE> 43
HUDSON UNITED BANCORP, INC.'S ACQUISITIONS
- --------------------------------------------------------------------------------
FRANCHISE SUCCESSFULLY BUILT THROUGH SERIES OF STRATEGIC ACQUISITIONS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PURCHASE
INSTITUTION DATE PRICE PAID ASSETS DEPOSITS LOANS MARKET
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Westport Bancorp, Inc. 12/96 $ 68 $ 313 $ 259 $ 183 CT
The Bank of Southington 1/98 27 134 122 85 CT
Security National Bank & Trust 2/98 11 85 77 48 NJ
Poughkeepsie Financial 4/98 136 875 611 648 NY
MSB Bancorp 5/98 115 765 686 375 NY
First Union Branches 6/98 32 NA 320 0.4 NJ
Community Financial 8/98 30 163 137 87 NJ
Dime Financial 8/98 201 1,019 817 374 CT
IBS Financial 8/98 227 738 560 218 NJ
FNB Branch Purchase 3/99 9 141 151 - CT
Little Falls Bancorp, Inc. 5/99 55 351 234 153 NJ
Advest Bank Asset Purchase pending 2 196 150 159 CT
Southern Jersey Bancorp pending 54 452 429 231 NJ
JeffBanks pending 374 1,858 1,245 1,265 PA/NJ
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
[Dime Logo] [Hudson United
Bank Logo]