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 15, 2000
Dime Bancorp, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 001-13094 11-3197414
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(State or Other Jurisdiction) (Commission (IRS Employer
File Number) Identification No.)
589 Fifth Avenue
New York, New York 10017
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 326-6170
Not applicable
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
On September 15, 2000, Dime Bancorp, Inc. issued the following press
release:
September 15, 2000
00/29
FOR IMMEDIATE RELEASE
DIME ANNOUNCES PROFIT IMPROVEMENT INITIATIVES
Sale of Up to $2 Billion in Securities; $50 Million Expense Reduction
NEW YORK -- September 15, 2000 -- Dime Bancorp, Inc. (NYSE:DME) announced today
profit improvement initiatives, including the sale of approximately $2 billion
of its securities portfolio and a series of actions intended to reduce annual
expenses by $50 million. The cost reductions, which are expected to have a
positive effect on 2001 earnings, are estimated to result in a restructuring
charge of approximately $38 million, pre-tax. A substantial portion of the
charge will be taken in the third quarter.
Tony Terracciano, Chairman of Dime, said, "Dime has made significant strides in
improving its performance and executing its strategy to become more commercial
bank-like. These include sixteen consecutive quarters of increased operating
earnings and changing its loan mix, as well as increasing core deposits.
However, in order to compete effectively in tomorrow's environment, an
institution must use a combination of smart technology and an efficient
organizational structure that is highly-focused on increasing revenues and
building stockholder value. These profit improvement initiatives are designed to
improve our productivity while positioning Dime to take full advantage of new
technology to deliver a more extensive product set and higher levels of
satisfaction to our customers."
Lawrence J. Toal, Chief Executive Officer of Dime, commented, "The planned sale
of investment securities and expense reduction initiatives are a follow-on to
our recently completed review of strategic alternatives. Our cost reduction
efforts are focused on improving earnings through operational efficiencies while
protecting existing revenues and maintaining a solid base for continued growth.
At the same time, the portfolio repositioning should improve our net interest
margin and interest rate risk profile as well as free up capital for our
business banking and consumer banking businesses--operations that we have
identified as having higher growth opportunities."
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As part of its cost reduction efforts, the company will eliminate approximately
400 positions prior to year-end through a combination of attrition, a voluntary
reduction program and staff reductions. Approximately three-quarters of the
positions being eliminated are in the Dime's banking subsidiary, The Dime
Savings Bank of New York, FSB, with an emphasis on reducing management and staff
positions in support units. Dime is also consolidating selected operational
functions and facilities. Dime has approximately 6,500 Full Time Equivalent
employees, including 3,800 FTEs in North American Mortgage Company, its mortgage
banking subsidiary.
Reflecting the planned sale, Dime's securities portfolio would be reduced to $2
billion, or approximately half of the securities portfolio at June 30, 2000.
Dime said that the sale would not affect stockholders' equity, but would result
in a one-time charge of approximately $87 million, pre-tax, in the 2000 third
quarter.
At June 30, 2000, Dime had assets of $25.3 billion, deposits of $14.3 billion,
and stockholders equity of $1.6 billion. Dime Bancorp is the parent company of
Dime Savings Bank (www.dime.com), a regional bank serving consumers and
businesses through 127 branches located throughout the greater New York City
metropolitan area. Directly and through North American Mortgage Company
(www.namc.com), Dime also provides consumer loans, insurance products and
mortgage banking services throughout the United States.
Certain statements in Dime's press releases may be forward-looking. A
variety of factors could cause Dime's actual results and experience to differ
materially from the anticipated results or other expectations expressed in such
forward-looking statements. The risks and uncertainties that may affect the
actions mentioned above, as well as the operations, performance, development,
and results of Dime's business, include litigation, interest rate movements,
competition from both financial and non-financial institutions, changes in
applicable laws and regulations, the timing and occurrence (or non-occurrence)
of transactions and events that may be subject to circumstances beyond Dime's
control and general economic conditions.
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CONTACT:
Abernathy MacGregor Group, New York Dime
Mike Pascale/Rhonda Barnat Franklin L. Wright
(212) 317-5999 (212) 326-6170
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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/ James E. Kelly
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Name: James E. Kelly
Title: General Counsel
Date: September 15, 2000
