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FIVE YEAR TREND
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($ in Millions, Except Per Share Data)
At or For the Year Ended December 31,
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1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C>
Net Operating Earnings $244 $217 $157 $121 $79
Operating EPS 2.17 1.89 1.45 1.11 0.72
Return on Assets 1.11% 1.02% 0.78% 0.61% 0.38%
Return on Equity 16.74 16.34 14.25 12.00 8.29
Net Interest Margin 2.91 2.68 2.51 2.40 2.07
Efficiency Ratio 51.40 53.91 51.17 52.55 59.83
NPAs/Assets 0.36 0.37 0.67 1.30 1.55
Reported results adjusted for special or unusual items.
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SECOND QUARTER HIGHLIGHTS
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($ in Millions, Except Per Share Data)
2Q 00 2Q 99 Change
----------------- ----------------- ---------------
<S> <C> <C> <C>
Net Earnings $66.6 $60.8 +10%
Earnings per Share $0.60 $0.54 +11%
Return on Equity 17.14% 16.73% +41 b.p.
Net Interest Income $156 $140 +12%
Fee Income $99 $92 +7%
Non-Performing Assets $84 $89 (5%)
Reported earnings adjusted for special or unusual items.
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WHAT WAS THE STRATEGIC REVIEW PROCESS?
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Objective: Comprehensive review of all strategic options
- Detailed review of Dime's business plan
- Discussions with potential merger partners
} Confidentiality Agreements signed and information exchanged
- Reviewed options with financial partners
- Considered NFB proposal
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WHY NOT NORTH FORK PROPOSAL?
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- Double digit dilution to Dime stockholders
- Does not provide Dime stockholders with a control premium
- Based on unachievable and unrealistic assumptions
- NFB's offer of 7.3x 2000E EPS is far below comparable transactions
- CSFB and Merrill Lynch rendered inadequacy opinions
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WHY NO DISCUSSIONS WITH NORTH FORK?
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- NFB's offer represents no control premium and was deemed inadequate
- Sufficient material is available through NFB's extensive regulatory filings
to understand their offer and its assumptions
- Events reinforced original concerns about North Fork's proposal
} NFB missed 2 consecutive quarterly earnings estimates
} NFB's stock has underperformed the S&P Regional Bank Index by 20% since
announcing the offer
- NFB indicated on a June 27th conference call that it would not raise its
bid meaningfully
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WHAT WERE THE RESULTS?
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- Discussions with Potential Merger Partners Yielded No Proposals for Dime
- $238 Million Investment by Warburg Pincus
- Tony Terracciano Named Chairman
- Dutch Auction Tender Offer for 12.5% of Dime's Shares
- Spin-Out of Litigation Tracking Warrants to Dime Shareholders
- Phase-out of Stockholder Rights Plan
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WHY WARBURG PINCUS?
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Warburg-Pincus North Fork
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<S> <C> <C>
Advisors' Opinions Fair Inadequate
Non-dilutive until stock reaches $21.50; only 1% Permanent double-digit dilution
Dilution dilutive at $25.00
Control Premium Retained by DME stockholders Out of Dime stockholders' hands
Risks Extension of existing strategy Substantial integration risks
Benefit Dutch Auction tender at Transaction value uncertain
$16-$18 cash
Goodwill Lawsuit Distributed to Dime stockholders Shared with NFB stockholders
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BENEFITS OF WARBURG PINCUS INVESTMENT
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- Affirms that franchise is currently undervalued
- Affirms franchise value potential
- Non-dilutive until stock rises to $21.50; more than 20% above the NFB offer
- Dutch Auction provides cash-out at values consistent with NFB without the
integration risk
- Does not foreclose future sale of the Company
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