Dime Savings Bank to acquire two mortgage banks; adding $1 billion in origination capacity; Dime to acquire the assets relating to the residential mortgage origination businesses of National Mortgage Investments Co. and James Madison Mortgage Co

Business Wire, Oct 5, 1995

NEW YORK--(BUSINESS WIRE)--October 5, 1995--The Dime Savings Bank of New York, FSB today announced that it has purchased the assets relating to the residential loan origination business of National Mortgage Investments Co. of Griffin, Georgia, and has signed a definitive agreement with First Commonwealth Savings Bank of Alexandria, Virginia to purchase the assets relating to the residential mortgage origination business of James Madison Mortgage Co., its wholly- owned subsidiary headquartered in Fairfax, Virginia.

The acquisition of James Madison is expected to close within the next 60 days. The companies' headquarters will remain in their current locations and they will operate under their own names as part of The Dime's Mortgage Banking Division. The terms of the two transactions were not disclosed.

National Mortgage Investments Co., Inc., a subsidiary of NF Holding Co., is one of the largest residential loan providers in the greater Atlanta market. The company closed loans totaling more than $557 million in its last fiscal year ended February 28, 1995 and anticipates exceeding that amount in the current fiscal year. Founded in 1985, the company operates through 24 retail offices in Georgia, Virginia, South Carolina, Tennessee and Maryland.

James Madison Mortgage Co. ranked second in market share among residential loan providers for the Washington, D.C. metro area in the first half of 1995. The company closed loans totaling more than $447 million in 1994 and expects 1995 originations to exceed that amount. Founded in 1940, the company operates through five retail offices in Virginia and Maryland as well as regional wholesale offices in South Carolina and Virginia.

James M. Large, Jr., Chairman and Chief Executive Officer of The Dime, said, "These acquisitions are an important step forward for us in executing our strategy of controlled growth in mortgage originations through the acquisition of lenders who hold leadership positions in markets outside of our core residential lending area of New York, New Jersey, Connecticut and Pennsylvania. These acquisitions also enable us to diversify our portfolio to include loans from two important markets."

The Dime, a wholly-owned subsidiary of Dime Bancorp, Inc. (NYSE: DME), currently ranks second in share of mortgage households among all banks and thrifts in the ten-county New York metropolitan area. In addition, the bank has a growing residential lending presence in Arizona and Pennsylvania. In 1994, The Dime closed more than $940 million in residential loans, and 1995 originations are expected to significantly exceed that amount.

Dime Executive Vice President Jenne K. Britell, General Manager, Mortgage Banking, added, "We've been tremendously impressed by the growth and market leadership displayed by these two companies in recent years. Their staff, operational expertise and tradition of excellence in their markets will be a real asset to The Dime as we continue to enhance our residential mortgage business. The markets served by these companies hold tremendous promise, and these companies' leadership positions in their regions will be invaluable to us."

With $20 billion in assets, $13 billion in deposits and 89 retail banking branches at June 30, 1995, The Dime is the fifth largest publicly-traded thrift in the nation and the largest thrift in the greater New York metropolitan area. The Dime currently services over $14 billion in mortgages for itself and other investors.

CONTACT: Dime, New York

Franklin L. Wright, 212-326-6170

or

McDonough & Associates, New York

Lorna Sheridan, (212) 334-0033