N.Y.'s DIme, Anchor merging in stock deal.

Dime BanCorp and Anchor Bancorp, the two biggest thrift companies in the New York area, said Wednesday they had agreed to merge in a $1.2 billion stock transaction.

The merged company, to be called Dime Bancorp, will be the country's fourth-largest publicly traded thrift, with about $20 billion of assetS. Dime would enhance its standing as the largest thrift on the East Coast, and would add muscle in its battle for market share against New York-area retail giants like Chemical Banking Corp. and Citicorp.

The asset total in the New York region "puts us in the ballpark" with Chemical, Citicorp, and Chase Manhattan Corp., said Richard. D. Parsons, chairman and chief executive of Dime Bancorp, who will hold the same posts at the new Dime. "We're all going after the same retail customers, but this will make us more competitive."

"We believe there is a sub-market in New York -- the middle-to-low-income, blue-collar worker," said James M. Large Jr., Anchor's chairman, who is slated to be president and chief operating Officer after. the merger.

'All We Think About'

"Chemical and Chase do a good job focusing on that market, but they're also thinking about their international business," he said. The local market "is all we think about."

Company officials said the combined entity would have a market capitalization of $1 billion, 94 branches in the New York metropolitan area, and a more-efficient cost structure that will cut some 15% of annual costs, or $50 million, by 1996.

Of the Savings, $20 million to $25 million would come from layoffs of about 500 management and back-office employees, or 15% of the combined work force of 3,400.

Analysts have predicted big consolidations in the New York thrift industry. Paul A. Schosberg, president of the Savings and Community Bankers of America in Washington, said the Anchor-Dime merger is a portent of a new world of mega-thrifts.

"I think we will be seeing a number of $75-, $80-billion thrifts on both coasts in the next three or four years," he said.

Dime and Anchor officials characterized the deal as a merger of equals. The board will be evenly divided between Anchor and Dime directors, but Dime shareholders will have a slight edge, owning 53% of the new bank's stock.

January Close Expected

Anchor shareholders will receive 1.77 shares of Dime Bancorp for each Anchor common share in a tax-free exchange. The merger has been approved by both companies' hoards.

The companies expect to complete the merger in early January, and will take a restructuring charge of about $50 million.

Dime's stock fell on the announcement, dosing at $9.25, down $1.375.

Anchor Bancorp was down 37.5 cents, to $15.50.

"Strategically, this makes sense," said Thomas F. Theurkauf Jr.; a banking analyst at Keefe, Bruyette & Woods.

"Dime will be larger and more efficient, and will be able to reward Dime and Anchor shareholders with improved efficiency."

The combined institution will have deposits of $12.8 billion. Dime Bancorp will have the No. 1 deposit market share in Brooklyn, at 16.91%, and No. 2 in Nassau County, at 8.78%.

The transaction is expected to be accretive to Dime shareholders in 1995, and to Anchor shareholders by 1996.

Mr. Parsons said asset quality has been a concern at the Dime, but he pointed out that nonperforming assets went down, from 11.1% of total assets in December 1991 to 3.5% at March 31.

The thrift expects-to save $3 million to $4 million from the consolidation of six retail offices, $8 million to $13 million from .the integration of systems and back office operations, $1,4 million to 16 million from the elimination of administrative overhead, and $20 million to $25 million from job reductions.

About half the savings, including the layoffs, are likely to come in the first half of 1995, Mr. Large said. Employees have not yet been told who would go.

As in most sizable mergers, there is sure to be a realignment of relationships with operations and technology suppliers. Anchor Bancorp currently relies on Systematics Information Services Inc., a major outsourcing vendor, for its data processing.

Dime Bancorp currently outsources its item processing - including checks and lockbox transactions - to Nationar Inc. of Woodbury, N.Y. The thrift also uses Computer Power Inc, for mortgage servicing and Archer Management Systems for mailroom operations.

Robert Garsson and Karen Epper contributed to this article.

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