Thrift stocks were mixed in trading Monday after Seattle's Washington Mutual Inc. officially announced its plans to buy Dime Bancorp of New York.
Most analysts said that Washington Mutual's explicit commitment to the metropolitan New York market bodes well for two other huge New York thrifts, Astoria Financial Corp. and GreenPoint Financial Corp. 
Washington Mutual has made it clear it wants to increase its New York market share to 10% or more within two to three years, said James M. Ackor, an equity analyst at Tucker Anthony Sutro Capital. As targets of size and scale, he said, Astoria and GreenPoint "fall squarely in [Wamu's] crosshairs."
James Abbott, an analyst at Friedman Billings Ramsey, said that both thrifts are performing well enough remain independent, but that a banking company might buy them to help boost earnings - or to keep Washington Mutual from stealing the New York market.
Shares of Astoria and GreenPoint rose Monday morning, but settled down after Washington Mutual's conference call with analysts and investors. John Kline, an analyst at Sandler who listened in, said the market "has a lot to digest." During the call Washington Mutual said it would focus for now on integrating Dime but that it was still "opportunistic on the acquisition front," Mr. Kline said.
"I wouldn't rule out any deals," he said. He added, however, that buying a company the size of Astoria might be a stretch for Washington Mutual, at least for the near future.
On a bearish day in the market, Astoria shares fell 1.32%, and GreenPoint shares fell 1.29%. The American Banker index of 225 bank stocks fell 1.44%.
Some analysts say it is a good time in general for thrift stocks, as opposed to other financial stocks, because aggressive reductions in short-term interest rates by the Federal Reserve have boosted what is traditionally their major business line: mortgage lending. This week the Fed is expected to cut interest rates for the sixth time this year.
Thrift stocks have been in vogue over the last year even as commercial bank stocks have lost favor, primarily because, some analysts say, they are safer. "A slowing economy creates credit risk, and investors have chosen to throw their money in thrift stocks, which expose investors to less credit quality risk," Mr. Ackor said.
Some market watchers seemed disappointed in the thrifts' performance Monday. GreenPoint shares were slightly down at market close on Friday and during Monday trading because of speculation that the company would have been attractive a candidate as Dime for Washington Mutual to purchase, said Friedman Billings Ramsey's Mr. Abbott. "It obviously wasn't," he said, "so it traded back close to its fundamental value."
Takeover speculation, said Thomas O'Donnell, an analyst at Salomon Smith Barney, "will start to creep into shares of New York thrifts in light of the Dime acquisition," and investors, he said, "will start looking at New York thrifts as consolidation candidates."
