Deals to Double Dime's Business, Extend Its Reach

Dime Savings Bank of New York will almost double its residential loan business and greatly increase its geographic reach following two deals this week.

Dime, a wholly owned subsidiary of Dime Bancorp, has purchased the residential loan origination business of National Mortgage Investments Co., Griffin, Ga., and signed an agreement to purchase that of James Madison Mortgage Co., Fairfax, Va.

The latter deal is expected to close within the next 60 days, according to the agreement signed with James Madison's parent company, First Commonwealth Savings Bank, Alexandria.

National Mortgage Investments Co., a subsidiary of NF Holding Co., closed loans totaling more than $557 million in the fiscal year ending Feb. 28, making it one of the largest residential loan providers in the greater Atlanta market. The company has 24 retail offices in Georgia, Virginia, South Carolina, Tennessee, and Maryland.

James Madison Mortgage closed loans totaling more than $447 million in 1994, and placed second in Washington area among residential loan providers for the first half of 1995. It operates five retail offices in Virginia and Maryland, and regional wholesale offices in South Carolina and Virginia.

In 1994, Dime closed more that $940 million in residential loans, and ranked second in market share in metropolitan New York. The thrift also has a growing lending presence in Pennsylvania and Arizona.

With these acquisitions, Dime is continuing its "strategy of controlled growth in mortgage originations" outside its core residential lending area of New York, New Jersey, Connecticut, and Pennsylvania, according to chairman and chief executive James M. Large Jr.

Headquarters for both National Mortgage Investments and James Madison will remain in their current locations, and both will continue to operate under their own names.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER