UNDERSTANDING OUR MARKETS “ Whenever I cross this bridge into New York, I always feel a little nostal- gic — and I can’t wait to cross it again on my way Dime Savings provides commercial real estate loans on buildings housing countless  community-based businesses throughout  the New York City metropolitan area. A Leader in Multi-family Residential Lending  Multi-family lending plays to our strength as a community bank with a strong local presence. Dime Savings leadership in multi-family residential lending has been built by an understanding of the dynamics of the multi-family residential real estate market in New York City. It has also been enhanced by the strong relationships that the members of our lending group have built with both  real estate brokers and building owners throughout the local community. Multi-family residential lending is an attractive niche. These loans typically have lower servicing costs per loan than one- to four-family residential loans, and include built-in prepayment fees. All of this makes them less costly to originate and more resistant to price depreciation throughout  the interest rate cycle. The relatively low costs associated with multi-family originations, combined with our focus on controlling costs throughout our operations, has made us one of the most efficient banking companies of our size in the nation. Rent regulations are another favorable market dynamic and are a major influence in the New York City residential real estate market, where vacancy rates are always low. Approximately 55 percent of all rental units within New York City are subject to rent stabilization, while approximately 70 percent of Dime Savings’ multi-family loan portfolio is secured by rent stabilized buildings. Rents in such buildings tend to be within reach of most families, including those with low to moderate incomes. This tends to promote stability in this segment of the market and lower vacancy levels in the event  of downturns in the local real estate market.  The majority of our multi-family residential loan agreements are reached through broker intermediaries who shop for the best possible loan on behalf of the building owner. Occasionally, individual building owners will seek financing independently with the Bank, and we gladly respond to their requests. Having actively served our niche multi-family residential market for over  30 years, we recognize how important strong relationships with these brokers and  building owners are to our continued success. Our track record with both the brokerage firms and individual real estate owners to whom we lend has been, and continues to be, solid. What sets Dime Savings apart in a market where rates have become extremely competitive? Customer service. The efficient organization and execution of our underwriting process allows us to both generate rapid commitment offers to our prospective borrowers, and, subsequently generate timely turnaround in bringing accepted commitment offers to close. In addition, as established business people in our local community, we recognize the importance of integrity. Our underwriters have an established reputation with their customers for honoring the terms of their initial commitment offer. 8