DEEPENING OUR RELATIONSHIPS OUR  During the twelve months ended December 31, 2002, total loan originations were a record $717 million and represented 35 percent of the beginning loan portfolio. Multi-family residential and commercial  real estate loans were well over 90 percent of calendar 2002 originations. The average size of our  multi-family and commercial real estate loans approximates $1.4 million.  At Dime Savings, we believe that our underwriting standards are the cornerstone of our loan portfolio. Our stringent lending policies and procedures are based upon a frequent re-evaluation of economic  conditions, trends and other factors that could impact real estate values. Our property valuation  methodologies have been an effective tool in mitigating risk from changing real estate prices. The best measure of our success has been, and continues to be, the fact that the majority of our lending continues to  come from existing customers. The outstanding credit quality maintained by Dime Savings reflects our strong underwriting standards. Non-performing loans at December 31, 2002 were $2.1 million, or one-tenth of one percent of total loans. Non-performing assets remained at or below one-tenth of one percent of total assets throughout all of the calendar year 2002. In December 2002, Dime Savings sold approximately $73.4 million of recently originated loans with an original term of over seven years, completing almost 37% of the initial target. OUR  The partnership with Fannie Mae should provide Dime Savings additional lending  opportunities within our niche multi-family residential lending market, helping us  maintain our leadership position. The partnership will additionally provide critical  asset management flexibility to Dime Savings during the current low interest rate  environment. Finally, the partnership with Fannie Mae should provide Dime Savings with increased fee income and less reliance on spread income.  We truly believe that the combination of our proven niche lending expertise, our deep relationships with our lending customers (both brokers and building owners), and the benefits derived from our newly formed Fannie Mae partnership should continue to  help position DCOM ahead of its peers in future performance. 9 The best measure of  our success has been the fact that the majority of our lending continues  to come from existing  customers.  Multi-family residential buildings are Dime Savings’ primary loan product, and relationships drive this successful lending niche. In December 2002, Dime Savings entered into a multi-family seller/servicing pact with Fannie Mae. The agreement envisions that Dime Savings will sell at least $200 million of loans to Fannie Mae  over the 18-month period ending in May 2004.