UNDERSTANDING OUR MARKETS possess lower average servicing costs than comparable single-family loans, the tremendous density  of our marketplace creating large average branch deposit balances, and our utilization of a targeted database marketing strategy, that helps generate deposit and “share of wallet” growth at reduced administrative costs, continued to help us optimize our operating efficiency. In addition to the financial results shown above, we increased our quarterly cash dividend by 20% in July 2002. We further increased the quarterly cash dividend by an additional 17% in January 2003. We also repurchased 382,716 shares of our common stock into treasury during the six months ended December 31, 2002, both expressing our continued confidence in our own stock as an investment, and providing needed support during periods of market weakness. At December 31, 2002, we still had approximately 830,500 shares eligible for future repurchase under our previously authorized stock repurchase program. As we look to the upcoming years, our continued growth in core deposits, emphasis on deposit growth as our primary source for funding asset growth, and the recent restructuring of a substantial portion of our borrowed funds, give our balance sheet improved insulation from the effects of a  possible increase in interest rates. In addition, by growing our capital ratio over the past few years, we have provided ourselves the  flexibility to obtain funding for asset growth in the event that interest rates increase and loan and mortgage-backed securities amortization levels decline. Management continues to remain vigilant about the possibility and impact of future interest rate actions by the Federal Open Market Committee. We also continue to be focused on maintaining  our mortgage loan portfolios outstanding credit quality, controlling costs, and building our banking franchise in order to extend DCOM's track record of growth and progress. 6 Kenneth J. Mahon Executive Vice President and Chief Financial Officer Brooklyn Borough President Marty Markowitz congratulates Mr. Mahon, along with  Mr. Devine and Mr. Palagiano at  Dime Savings’ Bay Ridge grand opening. “ I  didn’t realize it while growing up, but the ships built at the Navy Yard played a major role in the  history of this country.”