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It seems that almost daily we learn of another financial
institution that has announced significant write downs
and concurrent reduction in earnings, if not outright
losses, or has tightened credit as a result of either having
originated sub-prime mortgages or invested in a security
that contains sub-prime mortgages. The uncertainty has
caused people to ask us if Dime is affected by all of this.
As a result of questions asked, and I’m sure others that
have not been asked but have raised concerns in the
minds of many people, we thought it would be helpful
and reassuring for us to respond publicly.
From Dime’s perspective, we have confirmed what we
have always believed: safe, sound, prudent banking is
what keeps you out of trouble. At Dime our philosophy
has been that our depositors rely on us to protect and safe-
guard their funds so that they are not exposed to loss.
Banking by its very nature is a risk-oriented business. The
risks we take, however, should be identified, understood
and acceptable. Our customers expect us to use good
judgment in investing their funds and not take on excessive risk in pursuit of or to pay unreasonable rates of
return. We are keenly aware of that. Beyond depositors’
expectations, we realize, as managers of financial assets,
we have a fiduciary obligation to ensure the safety of the
funds entrusted to us. That is why Dime did not make
any sub-prime loans or invest in any securities that are
now coming back to haunt us.
We want to assure you that Dime is a well-capitalized,
strong earning institution with sound management
practices that will ensure its continued profitability and
strength for years to come. Also, we have not curtailed
our lending activities whatsoever. We have our feet firmly
planted on the ground and our thinking rooted in old
fashion skepticism, which has kept us out of trouble over
our 138 years of existence. We believe firmly in the principal espoused by the Oracle from Omaha, Warren Buffet,
“if it’s something you don’t understand, stay away from it.”
We hope the lesson learned in all of this recent turmoil is
that just because the so-called experts tout something, that
it must be ok, is not necessarily the case. In the financial
world, before jumping into the flavor of the day, it might
be best to come talk to us. We just might be able to save
you a lot of headaches in addition to some money.
Sincerely,
President & CEO, Dime Bank
Phone 860-859-4300
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