|
|
As the financial crisis that began with sub-prime loans has persisted and become more wide spread, many consumers are becoming more confused and concerned. We are all being inundated with a daily barrage of bad news about our banking system by the national media, especially the TV pundits. That news has been heightened by the poor earnings reports that many banks have released for the first half of the year, and even more so by the troubles Fannie Mae and Freddie Mac have been experiencing, along with the failure of IndyMac, a California bank.
The uncertainty of all of this has caused our customers to ask if we have been affected by this crisis and by extension will they? To answer that question let me say first, our philosophy has always been that our depositors rely on us to protect and safeguard their funds so that they are not exposed to loss. With that thought in mind, Dime did not make any sub-prime loans nor did we invest in any securities that were backed by sub-prime loans. We, therefore, do not have any direct exposure to any of the mortgages that have caused this crisis. Second, unlike many other banks, our earnings through the first half of the year are at a record pace.
Will we be affected in some way by the deteriorating financial condition of the overall market? The answer to that is most banks, if not all, will be affected to some degree. Thankfully, I'm happy to report that Dime will not be in any meaningful way. We have identified any indirect exposure we have to the weakening financial sector and have taken the necessary steps to overcome that exposure.
Another question posed to us by our customers is: Is Dime in jeopardy of being acquired? Dime, as a mutual institution, does not issue stock. Since we do not issue stock, neither do we, or our customers, need to be concerned with a larger bank acquiring us. As a mutual, WE CANNOT BE ACQUIRED! Also, as a mutual, our focus is on our depositors and the community. We are not pressured by shareholders' expectations, which might cause us to take unnecessary risks to maintain or improve profits to shore up the price of our stock.
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. Those qualities are what should be weighed when choosing an institution. Additionally, the FDIC insures Dime deposits.
All of the upheaval in the financial markets is terribly unfortunate and devastating to many institutions and people throughout the country. We hope this letter eliminates any of your concerns as they relate to Dime. If you have any other questions, please do not hesitate to contact us directly.
Sincerely,
President & CEO, Dime Bank
Phone 860-859-4300 |
