As appeared in The Westchester Business Journal Monday November 15, 2004

OVERVIEW OF THE COMMERCIAL MORTGAGE MARKET

"City and Suburban Federal Savings Bank (C&S) continues to experience business growth as indicated by its recent openings of two bank branches in the Bronx, and a third bank branch in Manhattan which opened in October 2004. In addition, C&S has increased its employment opportunities throughout its ten branches in Westchester County, the Bronx and Manhattan by 20%," said Joseph J. Laquidara, Senior Vice-President, City & Suburban Federal Savings Bank.

"The commercial mortgage market remains a favorite among investors and lenders", says Laquidara, " as still relatively low interest rates combined with diversified financing trends and products sustain an ideal market environment. This is a trend not only in New York City, but in many northeastern cities. One notable sub-market, northern New Jersey industrial/commercial properties, continues to out-perform other areas, mainly due to its proximity to New York City and the lack of new building in the past five years. This has caused the absorption of existing industrial and commercial spaces and we may be at a point where "new square footage" will be built".

There are now many more lenders competing in the commercial mortgage market, namely, commercial banks, savings banks, conduits, insurance companies, mortgage bankers and non-traditional lenders. In addition, an emergence of more secondary and mezzanine type lenders is expected. This becomes more evident in a rising interest rate market where the first mortgage lender may be lending a lower LTV due to higher operating costs, which creates a new platform for mezzanine lenders.

Real estate mortgages continue to be the most sought after investment for most lenders, whether they are savings banks, commercial banks or others. No other asset type has held up in quality and yield performance over the past several years.

City & Suburban Federal Savings Bank

"During this positive real estate mortgage market C&S continues to be highly competitive for the right product" states Laquidara. "We expect to significantly increase our amount of business due to the resurgence of many neighborhoods throughout the metropolitan area. In addition to first mortgages on multi family, mixed-use and commercial properties, C & S now offers:

· Second mortgages
· Libor-based floating
· Prime-based floating
· Construction mortgages
· Lines of credit
· Co-op apartment end loans
· Co-op apartment end loans in bulk
· Participation lending with other banks
· Business related loans inclusive of real estate
· Broader geographic areas including northern and central New Jersey and southern and central Connecticut.

"City and Suburban Federal Savings Bank (C&S), formally the Tremont Savings and Loan Association, is celebrating its 120th Anniversary in 2004," says Thomas Schettino, President and Chief Managing Officer at City & Suburban Federal Savings Bank.. "As part of our business growth, we at C& S continue to provide our customers with a very special brand of neighborhood banking as we have built a strong tradition of service to the community for growing families and for new and established businesses. We have a long and proud history of service to our customers and the various communities we serve."