Ambanc Holding Co., Inc. Reports Net Income for the First Quarter of 2001 And Increased Quarterly Dividend.

Business Editors

AMSTERDAM, N.Y.--(BUSINESS WIRE)--April 24, 2001

Ambanc Holding Co., Inc. (NASDAQ: AHCI) (the Company), the parent company of Mohawk Community Bank (the Bank), Amsterdam, New York, today reported net income for the quarter ended March 31, 2001.

Net income for the quarter ended March 31, 2001 was $1.4 million, or $0.32 (cents) diluted earnings per share, up from $984 thousand, or $0.21 (cents) diluted earnings per share, from the same quarter of the previous year. Significantly impacting net income for the quarter ended March 31, 2001 was a $1.0 million ($634 thousand after-tax) curtailment gain recorded in non-interest income related to the freezing of benefit accruals and participation in the Company's defined benefit pension plan.

The Company further reported that the Board of Directors has declared an increase in this quarter's cash dividend. The quarterly dividend will be $0.16 (cents) per share on the outstanding common stock of the Company, payable on June 1, 2001, to shareholders of record of the Company on May 15, 2001, as compared to the dividend for the quarter ended December 31, 2000, which was $0.15 (cents) per share.

At March 31, 2001, total assets were $714.5 million compared to total assets of $706.6 million as of December 31, 2000. This increase, in part, was the result of the Company's purchase of $10.0 million of bank-owned life insurance during the quarter. Likewise, deposits increased $7.1 million to $485.7 million at March 31, 2001 from $478.6 million at December 31, 2000. Shareholders' equity was $78.1 million, or $18.05 per share, and $77.1 million, or $17.57 per share, at March 31, 2001 and December 31, 2000, respectively. Book value per share amounts exclude unallocated ESOP shares and unvested Recognition and Retention Plan shares.

Ambanc Holding Co., Inc. is a unitary savings and loan holding company. The Company's primary subsidiary, Mohawk Community Bank, serves customers through seventeen upstate New York offices, located in Fulton, Montgomery, Schenectady, Saratoga, Albany, Otsego, Chenango and Schoharie counties. The Bank's deposits are insured up to the maximum legal amount by the Federal Deposit Insurance Corporation (FDIC). The Company's common stock is traded on the NASDAQ National Market, under the symbol "AHCI".

The foregoing material may contain forward-looking statements. We caution that such statements may be subject to a number of uncertainties and actual results could differ materially and, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Selected Consolidated
Financial Condition Data                  Mar 31,            Dec 31,
                                            2001               2000

                                            (Dollars in thousands)

Total assets                           $   714,454      $   706,636
Securities available for sale              138,335          138,990
Loans receivable, net                      457,896          459,958
Deposits                                   485,712          478,592
Borrowed funds                             142,352          143,935
Shareholders' equity                        78,054           77,122


                                              Three Months Ended
Selected Consolidated                       Mar 31,          Mar 31,
Operating Data                                2001             2000

              (Dollars in thousands, except share and per share data)

Interest and dividend income              $ 12,146        $  12,544
Interest expense                             7,136            7,028
Net interest income                          5,010            5,516
Provision for loan losses                      120              120
Net interest income after
  Provision for loan losses                  4,890            5,396
Non-interest income                          1,559              489
Non-interest expenses                        4,048            4,178
Income before income tax expense             2,401            1,707
Income tax expense                             985              723
Net income                                 $ 1,416         $    984
Basic earnings per share                   $ 0.33           $ 0.21
Diluted earnings per share                 $ 0.32           $ 0.21
Weighted average shares
outstanding-basic                        4,350,543        4,669,625
Weighted average shares
outstanding-diluted                      4,452,431        4,691,976


                                                  Three Months Ended
Selected Consolidated Financial                   Mar 31,     Mar 31,
Ratios and Other Data:                              2001        2000

Return on average assets (1)                       0.82%        0.55%
Return on average equity (1)                       7.45         5.23
Interest rate spread                               2.31         2.51
Net interest margin (2)                            2.99         3.15
Efficiency ratio (3)                              70.71        67.31
Ratio of average earning assets to
   Average interest-bearing liabilities          116.03       115.85


                                                 Mar 31,      Dec 31,
                                                   2001         2000

Asset Quality Ratios:
Non-performing assets to total assets (1)          0.49%         0.51%
Non-performing loans to total loans                0.72          0.70
Allowance for loan losses to
  Non-performing loans                           172.68        176.99
Allowance for loan losses to total
  Loans                                            1.24          1.23

Capital Ratios:
Equity to total assets at end of period (1)       10.92         10.91

(1) Period end and average asset and equity amounts reflect securities
    available for sale at fair value, with net unrealized
    gains/losses, net of tax, included as a component of equity.

(2) Net interest income divided by average earning assets.

(3) The efficiency ratio represents non-interest expenses (excluding
    real estate owned and repossessed assets expenses, net, the
    amortization of goodwill, and significant non-recurring expenses)
    divided by the sum of net interest income and non-interest income
    (excluding net gains (losses) on securities transactions and
    significant non-recurring income).