Ambanc Holding Co., Inc. Reports Net Income for the Second Quarter of 2000 and Increase In Quarterly Dividend.

    Business Editors

      AMSTERDAM, N.Y.--(BUSINESS WIRE)--Aug. 4, 2000--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 June 30, 2000.
      The Company reported that the Board of Directors has declared an
increase in this quarter's cash dividend. The quarterly dividend will
be $0.13 (cents) per share on the outstanding common stock of the
Company, payable on September 1, 2000, to shareholders of record of
the Company on August 15, 2000, as compared to the dividend for the
quarter ended March 31, 2000, which was $0.12 (cents) per share.
      John M. Lisicki, President & Chief Executive Officer stated: "We
are pleased to be able to once again increase our quarterly dividend.
The increase to $0.13 (cents) per share marks the sixth consecutive
quarter in which our dividend has been increased and the amount
represents an increase of 117% from the time of the merger with AFSALA
Bancorp."
      Net income for the quarter ended June 30, 2000 was $929 thousand
compared to $1.1 million for the quarter ended June 30, 1999. Diluted
earnings per share were $0.20 (cents) for the quarter ended June 30,
2000, as compared to $0.22 (cents) for the comparable period of the
previous year.
      Net income for the six months ended June 30, 2000 was $1.9 million
compared to net income of $2.1 million for the corresponding period of
the previous year. For the six months ended June 30, 2000, diluted
earnings per share were $0.41 (cents) as compared to $0.42 (cents) for
the comparable period of the prior year.
      Deposits increased $24.9 million from $450.1 million at December
31, 1999 to $475.0 million at June 30, 2000. During the quarter ended
June 30, 2000, the Company sold approximately $3.0 million in
investments of mortgage-related securities recognizing a loss of $46
thousand. The funds raised from deposits coupled with the proceeds
from the sale of securities were used primarily to pay down and thus
reduce outstanding borrowings. Borrowed funds decreased $47.8 million
from $204.9 million at December 31, 1999 to $157.1 million at June 30,
2000. The shift in liabilities from borrowed funds into shorter-term
deposits is part of the Company's continuing effort to reduce interest
rate risk.
      As announced on July 27, 2000, the Company intends to commence a
tender offer for Cohoes Bancorp, Inc. in which it will seek to acquire
all outstanding shares of Cohoes at a price of $16.50 per share in
cash. In addition, the Company has filed preliminary proxy materials
with the Securities and Exchange Commission to solicit Cohoes
stockholders to vote against the proposed sale of Cohoes to Hudson
River Bancorp, Inc.
      At June 30, 2000, total assets were $716.3 million compared to
total assets of $740.7 million as of December 31, 1999. Shareholders'
equity was $76.3 million, or $16.40 per share, and $75.6 million, or
$16.13 per share, at June 30, 2000 and December 31, 1999,
respectively. Book value per share amounts exclude unallocated ESOP
shares and unvested Recognition and Retention Plan shares. continued
      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. Ambanc 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.
-0-
*T
Selected Consolidated                June 30,         Dec 31,
Financial Condition Data              2000             1999
                                         ( In thousands)

Total assets                     $   716,261      $   740,672
Securities available for sale        205,066          212,145
Loans receivable, net                460,551          465,477
Deposits                             475,021          450,134
Borrowed funds                       157,089          204,905
Shareholders' equity                  76,321           75,593

                                         Three Months Ended
Selected Consolidated                June 30,         June 30,
  Operating Data                       2000             1999
                                    (In thousands, except share
                                        and per share data)

Interest and dividend income     $    12,436      $    11,957
Interest expense                       6,990            6,451
Net interest income                    5,446            5,506
Provision for loan losses                120              240
Net interest income after
 provision for loan losses             5,326            5,266
Non-interest income                      376              438
Non-interest expense                   4,135            3,836
Income before income tax expense       1,567            1,868
Income tax expense                       638              776
Net income                       $       929      $     1,092

Basic earnings per share         $      0.20      $      0.22
Diluted earnings per share       $      0.20      $      0.22
Weighted average shares
 outstanding-basic                 4,627,006        4,993,494
Weighted average shares
 outstanding-diluted               4,666,262        5,058,050


                                        Six Months Ended
Selected Consolidated                 June 30,       June 30,
  Operating Data                        2000           1999
                                      (In thousands, except share
                                         and per share data)

Interest and dividend income     $    24,980      $    23,921
Interest expense                      14,018           13,022
Net interest income                   10,962           10,899
Provision for loan losses                240              495
Net interest income after
 provision for loan losses            10,722           10,404
Non-interest income                      865              862
Non-interest expense                   8,313            7,582
Income before income tax expense       3,274            3,684
Income tax expense                     1,361            1,557
Net income                       $     1,913      $     2,127

Basic earnings per share         $      0.41      $      0.43
Diluted earnings per share       $      0.41      $      0.42
Weighted average shares
 outstanding-basic                 4,648,316        5,001,220
Weighted average shares
 outstanding-diluted               4,679,119        5,059,401



                                        Three Months Ended
Selected Consolidated Financial      June 30,        June 30,
Ratios and Other Data:                 2000            1999
Performance Ratios:
Return on average assets (1)           0.52%           0.60%
Return on average equity (1)           4.97            5.17
Interest rate spread                   2.46            2.51
Net interest margin (2)                3.14            3.17
Efficiency ratio (3)                  67.45           62.40
Ratio of average earning
 assets to average interest-bearing
 liabilities                         116.88          117.70


                                          Six Months Ended
Selected Consolidated Financial      June 30,        June 30,
Ratios and Other Data:                 2000            1999
Performance Ratios:
Return on average assets (1)           0.53%           0.59%
Return on average equity (1)           5.10            5.04
Interest rate spread                   2.49            2.49
Net interest margin (2)                3.15            3.15
Efficiency ratio (3)                  67.38           62.04
Ratio of average earning assets to
 average interest-bearing
 liabilities                         116.36          117.69


                                     June 30,         Dec 31,
                                       2000            1999
Asset Quality Ratios:
Non-performing assets to total
 assets (1)                            0.42%           0.61%
Non-performing loans to total loans    0.59            0.89
Allowance for loan losses to
 non-performing loans                201.37          130.86
Allowance for loan losses to total
 loans                                 1.20            1.17

Capital Ratios:
Equity to total assets at end
 of period (1)                        10.66           10.48

(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, and the
    amortization of goodwill) divided by the sum of net interest
    income and non-interest income (excluding net gains (losses) on
    securities transactions).

      --30--ac/ny*

      CONTACT: Ambanc Holding Co., Inc.
               John M. Lisicki, President & CEO [phone]
               [e-mail]
               www.mohawkcommunitybank.com

      KEYWORD: NEW YORK
      INDUSTRY KEYWORD: BANKING EARNINGS