Ambanc Holding Co., Inc. Reports Record Net Income for 1999.

Business Editors

AMSTERDAM, N.Y.--(BUSINESS WIRE)--Feb. 16, 2000

Ambanc Holding Co., Inc. (the Company), the parent company of Mohawk Community Bank (the Bank), Amsterdam, New York, today reported record net income for the fiscal year ended December 31, 1999.

Net income for the year ended December 31, 1999 increased $3.3 million or 317.4% to $4.3 million compared to net income of $1.0 million for the year ended December 31, 1998. Diluted earnings per share were $0.87 (cents) for the year ended December 31, 1999, as compared to $0.26 (cents) for the previous year. Net interest income after provision for loan losses increased $6.0 million or 38.5% to $21.7 million for the year ended December 31, 1999 from $15.6 million from the previous year. Likewise, other income increased $659 thousand or 57.6% to $1.8 million for the year ended December 31, 1999 from $1.1 million for the year ended December 31, 1998. Other expenses increased $988 thousand during 1999 from $15.1 million during the year ended December 31, 1998, to $16.1 million during the year ended December 31, 1999, an increase of approximately 6.6%.

Earnings in the fourth quarter of 1999 were negatively impacted by additional professional fees in the amount of $124 thousand in connection with the Company's response to inquires from, and preliminary discussions with, third parties regarding possible business combinations with the Company. These discussions were terminated by the parties in the fourth quarter without reaching any agreements.

At December 31, 1999, total assets were $740.6 million compared to total assets of $735.5 million as of December 31, 1998. Shareholders' equity was $75.6 million, or $16.13 per share, and $85.9 million, or $16.98 per share, at December 31, 1999 and 1998, respectively. Book value per share amounts exclude unallocated ESOP shares and unvested Recognition and Retention Plan shares. During 1999, the Company repurchased 459,000 shares of its common stock.

President and Chief Executive Officer John M. Lisicki stated: "I am extremely pleased with the progress that we have made in this first full year of operation following the merger of Amsterdam Federal Bank and Amsterdam Savings Bank. We have successfully and fully joined the two companies with a relative minimum of disruption and a fairly high degree of customer retention. We take pride in having increased our cash dividend by 83% during 1999 and we are committed to enhancing shareholder value in our Company."

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".

Selected Consolidated              Dec 31,           Dec 31,
Financial Condition Data            1999               1998
                                    (Dollars in thousands)

Total assets                     $ 740,557        $   735,472
Securities available for sale      212,145            244,241
Loans receivable, net              465,477            420,933
Deposits                           450,019            461,413
Borrowed funds                     204,905            173,810
Shareholders' equity                75,593             85,893

                                           Years Ended
Selected Consolidated              Dec 31,             Dec 31,
Operating Data                      1999                1998

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

Interest and dividend income     $  48,767        $    38,973
Interest expense                    26,319             22,441
Net interest income                 22,448             16,532
Provision for loan losses              790                900
Net interest income after
  provision for loan losses         21,658             15,632
Other income                         1,803              1,144
Other expenses                      16,063             15,075
Income before income tax expense     7,398              1,701
Income tax expense                   3,095                670
Net income                       $   4,303         $    1,031

Basic earnings per share         $    0.88         $     0.26
Diluted earnings per share       $    0.87         $     0.26
Weighted average shares
 outstanding-basic               4,877,510          3,916,047
Weighted average shares
 outstanding-diluted             4,935,127          3,989,245


                                          Years Ended
Selected Consolidated Financial      Dec 31,            Dec 31,
Ratios and Other Data:                1999               1998
Performance Ratios:
Return on average assets (1)          0.59%              0.18%
Return on average equity (1)          5.26               1.64
Interest rate spread                  2.57               2.32
Net interest margin (2)               3.21               3.04
Efficiency ratio (3)                 63.79              74.44
Ratio of average earning assets
 to average interest-bearing
 liabilities                        117.24             117.28

                                     Dec 31,            Dec 31,
                                      1999               1998
Asset Quality Ratios:
Non-performing assets to
 total assets (1)                     0.61               0.45
Non-performing loans to
 total loans                          0.89               0.68
Allowance for loan losses to
  non-performing loans              130.86             168.42
Allowance for loan losses
 to loans receivable                  1.17               1.15

Capital Ratios:
Equity to total assets at end
 of period (1)                       10.21              11.68

(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 other expenses (excluding real

estate owned and repossessed assets expenses, net, the

amortization of goodwill, and certain non-recurring expenses in

1998 totaling approximately $1.7 million, primarily related to

costs associated with the merger, costs associated with the

termination and consulting agreements entered into with the

former President and CEO, costs incurred to defend against and

settle legal actions initiated by a shareholder, and cost

associated with the core system conversion) divided by the sum of

net interest income and other income (excluding net gains

(losses) on securities transactions).