Atlantic Bank of New York Announces Record 2002 Earnings.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 27, 2003

Atlantic Bank of New York today announced the results of its operations for the fourth quarter and full year of 2002. These results are inclusive of Atlantic Bank's acquisition of Yonkers Financial Corporation (YFC), which was completed on May 8, 2002. The conversion of all operating systems resulting in the successful integration of the former Yonkers Federal Savings & Loan Association operations into Atlantic Bank was completed on June 17, 2002.

Net income for the fourth quarter increased 3.6% to $5.4 million from the $5.2 million posted for the same period last year. Net income for the year ended December 31, 2002 rose to $25.3 million reflecting a 48.5% increase over the $17.0 million reported for 2001.

Net interest income was $23.2 million for the fourth quarter and $86.7 million for the year, representing an increase of 44.2% and 24.7% respectively over the comparable prior year periods. The net interest margin for the quarter improved to 3.65% from the 3.38% reported for the same quarter last year and remained essentially flat for the full year at 3.77% compared to the 3.74% reported year-end 2001. The improvement in net interest income for the fourth quarter and full year 2002 is primarily attributable to the increase in assets resulting from the Yonkers acquisition and the expansion of the Bank's multi-family lending business, combined with the favorable interest rate environment. The provision for loan losses was $8.0 million for the year ended December 31, 2002 compared with $14.5 million for the prior year-end. The fourth quarter provision was $3.4 million compared to $1.9 million reported for the comparable 2001 period.

Non-interest income for the fourth quarter increased to $7.3 million, a $1.0 million or 15.1% improvement compared with the $6.3 million reported the same period last year. Non-interest income for the year ended December 31, 2002 was $23.3 million, a $5.3 million or 29.6% increase compared with $18.0 million for the prior year-end. The improvements in non-interest income are primarily due to increases in loan and other fees and income derived from strategic business programs implemented in 2002.

Non-interest expense for the fourth quarter was $17.1 million, an increase of $4.8 million or 38.5% compared with the same quarter last year. For the full year 2002, non-interest expense was $59.8 million, an increase of $13.0 million or 27.8% compared with the $46.8 million reported for the full year 2001. The increased non-interest expense is primarily due to costs associated with the YFC acquisition, including salary and benefit expenses for additional staff as well as one-time merger and integration costs. Additionally, during fourth quarter 2002 the Bank implemented FAS 142, resulting in a goodwill impairment charge of $1.4 million related to its leasing subsidiary. Ongoing expenses in the Bank's core businesses remained fairly stable due to a continuing emphasis on prudent expense management across the company.

Commenting on the bank's performance, Atlantic Bank's President and CEO, Thomas M. O'Brien, said, "We are very pleased with the Bank's 2002 financial results and particularly satisfied with the smooth integration of Yonkers Financial Corporation into the Atlantic Bank family during the year. We believe the strong foundation we built this year is beginning to bring forth the growth prospects we had hoped to achieve as a result of the merger. Despite the continued uncertainty concerning the national and local economy, we begin 2003 cautiously optimistic regarding opportunities for business expansion. We continue to maintain our diligent and conservative stance on managing our credit portfolio in light of the current economic climate."

Total loans, net of unearned income, were $1,216.3 million at December 31, 2002, compared with $1,272.3 million at September 30, 2002 and $1,008.3 million at December 31, 2001. These results reflect a slight reduction of 4.4% over the prior quarter and a 20.6% increase over the comparable prior year-end. The two principal sources of the bank's loan growth over the past year were our commercial real estate and multi-family lending businesses and the mortgage portfolio acquired through the Yonkers acquisition. As of December 31, 2002 total assets stood at $2.8 billion, reflecting an increase of 5.0% over the prior quarter and an increase of 39.1% over last year-end. These increases are primarily due to the acquisition of YFC, combined with continuing business expansion within the Bank's principal business lines.

Total deposits stood at $1,656.3 million at December 31, 2002, down $66.4 million or 3.9% from the previous quarter and up $267.8 million or 19.3% compared with the prior year-end. The bank's successful full year deposit growth is attributable to the YFC acquisition. The decrease in deposits during the fourth quarter is principally the result of the Bank's continued de-emphasis on higher rate time deposits as it focuses on relationship banking and the attraction of lower cost core demand deposit funds across all its businesses.

Atlantic Bank's return on average total assets was .79% for the fourth quarter and 1.03% for the full year 2002 compared to 1.02% and .85% for the comparable 2001 periods. The Bank's efficiency ratio for the fourth quarter and full year 2002 was 56.0% and 54.4%, respectively. The bank's Tier I leverage ratio was 5.92% and 8.42% at December 31, 2002 and 2001, respectively. The change in this ratio is principally due to the YFC acquisition. This ratio is in excess of the current regulatory guidelines for a well-capitalized institution. The allowance for loan losses as a percentage of total loans was 2.09 % at December 31, 2002 compared with 2.17% at December 31, 2001.

Established in 1926, Atlantic Bank of New York is one of the top 20 commercial banks serving the New York area. With $2.8 billion in assets, Atlantic Bank is a full-service commercial bank providing a comprehensive range of financial services to small- and mid-sized businesses, commercial real estate investors and consumers. The bank operates 20 branch offices in Manhattan, Queens, Brooklyn and Long Island, Westchester, Dutchess and in Boston. Atlantic Bank is a member of the global financial network of the National Bank of Greece (NYSE: NBG), which has more than $58 billion in assets and operates in 16 countries. Additional information is available on the bank's website at www.abny.com. The financial summary follows.

Atlantic Bank of New York
(In thousands, except ratios)

INCOME STATEMENT HIGHLIGHTS
                             Three Months Ended       Year Ended
                            UNAUDITED  UNAUDITED  UNAUDITED
                             Dec. 31,   Dec. 31,   Dec. 31,   Dec. 31,
                               2002       2001       2002       2001
                             ---------  --------  ---------  ---------
Interest Income               $35,287   $28,320   $131,193   $131,332
Interest Expense               12,061    12,214     44,469     61,803
                             ---------  --------  ---------  ---------
Net Interest Income            23,226    16,106     86,724     69,529
 Provision for Loan Losses      3,430     1,860      8,030     14,533
                             ---------  --------  ---------  ---------
Net Interest Income after
 Provision for Loan Losses     19,796    14,246     78,694     54,996

Non-Interest Income:
--------------------------
Customer Related Fees &
 Service Charges                1,608     1,469      6,212      6,135
Investment Management and
 Commissions                    3,153     2,925     10,152      8,865
Trading Income (Loss)             488       156        379         64
Other Operating Income            810       592      3,159      2,255
Gain on Sale of Loans             340         0      1,305       (569)
Net Securities Gains              937     1,235      2,081      1,222
                             ---------  --------  ---------  ---------
Total Non-Interest Income       7,337     6,377     23,288     17,972
                             ---------  --------  ---------  ---------

Non-Interest Expense           17,118    12,363     59,801     46,802

Income Before Taxes            10,014     8,260     42,182     26,166
Provision for Income Taxes      4,637     3,068     16,923      9,155
                             ---------  --------  ---------  ---------
Net Income                    $ 5,377   $ 5,192   $ 25,259   $ 17,011
                             =========  ======== =========  =========


Return on Average Total
 Assets                          0.79%     1.02%      1.03%      0.85%
Return on Average
 Stockholder's Equity           10.74%    11.94%     13.46%     10.33%
Yield on Interest Earning
 Assets                          5.54%     5.94%      5.70%      7.06%
Cost of Funds                    2.23%     3.08%      2.31%      4.00%
Net Interest Margin              3.65%     3.38%      3.77%      3.74%
Efficiency Ratio                56.01%    54.99%     54.36%     53.49%



Atlantic Bank of New York
(In thousands, except ratios)

BALANCE SHEET HIGHLIGHTS
                              UNAUDITED     UNAUDITED
                               Dec. 31,      Sept. 30,     Dec.31,
                                 2002          2002         2001
                              -----------   -----------  -----------
Total Assets                  $2,755,696    $2,623,511   $1,980,637
Loans, net                     1,216,274     1,272,341    1,008,335
Allowance for Loan Losses         25,400        25,136       21,889
Securities Available-For-Sale  1,322,765     1,117,168      798,969
Total Treasury Investments     1,341,086     1,168,845      829,486
Total Deposits                 1,656,272     1,722,687    1,388,520
Borrowings                       877,586       689,215      408,543
Stockholder's Equity -
 see Note to Financial Summary   203,549       197,679      171,463


SELECTED FINANCIAL HIGHLIGHTS

CAPITAL RATIOS:
---------------
Risk Based Capital:
Tier I                             10.90%         9.90%       13.30%
Total                              12.16%        11.16%       14.56%
  Leverage Ratio                    5.92%         5.65%        8.42%


ASSET QUALITY
---------------
Non-Performing Loans           $  46,550    $   39,865   $   47,933
Other                                278           278            -
                              -----------   -----------  -----------
   Total Non-Performing
    Assets                     $  46,828    $   40,143   $   47,933
                              ===========   ===========  ===========


Allowance for Loan Losses to
  Non-Performing Assets            54.24%        62.62%       45.67%

Allowance for Loan Losses to
 Total Loans, Net                   2.09%         1.98%        2.17%

Non-Performing Loans to Total
 Loans, Net                         3.83%         3.13%        4.75%


Note to Financial Summary
--------------------------
Stockholder's equity includes unrealized gains (losses) on the
Available-for-Sale portfolio in accordance with FAS-115 as follows:
December 31, 2002, $1,983; September 30, 2002, $1,489; and December
31, 2001, ($4,846).