Atlantic Bank of New York Announces Strong Earnings Growth for the Second Quarter of 2002.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 30, 2002

Atlantic Bank of New York today announced the results of its operations for the second quarter and first six months of 2002.

These results are inclusive of Atlantic Bank's acquisition of Yonkers Financial Corporation (YFC), which was completed on May 8, 2002. On June 17, 2002, the bank completed the conversion of all operating systems resulting in the successful integration of the former Yonkers Savings & Loan operations into Atlantic Bank.

Net income for the quarter was $7.3 million, which was $5.0 million or 217% greater than the $2.3 million posted for the same period last year. Net income for the year to date rose to $12.9 million reflecting a $5.5 million or 74% increase over the $7.4 million reported for the comparable six month period of the prior year.

Net interest income was $22.5 million for the second quarter and $39.8 million for the year to date, representing an increase of $4.0 million and $3.7 million respectively over the comparable prior year periods. Due to a reduction in the cost of funds, the net interest margin for the quarter and six month periods remained relatively flat, narrowing slightly by 3 basis points and 9 basis points respectively, compared with the same periods last year. The increases in net interest income for the quarter and year to date are attributable to continued improvement in the rate environment combined with $2.1 million in purchase accounting adjustments made in 2002. The provision for loan losses for the second quarter, 2002 and year to date was $1.2 million and $2.4 million respectively, versus $6.6 million and $7.2 million for the comparable periods last year.

Non-interest income for the second quarter increased to $5.8 million, a $2.0 million or 53% gain compared with the $3.8 million reported the same period last year. Non-interest income for the year to date increased to $10.8 million, representing a $3.6 million or 50% increase compared with $7.2 million posted the first half of 2001.

Non-Interest expense for the second quarter was $15.3 million, an increase of $3.4 million over the comparable quarter last year. For the six months of 2002, non-interest expense was $27.4 million, an increase of $3.2 million compared with the same period last year. The increased non-interest expense is primarily attributable to the YFC merger, including one-time integration costs, amortization of deposit premiums and increased salary and benefit costs associated with the additional staff acquired.

Total loans, net of unearned income, were $1,292.0 million at June 30, 2002, compared with $1,037.2 million at March 31, 2002 and $1,046.4 million at June 30, 2001. The $254.8 million increase in loans during the second quarter is attributable to the assumption of $360.0 million in loans through the YFC acquisition, offset by the sale of $45.0 million of Commercial Real Estate loans and securitization of $65 million of Residential Mortgage loans.

As of June 30, 2002, total assets stood at $2.7 billion, reflecting an increase of $688 million or 34% over the prior quarter. The increase in assets is principally attributable the acquisition of YFC.

Total deposits grew to $1,922.1 million at June 30, 2002, an increase of $604.9 million or 45.9% over the previous quarter. The increase is due to $421.0 million in deposits acquired from Yonkers as well as the bank's continued success in capturing increased deposits through emphasis of relationship banking and the attraction of lower cost core deposits across all its business lines.

Atlantic Bank's return on average total assets for the second quarter and year to date improved to 1.22% and 1.17% respectively from .47% and .76% for the same periods last year. Return on average stockholder's equity increased to 15.78% for the quarter and 14.35% for the six months ended June 30, 2002. The bank's efficiency ratio remained flat at 54.20% compared with the previous quarter and reflected a 1.75% improvement from the 55.96% reported for the 6 months ended June 30, 2001. The bank's Tier I leverage ratio was 6.08% and 8.26% at June 30, 2002 and 2001, respectively. This ratio is well in excess of the current regulatory guidelines for a well-capitalized institution. The allowance for loan losses as a percentage of total loans was 1.93% at June 30, 2002 compared with 1.70% at June 30, 2001.

"We are very pleased with the timely and smooth integration of Yonkers Savings & Loan into Atlantic Bank. We believe the successful combination of these two already strong banks has resulted in an even stronger and more competitive organization that is focused on satisfying customers' needs with unparalleled personalized service," Mr. O'Brien said. He added, "We're all very excited about the new opportunities that are ahead for us to grow our business in our expanded market areas."

Established in 1926, Atlantic Bank of New York is one of the top 25 commercial banks serving the New York area. With over $2.7 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 21 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 $45 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       Six Months Ended
                       UNAUDITED   UNAUDITED   UNAUDITED   UNAUDITED
                        June 30,    June 30,    June 30,    June 30,
                          2002        2001        2002        2001
                      ----------- ----------- ----------- -----------
Interest Income       $    32,776 $    34,475 $    60,005 $    70,722
Interest Expense           10,275      15,992      20,245      34,631
                      ----------- ----------- ----------- -----------
Net Interest Income        22,501      18,483      39,760      36,091
  Provision for
   Loan Losses              1,200       6,623       2,400       7,246
                      ----------- ----------- ----------- -----------
Net Interest Income
 after Provision
 for Loan Losses           21,301      11,860      37,360      28,845

Non-Interest Income:
Customer Related
 Fees & Service
 Charges                    1,556       1,606       3,019       3,115
Investment Management
 and Commissions            2,432       1,863       4,600       3,854
Trading Income (Loss)          12         (81)        390        (360)
Other Operating
 Income                       956         191       1,690         244
Gain on Sale of Loans         617         109         682         184
Net Securities Gains          232          99         443         116
                      ----------- ----------- ----------- -----------
Total Non-Interest
 Income                     5,805       3,787      10,824       7,153
                      ----------- ----------- ----------- -----------

Non-Interest Expense       15,341      11,963      27,422      24,206

Income Before Taxes        11,765       3,684      20,762      11,792
Provision for Income
 Taxes                      4,470       1,393       7,888       4,387
                      ----------- ----------- ----------- -----------
Net Income            $     7,295 $     2,291 $    12,874 $     7,405
                      =========== =========== =========== ===========
Return on Average
 Total Assets                1.22%       0.47%       1.17%       0.76%
Return on Average
 Stockholder's
 Equity                     15.78%       5.73%      14.35%       9.38%
Yield on Interest
 Earning Assets              5.86%       7.56%       5.84%       7.77%
Cost of Funds                2.25%       4.24%       2.40%       4.59%
Net Interest Margin          4.02%       4.05%       3.87%       3.96%
Efficiency Ratio            54.20%      53.72%      54.21%      55.96%


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

BALANCE SHEET HIGHLIGHTS

                       UNAUDITED   UNAUDITED               UNAUDITED
                        June 30,    March 31, December 31,  June 30,
                          2002        2002       2001         2001
                      ----------- ----------- ----------- -----------

Total Assets          $ 2,696,666 $ 2,008,888 $ 1,980,637 $ 2,021,447
Loans, net              1,291,951   1,037,175   1,008,335   1,046,359
Allowance for Loan
 Losses                    24,967      22,854      21,889      17,780
Securities Available
-For-Sale               1,138,513     816,847     799,351     682,272
Total Treasury
 Investments            1,155,236     857,074     829,868     798,414
Total Deposits          1,922,079   1,317,175   1,388,520   1,316,932
Borrowings                569,373     499,070     408,543     517,274
Stockholder's Equity -
 see Note to Financial
 Summary                  189,992     177,185     171,463     162,565

SELECTED FINANCIAL HIGHLIGHTS

CAPITAL RATIOS:
Risk Based Capital:
Tier I                       9.63%      13.61%      13.30%      11.44%
Total                       10.88%      14.87%      14.56%      12.69%
  Leverage Ratio             6.08%       8.72%       8.42%       8.26%

ASSET QUALITY
Non-Performing
 Loans                $    41,229 $    51,294 $    47,933 $    19,132
Other                         327           -           -          65
                      ----------- ----------- ----------- -----------
  Total Non-
   Performing
   Assets             $    41,556 $    51,294 $    47,933 $    19,197
                      ===========  =========== =========== ===========

Allowance for Loan
 Losses to Non-
 Performing Assets          60.08%      44.56%      45.67%      92.62%

Allowance for Loan
 Losses to Total
 Loans, Net                  1.93%       2.20%       2.17%       1.70%

Non-Performing
 Loans to Total
 Loans, Net                  3.19%       4.95%       4.75%       1.83%

    Note to Financial Summary

    Stockholder's equity includes unrealized gains (losses) on the
Available-for-Sale portfolio in accordance with FAS-115 as follows:
June 30, 2002, $813; March 31, 2002, ($4,700); December 31, 2001,
($4,846); and June 30, 2001, ($4,247).