Atlantic Bank of New York Reports Fourth Consecutive Year of Record Earnings.

NEW YORK--(BUSINESS WIRE)--Feb. 8, 1999--

Expands Market Reach with Addition of Chicago Branch

Atlantic Bank of New York today reported record 1998 earnings before taxes of $24.2 million on the strength of successful outreach to key niche markets and continued growth with small- and mid-market business customers. The earnings represent an increase of more than 19 percent over 1997. Net income for 1998 rose to $14.7 million from the 1997 year-end level of $12.7 million.

"These results represent our fourth consecutive year of record profitability and are a direct result of the continued progress of our plan to expand our breadth of commercial banking products and services to additional niche markets," said Peter L. Venetis, President and CEO. "Our success also is undoubtedly related to our commitment to provide the highest level of personal service to our clients."

Venetis pointed to several niche marketing initiatives developed during 1998 which position the bank for future growth and diversification: a mezzanine financing fund, asset management services, a travel escrow business, new cash management and electronic banking services and the strong performance of Gramercy Leasing Services, Inc., a subsidiary acquired in late 1997.

"Our continued emphasis on the small- and mid-sized business community and the commercial real estate market, together with our expanded array of services and niche market initiatives helps ensure that we are well positioned for future growth," Venetis noted.

Atlantic Bank reported total assets of $1.407 billion at the end of 1998, an increase of 20 percent over the $1.172 billion at the end of the prior year, while deposits at year-end increased 16.5 percent to $1.028 billion. Key capital ratios were maintained at levels substantially above the "well-capitalized" threshold, with the leverage and risk-based ratios at 8.2% and 15.66% respectively.

"It was a remarkably productive year for Atlantic Bank," said Venetis. "Net interest income rose 11.7 percent while non-interest revenue rose 35 percent. In addition to our growth in income, we maintained our efficiency ratio, which compares non-interest expense to revenue, at 59 percent, indicating that we are effectively managing costs while continuing to spend aggressively on the enhancement of our electronic delivery channels."

Atlantic Bank is a subsidiary of the National Bank of Greece, one of the largest banks in Europe having assets in excess of $45 billion and operating through more than 700 locations in 16 countries around the world, including its own branches in Chicago and Boston. As the first step in a consolidation of its American presence, on January 1, 1999, the National Bank of Greece merged its Chicago branch into Atlantic Bank. As part of Atlantic Bank, the Chicago branch will provide its customers an expanded selection of services, with continued access to the parent bank in Greece.

"Atlantic Bank is committed to serving the financial needs of middle-market companies, small businesses, the commercial real estate community and consumers throughout the Chicago area," Venetis stated. "We look forward to this new opportunity to provide all of Chicago our wide and varied menu of products and with our unparalleled level of customer service," he added. Atlantic Bank plans to acquire the Boston branches of the National bank of Greece during 1999, noted Venetis.

Established in 1926, Atlantic Bank of New York ranks among the top 25 commercial banks serving the New York metropolitan area. A full-service commercial bank, Atlantic Bank provides a comprehensive range of financial services to businesses, real estate investors and consumers. It operates a network of ten New York branch offices in Manhattan, Queens, Brooklyn and Long Island, in addition to it newest office in Chicago.