Atlantic Bank of New York Reports 34% Increase in Earnings for First Quarter of 2003

NEW YORK--()--April 23, 2003--Atlantic Bank of New York today announced the results of its operations for the first quarter of 2003. These results are inclusive of Atlantic Bank's acquisition of Yonkers Financial Corporation (YFC), which was completed on May 8, 2002.

Net income for the first quarter increased 33.9% to $7.5 million from the $5.6 million posted for the same period last year. Net interest income for the first quarter grew to $21.2 million, representing a $3.9 million or 22.7% increase over the $17.3 million reported for the same quarter last year. The improvement in net interest income is primarily attributable to the increase in assets resulting from the Yonkers acquisition, continued expansion of the Bank's commercial real estate and multi-family lending businesses, and the favorable interest rate environment. The net interest margin for the quarter reduced to 3.35% from the 3.69% reported for the comparable period last year.

During the first quarter of 2003, the Bank implemented FAS 114 for the determination of the allowance for loan losses, resulting in a $0.9 million credit, a reduction of $2.1 million from the $1.2 million provision for the comparable quarter last year.

Non-interest income for the first quarter increased to $6.1 million, a $1.1 million or 21.3% improvement compared with the $5.0 million reported for the same period last year. The improvement in non-interest income is primarily due to additional income from fees, service charges and commissions and income derived from securities gains, partially offset by losses realized on loan sales.

Non-interest expense for the first quarter was $15.6 million, an increase of $3.5 million or 29.4% compared with the same quarter last year. The increased non-interest expense is primarily due to costs associated with the YFC acquisition. Ongoing expenses in the Bank's core businesses remained fairly stable due to an ongoing and disciplined focus on 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 progress we have made since the Yonkers acquisition and believe our continued strategic focus on developing deep and long-term relationships with both new and existing clients is beginning to yield dividends. Our diligent expense and credit risk management practices have solidified our business foundation and we are better poised to capitalize on the profitable new growth opportunities ahead of us as market conditions improve. "

Total loans, net of unearned income, were $1,203.8 million at March 31, 2003, remaining fairly flat compared with $1,207.8 million at December 31, 2002 and reflecting a 16.1% increase from $1,037.2 million at March 31, 2002. The Bank's loan growth over the past year resulted from continued expansion of our commercial real estate and multi-family lending businesses and the mortgage portfolio acquired through the Yonkers acquisition. As of March 31, 2003 total assets stood at $3.0 billion, reflecting an increase of 8.0% over the prior quarter and an increase of 43.3% over the prior year. These increases are primarily due to the acquisition of YFC and continued growth within the Bank's principal business lines.

Total deposits were $1,569.3 million at March 31, 2003, down $87.0 million or 5.3% from the previous quarter and up $252.1 million or 19.1% compared with the previous year. The full year deposit growth is attributable to the YFC acquisition. The first quarter decrease in deposits reflects the Bank's continued de-emphasis of high rate time deposits and greater concentration on relationship banking and the attraction of low cost core deposits.

Atlantic Bank's first quarter 2003 return on average total assets remained essentially constant at 1.09% compared with 1.11% for the same period last year. The Bank's efficiency ratio for the first quarter was 57.3%. The Bank's Tier I leverage ratio was 6.14% and 8.72% at March 31, 2003 and 2002, 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 1.17 % at March 31, 2003 compared with 2.20% at March 31, 2002.

Established in 1926, Atlantic Bank of New York is one of the top 20 commercial banks serving the New York area. With $3.0 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
                                           UNAUDITED     UNAUDITED
                                         March 31, 2003 March 31, 2002
                                            ----------- ------------ 
Interest Income                              $  32,711    $  27,229
Interest Expense                                11,542        9,970
                                            ----------- ------------
Net Interest Income                             21,169       17,259
Provision for Loan Losses                         (893)       1,200
                                            ----------- ------------
Net Interest Income after Provision for Loan            
 Losses                                         22,062       16,059
                                                        
Non-Interest Income:                                    
--------------------------------------------            
Customer Related Fees & Service Charges          1,553        1,462
Investment Management and Commissions            2,728        2,168
Trading Income (Loss)                              508          378
Other Operating Income                             619          736
Gain / (Loss) on Sale of Loans                    (610)          65
Net Securities Gains                             1,293          211
                                            ----------- ------------
Total Non-Interest Income                        6,091        5,020
                                            ----------- ------------
                                                        
Non-Interest Expense                            15,630       12,082
                                                        
Income Before Taxes                             12,523        8,997
Provision for Income Taxes                       5,012        3,418
                                            ----------- ------------
Net Income                                   $   7,511    $   5,579
                                            =========== ============
                                                        
                                                        
Return on Average Total Assets                    1.09%        1.11%
Return on Average Stockholder's Equity           14.59%       12.67%
Yield on Interest Earning Assets                  5.18%        5.82%
Cost of Funds                                     2.16%        2.58%
Net Interest Margin                               3.35%        3.69%
Efficiency Ratio                                 57.34%       54.23%


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

BALANCE SHEET HIGHLIGHTS
                                    UNAUDITED               UNAUDITED
                                   March 31,  December 31, March 31,
                                      2003        2002        2002
                                  ------------ ----------- -----------
Total Assets                       $2,994,320  $2,767,143  $2,088,888
Loans, net                          1,203,829   1,207,809   1,037,175
Allowance for Loan Losses              14,135      24,349      22,854
Securities Available-For-Sale       1,465,689   1,321,161     816,847
Total Treasury Investments          1,583,768   1,345,719     857,074
Total Deposits                      1,569,256   1,656,271   1,317,175
Borrowings                          1,184,700     870,830     499,070
Stockholder's Equity - see Note to
 Financial Summary                    206,013     203,314     177,185


SELECTED FINANCIAL HIGHLIGHTS

CAPITAL RATIOS:
----------------------------------
Risk Based Capital:
Tier I                                  10.98%      10.90%      13.61%
Total                                   11.91%      12.16%      14.87%
Leverage Ratio                           6.14%       5.92%       8.72%


ASSET QUALITY
----------------------------------
Non-Performing Loans               $   34,407  $   46,550  $  51,294
Other                                     245         278           -
                                  ------------ ----------- -----------
Total Non-Performing Assets        $   34,652  $   46,828  $  51,294
                                  ============ =========== ===========


Allowance for Loan Losses to Non-
 Performing Assets                      40.79%      52.00%      44.56%

Allowance for Loan Losses to Total
 Loans, Net                              1.17%       2.02%       2.20%

Non-Performing Loans to Total
 Loans, Net                              2.86%       3.85%       4.95%


Note to Financial Summary
----------------------------------
Stockholder's equity includes unrealized gains (losses) on the
Available-for-Sale portfolio in accordance with FAS-115 as follows:
March 31, 2003, ($2,829); December 31, 2002, $1,983; and March 31,
2002, ($4,700).

Contacts

Atlantic Bank of New York
Anthony J. Morris, 212/714-7579

Contacts

Atlantic Bank of New York
Anthony J. Morris, 212/714-7579