Atlantic Bank and Trust Co. announces $107,600,000 loan portfolio acquisition.

BOSTON--(BUSINESS WIRE)--Oct. 8, 1996--Atlantic Bank and Trust Co. (Nasdaq:ATLB) announced today that it has acquired a portfolio of 241 commercial loans secured principally by commercial real estate located in Connecticut and Massachusetts.

These loans, which have an aggregate outstanding

                                       Principal         Purchase
                                        Balance            Price

Loans purchased for the
  Bank's portfolio                    $58,500,000      $38,100,000

Loans purchased for resale
  or other disposition                 49,100,000        9,800,000

                                     $107,600,000      $47,900,000

With respect to the loans purchased for the bank's portfolio, Atlantic Bank expects to record a discount of approximately $20,400,000 which shall be allocated between non-amortizing discount (reserve) and amortizing discount. The amortizing discount will be recognized in interest income over the estimated remaining life of the loans. Loans purchased for resale or other disposition will be carried at the lower of cost or fair value.

"This transaction represents the bank's largest loan pool acquisition to date," said Nicholas W. Lazares, chairman. "These loans were acquired from a private sector seller in a negotiated transaction and represent a portion of the portfolios of several New England based banks that have either failed or merged into other institutions. We believe that this transaction demonstrates the expanding acquisition opportunities in the private sector. As a significant player in the multi-billion dollar discounted loan trade, Atlantic Bank will continue to develop its strategic relationships with private sector loan sellers and buyers."

President Richard Wayne commented that, "The acquisition fits well into Atlantic Bank's business plan of building its loan portfolio on a wholesale basis through the purchase of discounted loans. This transaction also provides Atlantic Bank with loan inventory for resale to others, which significantly expands our loan purchasing opportunities and also broadens our range of transactions to include loan sales. The newly acquired customer base, coupled with loan inventory for resale, serves as a valuable addition to Atlantic Bank's franchise."

Atlantic Bank and Trust Co., a Boston-based commercial bank formed in 1987, complete its initial public offering in April of this year. It continues to focus its business activities on the acquisition of discounted loan pools, premium-priced specialty commercial lending and SBA guaranteed small business lending.

CONTACT: Atlantic Bank and Trust Co.

Nicholas W. Lazares or Richard Wayne, 617/330-8585