Yonkers, New York - October 25, 2000 Yonkers Financial Corporation (NASDAQ: YFCB) (the "Company"), the holding company for The Yonkers Savings and Loan Association, FA, reported for the fiscal year ended September 30, 2000 diluted earnings per common share was $1.53, an increase of 37.8% compared to $1.11 in the prior year period. Net income for the fiscal year ended September 30, 2000 amounted to $3.1 million, an increase of 17.9% from last year. For the quarter ended September 30, 2000 diluted earnings per common share was $0.38, an increase of 26.7% compared to $0.30 reported for the quarter ended September 30, 1999. Net income increased by 15.5%, or $104,000, to $777,000.

The Company also announced that the Board of Directors, at its October 14, 2000 meeting, declared a cash dividend of $0.09 per share, payable November 17, 2000 to holders of record as of November 6, 2000. The dividend represents the Company's eighteenth consecutive quarterly cash dividend since converting to stock form. The Company paid cash dividends for the full year of $0.36 per share which represented an increase of 12.5% over the previous year.

Commenting on the Company's results Richard F. Komosinski, the Company's President and Chief Executive Officer, said, "We are pleased with our solid financial results for fiscal 2000. Growth in earnings per share and loans receivable has been dramatic with total outstanding loans now equal to $366.0 million or 22.2% higher that at September 30,1999. We feel the substantial increases we have experienced in loan growth and earnings are consistent with our commitment to enhancing shareholder value. Despite achieving rapid growth in our loan portfolio, our loan quality remains high with non-performing loans totaling $123,000 or 0.03% of total loans receivable compared to $755,000 or 0.25% at September 30, 1999."

The Company also announced that its annual meeting date is scheduled for Thursday, January 25, 2001.

Total assets at September 30, 2000 amounted to $522.9 million, an increase of $65.2 million, or 14.2%, from $457.7 million at September 30, 1999. Asset growth during the period was funded primarily through growth in the Company's deposit base relating to the expansion of its retail franchise, as well as proceeds from borrowings under Federal Home Loan Bank ("FHLB") advances and securities repurchase agreements. Deposits increased $52.1 million to $325.1 million at September 30, 2000 from $273.0 million at September 30, 1999. Total borrowings increased by $9.5 million to $157.4 million at September 30, 2000 from $147.9 million at September 30, 1999.

Stockholders' equity increased to $34.9 million at September 30, 2000 from $32.0 million at September 30, 1999, while the ratio of stockholders' equity to total assets decreased to 6.7% from 7.0% at September 30, 1999. Book value per share increased to $15.65 at September 30, 2000 from $14.30 at September 30, 1999.

Net interest income for the fiscal year ended September 30, 2000 was $14.0 million, an increase of $2.0 million or 15.9% over the same period in the prior year. Net interest income for the three months ended September 30, 2000 was $3.5 million, an increase of $233,000, or 7.2%, from $3.2 million for the same period in 1999. These increases reflect the positive effect on net interest income of higher average interest-earning assets, primarily attributable to the investment of proceeds from deposit growth and borrowings, partially offset by a decline in the average interest rate spread. The average interest rate spread for the fiscal year and the three months ended September 30, 2000 was 2.47% and 2.34%, respectively, compared to 2.66% and 2.86% for the respective 1999 periods. The interest margin for the three months and fiscal year ended September 30, 2000 was 2.72% and 2.80%, respectively, compared to 3.16% and 3.13% for the respective 1999 periods.

Non-interest income for the fiscal year ended September 30, 2000 was $1.6 million, an increase of 37.7% over the same period in the prior year. Non-interest income for the three months ended September 30, 2000 was $450,000, an increase of 73.1% over the same period in the prior year. The net increases in both periods primarily reflect increases in service charges and fee income attributable to increases in transaction volume as well as fee income generated from our annuities and mutual funds sales program launched in fiscal 2000.

Non-interest expense for the fiscal year ended September 30, 2000 increased $1.6 million to $10.3 million compared to $8.7 million in the prior year. For the three months ended September 30, 2000 non-interest expense increased $155,000 to $2.6 million compared to $2.4 million for the three months ended September 30, 1999. These increases primarily reflect increased costs associated with (i) the establishment of three new in-store branches during the fiscal year ended September 30, 1999 and (ii) costs associated with the proxy fight that was concluded in January of this year.

The Company was organized in 1995, as the holding company for the Association. The Association currently serves the financial needs of communities in its market area through four traditional retail offices and one lending center located in Yonkers, New York and five in-store branches, located in Wappingers Falls, Yorktown Heights, Mt. Vernon, Cortlandt Manor and Poughkeepsie, New York. The Company's stock trades on The Nasdaq Stock Market under the symbol "YFCB".

This news release contains various forward-looking statements consisting of estimates with respect to the financial condition, results of operations and business of the company and the bank. These estimates are subject to various factors that could cause actual results to differ materially from these estimates. These factors include, but are not limited to, (i) the effect that an adverse movement in interest rates could have on net interest income, (ii) changes in customer preferences for our products and services, (iii) changes in national and local economic and market conditions, (iv) higher than anticipated operating expenses, (v) a lower level of or higher cost for deposits or a higher cost for borrowings than anticipated, (vi) changes in accounting principles, policies or guidelines, and (vii) legislation or regulations adversely affecting the bank or the company.