SOURCE: Abington Bancorp, Inc.

October 31, 2007 16:30 ET

Abington Bancorp, Inc. Announces Record Net Income for the Third Quarter of 2007

JENKINTOWN, PA--(Marketwire - October 31, 2007) - Abington Bancorp, Inc. (the "Company") (NASDAQ: ABBC), the new holding company for Abington Bank (the "Bank"), reported record net income of $2.1 million for the quarter ended September 30, 2007, representing an increase of $367,000 or 21.5% over the comparable 2006 period. Diluted earnings per share increased to $0.09 for the quarter compared to $0.07 for the third quarter of 2006. Net income of $4.9 million for the nine months ended September 30, 2007 was a decrease of $279,000 or 5.3% over the first nine months of 2006. Diluted earnings per share decreased slightly to $0.21 for the first nine months of 2007 from $0.22 for the first nine months of 2006. Earnings per share for the prior periods have been adjusted to reflect the impact of the second-step conversion and reorganization of the Company, which occurred on June 27, 2007.

Mr. Robert W. White, Chairman, President and CEO of the Company, stated, "We are pleased to report record earnings in our first full quarter following our second-step conversion. We are deploying the capital that we raised in June in a prudent manner in new loan originations and additional investments. The recent turmoil in the subprime credit markets has not affected our operations as we are not involved in any subprime lending. We have maintained our strong loan underwriting guidelines so that delinquent loans have been, and will continue to remain, a very low percentage of our total portfolio."

Net interest income was $7.2 million and $18.5 million for the three months and nine months ended September 30, 2007, respectively, representing increases of 26.8% and 9.2%, respectively, over the comparable 2006 periods. Our net interest margin for the third quarter of 2007 increased 27 basis points to 2.89% from 2.62% for the third quarter of 2006. For the first nine months of 2007 our net interest margin was 2.65% compared to 2.71% for the first nine months of 2006. Our average interest rate spread for the three and nine months ended September 30, 2007 decreased to 1.92% and 1.90 %, respectively, from 2.05% and 2.17%, respectively, for the comparable 2006 periods.

Interest income for the three months ended September 30, 2007 increased $1.8 million or 13.9% over the comparable 2006 period to $14.9 million. Interest income for the nine months ended September 30, 2007 increased $5.2 million or 14.3% over the comparable period in 2006 to $41.8 million. For both the three-month and nine-month periods, the increase in interest income was primarily a result of growth in the average balance of our interest-earning assets. The most significant impact was due to increases in the average balances of loans receivable and other interest-earning assets, although the average balance of our investment securities also increased. The average balance of our loan portfolio increased $71.9 million or 12.2% to $660.3 million for the quarter ended September 30, 2007 from $588.4 million for the quarter ended September 30, 2006. The average balance of our other interest-earning assets increased $72.4 million or 275.9% over the same period, primarily as a result of purchases of repurchase agreements and short-term discount notes. The average balance of our loan portfolio increased $75.3 million or 13.4% to $637.0 million for the nine months ended September 30, 2007 from $561.6 million for the nine months ended September 30, 2006. The average balance of our other interest-earning assets increased $37.6 million or 151.2% over the same period.

Our increases in interest income for both the three-month and nine-month periods in 2007 were offset to varying degrees by increases in our interest expense. Interest expense for the three months ended September 30, 2007 increased $307,000 or 4.1% over the comparable 2006 period, partially offsetting the $1.8 million increase in interest income over the same periods. Interest expense for the nine months ended September 30, 2007 increased $3.7 million or 18.7% over the comparable 2006 period, substantially offsetting the $5.2 million increase in interest income over the same period. For both the three-month and nine-month periods, the increase in interest expense was primarily the result of increases in the average balance of and average rate paid on deposits, partially offset by a decrease in the average balance of advances from the Federal Home Loan Bank ("FHLB"). During the three months ended September 30, 2007 compared to the three months ended September 30, 2006, our average deposit balance grew by $49.2 million or 9.6%, primarily due to growth in higher-rate certificates of deposit. During the nine months ended September 30, 2007 compared to the nine months ended September 30, 2006, our average deposit balance grew by $70.6 million or 14.5%, again, primarily due to growth in higher-rate certificates of deposit. As a result of the increase in our certificates of deposit as a proportion of our total deposits, as well as the rising interest rate environment, the average rate we paid on our deposits increased 25 basis points to 3.87% for the third quarter of 2007 from 3.62% for the third quarter of 2006. Similarly, the average rate we paid on our deposits increased 62 basis points to 3.85% for the first nine months of 2007 from 3.23% for the first nine months of 2006. During the three months ended September 30, 2007 compared to the three months ended September 30, 2006, our interest expense on advances from the FHLB decreased $482,000 or 19.0%, primarily due to a $31.6 million decrease in the average balance of those borrowings. During the nine months ended September 30, 2007 compared to the nine months ended September 30, 2006, our interest expense on advances from the FHLB decreased $679,000 or 9.4%, primarily due to a $21.6 million decrease in the average balance of those borrowings.

We made a $163,000 provision to the allowance for loan losses during the third quarter of 2007, and our provision for loan losses amounted to $273,000 for the nine months ended September 30, 2007. During the third quarter of 2006, we made a provision of $120,000 to the allowance for loan losses, resulting in a provision of $128,000 for the nine months ended September 30, 2006. The provision for loan losses is charged to expense as necessary to bring our allowance for loan losses to a sufficient level to cover known and inherent losses in the loan portfolio. Our loan portfolio at September 30, 2007 included an aggregate of $5.0 million of non-accrual, impaired commercial real estate and construction loans to two borrowers. Based on the appraised value of the properties collateralizing the loans, a reserve of $113,000 was established on these loans at September 30, 2007. At September 30, 2007, non-performing loans amounted to 0.77% of loans receivable and our allowance for loan losses amounted to 35.6% of non-performing loans.

Our total non-interest income amounted to $783,000 for the third quarter of 2007 compared to $716,000 for the third quarter of 2006. The increase of $68,000 was due primarily to an increase in income on bank owned life insurance ("BOLI") of $116,000 partially offset by a decrease in service charge income of $37,000. The increase in income on BOLI resulted primarily from the purchase of $20.0 million of additional BOLI during the third quarter of 2007. The decrease in service charge income resulted primarily from a $50,000 decrease in overdraft fees, partially offset by a $15,000 increase in debit card income. For the nine months ended September 30, 2007, our total non-interest income amounted to $2.2 million, a slight increase of $19,000 from the nine months ended September 30, 2006. During the nine months ended September 30, 2007 compared to the nine months ended September 30, 2006, a $142,000 increase in income on BOLI was substantially offset by an $80,000 decrease in service charge income and a $40,000 decrease in other non-interest income. As was the case for the three-month periods, the increase in income on BOLI for the first nine months of 2007 when compared to the first nine months of 2006 resulted primarily from the purchase of $20.0 million of BOLI during the third quarter of 2007. Also, the decrease in service charge income from period to period resulted primarily from an $113,000 decrease in overdraft fees, partially offset by a $46,000 increase in debit card income. The decrease in other non-interest income for the nine months ended September 30, 2007 compared to the nine months ended September 30, 2006 resulted primarily from a $43,000 increase in appraisal income.

Our total non-interest expenses for the third quarter of 2007 amounted to $4.8 million, representing an increase of $959,000 from the third quarter of 2006. The largest increases were in salaries and employee benefits, occupancy, professional services and other non-interest expenses. Salaries and employee benefits expense increased $427,000 quarter-over-quarter due primarily to growth in the total number of employees, normal merit increases in salaries, and higher health and insurance benefit costs. Our number of full-time equivalent employees increased from 125 at September 30, 2006 to 147 at September 30, 2007, primarily as a result of our branch expansion. Also contributing to the increase in salaries and employee benefits expense was a $169,000 or 120.4% increase in the expense for our Employee Stock Ownership Plan ("ESOP"). This increase is due primarily to the purchase of additional shares of Company stock by our ESOP in conjunction with the second-step conversion and reorganization completed in June 2007. Occupancy expense increased by $173,000 quarter-over-quarter. The increase primarily was the result of our new branches in Concordville and Lansdale, Pennsylvania, which opened in October 2006 and January 2007, respectively, and in Chalfont and Whitemarsh, Pennsylvania, which opened in April 2007. Our professional services expense increased $179,000, quarter-over-quarter, due to increased legal, audit and consulting expenses. The increase in other non-interest expenses was due largely to increases in expenses for office supplies, copying, and postage as a result of our new branch offices.

For the nine months ended September 30, 2007, our total non-interest expenses amounted to $13.6 million, representing an increase of $1.9 million or 16.3% from the nine months ended September 30, 2006. As was the case for the quarter ended September 30, 2007, the largest increases were in salaries and employee benefits, occupancy, professional services and other non-interest expenses. The causes for the increases in these expenses over the nine-month periods mirrored the causes for the increases for the three-month periods. Salaries and employee benefits expense increased $917,000 for the first nine months of 2007 compared to the first nine months of 2006 due primarily to growth in the total number of employees, normal merit increases in salaries, and higher health and insurance benefit costs, as well as a $267,000 or 66.5% increase in the expense for our ESOP. Occupancy expense increased by $272,000 for the first nine months of 2007 compared to the first nine months of 2006 as a result of our new branches. Our professional services expense increased $251,000 over the same period due to increased legal, audit and consulting expenses. Our other non-interest expenses increased by $212,000 for the first nine months of 2007 compared to the first nine months of 2006 due largely to increases in expenses for office supplies, copying, and postage as a result of our new branch offices.

Income tax expense for the third quarter of 2007 amounted to $877,000 compared to $666,000 for the third quarter of 2006. Income tax expense for the nine months ended September 30, 2007 amounted to $1.9 million compared to $2.1 million for the nine months ended September 30, 2006. Our effective tax rate increased to 29.7% for the quarter ended September 30, 2007 from 28.1% for the quarter ended September 30, 2006, however, our effective tax rate improved to 28.0% for the nine months ended September 30, 2007 from 28.7% for the nine months ended September 30, 2006.

The Company's total assets increased $155.8 million, or 16.8%, to $1.1 billion at September 30, 2007 compared to $925.2 million at December 31, 2006. The increase in total assets was due primarily to $134.7 million in net proceeds received from the Company's second-step conversion and stock offering completed on June 27, 2007. Our cash and cash equivalents increased $59.9 million to $104.5 million at September 30, 2007 from $44.6 million at December 31, 2006. The increase in cash and cash equivalents included the purchase of $39.9 million of short-term FHLB discount notes and a $17.8 million increase in interest-bearing deposits in other banks. Additionally, our total investment securities increased $13.4 million as purchases of $44.9 million and unrealized gains on available for sale securities of $1.1 million were partially offset by calls and maturities of $32.7 million. Our total mortgage-backed securities decreased $8.5 million as purchases of $8.3 million and unrealized gains on available for sale mortgage-backed securities of $594,000 were outpaced by repayments of $17.3 million. Our net loans receivable increased $65.1 million or 10.8% during the first nine months of 2007. The largest loan growth occurred in one- to four-family residential loans, which increased $44.4 million or 11.8%, construction loans, which increased $19.6 million or 14.5%, and commercial business loans, which increased $10.8 million or 94.6%. Consumer non-real estate loans also increased $3.2 million or 73.7%. These increases were partially offset by a $13.6 million decrease in multi-family residential and commercial real estate loans and a $2.8 million decrease in home equity lines of credit. Also contributing to the overall increase in assets during the first nine months of 2007 was the purchase of $20.0 million of BOLI during the third quarter. Property and equipment, net increased $1.3 million or 14.5%, primarily as a result of increased investment in new branches.

Our total deposits increased $14.5 million or 2.5% to $601.5 million at September 30, 2007 compared to $587.0 million at December 31, 2006. The increase was due to growth in certificate accounts of $24.6 million that was partially offset by decreases in savings and money market accounts and checking accounts. The most significant decrease was in checking accounts, which, at September 30, 2007, had decreased $9.7 million since December 31, 2006, despite a previously reported increase in these accounts of $1.2 million at June 30, 2007. Our other borrowed money, which is comprised of securities repurchase agreements entered into with certain commercial checking account customers, increased $2.6 million or 14.8% during the first nine months of 2007. Advances from the Federal Home Loan Bank decreased $3.1 million or 1.6% to $193.2 million at September 30, 2007 from $196.3 million at December 31, 2006.

Our stockholders' equity increased $132.9 million to $247.0 million at September 30, 2007 compared to $114.1 million at December 31, 2006. The increase was due primarily to the $134.7 million in net proceeds received from the second-step conversion and stock offering. The Company sold approximately 14.0 million shares of stock in its subscription, community and syndicated community offerings and issued approximately 10.5 million additional shares of its stock in exchange for the previously outstanding shares of Abington Community Bancorp, Inc., the Bank's former "mid-tier" holding company. The conversion and reorganization included the cancellation of the approximately 582,000 shares of treasury stock of Abington Community Bancorp with a cost basis of $8.3 million. A portion of the offering proceeds were used to make a loan to our ESOP, which purchased approximately 1.0 million additional shares of the Company's common stock for an aggregate of $10.4 million. Our retained earnings increased $2.0 million during the first nine months of 2007 as our net income of $4.9 million was partially offset by a reduction of $2.9 million resulting from the payment of our quarterly dividends.

Abington Bancorp, Inc. is the holding company for Abington Bank. Abington Bank is a Pennsylvania-chartered, FDIC-insured savings bank which was originally organized in 1867. Abington Bank conducts business from its headquarters and main office in Jenkintown, Pennsylvania as well as ten additional full service branch offices and six limited service banking offices located in Montgomery, Bucks and Delaware Counties, Pennsylvania. As of September 30, 2007, Abington Bancorp had $1.1 billion in total assets, $601.5 million in deposits and $247.0 million in stockholders' equity.

This news release contains certain forward-looking statements, including statements about the financial condition, results of operations and earnings outlook for Abington Bancorp, Inc. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors -- many of which are beyond the Company's control -- could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's reports filed from time-to-time with the Securities and Exchange Commission describe some of these factors, including general economic conditions, changes in interest rates, deposit flows, the cost of funds, changes in credit quality and interest rate risks associated with the Company's business and operations. Other factors described include changes in our loan portfolio, changes in competition, fiscal and monetary policies and legislation and regulatory changes. Investors are encouraged to access the Company's periodic reports filed with the Securities and Exchange Commission for financial and business information regarding the Company at www.abingtonbank.com under the Investor Relations menu. We undertake no obligation to update any forward-looking statements.

ABINGTON BANCORP, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

                                           September 30,     December 31,
                                                2007             2006
                                          ---------------  ---------------
ASSETS
Cash and due from banks                   $    24,389,266  $    22,136,438
Interest-bearing deposits in other banks       40,191,570       22,428,814
Short-term discount notes                      39,893,572                -
                                          ---------------  ---------------
      Total cash and cash equivalents         104,474,408       44,565,252
Investment securities held to maturity
 (estimated fair value--2007, $20,468,053;
  2006, $20,429,576)                           20,391,809       20,393,430
Investment securities available for sale
 (amortized cost--2007, $88,113,785;
  2006, $75,834,898)                           87,873,580       74,489,055
Mortgage-backed securities held to
 maturity (estimated fair value--
 2007, $47,079,629; 2006, $53,957,015)         49,019,879       56,143,619
Mortgage-backed securities available for
 sale (amortized cost--2007, $77,838,926;
 2006, $79,831,266)                            76,624,924       78,022,794
Loans receivable, net of allowance for
 loan losses (2007, $1,833,069;
 2006, $1,602,613)                            670,137,753      605,062,980
Accrued interest receivable                     5,323,578        4,365,535
Federal Home Loan Bank stock--at cost          11,116,800       11,240,700
Cash surrender value - bank owned life
 insurance                                     36,830,932       16,184,256
Property and equipment, net                    10,203,792        8,908,910
Deferred tax asset                              2,378,854        2,808,716
Prepaid expenses and other assets               6,594,226        3,001,035
                                          ---------------  ---------------
TOTAL ASSETS                              $ 1,080,970,535  $   925,186,282
                                          ===============  ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
  Deposits:
    Noninterest-bearing                   $    36,459,978  $    45,186,397
    Interest-bearing                          565,089,729      541,815,163
                                          ---------------  ---------------
      Total deposits                          601,549,707      587,001,560
  Advances from Federal Home Loan Bank        193,206,247      196,293,273
  Other borrowed money                         20,407,365       17,781,260
  Accrued interest payable                      7,074,545        2,504,270
  Advances from borrowers for taxes and
   insurance                                      652,643        2,624,310
  Accounts payable and accrued expenses        11,044,741        4,879,385
                                          ---------------  ---------------
           Total liabilities                  833,935,248      811,084,058
                                          ---------------  ---------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
  Preferred stock, $0.01 par value;
   authorized: 20,000,000 shares in 2007,
   10,000,000 shares in 2006; none issued               -                -
  Common stock, $0.01 par value;
   authorized: 80,000,000 shares in 2007,
   40,000,000 shares in 2006; issued:
   24,460,240 in 2007, 15,870,000 in
   2006; outstanding: 24,449,972 in
   2007, 15,288,154 in 2006                       244,602          158,700
  Additional paid-in capital                  200,535,440       69,674,243
  Treasury stock--at cost, 10,268 shares
   in 2007; 581,846 shares in 2006               (101,214)      (8,317,848)
  Unallocated common stock held by:
    Employee Stock Ownership Plan (ESOP)      (16,274,116)      (6,388,788)
    Recognition & Retention Plan Trust (RRP)   (2,051,994)      (2,606,781)
    Deferred compensation plans trust          (1,145,613)      (1,059,116)
  Retained earnings                            67,256,158       65,252,214
  Accumulated other comprehensive loss         (1,427,976)      (2,610,400)
                                          ---------------  ---------------
           Total stockholders' equity         247,035,287      114,102,224
                                          ---------------  ---------------
TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY                                   $ 1,080,970,535  $   925,186,282
                                          ===============  ===============



ABINGTON BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

                         Three Months Ended          Nine Months Ended
                           September 30,                September 30,
                    --------------------------- ---------------------------
                        2007          2006          2007          2006
                    ------------- ------------- ------------- ------------
INTEREST INCOME:
  Interest on loans $  11,141,193 $  10,146,533 $  32,170,905 $ 28,321,461
  Interest and
   dividends on
   investment and
   mortgage-backed
   securities:
    Taxable             3,533,525     2,715,257     8,967,312    7,599,627
    Tax-exempt            219,851       212,727       645,304      639,935
                    ------------- ------------- ------------- ------------
      Total interest
       income          14,894,569    13,074,517    41,783,521   36,561,023
INTEREST EXPENSE:
  Interest on
   deposits             5,424,299     4,629,897    16,052,944   11,776,374
  Interest on
   Federal Home Loan
   Bank advances        2,053,327     2,535,445     6,529,007    7,207,782
  Interest on other
   borrowed money         263,146       268,440       682,278      620,257
                    ------------- ------------- ------------- ------------
      Total interest
       expense          7,740,772     7,433,782    23,264,229   19,604,413
                    ------------- ------------- ------------- ------------
NET INTEREST INCOME     7,153,797     5,640,735    18,519,292   16,956,610
PROVISION FOR LOAN
 LOSSES                   163,390       120,000       272,935      128,000
                    ------------- ------------- ------------- ------------
NET INTEREST INCOME
 AFTER PROVISION
 FOR LOAN LOSSES        6,990,407     5,520,735    18,246,357   16,828,610
                    ------------- ------------- ------------- ------------
NON-INTEREST INCOME
  Service charges         398,880       435,978     1,202,522    1,282,401
  Rental income             7,536        10,348        22,608       25,520
  Income on bank
   owned life
   insurance              287,294       171,605       646,676      504,856
  Loss on sale of
   investment
   securities                   -             -             -         (601)
  Other income             89,679        97,910       308,893      349,289
                    ------------- ------------- ------------- ------------
      Total
       non-interest
       income             783,389       715,841     2,180,699    2,161,465
                    ------------- ------------- ------------- ------------
NON-INTEREST
 EXPENSES
  Salaries and
   employee benefits    2,585,302     2,158,377     7,319,200    6,402,075
  Occupancy               538,268       365,762     1,412,046    1,140,453
  Depreciation            197,524       173,723       581,249      490,874
  Professional
   services               307,643       128,871       765,924      514,731
  Data processing         361,965       322,957     1,069,943      957,032
  ATM expense              95,580        82,734       272,395      246,772
  Deposit insurance
   premium                 38,611        35,345       113,121      104,623
  Advertising and
   promotions             163,092       158,786       398,053      390,191
  Other                   535,712       437,795     1,631,663    1,419,965
                    ------------- ------------- ------------- ------------
      Total
       non-interest
       expenses         4,823,697     3,864,350    13,563,594   11,666,716
                    ------------- ------------- ------------- ------------
INCOME BEFORE
 INCOME TAXES           2,950,099     2,372,226     6,863,462    7,323,359
PROVISION FOR
 INCOME TAXES             876,731       665,667     1,918,751    2,099,227
                    ------------- ------------- ------------- ------------
NET INCOME          $   2,073,368 $   1,706,559 $   4,944,711 $  5,224,132
                    ============= ============= ============= ============
BASIC EARNINGS PER
 COMMON SHARE       $        0.09 $       0.07* $        0.21 $      0.22*
DILUTED EARNINGS
 PER COMMON SHARE   $        0.09 $       0.07* $        0.21 $      0.22*
BASIC AVERAGE
 COMMON SHARES
 OUTSTANDING:          22,386,157   23,286,516*    23,033,868  23,683,564*
DILUTED AVERAGE
 COMMON SHARES
 OUTSTANDING:          22,745,007   23,679,535*    23,539,206  24,065,036*

                    ------------- ------------- ------------- ------------
* Earnings per share and average common shares outstanding for the prior
  periods have been adjusted to reflect the impact of the second-step
  conversion and reorganization of the Company, which occurred on June 27,
  2007.



ABINGTON BANCORP, INC.

SELECTED FINANCIAL DATA (unaudited)

                                             Three Months     Nine Months
                                                 Ended           Ended
                                             September 30,   September 30,
                                            --------------  --------------
                                             2007    2006    2007    2006
                                            ------  ------  ------  ------

Selected Operating Ratios(1):
Average yield on interest-earning assets      6.02%   6.08%   5.99%   5.85%
Average rate on interest-bearing
 liabilities                                  4.10%   4.03%   4.09%   3.68%
Average interest rate spread(2)               1.92%   2.05%   1.90%   2.17%
Net interest margin(2)                        2.89%   2.62%   2.65%   2.71%
Average interest-earning assets to average
 interest-bearing liabilities               113.11% 116.61% 122.68% 117.45%
Net interest income after provision for
 loan losses to non-interest expense        144.92% 142.88% 134.53% 144.24%
Total non-interest expense to average
 assets                                       1.82%   1.71%   1.83%   1.77%
Efficiency ratio(3)                          60.78%  60.78%  65.52%  61.03%
Return on average assets                      0.78%   0.77%   0.67%   0.80%
Return on average equity                      3.38%   6.25%   3.86%   6.12%
Average equity to average assets             23.23%  12.35%  17.32%  13.06%

Asset Quality Ratios(4):
Non-performing loans as a percent of
 total loans receivable(5)                    0.77%   0.04%   0.77%   0.04%
Non-performing assets as a percent of
 total assets(5)                              0.48%   0.03%   0.48%   0.04%
Allowance for loan losses as a percent of
 non-performing loans                        35.55% 645.23%  35.55% 645.23%
Net charge-offs to average loans receivable   0.01%   0.01%   0.01%   0.01%

Capital Ratios(6):
Tier 1 leverage ratio                        15.48%  10.40%  15.48%  10.40%
Tier 1 risk-based capital ratio              24.24%  16.37%  24.24%  16.37%
Total risk-based capital ratio               24.51%  16.64%  24.51%  16.64%

                                            ------  ------  ------  ------
(1) With the exception of end of period ratios, all ratios are based on
    average monthly balances during the indicated periods and, for the
    three-month and nine-month periods ended September 30, 2007 and 2006,
    are annualized where appropriate.

(2) Average interest rate spread represents the difference between the
    average yield on interest-earning assets and the average rate paid on
    interest-bearing liabilities, and net interest margin represents net
    interest income as a percentage of average interest-earning assets.

(3) The efficiency ratio represents the ratio of non-interest expense
    divided by the sum of net interest income and non-interest income.

(4) Asset quality ratios are end of period ratios, except for net
    charge-offs to average loans receivable.

(5) Non-performing assets consist of non-performing loans and real estate
    owned.  Non-performing loans consist of all accruing loans 90 days or
    more past due and all non-accruing loans.  It is our policy to cease
    accruing interest on all loans 90 days or more past due.  Real estate
    owned consists of real estate acquired through foreclosure and real
    estate acquired by acceptance of a deed-in-lieu of foreclosure.

(6) Capital ratios are end of period ratios and are calculated for Abington
    Bank per regulatory requirements.

Contact Information

  • Contact:
    Robert W. White
    Chairman, President and CEO
    or
    Jack Sandoski
    Senior Vice President and CFO
    (215) 886-8280