SOURCE: Abington Bancorp, Inc.

October 30, 2009 16:30 ET

Abington Bancorp, Inc. Announces Results for the Third Quarter of 2009

JENKINTOWN, PA--(Marketwire - October 30, 2009) - Abington Bancorp, Inc. (the "Company") (NASDAQ: ABBC), the parent holding company for Abington Bank (the "Bank"), reported a net loss of $7.0 million for the quarter ended September 30, 2009, compared to net income of $2.4 million for the quarter ended September 30, 2008. The Company's basic and diluted loss per share were both $0.36 for the third quarter of 2009 compared to basic and diluted earnings per share of $0.11 and $0.10, respectively, for the third quarter of 2008. Additionally, the Company reported a net loss of $5.2 million for the nine months ended September 30, 2009, compared to net income of $6.0 million for the nine months ended September 30, 2008. The basic and diluted loss per share were both $0.26 for the first nine months of 2009 compared to basic and diluted earnings per share of $0.27 and $0.26, respectively, for the first nine months of 2008.

The net loss for the quarter and the nine-month period were due primarily to our provision for loan losses, which amounted to $8.8 million for the third quarter of 2009 and $12.3 million for the first nine months of 2009. Additionally, we recorded an expense of $4.5 million in the aggregate to write-down the value of certain properties held as real estate owned ("REO") during the third quarter of 2009.

Mr. Robert W. White, Chairman, President and CEO of the Company, stated, "Our performance for the third quarter and the first nine months of 2009 continues to reflect the ongoing impact of the recession throughout the economy. Not only has a slowdown in residential and commercial real estate activity resulted in a notable decrease in the current values of these types of properties, the collective effect of this downturn has impacted other businesses to which we have provided loans. As a result of financial pressure for some of our loan customers, including several of our largest borrowers, it became necessary to make additional provisions to our allowance for loan losses during the quarter, primarily related to our construction loan portfolio."

Mr. White continued, "Our third quarter and nine month deposit growth was very strong, including sizeable growth in our core deposits. We are fortunate to have a strong capital base that will allow us to absorb our loan losses and manage our way through the recession. We are focused on managing and resolving our non-performing assets, and through our stock repurchases and our quarterly cash dividends, we remain committed to building long-term shareholder value."

Net Interest Income

Net interest income was $7.4 million and $22.6 million for the three and nine months ended September 30, 2009, respectively, compared to $7.7 million and $22.1 million for the three and nine months ended September 30, 2008, respectively. The decrease in our net interest income for the third quarter of 2009 compared to the third quarter of 2008 was due to lower interest income period-over-period which more than offset a reduction in our interest expense. The increase in our net interest income for the first nine months of 2009 compared to the first nine months of 2008 occurred as a decrease in our interest expense period-over-period exceeded the decrease in our interest income. Our average interest rate spread decreased slightly to 2.34% for the three months ended September 30, 2009 from 2.37% for the three months ended September 30, 2008. Our average interest rate spread of 2.34% for the nine months ended September 30, 2009 represented an increase over an average interest rate spread of 2.17% for the nine months ended September 30, 2008. Our net interest margin decreased period-over-period to 2.71% and 2.76%, respectively, for the three-month and nine-month periods ended September 30, 2009 from 2.99% and 2.88%, respectively, for the three-month and nine-month periods ended September 30, 2008. The decrease in our net interest margin occurred primarily as a result of our deposit growth, which outpaced the growth in our interest-earning assets.

Interest income for the three months ended September 30, 2009 decreased $990,000 or 7.1% over the comparable 2008 period to $13.0 million. The decrease occurred as growth in the average balance of our total interest-earning assets was more than offset by a decrease in the average yield earned on those assets. The average balance of our total interest-earning assets increased $56.5 million or 5.5% to $1.09 billion for the third quarter of 2009 from $1.03 billion for the third quarter of 2008. The increase was driven by a $59.7 million increase in the average balance of our loans receivable. The average yield earned on our total interest-earning assets decreased 65 basis points to 4.77% for the third quarter of 2009 from 5.42% for the third quarter of 2008. The decreases in the average yield earned on interest-earning assets was primarily the result of the current interest rate environment, as reflected by the actions of the Federal Reserve Board's Open Market Committee in significantly cutting the federal funds rate throughout 2008 and maintaining a rate of near zero through the first nine months of 2009.

Interest income for the nine months ended September 30, 2009 decreased $1.9 million or 4.5% over the comparable 2008 period to $40.3 million. As was the case for the three-month period, the decrease occurred as growth in the average balance of our total interest-earning assets was more than offset by a decrease in the average yield earned on those assets.

Interest expense for the three months ended September 30, 2009 decreased $660,000 or 10.5% from the comparable 2008 period to $5.6 million. The decrease in our interest expense occurred as a decrease in the average rate paid on our total interest-bearing liabilities more than offset an increase in the average balance of those liabilities. The average rate we paid on our total interest-bearing liabilities decreased 62 basis points to 2.43% for the third quarter of 2009 from 3.05% for the third quarter of 2008. The average rate we paid on our total deposits decreased 56 basis points quarter-over-quarter, driven by a 53 basis point decrease in the average rate paid on our certificates of deposit. The average balance of our total deposits increased $155.1 million or 26.2% to $746.2 million for the third quarter of 2009 from $591.2 million for the third quarter of 2008 due primarily to growth in our core deposits. The average balance of our core deposits increased $100.7 million or 53.2% to $290.0 million for the third quarter of 2009 from $189.3 million for the third quarter of 2008. Although the average rate we paid on our advances from the FHLB increased 25 basis points for the third quarter of 2009 compared to the third quarter of 2008, this increase was more than offset by a decrease in the average balance of those advances of $57.9 million or 27.5% quarter-over-quarter. The average rate of our FHLB advances increased in the 2009 period due to a higher utilization of overnight advances during the 2008 period, on which we paid an interest rate substantially below the average rate paid on our other, longer-term advances from the FHLB.

Interest expense for the nine months ended September 30, 2009 decreased $2.4 million or 11.8% from the comparable 2008 period to $17.7 million. As was the case for the three-month period, the decrease in our interest expense occurred as a decrease in the average rate paid on our total interest-bearing liabilities offset an increase in the average balance of those liabilities.

Provision for Loan Losses

As stated earlier, we recorded a provision for loan losses of $8.8 million during the third quarter of 2009, and our provision for loan losses amounted to $12.3 million for the nine months ended September 30, 2009. Our provision for loan losses amounted to $309,000 and $1.0 million, respectively, for the quarter and nine months ended September 30, 2008. The increase in our provision for loan losses to $8.8 million in the quarter ended September 30, 2009 was due primarily to provisions with respect to the Company's participation interest in certain shared national credit loans described below.

--  The first of the shared national credit loans is a working capital
    credit facility to a national residential developer. The Company has a 4.2%
    participation interest in this loan with a carrying value of $8.3 million
    as of September 30, 2009. While all payments on this loan have been made to
    the Company as scheduled since the loan's origination, the borrower is
    under severe financial pressure, does not have adequate cash flow to
    service its outstanding obligations and has filed for Chapter 11 bankruptcy
    protection. Based on a review of the current status of the borrower, the
    loan is deemed to be impaired and has been placed on non-accrual status at
    September 30, 2009. During the quarter ended September 30, 2009, $6.6
    million of our provision for loan losses was allocated to this loan, a
    slight reduction from the expected provision of $7.3 million which we
    previously announced in August. The Company understands that the borrower
    has recently entered into a non-binding letter of intent to sell
    substantially all of its assets to a third party. While no assurance can be
    given that the borrower will be successful in entering into such a sale
    transaction, if the borrower does enter into a binding agreement on terms
    that are similar to those in the letter of intent, the Company may recover
    some of the losses announced herein in future periods.
    
--  The second shared national credit loan is a real estate acquisition,
    construction and development loan for a planned unit development. The
    Company has an 11.8% participation interest in this loan with a carrying
    value of $3.9 million as of September 30, 2009. This loan, which is not
    related to or affiliated with the first shared national credit previously
    described herein, was placed on non-accrual status and deemed impaired by
    the Company in June 2009. As previously announced, an additional provision
    for loan losses of approximately $947,000 with respect to this loan was
    recognized during the quarter ended September 30, 2009, and as of September
    30, 2009, a total of $2.1 million of our allowance for loan losses has been
    allocated to this loan.
    
--  A third shared national credit loan was also made to a residential
    development that is affiliated with the residential developer which is the
    borrower in the first impaired shared national credit loan described above.
    This loan, which has an outstanding balance to the Company of $4.7 million
    at September 30, 2009, was also determined to be impaired during the
    quarter and was placed on non-accrual status at September 30, 2009,
    however, we believe that we have sufficient collateral securing this loan
    and no provision for loan losses were made with respect to this loan during
    the quarter ended September 30, 2009.
    

Our loan portfolio at September 30, 2009 included an aggregate of $43.6 million of non-performing loans, defined as non-accruing loans and accruing loans 90 days or more past due, compared to $39.1 million of non-performing loans at June 30, 2009 and $23.5 million of non-performing loans at December 31, 2008. Although the number of our non-performing loans decreased during the third quarter of 2009, the balance of such non-performing loans increased due to the addition of the aforementioned shared national credit loans with an aggregate outstanding balance of approximately $13.0 million at September 30, 2009. During the third quarter, approximately, $10.2 million of our non-performing loans outstanding at June 30, 2009 were brought current, while an additional $5.0 million of non-performing loans were transferred to REO, however $2.6 million of new loans became 90 days or more delinquent during the period. The increase in non-performing loans during the first nine months of 2009 has been due to a growing number of delinquent loans, including certain, relatively large loans, primarily within our construction loan portfolio (which includes land acquisition and development loans). Of the 27 non-performing loans that comprise the $43.6 million balance of non-performing loans at September 30, 2009, 19 of those loans, with an aggregate outstanding balance of $42.3 million, were construction loans. As of September 30, 2009, 27.1% of our $156.0 million of total outstanding construction loans were non-performing loans at such date. As of September 30, 2009, $17.4 million, or 92.5%, of our allowance for loan losses was allocated to construction loans. At September 30, 2009 and December 31, 2008, our non-performing loans amounted to 5.53% and 3.06%, respectively, of loans receivable, and our allowance for loan losses amounted to 43.17% and 49.35%, respectively, of non-performing loans. At September 30, 2009 and December 31, 2008, our non-performing assets amounted to 5.03% and 2.12% of total assets, respectively. We are continuing to carefully monitor our loan portfolio, however, given the impact of the current economic environment it is possible that additional provisions for loan losses will be necessary in subsequent quarters.

Non-Interest Income and Expenses

Our total non-interest income decreased $5.1 million to a loss of $4.1 million for the third quarter of 2009 from non-interest income of $984,000 for the third quarter of 2008. The decrease was primarily due to a $5.2 million loss on real estate owned with no such loss in the third quarter of 2008. As previously stated, the loss was due to an expense of $4.5 million in the aggregate to write-down the value of certain REO properties. Of this total, $3.9 million was recorded in relation to a 40-unit, high rise residential condominium project in Center City, Philadelphia, that was acquired as REO earlier in 2009. The third quarter expense was recorded to write-down the value of the property to reflect a newly received, updated appraisal as well as the sales price indicated in a letter of intent to sell this REO property which the Company entered into during the third quarter. The $627,000 remainder of the expense recorded during the third quarter of 2009 was taken to write-down the value of two other commercial properties, both of which also are located in Center City, Philadelphia.

Our total non-interest income decreased $4.8 million to a loss of $2.0 million for the first nine months of 2009 from income of $2.8 million for the first nine months of 2008. As was the case for the quarter ended September 30, 2009, the decrease was due primarily to a loss on real estate owned of $5.0 million with no such loss in the comparable 2008 period.

Our total non-interest expenses for the third quarter of 2009 amounted to $5.5 million, representing an increase of $366,000 or 7.1% from the third quarter of 2008. The most significant increase was in our deposit insurance premium expense, which increased $226,000 or 214.6% to $332,000 for the quarter ended September 30, 2009. The increase in the insurance premium was due to an increase in our regular quarterly premium as a result of a new fee structure implemented by the FDIC. Our salaries and employee benefits, occupancy, depreciation, professional services and data processing expenses also increased quarter-over-quarter.

Our total non-interest expenses for the first nine months of 2009 amounted to $17.4 million, representing an increase of $1.7 million or 10.6% from the first nine months of 2008. As was the case for the quarter ended September 30, 2009, the most significant increase was in our deposit insurance premium expense. Our deposit insurance premium expense increased $1.3 million to $1.5 million for the nine months ended September 30, 2009 from $186,000 for the nine months ended September 30, 2008, due to the aforementioned increase in the fee structure implemented by the FDIC, as well as a special assessment by the FDIC on all insured institutions during the second quarter of 2009. Our professional services expense increased $145,000 or 16.4% for the first nine months of 2009 compared to the first nine months of 2008 due primarily to additional legal expenses incurred in connection with the resolution of certain non-performing loans. Salaries and employee benefits, occupancy, depreciation, data processing and director compensation expenses also increased for the first nine months of 2009 compared to the first nine months of 2008.

The Company recorded an income tax benefit of approximately $4.1 million for the third quarter of 2009 compared to an income tax expense of approximately $877,000 for the third quarter of 2008. The Company recorded an income tax benefit of approximately $3.9 million for the first nine months of 2009 compared to an income tax expense of approximately $2.1 million for the first nine months of 2008.

Balance Sheet

The Company's total assets increased $37.7 million, or 3.2%, to $1.23 billion at September 30, 2009 compared to $1.19 billion at December 31, 2008. Our total cash and cash equivalents increased $19.3 million, largely as a result of $87.6 million in maturities, repayments and sales of investment and mortgage-backed securities outpacing $68.3 million in purchases of new investment and mortgage-backed securities. The balance of our mortgage-backed securities decreased $23.5 million during the first nine months of 2009, and the balance of our investment securities increased $7.0 million during the same period. Our net loans receivable increased $11.5 million during the first nine months of 2009, even after the acquisition of collateral properties in settlement of certain loans resulted in a $16.4 million increase in the balance of our REO during the first nine months of 2009, $16.3 million of which occurred during the first six months of 2009. Our largest loan growth was in multi-family residential and commercial real estate loans, which increased $28.5 million during the first nine months of 2009. Our new loan originations were primarily funded by an increase in our deposits.

Our total deposits increased $152.7 million or 23.0% to $817.7 million at September 30, 2009 compared to $665.0 million at December 31, 2008. The increase during the first nine months of 2009 was due to growth in both core deposits and certificate accounts, but the largest increase was in our core deposits. During the first nine months of 2009, our savings and money market accounts grew $90.5 million, or 61.1%, and our checking accounts grew $10.0 million, or 9.5%, resulting in an increase to core deposits of $100.5 million, or 39.6%. Our certificate accounts also increased, growing $52.2 million or 12.7%. Advances from the FHLB decreased $104.3 million or 40.6% to $152.8 million at September 30, 2009 compared to $257.1 million at December 31, 2008. The repayment of a portion of our advances was based on a number of factors including an evaluation of our overall liquidity and leverage positions, as well as our collateral position with the FHLB.

Our total stockholders' equity decreased to $221.5 million at September 30, 2009 from $238.1 million at December 31, 2008. The decrease was due primarily to the net losses incurred, as well as costs incurred for our stock repurchase programs during the first nine months of 2009. Our retained earnings decreased by $8.2 million at September 30, 2009 compared to December 31, 2008 primarily as a result of our $5.2 million loss for the first nine months of 2009 combined with the payment of quarterly dividends in the amount of $3.0 million in the aggregate. During the first nine months of 2009, we repurchased approximately 1.7 million shares of the Company's common stock for an aggregate cost of approximately $12.7 million as part of our stock repurchase plans and our recognition and retention plans. Our decisions to repurchase our common stock were based on determinations by management and the Board of Directors that the current trading price of our stock, which remains below book value, provided an opportunity to utilize our current capital to repurchase shares in a manner intended to positively affect shareholder value. Our flexibility to undertake such a strategy is the result of our strong overall capital position. Even after the impact of our quarterly loss, the Bank's regulatory capital levels far exceed requirements for well capitalized institutions.

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 12 additional full service branch offices and seven limited service banking offices located in Montgomery, Bucks and Delaware Counties, Pennsylvania. As of September 30, 2009, Abington Bancorp had $1.23 billion in total assets, $817.7 million in total deposits and $221.5 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 and the adequacy of our allowance for loan losses. 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.

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


                                           September 30,     December 31,
                                                2009             2008
                                          ---------------  ---------------
ASSETS

Cash and due from banks                   $    19,182,155  $    23,074,990
Interest-bearing deposits in other banks       31,987,069        8,788,354
                                          ---------------  ---------------
      Total cash and cash equivalents          51,169,224       31,863,344
Investment securities held to maturity
 (estimated fair value--2009, $21,571,775;
  2008, $20,590,495)                           20,387,484       20,389,106
Investment securities available for sale
 (amortized cost--2009, $74,346,782; 2008,
  $67,782,158)                                 76,345,679       69,323,505
Mortgage-backed securities held to
 maturity (estimated fair value--2009,
 $75,000,027; 2008, $81,702,915)               73,344,525       83,093,064
Mortgage-backed securities available for
 sale (amortized cost--2009, $132,649,367;
 2008, $148,601,190)                          137,902,351      151,628,507
Loans receivable, net of allowance for
 loan losses (2009, $18,801,777; 2008,
 $11,596,784)                                 768,063,889      756,552,352
Accrued interest receivable                     4,541,822        4,856,707
Federal Home Loan Bank stock--at cost          14,607,700       14,607,700
Cash surrender value - bank owned life
 insurance                                     40,538,368       39,184,889
Property and equipment, net                    10,650,464       11,070,542
Real estate owned                              18,180,990        1,739,599
Deferred tax asset                              7,247,741        4,456,103
Prepaid expenses and other assets               4,447,757          988,060
                                          ---------------  ---------------

TOTAL ASSETS                              $ 1,227,427,994  $ 1,189,753,478
                                          ===============  ===============
LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:
  Deposits:
    Noninterest-bearing                   $    42,157,760  $    37,194,591
    Interest-bearing                          775,527,193      627,755,843
                                          ---------------  ---------------
      Total deposits                          817,684,953      664,950,434
  Advances from Federal Home Loan Bank        152,754,813      257,051,203
  Other borrowed money                         22,332,653       17,609,637
  Accrued interest payable                      4,654,465        2,617,721
  Advances from borrowers for taxes and
   insurance                                      821,663        3,275,285
  Accounts payable and accrued expenses         7,636,733        6,148,613
                                          ---------------  ---------------
           Total liabilities                1,005,885,280      951,652,893
                                          ---------------  ---------------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Preferred stock, $0.01 par value,
   20,000,000 shares authorized none
   issued                                               -                -
  Common stock, $0.01 par value,
   80,000,000 shares authorized;
   24,460,240 shares issued;
   outstanding: 21,674,639 shares in
   2009, 23,369,916 shares in 2008                244,602          244,602
  Additional paid-in capital                  201,793,667      201,378,465
  Treasury stock--at cost, 2,785,601
   shares in 2009, 1,090,324 shares in 2008   (23,162,583)     (10,525,100)
  Unallocated common stock held by:
    Employee Stock Ownership Plan (ESOP)      (14,509,138)     (15,138,418)
    Recognition & Retention Plan Trust
     (RRP)                                     (4,321,617)      (5,593,821)
    Deferred compensation plans trust            (989,350)      (1,190,857)
  Retained earnings                            57,771,143       66,007,138
  Accumulated other comprehensive income        4,715,990        2,918,576
                                          ---------------  ---------------
           Total stockholders' equity          221,542,714      238,100,585
                                          ---------------  ---------------
TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY                                   $ 1,227,427,994  $ 1,189,753,478
                                          ===============  ===============




ABINGTON BANCORP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

                        Three Months Ended          Nine Months Ended
                          Septebmer 30,               September 30,
                    --------------------------  --------------------------
                        2009          2008          2009          2008
                    ------------  ------------- ------------  ------------
INTEREST INCOME:
  Interest on loans $  9,872,855  $  10,266,825 $ 30,050,716  $ 31,582,679
  Interest and
   dividends on
   investment and
   mortgage-backed
   securities:
     Taxable           2,736,909      3,158,686    9,022,260     8,600,152
     Tax-exempt          401,062        374,661    1,204,646     1,010,059
  Interest and
   dividends on
   other interest-
   earning assets          6,607        206,824       33,537     1,031,230
                    ------------  ------------- ------------  ------------
        Total
         interest
         income       13,017,433     14,006,996   40,311,159    42,224,120
INTEREST EXPENSE:
  Interest on
   deposits            3,801,382      3,842,347   11,889,584    13,015,386
  Interest on
   Federal Home
   Loan Bank
   advances            1,794,970      2,342,205    5,783,241     6,755,223
  Interest on other
   borrowed money         19,879         91,429       56,214       321,002
                    ------------  ------------- ------------  ------------
        Total
         interest
         expense       5,616,231      6,275,981   17,729,039    20,091,611
                    ------------  ------------- ------------  ------------
NET INTEREST INCOME    7,401,202      7,731,015   22,582,120    22,132,509
PROVISION FOR LOAN
 LOSSES                8,802,678        309,372   12,324,090     1,035,360
                    ------------  ------------- ------------  ------------
NET INTEREST INCOME
 AFTER PROVISION FOR
 LOAN LOSSES          (1,401,476)     7,421,643   10,258,030    21,097,149
                    ------------  ------------- ------------  ------------
NON-INTEREST (LOSS)
 INCOME
  Service charges        388,850        416,449    1,175,515     1,222,899
  Income on bank
   owned life
   insurance             451,713        476,406    1,353,479     1,436,381
  Net loss on real
   estate owned       (5,152,887)             -   (4,983,805)            -
  Net gain on sale
   of securities           5,102              -        5,102       146,375
  Impairment charge
   on investment
   securities                  -              -            -      (330,527)
  Other income           160,998         91,564      451,836       308,388
                    ------------  ------------- ------------  ------------
        Total
         non-interest
         (loss)
         income       (4,146,224)       984,419   (1,997,873)    2,783,516
                    ------------  ------------- ------------  ------------
NON-INTEREST
 EXPENSES
  Salaries and
   employee
   benefits            2,736,723      2,668,866    8,503,992     8,487,776
  Occupancy              630,544        553,075    1,734,540     1,594,913
  Depreciation           228,583        214,231      676,657       612,572
  Professional
   services              335,623        302,437    1,034,023       888,585
  Data processing        383,011        358,183    1,175,790     1,119,805
  Deposit insurance
   premium               331,735        105,436    1,486,239       186,478
  Advertising and
   promotions            128,613        156,828      309,669       375,299
  Director
   compensation          224,709        224,867      673,564       634,096
  Other                  518,032        567,601    1,767,573     1,799,341
                    ------------  ------------- ------------  ------------
        Total
         non-interest
         expenses      5,517,573      5,151,524   17,362,047    15,698,865
                    ------------  ------------- ------------  ------------
(LOSS) INCOME
 BEFORE INCOME
 TAXES               (11,065,273)     3,254,538   (9,101,890)    8,181,800
(BENEFIT) PROVISION
 FOR INCOME TAXES     (4,089,152)       876,629   (3,900,369)    2,138,847
                    ------------  ------------- ------------  ------------
NET (LOSS) INCOME   $ (6,976,121) $   2,377,909 $ (5,201,521) $  6,042,953
                    ============  ============= ============  ============
BASIC (LOSS)
 EARNINGS PER
 COMMON SHARE       $      (0.36) $        0.11 $      (0.26) $       0.27
DILUTED (LOSS)
 EARNINGS PER
 COMMON SHARE       $      (0.36) $        0.10 $      (0.26) $       0.26
BASIC AVERAGE
 COMMON SHARES
 OUTSTANDING:         19,635,808     21,855,861   19,963,132    22,112,239
DILUTED AVERAGE
 COMMON SHARES
 OUTSTANDING:         19,635,808     22,668,249   19,963,132    22,908,703




ABINGTON BANCORP, INC.

UNAUDITED SELECTED FINANCIAL DATA

                                    Three Months Ended   Nine Months Ended
                                       September 30,       September 30,
                                     -----------------   -----------------
                                      2009      2008      2009      2008
                                     -------   -------   -------   -------
Selected Operating Ratios(1):
Average yield on interest-earning
 assets                                 4.77%     5.42%     4.92%     5.49%
Average rate on interest-bearing
 liabilities                            2.43%     3.05%     2.58%     3.32%
Average interest rate spread(2)         2.34%     2.37%     2.34%     2.17%
Net interest margin(2)                  2.71%     2.99%     2.76%     2.88%
Average interest-earning assets to
 average interest-bearing liabilities 117.83%   125.63%   119.19%   127.10%
Net interest income after provision
 for loan losses to non-interest
 expense                             (25.39)%   144.09%    59.08%   134.38%
Total non-interest expense to
 average assets                         1.83%     1.83%     2.89%     1.88%
Efficiency ratio(3)                   169.52%    59.10%    84.35%    63.01%
Return on average assets              (2.31)%     0.84%   (0.87)%     0.72%
Return on average equity             (12.31)%     3.86%   (4.51)%     3.24%
Average equity to average assets       18.77%    21.87%    19.21%    22.36%

Asset Quality Ratios(4):
Non-performing loans as a percent
 of total loans receivable(5)           5.53%     3.02%     5.53%     3.02%
Non-performing assets as a percent
 of total assets(5)                     5.03%     2.16%     5.03%     2.16%
Allowance for loan losses as a
 percent of non-performing loans       43.17%    13.13%    43.17%    13.13%
Allowance for loan losses as a
 percent of total loans                 2.39%     0.40%     2.39%     0.40%
Net charge-offs (recoveries) to
 average loans receivable               0.39%   (0.04)%     0.90%   (0.01)%

Capital Ratios(6):
Tier 1 leverage ratio                  13.57%    15.03%    13.57%    15.03%
Tier 1 risk-based capital ratio        20.27%    23.11%    20.27%    23.11%
Total risk-based capital ratio         21.54%    23.50%    21.54%    23.50%
                                     -------   -------   -------   -------


(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, 2009 and 2008,
    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, with
    certain limited exceptions, to cease accruing interest on single-family
    residential mortgage loans 120 days or more past due and all other
    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.




ABINGTON BANCORP, INC.

UNAUDITED SELECTED FINANCIAL DATA (continued)



                                       September 30, June 30,  December 31,
                                           2009        2009        2008
                                        ----------  ----------  ----------
                                              (Dollars in Thousands)

Non-accruing loans:
  One- to four-family residential       $      239  $      240  $       --
  Multi-family residential and
   commercial real estate                      261         561       2,597
  Construction                              31,477      19,647      20,594
  Commercial business                           --          --          --
  Home equity lines of credit                   --          --          --
  Consumer non-real estate                      --          --          --
                                        ----------  ----------  ----------
     Total non-accruing loans               31,977      20,448      23,191
                                        ----------  ----------  ----------
Accruing loans 90 days or more past
 due:
  One- to four-family residential              633         748         311
  Multi-family residential and
   commercial real estate                       --          --          --
  Construction                              10,844      17,853          --
  Commercial business                           --          --          --
  Home equity lines of credit                   97          18          --
  Consumer non-real estate                      --          --          --
                                        ----------  ----------  ----------
     Total accruing loans 90 days or
      more past due                         11,574      18,619         311
                                        ----------  ----------  ----------
       Total non-performing loans(1)        43,551      39,067      23,502
                                        ----------  ----------  ----------
Real estate owned, net                      18,181      18,083       1,740
                                        ----------  ----------  ----------
       Total non-performing assets      $   61,732  $   57,150  $   25,242
                                        ==========  ==========  ==========
Total non-performing loans as a
 percentage of loans                          5.53%       5.04%       3.06%
                                        ==========  ==========  ==========
Total non-performing loans as a
 percentage of total assets                   3.55%       3.30%       1.98%
                                        ==========  ==========  ==========
Total non-performing assets as a
 percentage of total assets                   5.03%       4.83%       2.12%
                                        ==========  ==========  ==========


(1) Non-performing loans consist of non-accruing loans plus accruing loans
    90 days or more past due.

Contact Information

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