JENKINTOWN, PA (NASDAQ: ABBC), the parent holding company for
Abington Bank (the "Bank"), reported net income of $1.7 million for
the quarter ended June 30, 2008, representing an increase of
$338,000 or 24.0% over the comparable 2007 period. Basic and
diluted earnings per share each increased to $0.08 for the quarter
compared to $0.06 for each for the second quarter of 2007.
Additionally, the Company reported net income of $3.7 million for
the six months ended June 30, 2008, representing an increase of
$794,000 or 27.6% over the comparable 2007 period. Basic and
diluted earnings per share each increased to $0.16 for the first
six months of 2008 compared to $0.12 for each for the first six
months of 2007.
The Company also announced today that it will repurchase up to
5% of its outstanding shares, or 1,221,772 shares. The shares may
be purchased in the open market or in privately negotiated
transactions from time to time depending on market conditions and
other factors over a one-year period. Repurchases are expected to
commence promptly.
The increase reported in net income for the three-month and
six-month periods was primarily driven by an increase in our net
interest income. The increase in net interest income was partially
offset by an impairment charge of approximately $331,000 taken at
June 30, 2008 on our investment in a mortgage-backed securities
based mutual fund and increases in our provisions for loan losses
to $677,000 and $726,000, respectively, for the three and six
months ended June 30, 2008.
Mr. Robert W. White, Chairman, President and CEO of the Company,
stated, "In the midst of the well-publicized turmoil in the
financial and credit markets, we are very pleased with our
quarterly and half year results. Although we did record a larger
provision to the allowance for loan losses during the second
quarter, this charge related to one specific borrower, and our
overall underwriting remains consistently sound. Moreover, our
capital base continues to be extremely strong, leaving us well
positioned for future growth. We have benefited from the return to
a more normal interest rate yield curve, realizing increases in
both our interest rate spread and net interest margin. Our core
deposits are up, and we are continuing with our branch expansion
plans with the opening of a new branch in Hatboro, Pennsylvania in
the coming quarter."
Mr. White continued, "We believe that the share repurchase plan
approved by the Board of Directors at their July meeting will
benefit our shareholders by improving the Company's return on
equity and earnings per share as well as aid us in managing our
strong capital position. With the price of our stock recently
trading below our book value, our Board believes that this is the
appropriate time to initiate a buyback."
Net interest income was $7.5 million and $14.4 million for the
three months and six months ended June 30, 2008, respectively,
representing increases of 28.1% and 26.7%, respectively, over the
comparable 2007 periods. The increases in our net interest income
arose as increases in our interest income were augmented by
decreases in our interest expense. Our average interest rate spread
and net interest margin for the second quarter of 2008 increased to
2.22% and 2.92%, respectively, from 1.85% and 2.55%, respectively,
for the second quarter of 2007. Our average interest rate spread
and net interest margin for first six months of 2008 increased to
2.06% and 2.82%, respectively, from 1.87% and 2.52%, respectively,
for the first six months of 2007.
Interest income for the three months ended June 30, 2008
increased $351,000 or 2.6% over the comparable 2007 period to $14.0
million. The increase was primarily as a result of growth in the
average balance of our total interest-earning assets, partially
offset by a decrease in the average yield on our total
interest-earning assets. Although the largest growth in absolute
dollars was in the average balance of loans receivable, which
increased $65.6 million quarter-over-quarter, the most significant
growth was in the average balance of our mortgage-backed
securities, which increased $44.5 million or 34.8%
quarter-over-quarter. Other interest-earning assets decreased $7.4
million or 12.8% quarter-over-quarter, as interest-bearing deposits
in other banks were invested in investment and mortgage-backed
securities. Despite an increase of 11 basis points in the average
yield on our mortgage-backed securities in the second quarter of
2008 compared to the second quarter of 2007, the average yield on
our total interest-earning assets decreased 49 basis points
quarter-over-quarter, driven by a 67 basis point decrease in the
average yield on our loans receivable and a 101 basis point
decrease in the average yield on our other interest-earning
assets.
Interest income for the six months ended June 30, 2008 increased
$1.3 million or 4.9% over the comparable 2007 period to $28.2
million. As was the case in the three-month period, an increase in
the average balance of our total interest-earning assets was
partially offset by a decrease in the average yield earned. Again,
the largest growth in absolute dollars in the average balances
among our interest-earning assets was in loans receivable, which
increased $69.8 million for the first half of 2008 compared to the
first half of 2007, and the most significant growth was in the
average balance of our mortgage-backed securities, which increased
$30.1 million or 23.0% period-over-period. The average balances of
investment securities and other interest-earning assets increased
$11.2 million and $8.9 million, respectively, for the first half of
2008 compared to the first half of 2007. Similar to the three-month
period, the average yield on our total interest-earning assets
decreased 44 basis points for the first half of 2008 compared to
the first half of 2007, as decreases in the average yields of loans
receivable and other interest-earning assets of 59 and 53 basis
points, respectively, period-over-period, outweighed increases in
the average yields on investment and mortgage-backed
securities.
Interest expense for the three months ended June 30, 2008
decreased $1.3 million or 16.6% from the comparable 2007 period to
$6.5 million. 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. The average rate we paid on our total interest-bearing
liabilities decreased 86 basis points to 3.24% for the second
quarter of 2008 from 4.10% for the second quarter of 2007. The
average rate we paid on our total deposits decreased 101 basis
points quarter-over-quarter, driven by a 142 basis point decrease
in the average rate paid on our certificates of deposit. The
average balance of our total interest-bearing liabilities increased
$42.6 million to $804.0 million for the quarter ended June 30, 2008
from $761.4 million for the quarter ended June 30, 2007. Our
average deposit balance grew by $32.1 million over this same
period, with over half of that growth occurring in core
deposits.
Interest expense for the six months ended June 30, 2008
decreased $1.7 million or 11.0% over the comparable 2007 period to
$13.8 million. As was the case in 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. The
average rate we paid on our total interest-bearing liabilities
decreased 63 basis points to 3.47% for the first half of 2008 from
4.10% for the first half of 2007. The average rate we paid on our
total deposits decreased 71 basis points period-over-period, driven
by a 100 basis point decrease in the average rate paid on our
certificates of deposit. The average balance of our total
interest-bearing liabilities increased $37.9 million to $796.0
million for the six months ended June 30, 2008 from $758.1 million
for the six months ended June 30, 2007. Our average deposit balance
grew by $33.3 million over this same period, with approximately
40.0% of that growth occurring in core deposits.
We recorded a $677,000 provision to the allowance for loan
losses during the second quarter of 2008, and our provision for
loan losses amounted to $726,000 for the six months ended June 30,
2008. During the second quarter of 2007, we recorded a provision of
$106,000 to the allowance for loan losses, and our provision for
loan losses amounted to $110,000 for the six months ended June 30,
2007. 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 June 30, 2008 included an aggregate of $532,000
of non-performing loans compared to $1.6 million of non-performing
loans at December 31, 2007. Our non-performing loans at June 30,
2008 consist primarily of one construction and one commercial real
estate loan to one borrower with an aggregate balance of $468,000.
At June 30, 2008, our non-performing loans amounted to 0.08% of
loans receivable and our allowance for loan losses amounted to
473.3% of non-performing loans. The provision for loan losses taken
during the second quarter of 2008, however, principally relates to
two loans to another borrower that were not included in
non-performing loans at June 30, 2008, as they were neither 90 days
past due nor on non-accrual status at that date. These loans,
however, have been classified and determined to be impaired.
Although not non-performing at June 30, 2008, interest payments
during the second quarter of 2008 were not received on time as
required by the loan agreements. The larger of these two loans is a
$16.7 million loan for the construction of a 40 unit high rise
residential condominium project in Center City, Philadelphia. This
is the Bank's largest construction loan. Although the building
securing this loan is nearing completion, construction for this
project is behind schedule. Furthermore, the Bank recently approved
an additional loan for $1.5 million in July 2008 to cover certain
cost overruns and permit completion of the project after also
approving an additional loan of $1.5 million in April 2008. Based
on our review of the status of this project and consideration of an
updated appraisal of the collateral, as well as consideration of
the additional collateral underlying the loan, a reserve of
approximately $821,000 was established at June 30, 2008. Also at
June 30, 2008, a reserve of approximately $43,000 was established
on a second loan to this borrower with a balance of $3.6 million.
Management is continuing to monitor these loans.
Our total non-interest income for the second quarter of 2008
amounted to $846,000, representing an increase of $136,000 or 19.2%
from the second quarter of 2007. The increase was due primarily to
an increase in income on bank owned life insurance ("BOLI") of
$303,000 and a gain on the sale of securities of $158,000 compared
to no such gain in 2007. The increase in income on BOLI resulted
mainly from the purchase of $20.0 million of additional BOLI during
the third quarter of 2007. Partially offsetting these increases was
an impairment charge of $331,000 taken during the second quarter of
2008 with no such charge in 2007. The impairment charge was taken
to write-down the carrying value of our investment in a
mortgage-backed securities based mutual fund to its fair value of
$3.0 million at June 30, 2008, based on our determination that the
investment was other-than-temporarily impaired. The fund, the AMF
Ultra Short Mortgage Fund, has had a continuing decline in net
asset value and there have been recent credit rating downgrades in
certain of the private label mortgage-backed securities held by the
fund. While the fund returned a dividend of approximately 3.75% at
June 30, 2008, the fair value has continued to decline. It is
possible that additional impairment charges will be recorded in
subsequent quarters.
Our total non-interest income for the first half of 2008
amounted to $1.8 million, representing an increase of $402,000 or
28.8% from the first half of 2007. Similar to the three-month
period, the increase in total non-interest income for the six-month
period was primarily due to an increase in income on BOLI of
$601,000 and a gain on sale of investments of $146,000 that were
partially offset by the securities impairment charge of $331,000.
The reasons for these fluctuations for the six-month period mirror
the reasons for the fluctuations for the three-month period.
Our total non-interest expenses for the second quarter of 2008
amounted to $5.4 million, representing an increase of $818,000 or
18.0% from the second quarter of 2007. The largest increases were
in salaries and employee benefits, occupancy, and other
non-interest expense. Salaries and employee benefits expense
increased $547,000 quarter-over-quarter, due largely to growth in
the total number of employees, normal merit increases in salaries,
and higher health and insurance benefit costs. Salaries and
employee benefits expense also increased due to an additional
expense of $219,000 recognized during the second quarter of 2008 as
the result of the issuance of awards to officers and employees
under the 2007 Stock Option Plan (the "2007 SOP") and the 2007
Recognition and Retention Plan (the "2007 RRP") which were approved
by shareholders in January 2008. Occupancy expense increased by
$71,000, quarter-over-quarter, primarily as a result of our
additional branches opened in Chalfont and Spring House,
Pennsylvania, during 2007 as well as additional equipment and
computer costs for all of our facilities. The increase in other
non-interest expense was due largely to an additional expense of
$106,000 for the issuance of awards to directors under the 2007 SOP
and 2007 RRP. Also contributing to the increase in other
non-interest expense was a $36,000 expense for real estate
owned.
Our total non-interest expenses for the first six months of 2008
amounted to $10.5 million, representing an increase of $1.8 million
or 20.7% from the first six months of 2007. As was the case with
the three-month period, the largest increases for the six-month
period were in salaries and employee benefits, occupancy and other
non-interest expense. Additionally, professional services expense
increased $128,000 period-over-period. The causes for the increases
in salaries and employee benefits, occupancy and other non-interest
expense over the six-month periods mirrored the causes for the
increases for the three-month periods. Salaries and employee
benefits expense increased $1.1 million period-over-period due
largely to growth in the total number of employees, normal merit
increases in salaries, and higher health and insurance benefit
costs. Salaries and employee benefits expense also increased due to
an additional expense of $395,000 recognized during the first half
of 2008 as the result of the issuance of awards to officers and
employees under the 2007 SOP and the 2007 RRP. Occupancy expense
increased by $168,000, quarter-over-quarter, primarily as a result
of our additional branches opened in Chalfont and Spring House,
Pennsylvania, during 2007 as well as additional equipment and
computer costs for all of our facilities. The increase in other
non-interest expense was due largely to an additional expense of
$176,000 for the issuance of awards to directors under the 2007 SOP
and 2007 RRP. Also contributing to the increase in other
non-interest expense for the first half of 2008 compared to the
first half of 2007 were increases in expenses for appraisal fees,
office supplies, copying, and deposit premiums as well as a $53,000
expense for real estate owned. The increase in professional
services expense was due to increases in both legal and accounting
fees. The increase in legal fees was due in part to expenses
related to the special meeting of shareholders held in January 2008
as well as expenses incurred in connection with the resolution of
certain non-performing loans.
Income tax expense for the second quarter of 2008 amounted to
$570,000 compared to $515,000 for the second quarter of 2007.
Income tax expense for the first half of 2008 amounted to $1.3
million compared to $1.0 million for the first half of 2007. Our
effective tax rate improved to 24.6% and 25.6% for the quarter and
six months ended June 30, 2008, respectively, from 26.8% and 26.6%
for quarter and six months ended June 30, 2007, respectively. This
occurred in part due to purchases of additional tax-exempt
investments, including municipal bonds and BOLI, that allowed our
tax-exempt income to increase as other sources of income were
increasing. The increases in our provisions for income taxes were a
result of the increases in our pre-tax income.
The Company's total assets increased $27.7 million, or 2.6%, to
$1.11 billion at June 30, 2008 compared to $1.08 billion at
December 31, 2007. Our total cash and cash equivalents decreased
$14.1 million or 20.7% during the first half of 2008 as we
redeployed certain of our interest-bearing deposits in other banks
to purchase additional securities. Our mortgage-backed securities
increased $46.4 million as purchases of $69.6 million outpaced
repayments, maturities and sales aggregating $23.6 million. Our
investment securities decreased $19.1 million in the aggregate due
primarily to $40.4 million in calls, maturities and sales of agency
bonds partially offset by $11.0 million in purchases of additional
agency bonds and $11.1 million of municipal bonds. Net loans
receivable increased $12.2 million or 1.8% during the first half of
2008. The largest loan growth occurred in one- to four-family
residential loans, which increased $19.7 million, and construction
loans, which increased $27.9 million. These increases were
partially offset by decreases in all other categories of loans.
Real estate owned ("REO") increased $1.3 million or 85.4% to $2.9
million at June 30, 2008 compared to $1.6 million at December 31,
2007. The majority of this increase occurred during the first
quarter of 2008, when, as previously disclosed, we foreclosed on
the collateral properties underlying three commercial real estate
loans to one borrower with an aggregate balance of $977,000. The
remainder of the increase in real estate owned was due to
improvements made to existing REO properties. In July 2008, we
entered into an agreement of sale with respect to the REO
properties acquired in the first quarter. The closing of this sale
is expected to occur before the end of the year and will result in
a nominal gain on sale.
Our total deposits increased $31.6 million or 5.2% to $641.2
million at June 30, 2008 compared to $609.6 million at December 31,
2007. The increase during the first half of 2008 was due to growth
in core deposits. During this period, our savings and money market
accounts grew $23.6 million, or 24.7%, and our checking accounts
grew $12.3 million, or 12.3%, resulting in an increase to core
deposits of $35.8 million, or 18.4%. Our certificate accounts
decreased $4.2 million or 1.0%. Advances from the Federal Home Loan
Bank decreased $7.8 million to $181.8 million at June 30, 2008. Our
other borrowed money, which is comprised of securities repurchase
agreements entered into with certain commercial checking account
customers, increased $3.7 million during the first half of 2008 to
$21.1 million at June 30, 2008.
Our total stockholders' equity decreased to $247.6 million at
June 30, 2008 from $249.9 million at December 31, 2007. The
decrease was due primarily to the purchase of approximately 521,000
shares of the Company's common stock by the 2007 RRP trust for
approximately $5.4 million in the aggregate, as part of the
Company's previously announced plans to fund the 2007 RRP.
Partially offsetting this decrease was a $1.4 million increase in
retained earnings during the first half of 2008 as our net income
of $3.7 million was partially offset by a reduction of $2.3 million
resulting from the payment of our first and second quarter
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 eleven additional full service branch
offices and six limited service banking offices located in
Montgomery, Bucks and Delaware Counties, Pennsylvania. As of June
30, 2008, Abington Bancorp had $1.11 billion in total assets,
$641.2 million in total deposits and $247.6 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.
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, December 31,
2008 2007
--------------- ---------------
ASSETS
Cash and due from banks $ 24,172,775 $ 22,342,499
Interest-bearing deposits in other banks 29,787,157 45,712,962
--------------- ---------------
Total cash and cash equivalents 53,959,932 68,055,461
Investment securities held to maturity
(estimated fair value--2008, $20,260,865;
2007, $20,656,427) 20,390,187 20,391,268
Investment securities available for sale
(amortized cost--2008, $79,364,259;
2007, $98,202,711) 79,663,334 98,780,774
Mortgage-backed securities held to
maturity (estimated fair value--2008,
$65,080,014; 2007, $45,627,107) 67,455,370 46,891,843
Mortgage-backed securities available for
sale (amortized cost--2008, $119,972,188;
2007, $94,400,607) 119,962,212 94,124,123
Loans receivable, net of allowance for
loan losses (2008, $2,518,498; 2007,
$1,811,121) 694,212,100 682,038,113
Accrued interest receivable 4,641,449 4,977,909
Federal Home Loan Bank stock--at cost 11,552,200 10,958,700
Cash surrender value - bank owned life
insurance 38,258,101 37,298,126
Property and equipment, net 11,114,149 10,759,799
Real estate owned 2,888,270 1,558,000
Deferred tax asset 2,606,408 1,892,051
Prepaid expenses and other assets 623,625 1,942,454
--------------- ---------------
TOTAL ASSETS $ 1,107,327,337 $ 1,079,668,621
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing $ 47,113,899 $ 37,027,767
Interest-bearing 594,079,110 572,584,934
--------------- ---------------
Total deposits 641,193,009 609,612,701
Advances from Federal Home Loan Bank 181,752,730 189,557,572
Other borrowed money 21,125,872 17,453,060
Accrued interest payable 4,378,830 3,498,235
Advances from borrowers for taxes and
insurance 5,256,114 2,978,650
Accounts payable and accrued expenses 6,049,819 6,653,343
--------------- ---------------
Total liabilities 859,756,374 829,753,561
--------------- ---------------
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,
issued: 24,460,240 shares,
outstanding: 24,449,526 shares 244,602 244,602
Additional paid-in capital 201,034,255 200,634,467
Treasury stock--at cost, 10,714 shares (104,997) (104,997)
Unallocated common stock held by:
Employee Stock Ownership Plan (ESOP) (15,557,938) (15,977,458)
Recognition & Retention Plan Trust
(RRP) (6,435,071) (1,867,065)
Deferred compensation plans trust (1,171,029) (1,149,610)
Retained earnings 69,754,541 68,360,520
Accumulated other comprehensive loss (193,400) (225,399)
--------------- ---------------
Total stockholders' equity 247,570,963 249,915,060
--------------- ---------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 1,107,327,337 $ 1,079,668,621
=============== ===============
ABINGTON BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended June 30, Six Months Ended June 30,
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------- ------------ -------------
INTEREST INCOME:
Interest on loans $ 10,604,448 $ 10,661,233 $ 21,315,854 $ 21,029,712
Interest and
dividends on
investment and
mortgage-backed
securities:
Taxable 2,783,160 2,309,782 5,441,466 4,619,131
Tax-exempt 338,623 212,726 635,398 425,453
Interest and
dividends on other
interest-earning
assets 293,523 485,208 824,406 814,656
------------ ------------- ------------ -------------
Total interest
income 14,019,754 13,668,949 28,217,124 26,888,952
INTEREST EXPENSE:
Interest on
deposits 4,250,930 5,450,068 9,173,039 10,628,645
Interest on Federal
Home Loan Bank
advances 2,165,580 2,120,703 4,413,018 4,475,680
Interest on other
borrowed money 94,271 234,572 229,573 419,132
------------ ------------- ------------ -------------
Total interest
expense 6,510,781 7,805,343 13,815,630 15,523,457
------------ ------------- ------------ -------------
NET INTEREST INCOME 7,508,973 5,863,606 14,401,494 11,365,495
PROVISION FOR LOAN
LOSSES 676,848 105,938 725,988 109,545
------------ ------------- ------------ -------------
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES 6,832,125 5,757,668 13,675,506 11,255,950
------------ ------------- ------------ -------------
NON-INTEREST INCOME
Service charges 424,541 405,926 806,450 803,642
Income on bank
owned life
insurance 483,923 180,915 959,975 359,382
Gain on sale of
securities 158,133 - 146,375 -
Impairment charge
on investment
securities (330,527) - (330,527) -
Other income 109,743 123,019 216,824 234,286
------------ ------------- ------------ -------------
Total
non-interest
income 845,813 709,860 1,799,097 1,397,310
------------ ------------- ------------ -------------
NON-INTEREST EXPENSES
Salaries and
employee benefits 2,953,724 2,406,354 5,818,910 4,733,898
Occupancy 507,897 436,968 1,041,838 873,778
Depreciation 201,348 199,543 398,341 383,725
Professional
services 310,200 296,667 586,148 458,281
Data processing 379,032 357,302 761,622 707,978
Advertising and
promotions 116,019 139,199 218,471 234,961
Other 892,901 707,042 1,722,011 1,347,276
------------ ------------- ------------ -------------
Total
non-interest
expenses 5,361,121 4,543,075 10,547,341 8,739,897
------------ ------------- ------------ -------------
INCOME BEFORE INCOME
TAXES 2,316,817 1,924,453 4,927,262 3,913,363
PROVISION FOR INCOME
TAXES 569,942 515,542 1,262,218 1,042,020
------------ ------------- ------------ -------------
NET INCOME $ 1,746,875 $ 1,408,911 $ 3,665,044 $ 2,871,343
============ ============= ============ =============
BASIC EARNINGS PER
COMMON SHARE $ 0.08 $ 0.06 $ 0.16 $ 0.12
DILUTED EARNINGS PER
COMMON SHARE $ 0.08 $ 0.06 $ 0.16 $ 0.12
BASIC AVERAGE COMMON
SHARES OUTSTANDING: 22,131,813 23,364,752 22,241,837 23,362,893
DILUTED AVERAGE
COMMON SHARES
OUTSTANDING: 22,942,871 23,907,231 22,908,601 23,931,634
ABINGTON BANCORP, INC.
UNAUDITED SELECTED FINANCIAL DATA
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
2008 2007 2008 2007
------ ------ ------ ------
Selected Operating Ratios(1):
Average yield on interest-earning assets 5.46% 5.95% 5.53% 5.97%
Average rate on interest-bearing
liabilities 3.24% 4.10% 3.47% 4.10%
Average interest rate spread(2) 2.22% 1.85% 2.06% 1.87%
Net interest margin(2) 2.92% 2.55% 2.82% 2.52%
Average interest-earning assets to average
interest-bearing liabilities 127.87% 120.78% 128.18% 118.75%
Net interest income after provision
for loan losses to non-interest expense 127.44% 126.74% 129.66% 128.79%
Total non-interest expense to average
assets 1.93% 1.87% 1.92% 1.84%
Efficiency ratio(3) 64.17% 69.11% 65.10% 68.48%
Return on average assets 0.63% 0.58% 0.67% 0.60%
Return on average equity 2.80% 3.80% 2.93% 4.29%
Average equity to average assets 22.47% 15.28% 22.68% 14.11%
Asset Quality Ratios(4):
Non-performing loans as a percent of
total loans receivable(5) 0.08% 0.80% 0.08% 0.80%
Non-performing assets as a percent of
total assets(5) 0.31% 0.49% 0.05% 0.49%
Allowance for loan losses as a percent of
non-performing loans 473.31% 32.70% 473.31% 32.70%
Net charge-offs or (recoveries) to
average loans receivable 0.01% 0.01% 0.01% 0.01%
Capital Ratios(6):
Tier 1 leverage ratio 14.98% 16.61% 14.98% 16.61%
Tier 1 risk-based capital ratio 23.44% 25.93% 23.44% 25.93%
Total risk-based capital ratio 23.79% 26.20% 23.79% 26.20%
(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 six-month periods ended June 30, 2008 and 2007, 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: Robert W. White Chairman, President and CEO or Jack
Sandoski Senior Vice President and CFO (215) 886-8280
Abington Bancorp, Inc. (MM) (NASDAQ:ABBC)
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