Abington Bancorp, Inc. (the "Company") (NASDAQ: ABBC), the parent
holding company for Abington Bank (the "Bank"), reported net income
of $2.4 million for the quarter ended September 30, 2008,
representing an increase of $305,000 or 14.7% over the comparable
2007 period. Basic and diluted earnings per share increased to
$0.11 and $0.10, respectively, for the quarter compared to $0.09
for each for the third quarter of 2007. Additionally, the Company
reported net income of $6.0 million for the nine months ended
September 30, 2008, representing an increase of $1.1 million or
22.2% over the comparable 2007 period. Basic and diluted earnings
per share increased to $0.27 and $0.26, respectively, for the first
nine months of 2008 compared to $0.21 for each for the first nine
months of 2007.
Mr. Robert W. White, Chairman, President and CEO of the Company,
stated, "As a nation, we are experiencing the most severe financial
crisis since the 1930s. But with concerns about asset quality
continuing to increase within the industry and across the country,
our Bank's strong capital position leaves us well positioned for
long-term growth. During these times, we, like many institutions,
are closely monitoring our loan portfolio. Although we have never
invested in subprime loans, our non-performing loans increased
during the third quarter, reflecting, in part, the current economic
conditions. Even with our resulting provision for loan losses,
however, our overall earnings increased as we improved our net
interest margin and our net interest income. The Bank expects to
continue to perform through this difficult time, however, given the
current economic conditions, there is the potential for further
increases to our allowance for loan losses over the remainder of
this year and into next year. Over the long term, we expect to
continue to grow and build shareholder value as we support our
community and expand our customer base."
Net interest income was $7.7 million and $22.1 million for the
three months and nine months ended September 30, 2008,
respectively, representing increases of 8.1% and 19.5%,
respectively, over the comparable 2007 periods. The increases in
our net interest income were primarily due to decreases in our
interest expense. For the three-month period, this decrease in
interest expense was partially offset by a decrease in interest
income. For the nine-month period, this decrease in interest
expense was augmented by an increase in interest income. Our
average interest rate spread and net interest margin for the third
quarter of 2008 increased to 2.37% and 2.99%, respectively, from
1.92% and 2.89%, respectively, for the third quarter of 2007. Our
average interest rate spread and net interest margin for the first
nine months of 2008 increased to 2.17% and 2.88%, respectively,
from 1.90% and 2.65%, respectively, for the first nine months of
2007.
Interest income for the three months ended September 30, 2008
decreased $888,000 or 6.0% over the comparable 2007 period to $14.0
million. The decrease occurred as growth in the average balance of
our total interest-earning assets was offset by a decrease in the
average yield earned on our total interest-earning assets. The
average balance of our other interest-earning assets decreased
$62.5 million, quarter-over-quarter, as these funds were reinvested
in mortgage-backed securities and loans. The average balance of our
mortgage-backed securities increased $71.7 million to $197.1
million for the third quarter of 2008 from $125.4 million for the
third quarter of 2007. The average balance of our loans receivable
increased $38.8 million to $699.1 million for the third quarter of
2008 from $660.3 million for the third quarter of 2007. Although
the average yield on our mortgage-backed securities increased 48
basis points for the third quarter of 2008 compared to the third
quarter of 2007, the average yield on all other categories of
interest-earning assets decreased quarter-over-quarter, including
an 88 basis point decrease in the average yield on our loans
receivable, a 43 basis point decrease in the average yield on our
investment securities, and a 212 basis point decrease in the
average yield on our other interest-earning assets. These decreases
in yield were the result of the current interest rate environment,
in which the Federal Reserve Board's Open Market Committee cut the
federal funds rate by 300 basis points from September 2007 to
September 2008.
Interest income for the nine months ended September 30, 2008
increased $441,000 or 1.1% over the comparable 2007 period to $42.2
million. This increase occurred as growth in the average balance of
our total interest-earning assets offset a decrease in the average
yield earned on our interest-earning assets. As was the case for
the three-month periods, the largest period-over-period growth
occurred in mortgage-backed securities and loans. The average
balance of our mortgage-backed securities increased $43.8 million
to $172.8 million for the first nine months of 2008 from $129.0
million for the first nine months of 2007. The average balance of
our loans receivable increased $58.6 million to $695.5 million for
the first nine months of 2008 from $637.0 million for the first
nine months of 2007. Similar to the three-month period, the average
yield on our mortgage-backed securities increased 27 basis points
for the first nine months of 2008 compared to the first nine months
of 2007, while the average yield on all other categories of
interest-earning assets decreased period-over-period, including a
68 basis point decrease in the average yield on our loans
receivable, an eight basis point decrease in the average yield on
our investment securities, and a 129 basis point decrease in the
average yield on our other interest-earning assets.
Interest expense for the three months ended September 30, 2008
decreased $1.5 million or 18.9% from the comparable 2007 period to
$6.3 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 105 basis points to 3.05% for the third
quarter of 2008 from 4.10% for the third quarter of 2007. The
average rate we paid on our total deposits decreased 127 basis
points, quarter-over-quarter, driven by a 173 basis point decrease
in the average rate paid on our certificates of deposit. The
average balance of our total interest-bearing liabilities increased
$68.6 million to $823.6 million for the quarter ended September 30,
2008 from $754.9 million for the quarter ended September 30, 2007.
Our average deposit balance grew by $30.6 million over this same
period, with all of the growth attributable to core deposits. The
average balance of our advances from the Federal Home Loan Bank
("FHLB") increased $39.9 million or 23.4% to $210.7 million for the
quarter ended September 30, 2008 from $170.8 million for the
quarter ended September 30, 2007. Our increased utilization of
advances from the FHLB has been part of a strategic decision to
replace high-rate certificates of deposit with lower-cost sources
of funding in the current interest rate environment.
Interest expense for the nine months ended September 30, 2008
decreased $3.2 million or 13.6% over the comparable 2007 period to
$20.1 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 77 basis points to 3.32% for the first nine months of
2008 from 4.09% for the first nine months of 2007. The average rate
we paid on our total deposits decreased 90 basis points,
period-over-period, driven by a 125 basis point decrease in the
average rate paid on our certificates of deposit. The average
balance of our total interest-bearing liabilities increased $48.6
million to $807.0 million for the nine months ended September 30,
2008 from $758.4 million for the nine months ended September 30,
2007. Our average deposit balance grew by $32.5 million over this
same period, with approximately 62.9% of that growth occurring in
core deposits. The average balance of our advances from the FHLB
increased $15.7 million or 8.7% period-over-period.
We recorded a $309,000 provision for loan losses during the
third quarter of 2008, and our provision for loan losses amounted
to $1.0 million for the nine months ended September 30, 2008.
During the third quarter of 2007, we recorded a provision of
$163,000 to the allowance for loan losses, and our provision for
loan losses amounted to $273,000 for the nine months ended
September 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. As of September 30, 2008, our allowance for loan losses
amounted to $2.9 million, or 0.4% of total loans, compared to $1.8
million at December 31, 2007. Our loan portfolio at September 30,
2008 included an aggregate of $22.0 million of non-performing loans
compared to $1.6 million of non-performing loans at December 31,
2007. Our non-performing loans at September 30, 2008 consist
primarily of six construction loans and two commercial real estate
loans to three borrowers with a combined balance of $21.3 million.
All of these loans are considered to be impaired at September 30,
2008. Three construction loans with a collective balance of $15.1
million were made to the largest of these borrowers for the
construction of a 40-unit, high rise residential condominium
project in Center City, Philadelphia. These loans, which represent
the Bank's largest construction loan in the aggregate, were more
than 90 days past due and on non-accrual status at September 30,
2008. The building securing these loans, however, is nearly
complete and certificates of occupancy have been received for a
substantial number of the building's units. Based on our review of
the status of this project and consideration of an appraisal of the
collateral, as well as consideration of the additional collateral
securing the loans, a reserve of approximately $836,000 was
established at September 30, 2008. Additional reserves aggregating
approximately $286,000 have been established on the remaining three
construction loans and two commercial real estate loans based on
our reviews of the collateral securing each. The aggregate balance
of these loans was approximately $6.2 million at September 30,
2008, of which $729,000 was on non-accrual status. The remaining
$5.5 million of these non-performing loans were on accrual status,
because, although they were over 90 days past due at September 30,
2008, all past due interest was brought current in October. At
September 30, 2008 and December 31, 2007, our non-performing loans
amounted to 3.02% and 0.23% of loans receivable, respectively, and
our allowance for loan losses amounted to 13.1% and 116.8% of
non-performing loans, respectively. We are continuing to monitor
our loan portfolio, and given current economic conditions, no
assurances can be given that additional provisions for loan losses
will not be necessary in subsequent quarters.
Our total non-interest income for the third quarter of 2008
amounted to $984,000, representing an increase of $201,000 or 25.7%
from the third quarter of 2007. The increase was due primarily to
an increase in income on bank owned life insurance ("BOLI") of
$189,000. The increase in income on BOLI resulted mainly from the
purchase of $20.0 million of additional BOLI during the third
quarter of 2007.
Our total non-interest income for the first nine months of 2008
amounted to $2.8 million, representing an increase of $603,000 or
27.6% from the first nine months of 2007. The increase in total
non-interest income for the nine-month period was primarily due to
an increase in income on BOLI of $790,000 and a gain on sale of
investments of $146,000 that were partially offset by a securities
impairment charge of $331,000. The impairment charge was 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, the AMF Ultra Short Mortgage
Fund, was other-than-temporarily impaired. At the time, there had
been recent credit rating downgrades in certain of the private
label mortgage-backed securities held by the fund. During the third
quarter, the fair value of the fund continued to decline, and at
September 30, 2008, the fair value of our investment in the fund
had decreased to $2.7 million. Although our investment in this fund
is recorded at fair value in our balance sheet, no additional
impairment charge was recognized during the third quarter. Based on
our evaluation of the fund at September 30, 2008, we determined
that the additional decrease in the value of the fund since June
30, 2008, more likely than not, is recoverable. We believe that the
majority of the securities held by the fund will continue to
perform, however, we are continuing to monitor this fund, and it is
possible that additional impairment charges will be recorded in
subsequent quarters.
Our total non-interest expenses for the third quarter of 2008
amounted to $5.2 million, representing an increase of $328,000 or
6.8% from the third quarter of 2007. The largest increases were in
salaries and employee benefits, director compensation, and other
non-interest expenses. Salaries and employee benefits expense
increased $84,000 or 3.2%, 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 $237,000 recognized during the third 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. These increases were partially
offset by two additional items. First, the expense for our Employee
Stock Ownership Plan ("ESOP"), which is based on the price of our
common stock during the period, decreased $76,000,
quarter-over-quarter, due primarily to a decline in the average
market price of our common stock. Second, the expense recognized
for our defined benefit pension plan decreased $359,000,
quarter-over-quarter. This decrease in pension plan expense was due
to the retirement of one of our executive officers as of September
30, 2008 and his corresponding forfeiture of benefits accumulated
under the plan. Director compensation increased $109,000 or 94.2%,
quarter-over-quarter, primarily due to the issuance of awards to
directors under the 2007 SOP and the 2007 RRP. Other non-interest
expenses increased $119,000 or 21.5%, quarter-over-quarter, due
primarily to a $67,000 increase in deposit insurance premiums,
$29,000 in expenses for real estate owned, and an $18,000 increase
in ATM expense.
Our total non-interest expenses for the first nine months of
2008 amounted to $15.7 million, representing an increase of $2.1
million or 15.7% from the first nine months of 2007. As was the
case with the three-month period, the largest increases for the
nine-month period were in salaries and employee benefits, director
compensation and other non-interest expenses. Additionally,
occupancy expense increased $183,000, period-over-period, and
professional services expense increased $123,000,
period-over-period. The causes for the increases in salaries and
employee benefits, director compensation and other non-interest
expense over the nine-month periods mirrored the causes for the
increases for such items in the three-month periods. Salaries and
employee benefits expense increased $1.2 million or 16.0%,
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, as well as an additional expense of
$632,000 recognized during the first nine months of 2008 for the
issuance of awards to officers and employees under the 2007 SOP and
the 2007 RRP. Additionally, the expense for our ESOP increased
$42,000, period-over-period. These increases were partially offset
by a $354,000 decrease in the expense recognized for our defined
benefit pension plan due, as previously stated, to the retirement
of one of our executive officers. Directors compensation increased
$278,000 or 78.3%, period-over-period, primarily due to the
issuance of awards under our 2007 SOP and 2007 RRP. Other
non-interest expenses increased $324,000 or 19.5%,
period-over-period, due primarily to a $73,000 increase in deposit
insurance premiums, $82,000 in expenses for real estate owned, a
$39,000 increase in ATM expense, a $31,000 increase in appraisal
fees, and a $24,000 increase in printing and office supplies.
Occupancy expense increased by $183,000 or 13.0%,
period-over-period, 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. Professional services expense increased $123,000 or
16.0%, period-over-period, 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 was approximately $877,000 for both the third
quarter of 2008 and the third quarter of 2007. Income tax expense
for the first nine months of 2008 amounted to $2.1 million compared
to $1.9 million for the first nine months of 2007. Our effective
tax rate improved to 26.9% and 26.1% for the quarter and nine
months ended September 30, 2008, respectively, from 29.7% and 28.0%
for quarter and nine months ended September 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. Our provisions for income taxes increased as a result
of the increases in our pre-tax income.
The Company's total assets increased $80.9 million, or 7.5%, to
$1.16 billion at September 30, 2008 compared to $1.08 billion at
December 31, 2007. Our total cash and cash equivalents decreased
$13.0 million or 19.1% during the first nine months of 2008 as we
redeployed certain of our interest-bearing deposits in other banks
to purchase additional securities. Our mortgage-backed securities
increased by an aggregate of $64.1 million as purchases of $97.0
million outpaced repayments, maturities and sales aggregating $33.3
million. Our investment securities decreased $20.3 million in the
aggregate due primarily to $47.4 million in calls, maturities and
sales of agency bonds partially offset by $15.0 million in
purchases of additional agency bonds and $13.6 million of municipal
bonds. Net loans receivable increased $43.0 million or 6.3% during
the first nine months of 2008. The largest loan growth occurred in
construction loans, which increased $34.6 million, one- to
four-family residential loans, which increased $26.1 million, and
multi-family residential and commercial loans, which increased
$11.7 million. These increases were partially offset by decreases
in all other categories of loans. Real estate owned ("REO")
increased $1.5 million or 97.7% to $3.1 million at September 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
securing 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. Our FHLB stock increased $3.3 million or 29.9% as a
result of our increased utilization of advances from the FHLB as a
source of funding.
Our total deposits increased $21.7 million or 3.6% to $631.3
million at September 30, 2008 compared to $609.6 million at
December 31, 2007. The increase during the first nine months of
2008 was due to growth in core deposits. During this period, our
savings and money market accounts grew $36.4 million, or 38.1%, and
our checking accounts grew $2.1 million, or 2.2%, resulting in an
increase to core deposits of $38.5 million, or 19.7%. Our
certificate accounts decreased $16.8 million or 4.1%. Advances from
the FHLB increased $62.5 million or 33.0% to $252.0 million at
September 30, 2008. As previously stated, our increased utilization
of advances from the FHLB has been part of a strategic decision to
replace high-rate certificates of deposit with lower cost sources
of funding in the current interest rate environment. Our other
borrowed money, which is comprised of securities repurchase
agreements entered into with certain commercial checking account
customers, increased $3.0 million or 16.9% during the first nine
months of 2008 to $20.4 million at September 30, 2008.
Our total stockholders' equity decreased to $244.2 million at
September 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.
Additionally, the company purchased approximately 511,000 shares of
the Company's common stock during the third quarter of 2008 for
approximately $4.9 million as part of our previously announced
stock repurchase plan. Partially offsetting these decreases was a
$2.7 million increase in retained earnings during the first nine
months of 2008 as our net income of $6.0 million was partially
offset by a reduction of $3.4 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 twelve additional full service branch
offices and seven limited service banking offices located in
Montgomery, Bucks and Delaware Counties, Pennsylvania. As of
September 30, 2008, Abington Bancorp had $1.16 billion in total
assets, $631.3 million in total deposits and $244.2 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
September 30, December 31,
2008 2007
--------------- ---------------
ASSETS
Cash and due from banks $ 22,135,061 $ 22,342,499
Interest-bearing deposits in other banks 32,945,397 45,712,962
--------------- ---------------
Total cash and cash equivalents 55,080,458 68,055,461
Investment securities held to maturity
(estimated fair value--2008,
$19,462,561; 2007, $20,656,427) 20,389,646 20,391,268
Investment securities available for sale
(amortized cost--2008, $78,871,230;
2007, $98,202,711) 78,441,097 98,780,774
Mortgage-backed securities held to
maturity (estimated fair value--2008,
$83,418,180; 2007, $45,627,107) 85,276,643 46,891,843
Mortgage-backed securities available for
sale (amortized cost--2008, $119,866,050;
2007, $94,400,607) 119,886,015 94,124,123
Loans receivable, net of allowance for
loan losses (2008, $2,890,189; 2007,
$1,811,121) 725,055,200 682,038,113
Accrued interest receivable 5,354,823 4,977,909
Federal Home Loan Bank stock--at cost 14,238,300 10,958,700
Cash surrender value - bank owned life
insurance 38,734,507 37,298,126
Property and equipment, net 11,049,861 10,759,799
Real estate owned 3,080,714 1,558,000
Deferred tax asset 2,750,271 1,892,051
Prepaid expenses and other assets 1,243,247 1,942,454
--------------- ---------------
TOTAL ASSETS $ 1,160,580,782 $ 1,079,668,621
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing $ 38,485,392 $ 37,027,767
Interest-bearing 592,783,386 572,584,934
--------------- ---------------
Total deposits 631,268,778 609,612,701
Advances from Federal Home Loan Bank 252,043,267 189,557,572
Other borrowed money 20,407,203 17,453,060
Accrued interest payable 4,799,387 3,498,235
Advances from borrowers for taxes and
insurance 921,354 2,978,650
Accounts payable and accrued expenses 6,937,534 6,653,343
--------------- ---------------
Total liabilities 916,377,523 829,753,561
--------------- ---------------
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 in 2008 and
2007; outstanding: 23,924,084 shares
in 2008, 24,449,526 shares in 2007 244,602 244,602
Additional paid-in capital 201,291,747 200,634,467
Treasury stock--at cost, 536,156 shares
in 2008, 10,714 shares in 2007 (5,174,638) (104,997)
Unallocated common stock held by:
Employee Stock Ownership Plan (ESOP) (15,348,178) (15,977,458)
Recognition & Retention Plan Trust
(RRP) (6,013,327) (1,867,065)
Deferred compensation plans trust (1,179,476) (1,149,610)
Retained earnings 71,017,326 68,360,520
Accumulated other comprehensive loss (634,797) (225,399)
--------------- ---------------
Total stockholders' equity 244,203,259 249,915,060
--------------- ---------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 1,160,580,782 $ 1,079,668,621
=============== ===============
ABINGTON BANCORP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
INTEREST INCOME:
Interest on loans $ 10,266,825 $ 11,141,193 $ 31,582,679 $ 32,170,905
Interest and
dividends on
investment and
mortgage-backed
securities:
Taxable 3,158,686 2,445,120 8,600,152 7,064,251
Tax-exempt 374,661 219,851 1,010,059 645,304
Interest and
dividends on other
interest-earning
assets 206,824 1,088,405 1,031,230 1,903,061
------------ ------------ ------------ ------------
Total interest
income 14,006,996 14,894,569 42,224,120 41,783,521
INTEREST EXPENSE:
Interest on deposits 3,842,347 5,424,299 13,015,386 16,052,944
Interest on Federal
Home Loan Bank
advances 2,342,205 2,053,327 6,755,223 6,529,007
Interest on other
borrowed money 91,429 263,146 321,002 682,278
------------ ------------ ------------ ------------
Total interest
expense 6,275,981 7,740,772 20,091,611 23,264,229
------------ ------------ ------------ ------------
NET INTEREST INCOME 7,731,015 7,153,797 22,132,509 18,519,292
PROVISION FOR LOAN
LOSSES 309,372 163,390 1,035,360 272,935
------------ ------------ ------------ ------------
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES 7,421,643 6,990,407 21,097,149 18,246,357
------------ ------------ ------------ ------------
NON-INTEREST INCOME
Service charges 416,449 398,880 1,222,899 1,202,522
Income on bank owned
life insurance 476,406 287,294 1,436,381 646,676
Gain on sale of
securities - - 146,375 -
Impairment charge on
investment
securities - - (330,527) -
Other income 91,564 97,215 308,388 331,501
------------ ------------ ------------ ------------
Total
non-interest
income 984,419 783,389 2,783,516 2,180,699
------------ ------------ ------------ ------------
NON-INTEREST EXPENSES
Salaries and
employee benefits 2,668,866 2,585,302 8,487,776 7,319,200
Occupancy 553,075 538,268 1,594,913 1,412,046
Depreciation 214,231 197,524 612,572 581,249
Professional
services 302,437 307,643 888,585 765,924
Data processing 358,183 361,965 1,119,805 1,069,943
Advertising and
promotions 156,828 163,092 375,299 398,053
Director
compensation 224,867 115,814 634,096 355,642
Other 673,037 554,089 1,985,819 1,661,537
------------ ------------ ------------ ------------
Total
non-interest
expenses 5,151,524 4,823,697 15,698,865 13,563,594
------------ ------------ ------------ ------------
INCOME BEFORE INCOME
TAXES 3,254,538 2,950,099 8,181,800 6,863,462
PROVISION FOR INCOME
TAXES 876,629 876,731 2,138,847 1,918,751
------------ ------------ ------------ ------------
NET INCOME $ 2,377,909 $ 2,073,368 $ 6,042,953 $ 4,944,711
============ ============ ============ ============
BASIC EARNINGS PER
COMMON SHARE $ 0.11 $ 0.09 $ 0.27 $ 0.21
DILUTED EARNINGS PER
COMMON SHARE $ 0.10 $ 0.09 $ 0.26 $ 0.21
BASIC AVERAGE COMMON
SHARES OUTSTANDING: 21,855,861 22,386,157 22,112,239 23,033,868
DILUTED AVERAGE COMMON
SHARES OUTSTANDING: 22,668,249 22,745,007 22,908,703 23,539,206
ABINGTON BANCORP, INC.
UNAUDITED SELECTED FINANCIAL DATA
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------- ----------------
2008 2007 2008 2007
------ ------- ------ -------
Selected Operating Ratios(1):
Average yield on interest-earning
assets 5.42% 6.02% 5.49% 5.99%
Average rate on interest-bearing
liabilities 3.05% 4.10% 3.32% 4.09%
Average interest rate spread(2) 2.37% 1.92% 2.17% 1.90%
Net interest margin(2) 2.99% 2.89% 2.88% 2.65%
Average interest-earning assets to
average interest-bearing liabilities 125.63% 131.11% 127.10% 122.68%
Net interest income after provision
for loan losses to non-interest
expense 144.09% 144.92% 134.38% 134.53%
Total non-interest expense to average
assets 1.83% 1.82% 1.88% 1.83%
Efficiency ratio(3) 59.10% 60.78% 63.01% 65.52%
Return on average assets 0.84% 0.78% 0.72% 0.67%
Return on average equity 3.86% 3.38% 3.24% 3.86%
Average equity to average assets 21.87% 23.23% 22.36% 17.32%
Asset Quality Ratios(4):
Non-performing loans as a percent of
total loans receivable(5) 3.02% 0.77% 3.02% 0.77%
Non-performing assets as a percent of
total assets(5) 2.16% 0.48% 2.16% 0.48%
Allowance for loan losses as a percent
of non-performing loans 13.13% 35.55% 13.13% 35.55%
Net (recoveries) charge-offs to
average loans receivable (0.04)% 0.01% (0.04)% 0.01%
Capital Ratios(6):
Tier 1 leverage ratio 15.03% 15.48% 15.03% 15.48%
Tier 1 risk-based capital ratio 23.11% 24.24% 23.11% 24.24%
Total risk-based capital ratio 23.50% 24.51% 23.50% 24.51%
------ ------- ------ -------
(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, 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, 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.
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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