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

Our total deposits increased $64.7 million or 9.7% to $729.7 million at March 31, 2009 compared to $665.0 million at December 31, 2008. The increase during the first quarter of 2009 was due to growth in both core deposits and certificate accounts. During the quarter, our savings and money market accounts grew $19.2 million, or 13.0%, and our checking accounts grew $3.9 million, or 3.7%, resulting in an increase to core deposits of $23.2 million, or 9.1%. Our certificate accounts also increased, growing $41.6 million or 10.1%. Advances from the FHLB decreased $54.6 million or 21.2% to $202.5 million at March 31, 2009. During the first quarter of 2009, we repaid a portion of our advances as we reviewed our continued utilization of advances from the FHLB as a source of funding. Our review is based on recent decisions by the FHLB to suspend the dividend on, and restrict the repurchase of, FHLB stock. The amount of FHLB stock that a member institution is required to hold is directly proportional to the volume of advances taken by that institution.

Our total stockholders' equity decreased to $230.8 million at March 31, 2009 from $238.1 million at December 31, 2008. The decrease was due primarily to the purchase of approximately 1.4 million shares of the Company's common stock during the quarter for an aggregate of approximately $10.0 million as part of our stock repurchase plans and our 2007 Recognition and Retention Plan. This decrease was partially offset by a net increase to retained earnings of $1.1 million as our net income of $2.2 million was partially offset by a reduction of $1.0 million resulting from the payment of our quarterly cash dividends. Our accumulated other comprehensive income increased $694,000 during the first quarter of 2009, due primarily to an increase in the net unrealized gain on our available for sale investment and mortgage-backed securities.

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 March 31, 2009, Abington Bancorp had $1.20 billion in total assets, $729.7 million in total deposits and $230.8 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.