Abington Bancorp Agrees to Acquire Old Colony Mortgage Corporation; Acquisition Will Substantially Broaden Abington Savings Bank's Home Mortgage Capabilities.

ABINGTON, Mass.--(BUSINESS WIRE)--March 8, 1999--Abington Bancorp, Inc., (NASDAQ NMS:ABBK) has announced that its subsidiary, Abington Savings Bank, has signed a definitive purchase and sale agreement under which the bank will acquire Old Colony Mortgage Corporation. Headquartered in Brockton, MA, Old Colony Mortgage has offices in Plymouth, Fall River and Auburn, and originated over $125 million in new home mortgages and refinancings in 1998.

"This acquisition is a very exciting development for our bank because it is a perfect strategic fit that expands the range of mortgage-related products we can offer consumers," said James P. McDonough, president and CEO of Abington Savings. "The acquisition will create a formidable mortgage origination network that will offer a full array of mortgage products to our customers, provide us with another source of non-interest income, and give us with even greater sales opportunities. We are particularly pleased to be acquiring an established firm like Old Colony Mortgage, which is very highly regarded in the marketplace and has very strong, experienced leadership."

According to Peter W. Radigan, president of Old Colony Mortgage, "This alliance with Abington Savings Bank is a very positive event for our company. Over the years we've watched the solid growth of Abington Savings due largely to a very talented and progressive management team. This is an opportunity for our company to offer competitive mortgage products and quality services to a much broader customer base."

Radigan and Old Colony Mortgage's executive vice president, Richard W. Fisher, both have extensive experience in mortgage banking. Radigan was president and CEO of Banc Boston Mortgage Corp. from 1983 to 1989. Fisher was senior vice president - operations at Bank of Boston from 1980 to 1991. Radigan and Fisher founded Old Colony Mortgage in 1991.

"Given the housing growth that is occurring in our market area due to the return of commuter rail service to the South Shore, this is a particularly good time for us to strengthen our mortgage origination capabilities," said McDonough.

Terms of the purchase are not being disclosed. Old Colony Mortgage Corporation will continue to operate under its existing name, with Radigan and Fisher retaining their current titles. In addition to Old Colony Mortgage's four offices, the new subsidiary's products will now be available at each of Abington Savings' 10 locations.

Abington Savings Bank is a $591-million, state-chartered savings bank with headquarters in Abington and branches in Cohasset, Halifax, Hanson, Holbrook, Hull, Kingston, Pembroke, Randolph and Whitman.