Abington Bancorp reports 26 percent increase in first quarter earnings.

ABINGTON, Mass.--(BUSINESS WIRE)--April 15, 1997-- In results announced today by Abington Bancorp Inc. ("Bancorp")(NASDAQ NMS:ABBK) net income for the first quarter of 1997 was 26 percent higher than net income for the same period in 1996. For the period ending March 31, 1997, Bancorp's net income was $1,052,000, or $.52 per share, an increase of $218,000 over the net income of $834,000, or $.42 per share for the first quarter of 1996. President and Chief Executive Officer James P. McDonough said, "The reported results represent consistent earnings growth we expected to achieve through plans put in place over the past two years. These plans include strategies to increase transaction accounts and grow our business banking loan portfolio."

At March 31, 1997, assets totaled $492,058,000 compared to $478,457,000 at March 31, 1996. Total outstanding net loans and deposits at March 31, 1997, were $300,137,000 and $305,674,000, respectively, compared with $269,030,000 and $287,544,000, respectively at March 31, 1996. Stockholders' equity at March 31, 1997, was $33,835,000, reflecting a stockholders' equity to assets ratio of 6.88 percent. Book value per common share at March 31, 1997 was $17.86.

The first quarter results reflect increases in net interest income of $526,000 or 14.9 percent, compared to the corresponding period in 1996. This increase was due primarily to growth in Bancorp's asset base in 1997 that resulted primarily from commercial loan growth generated by the Business Banking Division of Abington Savings Bank ("the Bank"). In addition, the first quarter earnings reflect increases in non-interest income of $63,000 or 5.9 percent compared to the corresponding period in 1996. These improved results primarily reflect continued growth in customer service fees produced by the Bank's successful efforts to attract more retail checking accounts. As a result of the Bank's efforts to increase retail checking accounts, non-interest income and core deposits have continued to grow. In addition, the results for the first quarter ended March 31, 1997 reflect an increase in non-interest expenses of $163,000 or 5.2 percent. A portion of this increase reflects the impact of certain professional staff additions in the Bank's Business Banking Division to support the Bank's asset growth goals in the commercial lending loan portfolio.

McDonough added that Bancorp continues to make progress in executing strategic financial performance plans adopted by the board of directors. "We are pleased at the continued reduction of non-performing assets to $1,462,000 at March 31, 1997, from $1,672,000 at Dec. 31, 1996," he said. "The efforts to reduce non-performing assets and to emphasize loan production in the Bank's Business Banking Division have resulted in higher levels of earnings assets and greater earnings levels than in previous quarters. We are pleased with this progress, while recognizing that future improvements must continue." McDonough added that Bancorp's net overhead ratio in the first quarter of 1997 was 1.84 percent, a level that continues to be below the median for other New England publicly held financial institutions. In addition, the efficiency ratio for the quarter ending March 31, 1997 was 63.4 percent, down from 68.0 percent in the corresponding period of 1996.

Abington Bancorp Inc. is a one bank holding company that owns all the outstanding capital stock of Abington Savings Bank. The bank is a Massachusetts-chartered savings bank whose deposits are insured by the Federal Deposit Insurance Corporation and the Depositors Insurance Fund. In addition to its Corporate Office, Main Office and Operations Center in Abington, the Bank has six other branches in Halifax, Holbrook, Hull, Kingston, Pembroke and Whitman.

                       Abington Savings Bank
                        Operating Results
            (Dollars in thousands, except per share data)

                                            Three Months Ended
                                                March 31,
                                             1997      1996
                                               (Unaudited)

Interest and dividend income               $8,817     $8,344
Net interest income                         4,053      3,527
Provision for possible loan losses            158        120
Non-interest income                         1,137      1,074
Non-interest expenses                       3,291      3,128
Income before income taxes                  1,741      1,353
Net income                                  1,052        834
Earnings per share                        $   .52    $   .42
Dividends per share                       $   .10    $   .10
Weighted average shares outstanding     2,007,000  1,977,000

                       Balance Sheet Data
            (Dollars in thousands, except per share data)

                               March 31,    December 31,   March 31,
                                 1997           1996         1996
                              (unaudited)                 (unaudited)

Total assets                 $  492,058     $  486,958    $  478,457
Loans, net                      300,137        298,970       269,030
Allowance for loan losses         1,945          1,811         1,570
Deposits                        305,674        300,445       287,544
Stockholders' equity             33,835         33,546        31,122
Book value per share          $   17.86     $    17.72    $    16.52
Shares outstanding            1,894,000      1,893,000     1,884,000

CONTACT: Abington Bancorp Inc.

Edward J. Merritt

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