Abington Bancorp, Inc. Announces Results for the Second Quarter of 2011

JENKINTOWN, PA -- (Marketwire) -- 07/29/11 -- Abington Bancorp, Inc. (the "Company") (NASDAQ: ABBC), the parent holding company for Abington Bank (the "Bank"), reported net income of $2.2 million for the quarter ended June 30, 2011, compared to net income of $2.0 million for the quarter ended June 30, 2010. The Company's basic and diluted earnings per share were $0.12 and $0.11, respectively, for the second quarter of 2011 compared to basic and diluted earnings per share of $0.10 for the second quarter of 2010. Additionally, the Company reported net income of $3.7 million for the six months ended June 30, 2011, compared to net income of $3.6 million for the six months ended June 30, 2010. The Company's basic and diluted earnings per share were each $0.19 for the first half of 2011 compared to basic and diluted earnings per share of $0.19 and $0.18, respectively, for the first half of 2010.

On January 26, 2011, the Company announced the signing of a definitive merger agreement with Susquehanna Bancshares, Inc., ("Susquehanna") pursuant to which the Company will be merged with Susquehanna in a stock transaction that was valued at approximately $273 million (the "Merger"). Under the terms of the merger agreement, shareholders of the Company will receive 1.32 shares of Susquehanna common stock for each share of Company common stock. The Bank's 20 branches in the suburban counties surrounding Philadelphia will join Susquehanna Bank's network of branches in Pennsylvania, New Jersey, Maryland and West Virginia.

Mr. Robert W. White, Chairman, President and CEO of the Company, stated, "We continue to be excited about the upcoming merger with Susquehanna, which was approved by the shareholders of both companies on May 6th. We believe that the merger, which is expected to close on or about October 1, 2011, will add value for our stockholders, and that the combined company will benefit our existing customers in the form of additional products and services and a larger branch network."

Net Interest Income
Net interest income was $8.0 million and $16.0 million, respectively, for the three and six months ended June 30, 2011, representing decreases of 2.8% and 2.6% over the respective 2010 periods. The decreases in our net interest income for the 2011 periods compared to the 2010 periods occurred as lower interest expense was more than offset by a reduction in interest income. Our average interest rate spread increased to 2.80% and 2.75%, respectively, for the three-month and six-month periods ended June 30, 2011 from 2.67% and 2.70%, respectively, for the three-month and six-month periods ended June 30, 2010. The improvement in our average interest rate spread occurred as decreases in the average balance of and average yield earned on our interest-earning assets was more than offset by a decrease in the average balance of and average rate paid on our interest-bearing liabilities. Our net interest margin also increased period-over-period to 3.02% and 2.97%, respectively, for the three-month and six-month periods ended June 30, 2011 from 2.89% and 2.93%, respectively, for the three-month and six-month periods ended June 30, 2010.

Interest income for the three months ended June 30, 2011 decreased $1.4 million or 11.1% over the comparable 2010 period to $11.5 million. The decrease occurred as a result of a decline in both the average balance of our total interest-earning assets and the average yield earned on those assets. Although the average balances of our investment and mortgage-backed securities increased slightly quarter-over-quarter, these increases were more than offset by a decrease in the average balance of our loan portfolio of $58.8 million or 8.1% quarter-over-quarter. The average yield earned on our total interest-earning assets decreased 22 basis points to 4.32% for the second quarter of 2011 compared to 4.54% for the second quarter of 2010.

Interest income for the six months ended June 30, 2011 decreased $2.8 million or 10.9% over the comparable 2010 period to $23.2 million. As was the case for the three-month period, the decrease occurred as a result of a decline in both the average balance of our total interest-earning assets and the average yield earned on those assets.

Interest expense for the three months ended June 30, 2011 decreased $1.2 million or 25.8% from the comparable 2010 period to $3.5 million. The decrease occurred as a result of a decline in both the average balance of our total interest-bearing liabilities and the average rate paid on those liabilities. The average balance of our total interest-bearing liabilities decreased $86.9 million or 8.7% to $911.1 million for the second quarter of 2011 from $998.0 million for the second quarter of 2010. The decrease was due primarily to decreases in the average balance of our advances from the Federal Home Loan Bank ("FHLB") of $51.5 million or 39.0% and our certificates of deposit of $57.5 million or 12.3%, quarter-over-quarter. This was partially offset by an increase in the average balance of our core deposits of $25.1 million quarter-over-quarter. The average rate we paid on our total interest-bearing liabilities decreased 35 basis points to 1.52% for the second quarter of 2011 from 1.87% for the second quarter of 2010 due to declines in the average rate paid on our advances from the FHLB of 74 basis points and our deposits of 19 basis points.

Interest expense for the six months ended June 30, 2011 decreased $2.4 million or 25.2% from the comparable 2010 period to $7.1 million. As was the case for the three-month period, the decrease in our interest expense occurred as a result of a decline in both the average balance of our total interest-bearing liabilities and the average rate paid on those liabilities.

Provision for Loan Losses and Asset Quality
No provision for loan losses was recorded during the three or six months ended June 30, 2011. Likewise, no provision was recorded during the three months ended June 30, 2010. A provision of $563,000 was recorded during the six months ended June 30, 2010. 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. Management determined that no provision was required during the second quarter of 2011 based on our evaluation of the overall adequacy of the allowance for loan losses in relation to the loan portfolio, and in consideration of a number of factors including a decrease in the outstanding balance of our loans receivable and the resolution or charge-off of certain large-balance, non-performing loans in recent periods.

Our non-accrual loans increased to $10.9 million at June 30, 2011 compared to $7.1 million at March 31, 2011 and $7.0 million at December 31, 2010. The increase during the second quarter of 2011 was due primarily to the addition four multi-family residential and commercial real estate loans and eight one- to four-family residential loans to three borrowers with an aggregate outstanding balance of $3.8 million at June 30, 2011. Also contributing to the increase was the addition of one construction loan with an outstanding balance of $1.9 million at June 30, 2011. All of these loans were classified as substandard at June 30, 2011, and $371,000 of our allowance for loan losses was allocated to these loans at such date. Our total non-performing loans, defined as non-accruing loans and accruing loans 90 days or more past due, increased to $13.9 million at June 30, 2011 compared to $8.2 million at March 31, 2011 and $9.0 million at December 31, 2010. The increase during the second quarter of 2011 was due primarily to the addition of the aforementioned non-accrual loans, as well as to one construction loan with an outstanding balance of $1.8 million at June 30, 2011 that became over 90 days past due during the second quarter of 2011, but continued to remain on accrual status. At June 30, 2011 our non-performing loans amounted to 2.12% of loans receivable compared to 1.19% at March 31, 2011 and 1.29% at December 31, 2010. Our allowance for loan losses amounted to 31.35% of non-performing loans at June 30, 2011 compared to 52.68% at March 31, 2011 and 47.27% at December 31, 2010. At June 30, 2011 our non-performing assets amounted to 3.19% of total assets compared to 2.71% at March 31, 2011 and 2.62% at December 31, 2010.

Non-Interest Income and Expenses
Our total non-interest income decreased to $785,000 for the second quarter of 2011 from $806,000 for the second quarter of 2010. The decrease occurred as an increase in other income quarter-over-quarter was more than offset by decreases in service charge income and income on bank owned life insurance ("BOLI") as well as a larger net loss on real estate owned ("REO").

Our total non-interest income increased to $1.5 million for the first half of 2011 from $1.2 million for the first half of 2010. The increase was due primarily to an improvement in our net loss on REO of $381,000 period-over-period partially offset by a decrease in service charge income of $62,000.

Our total non-interest expenses for the second quarter of 2011 amounted to $5.9 million, representing a decrease of $516,000 or 8.1% compared to the second quarter of 2010. All expense categories decreased quarter-over-quarter with the exception of our data processing expense and our advertising and promotions expense. The largest decreases were in expenses for professional services and deposit insurance premium, which decreased $132,000 and $158,000, respectively, quarter-over-quarter.

Our total non-interest expenses for the first half of 2011 amounted to $12.8 million, representing an increase of $453,000 or 3.7% compared to the first half of 2010. The largest increases were in expenses for salaries and employee benefits and professional services, which increased $158,000 and $395,000, respectively, period-over-period. These increases were partially offset by a decrease of $158,000 in our expense for director compensation period-over-period.

The Company recorded an income tax expense of approximately $756,000 and $668,000 for the three months ended June 30, 2011 and 2010, respectively. The Company recorded an income tax expense of approximately $1.0 million and $1.1 million for the six months ended June 30, 2011 and 2010, respectively.

Statement of Financial Condition
The Company's total assets decreased $70.4 million, or 5.6%, to $1.18 billion at June 30, 2011 compared to $1.25 billion at December 31, 2010. The most significant decreases were in our investment and mortgage-backed securities, which decreased $20.7 million in the aggregate during the first half of 2011, and loans receivable, which decreased $43.9 million during the first half of 2011. These decreases occurred as repayments of securities and loans during the period were used primarily to reduce our liabilities.

Our total deposits decreased $59.4 million or 6.6% to $840.7 million at June 30, 2011 compared to $900.1 million at December 31, 2010. The decrease during the first half of 2011 was due to decreases in all categories of deposits, including a decrease in our savings and money market accounts of $22.9 million and a decrease in our certificates of deposit of $27.0 million. Our advances from the FHLB decreased $33.0 million or 30.0% to $76.9 million at June 30, 2011 from $109.9 million at December 31, 2010, as we continued to repay existing balances. Our other borrowed money, which consists of overnight repurchase agreements entered into with certain of our commercial checking account customers, increased $12.9 million or 81.5% to $28.8 million at June 30, 2011 compared to $15.9 million at December 31, 2010.

Our total stockholders' equity increased to $216.3 million at June 30, 2011 from $211.9 million at December 31, 2010. Contributing to the increase was the reissuance of approximately 101,000 shares of treasury stock with a cost basis of approximately $968,000 in conjunction with the exercise of stock options by certain of our employees during the period. Additionally, our retained earnings increased $1.4 million as our net income for the period was partially offset by the payment of our quarterly cash dividends of $0.06 per share of common stock each quarter. Furthermore, our accumulated other comprehensive income increased $1.0 million during the first six months of 2011 primarily due to increases in the aggregate fair value of 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 12 additional full service branch offices and seven limited service banking offices located in Montgomery, Bucks and Delaware Counties, Pennsylvania. As of June 30, 2011, Abington Bancorp had $1.18 billion in total assets, $840.7 million in total deposits and $216.3 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 and the adequacy of our allowance for loan losses. 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.

Additional Information and Where to Find It

Susquehanna has filed with the SEC a registration statement on Form S-4 concerning the Merger. The registration statement included a prospectus for the offer and sale of Susquehanna common stock to the Company's shareholders as well as a joint proxy statement of each of the Company and Susquehanna, which has been mailed to their respective shareholders. The Joint Proxy Statement/Prospectus and other documents filed by Susquehanna with the SEC contain important information about Susquehanna, the Company and the Merger. We urge investors and the Company's shareholders to read carefully the Joint Proxy Statement/Prospectus and other documents filed with the SEC, including any amendments or supplements also filed with the SEC. Investors and shareholders can obtain a free copy of the Joint Proxy Statement/Prospectus - along with other filings containing information about Susquehanna - at the SEC's website at http://www.sec.gov. Copies of the Joint Proxy Statement/Prospectus, and the filings with the SEC incorporated by reference in the Joint Proxy Statement/Prospectus, can also be obtained free of charge by directing a request to Abington Bancorp, Inc., 180 Old York Road, Jenkintown, Pennsylvania 19046, Attention Robert W. White, President, telephone (215) 886-8280.



ABINGTON BANCORP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
---------------------------------------------------------------------------

                                                              December 31,
                                            June 30, 2011         2010
                                           ---------------  ---------------
ASSETS

Cash and due from banks                    $    25,743,938  $    17,917,261
Interest-bearing deposits in other banks        47,834,572       59,769,447
                                           ---------------  ---------------
      Total cash and cash equivalents           73,578,510       77,686,708
Investment securities held to maturity
 (estimated fair value -- 2011,
 $21,276,727; 2010, $20,806,340)                20,383,700       20,384,781
Investment securities available for sale
 (amortized cost -- 2011, $111,861,327;
 2010, $124,245,038)                           113,168,140      124,903,901
Mortgage-backed securities held to
 maturity (estimated fair value -- 2011,
 $51,270,544; 2010, $58,338,548)                49,594,120       56,872,188
Mortgage-backed securities available for
 sale (amortized cost -- 2011,
 $162,091,967; 2010, $164,632,654)             166,461,270      168,172,796
Loans receivable, net of allowance for
 loan losses (2011, $4,357,064; 2010,
 $4,271,618)                                   652,549,648      696,443,502
Accrued interest receivable                      3,746,307        4,102,984
Federal Home Loan Bank stock -- at cost         12,524,200       13,877,300
Cash surrender value -- bank owned life
 insurance                                      43,614,652       42,744,766
Property and equipment, net                      9,392,901        9,751,694
Real estate owned                               23,664,479       23,588,139
Deferred tax asset                               3,085,288        3,631,218
Prepaid expenses and other assets                4,975,606        4,938,037
                                           ---------------  ---------------

TOTAL ASSETS                               $ 1,176,738,821  $ 1,247,098,014
                                           ===============  ===============

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:
  Deposits:
    Noninterest-bearing                    $    42,675,317  $    49,807,778
    Interest-bearing                           798,030,035      850,251,190
                                           ---------------  ---------------
      Total deposits                           840,705,352      900,058,968
  Advances from Federal Home Loan Bank          76,869,067      109,874,674
  Other borrowed money                          28,826,033       15,881,449
  Accrued interest payable                       3,218,208          912,321
  Advances from borrowers for taxes and
   insurance                                     4,878,039        2,956,425
  Accounts payable and accrued expenses          5,924,510        5,504,215
                                           ---------------  ---------------

        Total liabilities                      960,421,209    1,035,188,052
                                           ---------------  ---------------

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;
   24,460,240 shares issued; outstanding:
   20,245,910 shares in 2011, 20,166,742
   shares in 2010                                  244,602          244,602
  Additional paid-in capital                   202,885,637      202,517,175
  Treasury stock--at cost, 4,214,330 shares
   in 2011, 4,293,498 shares in 2010           (34,257,469)     (34,949,051)
  Unallocated common stock held by:
  Employee Stock Ownership Plan (ESOP)         (13,040,818)     (13,460,338)
  Recognition & Retention Plan Trust (RRP)      (2,085,784)      (2,589,310)
  Deferred compensation plans trust             (1,072,856)      (1,045,153)
  Retained earnings                             59,958,638       58,519,670
  Accumulated other comprehensive income         3,685,662        2,672,367
                                           ---------------  ---------------

      Total stockholders' equity               216,317,612      211,909,962
                                           ---------------  ---------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,176,738,821  $ 1,247,098,014
                                           ===============  ===============


ABINGTON BANCORP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
---------------------------------------------------------------------------

                             Three Months Ended        Six Months Ended
                                  June 30,                 June 30,
                         ------------------------  ------------------------
                             2011         2010         2011         2010
                         -----------  -----------  -----------  -----------

INTEREST INCOME:
  Interest on loans      $ 8,893,880  $ 9,816,008  $17,881,281  $19,815,235
  Interest and dividends
   on investment and
   mortgage-backed
   securities:

    Taxable                2,186,224    2,674,497    4,507,786    5,372,474
    Tax-exempt               367,945      388,246      745,579      786,273
  Interest and dividends
   on other interest-
   earning assets             15,822       19,761       32,356       25,653
                         -----------  -----------  -----------  -----------

      Total interest
       income             11,463,871   12,898,512   23,167,002   25,999,635

INTEREST EXPENSE:
  Interest on deposits     2,725,409    3,232,872    5,494,719    6,521,455
  Interest on Federal
   Home Loan Bank
   advances                  713,796    1,413,977    1,588,708    2,968,343
  Interest on other
   borrowed money             21,929       20,324       43,307       34,616
                         -----------  -----------  -----------  -----------

      Total interest
       expense             3,461,134    4,667,173    7,126,734    9,524,414
                         -----------  -----------  -----------  -----------

NET INTEREST INCOME        8,002,737    8,231,339   16,040,268   16,475,221

PROVISION FOR LOAN
 LOSSES                            -            -            -      563,445
                         -----------  -----------  -----------  -----------

NET INTEREST INCOME
 AFTER
PROVISION FOR LOAN
 LOSSES                    8,002,737    8,231,339   16,040,268   15,911,776
                         -----------  -----------  -----------  -----------

NON-INTEREST INCOME
  Service charges            287,718      326,956      561,649      623,334
  Income on bank owned
   life insurance            438,866      446,012      869,886      884,498
  Net loss on real
   estate owned             (136,896)    (131,921)    (332,473)    (713,196)
  Other income               195,121      164,721      380,175      366,462
                         -----------  -----------  -----------  -----------

      Total non-interest
       income                784,809      805,768    1,479,237    1,161,098
                         -----------  -----------  -----------  -----------

NON-INTEREST EXPENSES
  Salaries and employee
   benefits                3,021,289    3,030,727    6,118,246    5,960,509
  Occupancy                  641,254      711,988    1,389,916    1,424,708
  Depreciation               190,193      227,810      386,953      457,535
  Professional services      444,244      576,209    1,414,886    1,020,120
  Data processing            461,639      431,789      910,379      854,411
  Deposit insurance
   premium                   336,042      494,416      854,067      854,919
  Advertising and
   promotions                175,626      148,884      345,283      256,257
  Director compensation      144,879      225,509      287,795      445,455
  Other                      465,863      549,406    1,109,731    1,090,145
                         -----------  -----------  -----------  -----------

      Total non-interest
       expenses            5,881,029    6,396,738   12,817,256   12,364,059
                         -----------  -----------  -----------  -----------

INCOME BEFORE INCOME
 TAXES                     2,906,517    2,640,369    4,702,249    4,708,815

PROVISION FOR INCOME
 TAXES                       756,300      668,090    1,009,579    1,128,176
                         -----------  -----------  -----------  -----------

NET INCOME               $ 2,150,217  $ 1,972,279  $ 3,692,670  $ 3,580,639
                         ===========  ===========  ===========  ===========

BASIC EARNINGS PER
 COMMON SHARE            $      0.12  $      0.10  $      0.19  $      0.19
DILUTED EARNINGS PER
 COMMON SHARE            $      0.11  $      0.10  $      0.19  $      0.18

BASIC AVERAGE COMMON
 SHARES OUTSTANDING:      18,595,898   18,920,983   18,952,497   18,957,926
DILUTED AVERAGE COMMON
 SHARES OUTSTANDING:      19,267,314   19,395,076   19,290,057   19,383,467


ABINGTON BANCORP, INC.

UNAUDITED SELECTED FINANCIAL DATA
---------------------------------------------------------------------------

                             Three Months
                                 Ended       Six Months Ended
                               June 30,          June 30,       Year Ended
                           ----------------  ----------------  December 31,
                            2011      2010    2011      2010       2010
                           ------   -------  ------   -------  ------------

Selected Operating
 Ratios(1):
Average yield on interest-
 earning assets              4.32%     4.54%   4.29%     4.63%         4.55%
Average rate on interest-
 bearing liabilities         1.52%     1.87%   1.54%     1.93%         1.83%
Average interest rate
 spread(2)                   2.80%     2.67%   2.75%     2.70%         2.72%
Net interest margin(2)       3.02%     2.89%   2.97%     2.93%         2.95%
Average interest-earning
 assets to average
 interest-bearing
 liabilities               116.51%   113.97% 116.38%   113.81%       114.32%
Net interest income after
 provision for loan losses
 to non-interest expense   136.08%   128.67% 125.15%   128.70%       130.70%
Total non-interest expense
 to average assets           1.99%     2.01%   2.14%     1.96%         1.97%
Efficiency ratio(3)         66.92%    70.79%  73.16%    70.11%        68.81%
Return on average assets     0.73%     0.62%   0.62%     0.57%         0.61%
Return on average equity     4.01%     3.68%   3.46%     3.34%         3.60%
Average equity to average
 assets                     18.18%    16.86%  17.86%    17.04%        17.00%

Asset Quality Ratios(4):
Non-performing loans as a
 percent of total loans
 receivable(5)               2.12%     2.98%   2.12%     2.98%         1.29%

Non-performing assets as a
 percent of total
 assets(5)                   3.19%     2.78%   3.19%     2.78%         2.62%

Allowance for loan losses
 as a percent of non-
 performing loans           31.35%    32.35%  31.35%    32.35%        47.27%

Allowance for loan losses
 as a percent of total
 loans                       0.66%     0.96%   0.66%     0.96%         0.61%

Net (recoveries) / charge-
 offs to average loans
 receivable                 (0.03)%    1.19%  (0.03)%    0.68%         0.81%

Capital Ratios(6):
Tier 1 leverage ratio       15.16%    13.18%  15.16%    13.18%        13.84%
Tier 1 risk-based capital
 ratio                      24.86%    21.36%  24.86%    21.36%        23.31%
Total risk-based capital
 ratio                      25.47%    22.28%  25.47%    22.28%        23.89%

---------------------------------------------------------------------------
(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, 2011 and 2010, 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.


ABINGTON BANCORP, INC.

UNAUDITED SELECTED FINANCIAL DATA (continued)
----------------------------------------------------------------------------
                                        June 30,    March 31,   December 31,
                                          2011         2011         2010
                                      ------------ ------------ ------------

                                              (Dollars in Thousands)

Non-accruing loans:
  One- to four-family residential     $      1,952 $         -- $         --
  Multi-family residential and
   commercial real estate(1)                 2,005        1,514        1,348
  Construction                               6,910        5,547        5,664
  Commercial business                           --           --           --
  Home equity lines of credit                   --           --           --
  Consumer non-real estate                      --           --           --
                                      ------------ ------------ ------------
    Total non-accruing loans                10,867        7,061        7,012
                                      ------------ ------------ ------------
Accruing loans 90 days or more past
 due:
  One- to four-family residential(2)           677        1,028        1,211
  Multi-family residential and
   commercial real estate                       --           --          725
  Construction                               2,271           14           14
  Commercial business                           --           --           --
  Home equity lines of credit                   81           62           76
  Consumer non-real estate                      --           --           --
                                      ------------ ------------ ------------
    Total accruing loans 90 days or
     more past due                           3,029        1,104        2,026
                                      ------------ ------------ ------------
    Total non-performing loans(3)           13,896        8,165        9,038
                                      ------------ ------------ ------------
Real estate owned, net                      23,664       23,628       23,588
                                      ------------ ------------ ------------
    Total non-performing assets             37,560       31,793       32,626
                                      ------------ ------------ ------------
Performing troubled debt
 restructurings:
  One- to four-family residential(4)           579          219          583
  Multi-family residential and
   commercial real estate                    8,732        8,410        8,417
  Construction                               3,353        3,439           --
  Commercial business                           --           --           --
  Home equity lines of credit                   --           --           --
  Consumer non-real estate                      --           --           --
                                      ------------ ------------ ------------
    Total performing troubled debt
     restructurings                         12,664       12,068        9,000
                                      ------------ ------------ ------------
    Total non-performing assets and
     performing troubled debt
     restructurings                   $     50,224 $     43,861 $     41,626
                                      ============ ============ ============
Total non-performing loans as a
 percentage of loans                         2.12%        1.19%        1.29%
                                      ============ ============ ============
Total non-performing loans as a
 percentage of total assets                  1.18%        0.70%        0.72%
                                      ============ ============ ============
Total non-performing assets as a
 percentage of total assets                  3.19%        2.71%        2.62%
                                      ============ ============ ============

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(1) Included in this category of non-accruing loans at March 31, 2011 and
 December 31, 2010 is one troubled debt restructuring with a balance of $1.3
 million at each such date.
(2) Included in this category of non-accruing loans at March 31, 2011 is one
 troubled debt restructuring with a balance of $219,000 at such date.
(3) Non-performing loans consist of non-accruing loans plus accruing loans
 90 days or more past due.
(4) Two performing troubled debt restructurings ("TDRs") included in one- to
 four-family residential loans with an aggregate outstanding balance of
 $583,000 at June 30, 2010 were identified as a result of enhanced
 procedures, although no such balances were previously reported at such
 date.

Contact:
Robert W. White
Chairman, President and CEO
or
Jack Sandoski
Senior Vice President and CFO
(215) 886-8280