FOR IMMEDIATE RELEASE

STATEMENT OF ABACUS FEDERAL SAVINGS BANK

NEW YORK, NY (May 31, 2012) We are greatly disappointed to learn that the D.A.'s Office has decided to indict Abacus Federal Savings Bank. We never imagined our bank would be the target of this investigation, since it is indisputable that the bank itself discovered, investigated and reported the results of its investigation to law enforcement authorities, its regulator, and Fannie Mae. Senior executives at the bank took the immediate, decisive action that initiated this investigation, and there is no evidence that any senior executive at the bank engaged in illegal behavior. Moreover, the only victim in this matter is the bank itself. Neither Fannie Mae nor the borrowers were ever harmed. The alleged misconduct that occurred is not tolerated by our banks policies and ethical standards. The public should understand that, unlike many other banks, Abacus Federal Savings did not participate in generating subprime loans or other risky lending practices. As result, the banks loan default rate continues to be one of the lowest in the nation: less than one-half of one percent (0.50%), compared to the current national average of more than five percent (5%). The bank has consistently provided high-quality, plain vanilla mortgages to Fannie Mae, which has yielded Fannie Mae and its investors more than $100 million in income over the past several years. In the process, the bank provided low-cost mortgages to an underserved community. This has greatly contributed to the stability and prosperity of New York City and surrounding areas. The public should also know that it was the bank that uncovered the irregularities more than two years ago. After the discovery, the bank immediately conducted an internal investigation. The employees we determined to be involved were either discharged or resigned. The bank also reported the incident and the results of its investigation to its regulator, Fannie Mae and law enforcement authorities. The bank does not permit its employees to violate banking regulations or internal ethical standards, both of which are embedded in all of our related policies and procedures. The bank has taken this matter very seriously and has worked very closely with its regulator and Fannie Mae over this time period to ensure that such misconduct does not occur again. Our conduct in this regard has been exemplary. The bank feels that a grave injustice has occurred, and that the D.A.s Office is overreaching in trying to make a case against the bank. We do not understand why our community bank -- which is the only victim in this case -- would be targeted for prosecution when many other banks that contributed to the national economic crisis remain untouched.

Abacus Federal Savings Bank is a minority institution that has served its immigrant community for more than 26 years. It is operated and run predominately by women. The banks owners have never taken a dividend payment, and senior executive compensation has always been well below industry norms. The bank was established with the dedicated mission of serving the community by providing affordable credit. We have honored this commitment throughout the banks existence. As a result, the bank has always received the highest rating for reinvestment in its community. We are proud of our achievements and will hold true to the principles on which this institution was founded. As it stands today, the bank continues to actively lend to its community and the larger community as a whole. Its loan department is fully staffed and ready to do business. The bank is well capitalized and strong, and our deposits are insured by the FDIC. The bank will vigorously defend itself against these charges and is confident it will prevail. ### CONTACT: THE PR CONSULTING GROUP (212) 683-8100 Rachel Serlin, ext. 222; rserlin@prcg.com Sean Hughes, ext. 239; shughes@prcg.com Jim Haggerty, ext 224; jhaggerty@prcg.com