Exhibit
99.1





November
14, 2008





FOR
IMMEDIATE RELEASE





Contact:
Allen T. Sterling, President


and Chief
Executive Officer


Tel (207)
782-0400


NASDAQ –
OTCBB: ABBB





AUBURN
BANCORP EARNINGS NEWS


1ST QUARTER
RESULTS





Auburn
Bancorp, Inc. (OTCBB: ABBB)(the “Company”), the holding company for Auburn
Savings Bank, FSB (the “Bank”), reported net income of $7,065 for the quarter
ended September 30, 2008, as compared to net income of $35,836 for the three
months ended September 30, 2007.





The
largest factor in the quarter results was an other-than-temporary impairment
write-down of investments in Freddie Mac and Fannie Mae common stock, the value
of which was adversely affected by events surrounding the September 2008
appointment of a conservator for Freddie Mac and Fannie Mae.  This
non-cash charge reduced earnings by $60,270.





Excluding
the non-cash charge related to our impairment write-down of the Freddie Mac and
Fannie Mae common stock reflected in the GAAP results above, the Company would
have recorded net income of $67,335 for the quarter ended September 30,
2008.





As a
result of the Company’s minority stock offering completed on August 15, 2008,
the Company has 503,284 shares of common stock outstanding, including 226,478
shares sold at a price of $10.00 per share (including shares sold to the
Company’s employee stock ownership plan) and 276,806 shares issued to the
Company’s mutual holding company parent, Auburn Bancorp,
MHC.  Earnings per share data is not presented, as the shares issued
in the Company’s minority stock offering were not outstanding for the entire
quarter.





Allen T.
Sterling, President and Chief Executive Officer said, “Our recently completed
stock offering has provided us with the capital to execute on our strategic
plan.  While our bottom line was negatively affected this quarter by
the write down of Fannie Mae and Freddie Mac common stock, this one-time event
does not pose a recurring threat to continuing operations, which show positive
financial trends from the execution of our strategic plan.”





Forward-Looking
Statements




This
press release contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements can
be identified by the fact that they do not relate strictly to historical or
current facts. They often include words like “believe”, “expect”, “anticipate”,
“estimate”, and “intend” or future or conditional verbs such as “will”, “would”,
“should”, “could”, or “may.”  These forward-looking statements
are based on the beliefs and expectations of management, as well as the
assumptions made using information currently available to management. Since
these statements reflect the views of management concerning future events, these
statements involve risks, uncertainties and assumptions. As a result, actual
results may differ from those contemplated by these forward-looking statements
as a result of any number of factors.  These factors include, but are
not limited to, risks related to the Company’s continued ability to originate
quality loans, fluctuation in interest rates, real estate conditions in the
Company’s lending areas, changes in the securities or financial markets, changes
in loan delinquency and charge-off rates, general and local economic conditions,
the Company’s continued ability to attract and retain deposits, the Company’s
ability to control costs, new accounting pronouncements, and changing regulatory
requirements.  For more information about these factors, please see
our recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q on file
with the SEC, including the sections entitled “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations.”  These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not be placed on
such statements, which speak only as of the date of this press release. The
Company does not undertake and specifically disclaims any obligation to publicly
release updates or revisions to any such forward-looking statements as a result
of new information, future events or otherwise.