HATBORO, Pa., July 30, 2009 (GLOBE NEWSWIRE) -- Fox Chase Bancorp, Inc. (the "Company") (Nasdaq:FXCB), the holding company for Fox Chase Bank (the "Bank"), today announced net income of $298,000 and $899,000 for the three and six months ended June 30, 2009, respectively, compared to net income of $304,000 and $649,000 for the three and six months ended June 30, 2008, respectively.
Net income for the three and six months ended June 30, 2009 was impacted by: (1) a Federal Deposit Insurance Corporation special assessment of $536,000 (after tax $354,000); (2) an other than temporary impairment charge on the Bank's only private label residential mortgage related security of $157,000 (after tax $104,000); and (3) a reduced valuation allowance on the Bank's mortgage servicing rights of $99,000 (after tax $66,000) that positively impacted noninterest income.
Net income for the three and six months ended June 30, 2008 was impacted by expenses of $244,000 and $297,000, respectively (after tax $161,000 and $196,000, respectively), associated with final distributions from the Company's terminated pension plan.
Highlights for the three and six month periods ended June 30, 2009 included:
-- Net interest income increased $300,000, or 5.8%, to $5.4 million
for the three months ended June 30, 2009, compared to $5.1
million for the three months ended June 30, 2008 and increased
$1.1 million, or 11.6%, to $11.2 million for the six months ended
June 30, 2009 from $10.1 million for the same period in 2008;
-- Net interest income decreased $360,000 for the three months ended
June 30, 2009, compared to the three months ended March 31, 2009
and net interest margin decreased to 1.93% for the three months
ended June 30, 2009 from 2.45% for the three months ended March
31, 2009. This decrease was primarily the result of: (1) the Bank
maintaining a significant portion of its increased deposits in
short-term cash and cash equivalents; and (2) a reduction in
yield on the Bank's mortgage related securities portfolio
resulting from a significant increase in mortgage related
prepayments during the quarter;
-- Gain on the sale of securities was $588,000 for each of the three
and six months ended June 30, 2009, compared to $48,000 and
$118,000, respectively, for the three and six months ended June
30, 2008;
-- Total assets were $1.17 billion at June 30, 2009, an increase of
$238 million, or 25.6% from December 31, 2008;
-- Deposits totaled $845 million at June 30, 2009, representing an
increase of $236 million, or 38.8%, from December 31, 2008; and
-- Nonperforming loans increased to $7.7 million, or 1.22% of gross
loans, at June 30, 2009 from $5.9 million, or 0.98% of gross
loans, at December 31, 2008. The increase occurred in both the
Bank's commercial and residential mortgage portfolios.
Thomas M. Petro, President and CEO, said, "In this challenging economic environment, Fox Chase Bancorp continues to execute a two-fold strategy of managing risks within its credit portfolio while positioning itself to take advantage of a future economic recovery. Because credit conditions in our market area continue to show substantial softness, we are devoting substantial resources to risk mitigation efforts. At the same time we expanded our commercial lending capability during the quarter by adding a team of seasoned middle market lenders. The Bank is well positioned to weather the economic downturn and eventual recovery with significant capital and liquidity and is having great success in growing core deposits."
The Company recorded provisions for loan losses of $567,000 and $962,000 for the three and six months ended June 30, 2009, respectively, and $225,000 and $400,000 for the three and six months ended June 30, 2008, respectively. The increase in the provision reflected loan growth, primarily in commercial categories, and the increase in nonperforming assets and internally classified loans in both the residential and commercial loan portfolios. The allowance for loan losses at June 30, 2009 was 1.12% of total loans outstanding at June 30, 2009, compared to 1.05% of total loans outstanding at December 31, 2008.
During the three and six months ended June 30, 2009, the Company repurchased 177,550 and 266,589 shares of its common stock, respectively, pursuant to previously announced stock repurchase programs. There are 101,220 shares remaining to be repurchased under the Company's July 2008 program and 327,000 shares available to be repurchased under the Company's May 2009 program. The timing and volume of future purchases will depend on market conditions and other factors. Repurchased shares will be held in treasury.
Fox Chase Bancorp, Inc. is the mid-tier stock holding company of Fox Chase Bank. The Bank is a federally chartered savings bank originally established in 1867. The Bank offers traditional banking services and products from its main office in Hatboro, Pennsylvania and ten other branch offices in Bucks, Montgomery, Chester, Delaware and Philadelphia Counties in Pennsylvania and Atlantic and Cape May Counties in New Jersey. For more information, please visit the Bank's website at www.foxchasebank.com.
The Fox Chase Bancorp, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4080
This news release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements can generally 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." Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties involve general economic trends, changes in interest rates, loss of deposits and loan demand to other financial institutions, substantial changes in financial markets; changes in real estate value and the real estate market, regulatory changes, possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, the outcome of pending litigation, and market disruptions and other effects of terrorist activities. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required under the rules and regulations of the Securities and Exchange Commission.
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
-------- -------- -------- --------
INTEREST INCOME
Interest and fees
on loans $ 8,758 $ 7,181 $ 17,135 $ 14,309
Interest on money
market funds 122 246 160 521
Interest on mortgage
related securities
available-for-sale 3,505 3,206 6,760 6,110
Interest on investment
securities
available-for-sale
Taxable 261 104 385 755
Nontaxable 140 155 283 323
Dividend income -- 66 1 124
Other interest income 135 37 136 107
-------- -------- -------- --------
Total Interest Income 12,921 10,995 24,860 22,249
-------- -------- -------- --------
INTEREST EXPENSE
Deposits 5,719 4,552 10,098 9,659
Federal Home Loan Bank
advances 1,329 1,120 2,659 2,150
Other borrowed funds 432 182 861 364
-------- -------- -------- --------
Total Interest Expense 7,480 5,854 13,618 12,173
-------- -------- -------- --------
Net Interest Income 5,441 5,141 11,242 10,076
Provision for loan
losses 567 225 962 400
-------- -------- -------- --------
Net Interest Income
after Provision for
Loan Losses 4,874 4,916 10,280 9,676
-------- -------- -------- --------
NONINTEREST INCOME
Service charges and
other fee income 310 224 480 415
Net gain on sale of
loans -- 1 3 4
Income on bank-owned
life insurance 112 113 221 224
Other 146 17 211 35
Total other-than-
temporary impairment
loss (605) -- (605) --
Less: Portion of loss
recognized in other
comprehensive income
(before taxes) 448 -- 448 --
-------- -------- -------- --------
Net other-than-
temporary impairment
loss (157) -- (157) --
Net gains on sale of
investment securities 588 48 588 118
-------- -------- -------- --------
Net investment
securities gains 431 48 431 118
-------- -------- -------- --------
Total Noninterest
Income 999 403 1,346 796
-------- -------- -------- --------
NONINTEREST EXPENSE
Salaries, benefits and
other compensation 2,915 3,064 5,765 5,862
Occupancy expense 438 468 933 954
Furniture and equipment
expense 180 227 401 443
Data processing costs 377 409 762 802
Professional fees 298 265 564 578
Marketing expense 86 125 170 220
FDIC premiums 831 25 1,072 55
Other 367 373 776 764
-------- -------- -------- --------
Total Noninterest
Expense 5,492 4,956 10,443 9,678
-------- -------- -------- --------
Income Before Income
Taxes 381 363 1,183 794
Income tax provision 83 59 284 145
-------- -------- -------- --------
Net Income $ 298 $ 304 $ 899 $ 649
======== ======== ======== ========
Earnings per share:
Basic $ 0.02 $ 0.02 $ 0.07 $ 0.05
Diluted $ 0.02 $ 0.02 $ 0.07 $ 0.05
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, Except Share Data)
June 30, December 31,
2009 2008
----------- -----------
(unaudited)
ASSETS
Cash and due from banks $ 520 $ 642
Interest-earning demand deposits
in other banks 72,819 3,302
Money market funds 31,916 --
----------- -----------
Total cash and cash equivalents 105,255 3,944
Investment securities
available-for-sale 37,272 25,041
Mortgage related securities
available-for-sale 357,894 269,682
Loans, net of allowance for loan
losses of $7,071 at June 30, 2009
and $6,260 at December 31, 2008 624,564 588,975
Loans held for sale 168 --
Federal Home Loan Bank stock, at
cost 9,778 9,707
Bank-owned life insurance 12,435 12,214
Premises and equipment 11,390 11,748
Real estate held for investment 1,957 1,957
Accrued interest receivable 4,359 3,721
Mortgage servicing rights 793 827
Deferred tax asset, net 30 1,869
Other assets 3,736 1,585
----------- -----------
Total Assets $ 1,169,631 $ 931,270
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $ 844,737 $ 608,472
Federal Home Loan Bank advances 144,290 146,379
Other borrowed funds 50,000 50,000
Advances from borrowers for
taxes and insurance 2,878 2,589
Accrued interest payable 762 727
Accrued expenses and other
liabilities 2,453 1,883
----------- -----------
Total Liabilities 1,045,120 810,050
----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock ($.01 par value;
1,000,000 shares authorized,
none issued and outstanding at
June 30, 2009 and December 31,
2009) -- --
Common stock ($.01 par value;
35,000,000 shares authorized,
14,679,750 shares issued and
13,799,970 shares outstanding
at June 30, 2009 and 14,679,750
shares issued and 14,066,559
shares outstanding at December
31, 2008) 147 147
Additional paid-in capital 64,008 63,516
Treasury stock (at cost, 879,780
shares at June 30, 2009 and
613,191 shares at December 31,
2008) (9,929) (7,293)
Common stock acquired by benefit
plans (7,582) (7,819)
Retained earnings 73,557 72,664
Accumulated other comprehensive
income, net 4,310 5
----------- -----------
Total Stockholders' Equity 124,511 121,220
----------- -----------
Total Liabilities and
Stockholders' Equity $ 1,169,631 $ 931,270
=========== ===========
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY
(UNAUDITED)
(Dollars in Thousands, Except Per Share Data)
June 30, Dec. 31, June 30,
2009 2008 2008
--------- --------- ---------
CAPITAL RATIOS(1):
Total Stockholders' Equity (to
Total Assets)(1) 10.65% 13.02% 14.23%
Tier 1 capital (to adjusted
assets)(2) 8.71% 10.70% 11.63%
Tier 1 risk-based capital (to
risk-weighted assets)(2) 15.81 18.11 20.01
Total risk-based capital (to
risk-weighted assets)(2) 16.80 19.25 20.77
ASSET QUALITY INDICATORS:
Nonperforming loans(3) $ 7,713 $ 5,850 $ 1,460
Real estate owned -- -- --
--------- --------- ---------
Total nonperforming assets $ 7,713 $ 5,850 $ 1,460
========= ========= =========
Ratio of nonperforming loans
to total loans 1.22% 0.98% 0.28%
========= ========= =========
Ratio of nonperforming loans to
total assets 0.66 0.63 0.17
========= ========= =========
Ratio of allowance for loan
losses to total loans 1.12 1.05 0.71
========= ========= =========
Ratio of allowance for loan
losses to nonperforming assets 91.7 107.0 257.5
========= ========= =========
At or for the Three Months Ended;
June 30, March 31, June 30,
2009 2009 2008
---------- ---------- ----------
PERFORMANCE RATIOS(4):
Return on average assets 0.10% 0.25% 0.14%
Return on average equity 0.96 1.97 0.99
Net interest margin 1.93 2.45 2.48
OTHER:
Book value per share $9.02 $ 8.87 $ 8.56
Employees (full-time
equivalents) 142 137 138
For the
Six Months Ended;
June 30, June 30,
2009 2008
---------- ----------
PERFORMANCE RATIOS(4):
Return on average assets 0.17% 0.15%
Return on average equity 1.46 1.06
Net interest margin 2.17 2.43
(1) Represents stockholders' equity ratio of Fox Chase Bancorp, Inc.
(2) Represents capital ratios of Fox Chase Bank
(3) Includes nonaccruing loans and accruing loans past due 90 days or
more
(4) Annualized