HATBORO, Pa., Jan. 29, 2014 (GLOBE NEWSWIRE) -- Fox Chase Bancorp, Inc. (the "Company") (Nasdaq:FXCB), the holding company for Fox Chase Bank (the "Bank"), today announced net income of $5.5 million, or $0.48 per diluted share, for the year ended December 31, 2013, compared to $5.1 million, or $0.43 per diluted share, for the year ended December 31, 2012. The Company reported net income of $1.5 million, or $0.13 per diluted share for the quarter ended December 31, 2013 compared to net income of $1.9 million, or $0.16 per diluted share, for the quarter ended December 31, 2012.
The Company also announced that its Board of Directors declared a cash dividend of $0.26 per outstanding share of common stock. This quarter's dividend is comprised of a regular quarterly dividend of $0.10 (which is a $0.02 increase from the previous quarter) and a nonrecurring dividend of $0.16 per outstanding common share. Cumulative dividends paid for 2013 will be $0.48 per share which represents 100% of the Company's 2013 earnings. The dividend will be paid on or about February 27, 2014 to stockholders of record as of the close of business on February 13, 2014.
Thomas M. Petro, President and Chief Executive Officer said, "We are very pleased with the Company's performance for 2013 evidenced by a 12% increase in earnings per share and a 41% decrease in nonperforming assets. Our commercial business strategy is producing strong organic growth and increased returns as average commercial loans outstanding increased by 18% and average noninterest-bearing deposits increased by 13%. Commercial loans represented 80% of total loans at year-end 2013. The increased dividend demonstrates the Company's commitment to total shareholder returns. Looking forward our focus will be on improving the Company's profitability through continued commercial lending growth, improving asset quality and controlling costs."
Highlights for the year and quarter ended December 31, 2013 included:
Credit related items as of and for the quarter and year ended December 31, 2013 include:
Fox Chase Bancorp, Inc. will host a conference call to discuss 2013 results on Thursday, January 30, 2014 at 9:00 am EST. The general public can access the call by dialing (888) 317-6016. A replay of the conference call will be available through March 21, 2014 by dialing (877) 344-7529; use Conference ID: 10039813.
Fox Chase Bancorp, Inc. is a stock holding company of Fox Chase Bank. The Bank is a Pennsylvania state-chartered savings bank originally established in 1867. The Bank offers traditional banking services and products from its main office in Hatboro, Pennsylvania and ten 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.
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 STATEMENTS OF OPERATIONS | ||||
(Dollars in Thousands, Except Per Share Data) | ||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||
2013 | 2012 | 2013 | 2012 | |
(Unaudited) | (Unaudited) | (Audited) | ||
INTEREST INCOME | ||||
Interest and fees on loans | $ 8,331 | $ 8,086 | $ 32,650 | $ 33,878 |
Interest on mortgage related securities | 1,863 | 1,784 | 7,159 | 7,606 |
Interest on investment securities available-for-sale | ||||
Taxable | 97 | 77 | 318 | 308 |
Nontaxable | — | — | — | 34 |
Other interest income | — | 3 | 2 | 8 |
Total Interest Income | 10,291 | 9,950 | 40,129 | 41,834 |
INTEREST EXPENSE | ||||
Deposits | 971 | 1,361 | 4,344 | 6,347 |
Short-term borrowings | 36 | 12 | 130 | 38 |
Federal Home Loan Bank advances | 582 | 491 | 2,188 | 2,383 |
Other borrowed funds | 254 | 253 | 1,007 | 1,349 |
Total Interest Expense | 1,843 | 2,117 | 7,669 | 10,117 |
Net Interest Income | 8,448 | 7,833 | 32,460 | 31,717 |
Provision for loan losses | 450 | 442 | 982 | 3,478 |
Net Interest Income after Provision for Loan Losses | 7,998 | 7,391 | 31,478 | 28,239 |
NONINTEREST INCOME | ||||
Service charges and other fee income | 434 | 459 | 1,694 | 1,597 |
Net gain on sale of assets acquired through foreclosure | — | — | 484 | 135 |
Income on bank-owned life insurance | 119 | 117 | 470 | 471 |
Equity in (loss) earnings of affiliate | (25) | 245 | 445 | 690 |
Other | 40 | 31 | 165 | 130 |
Net investment securities gains | — | 952 | 532 | 3,292 |
Total Noninterest Income | 568 | 1,804 | 3,790 | 6,315 |
NONINTEREST EXPENSE | ||||
Salaries, benefits and other compensation | 3,709 | 3,390 | 14,338 | 13,540 |
Occupancy expense | 446 | 408 | 1,689 | 1,702 |
Furniture and equipment expense | 111 | 128 | 469 | 537 |
Data processing costs | 382 | 438 | 1,537 | 1,797 |
Professional fees | 441 | 379 | 1,691 | 1,706 |
Marketing expense | 81 | 53 | 248 | 270 |
FDIC premiums | 184 | 192 | 709 | 773 |
Assets acquired through foreclosure expense | 736 | 1,028 | 5,201 | 2,143 |
Loss on extinguishment of debt | — | — | — | 3,018 |
Other | 397 | 421 | 1,589 | 1,688 |
Total Noninterest Expense | 6,487 | 6,437 | 27,471 | 27,174 |
Income Before Income Taxes | 2,079 | 2,758 | 7,797 | 7,380 |
Income tax provision | 589 | 858 | 2,263 | 2,318 |
Net Income | $ 1,490 | $ 1,900 | $ 5,534 | $ 5,062 |
Earnings per share: | ||||
Basic | $ 0.13 | $ 0.17 | $ 0.49 | $ 0.44 |
Diluted | $ 0.13 | $ 0.16 | $ 0.48 | $ 0.43 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
(Dollars in Thousands, Except Share Data) | ||
December 31, 2013 |
December 31, 2012 |
|
(Unaudited) | (Audited) | |
ASSETS | ||
Cash and due from banks | $ 149 | $ 162 |
Interest-earning demand deposits in other banks | 11,798 | 24,928 |
Total cash and cash equivalents | 11,947 | 25,090 |
Investment securities available-for-sale | 10,489 | 12,491 |
Mortgage related securities available-for-sale | 246,068 | 283,616 |
Mortgage related securities held-to-maturity (fair value of $67,491 at December 31, 2013 and $29,451 at December 31, 2012) | 68,397 | 28,369 |
Loans, net of allowance for loan losses of $11,529 at December 31, 2013 and $11,170 at December 31, 2012 | 720,490 | 683,865 |
Federal Home Loan Bank stock, at cost | 9,813 | 8,097 |
Bank-owned life insurance | 14,547 | 14,077 |
Premises and equipment, net | 9,814 | 10,443 |
Assets acquired through foreclosure | 6,252 | 8,524 |
Real estate held for investment | 1,620 | 1,620 |
Accrued interest receivable | 3,308 | 3,223 |
Mortgage servicing rights, net | 152 | 170 |
Deferred tax asset, net | 8,906 | 2,953 |
Other assets | 4,819 | 5,803 |
Total Assets | $ 1,116,622 | $ 1,088,341 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
LIABILITIES | ||
Deposits | $ 673,715 | $ 687,409 |
Short-term borrowings | 80,500 | 70,500 |
Federal Home Loan Bank advances | 150,000 | 110,000 |
Other borrowed funds | 30,000 | 30,000 |
Advances from borrowers for taxes and insurance | 1,525 | 1,699 |
Accrued interest payable | 314 | 330 |
Accrued expenses and other liabilities | 7,101 | 6,938 |
Total Liabilities | 943,155 | 906,876 |
STOCKHOLDERS' EQUITY | ||
Preferred stock ($.01 par value; 1,000,000 shares authorized, none issued and outstanding at December 31, 2013 and December 31, 2012) | — | — |
Common stock ($.01 par value; 60,000,000 shares authorized, 12,147,803 shares issued and outstanding at December 31, 2013 and 12,356,564 shares issued and outstanding at December 31, 2012) | 146 | 146 |
Additional paid-in capital | 137,593 | 136,132 |
Treasury stock, at cost (2,468,172 shares at December 31, 2013 and 2,249,600 shares at December 31, 2012) | (33,436) | (29,733) |
Common stock acquired by benefit plans | (9,272) | (10,228) |
Retained earnings | 82,885 | 80,608 |
Accumulated other comprehensive income, net | (4,449) | 4,540 |
Total Stockholders' Equity | 173,467 | 181,465 |
Total Liabilities and Stockholders' Equity | $ 1,116,622 | $ 1,088,341 |
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED) | |||
(Dollars in Thousands, Except Per Share Data) | |||
December 31, 2013 |
September 30, 2013 |
December 31, 2012 |
|
CAPITAL RATIOS: | |||
Stockholders' equity (to total assets) (1) | 15.53% | 15.74% | 16.67% |
Tier 1 capital (to adjusted assets) (2) | 13.12 | 13.10 | 12.90 |
Tier 1 risk –based capital (to risk-weighted assets) (2) | 18.44 | 18.98 | 19.45 |
Total risk-based capital (to risk-weighted assets) (2) | 19.48 | 20.02 | 20.48 |
ASSET QUALITY INDICATORS: | |||
Nonperforming Assets: | |||
Nonaccruing loans | $ 8,780 | $ 9,057 | $ 17,124 |
Accruing loans past due 90 days or more (3) | — | 1,640 | — |
Total nonperforming loans | $ 8,780 | $ 10,697 | $ 17,124 |
Assets acquired through foreclosure | 6,252 | 6,588 | 8,524 |
Total nonperforming assets | $ 15,032 | $ 17,285 | $ 25,648 |
Ratio of nonperforming loans to total loans | 1.20% | 1.50% | 2.46% |
Ratio of nonperforming assets to total assets | 1.35 | 1.56 | 2.36 |
Ratio of allowance for loan losses to total loans | 1.57 | 1.56 | 1.61 |
Ratio of allowance for loan losses to nonperforming loans | 131.3 | 104.0 | 65.2 |
Impaired Loans: | |||
Nonaccruing loans | $ 8,780 | $ 9,057 | $ 17,124 |
Troubled debt restructurings | 6,786 | 7,265 | 7,388 |
Other impaired loans | — | — | — |
Total impaired loans | $ 15,566 | $ 16,322 | $ 24,512 |
Past Due Loans: | |||
30 - 59 days | $ 413 | $ 1,481 | $ 41 |
60 - 89 days | 5 | 569 | 2,026 |
Total | $ 418 | $ 2,050 | $ 2,067 |
(1) Represents stockholders' equity ratio of Fox Chase Bancorp, Inc. | |||
(2) Represents regulatory capital ratios of Fox Chase Bank. | |||
(3) As of September 30, 2013, represents one commercial loan relationship which was greater than 90 days past maturity. The loan was extended in October 2013 and the loan is no longer considered delinquent. | |||
At or for the Three Months Ended | |||
December 31, 2013 |
September 30, 2013 |
December 31, 2012 |
|
PERFORMANCE RATIOS (4): | |||
Return on average assets | 0.54% | 0.42% | 0.73% |
Return on average equity | 3.40 | 2.71 | 4.15 |
Net interest margin | 3.17 | 3.06 | 3.11 |
Efficiency ratio (5) | 64.0 | 63.5 | 62.8 |
OTHER: | |||
Tangible book value per share - Core (6) | $ 14.65 | $ 14.55 | $ 14.32 |
Tangible book value per share (7) | $ 14.28 | $ 14.34 | $ 14.69 |
Employees (full-time equivalents) | 142 | 142 | 141 |
At or for the Twelve Months Ended | |||
December 31, 2013 |
December 31, 2012 |
||
PERFORMANCE RATIOS (4): | |||
Return on average assets | 0.51% | 0.50% | |
Return on average equity | 3.13 | 2.74 | |
Net interest margin | 3.08 | 3.21 | |
Efficiency ratio (5) | 63.7 | 64.3 | |
(4) Annualized | |||
(5) Represents noninterest expense, excluding valuation adjustments on assets acquired through foreclosure and loss on extinguishment of debt, divided by the sum of net interest income and noninterest income, excluding gains or losses on the sale of securities, premises and equipment and assets acquired through foreclosure. | |||
(6) Total stockholders' equity, excluding the impact of accumulated other comprehensive (loss) income, net ($4.4 million loss at December 31, 2013, $2.5 million loss at September 30, 2013 and $4.5 million income at December 31, 2012), divided by total shares outstanding. | |||
(7) Total stockholders' equity divided by total shares outstanding. Tangible book value per share and book value per share were the same for all periods indicated. |
AVERAGE BALANCE SHEET | ||||||
(Dollars in Thousands, Unaudited) | ||||||
Twelve Months Ended December 31, | ||||||
2013 | 2012 | |||||
Average Balance |
Interest and Dividends |
Yield/ Cost (2) |
Average Balance |
Interest and Dividends |
Yield/ Cost (2) |
|
Assets: | ||||||
Interest-earning assets: | ||||||
Interest-earning demand deposits | $ 5,921 | $ 2 | 0.04% | $ 7,569 | $ 8 | 0.10% |
Mortgage related securities | 328,338 | 7,159 | 2.18% | 290,808 | 7,606 | 2.62% |
Taxable securities | 20,755 | 318 | 1.53% | 21,220 | 308 | 1.45% |
Nontaxable securities | — | — | —% | 738 | 34 | 4.65% |
Loans (1) | 698,860 | 32,650 | 4.67% | 667,763 | 33,878 | 5.07% |
Allowance for loan losses | (11,438) | (11,781) | ||||
Net loans | 687,422 | 32,650 | 655,982 | 33,878 | ||
Total interest-earning assets | 1,042,436 | 40,129 | 3.81% | 976,317 | 41,834 | 4.23% |
Noninterest-earning assets | 49,202 | 43,923 | ||||
Total assets | $ 1,091,638 | $ 1,020,240 | ||||
Liabilities and equity: | ||||||
Interest-bearing liabilities: | ||||||
Interest-bearing deposits | $ 573,487 | $ 4,344 | 0.76% | $ 586,422 | $ 6,347 | 1.08% |
Borrowings | 213,175 | 3,325 | 1.56% | 137,279 | 3,770 | 2.75% |
Total interest-bearing liabilities | 786,662 | 7,669 | 0.97% | 723,701 | 10,117 | 1.40% |
Noninterest-bearing deposits | 121,101 | 107,143 | ||||
Other noninterest-bearing liabilities | 6,851 | 4,503 | ||||
Total liabilities | 914,614 | 835,347 | ||||
Stockholders' equity | 177,141 | 178,687 | ||||
Accumulated comprehensive income | (117) | 6,206 | ||||
Total stockholder's equity | 177,024 | 184,893 | ||||
Total liabilities and stockholders' equity | $ 1,091,638 | $ 1,020,240 | ||||
Net interest income | $ 32,460 | $ 31,717 | ||||
Interest rate spread | 2.84% | 2.83% | ||||
Net interest margin | 3.08% | 3.21% | ||||
(1) Nonperforming loans are included in average balance computation. | ||||||
(2) Yields are not presented on a tax-equivalent basis. | ||||||
AVERAGE BALANCE SHEET | ||||||
(Dollars in Thousands, Unaudited) | ||||||
Three Months Ended December 31, | ||||||
2013 | 2012 | |||||
Average Balance |
Interest and Dividends |
Yield/ Cost (2) |
Average Balance |
Interest and Dividends |
Yield/ Cost (2) |
|
Assets: | ||||||
Interest-earning assets: | ||||||
Interest-earning demand deposits | $ 7,067 | $ — | 0.03% | $ 8,637 | $ 3 | 0.11% |
Mortgage related securities | 323,987 | 1,863 | 2.30% | 312,198 | 1,784 | 2.29% |
Taxable securities | 20,323 | 97 | 1.92% | 19,677 | 77 | 1.57% |
Loans (1) | 708,397 | 8,331 | 4.67% | 664,939 | 8,086 | 4.84% |
Allowance for loan losses | (11,495) | (11,614) | ||||
Net loans | 696,902 | 8,331 | 653,325 | 8,086 | ||
Total interest-earning assets | 1,048,279 | 10,291 | 3.91% | 993,837 | 9,950 | 3.99% |
Noninterest-earning assets | 47,090 | 44,527 | ||||
Total assets | $ 1,095,369 | $ 1,038,364 | ||||
Liabilities and equity: | ||||||
Interest-bearing liabilities: | ||||||
Interest-bearing deposits | $ 565,787 | $ 971 | 0.68% | $ 589,464 | $ 1,361 | 0.92% |
Borrowings | 229,097 | 872 | 1.51% | 142,745 | 756 | 2.11% |
Total interest-bearing liabilities | 794,884 | 1,843 | 0.92% | 732,209 | 2,117 | 1.15% |
Noninterest-bearing deposits | 119,069 | 118,675 | ||||
Other noninterest-bearing liabilities | 6,060 | 4,281 | ||||
Total liabilities | 920,013 | 855,165 | ||||
Stockholders' equity | 177,883 | 177,214 | ||||
Accumulated comprehensive income | (2,527) | 5,985 | ||||
Total stockholder's equity | 175,356 | 183,199 | ||||
Total liabilities and stockholders' equity | $ 1,095,369 | $ 1,038,364 | ||||
Net interest income | $ 8,448 | $ 7,833 | ||||
Interest rate spread | 2.99% | 2.84% | ||||
Net interest margin (3) | 3.17% | 3.11% | ||||
(1) Nonperforming loans are included in average balance computation. | ||||||
(2) Yields are not presented on a tax-equivalent basis. | ||||||
(3) Includes $165,000 of nonrecurring interest income related to payments received on nonaccruing loans. | ||||||
AVERAGE BALANCE SHEET | ||||||
(Dollars in Thousands, Unaudited) | ||||||
Three Months Ended December 31, 2013 |
Three Months Ended September 30, 2013 |
|||||
Average Balance |
Interest and Dividends |
Yield/ Cost (2) |
Average Balance |
Interest and Dividends |
Yield/ Cost (2) |
|
Assets: | ||||||
Interest-earning assets: | ||||||
Interest-earning demand deposits | $ 7,067 | $ — | 0.03% | $ 5,652 | $ 1 | 0.03% |
Mortgage related securities | 323,987 | 1,863 | 2.30% | 334,883 | 1,807 | 2.16% |
Taxable securities | 20,323 | 97 | 1.92% | 21,012 | 92 | 1.74% |
Loans (1) | 708,397 | 8,331 | 4.67% | 708,177 | 8,241 | 4.63% |
Allowance for loan losses | (11,495) | (10,854) | ||||
Net loans | 696,902 | 8,331 | 697,323 | 8,241 | ||
Total interest-earning assets | 1,048,279 | 10,291 | 3.91% | 1,058,870 | 10,141 | 3.81% |
Noninterest-earning assets | 47,090 | 50,589 | ||||
Total assets | $ 1,095,369 | $ 1,109,459 | ||||
Liabilities and equity: | ||||||
Interest-bearing liabilities: | ||||||
Interest-bearing deposits | $ 565,787 | $ 971 | 0.68% | $ 566,745 | $ 1,055 | 0.74% |
Borrowings | 229,097 | 872 | 1.51% | 234,783 | 854 | 1.44% |
Total interest-bearing liabilities | 794,884 | 1,843 | 0.92% | 801,528 | 1,909 | 0.94% |
Noninterest-bearing deposits | 119,069 | 128,437 | ||||
Other noninterest-bearing liabilities | 6,060 | 6,080 | ||||
Total liabilities | 920,013 | 936,045 | ||||
Stockholders' equity | 177,883 | 176,915 | ||||
Accumulated comprehensive income | (2,527) | (3,501) | ||||
Total stockholder's equity | 175,356 | 173,414 | ||||
Total liabilities and stockholders' equity | $ 1,095,369 | $ 1,109,459 | ||||
Net interest income | $ 8,448 | $ 8,232 | ||||
Interest rate spread | 2.99% | 2.87% | ||||
Net interest margin (3) | 3.17% | 3.06% | ||||
(1) Nonperforming loans are included in average balance computation. | ||||||
(2) Yields are not presented on a tax-equivalent basis. | ||||||
(3) Includes $165,000 of nonrecurring interest income related to payments received on nonaccruing loans. |