HATBORO, Pa., July 27, 2011 (GLOBE NEWSWIRE) -- Fox Chase Bancorp, Inc. (the "Company") (Nasdaq:FXCB), the holding company for Fox Chase Bank (the "Bank"), today announced net income of $1.3 million, or $0.09 per share, and $2.5 million, or $0.18 per share, for the three and six months ended June 30, 2011, respectively, compared to net income of $608,000, or $0.04 per share, and $1.2 million, or $0.08 per share, for the three and six months ended June 30, 2010, respectively.
The Company also announced that its Board of Directors has declared a cash dividend of $0.02 per outstanding share of common stock. The dividend will be paid on or about August 26, 2011 to stockholders of record as of the close of business on August 12, 2011.
Other highlights for the three and six month periods ended June 30, 2011 included:
- Return on assets improved to 0.47% for the three months ended June 30, 2011, compared to 0.21% for the three months ended June 30, 2010;
- Net interest income increased $1.1 million, or 16.3%, to $7.8 million for the three months ended June 30, 2011, compared to $6.7 million for the three months ended June 30, 2010, and increased $2.3 million, or 17.3%, to $15.4 million for the six months ended June 30, 2011, compared to $13.1 million for the six months ended June 30, 2010. The net interest margin was 2.95% for the three months ended June 30, 2011, compared to 2.37% for the three months ended June 30, 2010. The improvements in net interest income and margin were primarily driven by decreases in interest expense on deposits as maturities of higher rate certificates of deposit and repricing of other deposit products occurred throughout 2010 and the first six months of 2011.
- Net interest income increased $158,000, or 2.1%, to $7.8 million for the three months ended June 30, 2011, compared to $7.6 million for the three months ended March 31, 2011. Net interest margin was 2.95% for the three months ended June 30, 2011, compared to 2.84% for the three months ended March 31, 2011. The improvements in net interest income and margin were primarily due to: (1) an increase in yield on the Bank's mortgage related securities portfolio to 3.24% for the three months ended June 30, 2011 from 3.10% for the three months ended March 31, 2011, due to a continuation in reduced premium amortization as a result of a slowdown in prepayment speeds on the underlying securities; (2) a decrease in the cost of funds to 1.98% from 2.03%; and (3) a higher average balance of noninterest bearing deposits.
- The efficiency ratio improved to 64.0% for the three months ended June 30, 2011 compared to 65.5% for the three months ended March 31, 2011 and 73.0% for the three months ended June 30, 2010;
- Service charges and other fee income increased $201,000, or 80.1%, and $270,000, or 53.0%, for the three and six months ended June 30, 2011, respectively. The increases were primarily due to an increase in cash management and commercial fees of $153,000 and $242,000 for the three and six months ended June 30, 2011, respectively, which include unused lines and letters of credit and international banking transaction fees. In addition, loan servicing income increased $65,000 and $49,000 for the three and six months ended June 30, 2011, respectively, primarily due to a lower valuation adjustment on the Bank's mortgage servicing rights.
- The Bank recorded an additional other-than-temporary credit impairment charge on its private label residential mortgage related security of $201,000 (after tax $133,000). The additional impairment was due to an increase in estimated loss severity at default on the underlying residential mortgage collateral. The security had a fair value of $152,000 and a net book value after impairment of $349,000 as of June 30, 2011. The Bank had previously recorded an other-than-temporary credit impairment charge of $157,000 at June 30, 2009.
- Noninterest expense increased $278,000, or 5.3%, to $5.5 million and $396,000, or 3.8%, to $10.8 million for the three and six months ended June 30, 2011, respectively, compared to $5.2 million and $10.4 million for the three and six months ended June 30, 2010, respectively. Salaries, benefits and other compensation increased $251,000 and $435,000 for the three and six months ended June 30, 2011, respectively, primarily as a result of incremental employee benefit costs as the Company increased employee stock ownership benefits in conjunction with the mutual-to-stock conversion in the second quarter of 2010 and higher incentive compensation accruals. Professional fees increased $129,000 and $218,000 for the three and six months ended June 30, 2011, respectively, primarily due to incremental legal costs associated with the Bank's nonperforming assets. The provision for loss on other real estate owned increased $100,000 and $66,000 for the three and six months ended June 30, 2011, respectively, related to an additional impairment on one property owned by the Bank. FDIC premiums decreased $172,000 and $261,000 for the three and six months ended June 30, 2011, respectively. The decrease was a result of lower deposit balances, a lower assessment rate as well as the FDIC implementing a new assessment base beginning April 1, 2011.
- Total assets were $1.09 billion at June 30, 2011, a decrease of $7.4 million, or 0.7%, from $1.10 billion at December 31, 2010. Total loans were $638.6 million at June 30, 2011, a decrease of $4.1 million, or 0.6%, from $642.7 million at December 31, 2010. The Bank's multi-family and commercial real estate portfolio increased $17.6 million and the commercial and industrial portfolio increased $9.8 million, offset by decreases in the Bank's one-to four-family real estate portfolio of $19.1 million, commercial construction portfolio of $7.8 million and consumer loan portfolio of $4.6 million.
- Total loans increased $10.1 million, or 1.6%, from $628.5 million at March 31, 2011 to $638.6 million at June 30, 2011. The Bank's multi-family and commercial real estate portfolio increased $21.3 million and the commercial and industrial portfolio increased $1.5 million, offset by decreases in the Bank's one-to four-family real estate portfolio of $10.9 million, consumer loan portfolio of $1.8 million and commercial construction portfolio of $325,000.
Credit related items as of and for the three and six months ended June 30, 2011 include:
- The allowance for loan losses was $12.4 million, or 1.91% of total loans at June 30, 2011, compared to $12.7 million, or 1.98% of total loans at March 31, 2011 and $12.4 million, or 1.90% of total loans at December 31, 2010.
- The provision for loan losses was $900,000 for the three months ended June 30, 2011, compared to $975,000 for the three months ended March 31, 2011 and $1.1 million for the three months ended June 30, 2010;
- Net loan charge-offs totaled $1.2 million and $1.9 million for the three and six months ended June 30, 2011, respectively, compared to $109,000 and $884,000 for the three and six months ended June 30, 2010, respectively. The increase in charge-offs in 2011 was primarily related to construction loans.
- Nonperforming assets decreased $4.9 million and $8.1 million for the three and six months ended June 30, 2011, respectively, to $21.7 million, or 1.99% of total assets at June 30, 2011. This compared to $26.6 million, or 2.48% of total assets at March 31, 2011, and $29.8 million, or 2.72% of total assets at December 31, 2010;
- Delinquent loans totaled $2.0 million at June 30, 2011, compared to $6.8 million at March 31, 2011 and $5.1 million at December 31, 2010.
Commenting on the second quarter 2011 performance, Thomas M. Petro, President and Chief Executive Officer of Fox Chase Bancorp, said, "We are pleased with the continued progress towards our strategy of transitioning Fox Chase Bank from a traditional thrift to a commercial banking business model. In the second quarter of 2011, we saw continued improvement in our key metrics: operating income, return on assets, net interest margin and efficiency ratio. Consistent with our strategy and our investment in the market, we have grown our commercial loan portfolio by $22.8 million during the quarter. This was offset by accelerated payoffs in the residential mortgage and consumer loan portfolios due to market conditions. As a result of our continued efforts, we are pleased that nonperforming assets were reduced by 27% since December 31, 2010. However, we continue to anticipate challenges and significant expenditures resolving problem assets for the foreseeable future. The Company continues to be well positioned to exit this credit cycle with a strong balance sheet and the capital to grow. We are also pleased to once again announce a dividend of $0.02 per share."
Fox Chase Bancorp, Inc. will host a conference call to discuss second quarter 2011 results on Thursday, July 28, 2011 at 9:00 am EDT. The general public can access the call by dialing (877) 317-6789. A replay of the conference call will be available through August 28, 2011 by dialing (877) 344-7529; use Conference ID: 10002015.
Fox Chase Bancorp, Inc. is a 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 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 STATEMENTS OF OPERATIONS | ||||
| (Dollars in Thousands, Except Per Share Data) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| (Unaudited) | ||||
| INTEREST INCOME | ||||
| Interest and fees on loans | $8,726 | $9,153 | $17,558 | $17,935 |
| Interest on mortgage related securities | 2,665 | 3,135 | 5,226 | 6,747 |
| Interest on investment securities available-for-sale | ||||
| Taxable | 124 | 96 | 264 | 173 |
| Nontaxable | 67 | 84 | 137 | 173 |
| Other interest income | 25 | 64 | 53 | 163 |
| Total Interest Income | 11,607 | 12,532 | 23,238 | 25,191 |
| INTEREST EXPENSE | ||||
| Deposits | 2,242 | 4,219 | 4,670 | 8,797 |
| Federal Home Loan Bank advances | 1,153 | 1,191 | 2,307 | 2,408 |
| Other borrowed funds | 432 | 432 | 859 | 859 |
| Total Interest Expense | 3,827 | 5,842 | 7,836 | 12,064 |
| Net Interest Income | 7,780 | 6,690 | 15,402 | 13,127 |
| Provision for loan losses | 900 | 1,075 | 1,875 | 1,966 |
| Net Interest Income after Provision for Loan Losses | 6,880 | 5,615 | 13,527 | 11,161 |
| NONINTEREST INCOME | ||||
| Service charges and other fee income | 452 | 251 | 779 | 509 |
| Net gain on sale of other real estate owned | 20 | -- | 20 | -- |
| Income on bank-owned life insurance | 116 | 118 | 230 | 233 |
| Other | 63 | 65 | 89 | 95 |
| Total other-than-temporary impairment loss | (398) | -- | (398) | -- |
| Less: Portion of loss recognized in other comprehensive income (before taxes) | 197 | -- | 197 | -- |
| Net other-than-temporary impairment loss | (201) | -- | (201) | -- |
| Net gains on sale of investment securities | -- | -- | -- | -- |
| Net investment securities losses | (201) | -- | (201) | -- |
| Total Noninterest Income | 450 | 434 | 917 | 837 |
| NONINTEREST EXPENSE | ||||
| Salaries, benefits and other compensation | 3,214 | 2,963 | 6,381 | 5,946 |
| Occupancy expense | 434 | 440 | 931 | 939 |
| Furniture and equipment expense | 104 | 117 | 207 | 233 |
| Data processing costs | 418 | 427 | 838 | 829 |
| Professional fees | 484 | 355 | 835 | 617 |
| Marketing expense | 85 | 95 | 145 | 166 |
| FDIC premiums | 229 | 401 | 512 | 773 |
| Provision for loss on other real estate owned | 100 | -- | 100 | 34 |
| Other real estate owned expense | 25 | 23 | 44 | 29 |
| Other | 387 | 381 | 785 | 816 |
| Total Noninterest Expense | 5,480 | 5,202 | 10,778 | 10,382 |
| Income Before Income Taxes | 1,850 | 847 | 3,666 | 1,616 |
| Income tax provision | 593 | 239 | 1,163 | 457 |
| Net Income | $1,257 | $608 | $2,503 | $1,159 |
| Earnings per share: | ||||
| Basic | $0.09 | $0.04 | $0.18 | $0.08 |
| Diluted | $0.09 | $0.04 | $0.18 | $0.08 |
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
| (Dollars in Thousands, Except Share Data) | ||
| June 30, | December 31, | |
| 2011 | 2010 | |
| (Unaudited) | ||
| ASSETS | ||
| Cash and due from banks | $518 | $156 |
| Interest-earning demand deposits in other banks | 51,318 | 38,158 |
| Total cash and cash equivalents | 51,836 | 38,314 |
| Investment securities available-for-sale | 26,012 | 32,671 |
| Mortgage related securities available-for-sale | 273,503 | 278,632 |
| Mortgage related securities held-to-maturity (fair value of $48,131 at | ||
| June 30, 2011 and $50,817 at December 31, 2010) | 48,412 | 51,835 |
| Loans, net of allowance for loan losses of $12,436 | ||
| at June 30, 2011 and $12,443 at December 31, 2010 | 638,599 | 642,653 |
| Other real estate owned | 3,024 | 3,186 |
| Federal Home Loan Bank stock, at cost | 8,947 | 9,913 |
| Bank-owned life insurance | 13,368 | 13,138 |
| Premises and equipment | 10,624 | 10,693 |
| Real estate held for investment | 1,730 | 1,730 |
| Accrued interest receivable | 4,534 | 4,500 |
| Mortgage servicing rights, net | 403 | 448 |
| Deferred tax asset, net | 464 | 1,376 |
| Other assets | 6,632 | 6,414 |
| Total Assets | $1,088,088 | $1,095,503 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| LIABILITIES | ||
| Deposits | $703,285 | $711,763 |
| Federal Home Loan Bank advances | 120,559 | 122,800 |
| Other borrowed funds | 50,000 | 50,000 |
| Advances from borrowers for taxes and insurance | 2,239 | 1,896 |
| Accrued interest payable | 577 | 580 |
| Accrued expenses and other liabilities | 1,574 | 2,760 |
| Total Liabilities | 878,234 | 889,799 |
| STOCKHOLDERS' EQUITY | ||
| Preferred stock ($.01 par value; 1,000,000 shares authorized, | ||
| none issued and outstanding at June 30, 2011 and | ||
| December 31, 2010) | -- | -- |
| Common stock ($.01 par value; 60,000,000 shares authorized, | ||
| 14,558,700 shares issued and outstanding at June 30, 2011 | ||
| and 60,000,000 shares authorized, 14,547,173 shares issued | ||
| and outstanding at December 31, 2010) | 146 | 145 |
| Additional paid-in capital | 134,646 | 133,997 |
| Common stock acquired by benefit plans | (8,887) | (9,283) |
| Retained earnings | 76,212 | 74,307 |
| Accumulated other comprehensive income, net | 7,737 | 6,538 |
| Total Stockholders' Equity | 209,854 | 205,704 |
| Total Liabilities and Stockholders' Equity | $1,088,088 | $1,095,503 |
| SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED) | ||||
| (Dollars in Thousands, Except Per Share Data) | ||||
| June 30, | March 31, | December 31, | June 30, | |
| 2011 | 2011 | 2010 | 2010 | |
| CAPITAL RATIOS: | ||||
| Total stockholders' equity (to total assets) (1) | 19.29% | 19.31% | 18.78% | 16.60% |
| Tier 1 capital (to adjusted assets) (2) | 14.01 | 14.06 | 13.60 | 11.89 |
| Tier 1 risk –based capital (to risk-weighted assets) (2) | 23.19 | 23.28 | 22.53 | 21.89 |
| Total risk-based capital (to risk-weighted assets) (2) | 24.18 | 24.53 | 23.76 | 23.14 |
| ASSET QUALITY INDICATORS: | ||||
| Nonperforming Assets: | ||||
| Nonperforming loans (3) | $18,679 | $22,688 | $26,637 | $27,728 |
| Other real estate owned | 3,024 | 3,905 | 3,186 | 4,276 |
| Total nonperforming assets | $21,703 | $26,593 | $29,823 | $32,004 |
| Ratio of nonperforming loans to total loans | 2.87% | 3.54% | 4.07% | 4.13% |
| Ratio of nonperforming assets to total assets | 1.99 | 2.48 | 2.72 | 2.57 |
| Ratio of allowance for loan losses to total loans | 1.91 | 1.98 | 1.90 | 1.74 |
| Ratio of allowance for loan losses to | ||||
| nonperforming loans | 66.6 | 56.0 | 46.7 | 42.1 |
| Impaired Loans: | ||||
| Nonperforming loans (3) | $18,679 | $22,688 | $26,637 | $27,728 |
| Troubled debt restructurings | 11,321 | 12,130 | 8,617 | -- |
| Other impaired loans | -- | 3,870 | 3,894 | -- |
| Total impaired loans | $30,000 | $38,688 | $39,148 | $27,728 |
| Past Due Loans: | ||||
| 30 - 59 days | $1,578 | $1,499 | $5,001 | $5,173 |
| 60 - 89 days | 442 | 5,329 | 144 | 10 |
| Total | $2,020 | $6,828 | $5,145 | $5,183 |
| (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. |
| At or for the Three Months Ended | |||
| June 30, | March 31, | June 30, | |
| 2011 | 2011 | 2010 | |
| PERFORMANCE RATIOS (4): | |||
| Return on average assets | 0.47% | 0.45% | 0.21% |
| Return on average equity | 2.41 | 2.41 | 1.90 |
| Net interest margin | 2.95 | 2.84 | 2.37 |
| Efficiency ratio (5) | 64.0 | 65.5 | 73.0 |
| OTHER: | |||
| Tangible book value per share | $14.41 | $14.22 | $14.19 |
| Employees (full-time equivalents) | 133 | 132 | 137 |
| At or for the Six Months Ended | |||
| June 30, | June 30, | ||
| 2011 | 2010 | ||
| PERFORMANCE RATIOS (4): | |||
| Return on average assets | 0.46% | 0.20% | |
| Return on average equity | 2.41 | 1.83 | |
| Net interest margin | 2.90 | 2.31 | |
| Efficiency ratio (5) | 64.7 | 74.3 | |
| (4) Annualized. |
| (5) Represents noninterest expense, excluding provision for loss on other real estate owned, divided by the sum of net interest income and noninterest income, excluding gains or losses on the sale of securities, premises and equipment and other real estate owned. |
| AVERAGE BALANCE SHEET | |||||||||
| (Dollars in Thousands, Unaudited) | |||||||||
| Three Months Ended June 30, | |||||||||
| 2011 | 2010 | ||||||||
| Average | Yield/ | Average | Yield/ | ||||||
| Balance | Interest | Cost (2) | Balance | Interest | Cost (2) | ||||
| Assets: | (Dollars in thousands) | ||||||||
| Interest-earning assets: | |||||||||
| Interest-earning demand deposits | $43,479 | $25 | 0.23% | $68,782 | $64 | 0.37% | |||
| Mortgage related securities | 329,439 | 2,665 | 3.24% | 363,683 | 3,135 | 3.45% | |||
| Taxable securities | 32,032 | 124 | 1.54% | 23,892 | 96 | 1.62% | |||
| Nontaxable securities | 5,271 | 67 | 5.07% | 8,477 | 84 | 3.97% | |||
| Loans (1) | 638,747 | 8,726 | 5.43% | 658,978 | 9,153 | 5.52% | |||
| Allowance for loan losses | (12,926) | -- | (11,058) | -- | |||||
| Net loans | 625,821 | 8,726 | 647,920 | 9,153 | |||||
| Total interest-earning assets | 1,036,042 | 11,607 | 4.40% | 1,112,754 | 12,532 | 4.44% | |||
| Noninterest-earning assets | 40,702 | 50,614 | |||||||
| Total assets | $1,076,744 | $1,163,368 | |||||||
| Liabilities and equity: | |||||||||
| Interest-bearing liabilities: | |||||||||
| Interest-bearing deposits | 600,405 | 2,242 | 1.50% | 782,314 | 4,219 | 2.16% | |||
| Borrowings | 171,268 | 1,585 | 3.66% | 175,675 | 1,623 | 3.66% | |||
| Total interest-bearing liabilities | 771,673 | 3,827 | 1.98% | 957,989 | 5,842 | 2.43% | |||
| Noninterest-bearing deposits | 91,511 | 68,519 | |||||||
| Other noninterest-bearing liabilities | 4,956 | 8,592 | |||||||
| Total liabilities | 868,140 | 1,035,100 | |||||||
| Stockholder's equity | 201,636 | 120,334 | |||||||
| Accumulated comprehensive income | 6,968 | 7,934 | |||||||
| Total stockholder's equity | 208,604 | 128,268 | |||||||
| Total liabilities and stockholders' equity | $1,076,744 | $1,163,368 | |||||||
| Net interest income | $7,780 | $6,690 | |||||||
| Interest rate spread | 2.42% | 2.01% | |||||||
| Net interest margin | 2.95% | 2.37% | |||||||
| (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) | |||||||||
| Six Months Ended June 30, | |||||||||
| 2011 | 2010 | ||||||||
| Average | Yield/ | Average | Yield/ | ||||||
| Balance | Interest | Cost (2) | Balance | Interest | Cost (2) | ||||
| Assets: | (Dollars in thousands) | ||||||||
| Interest-earning assets: | |||||||||
| Interest-earning demand deposits | $46,078 | $53 | 0.23% | $64,692 | $163 | 0.51% | |||
| Mortgage related securities | 330,173 | 5,226 | 3.17% | 379,380 | 6,747 | 3.56% | |||
| Taxable securities | 32,938 | 264 | 1.60% | 22,318 | 173 | 1.55% | |||
| Nontaxable securities | 6,098 | 137 | 4.50% | 8,704 | 173 | 3.99% | |||
| Loans (1) | 642,668 | 17,558 | 5.45% | 650,770 | 17,935 | 5.50% | |||
| Allowance for loan losses | (12,859) | -- | (10,954) | -- | |||||
| Net loans | 629,809 | 17,558 | 639,816 | 17,935 | |||||
| Total interest-earning assets | 1,045,096 | 23,238 | 4.38% | 1,114,910 | 25,191 | 4.47% | |||
| Noninterest-earning assets | 41,117 | 47,231 | |||||||
| Total assets | $1,086,213 | $1,162,141 | |||||||
| Liabilities and equity: | |||||||||
| Interest-bearing liabilities: | |||||||||
| Interest-bearing deposits | 611,982 | 4,670 | 1.54% | 786,414 | 8,797 | 2.26% | |||
| Borrowings | 171,824 | 3,166 | 3.67% | 177,888 | 3,267 | 3.65% | |||
| Total interest-bearing liabilities | 783,806 | 7,836 | 2.00% | 964,302 | 12,064 | 2.51% | |||
| Noninterest-bearing deposits | 89,324 | 64,265 | |||||||
| Other noninterest-bearing liabilities | 5,441 | 6,834 | |||||||
| Total liabilities | 878,571 | 1,035,401 | |||||||
| Stockholder's equity | 200,916 | 119,063 | |||||||
| Accumulated comprehensive income | 6,726 | 7,677 | |||||||
| Total stockholder's equity | 207,642 | 126,740 | |||||||
| Total liabilities and stockholders' equity | $1,086,213 | $1,162,141 | |||||||
| Net interest income | $15,402 | $13,127 | |||||||
| Interest rate spread | 2.38% | 1.96% | |||||||
| Net interest margin | 2.90% | 2.31% | |||||||
| (1) Nonperforming loans are included in average balance computation. | |||||||||
| (2) Yields are not presented on a tax-equivalent basis. | |||||||||