FOX CHASE BANCORP, INC. 1ST QUARTER EARNINGS 2008
PAGE 1
[FOX CHASE BANCORP, INC. LOGO]
FOR IMMEDIATE RELEASE
DATE: May 1, 2008
CONTACT: Roger Deacon
Chief Financial Officer
PHONE: (215) 682-4116
FOX CHASE BANCORP ANNOUNCES EARNINGS
FOR FIRST QUARTER 2008
(ANNOUNCES APPROVAL OF 10b5-1 REPURCHASE PLAN)
HATBORO, PA, MAY 1, 2008 - Fox Chase Bancorp, Inc. (the "Company") (NASDAQ GM:
FXCB), the holding company for Fox Chase Bank (the "Bank"), today announced net
income of $345,000 for the three months ended March 31, 2008, compared to net
income of $293,000 for the three months ended March 31, 2007, an increase of
17.7%.
Highlights for the quarter included:
o Net interest income increased $584,000, or 13.4%, to $4.9 million for
the three months ended March 31, 2008, compared to $4.4 million for the
three months ended March 31, 2007;
o Loans receivable totaled $458.5 million at March 31, 2008, representing
an $82.3 million, or 21.9%, increase from March 31, 2007 and an $11.4
million, or 2.6%, increase since December 31, 2007;
o Establishment of a regional lending group at the Bank's location in
Ocean City, New Jersey.
Thomas M. Petro, President and CEO stated, "We achieved positive quarterly
results and were able to continue to implement our commercial business banking
strategy despite the current environment where financial institutions are under
earnings pressures related to interest rates and credit quality. We also
continued to improve our operational efficiencies during the quarter, which will
allow us to continue to grow without significant additional expenditures. Like
other banks, we continue to manage through net interest margin compression,
diminished consumer lending demand and declining economic conditions, but we
believe our focus on delivering a comprehensive mix of business relationship
products to small and medium size businesses will improve our long-term
financial performance."
FOX CHASE BANCORP, INC. 1ST QUARTER EARNINGS 2008
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Total assets increased $52.5 million, or 6.5%, to $865.4 million at March 31,
2008, compared to $812.9 million at December 31, 2007. Loans increased $11.4
million from December 31, 2007 to March 31, 2008. Approximately $10.4 million of
this increase was in commercial, commercial real estate and construction loans
as we continue our strategic initiative to increase our commercial loan
portfolio. Mortgage related securities increased $59.0 million due to a leverage
strategy implemented during the first quarter of 2008. Investment securities
available-for-sale decreased $70.2 million primarily due to the Bank liquidating
$60.0 million in short-term auction rate bonds and municipal securities during
the first quarter of 2008, and reinvesting such funds in short-term money market
accounts, which increased by $50.7 million during the quarter. Deposits
increased $12.4 million, or 2.1%, from $585.6 at December 31, 2007 to $598.0
million at March 31, 2008 as the Bank began marketing initiatives to increase
core deposits. Federal Home Loan Bank advances increased $39.4 million, or
49.2%, to fund the leverage strategy mentioned above.
Nonperforming assets totaled $774,000, or 0.09% of total assets, at March 31,
2008 compared to $819,000, or 0.10% of total assets, at December 31, 2007. The
Company recorded provisions for loan losses of $175,000 and $0 for the three
months ended March 31, 2008 and March 31, 2007, respectively. The increase in
the provision reflected loan growth, primarily in the commercial categories
discussed previously. The allowance for loan losses at March 31, 2008 was 0.77%
of total loans outstanding compared to 0.75% of total loans at December 31,
2007.
As previously mentioned, the Company's net interest income increased by $584,000
to $4.9 million for the three months ended March 31, 2008 from $4.4 million for
the comparable period in 2007. The increase in net interest income was primarily
due to the previously mentioned 21.9% increase in loans. The Company's net
interest margin was 2.39% for the three months ended March 31, 2008, compared to
2.45% for the comparable period in 2007 and 2.74% for the three months ended
December 31, 2007. The decrease from December 31, 2007 was primarily the result
of a 3% decline in the federal funds rate since September 2007 and, to a lesser
extent, the Bank's implementation of leverage strategies during the fourth
quarter of 2007 and first quarter of 2008 to deploy capital and take advantage
of a steepening yield curve.
FOX CHASE BANCORP, INC. 1ST QUARTER EARNINGS 2008
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Noninterest expense increased by $265,000, or 5.9%, between the three months
ended March 31, 2008 and 2007. Salaries and benefits costs rose $381,000 between
three-month periods primarily due to $208,000 of expense associated with the
awards granted under the Company's 2007 Equity Incentive Plan, costs associated
with the opening of the Bank's West Chester, Pennsylvania branch in October 2007
and annual merit increases. These increases were offset by a decrease in
professional fees of $161,000. Legal fees in the first quarter of 2007 were
higher due to litigation related matters. The Company also had a decrease of
$81,000 between years largely due to lower levels of compliance costs.
During the three months ended March 31, 2008, the Company repurchased 31,200
shares of common stock in conjunction with its previously announced stock
repurchase plan, which provides for the repurchase of up to 327,000 shares, or
5% of the Company's outstanding common stock held by persons other than Fox
Chase MHC. The Company also today announced that, between July 1, 2008 and the
release of earnings for the second quarter of 2008, the previously announced
stock repurchase plan will be conducted solely through a Rule 10b5-1 repurchase
plan. Purchases will be based upon the parameters of the Rule 10b5-1 repurchase
plan. The Rule 10b5-1 repurchase plan allows the Company to repurchase its
shares during periods when it would normally not be active in the market due to
its internal trading blackout period.
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 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.
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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.
FOX CHASE BANCORP, INC. 1ST QUARTER EARNINGS 2008
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CONSOLIDATED STATEMENT OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31,
----------------------------
2008 2007
--------- -----------
(UNAUDITED)
INTEREST INCOME
Interest and fees on loans $ 7,128 $ 5,548
Interest on money market funds 275 --
Interest on mortgage related securities 2,904 1,818
Interest on investment securities available-for-sale:
Taxable 651 453
Nontaxable 168 245
Dividend income 58 66
Other interest income 70 1,457
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TOTAL INTEREST INCOME 11,254 9,587
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INTEREST EXPENSE
Deposits 5,107 4,870
Federal Home Loan Bank advances 1,030 366
Other borrowed funds 182 --
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TOTAL INTEREST EXPENSE 6,319 5,236
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NET INTEREST INCOME 4,935 4,351
Provision for loan losses 175 --
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 4,760 4,351
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NONINTEREST INCOME
Service charges and other fee income 191 216
Net gain on sale of:
Securities available-for-sale 70 --
Loans 3 57
Income on bank-owned life insurance 111 107
Other 18 56
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TOTAL NONINTEREST INCOME 393 436
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NONINTEREST EXPENSE
Salaries, benefits and other compensation 2,798 2,417
Occupancy expense 486 399
Furniture and equipment expense 216 232
Data processing costs 393 373
Professional fees 313 474
Marketing expense 95 121
FDIC premiums 30 20
Other 391 421
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TOTAL NONINTEREST EXPENSE 4,722 4,457
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INCOME BEFORE INCOME TAXES 431 330
Income tax provision 86 37
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NET INCOME $ 345 $ 293
========== ==========
Earnings per share:
Basic $ 0.03 $ 0.02
Diluted $ 0.03 $ 0.02
FOX CHASE BANCORP, INC. 1ST QUARTER EARNINGS 2008
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
MARCH 31, DECEMBER 31,
2008 2007
------------ -------------
(UNAUDITED)
ASSETS
Cash and due from banks $ 2,692 $ 3,307
Interest-earning demand deposits in other banks 8,990 7,968
Money market funds 70,687 20,000
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Total cash and cash equivalents 82,369 31,275
Investment securities available-for-sale 20,920 91,159
Mortgage related securities available-for-sale 264,156 205,145
Loans, net of allowance for loan losses of $3,540
at March 31, 2008 and $3,376 at December 31, 2007 458,464 447,035
Federal Home Loan Bank stock, at cost 7,621 5,875
Bank-owned life insurance 11,873 11,762
Premises and equipment 14,253 14,466
Accrued interest receivable 3,428 3,360
Mortgage servicing rights 1,032 1,066
Deferred tax asset, net 120 410
Other assets 1,181 1,366
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TOTAL ASSETS $ 865,417 $ 812,919
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $ 597,982 $ 585,560
Federal Home Loan Bank advances 119,368 80,000
Other borrowed funds 20,000 20,000
Advances from borrowers for taxes and insurance 2,077 2,374
Accrued interest payable 579 504
Accrued expenses and other liabilities 1,999 2,110
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TOTAL LIABILITIES 742,005 690,548
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STOCKHOLDERS' EQUITY
Preferred stock ($.01 par value; 1,000,000 shares authorized,
none issued and outstanding at March 31, 2008 or December 31, 2007) -- --
Common stock ($.01 par value; 35,000,000 shares authorized,
14,679,750 shares issued; 14,321,550 and 14,352,750 shares outstanding
at March 31, 2008 and December 31, 2007, respectively) 147 147
Additional paid-in capital 63,154 62,909
Treasury stock (at cost, 358,200 and 327,000 shares at March 31, 2008 and
December 31, 2007, respectively) (4,276) (3,924)
Common stock acquired by benefit plans (8,636) (8,732)
Retained earnings 71,820 71,475
Accumulated other comprehensive income, net 1,203 496
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TOTAL STOCKHOLDERS' EQUITY 123,412 122,371
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 865,417 $ 812,919
========== ==========
FOX CHASE BANCORP, INC. 1ST QUARTER EARNINGS 2008
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SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
March 31, December 31, March 31,
2008 2007 2007
------------- ------------ ------------
CAPITAL RATIOS(1):
Tier 1 capital (to adjusted assets) 11.39% 12.03% 12.81%
Tier 1 risk -based capital (to risk-weighted assets) 21.75 21.78 26.22
Total risk-based capital (to risk-weighted assets) 22.53 22.54 27.03
ASSET QUALITY INDICATORS:
Nonperforming loans(2) $ 774 $ 819 $ 158
Real estate owned -- -- --
------- ------- -------
Total nonperforming assets $ 774 $ 819 $ 158
======= ======= =======
Ratio of nonperforming loans to total loans 0.17% 0.18% 0.04%
======= ======= =======
Ratio of nonperforming loans to total assets 0.09 0.10 0.02
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Ratio of allowance for loan losses to total loans 0.77 0.75 0.77
======= ======= =======
At or for the Three Months Ended;
March 31, December 31, March 31,
2008 2007 2007
---------------- --------------- ----------------
PERFORMANCE RATIOS (3):
Return on average assets 0.16% 0.17% 0.16%
Return on average equity 1.12 1.06 0.94
Net interest margin 2.39 2.74 2.45
OTHER:
Book value per share $ 8.62 $ 8.53 $ 8.62
Employees (full-time equivalents) 140 141 143
(1) Represents capital ratios of Fox Chase Bank
(2) Includes nonaccruing loans and accruing loans past due 90 days or more
(3) Annualized