<Page>1
FOX CHASE BANCORP, INC. 2nd QUARTER EARNINGS 2009
PAGE 1
[FOX CHASE BANCORP, INC. LOGO]
4390 Davisville Road, Hatboro, PA 19040 Phone (215) 682-7400 Fax (215) 682-4144
NEWS RELEASE
------------
FOR IMMEDIATE RELEASE
DATE: July 30, 2009
CONTACT: Roger Deacon
Chief Financial Officer
PHONE: (215) 682-4116
FOX CHASE BANCORP ANNOUNCES EARNINGS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2009
HATBORO, PA, JULY 30, 2009 - Fox Chase Bancorp, Inc. (the "Company") (NASDAQ GM:
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.
<Page>2
FOX CHASE BANCORP, INC. 2nd QUARTER EARNINGS 2009
PAGE 2
Highlights for the three and six month periods ended June 30, 2009 included:
o 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;
o 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;
o 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;
o Total assets were $1.17 billion at June 30, 2009, an increase of $238
million, or 25.6% from December 31, 2008;
o Deposits totaled $845 million at June 30, 2009, representing an increase
of $236 million, or 38.8%, from December 31, 2008; and
o 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
<Page>3
FOX CHASE BANCORP, INC. 2nd QUARTER EARNINGS 2009
PAGE 3
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.
--------------------
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.
<Page>4
FOX CHASE BANCORP, INC. 2nd QUARTER EARNINGS 2009
PAGE 4
<Table>
<Caption>
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
</Table>
<Page>5
FOX CHASE BANCORP, INC. 2nd QUARTER EARNINGS 2009
PAGE 5
<Table>
<Caption>
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
============ ============
</Table>
<Page>6
FOX CHASE BANCORP, INC. 2nd QUARTER EARNINGS 2009
PAGE 5
<Table>
<Caption>
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
June 30, December 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
======== ========== =======
</Table>
<Table>
<Caption>
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
</Table>
<Table>
<Caption>
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
</Table>
(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
###