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EXHIBIT 99.1
FOX CHASE BANCORP, INC. 3rd QUARTER EARNINGS 2009
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[FOX CHASE BANCORP, INC. LETTERHEAD]
NEWS RELEASE
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FOR IMMEDIATE RELEASE
DATE: October 29, 2009
CONTACT: Roger Deacon
Chief Financial Officer
PHONE: (215) 775-1435
FOX CHASE BANCORP, INC. ANNOUNCES EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009
HATBORO, PA, OCTOBER 29, 2009 - Fox Chase Bancorp, Inc. (the "Company") (NASDAQ
GM: FXCB), the holding company for Fox Chase Bank (the "Bank"), today announced
net income of $513,000 and $1.4 million for the three and nine months ended
September 30, 2009, respectively, compared to net income of $659,000 and $1.3
million for the three and nine months ended September 30, 2008, respectively.
Highlights for the three and nine month periods ended September 30, 2009
included:
o Net interest income increased $264,000, or 4.5%, to $6.1 million for
the three months ended September 30, 2009, compared to $5.8 million for
the three months ended September 30, 2008, and increased $1.4 million,
or 9.0%, to $17.3 million for the nine months ended September 30, 2009
from $15.9 million for the same period in 2008;
o Net interest income increased $642,000 for the three months ended
September 30, 2009, compared to the three months ended June 30, 2009,
and the net interest margin increased to 2.09% for the three months
ended September 30, 2009 from 1.93% for the three months ended June 30,
2009. This increase was primarily due to loan growth and the investment
of excess cash into higher earning securities;
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FOX CHASE BANCORP, INC. 3rd QUARTER EARNINGS 2009
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o The Company recorded provisions for loan losses of $1.5 million and
$2.4 million for the three and nine months ended September 30, 2009,
respectively, compared to $500,000 and $900,000 for the three and nine
months ended September 30, 2008, respectively. The increase in the
provision was primarily driven by an increase in nonperforming,
delinquent and classified loans in both the residential and commercial
loan portfolios. Nonperforming loans increased to $16.2 million, or
2.51% of gross loans, at September 30, 2009 from $5.9 million, or 0.98%
of gross loans, at December 31, 2008;
o The allowance for loan losses at September 30, 2009 was 1.32% of total
loans outstanding at September 30, 2009, compared to 1.05% of total
loans outstanding at December 31, 2008;
o Net investment securities gains were $958,000 and $1.4 million for the
three and nine months ended September 30, 2009, respectively, compared
to $0 and $118,000, respectively, for the three and nine months ended
September 30, 2008;
o Federal Deposit Insurance Corporation ("FDIC") premiums were $343,000
and $1.4 million for the three and nine months ended September 20,
2009, respectively, and $26,000 and $81,000 for the three and nine
months ended September 30, 2008, respectively. This increase was due to
(a) a one-time FDIC special assessment of $536,000 assessed in the
second quarter of 2009, (b) the Bank's FDIC insurance credit was fully
utilized during the fourth quarter of 2008, and (c) an increase in both
the average deposit balances and the FDIC premium rate;
o Total assets were $1.19 billion at September 30, 2009, an increase
of $255.0 million, or 27.4% from December 31, 2008;
o Loans totaled $636.7 million at September 30, 2009, representing an
increase of $47.8 million, or 8.1%, from December 31, 2008, primarily
in the multi-family and commercial real estate category; and
o Deposits totaled $860.5 million at September 30, 2009, representing an
increase of $252.1 million, or 41.4%, from December 31, 2008.
Thomas M. Petro, President and CEO said, "The economic environment in the
mid-Atlantic region of the United States continued to deteriorate in the last
three months. Unemployment and continued declines in residential real estate
values in our market area have negatively impacted our customers and resulted in
increasing delinquencies and nonperforming loans. While we have initiated
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FOX CHASE BANCORP, INC. 3rd QUARTER EARNINGS 2009
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strategies to mitigate the effects of these economic and recessionary risks, we
are also optimistic that our strong capital position and our deposit and loan
growth will help us take advantage of a future economic recovery. Despite this
environment, in the third quarter the Company was able to be profitable while
increasing its reserves for loan losses. We continue to remain well capitalized
for regulatory purposes and are highly focused on improving the long-term
operational capacity and profitability of the Company."
During the three and nine months ended September 30, 2009, the Company
repurchased 120,683 and 387,272 shares of its common stock, respectively,
pursuant to previously announced stock repurchase programs. The Company's July
2008 program was completed in the third quarter of 2009. There are 307,537
shares remaining 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.
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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.
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CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2009 2008 2009 2008
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INTEREST INCOME
Interest and fees on loans $ 8,698 $ 8,106 $ 25,833 $ 22,415
Interest on money market funds 23 - 183 521
Interest on mortgage related securities available-for-sale 3,975 3,138 10,765 9,248
Interest on investment securities available-for-sale
Taxable 238 121 623 876
Nontaxable 107 146 390 469
Dividend income - 69 1 193
Other interest income 290 17 426 124
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TOTAL INTEREST INCOME 13,331 11,597 38,191 33,846
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INTEREST EXPENSE
Deposits 5,478 4,345 15,576 14,004
Federal Home Loan Bank advances 1,333 1,230 3,992 3,380
Other borrowed funds 437 203 1,298 567
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TOTAL INTEREST EXPENSE 7,248 5,778 20,866 17,951
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NET INTEREST INCOME 6,083 5,819 17,325 15,895
Provision for loan losses 1,450 500 2,412 900
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 4,633 5,319 14,913 14,995
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NONINTEREST INCOME
Service charges and other fee income 192 218 672 633
Net gain on sale of loans - 6 3 10
Income on bank-owned life insurance 115 114 336 338
Other 58 21 269 56
Total other-than-temporary impairment loss - - (605) -
Less: Portion of loss recognized in other comprehensive
income (before taxes) - - 448 -
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Net other-than-temporary impairment loss - - (157) -
Net gains on sale of investment securities 958 - 1,546 118
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Net investment securities gains 958 - 1,389 118
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TOTAL NONINTEREST INCOME 1,323 359 2,669 1,155
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NONINTEREST EXPENSE
Salaries, benefits and other compensation 3,198 2,928 8,963 8,790
Occupancy expense 441 458 1,374 1,412
Furniture and equipment expense 170 226 571 669
Data processing costs 384 402 1,146 1,204
Professional fees 267 285 831 863
Marketing expense 72 117 242 337
FDIC premiums 343 26 1,415 81
Other 379 347 1,155 1,111
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TOTAL NONINTEREST EXPENSE 5,254 4,789 15,697 14,467
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INCOME BEFORE INCOME TAXES 702 889 1,885 1,683
Income tax provision 189 230 473 375
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NET INCOME $ 513 $ 659 $ 1,412 $ 1,308
========= ========= ========== ==========
Earnings per share:
Basic $ 0.04 $ 0.05 $ 0.11 $ 0.10
Diluted $ 0.04 $ 0.05 $ 0.11 $ 0.10
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
SEPTEMBER 30, DECEMBER 31,
2009 2008
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(UNAUDITED)
ASSETS
Cash and due from banks $ 241 $ 642
Interest-earning demand deposits in other banks 57,933 3,302
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Total cash and cash equivalents 58,174 3,944
Investment securities available-for-sale 27,235 25,041
Mortgage related securities available-for-sale 415,029 269,682
Loans, net of allowance for loan losses of $8,489
at September 30, 2009 and $6,260 at December 31, 2008 636,749 588,975
Loans held for sale 167 -
Federal Home Loan Bank stock, at cost 10,435 9,707
Bank-owned life insurance 12,551 12,214
Premises and equipment 11,311 11,748
Real estate held for investment 1,880 1,957
Accrued interest receivable 4,583 3,721
Mortgage servicing rights 735 827
Deferred tax asset, net - 1,869
Other assets 7,399 1,585
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TOTAL ASSETS $1,186,248 $ 931,270
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits 860,529 608,472
Federal Home Loan Bank advances 143,232 146,379
Other borrowed funds 50,000 50,000
Advances from borrowers for taxes and insurance 1,221 2,589
Accrued interest payable 759 727
Deferred tax liability, net 1,187 -
Accrued expenses and other liabilities 2,385 1,883
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TOTAL LIABILITIES 1,059,313 810,050
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STOCKHOLDERS' EQUITY
Preferred stock ($.01 par value; 1,000,000 shares authorized,
none issued and outstanding at September 30, 2009 and
December 31, 2008) - -
Common stock ($.01 par value; 35,000,000 shares authorized,
14,679,750 shares issued and 13,679,287 shares outstanding at
September 30, 2009 and 14,679,750 shares issued and 14,066,559
shares outstanding at December 31, 2008) 147 147
Additional paid-in capital 63,765 63,516
Treasury stock (at cost, 1,000,463 shares at September 30, 2009
and 613,191 shares at December 31, 2008) (11,112) (7,293)
Common stock acquired by benefit plans (6,957) (7,819)
Retained earnings 74,044 72,664
Accumulated other comprehensive income, net 7,048 5
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TOTAL STOCKHOLDERS' EQUITY 126,935 121,220
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,186,248 $ 931,270
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FOX CHASE BANCORP, INC. 3rd QUARTER EARNINGS 2009
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SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
September 30, December 31, September 30,
2009 2008 2008
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CAPITAL RATIOS(1):
Total Stockholders' Equity (to Total Assets)(1) 10.70% 13.02% 13.61%
Tier 1 capital (to adjusted assets)(2) 8.63% 10.70% 11.20%
Tier 1 risk-based capital (to risk-weighted assets)(2) 15.39 18.11 18.72
Total risk-based capital (to risk-weighted assets)(2) 16.53 19.25 19.52
ASSET QUALITY INDICATORS:
Total nonperforming loans(3) $ 16,216 $ 5,850 $ 1,871
Real estate owned - - -
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Total nonperforming assets $ 16,216 $ 5,850 $ 1,871
========= ========== =========
Ratio of nonperforming loans to total loans 2.51% 0.98% 0.32%
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Ratio of nonperforming loans to total assets 1.37 0.63 0.21
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Ratio of allowance for loan losses to total loans 1.32 1.05 0.74
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Ratio of allowance for loan losses to
nonperforming assets 52.4 107.0 227.7
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At or for the Three Months Ended:
September 30, June 30, September 30,
2009 2009 2008
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PERFORMANCE RATIOS(4):
Return on average assets 0.17% 0.10% 0.31%
Return on average equity 1.63 0.96 2.18
Net interest margin 2.09 1.93 2.79
OTHER:
Book value per share $9.28 $ 9.02 $ 8.54
Employees (full-time equivalents) 138 142 139
For the Nine Months Ended:
September 30, September 30,
2009 2008
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PERFORMANCE RATIOS(4):
Return on average assets 0.17% 0.20%
Return on average equity 1.52 1.43
Net interest margin 2.14 2.55
(1) Represents stockholders' equity to assets ratio of Fox Chase Bancorp, Inc.
(2) Represents regulatory capital ratios of Fox Chase Bank
(3) Includes nonaccruing loans and accruing loans past due 90 days or more
(4) Annualized
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