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EXHIBIT 99.1
FOX CHASE BANCORP, INC. ANNUAL 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: February 4, 2010
CONTACT: Roger S. Deacon
Chief Financial Officer
PHONE: (215) 775-1435
FOX CHASE BANCORP, INC. ANNOUNCES LOSS
FOR THE YEAR AND FOURTH QUARTER
HATBORO, PA, FEBRUARY 4, 2010 - Fox Chase Bancorp, Inc. (the "Company") (NASDAQ
GM: FXCB), the holding company for Fox Chase Bank (the "Bank"), today announced
a net loss of $1.0 million for the year ended December 31, 2009, compared to net
income of $1.2 million for the year ended December 31, 2008. The net loss for
the year ended December 31, 2009 included a provision for loan losses of $9.1
million compared to a provision for loan losses of $2.9 million for the year
ended December 31, 2008.
The Company reported a net loss of $2.4 million for the three months ended
December 31, 2009 compared to net loss of $93,000 for the three months ended
December 31, 2008. Net loss for the three months ended December 31, 2009 and
2008 included a provision for loan losses of $6.6 million and $2.0 million,
respectively.
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FOX CHASE BANCORP, INC. ANNUAL EARNINGS 2009
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Highlights for the year include:
o Deposit growth of $249.8 million, or 41%;
o Interest and fees on loans increased $3.7 million, or 12%;
o Net interest income increased $1.9 million, or 9%;
o Noninterest expense, excluding a $1.6 million increase in Federal
Deposit Insurance Corporation ("FDIC") premiums, decreased $234,000, or
1.2%;
o The Bank remains "well capitalized" by all regulatory measures at
December 31, 2009 with Tier 1 Capital at 8.51%, Tier 1 Risk-Based
Capital of 15.41% and Total Risk-Based Capital of 16.57%;
o The Company had $123.6 million in stockholders' equity and an equity
to total assets ratio of 10.5% at December 31, 2009.
Credit related items as of and for the year ended December 31, 2009 include:
o Allowance for loan losses increased to $10.6 million, or 1.65% of
total loans compared to $6.3 million, or 1.05% of total loans at
December 31, 2008;
o Allowance for loan losses to nonperforming loans was 35.7% at December
31, 2009;
o Loan charge offs totaled $4.7 million during 2009, of which $4.4
million were related to commercial loans;
o Nonperforming assets increased to $33.7 million, or 2.87% of total
assets, at December 31, 2009, compared to $5.9 million, or 0.63% of
total assets at December 31, 2008;
o Nonperforming assets were comprised of the following asset classes:
o construction loans for residential projects - $15.7 million;
o commercial real estate loans - $5.3 million;
o commercial and industrial loans - $250,000;
o one-to-four family residential and home equity loans - $8.4
million; and
o assets acquired through foreclosure - $4.1 million;
o Specific reserves related to nonperforming loans totaled $4.3 million
at December 31, 2009;
o Nonperforming loans are all within the Bank's geographic footprint,
however, the New Jersey economy has deteriorated at a faster rate than
the economy in Southeastern Pennsylvania. Approximately 80% of the
Bank's nonperforming construction and commercial loans and 89% of
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FOX CHASE BANCORP, INC. ANNUAL EARNINGS 2009
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nonperforming residential and home equity loans are located in New
Jersey;
o Nonperforming loans include two construction loans for residential
projects totaling $10.5 million, where the borrowers were not
contractually delinquent as of December 31, 2009. These loans were
classified as nonperforming due to uncertainty regarding the ability of
the borrower to make future payments as contractually due. Loan loss
reserves were established based on appraised values of the underlying
real estate;
o Delinquent loans 30 to 90 days totaled $1.1 million at December 31,2009
compared to $11.3 million at September 30, 2009.
Commenting on the fourth quarter 2009 and full year performance, Thomas M.
Petro, President and Chief Executive Officer of Fox Chase Bancorp said,
"Economic conditions in the Bank's geographic locations of Southern New Jersey
and Southeastern Pennsylvania continued to deteriorate during the latter part of
2009. We are disappointed with the increased levels of nonperforming assets and
the associated increase in the provision for loan losses during the fourth
quarter of 2009. Continuing high unemployment and weakness in the housing market
continue to place stress on our borrowers. The most significant impact on our
loan portfolio was continued stress on real estate values as construction loans
for residential projects; residential mortgages and home equity loans comprised
$24.1 million of our $29.7 million nonperforming loans at year-end. We are
committed to maintaining a strong balance sheet with appropriate loss reserves
and strong capital ratios, which will position us well for handling risks going
forward into 2010. To assist in such efforts, we have established a Special
Asset Management Group within the Bank, comprised of four employees experienced
in workout resolutions."
Total assets increased $242.5 million, or 26.0%, to $1.17 billion at December
31, 2009, compared to $931.3 million at December 31, 2008. The increase in
assets was primarily due to a $133.2 million, or 49.4%, increase in mortgage
related securities, a $61.5 million increase in cash and cash equivalents, as
well as a $42.3 million, or 7.2% increase in loans. Deposits increased $249.8
million, or 41.1%, to $858.3 million at December 31, 2009. The increase was
primarily a result of a $150.1 million increase in certificates of deposit as
well as an increase of $83.1 million in money market accounts, primarily a
result of promotional activities completed in the first quarter of 2009.
Stockholders' equity increased $2.4 million to $123.6 million at December 31,
2009 compared to $121.2 million at December 31, 2008. The primary reason for the
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FOX CHASE BANCORP, INC. ANNUAL EARNINGS 2009
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increase was the change in accumulated other comprehensive income of $6.5
million offset by the repurchase of 457,372 shares of common stock at a cost of
$4.5 million and the net loss for the period.
Net interest income increased $1.9 million, or 8.9%, and $510,000, or 8.6%,
during the twelve and three months ended December 31, 2009, respectively,
compared to the same periods in 2008. Net interest margin was 2.16% for the
twelve months ended December 31, 2009 compared to 2.59% for the comparable
period in 2008. Net interest margin was 2.20% for the three months ended
December 31, 2009 compared to 2.09% for the three months ended September 30,
2009 and 2.70% for the three months ended December 31, 2008. The increase in net
interest income for 2009 was primarily attributable to an increase of $255.6
million, or 30.7%, of average interest earning assets in 2009 as compared to
2008, as average loans increased $106.8 million, or 20.6%, and average mortgage
related securities increased $105.7 million, or 42.8%, in 2009 as compared to
2008.
The Company recorded a provision for loan losses of $9.1 million and $6.6
million for the twelve and three months ended December 31, 2009, respectively as
compared to $2.9 million and $2.0 million for the twelve and three months ended
December 31, 2008, respectively. The $6.6 million provision for the fourth
quarter of 2009 was primarily a result of: (1) specific provisions for
impairments on nonperforming construction and commercial loans totaling $4.9
million based primarily on appraisals; (2) specific provisions for impairments
on residential mortgages and consumer loans totaling $750,000, primarily related
to three loans; (3) an increase in general reserves on construction and
commercial loans, primarily related to downgrades in internal risk ratings on
existing credits, totaling $800,000; and (4) an increase in general reserves on
residential mortgages and consumer loans totaling $150,000. The Company recorded
$4.7 million and $4.5 million of loan charge offs for the twelve and three
months ended December 31, 2009. The commercial loan portfolio had $4.4 million
of charge offs in the three months ended December 31, 2009, including $2.9
million related to a self-storage center located in New Jersey.
Noninterest income increased $2.4 million and $848,000 for the twelve and three
months ended December 31, 2009, respectively, compared to the same periods in
2008. The increases for the twelve and three months ended December 2009 were
primarily due to $2.4 million and $835,000 in net gains on sale of investment
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FOX CHASE BANCORP, INC. ANNUAL EARNINGS 2009
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securities in 2009. Such gains were offset by an impairment loss taken on real
estate held for investment of $150,000 in the fourth quarter 2009. Other
noninterest income increased $242,000 and $29,000, respectively, for the twelve
and three months ended December 31, 2009, compared to the same periods in 2008
primarily due to earnings from an investment in a mortgage company of $234,000
and $25,000, respectively for the twelve and three months ended December 31,
2009. Finally, for the twelve months ended December 31, 2009, service charges
and other fee income increased by $170,000 as the Bank reduced the valuation
allowance on its mortgage servicing rights by $48,000 compared to recording a
valuation allowance of $133,000 for the same period in 2008.
Noninterest expense increased $1.4 million, or 7.3%, and $155,000, or 3.5%,
during the twelve and three months ended December 31, 2009, respectively,
compared to the same periods in 2008. The increase in noninterest expense for
the twelve and three month period was primarily a result of FDIC premiums
increasing $1.6 million and $285,000, respectively, 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.
The Company's effective income tax rate was (44.6)% and 12.0% for the
twelve-month periods ended December 31, 2009 and 2008 and (34.8)% and (69.3)%
for the three months ended December 31, 2009 and 2008, respectively.
During the twelve and three months ended December 31, 2009, the Company
repurchased 457,372 and 70,100 shares of common stock, at average prices of
$9.85 and $9.98, respectively, pursuant to previously announced stock repurchase
programs. There are 237,437 shares remaining to be repurchased under the May
2009 program. Timing and volume of 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 branch offices in Bucks, Montgomery, Chester,
Delaware and Philadelphia Counties in Pennsylvania and Atlantic and Cape May
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FOX CHASE BANCORP, INC. ANNUAL EARNINGS 2009
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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.
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FOX CHASE BANCORP, INC. ANNUAL EARNINGS 2009
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CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2009 2008 2009 2008
---------- --------- ------------ -----------
(Unaudited) (Unaudited) (Audited)
INTEREST INCOME
Interest and fees on loans $ 8,860 $ 8,593 $ 34,693 $ 31,008
Interest on money market funds - 15 183 536
Interest on mortgage related securities available-for-sale 3,919 3,108 14,654 12,356
Interest on investment securities available-for-sale
Taxable 140 118 763 994
Nontaxable 92 144 482 613
Dividend income- - 53 1 246
Other interest income 196 7 622 131
-------- -------- -------- --------
TOTAL INTEREST INCOME 13,207 12,038 51,398 45,884
-------- -------- -------- --------
INTEREST EXPENSE
Deposits 5,013 4,459 20,589 18,463
Federal Home Loan Bank advances 1,319 1,255 5,311 4,635
Other borrowed funds 437 396 1,735 963
-------- -------- -------- --------
TOTAL INTEREST EXPENSE 6,769 6,110 27,635 24,061
-------- -------- -------- --------
NET INTEREST INCOME 6,438 5,928 23,763 21,823
Provision for loan losses 6,640 2,000 9,052 2,900
-------- -------- -------- --------
NET INTEREST (EXPENSE) INCOME AFTER PROVISION FOR LOAN
LOSSES (202) 3,928 14,711 18,923
-------- -------- -------- --------
NONINTEREST INCOME
Service charges and other fee income 246 115 918 748
Net gain on sale of loans - - 3 10
Impairment loss on real estate held for investment (150) - (150) -
Income on bank-owned life insurance 117 114 453 452
Other 50 21 319 77
Total other-than-temporary impairment loss - - (605) -
Less: Portion of loss recognized in other comprehensiveincome
(before taxes) - - 448 -
-------- -------- -------- --------
Net other-than-temporary impairment loss
- - (157) -
Net gains on sale of investment securities 835 - 2,381 118
-------- -------- -------- --------
Net investment securities gains 835 - 2,224 118
-------- -------- -------- --------
TOTAL NONINTEREST INCOME 1,098 250 3,767 1,405
-------- -------- -------- --------
NONINTEREST EXPENSE
Salaries, benefits and other compensation 2,540 2,523 11,503 11,313
Occupancy expense 451 467 1,825 1,879
Furniture and equipment expense 153 230 724 899
Data processing costs 372 406 1,518 1,610
Professional fees 276 261 1,107 1,124
Marketing expense 104 126 346 463
FDIC premiums 380 95 1,795 176
Other 360 373 1,515 1,484
-------- -------- -------- --------
TOTAL NONINTEREST EXPENSE
4,636 4,481 20,333 18,948
-------- -------- -------- --------
(LOSS) INCOME BEFORE INCOME TAXES
(3,740) (303) (1,855) 1,380
Income tax (benefit) provision (1,300) (210) (827) 165
-------- -------- -------- --------
NET (LOSS) INCOME $ (2,440) $ (93) $ (1,028) $ 1,215
======== ======== ======== ========
(Loss) earnings per share:
Basic $ (0.19) $ 0.01 $ (0.08) $ 0.09
Diluted $ (0.19) $ 0.01 $ (0.08) $ 0.09
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FOX CHASE BANCORP, INC. ANNUAL EARNINGS 2009
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CONSOLIDATED STATEMENTS OF CONDITION
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
DECEMBER 31,
----------------------------
2009 2008
------------ ------------
(UNAUDITED) (AUDITED)
ASSETS
Cash and due from banks $ 44 $ 642
Interest-earning demand deposits in other banks 65,374 3,302
---------- ----------
Total cash and cash equivalents 65,418 3,944
Investment securities available-for-sale 19,548 25,041
Mortgage related securities available-for-sale 402,919 269,682
Loans, net of allowance for loan losses of $10,605
at December 31, 2009 and $6,260 at December 31, 2008 631,296 588,975
Federal Home Loan Bank stock, at cost 10,435 9,707
Bank-owned life insurance 12,667 12,214
Premises and equipment 11,137 11,748
Assets acquired through foreclosure 4,052 -
Real estate held for investment 1,730 1,957
Accrued interest receivable 4,467 3,721
Mortgage servicing rights, net 683 827
Deferred tax asset, net 1,467 1,869
Other assets 7,999 1,585
---------- ----------
TOTAL ASSETS $1,173,818 $ 931,270
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits $ 858,277 $ 608,472
Federal Home Loan Bank advances 137,165 146,379
Other borrowed funds 50,000 50,000
Advances from borrowers for taxes and insurance 2,119 2,589
Accrued interest payable 696 727
Accrued expenses and other liabilities 1,927 1,883
---------- ----------
TOTAL LIABILITIES 1,050,184 810,050
---------- ----------
STOCKHOLDERS' EQUITY
Preferred stock ($.01 par value; 1,000,000 shares authorized,
none issued and outstanding at December 31, 2009 and 2008) - -
Common stock ($.01 par value; 35,000,000 shares authorized,
14,679,750 shares issued and 13,609,187 shares outstanding at
December 31, 2009 and 14,679,750 shares issued and 14,066,559
shares outstanding at December 31, 2008) 147 147
Additional paid-in capital 64,016 63,516
Treasury stock, at cost (1,070,563 shares at December 31, 2009 and
613,191 shares at December 31, 2008) (11,814) (7,293)
Common stock acquired by benefit plans (6,862) (7,819)
Retained earnings 71,604 72,664
Accumulated other comprehensive income, net 6,543 5
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 123,634 121,220
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,173,818 $ 931,270
========== ==========
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FOX CHASE BANCORP, INC. ANNUAL EARNINGS 2009
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SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
December 31, September 30, December 31,
2009 2009 2008
---------------- ---------------- ----------------
CAPITAL RATIOS:
Total stockholders' equity (to total assets) (1) 10.53% 10.70% 13.02%
Tier 1 capital (to adjusted assets) (2) 8.51 8.63 10.70
Tier 1 risk -based capital (to risk-weighted assets) (2)
15.41 15.39 18.11
Total risked-based capital (to risk-weighted assets) (2)
16.57 16.53 19.25
ASSET QUALITY INDICATORS:
Nonperforming loans (3) $29,680 $16,216 $ 5,850
Real estate owned 4,052 - -
-------- --------- ---------
Total nonperforming assets $33,732 $16,216 $ 5,850
======== ========= =========
Ratio of nonperforming loans to total loans 4.62% 2.51% 0.98%
======== ========= =========
Ratio of nonperforming assets to total assets 2.87 1.37 0.63
======== ========= =========
Ratio of allowance for loan losses to total loans 1.65 1.32 1.05
======== ========= =========
Ratio of allowance for loan losses to
nonperforming loans 35.7 52.4 107.0
======== ========= =========
Delinquencies:
30 - 59 days past due $ 1,125 $ 9,578 933
60 - 89 days past due 3 1,705 512
-------- --------- ---------
Total past due $ 1,128 $11,283 $ 1,445
======== ========= =========
At or for the three months ended
------------------------------------------------------
December 31, September 30, December 31,
2009 2009 2008
---------------- ---------------- ----------------
PERFORMANCE RATIOS (4):
Return on average assets (0.82)% 0.17% (0.04)%
Return on average equity (7.62) 1.63 (0.31)
Net interest margin 2.20 2.09 2.70
OTHER:
Book value per share $ 9.08 $ 9.28 $ 8.62
Employees (full-time equivalents) 138 138 137
For the twelve months ended
---------------------------------
December 31, December 31,
2009 2008
-------------- ---------------
PERFORMANCE RATIOS:
Return on average assets (0.09)% 0.14%
Return on average equity (0.82) 1.00
Net interest margin 2.16 2.59
(1) Represents stockholders' equity ratio of Fox Chase Bancorp, Inc.
(2) Represents capital ratios of Fox Chase Bank
(3) Includes nonaccruing loans and loans greater than 90 days past contractual
maturity
(4) Annualized
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