Fox Chase Bancorp, Inc. Announces Losses

HATBORO, Pa. – On Feb. 4, Fox Chase Bank announced a net loss of $1 million for 2009, compared to net income of $1.2 million in 2008. This year’s net loss included a provision for loan losses of $9.1 million compared to a provision for loan losses of $2.9 in 2008.
Fox Chase Bank has branch offices in Southeastern Pennsylvania and South Jersey including one in Ocean City and another in Marmora.
According to a release, the Company reported a net loss of $2.4 million for the three months ended Dec. 31 compared to net loss of $93,000 for the three months ended Dec. 31, 2008.
The release stated that highlights for the year included: deposit growth of $249.8 million, or 41 percent; interest and fees on loans increased $3.7 million, or 12 percent; net interest income increased $1.9 million, or 9 percent; non-interest expense, excluding a $1.6 million increase in Federal Deposit Insurance Corporation (“FDIC”) premiums, decreased $234,000, or 1.2 percent; and the bank remains “well capitalized” by all regulatory measures.
“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,” said Thomas M. Petro, president and CEO of the company.
“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,” he added.
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.