Fox Chase Bancorp Inc. has a market cap of $154.6 million; its shares were traded at around $11.36 with and P/S ratio of 2.8.
Highlight of Business Operations:Total assets decreased $17.4 million, or 1.5%, to $1.16 billion at March 31, 2010, compared to $1.17 billion at December 31, 2009. Cash and cash equivalents decreased $14.2 million from December 31, 2009 to March 31, 2010 as funds were used to pay off $11.0 million in advances from the Federal Home Loan Bank. Loans increased $13.8 million from December 31, 2009 to March 31, 2010. Commercial and industrial loans increased $21.0 million, primarily as a result of loans originated by a middle market group of lenders hired during 2009. Commercial construction loans decreased by $2.5 million as we de-emphasized construction lending during the past year and commercial real estate loans increased by $1.1 million. Additionally, our one- to four-family real estate
loans decreased $3.0 million and our consumer loans decreased $2.8 million. The decrease in consumer loans was due to Fox Chase Bancorps decision to de-emphasize these types of loans as a result of the current economic environment. Mortgage related securities available-for-sale decreased $24.7 million, as cash repayments exceeded new purchases during the three months ended March 31, 2010. Investment related securities available for sale decreased $587,000, primarily due to bond calls by state and political subdivisions.
Deposits decreased $12.1 million, or 1.4%, from $858.3 million at December 31, 2009 to $846.2 million at March 31, 2010. Certificates of deposits decreased $19.3 million, or 3.7%, and money market accounts decreased $3.0 million, or 1.6%, from December 31, 2009 to March 31, 2010. These decreases were offset by increases in noninterest-bearing demand accounts of $8.9 million, or 15.6%, and in savings and club accounts of $1.5 million, or 2.9%, from December 2009 to March 2010. The decrease in certificates of deposits relates primarily to customer redemptions associated with certificates of deposit obtained during a pricing promotion offered in the first quarter of 2009. The increase in noninterest-bearing demand accounts was primarily due to deposits obtained from new commercial borrowing relationships.
Stockholders equity increased $1.6 million to $125.2 million at March 31, 2010 compared to $123.6 million at December 31, 2009 primarily due to unrealized gains, net of taxes, on the investment portfolio of $7.3 million compared to $6.5 million at December 31, 2009 and net income of $551,000 for the three months ended March 31, 2010.
General. Net income decreased $50,000, or 8.3%, to $551,000 for the three months ended March 31, 2010, compared to $601,000 for the three months ended March 31, 2009. The decrease in net income was due to an increase in the loan loss provision of $496,000, an increase of $229,000 in noninterest expense, primarily the result of an increase of $131,000 in FDIC premiums, and an increase of $17,000 in income tax expense, offset by an increase in net interest income of $636,000 and an increase in noninterest income of $56,000.
Net Interest Income. Net interest income increased $636,000, or 11.0%, during the three months ended March 31, 2010, compared to the same period in 2009 primarily due to an increase in interest income of $720,000 offset by a $84,000 increase in interest expense. The increase in interest income was primarily due to an increase in the average balance of total interest earning assets of $187.1 million, offset by a decrease in the average yield on interest-earning assets from 5.10% to 4.49%. The increase in average balances of interest-earning assets was primarily due to: (1) an increase in the average balance of loans of $42.1 million during the respective quarterly periods primarily related to Fox Chase Bancorps focus on increasing its levels of commercial loans; (2) an increase in the average balance of mortgage related securities of $125.6 million during the respective quarterly periods; and (3) an increase in the average balance of interest-earning demand deposits of $48.7 million offset by a decrease of $18.2 million in money market funds. The decrease in yield on interest-earning assets was primarily due to a reduction in overall interest rates from 2009 to 2010.
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