8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 27, 2010

FOX CHASE BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland (State or other jurisdiction of incorporation or organization) 0-54025 (Commission File Number) 35-2379633 (IRS Employer Identification No.)

4390 Davisville Road, Hatboro, Pennsylvania 19040

(Address of principal executive offices) (Zip Code)

(215) 682-7400

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02Results of Operations and Financial Condition.

On October 27, 2010, Fox Chase Bancorp, Inc. (the “Company”), the holding company for Fox Chase Bank, issued a press release announcing its financial results for the three and nine months ended September 30, 2010.  For more information, reference is made to the Company’s press release dated October 27, 2010, a copy of which is attached to this Report as Exhibit 99.1 and is furnished herewith.

Item 9.01Financial Statements and Exhibits.

          (d) Exhibits

Number Description

99.1 Press Release dated October 27, 2010

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:  October 28, 2010	By:	/s/ Roger S. Deacon
		Roger S. Deacon
		Executive Vice President and Chief Financial Officer

EX-99.1

For Immediate Release

Date:                      October 27, 2010

Contact:                 Roger S. Deacon

Chief Financial Officer

Phone:                    (215) 775-1435

FOX CHASE BANCORP, INC. ANNOUNCES EARNINGS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2010

HATBORO, PA, October 27, 2010 – Fox Chase Bancorp, Inc. (the “Company”) (NASDAQ GM: FXCB), the holding company for Fox Chase Bank (the “Bank”), today announced net income of $692,000 and $1.9 million for the three and nine months ended September 30, 2010, respectively, compared to net income of $513,000 and $1.4 million for the three and nine months ended September 30, 2009, respectively.  Earnings per share for the three and nine months ended September 30, 2010 was $0.05 and $0.13, respectively, compared to $0.04 and $0.10 for the same periods in 2009, respectively.

Highlights for the three and nine month periods ended September 30, 2010 included:

·   Net interest income increased $937,000, or 15.4%, to $7.0 million for the three months ended September 30, 2010, compared to $6.1 million for the three months ended September 30, 2009 and increased $2.8 million, or 16.3%, to $20.1 million for the nine months ended September 30, 2010 from $17.3 million for the same period in 2009, primarily due to a decrease in interest expense on deposits.  Significant maturities of higher rate certificates of deposit and repricing of other deposit products occurred in the quarter and year to date resulting in improved funding costs.  

·   Net interest margin was 2.35% for the three months ended September 30, 2010 compared to 2.37% for the three months ended June 30, 2010 and 2.09% for the three months ended September 30, 2009.  

·   Efficiency ratio improved to 70.0% for the three months ended September 30, 2010 compared to 73.0% for the three months ended June 30, 2010 and 81.5% for the three months ended September 30, 2009.  

·   Provision for loan losses increased $1.4 million to $2.9 million for the three months ended September 30, 2010, from $1.5 million for the three months ended September 30, 2009 and increased $2.4 million to $4.9 million for the nine months ended September 30, 2010 from $2.4 million for the same period in 2009. The increase in the provision for loan losses is to allow the Company to expedite the reduction in the levels of nonperforming loans over the next several quarters.  

·   Offsetting the increased provision for loan losses were pre-tax gains of approximately $2.0 million on the sale of approximately $36.5 million of mortgage related securities.   These sales were made as premiums on such securities were at historically high levels.  

·   Other noninterest expense, which increased $417,000 and $533,000 for the three and nine months ended September 30, 2010, included a $345,000 and $379,000 valuation allowance on assets acquired through foreclosure for the three and nine months ended September 30, 2010, respectively.  There were no such valuation allowances during the comparable periods in 2009.  

·   Total assets were $1.13 billion at September 30, 2010, a decrease of $42.9 million, or 3.7%, from $1.17 billion at December 31, 2009. The decrease was primarily due to a $95.1 million, or 23.6%, decrease in mortgage related securities offset by a combined $50.6 million increase in loans, investment securities and cash and cash equivalents.  

·   Total liabilities were $925.9 million at September 30, 2010, a decrease of $124.3 million, or 11.8%, from $1.05 billion at December 31, 2009 and a decrease of $110.8 million, or 10.7%, from $1.04 billion at June 30, 2010. The decrease was primarily a result of a reduction in certificates of deposit as the Bank had $131.5 million of certificates of deposit mature during September 2010 at an average rate of 3.50%, of which of $50.2 million were retained at an average rate of 1.37%.  

·   Total stockholders’ equity was $205.1 million at September 30, 2010, an increase of $81.4 million, or 65.9%, from $123.6 million at December 31, 2009, due primarily to the $77.8 million in net proceeds from the Company’s second step conversion and reorganization to a fully public entity.

Credit related items as of and for the quarter ended September 30, 2010 include:

·   Allowance for loan losses increased to $11.3 million, or 1.70% of total loans, at September 30, 2010 compared to $10.6 million, or 1.65% of total loans, at December 31, 2009;

·   Loan charge-offs increased to $3.3 million for the three months ended September 30, 2010 and $4.1 million for the nine months ended September 30, 2010.  Loan charge-offs during the quarter were comprised of $1.8 million related to three commercial construction residential projects, $1.2 million related to three residential mortgage loans and $282,000 related to a second mortgage home equity loan;

·   Nonperforming assets declined to $31.5 million, or 2.78% of total assets, at September 30, 2010 from $32.0 million, or 2.57% of total assets, at June 30, 2010 and $33.7 million, or 2.87% of total assets, at December 31, 2009;

·   Nonperforming assets were comprised of the following asset classes at September 30, 2010 and June 30, 2010, respectively:

·     construction loans for residential projects – decreased to $11.1 million from $12.1 million;

·     commercial real estate loans – increased to $8.2 million from $6.2 million;

·     commercial and industrial loans – decreased to $308,000 from $313,000;

·     one-to-four family residential and home equity loans – decreased to $8.0 million from $9.1 million; and

·     assets acquired through foreclosure – decreased to $3.8 million from $4.3 million.

Commenting on the Company’s third quarter performance, Thomas M. Petro, President and Chief Executive Officer said, “We continued to address credit issues this quarter by writing down nonperforming assets that we feel we can liquidate in the next three to six months.  These liquidations, coupled with lower funding costs and improving operating metrics, will better position the Company for improved long-term financial performance in the coming year.  Our goal is to remain well positioned to exit the credit cycle with a strong balance sheet and capital to grow.  We believe our actions will help position the Company for long-term shareholder value in future periods.”

Fox Chase Bancorp, Inc will host a conference call to discuss third quarter 2010 results on Thursday, October 28, 2010 at 9:00 am EDT.  The general public can access the call by dialing (877) 317-6789.  A replay of the conference call will be available through November 8, 2010 by dialing (877) 344-7529; use Conference ID: 444834.

Fox Chase Bancorp, Inc. is the 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

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 materiall y 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.  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.

CONSOLIDATED STATEMENT OF OPERATIONS

 (Dollars in Thousands, Except Per Share Data)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2010		2009		2010		2009
	(Unaudited)
INTEREST INCOME
Interest and fees on loans	$	9,382	$	8,698	$	27,317	$	25,833
Interest on money market funds		-		23		-		183
Interest on mortgage related securities available-for-sale		2,691		3,975		9,438		10,735
Interest on investment securities available-for-sale
Taxable		142		238		315		623
Nontaxable		84		107		257		390
Dividend income		-		-		-		1
Other interest income		86		290		249		426
Total Interest Income		12,385		13,331		37,576		38,191
INTEREST EXPENSE
Deposits		3,734		5,478		12,531		15,576
Federal Home Loan Bank advances		1,194		1,333		3,602		3,992
Other borrowed funds		437		437		1,296		1,298
Total Interest Expense		5,365		7,248		17,429		20,866
Net Interest Income		7,020		6,083		20,147		17,325
Provision for loan losses		2,889		1,450		4,855		2,412
Net Interest Income after Provision for Loan Losses		4,131		4,633		15,292		14,913
NONINTEREST INCOME
Service charges and other fee income		243		192		742		672
Net gain on sale of premises and equipment		6		-		6		-
Net gain on sale of loans		-		-		-		3
Income on bank-owned life insurance		119		115		352		336
Other		62		58		167		269
Total other-than-temporary impairment loss		-		-		-		(605	)
Less: Portion of loss recognized in other comprehensive income (before taxes)		-		-		-		448
Net other-than-temporary impairment loss		-		-		-		(157	)
Net gains on sale of investment securities		1,963		958		1,963		1,546
Net investment securities gains		1,963		958		1,963		1,389
Total Noninterest Income		2,393		1,323		3,230		2,669
NONINTEREST EXPENSE
Salaries, benefits and other compensation		3,070		3,198		9,016		8,963
Occupancy expense		455		441		1,394		1,374
Furniture and equipment expense		140		170		427		571
Data processing costs		372		384		1,134		1,146
Professional fees		307		267		924		831
Marketing expense		75		72		241		242
FDIC premiums		343		343		1,116		1,415
Other		796		379		1,688		1,155
Total Noninterest Expense		5,558		5,254		15,940		15,697
Income Before Income Taxes		966		702		2,582		1,885
Income tax provision		274		189		731		473
Net Income	$	692	$	513	$	1,851	$	1,412
Earnings per share:
Basic	$	0.05	$	0.04	$	0.13	$	0.10
Diluted	$	0.05	$	0.04	$	0.13	$	0.10

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in Thousands, Except Share Data)

	September 30,			December 31,
	2010			2009
	(unaudited)
ASSETS
Cash and due from banks	$	182		$	44
Interest-earning demand deposits in other banks		77,814			65,374
Total cash and cash equivalents		77,996			65,418
Investment securities available-for-sale		33,406			19,548
Mortgage related securities available-for-sale		307,805			402,919
Loans, net of allowance for loan losses of $11,311
at September 30, 2010 and $10,605 at December 31, 2009		655,428			631,296
Assets acquired through foreclosure		3,786			4,052
Federal Home Loan Bank stock, at cost		10,435			10,435
Bank-owned life insurance		13,019			12,667
Premises and equipment		10,817			11,137
Real estate held for investment		1,730			1,730
Accrued interest receivable		4,454			4,467
Mortgage servicing rights, net		465			683
Deferred tax asset, net		1,117			1,467
Other assets		10,458			7,999
Total Assets	$	1,130,916		$	1,173,818
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits	$	738,834		$	858,277
Federal Home Loan Bank advances		123,905			137,165
Other borrowed funds		50,000			50,000
Advances from borrowers for taxes and insurance		1,108			2,119
Accrued interest payable		598			696
Accrued expenses and other liabilities		11,419			1,927
Total Liabilities		925,864			1,050,184
STOCKHOLDERS' EQUITY
Preferred stock ($.01 par value; 1,000,000 shares authorized,
none issued and outstanding at September 30, 2010 and
December 31, 2009)		-			-
Common stock ($.01 par value; 60,000,000 shares authorized,
14,547,173 shares issued and outstanding at September 30, 2010
and 35,000,000 shares authorized, 14,679,750 shares issued
and 13,609,187 shares outstanding at December 31, 2009)		145			147
Additional paid-in capital		133,725			64,016
Treasury stock, at cost (0 shares at September 30, 2010 and
1,070,563 shares at December 31, 2009)		-			(11,814	)
Common stock acquired by benefit plans		(9,441	)		(6,862	)
Retained earnings		73,415			71,604
Accumulated other comprehensive income, net		7,208			6,543
Total Stockholders' Equity		205,052			123,634
Total Liabilities and Stockholders' Equity	$	1,130,916		$	1,173,818

SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED)

(Dollars in Thousands, Except Per Share Data)

	September 30,			June 30,			December 31,			September 30,
	2010			2010			2009			2009
CAPITAL RATIOS:
Total stockholders’ equity (to total assets) (1)		18.13	%		16.60	%		10.53	%		10.70	%
Tier 1 capital (to adjusted assets) (2)		13.09			11.89			8.51			8.63
Tier 1 risk –based capital (to risk-weighted assets) (2)		22.49			21.89			15.41			15.39
Total risk-based capital (to risk-weighted assets) (2)		23.63			23.14			16.57			16.53
ASSET QUALITY INDICATORS:
Nonperforming loans (3)	$	27,672		$	27,728		$	29,680		$	16,216
Real estate owned		3,786			4,276			4,052			-
Total nonperforming assets	$	31,458		$	32,004		$	33,732		$	16,216
Ratio of nonperforming loans to total loans		4.15	%		4.13	%		4.62	%		2.51	%
Ratio of nonperforming assets to total assets		2.78			2.57			2.87			1.37
Ratio of allowance for loan losses to total loans		1.70			1.74			1.65			1.32
Ratio of allowance for loan losses to
nonperforming loans		40.9			42.1			35.7			52.4
Past due loans
30 - 59 days	$	5,638		$	5,173		$	1,269		$	9,578
60 - 89 days		82			10			2,306			1,705
Total	$	5,720		$	5,183		$	3,575		$	11,283

(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

	At or for the Three Months Ended
	September 30,			June 30,			September 30,
	2010			2010			2009
PERFORMANCE RATIOS(4):
Return on average assets		0.23	%		0.21	%		0.17	%
Return on average equity		1.34			1.90			1.63
Net interest margin		2.35			2.37			2.09
Efficiency ratio (5)		70.0			73.0			81.5
OTHER:
Tangible book value per share	$	14.10		$	14.19		$	9.28
Employees (full-time equivalents)		139			137			138
	For the Nine Months Ended
	September 30,			September 30,
		2010			2009
PERFORMANCE RATIOS (4):
Return on average assets		0.21	%		0.17	%
Return on average equity		1.61			1.52
Net interest margin		2.33			2.14
Efficiency ratio (5)		72.7			84.4

(4)  Annualized

(5)   Represents noninterest expense, excludingvaluation allowance on assets acquired through foreclosure, divided by the sum of net interest income and noninterest income,

     excluding gains or losses on the sale of securities, premises   and equipment and assets acquired through foreclosure.

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