1359111--3/12/2010--Fox_Chase_Bancorp

related topics

{loan, real, estate}

{loss, insurance, financial}

{condition, economic, financial}

{regulation, government, change}

{tax, income, asset}

{capital, credit, financial}

{acquisition, growth, future}

{competitive, industry, competition}

{regulation, change, law}

Our provision for loan losses increased substantially during the past fiscal year and we may be required to make further increases in our provision for loan losses and to charge-off additional loans in the future, especially due to our level of non-performing assets. Further, our allowance for loan losses may prove to be insufficient to absorb losses in our loan portfolio. The economic recession could result in increases in our level of nonperforming loans and/or reduce demand for our products and services, which would lead to lower revenue, higher loan losses and lower earnings. Our emphasis on commercial lending may expose us to increased lending risks. The unseasoned nature of our commercial loan portfolio may result in changes in estimating collectibility, which may lead to additional provisions or charge-offs, which could hurt our profits. Our emphasis on residential mortgage loans and home equity loans exposes us to a risk of loss. Our construction loan portfolio may expose us to increased credit risk. Turmoil in the financial markets could have an adverse effect on our financial position or results of operations. Changes in interest rates could have a material adverse effect on our earnings. Our inability to retain deposits as they become due or to generate core deposits may cause us to rely more heavily on wholesale funding strategies, which could increase our expenses and adversely affect our operating margins and profitability. Our business strategy includes the continuation of moderate growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. If we conclude that the decline in value of any of our investment securities is other than temporary, we are required to write down the value of that security. Proposed regulatory reform may have a material impact on our operations. We operate in a highly regulated environment and we may be adversely affected by changes in laws and regulations. As a member bank, we own stock in the Federal Home Loan Bank of Pittsburgh, which is experiencing financial difficulties. Increased and/or special FDIC assessments will hurt our earnings. Strong competition within our market areas could reduce our profits.

Full 10-K form ▸

1359111--3/12/2010--Fox_Chase_Bancorp_Inc