Fox Chase Bancorp Inc. in Hatboro, Pa., said the planned sale of a pool of problem consumer loans has fallen through and that, as a result, its total nonperforming assets were higher in the fourth quarter than it initially reported.
The $1 billion-asset company announced Friday that the sale of the consumer loans with corresponding commercial financing by the bank was previously recorded in December but had to be reversed because it did not meet final conditions to be recorded as a sale. The loans had differing maturity dates throughout the second, third and fourth quarters.
As a result of the reversal, Fox Chase's nonperforming assets at Dec. 31 totaled $23.4 million, or 2.3% of assets, and not the $19.5 million, or 1.92% of assets, it reported when it released fourth-quarter results in February.
It said, however, that the reversal would not affect its income statement or stockholders' equity. For the quarter, the company reported a loan-loss provision of $2.8 million, double what set aside for loan losses a year earlier.
Fox Chase earned $1 million in the fourth quarter, up 11% from the same period in 2010.