1. Fox Chase Bancorp

Shares of Fox Chase Bancorp ( FXCB) of Hatboro, Pa., closed at $12.68 Monday, returning 1% year-to-date, following a 7% return during 2011.

Based on a quarterly payout of

The shares trade for 0.9 times tangible book value and 30 times the 2012 EPS estimate of 42 cents. The consensus 2013 EPS estimate is 50 cents.

Sterne Agee rates Fox Chase a "Buy," with a $15 price target, which Matthew Breese says " is a slight premium to book," adding that "we think 105% tangible book value is a reasonable price goal."

Breese describes Fox Chase as "grossly overcapitalized," and says that "when you have this much capital tangible common equity ratio of 18.5% , earnings get skewed because they have so much unlevered capital," so the shares trade for a very high multiple to earnings. The analyst thinks investors should focus on the discount to book value.

Fox Chase's quarterly ROA ranged between 0.41% and 0.47% during 2011. Sterne Agee sees "profitability as measured by ROA improving to 0.55% - 0.60% over the next two years."

Sterne Agee expects Fox Chase to deploy some of its excess capital though "the repurchase of 14% and 10% of total shares in 2012 and 2013."

Interested in more on Fox Chase Bancorp? See TheStreet Ratings' report card for this stock.

>>To see these stocks in action, visit the 5 Community Bank Stocks for Long-Term Investors portfolio on Stockpickr.

-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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