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PHILADELPHIA, Jul 27, 2009 (BUSINESS WIRE) -- Beneficial Mutual Bancorp, Inc. ("Beneficial") (NASDAQGS: BNCL), the parent company of Beneficial Bank (the "Bank"), today announced its financial results for the three and six months ended June 30, 2009.
For the three months ended June 30, 2009, Beneficial recorded a loss of $50 thousand, or $0.00 per share, compared to net income of $5.1 million, or $0.07 per share for the three months ended March 31, 2009. The decline in earnings resulted primarily from increased credit costs and increased FDIC deposit insurance expenses, including a special assessment imposed by the FDIC during the second quarter. In the three months ended June 30, 2008, Beneficial earned $9.1 million, or $0.11 per share, including a pension curtailment gain of $7.3 million. Year to date through June 30, 2009, Beneficial has recorded earnings of $5.1 million, or $0.07 per share.
"The second quarter of 2009 presented significant challenges and opportunities for Beneficial," said Gerard Cuddy, Beneficial's President and CEO. "We're meeting the challenges presented by the current economic weakness head on, while capitalizing on opportunities for loan growth and expansion of our relationship-based core deposits. While increased credit costs and the FDIC special assessment adversely impacted our quarterly results, we remain confident in the strength of our balance sheet, operating performance, and our sound capital position. And we are even more encouraged by our outstanding employees as they help our customers do the right thing financially."
Highlights for the quarter included:
Balance Sheet
Total assets increased$136.3 million, or 3.4%, from March 31, 2009, to $4.2 billion at June 30, 2009. The increase in total assets was primarily due to an increase in total loans outstanding of $150.7 million partially offset by an increase in the allowance for loan losses of $5.9 million. Commercial, consumer and residential real estate loan portfolios all experienced growth during the quarter ended June 30, 2009.
Total deposits increased $119.1 million, or 4.1%, to $3.0 billion at June 30, 2009, compared to $2.9 billion at March 31, 2009. The largest contributor to this increase was growth in core deposits of $152.0 million to $2.0 billion at June 30, 2009, up from $1.9 billion at March 31, 2009. Core deposits grew in all categories with the largest growth in municipal checking accounts, which increased 23.4% from $370.6 million at March 31, 2009, to $457.5 million at June 30, 2009.
At June 30, 2009, Beneficial's stockholders' equity equaled $620.2 million, or 14.8% of total assets, compared to stockholders' equity of $620.3 million, or 15.3% of total assets at March 31, 2009.
Asset Quality
Nonperforming loans totaled $80.5 million, or 1.9% of total assets, at June 30, 2009, compared to $38.3 million, or 0.9% of total assets at March 31, 2009. At June 30, 2009, nonperforming loans consisted of $55.4 million in commercial loans, $18.5 million in residential real estate loans and $6.6 million in consumer loans. Net charge-offs during the three-month period ended June 30, 2009 were $1.2 million, compared to $2.6 million during the three months ended March 31, 2009. The allowance for loan losses at June 30, 2009 totaled $43.2 million, or 1.6% of total loans outstanding, compared to $37.3 million, or 1.4% of total loans outstanding at March 31, 2009.
The Bank recorded a provision for loan losses of $7.1 million during the three months ended June 30, 2009, compared to a provision of $3.0 million for the quarter ended March 31, 2009. The provision for the second quarter of 2009 included $6.2 million related to specific commercial loans, with the remainder related to the ongoing evaluation of risk factors applied to the loan portfolio, reflecting the continued weakness in the economic environment during the quarter.
Net Interest Income
Beneficial's net interest income increased $0.9 million, or 3.2%, to $30.4 million for the quarter ended June 30, 2009, compared to $29.5 million for quarter ended March 31, 2009, and increased by $2.4 million, or 8.4%, compared to net interest income for the three months ended June 30, 2008.
The net interest margin increased to 3.24% for the three months ended June 30, 2009, an increase of 2 basis points from the three months ended March 31, 2009, as the decrease in interest cost exceeded the decline in the yield on interest bearing liabilities. For the quarter ended June 30, 2008, the Bank reported a net interest margin of 3.31%.
Non-interest Income
Non-interest income declined to $6.1 million for the three months ended June 30, 2009, down $1.9 million from the $8.0 million recorded for the first quarter of 2009. The decrease in non-interest income for the quarter ended June 30, 2009 was primarily due to a decrease in insurance commission income of $1.0 million and a decrease in gains on the sale of securities of $0.3 million from the quarter ended March 31, 2009. Compared to the quarter ended June 30, 2008, non-interest income rose $0.2 million or 3.5%.
Non-interest Expense
Non-interest expense was $29.8 million for the three months ended June 30, 2009, up $1.3 million, or 4.6%, from $28.4 million for the three months ended March 31, 2009. The largest factor contributing to this increase was the expense recorded for FDIC deposit insurance assessments of $2.9 million offset by decreases in other operating expenses. Compared to the quarter ended June 30, 2008, non-interest expense increased $11.1 million, or 59.6%. During the quarter ended June 30, 2008, Beneficial recorded a pension curtailment gain of $7.3 million.
About Beneficial Mutual Bancorp, Inc.
Beneficial is a community-based, diversified financial services company providing consumer and commercial banking services. Its principal subsidiary, Beneficial Bank, has served individuals and businesses in the Delaware Valley area since 1853. The Bank is the oldest and largest bank headquartered in Philadelphia, Pennsylvania, with 68 offices in the greater Philadelphia and South Jersey regions. Insurance services are offered through the Beneficial Insurance Services, LLC and wealth management services are offered through the Beneficial Advisors, LLC, both wholly owned subsidiaries of the Bank. For more information about the Bank and Beneficial, please visit www.thebeneficial.com.
Forward Looking Statements
This news release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "anticipates," "estimates" or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets, changes in deposit flows and changes in the quality or composition of Beneficial's loan or investment portfolios. Additionally, other risks and uncertainties may be described in Beneficial's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q or its other reports as filed with the Securities and Exchange Commission, which are available through the SEC's website at www.sec.gov. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, Beneficial assumes no obligation to update any forward-looking statements.
BENEFICIAL MUTUAL BANCORP, INC. AND SUBSIDIARIES | ||||||||
Unaudited Consolidated Statements of Financial Condition | ||||||||
(Dollars in thousands, except share amounts) | ||||||||
| June 30, 2009 | March 31, 2009 | December 31, 2008 | June 30, 2008 | |||||
| ASSETS: | ||||||||
| Cash and Cash Equivalents: | ||||||||
| Cash and due from banks | $41,989 | $72,996 | $44,380 | $46,373 | ||||
| Interest-bearing deposits | 237 | 250 | 9 | 238 | ||||
| Federal funds sold | - | - | - | 131 | ||||
| Total cash and cash equivalents | 42,226 | 73,246 | 44,389 | 46,742 | ||||
| Investment Securities: | ||||||||
| Available-for-sale (amortized cost of $1,044,000 and $1,017,591 at June 30, and March 31, 2009 and $1,095,252 and $1,050,513 at December 31 and June 30, 2008, respectively) | 1,066,615 | 1,041,614 | 1,114,086 | 1,041,424 | ||||
Held-to-maturity (estimated fair value of $59,733 and $65,872 at March 31 and June 30, 2009 and $77,369 and $87,311 at December 31 and June 30, 2008, respectively) | 58,086 | 64,062 | 76,014 | 88,159 | ||||
| Federal Home Loan Bank stock, at cost | 28,068 | 28,068 | 28,068 | 22,112 | ||||
| Total investment securities | 1,152,769 | 1,133,744 | 1,218,168 | 1,151,695 | ||||
| Loans: | 2,694,971 | 2,544,278 | 2,424,582 | 2,234,252 | ||||
| Allowance for loan losses | (43,235) | (37,345) | (36,905) | (22,539) | ||||
| Net loans | 2,651,736 | 2,506,933 | 2,387,677 | 2,211,713 | ||||
| Accrued Interest Receivable | 17,972 | 18,186 | 17,543 | 16,265 | ||||
| Bank Premises and Equipment, net | 77,691 | 78,328 | 78,490 | 78,192 | ||||
| Other Assets: | ||||||||
| Goodwill | 111,462 | 111,462 | 111,462 | 110,440 | ||||
| Bank owned life insurance | 31,589 | 31,216 | 30,850 | 30,117 | ||||
| Other intangibles | 22,203 | 23,094 | 23,985 | 25,799 | ||||
| Other assets | 78,163 | 73,287 | 89,486 | 76,969 | ||||
| Total other assets | 243,417 | 239,059 | 255,783 | 243,325 | ||||
| Total Assets | $4,185,811 | $4,049,496 | $4,002,050 | $3,747,932 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Non-interest bearing deposits | $ 248,487 | $243,845 | $226,382 | $228,531 | ||||
| Interest bearing deposits | 2,789,529 | 2,675,109 | 2,515,297 | 2,372,797 | ||||
| Total deposits | 3,038,016 | 2,918,954 | 2,741,679 | 2,601,328 | ||||
| Borrowed funds | 443,611 | 443,687 | 580,054 | 471,788 | ||||
| Other liabilities | 83,940 | 66,544 | 69,777 | 57,238 | ||||
| Total liabilities | 3,565,567 | 3,429,185 | 3,391,510 | 3,130,354 | ||||
Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
Preferred Stock - $.01 par value, 100,000,000 shares authorized, none issued or outstanding as of June 30 and March 31, 2009 and December 31 and June 30, 2008 | - | - | - | - | ||||
Common Stock - $.01 par value, 300,000,000 shares authorized, 82,264,457 shares issued and outstanding as of June 30 and March 31, 2009 and December 31 and June 30, 2008 | 823 | 823 | 823 | 823 | ||||
| Additional paid-in capital | 343,885 | 343,093 | 342,420 | 360,156 | ||||
| Unearned common stock held by employee stock ownership plan | (26,990) | (27,609) | (28,510) | (29,829) | ||||
| Retained earnings (partially restricted) | 301,184 | 301,234 | 296,106 | 294,723 | ||||
| Accumulated other comprehensive gain (loss), net | 3,817 | 4,618 | (299) | (8,295) | ||||
| Treasury stock, at cost, 283,204 and 211,904 shares, at June 30 and March 31, 2009 and 0 shares at December 31 and June 30, 2008 | (2,475) | (1,848) | - | - | ||||
| Total stockholders' equity | 620,244 | 620,311 | 610,540 | 617,578 | ||||
| Total Liabilities and Stockholders' Equity | $ 4,185,811 | $4,049,496 | $ 4,002,050 | $ 3,747,932 | ||||
BENEFICIAL MUTUAL BANCORP, INC. AND SUBSIDIARIES | |||||||
Unaudited Consolidated Statements of Operations | |||||||
(Dollars in thousands, except per share amounts) | |||||||
|
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||
| 2009 | 2008 | 2009 | 2008 | ||||
| INTEREST INCOME: | |||||||
| Interest and fees on loans | $33,921 | $32,698 | $67,278 | $65,193 | |||
| Interest on federal funds sold | - | 146 | 2 | 507 | |||
| Interest and dividends on investment securities: | |||||||
| Taxable | 12,389 | 14,657 | 26,002 | 29,676 | |||
| Tax-exempt | 650 | 369 | 1,206 | 736 | |||
| Total interest income | 46,960 | 47,870 | 94,488 | 96,112 | |||
| INTEREST EXPENSE: | |||||||
| Interest on deposits: | |||||||
| Interest bearing checking accounts | 2,113 | 1,235 | 4,096 | 2,521 | |||
| Money market and savings deposits | 2,703 | 3,664 | 6,154 | 7,421 | |||
| Time deposits | 7,037 | 10,082 | 14,984 | 21,228 | |||
| Total | 11,853 | 14,981 | 25,234 | 31,170 | |||
| Interest on borrowed funds | 4,691 | 4,832 | 9,359 | 9,766 | |||
| Total interest expense | 16,544 | 19,813 | 34,593 | 40,936 | |||
| Net interest income | 30,416 | 28,057 | 59,895 | 55,176 | |||
| Provision for loan losses | 7,100 | 2,300 | 10,100 | 2,600 | |||
| Net interest income after provision for loan losses | 23,316 | 25,757 | 49,795 | 52,576 | |||
| NON-INTEREST INCOME: | |||||||
| Insurance commission and related income | 1,715 | 1,876 | 4,463 | 5,141 | |||
| Service charges and other income | 3,111 | 4,388 | 6,762 | 8,330 | |||
| Impairment charge on securities available for sale | - | (473) | (1,230) | (473) | |||
| Gain on sale of investment securities available for sale | 1,316 | 143 | 4,165 | 271 | |||
| Total non-interest income | 6,142 | 5,934 | 14,160 | 13,269 | |||
| NON-INTEREST EXPENSE: | |||||||
| Salaries and employee benefits | 14,007 | 13,157 | 28,282 | 26,150 | |||
| Pension curtailment | - | (7,289) | - | (7,289) | |||
| Occupancy | 2,899 | 2,812 | 6,102 | 5,758 | |||
| Depreciation, amortization and maintenance | 2,220 | 2,047 | 4,448 | 4,022 | |||
| Advertising | 1,238 | 1,214 | 2,987 | 2,325 | |||
| Amortization of intangible | 890 | 1,654 | 1,782 | 3,400 | |||
| Other | 8,498 | 5,045 | 14,589 | 10,166 | |||
| Total non-interest expense | 29,752 | 18,640 | 58,190 | 44,532 | |||
| (Loss) Income before income taxes | (294) | 13,051 | 5,765 | 21,313 | |||
| Income tax (benefit) expense | (244) | 3,950 | 687 | 6,150 | |||
| NET (LOSS) INCOME | $ (50) | $9,101 | $ 5,078 | $15,163 | |||
| (LOSS) EARNINGS PER SHARE - Basic | $ 0.00 | $0.11 | $0.07 | $ 0.19 | |||
| (LOSS) EARNINGS PER SHARE - Diluted | $ 0.00 | $0.06 | $ 0.07 | $ 0.19 | |||
| Average common shares outstanding - Basic | 77,678,961 | 79,255,114 | 77,717,407 | 79,235,030 | |||
| Average common shares outstanding - Diluted | 77,678,961 | 79,255,114 | 77,726,194 | 79,235,030 | |||
BENEFICIAL MUTUAL BANCORP, INC. AND SUBSIDIARIES | |||||||
Selected Consolidated Financial and Other Data of the Company (Unaudited) | |||||||
(Dollars in thousands) | |||||||
| June 30, 2009 | March 31 2009 | December 31, 2008 | June 30, 2008 | ||||
| ASSET QUALITY INDICATORS: | |||||||
| Non-performing assets: | |||||||
| Non-accruing loans | $53,557 | $20,706 | $17,163 | $3,406 | |||
| Accruing loans past due 90 days or more | 26,935 | 17,550 | 20,883 | 12,284 | |||
| Total non-performing loans | 80,492 | 38,256 | 38,046 | 15,690 | |||
| Troubled debt restructurings | 17,888 | 16,467 | 16,442 | - | |||
| Real estate owned | 7,306 | 6,316 | 6,297 | 7,439 | |||
| Total non-performing assets | $105,686 | $61,039 | $60,785 | $23,129 | |||
| Non-performing loans to total loans | 2.99% | 1.50% | 1.57% | 0.70% | |||
| Non-performing loans to total assets | 1.92% | 0.94% | 0.95% | 0.42% | |||
| Non-performing assets to total assets | 2.52% | 1.51% | 1.52% | 0.62% | |||
|
Non-performing assets less accruing loans
Past due 90 days or more to total assets | 1.88% | 1.07% | 1.00% | 0.29% | |||
For the Three Months | For the Six Months | ||||||
| 2009 | 2008 | 2009 | 2008 | ||||
| PERFORMANCE RATIOS: | |||||||
| (annualized) | |||||||
| Return on average assets | (0.00%) | 0.98% | 0.22% | 0.82% | |||
| Return on average equity | (0.03%) | 5.98% | 1.47% | 4.91% | |||
| Net interest margin | 3.24% | 3.31% | 3.23% | 3.31% | |||
SOURCE: Beneficial Mutual Bancorp, Inc.
Beneficial Mutual Bancorp, Inc.
Joseph F. Conners, 215-864-6000
Executive Vice President and Chief Financial Officer
Copyright Business Wire 2009