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
United States 1-33476 56-2480744
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(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification No.)
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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))
On April 29, 2009, Beneficial Mutual Bancorp, Inc. (the "Company"), the holding company for Beneficial Bank, issued a press release announcing its financial results for the quarter ended March 31, 2009. For more information, reference is made to the Company's press release dated April 29, 2009, a copy of which is attached to this Report as Exhibit 99.1 and is furnished herewith.
(d) Exhibits
Number Description ------ ----------- 99.1 Press Release dated April 29, 2009 |
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.
BENEFICIAL MUTUAL BANCORP, INC.
Date: April 30, 2009 By: /s/ Joseph F. Conners
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Joseph F. Conners
Executive Vice President and Chief Financial
Officer
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FOR IMMEDIATE RELEASE
DATE: April 29, 2009
CONTACT: Joseph F. Conners
Executive Vice President and Chief Financial Officer
PHONE: (215) 864-6000
BENEFICIAL MUTUAL BANCORP, INC. ANNOUNCES FIRST QUARTER 2009 RESULTS
PHILADELPHIA, PENNSYLVANIA, April 29, 2009 -- Beneficial Mutual Bancorp, Inc. (Beneficial) (NASDAQGS: BNCL), the parent company of Beneficial Bank, today announced its financial results for the first quarter of 2009.
Net income for the three months ended March 31, 2009 was $5.1 million, a decrease of $1.0 million from the $6.1 million earned in the first quarter of 2008, and an increase of $8.1 million from the net loss of $2.9 million recorded in the fourth quarter of 2008. Earnings per share for the first quarter of 2009 were $0.07, compared to earnings of $0.08 per share in the quarter ended March 31, 2008, and a loss of $0.04 per share for the quarter ended December 31, 2008.
"Given the economic crises and challenging operating environment, we are encouraged by our earnings performance and remain committed to continued improvement," said Gerard Cuddy, Beneficial's President and CEO. "For 156 years we've helped our customers do the right thing financially. In the first quarter of 2009, that has resulted in increased core deposits, loan growth, and positive momentum in our insurance and wealth management businesses. We are increasing our customer count because we are actively welcoming customers from distressed and distracted competitors. Our capital position is strong. We did not apply for the government's TARP funding because we didn't need it, and we didn't want it. Finally, our outstanding employees continue to inspire confidence as they remain focused on achieving our strategic goals."
Highlights for the quarter included:
o Deposits increased by $177.3 million, or 6.5%, to $2.9 billion at March 31, 2009, up from $2.7 billion at December 31, 2008.
o Total loans outstanding grew during the quarter ended March 31, 2009, to $2.5 billion, up from $2.4 billion at December 31, 2008.
o Non-interest income increased $4.1 million, or 106.9%, to $8.0 million during the first quarter of 2009, from $3.9 million during the three months ended December 31, 2008. This rise included increases in insurance commission income and gains on the sale of available-for-sale investment securities, along with a reduced impairment charge related to the value of common equity securities deemed to be other than temporarily impaired.
Total assets increased $47.4 million, or 1.2% from December 31, 2008, to $4.0 billion at March 31, 2009. The increase in total assets was primarily due to an increase in cash and cash equivalents of $28.9 million and an increase in total loans outstanding of $119.7 million, partially offset by a decrease of $84.4 million in investment securities during the first quarter of 2009.
Total deposits increased $177.3 million, or 6.5%, to $2.9 billion at March 31, 2009 compared to $2.7 billion at December 31, 2008. The largest contributor to this increase was growth in core deposits of $200.0 million to $1.9 billion at March 31, 2009 from $1.7 billion at December 31, 2008. Both interest bearing and non-interest bearing deposits grew during the first quarter of 2009.
At March 31, 2009, Beneficial's stockholders' equity equaled $620.3 million, or 15.3% of total assets, compared to stockholders' equity of $610.5 million, or 15.3% of total assets at December 31, 2008. The increase in stockholders' equity resulted primarily from earnings and a rise in accumulated other comprehensive income of $4.2 million related to an increase in unrealized gains in available-for-sale securities.
Nonperforming loans totaled $38.3 million, or 0.94% of total assets at March 31, 2009, compared to $38.0 million, or 0.95% of total assets at December 31, 2008. Net charge-offs during the three month period ended March 31, 2009 were $2.6 million, compared to $1.4 million during the three months ended December 31, 2008. The allowance for loan losses at March 31, 2009 totaled $37.3 million, or 1.46%, of total loans outstanding, compared to $36.9 million, or 1.52% of total loans outstanding, at December 31, 2008.
The increase in net charge-offs resulted primarily from the charge-off of several loans to a single borrower totaling $1.5 million. The full outstanding balance of these loans was reserved for in the fourth quarter of 2008. The Bank recorded a provision for loan losses of $3.0 million during the three months ended March 31, 2009, compared to a provision of $13.1 million for the quarter ended December 31, 2008. The provision for previous quarter included $5.7 million related to one shared national credit and $5.4 related to the ongoing evaluation of risk factors applied to the loan portfolio, reflecting the rapid deterioration in the economic environment during the quarter ended December 31, 2008.
Beneficial's net interest income increased $2.4 million, or 8.7%, to $29.5 million for the three months ended March 31, 2009, compared to $27.1 million for the same period in 2008, and decreased by $0.3 million, or 0.9% from the three months ended December 31, 2008. The net interest margin declined to 3.22% for the three months ended March 31, 2009, a decrease of 6 basis points from the same period in 2008, and a decrease of 12 basis points from the quarter ended December 31, 2008. These declines are primarily due to a decline in interest income which exceeded the decline in interest expense.
Non-interest income rose to $8.0 million for the three months ended March 31, 2009, up $0.7 million from the $7.3 million recorded for the first quarter of 2008, and $4.1 million from the $3.9 million recorded for the quarter ended December 31, 2008. The increase in non-interest income from the fourth quarter of 2008 was primarily due to growth in insurance commission revenue and a gain on the sale of available-for-sale securities of $2.8 million during the quarter, partially offset by an impairment charge recorded for certain common equity securities of $1.2 million.
Non-interest expense was $28.4 million for the three months ended March 31, 2009, up $2.5 million, or 9.8%, from $25.9 million for quarter ended March 31, 2008. The increase in non-interest expense resulted primarily from an increase in salaries and employee benefits of $1.3 million and an increase in expense related to advertising. Compared to the quarter ended December 31, 2008, non-interest expense increased $1.3 million, or 4.8% during the first quarter of 2009.
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 72 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.
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)
MARCH 31, DECEMBER 31, MARCH 31,
2009 2008 2008
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ASSETS:
Cash and Cash Equivalents:
Cash and due from banks $ 72,996 $ 44,380 $ 46,061
Interest-bearing deposits 250 9 4,650
Federal funds sold -- -- --
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Total cash and cash equivalents 73,246 44,389 50,711
Investment Securities:
Available-for-sale (amortized cost of $1,017,591, $1,095,252 and
$1,053,659 at March 31, 2009, December 31 and March 31, 2008,
respectively) 1,041,614 1,114,086 1,062,297
Held-to-maturity (estimated fair value of $65,872, $77,369 and
$93,412 at March 31, 2009, December 31 and March 31, 2008,
respectively) 64,062 76,014 92,903
Federal Home Loan Bank stock, at cost 28,068 28,068 23,086
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Total investment securities 1,133,744 1,218,168 1,178,286
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Loans: 2,544,278 2,424,582 2,156,313
Allowance for loan losses (37,345) (36,905) (20,580)
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Net loans 2,506,933 2,387,677 2,135,733
Accrued Interest Receivable 18,186 17,543 17,224
Bank Premises and Equipment, net 78,328 78,490 77,602
Other Assets:
Goodwill 111,462 111,462 110,214
Bank owned life insurance 31,216 30,850 29,758
Other intangibles 23,094 23,985 27,452
Other assets 73,287 89,486 71,729
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Total other assets 239,059 255,783 239,153
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Total Assets $ 4,049,496 $ 4,002,050 $ 3,698,709
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Deposits:
Non-interest bearing deposits $ 243,845 $ 226,382 $ 243,179
Interest bearing deposits 2,675,109 2,515,297 2,311,199
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Total deposits 2,918,954 2,741,679 2,554,378
Borrowed funds 443,687 580,054 461,080
Other liabilities 66,544 69,777 69,454
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Total liabilities 3,429,185 3,391,510 3,084,912
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Commitments and Contingencies
Stockholders' Equity:
Preferred Stock - $.01 par value, 100,000,000 shares authorized, none
issued or outstanding as of March 31, 2009, December 31 and March 31,
2008 -- -- --
Common Stock - $.01 par value, 300,000,000 shares authorized, 82,264,457
shares issued and outstanding as of March 31, 2009 and December 31 and
March 31, 2008 823 823 823
Additional paid-in capital 343,093 342,420 360,108
Unearned common stock held by employee stock ownership plan (27,609) (28,510) (30,232)
Retained earnings (partially restricted) 301,234 296,106 285,621
Accumulated other comprehensive gain (loss), net 4,618 (299) (2,523)
Treasury stock, at cost, 211,904 shares, at March 31, 2009 and 0
shares at December 31 and March 31, 2008 (1,848) -- --
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Total stockholders' equity 620,311 610,540 613,797
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Total Liabilities and Stockholders' Equity $ 4,049,496 $ 4,002,050 $ 3,698,709
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BENEFICIAL MUTUAL BANCORP, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FOR THE THREE MONTHS ENDED
MARCH 31, DECEMBER 31, MARCH 31,
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2009 2008 2008
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INTEREST INCOME:
Interest and fees on loans $ 33,357 $ 33,890 $ 32,495
Interest on federal funds sold 2 1 361
Interest and dividends on investment securities:
Taxable 13,613 14,303 15,019
Tax-exempt 556 540 367
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Total interest income 47,528 48,734 48,242
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INTEREST EXPENSE:
Interest on deposits:
Interest bearing checking accounts 1,984 1,560 1,286
Money market and savings deposits 3,451 3,772 3,758
Time deposits 7,946 8,627 11,146
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Total 13,381 13,959 16,190
Interest on borrowed funds 4,668 5,032 4,934
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Total interest expense 18,049 18,991 21,124
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Net interest income 29,479 29,743 27,118
Provision for loan losses 3,000 13,110 300
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Net Interest Income After Provision for Loan Losses 26,479 16,633 26,818
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NON-INTEREST INCOME:
Insurance commission and related income 2,748 2,212 3,265
Service charges and other income 3,652 3,816 3,942
Impairment charge on securities available for sale (1,230) (2,479) --
Gain on sale of investment securities available for sale 2,848 327 128
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Total non-interest income 8,018 3,876 7,335
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NON-INTEREST EXPENSE:
Salaries and employee benefits 14,275 12,601 12,992
Occupancy 3,203 2,866 2,946
Depreciation, amortization and maintenance 2,227 2,107 1,975
Advertising 1,749 2,754 1,111
Amortization of intangible 892 907 1,747
Other 6,092 5,897 5,121
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Total non-interest expense 28,438 27,132 25,892
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Income (Loss) before income taxes 6,059 (6,623) 8,261
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Income tax expense (benefit) 931 (3,685) 2,200
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NET INCOME (LOSS) $ 5,128 $ (2,938) $ 6,061
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EARNINGS (LOSS) PER SHARE - Basic $ 0.07 $ (0.04) $ 0.08
EARNINGS (LOSS) PER SHARE - Diluted $ 0.07 $ (0.04) $ 0.08
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Average common shares outstanding - Basic 77,756,281 77,778,319 79,214,946
Average common shares outstanding - Diluted 77,797,091 77,778,319 79,214,946
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BENEFICIAL MUTUAL BANCORP, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY (UNAUDITED)
(DOLLARS IN THOUSANDS)
MARCH 31, DECEMBER 31, MARCH 31,
2009 2008 2008
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ASSET QUALITY INDICATORS:
Non-performing assets:
Non-accruing loans $ 20,706 $ 17,163 $ 2,573
Accruing loans past due 90 days or more 17,550 20,883 10,918
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Total non-performing loans 38,256 38,046 13,491
Troubled debt restructurings 16,467 16,442 --
Real estate owned 6,316 6,297 5,561
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Total non-performing assets $ 61,039 $ 60,785 $ 19,052
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Non-performing loans to total loans 1.50% 1.57% 0.63%
Non-performing loans to total assets 0.94% 0.95% 0.36%
Non-performing assets to total assets 1.51% 1.52% 0.52%
Non-performing assets less accruing loans
Past due 90 days or more to total assets 1.07% 1.00% 0.22%
FOR THE THREE MONTHS ENDED
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MARCH 31, DECEMBER 31, MARCH 31,
2009 2008 2008
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PERFORMANCE RATIOS:
(ANNUALIZED)
Return on average assets 0.52% (0.30%) 0.66%
Return on average equity 3.39% (1.93%) 3.89%
Net interest margin 3.22% 3.34% 3.28%
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