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
Date of Report (Date of earliest event reported): October 28, 2009
United States 1-33476 56-2480744
------------- ------- ----------
(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification No.)
|
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 October 28, 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 September 30, 2009. For more information, reference is made to the Company's press release dated October 28, 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 October 28, 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: October 28, 2009 By: /s/ Joseph F. Conners
----------------------------------
Joseph F. Conners
Executive Vice President and Chief
Financial Officer
|
FOR IMMEDIATE RELEASE
DATE: October 28, 2009
CONTACT: Joseph F. Conners
Executive Vice President and Chief Financial Officer
PHONE: (215) 864-6000
BENEFICIAL MUTUAL BANCORP, INC. ANNOUNCES THIRD QUARTER 2009 RESULTS
PHILADELPHIA, PENNSYLVANIA, October 28, 2009 -- Beneficial Mutual Bancorp, Inc. ("Beneficial") (NASDAQGS: BNCL), the parent company of Beneficial Bank (the "Bank"), today announced its financial results for the three and nine months ended September 30, 2009.
For the three months ended September 30, 2009, Beneficial recorded net income of $5.8 million, or $0.07 per share, compared to net loss of $50 thousand, or $0.00 per share for the three months ended June 30, 2009. The increase in earnings resulted primarily from an increase of $2.3 million in net interest income and a reduction in the provision for loan losses of $5.1 million, partially offset by an impairment charge of $1.0 million recorded as a result of an evaluation of goodwill and other intangible assets related to the Company's insurance brokerage subsidiary. During the nine months ended September 30, 2009, Beneficial recorded earnings of $10.9 million, or $0.14 per share. For the nine-month period ended September 30, 2008, which included a pre-tax curtailment gain of $7.3 million related to pension plan modifications, Beneficial earned $19.5 million, or $0.25 per share.
"We are pleased to report positive earnings for the quarter, and are particularly focused on growing the core components of our business," said Gerard Cuddy, Beneficial's President and CEO. "Deposit and loan balances continued to expand during the quarter while our net interest margin increased to 3.39%. Our relationship-based core deposits now constitute 70% of total deposits, up from 60% at September 30, 2008. Credit quality challenges continue. While our quarterly loan loss provision declined during the quarter, we believe that credit costs will remain elevated due to continued economic weakness. We remain confident in our strong balance sheet, sound capital position, improving operating performance and the commitment of our employees to help our customers do the right thing financially."
Highlights for the quarter included:
o Deposits increased by $244.2 million, or 8.0%, to $3.3 billion at September 30, 2009, up from $3.0 billion at June 30, 2009.
o Total loans outstanding increased $56.0 million during the quarter ended September 30, 2009 to $2.8 billion from $2.7 billion at June 30, 2009.
o Net interest income for the three months ended September 30, 2009 increased to $32.7 million from $30.4 million for the three months ended June 30, 2009, an increase of $2.3 million or 7.4%.
o The provision for loan losses decreased $5.1 million for the three months ended September 30, 2009 to $2.0 million, down from $7.1 million for the three months ended June 30, 2009.
o A non-cash impairment charge of $1.0 million was recorded during the quarter ended September 30, 2009 as a result of an evaluation of goodwill and other intangible assets related to the Company's insurance brokerage subsidiary.
Total assets increased $259.3 million, or 6.2%, from $4.2 billion at June 30, 2009, to $4.4 billion at September 30, 2009. The increase in total assets was primarily due to an increase in cash and cash equivalents of $106.2 million, an increase in investment securities of $92.7 million and an increase in total loans outstanding of $56.0 million. Both commercial and residential real estate loan portfolios experienced growth during the quarter ended September 30, 2009.
Total deposits increased $244.2 million, or 8.0%, to $3.3 billion at September 30, 2009, compared to $3.0 billion at June 30, 2009. Core deposits, including savings, money market and checking account balances, grew by $265.8 million to $2.3 billion at September 30, 2009, up from $2.0 billion at June 30, 2009. The strongest growth was in municipal checking account balances, which increased 44.3% from $457.5 million at June 30, 2009 to $659.9 million at September 30, 2009. Time deposits declined $12.7 million from June 30, 2009 to $963.3 million at September 30, 2009.
At September 30, 2009, Beneficial's stockholders' equity equaled $635.3 million, or 14.3% of total assets, compared to stockholders' equity of $620.2 million, or 14.8% of total assets at June 30, 2009.
Non-performing loans totaled $120.7 million, or 2.7% of total assets, at September 30, 2009, compared to $80.5 million, or 1.9% of total assets, at June 30, 2009. At September 30, 2009, non-performing loans consisted of $76.7 million in commercial loans, $22.5 million in residential real estate loans and $21.5 million in consumer loans. Of the total non-performing consumer loans, $21.1 million, or 98.1%, are government guaranteed student loans. Net charge-offs during the three-month period ended September 30, 2009 were $2.5 million, compared to $1.2 million during the three months ended June 30, 2009. The allowance for loan losses at September 30, 2009 totaled $42.7 million, or 1.6% of total loans outstanding, compared to $43.2 million, or 1.6% of total loans outstanding, at June 30, 2009.
The Bank recorded a provision for loan losses of $2.0 million during the three months ended September 30, 2009, compared to a provision of $7.1 million for the quarter ended June 30, 2009. The provision includes $0.5 million related to specific commercial loans, with the remainder related to portfolio growth and the ongoing evaluation of risk factors applied to the loan portfolio, reflecting the continued weakness in the economic environment during the quarter.
Beneficial's net interest income increased $2.3 million, or 7.4%, to $32.7 million for the quarter ended September 30, 2009, compared to $30.4 million for quarter ended June 30, 2009, and increased by $3.6 million, or 12.3%, compared to net interest income for the three months ended September 30, 2008.
The net interest margin increased to 3.39% for the three months ended September 30, 2009, an increase of 15 basis points from the three months ended June 30, 2009, as a result of an increase in interest income of $1.5 million and a decrease of $0.8 million in interest expense. The Bank has continued to improve
its mix of deposits. At September 30, 2009, core deposits comprised 70.7% of total deposits, with time deposits representing 29.3% of total deposits.
Non-interest income increased to $6.5 million for the three months ended September 30, 2009, up $0.4 million from the $6.1 million recorded for the second quarter of 2009. The increase in non-interest income resulted primarily from an increase in service charges and other income. During the quarter ended September 30, 2009, the Company recorded a charge of $0.5 million in other real estate owned relating to a decline in property value.
Non-interest expense was $30.5 million for the three months ended September 30, 2009, up $0.7 million, or 2.6%, from $29.8 million for the three months ended June 30, 2009. The largest factor contributing to this increase was the $1.0 million non-cash impairment charge related to goodwill associated with the Bank's wholly owned insurance subsidiary, Beneficial Insurance Services, LLC. Formed to facilitate the 2005 asset purchase of its foundation insurance agency, the subsidiary subsequently acquired an additional agency in 2007. This non-cash charge was the consequence of deterioration in general conditions in the economy, and its impact on insurance premiums. Beneficial does not anticipate any similar charges in future quarters.
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.
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)
SEPTEMBER 30, JUNE 30, DECEMBER 31, SEPTEMBER 30,
2009 2009 2008 2008
------------- ------------- ------------ -------------
ASSETS:
Cash and Cash Equivalents:
Cash and due from banks $ 147,975 $ 41,989 $ 44,380 $ 47,674
Interest-bearing deposits 423 237 9 11,902
Federal funds sold - - - 2,250
------------- ------------- ------------ -------------
Total cash and cash equivalents 148,398 42,226 44,389 61,826
Investment Securities:
Available-for-sale (amortized cost of
$1,129,150 and $1,044,000 at
September 30, and June 30, 2009 and
$1,095,252 and $1,032,592 at December
31 and September 30, 2008, respectively) 1,165,253 1,066,615 1,114,086 1,024,390
Held-to-maturity (estimated fair value
of $54,479 and $59,733 at September 30
and June 30, 2009 and $77,369 and
$83,963 at December 31 and September 30,
respectively) 52,176 58,086 76,014 84,401
Federal Home Loan Bank stock, at cost 28,068 28,068 28,068 27,872
------------- ------------- ------------ -------------
Total investment securities 1,245,497 1,152,769 1,218,168 1,136,663
------------- ------------- ------------ -------------
Loans: 2,750,949 2,694,971 2,424,582 2,323,280
Allowance for loan losses (42,742) (43,235) (36,905) (25,208)
------------- ------------- ------------ -------------
Net loans 2,708,207 2,651,736 2,387,677 2,298,072
Accrued Interest Receivable 19,264 17,972 17,543 17,506
Bank Premises and Equipment, net 77,402 77,691 78,490 77,724
Other Assets:
Goodwill 110,486 111,462 111,462 110,436
Bank owned life insurance 31,971 31,589 30,850 30,481
Other intangibles 21,311 22,203 23,985 24,893
Other assets 82,531 78,163 89,486 85,369
------------- ------------- ------------ -------------
Total other assets 246,299 243,417 255,783 251,179
------------- ------------- ------------ -------------
Total Assets $4,445,067 $4,185,811 $4,002,050 $3,842,970
============= ============= ============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Liabilities:
Deposits:
Non-interest bearing deposits $ 230,856 $ 248,487 $ 226,382 $ 226,303
Interest bearing deposits 3,051,369 2,789,529 2,515,297 2,408,850
------------- ------------- ------------ -------------
Total deposits 3,282,225 3,038,016 2,741,679 2,635,153
Borrowed funds 443,616 443,611 580,054 535,896
Other liabilities 83,957 83,940 69,777 64,981
------------- ------------- ------------ -------------
Total liabilities 3,809,798 3,565,567 3,391,510 3,236,030
------------- ------------- ------------ -------------
Commitments and Contingencies
Stockholders' Equity:
Preferred Stock - $.01 par value,
100,000,000 shares authorized, none
issued or outstanding as of September
30 and June 30, 2009 and December 31
and September 30, 2008 - - - -
Common Stock - $.01 par value, 300,000,000
shares authorized, 82,264,457 shares
issued and outstanding as of September 30
and June 30, 2009 and December 31 and
September 30, 2008 823 823 823 823
Additional paid-in capital 344,663 343,885 342,420 343,765
Unearned common stock held by
employee stock ownership plan (26,385) (26,990) (28,510) (29,013)
Retained earnings (partially restricted) 307,004 301,184 296,106 299,044
Accumulated other comprehensive gain
(loss), net 12,760 3,817 (299) (7,679)
Treasury stock, at cost, 410,904 and
283,204 shares, at September 30 and
June 30, 2009 and 0 shares at December
31 and September 30, 2008 (3,596) (2,475) - -
------------- ------------- ------------ -------------
Total stockholders' equity 635,269 620,244 610,540 606,940
------------- ------------- ------------ -------------
Total Liabilities and Stockholders' Equity $4,445,067 $4,185,811 $4,002,050 $3,842,970
============= ============= ============ =============
|
BENEFICIAL MUTUAL BANCORP, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
INTEREST INCOME:
Interest and fees on loans $ 36,244 $ 33,564 $ 103,522 $ 98,756
Interest on federal funds sold - 14 2 522
Interest and dividends on investment securities:
Taxable 11,293 14,074 37,294 43,751
Tax-exempt 902 428 2,108 1,164
---------- ---------- ---------- ----------
Total interest income 48,439 48,080 142,926 144,193
---------- ---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits:
Interest bearing checking accounts 2,319 1,410 6,415 3,931
Money market and savings deposits 2,515 3,856 8,669 11,277
Time deposits 6,176 8,748 21,160 29,976
---------- ---------- ---------- ----------
Total 11,010 14,014 36,244 45,184
Interest on borrowed funds 4,749 4,975 14,108 14,741
---------- ---------- ---------- ----------
Total interest expense 15,759 18,989 50,352 59,925
---------- ---------- ---------- ----------
Net interest income 32,680 29,091 92,574 84,268
Provision for loan losses 2,000 3,191 12,100 5,791
---------- ---------- ---------- ----------
Net interest income after provision for loan losses 30,680 25,900 80,474 78,477
---------- ---------- ---------- ----------
NON-INTEREST INCOME:
Insurance commission and related income 1,818 2,738 6,281 7,879
Service charges and other income 3,456 3,827 10,217 12,157
Impairment charge on securities available for sale (195) (264) (1,425) (737)
Gain on sale of investment securities available for sale 1,383 159 5,548 430
---------- ---------- ---------- ----------
Total non-interest income 6,462 6,460 20,621 19,729
---------- ---------- ---------- ----------
NON-INTEREST EXPENSE:
Salaries and employee benefits 14,583 13,933 42,865 40,083
Pension curtailment - - - (7,289)
Occupancy 2,970 3,070 9,072 8,827
Depreciation, amortization and maintenance 2,277 2,096 6,724 6,118
Advertising 1,138 1,220 4,124 3,545
Amortization of intangible 892 906 2,674 4,306
Impairment of goodwill 976 - 976 -
Other 7,686 5,414 22,275 15,582
---------- ---------- ---------- ----------
Total non-interest expense 30,522 26,639 88,710 71,172
---------- ---------- ---------- ----------
Income before income taxes 6,620 5,721 12,385 27,034
---------- ---------- ---------- ----------
Income tax expense 800 1,400 1,487 7,550
---------- ---------- ---------- ----------
NET INCOME $ 5,820 $ 4,321 $ 10,898 $ 19,484
---------- ---------- ---------- ----------
EARNINGS PER SHARE - Basic $ 0.07 $ 0.05 $ 0.14 $ 0.25
EARNINGS PER SHARE - Diluted $ 0.07 $ 0.05 $ 0.14 $ 0.25
Average common shares outstanding - Basic 77,651,098 78,566,856 77,695,061 79,010,679
Average common shares outstanding - Diluted 77,675,526 78,573,633 77,707,151 79,010,679
|
BENEFICIAL MUTUAL BANCORP, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY
(UNAUDITED)
(DOLLARS IN THOUSANDS)
SEPTEMBER 30, JUNE 30, DECEMBER 31, SEPTEMBER 30,
2009 2009 2008 2008
------------- ------------- ------------ -------------
ASSET QUALITY INDICATORS:
Non-performing assets:
Non-accruing loans $ 73,692 $ 53,557 $ 17,163 $ 13,342
Accruing loans past due 90 days or more 46,996 26,935 20,883 15,023
------------- ------------- ------------ -------------
Total non-performing loans 120,688 80,492 38,046 28,365
Troubled debt restructurings 14,247 17,888 16,442 -
Real estate owned 8,194 7,306 6,297 7,355
------------- ------------- ------------ -------------
Total non-performing assets $143,129 $105,686 $ 60,785 $ 35,720
============= ============= ============ =============
Non-performing loans to total loans 4.39% 2.99% 1.57% 1.22%
Non-performing loans to total assets 2.72% 1.92% 0.95% 0.74%
Non-performing assets to total assets 3.22% 2.52% 1.52% 0.93%
Non-performing assets less accruing loans
past due 90 days or more to total assets 2.16% 1.88% 1.00% 0.54%
|
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2009 2008 2009 2008
-------- --------- --------- --------
PERFORMANCE RATIOS:
(ANNUALIZED)
Return on average assets 0.53% 0.46% 0.35% 0.70%
Return on average equity 3.69% 2.82% 2.36% 4.22%
Net interest margin 3.39% 3.41% 3.27% 3.34%
|