Beneficial Bancorp, Inc. (“Beneficial” or the “Company”) (NASDAQ
GS: BNCL), the parent company of Beneficial Bank (the “Bank”),
today announced its financial results for the quarter and year
ended December 31, 2018. Beneficial recorded net income of
$13.7 million and $47.8 million, or $0.19 and $0.65 per diluted
share, for the quarter and year ended December 31, 2018,
respectively, compared to a net loss of $3.3 million and net income
of $23.9 million, or ($0.05) and $0.32 per diluted share, for the
quarter and year ended December 31, 2017. Net income for the
quarter and year ended December 31, 2017 included a one- time $13.1
million charge, or $0.18 per diluted share, of additional income
tax expense related to the enactment of the Tax Cuts and Jobs Act
and its impact on the re-measurement of our net deferred tax assets
due to the reduction in the corporate income tax rate for 2018 to
21% from 35%.
On January 31, 2019, the Company declared a cash
dividend of 6 cents per common share, payable on or after February
21, 2019, to common shareholders of record at the close of business
on February 11, 2019.
Highlights for the quarter and year ended
December 31, 2018 are as follows:
- Net interest margin totaled 3.38% and 3.29% for the quarter and
year ended December 31, 2018 compared to 3.28% and 3.12% for the
same periods in 2017, respectively. During the quarter and
year ended December 31, 2018, the net interest margin was
positively impacted 15 and 9 basis points, respectively, by loan
prepayment income compared to 23 and 7 basis points for the same
periods in 2017.
- Net interest income increased $2.1 million, or 4.7%, and $10.5
million, or 6.2%, for the quarter and year ended December 31, 2018
compared to the same periods in the prior year.
- During the year ended December 31, 2018, Beneficial recorded a
$3.3 million net gain on the sale of the assets and liabilities of
Beneficial Insurance Services, LLC, a former consolidated wholly
owned subsidiary of Beneficial Bank.
- Non-interest expense for the quarter and year ended December
31, 2018 includes $848 thousand and $3.1 million, respectively, of
professional fees associated with the pending merger of Beneficial
with WSFS Financial Corporation.
- Our non-performing assets to total assets ratio decreased to
0.52% at December 31, 2018 compared to 0.60% at December 31, 2017.
Non-performing assets decreased $4.4 million to $30.5 million at
December 31, 2018 from $34.9 million at December 31, 2017, which
was primarily due to the sale of one large commercial
non-performing loan totaling $7.6 million during 2018.
- Asset quality metrics continued to remain strong with
non-performing assets to total assets, excluding government
guaranteed student loans, of 0.38% as of December 31, 2018.
Our allowance for loan losses totaled $43.3 million, or 1.11% of
total loans, as of December 31, 2018, compared to $43.3 million, or
1.07% of total loans, as of December 31, 2017.
- Our effective tax rate decreased to 28.6% and 25.5% for the
quarter and year ended December 31, 2018, respectively, compared to
121.3% and 57.8% for the same periods in the prior year. The
decrease in income tax expense and the effective tax rate for the
quarter and year ended December 31, 2018 compared to the same
periods in 2017 is primarily due to the previously discussed $13.1
million of additional income tax expense recorded during the
quarter ended December 31, 2017 related to the passage of the Tax
Cuts and Jobs Act, enacted on December 22, 2017, which lowered the
federal corporate tax rate for 2018 to 21% from 35%.
- During the year ended December 31, 2018, the Company purchased
945,400 shares under its previously announced stock repurchase
plan. Our tangible capital to tangible assets ratio increased
to 15.75% at December 31, 2018 compared to 15.33% at December 31,
2017. Tangible book value per share totaled $11.89 at
December 31, 2018.
Balance SheetTotal assets were $5.81 billion at
December 31, 2018 consistent with the $5.80 billion of total assets
at December 31, 2017.
Cash and cash equivalents increased $294.9
million, or 52.9%, to $852.5 million at December 31, 2018, from
$557.6 million at December 31, 2017. The increase in cash and
cash equivalents was primarily driven by investment maturities and
repayments and a decrease in our total loan portfolio.
Investments
decreased $137.4 million, or 15.8%, to $733.4 million at December
31, 2018, compared to $870.8 million at December 31, 2017. We
continue to focus on maintaining a high-quality investment
portfolio that provides a steady stream of cash flows both in the
current and in rising interest rate environments.
Loans decreased $139.5 million, or 3.5%, to
$3.89 billion at December 31, 2018, from $4.03 billion at December
31, 2017. During the year ended December 31, 2018, our
residential real estate portfolio increased $25.3 million, or
2.7%. However, this growth was offset by a $54.7 million
decrease in our total commercial portfolio and an $110.1 million
decrease in our total consumer loan portfolio. We continue to
experience a number of large commercial loan payoffs as projects
are completed and sold and financing is obtained from non-bank
sources. The decrease in our consumer loan portfolio was due
primarily to a $63.1 million decrease in indirect auto loans
resulting from our planned run-off of this portfolio segment.
As previously disclosed, we decided to exit the indirect auto
lending business in the first quarter of 2017.
Deposits increased $22.1 million, or 0.5%, to
$4.17 billion at December 31, 2018, from $4.15 billion at December
31, 2017. Deposit growth was primarily achieved through
organic core deposit growth of $86.7 million in interest business
checking accounts and $44.9 million of growth in time deposits,
partially offset by the maturity of $75.4 million of higher cost
brokered certificates of deposit, which we did not renew given our
excess liquidity position. The growth in interest business
checking accounts is primarily due to one large commercial deposit
account.
Borrowings decreased $25.4 million to $515.0
million at December 31, 2018. During the year ended December
31, 2018, the Company paid off $25.8 million of a higher cost trust
preferred debenture.
Stockholders’ equity increased $15.7 million, or
1.5%, to $1.05 billion at December 31, 2018, from $1.03 billion at
December 31, 2017. The increase in stockholders’ equity was
primarily due to $47.8 million of net income during the year ended
December 31, 2018, partially offset by the declaration of cash
dividends and stock repurchases.
Net Interest Income For the quarter ended
December 31, 2018, net interest income was $47.1 million, an
increase of $2.1 million, or 4.7%, from the quarter ended December
31, 2017. The increase in net interest income was primarily due to
an increase in yields on the investment and loan portfolios
following recent Federal Reserve Bank federal funds rate increases.
The Company also paid off $25.8 million of a higher cost trust
preferred debenture during the first quarter of 2018. The net
interest margin totaled 3.38% for the quarter ended December 31,
2018 as compared to 3.28% for the same period in 2017. During
the quarter ended December 31, 2018, the net interest margin was
positively impacted by 15 basis points due to loan prepayments
compared to a 23 basis points positive impact during the quarter
ended December 31, 2017.
For the year ended December 31, 2018, Beneficial
reported net interest income of $180.4 million, an increase of
$10.5 million, or 6.2%, from the year ended December 31, 2017. The
increase in net interest income was primarily due to an increase in
yields on the investment and loan portfolios following recent
Federal Reserve Bank federal funds rate increases. Our net
interest margin increased to 3.29% for the year ended December 31,
2018, from 3.12% for 2017. During the year ended December 31,
2018, the net interest margin was positively impacted by nine basis
points due to loan prepayments compared to a seven basis points
positive impact during the year ended December 31, 2017.
Non-interest IncomeFor the quarter ended
December 31, 2018, non-interest income totaled $4.9 million, a
decrease of $2.2 million, or 31.0%, from the quarter ended December
31, 2017. The decrease was primarily due to the sale of the
assets and liabilities of Beneficial Insurance Services, LLC on
September 30, 2018. Beneficial Insurance Services, LLC
contributed $1.6 million of income from insurance and advisory
services during the quarter ended December 31, 2017.
For the year ended December 31, 2018,
non-interest income totaled $28.9 million, an increase of $105
thousand, or 0.4%, from the year ended December 31, 2017. The
increase was primarily due to a $3.3 million net gain on the sale
of the assets and liabilities of Beneficial Insurance Services,
LLC. This increase to non-interest income was partially
offset by a $2.4 million decrease in income from insurance and
advisory services during the year ended December 31, 2018 compared
to the prior year. The increase was also partially offset by
a $518 thousand decrease in mortgage banking and SBA income.
Non-interest ExpenseFor the quarter ended
December 31, 2018, non-interest expense totaled $33.2 million, a
decrease of $2.1 million, or 6.1%, from the quarter ended December
31, 2017. The decrease in non-interest expense was primarily
due a $1.5 million decrease in marketing expense due to a reduction
in advertising given the pending merger of Beneficial with WSFS
Financial Corporation. The decrease in non-interest expense
was also attributed to a $362 thousand decrease in net losses on
other assets due to the $319 thousand gain on the sale of a closed
branch during the fourth quarter of 2018.
For the year ended December 31, 2018,
non-interest expense totaled $141.3 million, an increase of $2.5
million, or 1.8%, from the year ended December 31, 2017. The
increase in non-interest expense was primarily due to an increase
in salaries and employee benefits of $2.8 million due primarily to
the costs associated with the build out of Neumann Finance Company,
our majority-owned equipment financing subsidiary, an increase in
our minimum wage and annual merit increases. The increase in
non-interest expense was also due to $3.1 million of professional
fees associated with the previously mentioned pending merger of
Beneficial with WSFS Financial Corporation. These increases to
non-interest expense were partially offset by a $1.0 million
decrease in net losses on other assets due to the $319 thousand
gain on the sale of a closed branch during 2018 and $685 thousand
of branch closure expenses recorded during the year ended December
31, 2017. These increases to non-interest expense were also
partially offset by an $816 thousand decrease in stock-based
compensation expense, and an $867 thousand decrease in intangible
amortization expense as a result of certain intangible assets
reaching the end of their estimated lives.
Income TaxesFor the quarter ended December 31,
2018, we recorded a provision for income taxes of $5.4 million,
reflecting an effective tax rate of 28.6%, compared to a provision
for income taxes of $19.1 million, reflecting an effective tax rate
of 121.3%, for the quarter ended December 31, 2017. For the
year ended December 31, 2018, we recorded a provision for income
taxes of $16.2 million, reflecting an effective tax rate of 25.5%,
compared to a provision for income taxes of $32.8 million,
reflecting an effective tax rate of 57.8%, for the year ended
December 31, 2017. The decrease in the effective tax rate in
the quarter and year ended December 31, 2018 compared to the same
periods a year ago is primarily due to the passage of the Tax Cuts
and Jobs Act, which was enacted on December 22, 2017 and lowered
the federal corporate tax rate for 2018 to 21% from 35%.
Asset QualityNon-performing assets decreased
$4.4 million to $30.5 million at December 31, 2018, compared to
$34.9 million at December 31, 2017 and our ratio of non-performing
assets to total assets decreased to 0.52% at December 31, 2018
compared to 0.60% at December 31, 2017. The decrease was
primarily due to the sale of one large commercial non-performing
loan totaling $7.6 million during 2018. Net charge-offs for
the year ended December 31, 2018, totaled $4.6 million, or 12 basis
points of average loans, compared to net charge-offs of $3.1
million, or 8 basis points annualized of average loans, in
2017. As a result of net charge-offs, we recorded a
$4.6 million provision for loan losses during the year ended
December 31, 2018 compared to a $3.1 million provision for loan
losses during the prior year. Our allowance for loan losses
totaled $43.3 million, or 1.11% of total loans, as of December 31,
2018, compared to $43.3 million, or 1.07% of total loans, as of
December 31, 2017.
CapitalBeneficial’s and the Bank’s capital
position remains strong relative to current regulatory
requirements. Beneficial and the Bank continue to have substantial
liquidity that has been retained in cash or invested in high
quality government-backed securities. As of December 31, 2018,
Beneficial’s tangible capital to tangible assets totaled 15.75%.
In addition, at December 31, 2018, we had the ability to
borrow up to $2.2 billion combined from the Federal Home Loan Bank
of Pittsburgh and the Federal Reserve Bank of Philadelphia.
Beneficial’s capital ratios are considered to be well capitalized
and are as follows:
|
|
|
|
|
|
|
Minimum Well |
|
Excess
Capital |
|
12/31/2018 |
|
9/30/2018 |
|
12/31/2017 |
|
Capitalized Ratio |
|
12/31/2018 |
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage (to
average assets) |
16.03% |
|
15.78% |
|
16.19% |
|
5.0% |
|
$630,294 |
Common Equity Tier 1 Capital (to risk weighted assets) |
23.11% |
|
22.55% |
|
22.12% |
|
6.5% |
|
658,404 |
Tier
1 Capital (to risk weighted assets) |
23.11% |
|
22.55% |
|
22.76% |
|
8.0% |
|
598,933 |
Total
Capital Ratio (to risk weighted assets) |
24.20% |
|
23.64% |
|
23.84% |
|
10.0% |
|
563,021 |
The Bank’s capital ratios are considered to be well capitalized
and are as follows:
|
|
|
|
|
|
|
Minimum Well |
|
Excess
Capital |
|
12/31/2018 |
|
9/30/2018 |
|
12/31/2017 |
|
Capitalized Ratio |
|
12/31/2018 |
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage (to
average assets) |
13.61% |
|
13.36% |
|
14.46% |
|
5.0% |
|
$492,325 |
Common Equity Tier 1 Capital (to risk weighted assets) |
19.63% |
|
19.10% |
|
20.34% |
|
6.5% |
|
520,427 |
Tier
1 Capital (to risk weighted assets) |
19.63% |
|
19.10% |
|
20.34% |
|
8.0% |
|
460,957 |
Total
Capital Ratio (to risk weighted assets) |
20.72% |
|
20.19% |
|
21.42% |
|
10.0% |
|
425,044 |
Maintaining strong capital levels remains one of our top
priorities. Our capital levels are in excess of well
capitalized levels under Basel III regulatory requirements.
About Beneficial 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 61 offices
in the greater Philadelphia and South New Jersey regions.
Equipment leasing services are offered through Beneficial Equipment
Leasing Corporation, which is a wholly owned subsidiary of the
Bank, and Neumann Finance Company, which is a majority owned
subsidiary of the Bank. For more information about the Bank
and Beneficial, please visit www.thebeneficial.com.
Forward Looking StatementsThis 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, changes in the
quality or composition of Beneficial’s loan or investment
portfolios and our ability to complete our previously announced
business combination with WSFS Financial Corporation. 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 BANCORP, INC. AND
SUBSIDIARIESUnaudited Consolidated Statements of
Financial Condition (Dollars in thousands, except
share amounts)
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
ASSETS: |
|
|
|
|
|
Cash and
cash equivalents: |
|
|
|
|
|
Cash and
due from banks |
$60,231 |
|
|
$46,919 |
|
|
$45,048 |
|
Interest-bearing deposits |
|
792,244 |
|
|
|
796,019 |
|
|
|
512,567 |
|
Total
cash and cash equivalents |
|
852,475 |
|
|
|
842,938 |
|
|
|
557,615 |
|
|
|
|
|
|
|
Investment securities: |
|
|
|
|
|
Available-for-sale |
|
285,622 |
|
|
|
287,060 |
|
|
|
310,308 |
|
Held-to-maturity |
|
424,571 |
|
|
|
438,649 |
|
|
|
537,302 |
|
Federal
Home Loan Bank stock, at cost |
|
23,182 |
|
|
|
23,182 |
|
|
|
23,210 |
|
Total
investment securities |
|
733,375 |
|
|
|
748,891 |
|
|
|
870,820 |
|
|
|
|
|
|
|
Loans and leases: |
|
3,894,605 |
|
|
|
3,926,381 |
|
|
|
4,034,130 |
|
Allowance
for loan and lease losses |
|
(43,262) |
|
|
|
(43,137) |
|
|
|
(43,267) |
|
Net loans
and leases |
|
3,851,343 |
|
|
|
3,883,244 |
|
|
|
3,990,863 |
|
|
|
|
|
|
|
Accrued interest
receivable |
|
18,751 |
|
|
|
18,519 |
|
|
|
17,512 |
|
|
|
|
|
|
|
Bank premises and
equipment, net |
|
67,488 |
|
|
|
68,723 |
|
|
|
70,573 |
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
Goodwill |
|
159,671 |
|
|
|
159,671 |
|
|
|
169,002 |
|
Bank
owned life insurance |
|
81,035 |
|
|
|
80,793 |
|
|
|
80,172 |
|
Other
intangibles |
|
1,330 |
|
|
|
1,428 |
|
|
|
2,884 |
|
Other
assets |
|
41,457 |
|
|
|
63,416 |
|
|
|
39,387 |
|
Total
other assets |
|
283,493 |
|
|
|
305,308 |
|
|
|
291,445 |
|
Total assets |
$5,806,925 |
|
|
$5,867,623 |
|
|
$5,798,828 |
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing deposits |
$557,535 |
|
|
$552,111 |
|
|
$563,185 |
|
Interest
bearing deposits |
|
3,615,063 |
|
|
|
3,694,869 |
|
|
|
3,587,308 |
|
Total
deposits |
|
4,172,598 |
|
|
|
4,246,980 |
|
|
|
4,150,493 |
|
Borrowed
funds |
|
515,000 |
|
|
|
515,000 |
|
|
|
540,439 |
|
Other
liabilities |
|
69,177 |
|
|
|
68,497 |
|
|
|
73,006 |
|
Total
liabilities |
|
4,756,775 |
|
|
|
4,830,477 |
|
|
|
4,763,938 |
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Preferred
stock – $.01 par value |
|
- |
|
|
|
- |
|
|
|
- |
|
Common
stock – $.01 par value |
|
848 |
|
|
|
848 |
|
|
|
845 |
|
Additional paid-in capital |
|
818,886 |
|
|
|
812,346 |
|
|
|
799,658 |
|
Unearned
common stock held by employee stock ownership plan |
|
(24,610) |
|
|
|
(25,227) |
|
|
|
(27,078) |
|
Retained
earnings |
|
422,875 |
|
|
|
413,481 |
|
|
|
405,497 |
|
Accumulated other comprehensive loss, net |
|
(28,780) |
|
|
|
(28,148) |
|
|
|
(26,127) |
|
Treasury
stock, at cost |
|
(139,227) |
|
|
|
(136,622) |
|
|
|
(118,497) |
|
Total
Beneficial Bancorp, Inc. stockholders’ equity |
|
1,049,992 |
|
|
|
1,036,678 |
|
|
|
1,034,298 |
|
Noncontrolling interest |
|
158 |
|
|
|
468 |
|
|
|
592 |
|
Total stockholders'
equity |
|
1,050,150 |
|
|
|
1,037,146 |
|
|
|
1,034,890 |
|
Total liabilities and
stockholders’ equity |
$5,806,925 |
|
|
$5,867,623 |
|
|
$5,798,828 |
|
|
|
|
|
|
|
BENEFICIAL BANCORP, INC. AND
SUBSIDIARIESUnaudited Consolidated Statements of
Income(Dollars in thousands, except per share
amounts)
|
For the Quarter Ended |
|
For the Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
Interest
and fees on loans and leases |
$46,363 |
|
|
$44,990 |
|
|
$45,736 |
|
|
$179,821 |
|
|
$172,404 |
|
Interest
on overnight investments |
|
4,876 |
|
|
|
3,524 |
|
|
|
1,664 |
|
|
|
12,769 |
|
|
|
4,330 |
|
Interest
and dividends on investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
4,585 |
|
|
|
4,543 |
|
|
|
5,067 |
|
|
|
19,116 |
|
|
|
21,058 |
|
Tax-exempt |
|
18 |
|
|
|
18 |
|
|
|
18 |
|
|
|
72 |
|
|
|
76 |
|
Total
interest income |
|
55,842 |
|
|
|
53,075 |
|
|
|
52,485 |
|
|
|
211,778 |
|
|
|
197,868 |
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
Interest
on deposits: |
|
|
|
|
|
|
|
|
|
Interest
bearing checking accounts |
|
751 |
|
|
|
708 |
|
|
|
599 |
|
|
|
2,746 |
|
|
|
2,442 |
|
Money
market and savings deposits |
|
2,514 |
|
|
|
2,227 |
|
|
|
1,513 |
|
|
|
8,156 |
|
|
|
5,981 |
|
Time
deposits |
|
3,264 |
|
|
|
2,950 |
|
|
|
2,681 |
|
|
|
11,493 |
|
|
|
9,698 |
|
Total |
|
6,529 |
|
|
|
5,885 |
|
|
|
4,793 |
|
|
|
22,395 |
|
|
|
18,121 |
|
Interest
on borrowed funds |
|
2,232 |
|
|
|
2,233 |
|
|
|
2,740 |
|
|
|
9,019 |
|
|
|
9,879 |
|
Total
interest expense |
|
8,761 |
|
|
|
8,118 |
|
|
|
7,533 |
|
|
|
31,414 |
|
|
|
28,000 |
|
Net interest
income |
|
47,081 |
|
|
|
44,957 |
|
|
|
44,952 |
|
|
|
180,364 |
|
|
|
169,868 |
|
Provision for loan and
lease losses |
|
- |
|
|
|
1,916 |
|
|
|
1,018 |
|
|
|
4,581 |
|
|
|
3,118 |
|
Net interest income
after provision for loan and lease losses |
|
47,081 |
|
|
|
43,041 |
|
|
|
43,934 |
|
|
|
175,783 |
|
|
|
166,750 |
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
Insurance
and advisory commission and fee income |
|
- |
|
|
|
1,356 |
|
|
|
1,607 |
|
|
|
4,681 |
|
|
|
7,124 |
|
Service
charges and other income |
|
4,838 |
|
|
|
4,942 |
|
|
|
5,200 |
|
|
|
19,207 |
|
|
|
19,543 |
|
Mortgage
banking and SBA income |
|
106 |
|
|
|
309 |
|
|
|
358 |
|
|
|
1,587 |
|
|
|
2,105 |
|
Net gain
on sale of insurance agency |
|
- |
|
|
|
3,297 |
|
|
|
- |
|
|
|
3,297 |
|
|
|
- |
|
Net
(loss) gain on investment securities |
|
(2) |
|
|
|
(23) |
|
|
|
- |
|
|
|
98 |
|
|
|
(7) |
|
Total
non-interest income |
|
4,942 |
|
|
|
9,881 |
|
|
|
7,165 |
|
|
|
28,870 |
|
|
|
28,765 |
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
19,066 |
|
|
|
19,482 |
|
|
|
19,555 |
|
|
|
78,253 |
|
|
|
75,225 |
|
Occupancy
expense |
|
2,540 |
|
|
|
2,520 |
|
|
|
2,590 |
|
|
|
10,580 |
|
|
|
10,336 |
|
Depreciation, amortization and maintenance |
|
2,367 |
|
|
|
2,300 |
|
|
|
2,324 |
|
|
|
9,244 |
|
|
|
9,507 |
|
Marketing
expense |
|
25 |
|
|
|
1,478 |
|
|
|
1,525 |
|
|
|
4,897 |
|
|
|
4,684 |
|
Intangible amortization expense |
|
98 |
|
|
|
199 |
|
|
|
213 |
|
|
|
696 |
|
|
|
1,563 |
|
FDIC
insurance |
|
400 |
|
|
|
416 |
|
|
|
431 |
|
|
|
1,658 |
|
|
|
1,744 |
|
Merger
charges |
|
848 |
|
|
|
2,261 |
|
|
|
- |
|
|
|
3,109 |
|
|
|
- |
|
Professional fees |
|
993 |
|
|
|
1,130 |
|
|
|
1,370 |
|
|
|
4,360 |
|
|
|
4,606 |
|
Classified loan and other real estate owned related expense |
|
330 |
|
|
|
356 |
|
|
|
188 |
|
|
|
1,274 |
|
|
|
1,136 |
|
Other |
|
6,566 |
|
|
|
6,243 |
|
|
|
7,182 |
|
|
|
27,191 |
|
|
|
29,996 |
|
Total
non-interest expense |
|
33,233 |
|
|
|
36,385 |
|
|
|
35,378 |
|
|
|
141,262 |
|
|
|
138,797 |
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
18,790 |
|
|
|
16,537 |
|
|
|
15,721 |
|
|
|
63,391 |
|
|
|
56,718 |
|
Income tax expense |
|
5,374 |
|
|
|
4,286 |
|
|
|
19,065 |
|
|
|
16,156 |
|
|
|
32,794 |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME |
$13,416 |
|
|
$12,251 |
|
|
|
($3,344) |
|
|
$47,235 |
|
|
$23,924 |
|
Net loss attributable
to noncontrolling interest |
|
(309) |
|
|
|
(139) |
|
|
|
(8) |
|
|
|
(609) |
|
|
|
(8) |
|
NET INCOME ATTRIBUTABLE
TO BENEFICIAL BANCORP, INC. |
$13,725 |
|
|
$12,390 |
|
|
|
($3,336) |
|
|
$47,844 |
|
|
$23,932 |
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE –
Basic |
$0.19 |
|
|
$0.17 |
|
|
|
($0.05) |
|
|
$0.66 |
|
|
$0.33 |
|
EARNINGS PER SHARE –
Diluted |
$0.19 |
|
|
$0.17 |
|
|
|
($0.05) |
|
|
$0.65 |
|
|
$0.32 |
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS DECLARED PER
SHARE |
$0.06 |
|
|
$0.06 |
|
|
|
($0.06) |
|
|
$0.49 |
|
|
$0.24 |
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding – Basic |
|
71,108,476 |
|
|
|
71,012,206 |
|
|
|
70,831,659 |
|
|
|
70,912,191 |
|
|
|
70,574,037 |
|
Average common shares
outstanding – Diluted |
|
71,650,648 |
|
|
|
71,638,486 |
|
|
|
70,831,659 |
|
|
|
71,517,248 |
|
|
|
71,301,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BENEFICIAL BANCORP, INC. AND
SUBSIDIARIESUnaudited Selected Consolidated
Financial and Other Data (Dollars in
thousands)
|
For the Quarter Ended |
|
For the Year Ended |
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
Average |
Yield / |
|
Average |
Yield / |
|
Average |
Yield / |
|
Average |
Yield / |
|
Balance |
Rate |
|
Balance |
Rate |
|
Balance |
Rate |
|
Balance |
Rate |
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities: |
$1,599,583 |
2.34% |
|
|
$1,419,309 |
1.89% |
|
|
$1,455,288 |
2.18% |
|
|
$1,359,777 |
1.87% |
|
Overnight
investments |
|
857,780 |
2.22% |
|
|
|
500,691 |
1.30% |
|
|
|
653,763 |
1.93% |
|
|
|
373,859 |
1.14% |
|
Stock |
|
23,182 |
6.39% |
|
|
|
23,210 |
4.66% |
|
|
|
23,190 |
6.82% |
|
|
|
23,046 |
4.66% |
|
Other
investment securities |
|
718,621 |
2.35% |
|
|
|
895,408 |
2.15% |
|
|
|
778,335 |
2.26% |
|
|
|
962,872 |
2.08% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases: |
|
3,902,190 |
4.70% |
|
|
|
4,003,152 |
4.52% |
|
|
|
3,977,510 |
4.49% |
|
|
|
4,050,177 |
4.23% |
|
Residential |
|
976,176 |
4.02% |
|
|
|
936,031 |
3.92% |
|
|
|
964,158 |
3.94% |
|
|
|
911,922 |
3.93% |
|
Commercial real estate |
|
1,677,006 |
4.84% |
|
|
|
1,665,059 |
4.78% |
|
|
|
1,681,365 |
4.53% |
|
|
|
1,664,726 |
4.26% |
|
Business
and small business |
|
797,596 |
5.05% |
|
|
|
837,988 |
4.63% |
|
|
|
840,457 |
4.86% |
|
|
|
861,799 |
4.43% |
|
Personal |
|
451,412 |
5.00% |
|
|
|
564,074 |
4.57% |
|
|
|
491,530 |
4.80% |
|
|
|
611,730 |
4.32% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest earning
assets |
$5,501,773 |
4.01% |
|
|
$5,422,461 |
3.83% |
|
|
$5,432,798 |
3.87% |
|
|
$5,409,954 |
3.64% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
$3,685,847 |
0.70% |
|
|
$3,632,094 |
0.52% |
|
|
$3,632,625 |
0.62% |
|
|
$3,647,278 |
0.50% |
|
Savings |
|
1,290,999 |
0.59% |
|
|
|
1,291,485 |
0.34% |
|
|
|
1,294,649 |
0.47% |
|
|
|
1,297,543 |
0.34% |
|
Money
market |
|
396,381 |
0.60% |
|
|
|
434,947 |
0.37% |
|
|
|
407,574 |
0.49% |
|
|
|
441,528 |
0.35% |
|
Demand |
|
1,052,764 |
0.26% |
|
|
|
902,421 |
0.24% |
|
|
|
993,309 |
0.26% |
|
|
|
914,404 |
0.24% |
|
Demand -
municipals |
|
118,730 |
0.16% |
|
|
|
125,699 |
0.18% |
|
|
|
113,875 |
0.17% |
|
|
|
122,636 |
0.19% |
|
Total
core deposits |
|
2,858,874 |
0.45% |
|
|
|
2,754,552 |
0.30% |
|
|
|
2,809,407 |
0.39% |
|
|
|
2,776,111 |
0.30% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Time
deposits |
|
826,973 |
1.57% |
|
|
|
877,542 |
1.21% |
|
|
|
823,218 |
1.40% |
|
|
|
871,167 |
1.11% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
515,000 |
1.70% |
|
|
|
540,474 |
1.98% |
|
|
|
520,045 |
1.73% |
|
|
|
536,222 |
1.82% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest bearing
liabilities |
$4,200,847 |
0.83% |
|
|
$4,172,568 |
0.72% |
|
|
$4,152,670 |
0.76% |
|
|
$4,183,500 |
0.67% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
deposits |
|
562,410 |
|
|
|
534,075 |
|
|
|
561,740 |
|
|
|
525,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.38% |
|
|
|
3.28% |
|
|
|
3.29% |
|
|
|
3.12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
INDICATORS |
December 31, |
|
September 30, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
Non-performing
assets: |
|
|
|
|
|
Non-accruing loans |
$21,138 |
|
|
$15,427 |
|
|
$20,521 |
|
Accruing
loans past due 90 days or more |
|
8,589 |
|
|
|
13,202 |
|
|
|
14,152 |
|
Total
non-performing loans |
$29,727 |
|
|
$28,629 |
|
|
$34,673 |
|
|
|
|
|
|
|
Real estate owned |
|
754 |
|
|
|
274 |
|
|
|
189 |
|
|
|
|
|
|
|
Total
non-performing assets |
$30,481 |
|
|
$28,903 |
|
|
$34,862 |
|
|
|
|
|
|
|
Non-performing loans to
total loans and leases |
|
0.76% |
|
|
|
0.73% |
|
|
|
0.86% |
|
Non-performing assets
to total assets |
|
0.52% |
|
|
|
0.49% |
|
|
|
0.60% |
|
Non-performing assets
less accruing government guaranteed |
|
|
|
|
|
student loans past due
90 days or more to total assets |
|
0.38% |
|
|
0.27% |
|
|
0.36% |
|
ALLL to total loans and
leases |
|
1.11% |
|
|
|
1.10% |
|
|
|
1.07% |
|
ALLL to non-performing
loans |
|
145.53% |
|
|
|
150.68% |
|
|
|
124.79% |
|
ALLL to non-performing
loans, excluding government |
|
|
|
|
|
guaranteed student
loans |
|
204.66% |
|
|
|
279.62% |
|
|
|
210.84% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Key performance ratios (annualized) are as follows for
the quarter and year ended (unaudited):
|
For the Quarter Ended |
|
For the Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
PERFORMANCE
RATIOS: |
|
|
|
|
|
|
|
|
|
(annualized) |
|
|
|
|
|
|
|
|
|
Return on average
assets |
0.96% |
|
0.66% |
|
(0.25%) |
|
0.81% |
|
0.41% |
Return on average
assets (excluding tax reform act impact) |
0.96% |
|
0.66% |
|
0.65% |
|
0.81% |
|
0.63% |
Return on average
equity |
5.42% |
|
3.76% |
|
(1.38%) |
|
4.61% |
|
2.29% |
Return on average
equity (excluding tax reform act impact) |
5.42% |
|
3.76% |
|
3.63% |
|
4.61% |
|
3.57% |
Net interest
margin |
3.38% |
|
3.26% |
|
3.28% |
|
3.29% |
|
3.12% |
Net charge-off
ratio |
(0.01%) |
|
0.19% |
|
0.10% |
|
0.12% |
|
0.08% |
Efficiency ratio |
63.88% |
|
66.35% |
|
68.20% |
|
67.51% |
|
69.93% |
Efficiency ratio
(excluding merger charges) |
62.25% |
|
62.23% |
|
68.20% |
|
66.02% |
|
69.93% |
Tangible common
equity |
15.75% |
|
15.34% |
|
15.33% |
|
15.75% |
|
15.33% |
Tangible common equity
(excluding tax reform act impact) |
15.75% |
|
15.34% |
|
15.53% |
|
15.75% |
|
15.53% |
CONTACT: Thomas D. Cestare Executive Vice
President and Chief Financial Officer PHONE: (215) 864-6009
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