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): July 20, 2018
BENEFICIAL BANCORP, INC.
(Exact Name of Registrant as Specified in Its Charter)
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Maryland |
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001-36806 |
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47-1569198 |
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(State or other jurisdiction of |
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(Commission |
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(IRS Employer |
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incorporation or organization) |
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File Number) |
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Identification No.) |
Beneficial Bank Place, 1818 Market Street, Philadelphia, Pennsylvania 19103
(Address of principal executive offices) (Zip Code)
(215) 864-6000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
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Item 2.02 |
Results of Operations and Financial Condition. |
On July 20, 2018, Beneficial Bancorp, Inc. (the “Company”), the holding company for Beneficial Bank, issued a press release announcing its financial results for the three and six months ended June 30, 2018. For more information, reference is made to the Company’s press release dated July 20, 2018, a copy of which is attached to this Report as Exhibit 99.1 and is furnished herewith.
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Item 8.01 |
Other Events. |
On July 19, 2018, the Company declared a cash dividend of 6 cents per share, payable on or after August 9, 2018, to common shareholders of record at the close of business on July 30, 2018.
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Item 9.01 |
Financial Statements and Exhibits. |
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(d) |
Exhibits. |
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Exhibit No. |
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Description of Exhibit |
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99.1 |
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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.
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BENEFICIAL BANCORP, INC. | |
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Date: July 20, 2018 |
By: |
/s/ Thomas D. Cestare |
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Thomas D. Cestare |
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Executive Vice President and Chief Financial Officer |
FOR IMMEDIATE RELEASE
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DATE: |
July 20, 2018 |
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CONTACT: |
Thomas D. Cestare |
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Executive Vice President and Chief Financial Officer |
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PHONE: |
(215) 864-6009 |
BENEFICIAL BANCORP, INC. ANNOUNCES SECOND QUARTER RESULTS AND CASH DIVIDEND TO SHAREHOLDERS
PHILADELPHIA, PENNSYLVANIA, July 20, 2018 — Beneficial Bancorp, Inc. (“Beneficial”) (NASDAQ GS: BNCL), the parent company of Beneficial Bank (the “Bank”), today announced its financial results for the three and six months ended June 30, 2018. Beneficial recorded net income of $11.9 million and $21.7 million, or $0.16 and $0.30 per diluted share, for the three and six months ended June 30, 2018, respectively, compared to net income of $9.5 million and $17.8 million, or $0.13 and $0.24 per diluted share, for the three and six months ended June 30, 2017.
On July 19, 2018, the Company declared a cash dividend of 6 cents per share, payable on or after August 9, 2018, to common shareholders of record at the close of business on July 30, 2018.
Highlights for the three and six months ended June 30, 2018 are as follows:
· Net interest margin totaled 3.34% and 3.28% for the three and six months ended June 30, 2018 compared to 3.07% and 3.06% for the same periods in 2017, respectively. Net interest income increased $3.4 million, or 8.1%, and $5.8 million, or 7.0%, for the three and six months ended June 30, 2018 compared to the same periods in the prior year. During the three months ended June 30, 2018, the net interest margin was benefited $1.7 million, or 13 basis points, by loan prepayment income. Net interest margin and net interest income also increased due to higher yields on the investment and loan portfolios following the recent Federal Reserve Bank federal funds rate increases.
· During the six months ended June 30, 2018, our core commercial real estate portfolio increased $20.2 million, 2.4% annualized growth, and our residential real estate portfolio increased $27.1 million, 5.7% annualized growth.
· Net charge-offs for the six months ended June 30, 2018, totaled $2.9 million, or 14 basis points annualized of average loans, compared to net charge-offs of $1.3 million, or 6 basis points annualized of average loans, in the same period in 2017.
· During the three and six months ended June 30, 2018, the Company recorded a $523 thousand and an $831 thousand net gain on the sale of $7.3 million and $12.1 million of the guaranteed portion of SBA loans, respectively.
· Asset quality metrics continued to remain strong with non-performing assets to total assets, excluding government guaranteed student loans, of 0.36% as of June 30, 2018. Our allowance for loan losses totaled $43.1 million, or 1.07% of total loans, as of June 30, 2018, compared to $43.3 million, or 1.07% of total loans, as of December 31, 2017.
· Our effective tax rate decreased to 23.9% and 23.1% for the three and six months ended June 30, 2018 compared to 33.3% and 31.6% for the same periods in the prior year as a result of the Tax Cuts and Jobs Act of 2017, which was enacted on December 22, 2017 and lowered the federal corporate tax rate to 21% from 35%.
· During the six months ended June 30, 2018, the Company purchased 945,400 shares under its previously announced stock repurchase plan. Our tangible capital to tangible assets increased to 15.19% at June 30, 2018, compared to 15.17% at June 30, 2017. Tangible book value per share totaled $11.35 at June 30, 2018.
Gerard Cuddy, Beneficial’s President and CEO, stated “Our financial results continue to improve, driven by a rise in interest rates, continued favorable asset quality and management of our expense base. We are seeing some growth in our commercial real estate and residential lending businesses in line with the overall growth rate of the economy. We are working diligently to build out the Neumann Finance team and infrastructure and expect to start booking leases late in the third quarter 2018 which we expect to positively impact future loan and revenue growth.”
Balance Sheet
Total assets decreased $28.5 million, or 0.5%, to $5.77 billion at June 30, 2018, compared to $5.80 billion at December 31, 2017. The decrease in total assets was primarily due to a decrease in total investment securities and loans, partially offset by an increase in cash and cash equivalents.
Cash and cash equivalents increased $29.2 million, or 5.2%, to $586.8 million at June 30, 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 $54.8 million, or 6.3%, to $816.1 million at June 30, 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 $10.8 million, or 0.3%, to $4.02 billion at June 30, 2018, from $4.03 billion at December 31, 2017. During the six months ended June 30, 2018, our core commercial real estate portfolio increased $20.2 million, or 2.4% annualized growth, and our residential real estate portfolio increased $27.1 million, representing 5.7% annualized growth. However, this growth was offset by a $60.5 million decrease in our total consumer loan portfolio, which was due primarily to a $33.8 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 lending business in the first quarter of 2017.
Deposits increased $10.0 million, or 0.2%, to $4.16 billion at June 30, 2018, from $4.15 billion at December 31, 2017. Deposit growth was primarily achieved through organic core deposit growth of $55.4 million in interest business checking accounts and $24.4 million of growth in time deposits, partially offset by the maturity of $74.6 million of higher cost brokered certificates of deposit, which we did not renew given our excess liquidity position.
Borrowings decreased $25.4 million to $515.0 million at June 30, 2018. During the six months ended June 30, 2018, the Company paid off $25.8 million of a higher cost trust preferred debenture.
Stockholders’ equity decreased $12.3 million, or 1.2%, to $1.02 billion at June 30, 2018, from $1.03 billion at December 31, 2017. The decrease in stockholders’ equity was primarily due to the declaration of cash dividends and stock repurchases, partially offset by net income of $21.7 million.
Net Interest Income
For the three months ended June 30, 2018, net interest income was $45.1 million, an increase of $3.4 million, or 8.1%, from the three months ended June 30, 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 paid off $25.8 million of a higher cost trust preferred debenture during the three months ended March 31, 2018. The net interest margin totaled 3.34% for the quarter ended June 30, 2018 as compared to 3.07% for the same period in 2017. During the three months ended June 30, 2018, the net interest margin was positively impacted by 13 basis points due to loan prepayments compared to a 3 basis point positive impact during the three months ended June 30, 2017. Also during the three months ended June 30, 2018, the net interest margin was negatively impacted 13 basis points by higher cash levels due to slower than anticipated loan growth as average cash for the period totaled $512.9 million, an increase of $170.5 million from $342.4 million during the three months ended June 30, 2017.
For the six months ended June 30, 2018, Beneficial reported net interest income of $88.3 million, an increase of $5.8 million, or 7.0%, from the six months ended June 30, 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 3.28% for the six months ended June 30, 2018, from 3.06% for the same period in 2017.
Non-interest Income
For the three months ended June 30, 2018, non-interest income totaled $7.4 million, a decrease of $37 thousand, or 0.5%, from the three months ended June 30, 2017. The decrease was primarily due to a $331 thousand net decrease in income from bank-owned life insurance, partially offset by a $239 thousand increase in the net gain on the sale of SBA loans recorded during the three months ended June 30, 2018 compared to the same period in the prior year.
For the six months ended June 30, 2018, non-interest income totaled $14.0 million, a decrease of $440 thousand, or 3.0%, from the six months ended June 30, 2017. The decrease was primarily due to a $335 thousand net decrease in income from bank-owned life insurance recorded during the six months ended June 30, 2018 compared to the same period in the prior year.
Non-interest Expense
For the three months ended June 30, 2018, non-interest expense totaled $35.3 million, an increase of $1.1 million, or 3.1%, from the three months ended June 30, 2017. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $1.2 million due primarily to enhanced medical coverage provided to our entire employee base, annual merit increases, an increase to our minimum wage and the costs associated with the build out of Neumann Finance.
For the six months ended June 30, 2018, non-interest expense totaled $71.6 million, an increase of $2.1 million, or 3.0%, from the six months ended June 30, 2017. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $2.3 million due primarily to enhanced medical coverage provided to our entire employee base, annual merit increases, an increase in our minimum wage and the costs associated with the build out of Neumann Finance. Marketing expense increased $1.3 million due to the production and airing of a new television commercial. These increases were partially offset by a decline of $740 thousand in intangible amortization expense as a result of certain intangible assets reaching the end of their estimated lives, as well as an $837 thousand decrease in other expenses primarily due to declines in loan and on-line banking expenses.
Income Taxes
For the three months ended June 30, 2018, we recorded a provision for income taxes of $3.7 million, reflecting an effective tax rate of 23.9%, compared to a provision for income taxes of $4.7 million, reflecting an effective tax rate of 33.3% for the three months ended June 30, 2017. For the six months ended June 30, 2018, we recorded a provision for income taxes of $6.5 million, reflecting an effective tax rate of 23.1%, compared to a provision for income taxes of $8.2 million, reflecting an effective tax rate of 31.6%, for the six months ended June 30, 2017. The decrease in the effective tax rate in the three and six months ended June 30, 2018 compared to the same period a year ago is primarily due to the passage of the Tax Cuts and Jobs Act of 2017, which was enacted on December 22, 2017 and lowered the federal corporate tax rate to 21% from 35%.
Asset Quality
Non-accruing loans, excluding government guaranteed student loans, increased $365 thousand to $20.9 million at June 30, 2018, compared to $20.5 million at December 31, 2017. Our ratio of non-performing assets to total assets, excluding government guaranteed student loans, remained the same at 0.36% at both June 30, 2018 and December 31, 2017. As a result of charge-offs, we recorded a $1.7 million and $2.7 million provision for loan losses during the three and six months ended June 30, 2018, respectively, compared to a $750 thousand and $1.4 million provision for loan losses during the same periods in the prior year. Our allowance for loan losses totaled $43.1 million, or 1.07% of total loans, as of June 30, 2018, compared to $43.1 million, or 1.07% of total loans, as of March 31, 2018, and $43.3 million, or 1.07% of total loans, as of December 31, 2017.
Capital
Beneficial’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 June 30, 2018, Beneficial’s tangible capital to tangible assets totaled 15.19%. In addition, at June 30, 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:
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Minimum Well |
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Excess Capital |
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6/30/2018 |
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12/31/2017 |
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6/30/2017 |
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Capitalized Ratio |
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6/30/2018 |
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Tier 1 Leverage (to average assets) |
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15.65 |
% |
16.19 |
% |
16.06 |
% |
5.0 |
% |
$ |
593,322 |
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Common Equity Tier 1 Capital (to risk weighted assets) |
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21.69 |
% |
22.12 |
% |
20.88 |
% |
6.5 |
% |
610,602 |
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Tier 1 Capital (to risk weighted assets) |
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21.69 |
% |
22.76 |
% |
21.47 |
% |
8.0 |
% |
550,319 |
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Total Capital Ratio (to risk weighted assets) |
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22.77 |
% |
23.84 |
% |
22.51 |
% |
10.0 |
% |
513,135 |
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The Bank’s capital ratios are considered to be well capitalized and are as follows:
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Minimum Well |
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Excess Capital |
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6/30/2018 |
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12/31/2017 |
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6/30/2017 |
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Capitalized Ratio |
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6/30/2018 |
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Tier 1 Leverage (to average assets) |
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13.20 |
% |
14.46 |
% |
14.75 |
% |
5.0 |
% |
$ |
456,616 |
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Common Equity Tier 1 Capital (to risk weighted assets) |
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18.31 |
% |
20.34 |
% |
19.74 |
% |
6.5 |
% |
474,069 |
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Tier 1 Capital (to risk weighted assets) |
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18.31 |
% |
20.34 |
% |
19.74 |
% |
8.0 |
% |
413,835 |
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Total Capital Ratio (to risk weighted assets) |
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19.38 |
% |
21.42 |
% |
20.77 |
% |
10.0 |
% |
376,716 |
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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. Insurance services are offered through Beneficial Insurance Services, LLC, which is a wholly owned subsidiary of the Bank. Equipment leasing services are offered through Beneficial Equipment Leasing Corporation, which is a wholly owned subsidiary 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, changes in the quality or composition of Beneficial’s loan or investment portfolios, our ability to successfully integrate the assets, liabilities, customers, systems and employees of Conestoga Bank into our operations and our ability to realize related revenue synergies and cost savings within expected time frames. 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 SUBSIDIARIES
Unaudited Consolidated Statements of Financial Condition
(Dollars in thousands, except share amounts)
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June 30, |
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March 31, |
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December 31, |
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June 30, |
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2018 |
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2018 |
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2017 |
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2017 |
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ASSETS: |
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Cash and cash equivalents: |
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Cash and due from banks |
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$ |
52,440 |
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$ |
40,306 |
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$ |
45,048 |
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$ |
50,078 |
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Interest-bearing deposits |
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534,353 |
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562,350 |
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512,567 |
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333,306 |
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Total cash and cash equivalents |
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586,793 |
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602,656 |
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557,615 |
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383,384 |
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Investment securities: |
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Available-for-sale |
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294,428 |
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301,920 |
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310,308 |
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427,174 |
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Held-to-maturity |
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498,454 |
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517,453 |
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537,302 |
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540,057 |
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Federal Home Loan Bank stock, at cost |
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23,182 |
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23,210 |
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23,210 |
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23,210 |
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Total investment securities |
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816,064 |
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842,583 |
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870,820 |
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990,441 |
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Loans and leases: |
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4,023,310 |
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4,003,465 |
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4,034,130 |
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4,094,732 |
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Allowance for loan and lease losses |
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(43,068 |
) |
(43,108 |
) |
(43,267 |
) |
(43,350 |
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Net loans and leases |
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3,980,242 |
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3,960,357 |
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3,990,863 |
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4,051,382 |
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Accrued interest receivable |
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18,152 |
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18,077 |
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17,512 |
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16,897 |
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Bank premises and equipment, net |
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68,259 |
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69,436 |
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70,573 |
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72,982 |
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Other assets: |
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Goodwill |
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169,002 |
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169,002 |
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169,002 |
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169,002 |
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Bank owned life insurance |
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81,207 |
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80,594 |
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80,172 |
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80,952 |
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Other intangibles |
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2,486 |
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2,685 |
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2,884 |
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3,309 |
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Other assets |
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48,106 |
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43,533 |
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39,387 |
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60,614 |
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Total other assets |
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300,801 |
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295,814 |
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291,445 |
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313,877 |
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Total assets |
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$ |
5,770,311 |
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$ |
5,788,923 |
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$ |
5,798,828 |
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$ |
5,828,963 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY: |
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Liabilities: |
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Deposits: |
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Non-interest bearing deposits |
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$ |
592,375 |
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$ |
564,450 |
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$ |
563,185 |
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$ |
568,391 |
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Interest bearing deposits |
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3,568,131 |
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3,623,612 |
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3,587,308 |
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3,616,645 |
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Total deposits |
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4,160,506 |
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4,188,062 |
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4,150,493 |
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4,185,036 |
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Borrowed funds |
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515,000 |
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515,000 |
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540,439 |
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540,432 |
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Other liabilities |
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72,213 |
|
69,750 |
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73,006 |
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73,291 |
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Total liabilities |
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4,747,719 |
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4,772,812 |
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4,763,938 |
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4,798,759 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock — $.01 par value |
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— |
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— |
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— |
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— |
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Common stock — $.01 par value |
|
847 |
|
845 |
|
845 |
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843 |
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Additional paid-in capital |
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807,616 |
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802,056 |
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799,658 |
|
789,356 |
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Unearned common stock held by employee stock ownership plan |
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(25,844 |
) |
(26,461 |
) |
(27,078 |
) |
(28,312 |
) | ||||
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Retained earnings |
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405,395 |
|
397,799 |
|
405,497 |
|
408,162 |
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Accumulated other comprehensive loss, net |
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(29,406 |
) |
(30,108 |
) |
(26,127 |
) |
(24,483 |
) | ||||
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Treasury stock, at cost |
|
(136,622 |
) |
(128,545 |
) |
(118,497 |
) |
(115,362 |
) | ||||
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Total Beneficial Bancorp, Inc. stockholders’ equity |
|
1,021,986 |
|
1,015,586 |
|
1,034,298 |
|
1,030,204 |
| ||||
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Noncontrolling interest |
|
606 |
|
525 |
|
592 |
|
— |
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Total stockholders’ equity |
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1,022,592 |
|
1,016,111 |
|
1,034,890 |
|
1,030,204 |
| ||||
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Total liabilities and stockholders’ equity |
|
$ |
5,770,311 |
|
$ |
5,788,923 |
|
$ |
5,798,828 |
|
$ |
5,828,963 |
|
BENEFICIAL BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
| |||||||||||
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
| |||||
|
|
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| |||||
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Interest and fees on loans and leases |
|
$ |
45,415 |
|
$ |
43,054 |
|
$ |
42,211 |
|
$ |
88,468 |
|
$ |
83,698 |
|
|
Interest on overnight investments |
|
2,314 |
|
2,055 |
|
897 |
|
4,369 |
|
1,426 |
| |||||
|
Interest and dividends on investment securities: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Taxable |
|
4,868 |
|
5,119 |
|
5,416 |
|
9,987 |
|
10,773 |
| |||||
|
Tax-exempt |
|
18 |
|
18 |
|
18 |
|
36 |
|
40 |
| |||||
|
Total interest income |
|
52,615 |
|
50,246 |
|
48,542 |
|
102,860 |
|
95,937 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Interest on deposits: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Interest bearing checking accounts |
|
648 |
|
639 |
|
617 |
|
1,287 |
|
1,219 |
| |||||
|
Money market and savings deposits |
|
1,930 |
|
1,485 |
|
1,491 |
|
3,415 |
|
2,952 |
| |||||
|
Time deposits |
|
2,704 |
|
2,576 |
|
2,310 |
|
5,280 |
|
4,497 |
| |||||
|
Total |
|
5,282 |
|
4,700 |
|
4,418 |
|
9,982 |
|
8,668 |
| |||||
|
Interest on borrowed funds |
|
2,208 |
|
2,345 |
|
2,367 |
|
4,553 |
|
4,737 |
| |||||
|
Total interest expense |
|
7,490 |
|
7,045 |
|
6,785 |
|
14,535 |
|
13,405 |
| |||||
|
Net interest income |
|
45,125 |
|
43,201 |
|
41,757 |
|
88,325 |
|
82,532 |
| |||||
|
Provision for loan and lease losses |
|
1,666 |
|
999 |
|
750 |
|
2,665 |
|
1,350 |
| |||||
|
Net interest income after provision for loan and lease losses |
|
43,459 |
|
42,202 |
|
41,007 |
|
85,660 |
|
81,182 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Insurance and advisory commission and fee income |
|
1,402 |
|
1,923 |
|
1,626 |
|
3,325 |
|
3,719 |
| |||||
|
Service charges and other income |
|
5,232 |
|
4,196 |
|
5,353 |
|
9,428 |
|
9,451 |
| |||||
|
Mortgage banking and SBA income |
|
703 |
|
468 |
|
444 |
|
1,171 |
|
1,323 |
| |||||
|
Net gain (loss) on investment securities |
|
46 |
|
77 |
|
(3 |
) |
123 |
|
(6 |
) | |||||
|
Total non-interest income |
|
7,383 |
|
6,664 |
|
7,420 |
|
14,047 |
|
14,487 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Salaries and employee benefits |
|
19,748 |
|
19,957 |
|
18,557 |
|
39,705 |
|
37,385 |
| |||||
|
Occupancy expense |
|
2,489 |
|
3,031 |
|
2,538 |
|
5,520 |
|
5,273 |
| |||||
|
Depreciation, amortization and maintenance |
|
2,295 |
|
2,282 |
|
2,397 |
|
4,577 |
|
4,813 |
| |||||
|
Marketing expense |
|
1,474 |
|
1,920 |
|
1,039 |
|
3,394 |
|
2,141 |
| |||||
|
Intangible amortization expense |
|
199 |
|
199 |
|
570 |
|
398 |
|
1,138 |
| |||||
|
FDIC insurance |
|
413 |
|
429 |
|
438 |
|
842 |
|
870 |
| |||||
|
Professional fees |
|
1,200 |
|
1,037 |
|
1,001 |
|
2,237 |
|
2,212 |
| |||||
|
Classified loan and other real estate owned related expense |
|
364 |
|
224 |
|
262 |
|
588 |
|
530 |
| |||||
|
Other |
|
7,105 |
|
7,278 |
|
7,412 |
|
14,382 |
|
15,219 |
| |||||
|
Total non-interest expense |
|
35,287 |
|
36,357 |
|
34,214 |
|
71,643 |
|
69,581 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income before income taxes |
|
15,555 |
|
12,509 |
|
14,213 |
|
28,064 |
|
26,088 |
| |||||
|
Income tax expense |
|
3,711 |
|
2,785 |
|
4,728 |
|
6,496 |
|
8,248 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
CONSOLIDATED NET INCOME |
|
$ |
11,844 |
|
$ |
9,724 |
|
$ |
9,485 |
|
$ |
21,568 |
|
$ |
17,840 |
|
|
Net loss attributable to noncontrolling interest |
|
(94 |
) |
(67 |
) |
— |
|
(161 |
) |
— |
| |||||
|
NET INCOME ATTRIBUTABLE TO BENEFICIAL BANCORP, INC. |
|
$ |
11,938 |
|
$ |
9,791 |
|
$ |
9,485 |
|
$ |
21,729 |
|
$ |
17,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
EARNINGS PER SHARE — Basic |
|
$ |
0.16 |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.30 |
|
$ |
0.24 |
|
|
EARNINGS PER SHARE — Diluted |
|
$ |
0.16 |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.30 |
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
DIVIDENDS DECLARED PER SHARE |
|
$ |
0.06 |
|
$ |
0.31 |
|
$ |
0.06 |
|
$ |
0.37 |
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average common shares outstanding — Basic |
|
70,621,336 |
|
70,903,395 |
|
70,630,256 |
|
70,761,586 |
|
70,337,425 |
| |||||
|
Average common shares outstanding — Diluted |
|
71,233,890 |
|
71,536,544 |
|
71,168,059 |
|
71,385,042 |
|
70,993,059 |
| |||||
BENEFICIAL BANCORP, INC. AND SUBSIDIARIES
Unaudited Selected Consolidated Financial and Other Data
(Dollars in thousands)
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
| |||||||||||||||||||||
|
|
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
| |||||||||||||||
|
|
|
Average |
|
Yield / |
|
Average |
|
Yield / |
|
Average |
|
Yield / |
|
Average |
|
Yield / |
|
Average |
|
Yield / |
| |||||
|
|
|
Balance |
|
Rate |
|
Balance |
|
Rate |
|
Balance |
|
Rate |
|
Balance |
|
Rate |
|
Balance |
|
Rate |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Investment securities: |
|
$ |
1,344,525 |
|
2.14 |
% |
$ |
1,395,784 |
|
2.06 |
% |
$ |
1,351,585 |
|
1.88 |
% |
$ |
1,370,013 |
|
2.10 |
% |
$ |
1,329,269 |
|
1.84 |
% |
|
Overnight investments |
|
512,857 |
|
1.78 |
% |
537,611 |
|
1.53 |
% |
342,350 |
|
1.05 |
% |
525,166 |
|
1.65 |
% |
302,202 |
|
0.95 |
% | |||||
|
Stock |
|
23,183 |
|
6.39 |
% |
23,213 |
|
8.14 |
% |
23,211 |
|
4.66 |
% |
23,198 |
|
7.26 |
% |
22,880 |
|
4.66 |
% | |||||
|
Other investment securities |
|
808,485 |
|
2.23 |
% |
834,960 |
|
2.24 |
% |
986,024 |
|
2.09 |
% |
821,649 |
|
2.24 |
% |
1,004,187 |
|
2.05 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loans and leases: |
|
4,020,939 |
|
4.50 |
% |
4,010,689 |
|
4.30 |
% |
4,065,523 |
|
4.14 |
% |
4,015,840 |
|
4.40 |
% |
4,064,344 |
|
4.12 |
% | |||||
|
Residential |
|
958,698 |
|
3.91 |
% |
945,042 |
|
3.92 |
% |
894,754 |
|
4.02 |
% |
951,908 |
|
3.91 |
% |
894,672 |
|
3.95 |
% | |||||
|
Commercial real estate |
|
1,686,332 |
|
4.61 |
% |
1,676,673 |
|
4.26 |
% |
1,681,138 |
|
4.08 |
% |
1,681,529 |
|
4.43 |
% |
1,662,032 |
|
4.07 |
% | |||||
|
Business and small business |
|
870,986 |
|
4.78 |
% |
854,654 |
|
4.66 |
% |
861,321 |
|
4.30 |
% |
862,863 |
|
4.72 |
% |
863,654 |
|
4.31 |
% | |||||
|
Personal |
|
504,923 |
|
4.74 |
% |
534,320 |
|
4.56 |
% |
628,310 |
|
4.23 |
% |
519,540 |
|
4.65 |
% |
643,986 |
|
4.20 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest earning assets |
|
$ |
5,365,464 |
|
3.90 |
% |
$ |
5,406,473 |
|
3.73 |
% |
$ |
5,417,108 |
|
3.57 |
% |
$ |
5,385,853 |
|
3.82 |
% |
$ |
5,393,613 |
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposits: |
|
$ |
3,590,481 |
|
0.59 |
% |
$ |
3,617,339 |
|
0.53 |
% |
$ |
3,647,270 |
|
0.49 |
% |
$ |
3,603,836 |
|
0.56 |
% |
$ |
3,650,952 |
|
0.48 |
% |
|
Savings |
|
1,303,878 |
|
0.45 |
% |
1,292,482 |
|
0.34 |
% |
1,306,201 |
|
0.34 |
% |
1,298,211 |
|
0.40 |
% |
1,298,347 |
|
0.34 |
% | |||||
|
Money market |
|
412,282 |
|
0.47 |
% |
419,881 |
|
0.37 |
% |
443,858 |
|
0.34 |
% |
416,061 |
|
0.42 |
% |
446,136 |
|
0.34 |
% | |||||
|
Demand |
|
958,581 |
|
0.25 |
% |
938,808 |
|
0.25 |
% |
913,309 |
|
0.24 |
% |
948,749 |
|
0.25 |
% |
915,150 |
|
0.24 |
% | |||||
|
Demand - municipals |
|
106,638 |
|
0.16 |
% |
120,453 |
|
0.20 |
% |
122,547 |
|
0.22 |
% |
113,508 |
|
0.18 |
% |
125,489 |
|
0.20 |
% | |||||
|
Total core deposits |
|
2,781,379 |
|
0.37 |
% |
2,771,624 |
|
0.31 |
% |
2,785,915 |
|
0.30 |
% |
2,776,529 |
|
0.34 |
% |
2,785,122 |
|
0.30 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Time deposits |
|
809,102 |
|
1.34 |
% |
845,715 |
|
1.24 |
% |
861,355 |
|
1.08 |
% |
827,307 |
|
0.56 |
% |
865,830 |
|
1.05 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Borrowings |
|
515,000 |
|
1.70 |
% |
535,403 |
|
1.75 |
% |
540,429 |
|
1.73 |
% |
525,145 |
|
1.72 |
% |
531,891 |
|
1.77 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total interest bearing liabilities |
|
$ |
4,105,481 |
|
0.73 |
% |
$ |
4,152,742 |
|
0.69 |
% |
$ |
4,187,699 |
|
0.65 |
% |
$ |
4,128,981 |
|
0.71 |
% |
$ |
4,182,843 |
|
0.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Non-interest bearing deposits |
|
555,273 |
|
|
|
537,107 |
|
|
|
530,046 |
|
|
|
546,240 |
|
|
|
518,137 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest margin |
|
|
|
3.34 |
% |
|
|
3.20 |
% |
|
|
3.07 |
% |
|
|
3.28 |
% |
|
|
3.06 |
% | |||||
ASSET QUALITY INDICATORS
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
| ||||
|
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Non-performing assets: |
|
|
|
|
|
|
|
|
| ||||
|
Non-accruing loans |
|
$ |
20,886 |
|
$ |
23,292 |
|
$ |
20,521 |
|
$ |
21,164 |
|
|
Accruing loans past due 90 days or more |
|
22,204 |
|
21,310 |
|
14,152 |
|
16,111 |
| ||||
|
Total non-performing loans |
|
$ |
43,090 |
|
$ |
44,602 |
|
$ |
34,673 |
|
$ |
37,275 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Real estate owned |
|
102 |
|
204 |
|
189 |
|
300 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total non-performing assets |
|
$ |
43,192 |
|
$ |
44,806 |
|
$ |
34,862 |
|
$ |
37,575 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Non-performing loans to total loans and leases |
|
1.07 |
% |
1.11 |
% |
0.86 |
% |
0.91 |
% | ||||
|
Non-performing assets to total assets |
|
0.75 |
% |
0.77 |
% |
0.60 |
% |
0.64 |
% | ||||
|
Non-performing assets less accruing government guaranteed student loans past due 90 days or more to total assets |
|
0.36 |
% |
0.41 |
% |
0.36 |
% |
0.37 |
% | ||||
|
ALLL to total loans and leases |
|
1.07 |
% |
1.08 |
% |
1.07 |
% |
1.06 |
% | ||||
|
ALLL to non-performing loans |
|
99.95 |
% |
96.65 |
% |
124.79 |
% |
116.30 |
% | ||||
|
ALLL to non-performing loans, excluding government guaranteed student loans |
|
206.21 |
% |
185.08 |
% |
210.84 |
% |
204.83 |
% | ||||
Key performance ratios (annualized) are as follows for the three and six months ended (unaudited):
|
|
|
For the Three Months Ended |
|
For the Six Months |
| ||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
| ||
|
|
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
PERFORMANCE RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
(annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.83 |
% |
0.68 |
% |
(0.25 |
)% |
0.75 |
% |
0.62 |
% |
|
Return on average assets (excluding tax reform act impact) |
|
0.83 |
% |
0.68 |
% |
0.65 |
% |
0.75 |
% |
0.62 |
% |
|
Return on average equity |
|
4.67 |
% |
3.89 |
% |
(1.38 |
)% |
4.28 |
% |
3.52 |
% |
|
Return on average equity (excluding tax reform act impact) |
|
4.67 |
% |
3.89 |
% |
3.63 |
% |
4.28 |
% |
3.52 |
% |
|
Net interest margin |
|
3.34 |
% |
3.20 |
% |
3.28 |
% |
3.28 |
% |
3.06 |
% |
|
Net charge-off ratio |
|
0.17 |
% |
0.12 |
% |
0.10 |
% |
0.14 |
% |
0.06 |
% |
|
Efficiency ratio |
|
67.20 |
% |
72.91 |
% |
68.20 |
% |
69.98 |
% |
71.72 |
% |
|
Efficiency ratio (excluding merger & restructuring charges) |
|
67.20 |
% |
72.91 |
% |
69.93 |
% |
69.98 |
% |
71.72 |
% |
|
Tangible common equity |
|
15.19 |
% |
15.02 |
% |
15.33 |
% |
15.19 |
% |
15.17 |
% |
|
Tangible common equity (excluding tax reform act impact) |
|
15.19 |
% |
15.02 |
% |
15.53 |
% |
15.19 |
% |
15.17 |
% |