Beneficial Mutual Bancorp, Inc. Announces Quarter and Year Ended December 31, 2011 Results

PHILADELPHIA--(BUSINESS WIRE)-- Beneficial Mutual Bancorp, Inc. ("Beneficial") (NASDAQGS: BNCL), the parent company of
Beneficial Bank (the "Bank" or the "Company"), today announced its financial results for the quarter and year ended December
31, 2011.
Beneficial recorded net income of $5.9 million, or $0.08 per share, for the quarter ended December 31, 2011, compared to a net loss of $356 thousand, or $0.00 per share, for the quarter ended December 31, 2010. Net income for the year ended December 31, 2011 totaled $11.0 million, or $0.14 per share, compared to a net loss of $9.0 million, or $(0.12) per share, for the year ended December 31, 2010. Net income for the year ended December 31, 2011 included $5.1 million of restructuring charges related to the implementation of our expense management reduction program during the first quarter of 2011. Net loss for the year ended December 31, 2010 was driven by a provision for loan losses of $70.2 million due to specific reserves required for commercial real estate loans.
During the quarter ended December 31, 2011, Beneficial continued to benefit from the impact of the expense management reduction program that was implemented in the first quarter of 2011, as total non-interest expense decreased $3.9 million to
$29.2 million for the quarter ended December 31, 2011 compared to $33.1 million for the fourth quarter of 2010. For the year ended, December 31, 2011, non-interest expense decreased $7.7 million to $120.7 million compared to $128.4 million for
2010. The year ended December 31, 2011 included a $5.1 million restructuring charges related to our expense reduction program implemented during the first quarter.
Credit costs have decreased from the prior year but continue to have a significant impact on our financial results. During the quarter and year ended December 31, 2011, the Bank recorded a provision for credit losses in the amount of $8.5 million and
$37.5 million, respectively, compared to $8.0 million and $70.2 million for the quarter and year ended December 31, 2010, respectively. Although we have seen some improvement in our credit quality with non-performing assets decreasing $9.4 million during the fourth quarter of 2011 to $154.1 million, as compared to $163.5 million at September 30, 2011, we continue to experience high charge-off levels. During the year we continued to build our reserves and, at December 31, 2011, the Company's allowance for loan losses totaled $54.2 million, or 2.10% of total loans, compared to $45.4 million, or 1.62% of total loans, at December 31, 2010. We expect that the provision for credit losses will remain elevated in 2012 as we continue to
focus on reducing our non-performing asset levels.
During the year ended December 31, 2011, deposits decreased $347.5 million primarily due to the planned run-off of higher cost, non-relationship-based municipal deposits. For the year, planned municipal deposit run-off was $393.5 million which has helped stabilize net interest margin and improve our capital position. Loans decreased $111.3 million and $220.3 million, respectively, during the quarter and year ended December 31, 2011. Approximately 31.4% of the decrease during the year ended December 31, 2011 is related to our residential loan portfolio. In 2011, we established a new mortgage banking team and began to sell all agency eligible mortgage loans originated to better position the balance sheet for interest rate risk. During the quarter and year ended December 31, 2011, we recorded non-interest income of approximately $1.1 million and $1.2 million, respectively, related to these loan sales.
Gerard Cuddy, Beneficial's President and CEO, stated, "During the fourth quarter of 2011, we continued to see improved profitability and capital levels as a result of the initiatives we have put in place during the year. We are encouraged by the decrease in our non-performing assets during the quarter and are focused on reducing our non-performing asset levels in
2012. During the quarter we announced our acquisition of St. Edmond's Federal Savings Bank. This acquisition will increase our customer base and market share in our footprint and demonstrates Beneficial's commitment to growth in the Philadelphia market. We expect the transaction to close sometime in the second quarter of 2012."
Highlights for the quarter and year ended December 31, 2011: