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:
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