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Beneficial Bancorp, Inc. Announces First Quarter Results

PHILADELPHIA, Apr 22, 2016 (GLOBE NEWSWIRE via COMTEX) --

Beneficial Bancorp, Inc. ("Beneficial") BNCL, -0.58% the parent company of Beneficial Bank (the "Bank"), today announced its financial results for the quarter ended March 31, 2016. Beneficial recorded net income of $5.0 million, or $0.07 per diluted share, for the quarter ended March 31, 2016 compared to net income of $5.3 million, or $0.07 per diluted share, for the quarter ended March 31, 2015.

Highlights for the quarter ended March 31, 2016 are as follows:

  • Net interest income increased $2.1 million, or 7.0%, to $32.2 million for the quarter ended March 31, 2016 compared to $30.1 million for the same period in 2015, primarily due to the deployment of the proceeds from the Bank's second-step conversion, which was completed in January 2015, into the loan portfolio.

  • Our net interest margin was 2.87% for the first quarter of 2016 compared to 2.84% for the fourth quarter of 2015 and 2.75% for the first quarter of 2015.

  • For the quarter ended March 31, 2016, our loan portfolio increased $210.3 million, or 7.2%, due to organic growth primarily in our commercial loan portfolio of $92.8 million as well as a $117.5 million participation in a portfolio of multi-family loans.

  • Net charge-offs decreased $1.9 million, or 87.7%, to $267 thousand, or 0.03% of average loans during the quarter ended March 31, 2016, compared to $2.2 million, or 0.31% of average loans during the quarter ended December 31, 2015. Our ratio of non-performing loans to total assets, excluding government guaranteed student loans, improved to 0.29% at March 31, 2016 compared to 0.31% at December 31, 2015.

  • Core deposits increased $55.3 million, or 2.0%, to $2.87 billion at March 31, 2016 compared to $2.81 billion at December 31, 2015.

  • Our loans-to-deposits ratio increased to 89.8% at March 31, 2016 from 85.2% at December 31, 2015 which helped stabilize net interest margin.

  • Our capital levels continue to remain strong with tangible capital to tangible assets totaling 19.64% at March 31, 2016 compared to 21.04% at December 31, 2015. Tangible book value per share totaled $12.00 at March 31, 2016.

  • We announced a stock repurchase program that allows us to repurchase 10% of our outstanding stock or 8,291,859 shares. We repurchased 6,283,435 during the quarter ended March 31, 2016 at an average price per share of $12.93 or 1.08 times tangible book value per share.

On April 15, 2016, Beneficial announced the completion of its acquisition of Conestoga Bank. The results of Conestoga Bank's operations will be included in Beneficial's financial statements beginning on April 15, 2016. During the second quarter of 2016, Beneficial expects to record merger and other restructuring charges of approximately $8.0 million, pre-tax, as a result of the completion of the transaction.

In connection with the closing of the Conestoga transaction, the Company announced the implementation of an expense management reduction program following a comprehensive review of the Company's and Bank's operating cost structure. Under the expense management reduction program, the Bank will reduce its salary and benefits expense by approximately 11% during the second quarter of 2016. Employees whose positions are eliminated as a result of the reduction in force will receive severance packages, which will include outplacement services. During the second quarter of 2016, the Company expects to record a charge of approximately $1.2 million, pre-tax, as a result of the expense management reduction program.

"We are pleased with our performance during the quarter" said Gerard Cuddy, Beneficial's President and CEO. "We are excited to have completed our acquisition of Conestoga Bank on April 14, 2016. We believe this acquisition, which will increase our total assets to approximately $5.5 billion, will provide even greater strength, size and stability for our customers, employees, shareholders and the communities we serve. The continued deployment of the second-step conversion proceeds into the loan portfolio has also improved our balance sheet mix and increased our net interest income levels. Our lending teams have been able to organically grow our loan portfolio and we continue to increase our core deposits in our markets. Our focus remains on a superior customer experience, management of expenses and prudent capital management to improve the financial performance of our organization."

Balance Sheet
Total assets decreased $12.0 million, or 0.2%, to $4.81 billion at March 31, 2016 compared to $4.83 billion at December 31, 2015. Cash and cash equivalents decreased $122.2 million to $111.8 million at March 31, 2016 from $233.9 million at December 31, 2015. The decrease in cash and cash equivalents was primarily driven by the deployment of a portion of the second-step conversion proceeds to support organic loan growth, the participation in a portfolio of multi-family loans during the quarter as well as repurchases of our common stock.

Investments decreased $95.8 million, or 7.0%, to $1.3 billion at March 31, 2016 compared to $1.4 billion at December 31, 2015, as we continued to focus on improving our balance sheet mix by reducing the percentage of our assets in cash and investments and growing our loan portfolio. 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 increased $210.3 million, or 7.2%, to $3.15 billion at March 31, 2016 from $2.94 billion at December 31, 2015. The increase in loans was due to $92.8 million in organic growth primarily in commercial real estate, commercial construction, and commercial business loan portfolios as well as a $117.5 million participation in a portfolio of multi-family loans.

Commercial loans include shared national credits, which are participations in loans or loan commitments of at least $20.0 million that are shared by three or more banks. The shared national credit loans are typically variable rate with terms ranging from one to seven years. At March 31, 2016, shared national credits totaled $227.2 million compared to $222.4 million at December 31, 2015. All of these loans were classified as pass rated as of March 31, 2016 as all payments are current and the loans are performing in accordance with their contractual terms.

Deposits increased $58.6 million, or 1.7%, to $3.51 billion at March 31, 2016 from $3.45 billion at December 31, 2015. The $58.6 million increase in deposits during the quarter ended March 31, 2016 was primarily due to increases of $35.8 million and $34.9 million in savings and club deposits and interest business checking deposits, respectively, partially offset by a $14.4 million decrease in municipal deposits and a $13.8 million decrease in interest retail checking deposits.

Stockholders' equity decreased $69.0 million, or 6.2%, to $1.05 billion at March 31, 2016...


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