Beneficial Bancorp, Inc. Announces First Quarter Results and Cash Dividend to Shareholders

PHILADELPHIA, April 21, 2017 (GLOBE NEWSWIRE) — Beneficial Bancorp, Inc. (“Beneficial”) (NASDAQ:BNCL), the parent company of Beneficial Bank (the “Bank”), today announced its financial results for the quarter ended March 31, 2017.  Beneficial recorded net income of $8.4 million, or $0.11 per diluted share, for the quarter ended March 31, 2017 compared to net income of $5.0 million, or $0.07 per diluted share, for the quarter ended March 31, 2016.
On April 20, 2017, Beneficial declared a cash dividend of 6 cents per share, payable on or after May 11, 2017, to common shareholders of record at the close of business on May 1, 2017.Highlights for the quarter ended March 31, 2017 are as follows:Net interest margin increased to 3.04% for the quarter ended March 31, 2017 compared to 2.87% for the same period in 2016.  Our net interest margin has benefited from organic loan growth, the impact of the Conestoga Bank acquisition completed during the second quarter of 2016, and continued improvement in the mix of our balance sheet from a year ago.For the quarter ended March 31, 2017, net interest income increased $8.6 million, or 26.5%, to $40.8 million compared to $32.2 million for the same period in 2016, primarily due to the Conestoga Bank acquisition and strong organic loan growth.For the quarter ended March 31, 2017, our loan portfolio increased $45.7 million, or 1.1% (4.5% annualized growth) due primarily to increases in our commercial real estate portfolio.
 
During the quarter ended March, 31, 2017, the Company recorded a $668 thousand net gain on the sale of $7.3 million of the guaranteed portion of SBA loans.
 
Charge-offs continue to remain low.  Net charge-offs for the quarter ended March 31, 2017 totaled $766 thousand, or 8 basis points annualized of average loans, compared to net charge-offs of $267 thousand, or 3 basis points annualized of average loans, in the same period in the prior year.
 
For the quarter ended March 31, 2017, our deposits increased $60.7 million, or 1.5%, due primarily to a $40.6 million increase in savings and club accounts.
 
We remain focused on deploying our capital.  Our tangible capital to tangible assets decreased to 15.07% at March 31, 2017 compared to 19.64% at March 31, 2016.  The decrease in this ratio can be attributed to share repurchases and cash dividends, as well as the impact of the acquisition of Conestoga Bank.  Tangible book value per share totaled $11.20 at March 31, 2017.Gerard Cuddy, Beneficial’s President and CEO, stated “Despite high business and consumer optimism, we saw some slow down in loan demand during the first quarter that we believe is related to some hesitancy of borrowers until there is greater clarity on tax, trade, and infrastructure spending policies.  Our results during the quarter were benefitted from the successful integration of Conestoga Bank and continued organic loan growth.  Our focus remains on employee engagement, a superior customer experience, prudent capital management and organic growth to continue to improve Beneficial’s financial performance.”Balance Sheet
Total assets increased $123.2 million, or 2.1%, to $5.86 billion at March 31, 2017 compared to $5.74 billion at December 31, 2016.  The increase in total assets was primarily due to an increase in cash and cash equivalents and loan growth, partially offset by a decline in investment securities.