null (BNCL, Financial) filed Quarterly Report for the period ended 2009-03-31.
The Company 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 for more than 150 years. The Bank is the oldest and largest bank headquartered in Philadelphia Pennsylvania with 72 offices in the greater Philadelphia and Southern New Jersey regions. Insurance services are offered through Beneficial Insurance Services LLC and wealth management services are offered through Beneficial Advisors LLC both wholly owned subsidiaries of the Bank. null has a market cap of $814 million; its shares were traded at around $9.92 with a P/E ratio of 58.4 and P/S ratio of 3.8.
Total assets increased $47.4 million, or 1.2%, to $4.0 billion at March 31, 2009. The increase in total assets was primarily due to increases in cash and cash equivalents of $28.9 million and an increase in total loans outstanding of $119.7 million, partially offset by a decrease of $84.4 million in investment securities for the first quarter of 2009. Total deposits increased $177.3 million, or 6.5%, to $2.9 billion at March 31, 2009 compared to $2.7 billion at December 31, 2008. The largest contributor to this increase was growth in core deposits of $200.0 million to $1.9 billion at March 31, 2009 from $1.7 billion at December 31, 2008. Both interest bearing and non-interest bearing deposits grew during the first quarter of 2009. Interest bearing deposits increased $159.8 million, or 6.4%, to $2.7 billion and non-interest bearing deposits increased $17.5 million to $243.8 million from $226.4 million at December 31, 2008. Stockholders equity increased $9.8 million, or 1.6%, to $620.3 million at March 31, 2009 compared to $610.5 million at December 31, 2008. The increase in stockholders equity resulted primarily from earnings and a rise in accumulated other comprehensive income of $4.2 million related to an increase in unrealized gains in available-for-sale securities.
General β The Company recorded net income of $5.1 million, or $0.07 per share, for the three months ended March 31, 2009, compared to net income of $6.1 million, or $0.08 per share, for the same period in 2008.
Net Interest Income β The Company s net interest income increased $2.4 million, or 8.7%, to $29.5 million for the three months ended March 31, 2009 from $27.1 million for the same period in 2008. Total interest income decreased $0.7 million to $47.5 million for the three months ended March 31, 2009 from $48.2 million for the same period in 2008. This was due to a decline in the yield on average interest earning assets of 68 basis points from 5.88% at March 31, 2008 to 5.20% at March 31, 2009. Total interest expense decreased $3.1 million to $18.0 million for the three months ended March 31, 2009 from $21.1 million for the same period in 2008. This was due to a decrease of 82 basis points in the cost of interest bearing liabilities to 2.37% for the three months ended March 31, 2009 compared to 3.12% for the same period in 2008, partially offset by an increase in average interest bearing liabilities of $0.4 billion to $3.1 billion for the three months ended March 31, 2009 from $2.7 billion for the same period in 2008.
Non-interest Income β Non-interest income increased $0.7 million, or 9.3%, to $8.0 million for the three months ended March 31, 2009, compared to the same period in 2008. The increase in non-interest income was primarily due to an increase in gains on sale of investment securities available for sale, partially offset by an impairment charge on securities available for sale during the first quarter of 2009. This impairment charge was a result of the weakened condition of the market for the common stocks of financial institutions and the evaluation of the near term prospects of the issuers in relation to the severity of the decline. As a result, the Company recorded a charge related to the value of common equity securities of various financial services companies that were deemed to be other-than-temporarily-impaired of $1.2 million. No impairment charge was recorded during the first quarter of 2008. Insurance commission income decreased during the first quarter of 2009 to $2.7 million compared to $3.3 million during the first quarter of 2008. This decrease was primarily a result of a change in billing structure for policies from annual to monthly billings.
Non-interest Expense β Non-interest expense increased $2.5 million, or 9.8%, to $28.4 million during the three months ended March 31, 2009 compared to $25.9 million during the same period in 2008. The increase was primarily due to an increase in salaries and employee benefits of $1.3 million and an increase in advertising expense of $0.6 million. Amortization of intangibles expense decreased $0.9 million, to $0.9 million for the three months ended March 31, 2009 from $1.7 million during the same period in 2008. The core deposit intangible is being amortized on an accelerated basis resulting in a decrease in amortization expense.
Read the The complete ReportBNCL is in the portfolios of John Keeley of Keeley Fund Management.
The Company 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 for more than 150 years. The Bank is the oldest and largest bank headquartered in Philadelphia Pennsylvania with 72 offices in the greater Philadelphia and Southern New Jersey regions. Insurance services are offered through Beneficial Insurance Services LLC and wealth management services are offered through Beneficial Advisors LLC both wholly owned subsidiaries of the Bank. null has a market cap of $814 million; its shares were traded at around $9.92 with a P/E ratio of 58.4 and P/S ratio of 3.8.
Highlight of Business Operations:
Allowance for Loan Losses β The allowance for loan losses is the amount estimated by management as necessary to cover losses inherent in the loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses, which is charged to income. Determining the amount of the allowance for loan losses necessarily involves a high degree of judgment. Among the material estimates required to establish the allowance are: overall economic conditions; value of collateral; strength of guarantors; loss exposure at default; the amount and timing of future cash flows on impacted loans; and determination of loss factors to be applied to the various elements of the portfolio. All of these estimates are subject to significant change. The Company estimates that a 10 percent increase in the loss factors used on the loan portfolio would increase the allowance for loan losses at March 31, 2009 by approximately $2.8 million, of which $0.4 million would relate to consumer loans, $2.1 million to commercial loans and $0.3 million to residential mortgage loans. These sensitivity analyses do not represent management s expectations of the increase in loss factors, but are provided as hypothetical scenarios to assess the sensitivity of the allowance for loan losses to change in key inputs. We believe the loss factors currently in use are appropriate in order to evaluate the allowance for loan losses at the balance sheet dates. The process of determining the level of the allowance for loan losses requires a high degree of judgment. It is possible that others, given the same information, may at any point in time reach different reasonable conclusions.Total assets increased $47.4 million, or 1.2%, to $4.0 billion at March 31, 2009. The increase in total assets was primarily due to increases in cash and cash equivalents of $28.9 million and an increase in total loans outstanding of $119.7 million, partially offset by a decrease of $84.4 million in investment securities for the first quarter of 2009. Total deposits increased $177.3 million, or 6.5%, to $2.9 billion at March 31, 2009 compared to $2.7 billion at December 31, 2008. The largest contributor to this increase was growth in core deposits of $200.0 million to $1.9 billion at March 31, 2009 from $1.7 billion at December 31, 2008. Both interest bearing and non-interest bearing deposits grew during the first quarter of 2009. Interest bearing deposits increased $159.8 million, or 6.4%, to $2.7 billion and non-interest bearing deposits increased $17.5 million to $243.8 million from $226.4 million at December 31, 2008. Stockholders equity increased $9.8 million, or 1.6%, to $620.3 million at March 31, 2009 compared to $610.5 million at December 31, 2008. The increase in stockholders equity resulted primarily from earnings and a rise in accumulated other comprehensive income of $4.2 million related to an increase in unrealized gains in available-for-sale securities.
General β The Company recorded net income of $5.1 million, or $0.07 per share, for the three months ended March 31, 2009, compared to net income of $6.1 million, or $0.08 per share, for the same period in 2008.
Net Interest Income β The Company s net interest income increased $2.4 million, or 8.7%, to $29.5 million for the three months ended March 31, 2009 from $27.1 million for the same period in 2008. Total interest income decreased $0.7 million to $47.5 million for the three months ended March 31, 2009 from $48.2 million for the same period in 2008. This was due to a decline in the yield on average interest earning assets of 68 basis points from 5.88% at March 31, 2008 to 5.20% at March 31, 2009. Total interest expense decreased $3.1 million to $18.0 million for the three months ended March 31, 2009 from $21.1 million for the same period in 2008. This was due to a decrease of 82 basis points in the cost of interest bearing liabilities to 2.37% for the three months ended March 31, 2009 compared to 3.12% for the same period in 2008, partially offset by an increase in average interest bearing liabilities of $0.4 billion to $3.1 billion for the three months ended March 31, 2009 from $2.7 billion for the same period in 2008.
Non-interest Income β Non-interest income increased $0.7 million, or 9.3%, to $8.0 million for the three months ended March 31, 2009, compared to the same period in 2008. The increase in non-interest income was primarily due to an increase in gains on sale of investment securities available for sale, partially offset by an impairment charge on securities available for sale during the first quarter of 2009. This impairment charge was a result of the weakened condition of the market for the common stocks of financial institutions and the evaluation of the near term prospects of the issuers in relation to the severity of the decline. As a result, the Company recorded a charge related to the value of common equity securities of various financial services companies that were deemed to be other-than-temporarily-impaired of $1.2 million. No impairment charge was recorded during the first quarter of 2008. Insurance commission income decreased during the first quarter of 2009 to $2.7 million compared to $3.3 million during the first quarter of 2008. This decrease was primarily a result of a change in billing structure for policies from annual to monthly billings.
Non-interest Expense β Non-interest expense increased $2.5 million, or 9.8%, to $28.4 million during the three months ended March 31, 2009 compared to $25.9 million during the same period in 2008. The increase was primarily due to an increase in salaries and employee benefits of $1.3 million and an increase in advertising expense of $0.6 million. Amortization of intangibles expense decreased $0.9 million, to $0.9 million for the three months ended March 31, 2009 from $1.7 million during the same period in 2008. The core deposit intangible is being amortized on an accelerated basis resulting in a decrease in amortization expense.
Read the The complete ReportBNCL is in the portfolios of John Keeley of Keeley Fund Management.
