Beneficial Bancorp Inc.

CIK:0001615418|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
INTEREST INCOME:
Interest and fees on loans and leases	$ 179,821	$ 172,404	$ 147,690
Interest on overnight investments	12,769	4,330	935
Interest and dividends on investment securities:
Taxable	19,116	21,058	24,002
Tax-exempt	72	76	1,166
Total interest income	211,778	197,868	173,793
Interest on deposits:
Interest-bearing checking accounts	2,746	2,442	2,218
Money market and savings deposits	8,156	5,981	5,751
Time deposits	11,493	9,698	7,722
Total	22,395	18,121	15,691
Interest on borrowed funds	9,019	9,879	7,185
Total interest expense	31,414	28,000	22,876
Net interest income	180,364	169,868	150,917
Provision for loan and lease losses	4,581	3,118	485
Net interest income after provision for loan and lease losses	175,783	166,750	150,432
NON-INTEREST INCOME:
Insurance and advisory commission and fee income	4,681	7,124	6,719
Service charges and other income	19,207	19,543	18,421
Mortgage banking and SBA income	1,587	2,105	854
Net gain on sale of insurance agency	3,297
Net gain (loss) on sale of investment securities	98	(7)	1,811
Total non-interest income	28,870	28,765	27,805
NON-INTEREST EXPENSE:
Salaries and employee benefits	78,253	75,225	68,515
Occupancy expense	10,580	10,336	9,786
Depreciation, amortization and maintenance	9,244	9,507	9,942
Marketing expense	4,897	4,684	4,404
Intangible amortization expense	696	1,563	2,190
FDIC Insurance	1,658	1,744	2,055
Merger and restructuring charges	3,109		8,765
Professional fees	4,360	4,606	5,342
Classified loan & other real estate owned related expense	1,274	1,136	1,103
Other	27,191	29,996	27,022
Total non-interest expense	141,262	138,797	139,124
Income before income taxes	63,391	56,718	39,113
Income tax expense	16,156	32,794	13,644
CONSOLIDATED NET INCOME	47,235	23,924	25,469
Less: Net loss attributable to noncontrolling interest	(609)	(8)
NET INCOME ATTRIBUTABLE TO BENEFICIAL BANCORP INC.	$ 47,844	$ 23,932	$ 25,469
NET EARNINGS PER SHARE - Basic (in dollars per share)	$ 0.66	$ 0.33	$ 0.34
NET EARNINGS PER SHARE - Diluted (in dollars per share)	0.65	0.32	0.34
DIVIDENDS DECLARED PER SHARE	$ 0.49	$ 0.24	$ 0.12
Average common shares outstanding - Basic (in shares)	70,912,191	70,574,037	71,902,158
Average common shares outstanding - Diluted (in shares)	71,517,248	71,301,286	72,632,437

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
OPERATING ACTIVITIES:
Consolidated net income	$ 47,235	$ 23,924	$ 25,469
Net loss attributable to noncontrolling interest	(609)	(8)
Net income attributable to Beneficial Bancorp, Inc.	47,844	23,932	25,469
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	4,581	3,118	485
Depreciation and amortization	5,768	6,132	6,482
Intangible amortization and impairment	696	1,563	2,190
Net (gain) loss on sale of investments	(98)	7	(1,811)
Accretion of discount on investments	(123)	(197)	(369)
Amortization of premium on investments	2,687	3,891	5,633
Gain on sale of loans	(1,359)	(1,917)	(305)
Accretion of acquired loans and lease marks	(2,565)	(4,353)	(1,112)
Deferred income taxes	906	20,996	6,064
Net gain on sale of insurance agency	(3,297)
Net loss from disposition of premises and equipment	61	417	987
Proceeds from the sale of fixed assets held for sale		524	535
Other real estate impairment		146	16
Net gain on sale of other real estate	(77)	(24)	(180)
Amortization of KSOP	4,279	4,246	3,771
(Increase) decrease in bank owned life insurance	(863)	492	(1,507)
Stock based compensation expense	13,954	14,661	8,888
Origination of loans held for sale	(8,576)	(15,823)	(21,507)
Proceeds from sale of loans	35,608	37,230	19,836
Changes in assets and liabilities:
Accrued interest receivable	(1,239)	(877)	(1,216)
Accrued interest payable	33	276	1,034
Income taxes receivable/payable	627	(839)	(808)
Other liabilities	(1,462)	(3,761)	5,395
Other assets	2,762	841	4,072
Net cash provided by operating activities	100,147	90,681	62,042
INVESTING ACTIVITIES:
Loans originated or acquired	(1,120,890)	(1,195,889)	(1,418,712)
Principal repayment on loans	1,231,906	1,153,843	867,940
Purchases of investment securities available for sale		(4,000)	(7,500)
Proceeds from sales of investment securities available for sale	511		61,248
Proceeds from maturities, calls or repayments of investment securities available for sale	61,168	137,690	206,637
Purchases of investment securities held to maturity	(500)	(40,031)	(23,808)
Proceeds from maturities, calls or repayments of investment securities held to maturity	112,637	103,785	115,329
Net (purchases) sales of money market and mutual funds	(40,164)	5,447	(565)
Redemption (purchase) of Federal Home Loan Bank stock	28	(1,979)	(12,138)
Proceeds from the sale of other securities			2,584
Acquisition of Conestoga, net of cash acquired			(79,610)
Proceeds from sale of insurance agency	14,059
Purchase of equity method investment	(3,000)
Proceeds from sale other real estate owned	327	959	2,116
Purchases of premises and equipment	(4,519)	(1,678)	(3,328)
Proceeds from sale of premises and equipment	118		21
Cash (used in) provided by other investing activities	(239)	832	432
Net cash provided by (used in) investing activities	251,442	158,979	(289,354)
FINANCING ACTIVITIES:
Increase in borrowed funds	30,000	135,000	495,993
Repayment of borrowed funds	(55,439)	(84,984)	(195,975)
Net increase in checking, savings and demand accounts	52,535	10,119	114,505
Net (decrease) increase in time deposits	(30,430)	(17,814)	3,374
Cash dividend paid to stockholders	(35,697)	(17,555)	(8,800)
Change in noncontrolling interest	(434)	592
Proceeds from the exercise of stock options	3,257	13,198	4,683
Excess tax benefit related to stock based compensation awards			361
Cash paid to tax authorities related to stock based compensation awards	(5,963)	(7,297)	(1,051)
Purchase of treasury stock	(14,558)	(10,350)	(132,652)
Net cash (used in) provided by financing activities	(56,729)	20,909	280,438
NET INCREASE IN CASH AND CASH EQUIVALENTS	294,860	270,569	53,126
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	557,615	287,046	233,920
CASH AND CASH EQUIVALENTS, END OF YEAR	852,475	557,615	287,046
SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND NON-CASH INFORMATION:
Cash payments for interest	31,381	27,724	21,842
Cash payments for income taxes	14,623	12,637	7,771
Transfers of loans to other real estate owned	$ 704	$ 189	363
Contribution to pension plan			351
Acquisition of noncash assets and liabilities
Assets acquired			649,880
Liabilities acquired			$ 589,255

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
CASH AND CASH EQUIVALENTS:
Cash and due from banks	$ 60,231	$ 45,048
Overnight investments	792,244	512,567
Total cash and cash equivalents	852,475	557,615
INVESTMENT SECURITIES:
Available-for-sale, at fair value (amortized cost of $287,162 and $309,333 at December 31, 2018 and 2017, respectively)	285,622	310,308
Held-to-maturity (estimated fair value of $414,451 and $533,425 at December 31, 2018 and 2017, respectively)	424,571	537,302
Federal Home Loan Bank stock, at cost	23,182	23,210
Total investment securities	733,375	870,820
LOANS AND LEASES:	3,894,605	4,034,130
Allowance for loan and lease losses	(43,262)	(43,267)
Net loans and leases	3,851,343	3,990,863
ACCRUED INTEREST RECEIVABLE	18,751	17,512
BANK PREMISES AND EQUIPMENT, Net	67,488	70,573
OTHER ASSETS:
Goodwill	159,671	169,002
Bank owned life insurance	81,035	80,172
Other intangibles	1,330	2,884
Other assets	41,457	39,387
Total other assets	283,493	291,445
TOTAL ASSETS	5,806,925	5,798,828
Deposits:
Non-interest-bearing deposits	557,535	563,185
Interest-bearing deposits	3,615,063	3,587,308
Total deposits	4,172,598	4,150,493
Borrowed funds	515,000	540,439
Other liabilities	69,177	73,006
Total liabilities	4,756,775	4,763,938
COMMITMENTS AND CONTINGENCIES (Note 22)
STOCKHOLDERS' EQUITY:
Preferred Stock - $.01 par value; 100,000,000 shares authorized, None issued or outstanding as of December 31, 2018 and December 31, 2017
Common Stock - $.01 par value 500,000,000 shares authorized, 84,795,840 and 84,503,580 issued and 74,791,418 and 75,829,537 outstanding, as of December 31, 2018 and 2017, respectively	848	845
Additional paid-in capital	818,886	799,658
Unearned common stock held by employee savings and stock ownership plan	(24,610)	(27,078)
Retained earnings (partially restricted)	422,875	405,497
Accumulated other comprehensive loss	(28,780)	(26,127)
Treasury Stock at cost, 10,004,422 shares and 8,674,043 shares at December 31, 2018 and 2017, respectively	(139,227)	(118,497)
Total Beneficial Bancorp Inc. stockholders' equity	1,049,992	1,034,298
Noncontrolling Interest	158	592
Total Equity	1,050,150	1,034,890
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 5,806,925	$ 5,798,828