x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended June
30, 2009
|
|
OR
|
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
BENEFICIAL
MUTUAL BANCORP, INC.
|
||
(Exact
name of registrant as specified in its charter)
|
United
States
|
56-2480744
|
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification
No.)
|
510
Walnut Street, Philadelphia, Pennsylvania
|
19106
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(215)
864-6000
|
||
(Registrant’s
telephone number, including area code)
|
Not
Applicable
|
||
(Former
name, former address and former fiscal year, if changed since last
report)
|
Large Accelerated
Filer o
|
Accelerated Filer
x
|
|
Non-Accelerated
Filer o
|
Smaller Reporting
Company o
|
|
(Do
not check if a smaller reporting company)
|
Page
No.
|
||||
Part
I. Financial Information
|
||||
Item
1.
|
Financial
Statements (unaudited)
|
|||
Unaudited
Consolidated Statements of Financial Condition as of June 30, 2009 and
December 31, 2008
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1
|
|||
Unaudited
Consolidated Statements of Operations for the Three and Six Months Ended
June 30, 2009 and 2008
|
2
|
|||
Unaudited
Consolidated Statements of Changes in Stockholders’ Equity for the Six
Months Ended June 30, 2009 and 2008
|
3
|
|||
Unaudited
Consolidated Statements of Cash Flows for the Six Months Ended June 30,
2009 and 2008
|
4
|
|||
Notes
to Unaudited Consolidated Financial Statements
|
5
|
|||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
27
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
36
|
||
Item
4.
|
Controls
and Procedures
|
38
|
||
Part
II. Other Information
|
||||
Item
1.
|
Legal
Proceedings
|
38
|
||
Item
1A.
|
Risk
Factors
|
38
|
||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
38
|
||
Item
3.
|
Defaults
Upon Senior Securities
|
39
|
||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
39
|
||
Item
5.
|
Other
Information
|
39
|
||
Item
6.
|
Exhibits
|
39
|
||
Signatures
|
40
|
June
30,
2009
|
December
31,
2008
|
|||||||
ASSETS
|
||||||||
Cash
and Cash Equivalents
|
||||||||
Cash
and due from banks
|
$ | 41,989 | $ | 44,380 | ||||
Interest-bearing
deposits at other banks
|
237 | 9 | ||||||
Total
cash and cash equivalents
|
42,226 | 44,389 | ||||||
Investment
Securities:
|
||||||||
Available-for-sale
(amortized cost of $1,044,000 at June 30, 2009 and $1,095,232 at December
31, 2008)
|
1,066,615 | 1,114,086 | ||||||
Held-to-maturity
(estimated fair value of $59,733 at June 30, 2009 and $77,369 at December
31, 2008)
|
58,086 | 76,014 | ||||||
Federal
Home Loan Bank stock, at cost
|
28,068 | 28,068 | ||||||
Total
investment securities
|
1,152,769 | 1,218,168 | ||||||
Loans
(including loans held for sale measured at fair value of
$37,276)
|
2,694,971 | 2,424,582 | ||||||
Allowance
for loan losses
|
(43,235 | ) | (36,905 | ) | ||||
Net
loans
|
2,651,736 | 2,387,677 | ||||||
Accrued
Interest Receivable
|
17,972 | 17,543 | ||||||
Bank
premises and equipment, net
|
77,691 | 78,490 | ||||||
Other
Assets:
|
||||||||
Goodwill
|
111,462 | 111,462 | ||||||
Bank
owned life insurance
|
31,589 | 30,850 | ||||||
Other
intangibles
|
22,203 | 23,985 | ||||||
Other
assets
|
78,163 | 89,486 | ||||||
Total
other assets
|
243,417 | 255,783 | ||||||
Total
Assets
|
$ | 4,185,811 | $ | 4,002,050 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Non-interest
bearing deposits
|
$ | 248,487 | $ | 226,382 | ||||
Interest-bearing
deposits
|
2,789,529 | 2,515,297 | ||||||
Total
deposits
|
3,038,016 | 2,741,679 | ||||||
Borrowed
funds
|
443,611 | 580,054 | ||||||
Other
liabilities
|
83,940 | 69,777 | ||||||
Total
liabilities
|
3,565,567 | 3,391,510 | ||||||
Commitments
and Contingencies (Note 15)
|
||||||||
Stockholders’
Equity:
|
||||||||
Preferred
Stock - $.01 par value; 100,000,000 shares authorized, none issued or
outstanding as of June 30, 2009 or December 31, 2008
|
— | — | ||||||
Common
Stock - $.01 par value 300,000,000 shares authorized, 82,264,457 shares
issued and outstanding as of June 30, 2009 and December 31,
2008
|
823 | 823 | ||||||
Additional
paid-in capital
|
343,885 | 342,420 | ||||||
Unearned
common stock held by the employee savings and stock ownership
plan
|
(26,990 | ) | (28,510 | ) | ||||
Retained
earnings (partially restricted)
|
301,184 | 296,106 | ||||||
Accumulated
other comprehensive income (loss)
|
3,817 | (299 | ) | |||||
Treasury
stock, at cost, 283,204 shares at June 30, 2009 and 0 shares at December
31, 2008
|
(2,475 | ) | — | |||||
Total
stockholders’ equity
|
620,244 | 610,540 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 4,185,811 | $ | 4,002,050 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
INTEREST
INCOME
|
||||||||||||||||
Interest
and fees on loans
|
$ | 33,921 | $ | 32,698 | $ | 67,278 | $ | 65,193 | ||||||||
Interest
on federal funds sold
|
— | 146 | 2 | 507 | ||||||||||||
Interest
and dividends on investment securities:
|
||||||||||||||||
Taxable
|
12,389 | 14,657 | 26,002 | 29,676 | ||||||||||||
Tax-exempt
|
650 | 369 | 1,206 | 736 | ||||||||||||
Total
interest income
|
46,960 | 47,870 | 94,488 | 96,112 | ||||||||||||
INTEREST
EXPENSE
|
||||||||||||||||
Interest
on deposits:
|
||||||||||||||||
Interest
bearing checking accounts
|
2,113 | 1,235 | 4,096 | 2,521 | ||||||||||||
Money
market and savings deposits
|
2,703 | 3,664 | 6,154 | 7,421 | ||||||||||||
Time
deposits
|
7,037 | 10,082 | 14,984 | 21,228 | ||||||||||||
Total
|
11,853 | 14,981 | 25,234 | 31,170 | ||||||||||||
Interest
on borrowed funds
|
4,691 | 4,832 | 9,359 | 9,766 | ||||||||||||
Total
interest expense
|
16,544 | 19,813 | 34,593 | 40,936 | ||||||||||||
Net
interest income
|
30,416 | 28,057 | 59,895 | 55,176 | ||||||||||||
Provision
for Loan Losses
|
7,100 | 2,300 | 10,100 | 2,600 | ||||||||||||
Net
interest income after provision for loan losses
|
23,316 | 25,757 | 49,795 | 52,576 | ||||||||||||
Non-interest
Income
|
||||||||||||||||
Insurance
commission and related income
|
1,715 | 1,876 | 4,463 | 5,141 | ||||||||||||
Service
charges and other income
|
3,111 | 4,388 | 6,762 | 8,330 | ||||||||||||
Impairment
charge on securities available-for-sale
|
— | (473 | ) | (1,230 | ) | (473 | ) | |||||||||
Net
gain on sale of investment securities available-for-sale
|
1,316 | 143 | 4,165 | 271 | ||||||||||||
Total
non-interest income
|
6,142 | 5,934 | 14,160 | 13,269 | ||||||||||||
Non-interest
Expense
|
||||||||||||||||
Salaries
and employee benefits
|
14,007 | 13,157 | 28,282 | 26,150 | ||||||||||||
Pension
curtailment gain
|
— | (7,289 | ) | — | (7,289 | ) | ||||||||||
Occupancy
expense
|
2,899 | 2,812 | 6,102 | 5,758 | ||||||||||||
Depreciation,
amortization and maintenance
|
2,220 | 2,047 | 4,448 | 4,022 | ||||||||||||
Advertising
|
1,238 | 1,214 | 2,987 | 2,325 | ||||||||||||
Intangible
amortization expense
|
890 | 1,654 | 1,782 | 3,400 | ||||||||||||
Other
|
8,498 | 5,045 | 14,589 | 10,166 | ||||||||||||
Total
non-interest expense
|
29,752 | 18,640 | 58,190 | 44,532 | ||||||||||||
(Loss)
Income before income taxes
|
(294 | ) | 13,051 | 5,765 | 21,313 | |||||||||||
Income
Tax (Benefit) Expense
|
(244 | ) | 3,950 | 687 | 6,150 | |||||||||||
Net
(Loss) Income
|
$ | (50 | ) | $ | 9,101 | $ | 5,078 | $ | 15,163 | |||||||
Earnings
per Share – Basic
|
$ | 0.00 | $ | 0.11 | $ | 0.07 | $ | 0.19 | ||||||||
Earnings
per Share – Diluted
|
$ | 0.00 | $ | 0.11 | $ | 0.07 | $ | 0.19 | ||||||||
Average
common shares outstanding - Basic
|
77,678,961 | 79,255,114 | 77,717,407 | 79,235,030 | ||||||||||||
Average
common shares outstanding – Diluted
|
77,678,961 | 79,255,114 | 77,726,194 | 79,235,030 | ||||||||||||
Number
of
Shares
|
Common
Stock
|
Additional
Paid
in
Capital
|
Common
Stock
held
by
KSOP
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Total
Stockholders’
Equity
|
Comprehensive
Income
|
|||||||||||||||||||||
BEGINNING
BALANCE, JANUARY 1, 2008
|
82,264,460
|
$
|
823
|
$
|
360,126
|
$
|
(30,635
|
)
|
$
|
291,360
|
$
|
(1,877
|
)
|
$
|
619,797
|
$
|
—
|
||||||||||||
Net
income
|
15,163
|
15,163
|
15,163
|
||||||||||||||||||||||||||
KSOP
shares committed to be released
|
14
|
806
|
820
|
||||||||||||||||||||||||||
Net
unrealized loss on available-for-sale securities (net of deferred tax of
$7,074)
|
(13,137
|
)
|
(13,137
|
)
|
|
(13,137
|
)
|
||||||||||||||||||||||
Reclassification
adjustment for net gains included in net income (net of tax of
$95)
|
131
|
131
|
131
|
||||||||||||||||||||||||||
Pension
and post-retirement benefit plan adjustments (net of tax of
$628)
|
(1,166
|
)
|
(1,166
|
)
|
|
(1,166
|
)
|
||||||||||||||||||||||
Immediate
recognition of prior service cost and unrealized gain(loss) due to
curtailments net of deferred tax $4,175)
|
7,754
|
7,754
|
7,754
|
||||||||||||||||||||||||||
Other
|
16
|
16
|
|||||||||||||||||||||||||||
Total
other comprehensive income
|
(6,418
|
)
|
|||||||||||||||||||||||||||
Comprehensive
income
|
$
|
8,745
|
|||||||||||||||||||||||||||
Cumulative
effect of the adoption of EITF 06-4 Split Dollar Life
Insurance
|
(11,800
|
)
|
(11,800
|
)
|
|
||||||||||||||||||||||||
BALANCE,
JUNE 30, 2008
|
82,264,460
|
$
|
823
|
$
|
360,156
|
$
|
(29,829
|
)
|
$
|
294,723
|
$
|
(8,295
|
)
|
$
|
617,578
|
||||||||||||||
BEGINNING
BALANCE, JANUARY 1, 2009
|
82,264,457
|
$
|
823
|
$
|
342,420
|
$
|
(28,510
|
)
|
$
|
296,106
|
$
|
(299
|
)
|
$
|
610,540
|
||||||||||||||
Net
Income
|
5,078
|
5,078
|
$
|
5,078
|
|||||||||||||||||||||||||
KSOP
shares committed to be released
|
(44
|
)
|
1,520
|
1,476
|
|||||||||||||||||||||||||
Stock
option expense
|
604
|
604
|
|||||||||||||||||||||||||||
Restricted
stock shares
|
905
|
905
|
|||||||||||||||||||||||||||
Purchase
of treasury stock
|
$
|
(2,475
|
)
|
(2,475
|
)
|
|
|||||||||||||||||||||||
Net
unrealized gain on available-for-sale securities (net of deferred tax of
$2,344)
|
4,352
|
4,352
|
4,352
|
||||||||||||||||||||||||||
Reclassification
adjustment for net gains included in net income (net of tax of
$1,458)
|
(2,707
|
)
|
(2,707
|
)
|
|
(2,707
|
)
|
||||||||||||||||||||||
Reclassification
adjustment for other-than-temporary impairment (net of tax benefit of
$430)
|
800
|
800
|
800
|
||||||||||||||||||||||||||
Pension,
other post-retirement benefit plan adjustments (net of tax of
$720)
|
1,671
|
1,671
|
1,671
|
||||||||||||||||||||||||||
Total
other comprehensive income
|
4,116
|
||||||||||||||||||||||||||||
Comprehensive
income
|
$
|
9,194
|
|||||||||||||||||||||||||||
BALANCE,
JUNE 30, 2009
|
82,264,457
|
$
|
823
|
$
|
343,885
|
$
|
(26,990
|
)
|
$
|
301,184
|
$
|
(2,475
|
)
|
$
|
3,817
|
$
|
620,244
|
Six
Months Ended
June
30,
|
||||||||
2009
|
2008
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
income
|
$ | 5,078 | $ | 15,163 | ||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||
Provision
for loan losses
|
10,100 | 2,600 | ||||||
Depreciation
and amortization
|
3,087 | 2,782 | ||||||
Intangible
amortization
|
1,782 | 3,400 | ||||||
Net
gain on sale of investments
|
(4,165 | ) | (271 | ) | ||||
Impairment
of investments
|
1,230 | 473 | ||||||
Pension
curtailments
|
— | (7,289 | ) | |||||
Accretion
of discount on investments
|
(1,130 | ) | (2,929 | ) | ||||
Amortization
of premium on investments
|
251 | 187 | ||||||
Origination
of loans held for sale
|
— | — | ||||||
Proceeds
from sales of loans
|
— | — | ||||||
Deferred
income taxes
|
(2,206 | ) | 2,213 | |||||
Net
loss (gain) from sales of premises and equipment
|
20 | (6 | ) | |||||
Increase
in bank owned life insurance
|
(739 | ) | (712 | ) | ||||
Amortization
of employee stock ownership plan
|
1,476 | 820 | ||||||
Stock
option and grant expense
|
1,509 | — | ||||||
Changes
in assets and liabilities that provided (used) cash:
|
||||||||
Accrued
interest receivable
|
(429 | ) | 1,881 | |||||
Accrued
interest payable
|
(1,096 | ) | (773 | ) | ||||
Income
taxes payable
|
(1,664 | ) | 3,872 | |||||
Other
liabilities
|
17,658 | (3,795 | ) | |||||
Other
assets
|
14,000 | (20,912 | ) | |||||
Net
cash provided by (used in) operating activities
|
44,762 | (3,296 | ) | |||||
INVESTING
ACTIVITIES:
|
||||||||
Loans
originated or acquired
|
(552,861 | ) | (399,072 | ) | ||||
Principal
repayment on loans
|
278,412 | 281,620 | ||||||
Purchases
of investment securities available for sale
|
(164,997 | ) | (373,512 | ) | ||||
Net
(purchases) sales in money market fund
|
(64,887 | ) | 6,888 | |||||
Proceeds
from sales and maturities of investment securities available for
sale
|
285,010 | 256,371 | ||||||
Proceeds
from maturities, calls or repayments of investment securities held to
maturity
|
17,848 | 23,741 | ||||||
Purchase
of Federal Home Loan Bank stock
|
— | (3,298 | ) | |||||
Activity
in other real estate owned
|
405 | 747 | ||||||
Purchases
of premises and equipment
|
(3,302 | ) | (2,835 | ) | ||||
Proceeds
from sale of premises and equipment
|
28 | 29 | ||||||
Proceeds
from other investing activities
|
— | 201 | ||||||
Net
cash used in investing activities
|
(204,344 | ) | (209,120 | ) | ||||
FINANCING
ACTIVITIES:
|
||||||||
Net
(decrease) increase in borrowed funds
|
(136,443 | ) | 64,666 | |||||
Net
increase in checking, savings and demand accounts
|
361,191 | 161,400 | ||||||
Net
decrease in time deposits
|
(64,854 | ) | (25,235 | ) | ||||
Purchase
of treasury stock
|
(2,475 | ) | — | |||||
Net
cash provided by financing activities
|
157,419 | 200,831 | ||||||
NET
DECREASE IN CASH AND CASH EQUIVALENTS
|
(2,163 | ) | (11,585 | ) | ||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
44,389 | 58,327 | ||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 42,226 | $ | 46,742 | ||||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW AND NON-CASH INFORMATION:
|
||||||||
Cash
payments for interest
|
$ | 24,129 | $ | 20,642 | ||||
Cash
payments of income taxes
|
$ | 5,321 | $ | 2,022 | ||||
Transfers
of loans to other real estate owned
|
$ | 289 | $ | 720 |
(Dollars
in thousands, except share and per share amounts)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Basic
and diluted earnings per share:
|
||||||||||||||||
Net
income
|
$ | (50 | ) | $ | 9,101 | $ | 5,078 | $ | 15,163 | |||||||
Basic
average common shares outstanding
|
77,678,961 | 79,255,114 | 77,717,407 | 79,235,030 | ||||||||||||
Effect
of dilutive securities
|
— | — | 8,787 | — | ||||||||||||
Dilutive
average shares outstanding
|
77,678,961 | 79,255,114 | 77,726,194 | 79,235,030 | ||||||||||||
Net
earnings per share:
|
||||||||||||||||
Basic
|
$ | 0.00 | $ | 0.11 | $ | 0.07 | $ | 0.19 | ||||||||
Diluted
|
$ | 0.00 | $ | 0.11 | $ | 0.07 | $ | 0.19 |
June
30, 2009
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||||||
Equity
securities
|
$ | 8,117 | $ | 1,503 | $ | 193 | $ | 9,427 | ||||||||
U.S.
Government Sponsored Enterprise (“GSE”) and
Agency Notes
|
7,568 | 88 | 5 | $ | 7,651 | |||||||||||
GNMA
guaranteed mortgage certificates
|
11,762 | 206 | 5 | 11,963 | ||||||||||||
Collateralized
mortgage obligations
|
137,631 | 1,479 | 1,102 | 138,008 | ||||||||||||
Other
mortgage-backed securities
|
640,975 | 24,611 | 56 | 665,530 | ||||||||||||
Municipal
and other bonds
|
157,507 | 958 | 4,926 | 153,539 | ||||||||||||
Money
market fund
|
80,440 | 57 | 0 | 80,497 | ||||||||||||
Total
|
$ | 1,044,000 | $ | 28,902 | $ | 6,287 | $ | 1,066,615 |
December
31, 2008
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
|||||||||||||
Equity
securities
|
$ | 7,638 | $ | 108 | $ | — | $ | 7,746 | ||||||||
U.S.
Government Sponsored Enterprise and
Agency Notes
|
8,687 | 17 | 5 | 8,699 | ||||||||||||
GNMA
guaranteed mortgage certificates
|
12,796 | 3 | 294 | 12,505 | ||||||||||||
Collateralized
mortgage obligations
|
177,300 | 1,222 | 2,149 | 176,373 | ||||||||||||
Other
mortgage-backed securities
|
767,978 | 25,342 | 40 | 793,280 | ||||||||||||
Municipal
and other bonds
|
105,280 | 798 | 6,148 | 99,930 | ||||||||||||
Mutual
funds
|
15,553 | — | — | 15,553 | ||||||||||||
Total
|
$ | 1,095,232 | $ | 27,490 | $ | 8,636 | $ | 1,114,086 |
(Dollars in thousands) | |||||||||||||
June
30, 2009
|
|||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||||
GNMA
guaranteed mortgage certificates
|
$
|
707
|
$
|
—
|
$
|
27
|
$
|
680
|
|||||
Other
mortgage-backed securities
|
57,379
|
1,674
|
0
|
59,053
|
|||||||||
Total
|
$
|
58,086
|
$
|
1,674
|
$
|
27
|
$
|
59,733
|
|||||
December
31, 2008
|
|||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||||
U.S.
Government Sponsored Enterprise and Agency Notes
|
$
|
7,500
|
$
|
47
|
$
|
—
|
$
|
7,547
|
|||||
GNMA
guaranteed mortgage certificates
|
728
|
—
|
29
|
699
|
|||||||||
Other
mortgage-backed securities
|
67,786
|
1,378
|
41
|
69,123
|
|||||||||
Total
|
$
|
76,014
|
$
|
1,425
|
$
|
70
|
$
|
77,369
|
|||||
(Dollars in thousands) | ||||||||||||||||||||||||
June
30, 2009
|
||||||||||||||||||||||||
Less
than 12 months
|
12
months or longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
GSE and Agency
Notes
|
$ | 521 | $ | 5 | $ | — | $ | — | $ | 521 | $ | 5 | ||||||||||||
Mortgage-backed
securities
|
22,226 | 61 | 680 | 27 | 22,906 | 88 | ||||||||||||||||||
Municipal
and other bonds
|
15,583 | 147 | 20,983 | 4,779 | 36,566 | 4,926 | ||||||||||||||||||
Collateralized
mortgage obligations
|
16,533 | 157 | 73,756 | 945 | 90,289 | 1,102 | ||||||||||||||||||
Subtotal,
debt securities
|
54,863 | 370 | 95,419 | 5,751 | 150,282 | 6,121 | ||||||||||||||||||
Equity
securities
|
1,103 | 193 | — | — | 1,103 | 193 | ||||||||||||||||||
Mutual
funds
|
— | — | — | — | — | — | ||||||||||||||||||
Total
temporarily impaired securities
|
$ | 55,966 | $ | 563 | $ | 95,419 | $ | 5,751 | $ | 151,385 | $ | 6,314 |
December
31, 2008
|
||||||||||||||||||||||||
Less
than 12 months
|
12
months or longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
GSE
and Agency Notes
|
$ | 522 | $ | 5 | $ | — | $ | — | $ | 522 | $ | 5 | ||||||||||||
Mortgage-backed
securities
|
33,551 | 375 | 699 | 29 | 34,250 | 404 | ||||||||||||||||||
Municipal
and other bonds
|
23,465 | 5,895 | 3,843 | 253 | 27,308 | 6,148 | ||||||||||||||||||
Collateralized
mortgage obligations
|
78,951 | 1,367 | 55,768 | 782 | 134,719 | 2,149 | ||||||||||||||||||
Total
temporarily impaired securities
|
$ | 136,489 | $ | 7,642 | $ | 60,310 | $ | 1,064 | $ | 196,799 | $ | 8,706 | ||||||||||||
(Dollars in thousands) | ||||||||
June
30,
2009
|
December
31,
2008
|
|||||||
Real
estate loans:
|
||||||||
One-to-four
family
|
$ | 577,552 | $ | 508,097 | ||||
Commercial
real estate
|
902,666 | 787,748 | ||||||
Residential
construction
|
9,952 | 6,055 | ||||||
Total
real estate loans
|
1,490,170 | 1,301,900 | ||||||
Commercial
business loans
|
331,732 | 320,640 | ||||||
Consumer
loans:
|
||||||||
Home
equity loans and lines of credit
|
334,169 | 362,381 | ||||||
Auto
loans
|
144,637 | 142,097 | ||||||
Other
consumer loans
|
391,032 | 293,106 | ||||||
Total
consumer loans
|
869,838 | 797,584 | ||||||
Total
loans
|
2,691,740 | 2,420,124 | ||||||
Net
deferred loan fees and costs
|
3,231 | 4,458 | ||||||
Allowance
for loan losses
|
(43,235 | ) | (36,905 | ) | ||||
Loans,
net
|
$ | 2,651,736 | $ | 2,387,677 | ||||
(Dollars in thousands) | ||||||||||
June
30,
|
December
31, 2008
|
|||||||||
2009
|
2008
|
|||||||||
Balance,
beginning of year
|
$
|
36,905
|
$
|
23,341
|
$
|
23,341
|
||||
Provision
for loan losses
|
10,100
|
2,600
|
18,901
|
|||||||
Charge-offs
|
(4,163
|
)
|
(3,721
|
)
|
(5,963
|
)
|
||||
Recoveries
|
393
|
319
|
626
|
|||||||
Balance,
end of period
|
$
|
43,235
|
$
|
22,539
|
$
|
36,905
|
||||
June
30,
2009
|
December
31,
2008
|
|||||||
Impaired
loans with related allowance for loan losses calculated under SFAS No.
114
|
$ | 28,861 | $ | 14,079 | ||||
Impaired
loans with no related allowance for loan losses calculated under SFAS No.
114
|
38,287 | 5,138 | ||||||
Total
impaired loans
|
$ | 67,148 | $ | 19,217 | ||||
Valuation
allowance related to impaired loans
|
$ | 15,118 | $ | 8,707 | ||||
For
the Six Months Ended
June
30,
|
|||||||
2009
|
2008
|
||||||
Average
impaired loans
|
$
|
33,788
|
$
|
5,939
|
|||
Interest
income recognized on impaired loans
|
185
|
—
|
|||||
Cash
basis interest income recognized on impaired loans
|
24
|
—
|
|||||
(Dollars in thousands) | ||||||||
June
30,
2009
|
December
31,
2008
|
|||||||
Land
|
$ | 15,793 | $ | 16,030 | ||||
Bank
premises
|
52,223 | 51,943 | ||||||
Furniture,
fixtures and equipment
|
24,904 | 24,036 | ||||||
Leasehold
improvements
|
10,676 | 10,629 | ||||||
Construction
in progress
|
2,408 | 2,022 | ||||||
Total
|
106,004 | 104,660 | ||||||
Accumulated
depreciation and amortization
|
(28,313 | ) | (26,170 | ) | ||||
Total
|
$ | 77,691 | $ | 78,490 | ||||
(Dollars in thousands) | ||||||||||
Goodwill
|
Core
Deposit
Intangible
|
Customer
Relationships
and
other
|
||||||||
Balances
at December 31,2008
|
$
|
111,462
|
$
|
16,157
|
$
|
7,828
|
||||
Amortization
|
—
|
(1,287
|
)
|
(495
|
)
|
|||||
Balances
at June 30, 2009
|
$
|
111,462
|
$
|
14,870
|
$
|
7,333
|
||||
June
30, 2009
|
December
31, 2008
|
||||||||||||||||||
Gross
|
Accumulated
Amortization
|
Net
|
Gross
|
Accumulated
Amortization
|
Net
|
||||||||||||||
Amortizing
Intangibles:
|
|||||||||||||||||||
Core
deposits
|
$
|
23,215
|
$
|
(8,345
|
)
|
$
|
14,870
|
$
|
23,215
|
$
|
(7,058
|
)
|
$
|
16,157
|
|||||
Customer
Relationships and other
|
10,251
|
(2,918
|
)
|
7,333
|
10,251
|
(2,423
|
)
|
7,828
|
|||||||||||
Total
|
$
|
33,466
|
$
|
(11,263
|
)
|
$
|
22,203
|
$
|
33,466
|
$
|
(9,481
|
)
|
$
|
23,985
|
|||||
(Dollars in thousands) | ||||||||
June
30,
2009
|
December
31,
2008
|
|||||||
Non-interest
bearing deposits
|
$ | 248,487 | $ | 226,382 | ||||
Interest
earning checking accounts
|
784,442 | 546,133 | ||||||
Money
market accounts
|
617,279 | 534,012 | ||||||
Savings
accounts
|
411,818 | 394,308 | ||||||
Time
deposits
|
975,990 | 1,040,844 | ||||||
Total
deposits
|
$ | 3,038,016 | $ | 2,741,679 | ||||
(Dollars in thousands) | ||||||||
June
30,
2009
|
December
31,
2008
|
|||||||
Fed
funds purchased
|
$ | — | $ | 40,000 | ||||
FHLB
advances
|
174,750 | 174,750 | ||||||
Repurchase
agreements
|
240,000 | 240,177 | ||||||
Federal
Reserve overnight borrowings
|
— | 96,250 | ||||||
Statutory
trust debenture
|
25,290 | 25,282 | ||||||
Other
|
3,571 | 3,595 | ||||||
Total
borrowed funds
|
$ | 443,611 | $ | 580,054 | ||||
Actual
|
For
Capital
Adequacy
Purposes
|
To
Be Well Capitalized
Under
Prompt Corrective
Action
Provisions
|
||||||||||||||||||||||
Capital
Amount
|
Ratio
|
Capital
Amount
|
Ratio
|
Capital
Amount
|
Ratio
|
|||||||||||||||||||
As of June 30, 2009:
|
||||||||||||||||||||||||
Tier
1 Capital (to average assets)
|
$ | 429,574 | 10.87 | % | $ | 118,500 | 3.00 | % | $ | 197,500 | 5.00 | % | ||||||||||||
Tier
1 Capital (to risk weighted assets)
|
429,574 | 17.14 | % | 100,300 | 4.00 | % | 150,400 | 6.00 | % | |||||||||||||||
Total
Capital (to risk weighted assets)
|
461,091 | 18.40 | % | 200,500 | 8.00 | % | 250,700 | 10.00 | % | |||||||||||||||
As
of December 31, 2008:
|
||||||||||||||||||||||||
Tier
1 Capital (to average assets)
|
$ | 421,665 | 11.24 | % | $ | 112,523 | 3.00 | % | $ | 187,538 | 5.00 | % | ||||||||||||
Tier
1 Capital (to risk weighted assets)
|
421,665 | 17.78 | % | 94,866 | 4.00 | % | 142,300 | 6.00 | % | |||||||||||||||
Total
Capital (to risk weighted assets)
|
451,413 | 19.03 | % | 189,733 | 8.00 | % | 237,166 | 10.00 | % |
(Dollars in thousands) | ||||||||||||||||
Pension
Benefits
Three
Months Ended
June
30,
|
Other
Postretirement
Benefits
Three
Months Ended
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service
cost
|
$ | — | $ | 555 | $ | 43 | $ | 57 | ||||||||
Interest
cost
|
932 | 1,091 | 374 | 376 | ||||||||||||
Expected
return on assets
|
(767 | ) | (1,111 | ) | — | — | ||||||||||
Amortization
of loss
|
195 | 24 | 3 | 29 | ||||||||||||
Amortization
of prior service cost
|
— | 4 | 36 | 47 | ||||||||||||
Curtailment
gain
|
— | (7,289 | ) | — | ||||||||||||
Amortization
of transition obligation
|
— | — | 41 | 41 | ||||||||||||
Net
periodic pension cost
|
$ | 360 | $ | (6,726 | ) | $ | 497 | $ | 550 | |||||||
Pension
Benefits
Six
Months Ended
June
30,
|
Other
Postretirement
Benefits
Six
Months Ended
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service
cost
|
$ | — | $ | 1,194 | $ | 86 | $ | 114 | ||||||||
Interest
cost
|
1,863 | 2,318 | 748 | 751 | ||||||||||||
Expected
return on assets
|
(1,535 | ) | (2,238 | ) | — | — | ||||||||||
Amortization
of loss
|
391 | 71 | 7 | 58 | ||||||||||||
Amortization
of prior service cost
|
— | 13 | 73 | 94 | ||||||||||||
Curtailment
gain
|
— | (7,289 | ) | — | — | |||||||||||
Amortization
of transition obligation
|
— | — | 81 | 82 | ||||||||||||
Net
periodic pension cost
|
$ | 719 | $ | (5,931 | ) | $ | 995 | $ | 1,099 | |||||||
Summary
of Non-vested Stock Award Activity
|
Number
of
Shares
Granted
|
Weighted
Average
Grant
Price
|
|||||
Non-vested
Stock Awards outstanding, January 1, 2009
|
761,000
|
$
|
11.86
|
||||
Issued
|
136,500
|
8.35
|
|||||
Vested
|
—
|
—
|
|||||
Non-vested
Stock Awards outstanding, June 30, 2009
|
897,500
|
$
|
11.33
|
||||
Number
of
Options
|
Weighted
Exercise
Price
per
Shares
|
Number
of
Options
Exercisable
|
||||||||||
January
1, 2009
|
1,697,500 | $ | 11.86 | — | ||||||||
Granted
|
227,250 | 8.35 | — | |||||||||
Exercised
|
— | — | — | |||||||||
Forfeited
|
(5,000 | ) | 11.86 | — | ||||||||
Expired
|
— | — | — | |||||||||
June
30, 2009
|
1,919,750 | $ | 11.45 | — | ||||||||
For
the
Six Months Ended
June
30,
2009 |
||||
Weighted
average fair value of options granted
|
$
|
2.94
|
||
Weighted
average risk-free rate of return
|
2.38
|
%
|
||
Weighted
average expected option life in months
|
78
|
|||
Weighted
average expected volatility
|
29.77
|
%
|
||
Expected
dividends
|
$
|
—
|
SFAS No. 157 describes three levels of inputs that may be used to measure fair value: | |
Level
1
|
Quoted
prices in active markets for identical assets or liabilities. Level 1
assets and liabilities include debt, equity securities and derivative
contracts that are traded in an active exchange market as well as certain
U.S. Treasury securities that are highly liquid and actively traded in
over-the-counter markets.
|
Level
2
|
Observable
inputs other than Level 1 prices, such as quoted prices for similar assets
or liabilities; quoted prices in markets that are not active; or other
inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets or liabilities. Level 2
assets and liabilities include debt securities with quoted market prices
that are traded less frequently than exchange traded assets and
liabilities. The values of these items are determined using pricing models
with inputs observable in the market or can be corroborated from
observable market data. This category generally includes U.S. Government
and agency mortgage-backed debt securities, corporate debt securities and
derivative contracts.
|
Level
3
|
Unobservable
inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities. Level 3 assets
and liabilities include financial instruments whose value is determined
using pricing models, discounted cash flow methodologies, or similar
techniques, as well as instruments for which the determination of fair
value requires significant management judgment or
estimation.
|
(Dollars in thousands) | |||||||||||||
Category
Used for Fair Value Measurement
As
of June 30, 2009
|
|||||||||||||
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||
Assets:
|
|||||||||||||
Investment
securities available for sale:
|
|||||||||||||
U.S.
Government Sponsored Enterprise (“GSE”) and agency notes
|
$
|
7,651
|
$
|
7,651
|
|||||||||
GNMA
guaranteed mortgage certificates
|
11,963
|
11,963
|
|||||||||||
Collateralized
mortgage obligations
|
138,008
|
138,008
|
|||||||||||
Other
mortgage-backed securities
|
665,530
|
665,530
|
|||||||||||
Municipal
and other bonds
|
134,978
|
$
|
18,561
|
153,539
|
|||||||||
Equity
securities
|
$
|
9,427
|
—
|
9,427
|
|||||||||
Money
market funds
|
78,887
|
78,887
|
|||||||||||
Mutual
funds
|
1,318
|
1,318
|
|||||||||||
Certificates
of deposit
|
292
|
292
|
Level
3 Investments Only
(Dollars
in thousands)
|
Year
Ended
June
30, 2009
|
|||
Available-
for-Sale
Securities |
||||
Balance,
January 1, 2009
|
$
|
19,329
|
||
Total
gains or losses realized/(unrealized):
|
||||
Included
in earnings
|
||||
Included
in other comprehensive income
|
(768
|
)
|
||
Purchases,
issuances and settlements
|
||||
Transfers
in and/or out of Level 3
|
||||
Balance,
June 30, 2009
|
$
|
18,561
|
||
Assets measured at fair value on a nonrecurring basis are as follows: | ||||||||||||||
Category
Used for Fair Value
Measurement
|
||||||||||||||
Balance
at
June
30,
2009 |
Level
1
|
Level
2
|
Level
3
|
|||||||||||
Impaired
loans
|
$
|
67,148
|
$
|
—
|
$
|
—
|
$
|
67,148
|
At
June
30, 2009
|
At
December
31, 2008
|
|||||||||||||||
Carrying
Amount
|
Estimated
Fair
Value
|
Carrying
Amount
|
Estimated
Fair
Value
|
|||||||||||||
Assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 42,226 | $ | 42,226 | $ | 44,380 | $ | 44,380 | ||||||||
Investment
securities
|
1,152,769 | 1,154,416 | 1,218,168 | 1,219,523 | ||||||||||||
Loans
(including loans held for sale measured at fair value of $37,276) -
net
|
2,651,736 | 2,621,317 | 2,387,677 | 2,399,200 | ||||||||||||
Liabilities:
|
||||||||||||||||
Checking
deposits
|
1,032,929 | 1,032,929 | 772,515 | 722,515 | ||||||||||||
Money
market and savings accounts
|
1,029,097 | 1,029,097 | 928,320 | 928,320 | ||||||||||||
Time
deposits
|
975,990 | 992,895 | 1,040,844 | 1,060,599 | ||||||||||||
Borrowed
funds
|
443,611 | 452,436 | 580,054 | 590,980 |
(Dollars in thousands) | ||||||||||||||||||||||||
Three
Months Ended
June
30, 2009
|
Three
Months Ended
June
30, 2008
|
|||||||||||||||||||||||
Average
Balance
|
Interest
And
Dividends
|
Yield/
Cost
|
Average
Balance
|
Interest
And
Dividends
|
Yield/
Cost
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 162 | $ | 2 | 4.94 | % | $ | 4,049 | $ | 12 | 1.19 | % | ||||||||||||
Loans
|
2,618,588 | 33,921 | 5.18 | 2,200,448 | 32,698 | 5.94 | ||||||||||||||||||
Investment
securities
|
120,007 | 1,139 | 3.80 | 193,015 | 2,350 | 4.87 | ||||||||||||||||||
Mortgage-backed
securities
|
794,252 | 10,059 | 5.07 | 771,007 | 10,342 | 5.37 | ||||||||||||||||||
Collateralized
mortgage obligations
|
149,865 | 1,702 | 4.54 | 189,853 | 2,322 | 4.89 | ||||||||||||||||||
Other
interest-earning assets
|
74,835 | 137 | 0.73 | 28,364 | 146 | 2.06 | ||||||||||||||||||
Total
interest-earning assets
|
3,757,709 | 46,960 | 5.00 | 3,386,736 | 47,870 | 5.65 | ||||||||||||||||||
Non-interest
earning assets
|
358,882 | — | 348,878 | — | ||||||||||||||||||||
Total
assets
|
$ | 4,116,591 | $ | 46,960 | $ | 3,735,614 | $ | 47,870 | ||||||||||||||||
Liabilities
and stockholders’ equity:
|
||||||||||||||||||||||||
Interest-earning
checking accounts
|
$ | 741,285 | $ | 2,113 | 1.14 | $ | 424,540 | $ | 1,235 | 1.16 | ||||||||||||||
Money
market accounts
|
599,439 | 2,152 | 1.44 | 482,962 | 2,960 | 2.45 | ||||||||||||||||||
Savings
accounts
|
401,818 | 551 | 0.55 | 412,933 | 704 | 0.68 | ||||||||||||||||||
Time
deposits
|
991,939 | 7,037 | 2.84 | 1,043,340 | 10,082 | 3.87 | ||||||||||||||||||
Total
interest-bearing deposits
|
2,734,481 | 11,853 | 1.73 | 2,363,775 | 14,981 | 2.53 | ||||||||||||||||||
Federal
Home Loan Bank advances
|
174,793 | 1,766 | 4.04 | 202,124 | 2,161 | 4.28 | ||||||||||||||||||
Repurchase
agreements
|
240,000 | 2,663 | 4.44 | 215,427 | 2,341 | 4.35 | ||||||||||||||||||
Statutory
Trust Debentures
|
25,288 | 215 | 3.40 | 25,270 | 290 | 4.59 | ||||||||||||||||||
Other
borrowings
|
4,193 | 47 | 4.48 | 7,202 | 40 | 2.22 | ||||||||||||||||||
Total
interest-bearing liabilities
|
3,178,755 | 16,544 | 2.08 | 2,813,798 | 19,813 | 2.82 | ||||||||||||||||||
Non-interest-bearing
deposits
|
271,985 |
—
|
257,843 |
—
|
||||||||||||||||||||
Other
non-interest-bearing liabilities
|
45,701 |
—
|
51,422 |
—
|
||||||||||||||||||||
Total
liabilities
|
3,496,441 | 16,544 | 3,123,063 | 19,813 | ||||||||||||||||||||
Total
stockholders’ equity
|
620,150 | 612,547 | ||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$ | 4,116,591 | $ | 3,735,610 | ||||||||||||||||||||
Net
interest income
|
$ | 30,416 | $ | 28,057 | ||||||||||||||||||||
Interest
rate spread
|
2.92 | % | 2.85 | % | ||||||||||||||||||||
Net
interest margin
|
3.24 | % | 3.31 | % | ||||||||||||||||||||
Average
interest-earning assets to average interest-bearing
liabilities
|
118.21 | % | 120.36 | % |
(Dollars
in thousands)
|
Six
Months Ended
June
30, 2009
|
Six
Months Ended
June
30, 2008
|
||||||||||||||||||||||
Average
Balance
|
Interest
And
Dividends
|
Yield/
Cost
|
Average
Balance
|
Interest
And
Dividends
|
Yield/
Cost
|
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 178 | $ | 5 | 5.62 | % | $ | 5,107 | $ | 24 | 0.94 | % | ||||||||||||
Loans
|
2,539,777 | 67,278 | 5.30 | 2,163,551 | 65,193 | 6.03 | ||||||||||||||||||
Investment
securities
|
114,186 | 2,227 | 3.90 | 237,383 | 6,876 | 5.77 | ||||||||||||||||||
Mortgage-backed
securities
|
826,032 | 21,246 | 5.14 | 693,496 | 18,634 | 5.37 | ||||||||||||||||||
Collateralized
mortgage obligations
|
160,521 | 3,542 | 4.41 | 197,460 | 4,878 | 4.94 | ||||||||||||||||||
Other
interest-earning assets
|
67,184 | 190 | 0.57 | 38,095 | 507 | 2.66 | ||||||||||||||||||
Total
interest-earning assets
|
3,707,878 | 94,488 | 5.10 | 3,335,092 | 96,112 | 5.76 | ||||||||||||||||||
Non-interest
earning assets
|
354,923 | — | 370,908 | — | ||||||||||||||||||||
Total
assets
|
$ | 4,062,801 | $ | 94,488 | 4.65 | $ | 3,706,000 | $ | 96,112 | |||||||||||||||
Liabilities
and stockholders’ equity:
|
||||||||||||||||||||||||
Interest-earning
checking accounts
|
$ | 680,733 | 4,096 | 1.20 | $ | 407,299 | 2,521 | 1.24 | ||||||||||||||||
Money
market accounts
|
577,774 | 5,019 | 1.74 | 457,301 | 6,066 | 2.65 | ||||||||||||||||||
Savings
accounts
|
396,636 | 1,135 | 0.57 | 411,078 | 1,355 | 0.66 | ||||||||||||||||||
Time
deposits
|
1,009,375 | 14,984 | 2.97 | 1,045,183 | 21,228 | 4.06 | ||||||||||||||||||
Total
interest-bearing deposits
|
2,664,518 | 25,234 | 1.89 | 2,320,861 | 31,170 | 2.69 | ||||||||||||||||||
Federal
Home Loan Bank advances
|
174,840 | 3,496 | 4.00 | 204,596 | 4,512 | 4.41 | ||||||||||||||||||
Repurchase
agreements
|
240,000 | 5,299 | 4.42 | 203,390 | 4,488 | 4.41 | ||||||||||||||||||
FHLB
overnight borrowings
|
— | — | — | 97 | 1 | 2.06 | ||||||||||||||||||
Statutory
Trust Debentures
|
25,286 | 413 | 3.27 | 25,268 | 702 | 5.55 | ||||||||||||||||||
Other
borrowings
|
27,823 | 151 | 1.09 | 5,247 | 63 | 2.41 | ||||||||||||||||||
Total
interest-bearing liabilities
|
3,132,467 | 34,593 | 2.21 | 2,759,459 | 40,936 | 2.97 | ||||||||||||||||||
Non-interest-bearing
deposits
|
264,939 |
—
|
253,190 |
—
|
||||||||||||||||||||
Other
non-interest-bearing liabilities
|
50,037 |
—
|
74,682 |
—
|
||||||||||||||||||||
Total
liabilities
|
3,447,443 | 34,593 | 3,087,331 | 40,936 | ||||||||||||||||||||
Total
stockholders’ equity
|
615,358 | 618,669 | ||||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$ | 4,062,801 | $ | 3,706,000 | ||||||||||||||||||||
Net
interest income
|
$ | 59,895 | $ | 55,176 | ||||||||||||||||||||
Interest
rate spread
|
2.89 | % | 2.80 | % | ||||||||||||||||||||
Net
interest margin
|
3.23 | % | 3.31 | % | ||||||||||||||||||||
Average
interest-earning assets to average interest-bearing
liabilities
|
118.37 | % | 120.86 | % |
Payments
due by period
|
||||||||||||||||||||
Total
|
Less
than
One
Year
|
One
to
Three
Years
|
Three
to
Five
Years
|
More
than
Five
Years
|
||||||||||||||||
Commitments
to fund loans
|
$ | 77,575 | $ | 77,575 | $ | — | $ | — | $ | — | ||||||||||
Unused
lines of credit
|
173,348 | 121,788 | — | — | 51,560 | |||||||||||||||
Standby
letters of credit
|
26,073 | 26,073 | — | — | — | |||||||||||||||
Operating
lease obligations
|
25,007 | 5,057 | 6,173 | 3,254 | 10,523 | |||||||||||||||
Total
|
$ | 302,003 | $ | 230,493 | $ | 6,173 | $ | 3,254 | $ | 62,083 |
As of June 30, 2009: | ||||||||||||
Basis
point change in rates
|
-200
|
Base
Forecast
|
+200
|
|||||||||
(Dollars
in thousands)
|
||||||||||||
Net
Interest Income at Risk:
|
||||||||||||
Net
Interest Income
|
$ | 136,114 | $ | 139,586 | $ | 143,372 | ||||||
%
change
|
(2.49 | %) | 2.71 | % | ||||||||
Net
Income at Risk:
|
||||||||||||
Net
income
|
$ | 29,935 | $ | 32,258 | $ | 34,751 | ||||||
%
change
|
(7.20 | %) | 7.73 | % | ||||||||
Economic
Value at Risk:
|
||||||||||||
Equity
|
$ | 601,918 | $ | 658,346 | $ | 606,423 | ||||||
%
change
|
(8.57 | %) | (7.89 | %) |
Period
|
Total
Number
of
Shares
Purchased
|
Average
Price
Paid
Per
Share
|
Total
Number
Of
Shares
Purchased
as
Part of
Publicly
Announced
Plans
or
Programs
|
Maximum
Number
of Shares that
May Yet Be Purchased
Under
the
Plans or
Programs
|
|||||||||
April
1-30, 2009
|
—
|
—
|
—
|
—
|
|||||||||
May
1-31, 2009
|
71,300
|
$
|
8.80
|
71,300
|
1,752,284
|
||||||||
June
1-30, 2009
|
—
|
—
|
—
|
—
|
(1)
|
On
September 22, 2008, the Company announced that, on September 18, 2008, its
Board of Directors had approved a stock repurchase program authorizing the
Company to purchase up to 1,823,584 shares of the Company’s common
stock.
|
Item 3. | Defaults Upon Senior Securities | |
Not applicable. |
Item 4. | Submission of Matters to a Vote of Security Holders | |
FOR
|
WITHHELD
|
|||||||
Nominees
for a Three-Year Term:
|
||||||||
Elizabeth
H. Gemmill
|
78,340,937
|
1,258,581
|
||||||
Thomas
F. Hayes
|
76,648,642
|
2,950,876
|
||||||
Joseph
J. McLaughlin
|
73,118,291
|
6,481,227
|
FOR
|
AGAINST
|
ABSTAIN
|
||||||||
79,088,436
|
410,782
|
100,300
|
Item 5. | Other Information | |
Not applicable. |
Item 6. | Exhibits | ||
3.1
|
Charter
of Beneficial Mutual Bancorp, Inc. (1)
|
||
3.2
|
Bylaws
of Beneficial Mutual Bancorp, Inc. (2)
|
||
4.0
|
Form
of Common Stock Certificate of Beneficial Mutual Bancorp, Inc.
(1)
|
||
10.1
|
Beneficial
Mutual Bancorp, Inc. 2008 Equity Incentive Plan* (3)
|
||
10.2
|
Beneficial
Mutual Bancorp, Inc. 2008 Management Incentive Plan*
|
||
31.1
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer
|
||
31.2
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer
|
||
32.0
|
Section
1350
Certification
|
*
|
Management
contract or compensatory plan, contract or arrangement.
|
|
(1)
|
Incorporated
herein by reference to the Exhibits to the Company’s Registration
Statement on Form S-1 (File No. 333-141289), as amended, initially filed
with the Securities and Exchange Commission on March 14,
2007.
|
|
(2)
|
Incorporated
herein by reference to the Exhibits to the Company’s Current Report on
Form 8-K filed with the Securities and Exchange Commission on May 20,
2009.
|
|
(3)
|
Incorporated
herein by reference to the appendix to the Company’s definitive proxy
materials on Schedule 14A filed with the Securities and Exchange
Commission on April 16,
2008.
|
BENEFICIAL MUTUAL BANCORP, INC. | |||||
Dated:
August 7, 2009
|
By:
|
/s/
Gerard P. Cuddy
|
|
||
Gerard
P. Cuddy
|
|||||
President
and Chief Executive Officer
|
|||||
(principal
executive officer)
|
|||||
Dated:
August 7, 2009
|
By:
|
/s/
Joseph F. Conners
|
|||
Joseph
F. Conners
|
|||||
Executive
Vice President and
|
|||||
Chief
Financial Officer
|
|||||
(principal
financial officer)
|