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

Print
| Source: Beneficial Bank

PHILADELPHIA, Oct. 20, 2017 (GLOBE NEWSWIRE) -- Beneficial Bancorp, Inc. (“Beneficial”) (NASDAQ:BNCL), the parent company of Beneficial Bank (the “Bank”), today announced its financial results for the three and nine months ended September 30, 2017.  Beneficial recorded net income of $9.4 million and $27.3 million, or $0.13 and $0.37 per diluted share, for the three and nine months ended September 30, 2017, respectively, compared to net income of $10.1 million and $17.8 million, or $0.14 and $0.24 per diluted share, for the three and nine months ended September 30, 2016.  Net income for the three months ended September 30, 2016 included a $1.8 million investment gain from the sale of stock that we held in a financial institution that was acquired.  Net income for nine months ended September 30, 2016 included $8.8 million of merger and restructuring charges related to the acquisition of Conestoga Bank (“Conestoga”) and the Bank’s expense management reduction program.

On October 19, 2017, the Company declared a cash dividend of 6 cents per share, payable on or after November 9, 2017, to common shareholders of record at the close of business on October 30, 2017.

Highlights for the three and nine months ended September 30, 2017, are as follows: 

  • Net interest margin totaled 3.09% and 3.06% for the three and nine months ended September 30, 2017 compared to 3.08% and 3.00% for the same periods in 2016, respectively.  Net interest margin year over year has benefited from organic loan growth, the impact of the Conestoga acquisition, and continued improvement in the mix of our balance sheet.
  • Net interest income increased $2.4 million and $13.9 million, or 5.9% and 12.5%, respectively, for the three and nine months ended September 30, 2017, compared to the same periods in the prior year primarily due to the Conestoga acquisition and organic growth in our loan portfolio.
  • During the nine months ended September 30, 2017, our loan portfolio increased $22.0 million, representing 0.73% annualized loan growth.  Annualized growth of 4.0% in our commercial loan portfolio was offset by decreases in our consumer loans primarily as a result of the run-off of our discontinued indirect auto lending portfolio.
  • During the three and nine months ended September 30, 2017, the Company recorded a $352 thousand and a $1.4 million net gain on the sale of $3.6 million and $14.8 million of the guaranteed portion of SBA loans, respectively. 
  • Charge-offs continue to remain low.  Net charge-offs for the nine months ended September 30, 2017, totaled $2.1 million, or 7 basis points annualized of average loans, compared to net charge-offs of $1.0 million, or 4 basis points annualized of average loans, in the same period in the 2016. 
  • Asset quality metrics continued to remain strong with a non-performing assets to total assets, excluding government guaranteed student loans, of 0.36% at September 30, 2017.  Our allowance for loan losses totaled $43.3 million, or 1.07% of total loans, as of September 30, 2017, compared to $43.3 million, or 1.08% of total loans, as of December 31, 2016. 
  • During the nine months ended September 30, 2017, the Company purchased 703,800 shares under its previously announced stock repurchase plan.  Our tangible capital to tangible assets decreased to 15.34% at September 30, 2017, compared to 15.70% at September 30, 2016.  The decrease in this ratio can be attributed to share repurchases and cash dividends.  Tangible book value per share totaled $11.44 at September 30, 2017.

Gerard Cuddy, Beneficial’s President and CEO, stated “Our financial results continue to improve, driven by growth in our balance sheet, continued favorable asset quality and management of our expense base.  Although we are seeing some growth in our commercial lending businesses, the pace of growth has slowed.  Our focus remains on employee engagement, a superior customer experience, prudent capital management and organic growth to continue to improve the financial performance of our organization.”

Balance Sheet
Total assets increased $79.0 million, or 1.4%, to $5.82 billion at September 30, 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.   

Cash and cash equivalents increased $190.0 million to $477.0 million at September 30, 2017, from $287.0 million at December 31, 2016.  The increase in cash and cash equivalents was primarily driven by investment maturities and repayments and an increase in borrowed funds to meet projected future liquidity needs and secure lower funding rates.

Investments decreased $124.2 million, or 11.6%, to $951.1 million at September 30, 2017, compared to $1.08 billion at December 31, 2016, as we continued to focus on improving our balance sheet mix by reducing the percentage of our assets in 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 $22.0 million, or 0.73% annualized growth, to $4.03 billion at September 30, 2017, from $4.01 billion at December 31, 2016.  The increase in loans was primarily due to organic growth in our commercial real estate and residential real estate loan portfolios offset by an $89.4 million decrease in our consumer loan portfolio due primarily to a decrease in indirect auto loans resulting from our run-off of this portfolio segment.  As previously disclosed, we decided to exit the indirect lending business in the first quarter of 2017.

Deposits increased $12.7 million, or 0.41% annualized growth, to $4.17 billion at September 30, 2017, from $4.16 billion at December 31, 2016.  Deposit growth was primarily achieved through organic core deposit growth of $33.0 million in savings accounts, partially offset by a decrease in interest bearing business checking accounts.

Borrowings increased $50.0 million to $540.4 million at September 30, 2017, and are being used as a low cost funding source to replace higher cost brokered CDs.

Stockholders’ equity increased $24.6 million, or 2.4%, to $1.04 billion at September 30, 2017, from $1.01 billion at December 31, 2016.  The increase in stockholders’ equity was primarily due to net income of $27.3 million as well as the issuance of 1,015,943 shares from the exercise of stock options resulting in an increase in additional paid in capital, partially offset by the declaration of cash dividends and stock repurchases during the first nine months of 2017.

Net Interest Income
For the three months ended September 30, 2017, net interest income was $42.4 million, an increase of $2.4 million, or 5.9%, from the three months ended September 30, 2016. The increase in net interest income was primarily due to an increase in average interest earning assets of $284.7 million with growth occurring in our higher yielding loan portfolio.  The net interest margin totaled 3.09% for the three months ended September 30, 2017 as compared to 3.08% for the same period in 2016. During the three months ended September 30, 2017, the net interest margin was negatively impacted 11 basis points by higher cash levels due to slower than anticipated loan growth as average cash for the quarter totaled $388.0 million, an increase of $257.1 million from $130.9 million during the three months ended September 30, 2016. 

For the nine months ended September 30, 2017, Beneficial reported net interest income of $124.9 million, an increase of $13.9 million, or 12.5%, from the nine months ended September 30, 2016. The increase in net interest income was primarily due to the acquisition of Conestoga during the second quarter of 2016 and strong organic loan growth, which resulted in higher interest earning assets of $501.3 million in 2017 compared to 2016.  Our net interest margin increased to 3.06% for the nine months ended September 30, 2017, from 3.00% for the same period in 2016.

Non-interest Income
For the three months ended September 30, 2017, non-interest income totaled $7.1 million, a decrease of $1.1 million, or 13.8%, from the three months ended September 30, 2016.  The decrease was primarily due to a $1.8 million investment gain recorded during the third quarter of 2016 from the sale of stock that we held in a financial institution that was acquired, and a $493 thousand swap fee earned on a commercial real estate loan recorded during the third quarter of 2016.  These decreases to non-interest income were partially offset by a $352 thousand net gain on the sale of $3.6 million of SBA loans recorded during the third quarter of 2017, a $518 thousand increase in limited partnership earnings, and a $178 thousand increase in interchange fee income.

For the nine months ended September 30, 2017, non-interest income totaled $21.6 million, an increase of $2.0 million, or 10.2%, from the nine months ended September 30, 2016.  The increase was primarily due to a $1.4 million net gain on the sale of $14.8 million of SBA loans recorded during the nine months ended September 30, 2017, a $921 thousand increase in limited partnership earnings, a $627 thousand increase in interchange fee income, a $394 thousand increase in income from other life insurance, and a $322 thousand increase in insurance and advisory commission and fee income.  These increases to non-interest income were partially offset by a $1.8 million investment gain recorded during the third quarter of 2016 from the sale of stock that we held in a financial institution that was acquired, and a $493 thousand swap fee earned on a commercial real estate loan recorded during the third quarter of 2016.

Non-interest Expense
For the three months ended September 30, 2017, non-interest expense totaled $33.8 million, an increase of $576 thousand, or 1.7%, from the three months ended September 30, 2016.  The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $641 thousand due primarily due to increased costs associated with equity awards granted under the 2016 Omnibus Incentive Plan as well as annual merit increases.

For the nine months ended September 30, 2017, non-interest expense totaled $103.4 million, a decrease of $230 thousand, or 0.2%, from the nine months ended September 30, 2016. The decrease in non-interest expense was primarily due to $8.8 million of merger and restructuring charges related to the acquisition of Conestoga and our April 2016 expense management reduction program recorded during the nine months ended September 30, 2016.  This decrease to non-interest expense was partially offset by an increase in salaries and employee benefits of $5.6 million and a $1.6 million increase in board fees due primarily to increased costs associated with equity awards granted under the 2016 Omnibus Incentive Plan as well as annual merit increases. The decrease in non-interest expense during the nine months ended September 30, 2017 was also offset by a $513 thousand increase in occupancy expense related to the acquisition of Conestoga Bank.

Income Taxes
For the three months ended September 30, 2017, we recorded a provision for income taxes of $5.5 million, reflecting an effective tax rate of 36.8%, compared to a provision for income taxes of $4.9 million, reflecting an effective tax rate of 32.8% for the three months ended September 30, 2016.  The increase in the effective tax rate for the three months ended September 30, 2017 compared to the same period a year ago is primarily due to non-deductible compensation and lower tax-exempt interest income.

For the nine months ended September 30, 2017, we recorded a provision for income taxes of $13.7 million, reflecting an effective tax rate of 33.5%, compared to a provision for income taxes of $9.1 million, reflecting an effective tax rate of 33.9%, for the nine months ended September 30, 2016.  The net reduction in the effective tax rate for the nine months ended September 30, 2017 compared to the same period a year ago was primarily lowered by the impact of excess tax benefits recorded to income tax expense in 2017 associated with stock based compensation, partially offset by non-deductible compensation and lower tax-exempt interest income.  Management believes the effective tax rate for the remainder of 2017 will likely remain closer to the 35.0% statutory tax rate.

Asset Quality
Non-accruing loans, excluding government guaranteed student loans, increased $8.7 million to $20.8 million at September 30, 2017, compared to $12.1 million at December 31, 2016.  Our ratio of non-performing assets to total assets, excluding government guaranteed student loans, increased to 0.36% at September 30, 2017, compared to 0.22% at December 31, 2016.  The increase in non-accruing loans can primarily be attributed to the downgrade to doubtful and change to non-accrual of a shared national credit during the first quarter of 2017 with an outstanding balance of $8.7 million as of September 30, 2017.  The Company has reviewed the status of this shared national credit and determined that no charge-off or specific reserves were required as of September 30, 2017.

As a result of loan growth and charge-offs, we recorded a $750 thousand and $2.1 million provision for loan losses during the three and nine months ended September 30, 2017, respectively.

Our allowance for loan losses totaled $43.3 million, or 1.07% of total loans, as of September 30, 2017, compared to $43.4 million, or 1.06% of total loans, as of June 30, 2017, and $43.3 million, or 1.08% of total loans, as of December 31, 2016.

Capital
Beneficial’s and the Bank’s capital position remains strong relative to current regulatory requirements. Beneficial and the Bank continue to have substantial liquidity that has been retained in cash or invested in high quality government-backed securities. As of September 30, 2017, Beneficial’s tangible capital to tangible assets totaled 15.34%. In addition, at September 30, 2017, we had the ability to borrow up to $2.1 billion combined from the Federal Home Loan Bank of Pittsburgh and the Federal Reserve Bank of Philadelphia. Beneficial’s capital ratios are considered to be well capitalized and are as follows:

       Minimum Well Excess Capital
 9/30/2017 12/31/2016 9/30/2016 Capitalized Ratio 9/30/2017
          
Tier 1 Leverage (to average assets)16.16% 16.15% 16.57% 5.0% $631,266
Common Equity Tier 1 Capital (to risk weighted assets)21.89% 21.45% 21.93% 6.5%  624,954
Tier 1 Capital (to risk weighted assets)22.50% 22.06% 22.54% 8.0%  589,047
Total Capital Ratio (to risk weighted assets)23.58% 23.14% 23.67% 10.0%  551,444

The Bank’s capital ratios are considered to be well capitalized and are as follows:

        Minimum Well Excess Capital
 9/30/2017 12/31/2016 9/30/2016  Capitalized Ratio 9/30/2017
           
Tier 1 Leverage (to average assets)14.45% 14.76% 14.96%  5.0% $534,488
Common Equity Tier 1 Capital (to risk weighted assets)20.14% 20.17% 20.36%  6.5%  553,391
Tier 1 Capital (to risk weighted assets)20.14% 20.17% 20.36%  8.0%  492,522
Total Capital Ratio (to risk weighted assets)21.21% 21.25% 21.50%  10.0%  454,936

Maintaining strong capital levels remains one of our top priorities.  Our capital levels are in excess of well capitalized levels under Basel III regulatory requirements.

About Beneficial Bancorp, Inc.
Beneficial 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 since 1853. The Bank is the oldest and largest bank headquartered in Philadelphia, Pennsylvania, with 62 offices in the greater Philadelphia and South New Jersey regions. Insurance services are offered through Beneficial Insurance Services, LLC and wealth management services are offered through the Beneficial Advisors, LLC, both wholly owned subsidiaries of the Bank. Equipment leasing services are offered through Beneficial Equipment Leasing Corporation, which is a wholly owned subsidiary of the Bank.  For more information about the Bank and Beneficial, please visit www.thebeneficial.com.

Forward Looking Statements
This news release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets, changes in deposit flows, changes in the quality or composition of Beneficial’s loan or investment portfolios, our ability to successfully integrate the assets, liabilities, customers, systems and employees of Conestoga Bank into our operations and our ability to realize related revenue synergies and cost savings within expected time frames. Additionally, other risks and uncertainties may be described in Beneficial’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q or its other reports as filed with the Securities and Exchange Commission, which are available through the SEC's website at www.sec.gov. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, Beneficial assumes no obligation to update any forward-looking statements.


BENEFICIAL BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Financial Condition
(Dollars in thousands, except share amounts)

  September 30, June 30, December 31, September 30,
   2017   2017   2016   2016 
ASSETS:        
Cash and cash equivalents:        
Cash and due from banks $46,027  $50,078  $45,791  $49,507 
Interest-bearing deposits  430,989   333,306   241,255   136,550 
Total cash and cash equivalents  477,016   383,384   287,046   186,057 
         
Investment securities:        
Available-for-sale  369,210   427,174   451,544   502,534 
Held-to-maturity  558,659   540,057   602,529   610,629 
Federal Home Loan Bank stock, at cost  23,210   23,210   21,231   18,231 
Total investment securities  951,079   990,441   1,075,304   1,131,394 
         
Loans and leases:  4,032,521   4,094,732   4,010,568   3,887,909 
Allowance for loan and lease losses  (43,270)  (43,350)  (43,261)  (44,466)
Net loans and leases  3,989,251   4,051,382   3,967,307   3,843,443 
         
Accrued interest receivable  16,883   16,897   16,635   16,832 
         
Bank premises and equipment, net  71,745   72,982   75,444   76,656 
         
Other assets:        
Goodwill  169,002   169,002   169,125   169,275 
Bank owned life insurance  79,976   80,952   80,664   79,959 
Other intangibles  3,096   3,309   4,446   5,025 
Other assets  59,571   60,614   62,622   71,752 
Total other assets  311,645   313,877   316,857   326,011 
Total assets $5,817,619  $5,828,963  $5,738,593  $5,580,393 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY:        
Liabilities:        
Deposits:        
Non-interest bearing deposits $527,545  $568,391  $518,294  $511,460 
Interest bearing deposits  3,643,373   3,616,645   3,639,894   3,551,993 
Total deposits  4,170,918   4,185,036   4,158,188   4,063,453 
Borrowed funds  540,436   540,432   490,423   415,419 
Other liabilities  67,927   73,291   76,226   78,274 
Total liabilities  4,779,281   4,798,759   4,724,837   4,557,146 
Commitments and contingencies        
Stockholders’ equity:        
Preferred stock – $.01 par value  -   -   -   - 
Common stock – $.01 par value  844   843   834   833 
Additional paid-in capital  794,253   789,356   772,925   767,842 
Unearned common stock held by        
employee stock ownership plan  (27,695)  (28,312)  (29,546)  (30,163)
Retained earnings  413,210   408,162   399,620   396,361 
Accumulated other comprehensive loss, net  (23,777)  (24,483)  (25,833)  (18,255)
Treasury stock, at cost  (118,497)  (115,362)  (104,244)  (93,371)
Total stockholders’ equity  1,038,338   1,030,204   1,013,756   1,023,247 
Total liabilities and stockholders’ equity $5,817,619  $5,828,963  $5,738,593  $5,580,393 

 

BENEFICIAL BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
(Dollars in thousands, except per share amounts)

 For the Three Months Ended For the Nine Months Ended 
 September 30, June 30, September 30, September 30, September 30, 
  2017   2017   2016   2017   2016 
INTEREST INCOME:          
Interest and fees on loans and leases$42,969  $42,211  $39,645  $126,667  $107,378 
Interest on overnight investments 1,239   897   167   2,666   588 
Interest and dividends on investment securities:          
Taxable 5,220   5,416   5,900   15,991   18,425 
Tax-exempt 18   18   325   58   975 
Total interest income 49,446   48,542   46,037   145,382   127,366 
           
INTEREST EXPENSE:          
Interest on deposits:          
Interest bearing checking accounts 625   617   588   1,844   1,610 
Money market and savings deposits 1,516   1,491   1,456   4,467   4,281 
Time deposits 2,519   2,310   1,996   7,017   5,511 
Total 4,660   4,418   4,040   13,328   11,402 
Interest on borrowed funds 2,400   2,367   1,988   7,138   4,940 
Total interest expense 7,060   6,785   6,028   20,466   16,342 
Net interest income 42,386   41,757   40,009   124,916   111,024 
Provision for loan losses 750   750   -   2,100   - 
Net interest income after provision for loan losses 41,636   41,007   40,009   122,816   111,024 
           
NON-INTEREST INCOME:          
Insurance and advisory commission and fee income 1,798   1,626   1,664   5,516   5,194 
Service charges and other income 4,891   5,353   4,620   14,342   12,387 
Mortgage banking and SBA income 424   444   140   1,748   213 
Net (loss) gain on sale of investment securities (1)  (3)  1,822   (7)  1,814 
Total non-interest income 7,112   7,420   8,246   21,599   19,608 
           
NON-INTEREST EXPENSE:          
Salaries and employee benefits 18,285   18,557   17,644   55,670   50,038 
Occupancy expense 2,474   2,538   2,489   7,746   7,233 
Depreciation, amortization and maintenance 2,368   2,397   2,577   7,183   7,466 
Marketing expense 1,018   1,039   1,032   3,160   2,833 
Intangible amortization expense 212   570   580   1,350   1,611 
FDIC insurance 441   438   669   1,312   1,847 
Merger and restructuring charges -   -   (694)  -   8,765 
Professional fees 1,026   1,001   1,366   3,237   3,781 
Classified loan and other real estate owned related expense 420   262   311   950   776 
Other 7,594   7,412   7,288   22,810   19,298 
Total non-interest expense 33,838   34,214   33,262   103,418   103,648 
           
Income before income taxes 14,910   14,213   14,993   40,997   26,984 
Income tax expense 5,482   4,728   4,917   13,729   9,137 
           
NET INCOME$9,428  $9,485  $10,076  $27,268  $17,847 
           
EARNINGS PER SHARE – Basic$0.13  $0.13  $0.14  $0.37  $0.25 
EARNINGS PER SHARE – Diluted$0.13  $0.13  $0.14  $0.37  $0.24 
           
DIVIDENDS DECLARED PER SHARE$0.06  $0.06  $0.06  $0.18  $0.06 
           
Average common shares outstanding – Basic 70,781,924   70,630,256   70,593,701   70,487,219   72,643,659 
Average common shares outstanding – Diluted 71,294,232   71,168,059   71,725,229   71,093,015   73,577,326 

 

BENEFICIAL BANCORP, INC. AND SUBSIDIARIES
Unaudited Selected Consolidated Financial and Other Data
(Dollars in thousands) 

 Three Months Ended Nine Months Ended 
 September 30, 2017 June 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 
 AverageYield / AverageYield / AverageYield / AverageYield / AverageYield / 
 BalanceRate BalanceRate BalanceRate BalanceRate BalanceRate 
                
Investment securities:$1,360,2691.90% $1,351,5851.88% $1,305,4091.96% $1,339,7151.86% $1,396,4781.91% 
Overnight investments 388,0041.25%  342,3501.05%  130,8810.50%  331,1171.06%  153,8400.50% 
Stock 23,2114.66%  23,2114.66%  18,1164.49%  22,9914.66%  13,8594.45% 
Other investment securities 949,0542.09%  986,0242.09%  1,156,4122.08%  985,6072.06%  1,228,7792.05% 
                
Loans and leases: 4,069,3274.18%  4,065,5234.14%  3,839,5144.09%  4,066,0244.14%  3,507,9414.06% 
Residential 921,7513.90%  894,7544.02%  821,9594.04%  903,7983.94%  783,7934.08% 
Commercial real estate 1,669,6974.13%  1,681,1384.08%  1,489,9703.92%  1,664,6154.09%  1,358,0223.92% 
Business and small business 881,9554.46%  861,3214.30%  868,2294.30%  869,8224.36%  718,9494.15% 
Personal 595,9244.33%  628,3104.23%  659,3564.23%  627,7894.24%  647,1774.22% 
                
Total interest earning assets$5,429,5963.61% $5,417,1083.57% $5,144,9233.55% $5,405,7393.57% $4,904,4193.45% 
                
Deposits:$3,655,2340.51% $3,647,2700.49% $3,544,4120.45% $3,652,3940.49% $3,401,2440.45% 
Savings 1,302,0190.34%  1,306,2010.34%  1,250,3090.34%  1,299,5840.34%  1,217,2810.34% 
Money market 439,0450.36%  443,8580.34%  442,9230.34%  443,7460.35%  454,3350.35% 
Demand 924,9170.25%  913,3090.24%  874,9550.24%  918,4410.24%  834,7620.23% 
Demand - municipals 113,9610.18%  122,5470.22%  127,6230.19%  121,6040.20%  128,8210.15% 
Total core deposits 2,779,9420.31%  2,785,9150.30%  2,695,8100.30%  2,783,3750.30%  2,635,1990.30% 
                
Time deposits 875,2921.14%  861,3551.08%  848,6020.94%  869,0191.08%  766,0450.96% 
                
Borrowings 540,4881.74%  540,4291.73%  412,5361.89%  534,7881.76%  307,9772.14% 
                
Total interest bearing liabilities$4,195,7220.67% $4,187,6990.65% $3,956,9480.61% $4,187,1820.65% $3,709,2210.59% 
                
Non-interest bearing deposits 530,256   530,046   503,501   522,221   468,681  
                
Net interest margin 3.09%  3.07%  3.08%  3.06%  3.00% 

  

ASSET QUALITY INDICATORS (unaudited)September 30, June 30, December 31, September 30,
(Dollars in thousands) 2017   2017   2016   2016 
        
Non-performing assets:       
Non-accruing loans$20,788  $21,164  $12,069  $13,153 
Accruing loans past due 90 days or more 14,912   16,111   14,843   19,259 
Total non-performing loans 35,700   37,275   26,912   32,412 
        
Real estate owned 124   300   821   1,486 
        
Total non-performing assets$35,824  $37,575  $27,733  $33,898 
        
Non-performing loans to total loans and leases 0.89%  0.91%  0.67%  0.83%
Non-performing assets to total assets 0.62%  0.64%  0.48%  0.61%
Non-performing assets less accruing government guaranteed       
student loans past due 90 days or more to total assets 0.36% 0.37% 0.22%  0.26%
ALLL to total loans and leases 1.07%  1.06%  1.08% 1.14%
ALLL to non-performing loans 121.20%  116.30%  160.75%  137.19%
ALLL to non-performing loans, excluding government       
guaranteed student loans 208.15%  204.83%  358.45%  338.07%

 

Key performance ratios (annualized) are as follows for the three and nine months ended (unaudited):

 For the Three Months Ended For the Nine Months Ended
 September 30, June 30, December 31, September 30,
 2017  2017  2016  2017  2016 
PERFORMANCE RATIOS:         
(annualized)         
Return on average assets0.64% 0.65% 0.53% 0.63% 0.45%
Return on average equity3.61% 3.69% 2.97% 3.55% 2.29%
Net interest margin3.09% 3.07% 3.00% 3.06% 3.00%
Net charge-off ratio0.08% 0.05% 0.17% 0.07% 0.04%
Efficiency ratio68.37% 69.57% 73.77% 70.59% 79.34%
Efficiency ratio (excluding merger & restructuring charges)68.37% 69.57% 73.77% 70.59% 72.63%
Tangible common equity15.34% 15.17% 15.10% 15.34% 15.70%

Thomas D. Cestare
Executive Vice President and Chief Financial Officer
PHONE: (215) 864-6009