Beneficial Mutual Bancorp Inc - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - FORM 8-K - Beneficial Mutual Bancorp Inc	t67083_8k.htm

Exhibit 99.1

Investor Presentation

Beneficial Mutual Bancorp, Inc. (MHC)

NASDAQ: BNCL

May 14, 2010

Safe Harbor Statement

This presentation may contain projections and other “forward-looking statements”

This presentation may contain projections and other forward looking statements

within the meaning of the federal securities laws. These statements are not historical

facts, rather statements based on the current expectations of Beneficial Mutual

Bancorp, Inc. (the “Company”) regarding its business strategies, intended results and

future performance. Forward-looking statements are preceded by terms such as

future performance. Forward looking statements are preceded by terms such as

“expects,” “believes,” “anticipates,” “intends” and similar expressions.

Management’s ability to predict results or the effect of future plans or strategies is

inherently uncertain. Factors that could affect actual results include interest rate

trends the general economic climate in the market area in which the Company

trends, the general economic climate in the market area in which the Company

operates, as well as nationwide, the Company’s ability to control costs and expenses,

competitive products and pricing, loan delinquency rates, changes in federal and state

legislation and regulation and other factors that may be described in the Company’s

filings with the Securities and Exchange Commission including its Annual Reports on

filings with the Securities and Exchange Commission, including its Annual Reports on

Form 10-K and Quarterly Reports on Form 10-Q and other required filings. These

factors should be considered in evaluating the forward-looking statements and undue

reliance should not be placed on such statements. The Company assumes no

obligation to update any forward-looking statements

obligation to update any forward looking statements.

This presentation includes interim and unaudited financials, which are subject to

further review by the Company’s independent accountants.

Beneficial Mutual Bancorp, Inc.

• Holding Company for Beneficial Bank

– Founded in 1853

Founded in 1853

– Oldest and largest bank headquartered in Philadelphia

– 68 branches

• 37 in Pennsylvania

• 31 in New Jersey, including 2 new Cherry Hill campuses opening on May 15, 2010

• IPO Date: Julyy 2007

• Ticker: BNCL

• Website: www.thebeneficial.com

• 4th largest publicly traded MHC in U.S.

– Market Capitalization: $812 million

A D V 101 318 101,318 shhares

Average Dail ily Vollume:

–

• Balance Sheet Strength (March 31, 2010)

– Assets: $4.7 billion

– Deposits: $3.6 billion

– Loans: $2.8 billion

Eit $646$646 million

Equity: illi

– TARP: $0

• Relationships

– Deposit Accounts: 281 thousand

– Loan Accounts: 63 thousand

AAssetts under managementt: $150 illi

d $150 million

Our Philosophy

“Vacere Comptus Verus” – Do what’s right

Education Company

Vacere Comptus Verus Do what s right

• Educate our customers to do the right thing financially

Educate our customers to do the right thing financially

• Educate ourselves to understand the situation, goals and

needs of our customers

Invest in tools and resources for our customers

• FinanceWorks

• Small Business FinanceWorks

• BankThanks Reward Program

• Mobile Banking

Mobile Banking

•5th largest metropolitan region in the United States

Our Market -Greater Philadelphia Area

• The Philadelphia MSA is a resilient market that has experienced consistent

growth over the past decade

railroads• 92 colleges and universities

• Philadelphia is Amtrak’s third busiest station in the country and home to three

major shipping ports including one of the very few directly served by three Class I

railroads

– Median household income of $64,422 versus a nationwide median of $54,719

– Projected household income growth of approximately 4% between 2009 and 2014

• The region’s unemployment picture has fared well in the face of the current

recession

– March 2010 unemployment of 9.4% versus a nationwide unemployment rate of 9.9%

in April

• March pending home sales in the eight-county Philadelphia region were up 35%

comppared to the same period in 2009;; nationally pendingg sales were upp 21%

p yp

Sources: U.S. Census Bureau, 2008 Population Estimates. 2009 Q1 ACCRA. Bureau of Economic Analysis, 2009. The Role of Metro Areas in the U.S. Economy. The U.S. Conference of

Mayors, 2006. National Association of Home Builders/Wells Fargo Bank, March 2009. Studley Report, 4Q 2005. Grubb and Ellis, March 2009. Global Insights -Spring 2009 Forecast.

Competitive Landscape

• Beneficial operates in a dynamic medium between regional and super regional

competitors, and local community banks

– Big enough to compete with the largest financial institutions

• Ranked 11 by deposit market share in the Philadelphia MSA with 2% market share

• Deposit market share percentage increased 15% between 2008 and 2009

Deposit market share percentage increased 15% between 2008 and 2009

– Size and scope that smaller community banks cannot match

• There are 155 banking institutions in the Philadelphia metro area

– 119 of these institutions have less than 10 branch locations

– Only 8 of these institutions have more than 50 branch locations

Branch Map

Management Team

Name Position

• Gerard Cuddy Chief Executive Officer Gerard Cuddy Chief Executive Officer

• Robert Bush Advisory Services

• Cecile Colonna Human Resources

• Amy Hannigan Chief Accounting Officery g g

• Denise Kassekert Relationship Banking

• Robert Maines Enterprise Risk Management

• Andrew Miller Lending

• Joanne Ryder Brand and Strategy

Total Assets ($mm)

$5,000

$4,002

$4,674 $4,710

$4,000

$4,500

$3,558

$500

$1,000

2005 2006 2007 2008 2009 1Q10

$2,300 $2,392

$3,000

$3,500

$2,500

$1 500

$2,000

$1,500

Deposit Gathering

• Education-based sales environment

• Enhanced bundled product offerings to grow and

strengthen targeted relationships

• Focused and consistent business development

activities

• Expanded cash management services to attract

larger commercial relationships

• Concentration on anchoring relationships through

g p g

cross referrals

Total Deposits ($mm)

$4,000

$3,509

$3,589

$3,000

$3,500

$2,742

$2,500

$1,500

$2,000

$500

$1,000

2005 2006 2007 2008 2009 1Q10

$2,465

$1,678 $1,666

Historical Deposit Composition

100%

80%

100%

38%

27% 24%

60%

53%

42%

34%

40%

32%

34%

34% 34%

20%

10%

32%

16%

20%

32%

35%

Non-Interest Bearing DDA Interest Checking Savings and Money Market Time

2006 2007 2008 2009 1Q10

10% 8% 7% 7%

Credit Culture

• In market lender and local decision maker

• In-market lender and local decision maker

• Disciplined underwriting through all credit cycles

• No subprime lending

• Portfolio lender

• Diverse portfolio

– Commercial

– Consumer

– Residential

• Proactive risk management

Proactive risk management

• Enhanced credit infrastructure

• Credit officers

• Enhanced workout capability

Enhanced workout capability

Loans ($mm)

$3,000

$2,425

$2,790 $2,785

$2,500

$2,121 $2,000

$1,000

$1,500

$500

2005 2006 2007 2008 2009 1Q10

$1,689 $1,733 $1,689

Historical Loan Composition

100%

80%

90%

100%

11% 11%

30%

19%

18%

18% 18%

60%

70%

23%

18%

21%

15%

24%

11%

24%

11%

30%

40%

50%

17%

23%

13%

19%

16%

10%

20%

30%

24%

33% 33%

28%

31%

CRE C&I 1 -4 Family Home Equity Consumer

2006 2007 2008 2009 1Q10

Credit Quality

Non-Performing Assets / Total Assets*

2.45%

2.19% 2.00%

3.00%

0.14% 0.15% 0.15%

1.00%

0.35% 0.16%

0.00%

1.00%

2003 2004 2005 2006 2007 2008 2009 2010

Loan Loss Reserves / Gross Loans

2003 2004 2005 2006 2007 2008 2009 1Q10

1.64%

152% 160%

1.80%

1.09%

0.99%

1.03%

1.67%

1.52%

1.10%

1.13%

1.20%

1.40%

1.60%

16(*) Excludes accruing loans past due 90 days or more

Source: SNL Financial

0.80%

1.00%

2003 2004 2005 2006 2007 2008 2009 1Q10

Beneficial Advisors, LLC

• Long term trusted advisor model

• 14 advisors and retirement plan specialists

• Client centered and solution driven consultative

process

– Life events approach

Life events approach

• 401(k) and retirement plan initiatives

• Open architecture investment management platform

– Independent non-biased offerings

• Integrated sales model designed to grow core

deposits

Beneficial Insurance Services, LLC

Long term insurance advocate and business advisor

• Long term insurance advocate and business advisor

model

• $100 million in ppremium volume

• Diverse lines of business, products and insurance

providers

– C ilP dC l

Commercial Property and Casualty

– Life, Health and Employee Benefits

– Professional Liability

– Personal Lines for High Net Worth Individuals

• Niche marketer with exclusive programs

• FFormali lized cross refferrall process with ith other sttrattegiic

d th

areas of the Bank

Historical Income Statement

Year Ended

(D ll V l i Th d )(Dollar Values in Thousands) 2004 2005 2006 2007 2008 2009 1Q10

Net Interest Income $66,137 $65,728 $64,430 $84,120 $114,011 $127,342 $36,304

Provision (2,400) (1,703) (1,575) (2,470) (18,901) (15,697) (4,950)

Non-Interest Income 3,168 10,862 10,531 13,372 23,604 26,847 8,304

Non-Interest Expense (50,577) (56,961) (59,439) (101,032) (98,303) (119,866) (30,485)

Pre-Tax Earnings 16,328 17,926 13,947 (6,010) 20,411 18,626 9,173

Tax Expense (4,704) (4,728) (2,322) 4,465 (3,865) (1,537) (1,646)

$ $ $ $ $ $ $Reported Net Income $11,624 $13,198 $11,625 ($1,545) $16,546 $17,089 $7,527

Adjustment for Charitable Foundation Expense (After Tax) 6,495

Adjustment for Reduction In Force (After Tax) 2,539

Pension Curtailment for Defined Benefit Plan (After Tax) (4,738)

Adjusted Net Income $11,624 $13,198 $11,625 $7,489 $11,808 $17,089 $7,527

Adjusted ROAA 0.51% 0.56% 0.49% 0.26% 0.31% 0.40% 0.64%

Historical Performance Ratios

Net Interest Margin

328% 3 44% 343% 360%

3.03%

2.90% 2.87%

3.33% 3.28%

3.17%

3.34%

3.08%

3.14%

3.44%

3.28%

3.10% 3.18%

3.43%

2.00%

2.40%

2.80%

3.20%

3.60%

2004 2005 2006 2007 2008 2009 20101Q10

Non-Interest Income / Average Assets^

2004 2005 2006 2007 2008 2009 1Q10

0.45%

0.72%

0.66% 0.64% 0.62%

0.77% 0.69%

0.63%

0.60%

0.80%

Non Interest Expense / Average Assets+

0.23%

0.41% 0.42%

0.61%

0.51%

0.45%

0.54%

0.00%

0.20%

0.40%

2004 2005 2006 2007 2008 2009 1Q10

Non-Interest Expense / Average Assets

2.22%

2.40%

2.51% 2.60% 2.76%

3.48%

2.60%

2.25% 2.17%

2.20%

2.07% 2 27%

2.62% 2.45% 2.00%

3.00%

4.00%

BNCL Peers

(*) Peer group includes Selected east coast financial institutions with deposits between $1.0 and $7.0 billion

(^) Excludes realized gains and losses on securities

(+) NIE / AA includes one-time costs associated with 2007 company transition

Source: Company; SNL Financial

2.07% 2.27%

1.00%

2004 2005 2006 2007 2008 2009 1Q10

Historical Performance Ratios

Yield on Loans

6.29%

6.87%

6.69%

6.02%

6.24%

6.09%

5.58% 6.00%

6.50%

7.00%

5.33%

5.49%

5.98%

5.92%

5.29% 5.27%

5.38%

5.00%

5.50%

2004 2005 2006 2007 2008 2009 1Q10

Cost of Deposits

2.69%

3.12%

238% 20%

3.00%

3.50%

1.63%

2.02%

2.22%

1.51%

2.81%

1.06%

2.61%

1.47%

1.74%

2.38%

1.63%

1.12%

050%

1.00%

1.50%

2.00%

2.50%

BNCL Peers (*) Peer group includes Selected east coast financial institutions with deposits between $1.0 and $7.0 billion

Source: Company; SNL Financial

0.50%

2004 2005 2006 2007 2008 2009 1Q10

Substantial Capital

20.0%

17.4%

13 7%

15.3%

14.1%

16.0%

18.0%

11.6% 11.6%

13.7%

11.6% 11.3%

11.9%

12.2% 13.6%

11.5%

11.3%

11.1%

12.3%

11.5%

10 0%

12.0%

14.0%

6.0%

8.0%

10.0%

2.0%

4.0%

0.0%

2003 2004 2005 2006 2007 2008 2009

Total Equity / Total Assets Tangible Equity / Tangible Assets

1Q10

Peer Comparison

Tangible Equity / Tangible Assets Total Risk-Based Capital Ratio

11.28%

7.51% 12.25%

18.15%

BNCL Peers BNCL Peers

BNCL -As of March 31, 2010, Peers – As of December 31, 2009

(*) Peer group includes Selected east coast financial institutions with deposits between $1.0 and $7.0 billion

Source: Company; SNL Financial

Valuation Analysis

Price /Price /

Fully

Total LQA Converted Core LQA Dividend

Assets ROAA TBV TBV Assets Deposits Deposits Revenue Yield

Company State Ticker ($mm) (%) (%) (%) (%) (%) (%) (x) (%)

TFS Financial Corporation (MHC) OH TFSL 10,737 0.11 248 94 40.3 49.7 62.7 15.6 2.00

Capitol Federal Financial (MHC) KS CFFN 8,485 0.70 265 99 29.8 58.6 68.9 12.9 5.84

Investors Bancorp, Inc. (MHC) NJ ISBC 8,749 0.63 191 101 18.9 27.5 33.7 6.3 0.00

Beneficial Mutual Bancorp, Inc. (MHC) PA BNCL 4,710 0.63 170 93 18.7 24.5 25.8 19.7 0.00

ViewPoint Financial Group (MHC) TX VPFG 2,477 0.45 213 102 17.9 23.3 33.5 4.9 1.13

Kearny Financial Corp. (MHC) NJ KRNY 2,252 0.34 179 82 31.7 46.3 57.8 11.7 1.92

Wauwatosa Holdings, Inc. (MHC) WI WSBF 1,845 0.04 74 50 6.8 10.7 13.6 1.9 0.00

Oritani Financial Corp. (MHC) NJ ORIT 2,054 0.99 243 93 30.1 49.2 60.5 8.5 1.80

Rockville Financial, Inc. (MHC) CT RCKB 1,560 0.73 148 84 15.1 20.8 25.0 3.9 1.92

Median 2,365 0.54 202 93 24.4 36.9 45.8 7.4 1.86

Note: BNCL excluded from median calculation

Pricing data as of May 11, 2010

Source: SNL Financial

Independent Rankings

• BauerFinancial, Inc. has been a source for unbiased,

independent bank and credit union ratings since 1983

– Beneficial continues to receive Bauer’s highest, five-star rating

– Beneficial has earned a Bauer recommendation rating for the past

78 consecutive quarters

• Bank Director is the premier magazine written for directors of Bank Director is the premier magazine written for directors of

financial companies and has become recognized as an

essential source for the top decision makers in the industry

Scorecard– The Bank Performance Scorecard is compprised of six pperformance

categories that measure profitability, capitalization, and assetquality

– Beneficial was ranked 66th in the annual Bank Performance

Scorecard

Independent Rankings

• BauerFinancial, Inc. has been a source for unbiased,

independent bank and credit union ratings since 1983

– Beneficial continues to receive Bauer’s highest, five-star rating

– Beneficial has earned a Bauer recommendation rating for the past

78 consecutive quarters

• Bank Director is the premier magazine written for directors of Bank Director is the premier magazine written for directors of

financial companies and has become recognized as an

essential source for the top decision makers in the industry

Scorecard– The Bank Performance Scorecard is compprised of six pperformance

categories that measure profitability, capitalization, and assetquality

– Beneficial was ranked 66th in the annual Bank Performance

Scorecard

2010 Priorities

• Education Company

– Educating customers to do the right thing financially

•Cappital Allocation

– Continued fundamental organic growth

– Opportunistic acquisitions

• Enhanced Risk Managgement

– Continue credit and loss prevention discipline

– Enterprise control self-assessments

Educating

Cross• Branch Network Opptimization Opppp ortunities

• Relationship Banking

– Align our customers’ needs with our products and services

• Cross-Educating

Cherry Hill Campuses– The Brand Evolution

Attached files

Stock widget

Investing forum

Beneficial Mutual Bancorp Inc Reports

Also read