BNCL Beneficial Bancorp, Inc.

Beneficial Bancorp, Inc. (“Beneficial”) (NASDAQ:BNCL), the parent company of Beneficial Bank (the “Bank”), today announced its financial results for the three and six months ended June 30, 2018.  Beneficial recorded net income of $11.9 million and $21.7 million, or $0.16 and $0.30 per diluted share, for the three and six months ended June 30, 2018, respectively, compared to net income of $9.5 million and $17.8 million, or $0.13 and $0.24 per diluted share, for the three and six months ended June 30, 2017.

On July 19, 2018, the Company declared a cash dividend of 6 cents per share, payable on or after August 9, 2018, to common shareholders of record at the close of business on July 30, 2018.

Highlights for the three and six months ended June 30, 2018 are as follows:

• Net interest margin totaled 3.34% and 3.28% for the three and six months ended June 30, 2018 compared to 3.07% and 3.06% for the same periods in 2017, respectively.  Net interest income increased $3.4 million, or 8.1%, and $5.8 million, or 7.0%, for the three and six months ended June 30, 2018 compared to the same periods in the prior year.  During the three months ended June 30, 2018, the net interest margin was benefited $1.7 million, or 13 basis points, by loan prepayment income.  Net interest margin and net interest income also increased due to higher yields on the investment and loan portfolios following the recent Federal Reserve Bank federal funds rate increases.
• During the six months ended June 30, 2018, our core commercial real estate portfolio increased $20.2 million, 2.4% annualized growth, and our residential real estate portfolio increased $27.1 million, 5.7% annualized growth.
• Net charge-offs for the six months ended June 30, 2018, totaled $2.9 million, or 14 basis points annualized of average loans, compared to net charge-offs of $1.3 million, or 6 basis points annualized of average loans, in the same period in 2017.
• During the three and six months ended June 30, 2018, the Company recorded a $523 thousand and an $831 thousand net gain on the sale of $7.3 million and $12.1 million of the guaranteed portion of SBA loans, respectively. 
• Asset quality metrics continued to remain strong with non-performing assets to total assets, excluding government guaranteed student loans, of 0.36% as of June 30, 2018.  Our allowance for loan losses totaled $43.1 million, or 1.07% of total loans, as of June 30, 2018, compared to $43.3 million, or 1.07% of total loans, as of December 31, 2017. 
• Our effective tax rate decreased to 23.9% and 23.1% for the three and six months ended June 30, 2018 compared to 33.3% and 31.6% for the same periods in the prior year as a result of the Tax Cuts and Jobs Act of 2017, which was enacted on December 22, 2017 and lowered the federal corporate tax rate to 21% from 35%. 
• During the six months ended June 30, 2018, the Company purchased 945,400 shares under its previously announced stock repurchase plan.  Our tangible capital to tangible assets increased to 15.19% at June 30, 2018, compared to 15.17% at June 30, 2017.  Tangible book value per share totaled $11.35 at June 30, 2018.

Gerard Cuddy, Beneficial’s President and CEO, stated “Our financial results continue to improve, driven by a rise in interest rates, continued favorable asset quality and management of our expense base.  We are seeing some growth in our commercial real estate and residential lending businesses in line with the overall growth rate of the economy.  We are working diligently to build out the Neumann Finance team and infrastructure and expect to start booking leases late in the third quarter 2018 which we expect to positively impact future loan and revenue growth.”

Balance SheetTotal assets decreased $28.5 million, or 0.5%, to $5.77 billion at June 30, 2018, compared to $5.80 billion at December 31, 2017.  The decrease in total assets was primarily due to a decrease in total investment securities and loans, partially offset by an increase in cash and cash equivalents.

Cash and cash equivalents increased $29.2 million, or 5.2%, to $586.8 million at June 30, 2018, from $557.6 million at December 31, 2017.  The increase in cash and cash equivalents was primarily driven by investment maturities and repayments and a decrease in our total loan portfolio.

Investments decreased $54.8 million, or 6.3%, to $816.1 million at June 30, 2018, compared to $870.8 million at December 31, 2017. 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 decreased $10.8 million, or 0.3%, to $4.02 billion at June 30, 2018, from $4.03 billion at December 31, 2017.  During the six months ended June 30, 2018, our core commercial real estate portfolio increased $20.2 million, or 2.4% annualized growth, and our residential real estate portfolio increased $27.1 million, representing 5.7% annualized growth.  However, this growth was offset by a $60.5 million decrease in our total consumer loan portfolio, which was due primarily to a $33.8 million decrease in indirect auto loans resulting from our planned 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 $10.0 million, or 0.2%, to $4.16 billion at June 30, 2018, from $4.15 billion at December 31, 2017.  Deposit growth was primarily achieved through organic core deposit growth of $55.4 million in interest business checking accounts and $24.4 million of growth in time deposits, partially offset by the maturity of $74.6 million of higher cost brokered certificates of deposit, which we did not renew given our excess liquidity position.

Borrowings decreased $25.4 million to $515.0 million at June 30, 2018.  During the six months ended June 30, 2018, the Company paid off $25.8 million of a higher cost trust preferred debenture.

Stockholders’ equity decreased $12.3 million, or 1.2%, to $1.02 billion at June 30, 2018, from $1.03 billion at December 31, 2017.  The decrease in stockholders’ equity was primarily due to the declaration of cash dividends and stock repurchases, partially offset by net income of $21.7 million.

Net Interest Income For the three months ended June 30, 2018, net interest income was $45.1 million, an increase of $3.4 million, or 8.1%, from the three months ended June 30, 2017. The increase in net interest income was primarily due to an increase in yields on the investment and loan portfolios following recent Federal Reserve Bank federal funds rate increases. The Company paid off $25.8 million of a higher cost trust preferred debenture during the three months ended March 31, 2018. The net interest margin totaled 3.34% for the quarter ended June 30, 2018 as compared to 3.07% for the same period in 2017. During the three months ended June 30, 2018, the net interest margin was positively impacted by 13 basis points due to loan prepayments compared to a 3 basis point positive impact during the three months ended June 30, 2017. Also during the three months ended June 30, 2018, the net interest margin was negatively impacted 13 basis points by higher cash levels due to slower than anticipated loan growth as average cash for the period totaled $512.9 million, an increase of $170.5 million from $342.4 million during the three months ended June 30, 2017.

For the six months ended June 30, 2018, Beneficial reported net interest income of $88.3 million, an increase of $5.8 million, or 7.0%, from the six months ended June 30, 2017. The increase in net interest income was primarily due to an increase in yields on the investment and loan portfolios following recent Federal Reserve Bank federal funds rate increases.  Our net interest margin increased to 3.28% for the six months ended June 30, 2018, from 3.06% for the same period in 2017.

Non-interest IncomeFor the three months ended June 30, 2018, non-interest income totaled $7.4 million, a decrease of $37 thousand, or 0.5%, from the three months ended June 30, 2017.  The decrease was primarily due to a $331 thousand net decrease in income from bank-owned life insurance, partially offset by a $239 thousand increase in the net gain on the sale of SBA loans recorded during the three months ended June 30, 2018 compared to the same period in the prior year.

For the six months ended June 30, 2018, non-interest income totaled $14.0 million, a decrease of $440 thousand, or 3.0%, from the six months ended June 30, 2017.  The decrease was primarily due to a $335 thousand net decrease in income from bank-owned life insurance recorded during the six months ended June 30, 2018 compared to the same period in the prior year.

Non-interest ExpenseFor the three months ended June 30, 2018, non-interest expense totaled $35.3 million, an increase of $1.1 million, or 3.1%, from the three months ended June 30, 2017.  The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $1.2 million due primarily to enhanced medical coverage provided to our entire employee base, annual merit increases, an increase to our minimum wage and the costs associated with the build out of Neumann Finance.

For the six months ended June 30, 2018, non-interest expense totaled $71.6 million, an increase of $2.1 million, or 3.0%, from the six months ended June 30, 2017. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $2.3 million due primarily to enhanced medical coverage provided to our entire employee base, annual merit increases, an increase in our minimum wage and the costs associated with the build out of Neumann Finance.  Marketing expense increased $1.3 million due to the production and airing of a new television commercial. These increases were partially offset by a decline of $740 thousand in intangible amortization expense as a result of certain intangible assets reaching the end of their estimated lives, as well as an $837 thousand decrease in other expenses primarily due to declines in loan and on-line banking expenses.

Income TaxesFor the three months ended June 30, 2018, we recorded a provision for income taxes of $3.7 million, reflecting an effective tax rate of 23.9%, compared to a provision for income taxes of $4.7 million, reflecting an effective tax rate of 33.3% for the three months ended June 30, 2017.  For the six months ended June 30, 2018, we recorded a provision for income taxes of $6.5 million, reflecting an effective tax rate of 23.1%, compared to a provision for income taxes of $8.2 million, reflecting an effective tax rate of 31.6%, for the six months ended June 30, 2017.  The decrease in the effective tax rate in the three and six months ended June 30, 2018 compared to the same period a year ago is primarily due to the passage of the Tax Cuts and Jobs Act of 2017, which was enacted on December 22, 2017 and lowered the federal corporate tax rate to 21% from 35%.

Asset QualityNon-accruing loans, excluding government guaranteed student loans, increased $365 thousand to $20.9 million at June 30, 2018, compared to $20.5 million at December 31, 2017.  Our ratio of non-performing assets to total assets, excluding government guaranteed student loans, remained the same at 0.36% at both June 30, 2018 and December 31, 2017.  As a result of charge-offs, we recorded a $1.7 million and $2.7 million provision for loan losses during the three and six months ended June 30, 2018, respectively, compared to a $750 thousand and $1.4 million provision for loan losses during the same periods in the prior year.  Our allowance for loan losses totaled $43.1 million, or 1.07% of total loans, as of June 30, 2018, compared to $43.1 million, or 1.07% of total loans, as of March 31, 2018, and $43.3 million, or 1.07% of total loans, as of December 31, 2017.

CapitalBeneficial’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 June 30, 2018, Beneficial’s tangible capital to tangible assets totaled 15.19%. In addition, at June 30, 2018, we had the ability to borrow up to $2.2 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
	6/30/2018			12/31/2017			6/30/2017			Capitalized Ratio			6/30/2018
Tier 1 Leverage (to average assets)	15.65	%		16.19	%		16.06	%		5.0	%		$	593,322
Common Equity Tier 1 Capital (to risk weighted assets)	21.69	%		22.12	%		20.88	%		6.5	%			610,602
Tier 1 Capital (to risk weighted assets)	21.69	%		22.76	%		21.47	%		8.0	%			550,319
Total Capital Ratio (to risk weighted assets)	22.77	%		23.84	%		22.51	%		10.0	%			513,135

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

											Minimum Well			Excess Capital
	6/30/2018			12/31/2017			6/30/2017				Capitalized Ratio			6/30/2018
Tier 1 Leverage (to average assets)	13.20	%		14.46	%		14.75	%			5.0	%		$	456,616
Common Equity Tier 1 Capital (to risk weighted assets)	18.31	%		20.34	%		19.74	%			6.5	%			474,069
Tier 1 Capital (to risk weighted assets)	18.31	%		20.34	%		19.74	%			8.0	%			413,835
Total Capital Ratio (to risk weighted assets)	19.38	%		21.42	%		20.77	%			10.0	%			376,716

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 61 offices in the greater Philadelphia and South New Jersey regions. Insurance services are offered through Beneficial Insurance Services, LLC, which is a wholly owned subsidiary 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 StatementsThis 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 SUBSIDIARIESUnaudited Consolidated Statements of Financial Condition (Dollars in thousands, except share amounts)

	June 30,				March 31,				December 31,				June 30,
		2018				2018				2017				2017
ASSETS:
Cash and cash equivalents:
Cash and due from banks	$	52,440			$	40,306			$	45,048			$	50,078
Interest-bearing deposits		534,353				562,350				512,567				333,306
Total cash and cash equivalents		586,793				602,656				557,615				383,384
Investment securities:
Available-for-sale		294,428				301,920				310,308				427,174
Held-to-maturity		498,454				517,453				537,302				540,057
Federal Home Loan Bank stock, at cost		23,182				23,210				23,210				23,210
Total investment securities		816,064				842,583				870,820				990,441
Loans and leases:		4,023,310				4,003,465				4,034,130				4,094,732
Allowance for loan and lease losses		(43,068	)			(43,108	)			(43,267	)			(43,350	)
Net loans and leases		3,980,242				3,960,357				3,990,863				4,051,382
Accrued interest receivable		18,152				18,077				17,512				16,897
Bank premises and equipment, net		68,259				69,436				70,573				72,982
Other assets:
Goodwill		169,002				169,002				169,002				169,002
Bank owned life insurance		81,207				80,594				80,172				80,952
Other intangibles		2,486				2,685				2,884				3,309
Other assets		48,106				43,533				39,387				60,614
Total other assets		300,801				295,814				291,445				313,877
Total assets	$	5,770,311			$	5,788,923			$	5,798,828			$	5,828,963
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Liabilities:
Deposits:
Non-interest bearing deposits	$	592,375			$	564,450			$	563,185			$	568,391
Interest bearing deposits		3,568,131				3,623,612				3,587,308				3,616,645
Total deposits		4,160,506				4,188,062				4,150,493				4,185,036
Borrowed funds		515,000				515,000				540,439				540,432
Other liabilities		72,213				69,750				73,006				73,291
Total liabilities		4,747,719				4,772,812				4,763,938				4,798,759
Commitments and contingencies
Stockholders’ equity:
Preferred stock – $.01 par value		-				-				-				-
Common stock – $.01 par value		847				845				845				843
Additional paid-in capital		807,616				802,056				799,658				789,356
Unearned common stock held by employee stock ownership plan		(25,844	)			(26,461	)			(27,078	)			(28,312	)
Retained earnings		405,395				397,799				405,497				408,162
Accumulated other comprehensive loss, net		(29,406	)			(30,108	)			(26,127	)			(24,483	)
Treasury stock, at cost		(136,622	)			(128,545	)			(118,497	)			(115,362	)
Total Beneficial Bancorp, Inc. stockholders’ equity		1,021,986				1,015,586				1,034,298				1,030,204
Noncontrolling interest		606				525				592				-
Total stockholders' equity		1,022,592				1,016,111				1,034,890				1,030,204
Total liabilities and stockholders’ equity	$	5,770,311			$	5,788,923			$	5,798,828			$	5,828,963

 

 

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

	For the Three Months Ended												For the Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
		2018				2018				2017				2018				2017
INTEREST INCOME:
Interest and fees on loans and leases	$	45,415			$	43,054			$	42,211			$	88,468			$	83,698
Interest on overnight investments		2,314				2,055				897				4,369				1,426
Interest and dividends on investment securities:
Taxable		4,868				5,119				5,416				9,987				10,773
Tax-exempt		18				18				18				36				40
Total interest income		52,615				50,246				48,542				102,860				95,937
INTEREST EXPENSE:
Interest on deposits:
Interest bearing checking accounts		648				639				617				1,287				1,219
Money market and savings deposits		1,930				1,485				1,491				3,415				2,952
Time deposits		2,704				2,576				2,310				5,280				4,497
Total		5,282				4,700				4,418				9,982				8,668
Interest on borrowed funds		2,208				2,345				2,367				4,553				4,737
Total interest expense		7,490				7,045				6,785				14,535				13,405
Net interest income		45,125				43,201				41,757				88,325				82,532
Provision for loan and lease losses		1,666				999				750				2,665				1,350
Net interest income after provision for loan and lease losses		43,459				42,202				41,007				85,660				81,182
NON-INTEREST INCOME:
Insurance and advisory commission and fee income		1,402				1,923				1,626				3,325				3,719
Service charges and other income		5,232				4,196				5,353				9,428				9,451
Mortgage banking and SBA income		703				468				444				1,171				1,323
Net gain (loss) on investment securities		46				77				(3	)			123				(6	)
Total non-interest income		7,383				6,664				7,420				14,047				14,487
NON-INTEREST EXPENSE:
Salaries and employee benefits		19,748				19,957				18,557				39,705				37,385
Occupancy expense		2,489				3,031				2,538				5,520				5,273
Depreciation, amortization and maintenance		2,295				2,282				2,397				4,577				4,813
Marketing expense		1,474				1,920				1,039				3,394				2,141
Intangible amortization expense		199				199				570				398				1,138
FDIC insurance		413				429				438				842				870
Professional fees		1,200				1,037				1,001				2,237				2,212
Classified loan and other real estate owned related expense		364				224				262				588				530
Other		7,105				7,278				7,412				14,382				15,219
Total non-interest expense		35,287				36,357				34,214				71,643				69,581
Income before income taxes		15,555				12,509				14,213				28,064				26,088
Income tax expense		3,711				2,785				4,728				6,496				8,248
CONSOLIDATED NET INCOME	$	11,844			$	9,724			$	9,485			$	21,568			$	17,840
Net loss attributable to noncontrolling interest		(94	)			(67	)			-				(161	)			-
NET INCOME ATTRIBUTABLE TO BENEFICIAL BANCORP, INC.	$	11,938			$	9,791			$	9,485			$	21,729			$	17,840
EARNINGS PER SHARE – Basic	$	0.16			$	0.13			$	0.13			$	0.30			$	0.24
EARNINGS PER SHARE – Diluted	$	0.16			$	0.13			$	0.13			$	0.30			$	0.24
DIVIDENDS DECLARED PER SHARE	$	0.06			$	0.31			$	0.06			$	0.37			$	0.12
Average common shares outstanding – Basic		70,621,336				70,903,395				70,630,256				70,761,586				70,337,425
Average common shares outstanding – Diluted		71,233,890				71,536,544				71,168,059				71,385,042				70,993,059

 

 

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

	For the Three Months Ended															For the Six Months Ended
	June 30, 2018					March 31, 2018					June 30, 2017					June 30, 2018					June 30, 2017
	Average		Yield /			Average		Yield /			Average		Yield /			Average		Yield /			Average		Yield /
	Balance		Rate			Balance		Rate			Balance		Rate			Balance		Rate			Balance		Rate
Investment securities:	$	1,344,525	2.14	%		$	1,395,784	2.06	%		$	1,351,585	1.88	%		$	1,370,013	2.10	%		$	1,329,269	1.84	%
Overnight investments		512,857	1.78	%			537,611	1.53	%			342,350	1.05	%			525,166	1.65	%			302,202	0.95	%
Stock		23,183	6.39	%			23,213	8.14	%			23,211	4.66	%			23,198	7.26	%			22,880	4.66	%
Other investment securities		808,485	2.23	%			834,960	2.24	%			986,024	2.09	%			821,649	2.24	%			1,004,187	2.05	%
Loans and leases:		4,020,939	4.50	%			4,010,689	4.30	%			4,065,523	4.14	%			4,015,840	4.40	%			4,064,344	4.12	%
Residential		958,698	3.91	%			945,042	3.92	%			894,754	4.02	%			951,908	3.91	%			894,672	3.95	%
Commercial real estate		1,686,332	4.61	%			1,676,673	4.26	%			1,681,138	4.08	%			1,681,529	4.43	%			1,662,032	4.07	%
Business and small business		870,986	4.78	%			854,654	4.66	%			861,321	4.30	%			862,863	4.72	%			863,654	4.31	%
Personal		504,923	4.74	%			534,320	4.56	%			628,310	4.23	%			519,540	4.65	%			643,986	4.20	%
Total interest earning assets	$	5,365,464	3.90	%		$	5,406,473	3.73	%		$	5,417,108	3.57	%		$	5,385,853	3.82	%		$	5,393,613	3.56	%
Deposits:	$	3,590,481	0.59	%		$	3,617,339	0.53	%		$	3,647,270	0.49	%		$	3,603,836	0.56	%		$	3,650,952	0.48	%
Savings		1,303,878	0.45	%			1,292,482	0.34	%			1,306,201	0.34	%			1,298,211	0.40	%			1,298,347	0.34	%
Money market		412,282	0.47	%			419,881	0.37	%			443,858	0.34	%			416,061	0.42	%			446,136	0.34	%
Demand		958,581	0.25	%			938,808	0.25	%			913,309	0.24	%			948,749	0.25	%			915,150	0.24	%
Demand - municipals		106,638	0.16	%			120,453	0.20	%			122,547	0.22	%			113,508	0.18	%			125,489	0.20	%
Total core deposits		2,781,379	0.37	%			2,771,624	0.31	%			2,785,915	0.30	%			2,776,529	0.34	%			2,785,122	0.30	%
Time deposits		809,102	1.34	%			845,715	1.24	%			861,355	1.08	%			827,307	0.56	%			865,830	1.05	%
Borrowings		515,000	1.70	%			535,403	1.75	%			540,429	1.73	%			525,145	1.72	%			531,891	1.77	%
Total interest bearing liabilities	$	4,105,481	0.73	%		$	4,152,742	0.69	%		$	4,187,699	0.65	%		$	4,128,981	0.71	%		$	4,182,843	0.65	%
Non-interest bearing deposits		555,273					537,107					530,046					546,240					518,137
Net interest margin			3.34	%				3.20	%				3.07	%				3.28	%				3.06	%

 

ASSET QUALITY INDICATORS	June 30,				March 31,				December 31,				June 30,
(Dollars in thousands)		2018				2018				2017				2017
Non-performing assets:
Non-accruing loans	$	20,886			$	23,292			$	20,521			$	21,164
Accruing loans past due 90 days or more		22,204				21,310				14,152				16,111
Total non-performing loans	$	43,090			$	44,602			$	34,673			$	37,275
Real estate owned		102				204				189				300
Total non-performing assets	$	43,192			$	44,806			$	34,862			$	37,575
Non-performing loans to total loans and leases		1.07	%			1.11	%			0.86	%			0.91	%
Non-performing assets to total assets		0.75	%			0.77	%			0.60	%			0.64	%
Non-performing assets less accruing government guaranteed
student loans past due 90 days or more to total assets		0.36	%			0.41	%			0.36	%			0.37	%
ALLL to total loans and leases		1.07	%			1.08	%			1.07	%			1.06	%
ALLL to non-performing loans		99.95	%			96.65	%			124.79	%			116.30	%
ALLL to non-performing loans, excluding government
guaranteed student loans		206.21	%			185.08	%			210.84	%			204.83	%

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

	For the Three Months Ended									For the Six MonthsEnded
	June 30,			March 31,			December 31,			June 30,
	2018			2018			2017			2018			2017
PERFORMANCE RATIOS:
(annualized)
Return on average assets	0.83	%		0.68	%		(0.25	%)		0.75	%		0.62	%
Return on average assets (excluding tax reform act impact)	0.83	%		0.68	%		0.65	%		0.75	%		0.62	%
Return on average equity	4.67	%		3.89	%		(1.38	%)		4.28	%		3.52	%
Return on average equity (excluding tax reform act impact)	4.67	%		3.89	%		3.63	%		4.28	%		3.52	%
Net interest margin	3.34	%		3.20	%		3.28	%		3.28	%		3.06	%
Net charge-off ratio	0.17	%		0.12	%		0.10	%		0.14	%		0.06	%
Efficiency ratio	67.20	%		72.91	%		68.20	%		69.98	%		71.72	%
Efficiency ratio (excluding merger & restructuring charges)	67.20	%		72.91	%		69.93	%		69.98	%		71.72	%
Tangible common equity	15.19	%		15.02	%		15.33	%		15.19	%		15.17	%
Tangible common equity (excluding tax reform act impact)	15.19	%		15.02	%		15.53	%		15.19	%		15.17	%

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