Company Quick10K Filing
Beneficial Bancorp
Price13.82 EPS0
Shares75 P/E30
MCap1,034 P/FCF16
Net Debt-852 EBIT69
TEV181 TEV/EBIT3
TTM 2018-12-31, in MM, except price, ratios
10-K 2018-12-31 Filed 2019-02-26
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-07-26
10-Q 2018-03-31 Filed 2018-04-26
10-K 2017-12-31 Filed 2018-02-28
10-Q 2017-09-30 Filed 2017-10-26
10-Q 2017-06-30 Filed 2017-07-27
10-Q 2017-03-31 Filed 2017-04-27
10-K 2016-12-31 Filed 2017-02-27
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-07-28
10-Q 2016-03-31 Filed 2016-04-28
10-K 2015-12-31 Filed 2016-02-26
10-Q 2015-09-30 Filed 2015-10-29
10-Q 2015-06-30 Filed 2015-07-30
10-Q 2015-03-31 Filed 2015-04-30
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-12-10
8-K 2019-02-01
8-K 2019-02-01
8-K 2018-12-06
8-K 2018-11-29
8-K 2018-10-19
8-K 2018-08-08
8-K 2018-08-07
8-K 2018-07-20
8-K 2018-06-12
8-K 2018-04-20
8-K 2018-04-19
8-K 2018-04-19
8-K 2018-02-13
8-K 2018-02-01

BNCL 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1 - Summary of Significant Accounting Policies
Note 2 - Nature of Operations
Note 3 - Non-Interest Income
Note 4 - Changes in and Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Note 5 - Earnings per Share
Note 6 - Investment Securities
Note 7 - Loans
Note 8 - Goodwill and Other Intangibles
Note 9 - Other Assets
Note 10 - Deposits
Note 11 - Borrowed Funds
Note 12 - Other Liabilities
Note 13 - Regulatory Capital Requirements
Note 14 - Income Taxes
Note 15 - Pension and Other Postretirement Benefits
Note 16 - Stock Based Compensation
Note 17 - Commitments and Contingencies
Note 18 - Recent Accounting Pronouncements
Note 19 - Fair Value of Financial Instruments
Note 20 - Servicing Rights
Note 21 - Derivative Financial Instruments
Note 22 - Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosure About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 a18-8643_1ex31d1.htm
EX-31.2 a18-8643_1ex31d2.htm
EX-32.0 a18-8643_1ex32d0.htm

Beneficial Bancorp Earnings 2018-03-31

Balance SheetIncome StatementCash Flow

10-Q 1 a18-8643_110q.htm 10-Q

Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

(Mark one)

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2018

 

OR

 

¨         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                to               

 

Commission file number:   001-36806

 

BENEFICIAL BANCORP, INC.

(Exact name of registrant as specified in its charter)

 

Maryland

 

47-1569198

(State or other jurisdiction of

 

(I.R.S. Employer Identification No.)

incorporation or organization)

 

 

 

1818 Market Street, Philadelphia, Pennsylvania

 

19103

(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)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an “emerging growth company.”  See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one)

 

Large Accelerated Filer x

Accelerated Filer o

 

 

Non-Accelerated Filer o

Smaller Reporting Company o

(Do not check if a smaller reporting company)

 

 

Emerging Growth Company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial standards provided pursuant to Section 7(a)(2)(B) of the Securities Act o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

 

As of April 26, 2018, there were 75,067,331 shares of the registrant’s common stock outstanding.

 

 

 



Table of Contents

 

BENEFICIAL BANCORP, INC.

 

Table of Contents

 

 

 

Page
No.

Part I. Financial Information

 

 

 

 

Item 1.

Financial Statements (unaudited)

 

 

 

 

 

Unaudited Condensed Consolidated Statements of Financial Condition as of March 31, 2018 and December 31, 2017

1

 

 

 

 

Unaudited Condensed Consolidated Statements of Income for the Three months ended March 31, 2018 and 2017

2

 

 

 

 

Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three months ended March 31, 2018 and 2017

3

 

 

 

 

Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Equity for the Three months ended March 31, 2018

4

 

 

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the Three months ended March 31, 2018 and 2017

5

 

 

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

50

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

63

 

 

 

Item 4.

Controls and Procedures

65

 

 

 

Part II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

65

 

 

 

Item 1A.

Risk Factors

66

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

66

 

 

 

Item 3.

Defaults Upon Senior Securities

66

 

 

 

Item 4.

Mine Safety Disclosures

66

 

 

 

Item 5.

Other Information

66

 

 

 

Item 6.

Exhibits

67

 

 

 

Signatures

 

68

 



Table of Contents

 

PART I.   FINANCIAL INFORMATION

Item 1.    Financial Statements

 

BENEFICIAL BANCORP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except share and per share amounts)

 

 

 

March 31,
2018

 

December 31,
2017

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS:

 

 

 

 

 

Cash and due from banks

 

$

40,306

 

$

45,048

 

Overnight investments

 

562,350

 

512,567

 

Total cash and cash equivalents

 

602,656

 

557,615

 

 

 

 

 

 

 

INVESTMENT SECURITIES:

 

 

 

 

 

Available-for-sale, at fair value (amortized cost of $303,744 and $309,333 at March 31, 2018 and December 31, 2017, respectively)

 

301,920

 

310,308

 

Held-to-maturity (estimated fair value of $506,432 and $533,425 at March 31, 2018 and December 31, 2017, respectively)

 

517,453

 

537,302

 

Federal Home Loan Bank stock, at cost

 

23,210

 

23,210

 

Total investment securities

 

842,583

 

870,820

 

 

 

 

 

 

 

LOANS AND LEASES:

 

4,003,465

 

4,034,130

 

Allowance for loan and lease losses

 

(43,108

)

(43,267

)

Net loans and leases

 

3,960,357

 

3,990,863

 

 

 

 

 

 

 

ACCRUED INTEREST RECEIVABLE

 

18,077

 

17,512

 

 

 

 

 

 

 

 

 

 

 

 

 

BANK PREMISES AND EQUIPMENT, Net

 

69,436

 

70,573

 

 

 

 

 

 

 

OTHER ASSETS:

 

 

 

 

 

Goodwill

 

169,002

 

169,002

 

Bank owned life insurance

 

80,594

 

80,172

 

Other intangibles

 

2,685

 

2,884

 

Other assets

 

43,533

 

39,387

 

Total other assets

 

295,814

 

291,445

 

TOTAL ASSETS

 

$

5,788,923

 

$

5,798,828

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

Deposits:

 

 

 

 

 

Non-interest bearing deposits

 

$

564,450

 

$

563,185

 

Interest-bearing deposits

 

3,623,612

 

3,587,308

 

Total deposits

 

4,188,062

 

4,150,493

 

 

 

 

 

 

 

Borrowed funds

 

515,000

 

540,439

 

Other liabilities

 

69,750

 

73,006

 

Total liabilities

 

4,772,812

 

4,763,938

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES (Note 17)

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Preferred Stock - $.01 par value; 100,000,000 shares authorized, None issued or outstanding as of March 31, 2018 and December 31, 2017

 

 

 

Common Stock - $.01 par value 500,000,000 shares authorized, 84,573,350 and 84,503,580 issued and 75,264,135 and 75,829,537 outstanding, as of March 31, 2018 and December 31, 2017, respectively

 

845

 

845

 

Additional paid-in capital

 

802,056

 

799,658

 

Unearned common stock held by employee savings and stock ownership plan

 

(26,461

)

(27,078

)

Retained earnings (partially restricted)

 

397,799

 

405,497

 

Accumulated other comprehensive loss

 

(30,108

)

(26,127

)

Treasury Stock at cost, 9,309,215 shares and 8,674,043 shares at March 31, 2018 and December 31, 2017, respectively

 

(128,545

)

(118,497

)

Total Beneficial Bancorp Inc. stockholders’ equity

 

1,015,586

 

1,034,298

 

Noncontrolling Interest

 

525

 

592

 

Total Equity

 

1,016,111

 

1,034,890

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

5,788,923

 

$

5,798,828

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

1



Table of Contents

 

BENEFICIAL BANCORP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Income

(Dollars in thousands, except per share amounts)

 

 

 

For the Three Months ended

 

 

 

March 31,

 

March 31,

 

 

 

2018

 

2017

 

INTEREST INCOME:

 

 

 

 

 

Interest and fees on loans and leases

 

$

43,054

 

$

41,487

 

Interest on overnight investments

 

2,055

 

529

 

Interest and dividends on investment securities:

 

 

 

 

 

Taxable

 

5,119

 

5,356

 

Tax-exempt

 

18

 

22

 

Total interest income

 

50,246

 

47,394

 

 

 

 

 

 

 

INTEREST EXPENSE:

 

 

 

 

 

Interest on deposits:

 

 

 

 

 

Interest bearing checking accounts

 

639

 

602

 

Money market and savings deposits

 

1,485

 

1,461

 

Time deposits

 

2,576

 

2,187

 

Total

 

4,700

 

4,250

 

Interest on borrowed funds

 

2,345

 

2,370

 

Total interest expense

 

7,045

 

6,620

 

Net interest income

 

43,201

 

40,774

 

Provision for loan and lease losses

 

999

 

600

 

Net interest income after provision for loan and lease losses

 

42,202

 

40,174

 

 

 

 

 

 

 

NON-INTEREST INCOME:

 

 

 

 

 

Insurance and advisory commission and fee income

 

1,923

 

2,093

 

Service charges and other income

 

4,196

 

4,099

 

Mortgage banking and SBA income

 

468

 

879

 

Net gain (loss) on investment securities

 

77

 

(3

)

Total non-interest income

 

6,664

 

7,068

 

 

 

 

 

 

 

NON-INTEREST EXPENSE:

 

 

 

 

 

Salaries and employee benefits

 

19,957

 

18,828

 

Occupancy expense

 

3,031

 

2,735

 

Depreciation, amortization and maintenance

 

2,282

 

2,416

 

Marketing expense

 

1,920

 

1,102

 

Intangible amortization expense

 

199

 

568

 

FDIC Insurance

 

429

 

432

 

Professional fees

 

1,037

 

1,211

 

Classified loan and other real estate owned related expense

 

224

 

268

 

Other

 

7,278

 

7,807

 

Total non-interest expense

 

36,357

 

35,367

 

 

 

 

 

 

 

Income before income taxes

 

12,509

 

11,875

 

Income tax expense

 

2,785

 

3,520

 

CONSOLIDATED NET INCOME

 

$

9,724

 

$

8,355

 

Less: Net loss attributable to noncontrolling interest

 

(67

)

 

NET INCOME ATTRIBUTABLE TO BENEFICIAL BANCORP, INC.

 

$

9,791

 

$

8,355

 

 

 

 

 

 

 

EARNINGS PER SHARE — Basic

 

$

0.13

 

$

0.11

 

EARNINGS PER SHARE — Diluted

 

$

0.13

 

$

0.11

 

DIVIDENDS DECLARED PER SHARE

 

$

0.31

 

$

0.06

 

Average common shares outstanding — Basic

 

70,903,395

 

70,041,340

 

Average common shares outstanding — Diluted

 

71,536,544

 

70,822,040

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

2



Table of Contents

 

BENEFICIAL BANCORP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Comprehensive Income

(Dollars in thousands)

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

 

2018

 

2017

 

 

 

 

 

 

 

Consolidated net income

 

$

9,724

 

$

8,355

 

Less: Net loss attributable to noncontrolling interest

 

(67

)

 

Net Income attributable to Beneficial Bancorp, Inc.

 

$

9,791

 

$

8,355

 

Other comprehensive income, net of tax:

 

 

 

 

 

Securities available for sale and transferred securities:

 

 

 

 

 

Unrealized holding (losses) gains on available for sale securities arising during the period (net of tax of $654 and $15 for the three months ended March 31, 2018 and 2017, respectively)

 

(2,225

)

25

 

Accretion of unrealized losses on available-for-sale securities transferred to held-to-maturity (net of tax of $46 and $75 for the three months ended March 31, 2018 and 2017, respectively)

 

157

 

132

 

Reclassification adjustment for net losses on available for sale securities included in net income (net of tax of $1 for the three months ended March 31, 2017)

 

1

 

2

 

Cash flow hedge:

 

 

 

 

 

Unrealized gain on cash flow hedge arising during the period (net of tax of $841 for the three months ended March 31, 2018)

 

2,888

 

 

Defined benefit pension plans:

 

 

 

 

 

Pension gains, other postretirement and postemployment benefit plan adjustments (net of tax of $135 and $232 for the three months ended March 31, 2018 and 2017, respectively)

 

393

 

329

 

Total other comprehensive income

 

1,214

 

488

 

Comprehensive income

 

$

11,005

 

$

8,843

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

3



Table of Contents

 

BENEFICIAL BANCORP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity

(Dollars in thousands, except share amounts)

 

 

 

Number of
Shares
Issued

 

Common
Stock

 

Additional
Paid in
Capital

 

Common
Stock held by
KSOP

 

Retained
Earnings

 

Treasury
Stock

 

Accumulated
Other
Comprehensive
Loss

 

Total
Beneficial
Bancorp Inc.
Stockholders’
Equity

 

Noncontrolling
Interest

 

Total
Stockholders’
Equity

 

BALANCE, JANUARY 1, 2018

 

84,503,580

 

$

845

 

$

799,658

 

$

(27,078

)

$

405,497

 

$

(118,497

)

$

(26,127

)

$

1,034,298

 

$

592

 

$

1,034,890

 

Net Income

 

 

 

 

 

 

 

 

 

9,791

 

 

 

 

 

9,791

 

(67

)

9,724

 

Dividends declared ($0.31 per share)

 

 

 

 

 

 

 

 

 

(22,684

)

 

 

 

 

(22,684

)

 

 

(22,684

)

KSOP shares committed to be released

 

 

 

 

 

436

 

617

 

 

 

 

 

 

 

1,053

 

 

 

1,053

 

Stock option expense

 

 

 

 

 

155

 

 

 

 

 

 

 

 

 

155

 

 

 

155

 

Restricted stock expense

 

 

 

 

 

3,301

 

 

 

 

 

 

 

 

 

3,301

 

 

 

3,301

 

Effect of adoption of ASU 2016-01 accounting for equity securities (net of tax of $36 as of January 1, 2018)

 

 

 

 

 

 

 

 

 

123

 

 

 

(123

)

 

 

 

 

Stock options exercised

 

69,770

 

 

 

738

 

 

 

 

 

 

 

 

 

738

 

 

 

738

 

Purchase of treasury stock including shares withheld to cover tax liabilities

 

 

 

 

 

 

 

 

 

 

 

(12,280

)

 

 

(12,280

)

 

 

(12,280

)

Omnibus Equity Plan shares granted from treasury stock, net

 

 

 

 

 

(2,232

)

 

 

 

 

2,232

 

 

 

 

 

 

 

Reclassification due to the adoption of ASU No. 2018-02

 

 

 

 

 

 

 

 

 

5,072

 

 

 

(5,072

)

 

 

 

 

Net unrealized losses on AFS securities arising during the period (net of tax of $654)

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,225

)

(2,225

)

 

 

(2,225

)

Accretion of unrealized losses on AFS securities transferred to HTM during the period (net of tax of $46)

 

 

 

 

 

 

 

 

 

 

 

 

 

157

 

157

 

 

 

157

 

Reclassification adjustment for net losses on AFS securities included in net income

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1

 

 

 

1

 

Unrealized gain on cash flow hedge arising during the period (net of tax of $841)

 

 

 

 

 

 

 

 

 

 

 

 

 

2,888

 

2,888

 

 

 

2,888

 

Pension, other postretirement and postemployment benefit plan adjustments (net of tax of $135)

 

 

 

 

 

 

 

 

 

 

 

 

 

393

 

393

 

 

 

393

 

BALANCE, MARCH 31, 2018

 

84,573,350

 

$

845

 

$

802,056

 

$

(26,461

)

$

397,799

 

$

(128,545

)

$

(30,108

)

$

1,015,586

 

$

525

 

$

1,016,111

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

4



Table of Contents

 

BENEFICIAL BANCORP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

 

(Dollars in thousands)

 

 

 

For the Three months ended
March 31,

 

 

 

2018

 

2017

 

OPERATING ACTIVITIES:

 

 

 

 

 

Net income attributable to Beneficial Bancorp, Inc.

 

$

9,791

 

$

8,355

 

Adjustment to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

Provision for loan and lease losses

 

999

 

600

 

Depreciation and amortization

 

1,440

 

1,574

 

Intangible amortization

 

199

 

568

 

Net (gain) loss on investment securities

 

(77

)

3

 

Accretion of discount on investments

 

(36

)

(54

)

Amortization of premium on investments

 

722

 

1,206

 

Accretion of acquired loan and lease marks

 

227

 

811

 

Gain on sale of loans

 

(381

)

(718

)

Net loss from disposition of premises and equipment

 

 

3

 

Net gain on sale of other real estate

 

(25

)

 

Amortization of KSOP

 

1,053

 

1,118

 

(Increase) decrease in bank owned life insurance

 

(422

)

773

 

Stock based compensation

 

3,456

 

3,533

 

Origination of loans held for sale

 

(1,939

)

(4,444

)

Proceeds from sale of loans

 

7,093

 

14,019

 

Changes in assets and liabilities:

 

 

 

 

 

Accrued interest receivable

 

(565

)

(80

)

Accrued interest payable

 

(95

)

67

 

Income taxes payable

 

2,209

 

2,931

 

Other liabilities

 

(4,106

)

(6,094

)

Other assets

 

(1,505

)

(2,313

)

Net cash provided by operating activities

 

18,038

 

21,858

 

INVESTING ACTIVITIES:

 

 

 

 

 

Loans and leases originated or acquired

 

(259,318

)

(310,022

)

Principal repayment on loans and leases

 

283,762

 

253,964

 

Proceeds from maturities, calls or repayments of investment securities available for sale

 

16,487

 

20,972

 

Purchases of investment securities held to maturity

 

(500

)

 

Proceeds from maturities, calls or repayments of investment securities held to maturity

 

20,128

 

42,545

 

Net purchases of money market and mutual funds

 

(11,163

)

(8,007

)

Net purchases of Federal Home Loan Bank stock

 

 

(2,000

)

Proceeds from sale of other real estate owned

 

73

 

620

 

Purchases of premises and equipment

 

(304

)

(435

)

Cash provided by other investing activities

 

 

150

 

Net cash provided by (used in) investing activities

 

49,165

 

(2,213

)

FINANCING ACTIVITIES:

 

 

 

 

 

Increase in borrowed funds

 

25,000

 

130,000

 

Repayment of borrowed funds

 

(50,439

)

(79,996

)

Net increase in checking, savings and demand accounts

 

75,704

 

64,998

 

Net decrease in time deposits

 

(38,135

)

(4,330

)

Cash dividend paid to stockholders

 

(22,684

)

(4,382

)

Change in noncontrolling interest

 

(67

)

 

Proceeds from the exercise of stock options

 

779

 

9,952

 

Cash paid to tax authorities related to stock based compensation awards

 

(1,322

)

(2,854

)

Purchase of treasury stock

 

(10,998

)

 

Net cash (used in) provided by financing activities

 

(22,162

)

113,388

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

45,041

 

133,033

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

557,615

 

287,046

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

602,656

 

$

420,079

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND NON-CASH INFORMATION:

 

 

 

 

 

Cash payments for interest

 

$

7,140

 

$

6,553

 

Cash payments for income taxes

 

576

 

589

 

Transfers of loans to other real estate owned

 

63

 

144

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

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Table of Contents

 

BENEFICIAL BANCORP, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto contained in the Annual Report on Form 10-K filed by Beneficial Bancorp, Inc. (the “Company” or “Beneficial”) with the U.S. Securities and Exchange Commission on February 28, 2018.  The results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 or any other period.

 

Principles of Consolidation

 

The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.  Specifically, the financial statements include the accounts of Beneficial Bank (the “Bank”), the Company’s wholly owned subsidiary, and the Bank’s wholly owned subsidiaries. The Bank’s wholly owned subsidiaries include: (i) Neumann Finance Company, a majority owned subsidiary, formed to originate small business leases, (ii) Neumann Corporation, a Delaware corporation formed to manage certain investments, (iii) Beneficial Insurance Services, LLC, which provides insurance services to individual and business customers and (iv) Beneficial Equipment Finance Corporation (formerly BSB Union Corporation), an equipment leasing company. Additionally, the Bank has subsidiaries that hold other real estate acquired in foreclosure or transferred from the Bank’s real estate loan portfolio. All significant intercompany accounts and transactions have been eliminated.  The various services and products support each other and are interrelated.

 

Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. Accordingly, the various financial services and products offered are included in one reportable operating segment: community banking as outlined under guidance in the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC” or “codification”) Topic 280 for Segment Reporting.

 

Use of Estimates in the Preparation of Financial Statements

 

These unaudited interim condensed consolidated financial statements are prepared in conformity with GAAP. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates include the allowance for loan losses, goodwill, other intangible assets, income taxes, postretirement benefits, and the fair value of investment securities.  Actual results could differ from those estimates and assumptions.

 

NOTE 2 — NATURE OF OPERATIONS

 

The Company is a Maryland corporation that was incorporated in August 2014 to be the successor to Beneficial Mutual Bancorp, Inc. (“Beneficial Mutual Bancorp”), the Bank’s former mid-tier stock holding company, upon completion of the second-step conversion of the Bank from the mutual holding company structure to the stock holding company structure. Beneficial Savings Bank MHC was the former mutual holding company for Beneficial Mutual Bancorp prior to completion of the second-step conversion. Upon the completion of the second-step conversion, each of Beneficial Savings Bank MHC and Beneficial Mutual Bancorp ceased to exist. The second-step conversion was completed on January 12, 2015, at which time the Company sold, for gross proceeds of $503.8 million, a total of 50,383,817 shares of common stock at $10.00 per share, including 2,015,352 shares purchased by the Bank’s employee savings and stock ownership plan. As part of the second-step conversion, each of the existing 29,394,417 outstanding shares of Beneficial Mutual

 

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Bancorp common stock owned by persons other than Beneficial Savings Bank MHC was converted into 1.0999 of a share of Company common stock.

 

The consolidated financial statements include the accounts of the Company, the Bank, a Pennsylvania chartered savings bank, and the Bank’s subsidiaries. The Company owns 100% of the issued and outstanding common stock of the Bank. The Bank offers a variety of consumer and commercial banking services to individuals, businesses, and nonprofit organizations through 61 offices throughout the Philadelphia and Southern New Jersey area. The Bank is supervised and regulated by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation (the “FDIC”). The Company is regulated by the Board of Governors of the Federal Reserve System. The deposits of the Bank are insured up to the applicable legal limits by the Deposit Insurance Fund of the FDIC.

 

NOTE 3 — NON-INTEREST INCOME

 

During the three months ended March 31, 2018, the Company adopted the amendments of ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606.   The Company has included the following table regarding the Company’s non-interest income for the periods presented.

 

 

 

Three Months Ended

 

Three Months Ended

 

 

 

March 31, 2018

 

March 31, 2017

 

Insurance commission income

 

$

1,923

 

$

2,093

 

Debit card interchange fee income

 

1,988

 

1,835

 

Returned check charges

 

987

 

912

 

Bank owned life insurance

 

425

 

429

 

Limited partnership losses and amortization

 

(400

)

(359

)

Other service charges

 

1,196

 

1,282

 

Mortgage banking & SBA income

 

468

 

879

 

Net gain (loss) on investment securities

 

77

 

(3

)

Total non-interest income

 

$

6,664

 

$

7,068

 

 

The Company recognizes revenue as it is earned and noted no impact to its revenue recognition policies as a result of the adoption of ASU 2014-09.  The following is a discussion of key revenues within the scope of the new revenue guidance:

 

·                  Insurance commission income — Insurance revenue is earned through commissions on insurance sales and earned at a point in time.

·                  Debit card interchange fee income — Card processing fees consist of interchange fees from consumer debit card networks and other card related services. Interchange rates are set by the card network. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur.

·                  Service charges on deposit accounts — Revenue from service charges on deposit accounts is earned through cash management, wire transfer, and other deposit-related services; as well as overdraft, non-sufficient funds, account management and other deposit-related fees. Revenue is recognized for these services either over time, corresponding with deposit accounts’ monthly cycle, or at a point in time for transactional related services and fees. These revenues are included in returned check charges and other service charges in the table above.

 

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Table of Contents

 

NOTE 4 — CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

 

The following tables present the changes in the balances of each component of accumulated other comprehensive income (“AOCI”) for the three months ended March 31, 2018 and March 31, 2017.  All amounts are presented net of tax.

 

(Dollars in thousands)

 

Net unrealized
holding gains
on available-
for-sale
securities

 

Net
unrealized
gains on
equity
securities

 

Defined
benefit
pension
plan items

 

Cash Flow
Hedge

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, January 1, 2018

 

$

(826

)

$

 

$

(25,888

)

$

587

 

$

(26,127

)

Changes in other comprehensive loss before reclassifications:

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding losses on AFS securities

 

(2,225

)

 

 

 

(2,225

)

Accretion of unrealized losses on AFS securities transferred to HTM

 

157

 

 

 

 

157

 

Unrealized gain on cash flow hedge

 

 

 

 

2,888

 

2,888

 

Amount reclassified from accumulated other comprehensive loss

 

1

 

 

393

 

 

394

 

Total changes in current-period other comprehensive loss before reclassifications

 

(2,067

)

 

393

 

2,888

 

1,214

 

Changes in other comprehensive loss as a result of reclassifications:

 

 

 

 

 

 

 

 

 

 

 

Effect of adoption of ASU 2016-01 equity securities

 

 

(123

)

 

 

(123

)

Reclassification due to the adoption of ASU No. 2018-02

 

(199

)

 

(4,999

)

126

 

(5,072

)

Total changes in other comprehensive loss as a result of reclassifications

 

(199

)

(123

)

(4,999

)

126

 

(5,195

)

Net other comprehensive (loss) income

 

(2,266

)

(123

)

(4,606

)

3,014

 

(3,981

)

Ending balance, March 31, 2018

 

$

(3,092

)

$

(123

)

$

(30,494

)

$

3,601

 

$

(30,108

)

 

 

 

Net unrealized

 

 

 

 

 

 

 

holding gains on

 

 

 

 

 

 

 

available-for-sale

 

Defined benefit

 

 

 

(Dollars in thousands)

 

securities

 

pension plan items

 

Total

 

 

 

 

 

 

 

 

 

Beginning balance, January 1, 2017

 

$

(747

)

$

(25,086

)

$

(25,833

)

Changes in other comprehensive loss before reclassifications:

 

 

 

 

 

 

 

Unrealized holding gains on AFS securities

 

25

 

 

25

 

Accretion of unrealized losses on AFS securities transferred to HTM

 

132

 

 

132

 

Amount reclassified from accumulated other comprehensive loss

 

2

 

329

 

331

 

Net current-period other comprehensive income

 

159

 

329

 

488

 

Ending balance, March 31, 2017

 

$

(588

)

$

(24,757

)

$

(25,345

)

 

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Table of Contents

 

The following tables present reclassifications out of AOCI by component for the three months ended March 31, 2018 and March 31, 2017:

 

For the Three Months Ended March 31, 2018

 

(Dollars in thousands)

 

Details about accumulated

 

Amount reclassified

 

Affected line item in

 

other comprehensive loss

 

from accumulated other

 

the consolidated statements

 

Components

 

comprehensive loss

 

of operations

 

Unrealized gains and losses on available-for-sale securities

 

 

 

 

 

 

 

$

1

 

Net loss on sale of investment securities

 

 

 

 

Income tax benefit

 

 

 

$

1

 

Net of tax

 

Amortization of defined benefit pension items

 

 

 

 

 

Prior service costs

 

$

(121

)(1)

Other non-interest expense

 

Net recognized actuarial losses

 

649

(1)

Other non-interest expense

 

 

 

$

528

 

Total before tax

 

 

 

(135

)

Income tax benefit

 

 

 

$

393

 

Net of tax

 

 


(1)         These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost.  See Note 15 - Pension and Other Postretirement Benefits for additional details.

 

For the Three Months Ended March 31, 2017

 

(Dollars in thousands)

 

Details about accumulated

 

Amount reclassified

 

Affected line item in

 

other comprehensive loss

 

from accumulated other

 

the consolidated statements

 

Components

 

comprehensive loss

 

of operations

 

Unrealized gains and losses on available-for-sale securities

 

 

 

 

 

 

 

$

3

 

Net loss on sale of investment securities

 

 

 

(1

)

Income tax benefit

 

 

 

$

2

 

Net of tax

 

Amortization of defined benefit pension items

 

 

 

 

 

Prior service costs

 

$

(121

)(1)

Other non-interest expense

 

Net recognized actuarial losses

 

682

(1)

Other non-interest expense

 

 

 

$

561

 

Total before tax

 

 

 

(232

)

Income tax benefit

 

 

 

$

329

 

Net of tax

 

 


(1)         These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost.  See Note 15 - Pension and Other Postretirement Benefits for additional details.

 

NOTE 5 — EARNINGS PER SHARE

 

The following table presents a calculation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017. Earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding. The difference between common shares issued and basic average common shares outstanding, for purposes of calculating basic earnings per share, is a result of subtracting unallocated employee savings and stock ownership plan (“KSOP”) shares and unvested restricted stock shares. Since the Company paid dividends during the three months ended March 31, 2018 and 2017, the Company was required to use the two-class method for both periods to calculate earnings per share as the unvested restricted stock issued under the Company’s equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share is computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common

 

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Table of Contents

 

shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period. Net earnings per share for both common shares and participating securities is the same for the three months ended March 31, 2018 and 2017. See Note 16 for further discussion of stock grants.

 

(Dollars in thousands, except share and per share amounts)

 

Three Months Ended
March 31,

 

 

 

2018

 

2017

 

Basic and diluted earnings per share:

 

 

 

 

 

Net income

 

$

9,791

 

$

8,355

 

Net income allocated to unvested restricted stock

 

(269

)

(345

)

Net income allocated to common shares

 

$

9,522

 

$

8,010

 

 

 

 

 

 

 

Basic average common shares outstanding

 

70,903,395

 

70,041,340

 

Effect of dilutive securities

 

633,149

 

780,700

 

Dilutive average shares outstanding

 

71,536,544

 

70,822,040

 

Net earnings per share

 

 

 

 

 

Basic

 

$

0.13

 

$

0.11

 

Diluted

 

$

0.13

 

$

0.11

 

 

Anti-dilutive shares are common stock equivalents with weighted average exercise prices in excess of the weighted average market value for the periods presented. There were no stock options that were anti-dilutive for both the three months ended March 31, 2018 and 2017.

 

NOTE 6 — INVESTMENT SECURITIES

 

The amortized cost and estimated fair value of investments in debt and equity securities at March 31, 2018 and December 31, 2017 are as follows:

 

 

 

March 31, 2018

 

 

 

Investment Securities Available-for-Sale

 

 

 

 

 

Gross

 

Gross

 

Estimated

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

 

(Dollars in thousands)

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

250

 

$

260

 

$

 

$

510

 

U.S. Government Sponsored Enterprise (“GSE”) and Agency notes

 

3,304

 

 

65

 

3,239

 

Ginnie Mae guaranteed mortgage certificates

 

2,847

 

96

 

 

2,943

 

GSE mortgage-backed securities

 

231,349

 

1,923

 

4,196

 

229,076

 

GSE collateralized mortgage obligations

 

13,048

 

16

 

183

 

12,881

 

Municipal bonds

 

1,797

 

59

 

 

1,856

 

Corporate securities

 

23,489

 

284

 

15

 

23,758

 

Money market and mutual funds

 

27,660

 

 

3

 

27,657

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

303,744

 

$

2,638

 

$

4,462

 

$

301,920

 

 

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Table of Contents

 

 

 

March 31, 2018

 

 

 

Investment Securities Held-to-Maturity

 

 

 

 

 

Gross

 

Gross

 

Estimated

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

 

(Dollars in thousands)

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

GSE mortgage-backed securities

 

$

456,515

 

$

126

 

$

  9,955

 

$

446,686

 

GSE & Agency collateralized mortgage obligations

 

58,433

 

 

1,222

 

57,211

 

Municipal bonds

 

505

 

26

 

 

531

 

Foreign bonds

 

2,000

 

4

 

 

2,004

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

517,453

 

$

156

 

$

11,177

 

$

506,432

 

 

 

 

December 31, 2017

 

 

 

Investment Securities Available-for-Sale

 

 

 

 

 

Gross

 

Gross

 

Estimated

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

 

(Dollars in thousands)

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

250

 

$

160

 

$

 

$

410

 

U.S. Government Sponsored Enterprise (“GSE”) and Agency notes

 

3,488

 

 

35

 

3,453

 

Ginnie Mae guaranteed mortgage certificates

 

2,980

 

108

 

 

3,088

 

GSE mortgage-backed securities

 

245,926

 

2,378

 

2,164

 

246,140

 

Collateralized mortgage obligations

 

14,910

 

17

 

153

 

14,774

 

Municipal bonds

 

1,792

 

74

 

 

1,866

 

Corporate securities

 

23,489

 

594

 

 

24,083

 

Money market and mutual funds

 

16,498

 

 

4

 

16,494

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

309,333

 

$

3,331

 

$

2,356

 

$

310,308

 

 

 

 

December 31, 2017

 

 

 

Investment Securities Held-to-Maturity

 

 

 

 

 

Gross

 

Gross

 

Estimated

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

 

(Dollars in thousands)

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

 

 

 

 

 

 

 

 

GSE mortgage-backed securities

 

$

472,259

 

$

677

 

$

3,668

 

$

469,268

 

Collateralized mortgage obligations

 

63,038

 

 

942

 

62,096

 

Municipal bonds

 

505

 

32

 

 

537

 

Foreign bonds

 

1,500

 

24

 

 

1,524

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

537,302

 

$

733

 

$

4,610

 

$

533,425

 

 

During the three months ended March 31, 2018, the Bank sold $63 thousand of mutual funds that resulted in a loss of $1 thousand.  During the three months ended March 31, 2018, the Bank recognized $78 thousand of unrealized holding gains on equity securities with a readily determinable fair value following the adoption of ASU 2016-01.

 

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Table of Contents

 

The following tables provide information on the gross unrealized losses and fair market value of the Company’s investments with unrealized losses that are not deemed to be other than temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2018 and December 31, 2017:

 

 

 

At March 31, 2018

 

 

 

Less than 12 months

 

12 months or longer

 

Total

 

 

 

 

 

Unrealized

 

 

 

Unrealized

 

 

 

Unrealized

 

(Dollars in thousands)

 

Fair Value

 

Losses

 

Fair Value

 

Losses

 

Fair Value

 

Losses

 

U.S. Government Sponsored Enterprise (“GSE”) and Agency notes

 

$

3,239

 

$

65

 

$

 

$

 

$

3,239

 

$

65

 

Mortgage-backed securities

 

476,248

 

9,010

 

164,967

 

5,141

 

641,215

 

14,151

 

Corporate securities

 

3,985

 

15

 

 

 

3,985

 

15

 

Collateralized mortgage obligations

 

50,870

 

983

 

18,382

 

422

 

69,252

 

1,405

 

Subtotal, debt securities

 

$

534,342

 

$

10,073

 

$

183,349

 

$

5,563

 

$

717,691

 

$

15,636

 

Mutual funds

 

345

 

3

 

 

 

345

 

3

 

Total

 

$

534,687

 

$

10,076

 

$

183,349

 

$

5,563

 

$

718,036

 

$

15,639

 

 

 

 

At December 31, 2017

 

 

 

Less than 12 months

 

12 months or longer

 

Total

 

 

 

 

 

Unrealized

 

 

 

Unrealized

 

 

 

Unrealized

 

(Dollars in thousands)

 

Fair Value

 

Losses

 

Fair Value

 

Losses

 

Fair Value

 

Losses

 

U.S. Government Sponsored Enterprise (“GSE”) and Agency Notes

 

$

3,453

 

$

35

 

$

 

$

 

$

3,453

 

$

35

 

Mortgage-backed securities

 

378,645

 

2,488

 

175,947

 

3,344

 

554,592

 

5,832

 

Collateralized mortgage obligations

 

55,928

 

770

 

20,065

 

325

 

75,993

 

1,095

 

Subtotal, debt securities

 

$

438,026

 

$

3,293

 

$

196,012

 

$

3,669

 

$

634,038

 

$

6,962

 

Mutual funds

 

408

 

4

 

 

 

408

 

4

 

Total

 

$

438,434

 

$

3,297

 

$

196,012

 

$

3,669

 

$

634,446

 

$

6,966

 

 

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis or as economic or market concerns warrant such evaluation. The Company determines whether the unrealized losses are temporary in accordance with guidance under FASB ASC Topic 320 for Investments - Debt and Equity Securities. The evaluation is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing performance of the securities.  Management also evaluates other facts and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost, and near-term prospects of the issuer. The likelihood of recovering the Company’s investment, whether the Company has the intent to sell the investment or that it is more likely than not that the Company will be required to sell the investment before recovery is also used to determine the nature of the decline in market value of the securities.

 

The Company records the credit portion of OTTI through earnings based on the credit impairment estimates generally derived from cash flow analyses. The remaining unrealized loss, due to factors other than credit, is recorded in other comprehensive income (“OCI”).  The Company had an unrealized loss of $14.2 million related to its GSE mortgage-backed securities as of March 31, 2018.  Additionally, the Company had an unrealized loss of $1.4 million on GSE & Agency collateralized mortgage obligations, an unrealized loss of $65 thousand on GSE Notes, an unrealized loss of $15 thousand on corporate securities and an unrealized loss of $3 thousand on mutual funds as of March 31, 2018.

 

U.S. Government Sponsored Enterprise (“GSE”) and Agency Notes

 

The Company’s investments that were in a loss position for less than 12 months included GSE Notes with an unrealized loss of 2.0% as of March 31, 2018. The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell these investments before recovery of its

 

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amortized cost, which may be at maturity, the Company does not consider these investments to be other-than temporarily impaired at March 31, 2018.

 

Mortgage-Backed Securities

 

The Company’s investments that were in a loss position for greater than 12 months included GSE mortgage-backed securities with an unrealized loss of 3.0% as of March 31, 2018.  The Company’s investments that were in a loss position for less than 12 months included GSE mortgage-backed securities with an unrealized loss of 1.9% as of March 31, 2018. The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider these investments to be other-than temporarily impaired at March 31, 2018.

 

Collateralized Mortgage Obligations (CMOs)

 

The Company’s investments that were in a loss position for greater than 12 months included GSE CMOs with an unrealized loss of 2.2% as of March 31, 2018.  The Company’s investments that were in a loss position for less than 12 months included GSE & Agency CMOs with an unrealized loss of 1.9%.  The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider these investments to be other-than temporarily impaired at March 31, 2018.

 

Corporate Securities

 

The Company’s investment that was in a loss position for less than 12 months included one Corporate Security with an unrealized loss of 0.4% as of March 31, 2018. The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized loss is due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell this investment before recovery of its amortized cost, which may be at maturity, the Company does not consider this investment to be other-than temporarily impaired at March 31, 2018.

 

The following table sets forth the stated maturities of the investment securities at March 31, 2018 and December 31, 2017. Maturities for mortgage-backed securities are dependent upon the rate environment and prepayments of the underlying loans.  For purposes of this table they are presented separately.

 

 

 

March 31, 2018

 

December 31, 2017

 

 

 

Amortized

 

Estimated

 

Amortized

 

Estimated

 

(Dollars are in thousands)

 

Cost

 

Fair Value

 

Cost

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

Due in one year or less

 

$

 

$

 

$

 

$

 

Due after one year through five years

 

5,101

 

5,095

 

5,280

 

5,319

 

Due after five years through ten years

 

23,489

 

23,758

 

23,489

 

24,083

 

Due after ten years

 

 

 

 

 

Mortgage-backed securities

 

247,244

 

244,900

 

263,816

 

264,002

 

Equity securities

 

250

 

510

 

250

 

410

 

Money market and mutual funds

 

27,660

 

27,657

 

16,498

 

16,494

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

303,744

 

$

301,920

 

$

309,333

 

$

310,308

 

 

 

 

 

 

 

 

 

 

 

Held-to-maturity:

 

 

 

 

 

 

 

 

 

Due in one year or less

 

$

125

 

$

127

 

$

125

 

$

127

 

Due after one year through five years

 

2,380

 

2,408

 

1,880

 

1,934

 

Due after five years through ten years

 

 

 

 

 

Due after ten years

 

 

 

 

 

Mortgage-backed securities