Beneficial Mutual Bancorp, Inc. (“Beneficial”) (NASDAQGS: BNCL), the parent company of Beneficial Bank (the “Bank” or the “Company”), today announced its financial results for the quarter and year ended December 31, 2011.
Beneficial recorded net income of $5.9 million, or $0.08 per share, for the quarter ended December 31, 2011, compared to a net loss of $356 thousand, or $0.00 per share, for the quarter ended December 31, 2010. Net income for the year ended December 31, 2011 totaled $11.0 million, or $0.14 per share, compared to a net loss of $9.0 million, or $(0.12) per share, for the year ended December 31, 2010. Net income for the year ended December 31, 2011 included $5.1 million of restructuring charges related to the implementation of our expense management reduction program during the first quarter of 2011. Net loss for the year ended December 31, 2010 was driven by a provision for loan losses of $70.2 million due to specific reserves required for commercial real estate loans.
During the quarter ended December 31, 2011, Beneficial continued to benefit from the impact of the expense management reduction program that was implemented in the first quarter of 2011, as total non-interest expense decreased $3.9 million to $29.2 million for the quarter ended December 31, 2011 compared to $33.1 million for the fourth quarter of 2010. For the year ended, December 31, 2011, non-interest expense decreased $7.7 million to $120.7 million compared to $128.4 million for 2010. The year ended December 31, 2011 included a $5.1 million restructuring charges related to our expense reduction program implemented during the first quarter.
Credit costs have decreased from the prior year but continue to have a significant impact on our financial results. During the quarter and year ended December 31, 2011, the Bank recorded a provision for credit losses in the amount of $8.5 million and $37.5 million, respectively, compared to $8.0 million and $70.2 million for the quarter and year ended December 31, 2010, respectively. Although we have seen some improvement in our credit quality with non-performing assets decreasing $9.4 million during the fourth quarter of 2011 to $154.1 million, as compared to $163.5 million at September 30, 2011, we continue to experience high charge-off levels. During the year we continued to build our reserves and, at December 31, 2011, the Company’s allowance for loan losses totaled $54.2 million, or 2.10% of total loans, compared to $45.4 million, or 1.62% of total loans, at December 31, 2010. We expect that the provision for credit losses will remain elevated in 2012 as we continue to focus on reducing our non-performing asset levels.