You would expect something beneficial from the city of brotherly love. Beneficial Mutual Bancorp is the holding company for Beneficial Bank, which serves the greater Philadelphia area and southern New Jersey through about 65 branches. Founded in 1853 as Beneficial Mutual Savings Bank, the bank provides traditional deposit products such as checking, savings, and money market accounts; IRAs; and CDs. Commercial real estate, business, and construction loans together account for nearly half of the company's loan portfolio; consumer loans (nearly 30%) and residential mortgages (almost 25%) round out its lending activities. The bank is looking to grow its commercial loan portfolio.
Beneficial Mutual sells insurance and offers investment advisory services through subsidiaries Beneficial Insurance Services and Beneficial Advisors. The company seeks to differentiate itself by promoting financial education for its customers. It also eyes expansion through acquisitions. In 2012 it acquired SE Financial, the holding company for St. Edmond's Federal Savings Bank, for more than $30 million. The deal added five branches in the greater Philadelphia area.
Although its revenue was down in 2011, Beneficial Mutual Bancorp returned to profitability after a year in the red, as it was able to cut its provisions for credit losses by nearly half. However, the company expects elevated levels of charged-off loans to continue and has implemented a plan to reduce expenses to offset possible loan losses.
Mutual holding company Beneficial Savings Bank MHC owns more than 55% of Beneficial Mutual Bancorp.