Exhibit 13.0

SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA

At and For the Year Ended December 31,
(Dollars in thousands, except per share amounts)		2010				2009				2008				2007(1)				2006
Financial Condition Data:
Total assets		$	4,929,785			$	4,673,680			$	4,002,050			$	3,557,818			$	2,300,219
Cash and cash equivalents			90,299				179,701				44,389				58,327				21,074
Trading securities			6,316				31,825				—				—				—
Investment securities available-for-sale			1,565,235				1,315,174				1,142,154				968,609				348,484
Investment securities held-to-maturity			86,609				48,009				76,014				111,986				130,357
Loans receivable, net			2,751,036				2,744,264				2,387,677				2,097,581				1,671,457
Deposits			3,942,304				3,509,247				2,741,679				2,465,163				1,678,054
Federal Home Loan Bank advances			113,000				169,750				174,750				185,750				196,550
Other borrowed funds			160,317				263,870				405,304				221,372				98,346
Stockholders’ equity			615,547				637,001				610,540				619,797				280,415
Operating Data:
Interest income		$	197,514			$	192,974			$	192,926			$	157,894			$	127,326
Interest expense			49,896				65,632				78,915				73,774				62,896
Net interest income			147,618				127,342				114,011				84,120				64,430
Provision for loan losses			70,200				15,697				18,901				2,470				1,575
Net interest income after provision for loan losses			77,418				111,645				95,110				81,650				62,855
Non-interest income			27,220				26,847				23,604				13,372				10,531
Non-interest expenses			128,390				119,866				98,303				101,032				59,439
(Loss) Income before income taxes			(23,752	)			18,626				20,411				(6,010	)			13,947
Income tax (benefit) expense			(14,789	)			1,537				3,865				(4,465	)			2,322
Net (loss) income		$	(8,963	)		$	17,089			$	16,546			$	(1,545	)		$	11,625
Average common shares outstanding — Basic			77,593,808				77,693,082				78,702,419				61,374,792				45,792,775
Average common shares outstanding — Diluted			77,593,808				77,723,668				78,702,419				61,374,792				45,792,775
Net (loss) income earnings per share — Basic		$	(0.12	)		$	0.22			$	0.21			$	(0.03	)		$	0.25
Net (loss) income earnings per share — Diluted		$	(0.12	)		$	0.22			$	0.21			$	(0.03	)		$	0.25
Dividends per share		$	0.00			$	0.00			$	0.00			$	0.01	(2)		$	0.00

(1)		2007 financial results reflect the acquisition of FMS Financial Corporation and the Company’s minority stock offering.
(2)		Reflects dividends paid to Beneficial Savings Bank MHC, in April 2007, prior to Beneficial Mutual Bancorp’s minority stock offering in July 2007.

At and For the Year Ended December 31,		2010				2009				2008				2007				2006
Performance Ratios:
Return on average assets			(0.18	)%			0.40	%			0.44	%			(0.05	)%			0.49	%
Return on average equity			(1.39	)			2.74				2.70				(0.35	)			4.04
Interest rate spread (1)			3.13				2.99				2.86				2.59				2.45
Net interest margin (2)			3.32				3.28				3.33				3.17				2.87
Non-interest expenses to average assets			2.64				2.80				2.60				3.48				2.51
Efficiency ratio (3)			73.44				77.74				71.43				102.68				79.29
Average interest-earning assets to average interest-bearing liabilities			116.60				117.00				119.98				120.96				114.86
Average equity to average assets			13.30				14.57				16.26				15.06				12.20
Capital Ratios (4):
Tier 1 capital to average assets			8.89				9.81				11.25				12.20				11.73
Tier 1 capital to risk-weighted assets			15.69				16.71				17.80				19.80				17.66
Total risk-based capital to risk-weighted assets			16.95				17.98				19.05				20.92				18.78
Asset Quality Ratios:
Allowance for loan losses as a percent of total loans			1.62				1.64				1.52				1.10				1.03
Allowance for loan losses as a percent of non-performing loans			36.66				38.06				97.00				143.10				213.09
Net charge-offs to average outstanding loans during the period			2.53				0.25				0.24				0.08				0.07
Nonperforming loans as a percent of total loans (5)			4.42				4.32				1.57				0.77				0.48
Nonperforming assets as a percent of total assets (5)			2.85				3.49				1.52				0.59				0.48
Other Data:
Number of offices (6)			65				68				72				72				39
Number of deposit accounts			283,870				284,531				276,377				284,742				163,140
Number of loans			60,134				64,690				65,951				62,017				61,478

(1)		Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost on average interest-bearing liabilities.
(2)		Represents net interest income as a percent of average interest-earning assets.
(3)		Represents other non-interest expenses divided by the sum of net interest income and non-interest income.
(4)		Ratios are for Beneficial Bank.
(5)		Nonperforming loans and assets include accruing loans past due 90 days or more.
(6)		During 2010, two campuses were opened and five offices were closed as part of the Company’s branch consolidation plan.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Overview

Our principal business is to acquire deposits from individuals and businesses in the communities surrounding our offices and to use those deposits to fund loans. We also seek to broaden relationships with our customers by offering insurance and investment advisory services. We focus on providing our products and services to individuals, businesses and non-profit organizations.

The history of Beneficial Bank (the ”Bank”) dates back to 1853. Over the years, we have expanded through organic growth and acquisitions, reaching $4.9 billion in assets at December 31, 2010. In 2004, the Bank reorganized into the mutual holding company structure, forming Beneficial Mutual Bancorp, Inc. (the “Company” or “Beneficial”), a federally chartered stock holding company, as its holding company and Beneficial Savings Bank MHC (the ”MHC”), a federally chartered mutual holding company, as the sole stockholder of the Company. In 2005, we completed the acquisition of Northwood Savings Bank, located in the Fishtown area of Philadelphia and acquired the insurance firm Paul Hertel & Co., Inc. through our subsidiary Beneficial Insurance Services, LLC. This acquisition allowed us the opportunity to provide property, casualty, life, health and benefits insurance to individual and business customers with a focus on strengthening our fee income and overall earnings. On July 13, 2007, the Company completed its minority stock offering, raising approximately $236.1 million, and simultaneously acquired FMS Financial Corporation, the parent company of Farmers & Mechanics Bank (together, “FMS Financial”). FMS Financial, which had total assets of over $1.2 billion and provided us with an additional source of funds for our rising loan activity. On October 5, 2007, Beneficial Insurance Services, LLC acquired the business of CLA Agency, Inc. (“CLA”), a full-service property and casualty and professional liability insurance brokerage company headquartered in Newtown Square, Pennsylvania.

The Bank was established to serve the financing needs of the public and has expanded its services over time to offer personal and business checking accounts, home equity loans and lines of credit, commercial real estate loans and other types of commercial and consumer loans. We also provide insurance services through our wholly owned subsidiary, Beneficial Insurance Services, LLC, and investment and non-deposit services through our wholly owned subsidiary Beneficial Advisors, LLC. Our retail market focus includes primarily all of the areas surrounding our 65 banking offices located in Bucks, Chester, Delaware, Montgomery and Philadelphia Counties in Pennsylvania and Burlington and Camden Counties in New Jersey, while our lending market also includes other counties in central and southern New Jersey as well as Delaware. In addition, Beneficial Insurance Services, LLC operates two offices in Pennsylvania, one in Philadelphia County and one in Delaware County. Based on a comprehensive review of all 65 branches to assess proximity to other Bank locations, customer activity, financial performance, future market potential and our growth plans, the Bank will occasionally consolidate branches.

During 2010, our financial results were significantly impacted by deterioration in asset quality, particularly in our commercial real estate portfolio. This resulted in a significant level of provision for credit losses and caused a net loss for 2010 of $8.9 million compared to net income of $17.1 million in 2009. Although some economic measures showed signs of improvement during 2010, credit quality and revenue growth continue to be challenging. The Company believes recovery of commercial real estate in our region will take some time causing continued downward pressure on property valuation. We expect our provision for credit losses to remain elevated in 2011. The Federal Reserve Board continued to hold short term interest rates at historic lows throughout the year. The low rate environment impacted the yield on our investment portfolio as maturing investments and liquidity generated by our deposit growth was invested in lower rates. During 2010, the U.S. Government continued to help stimulate the economy via increased infrastructure spending and tax credits for certain buyers of residential real estate, automobiles and other durable goods which resulted in strong economic growth at the end of 2010 as the gross domestic product grew 2.8% during the fourth quarter of 2010. However, the national unemployment rate remained high at 9.4% at December 31, 2010, after fluctuating between 9.5% and 9.9% throughout most of the year. Elevated unemployment, depressed home values, and continued economic uncertainty has constrained consumer consumption. Additionally, capital spending and investing by businesses has remained sluggish given the slow and uneven economic recovery. This resulted in low loan demand during 2010 and we expect loan demand to remain low in 2011.

We believe that the economic crisis which has adversely impacted our customers and communities has resulted in a refocus on financial responsibility. We remain committed to the financial responsibility we have practiced throughout our 158 year history, and we are dedicated to providing financial education opportunities to our customers by providing the tools necessary to make wise financial decisions. Through any economic cycle, our strong capital profile positions us to advance our growth strategy by working with our customers to help them save and use credit wisely. It also allows us to continue to dedicate financial and human capital to support organizations that share our sense of responsibility to do what’s right for the communities we serve.

The Bank’s tier 1 leverage ratio totaled 8.89% at December 31, 2010 compared to 9.81% at December 31, 2009. The Bank’s total risk based capital ratio was 16.95% at December 31, 2010 compared to 17.98% at December 31, 2009. Our capital levels and ratios are well in excess of the levels required to be considered well-capitalized. We continued to position the Company for any further weakening in economic conditions by maintaining our loan loss reserve coverage ratio of 1.62% at December 31, 2010 as compared to 1.64% at December 31, 2009, with non-performing assets decreasing 14% to $140.4 million at December 31, 2010 as compared to $162.9 million at December 31, 2009.

In order to further improve our operating returns, we continue to leverage our position as one of the largest and oldest banks headquartered in the Philadelphia metropolitan area. Our customers select us for banking and other financial services based on our ability to rapidly make decisions as we are better informed than many of our competitors about the markets we serve. We are focused on acquiring and retaining customers, and then educating them by aligning our products and services to their financial needs. We are focused on effectively managing our cost structure to be aligned with the current business environment.

In this challenging economic environment, we are focused on credit risk management and loss prevention. We diligently risk rate our commercial customers to ensure we actively and effectively manage our customer relationships and minimize losses. We believe it is important to have a strong balance sheet and strong healthy capital levels.

RECENT INDUSTRY CONSOLIDATION

The banking industry has experienced significant consolidation in recent years, which is likely to continue in future periods. Consolidation may affect the markets in which we operate as competitors integrate newly acquired businesses, adopt new business and risk management practices or change products and pricing as they attempt to maintain or grow market share and maximize profitability. Merger activity involving national, regional and community banks and specialty finance companies in the Philadelphia metropolitan area, has and will continue to impact the competitive landscape in the markets we serve. Management continually monitors our primary market areas and assesses the impact of industry consolidation, as well as the practices and strategies of our competitors, including loan and deposit pricing and customer behavior.

CURRENT REGULATORY ENVIRONMENT

On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act”), which will implement significant changes throughout the financial services industry. The elements of the Dodd-Frank Act addressing financial stability are largely focused on issues related to systemic risks and capital markets-related activities. The Dodd-Frank Act includes a number of specific provisions designed to promote enhanced supervision and regulation of financial firms and financial markets, protect consumers and investors from financial abuse and provide the government with tools to manage a financial crisis and raise international regulatory standards. The Dodd-Frank Act also restructures the regulation of depository institutions. Specifically, under the Dodd-Frank Act, the Office of Thrift Supervision will be merged into the Office of the Comptroller of the Currency, which regulates national banks. Savings and loan holding companies will be regulated by the Federal Reserve Board. The Dodd-Frank Act contains various provisions designed to enhance the regulation of depository institutions and prevent the recurrence of a financial crisis such as occurred in 2008 and 2009. In addition, the Dodd-Frank Act creates a new federal agency, the Consumer Financial Protection Bureau, to administer and enforce consumer and fair lending laws, a function that is now performed by the depository institution regulators. The federal preemption of state laws currently afforded to federally chartered depository institutions will be reduced as well. The Dodd-Frank Act also will impose consolidated capital requirements on savings and loan holding companies effective in five years, which will limit our ability to borrow at the holding company and invest the proceeds from such borrowings as capital in the Bank that could be leveraged to support additional growth. The full impact of the Dodd-Frank Act on our business and operations will not be known for years until regulations implementing the legislation are written and adopted. The Dodd-Frank Act may have a material impact on our operations, particularly through increased compliance costs resulting from possible future consumer and fair lending regulations

In the fourth quarter of 2009, the Federal Reserve Board (“FRB”) announced regulatory changes to debit card and automated teller machine (“ATM”) overdraft practices that were effective July 1, 2010. These changes prohibit financial institutions from charging consumers fees for paying overdrafts on ATM and one-time debit card transactions, unless a consumer consents, or opts in, to the overdraft service for those types of transactions. We believe that the combination of these changes will have an impact that could be material to our non-interest income. The actual impact could vary due to a variety of factors, including changes in customer behavior.

CURRENT INTEREST RATE ENVIRONMENT

Net interest income represents a significant portion of the Company’s revenues. Accordingly, the interest rate environment has a substantial impact on our earnings. During the year ended December 31, 2010, our net interest margin increased to 3.32% from 3.28% from the year ended December 31, 2009. Asset growth coupled with an improvement in our deposit mix to lower cost deposit categories were the primary reasons for this margin expansion. Net interest margin in future periods will be impacted by several factors such as, but not limited to, our ability to grow and retain low cost core deposits, the future interest rate environment, loan and investment prepayment rates, and changes in non-accrual loans. We are currently liability sensitive so future increases in interest rates will result in higher interest expense and reduced net interest income.

CREDIT RISK ENVIRONMENT

The credit quality of our loan portfolio has a significant impact on our operating results. During 2010, the Company experienced considerable deterioration in the value of a number of the Company’s large commercial real estate properties collateralizing our commercial real estate loans. This deterioration reflected the pronounced slowdown in the commercial real estate market that has limited traditional refinance and repayment sources. The Company believes the recovery for the commercial real estate market in its market area will take some time and anticipates continued downward pressure on property valuations. The commercial real estate conditions led to a provision for credit losses of $70.2 million for 2010 compared to $15.7 million for 2009. We continued to strengthen our credit monitoring efforts in 2010 by expanding resources in our credit and risk management functions and maintaining focus on improving the credit quality of our loan portfolio.

Although the U.S. economy has shown some sign of improvement, unemployment remains high and commercial real estate conditions are still weak. We expect that property values will remain volatile until underlying market fundamentals improve consistently. In 2011, a significant portion of our commercial real estate and commercial construction portfolios contractually matures (approximately 33%). We expect that market conditions coupled with the large amount of commercial maturities will result in an elevated provision for credit losses in 2011.

Income. Our primary source of pre-tax income is net interest income. Net interest income is the difference between the income we earn on our loans and investments and the interest we pay on our deposits and borrowings. Changes in levels of interest rates affect our net interest income. During 2010, we increased net interest income, widened our net interest margin and improved our operating efficiency. The increase in the margin was primarily due to growth in interest earning assets coupled with a reduction in deposit and borrowing cost. In 2011, we will continue to be focused on improving our core profitability as we manage through the current credit environment.

A secondary source of income is non-interest income, which is revenue we receive from providing products and services. Traditionally, the majority of our non-interest income has come from service charges (mostly on deposit accounts). Our non-interest income increased during 2010 primarily due to additional service charge and other income, insurance and advisory income, trading securities profits and a decrease in an impairment charge for securities available-for-sale. We continue to seek to increase non-interest income by expanding the insurance and investment products we offer to our customers.

Allowance for Loan Losses. The allowance for loan losses is a valuation allowance for probable losses inherent in the loan portfolio. We evaluate the need to establish allowances against losses on loans on a quarterly basis. When additional allowances are necessary, a provision for loan losses is charged to earnings.

Expenses. The non-interest expenses we incur in operating our business consist of salaries and employee benefits expenses, equity plans, occupancy expenses, depreciation, amortization and maintenance expenses and other miscellaneous expenses, such as advertising, insurance, professional services and printing and supplies expenses.

Our largest non-interest expense is salaries and employee benefits, which consist primarily of salaries and wages paid to our employees, payroll taxes, and expenses for health insurance, retirement plans and other employee benefits. Our salaries and employee benefits expense have increased in recent periods as we continue recruit talented employees to help the Company achieve its growth objectives and increase our credit and risk management function.

We recorded a non-recurring curtailment gain in 2008 related to pension plan modifications. The after-tax impact of this curtailment gain was $4.7 million.

Occupancy expenses, which are the fixed and variable costs of buildings and equipment, consist primarily of furniture and equipment expenses, maintenance, real estate taxes and costs of utilities.

Federal Deposit Insurance Corporation (FDIC) insurance expense increased significantly during 2010 and 2009. Beginning in late 2008, the economic environment caused higher levels of bank failures, which dramatically increased Federal Deposit Insurance Corporation resolution costs and led to a significant reduction in the Deposit Insurance Fund. As a result, the Federal Deposit Insurance Corporation has significantly increased the initial base assessment rates paid by financial institutions for deposit insurance. During the third quarter of 2009, the base assessment rate increased by 1.65 basis points. During 2009, a special assessment was imposed on all insured institutions due to recent bank and savings association failures. The emergency assessment amounted to 5 basis points on each institution’s assets minus Tier 1 capital as of June 30, 2009, subject to a maximum equal to 10 basis points times the institution’s assessment base. Based on our assets and Tier 1 capital as of June 30, 2009, our special assessment was approximately $1.9 million. On February 7, 2011, the Federal Deposit Insurance Corporation approved a final rule that implemented changes to the deposit insurance assessment system mandated by the Dodd-Frank Act. The final rule, which will take effect for the quarter beginning April 1, 2011, requires that the base on which deposit insurance assessments are charged be revised from one that is based on domestic deposits to one that is based on average consolidated total assets minus average tangible equity. Under the final rule, insured depository institutions are required to report their average consolidated total assets on a daily basis, using the regulatory accounting methodology established for reporting total assets. For purposes of the final rule, tangible equity is defined as Tier 1 capital. Prior to the April 1, 2011 effective date of the final rule, the Federal Deposit Insurance Corporation will continue to calculate the assessment base from adjusted domestic deposits. We expect that this final rule will result in lower deposit insurance assessments for the Bank in 2011, however this may increase in the future as a result of the increase in the assessment base.

Other non-interest expenses have continued to increase as a result of additional costs incurred from internet banking, debit card rewards program, loan expenses, professional fees and other real estate owned expenses and losses.

Critical Accounting Policies

In the preparation of our consolidated financial statements, we have adopted various accounting policies that govern the application of accounting principles generally accepted in the United States. Our significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in this Annual Report.

Certain accounting policies involve significant judgments and assumptions by us that have a material impact on the carrying value of certain assets and liabilities. We consider these accounting policies to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under the circumstances. Actual results could differ from these judgments and estimates under different conditions, resulting in a change that could have a material impact on the carrying values of our assets and liabilities and our results of operations.

Allowance for Loan Losses. We consider the allowance for loan losses to be a critical accounting policy. The allowance for loan losses is determined by management based upon portfolio segment, past experience, evaluation of estimated loss and impairment in the loan portfolio, current economic conditions and other pertinent factors. Management also considers risk characteristics by portfolio segments including, but not limited to, renewals and real estate valuations. The allowance for loan losses is maintained at a level that management considers adequate to provide for estimated losses and impairment based upon an evaluation of known and inherent risk in the loan portfolio. Loan impairment is evaluated based on the fair value of collateral or estimated net realizable value. While management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations.

The allowance for loan losses (“ALLL”) is established through a provision for loan losses charged to expense which is based upon past loan and loss experience and an evaluation of estimated losses in the current loan portfolio, including the evaluation of impaired loans. Determining the amount of the allowance for loan losses necessarily involves a high degree of judgment. Among the material estimates required to establish the allowance are: overall economic conditions; value of collateral; strength of guarantors; loss exposure at default; the amount and timing of future cash flows on impaired loans; and determination of loss factors to be applied to the various elements of the portfolio. All of these estimates are susceptible to significant change. Management reviews the level of loss experience, current economic conditions and other factors related to the collectability of the loan portfolio. Although we believe that we use the best information available to establish the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluation. In addition, the FDIC and the Pennsylvania Department of Banking (“the Department”), as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require us to recognize adjustments to the allowance based on judgments about information available to them at the time of their examination. During 2010, we experienced significant charge-offs, primarily related to the commercial loan portfolio as a result of considerable deterioration in the collateral value of commercial real estate. Our financial results are affected by the changes in and the absolute level of the ALLL. This process involves our analysis of complex internal and external variables, and it requires that we exercise judgment to estimate an appropriate ALLL. As a result of the uncertainty associated with this subjectivity, we cannot assure the precision of the amount reserved, should we experience sizeable loan or lease losses in any particular period. For example, changes in the financial condition of individual borrowers, economic conditions, or the condition of various markets in which collateral may be sold could require us to significantly decrease or increase the level of the ALLL. Such an adjustment could materially affect net income as a result of the change in provision for credit losses. For example, a change in the estimate resulting in a 5% to 10% difference in the allowance would have resulted in an additional provision for credit losses of $3.5 million to $7.0 million as of December 31, 2010. During 2010, we experienced increases in delinquencies and net charge-offs in commercial real estate loans due to the weakness in the commercial real estate market. The ALLL considered these market conditions in deriving the estimated ALLL; however, given the continued economic difficulties, the ultimate amount of loss could vary from that estimate. See Note 6 to the Consolidated Financial Statements included in this Annual Report for additional discussion of the Company’s loan portfolio.

Goodwill and Intangible Assets. The purchase method of accounting for business combinations requires the Company to make use of estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets acquired and liabilities assumed. The excess of the purchase price of an acquired business over the fair value of the identifiable assets and liabilities represents goodwill. Goodwill totaled $110.5 million at December 31, 2010.

Goodwill and other indefinite lived intangible assets are not amortized on a recurring basis, but rather are subject to periodic impairment testing. The impairment test for goodwill requires the Company to compare the fair value of business reporting units to their carrying value including assigned goodwill on an annual basis. In addition, goodwill is tested more frequently if changes in circumstances or the occurrence of events indicate impairment potentially exists.

The goodwill impairment analysis estimates the fair value of equity using discounted cash flow analyses which require assumptions, as well as guideline company and guideline transaction information, where available. The inputs and assumptions specific to each reporting unit are incorporated in the valuations including projections of future cash flows, discount rates, the fair value of tangible and intangible assets and liabilities, and applicable valuation multiples based on the guideline information. We assess the reasonableness of the estimated fair value of the reporting units by giving consideration to our market capitalization over a reasonable period of time. Based on our latest annual impairment analysis of goodwill, we believe that the fair value for all reporting units is substantially in excess of the respective reporting unit’s carrying value.

During 2009, overall economic conditions and increased competition significantly impacted the financial results of the insurance brokerage business. As a result, the Company conducted an impairment evaluation of the goodwill specifically related to the insurance brokerage business, which indicated a decline in value, causing the Company to record an impairment charge of $1.0 million. The Company performs an annual impairment test as of year end.

Other intangible assets subject to amortization are evaluated for impairment in accordance with authoritative guidance. An impairment loss will be recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets included customer relationships and other related intangibles that are amortized on a straight-line basis using estimated lives of nine to 13 years for customer relationships and two to four years for other intangibles. At December 31, 2010 the fair value of other intangible assets exceeded the carrying amount and no impairment was recorded.

Income Taxes. We are subject to the income tax laws of the various jurisdictions where we conduct business and estimate income tax expense based on amounts expected to be owed to these various tax jurisdictions. The estimated income tax expense/(benefit) is reported in the Consolidated Statements of Operations. The evaluation pertaining to the tax expense and related tax asset and liability balances involves a high degree of judgment and subjectivity around the ultimate measurement and resolution of these matters.

Accrued taxes represent the net estimated amount due to or to be received from tax jurisdictions either currently or in the future and are reported in other assets on the Consolidated Statements of Financial Position. We assess the appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other pertinent information and maintain tax accruals consistent with our evaluation. Changes in the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations by the tax authorities and newly enacted statutory, judicial and regulatory guidance that could impact the relative merits of tax positions. These changes, when they occur, impact accrued taxes and can materially affect our operating results. We regularly evaluate our uncertain tax positions and estimate the appropriate level of reserves related to each of these positions.

As of December 31, 2010, the Company’s net deferred tax assets were $31.9 million. We regularly evaluate the realizability of deferred tax asset positions. In determining whether a valuation allowance is necessary, we consider the level of taxable income in prior years to the extent that carrybacks are permitted under current tax laws, as well as estimates of future pre-tax and taxable income and tax planning strategies that would, if necessary, be implemented. We currently maintain a valuation allowance for certain state net operating losses, charitable contribution carryovers and other-than-temporary impairments that management believes it is more likely than not that such deferred tax assets will not be realized. We expect to realize our remaining deferred tax assets over the allowable carryback and/or carryforward periods. Therefore, no valuation allowance is deemed necessary against our remaining federal or remaining state deferred tax assets as of December 31, 2010. However, if an unanticipated event occurred that materially changed pre-tax and taxable income in future periods, an increase in the valuation allowance may become necessary. For additional information, refer to Note 14 “Income Taxes,” to the Consolidated Financial Statements.

Postretirement Benefits. Several variables affect the annual cost for our defined benefit retirement programs. The main variables are: (1) size and characteristics of the employee population, (2) discount rate, (3) expected long-term rate of return on plan assets, (4) recognition of actual asset returns, and (5) other actuarial assumptions. Below is a brief description of these variables and the effect they have on our pension costs.

Size and Characteristics of the Employee Population

Pension cost is directly related to the number of employees covered by the plans, and other factors including salary, age, years of employment, and benefit terms. Effective June 30, 2008, plan participants ceased to accrue additional benefits under the existing pension benefit formula and their accrued benefits were frozen.

Discount Rate

The discount rate is used to determine the present value of future benefit obligations. The discount rate for each plan is determined by matching the expected cash flows of each plan to a yield curve based on long-term, high quality fixed income debt instruments available as of the measurement date, December 31, 2010. The discount rate for each plan is reset annually or upon occurrence of a triggering event on the measurement date to reflect current market conditions.

If we were to assume a 0.25% increase/decrease in the discount rate for all retirement and other postretirement plans, and keep all other assumptions constant, the benefit cost would decrease/increase by approximately $0.2 million.

Expected Long-term Rate of Return on Plan Assets

Based on historical experience, market projections, and the target asset allocation set forth in the investment policy for the retirement plans, the pre-tax expected rate of return on plan assets was 8.0% for both 2010 and 2009. This expected rate of return is dependent upon the asset allocation decisions made with respect to plan assets.

Annual differences, if any, between expected and actual returns are included in the unrecognized net actuarial gain or loss amount. We generally amortize any unrecognized net actuarial gain or loss in excess of 10% in net periodic pension expense over the average future service of active employees, which is approximately seven years, or average future lifetime for plans with no active participants that are frozen. See Note 15, “Pension and Postretirement Benefit Plans,” to the Consolidated Financial Statements for details on changes in the pension benefit obligation and the fair value of plan assets.

If we were to assume a 0.25% increase/decrease in the expected long-term rate of return for the retirement and other postretirement plans, holding all other actuarial assumptions constant, the benefit cost would decrease/increase by approximately $0.1 million.

Recognition of Actual Asset Returns

Accounting guidance allows for the use of an asset value that smoothes investment gains and losses over a period up to five years. However, we have elected to use a preferable method in determining pension cost. This method uses the actual market value of the plan assets. Therefore, we will experience more variability in the annual pension cost, as the asset values will be more volatile than companies who elected to “smooth” their investment experience.

Other Actuarial Assumptions

To estimate the projected benefit obligation, actuarial assumptions are required with respect to factors such as mortality rate, turnover rate, retirement rate and disability rate. These factors do not tend to change significantly over time, so the range of assumptions, and their impact on pension cost, is generally limited. We annually review the assumptions used based on historical and expected future experience.

In addition to our defined benefit programs we offer a defined contribution plan (“401(k) Plan”) covering substantially all of our employees. During 2008, in conjunction with freezing benefit accruals under the defined benefit program, we enhanced our 401(k) Plan and combined it with a recently formed Employee Stock Ownership Plan (‘ESOP”) to form the Employee Savings and Stock Ownership Plan (“KSOP”). While the KSOP is one plan, the two separate components of the 401(k) Plan and ESOP remain. Under the KSOP we make basic and matching contributions as well as additional contributions for certain employees based on age and years of service. We may also make discretionary contributions. Each participant’s account is credited with shares of the Company’s stock or cash based on compensation earned during the year. For additional information, refer to Note 16 “Employee Savings and Stock Ownership Plan” to the Consolidated Financial Statements.

Business Strategy

Our business strategy is to continue to operate and grow a profitable community-oriented financial institution. We plan to achieve this by executing our strategy of:

•

Differentiating Beneficial Bank as an education company;

•

Expanding our franchise through the opening of additional campuses in our market area and selectively pursuing acquisition opportunities;

•

Pursuing opportunities to grow in the small business market;

•

Continuing to use consistent, disciplined underwriting practices to maintain the quality of our loan portfolio;

•

Growing non-interest income by expanding the products and services we offer our customers, including the expansion of our insurance and investment services as well as growing and acquiring fee-based businesses; and

•

Actively managing non-interest expense to strategically reduce costs and improve our operating efficiency

Differentiating Beneficial as an education company

We are committed to educating our customers and providing them with the tools necessary to make wise financial decisions. We want to re-engineer the customer experience to educate at every touch point. We want to ensure the customer walks away knowing more financially than they did prior to our interaction. We build conversations and financial plans around customers’ needs, life stages and priorities. During 2010, we opened two new campuses in Cherry Hill, New Jersey that exemplified our commitment to education by providing free financial workshops, a learning library, knowledge bar and a little learner’s center.

Expanding our franchise through the opening of additional branch offices and by selectively pursuing acquisition opportunities

We regularly evaluate our network of banking offices to optimize the penetration of our market area in the most efficient way. We will occasionally open or consolidate banking offices. As discussed above, we opened two new campuses in Cherry Hill, New Jersey in 2010.

We are also enhancing our internet banking platform and began offering Finance Works in 2010. We recently completed our mobile banking product offering which will roll out in the first half of 2011.

We believe that changes in the regulatory environment as well as continued economic challenges for the banking industry will create acquisition opportunities for Beneficial. The Company is well positioned to execute on our growth strategies and pursue selective acquisition opportunities due to our strong capital position.

Pursuing opportunities to grow in the small business market

We have a diversified loan portfolio which includes small business commercial real estate and small business commercial business loans. At December 31, 2010, we had $156.0 million small business loans representing 5.58% of total loans. Small business loans provide diversification to our loan portfolio and, because these loans are based upon rate indices that are higher than those used for one-to-four family loans, they improve the interest sensitivity of our assets. In 2010, we re-structured our lending teams and created a dedicated team of small business lenders who work with our branches and are focused solely on small business lending. We intend to expand this team and grow our small business loan portfolio in future years.

Continuing to use consistent, disciplined underwriting practices to maintain the quality of our loan portfolio

We believe that maintaining high asset quality is a key to long-term financial success. We continued to strengthen our credit monitoring efforts in 2010 by expanding our loan review department to maintain quality in our portfolio. We have sought to grow and diversify our loan portfolio within our local market area while closely monitoring any nonperforming assets. We consistently apply underwriting standards that we believe are prudent and disciplined and we diligently monitor collection efforts. We maintain our philosophy of managing large loan exposures through our consistent, disciplined approach to lending, and our proactive approach to managing existing credits. During 2010, the Company saw considerable deterioration in the value of collateral securing a number of large collateral dependent loans. Additionally, the Company saw a pronounced slowdown in the commercial real estate market, limiting traditional refinance and repayment sources. As a result, the Company charged-off the collateral deficiency on all criticized loans during the year. We continue to add resources to our credit and risk management functions and are focused on improving the credit quality of our loan portfolio.

Growing non-interest income by expanding the products and services we offer our customers, including the expansion of our insurance and investment services as well as growing and acquiring fee-based businesses

We are seeking to expand the non-traditional financial products that we offer to serve the insurance and investment needs of our customers. In 2005, Beneficial Insurance Services, LLC, a wholly owned subsidiary of the Bank, acquired the assets of Philadelphia-based Paul Hertel & Co., Inc., an insurance brokerage firm that provides property, casualty, life, health and benefits insurance services to individuals and business customers. Additionally, on October 5, 2007, Beneficial Insurance Services, LLC acquired the business of CLA, a full-service property and casualty and professional liability insurance brokerage company headquartered in Newtown Square, Pennsylvania. We intend to continue to seek opportunities to expand the products and services we make available to our customers.

Actively managing non-interest expense to strategically reduce costs and improve our operating efficiency

We are seeking to reduce non-interest expense by implementing a cost control program that includes assessing the cost structure throughout the organization and identifying long term saving opportunities. We are targeting reductions in all discretionary expense areas and striving to improve our operating efficiency.

Balance Sheet Analysis

Securities. At December 31, 2010, our investment securities portfolio excluding Federal Home Loan Bank (“FHLB”) stock was $1.6 billion, or 33.1% of total assets. At December 31, 2010, 50.8% of the investment portfolio was invested in United States government sponsored enterprise (“GSE”) note securities issued by the FHLB, Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Federal National Mortgage Association (“Fannie Mae”). At December 31, 2010, 34.5% of the investment portfolio was invested in mortgage-backed securities issued by the Freddie Mac and Fannie Mae and the Government National Mortgage Association (“GNMA”); including collateralized mortgage obligations (“CMO”) securities issued by Freddie Mac, Fannie Mae, and GNMA. Private issuer CMOs totaled $56.5 million, or 3.5% of the Bank’s securities portfolio at December 31, 2010. At December 31, 2010, 0.9% of the investment portfolio was invested in pooled trust preferred securities. The remainder was invested primarily in municipal bonds, equity securities, mutual funds and money market funds. During 2010, the Company invested excess cash primarily into GSE and agency step-up notes. These investments have scheduled interest rate increases throughout the life of the investment and are typically subject to a call feature. The purchase of these investments were intended to position the Company’s balance sheet for rising interest rates.

The following table sets forth the cost and fair value of investment securities at December 31, 2010, 2009 and 2008.

		2010								2009								2008
December 31,		Amortized				Fair				Amortized				Fair				Amortized				Fair
(Dollars in thousands)		Cost				Value				Cost				Value				Cost				Value
Securities available-for-sale:
GSE and agency notes		$	840,011			$	827,895			$	209,135			$	208,334			$	8,687			$	8,699
Mortgage-backed securities:
GNMA guaranteed mortgage certificates			8,776				8,989				10,214				10,394				12,796				12,505
Other mortgage-backed securities			459,139				485,457				680,018				706,245				767,978				793,281
Collateralized mortgage obligations			89,047				91,460				138,857				140,308				177,300				176,373
Total mortgage-backed securities			556,962				585,906				829,089				856,947				958,074				982,159
Municipal and other bonds
Municipal bonds			99,069				99,132				188,980				189,957				79,542				79,976
Pooled trust preferred securities			16,989				14,522				21,379				18,797				25,113				19,328
Corporate bonds			—				—				—				—				125				125
Foreign bonds			—				—				—				—				500				501
Total municipal and other bonds			116,058				113,654				210,359				208,754				105,280				99,930
Equity securities			3,029				3,235				5,427				6,062				7,638				7,746
Money market fund			11,123				11,301				6,660				7,009				15,553				15,553
Total securities available-for-sale			1,527,183				1,541,991				1,260,670				1,287,106				1,095,232				1,114,087
Securities held-to-maturity:
GSE and agency notes			—				—				—				—				7,500				7,547
Mortgage-backed securities:
GNMA guaranteed mortgage certificates			639				609				685				655				728				699
Other mortgage-backed securities			30,876				32,943				45,359				47,284				67,786				69,123
Total mortgage-backed securities			31,515				33,552				46,044				47,939				68,514				69,822
Municipal bonds			54,594				54,595				1,465				1,413				—				—
Foreign bonds			500				501				500				501				—				—
Total municipal and other bonds			55,094				55,096				1,965				1,914				—				—
Total securities held-to-maturity			86,609				88,648				48,009				49,853				76,014				77,369
Total investment securities		$	1,613,792			$	1,630,639			$	1,308,679			$	1,336,959			$	1,171,246			$	1,191,456

Mortgage-backed securities are a type of asset-backed security that is secured by a mortgage, or a collection of mortgages. These securities usually pay periodic payments that are similar to coupon payments. Furthermore, the mortgage must have originated from regulated and authorized financial institutions. The contractual cash flows of investments in government sponsored enterprises’ mortgage-backed securities are debt obligations of Freddie Mac and Fannie Mae. Both companies are currently under the conservatorship of the Federal Housing Finance Agency (FHFA). The cash flows related to GNMA securities are direct obligations of the U.S. Government. Mortgage-backed securities are also known as mortgage pass-throughs. CMOs are a type of mortgage-backed security that create separate pools of pass-through rates for different classes of bondholders with varying cash flow structures, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds’ prospectus. At December 31, 2010, we had no investments in a single company or entity (other than United States government sponsored enterprise securities) that had an aggregate book value in excess of 10% of our equity.

At December 31, 2010 and 2009, securities totaling $791.0 million and $380.5 million were in an unrealized loss position and the unrealized losses on these securities totaled $16.1 million and $5.1 million, respectively. When evaluating for impairment, the Company’s management considers the duration and extent to which fair value is less than cost, the credit worthiness 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 and other available information to determine the nature of the decline in market value of the securities.

At December 31, 2010, the unrealized losses in the portfolio were mainly attributed to increases in U.S. Treasury rates experienced during the fourth quarter and were not due to the credit quality of the investments. As the Company does not intend to sell the investments, and it is not likely the Company will be required to sell the investments prior to recovery, the Company does not consider the investments to be other than temporarily impaired at December 31, 2010. During 2010, the Company recorded an impairment loss of $88 thousand related to a $300 thousand equity security that had been in an unrealized loss position for less than 12 months and for which management had deemed it unlikely that the market value would increase in the near future. During 2009, the Company deemed several common equity securities to be other than temporarily impaired which resulted in a $1.6 million impairment on these securities.

The following table sets forth the stated maturities and weighted average yields of investment securities at December 31, 2010. Certain securities have adjustable interest rates and will reprice monthly, quarterly, semi-annually or annually within the various maturity ranges. Mutual funds, money market funds and equity securities are not included in the table based on lack of a maturity date. The investment portfolio consists of $1.53 billion of fixed rate securities and $80.7 million in adjustable rate securities at December 31, 2010.

										More than One Year								More than Five Years
		One Year or Less								to Five Years								to Ten Years								More than Ten Years								Total
						Weighted								Weighted								Weighted								Weighted								Weighted
December 31, 2010		Carrying				Average				Carrying				Average				Carrying				Average				Carrying				Average				Carrying				Average
(Dollars in thousands)		Value				Yield				Value				Yield				Value				Yield				Value				Yield				Value				Yield
Securities available-for-sale:
GSE and agency notes		$	—				0.00	%		$	135,851				1.23	%		$	692,044				1.58	%		$	—				0.00	%		$	827,895				1.53	%
Mortgage-backed securities			5,231				4.09				1,911				4.61				70,292				5.04				508,472				4.73				585,906				4.76
Municipal and other bonds			2,093				3.88				16,579				4.27				27,265				4.04				53,195				4.29				99,132				4.21
Pooled trust preferred			—				0.00				—				0.00				—				0.00				14,522				1.16				14,522				1.16
Certificates of Deposit			313				0.87				—				0.00				—				0.00				—				0.00				313				0.87
Total available-for-sale			7,637				3.90				154,341				1.60				789,601				1.97				576,189				4.60				1,527,768				2.94	%
Securities held to maturity:
Mortgage-backed securities			—				0.00				1,948				4.28				14,406				4.30				15,161				5.75				31,515				5.00
Foreign bonds			—				0.00				500				1.76				—				0.00				—				0.00				500				1.76
Municipal bonds			52,214				1.48				1,630				2.42				625				5.17				125				6.00				54,594				1.56
Total held to maturity			52,214				1.48				4,078				3.23				15,031				4.34				15,286				5.75				86,609				2.81
Total		$	59,851				1.79	%		$	158,419				1.64	%		$	804,632				2.02	%		$	591,475				4.63	%		$	1,614,377				2.93	%

Loans. At December 31, 2010, total loans were $2.8 billion, or 56.7% of total assets, compared to $2.8 billion, or 59.7% of total assets at December 31, 2009. The commercial and residential loan portfolio experienced moderate growth during the year, which was partially offset by a decline in the consumer loan portfolio primarily in home equity and lines of credit loans. During 2010, the commercial loan portfolio, primarily commercial real estate loans, experienced high charge-off levels as a result of deterioration in the value of collateral securing a number of large collateral dependent real estate loans. Some economic measures are showing signs of improvement, however we believe the recovery for commercial real estate in our market area will take some time causing continued downward pressure on property valuations. The Company is charging-off the collateral deficiency on all of its classified collateral dependent loans once they are 90 days delinquent across all loan portfolios given our outlook for commercial real estate in our market area.

The following table shows the loan portfolio at the dates indicated:

December 31,		2010								2009								2008								2007								2006
(Dollars in thousands)		Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent				Amount				Percent
Commercial Loans:
Commercial real estate		$	600,734				21.5	%		$	599,849				21.5	%		$	543,647				22.4	%		$	516,361				24.3	%		$	407,452				24.1	%
Commercial business loans			441,881				15.8				438,778				15.7				319,593				13.2				135,880				6.4				98,070				5.8
Commercial construction			268,314				9.6				264,734				9.5				241,527				10.0				175,008				8.3				—				0.0
Total commercial loans			1,310,929				46.9				1,303,361				46.7				1,104,767				45.6				827,249				39.0				505,522				29.9
Residential Loans:
Residential real estate			687,565				24.6				647,687				23.3				507,901				20.9				479,505				22.6				278,763				16.5
Residential construction			11,157				0.4				11,938				0.4				6,055				0.2				1,959				0.1				9,967				0.6
Total real estate loans			698,722				25.0				659,625				23.7				513,956				21.1				481,464				22.7				288,730				17.1
Consumer Loans:
Home equity & lines of credit			288,875				10.3				314,467				11.3				363,592				15.0				392,188				18.5				386,414				22.9
Personal			94,036				3.4				112,142				4.0				133,258				5.5				149,596				7.0				169,871				10.0
Education			249,696				8.9				257,021				9.2				163,882				6.8				90,399				4.3				85,698				5.1
Automobile			154,144				5.5				143,503				5.1				145,127				6.0				180,026				8.5				252,590				15.0
Total consumer loans			786,751				28.1				827,133				29.6				805,859				33.3				812,209				38.3				894,573				53.0
Total loans			2,796,402				100.0	%			2,790,119				100.0	%			2,424,582				100.0	%			2,120,922				100.0	%			1,688,825				100.0	%
Allowance for losses			(45,366	)							(45,855	)							(36,905	)							(23,341	)							(17,368	)
Loans, net		$	2,751,036							$	2,744,264							$	2,387,677							$	2,097,581							$	1,671,457

Loan Maturity

The following tables set forth certain information at December 31, 2010 regarding the dollar amount of loan principal repayments becoming due during the periods indicated. The tables do not include any estimate of prepayments which significantly shorten the average life of all loans and may cause our actual repayment experience to differ from that shown below. Demand loans having no stated schedule of repayments and no stated maturity are reported as due in one year or less. The amounts shown below exclude applicable loans in process and include net deferred loan costs. Our adjustable-rate mortgage loans generally do not provide for downward adjustments below the initial discounted contract rate. When market interest rates rise, as has occurred in recent periods, the interest rates on these loans may increase based on the contract rate (the index plus the margin) exceeding the initial interest rate floor.

																						Home
														Residential								Equity &
December 31, 2010		Commercial				Commercial				Commercial				Real				Residential				Lines of																Total
(Dollars in thousands)		Real Estate				Business				Construction				Estate				Construction				Credit				Personal				Auto				Education				Loans
Amounts due in:
One year or less		$	77,201			$	81,319			$	212,119			$	2,414			$	10,846			$	57,746			$	3,224			$	9,468			$	56			$	454,393
More than 1-5 years			66,240				93,848				30,473				11,848				311				49,417				9,347				103,693				1,025				366,202
More than 5-10 years			34,635				46,646				21,724				92,811				—				82,154				34,714				40,952				23,920				377,556
More than 10 years			422,658				220,068				3,998				580,492				—				99,558				46,751				31				224,695				1,598,251
Total		$	600,734			$	441,881			$	268,314			$	687,565			$	11,157			$	288,875			$	94,036			$	154,144			$	249,696			$	2,796,402

The following table sets forth all loans at December 31, 2010 that are due after December 31, 2011 and have either fixed interest rates or floating or adjustable interest rates:

						Floating or
(Dollars in thousands)		Fixed Rates				Adjustable Rates				Total
Commercial real estate		$	63,981			$	459,552			$	523,533
Commercial business			72,729				287,833				360,562
Commercial construction			21,724				34,471				56,195
Residential real estate			620,729				64,422				685,151
Residential construction			—				311				311
Home equity and lines of credit			231,129				—				231,129
Personal			90,812				—				90,812
Automobile			144,676				—				144,676
Education			225,669				23,971				249,640
Total		$	1,471,449			$	870,560			$	2,342,009

Loan Activity

The following table shows loans originated, purchased and sold during the periods indicated:

Year Ended December 31,
(Dollars in thousands)		2010				2009				2008				2007				2006
Total loans at beginning of period		$	2,790,119			$	2,424,582			$	2,120,922			$	1,688,825			$	1,733,153
Originations:
Commercial:
Commercial real estate			72,176				66,842				114,126				211,386				141,578
Commercial business			131,865				202,947				237,148				53,861				44,588
Commercial construction			141,644				116,391				144,312				62,161				43,668
Total commercial loans			345,685				386,180				495,586				327,408				229,834
Residential;
Residential real estate			191,805				183,666				100,403				33,988				27,306
Residential construction			12,031				8,940				8,462				1,959				8,978
Total real estate loans			203,836				192,606				108,865				35,947				36,284
Consumer:
Home equity and lines of credit			62,978				45,780				61,962				62,285				87,377
Automobile			76,639				71,090				53,722				52,329				92,926
Personal			43,853				52,894				86,557				24,898				37,757
Education			—				16,425				39,564				18,694				26,712
Total consumer loans			183,470				186,189				241,805				158,206				244,772
Total loans originated			732,991				764,975				846,256				521,561				510,890
Loans acquired from FMS Financial			—				—				—				443,016				—
Purchases			9,888				201,681				38,356				91				5,064
Less:
Principal payments and repayments			720,508				560,617				580,166				529,335				551,351
Loan sales			—				37,272				—				2,941				8,592
Transfers to foreclosed real estate			16,088				3,230				786				295				339
Total loans at end of period		$	2,796,402			$	2,790,119			$	2,424,582			$	2,120,922			$	1,688,825

Deposits. Our deposit base is comprised of demand deposits, money market and passbook accounts and time deposits. Deposits increased $433.1 million, or 12.3% to $3.9 billion at December 31, 2010. Increases in core deposits totaled $524.5 million and now represent 78% of our total deposit portfolio. Approximately $310.0 million of the increase in core deposits was related to municipal checking account growth with the majority of the remaining increases occurring in savings accounts. The Company has experienced significant growth in municipal checking over the past three years primarily due to the recruitment of an experienced team in our New Jersey market. Municipal checking accounts consisted of approximately 1,447 accounts with an average balance of $769 thousand and represented 27.2% of the deposit base at December 31, 2010.

The following table sets forth the deposits as a percentage of total deposits for the periods indicated:

		2010								2009								2008
						Percent of								Percent of								Percent of
At December 31,						Total								Total								Total
(Dollars in thousands)		Amount				Deposits				Amount				Deposits				Amount				Deposits
Non-interest bearing deposits		$	282,050				7.2	%		$	242,412				6.9	%		$	226,382				8.3	%
Interest-earning checking accounts			420,873				10.7				359,977				10.3				307,556				11.2
Municipal checking accounts			1,072,574				27.2				762,538				21.7				238,577				8.7
Money market accounts			622,050				15.8				665,757				19.0				534,012				19.5
Savings accounts			696,629				17.7				532,511				15.2				394,308				14.4
Time deposits			848,128				21.4				946,052				26.9				1,040,844				37.9
Total		$	3,942,304				100.0	%		$	3,509,247				100.0	%		$	2,741,679				100.0	%