Beneficial divesting five N.J. branches in sale to WSFS

Beneficial Bancorp in Philadelphia will sell five branches in New Jersey as part of its sale to WSFS Financial in Wilmington, Del.

Beneficial will also sell about $190 million in deposits to the $1.2 billion-asset Bank of Princeton. The price was not disclosed.

WSFS and Beneficial said in a press release Monday that they conducted “an extensive analysis of the combined franchise” before deciding to sell the branches. The sale, which is contingent on WSFS' closing on its purchase of Beneficial, is expected to take place in the first quarter.

Bank of Princeton plans to integrate the branches in the second quarter.

WSFS previously said it would close 25 branches and sell five offices on the outer edges of its new footprint. The company said in a December press release that most of the closings would be in Pennsylvania, though some branches in Delaware and New Jersey will also be shuttered.

The sales and closings will shrink the total number of WSFS branches by 25%, to 90 locations. WSFS also plans to invest $32 million, or about half of the deal's expected total cost savings, to upgrade technology and delivery systems.

Bank of Princeton agreed in May 2016 to be sold to Investors Bancorp in Short Hills, N.J., but the deal fell through after Investors entered into an informal agreement with regulators to improve Bank Secrecy Act and anti-money-laundering compliance.

Boenning & Scattergood and Covington & Burling advised WSFS, as the planned successor to Beneficial Bank. Stevens & Lee advised Bank of Princeton.