WSFS Financial Corporation (Nasdaq: WSFS), the parent company of
WSFS Bank, today announced its financial results for the second
quarter of 2024.
Selected financial results and metrics are as follows:
(Dollars in millions, except per share
data)
2Q 2024
1Q 2024
2Q 2023
Net interest income
$
174.4
$
175.3
$
181.8
Fee revenue
91.6
75.9
66.9
Total net revenue
266.0
251.1
248.7
Provision for credit losses
19.8
15.1
15.8
Noninterest expense
155.8
149.1
141.3
Net income attributable to WSFS
69.3
65.8
68.7
Pre-provision net revenue (PPNR)(1)
110.3
102.1
107.5
Earnings per share (EPS) (diluted)
1.16
1.09
1.12
Return on average assets (ROA) (a)
1.34
%
1.28
%
1.36
%
Return on average equity (ROE) (a)
11.4
10.7
11.8
Fee revenue as % of total net revenue
34.4
30.2
26.8
Efficiency ratio
58.5
59.3
56.7
See “Notes”
GAAP results for the quarterly periods shown included items that
are excluded from core results. Below is a summary of the financial
effects of these items.
2Q 2024
1Q 2024
2Q 2023
(Dollars in millions, except per share
data)
Total (pre- tax)
Per share (after-tax)
Total (pre- tax)
Per share (after-tax)
Total (pre- tax)
Per share (after-tax)
Fee revenue(2)
$
5.6
$
0.07
$
(0.6
)
$
(0.01
)
$
(0.6
)
$
(0.01
)
Noninterest expense(3)
(0.2
)
—
1.5
0.02
2.8
0.03
Income tax impacts(4)
1.3
0.02
(0.5
)
(0.01
)
(0.8
)
(0.01
)
(1) As used in this press release, PPNR is
a non-GAAP financial measure that adjusts net income determined in
accordance with GAAP to exclude the impacts of (i) income tax
provision and (ii) provision for credit losses. For a
reconciliation of this and other non-GAAP financial measures to
their comparable GAAP measures, see "Non-GAAP Reconciliation" at
the end of the press release.
(2) Includes a gain due to the reduction
of our Visa B derivative liability established from our previous
sale of 360,000 shares in 2Q 2020, a gain on the liquidation of a
portion of our remaining Visa B equity investment, and post-close
distributions from our investment in Spring EQ.
(3) Includes a reduction to expense for
the final FDIC special assessment received during the quarter and
corporate development and restructuring costs.
(4) Income tax impacts are presented on an
after-tax basis.
CEO Commentary
Rodger Levenson, Chairman, CEO and President, said, "We are
pleased to report second quarter earnings of a core ROA(5) of 1.25%
and accompanying core EPS(5) of $1.08. Our results were highlighted
by quarterly core fee revenue(5) growth of 13%, driven by strong
performance in our Cash Connect®, Wealth and Trust, Capital
Markets, and Mortgage businesses. Solid annualized loan growth of
6% was driven primarily by our commercial and consumer lending
portfolios while deposits increased 3% annualized and the net
interest margin of 3.85% also increased slightly from the prior
quarter. Our strong performance provides momentum as we head into
the second half of 2024.
"Overall asset quality metrics remained stable and reflected the
uneven economy. While we experienced improvement in both
non-performing loans and delinquency levels, problem loans saw a
modest increase to 4.76% of total gross loans. Net charge-offs of
44 basis points remained consistent with recent history.
"During the quarter, Moody's Investor Services reaffirmed their
ratings of WSFS Financial Corporation with an investment-grade
issuer rating of Baa2 with a Stable Outlook. The ratings
affirmation reflects the benefits of our diversified business
model, our strong capital levels, earnings, liquidity, and asset
quality.
"On June 12th, we held our second annual 'We Stand For Service
Day', where nearly 1,500 of our Associates volunteered at more than
130 community organizations across the Greater Philadelphia,
Southern New Jersey, and Delaware region. Additionally, we were
honored to be named a 2024 honoree of The Civic 50 Greater
Philadelphia by the Philadelphia Chamber of Commerce for the third
year in a row. These community efforts are a testament of our over
2,200 Associates who live our mission of 'We Stand for Service'
every day."
(5) As used in this press release, core
EPS, core ROA and core fee revenue are non-GAAP financial measures.
These non-GAAP financial measures exclude certain pre-tax
adjustments and the tax impact of such adjustments. For a
reconciliation of these and other non-GAAP financial measures to
their comparable GAAP measures, see "Non-GAAP Reconciliation" at
the end of the press release.
Highlights for 2Q 2024:
- Core EPS was $1.08 compared to $1.11 for 1Q 2024.
- Core ROA was 1.25% compared to 1.31% for 1Q 2024.
- Core PPNR as a percent of average assets(6) of 2.02% was flat
compared to 1Q 2024.
- Core fee revenue (noninterest income) of $86.0 million, an
increase of $9.6 million, or 13% (not annualized), compared to 1Q
2024, driven by our Cash Connect®, Wealth and Trust, Capital
Markets, and Mortgage businesses.
- Gross loan growth of 1% (6% annualized) from 1Q 2024 primarily
driven by growth in the commercial & industrial (C&I) and
consumer portfolios.
- Customer deposits increased by 1% (3% annualized) compared to
1Q 2024, driven by increases in noninterest demand deposits from
short-term Trust deposits.
- Net interest margin of 3.85% compared to 3.84% for 1Q 2024,
reflects increasing loan yields mostly offset by higher deposit
pricing.
- Total net credit costs were $18.5 million, compared to $16.2
million for 1Q 2024 due to a higher provision on the commercial
mortgage (CRE) portfolio.
- WSFS repurchased 897,461 shares of common stock at an average
price of $44.20 per share, totaling an aggregate of $39.7 million.
Tangible common book value (TBV) per share(6) increased by $0.68 to
$25.20. The Board of Directors also approved a quarterly cash
dividend of $0.15 per share.
(6) As used in this press release, core
PPNR as a percentage of average assets and TBV per share are
non-GAAP financial measures. These non-GAAP financial measures
exclude certain pre-tax adjustments and the tax impact of such
adjustments. For a reconciliation of these and other non-GAAP
financial measures to their comparable GAAP measures, see "Non-GAAP
Reconciliation" at the end of the press release.
Second Quarter 2024 Discussion of Financial Results
Balance Sheet
The following table summarizes loan and lease balances and
composition at June 30, 2024 compared to March 31, 2024 and June
30, 2023:
Loans and Leases
(Dollars in millions)
June 30, 2024
March 31, 2024
June 30, 2023
Commercial & industrial (C&I)
$
4,599
35
%
$
4,489
35
%
$
4,533
37
%
Commercial mortgage
4,035
31
3,877
30
3,553
29
Construction
879
7
1,056
8
955
7
Commercial small business leases
644
5
634
5
590
5
Total commercial loans and leases
10,157
78
10,056
78
9,631
78
Residential mortgage
936
7
888
7
847
7
Consumer
2,106
17
2,066
17
1,905
16
Gross loans and leases
13,199
102
%
13,010
102
%
12,383
101
%
ACL
(198
)
(2
)
(193
)
(2
)
(172
)
(1
)
Net loans and leases
$
13,001
100
%
$
12,817
100
%
$
12,211
100
%
At June 30, 2024, WSFS’ gross loan and lease portfolio increased
$189.2 million, or 1% (6% annualized), when compared with March 31,
2024 due to increases of $110.2 million in C&I, $47.9 million
in residential mortgage due to the retention of certain loans based
on favorable yields and relationship opportunities, and $40.6
million in consumer loans (primarily from Spring EQ home equity
loans). The increase of $158.0 million in commercial mortgage and
corresponding decrease of $177.1 million in construction loans was
a result of a migration of construction loans to permanent
commercial mortgages.
The C&I portfolio (including owner-occupied real estate)
continued to be our largest portfolio at 35% of net loans and
leases. Additionally, our total commercial loan and lease portfolio
represents a majority of our lending portfolio at 78% of net loans
and leases.
Gross loans and leases at June 30, 2024 increased $815.8
million, or 7%, when compared with June 30, 2023. The increase was
driven by increases of $482.0 million in commercial mortgage,
$201.2 million in consumer loans (primarily from Spring EQ), $89.2
million in residential mortgage, and $65.9 million in C&I.
The following table summarizes customer deposit balances and
composition at June 30, 2024 compared to March 31, 2024 and June
30, 2023:
Customer Deposits
(Dollars in millions)
June 30, 2024
March 31, 2024
June 30, 2023
Noninterest demand
$
4,783
29
%
$
4,653
29
%
$
5,462
34
%
Interest-bearing demand
2,812
17
2,856
18
2,969
18
Savings
1,537
9
1,577
10
1,815
11
Money market
5,175
33
5,206
31
4,375
27
Total core deposits
14,307
88
14,292
88
14,621
90
Customer time deposits
1,984
12
1,895
12
1,640
10
Total customer deposits
$
16,291
100
%
$
16,187
100
%
$
16,261
100
%
Total customer deposits increased by $103.9 million, or 1% (3%
annualized), when compared with March 31, 2024, primarily due to
increases in noninterest demand deposits from short-term Trust
deposits and time deposits.
Customer deposits increased by $30.6 million from June 30, 2023,
primarily due to transactional accounts, which drive notable
inflows and outflows of deposits in our Wealth and Trust and
Commercial businesses.
Our deposit base remains highly diverse, with more than half of
our customer deposits, or 51%, coming from our Commercial, Small
Business, and Wealth and Trust business lines. The loan-to-deposit
ratio(7) was 80% at June 30, 2024, reflecting continued capacity to
fund future loan growth.
Core deposits were a strong 88% of total customer deposits. No-
and low-cost checking accounts represented 46% of total customer
deposits with a weighted average cost of 43bps for the quarter.
While customer deposits continue to shift into Certificates of
Deposits (CDs), these accounts represent only 12% of total customer
deposits as of June 30, 2024.
(7) Ratio of net loans and leases to total
customer deposits.
Net Interest Income
Three Months Ending
(Dollars in millions)
June 30, 2024
March 31, 2024
June 30, 2023
Net interest income before purchase
accretion
$
172.7
$
173.1
$
178.5
Purchase accounting accretion
1.7
2.2
3.3
Net interest income
$
174.4
$
175.3
$
181.8
Net interest margin before purchase
accretion
3.81
%
3.79
%
4.03
%
Purchase accounting accretion
0.04
0.05
0.08
Net interest margin
3.85
%
3.84
%
4.11
%
Net interest income decreased $0.8 million, or less than 1% (not
annualized), compared to 1Q 2024 primarily due to higher deposit
pricing resulting from growth in high yield money markets and
repricing of maturing CDs. Net interest income decreased $7.4
million, or 4%, compared to 2Q 2023, primarily driven by lagging
increases in deposit pricing following rate hikes in 2023 and
increased deposit costs due to the reasons noted above.
Total loan yields were 7.09%, an increase of 7bps when compared
to 1Q 2024. Total customer deposit costs were 1.89%, an increase of
10bps, while customer interest-bearing deposit costs were 2.69%, an
increase of 14bps compared to the prior quarter.
Net interest margin increased 1bp from 1Q 2024, due to
increasing loan yields mostly offset by higher deposit pricing
which resulted from growth in high yield money markets and
repricing of maturing CDs. Net interest margin decreased 26bps from
2Q 2023, primarily due to lagging increases in deposit pricing
following rate hikes in 2023 and a continued shift to higher
yielding deposit products.
Asset Quality
The following table summarizes asset quality metrics as of and
for the period ended June 30, 2024 compared to March 31, 2024 and
June 30, 2023.
(Dollars in millions)
June 30, 2024
March 31, 2024
June 30, 2023
Problem assets(8)
$
628.5
$
573.2
$
465.3
Nonperforming assets
65.4
67.2
33.5
Delinquencies
89.0
104.5
72.8
Net charge-offs
14.2
8.6
13.1
Total net credit costs (recoveries)
(r)
18.5
16.2
16.4
Problem assets to total Tier 1 capital
plus ACL
27.00
%
23.42
%
20.14
%
Classified assets to total Tier 1 capital
plus ACL
19.93
17.56
15.37
Ratio of nonperforming assets to total
assets
0.32
0.33
0.16
Delinquencies to gross loans (n)
0.68
0.81
0.59
Ratio of quarterly net charge-offs to
average gross loans
0.44
0.27
0.43
Ratio of allowance for credit losses to
total loans and leases (q)
1.51
1.48
1.39
Ratio of allowance for credit losses to
nonaccruing loans
310
292
521
See “Notes”
Overall asset quality remained stable compared to the previous
quarter. Problem assets to total Tier 1 capital plus ACL ratio was
27.00%, an increase of 0.0358bps compared to March 31, 2024,
primarily driven by the downgrades of three C&I loans totaling
$56.6 million during the quarter.
Delinquencies of $89.0 million, or 68bps of gross loans,
decreased $15.5 million, or 13bps, compared to March 31, 2024, due
to the payoff of a $15.3 million CRE-multifamily relationship.
Nonperforming assets decreased $1.8 million, or 1bp of total
assets, compared to March 31, 2024, primarily driven by favorable
resolutions and paydowns of multiple loans, partially offset by the
addition of a $17.3 million C&I relationship and a $4.3 million
CRE-office relationship in the suburban Philadelphia market. Net
charge-offs increased $5.6 million to $14.2 million, or 0.44%
(annualized) of average gross loans during the quarter, primarily
due to a charge-off on the CRE-office relationship mentioned above.
Excluding Upstart and NewLane, net charge-offs were 17bps of
average gross loans.
Total net credit costs were $18.5 million in the quarter
compared to $16.2 million in 1Q 2024. The ACL was $198.3 million as
of June 30, 2024, an increase of $5.6 million from March 31, 2024.
The ACL coverage ratio was 1.51%, an increase of 3bps from March
31, 2024. The increases in net credit costs and ACL from the prior
quarter were primarily due to higher provision on the CRE
portfolio.
(8) Problem assets includes all
criticized, classified, and nonperforming loans as well as other
real estate owned (OREO).
Core Fee Revenue
Fee businesses, including Wealth and Trust, Cash Connect®,
Capital Markets and Mortgage banking, continue to perform well and
reflect the investments we have made to diversify our revenue. Core
fee revenue (noninterest income) increased $9.6 million, or 13%
(not annualized), compared to $86.0 million from 1Q 2024, primarily
driven by increases of $4.7 million from Cash Connect® and $4.7
million from Wealth and Trust. The increase from Cash Connect® was
due to growth from ATM customers added during 1Q and 2Q and one
Customer moving to higher margin services during the quarter. The
increase from Wealth and Trust was due to growth in Trust Services
and seasonally-driven tax revenue in Private Wealth Management.
Core fee revenue increased $18.6 million, or 28%, compared to 2Q
2023. The increase was primarily due to the reasons noted
above.
For 2Q 2024, our core fee revenue ratio(9) was 33.0% compared to
30.3% in 1Q 2024 and 27.0% in 2Q 2023. Fee revenue is a competitive
differentiator providing a well-diversified source of revenue with
further growth opportunities expected across all sources.
(9) As used in this press release, core
fee revenue ratio is a non-GAAP financial measure. This non-GAAP
financial measure excludes certain pre-tax adjustments and the tax
impact of such adjustments. For a reconciliation of this and other
non-GAAP financial measures to their comparable GAAP measures, see
"Non-GAAP Reconciliation" at the end of the press release.
Core Noninterest Expense(10)
Core noninterest expense of $156.0 million increased $8.4
million, or 6% (not annualized), compared to 1Q 2024. Excluding the
one-time benefits of approximately $3.2 million to reflect lower
incentive payments during 1Q 2024 and a $2.1 million increase in
Cash Connect® external funding costs, core noninterest expense
increased by $3.1 million, or 2% (not annualized). The increase was
primarily due to an increase of $1.9 million in Associate medical
benefits as well as impacts from annual merit increases and other
investments in our Associates.
Core noninterest expense increased $17.5 million, or 13%,
compared to 2Q 2023. The increase was primarily due to $10.9
million in higher salaries and benefits from annual salary
increases and talent additions and $8.9 million from Cash Connect®
external funding costs, partially offset by a decrease in
professional fees.
Our core efficiency ratio(10) was 59.8% in 2Q 2024, compared to
58.6% in 1Q 2024 and 55.5% in 2Q 2023.
Income Taxes
We recorded a $21.3 million income tax provision in 2Q 2024,
compared to $21.2 million in 1Q 2024 and $23.0 million in 2Q
2023.
The effective tax rate was 23.5% in 2Q 2024 compared to 24.4% in
1Q 2024 and 25.1% in 2Q 2023. The decrease in effective tax rate
for 2Q 2024 compared to 1Q 2024 was primarily driven by solar tax
credit investments entered into during the quarter. The decrease in
effective tax rate when compared to 2Q 2023 is due to the benefit
from the solar and other tax credit investments and lower state
income taxes.
(10) As used in this press release, core
noninterest expense and core efficiency ratio are non-GAAP
financial measures. These non-GAAP financial measures exclude
certain pre-tax adjustments and the tax impact of such adjustments.
For a reconciliation of these and other non-GAAP financial measures
to their comparable GAAP measures, see "Non-GAAP Reconciliation" at
the end of the press release.
Capital Management
Capital levels remain strong and are all substantially in excess
of the “well-capitalized” regulatory benchmarks at June 30, 2024,
with WSFS Bank’s Tier 1 leverage ratio of 10.44%, Common Equity
Tier 1 capital ratio and Tier 1 capital ratio of 13.07%, and Total
Risk-based capital ratio of 14.32%.
WSFS’ total stockholders’ equity increased $16.1 million, or
less than 1% (not annualized), during 2Q 2024. The increase was
primarily due to quarterly earnings of $69.3 million and was
partially offset by capital returns of $48.7 million to
stockholders, comprising $39.7 million from share repurchases and
$9.0 million from quarterly dividends, as well as a decrease in
accumulated other comprehensive income (AOCI) of $6.0 million
driven by market-value decreases on investment securities.
WSFS’ tangible common equity(11) increased $20.3 million, or
less than 1% (not annualized), compared to March 31, 2024,
primarily due to the reasons described above and scheduled
amortization of intangibles. WSFS’ common equity to assets ratio
was 12.00% and our tangible common equity to tangible assets
ratio(11) was 7.56% at June 30, 2024, both essentially flat
compared to the prior quarter.
At June 30, 2024, book value per share was $42.01, an increase
of $0.84, or 2% (not annualized), from March 31, 2024, and TBV per
share was $25.20, an increase of $0.68, or 3% (not annualized),
from March 31, 2024.
During 2Q 2024, WSFS repurchased 897,461 shares of common stock
for an aggregate of $39.7 million. As of June 30, 2024, WSFS has
3,951,764 shares, or approximately 7% of outstanding shares,
remaining to repurchase under its current authorization. For the
year, total capital returned to stockholders through share
repurchases and quarterly dividends was $78.7 million.
The Board of Directors approved a quarterly cash dividend of
$0.15 per share of common stock. This dividend will be paid on
August 23, 2024 to stockholders of record as of August 9, 2024.
(11) As used in this press release,
tangible common equity and tangible common equity to tangible
assets ratio are non-GAAP financial measures. These non-GAAP
financial measures exclude goodwill and intangible assets and the
related tax-effected amortization. For a reconciliation of these
and other non-GAAP financial measures to their comparable GAAP
measures, see "Non-GAAP Reconciliation" at the end of the press
release.
Selected Business Segments (included in previous
results):
Wealth Management
The Wealth Management segment provides a broad array of planning
and advisory services, investment management, trust services,
credit and deposit products to individual, corporate, and
institutional clients.
Selected quarterly performance results and metrics are as
follows:
(Dollars in millions)
June 30, 2024
March 31, 2024
June 30, 2023
Net interest income
$
18.4
$
19.7
$
21.5
Provision for (recovery of) credit
losses
—
0.3
(0.5
)
Fee revenue
38.2
33.5
32.9
Noninterest expense(12)
28.0
26.4
24.3
Pre-tax income
28.6
26.5
30.5
Performance
Metrics
Trust fee revenue (Institutional Services
and BMT of DE)
$
21.8
$
17.8
$
17.5
Private Wealth Management fee revenue
15.5
14.8
14.4
AUM/AUA(13)
84,938
80,464
67,877
Wealth Management pre-tax income increased $2.1 million, or 8%
(not annualized), compared to 1Q 2024. Fee revenue increased $4.7
million from 1Q 2024, primarily due to account-based fees from new
business and increases in assignment and bankruptcy fees in
Institutional Services, increased activity in the Bryn Mawr Trust
Company of Delaware and seasonal recognition of tax revenue in
Private Wealth Management. Net interest income decreased $1.3
million, as average trust deposits were lower by $162.5 million
compared to 1Q 2024. Total noninterest expense increased $1.7
million, compared to 1Q 2024 mostly due to our trust system
conversion and certain volume-based charges.
Wealth Management pre-tax income decreased $1.9 million compared
to 2Q 2023 due to higher expenses and lower net interest income.
Fee revenue increased $5.3 million, or 16%, compared to 2Q 2023 due
to account growth in Private Wealth Management, which includes
market-based appreciation and expansion into the Rehoboth, DE
market. Net interest income decreased $3.1 million due to higher
funding costs. Total noninterest expense increased $3.7 million
driven by salary expense, reflecting the growth in the business
including the addition of the Rehoboth office.
Net AUM of $9.0 billion at the end of 2Q 2024 was essentially
flat compared to 1Q 2024, and increased $0.9 billion, or 11%,
compared to 2Q 2023. AUM balances over the period benefited
primarily from positive returns in broader equity markets.
(12) Includes intercompany allocation of
expense.
(13) Represents Assets Under Management
and Assets Under Administration.
Cash Connect®
Cash Connect® is a premier provider of ATM vault cash, smart
safe and cash logistics services in the United States, servicing
non-bank ATMs and smart safes nationwide and supporting ATMs for
WSFS Bank Customers with one of the largest branded ATM networks in
our region.
Selected quarterly financial results and metrics are as
follows:
(Dollars in millions)
June 30, 2024
March 31, 2024
June 30, 2023
Net revenue(14)
$
27.6
$
24.1
$
17.0
Noninterest expense(15)
25.6
23.3
16.0
Pre-tax income
2.0
0.8
0.9
Performance
Metrics
Cash managed
$
1,730
$
1,992
$
1,632
Number of serviced non-bank ATMs and smart
safes
42,524
46,031
34,325
Number of WSFS owned and branded ATMs
579
583
679
ROA
1.72
%
0.83
%
0.72
%
Cash Connect® pre-tax income increased $1.2 million to $2.0
million and ROA increased 89bps to 1.72%, compared to 0.83% in 1Q
2024, driven by growth from ATM customers added in 1Q and 2Q 2024
and one Customer moving to higher margin services during the
quarter. Net revenue increased $3.5 million from 1Q 2024 driven by
the same. Noninterest expense increased $2.2 million due to higher
external funding costs associated with the increase in vault
bailment units.
Net revenue increased $10.6 million and noninterest expense
increased $9.6 million compared to 2Q 2023, primarily driven by an
84% increase in bailment units year over year. This also drove a
pre-tax income increase of $1.0 million compared to 2Q 2023. ROA
increased 100bps compared to 2Q 2023 due to higher net income and a
higher proportion of external funding mix.
During 2Q 2024, Cash Connect® saw improved financial metrics, a
net decrease in overall units, and cash managed as a result of the
Customer shift mentioned above.
(14) Includes intercompany allocation of
income and net interest income.
(15) Includes intercompany allocation of
expense.
Second Quarter 2024 Earnings Release Conference Call
Management will conduct a conference call to review 2Q 2024
results at 1:00 p.m. Eastern Time (ET) on Friday, July 26, 2024.
Interested parties may access the conference call live on our
Investor Relations website (https://investors.wsfsbank.com). For
those who cannot access the live conference call, a replay will be
accessible shortly after the event concludes through our Investor
Relations website.
About WSFS Financial Corporation
WSFS Financial Corporation is a multibillion-dollar financial
services company. Its primary subsidiary, WSFS Bank, is the oldest
and largest locally headquartered bank and trust company in the
Greater Philadelphia and Delaware region. As of June 30, 2024, WSFS
Financial Corporation had $20.7 billion in assets on its balance
sheet and $84.9 billion in assets under management and
administration. WSFS operates from 114 offices, 88 of which are
banking offices, located in Pennsylvania (57), Delaware (39), New
Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides
comprehensive financial services including commercial banking,
consumer banking, treasury management and trust and wealth
management. Other subsidiaries or divisions include Arrow Land
Transfer, Bryn Mawr Capital Management, LLC, Bryn Mawr Trust®, The
Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane
Finance®, Powdermill® Financial Solutions, WSFS Institutional
Services®, WSFS Mortgage®, and WSFS Wealth® Investments. Serving
the Greater Delaware Valley since 1832, WSFS Bank is one of the ten
oldest banks in the United States continuously operating under the
same name. For more information, please visit www.wsfsbank.com.
Forward-Looking
Statements
This press release contains estimates, predictions, opinions,
projections and other "forward-looking statements" as that phrase
is defined in the Private Securities Litigation Reform Act of 1995.
Such statements include, without limitation, references to the
Company's predictions or expectations of future business or
financial performance as well as its goals and objectives for
future operations, financial and business trends, business
prospects, and management's outlook or expectations for earnings,
revenues, expenses, capital levels, liquidity levels, asset quality
or other future financial or business performance, strategies or
expectations. The words “believe,” “expect,” “anticipate,” “plan,”
“estimate,” “target,” “project” and similar expressions, among
others, generally identify forward-looking statements. Such
forward-looking statements are based on various assumptions (some
of which may be beyond the Company's control) and are subject to
risks and uncertainties (which change over time) and other factors
which could cause actual results to differ materially from those
currently anticipated. Such risks and uncertainties include, but
are not limited to, difficult market conditions and unfavorable
economic trends in the United States generally and in financial
markets, particularly in the markets in which the Company operates
and in which its loans are concentrated, including difficult and
unfavorable conditions and trends related to housing markets, costs
of living, unemployment levels, interest rates, supply chain
issues, inflation, and economic growth; the impacts related to or
resulting from bank failures and other economic and industry
volatility, including potential increased regulatory requirements
and costs and potential impacts to macroeconomic conditions;
changes in market interest rates which may increase funding costs
and reduce earning asset yields and thus reduce margin; the impact
of changes in interest rates and the credit quality and strength of
underlying collateral and the effect of such changes on the market
value of the Company's investment securities portfolio, which could
impact market confidence in the Company’s operations; possible
additional loan losses and impairment of the collectability of
loans; the Company's level of nonperforming assets and the costs
associated with resolving problem loans including litigation and
other costs and complying with government-imposed foreclosure
moratoriums; , the credit risk associated with the substantial
amount of commercial real estate, commercial and industrial, and
construction and land development loans in the Company's loan
portfolio; the extensive federal and state regulation, supervision
and examination governing almost every aspect of the Company's
operations and potential expenses associated with complying with
such regulations; the Company's ability to comply with applicable
capital and liquidity requirements, including its ability to
generate liquidity internally or raise capital on favorable terms;
possible changes in trade, monetary and fiscal policies and
stimulus programs, laws and regulations and other activities of
governments, agencies, and similar organizations, and the
uncertainty of the short- and long-term impacts of such changes;
any impairments of the Company's goodwill or other intangible
assets; the success of the Company's growth plans; failure of the
financial and/or operational controls of the Company's Cash
Connect® and/or Wealth Management segments; the Company's ability
to successfully integrate and fully realize the cost savings and
other benefits of its acquisitions, manage risks related to
business disruption following those acquisitions, and
post-acquisition Customer acceptance of the Company's products and
services and related Customer disintermediation; negative
perceptions or publicity with respect to the Company generally and,
in particular, the Company's trust and wealth management business;
adverse judgments or other resolution of pending and future legal
proceedings, and cost incurred in defending such proceedings; the
Company's reliance on third parties for certain important
functions, including the operation of its core systems, and any
failures by such third parties; system failures or cybersecurity
incidents or other breaches of the Company's network security,
particularly given remote working arrangements; the Company's
ability to recruit and retain key Associates; the effects of
weather, including climate change, and natural disasters such as
floods, droughts, wind, tornadoes and hurricanes as well as effects
from geopolitical instability, armed conflicts, public health
crises and man-made disasters including terrorist attacks; the
effects of regional or national civil unrest (including any
resulting branch or ATM closures or damage); possible changes in
the speed of loan prepayments by the Company's Customers and loan
origination or sales volumes; possible changes in market valuations
and/or the speed of prepayments of mortgage-backed securities (MBS)
due to changes in the interest rate environment, and the related
acceleration of premium amortization on prepayments in the event
that prepayments accelerate; regulatory limits on the Company's
ability to receive dividends from its subsidiaries and pay
dividends to its stockholders; any reputation, credit, interest
rate, market, operational, litigation, legal, liquidity, regulatory
and compliance risk resulting from developments related to any of
the risks discussed above; any compounding effects or unexpected
interactions of the risks discussed above; and other risks and
uncertainties, including those discussed in the Company's Annual
Report on Form 10-K for the year ended December 31, 2023, Form 10-Q
for the quarter ended March 31, 2024, and other documents filed by
the Company with the Securities and Exchange Commission from time
to time.
The Company cautions readers not to place undue reliance on any
such forward-looking statements, which speak only as of the date
they are made. The Company disclaims any duty to revise or update
any forward-looking statement, whether written or oral, that may be
made from time to time by or on behalf of the Company for any
reason, except as specifically required by law. As used in this
press release, the terms "WSFS," "the Company," "registrant," "we,"
"us," and "our" mean WSFS Financial Corporation and its
subsidiaries, on a consolidated basis, unless the context indicates
otherwise.
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited)
Three months ended
Six months ended
(Dollars in thousands, except per share
data)
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Interest income:
Interest and fees on loans
$
230,815
$
224,703
$
207,884
$
455,518
$
401,608
Interest on mortgage-backed securities
25,784
25,897
27,130
51,681
54,656
Interest and dividends on investment
securities
2,183
2,184
2,182
4,367
4,419
Other interest income
6,455
8,838
4,573
15,293
7,469
265,237
261,622
241,769
526,859
468,152
Interest expense:
Interest on deposits
76,693
72,795
50,054
149,488
85,246
Interest on Federal Home Loan Bank
advances
359
308
1,597
667
4,968
Interest on senior and subordinated
debt
2,441
2,449
2,334
4,890
4,907
Interest on trust preferred borrowings
1,750
1,756
1,635
3,506
3,190
Interest on other borrowings
9,545
9,036
4,307
18,581
5,467
90,788
86,344
59,927
177,132
103,778
Net interest income
174,449
175,278
181,842
349,727
364,374
Provision for credit losses
19,814
15,138
15,830
34,952
44,841
Net interest income after provision for
credit losses
154,635
160,140
166,012
314,775
319,533
Noninterest income:
Credit/debit card and ATM income
23,875
19,669
14,430
43,544
27,791
Investment management and fiduciary
revenue
37,606
32,928
32,379
70,534
62,855
Deposit service charges
6,496
6,487
6,277
12,983
12,316
Mortgage banking activities, net
2,217
1,647
1,304
3,864
2,426
Loan and lease fee income
1,706
1,523
1,190
3,229
2,562
Unrealized loss on equity investment,
net
—
—
—
—
(4
)
Realized gain on sale of equity
investment, net
2,130
—
—
2,130
—
Bank-owned life insurance income
793
1,200
760
1,993
2,270
Other income
16,775
12,403
10,531
29,178
19,782
91,598
75,857
66,871
167,455
129,998
Noninterest expense:
Salaries, benefits and other
compensation
83,249
75,806
72,367
159,055
145,216
Occupancy expense
9,387
9,479
10,132
18,866
20,540
Equipment expense
12,054
10,692
10,810
22,746
20,602
Data processing and operations expense
4,807
3,660
4,771
8,467
9,495
Professional fees
4,781
4,481
6,118
9,262
10,557
Marketing expense
2,020
1,782
2,165
3,802
3,881
FDIC expenses
2,390
3,982
2,863
6,372
5,445
Loan workout and other credit costs
(1,278
)
1,071
536
(207
)
481
Corporate development expense
158
208
2,796
366
3,536
Restructuring expense
—
—
(26
)
—
(787
)
Other operating expenses
38,200
37,911
28,721
76,111
55,332
155,768
149,072
141,253
304,840
274,298
Income before taxes
90,465
86,925
91,630
177,390
175,233
Income tax provision
21,257
21,202
23,035
42,459
43,976
Net income
69,208
65,723
68,595
134,931
131,257
Less: Net (loss) income attributable to
noncontrolling interest
(65
)
(38
)
(83
)
(103
)
175
Net income attributable to WSFS
$
69,273
$
65,761
$
68,678
$
135,034
$
131,082
Diluted earnings per share of common
stock:
$
1.16
$
1.09
$
1.12
$
2.24
$
2.13
Weighted average shares of common stock
outstanding for fully diluted EPS
59,958,628
60,521,951
61,414,273
60,237,232
61,526,331
See “Notes”
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited) -
continued
Three months ended
Six months ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Performance Ratios:
Return on average assets (a)
1.34
%
1.28
%
1.36
%
1.31
%
1.31
%
Return on average equity (a)
11.39
10.68
11.81
11.03
11.51
Return on average tangible common equity
(a)(o)
20.08
18.76
21.66
19.42
21.43
Net interest margin (a)(b)
3.85
3.84
4.11
3.85
4.18
Efficiency ratio (c)
58.46
59.28
56.71
58.86
55.37
Noninterest income as a percentage of
total net revenue (b)
34.38
30.16
26.85
32.33
26.24
See “Notes”
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
(Continued) SUMMARY STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands)
June 30, 2024
March 31, 2024
June 30, 2023
Assets:
Cash and due from banks
$
618,446
$
787,729
$
723,034
Cash in non-owned ATMs
400,482
186,522
386,176
Investment securities,
available-for-sale
3,651,913
3,734,229
3,954,918
Investment securities,
held-to-maturity
1,038,854
1,049,807
1,079,768
Other investments
36,204
35,397
40,309
Net loans and leases (e)(f)(l)
13,000,556
12,816,986
12,211,112
Bank owned life insurance
36,090
42,708
101,108
Goodwill and intangibles
996,181
1,000,344
1,004,278
Other assets
965,804
925,526
884,988
Total assets
$
20,744,530
$
20,579,248
$
20,385,691
Liabilities and
Stockholders’ Equity:
Noninterest-bearing deposits
$
4,782,920
$
4,652,875
$
5,462,461
Interest-bearing deposits
11,508,161
11,534,329
10,798,060
Total customer deposits
16,291,081
16,187,204
16,260,521
Brokered deposits
—
—
167,435
Total deposits
16,291,081
16,187,204
16,427,956
Federal Home Loan Bank advances
22,306
—
—
Other borrowings
1,119,949
1,124,958
899,493
Other liabilities
832,837
801,464
750,858
Total liabilities
18,266,173
18,113,626
18,078,307
Stockholders’ equity of WSFS
2,489,580
2,473,481
2,314,659
Noncontrolling interest
(11,223
)
(7,859
)
(7,275
)
Total stockholders' equity
2,478,357
2,465,622
2,307,384
Total liabilities and stockholders'
equity
$
20,744,530
$
20,579,248
$
20,385,691
Capital Ratios:
Equity to asset ratio
12.00
%
12.02
%
11.35
%
Tangible common equity to tangible asset
ratio (o)
7.56
7.52
6.76
Common equity Tier 1 capital (required:
4.5%; well capitalized: 6.5%) (g)
13.07
14.00
13.68
Tier 1 leverage (required: 4.00%;
well-capitalized: 5.00%) (g)
10.44
11.14
10.83
Tier 1 risk-based capital (required:
6.00%; well-capitalized: 8.00%) (g)
13.07
14.00
13.68
Total risk-based capital (required: 8.00%;
well-capitalized: 10.00%) (g)
14.32
15.25
14.85
Asset Quality Indicators:
Nonperforming assets:
Nonaccruing loans (t)
$
64,034
$
65,948
$
33,003
Assets acquired through foreclosure
1,342
1,210
527
Total nonperforming assets
$
65,376
$
67,158
$
33,530
Past due loans (h)
$
9,798
$
11,362
$
13,571
Troubled loans (u)
133,080
119,243
51,129
Allowance for credit losses
198,260
192,637
171,877
Ratio of nonperforming assets to total
assets
0.32
%
0.33
%
0.16
%
Ratio of allowance for credit losses to
total loans and leases (q)
1.51
1.48
1.39
Ratio of allowance for credit losses to
nonaccruing loans
310
292
521
Ratio of quarterly net charge-offs to
average gross loans (a)(e)(i)(n)
0.44
0.27
0.43
Ratio of year-to-date net charge-offs to
average gross loans (a)(e)(i)(n)
0.35
0.27
0.41
See “Notes”
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
(Continued) AVERAGE BALANCE SHEET (Unaudited)
(Dollars in thousands)
Three months ended
June 30, 2024
March 31, 2024
June 30, 2023
Average Balance
Interest &
Dividends
Yield/ Rate
(a)(b)
Average Balance
Interest & Dividends
Yield/ Rate (a)(b)
Average Balance
Interest & Dividends
Yield/ Rate (a)(b)
Assets:
Interest-earning assets:
Loans: (e) (j)
Commercial loans and leases (p)
$
5,115,017
$
91,001
7.17
%
$
5,047,482
$
88,530
7.06
%
$
5,051,292
$
86,073
6.85
%
Commercial real estate loans (s)
4,968,847
88,852
7.19
4,887,483
86,724
7.14
4,484,162
78,018
6.98
Residential mortgage
892,139
10,995
4.93
874,703
10,579
4.84
804,390
9,384
4.67
Consumer loans
2,088,180
39,019
7.52
2,041,390
38,228
7.53
1,907,294
33,508
7.05
Loans held for sale
42,010
948
9.08
34,907
642
7.40
45,766
901
7.90
Total loans and leases
13,106,193
230,815
7.09
12,885,965
224,703
7.02
12,292,904
207,884
6.79
Mortgage-backed securities (d)
4,335,831
25,784
2.38
4,476,032
25,897
2.31
4,766,207
27,130
2.28
Investment securities (d)
361,093
2,183
2.70
365,375
2,184
2.65
370,530
2,182
2.62
Other interest-earning assets
469,120
6,455
5.53
643,749
8,838
5.52
345,791
4,573
5.30
Total interest-earning assets
$
18,272,237
$
265,237
5.85
%
$
18,371,121
$
261,622
5.74
%
$
17,775,432
$
241,769
5.46
%
Allowance for credit losses
(195,557
)
(188,762
)
(170,968
)
Cash and due from banks
308,226
273,286
255,590
Cash in non-owned ATMs
339,430
243,941
387,889
Bank owned life insurance
41,067
42,791
101,031
Other noninterest-earning assets
2,020,925
1,953,037
1,872,610
Total assets
$
20,786,328
$
20,695,414
$
20,221,584
Liabilities and stockholders’
equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand
$
2,807,761
$
8,107
1.16
%
$
2,834,273
$
7,366
1.05
%
$
3,039,257
$
6,525
0.86
%
Savings
1,553,044
1,774
0.46
1,588,224
1,580
0.40
1,873,572
1,342
0.29
Money market
5,172,682
46,390
3.61
5,186,402
45,433
3.52
4,137,867
27,898
2.70
Customer time deposits
1,937,265
20,422
4.24
1,835,424
18,238
4.00
1,578,615
10,597
2.69
Total interest-bearing customer
deposits
11,470,752
76,693
2.69
11,444,323
72,617
2.55
10,629,311
46,362
1.75
Brokered deposits
—
—
—
18,410
178
3.89
307,515
3,692
4.82
Total interest-bearing deposits
11,470,752
76,693
2.69
11,462,733
72,795
2.55
10,936,826
50,054
1.84
Federal Home Loan Bank advances
25,742
359
5.61
21,429
308
5.78
123,297
1,597
5.20
Trust preferred borrowings
90,704
1,750
7.76
90,655
1,756
7.79
90,511
1,635
7.25
Senior and subordinated debt
218,478
2,441
4.47
218,420
2,449
4.48
218,247
2,334
4.28
Other borrowed funds
816,919
9,545
4.70
781,854
9,036
4.65
390,576
4,307
4.42
Total interest-bearing liabilities
$
12,622,595
$
90,788
2.89
%
$
12,575,091
$
86,344
2.76
%
$
11,759,457
$
59,927
2.04
%
Noninterest-bearing demand deposits
4,835,912
4,828,865
5,458,676
Other noninterest-bearing liabilities
891,273
822,834
674,300
Stockholders’ equity of WSFS
2,446,371
2,476,453
2,332,147
Noncontrolling interest
(9,823
)
(7,829
)
(2,996
)
Total liabilities and equity
$
20,786,328
$
20,695,414
$
20,221,584
Excess of interest-earning assets over
interest-bearing liabilities
$
5,649,642
$
5,796,030
$
6,015,975
Net interest and dividend income
$
174,449
$
175,278
$
181,842
Interest rate spread
2.96
%
2.98
%
3.42
%
Net interest margin
3.85
%
3.84
%
4.11
%
See “Notes”
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
(Continued) (Unaudited)
(Dollars in thousands, except per share
data)
Three months ended
Six months ended
Stock Information:
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Market price of common stock:
High
$47.55
$47.71
$40.54
$47.71
$51.77
Low
41.33
40.20
29.59
40.20
29.59
Close
47.00
45.14
37.72
47.00
37.72
Book value per share of common stock
42.01
41.17
37.89
Tangible common book value (TBV) per share
of common stock (o)
25.20
24.52
21.45
Number of shares of common stock
outstanding (000s)
59,261
60,084
61,093
Other Financial Data:
One-year repricing gap to total assets
(k)
(0.30)%
0.19%
2.50%
Weighted average duration of the MBS
portfolio
5.7 years
5.8 years
5.8 years
Unrealized losses on securities available
for sale, net of taxes
$(549,039)
$(539,939)
$(550,890)
Number of Associates (FTEs) (m)
2,279
2,241
2,219
Number of offices (branches, LPO’s,
operations centers, etc.)
114
114
114
Number of WSFS owned and branded ATMs
579
583
679
Notes:
(a)
Annualized.
(b)
Computed on a fully
tax-equivalent basis.
(c)
Noninterest expense divided by
(tax-equivalent) net interest income and noninterest income.
(d)
Includes securities
held-to-maturity (at amortized cost) and securities
available-for-sale (at fair value).
(e)
Net of unearned income.
(f)
Net of allowance for credit
losses.
(g)
Represents capital ratios of
Wilmington Savings Fund Society, FSB and subsidiaries. Capital
Ratios for the current quarter are to be considered preliminary
until the Call Reports are filed.
(h)
Accruing loans which are
contractually past due 90 days or more as to principal or interest.
Balance includes student loans, which are U.S. government
guaranteed with little risk of credit loss.
(i)
Excludes loans held for sale.
(j)
Nonperforming loans are included
in average balance computations.
(k)
The difference between projected
amounts of interest-sensitive assets and interest-sensitive
liabilities repricing within one year divided by total assets,
based on a current interest rate scenario.
(l)
Includes loans held for sale and
reverse mortgages.
(m)
Includes seasonal Associates,
when applicable.
(n)
Excludes reverse mortgage
loans.
(o)
The Company uses non-GAAP (United
States Generally Accepted Accounting Principles) financial
information in its analysis of the Company’s performance. The
Company’s management believes that these non-GAAP financial
measures provide a greater understanding of ongoing operations,
enhance comparability of results of operations with prior periods
and show the effects of significant gains and charges in the
periods presented. The Company’s management believes that investors
may use these non-GAAP financial measures to analyze the Company’s
financial performance without the impact of unusual items or events
that may obscure trends in the Company’s underlying performance.
This non-GAAP data should be considered in addition to results
prepared in accordance with GAAP, and is not a substitute for, or
superior to, GAAP results. For a reconciliation of these and other
non-GAAP financial measures to their comparable GAAP measures, see
"Non-GAAP Reconciliation" at the end of the press release.
(p)
Includes commercial &
industrial loans and commercial small business leases.
(q)
Represents amortized cost basis
for loans and leases.
(r)
Includes provision for credit
losses, loan workout expenses, OREO expenses and other credit
costs.
(s)
Includes commercial mortgage and
commercial construction loans.
(t)
Includes nonaccruing troubled
loans.
(u)
Represents loans modified in the
form of principal forgiveness, interest rate reduction, an
other-than-insignificant payment delay, or a term extension to
borrowers experiencing financial difficulty.
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
(Continued) (Dollars in thousands, except per share data)
(Unaudited)
Non-GAAP Reconciliation (o):
Three months ended
Six months ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net interest income (GAAP)
$
174,449
$
175,278
$
181,842
$
349,727
$
364,374
Core net interest income (non-GAAP)
174,449
175,278
181,842
349,727
364,374
Noninterest income (GAAP)
91,598
75,857
66,871
167,455
129,998
Plus: Unrealized loss on equity
investments, net
—
—
—
—
(4
)
Less: Realized gain on sale of equity
investment, net
2,130
—
—
2,130
—
Less/(plus): Visa derivative valuation
adjustment
3,434
(605
)
(552
)
2,829
(1,105
)
Core fee revenue (non-GAAP)
$
86,034
$
76,462
$
67,423
$
162,496
$
131,107
Core net revenue (non-GAAP)
$
260,483
$
251,740
$
249,265
$
512,223
$
495,481
Core net revenue
(non-GAAP)(tax-equivalent)
$
260,900
$
252,084
$
249,633
$
512,984
$
496,492
Noninterest expense (GAAP)
$
155,768
$
149,072
$
141,253
$
304,840
$
274,298
(Plus)/less: FDIC special assessment
(383
)
1,263
—
880
—
Less: Corporate development expense
158
208
2,796
366
3,536
Plus: Restructuring expense
—
—
(26
)
—
(787
)
Core noninterest expense (non-GAAP)
$
155,993
$
147,601
$
138,483
$
303,594
$
271,549
Core efficiency ratio (non-GAAP)
59.8
%
58.6
%
55.5
%
59.2
%
54.7
%
Core fee revenue ratio (non-GAAP) (b)
33.0
%
30.3
%
27.0
%
31.7
%
26.4
%
End of period
June 30, 2024
March 31, 2024
June 30, 2023
Total assets (GAAP)
$
20,744,530
$
20,579,248
$
20,385,691
Less: Goodwill and other intangible
assets
996,181
1,000,344
1,004,278
Total tangible assets (non-GAAP)
$
19,748,349
$
19,578,904
$
19,381,413
Total stockholders’ equity of WSFS
(GAAP)
$
2,489,580
$
2,473,481
$
2,314,659
Less: Goodwill and other intangible
assets
996,181
1,000,344
1,004,278
Total tangible common equity
(non-GAAP)
$
1,493,399
$
1,473,137
$
1,310,381
Tangible common book value (TBV) per
share:
Book value per share (GAAP)
$
42.01
$
41.17
$
37.89
Tangible common book value per share
(non-GAAP)
25.20
24.52
21.45
Tangible common equity to tangible
assets:
Equity to asset ratio (GAAP)
12.00
%
12.02
%
11.35
%
Tangible common equity to tangible assets
ratio (non-GAAP)
7.56
7.52
6.76
Non-GAAP Reconciliation - continued
(o):
Three months ended
Six months ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
GAAP net income attributable to WSFS
$
69,273
$
65,761
$
68,678
$
135,034
$
131,082
Plus/(less): Pre-tax adjustments:
Realized/unrealized gain (loss) on equity investments, net, Visa
derivative valuation adjustment, FDIC special assessment, and
corporate development and restructuring expense
(5,789
)
2,076
3,322
(3,713
)
3,858
(Plus)/less: Tax impact of pre-tax
adjustments
1,273
(507
)
(798
)
776
(976
)
Adjusted net income (non-GAAP)
attributable to WSFS
$
64,757
$
67,330
$
71,202
$
132,097
$
133,964
GAAP return on average assets (ROA)
1.34
%
1.28
%
1.36
%
1.31
%
1.31
%
Plus/(less): Pre-tax adjustments:
Realized/unrealized gain (loss) on equity investments, net, Visa
derivative valuation adjustment, FDIC special assessment, and
corporate development and restructuring expense
(0.11
)
0.04
0.07
(0.04
)
0.04
(Plus)/less: Tax impact of pre-tax
adjustments
0.02
(0.01
)
(0.02
)
0.01
(0.01
)
Core ROA (non-GAAP)
1.25
%
1.31
%
1.41
%
1.28
%
1.34
%
Earnings per share (diluted) (GAAP)
$
1.16
$
1.09
$
1.12
$
2.24
$
2.13
Plus/(less): Pre-tax adjustments:
Realized/unrealized gain (loss) on equity investments, net, Visa
derivative valuation adjustment, FDIC special assessment, and
corporate development and restructuring expense
(0.10
)
0.03
0.05
(0.06
)
0.06
(Plus)/less: Tax impact of pre-tax
adjustments
0.02
(0.01
)
(0.01
)
0.01
(0.01
)
Core earnings per share (non-GAAP)
$
1.08
$
1.11
$
1.16
$
2.19
$
2.18
Calculation of return on average
tangible common equity:
GAAP net income attributable to WSFS
$
69,273
$
65,761
$
68,678
$
135,034
$
131,082
Plus: Tax effected amortization of
intangible assets
3,007
2,973
2,884
5,980
5,764
Net tangible income (non-GAAP)
$
72,280
$
68,734
$
71,562
$
141,014
$
136,846
Average stockholders’ equity of WSFS
$
2,446,371
$
2,476,453
$
2,332,147
$
2,461,412
$
2,296,403
Less: Average goodwill and intangible
assets
998,939
1,003,167
1,006,972
1,001,053
1,008,798
Net average tangible common equity
$
1,447,432
$
1,473,286
$
1,325,175
$
1,460,359
$
1,287,605
Return on average tangible common
equity (non-GAAP)
20.08
%
18.76
%
21.66
%
19.42
%
21.43
%
Non-GAAP Reconciliation - continued
(o):
Three months ended
Six months ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Calculation of PPNR:
Net income (GAAP)
$
69,208
$
65,723
$
68,595
$
134,931
$
131,257
Plus: Income tax provision
21,257
21,202
23,035
42,459
43,976
Plus: Provision for credit losses
19,814
15,138
15,830
34,952
44,841
PPNR (non-GAAP)
$
110,279
$
102,063
$
107,460
$
212,342
$
220,074
Plus/(less): Pre-tax adjustments:
Realized/unrealized gain (loss) on equity investments, net, Visa
derivative valuation adjustment, FDIC special assessment, and
corporate development and restructuring expense
(5,789
)
2,076
3,322
(3,713
)
3,858
Core PPNR (non-GAAP)
$
104,490
$
104,139
$
110,782
$
208,629
$
223,932
Calculation of core PPNR to average
assets:
Core PPNR (non-GAAP)
$
104,490
$
104,139
$
110,782
$
208,629
$
223,932
Total average assets
20,786,328
20,695,414
20,221,584
20,740,871
20,112,616
Core PPNR to average assets
2.02
%
2.02
%
2.20
%
2.02
%
2.25
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725084178/en/
Investor Relations Contact: Andrew Basile (302) 504-9857;
abasile@wsfsbank.com Media Contact: Kyle Babcock (215) 864-1795;
kbabcock@wsfsbank.com
WSFS Financial (NASDAQ:WSFS)
Historical Stock Chart
From Oct 2024 to Nov 2024
WSFS Financial (NASDAQ:WSFS)
Historical Stock Chart
From Nov 2023 to Nov 2024
