WSFS Reports 2Q 2024 ROA of 1.34% and EPS of $1.16; Results Reflect Loan, Deposit and Diversified Fee Revenue Growth, Net Interest Margin of 3.85%
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-
|
|
Per share
|
|
Total (pre-
|
|
Per share
|
|
Total (pre-
|
|
Per share
|
|||||||||||
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 |
(4) Income tax impacts are presented on an after-tax basis. |
CEO Commentary
"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,
"On
(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
Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(Dollars in millions) |
|
|
|
|
|
|
|||||||||||||||
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
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
The following table summarizes customer deposit balances and composition at
Customer Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
( Dollars in millions) |
|
|
|
|
|
|
||||||||||||
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
Customer deposits increased by
Our deposit base remains highly diverse, with more than half of our customer deposits, or 51%, coming from our Commercial, Small Business, and
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
(7) Ratio of net loans and leases to total customer deposits. |
Net Interest Income
|
Three Months Ending |
|||||||||||
( Dollars in millions) |
|
|
|
|
|
|
||||||
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
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
(Dollars in millions) |
|
|
|
|
|
||||||
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
Delinquencies of
Nonperforming assets decreased
Total net credit costs were
(8) Problem assets includes all criticized, classified, and nonperforming loans as well as other real estate owned (OREO). |
Core Fee Revenue
Fee businesses, including
Core fee revenue increased
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
Core noninterest expense increased
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
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
WSFS’ total stockholders’ equity increased
WSFS’ tangible common equity(11) increased
At
During 2Q 2024, WSFS repurchased 897,461 shares of common stock for an aggregate of
The Board of Directors approved a quarterly cash dividend of
(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) |
|
|
|
|
|
|
||||
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 |
|
|
|
|
15.5 |
|
|
14.8 |
|
|
14.4 |
|
AUM/AUA(13) |
|
|
84,938 |
|
|
80,464 |
|
|
67,877 |
|
Wealth Management pre-tax income increased
Wealth Management pre-tax income decreased
Net AUM of
(12) Includes intercompany allocation of expense. |
(13)
|
Cash Connect®
Cash Connect
®
is a premier provider of ATM vault cash, smart safe and cash logistics services in
Selected quarterly financial results and metrics are as follows:
(Dollars in millions) |
|
|
|
|
|
|
||||||
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
Net revenue increased
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
About
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 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
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited)
|
|
Three months ended |
|
Six months ended |
||||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
||||||||||
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 |
|
|
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 |
|
|
|
|
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” |
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited) - continued
|
|
Three months ended |
|
Six months ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
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” |
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(Dollars in thousands) |
|
|
|
|
|
|
||||||
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 |
|
|
|
|
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 |
|
|
|
|
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” |
FINANCIAL HIGHLIGHTS (Continued)
AVERAGE BALANCE SHEET (Unaudited)
(Dollars in thousands) |
|
Three months ended |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
Average
|
|
Interest &
|
|
Yield/
|
|
Average
|
|
Interest &
|
|
Yield/
|
|
Average
|
|
Interest &
|
|
Yield/
|
||||||||||||
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 |
|
|
|
|
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” |
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
(Dollars in thousands, except per share data) |
|
Three months ended |
|
Six months ended |
||||||
Stock Information: |
|
|
|
|
|
|
|
|
|
|
Market price of common stock: |
|
|
|
|
|
|
|
|
|
|
High |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
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 |
(h) |
|
Accruing loans which are contractually past due 90 days or more as to principal or interest. Balance includes student loans, which are |
(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. |
FINANCIAL HIGHLIGHTS (Continued)
(Dollars in thousands, except per share data)
(Unaudited)
Non-GAAP Reconciliation (o): |
|
Three months ended |
|
Six months ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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): |
|
|
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: |
|
|
(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 |
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets (GAAP) |
|
$ |
20,744,530 |
|
|
$ |
20,579,248 |
|
|
$ |
20,385,691 |
|
|
|
|
|
||||
Less: |
|
|
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: |
|
|
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 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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, |
|
|
(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, |
|
|
(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, |
|
|
(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 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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, |
|
|
(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:
(302) 504-9857; abasile@wsfsbank.com
Media Contact:
(215) 864-1795; kbabcock@wsfsbank.com
Source: