WSFS Financial Corporation (Nasdaq: WSFS), the parent company of
WSFS Bank, today announced its financial results for the third
quarter of 2024.
Selected financial results and metrics are as follows:
(Dollars in millions, except per share
data)
3Q 2024
2Q 2024
3Q 2023
Net interest income
$
177.5
$
174.4
$
182.6
Fee revenue
90.2
91.6
72.7
Total net revenue
267.7
266.0
255.3
Provision for credit losses
18.4
19.8
18.4
Noninterest expense
163.7
155.8
139.7
Net income attributable to WSFS
64.4
69.3
74.2
Pre-provision net revenue (PPNR)(1)
103.9
110.3
115.6
Earnings per share (EPS) (diluted)
1.08
1.16
1.22
Return on average assets (ROA) (a)
1.22
%
1.34
%
1.45
%
Return on average equity (ROE) (a)
10.0
11.4
12.6
Fee revenue as % of total net revenue
33.6
34.4
28.4
Efficiency ratio
61.1
58.5
54.6
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. For additional detail, refer to the
Non-GAAP reconciliation in the back of this earnings release.
3Q 2024
2Q 2024
3Q 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
$
0.1
$
—
$
5.6
$
0.07
$
(0.8
)
$
(0.01
)
Noninterest expense
—
—
(0.2
)
—
0.1
—
Income tax impacts
—
—
1.3
0.02
(0.2
)
—
(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.
CEO Commentary
Rodger Levenson, Chairman, CEO and President, said, "WSFS
performed very well in the third quarter as reflected in our
operating results of a core ROA(2) of 1.22% and accompanying core
EPS(2) of $1.08.
“Despite muted demand, our results were highlighted by
annualized loan growth of 5% driven by our commercial, consumer,
and residential mortgage portfolios. In addition, deposits grew 3%
on an annualized basis primarily due to seasonal municipal deposit
inflows.
“Our diverse fee businesses also continued to perform solidly.
During the quarter, we completed the conversions of our trust
accounting system and client portal in our Wealth Management
business. These conversions were executed as part of our Bryn Mawr
Trust integration plan and position us for significant future
growth.
“Total net credit costs increased modestly compared to the prior
quarter with a decrease in the provision for credit losses offset
by an increase in reserves for unfunded loan commitments. The
negative migration in credit metrics includes two existing problem
commercial loans (office-related and hotel) which moved to
nonperforming assets in the quarter.
“While the 50 basis point decrease in the Fed Funds Rate in
mid-September had a minimal impact on 3Q results, we have updated
our full year 2024 Outlook in our Earnings Release Supplement to
reflect this change.
“We look forward to finishing 2024 strong and as always I want
to extend my sincere thanks to our 2,300 Associates who work
tirelessly to serve our Customers, Communities and each other every
day.”
(2) As used in this press release, core
ROA and core EPS 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 3Q 2024:
- Core ROA was 1.22%, compared to 1.25% for 2Q 2024.
- Core EPS was $1.08, flat from 2Q 2024.
- Gross loan growth of 1% (5% annualized) from 2Q 2024 driven by
growth in commercial, consumer, and residential mortgage.
- Customer deposits increased 1% (3% annualized) compared to 2Q
2024, driven by seasonal increases in municipal deposits and
continued increases in customer time deposits, partially offset by
expected outflows in Wealth and Trust deposits.
- Net interest margin of 3.78%, compared to 3.85% for 2Q 2024,
reflects higher deposit costs and slightly lower asset yields.
- Core fee revenue (noninterest income)(3) of $90.1 million,
increased $4.1 million, or 5% (not annualized), compared to 2Q
2024, driven by revenue from our partnership with Spring EQ and
growth in Cash Connect®.
- Total net credit costs were $20.1 million, compared to $18.5
million for 2Q 2024. Provision for credit losses was $18.4 million,
a decline of $1.4 million from the prior quarter, which was offset
by increases in loan workout costs and reserves for unfunded
commitments.
- WSFS repurchased 266,672 shares of common stock at an average
price of $51.82 per share, totaling an aggregate of $13.8 million.
Tangible common book value (TBV) per share(3) increased by $3.36 to
$28.56. The Board of Directors approved a quarterly cash dividend
of $0.15 per share.
(3) As used in this press release, core
fee revenue (noninterest income) 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.
Third Quarter 2024 Discussion of Financial Results
Balance Sheet
The following table summarizes loan and lease balances and
composition at September 30, 2024 compared to June 30, 2024 and
September 30, 2023:
Loans and Leases
(Dollars in millions)
September 30, 2024
June 30, 2024
September 30, 2023
Commercial & industrial (C&I)
$
4,661
35
%
$
4,599
35
%
$
4,590
37
%
Commercial mortgage
4,149
32
4,035
31
3,646
29
Construction
806
6
879
7
1,043
8
Commercial small business leases
645
5
644
5
606
5
Total commercial loans and leases
10,261
78
10,157
78
9,885
79
Residential mortgage
965
7
936
7
873
7
Consumer
2,138
16
2,106
17
1,957
15
Gross loans and leases
13,364
101
%
13,199
102
%
12,715
101
%
ACL
(197
)
(1
)
(198
)
(2
)
(176
)
(1
)
Net loans and leases
$
13,167
100
%
$
13,001
100
%
$
12,539
100
%
At September 30, 2024, WSFS’ gross loan and lease portfolio
increased $165.5 million, or 1% (5% annualized), when compared with
June 30, 2024, driven by growth in commercial, consumer, and
residential mortgages. Total commercial loans and leases increased
$104.6 million, with growth from new originations and the
conversion of construction loans, which drove increases in the
C&I and commercial mortgage portfolios.
Consumer loans increased $31.6 million, primarily from Spring EQ
home equity loans, partially offset by a decrease in Upstart loans.
We met the 2024 origination target with Spring EQ and do not expect
additional originations in the fourth quarter. As a result of the
previously announced sale of Spring EQ, we are evaluating volumes
for 2025. Residential mortgages increased $29.2 million due to the
retention of certain loans based on favorable yields and
relationship opportunities.
Gross loans and leases at September 30, 2024 increased $649.2
million, or 5%, when compared with September 30, 2023. The growth
was driven by increases of $503.3 million in commercial mortgage,
$181.0 million in consumer loans (primarily from Spring EQ), $91.9
million in residential mortgage due to the reasons noted above, and
$71.0 million in C&I. These increases were partially offset by
a $237.7 million decrease in construction loans, as they migrated
into commercial mortgages and C&I loans, including
owner-occupied real estate.
The following table summarizes customer deposit balances and
composition at September 30, 2024 compared to June 30, 2024 and
September 30, 2023:
Customer Deposits
(Dollars in millions)
September 30, 2024
June 30, 2024
September 30, 2023
Noninterest demand
$
4,686
29
%
$
4,783
29
%
$
4,913
31
%
Interest-bearing demand
2,931
18
2,812
17
3,028
19
Savings
1,489
9
1,537
9
1,681
10
Money market
5,178
31
5,175
33
4,560
29
Total core deposits
14,284
87
14,307
88
14,182
89
Customer time deposits
2,143
13
1,984
12
1,715
11
Total customer deposits
$
16,427
100
%
$
16,291
100
%
$
15,897
100
%
Total customer deposits increased by $136.0 million, 1% (3%
annualized), when compared with June 30, 2024, primarily driven by
seasonal increases in municipal deposits of $227.7 million and
continued increases in customer time deposits, partially offset by
expected outflows in Wealth and Trust deposits. Average customer
deposits increased 1% (5% annualized), including 12% (annualized)
in noninterest demand, compared to June 30, 2024, primarily from
Wealth and Trust flows.
Total customer deposits increased by $529.8 million, or 3%, from
September 30, 2023, primarily due to increases in money market and
time deposits. The growth was concentrated in the Commercial and
Consumer businesses.
The deposit base remains well-diversified, with 51% of customer
deposits coming from the Commercial, Small Business, and Wealth and
Trust business lines. The loan-to-deposit ratio(4) was 80% at
September 30, 2024, providing continued capacity to fund future
loan growth.
Core deposits were 87% of total customer deposits, with a
weighted average cost of 159bps for the quarter. Small mix changes
continued this quarter with no- and low-cost checking accounts
representing 47% of total customer deposits with a weighted average
cost of 46bps for the quarter.
(4) Ratio of net loans and leases to total
customer deposits.
Net Interest Income
Three Months Ending
(Dollars in millions)
September 30, 2024
June 30, 2024
September 30, 2023
Net interest income before purchase
accretion
$
175.5
$
172.7
$
178.8
Purchase accounting accretion
2.0
1.7
3.8
Net interest income
$
177.5
$
174.4
$
182.6
Net interest margin before purchase
accretion
3.74
%
3.81
%
4.00
%
Purchase accounting accretion
0.04
0.04
0.08
Net interest margin
3.78
%
3.85
%
4.08
%
Net interest income increased $3.1 million, or 2% (not
annualized), compared to 2Q 2024, primarily due to loan growth. Net
interest income decreased $5.1 million, or 3%, compared to 3Q 2023,
primarily driven by continued deposit mix shift and growth in
higher yielding deposit products.
Total loan yields were 7.07%, a decrease of 2bps when compared
to 2Q 2024. Total customer deposit costs were 1.95%, an increase of
6bps, while interest-bearing customer deposit costs were 2.79%, an
increase of 10bps compared to the prior quarter. The deposit cost
increase was driven by growth in higher-priced deposits as we saw
opportunities to deepen existing relationships and attract new
business.
Net interest margin decreased 7bps from 2Q 2024, mainly due to
growth in municipal and higher priced deposits as described above
(3bps), as well as slightly lower asset yields, which were
partially driven by market-value increases on available-for-sale
investment securities (2bps). Net interest margin decreased 30bps
from 3Q 2023, primarily driven by continued deposit mix shift and
growth in higher priced deposit products over the past year.
To mitigate asset sensitivity, WSFS completed a previously
announced $1.5 billion hedging program utilizing floor options.
Asset Quality
The following table summarizes asset quality metrics as of and
for the period ended September 30, 2024 compared to June 30, 2024
and September 30, 2023.
(Dollars in millions)
September 30, 2024
June 30, 2024
September 30, 2023
Problem assets(5)
$
721.5
$
628.5
$
543.4
Delinquencies
147.6
89.0
110.8
Nonperforming assets
91.3
65.4
57.8
Net charge-offs
19.2
14.2
14.3
Total net credit costs (r)
20.1
18.5
18.2
Problem assets to total Tier 1 capital
plus ACL
30.11
%
27.00
%
23.61
%
Classified assets to total Tier 1 capital
plus ACL
21.41
19.93
16.11
Ratio of nonperforming assets to total
assets
0.44
0.32
0.29
Delinquencies to gross loans (n)
1.11
0.68
0.87
Ratio of quarterly net charge-offs to
average gross loans
0.58
0.44
0.45
Ratio of allowance for credit losses to
total loans and leases (q)
1.48
1.51
1.39
Ratio of allowance for credit losses to
nonaccruing loans
219
310
306
See “Notes”
Total net credit costs were $20.1 million in the quarter, an
increase of $1.6 million, compared to $18.5 million in 2Q 2024.
Total net credit costs include a provision for credit losses of
$18.4 million, which declined slightly from 2Q 2024. The increase
in total net credit costs was due to higher reserves for unfunded
commitments related to new loan commitments and the continued
evaluation of the portfolio, as well as higher loan workout
costs.
Nonperforming assets increased $25.9 million, or 12bps of total
assets, compared to June 30, 2024, primarily driven by the
migration of two loans - a $19.2 million C&I loan, in
participation with another bank, to a fund that is invested in
office properties predominantly in east coast suburban markets and
a $14.7 million hotel loan in suburban Philadelphia, partially
offset by the resolution of previously identified nonperforming
assets.
Net charge-offs increased $5.0 million to $19.2 million, or
0.58% (annualized) of average gross loans during the quarter,
mainly due to the previously identified hotel loan. Excluding
Upstart and NewLane, which experienced losses consistent with the
prior quarter, net charge-offs were 31bps of average gross
loans.
Problem assets to total Tier 1 capital plus ACL ratio was
30.11%, an increase of 311bps compared to June 30, 2024, based on
the continued evaluation of the portfolio.
(5) Problem assets includes all
criticized, classified, and nonperforming loans as well as other
real estate owned (OREO).
Delinquencies of $147.6 million, or 111bps of gross loans,
increased $58.6 million, or 43bps, compared to June 30, 2024. This
increase was primarily driven by the previously mentioned hotel
loan and one additional $42.1 million commercial real estate
relationship in which we are working with the sponsor on a path
toward resolution.
The ACL was $197.5 million as of September 30, 2024, a decrease
of $0.8 million from June 30, 2024. The ACL coverage ratio was
1.48%, a decrease of 3bps from June 30, 2024. The decreases in the
ACL and coverage ratio were due to continued runoff on the Upstart
portfolio.
Core Fee Revenue
Fee businesses, including Wealth and Trust, Cash Connect®,
Capital Markets, and Mortgage Banking reflect the investments we
have made to diversify our revenue. Core fee revenue (noninterest
income) of $90.1 million increased $4.1 million, or 5% (not
annualized), compared to $86.0 million from 2Q 2024, primarily
driven by $2.3 million of revenue from our partnership with Spring
EQ (related to the annual earnout from the previously announced
sale), $0.8 million from Cash Connect® due to increases in bailment
and smart safe revenue, and $0.7 million from Bank Owned Life
Insurance.
Core fee revenue increased $16.7 million, or 23%, compared to 3Q
2023. The growth was driven by the Cash Connect®, Wealth
Management, Core Banking, and Mortgage business lines. Growth in
Cash Connect® was driven by bailment Customers added in the fourth
quarter of 2023 and the first half of 2024. Growth in Wealth
Management was driven by growth across all key product lines, with
double digit growth in Institutional Services and The Bryn Mawr
Trust Company of Delaware (BMT of DE).
For 3Q 2024, our core fee revenue ratio(6) was 33.6% compared to
33.0% in 2Q 2024 and 28.6% in 3Q 2023. Fee revenue is a competitive
differentiator providing a well-diversified source of revenue with
further growth opportunities expected.
(6) 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(7)
Core noninterest expense of $163.7 million increased $7.7
million, or 5% (not annualized), compared to 2Q 2024. The increase
included $3.0 million related to changes in unfunded loan
commitment reserves due to new loan commitments and the continued
evaluation of the portfolio, as well as higher loan workout costs.
In addition, salaries and benefits increased by $2.9 million due to
increased performance-based incentive accruals and talent additions
as we continue to invest in the franchise, as well as a $1.4
million increase in external fraud losses.
Core noninterest expense increased $24.1 million, or 17%,
compared to 3Q 2023. The increase was primarily due to $11.7
million in higher salaries and benefits from annual and
performance-based increases and talent additions in key business
lines, as well as $8.5 million from Cash Connect® external funding
costs. Excluding the Cash Connect® external funding costs (which
were offset in revenue), expenses increased by 12% compared to 3Q
2023.
Our core efficiency ratio(7) was 61.1% in 3Q 2024, compared to
59.8% in 2Q 2024 and 54.4% in 3Q 2023.
Income Taxes
We recorded a $21.1 million income tax provision in 3Q 2024,
compared to $21.3 million in 2Q 2024 and $22.9 million in 3Q
2023.
The effective tax rate was 24.7% in 3Q 2024 compared to 23.5% in
2Q 2024 and 23.6% in 3Q 2023. The increase in effective tax rate
for 3Q 2024 compared to 2Q 2024 was primarily driven by higher
state taxes along with higher solar tax credit investment benefits
in the second quarter. The increase in effective tax rate when
compared to 3Q 2023 is attributable to an increase in state taxes.
On a year-to-date basis, the effective tax rate was 24.2% in 2024
compared to 24.6% for the same period in 2023.
(7) 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 September 30,
2024, with WSFS Bank’s Tier 1 leverage ratio of 10.68%, Common
Equity Tier 1 capital ratio and Tier 1 capital ratio of 13.46%, and
Total Risk-based capital ratio of 14.71%.
WSFS’ total stockholders’ equity increased $188.7 million, or 8%
(not annualized), during 3Q 2024. The increase was primarily due to
an increase in accumulated other comprehensive income (AOCI) of
$142.9 million driven by market-value increases on
available-for-sale investment securities, as well as quarterly
earnings of $64.4 million. These increases were partially offset by
capital returns of $22.7 million to stockholders, comprising $13.8
million from share repurchases and $8.9 million from quarterly
dividends.
WSFS’ tangible common equity(8) increased $192.7 million, or 13%
(not annualized), compared to June 30, 2024, primarily due to the
reasons described above and scheduled amortization of intangibles.
WSFS’ common equity to assets ratio increased 81bps to 12.81%
during the quarter, and our tangible common equity to tangible
assets ratio(8) was 8.47% at September 30, 2024, an increase of
91bps, compared to the prior quarter.
At September 30, 2024, book value per share was $45.37, an
increase of $3.36, or 8% (not annualized), from June 30, 2024, and
tangible book value per share was $28.56, an increase of $3.36, or
13% (not annualized), from June 30, 2024. These increases were due
to the reasons described above.
During 3Q 2024, WSFS repurchased 266,672 shares of common stock
for an aggregate of $13.8 million. As of September 30, 2024, WSFS
has 3,685,092 shares, or approximately 6% 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 $101.5 million.
The Board of Directors approved a quarterly cash dividend of
$0.15 per share of common stock. This dividend will be paid on
November 22, 2024 to stockholders of record as of November 8,
2024.
(8) 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)
September 30, 2024
June 30, 2024
September 30, 2023
Net interest income
$
21.6
$
18.4
$
21.1
Provision for (recovery of) credit
losses
—
—
(0.1
)
Fee revenue(9)
37.2
38.2
33.3
Noninterest expense(9)
28.4
28.0
24.5
Pre-tax income
30.4
28.6
30.0
Performance
Metrics
Trust fee revenue (Institutional Services
and BMT of DE)
$
21.5
$
21.8
$
18.5
Private Wealth Management fee revenue
14.7
15.5
14.5
AUM/AUA(10)
87,217
84,938
77,560
Wealth Management pre-tax income increased $1.9 million, or 7%
(not annualized), compared to 2Q 2024. Net interest income
increased $3.2 million, as average trust deposits were higher by
$271.9 million compared to 2Q 2024. Fee revenue decreased $1.0
million from 2Q 2024, primarily due to lower seasonal tax-based
revenue and nonrecurring items, partially offset by growth in
Institutional Services fees. Total noninterest expense increased
$0.3 million, compared to 2Q 2024, mostly due to salaries from
hiring new advisors and performance-based compensation.
Wealth Management pre-tax income increased $0.5 million compared
to 3Q 2023 due to higher fee revenue and net interest income. Net
interest income increased $0.5 million due mostly to higher deposit
balances. Fee revenue increased $4.0 million, or 12%, compared to
3Q 2023, due to increases in assignment and bankruptcy fees in
Institutional Services, increased activity in The Bryn Mawr Trust
Company of Delaware, and higher AUM in Private Wealth Management.
Total noninterest expense increased $3.8 million driven by salary
expenses from hiring new advisors and performance-based
compensation.
Net AUM of $9.3 billion at the end of 3Q 2024 increased $0.3
billion, or 3% compared to 2Q 2024, and increased $1.2 billion, or
15%, compared to 3Q 2023. AUM balances over the period benefited
primarily from positive returns in broader equity markets.
(9) Includes intercompany allocation of
revenue and expense.
(10) 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)
September 30, 2024
June 30, 2024
September 30, 2023
Net revenue(11)
$
27.7
$
27.6
$
18.0
Noninterest expense(12)
26.1
25.6
16.9
Pre-tax income
1.6
2.0
1.1
Performance
Metrics
Average cash managed
$
1,623
$
1,530
$
1,486
Number of serviced non-bank ATMs and smart
safes
42,126
42,524
33,860
Number of WSFS owned and branded ATMs
569
579
592
ROA
1.29
%
1.72
%
0.87
%
Cash Connect® pre-tax income decreased $0.3 million to $1.6
million, due to an increase in non-earning cash (held in vaults)
related to recently onboarded Clients and higher external funding
costs, while net revenue was essentially flat. ROA decreased 43bps
to 1.29%, compared to 1.72% in 2Q 2024, driven by lower net income
(27bps) and a change in funding mix (16bps).
Pre-tax net income increased $0.5 million, or 50%, compared to
3Q 2023, primarily driven by an increase in bailment ATMs year over
year. This increase in bailment units also drove a $9.7 million
increase in net revenue and a $9.1 million increase in noninterest
expense compared to 3Q 2023, as we continued to optimize newly
onboarded customers. ROA increased 42bps compared to 3Q 2023 due to
higher net income.
As we captured market share, total ATMs and smart safes
increased by 8,243, or 24%, compared to 3Q 2023, primarily driven
by an increase in bailment ATMs, partially offset by a decrease in
lower margin reconciliation-only ATMs.
(11) Includes intercompany allocation of
income and net interest income.
(12) Includes intercompany allocation of
expense.
Third Quarter 2024 Earnings Release Conference Call
Management will conduct a conference call to review 3Q 2024
results at 1:00 p.m. Eastern Time (ET) on Friday, October 25, 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 September 30, 2024,
WSFS Financial Corporation had $20.9 billion in assets on its
balance sheet and $87.2 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; 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, Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2024 and June
30, 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
Nine months ended
(Dollars in thousands, except per share
data)
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Interest income:
Interest and fees on loans
$
235,977
$
230,815
$
218,903
$
691,495
$
620,511
Interest on mortgage-backed securities
25,348
25,784
26,654
77,029
81,310
Interest and dividends on investment
securities
2,184
2,183
2,180
6,551
6,599
Other interest income
9,875
6,455
3,402
25,168
10,871
273,384
265,237
251,139
800,243
719,291
Interest expense:
Interest on deposits
80,647
76,693
57,255
230,135
142,501
Interest on Federal Home Loan Bank
advances
1,472
359
167
2,139
5,135
Interest on senior and subordinated
debt
2,446
2,441
2,453
7,336
7,360
Interest on trust preferred borrowings
1,749
1,750
1,764
5,255
4,954
Interest on other borrowings
9,566
9,545
6,898
28,147
12,365
95,880
90,788
68,537
273,012
172,315
Net interest income
177,504
174,449
182,602
527,231
546,976
Provision for credit losses
18,422
19,814
18,414
53,374
63,255
Net interest income after provision for
credit losses
159,082
154,635
164,188
473,857
483,721
Noninterest income:
Credit/debit card and ATM income
24,621
23,875
14,869
68,165
42,660
Investment management and fiduciary
revenue
36,648
37,606
32,720
107,182
95,575
Deposit service charges
6,837
6,496
6,534
19,820
18,850
Mortgage banking activities, net
2,067
2,217
1,254
5,931
3,680
Loan and lease fee income
1,513
1,706
1,621
4,742
4,183
Unrealized loss on equity investment,
net
—
—
(5
)
—
(9
)
Realized gain on sale of equity
investment, net
56
2,130
—
2,186
—
Bank-owned life insurance income
1,540
793
1,697
3,533
3,967
Other income
16,876
16,775
13,978
46,054
33,760
90,158
91,598
72,668
257,613
202,666
Noninterest expense:
Salaries, benefits and other
compensation
86,124
83,249
74,453
245,179
219,669
Occupancy expense
9,595
9,387
9,529
28,461
30,069
Equipment expense
12,076
12,054
10,563
34,822
31,165
Data processing and operations expense
4,985
4,807
4,867
13,452
14,362
Professional fees
3,819
4,781
4,612
13,081
15,169
Marketing expense
2,053
2,020
2,049
5,855
5,930
FDIC expenses
2,882
2,390
2,534
9,254
7,979
Loan workout and other credit costs
1,684
(1,278
)
(189
)
1,477
292
Corporate development expense
46
158
113
412
3,649
Restructuring expense
—
—
—
—
(787
)
Other operating expenses
40,459
38,200
31,158
116,570
86,490
163,723
155,768
139,689
468,563
413,987
Income before taxes
85,517
90,465
97,167
262,907
272,400
Income tax provision
21,108
21,257
22,904
63,567
66,880
Net income
64,409
69,208
74,263
199,340
205,520
Less: Net (loss) income attributable to
noncontrolling interest
(26
)
(65
)
97
(129
)
272
Net income attributable to WSFS
$
64,435
$
69,273
$
74,166
$
199,469
$
205,248
Diluted earnings per share of common
stock:
$
1.08
$
1.16
$
1.22
$
3.33
$
3.34
Weighted average shares of common stock
outstanding for fully diluted EPS
59,393,651
59,958,628
61,039,317
59,956,324
61,367,802
See “Notes”
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS SUMMARY STATEMENTS OF INCOME
(Unaudited) - continued
Three months ended
Nine months ended
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Performance Ratios:
Return on average assets (a)
1.22
%
1.34
%
1.45
%
1.28
%
1.36
%
Return on average equity (a)
9.95
11.39
12.64
10.66
11.89
Return on average tangible common equity
(a)(o)
16.96
20.08
23.19
18.55
22.03
Net interest margin (a)(b)
3.78
3.85
4.08
3.82
4.15
Efficiency ratio (c)
61.08
58.46
54.64
59.61
55.12
Noninterest income as a percentage of
total net revenue (b)
33.64
34.38
28.42
32.78
26.98
See “Notes”
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued) SUMMARY STATEMENTS OF
FINANCIAL CONDITION (Unaudited)
(Dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
Assets:
Cash and due from banks
$
571,798
$
618,446
$
260,200
Cash in non-owned ATMs
414,931
400,482
345,754
Investment securities,
available-for-sale
3,737,119
3,651,913
3,691,541
Investment securities,
held-to-maturity
1,026,305
1,038,854
1,068,871
Other investments
38,662
36,204
39,466
Net loans and leases (e)(f)(l)
13,166,805
13,000,556
12,539,062
Bank owned life insurance
35,658
36,090
101,424
Goodwill and intangibles
992,163
996,181
1,008,472
Other assets
921,768
965,804
986,202
Total assets
$
20,905,209
$
20,744,530
$
20,040,992
Liabilities and
Stockholders’ Equity:
Noninterest-bearing deposits
$
4,685,957
$
4,782,920
$
4,913,517
Interest-bearing deposits
11,741,074
11,508,161
10,983,747
Total customer deposits
16,427,031
16,291,081
15,897,264
Brokered deposits
—
—
89,105
Total deposits
16,427,031
16,291,081
15,986,369
Federal Home Loan Bank advances
43,158
22,306
—
Other borrowings
1,032,003
1,119,949
917,833
Other liabilities
736,002
832,837
901,412
Total liabilities
18,238,194
18,266,173
17,805,614
Stockholders’ equity of WSFS
2,678,264
2,489,580
2,242,795
Noncontrolling interest
(11,249
)
(11,223
)
(7,417
)
Total stockholders' equity
2,667,015
2,478,357
2,235,378
Total liabilities and stockholders'
equity
$
20,905,209
$
20,744,530
$
20,040,992
Capital Ratios:
Equity to asset ratio
12.81
%
12.00
%
11.19
%
Tangible common equity to tangible asset
ratio (o)
8.47
7.56
6.49
Common equity Tier 1 capital (required:
4.5%; well capitalized: 6.5%) (g)
13.46
13.07
13.26
Tier 1 leverage (required: 4.00%;
well-capitalized: 5.00%) (g)
10.68
10.44
10.72
Tier 1 risk-based capital (required:
6.00%; well-capitalized: 8.00%) (g)
13.46
13.07
13.26
Total risk-based capital (required: 8.00%;
well-capitalized: 10.00%) (g)
14.71
14.32
14.43
Asset Quality Indicators:
Nonperforming assets:
Nonaccruing loans (t)
$
90,039
$
64,034
$
57,460
Assets acquired through foreclosure
1,301
1,342
298
Total nonperforming assets
$
91,340
$
65,376
$
57,758
Past due loans (h)
$
31,714
$
9,798
$
14,357
Troubled loans (u)
166,754
133,080
78,186
Allowance for credit losses
197,497
198,260
175,996
Ratio of nonperforming assets to total
assets
0.44
%
0.32
%
0.29
%
Ratio of allowance for credit losses to
total loans and leases (q)
1.48
1.51
1.39
Ratio of allowance for credit losses to
nonaccruing loans
219
310
306
Ratio of quarterly net charge-offs to
average gross loans (a)(e)(i)(n)
0.58
0.44
0.45
Ratio of year-to-date net charge-offs to
average gross loans (a)(e)(i)(n)
0.43
0.35
0.43
See “Notes”
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued) AVERAGE BALANCE
SHEET (Unaudited)
(Dollars in thousands)
Three months ended
September 30, 2024
June 30, 2024
September 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)
$
5,246,721
$
93,594
7.11
%
$
5,115,017
$
91,001
7.17
%
$
5,107,501
$
90,098
7.01
%
Commercial real estate loans (s)
4,952,571
89,516
7.19
4,968,847
88,852
7.19
4,611,968
82,040
7.06
Residential mortgage
924,830
11,916
5.15
892,139
10,995
4.93
841,510
10,698
5.09
Consumer loans
2,112,423
39,909
7.52
2,088,180
39,019
7.52
1,940,418
34,972
7.15
Loans held for sale
50,556
1,042
8.20
42,010
948
9.08
54,072
1,095
8.03
Total loans and leases
13,287,101
235,977
7.07
13,106,193
230,815
7.09
12,555,469
218,903
6.92
Mortgage-backed securities (d)
4,354,462
25,348
2.33
4,335,831
25,784
2.38
4,602,107
26,654
2.32
Investment securities (d)
366,098
2,184
2.62
361,093
2,183
2.70
364,565
2,180
2.64
Other interest-earning assets
709,358
9,875
5.54
469,120
6,455
5.53
251,273
3,402
5.37
Total interest-earning assets
$
18,717,019
$
273,384
5.82
%
$
18,272,237
$
265,237
5.85
%
$
17,773,414
$
251,139
5.61
%
Allowance for credit losses
(199,380
)
(195,557
)
(173,052
)
Cash and due from banks
189,523
308,226
277,780
Cash in non-owned ATMs
387,019
339,430
363,131
Bank owned life insurance
35,689
41,067
101,411
Other noninterest-earning assets
1,931,521
2,020,925
1,922,080
Total assets
$
21,061,391
$
20,786,328
$
20,264,764
Liabilities and stockholders’
equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand
$
2,806,850
$
9,074
1.29
%
$
2,807,761
$
8,107
1.16
%
$
2,955,613
$
7,156
0.96
%
Savings
1,519,457
2,038
0.53
1,553,044
1,774
0.46
1,750,809
1,521
0.34
Money market
5,125,286
46,686
3.62
5,172,682
46,390
3.61
4,499,909
34,639
3.05
Customer time deposits
2,061,526
22,849
4.41
1,937,265
20,422
4.24
1,661,885
12,828
3.06
Total interest-bearing customer
deposits
11,513,119
80,647
2.79
11,470,752
76,693
2.69
10,868,216
56,144
2.05
Brokered deposits
—
—
—
—
—
—
88,594
1,111
4.98
Total interest-bearing deposits
11,513,119
80,647
2.79
11,470,752
76,693
2.69
10,956,810
57,255
2.07
Federal Home Loan Bank advances
108,196
1,472
5.41
25,742
359
5.61
11,576
167
5.72
Trust preferred borrowings
90,753
1,749
7.67
90,704
1,750
7.76
90,557
1,764
7.73
Senior and subordinated debt
218,535
2,446
4.48
218,478
2,441
4.47
218,304
2,453
4.49
Other borrowed funds
816,373
9,566
4.66
816,919
9,545
4.70
604,156
6,898
4.53
Total interest-bearing liabilities
$
12,746,976
$
95,880
2.99
%
$
12,622,595
$
90,788
2.89
%
$
11,881,403
$
68,537
2.29
%
Noninterest-bearing demand deposits
4,979,859
4,835,912
5,248,931
Other noninterest-bearing liabilities
770,572
891,273
813,858
Stockholders’ equity of WSFS
2,575,182
2,446,371
2,327,853
Noncontrolling interest
(11,198
)
(9,823
)
(7,281
)
Total liabilities and equity
$
21,061,391
$
20,786,328
$
20,264,764
Excess of interest-earning assets over
interest-bearing liabilities
$
5,970,043
$
5,649,642
$
5,892,011
Net interest and dividend income
$
177,504
$
174,449
$
182,602
Interest rate spread
2.83
%
2.96
%
3.32
%
Net interest margin
3.78
%
3.85
%
4.08
%
See “Notes”
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued) (Unaudited)
(Dollars in thousands, except per share
data)
Three months ended
Nine months ended
Stock Information:
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Market price of common stock:
High
$58.59
$47.55
$45.40
$58.59
$51.77
Low
45.42
41.33
35.02
40.20
29.59
Close
50.99
47.00
36.50
50.99
36.50
Book value per share of common stock
45.37
42.01
36.93
Tangible common book value (TBV) per share
of common stock (o)
28.56
25.20
20.33
Number of shares of common stock
outstanding (000s)
59,033
59,261
60,728
Other Financial Data:
One-year repricing gap to total assets
(k)
(0.78)%
(0.30)%
0.41%
Weighted average duration of the MBS
portfolio
5.7 years
5.7 years
6.0 years
Unrealized losses on securities available
for sale, net of taxes
$(420,815)
$(549,039)
$(678,413)
Number of Associates (FTEs) (m)
2,316
2,279
2,224
Number of offices (branches, LPO’s,
operations centers, etc.)
114
114
116
Number of WSFS owned and branded ATMs
569
579
592
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
Nine months ended
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net interest income (GAAP)
$
177,504
$
174,449
$
182,602
$
527,231
$
546,976
Core net interest income (non-GAAP)
177,504
174,449
182,602
527,231
546,976
Noninterest income (GAAP)
90,158
91,598
72,668
257,613
202,666
Plus: Unrealized loss on equity
investments, net
—
—
(5
)
—
(9
)
Less: Realized gain on sale of equity
investment, net
56
2,130
—
2,186
—
Less/(plus): Visa derivative valuation
adjustment
—
3,434
(750
)
2,829
(1,855
)
Core fee revenue (non-GAAP)
$
90,102
$
86,034
$
73,423
$
252,598
$
204,530
Core net revenue (non-GAAP)
$
267,606
$
260,483
$
256,025
$
779,829
$
751,506
Core net revenue
(non-GAAP)(tax-equivalent)
$
267,991
$
260,900
$
256,412
$
780,975
$
752,904
Noninterest expense (GAAP)
$
163,723
$
155,768
$
139,689
$
468,563
$
413,987
(Plus)/less: FDIC special assessment
—
(383
)
—
880
—
Less: Corporate development expense
46
158
113
412
3,649
Plus: Restructuring expense
—
—
—
—
(787
)
Core noninterest expense (non-GAAP)
$
163,677
$
155,993
$
139,576
$
467,271
$
411,125
Core efficiency ratio (non-GAAP)
61.1
%
59.8
%
54.4
%
59.8
%
54.6
%
Core fee revenue ratio (non-GAAP) (b)
33.6
%
33.0
%
28.6
%
32.3
%
27.2
%
End of period
September 30, 2024
June 30, 2024
September 30, 2023
Total assets (GAAP)
$
20,905,209
$
20,744,530
$
20,040,992
Less: Goodwill and other intangible
assets
992,163
996,181
1,008,472
Total tangible assets (non-GAAP)
$
19,913,046
$
19,748,349
$
19,032,520
Total stockholders’ equity of WSFS
(GAAP)
$
2,678,264
$
2,489,580
$
2,242,795
Less: Goodwill and other intangible
assets
992,163
996,181
1,008,472
Total tangible common equity
(non-GAAP)
$
1,686,101
$
1,493,399
$
1,234,323
Tangible common book value (TBV) per
share:
Book value per share (GAAP)
$
45.37
$
42.01
$
36.93
Tangible common book value per share
(non-GAAP)
28.56
25.20
20.33
Tangible common equity to tangible
assets:
Equity to asset ratio (GAAP)
12.81
%
12.00
%
11.19
%
Tangible common equity to tangible assets
ratio (non-GAAP)
8.47
7.56
6.49
Non-GAAP Reconciliation - continued
(o):
Three months ended
Nine months ended
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
GAAP net income attributable to WSFS
$
64,435
$
69,273
$
74,166
$
199,469
$
205,248
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
(10
)
(5,789
)
868
(3,723
)
4,726
(Plus)/less: Tax impact of pre-tax
adjustments
2
1,273
(232
)
585
(1,293
)
Adjusted net income (non-GAAP)
attributable to WSFS
$
64,427
$
64,757
$
74,802
$
196,331
$
208,681
GAAP return on average assets (ROA)
1.22
%
1.34
%
1.45
%
1.28
%
1.36
%
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
)
0.02
(0.02
)
0.03
(Plus)/less: Tax impact of pre-tax
adjustments
—
0.02
(0.01
)
—
(0.01
)
Core ROA (non-GAAP)
1.22
%
1.25
%
1.46
%
1.26
%
1.38
%
Earnings per share (diluted) (GAAP)
$
1.08
$
1.16
$
1.22
$
3.33
$
3.34
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
)
0.01
(0.06
)
0.08
(Plus)/less: Tax impact of pre-tax
adjustments
—
0.02
—
—
(0.02
)
Core earnings per share (non-GAAP)
$
1.08
$
1.08
$
1.23
$
3.27
$
3.40
Calculation of return on average
tangible common equity:
GAAP net income attributable to WSFS
$
64,435
$
69,273
$
74,166
$
199,469
$
205,248
Plus: Tax effected amortization of
intangible assets
2,949
3,007
2,984
8,929
8,748
Net tangible income (non-GAAP)
$
67,384
$
72,280
$
77,150
$
208,398
$
213,996
Average stockholders’ equity of WSFS
$
2,575,182
$
2,446,371
$
2,327,853
$
2,499,612
$
2,307,002
Less: Average goodwill and intangible
assets
994,818
998,939
1,007,803
998,960
1,008,463
Net average tangible common equity
$
1,580,364
$
1,447,432
$
1,320,050
$
1,500,652
$
1,298,539
Return on average tangible common
equity (non-GAAP)
16.96
%
20.08
%
23.19
%
18.55
%
22.03
%
Non-GAAP Reconciliation - continued
(o):
Three months ended
Nine months ended
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Calculation of PPNR:
Net income (GAAP)
$
64,409
$
69,208
$
74,263
$
199,340
$
205,520
Plus: Income tax provision
21,108
21,257
22,904
63,567
66,880
Plus: Provision for credit losses
18,422
19,814
18,414
53,374
63,255
PPNR (non-GAAP)
$
103,939
$
110,279
$
115,581
$
316,281
$
335,655
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241024407022/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)
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