WSFS Reports 3Q 2023 EPS of $1.22 and ROA of 1.45%; Solid Loan Growth, NIM of 4.08%, and Fee Revenue Increase of 9%; Continued Strong Liquidity and Capital Levels
- Net interest income increased by $0.8 million compared to the previous quarter
- Core fee revenue reached a record high of $73.4 million, an increase of $6.0 million compared to the previous quarter
- Net loan growth of 3% driven by growth in the commercial portfolio and consumer partnership with Spring EQ
- Total net credit costs were $18.2 million, driven by overall net loan growth and portfolio migration
- WSFS Bank capital ratios remain significantly above 'well-capitalized' levels
- WSFS repurchased 386,900 shares of common stock at an average price of $40.67 per share
- None.
Selected financial results and metrics are as follows:
(Dollars in millions, except per share data) |
|
|
3Q 2023 |
|
|
|
2Q 2023 |
|
|
|
3Q 2022 |
|
Net interest income |
|
$ |
182.6 |
|
|
$ |
181.8 |
|
|
$ |
176.8 |
|
Fee revenue |
|
|
72.7 |
|
|
|
66.9 |
|
|
|
62.7 |
|
Total net revenue |
|
|
255.3 |
|
|
|
248.7 |
|
|
|
239.5 |
|
Provision for credit losses |
|
|
18.4 |
|
|
|
15.8 |
|
|
|
7.5 |
|
Noninterest expense |
|
|
139.7 |
|
|
|
141.3 |
|
|
|
132.9 |
|
Net income attributable to WSFS |
|
|
74.2 |
|
|
|
68.7 |
|
|
|
73.4 |
|
Pre-provision net revenue (PPNR)(1) |
|
|
115.6 |
|
|
|
107.5 |
|
|
|
106.6 |
|
Earnings per share (EPS) (diluted) |
|
|
1.22 |
|
|
|
1.12 |
|
|
|
1.16 |
|
Return on average assets (ROA) (a) |
|
|
1.45 |
% |
|
|
1.36 |
% |
|
|
1.44 |
% |
Return on average equity (ROE) (a) |
|
|
12.6 |
|
|
|
11.8 |
|
|
|
12.4 |
|
Fee revenue as % of total net revenue |
|
|
28.4 |
|
|
|
26.8 |
|
|
|
26.1 |
|
Efficiency ratio |
|
|
54.6 |
|
|
|
56.7 |
|
|
|
55.4 |
|
See “Notes” |
GAAP results for the quarterly periods shown included the following items that are excluded from core results.
|
|
3Q 2023 |
|
2Q 2023 |
|
3Q 2022 |
||||||||||||
(Dollars in millions, except per share data) |
|
Total
|
|
Per share (after-tax) |
|
Total (pre-tax) |
|
Per share (after-tax) |
|
Total (pre-tax) |
|
Per share (after-tax) |
||||||
Visa derivative valuation adjustment(2) |
|
$ |
0.8 |
|
$ |
0.01 |
|
$ |
0.6 |
|
$ |
0.01 |
|
$ |
2.3 |
|
$ |
0.03 |
Corporate development and restructuring expense |
|
|
0.1 |
|
|
— |
|
|
2.8 |
|
|
0.03 |
|
|
2.6 |
|
|
0.03 |
(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) The Visa derivative valuation adjustment relates to our derivative liability established from the sale of 360,000 Visa Class B shares in 2Q 2020. The adjustment represents an expense to increase the liability and is included in Other income on the Summary Statements of Income. |
||||||||||||||||||
CEO Commentary
Rodger Levenson, Chairman, President and CEO, said, "Our 3Q operating results reflect the continued optimization of the significant franchise investment over the past several years. Revenue growth was highlighted by solid quarterly loan growth of
"While the
"During the quarter, we were pleased to announce the expansion of our Wealth Management business in southern
"In addition, WSFS was honored to be voted reader's pick as the Best Bank For Customer Service in 2023 in South Jersey Biz Magazine. This recognition is another tribute to our over 2,200 Associates who live our Mission: We Stand For Service every day."
Highlights for 3Q 2023:
-
Core EPS(3) was
$1.23 -
Core ROA(3) was
1.46% compared to1.52% for 3Q 2022. -
Core PPNR(3) of
$116.4 million 2.28% of average assets(3) compared to$111.4 million 2.18% , respectively, for 3Q 2022. -
Net loan growth of
3% (11% annualized) from 2Q 2023 driven by growth across the commercial portfolio and our consumer partnership with Spring EQ. -
Customer deposits decreased by
$363.3 million 2% (9% annualized) for the quarter, driven by a$306.1 million -
Net interest margin of
4.08% compared to4.11% for 2Q 2023, reflects increasing deposit betas, partially offset by higher loan yields. -
Core fee revenue (noninterest income)(3) was a record
$73.4 million $6.0 million 9% (not annualized), compared to 2Q 2023. -
Total net credit costs were
$18.2 million 1.28% , flat from 2Q 2023. -
WSFS Bank capital ratios remain significantly above "well-capitalized" levels, with total risk-based capital of
14.43% and Common Equity Tier 1 of13.26% . -
WSFS repurchased 386,900 shares of common stock at an average price of
$40.67 $15.7 million $0.15
| (3) As used in this press release, core EPS, core ROA, core PPNR, core PPNR as a percent of average assets, and core fee revenue (noninterest income) 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 2023 Discussion of Financial Results
Balance Sheet
The following table summarizes loan and lease balances and composition at September 30, 2023 compared to June 30, 2023 and September 30, 2022:
Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(Dollars in millions) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|||||||||||||||
Commercial & industrial (C&I) |
|
$ |
4,590 |
|
|
37 |
% |
|
$ |
4,533 |
|
|
37 |
% |
|
$ |
4,445 |
|
|
38 |
% |
Commercial mortgage |
|
|
3,646 |
|
|
29 |
|
|
|
3,553 |
|
|
29 |
|
|
|
3,280 |
|
|
28 |
|
Construction |
|
|
1,043 |
|
|
8 |
|
|
|
955 |
|
|
7 |
|
|
|
1,028 |
|
|
9 |
|
Commercial small business leases |
|
|
606 |
|
|
5 |
|
|
|
590 |
|
|
5 |
|
|
|
535 |
|
|
5 |
|
Total commercial loans and leases |
|
|
9,885 |
|
|
79 |
|
|
|
9,631 |
|
|
78 |
|
|
|
9,288 |
|
|
80 |
|
Residential mortgage |
|
|
873 |
|
|
7 |
|
|
|
847 |
|
|
7 |
|
|
|
802 |
|
|
7 |
|
Consumer |
|
|
1,957 |
|
|
15 |
|
|
|
1,905 |
|
|
16 |
|
|
|
1,677 |
|
|
14 |
|
ACL |
|
|
(176 |
) |
|
(1 |
) |
|
|
(172 |
) |
|
(1 |
) |
|
|
(146 |
) |
|
(1 |
) |
Net loans and leases |
|
$ |
12,539 |
|
|
100 |
% |
|
$ |
12,211 |
|
|
100 |
% |
|
$ |
11,621 |
|
|
100 |
% |
At September 30, 2023, WSFS’ net loan and lease portfolio increased
In line with our 2022-2024 Strategic Plan, the C&I portfolio (including owner-occupied real estate) continued to be our largest portfolio at
Net loans and leases at September 30, 2023 increased
The following table summarizes customer deposit balances and composition at September 30, 2023 compared to June 30, 2023 and September 30, 2022:
Customer Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Dollars in millions) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
||||||||||||
Noninterest demand |
|
$ |
4,913 |
|
31 |
% |
|
$ |
5,462 |
|
34 |
% |
|
$ |
6,171 |
|
37 |
% |
Interest-bearing demand |
|
|
3,028 |
|
19 |
|
|
|
2,969 |
|
18 |
|
|
|
3,462 |
|
21 |
|
Savings |
|
|
1,681 |
|
10 |
|
|
|
1,815 |
|
11 |
|
|
|
2,266 |
|
14 |
|
Money market |
|
|
4,560 |
|
29 |
|
|
|
4,375 |
|
27 |
|
|
|
3,740 |
|
22 |
|
Total core deposits |
|
|
14,182 |
|
89 |
|
|
|
14,621 |
|
90 |
|
|
|
15,639 |
|
94 |
|
Customer time deposits |
|
|
1,715 |
|
11 |
|
|
|
1,640 |
|
10 |
|
|
|
1,063 |
|
6 |
|
Total customer deposits |
|
$ |
15,897 |
|
100 |
% |
|
$ |
16,261 |
|
100 |
% |
|
$ |
16,702 |
|
100 |
% |
Total customer deposits decreased
Customer deposits decreased by
Our deposit base remains highly diverse, with more than half of our customer deposits, or
Core deposits were a strong
| (4) Ratio of net loans and leases to total customer deposits. |
| (5) Protected deposits include collateralized and FDIC insured deposits. |
Net Interest Income
|
Three Months Ending |
|||||||||||
(Dollars in millions) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
||||||
Net interest income before purchase accretion |
|
$ |
178.8 |
|
|
$ |
178.5 |
|
|
$ |
172.7 |
|
Purchase accounting accretion |
|
|
3.8 |
|
|
|
3.3 |
|
|
|
4.1 |
|
Net interest income |
|
$ |
182.6 |
|
|
$ |
181.8 |
|
|
$ |
176.8 |
|
|
|
|
|
|
|
|
||||||
Net interest margin before purchase accretion |
|
|
4.00 |
% |
|
|
4.03 |
% |
|
|
3.90 |
% |
Purchase accounting accretion |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Net interest margin |
|
|
4.08 |
% |
|
|
4.11 |
% |
|
|
3.99 |
% |
Net interest income increased
Net interest margin decreased 3bps from 2Q 2023, primarily due to increasing deposit betas, partially offset by higher loan yields. Net interest margin increased 9bps from 3Q 2022, primarily due to the benefits of our asset-sensitive balance sheet.
Total loan yields were
Asset Quality
The following table summarizes asset quality metrics as of and for the period ended September 30, 2023 compared to June 30, 2023 and September 30, 2022.
(Dollars in millions) |
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
||||||
Problem assets (6) |
$ |
543.4 |
|
|
$ |
465.3 |
|
|
$ |
472.9 |
|
Nonperforming assets |
|
57.8 |
|
|
|
33.5 |
|
|
|
37.3 |
|
Delinquencies |
|
110.8 |
|
|
|
72.8 |
|
|
|
69.3 |
|
Net charge-offs |
|
14.3 |
|
|
|
13.1 |
|
|
|
3.2 |
|
Total net credit costs (recoveries) (r) |
|
18.2 |
|
|
|
16.4 |
|
|
|
8.5 |
|
Problem assets to total Tier 1 capital plus ACL |
|
23.61 |
% |
|
|
20.14 |
% |
|
|
23.17 |
% |
Classified assets to total Tier 1 capital plus ACL |
|
16.11 |
|
|
|
15.37 |
|
|
|
15.14 |
|
Ratio of nonperforming assets to total assets |
|
0.29 |
|
|
|
0.16 |
|
|
|
0.19 |
|
Ratio of nonperforming assets (excluding accruing TDRs) to total assets |
|
— |
|
|
|
— |
|
|
|
0.10 |
|
Delinquencies to gross loans |
|
0.87 |
|
|
|
0.59 |
|
|
|
0.59 |
|
Ratio of quarterly net charge-offs to average gross loans |
|
0.45 |
|
|
|
0.43 |
|
|
|
0.11 |
|
Ratio of allowance for credit losses to total loans and leases (q) |
|
1.28 |
|
|
|
1.28 |
|
|
|
1.14 |
|
Ratio of allowance for credit losses to nonaccruing loans |
|
306 |
|
|
|
521 |
|
|
|
755 |
|
See “Notes” |
|||||||||||
While overall asset quality metrics remained near historically favorable levels, leading indicators reflected the impact of the slowing economy. Problem assets to total Tier 1 capital plus ACL ratio increased to
Nonperforming assets increased
Net charge-offs were
Total net credit costs were
| (6) Problem assets includes all criticized, classified, and nonperforming loans as well as other real estate owned (OREO). |
Core Fee Revenue
Fees continue to be resilient and well-diversified among various sources, including Wealth Management, Cash Connect®, traditional and other banking fees, capital markets and mortgage banking. Core fee revenue (noninterest income) of
Core fee revenue increased
For 3Q 2023, our core fee revenue ratio(7) was
(7) 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(8)
Core noninterest expense of
Core noninterest expense increased
Our core efficiency ratio(8) was
Income Taxes
We recorded a
The effective tax rate was
| (8) 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, 2023 with WSFS Bank’s Tier 1 leverage ratio of
WSFS’ total stockholders’ equity decreased
WSFS’ tangible common equity(9) decreased
At September 30, 2023, book value per share was
During 3Q 2023, WSFS repurchased 386,900 shares of common stock for an aggregate of
The Board of Directors approved a quarterly cash dividend of
| (9) As used in this press release, tangible common equity, tangible common equity to tangible assets ratio and tangible common book value per share 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 through multiple integrated businesses.
Selected quarterly performance results and metrics are as follows:
(Dollars in millions) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|||||
Net interest income |
|
$ |
21.1 |
|
|
$ |
21.5 |
|
|
$ |
15.1 |
(Recovery of) provision for credit losses |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
— |
Fee revenue |
|
|
33.3 |
|
|
|
32.9 |
|
|
|
29.9 |
Noninterest expense(10) |
|
|
24.5 |
|
|
|
24.3 |
|
|
|
24.2 |
Pre-tax income |
|
|
30.0 |
|
|
|
30.5 |
|
|
|
20.9 |
Performance Metrics |
|
|
|
|
|
|
|||||
Trust fee revenue (Institutional Services and BMT of DE) |
|
$ |
18.5 |
|
|
$ |
17.5 |
|
|
$ |
16.1 |
Private wealth management fee revenue |
|
|
14.5 |
|
|
|
14.4 |
|
|
|
13.0 |
AUM/AUA(11) |
|
|
77,560 |
|
|
|
67,877 |
|
|
|
61,393 |
Wealth Management pre-tax income decreased
Wealth Management pre-tax income increased
Net AUM of
| (10) Includes intercompany allocation of expense and excludes provision for credit losses. |
| (11) 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
Selected quarterly financial results and metrics are as follows:
(Dollars in millions) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
||||||
Net revenue(12) |
|
$ |
18.0 |
|
|
$ |
17.0 |
|
|
$ |
12.8 |
|
Noninterest expense(13) |
|
|
16.9 |
|
|
|
16.0 |
|
|
|
10.8 |
|
Pre-tax income |
|
|
1.1 |
|
|
|
0.9 |
|
|
|
2.0 |
|
Performance Metrics |
|
|
|
|
|
|
||||||
Cash managed |
|
$ |
1,517 |
|
|
$ |
1,632 |
|
|
$ |
1,706 |
|
Number of serviced non-bank ATMs and smart safes |
|
|
33,860 |
|
|
|
34,325 |
|
|
|
34,285 |
|
Number of WSFS owned and branded ATMs |
|
|
592 |
|
|
|
679 |
|
|
|
611 |
|
ROA |
|
|
0.87 |
% |
|
|
0.72 |
% |
|
|
0.99 |
% |
Cash Connect® net revenue increased
Pre-tax income increased
Net Revenue increased
Pre-tax income decreased
At the end of 3Q 2023, Cash Connect® had approximately
| (12) Includes intercompany allocation of income and net interest income. |
| (13) Includes intercompany allocation of expense. |
Third Quarter 2023 Earnings Release Conference Call
Management will conduct a conference call to review 3Q 2023 results at 1:00 p.m. Eastern Time (ET) on Tuesday, October 24, 2023. 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
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 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, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|||||||||
Interest income: |
|||||||||||||||||||
Interest and fees on loans |
|
$ |
218,903 |
|
|
$ |
207,884 |
|
|
$ |
152,887 |
|
|
$ |
620,511 |
|
|
$ |
401,110 |
Interest on mortgage-backed securities |
|
|
26,654 |
|
|
|
27,130 |
|
|
|
28,338 |
|
|
|
81,310 |
|
|
|
78,828 |
Interest and dividends on investment securities |
|
|
2,180 |
|
|
|
2,182 |
|
|
|
1,981 |
|
|
|
6,599 |
|
|
|
4,642 |
Other interest income |
|
|
3,402 |
|
|
|
4,573 |
|
|
|
3,359 |
|
|
|
10,871 |
|
|
|
6,142 |
|
|
|
251,139 |
|
|
|
241,769 |
|
|
|
186,565 |
|
|
|
719,291 |
|
|
|
490,722 |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest on deposits |
|
|
57,255 |
|
|
|
50,054 |
|
|
|
6,643 |
|
|
|
142,501 |
|
|
|
13,537 |
Interest on Federal Home Loan Bank advances |
|
|
167 |
|
|
|
1,597 |
|
|
|
42 |
|
|
|
5,135 |
|
|
|
42 |
Interest on senior and subordinated debt |
|
|
2,453 |
|
|
|
2,334 |
|
|
|
2,061 |
|
|
|
7,360 |
|
|
|
5,939 |
Interest on trust preferred borrowings |
|
|
1,764 |
|
|
|
1,635 |
|
|
|
951 |
|
|
|
4,954 |
|
|
|
2,146 |
Interest on other borrowings |
|
|
6,898 |
|
|
|
4,307 |
|
|
|
37 |
|
|
|
12,365 |
|
|
|
54 |
|
|
|
68,537 |
|
|
|
59,927 |
|
|
|
9,734 |
|
|
|
172,315 |
|
|
|
21,718 |
Net interest income |
|
|
182,602 |
|
|
|
181,842 |
|
|
|
176,831 |
|
|
|
546,976 |
|
|
|
469,004 |
Provision for credit losses |
|
|
18,414 |
|
|
|
15,830 |
|
|
|
7,454 |
|
|
|
63,255 |
|
|
|
34,693 |
Net interest income after provision for credit losses |
|
|
164,188 |
|
|
|
166,012 |
|
|
|
169,377 |
|
|
|
483,721 |
|
|
|
434,311 |
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Credit/debit card and ATM income |
|
|
14,869 |
|
|
|
14,430 |
|
|
|
10,993 |
|
|
|
42,660 |
|
|
|
27,446 |
Investment management and fiduciary revenue |
|
|
32,720 |
|
|
|
32,379 |
|
|
|
29,504 |
|
|
|
95,575 |
|
|
|
90,877 |
Deposit service charges |
|
|
6,534 |
|
|
|
6,277 |
|
|
|
6,262 |
|
|
|
18,850 |
|
|
|
18,158 |
Mortgage banking activities, net |
|
|
1,254 |
|
|
|
1,304 |
|
|
|
1,420 |
|
|
|
3,680 |
|
|
|
6,529 |
Loan and lease fee income |
|
|
1,621 |
|
|
|
1,190 |
|
|
|
1,425 |
|
|
|
4,183 |
|
|
|
4,457 |
Unrealized (loss) gain on equity investment, net |
|
|
(5 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9 |
) |
|
|
5,988 |
Bank-owned life insurance income |
|
|
1,697 |
|
|
|
760 |
|
|
|
195 |
|
|
|
3,967 |
|
|
|
674 |
Other income |
|
|
13,978 |
|
|
|
10,531 |
|
|
|
12,852 |
|
|
|
33,760 |
|
|
|
41,125 |
|
|
|
72,668 |
|
|
|
66,871 |
|
|
|
62,651 |
|
|
|
202,666 |
|
|
|
195,254 |
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Salaries, benefits and other compensation |
|
|
74,453 |
|
|
|
72,367 |
|
|
|
72,294 |
|
|
|
219,669 |
|
|
|
211,413 |
Occupancy expense |
|
|
9,529 |
|
|
|
10,132 |
|
|
|
9,699 |
|
|
|
30,069 |
|
|
|
30,393 |
Equipment expense |
|
|
10,563 |
|
|
|
10,810 |
|
|
|
9,913 |
|
|
|
31,165 |
|
|
|
30,674 |
Data processing and operations expense |
|
|
4,867 |
|
|
|
4,771 |
|
|
|
5,362 |
|
|
|
14,362 |
|
|
|
16,009 |
Professional fees |
|
|
4,612 |
|
|
|
6,118 |
|
|
|
3,561 |
|
|
|
15,169 |
|
|
|
12,285 |
Marketing expense |
|
|
2,049 |
|
|
|
2,165 |
|
|
|
2,082 |
|
|
|
5,930 |
|
|
|
4,985 |
FDIC expenses |
|
|
2,534 |
|
|
|
2,863 |
|
|
|
1,540 |
|
|
|
7,979 |
|
|
|
4,399 |
Loan workout and other credit costs |
|
|
(189 |
) |
|
|
536 |
|
|
|
1,001 |
|
|
|
292 |
|
|
|
1,103 |
Corporate development expense |
|
|
113 |
|
|
|
2,796 |
|
|
|
1,248 |
|
|
|
3,649 |
|
|
|
41,679 |
Restructuring expense |
|
|
— |
|
|
|
(26 |
) |
|
|
1,344 |
|
|
|
(787 |
) |
|
|
22,792 |
Other operating expenses |
|
|
31,158 |
|
|
|
28,721 |
|
|
|
24,873 |
|
|
|
86,490 |
|
|
|
65,691 |
|
|
|
139,689 |
|
|
|
141,253 |
|
|
|
132,917 |
|
|
|
413,987 |
|
|
|
441,423 |
Income before taxes |
|
|
97,167 |
|
|
|
91,630 |
|
|
|
99,111 |
|
|
|
272,400 |
|
|
|
188,142 |
Income tax provision |
|
|
22,904 |
|
|
|
23,035 |
|
|
|
25,767 |
|
|
|
66,880 |
|
|
|
49,929 |
Net income |
|
|
74,263 |
|
|
|
68,595 |
|
|
|
73,344 |
|
|
|
205,520 |
|
|
|
138,213 |
Less: Net income (loss) attributable to noncontrolling interest |
|
|
97 |
|
|
|
(83 |
) |
|
|
(38 |
) |
|
|
272 |
|
|
|
287 |
Net income attributable to WSFS |
|
$ |
74,166 |
|
|
$ |
68,678 |
|
|
$ |
73,382 |
|
|
$ |
205,248 |
|
|
$ |
137,926 |
Diluted earnings per share of common stock: |
|
$ |
1.22 |
|
|
$ |
1.12 |
|
|
$ |
1.16 |
|
|
$ |
3.34 |
|
|
$ |
2.15 |
Weighted average shares of common stock outstanding for fully diluted EPS |
|
|
61,039,317 |
|
|
|
61,414,273 |
|
|
|
63,227,983 |
|
|
|
61,367,802 |
|
|
|
64,282,992 |
See “Notes” |
|||||||||||||||||||
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited) - continued
|
|
Three months ended |
|
Nine months ended |
|||||||||||
|
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|||||
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets (a) |
|
1.45 |
% |
|
1.36 |
% |
|
1.44 |
% |
|
1.36 |
% |
|
0.89 |
% |
Return on average equity (a) |
|
12.64 |
|
|
11.81 |
|
|
12.40 |
|
|
11.89 |
|
|
7.41 |
|
Return on average tangible common equity (a)(o) |
|
23.19 |
|
|
21.66 |
|
|
22.78 |
|
|
22.03 |
|
|
13.27 |
|
Net interest margin (a)(b) |
|
4.08 |
|
|
4.11 |
|
|
3.99 |
|
|
4.15 |
|
|
3.46 |
|
Efficiency ratio (c) |
|
54.64 |
|
|
56.71 |
|
|
55.37 |
|
|
55.12 |
|
|
66.33 |
|
Noninterest income as a percentage of total net revenue (b) |
|
28.42 |
|
|
26.85 |
|
|
26.10 |
|
|
26.98 |
|
|
29.34 |
|
See “Notes” |
|||||||||||||||
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(Dollars in thousands) |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
||||||
Assets: |
|
|
|
|
|
|
||||||
Cash and due from banks |
|
$ |
260,200 |
|
|
$ |
723,034 |
|
|
$ |
443,104 |
|
Cash in non-owned ATMs |
|
|
345,754 |
|
|
|
386,176 |
|
|
|
582,784 |
|
Investment securities, available-for-sale |
|
|
3,691,541 |
|
|
|
3,954,918 |
|
|
|
4,153,615 |
|
Investment securities, held-to-maturity |
|
|
1,068,871 |
|
|
|
1,079,768 |
|
|
|
1,121,895 |
|
Other investments |
|
|
39,466 |
|
|
|
40,309 |
|
|
|
54,742 |
|
Net loans and leases (e)(f)(l) |
|
|
12,539,062 |
|
|
|
12,211,112 |
|
|
|
11,620,866 |
|
Bank owned life insurance |
|
|
101,424 |
|
|
|
101,108 |
|
|
|
101,061 |
|
Goodwill and intangibles |
|
|
1,008,472 |
|
|
|
1,004,278 |
|
|
|
1,016,413 |
|
Other assets |
|
|
986,202 |
|
|
|
884,988 |
|
|
|
890,907 |
|
Total assets |
|
$ |
20,040,992 |
|
|
$ |
20,385,691 |
|
|
$ |
19,985,387 |
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
||||||
Noninterest-bearing deposits |
|
$ |
4,913,517 |
|
|
$ |
5,462,461 |
|
|
$ |
6,170,776 |
|
Interest-bearing deposits |
|
|
10,983,747 |
|
|
|
10,798,060 |
|
|
|
10,531,250 |
|
Total customer deposits |
|
|
15,897,264 |
|
|
|
16,260,521 |
|
|
|
16,702,026 |
|
Brokered deposits |
|
|
89,105 |
|
|
|
167,435 |
|
|
|
23,182 |
|
Total deposits |
|
|
15,986,369 |
|
|
|
16,427,956 |
|
|
|
16,725,208 |
|
Other borrowings |
|
|
917,833 |
|
|
|
899,493 |
|
|
|
374,367 |
|
Other liabilities |
|
|
901,412 |
|
|
|
750,858 |
|
|
|
784,981 |
|
Total liabilities |
|
|
17,805,614 |
|
|
|
18,078,307 |
|
|
|
17,884,556 |
|
Stockholders’ equity of WSFS |
|
|
2,242,795 |
|
|
|
2,314,659 |
|
|
|
2,103,593 |
|
Noncontrolling interest |
|
|
(7,417 |
) |
|
|
(7,275 |
) |
|
|
(2,762 |
) |
Total stockholders' equity |
|
|
2,235,378 |
|
|
|
2,307,384 |
|
|
|
2,100,831 |
|
Total liabilities and stockholders' equity |
|
$ |
20,040,992 |
|
|
$ |
20,385,691 |
|
|
$ |
19,985,387 |
|
Capital Ratios: |
|
|
|
|
|
|
||||||
Equity to asset ratio |
|
|
11.19 |
% |
|
|
11.35 |
% |
|
|
10.53 |
% |
Tangible common equity to tangible asset ratio (o) |
|
|
6.49 |
|
|
|
6.76 |
|
|
|
5.73 |
|
Common equity Tier 1 capital (required: |
|
|
13.26 |
|
|
|
13.68 |
|
|
|
12.38 |
|
Tier 1 leverage (required: |
|
|
10.72 |
|
|
|
10.83 |
|
|
|
9.76 |
|
Tier 1 risk-based capital (required: |
|
|
13.26 |
|
|
|
13.68 |
|
|
|
12.38 |
|
Total risk-based capital (required: |
|
|
14.43 |
|
|
|
14.85 |
|
|
|
13.34 |
|
Asset Quality Indicators: |
|
|
|
|
|
|
||||||
Nonperforming assets: |
|
|
|
|
|
|
||||||
Nonaccruing loans (t) |
|
$ |
57,460 |
|
|
$ |
33,003 |
|
|
$ |
19,369 |
|
Troubled debt restructurings (accruing) |
|
|
— |
|
|
|
— |
|
|
|
17,108 |
|
Assets acquired through foreclosure |
|
|
298 |
|
|
|
527 |
|
|
|
840 |
|
Total nonperforming assets |
|
$ |
57,758 |
|
|
$ |
33,530 |
|
|
$ |
37,317 |
|
Past due loans (h) |
|
$ |
14,357 |
|
|
$ |
13,571 |
|
|
$ |
24,754 |
|
Troubled loans |
|
|
78,186 |
|
|
|
51,129 |
|
|
|
— |
|
Allowance for credit losses |
|
|
175,996 |
|
|
|
171,877 |
|
|
|
146,205 |
|
Ratio of nonperforming assets to total assets |
|
|
0.29 |
% |
|
|
0.16 |
% |
|
|
0.19 |
% |
Ratio of nonperforming assets (excluding accruing TDRs) to total assets |
|
|
— |
|
|
|
— |
|
|
|
0.10 |
|
Ratio of allowance for credit losses to total loans and leases (q) |
|
|
1.28 |
|
|
|
1.28 |
|
|
|
1.14 |
|
Ratio of allowance for credit losses to nonaccruing loans |
|
|
306 |
|
|
|
521 |
|
|
|
755 |
|
Ratio of quarterly net charge-offs to average gross loans (a)(e)(i)(n) |
|
|
0.45 |
|
|
|
0.43 |
|
|
|
0.11 |
|
Ratio of year-to-date net charge-offs to average gross loans (a)(e)(i)(n) |
|
|
0.43 |
|
|
|
0.41 |
|
|
|
0.11 |
|
See “Notes” |
||||||||||||
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
AVERAGE BALANCE SHEET (Unaudited)
(Dollars in thousands) |
|
Three months ended |
||||||||||||||||||||||||||||
|
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
||||||||||||||||||||||||
|
|
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) |
|
$ |
5,107,501 |
|
|
$ |
90,098 |
|
7.01 |
% |
|
$ |
5,051,292 |
|
|
$ |
86,073 |
|
6.85 |
% |
|
$ |
4,895,972 |
|
|
$ |
67,060 |
|
5.45 |
% |
Commercial real estate loans (s) |
|
|
4,611,968 |
|
|
|
82,040 |
|
7.06 |
|
|
|
4,484,162 |
|
|
|
78,018 |
|
6.98 |
|
|
|
4,262,599 |
|
|
|
53,096 |
|
4.94 |
|
Residential mortgage |
|
|
841,510 |
|
|
|
10,698 |
|
5.09 |
|
|
|
804,390 |
|
|
|
9,384 |
|
4.67 |
|
|
|
769,151 |
|
|
|
8,379 |
|
4.36 |
|
Consumer loans |
|
|
1,940,418 |
|
|
|
34,972 |
|
7.15 |
|
|
|
1,907,294 |
|
|
|
33,508 |
|
7.05 |
|
|
|
1,594,673 |
|
|
|
23,384 |
|
5.82 |
|
Loans held for sale |
|
|
54,072 |
|
|
|
1,095 |
|
8.03 |
|
|
|
45,766 |
|
|
|
901 |
|
7.90 |
|
|
|
66,103 |
|
|
|
968 |
|
5.81 |
|
Total loans and leases |
|
|
12,555,469 |
|
|
|
218,903 |
|
6.92 |
|
|
|
12,292,904 |
|
|
|
207,884 |
|
6.79 |
|
|
|
11,588,498 |
|
|
|
152,887 |
|
5.24 |
|
Mortgage-backed securities (d) |
|
|
4,602,107 |
|
|
|
26,654 |
|
2.32 |
|
|
|
4,766,207 |
|
|
|
27,130 |
|
2.28 |
|
|
|
5,243,169 |
|
|
|
28,338 |
|
2.16 |
|
Investment securities (d) |
|
|
364,565 |
|
|
|
2,180 |
|
2.64 |
|
|
|
370,530 |
|
|
|
2,182 |
|
2.62 |
|
|
|
361,113 |
|
|
|
1,981 |
|
2.57 |
|
Other interest-earning assets |
|
|
251,273 |
|
|
|
3,402 |
|
5.37 |
|
|
|
345,791 |
|
|
|
4,573 |
|
5.30 |
|
|
|
460,124 |
|
|
|
3,359 |
|
2.90 |
|
Total interest-earning assets |
|
$ |
17,773,414 |
|
|
$ |
251,139 |
|
5.61 |
% |
|
$ |
17,775,432 |
|
|
$ |
241,769 |
|
5.46 |
% |
|
$ |
17,652,904 |
|
|
$ |
186,565 |
|
4.21 |
% |
Allowance for credit losses |
|
|
(173,052 |
) |
|
|
|
|
|
|
(170,968 |
) |
|
|
|
|
|
|
(143,943 |
) |
|
|
|
|
||||||
Cash and due from banks |
|
|
277,780 |
|
|
|
|
|
|
|
255,590 |
|
|
|
|
|
|
|
242,734 |
|
|
|
|
|
||||||
Cash in non-owned ATMs |
|
|
363,131 |
|
|
|
|
|
|
|
387,889 |
|
|
|
|
|
|
|
603,780 |
|
|
|
|
|
||||||
Bank owned life insurance |
|
|
101,411 |
|
|
|
|
|
|
|
101,031 |
|
|
|
|
|
|
|
100,863 |
|
|
|
|
|
||||||
Other noninterest-earning assets |
|
|
1,922,080 |
|
|
|
|
|
|
|
1,872,610 |
|
|
|
|
|
|
|
1,779,411 |
|
|
|
|
|
||||||
Total assets |
|
$ |
20,264,764 |
|
|
|
|
|
|
$ |
20,221,584 |
|
|
|
|
|
|
$ |
20,235,749 |
|
|
|
|
|
||||||
Liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing demand |
|
$ |
2,955,613 |
|
|
$ |
7,156 |
|
0.96 |
% |
|
$ |
3,039,257 |
|
|
$ |
6,525 |
|
0.86 |
% |
|
$ |
3,370,158 |
|
|
$ |
2,179 |
|
0.26 |
% |
Savings |
|
|
1,750,809 |
|
|
|
1,521 |
|
0.34 |
|
|
|
1,873,572 |
|
|
|
1,342 |
|
0.29 |
|
|
|
2,287,227 |
|
|
|
185 |
|
0.03 |
|
Money market |
|
|
4,499,909 |
|
|
|
34,639 |
|
3.05 |
|
|
|
4,137,867 |
|
|
|
27,898 |
|
2.70 |
|
|
|
3,833,113 |
|
|
|
2,907 |
|
0.30 |
|
Customer time deposits |
|
|
1,661,885 |
|
|
|
12,828 |
|
3.06 |
|
|
|
1,578,615 |
|
|
|
10,597 |
|
2.69 |
|
|
|
1,083,290 |
|
|
|
1,230 |
|
0.45 |
|
Total interest-bearing customer deposits |
|
|
10,868,216 |
|
|
|
56,144 |
|
2.05 |
|
|
|
10,629,311 |
|
|
|
46,362 |
|
1.75 |
|
|
|
10,573,788 |
|
|
|
6,501 |
|
0.24 |
|
Brokered deposits |
|
|
88,594 |
|
|
|
1,111 |
|
4.98 |
|
|
|
307,515 |
|
|
|
3,692 |
|
4.82 |
|
|
|
24,184 |
|
|
|
142 |
|
2.33 |
|
Total interest-bearing deposits |
|
|
10,956,810 |
|
|
|
57,255 |
|
2.07 |
|
|
|
10,936,826 |
|
|
|
50,054 |
|
1.84 |
|
|
|
10,597,972 |
|
|
|
6,643 |
|
0.25 |
|
Federal Home Loan Bank advances |
|
|
11,576 |
|
|
|
167 |
|
5.72 |
|
|
|
123,297 |
|
|
|
1,597 |
|
5.20 |
|
|
|
4,979 |
|
|
|
42 |
|
3.35 |
|
Trust preferred borrowings |
|
|
90,557 |
|
|
|
1,764 |
|
7.73 |
|
|
|
90,511 |
|
|
|
1,635 |
|
7.25 |
|
|
|
90,361 |
|
|
|
951 |
|
4.18 |
|
Senior and subordinated debt |
|
|
218,304 |
|
|
|
2,453 |
|
4.49 |
|
|
|
218,247 |
|
|
|
2,334 |
|
4.28 |
|
|
|
248,332 |
|
|
|
2,061 |
|
3.32 |
|
Other borrowed funds |
|
|
604,156 |
|
|
|
6,898 |
|
4.53 |
|
|
|
390,576 |
|
|
|
4,307 |
|
4.42 |
|
|
|
39,745 |
|
|
|
37 |
|
0.37 |
|
Total interest-bearing liabilities |
|
$ |
11,881,403 |
|
|
$ |
68,537 |
|
2.29 |
% |
|
$ |
11,759,457 |
|
|
$ |
59,927 |
|
2.04 |
% |
|
$ |
10,981,389 |
|
|
$ |
9,734 |
|
0.35 |
% |
Noninterest-bearing demand deposits |
|
|
5,248,931 |
|
|
|
|
|
|
|
5,458,676 |
|
|
|
|
|
|
|
6,319,755 |
|
|
|
|
|
||||||
Other noninterest-bearing liabilities |
|
|
813,858 |
|
|
|
|
|
|
|
674,300 |
|
|
|
|
|
|
|
589,817 |
|
|
|
|
|
||||||
Stockholders’ equity of WSFS |
|
|
2,327,853 |
|
|
|
|
|
|
|
2,332,147 |
|
|
|
|
|
|
|
2,347,178 |
|
|
|
|
|
||||||
Noncontrolling interest |
|
|
(7,281 |
) |
|
|
|
|
|
|
(2,996 |
) |
|
|
|
|
|
|
(2,390 |
) |
|
|
|
|
||||||
Total liabilities and equity |
|
$ |
20,264,764 |
|
|
|
|
|
|
$ |
20,221,584 |
|
|
|
|
|
|
$ |
20,235,749 |
|
|
|
|
|
||||||
Excess of interest-earning assets over interest-bearing liabilities |
|
$ |
5,892,011 |
|
|
|
|
|
|
$ |
6,015,975 |
|
|
|
|
|
|
$ |
6,671,515 |
|
|
|
|
|
||||||
Net interest and dividend income |
|
|
|
$ |
182,602 |
|
|
|
|
|
$ |
181,842 |
|
|
|
|
|
$ |
176,831 |
|
|
|||||||||
Interest rate spread |
|
|
|
|
|
3.32 |
% |
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
3.86 |
% |
|||||||||
Net interest margin |
|
|
|
|
|
4.08 |
% |
|
|
|
|
|
4.11 |
% |
|
|
|
|
|
3.99 |
% |
|||||||||
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, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Market price of common stock: |
|
|
|
|
|
|
|
|
|
|
High |
|
|
|
|
|
|
|
|
|
|
Low |
|
35.02 |
|
29.59 |
|
37.40 |
|
29.59 |
|
37.03 |
Close |
|
36.50 |
|
37.72 |
|
46.46 |
|
36.50 |
|
46.46 |
Book value per share of common stock |
|
36.93 |
|
37.89 |
|
33.96 |
|
|
|
|
Tangible common book value per share of common stock (o) |
|
20.33 |
|
21.45 |
|
17.55 |
|
|
|
|
Number of shares of common stock outstanding (000s) |
|
60,728 |
|
61,093 |
|
61,949 |
|
|
|
|
Other Financial Data: |
|
|
|
|
|
|
|
|
|
|
One-year repricing gap to total assets (k) |
|
|
|
|
|
|
|
|
|
|
Weighted average duration of the MBS portfolio |
|
6.0 years |
|
5.8 years |
|
6.0 years |
|
|
|
|
Unrealized losses on securities available for sale, net of taxes |
|
|
|
|
|
|
|
|
|
|
Number of Associates (FTEs) (m) |
|
2,224 |
|
2,219 |
|
2,150 |
|
|
|
|
Number of offices (branches, LPO’s, operations centers, etc.) |
|
116 |
|
114 |
|
119 |
|
|
|
|
Number of WSFS owned and branded ATMs |
|
592 |
|
679 |
|
611 |
|
|
|
|
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 |
|
(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, leases and held-to-maturity securities. |
|
(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 beginning in 2023 and nonaccruing troubled debt restructurings prior to 2023. |
|
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, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
||||||||||
Net interest income (GAAP) |
|
$ |
182,602 |
|
|
$ |
181,842 |
|
|
$ |
176,831 |
|
|
$ |
546,976 |
|
|
$ |
469,004 |
|
Core net interest income (non-GAAP) |
|
|
182,602 |
|
|
|
181,842 |
|
|
|
176,831 |
|
|
|
546,976 |
|
|
|
469,004 |
|
Noninterest income (GAAP) |
|
|
72,668 |
|
|
|
66,871 |
|
|
|
62,651 |
|
|
|
202,666 |
|
|
|
195,254 |
|
(Plus)/less: Unrealized (loss) gain on equity investments, net |
|
|
(5 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9 |
) |
|
|
5,988 |
|
Plus: Visa derivative valuation adjustment |
|
|
(750 |
) |
|
|
(552 |
) |
|
|
(2,285 |
) |
|
|
(1,855 |
) |
|
|
(2,285 |
) |
Core fee revenue (non-GAAP) |
|
$ |
73,423 |
|
|
$ |
67,423 |
|
|
$ |
64,936 |
|
|
$ |
204,530 |
|
|
$ |
191,551 |
|
Core net revenue (non-GAAP) |
|
$ |
256,025 |
|
|
$ |
249,265 |
|
|
$ |
241,767 |
|
|
$ |
751,506 |
|
|
$ |
660,555 |
|
Core net revenue (non-GAAP)(tax-equivalent) |
|
$ |
256,412 |
|
|
$ |
249,633 |
|
|
$ |
242,327 |
|
|
$ |
752,904 |
|
|
$ |
661,771 |
|
Noninterest expense (GAAP) |
|
$ |
139,689 |
|
|
$ |
141,253 |
|
|
$ |
132,917 |
|
|
$ |
413,987 |
|
|
$ |
441,423 |
|
Less: Corporate development expense |
|
|
113 |
|
|
|
2,796 |
|
|
|
1,248 |
|
|
|
3,649 |
|
|
|
41,679 |
|
(Plus)/less: Restructuring expense |
|
|
— |
|
|
|
(26 |
) |
|
|
1,344 |
|
|
|
(787 |
) |
|
|
22,792 |
|
Core noninterest expense (non-GAAP) |
|
$ |
139,576 |
|
|
$ |
138,483 |
|
|
$ |
130,325 |
|
|
$ |
411,125 |
|
|
$ |
376,952 |
|
Core efficiency ratio (non-GAAP) |
|
|
54.4 |
% |
|
|
55.5 |
% |
|
|
53.8 |
% |
|
|
54.6 |
% |
|
|
57.0 |
% |
Core fee revenue ratio (non-GAAP) (b) |
|
|
28.6 |
% |
|
|
27.0 |
% |
|
|
26.8 |
% |
|
|
27.2 |
% |
|
|
28.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
End of period |
|
|
|
|
||||||||||||||
|
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
|
|
|
||||||||||
Total assets (GAAP) |
|
$ |
20,040,992 |
|
|
$ |
20,385,691 |
|
|
$ |
19,985,387 |
|
|
|
|
|
||||
Less: Goodwill and other intangible assets |
|
|
1,008,472 |
|
|
|
1,004,278 |
|
|
|
1,016,413 |
|
|
|
|
|
||||
Total tangible assets (non-GAAP) |
|
$ |
19,032,520 |
|
|
$ |
19,381,413 |
|
|
$ |
18,968,974 |
|
|
|
|
|
||||
Total stockholders’ equity of WSFS (GAAP) |
|
$ |
2,242,795 |
|
|
$ |
2,314,659 |
|
|
$ |
2,103,593 |
|
|
|
|
|
||||
Less: Goodwill and other intangible assets |
|
|
1,008,472 |
|
|
|
1,004,278 |
|
|
|
1,016,413 |
|
|
|
|
|
||||
Total tangible common equity (non-GAAP) |
|
$ |
1,234,323 |
|
|
$ |
1,310,381 |
|
|
$ |
1,087,180 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common book value per share: |
|
|
|
|
|
|
|
|
||||||||||||
Book value per share (GAAP) |
|
$ |
36.93 |
|
|
$ |
37.89 |
|
|
$ |
33.96 |
|
|
|
|
|
||||
Tangible common book value per share (non-GAAP) |
|
|
20.33 |
|
|
|
21.45 |
|
|
|
17.55 |
|
|
|
|
|
||||
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
||||||||||||
Equity to asset ratio (GAAP) |
|
|
11.19 |
% |
|
|
11.35 |
% |
|
|
10.53 |
% |
|
|
|
|
||||
Tangible common equity to tangible assets ratio (non-GAAP) |
|
|
6.49 |
|
|
|
6.76 |
|
|
|
5.73 |
|
|
|
|
|
||||
Non-GAAP Reconciliation - continued (o): |
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
||||||||||
GAAP net income attributable to WSFS |
|
$ |
74,166 |
|
|
$ |
68,678 |
|
|
$ |
73,382 |
|
|
$ |
205,248 |
|
|
$ |
137,926 |
|
Plus/(less): Pre-tax adjustments: Unrealized (loss)/gain on equity investments, net, Visa derivative valuation adjustment, and corporate development and restructuring expense |
|
|
868 |
|
|
|
3,322 |
|
|
|
4,877 |
|
|
|
4,726 |
|
|
|
60,768 |
|
(Plus)/less: Tax impact of pre-tax adjustments |
|
|
(232 |
) |
|
|
(798 |
) |
|
|
(750 |
) |
|
|
(1,293 |
) |
|
|
(13,294 |
) |
Adjusted net income (non-GAAP) attributable to WSFS |
|
$ |
74,802 |
|
|
$ |
71,202 |
|
|
$ |
77,509 |
|
|
$ |
208,681 |
|
|
$ |
185,400 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP return on average assets (ROA) |
|
|
1.45 |
% |
|
|
1.36 |
% |
|
|
1.44 |
% |
|
|
1.36 |
% |
|
|
0.89 |
% |
Plus/(less): Pre-tax adjustments: Unrealized (loss)/gain on equity investments, net, Visa derivative valuation adjustment, and corporate development and restructuring expense |
|
|
0.02 |
|
|
|
0.07 |
|
|
|
0.10 |
|
|
|
0.03 |
|
|
|
0.39 |
|
(Plus)/less: Tax impact of pre-tax adjustments |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.08 |
) |
Core ROA (non-GAAP) |
|
|
1.46 |
% |
|
|
1.41 |
% |
|
|
1.52 |
% |
|
|
1.38 |
% |
|
|
1.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share (diluted) (GAAP) |
|
$ |
1.22 |
|
|
$ |
1.12 |
|
|
$ |
1.16 |
|
|
$ |
3.34 |
|
|
$ |
2.15 |
|
Plus/(less): Pre-tax adjustments: Unrealized (loss)/gain on equity investments, net, Visa derivative valuation adjustment, and corporate development and restructuring expense |
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.95 |
|
(Plus)/less: Tax impact of pre-tax adjustments |
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.22 |
) |
Core earnings per share (non-GAAP) |
|
$ |
1.23 |
|
|
$ |
1.16 |
|
|
$ |
1.23 |
|
|
$ |
3.40 |
|
|
$ |
2.88 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Calculation of return on average tangible common equity: |
|
|
|
|
|
|
|
|
||||||||||||
GAAP net income attributable to WSFS |
|
$ |
74,166 |
|
|
$ |
68,678 |
|
|
$ |
73,382 |
|
|
$ |
205,248 |
|
|
$ |
137,926 |
|
Plus: Tax effected amortization of intangible assets |
|
|
2,984 |
|
|
|
2,884 |
|
|
|
2,906 |
|
|
|
8,748 |
|
|
|
8,827 |
|
Net tangible income (non-GAAP) |
|
$ |
77,150 |
|
|
$ |
71,562 |
|
|
$ |
76,288 |
|
|
$ |
213,996 |
|
|
$ |
146,753 |
|
Average stockholders’ equity of WSFS |
|
$ |
2,327,853 |
|
|
$ |
2,332,147 |
|
|
$ |
2,347,178 |
|
|
$ |
2,307,002 |
|
|
$ |
2,489,860 |
|
Less: Average goodwill and intangible assets |
|
|
1,007,803 |
|
|
|
1,006,972 |
|
|
|
1,018,592 |
|
|
|
1,008,463 |
|
|
|
1,011,306 |
|
Net average tangible common equity |
|
$ |
1,320,050 |
|
|
$ |
1,325,175 |
|
|
$ |
1,328,586 |
|
|
$ |
1,298,539 |
|
|
$ |
1,478,554 |
|
Return on average tangible common equity (non-GAAP) |
|
|
23.19 |
% |
|
|
21.66 |
% |
|
|
22.78 |
% |
|
|
22.03 |
% |
|
|
13.27 |
% |
Non-GAAP Reconciliation - continued (o): |
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
||||||||||
Calculation of PPNR: |
||||||||||||||||||||
Net income (GAAP) |
|
$ |
74,263 |
|
|
$ |
68,595 |
|
|
$ |
73,344 |
|
|
$ |
205,520 |
|
|
$ |
138,213 |
|
Plus: Income tax provision |
|
|
22,904 |
|
|
|
23,035 |
|
|
|
25,767 |
|
|
|
66,880 |
|
|
|
49,929 |
|
Plus: Provision for credit losses |
|
|
18,414 |
|
|
|
15,830 |
|
|
|
7,454 |
|
|
|
63,255 |
|
|
|
34,693 |
|
PPNR (non-GAAP) |
|
$ |
115,581 |
|
|
$ |
107,460 |
|
|
$ |
106,565 |
|
|
$ |
335,655 |
|
|
$ |
222,835 |
|
Plus/(less): Pre-tax adjustments: Unrealized (loss)/gain on equity investments, net, Visa derivative valuation adjustment, and corporate development and restructuring expense |
|
|
868 |
|
|
|
3,322 |
|
|
|
4,877 |
|
|
|
4,726 |
|
|
|
60,768 |
|
Core PPNR (non-GAAP) |
|
$ |
116,449 |
|
|
$ |
110,782 |
|
|
$ |
111,442 |
|
|
$ |
340,381 |
|
|
$ |
283,603 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Calculation of core PPNR to average assets: |
||||||||||||||||||||
Core PPNR (non-GAAP) |
|
$ |
116,449 |
|
|
$ |
110,782 |
|
|
$ |
111,442 |
|
|
$ |
340,381 |
|
|
$ |
283,603 |
|
Total average assets |
|
|
20,264,764 |
|
|
|
20,221,584 |
|
|
|
20,235,749 |
|
|
|
20,163,889 |
|
|
|
20,661,638 |
|
Core PPNR to average assets |
|
|
2.28 |
% |
|
|
2.20 |
% |
|
|
2.18 |
% |
|
|
2.26 |
% |
|
|
1.84 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231023730959/en/
Investor Relations Contact: Andrew Basile
(302) 504-9857; abasile@wsfsbank.com
Media Contact: Rebecca Acevedo
(215) 253-5566; racevedo@wsfsbank.com
Source: WSFS Financial Corporation
FAQ
What is the net interest income for WSFS Financial Corporation in Q3 2023?
What is the core fee revenue for WSFS Financial Corporation in Q3 2023?
What is the net loan growth for WSFS Financial Corporation in Q3 2023?
What are the total net credit costs for WSFS Financial Corporation in Q3 2023?
What are the capital ratios for WSFS Bank?
Did WSFS Financial Corporation repurchase any shares of common stock?
