WSFS Reports 3Q 2024 ROA of 1.22% and EPS of $1.08; Results Reflect Continued Loan, Deposit, and Fee Revenue Growth
WSFS Financial reported its Q3 2024 financial results with an ROA of 1.22% and EPS of $1.08. The quarter showed 5% annualized loan growth across commercial, consumer, and residential mortgage portfolios, while deposits grew 3% annualized. Net interest income increased $3.1 million (2%) from Q2 2024 to $177.5 million, though decreased 3% year-over-year. Core fee revenue reached $90.1 million, up 5% from Q2 2024. Total net credit costs were $20.1 million, with nonperforming assets increasing $25.9 million primarily due to two loans - a $19.2 million C&I loan and a $14.7 million hotel loan.
WSFS Financial ha riportato i risultati finanziari del terzo trimestre 2024 con un ROA dell'1,22% e un EPS di $1,08. Il trimestre ha mostrato una crescita annualizzata dei prestiti del 5% nei portafogli commerciali, al consumo e dei mutui residenziali, mentre i depositi sono cresciuti del 3% annualizzato. Il reddito netto da interessi è aumentato di $3,1 milioni (2%) rispetto al secondo trimestre 2024, raggiungendo i $177,5 milioni, anche se è diminuito del 3% su base annua. Il reddito core da commissioni ha raggiunto i $90,1 milioni, in aumento del 5% rispetto al secondo trimestre 2024. I costi netti totali per il credito sono stati di $20,1 milioni, con un aumento degli attivi non performanti di $25,9 milioni principalmente a causa di due prestiti: un prestito C&I di $19,2 milioni e un prestito per un hotel di $14,7 milioni.
WSFS Financial informó sus resultados financieros del tercer trimestre de 2024 con un ROA del 1,22% y un EPS de $1,08. El trimestre mostró un crecimiento anualizado de préstamos del 5% en carteras comerciales, de consumo y de hipotecas residenciales, mientras que los depósitos crecieron un 3% anualizado. Los ingresos netos por intereses aumentaron $3,1 millones (2%) desde el segundo trimestre de 2024, alcanzando $177,5 millones, aunque disminuyeron un 3% interanual. Los ingresos por comisiones básicos alcanzaron los $90,1 millones, un 5% más que en el segundo trimestre de 2024. Los costos netos totales de crédito fueron de $20,1 millones, con un aumento de $25,9 millones en activos no productivos, principalmente debido a dos préstamos: un préstamo C&I de $19,2 millones y un préstamo hotelero de $14,7 millones.
WSFS Financial은 2024년 3분기 재무 결과를 보고하였으며, ROA는 1.22%, EPS는 $1.08입니다. 이번 분기에는 상업, 소비자 및 주택 담보 대출 포트폴리오에서 연환산 대출 성장률이 5%로 나타났으며, 예금은 3% 연환산 성장했습니다. 순이자 수익은 2024년 2분기 대비 $3.1 백만(2%) 증가하여 $177.5 백만에 달했지만, 전년 대비 3% 감소했습니다. 핵심 수수료 수익은 2024년 2분기 대비 5% 증가한 $90.1 백만에 도달했습니다. 총 순신용 비용은 $20.1 백만이었으며, 수행 불능 자산은 주로 $19.2 백만의 C&I 대출과 $14.7 백만의 호텔 대출로 인해 $25.9 백만 증가했습니다.
WSFS Financial a rapporté ses résultats financiers pour le 3ème trimestre 2024 avec un ROA de 1,22% et un EPS de 1,08 $. Le trimestre a affiché une croissance annualisée des prêts de 5% dans les portefeuilles commerciaux, de consommation et de prêts hypothécaires résidentiels, tandis que les dépôts ont augmenté de 3% en annualisé. Les revenus d'intérêts nets ont augmenté de 3,1 millions de dollars (2%) par rapport au 2ème trimestre 2024, atteignant 177,5 millions de dollars, bien qu'ils aient diminué de 3% d'une année sur l'autre. Les revenus de frais principaux ont atteint 90,1 millions de dollars, en hausse de 5% par rapport au 2ème trimestre 2024. Le coût net total du crédit s'élevait à 20,1 millions de dollars, avec une augmentation des actifs non performants de 25,9 millions de dollars, principalement en raison de deux prêts - un prêt C&I de 19,2 millions de dollars et un prêt hôtelier de 14,7 millions de dollars.
WSFS Financial hat die Finanzzahlen für das 3. Quartal 2024 veröffentlicht, mit einem ROA von 1,22% und einem EPS von $1,08. Das Quartal zeigte ein jährliches Kreditwachstum von 5% in den Portfolios für Gewerbe-, Verbraucherkredite und Wohnhypotheken, während die Einlagen um 3% jährlich wuchsen. Die Nettozinserträge stiegen um $3,1 Millionen (2%) von Q2 2024 auf $177,5 Millionen, obwohl sie im Vergleich zum Vorjahr um 3% sanken. Die Kerneinnahmen aus Gebühren erreichten $90,1 Millionen, was einem Anstieg von 5% gegenüber Q2 2024 entspricht. Die gesamten Nettokreditausgaben betrugen $20,1 Millionen, wobei die notleidenden Vermögenswerte um $25,9 Millionen stiegen, hauptsächlich aufgrund von zwei Krediten - einem C&I-Kredit über $19,2 Millionen und einem Hotelkredit über $14,7 Millionen.
- 5% annualized loan growth across multiple portfolios
- 3% annualized deposit growth
- Net interest income increased $3.1 million (2%) quarter-over-quarter
- Core fee revenue grew 5% to $90.1 million from Q2 2024
- Net interest income decreased 3% year-over-year
- Nonperforming assets increased $25.9 million
- Net charge-offs increased $5.0 million to $19.2 million
- Core efficiency ratio worsened to 61.1% from 54.4% year-over-year
Insights
The Q3 2024 results show mixed performance with some concerning trends. Net income decreased to
Key concerns include rising nonperforming assets, which increased
Positives include
Credit quality metrics show notable deterioration. Problem assets increased to
The migration of a
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
“Despite muted demand, our results were highlighted by annualized loan growth of
“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 to1.25% for 2Q 2024.
-
Core EPS was
, flat from 2Q 2024.$1.08
-
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 to3.85% for 2Q 2024, reflects higher deposit costs and slightly lower asset yields.
-
Core fee revenue (noninterest income)(3) of
, increased$90.1 million , or$4.1 million 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
, compared to$20.1 million for 2Q 2024. Provision for credit losses was$18.5 million , a decline of$18.4 million from the prior quarter, which was offset by increases in loan workout costs and reserves for unfunded commitments.$1.4 million
-
WSFS repurchased 266,672 shares of common stock at an average price of
per share, totaling an aggregate of$51.82 . Tangible common book value (TBV) per share(3) increased by$13.8 million to$3.36 . The Board of Directors approved a quarterly cash dividend of$28.56 per share.$0.15
(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
Consumer loans increased
Gross loans and leases at September 30, 2024 increased
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
Total customer deposits increased by
The deposit base remains well-diversified, with
Core deposits were
(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
Total loan yields were
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
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
Nonperforming assets increased
Net charge-offs increased
Problem assets to total Tier 1 capital plus ACL ratio was
(5) Problem assets includes all criticized, classified, and nonperforming loans as well as other real estate owned (OREO). |
Delinquencies of
The ACL was
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
Core fee revenue increased
For 3Q 2024, our core fee revenue ratio(6) was
(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
Core noninterest expense increased
Our core efficiency ratio(7) was
Income Taxes
We recorded a
The effective tax rate was
(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
WSFS’ total stockholders’ equity increased
WSFS’ tangible common equity(8) increased
At September 30, 2024, book value per share was
During 3Q 2024, WSFS repurchased 266,672 shares of common stock for an aggregate of
The Board of Directors approved a quarterly cash dividend of
(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
Wealth Management pre-tax income increased
Net AUM of
(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
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
Pre-tax net income increased
As we captured market share, total ATMs and smart safes increased by 8,243, or
(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
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
|
||||||||||||||||||||
|
|
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
|
|||||||||||||||
|
|
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
|
||||||||||||
(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: |
|
|
13.46 |
|
|
|
13.07 |
|
|
|
13.26 |
|
Tier 1 leverage (required: |
|
|
10.68 |
|
|
|
10.44 |
|
|
|
10.72 |
|
Tier 1 risk-based capital (required: |
|
|
13.46 |
|
|
|
13.07 |
|
|
|
13.26 |
|
Total risk-based capital (required: |
|
|
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
|
||||||||||||||||||||||||||||||
(Dollars in thousands) |
|
Three months ended |
||||||||||||||||||||||||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
||||||||||||||||||||||||
|
|
Average
|
|
Interest &
|
|
Yield/
|
|
Average
|
|
Interest &
|
|
Yield/
|
|
Average
|
|
Interest &
|
|
Yield/
|
||||||||||||
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
|
||||||||||
(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 |
|
|
|
|
|
|
|
|
|
|
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)% |
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
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 |
(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
|
||||||||||||||||||||
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
Source: WSFS Financial Corporation
FAQ
What was WSFS's earnings per share (EPS) in Q3 2024?
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