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     101  0 Kommentare WSFS Reports 1Q 2024 ROA of 1.28% and EPS of $1.09; Annualized Loan Growth of 7%; Reflects Balance Sheet Strength and Diverse Business Model

    WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today announced its financial results for the first quarter of 2024.

    Selected financial results and metrics are as follows:

    (Dollars in millions, except per share data)

     

     

    1Q 2024

     

     

     

    4Q 2023

     

     

     

    1Q 2023

     

    Net interest income

     

    $

    175.3

     

     

    $

    178.1

     

     

    $

    182.5

     

    Fee revenue

     

     

    75.9

     

     

     

    87.2

     

     

     

    63.1

     

    Total net revenue

     

     

    251.1

     

     

     

    265.3

     

     

     

    245.7

     

    Provision for credit losses

     

     

    15.1

     

     

     

    24.8

     

     

     

    29.0

     

    Noninterest expense

     

     

    149.1

     

     

     

    147.6

     

     

     

    133.0

     

    Net income attributable to WSFS

     

     

    65.8

     

     

     

    63.9

     

     

     

    62.4

     

    Pre-provision net revenue (PPNR)(1)

     

     

    102.1

     

     

     

    117.7

     

     

     

    112.6

     

    Earnings per share (EPS) (diluted)

     

     

    1.09

     

     

     

    1.05

     

     

     

    1.01

     

    Return on average assets (ROA) (a)

     

     

    1.28

    %

     

     

    1.25

    %

     

     

    1.27

    %

    Return on average equity (ROE) (a)

     

     

    10.7

     

     

     

    11.1

     

     

     

    11.2

     

    Fee revenue as % of total net revenue

     

     

    30.2

     

     

     

    32.8

     

     

     

    25.6

     

    Efficiency ratio

     

     

    59.3

     

     

     

    55.6

     

     

     

    54.0

     

    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. Refer to the "Non-GAAP Reconciliation" at the end of the press release for further detail.

     

     

    1Q 2024

     

    4Q 2023

     

    1Q 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

     

    $

    (0.6

    )

     

    $

    (0.01

    )

     

    $

    9.2

     

    $

    0.11

     

    $

    (0.6

    )

     

    $

    (0.01

    )

    Noninterest expense

     

     

    1.5

     

     

     

    0.02

     

     

     

    7.9

     

     

    0.09

     

     

     

     

     

     

    Income tax(2)

     

     

    (0.5

    )

     

     

    (0.01

    )

     

     

    7.1

     

     

    0.12

     

     

    (0.1

    )

     

     

     

    (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) Income tax impacts are presented on an after-tax basis.

    CEO Commentary

    Rodger Levenson, Chairman, CEO and President, said, "Despite a challenging operating environment, we are pleased to report first quarter earnings of a core EPS(3) of $1.11 and accompanying core ROA(3) of 1.31%. Our results were highlighted by annualized loan growth of 7% across both Commercial and Consumer business lines and continued solid, diversified core fee revenue(3) of $76.5 million. Deposit levels remained essentially flat excluding the reduction of corporate trust deposits, which can vary from quarter to quarter, and the net interest margin of 3.84% reflects continued competitive market conditions.

    "Overall asset quality metrics remained stable and included reductions in both NPAs and net charge-offs. In light of the continued uncertain economic and interest rate environment, we remain very focused on prudently strengthening our balance sheet. This includes ongoing proactive credit risk management and a continued build of our ACL reserves which stood at 1.48% of total loans and leases at quarter end. Bank capital levels remain strong with CET1 at 14.00% and total risk based capital at 15.25% and above "well-capitalized" including the full impact of AOCI.

    "During the quarter, we were honored to be named a recipient of both the Gallup Exceptional Workplaces for the eighth time since 2016 and Forbes America's Best Banks 2024. These recognitions are a direct result of our over 2,200 associates who continue to live our mission of 'We Stand for Service'."

    (3) As used in this press release, core EPS, core ROA and core fee revenue are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

    Highlights for 1Q 2024:

    • Core EPS was $1.11 compared to $1.15 for 4Q 2023.
    • Core ROA was 1.31% compared to 1.36% for 4Q 2023.
    • Gross loan growth of 2% (7% annualized) from 4Q 2023 driven primarily by growth across the commercial portfolio and our consumer partnership with Spring EQ (home equity loans).
    • Customer deposits decreased by $235.2 million, or 1% (6% annualized) for the quarter, primarily driven by a $207.4 million decrease in expected trust deposit activity and $81.9 million from a short-term commercial deposit.
    • Core fee revenue (noninterest income) of $76.5 million, a decrease of $1.5 million, or 2% (not annualized), compared to 4Q 2023, primarily due to lower income from our equity position in Spring EQ, which was sold in 4Q 2023.
    • Net interest margin of 3.84% compared to 3.99% for 4Q 2023, reflects lagging increases in deposit pricing following rate hikes in 2023.
    • Total net credit costs were $16.2 million, down from $25.4 million for 4Q 2023 due to lower provision on our NewLane and Upstart portfolios.
    • WSFS Bank capital ratios remain significantly above "well-capitalized" levels, with total risk-based capital of 15.25% and Common Equity Tier 1 of 14.00%.
    • WSFS repurchased 492,368 shares of common stock at an average price of $42.62 per share, totaling an aggregate of $21.0 million. The Board of Directors also approved a quarterly cash dividend of $0.15 per share.
    • Tangible common book value (TBV) per share(4) increased by $0.19 to $24.52
    • Recorded a $1.3 million expense for the FDIC Special Assessment as a result of the FDIC's revised estimated losses related to the closures of certain banks in 2023.

    (4) As used in this press release, TBV per share 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.

    First Quarter 2024 Discussion of Financial Results

    Balance Sheet

    The following table summarizes loan and lease balances and composition at March 31, 2024 compared to December 31, 2023 and March 31, 2023:

    Loans and Leases

     

     

     

     

     

     

     

     

     

     

     

     

    (Dollars in millions)

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Commercial & industrial (C&I)

     

    $

    4,489

     

     

    35

    %

     

    $

    4,443

     

     

    35

    %

     

    $

    4,443

     

     

    37

    %

    Commercial mortgage

     

     

    3,877

     

     

    30

     

     

     

    3,801

     

     

    30

     

     

     

    3,473

     

     

    29

     

    Construction

     

     

    1,056

     

     

    8

     

     

     

    1,036

     

     

    8

     

     

     

    1,024

     

     

    8

     

    Commercial small business leases

     

     

    634

     

     

    5

     

     

     

    624

     

     

    5

     

     

     

    577

     

     

    5

     

    Total commercial loans and leases

     

     

    10,056

     

     

    78

     

     

     

    9,904

     

     

    78

     

     

     

    9,517

     

     

    79

     

    Residential mortgage

     

     

    888

     

     

    7

     

     

     

    882

     

     

    7

     

     

     

    801

     

     

    6

     

    Consumer

     

     

    2,066

     

     

    17

     

     

     

    2,012

     

     

    16

     

     

     

    1,868

     

     

    16

     

    Gross loans and leases

     

     

    13,010

     

     

    102

    %

     

     

    12,798

     

     

    101

    %

     

     

    12,186

     

     

    101

    %

    ACL

     

     

    (193

    )

     

    (2

    )

     

     

    (186

    )

     

    (1

    )

     

     

    (169

    )

     

    (1

    )

    Net loans and leases

     

    $

    12,817

     

     

    100

    %

     

    $

    12,612

     

     

    100

    %

     

    $

    12,017

     

     

    100

    %

    At March 31, 2024, WSFS’ gross loan and lease portfolio increased $212.0 million, or 2% (7% annualized), when compared with December 31, 2023 primarily due to increases of $75.7 million in commercial mortgage, $53.7 million in consumer loans (primarily from Spring EQ home equity loans) and $45.5 million in C&I.

    The C&I portfolio (including owner-occupied real estate) continued to be our largest portfolio at 35% of net loans and leases. Additionally, our total commercial loan and lease portfolio continues to represent a majority of our lending portfolio at 78% of net loans and leases.

    Gross loans and leases at March 31, 2024 increased $823.9 million, or 7%, when compared with March 31, 2023. The increase was driven by increases of $403.8 million in commercial mortgage, $197.4 million in consumer loans (primarily from Spring EQ home equity loans), $87.0 million in residential mortgage, $57.2 million in commercial small business leases, and $45.8 million in C&I.

    The following table summarizes customer deposit balances and composition at March 31, 2024 compared to December 31, 2023 and March 31, 2023:

    Customer Deposits

     

     

     

     

     

     

     

     

     

     

     

     

    (Dollars in millions)

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Noninterest demand

     

    $

    4,653

     

    29

    %

     

    $

    4,917

     

    30

    %

     

    $

    5,299

     

    33

    %

    Interest-bearing demand

     

     

    2,856

     

    18

     

     

     

    2,936

     

    18

     

     

     

    3,159

     

    20

     

    Savings

     

     

    1,577

     

    10

     

     

     

    1,610

     

    10

     

     

     

    1,967

     

    13

     

    Money market

     

     

    5,206

     

    31

     

     

     

    5,175

     

    31

     

     

     

    4,002

     

    25

     

    Total core deposits

     

     

    14,292

     

    88

     

     

     

    14,638

     

    89

     

     

     

    14,427

     

    91

     

    Customer time deposits

     

     

    1,895

     

    12

     

     

     

    1,784

     

    11

     

     

     

    1,453

     

    9

     

    Total customer deposits

     

    $

    16,187

     

    100

    %

     

    $

    16,422

     

    100

    %

     

    $

    15,880

     

    100

    %

    Total customer deposits decreased $235.2 million, or 1% (6% annualized), when compared with December 31, 2023, primarily driven by a $207.4 million decrease in expected trust deposit activity and $81.9 million from a short-term commercial deposit.

    Customer deposits increased by $306.8 million from March 31, 2023 primarily due to short-term deposit increases in the Wealth and Trust business lines.

    Our deposit base remains highly diverse, with more than half of our customer deposits, or 52%, coming from our Commercial, Small Business, Wealth and Trust business lines. The loan-to-deposit ratio(5) was 79% at March 31, 2024, reflecting continued capacity to fund future loan growth.

    Core deposits were a strong 88% of total customer deposits. While customer deposits continue to shift into higher interest-bearing accounts, no- and low-cost checking accounts represented 47% of total customer deposits at March 31, 2024, with a weighted average cost of 39bps for the quarter.

    (5) Ratio of net loans and leases to total customer deposits.

    Net Interest Income

     

    Three Months Ending

    (Dollars in millions)

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Net interest income before purchase accretion

     

    $

    173.1

     

     

    $

    174.8

     

     

    $

    179.1

     

    Purchase accounting accretion

     

     

    2.2

     

     

     

    3.3

     

     

     

    3.4

     

    Net interest income

     

    $

    175.3

     

     

    $

    178.1

     

     

    $

    182.5

     

     

     

     

     

     

     

     

    Net interest margin before purchase accretion

     

     

    3.79

    %

     

     

    3.92

    %

     

     

    4.17

    %

    Purchase accounting accretion

     

     

    0.05

     

     

     

    0.07

     

     

     

    0.08

     

    Net interest margin

     

     

    3.84

    %

     

     

    3.99

    %

     

     

    4.25

    %

    Net interest income decreased $2.8 million, or 2% (not annualized), compared to 4Q 2023 and decreased $7.3 million, or 4%, compared to 1Q 2023, primarily driven by lagging increases in deposit pricing following rate hikes in 2023.

    Total loan yields were 7.02%, and remained flat when compared to 4Q 2023. Total customer deposit costs were 1.79%, an increase of 17bps compared to 4Q 2023 and customer interest-bearing deposit costs were 2.55%, an increase of 20bps compared to 4Q 2023.

    Net interest margin decreased 15bps from 4Q 2023 and decreased 41bps from 1Q 2023, primarily due to the reasons noted above.

    Asset Quality

    The following table summarizes asset quality metrics as of and for the period ended March 31, 2024 compared to December 31, 2023 and March 31, 2023.

    (Dollars in millions)

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Problem assets(6)

    $

    573.2

     

     

    $

    555.7

     

     

    $

    416.7

     

    Nonperforming assets

     

    67.2

     

     

     

    75.8

     

     

     

    33.1

     

    Delinquencies

     

    104.5

     

     

     

    101.9

     

     

     

    100.5

     

    Net charge-offs

     

    8.6

     

     

     

    14.7

     

     

     

    11.7

     

    Total net credit costs (recoveries) (r)

     

    16.2

     

     

     

    25.4

     

     

     

    29.0

     

    Problem assets to total Tier 1 capital plus ACL

     

    23.42

    %

     

     

    23.44

    %

     

     

    18.65

    %

    Classified assets to total Tier 1 capital plus ACL

     

    17.56

     

     

     

    17.29

     

     

     

    15.38

     

    Ratio of nonperforming assets to total assets

     

    0.33

     

     

     

    0.37

     

     

     

    0.16

     

    Delinquencies to gross loans (n)

     

    0.81

     

     

     

    0.80

     

     

     

    0.83

     

    Ratio of quarterly net charge-offs to average gross loans

     

    0.27

     

     

     

    0.46

     

     

     

    0.40

     

    Ratio of allowance for credit losses to total loans and leases (q)

     

    1.48

     

     

     

    1.46

     

     

     

    1.39

     

    Ratio of allowance for credit losses to nonaccruing loans

     

    292

     

     

     

    251

     

     

     

    528

     

    See “Notes”

    Overall asset quality metrics remained stable and reflect continued credit normalization from prior favorable levels. Problem assets to total Tier 1 capital plus ACL ratio of 23.42% decreased 2bps from December 31, 2023. Delinquencies of $104.5 million or 81bps of gross loans increased $2.6 million, or 1bps compared to December 31, 2023.

    Nonperforming assets decreased $8.6 million, or 4bps of total assets, compared to December 31, 2023 driven by the resolution of two nonperforming C&I loans. Net charge-offs decreased $6.0 million to $8.6 million, or 0.27% (annualized) of average gross loans during the quarter, due to lower charge-offs in our C&I and Construction portfolios. Excluding NewLane and Upstart, net charge-offs were a net recovery of $0.8 million.

    Total net credit costs were $16.2 million in the quarter compared to $25.4 million in 4Q 2023, primarily due to lower provision on our NewLane and Upstart portfolios. The ACL was $192.6 million as of March 31, 2024, an increase of $6.5 million from December 31, 2023. The ACL coverage ratio was 1.48%, an increase of 2bps from December 31, 2023. The increase in ACL from the prior quarter was primarily due to specific reserves for two nonperforming C&I relationships.

    (6) Problem assets includes all criticized, classified, and nonperforming loans as well as other real estate owned (OREO).

    Core Fee Revenue

    Fee business, including Wealth Management, Cash Connect, capital markets and mortgage banking, continue to perform well, as expected, and reflect the investments we are making to diversify our fee businesses. Core fee revenue (noninterest income) decreased $1.5 million, or 2% (not annualized), compared to 4Q 2023 to $76.5 million, resulting from $3.5 million of lower income from our equity position in Spring EQ, which was sold in 4Q 2023. Excluding the impact from Spring EQ, fee revenue increased, mainly due to an additional $3.3 million in Cash Connect driven by ATM vault cash units added during the fourth quarter of 2023.

    Core fee revenue increased $12.8 million, or 20%, compared to 1Q 2023. The increase was primarily driven by $8.2 million from Cash Connect due to the addition of ATM vault cash units during the fourth quarter of 2023 and the higher rate environment and $2.3 million from our Wealth and Trust business lines.

    For 1Q 2024, our core fee revenue ratio(7) was 30.3% compared to 30.4% in 4Q 2023 and 25.8% in 1Q 2023. Fee revenue is a competitive differentiator providing a well-diversified source of revenue with further growth opportunities expected across all sources.

    (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 $147.6 million increased $7.8 million, or 6% (not annualized), compared to 4Q 2023. Core noninterest expenses included a one-time benefit of approximately $3.2 million in 1Q 2024, reflecting lower actual incentive payments made for 2023 and $3.9 million of net favorable one-time adjustments in 4Q 2023 related to certain employee benefit plan valuations that were partially offset by accelerated costs associated with the closure of a branch. Excluding these nonrecurring items, expenses increased $7.2 million over the prior quarter. The increase was mostly due to Cash Connect external funding costs, which increased $5.2 million from $8.3 million to $13.5 million compared to 4Q 2023. The remainder of the increase in expenses for the quarter was primarily driven by higher 401(k) expense and payroll taxes associated with annual incentive payouts made during the first quarter.

    Core noninterest expense increased $14.5 million, or 11%, compared to 1Q 2023. The increase was primarily due to $7.7 million from Cash Connect external funding costs, $3.0 million in salaries and benefits, $1.1 million in loan workout and OREO expenses, and $1.1 million in uninsured losses.

    Our core efficiency ratio(8) was 58.6% in 1Q 2024, compared to 54.5% in 4Q 2023 and 53.9% in 1Q 2023.

    Income Taxes

    We recorded a $21.2 million income tax provision in 1Q 2024, compared to $29.4 million in 4Q 2023 and $20.9 million in 1Q 2023.

    The effective tax rate was 24.4% in 1Q 2024 compared to 31.6% in 4Q 2023 and 25.0% in 1Q 2023. The decrease in effective tax rate for 1Q 2024 compared to 4Q 2023 was primarily driven by the surrender of BOLI policies during the prior quarter.

    (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 March 31, 2024 with WSFS Bank’s Tier 1 leverage ratio of 11.14%, Common Equity Tier 1 capital ratio and Tier 1 capital ratio of 14.00%, and Total Risk-based capital ratio of 15.25%.

    WSFS’ total stockholders’ equity decreased $4.2 million, or less than 1% (not annualized), during 1Q 2024. The decrease was primarily due to a decrease in accumulated other comprehensive income (AOCI) of $42.9 million driven by market-value decreases on investment securities and capital returns of $30.1 million to stockholders, comprising $21.0 million from share repurchases and $9.1 million from quarterly dividends and was partially offset by quarterly earnings of $65.8 million.

    WSFS’ tangible common equity(9) increased $0.1 million, or less than 1% (not annualized), compared to December 31, 2023 primarily due to scheduled amortization of intangibles offset by the reasons described above. WSFS’ common equity to assets ratio was 12.02% and our tangible common equity to tangible assets ratio(9) was 7.52% at March 31, 2024, both essentially flat compared to the prior quarter.

    At March 31, 2024, book value per share was $41.17, an increase of $0.24, or 1% (not annualized), from December 31, 2023, and tangible common book value per share(9) was $24.52, an increase of $0.19, or 1% (not annualized), from December 31, 2023.

    During 1Q 2024, WSFS repurchased 492,368 shares of common stock for an aggregate of $21.0 million. As of March 31, 2024, WSFS has 4,849,225 shares, or approximately 8% of outstanding shares, remaining to repurchase under its current authorizations. For the year, total capital returned to stockholder through share repurchases and quarterly dividends was $30.1 million.

    The Board of Directors approved a quarterly cash dividend of $0.15 per share of common stock. This dividend will be paid on May 24, 2024 to stockholders of record as of May 10, 2024.

    (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.

    Selected quarterly performance results and metrics are as follows:

    (Dollars in millions)

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Net interest income

     

    $

    19.7

     

    $

    18.3

     

     

    $

    17.9

    Provision for (recovery of) credit losses

     

     

    0.3

     

     

    (0.1

    )

     

     

    1.3

    Fee revenue

     

     

    33.5

     

     

    36.0

     

     

     

    30.9

    Noninterest expense(10)

     

     

    26.4

     

     

    26.9

     

     

     

    24.2

    Pre-tax income

     

     

    26.5

     

     

    27.5

     

     

     

    23.4

    Performance Metrics

     

     

     

     

     

     

    Trust fee revenue (Institutional Services and BMT of DE)

     

    $

    17.8

     

    $

    20.9

     

     

    $

    17.0

    Private wealth management fee revenue

     

     

    14.8

     

     

    14.5

     

     

     

    13.1

    AUM/AUA(11) (12)

     

     

    80,464

     

     

    78,087

     

     

     

    65,562

    Wealth Management pre-tax income decreased $1.0 million, or 4% (not annualized) compared to 4Q 2023.

    Fee revenue decreased $2.5 million from 4Q 2023, primarily due to an adjustment to deferred revenue in Institutional Services and seasonally lower activity at Bryn Mawr Trust of Delaware. Net interest income increased $1.3 million as average trust deposits were higher by $92.6 million compared to 4Q 2023. Total noninterest expense decreased $0.6 million compared to 4Q 2023 driven by lower technology-related expenses.

    Wealth Management pre-tax income increased $3.1 million compared to 1Q 2023. Fee revenue increased $2.6 million, or 8%, compared to 1Q 2023 due to AUM growth in Private Wealth Management including the Rehoboth expansion and account growth in Institutional Services. Net interest income increased $1.7 million.

    Net AUM of $8.9 billion at the end of 1Q 2024 increased $0.3 billion, or 4% (not annualized), compared to 4Q 2023, and increased $1.0 billion, or 12%, compared to 1Q 2023. AUM balances over the period benefited primarily from positive returns in broader equity markets.

    (10) Includes intercompany allocation of expense.

    (11) Represents Assets Under Management and Assets Under Administration.

    (12) AUM/AUA as of December 31, 2023 reflects a correction to the computation of AUA that reduces the previously reported AUM/AUA balance by $6.3 billion to $78.1 billion.

    Cash Connect

    Cash Connect is a premier provider of ATM vault cash, smart safe and cash logistics services in the United States, servicing non-bank ATMs and smart safes nationwide and supporting ATMs for WSFS Bank Customers with one of the largest branded ATM networks in our region.

    Selected quarterly financial results and metrics are as follows:

    (Dollars in millions)

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Net revenue(13)

     

    $

    24.1

     

     

    $

    19.0

     

     

    $

    15.5

     

    Noninterest expense(14)

     

     

    23.3

     

     

     

    17.4

     

     

     

    14.8

     

    Pre-tax income

     

     

    0.8

     

     

     

    1.6

     

     

     

    0.6

     

    Performance Metrics

     

     

     

     

     

     

    Cash managed

     

    $

    1,992

     

     

    $

    1,867

     

     

    $

    1,698

     

    Number of serviced non-bank ATMs and smart safes

     

     

    46,031

     

     

     

    41,695

     

     

     

    34,067

     

    Number of WSFS owned and branded ATMs

     

     

    583

     

     

     

    590

     

     

     

    691

     

    ROA

     

     

    0.83

    %

     

     

    1.17

    %

     

     

    0.45

    %

    Cash Connect net revenue increased $5.1 million from 4Q 2023 driven by ATM vault cash units added during the quarter. Noninterest expense increased $6.0 million due to higher funding cost associated with the shift toward external funding and non-recurring onboarding costs for the additional units. As a result, pre-tax income decreased $0.8 million and ROA decreased 34bps to 0.83% compared to 4Q 2023.

    Net revenue increased $8.6 million compared to 1Q 2023 due to the added units described above. Noninterest expense increased $8.5 million due to the reasons described above. Pre-tax income was essentially flat compared to 1Q 2023. ROA increased 38bps to 0.83% compared to 1Q 2023 due to a higher proportion of external funding.

    During 1Q 2024, Cash Connect added 4,336 serviced non-bank ATMs as a result of a large industry participant exiting their ATM cash vault business. Cash Connect is targeting additional unit growth opportunities in 2024 as a result of the factor mentioned above.

    (13) Includes intercompany allocation of income and net interest income.

    (14) Includes intercompany allocation of expense.

    First Quarter 2024 Earnings Release Conference Call

    Management will conduct a conference call to review 1Q 2024 results at 1:00 p.m. Eastern Time (ET) on Friday, April 26, 2024. Interested parties may access the conference call live on our Investor Relations website (https://investors.wsfsbank.com). For those who cannot access the live conference call, a replay will be accessible shortly after the event concludes through our Investor Relations website.

    About WSFS Financial Corporation

    WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and trust company in the Greater Philadelphia and Delaware region. As of March 31, 2024, WSFS Financial Corporation had $20.6 billion in assets on its balance sheet and $80.5 billion in assets under management and administration. WSFS operates from 114 offices, 88 of which are banking offices, located in Pennsylvania (57), Delaware (40), New Jersey (14), Florida (1), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Capital Management, LLC, Bryn Mawr Trust, The Bryn Mawr Trust Company of Delaware, Cash Connect, NewLane Finance, Powdermill Financial Solutions, WSFS Institutional Services, WSFS Mortgage, and WSFS Wealth Investments. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

    Forward-Looking Statements

    This press release contains estimates, predictions, opinions, projections and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. The words “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, difficult market conditions and unfavorable economic trends in the United States generally and in financial markets, particularly in the markets in which the Company operates and in which its loans are concentrated, including difficult and unfavorable conditions and trends related to housing markets, costs of living, unemployment levels, interest rates, supply chain issues, inflation, and economic growth; the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions; changes in market interest rates which may increase funding costs and reduce earning asset yields and thus reduce margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of the Company's investment securities portfolio, which could impact market confidence in the Company’s operations; possible additional loan losses and impairment of the collectability of loans; the Company's level of nonperforming assets and the costs associated with resolving problem loans including litigation and other costs and complying with government-imposed foreclosure moratoriums; , the credit risk associated with the substantial amount of commercial real estate, commercial and industrial, and construction and land development loans in the Company's loan portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company's operations and potential expenses associated with complying with such regulations; the Company's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms; possible changes in trade, monetary and fiscal policies and stimulus programs, laws and regulations and other activities of governments, agencies, and similar organizations, and the uncertainty of the short- and long-term impacts of such changes; any impairments of the Company's goodwill or other intangible assets; the success of the Company's growth plans; failure of the financial and/or operational controls of the Company's Cash Connect and/or Wealth Management segments; the Company's ability to successfully integrate and fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and post-acquisition Customer acceptance of the Company's products and services and related Customer disintermediation; negative perceptions or publicity with respect to the Company generally and, in particular, the Company's trust and wealth management business; adverse judgments or other resolution of pending and future legal proceedings, and cost incurred in defending such proceedings; the Company's reliance on third parties for certain important functions, including the operation of its core systems, and any failures by such third parties; system failures or cybersecurity incidents or other breaches of the Company's network security, particularly given remote working arrangements; the Company's ability to recruit and retain key Associates; the effects of weather, including climate change, and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability, armed conflicts, public health crises and man-made disasters including terrorist attacks; the effects of regional or national civil unrest (including any resulting branch or ATM closures or damage); possible changes in the speed of loan prepayments by the Company's Customers and loan origination or sales volumes; possible changes in market valuations and/or the speed of prepayments of mortgage-backed securities (MBS) due to changes in the interest rate environment, and the related acceleration of premium amortization on prepayments in the event that prepayments accelerate; regulatory limits on the Company's ability to receive dividends from its subsidiaries and pay dividends to its stockholders; any reputation, credit, interest rate, market, operational, litigation, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above; any compounding effects or unexpected interactions of the risks discussed above; and other risks and uncertainties, including those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other documents filed by the Company with the Securities and Exchange Commission from time to time.

    The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any duty to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company for any reason, except as specifically required by law. As used in this press release, the terms "WSFS," "the Company," "registrant," "we," "us," and "our" mean WSFS Financial Corporation and its subsidiaries, on a consolidated basis, unless the context indicates otherwise.

    WSFS FINANCIAL CORPORATION

    FINANCIAL HIGHLIGHTS

    SUMMARY STATEMENTS OF INCOME (Unaudited)

     

     

    Three months ended

    (Dollars in thousands, except per share data)

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Interest income:

    Interest and fees on loans

     

    $

    224,703

     

     

    $

    224,760

     

     

    $

    193,724

     

    Interest on mortgage-backed securities

     

     

    25,897

     

     

     

    26,245

     

     

     

    27,526

     

    Interest and dividends on investment securities

     

     

    2,184

     

     

     

    2,184

     

     

     

    2,237

     

    Other interest income

     

     

    8,838

     

     

     

    4,042

     

     

     

    2,896

     

     

     

     

    261,622

     

     

     

    257,231

     

     

     

    226,383

     

    Interest expense:

     

     

     

     

     

     

    Interest on deposits

     

     

    72,795

     

     

     

    67,319

     

     

     

    35,192

     

    Interest on Federal Home Loan Bank advances

     

     

    308

     

     

     

    213

     

     

     

    3,371

     

    Interest on senior and subordinated debt

     

     

    2,449

     

     

     

    2,455

     

     

     

    2,573

     

    Interest on trust preferred borrowings

     

     

    1,756

     

     

     

    1,782

     

     

     

    1,555

     

    Interest on other borrowings

     

     

    9,036

     

     

     

    7,335

     

     

     

    1,160

     

     

     

     

    86,344

     

     

     

    79,104

     

     

     

    43,851

     

    Net interest income

     

     

    175,278

     

     

     

    178,127

     

     

     

    182,532

     

    Provision for credit losses

     

     

    15,138

     

     

     

    24,816

     

     

     

    29,011

     

    Net interest income after provision for credit losses

     

     

    160,140

     

     

     

    153,311

     

     

     

    153,521

     

    Noninterest income:

     

     

     

     

     

     

    Credit/debit card and ATM income

     

     

    19,669

     

     

     

    17,058

     

     

     

    13,361

     

    Investment management and fiduciary revenue

     

     

    32,928

     

     

     

    35,475

     

     

     

    30,476

     

    Deposit service charges

     

     

    6,487

     

     

     

    6,543

     

     

     

    6,039

     

    Mortgage banking activities, net

     

     

    1,647

     

     

     

    1,119

     

     

     

    1,122

     

    Loan and lease fee income

     

     

    1,523

     

     

     

    1,535

     

     

     

    1,372

     

    Unrealized gain (loss) on equity investment, net

     

     

     

     

     

    338

     

     

     

    (4

    )

    Realized gain on sale of equity investment, net

     

     

     

     

     

    9,493

     

     

     

     

    Bank-owned life insurance income

     

     

    1,200

     

     

     

    675

     

     

     

    1,510

     

    Other income

     

     

    12,403

     

     

     

    14,969

     

     

     

    9,251

     

     

     

     

    75,857

     

     

     

    87,205

     

     

     

    63,127

     

    Noninterest expense:

     

     

     

     

     

     

    Salaries, benefits and other compensation

     

     

    75,806

     

     

     

    69,524

     

     

     

    72,849

     

    Occupancy expense

     

     

    9,479

     

     

     

    12,115

     

     

     

    10,408

     

    Equipment expense

     

     

    10,692

     

     

     

    11,077

     

     

     

    9,792

     

    Data processing and operations expense

     

     

    3,660

     

     

     

    4,692

     

     

     

    4,724

     

    Professional fees

     

     

    4,481

     

     

     

    6,031

     

     

     

    4,439

     

    Marketing expense

     

     

    1,782

     

     

     

    1,984

     

     

     

    1,716

     

    FDIC expenses

     

     

    3,982

     

     

     

    7,908

     

     

     

    2,582

     

    Loan workout and other credit costs

     

     

    1,071

     

     

     

    560

     

     

     

    (55

    )

    Corporate development expense

     

     

    208

     

     

     

    282

     

     

     

    740

     

    Restructuring expense

     

     

     

     

     

    557

     

     

     

    (761

    )

    Other operating expenses

     

     

    37,911

     

     

     

    32,916

     

     

     

    26,611

     

     

     

     

    149,072

     

     

     

    147,646

     

     

     

    133,045

     

    Income before taxes

     

     

    86,925

     

     

     

    92,870

     

     

     

    83,603

     

    Income tax provision

     

     

    21,202

     

     

     

    29,365

     

     

     

    20,941

     

    Net income

     

     

    65,723

     

     

     

    63,505

     

     

     

    62,662

     

    Less: Net (loss) income attributable to noncontrolling interest

     

     

    (38

    )

     

     

    (403

    )

     

     

    258

     

    Net income attributable to WSFS

     

    $

    65,761

     

     

    $

    63,908

     

     

    $

    62,404

     

    Diluted earnings per share of common stock:

     

    $

    1.09

     

     

    $

    1.05

     

     

    $

    1.01

     

    Weighted average shares of common stock outstanding for fully diluted EPS

     

     

    60,521,951

     

     

     

    60,772,603

     

     

     

    61,678,871

     

    See “Notes”

    WSFS FINANCIAL CORPORATION

    FINANCIAL HIGHLIGHTS

    SUMMARY STATEMENTS OF INCOME (Unaudited) - continued

     

     

    Three months ended

     

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Performance Ratios:

     

     

     

     

     

     

    Return on average assets (a)

     

    1.28

    %

     

    1.25

    %

     

    1.27

    %

    Return on average equity (a)

     

    10.68

     

     

    11.12

     

     

    11.20

     

    Return on average tangible common equity (a)(o)

     

    18.76

     

     

    20.83

     

     

    21.19

     

    Net interest margin (a)(b)

     

    3.84

     

     

    3.99

     

     

    4.25

     

    Efficiency ratio (c)

     

    59.28

     

     

    55.56

     

     

    54.02

     

    Noninterest income as a percentage of total net revenue (b)

     

    30.16

     

     

    32.81

     

     

    25.63

     

    See “Notes”

    WSFS FINANCIAL CORPORATION

    FINANCIAL HIGHLIGHTS (Continued)

    SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)

     

    (Dollars in thousands)

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Assets:

     

     

     

     

     

     

    Cash and due from banks

     

    $

    787,729

     

     

    $

    629,310

     

     

    $

    686,788

     

    Cash in non-owned ATMs

     

     

    186,522

     

     

     

    458,889

     

     

     

    409,265

     

    Investment securities, available-for-sale

     

     

    3,734,229

     

     

     

    3,846,537

     

     

     

    4,086,459

     

    Investment securities, held-to-maturity

     

     

    1,049,807

     

     

     

    1,058,557

     

     

     

    1,094,799

     

    Other investments

     

     

    35,397

     

     

     

    37,533

     

     

     

    73,906

     

    Net loans and leases (e)(f)(l)

     

     

    12,816,986

     

     

     

    12,612,470

     

     

     

    12,016,579

     

    Bank owned life insurance

     

     

    42,708

     

     

     

    42,762

     

     

     

    100,907

     

    Goodwill and intangibles

     

     

    1,000,344

     

     

     

    1,004,560

     

     

     

    1,008,250

     

    Other assets

     

     

    925,526

     

     

     

    904,054

     

     

     

    842,337

     

    Total assets

     

    $

    20,579,248

     

     

    $

    20,594,672

     

     

    $

    20,319,290

     

    Liabilities and Stockholders’ Equity:

     

     

     

     

     

     

    Noninterest-bearing deposits

     

    $

    4,652,875

     

     

    $

    4,917,297

     

     

    $

    5,299,094

     

    Interest-bearing deposits

     

     

    11,534,329

     

     

     

    11,505,113

     

     

     

    10,581,285

     

    Total customer deposits

     

     

    16,187,204

     

     

     

    16,422,410

     

     

     

    15,880,379

     

    Brokered deposits

     

     

     

     

     

    51,676

     

     

     

    309,309

     

    Total deposits

     

     

    16,187,204

     

     

     

    16,474,086

     

     

     

    16,189,688

     

    Federal Home Loan Bank advances

     

     

     

     

     

     

     

     

    800,000

     

    Other borrowings

     

     

    1,124,958

     

     

     

    895,076

     

     

     

    338,206

     

    Other liabilities

     

     

    801,464

     

     

     

    755,695

     

     

     

    688,052

     

    Total liabilities

     

     

    18,113,626

     

     

     

    18,124,857

     

     

     

    18,015,946

     

    Stockholders’ equity of WSFS

     

     

    2,473,481

     

     

     

    2,477,636

     

     

     

    2,306,362

     

    Noncontrolling interest

     

     

    (7,859

    )

     

     

    (7,821

    )

     

     

    (3,018

    )

    Total stockholders' equity

     

     

    2,465,622

     

     

     

    2,469,815

     

     

     

    2,303,344

     

    Total liabilities and stockholders' equity

     

    $

    20,579,248

     

     

    $

    20,594,672

     

     

    $

    20,319,290

     

    Capital Ratios:

     

     

     

     

     

     

    Equity to asset ratio

     

     

    12.02

    %

     

     

    12.03

    %

     

     

    11.35

    %

    Tangible common equity to tangible asset ratio (o)

     

     

    7.52

     

     

     

    7.52

     

     

     

    6.72

     

    Common equity Tier 1 capital (required: 4.5%; well capitalized: 6.5%) (g)

     

     

    14.00

     

     

     

    13.72

     

     

     

    13.39

     

    Tier 1 leverage (required: 4.00%; well-capitalized: 5.00%) (g)

     

     

    11.14

     

     

     

    10.92

     

     

     

    10.57

     

    Tier 1 risk-based capital (required: 6.00%; well-capitalized: 8.00%) (g)

     

     

    14.00

     

     

     

    13.72

     

     

     

    13.39

     

    Total risk-based capital (required: 8.00%; well-capitalized: 10.00%) (g)

     

     

    15.25

     

     

     

    14.96

     

     

     

    14.56

     

    Asset Quality Indicators:

     

     

     

     

     

     

    Nonperforming assets:

     

     

     

     

     

     

    Nonaccruing loans (t)

     

    $

    65,948

     

     

    $

    74,185

     

     

    $

    32,017

     

    Assets acquired through foreclosure

     

     

    1,210

     

     

     

    1,569

     

     

     

    1,131

     

    Total nonperforming assets

     

    $

    67,158

     

     

    $

    75,754

     

     

    $

    33,148

     

    Past due loans (h)

     

    $

    11,362

     

     

    $

    11,584

     

     

    $

    13,565

     

    Troubled loans

     

     

    119,243

     

     

     

    95,268

     

     

     

    18,061

     

    Allowance for credit losses

     

     

    192,637

     

     

     

    186,134

     

     

     

    169,171

     

    Ratio of nonperforming assets to total assets

     

     

    0.33

    %

     

     

    0.37

    %

     

     

    0.16

    %

    Ratio of allowance for credit losses to total loans and leases (q)

     

     

    1.48

     

     

     

    1.46

     

     

     

    1.39

     

    Ratio of allowance for credit losses to nonaccruing loans

     

     

    292

     

     

     

    251

     

     

     

    528

     

    Ratio of quarterly net charge-offs to average gross loans (a)(e)(i)(n)

     

     

    0.27

     

     

     

    0.46

     

     

     

    0.40

     

    Ratio of year-to-date net charge-offs to average gross loans (a)(e)(i)(n)

     

     

    0.27

     

     

     

    0.44

     

     

     

    0.40

     

    See “Notes”

    WSFS FINANCIAL CORPORATION

    FINANCIAL HIGHLIGHTS (Continued)

    AVERAGE BALANCE SHEET (Unaudited)

    (Dollars in thousands)

     

    Three months ended

     

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

     

     

    Average

    Balance

     

    Interest &

    Dividends

     

    Yield/

    Rate

    (a)(b)

     

    Average

    Balance

     

    Interest &

    Dividends

     

    Yield/

    Rate

    (a)(b)

     

    Average

    Balance

     

    Interest &

    Dividends

     

    Yield/

    Rate

    (a)(b)

    Assets:

    Interest-earning assets:

    Loans: (e) (j)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Commercial loans and leases (p)

     

    $

    5,047,482

     

     

    $

    88,530

     

    7.06

    %

     

    $

    5,049,932

     

     

    $

    89,474

     

    7.04

    %

     

    $

    4,954,622

     

     

    $

    80,744

     

    6.63

    %

    Commercial real estate loans (s)

     

     

    4,887,483

     

     

     

    86,724

     

    7.14

     

     

     

    4,757,766

     

     

     

    85,717

     

    7.15

     

     

     

    4,425,354

     

     

     

    71,828

     

    6.58

     

    Residential mortgage

     

     

    874,703

     

     

     

    10,579

     

    4.84

     

     

     

    865,631

     

     

     

    10,176

     

    4.70

     

     

     

    769,581

     

     

     

    8,628

     

    4.48

     

    Consumer loans

     

     

    2,041,390

     

     

     

    38,228

     

    7.53

     

     

     

    1,992,434

     

     

     

    38,495

     

    7.67

     

     

     

    1,849,398

     

     

     

    31,535

     

    6.92

     

    Loans held for sale

     

     

    34,907

     

     

     

    642

     

    7.40

     

     

     

    46,227

     

     

     

    898

     

    7.71

     

     

     

    43,527

     

     

     

    989

     

    9.21

     

    Total loans and leases

     

     

    12,885,965

     

     

     

    224,703

     

    7.02

     

     

     

    12,711,990

     

     

     

    224,760

     

    7.02

     

     

     

    12,042,482

     

     

     

    193,724

     

    6.53

     

    Mortgage-backed securities (d)

     

     

    4,476,032

     

     

     

    25,897

     

    2.31

     

     

     

    4,376,102

     

     

     

    26,245

     

    2.40

     

     

     

    4,823,507

     

     

     

    27,526

     

    2.28

     

    Investment securities (d)

     

     

    365,375

     

     

     

    2,184

     

    2.65

     

     

     

    356,495

     

     

     

    2,184

     

    2.72

     

     

     

    376,760

     

     

     

    2,237

     

    2.86

     

    Other interest-earning assets

     

     

    643,749

     

     

     

    8,838

     

    5.52

     

     

     

    291,626

     

     

     

    4,042

     

    5.50

     

     

     

    240,943

     

     

     

    2,896

     

    4.87

     

    Total interest-earning assets

     

    $

    18,371,121

     

     

    $

    261,622

     

    5.74

    %

     

    $

    17,736,213

     

     

    $

    257,231

     

    5.76

    %

     

    $

    17,483,692

     

     

    $

    226,383

     

    5.27

    %

    Allowance for credit losses

     

     

    (188,762

    )

     

     

     

     

     

     

    (179,030

    )

     

     

     

     

     

     

    (153,181

    )

     

     

     

     

    Cash and due from banks

     

     

    273,286

     

     

     

     

     

     

     

    263,724

     

     

     

     

     

     

     

    230,193

     

     

     

     

     

    Cash in non-owned ATMs

     

     

    243,941

     

     

     

     

     

     

     

    396,589

     

     

     

     

     

     

     

    421,057

     

     

     

     

     

    Bank owned life insurance

     

     

    42,791

     

     

     

     

     

     

     

    91,769

     

     

     

     

     

     

     

    101,612

     

     

     

     

     

    Other noninterest-earning assets

     

     

    1,953,037

     

     

     

     

     

     

     

    2,009,939

     

     

     

     

     

     

     

    1,919,065

     

     

     

     

     

    Total assets

     

    $

    20,695,414

     

     

     

     

     

     

    $

    20,319,204

     

     

     

     

     

     

    $

    20,002,438

     

     

     

     

     

    Liabilities and stockholders’ equity:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Interest-bearing liabilities:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Interest-bearing deposits:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Interest-bearing demand

     

    $

    2,834,273

     

     

    $

    7,366

     

    1.05

    %

     

    $

    2,941,311

     

     

    $

    7,966

     

    1.07

    %

     

    $

    3,142,930

     

     

    $

    5,024

     

    0.65

    %

    Savings

     

     

    1,588,224

     

     

     

    1,580

     

    0.40

     

     

     

    1,646,314

     

     

     

    1,614

     

    0.39

     

     

     

    2,065,212

     

     

     

    1,256

     

    0.25

     

    Money market

     

     

    5,186,402

     

     

     

    45,433

     

    3.52

     

     

     

    4,760,003

     

     

     

    40,373

     

    3.37

     

     

     

    3,861,590

     

     

     

    19,258

     

    2.02

     

    Customer time deposits

     

     

    1,835,424

     

     

     

    18,238

     

    4.00

     

     

     

    1,763,678

     

     

     

    15,766

     

    3.55

     

     

     

    1,276,204

     

     

     

    5,993

     

    1.90

     

    Total interest-bearing customer deposits

     

     

    11,444,323

     

     

     

    72,617

     

    2.55

     

     

     

    11,111,306

     

     

     

    65,719

     

    2.35

     

     

     

    10,345,936

     

     

     

    31,531

     

    1.24

     

    Brokered deposits

     

     

    18,410

     

     

     

    178

     

    3.89

     

     

     

    119,843

     

     

     

    1,600

     

    5.30

     

     

     

    346,355

     

     

     

    3,661

     

    4.29

     

    Total interest-bearing deposits

     

     

    11,462,733

     

     

     

    72,795

     

    2.55

     

     

     

    11,231,149

     

     

     

    67,319

     

    2.38

     

     

     

    10,692,291

     

     

     

    35,192

     

    1.33

     

    Federal Home Loan Bank advances

     

     

    21,429

     

     

     

    308

     

    5.78

     

     

     

    14,620

     

     

     

    213

     

    5.78

     

     

     

    267,367

     

     

     

    3,371

     

    5.11

     

    Trust preferred borrowings

     

     

    90,655

     

     

     

    1,756

     

    7.79

     

     

     

    90,606

     

     

     

    1,782

     

    7.80

     

     

     

    90,459

     

     

     

    1,555

     

    6.97

     

    Senior and subordinated debt

     

     

    218,420

     

     

     

    2,449

     

    4.48

     

     

     

    218,362

     

     

     

    2,455

     

    4.50

     

     

     

    233,189

     

     

     

    2,573

     

    4.41

     

    Other borrowed funds

     

     

    781,854

     

     

     

    9,036

     

    4.65

     

     

     

    635,512

     

     

     

    7,335

     

    4.58

     

     

     

    131,221

     

     

     

    1,160

     

    3.59

     

    Total interest-bearing liabilities

     

    $

    12,575,091

     

     

    $

    86,344

     

    2.76

    %

     

    $

    12,190,249

     

     

    $

    79,104

     

    2.57

    %

     

    $

    11,414,527

     

     

    $

    43,851

     

    1.56

    %

    Noninterest-bearing demand deposits

     

     

    4,828,865

     

     

     

     

     

     

     

    4,965,356

     

     

     

     

     

     

     

    5,560,252

     

     

     

     

     

    Other noninterest-bearing liabilities

     

     

    822,834

     

     

     

     

     

     

     

    889,962

     

     

     

     

     

     

     

    770,565

     

     

     

     

     

    Stockholders’ equity of WSFS

     

     

    2,476,453

     

     

     

     

     

     

     

    2,281,076

     

     

     

     

     

     

     

    2,260,262

     

     

     

     

     

    Noncontrolling interest

     

     

    (7,829

    )

     

     

     

     

     

     

    (7,439

    )

     

     

     

     

     

     

    (3,168

    )

     

     

     

     

    Total liabilities and equity

     

    $

    20,695,414

     

     

     

     

     

     

    $

    20,319,204

     

     

     

     

     

     

    $

    20,002,438

     

     

     

     

     

    Excess of interest-earning assets over interest-bearing liabilities

     

    $

    5,796,030

     

     

     

     

     

     

    $

    5,545,964

     

     

     

     

     

     

    $

    6,069,165

     

     

     

     

     

    Net interest and dividend income

     

     

     

    $

    175,278

     

     

     

     

     

    $

    178,127

     

     

     

     

     

    $

    182,532

     

     

    Interest rate spread

     

     

     

     

     

    2.98

    %

     

     

     

     

     

    3.19

    %

     

     

     

     

     

    3.71

    %

    Net interest margin

     

     

     

     

     

    3.84

    %

     

     

     

     

     

    3.99

    %

     

     

     

     

     

    4.25

    %

    See “Notes”

    WSFS FINANCIAL CORPORATION

    FINANCIAL HIGHLIGHTS (Continued)

    (Unaudited)

     

    (Dollars in thousands, except per share data)

     

    Three months ended

    Stock Information:

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Market price of common stock:

     

     

     

     

     

     

    High

     

    $47.71

     

    $47.97

     

    $51.77

    Low

     

    40.20

     

    33.12

     

    34.83

    Close

     

    45.14

     

    45.93

     

    37.61

    Book value per share of common stock

     

    41.17

     

    40.93

     

    37.57

    Tangible common book value (TBV) per share of common stock (o)

     

    24.52

     

    24.33

     

    21.15

    Number of shares of common stock outstanding (000s)

     

    60,084

     

    60,538

     

    61,387

    Other Financial Data:

     

     

     

     

     

     

    One-year repricing gap to total assets (k)

     

    0.19%

     

    (0.14)%

     

    3.34%

    Weighted average duration of the MBS portfolio

     

    5.8 years

     

    5.8 years

     

    6.0 years

    Unrealized losses on securities available for sale, net of taxes

     

    $(539,939)

     

    $(499,932)

     

    $(510,522)

    Number of Associates (FTEs) (m)

     

    2,241

     

    2,229

     

    2,177

    Number of offices (branches, LPO’s, operations centers, etc.)

     

    114

     

    114

     

    119

    Number of WSFS owned and branded ATMs

     

    583

     

    590

     

    691

    Notes:

    (a)

     

    Annualized.

    (b)

     

    Computed on a fully tax-equivalent basis.

    (c)

     

    Noninterest expense divided by (tax-equivalent) net interest income and noninterest income.

    (d)

     

    Includes securities held-to-maturity (at amortized cost) and securities available-for-sale (at fair value).

    (e)

     

    Net of unearned income.

    (f)

     

    Net of allowance for credit losses.

    (g)

     

    Represents capital ratios of Wilmington Savings Fund Society, FSB and subsidiaries. Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.

    (h)

     

    Accruing loans which are contractually past due 90 days or more as to principal or interest. Balance includes student loans, which are U.S. government guaranteed with little risk of credit loss.

    (i)

     

    Excludes loans held for sale.

    (j)

     

    Nonperforming loans are included in average balance computations.

    (k)

     

    The difference between projected amounts of interest-sensitive assets and interest-sensitive liabilities repricing within one year divided by total assets, based on a current interest rate scenario.

    (l)

     

    Includes loans held for sale and reverse mortgages.

    (m)

     

    Includes seasonal Associates, when applicable.

    (n)

     

    Excludes reverse mortgage loans.

    (o)

     

    The Company uses non-GAAP (United States Generally Accepted Accounting Principles) financial information in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Company’s management believes that investors may use these non-GAAP financial measures to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

    (p)

     

    Includes commercial & industrial loans and commercial small business leases.

    (q)

     

    Represents amortized cost basis for loans and leases.

    (r)

     

    Includes provision for credit losses, loan workout expenses, OREO expenses and other credit costs.

    (s)

     

    Includes commercial mortgage and commercial construction loans.

    (t)

     

    Includes nonaccruing troubled loans.

    WSFS FINANCIAL CORPORATION

    FINANCIAL HIGHLIGHTS (Continued)

    (Dollars in thousands, except per share data)

    (Unaudited)

     

    Non-GAAP Reconciliation (o):

     

    Three months ended

     

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Net interest income (GAAP)

     

    $

    175,278

     

     

    $

    178,127

     

     

    $

    182,532

     

    Core net interest income (non-GAAP)

     

     

    175,278

     

     

     

    178,127

     

     

     

    182,532

     

    Noninterest income (GAAP)

     

     

    75,857

     

     

     

    87,205

     

     

     

    63,127

     

    Less/(plus): Unrealized gain (loss) on equity investments, net

     

     

     

     

     

    338

     

     

     

    (4

    )

    Less: Realized gain on sale of equity investment, net

     

     

     

     

     

    9,493

     

     

     

     

    Plus: Visa derivative valuation adjustment

     

     

    (605

    )

     

     

    (605

    )

     

     

    (553

    )

    Core fee revenue (non-GAAP)

     

    $

    76,462

     

     

    $

    77,979

     

     

    $

    63,684

     

    Core net revenue (non-GAAP)

     

    $

    251,740

     

     

    $

    256,106

     

     

    $

    246,216

     

    Core net revenue (non-GAAP)(tax-equivalent)

     

    $

    252,084

     

     

    $

    256,523

     

     

    $

    246,859

     

    Noninterest expense (GAAP)

     

    $

    149,072

     

     

    $

    147,646

     

     

    $

    133,045

     

    Less: FDIC special assessment

     

     

    1,263

     

     

     

    5,052

     

     

     

     

    Less: Corporate development expense

     

     

    208

     

     

     

    282

     

     

     

    740

     

    Less/(plus): Restructuring expense

     

     

     

     

     

    557

     

     

     

    (761

    )

    Less: Contribution to WSFS CARES Foundation

     

     

     

     

     

    2,000

     

     

     

     

    Core noninterest expense (non-GAAP)

     

    $

    147,601

     

     

    $

    139,755

     

     

    $

    133,066

     

    Core efficiency ratio (non-GAAP)

     

     

    58.6

    %

     

     

    54.5

    %

     

     

    53.9

    %

    Core fee revenue ratio (non-GAAP) (b)

     

     

    30.3

    %

     

     

    30.4

    %

     

     

    25.8

    %

     

     

     

     

     

     

     

     

     

    End of period

     

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Total assets (GAAP)

     

    $

    20,579,248

     

     

    $

    20,594,672

     

     

    $

    20,319,290

     

    Less: Goodwill and other intangible assets

     

     

    1,000,344

     

     

     

    1,004,560

     

     

     

    1,008,250

     

    Total tangible assets (non-GAAP)

     

    $

    19,578,904

     

     

    $

    19,590,112

     

     

    $

    19,311,040

     

    Total stockholders’ equity of WSFS (GAAP)

     

    $

    2,473,481

     

     

    $

    2,477,636

     

     

    $

    2,306,362

     

    Less: Goodwill and other intangible assets

     

     

    1,000,344

     

     

     

    1,004,560

     

     

     

    1,008,250

     

    Total tangible common equity (non-GAAP)

     

    $

    1,473,137

     

     

    $

    1,473,076

     

     

    $

    1,298,112

     

     

     

     

     

     

     

     

    Tangible common book value (TBV) per share:

     

     

     

     

    Book value per share (GAAP)

     

    $

    41.17

     

     

    $

    40.93

     

     

    $

    37.57

     

    Tangible common book value per share (non-GAAP)

     

     

    24.52

     

     

     

    24.33

     

     

     

    21.15

     

    Tangible common equity to tangible assets:

     

     

     

     

    Equity to asset ratio (GAAP)

     

     

    12.02

    %

     

     

    12.03

    %

     

     

    11.35

    %

    Tangible common equity to tangible assets ratio (non-GAAP)

     

     

    7.52

     

     

     

    7.52

     

     

     

    6.72

     

    Non-GAAP Reconciliation - continued (o):

     

    Three months ended

     

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    GAAP net income attributable to WSFS

     

    $

    65,761

     

     

    $

    63,908

     

     

    $

    62,404

     

    Plus/(less): Pre-tax adjustments: Realized/unrealized gain (loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation

     

     

    2,076

     

     

     

    (1,335

    )

     

     

    536

     

    Plus: Tax adjustments: BOLI surrender

     

     

     

     

     

    7,056

     

     

     

     

    (Plus)/less: Tax impact of pre-tax adjustments

     

     

    (507

    )

     

     

    65

     

     

     

    (134

    )

    Adjusted net income (non-GAAP) attributable to WSFS

     

    $

    67,330

     

     

    $

    69,694

     

     

    $

    62,806

     

     

     

     

     

     

     

     

    GAAP return on average assets (ROA)

     

     

    1.28

    %

     

     

    1.25

    %

     

     

    1.27

    %

    Plus/(less): Pre-tax adjustments: Realized/unrealized gain (loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation

     

     

    0.04

     

     

     

    (0.03

    )

     

     

    0.01

     

    Plus: Tax adjustments: BOLI surrender

     

     

     

     

     

    0.14

     

     

     

     

    (Plus)/less: Tax impact of pre-tax adjustments

     

     

    (0.01

    )

     

     

     

     

     

    (0.01

    )

    Core ROA (non-GAAP)

     

     

    1.31

    %

     

     

    1.36

    %

     

     

    1.27

    %

     

     

     

     

     

     

     

    Earnings per share (diluted) (GAAP)

     

    $

    1.09

     

     

    $

    1.05

     

     

    $

    1.01

     

    Plus/(less): Pre-tax adjustments: Realized/unrealized gain (loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation

     

     

    0.03

     

     

     

    (0.02

    )

     

     

    0.01

     

    Plus: Tax adjustments: BOLI surrender

     

     

     

     

     

    0.12

     

     

     

     

    (Plus)/less: Tax impact of pre-tax adjustments

     

     

    (0.01

    )

     

     

     

     

     

     

    Core earnings per share (non-GAAP)

     

    $

    1.11

     

     

    $

    1.15

     

     

    $

    1.02

     

     

     

     

     

     

     

     

    Calculation of return on average tangible common equity:

     

     

     

     

    GAAP net income attributable to WSFS

     

    $

    65,761

     

     

    $

    63,908

     

     

    $

    62,404

     

    Plus: Tax effected amortization of intangible assets

     

     

    2,973

     

     

     

    2,976

     

     

     

    2,880

     

    Net tangible income (non-GAAP)

     

    $

    68,734

     

     

    $

    66,884

     

     

    $

    65,284

     

    Average stockholders’ equity of WSFS

     

    $

    2,476,453

     

     

    $

    2,281,076

     

     

    $

    2,260,262

     

    Less: Average goodwill and intangible assets

     

     

    1,003,167

     

     

     

    1,007,136

     

     

     

    1,010,645

     

    Net average tangible common equity

     

    $

    1,473,286

     

     

    $

    1,273,940

     

     

    $

    1,249,617

     

    Return on average tangible common equity (non-GAAP)

     

     

    18.76

    %

     

     

    20.83

    %

     

     

    21.19

    %

    Non-GAAP Reconciliation - continued (o):

     

    Three months ended

     

     

    March 31, 2024

     

    December 31, 2023

     

    March 31, 2023

    Calculation of PPNR:

    Net income (GAAP)

     

    $

    65,723

     

    $

    63,505

     

    $

    62,662

    Plus: Income tax provision

     

     

    21,202

     

     

    29,365

     

     

    20,941

    Plus: Provision for credit losses

     

     

    15,138

     

     

    24,816

     

     

    29,011

    PPNR (non-GAAP)

     

    $

    102,063

     

    $

    117,686

     

    $

    112,614

     


    The WSFS Financial Stock at the time of publication of the news with a fall of -1,19 % to 41,50EUR on Lang & Schwarz stock exchange (25. April 2024, 22:12 Uhr).


    Business Wire (engl.)
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    WSFS Reports 1Q 2024 ROA of 1.28% and EPS of $1.09; Annualized Loan Growth of 7%; Reflects Balance Sheet Strength and Diverse Business Model WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today announced its financial results for the first quarter of 2024. Selected financial results and metrics are as follows: (Dollars in millions, except per share data)     …