WSFS Reports 3Q 2024 ROA of 1.22% and EPS of $1.08; Results Reflect Continued Loan, Deposit, and Fee Revenue Growth
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
“Despite muted demand, our results were highlighted by annualized loan growth of 5% driven by our commercial, consumer, and residential mortgage portfolios. In addition, deposits grew 3% on an annualized basis primarily due to seasonal municipal deposit inflows.
“Our diverse fee businesses also continued to perform solidly. During the quarter, we completed the conversions of our trust accounting system and client portal in our Wealth Management business. These conversions were executed as part of our
“Total net credit costs increased modestly compared to the prior quarter with a decrease in the provision for credit losses offset by an increase in reserves for unfunded loan commitments. The negative migration in credit metrics includes two existing problem commercial loans (office-related and hotel) which moved to nonperforming assets in the quarter.
“While the 50 basis point decrease in the Fed Funds Rate in mid-September had a minimal impact on 3Q results, we have updated our full year 2024 Outlook in our Earnings Release Supplement to reflect this change.
“We look forward to finishing 2024 strong and as always I want to extend my sincere thanks to our 2,300 Associates who work tirelessly to serve our Customers, Communities and each other every day.”
(2) As used in this press release, core ROA and core EPS are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release. |
Highlights for 3Q 2024:
- Core ROA was 1.22%, compared to 1.25% for 2Q 2024.
-
Core EPS was
$1.08 , flat from 2Q 2024.
- Gross loan growth of 1% (5% annualized) from 2Q 2024 driven by growth in commercial, consumer, and residential mortgage.
-
Customer deposits increased 1% (3% annualized) compared to 2Q 2024, driven by seasonal increases in municipal deposits and continued increases in customer time deposits, partially offset by expected outflows in
Wealth and Trust deposits.
- Net interest margin of 3.78%, compared to 3.85% for 2Q 2024, reflects higher deposit costs and slightly lower asset yields.
-
Core fee revenue (noninterest income)(3) of
$90.1 million , increased$4.1 million , or 5% (not annualized), compared to 2Q 2024, driven by revenue from our partnership with Spring EQ and growth in Cash Connect®.
-
Total net credit costs were
$20.1 million , compared to$18.5 million for 2Q 2024. Provision for credit losses was$18.4 million , a decline of$1.4 million from the prior quarter, which was offset by increases in loan workout costs and reserves for unfunded commitments.
-
WSFS repurchased 266,672 shares of common stock at an average price of
$51.82 per share, totaling an aggregate of$13.8 million . Tangible common book value (TBV) per share(3) increased by$3.36 to$28.56 . The Board of Directors approved a quarterly cash dividend of$0.15 per share.
(3) As used in this press release, core fee revenue (noninterest income) and TBV per share are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release. |
Third Quarter 2024 Discussion of Financial Results
Balance Sheet
The following table summarizes loan and lease balances and composition at
Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(Dollars in millions) |
|
|
|
|
|
|
|||||||||||||||
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
Consumer loans increased
Gross loans and leases at
The following table summarizes customer deposit balances and composition at
Customer Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
( Dollars in millions) |
|
|
|
|
|
|
||||||||||||
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 51% of customer deposits coming from the Commercial, Small Business, and
Core deposits were 87% of total customer deposits, with a weighted average cost of 159bps for the quarter. Small mix changes continued this quarter with no- and low-cost checking accounts representing 47% of total customer deposits with a weighted average cost of 46bps for the quarter.
(4) Ratio of net loans and leases to total customer deposits. |
Net Interest Income
|
Three Months Ending |
|||||||||||
( Dollars in millions) |
|
|
|
|
|
|
||||||
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 7.07%, a decrease of 2bps when compared to 2Q 2024. Total customer deposit costs were 1.95%, an increase of 6bps, while interest-bearing customer deposit costs were 2.79%, an increase of 10bps compared to the prior quarter. The deposit cost increase was driven by growth in higher-priced deposits as we saw opportunities to deepen existing relationships and attract new business.
Net interest margin decreased 7bps from 2Q 2024, mainly due to growth in municipal and higher priced deposits as described above (3bps), as well as slightly lower asset yields, which were partially driven by market-value increases on available-for-sale investment securities (2bps). Net interest margin decreased 30bps from 3Q 2023, primarily driven by continued deposit mix shift and growth in higher priced deposit products over the past year.
To mitigate asset sensitivity, WSFS completed a previously announced
Asset Quality
The following table summarizes asset quality metrics as of and for the period ended
(Dollars in millions) |
|
|
|
|
|
||||||
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 30.11%, an increase of 311bps compared to
(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
Core fee revenue increased
For 3Q 2024, our core fee revenue ratio(6) was 33.6% compared to 33.0% in 2Q 2024 and 28.6% in 3Q 2023. Fee revenue is a competitive differentiator providing a well-diversified source of revenue with further growth opportunities expected.
(6) As used in this press release, core fee revenue ratio is a non-GAAP financial measure. This non-GAAP financial measure excludes certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release. |
Core Noninterest Expense(7)
Core noninterest expense of
Core noninterest expense increased
Our core efficiency ratio(7) was 61.1% in 3Q 2024, compared to 59.8% in 2Q 2024 and 54.4% in 3Q 2023.
Income Taxes
We recorded a
The effective tax rate was 24.7% in 3Q 2024 compared to 23.5% in 2Q 2024 and 23.6% in 3Q 2023. The increase in effective tax rate for 3Q 2024 compared to 2Q 2024 was primarily driven by higher state taxes along with higher solar tax credit investment benefits in the second quarter. The increase in effective tax rate when compared to 3Q 2023 is attributable to an increase in state taxes. On a year-to-date basis, the effective tax rate was 24.2% in 2024 compared to 24.6% for the same period in 2023.
(7) As used in this press release, core noninterest expense and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release. |
Capital Management
Capital levels remain strong and are all substantially in excess of the “well-capitalized” regulatory benchmarks at
WSFS’ total stockholders’ equity increased
WSFS’ tangible common equity(8) increased
At
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) |
|
|
|
|
|
|
||||
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 |
|
|
|
|
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)
|
Cash Connect®
Cash Connect
®
is a premier provider of ATM vault cash, smart safe and cash logistics services in
Selected quarterly financial results and metrics are as follows:
(Dollars in millions) |
|
|
|
|
|
|
||||||
Net revenue(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 24%, compared to 3Q 2023, primarily driven by an increase in bailment ATMs, partially offset by a decrease in lower margin reconciliation-only ATMs.
(11) Includes intercompany allocation of income and net interest income. |
(12) Includes intercompany allocation of expense. |
Third Quarter 2024 Earnings Release Conference Call
Management will conduct a conference call to review 3Q 2024 results at
About
Forward-Looking Statements
This press release contains estimates, predictions, opinions, projections and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. The words “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, difficult market conditions and unfavorable economic trends in
The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any duty to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company for any reason, except as specifically required by law. As used in this press release, the terms "WSFS," "the Company," "registrant," "we," "us," and "our" mean
|
||||||||||||||||||||
|
|
Three months ended |
|
Nine months ended |
||||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
||||||||||
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 |
|
|
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 |
|
|
|
|
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” |
|
|||||||||||||||
|
|
Three months ended |
|
Nine months ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
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” |
|
||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
||||||
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 |
|
|
|
|
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 |
|
|
|
|
43,158 |
|
|
|
22,306 |
|
|
|
— |
|
Other borrowings |
|
|
1,032,003 |
|
|
|
1,119,949 |
|
|
|
917,833 |
|
Other liabilities |
|
|
736,002 |
|
|
|
832,837 |
|
|
|
901,412 |
|
Total liabilities |
|
|
18,238,194 |
|
|
|
18,266,173 |
|
|
|
17,805,614 |
|
Stockholders’ equity of WSFS |
|
|
2,678,264 |
|
|
|
2,489,580 |
|
|
|
2,242,795 |
|
Noncontrolling interest |
|
|
(11,249 |
) |
|
|
(11,223 |
) |
|
|
(7,417 |
) |
Total stockholders' equity |
|
|
2,667,015 |
|
|
|
2,478,357 |
|
|
|
2,235,378 |
|
Total liabilities and stockholders' equity |
|
$ |
20,905,209 |
|
|
$ |
20,744,530 |
|
|
$ |
20,040,992 |
|
Capital Ratios: |
|
|
|
|
|
|
||||||
Equity to asset ratio |
|
|
12.81 |
% |
|
|
12.00 |
% |
|
|
11.19 |
% |
Tangible common equity to tangible asset ratio (o) |
|
|
8.47 |
|
|
|
7.56 |
|
|
|
6.49 |
|
Common equity Tier 1 capital (required: 4.5%; well capitalized: 6.5%) (g) |
|
|
13.46 |
|
|
|
13.07 |
|
|
|
13.26 |
|
Tier 1 leverage (required: 4.00%; well-capitalized: 5.00%) (g) |
|
|
10.68 |
|
|
|
10.44 |
|
|
|
10.72 |
|
Tier 1 risk-based capital (required: 6.00%; well-capitalized: 8.00%) (g) |
|
|
13.46 |
|
|
|
13.07 |
|
|
|
13.26 |
|
Total risk-based capital (required: 8.00%; well-capitalized: 10.00%) (g) |
|
|
14.71 |
|
|
|
14.32 |
|
|
|
14.43 |
|
Asset Quality Indicators: |
|
|
|
|
|
|
||||||
Nonperforming assets: |
|
|
|
|
|
|
||||||
Nonaccruing loans (t) |
|
$ |
90,039 |
|
|
$ |
64,034 |
|
|
$ |
57,460 |
|
Assets acquired through foreclosure |
|
|
1,301 |
|
|
|
1,342 |
|
|
|
298 |
|
Total nonperforming assets |
|
$ |
91,340 |
|
|
$ |
65,376 |
|
|
$ |
57,758 |
|
Past due loans (h) |
|
$ |
31,714 |
|
|
$ |
9,798 |
|
|
$ |
14,357 |
|
Troubled loans (u) |
|
|
166,754 |
|
|
|
133,080 |
|
|
|
78,186 |
|
Allowance for credit losses |
|
|
197,497 |
|
|
|
198,260 |
|
|
|
175,996 |
|
Ratio of nonperforming assets to total assets |
|
|
0.44 |
% |
|
|
0.32 |
% |
|
|
0.29 |
% |
Ratio of allowance for credit losses to total loans and leases (q) |
|
|
1.48 |
|
|
|
1.51 |
|
|
|
1.39 |
|
Ratio of allowance for credit losses to nonaccruing loans |
|
|
219 |
|
|
|
310 |
|
|
|
306 |
|
Ratio of quarterly net charge-offs to average gross loans (a)(e)(i)(n) |
|
|
0.58 |
|
|
|
0.44 |
|
|
|
0.45 |
|
Ratio of year-to-date net charge-offs to average gross loans (a)(e)(i)(n) |
|
|
0.43 |
|
|
|
0.35 |
|
|
|
0.43 |
|
See “Notes” |
|
||||||||||||||||||||||||||||||
(Dollars in thousands) |
|
Three months ended |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
Average
|
|
Interest &
|
|
Yield/
|
|
Average
|
|
Interest &
|
|
Yield/
|
|
Average
|
|
Interest &
|
|
Yield/
|
||||||||||||
Assets: |
||||||||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||||||||
Loans: (e) (j) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans and leases (p) |
|
$ |
5,246,721 |
|
|
$ |
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 |
|
|
|
|
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” |
|
||||||||||
(Dollars in thousands, except per share data) |
|
Three months ended |
|
Nine months ended |
||||||
Stock Information: |
|
|
|
|
|
|
|
|
|
|
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)% |
|
0.41% |
|
|
|
|
Weighted average duration of the MBS portfolio |
|
5.7 years |
|
5.7 years |
|
6.0 years |
|
|
|
|
Unrealized losses on securities available for sale, net of taxes |
|
|
|
|
|
|
|
|
|
|
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 |
(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. |
|
||||||||||||||||||||
Non-GAAP Reconciliation (o): |
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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): |
|
|
— |
|
|
|
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: |
|
|
— |
|
|
|
(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 |
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets (GAAP) |
|
$ |
20,905,209 |
|
|
$ |
20,744,530 |
|
|
$ |
20,040,992 |
|
|
|
|
|
||||
Less: |
|
|
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: |
|
|
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 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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, |
|
|
(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, |
|
|
— |
|
|
|
(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, |
|
|
— |
|
|
|
(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 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
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:
(302) 504-9857; abasile@wsfsbank.com
Media Contact:
(215) 864-1795; kbabcock@wsfsbank.com
Source: