WSFS Financial Corporation (Nasdaq: WSFS), the parent company of
WSFS Bank, today announced its financial results for the third
quarter of 2023.
Selected financial results and metrics are as follows:
(Dollars in millions, except per share
data)
3Q 2023
2Q 2023
3Q 2022
Net interest income
$
182.6
$
181.8
$
176.8
Fee revenue
72.7
66.9
62.7
Total net revenue
255.3
248.7
239.5
Provision for credit losses
18.4
15.8
7.5
Noninterest expense
139.7
141.3
132.9
Net income attributable to WSFS
74.2
68.7
73.4
Pre-provision net revenue (PPNR)(1)
115.6
107.5
106.6
Earnings per share (EPS) (diluted)
1.22
1.12
1.16
Return on average assets (ROA) (a)
1.45
%
1.36
%
1.44
%
Return on average equity (ROE) (a)
12.6
11.8
12.4
Fee revenue as % of total net revenue
28.4
26.8
26.1
Efficiency ratio
54.6
56.7
55.4
See “Notes”
GAAP results for the quarterly periods shown included the
following items that are excluded from core results.
3Q 2023
2Q 2023
3Q 2022
(Dollars in millions, except per share
data)
Total (pre-tax)
Per share
(after-tax)
Total
(pre-tax)
Per share
(after-tax)
Total
(pre-tax)
Per share
(after-tax)
Visa derivative valuation
adjustment(2)
$
0.8
$
0.01
$
0.6
$
0.01
$
2.3
$
0.03
Corporate development and restructuring
expense
0.1
—
2.8
0.03
2.6
0.03
(1) As used in this press release, PPNR is
a non-GAAP financial measure that adjusts net income determined in
accordance with GAAP to exclude the impacts of (i) income tax
provision and (ii) provision for credit losses. For a
reconciliation of this and other non-GAAP financial measures to
their comparable GAAP measures, see "Non-GAAP Reconciliation" at
the end of the press release.
(2) The Visa derivative valuation
adjustment relates to our derivative liability established from the
sale of 360,000 Visa Class B shares in 2Q 2020. The adjustment
represents an expense to increase the liability and is included in
Other income on the Summary Statements of Income.
CEO Commentary
Rodger Levenson, Chairman, President and CEO, said, "Our 3Q
operating results reflect the continued optimization of the
significant franchise investment over the past several years.
Revenue growth was highlighted by solid quarterly loan growth of
3%, a NIM of 4.08%, and strong performance across our major fee
businesses.
"While the Greater Philadelphia and Delaware regional economy
continues to demonstrate resiliency, we anticipate continued
uncertainty in the near-term outlook. In that regard, our balance
sheet remains strong with an ACL coverage of 1.28%, significant
liquidity capacity, and all regulatory capital ratios above
“well-capitalized” levels.
"During the quarter, we were pleased to announce the expansion
of our Wealth Management business in southern Delaware and the
establishment of a new presence in Boca Raton, Florida with the
acquisition of a registered investment advisory firm's business
based in Rehoboth Beach, Delaware.
"In addition, WSFS was honored to be voted reader's pick as the
Best Bank For Customer Service in 2023 in South Jersey Biz
Magazine. This recognition is another tribute to our over 2,200
Associates who live our Mission: We Stand For Service every
day."
Highlights for 3Q 2023:
- Core EPS(3) was $1.23 flat from 3Q 2022.
- Core ROA(3) was 1.46% compared to 1.52% for 3Q 2022.
- Core PPNR(3) of $116.4 million, or 2.28% of average assets(3)
compared to $111.4 million and 2.18%, respectively, for 3Q
2022.
- Net loan growth of 3% (11% annualized) from 2Q 2023 driven by
growth across the commercial portfolio and our consumer partnership
with Spring EQ.
- Customer deposits decreased by $363.3 million, or 2% (9%
annualized) for the quarter, driven by a $306.1 million decrease
primarily in transactional trust deposits, which tend to be large
and short-term in nature.
- Net interest margin of 4.08% compared to 4.11% for 2Q 2023,
reflects increasing deposit betas, partially offset by higher loan
yields.
- Core fee revenue (noninterest income)(3) was a record $73.4
million, an increase of $6.0 million across all major business
lines, or 9% (not annualized), compared to 2Q 2023.
- Total net credit costs were $18.2 million, driven by overall
net loan growth and portfolio migration. The ACL coverage ratio was
1.28%, flat from 2Q 2023.
- WSFS Bank capital ratios remain significantly above
"well-capitalized" levels, with total risk-based capital of 14.43%
and Common Equity Tier 1 of 13.26%.
- WSFS repurchased 386,900 shares of common stock at an average
price of $40.67 per share, totaling an aggregate of $15.7 million.
The Board of Directors also approved a quarterly cash dividend of
$0.15 per share.
(3) As used in this press release, core EPS, core ROA, core PPNR,
core PPNR as a percent of average assets, and core fee revenue
(noninterest income) are non-GAAP financial measures. These
non-GAAP financial measures exclude certain pre-tax adjustments and
the tax impact of such adjustments. For a reconciliation of these
and other non-GAAP financial measures to their comparable GAAP
measures, see "Non-GAAP Reconciliation" at the end of the press
release.
Third Quarter 2023 Discussion of Financial Results
Balance Sheet
The following table summarizes loan and lease balances and
composition at September 30, 2023 compared to June 30, 2023 and
September 30, 2022:
Loans and Leases
(Dollars in millions)
September 30, 2023
June 30, 2023
September 30, 2022
Commercial & industrial (C&I)
$
4,590
37
%
$
4,533
37
%
$
4,445
38
%
Commercial mortgage
3,646
29
3,553
29
3,280
28
Construction
1,043
8
955
7
1,028
9
Commercial small business leases
606
5
590
5
535
5
Total commercial loans and leases
9,885
79
9,631
78
9,288
80
Residential mortgage
873
7
847
7
802
7
Consumer
1,957
15
1,905
16
1,677
14
ACL
(176
)
(1
)
(172
)
(1
)
(146
)
(1
)
Net loans and leases
$
12,539
100
%
$
12,211
100
%
$
11,621
100
%
At September 30, 2023, WSFS’ net loan and lease portfolio
increased $328.0 million, or 3% (11% annualized), when compared
with June 30, 2023 due to increases of $92.9 million in commercial
mortgage, $88.3 million in construction loans, $56.7 million in
C&I, $51.9 million in consumer loans, primarily from Spring EQ
(home equity loans), and $15.6 million in NewLane (commercial small
business leases).
In line with our 2022-2024 Strategic Plan, the C&I portfolio
(including owner-occupied real estate) continued to be our largest
portfolio at 37% of net loans and leases. Additionally, our total
commercial loan and lease portfolio continues to represent a
majority of our lending portfolio at 79% of net loans and
leases.
Net loans and leases at September 30, 2023 increased $918.2
million, or 8%, when compared with September 30, 2022. The increase
was driven by increases of $365.3 million in commercial mortgage,
$280.0 million in consumer loans, primarily from Spring EQ, $144.9
million in C&I, and $71.0 million in NewLane.
The following table summarizes customer deposit balances and
composition at September 30, 2023 compared to June 30, 2023 and
September 30, 2022:
Customer Deposits
(Dollars in millions)
September 30, 2023
June 30, 2023
September 30, 2022
Noninterest demand
$
4,913
31
%
$
5,462
34
%
$
6,171
37
%
Interest-bearing demand
3,028
19
2,969
18
3,462
21
Savings
1,681
10
1,815
11
2,266
14
Money market
4,560
29
4,375
27
3,740
22
Total core deposits
14,182
89
14,621
90
15,639
94
Customer time deposits
1,715
11
1,640
10
1,063
6
Total customer deposits
$
15,897
100
%
$
16,261
100
%
$
16,702
100
%
Total customer deposits decreased $363.3 million, or 2% (9%
annualized), when compared with June 30, 2023, driven by a $306.1
million decrease primarily in transactional trust deposits, which
tend to be large and short-term in nature.
Customer deposits decreased by $804.8 million from September 30,
2022 primarily driven by customer utilization of excess liquidity
and $312.5 million lower transactional trust deposits.
Our deposit base remains highly diverse, with more than half of
our customer deposits, or 55%, from our Commercial, Small Business
and Wealth Management customer relationships. The loan to deposit
ratio(4) was 79% at September 30, 2023, reflecting continued
capacity to fund future loan growth. Our total protected
deposits(5) were 72% of total customer deposits.
Core deposits were a strong 89% of total customer deposits, and
no- and low-cost checking accounts represented a robust 50% of
total customer deposits at September 30, 2023, with a weighted
average cost of 35bps for the quarter.
(4) Ratio of net loans and leases to total customer deposits. (5)
Protected deposits include collateralized and FDIC insured
deposits.
Net Interest Income
Three Months Ending
(Dollars in millions)
September 30, 2023
June 30, 2023
September 30, 2022
Net interest income before purchase
accretion
$
178.8
$
178.5
$
172.7
Purchase accounting accretion
3.8
3.3
4.1
Net interest income
$
182.6
$
181.8
$
176.8
Net interest margin before purchase
accretion
4.00
%
4.03
%
3.90
%
Purchase accounting accretion
0.08
0.08
0.09
Net interest margin
4.08
%
4.11
%
3.99
%
Net interest income increased $0.8 million, or less than 1% (not
annualized), compared to 2Q 2023 and increased $5.8 million, or 3%,
compared to 3Q 2022, primarily due to the benefits of our
asset-sensitive balance sheet, partially offset by increasing
deposit betas.
Net interest margin decreased 3bps from 2Q 2023, primarily due
to increasing deposit betas, partially offset by higher loan
yields. Net interest margin increased 9bps from 3Q 2022, primarily
due to the benefits of our asset-sensitive balance sheet.
Total loan yields were 6.92%, an increase of 13bps compared to
2Q 2023. Total customer deposit costs were 1.38%, an increase of
22bps compared to 2Q 2023 and customer interest-bearing deposit
costs were 2.05%, an increase of 30bps compared to 2Q 2023.
Asset Quality
The following table summarizes asset quality metrics as of and
for the period ended September 30, 2023 compared to June 30, 2023
and September 30, 2022.
(Dollars in millions)
September 30, 2023
June 30, 2023
September 30, 2022
Problem assets (6)
$
543.4
$
465.3
$
472.9
Nonperforming assets
57.8
33.5
37.3
Delinquencies
110.8
72.8
69.3
Net charge-offs
14.3
13.1
3.2
Total net credit costs (recoveries)
(r)
18.2
16.4
8.5
Problem assets to total Tier 1 capital
plus ACL
23.61
%
20.14
%
23.17
%
Classified assets to total Tier 1 capital
plus ACL
16.11
15.37
15.14
Ratio of nonperforming assets to total
assets
0.29
0.16
0.19
Ratio of nonperforming assets (excluding
accruing TDRs) to total assets
—
—
0.10
Delinquencies to gross loans
0.87
0.59
0.59
Ratio of quarterly net charge-offs to
average gross loans
0.45
0.43
0.11
Ratio of allowance for credit losses to
total loans and leases (q)
1.28
1.28
1.14
Ratio of allowance for credit losses to
nonaccruing loans
306
521
755
See “Notes”
While overall asset quality metrics remained near historically
favorable levels, leading indicators reflected the impact of the
slowing economy. Problem assets to total Tier 1 capital plus ACL
ratio increased to 23.61% from June 30, 2023 due to downgrades in
the Construction, Commercial Mortgage - Office, and C&I
portfolios. Delinquencies increased $38.0 million, or 28 bps of
gross loans compared to June 30, 2023 largely due to two
multi-family loans and one healthcare loan. Total delinquencies to
gross loans were 87 bps.
Nonperforming assets increased $24.2 million, or 13 bps of total
assets compared to June 30, 2023 primarily driven by two unrelated
C&I loans that experienced significant operational
challenges.
Net charge-offs were $14.3 million, or 0.45% (annualized) of
average gross loans during the quarter. Approximately 60% of these
charge-offs can be attributed to the Upstart and NewLane
portfolios, while the remaining charge-offs were mainly linked to
the loans mentioned above.
Total net credit costs were $18.2 million in the quarter
compared to $16.4 million in 2Q 2023. The ACL was $176.0 million as
of September 30, 2023, an increase of $4.1 million from June 30,
2023. The increases in net credit costs and ACL from the prior
quarter were due to overall net loan growth. The ACL coverage ratio
was 1.28%, flat from June 30, 2023.
(6) Problem assets includes all criticized, classified, and
nonperforming loans as well as other real estate owned (OREO).
Core Fee Revenue
Fees continue to be resilient and well-diversified among various
sources, including Wealth Management, Cash Connect®, traditional
and other banking fees, capital markets and mortgage banking. Core
fee revenue (noninterest income) of $73.4 million increased $6.0
million, or 9% (not annualized), compared to 2Q 2023, driven by
increases of $2.0 million in core banking across consumer
partnerships and BOLI income, $1.9 million in capital markets
income, which can be uneven from period to period depending on
market drivers, $1.2 million in Cash Connect® and $1.0 million in
Wealth Management fees driven by Institutional Trust and Private
Wealth Management.
Core fee revenue increased $8.5 million, or 13%, compared to 3Q
2022. The increase was primarily driven by a $5.8 million increase
in Cash Connect®, $3.8 million in Wealth Management fees, and $2.8
million in capital markets fees, partially offset by a decrease of
$3.7 million in core banking fees from lower returns on derivative
collateral as a result of funding optimization and lower income
from our consumer partnerships.
For 3Q 2023, our core fee revenue ratio(7) was 28.6% compared to
27.0% in 2Q 2023 and 26.8% in 3Q 2022.
(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 $139.6 million increased $1.1
million, or 1% (not annualized), compared to 2Q 2023. The increase
is primarily due to $2.1 million in salaries and benefits and $1.0
million from Cash Connect® partially offset by decreases of $1.5
million in professional fees and $0.6 million in occupancy
expenses.
Core noninterest expense increased $9.3 million, or 7%, compared
to 3Q 2022. The increase is primarily due to $6.9 million in higher
variable operating costs, driven by higher Cash Connect® funding
costs from the rising interest rate environment, and $2.2 million
from salaries and benefits.
Our core efficiency ratio(8) was 54.4% in 3Q 2023, compared to
55.5% in 2Q 2023 and 53.8% in 3Q 2022.
Income Taxes
We recorded a $22.9 million income tax provision in 3Q 2023,
compared to $23.0 million in 2Q 2023 and $25.8 million in 3Q
2022.
The effective tax rate was 23.6% in 3Q 2023 compared to 25.1% in
2Q 2023 and 26.0% in 3Q 2022. The decrease in effective tax rate
for 3Q 2023 compared to 2Q 2023 was primarily driven by favorable
tax benefits projected from our Low Income Housing Tax Credit
(LIHTC) investments and state taxes. The decrease in effective tax
rate for 3Q 2023 compared to 3Q 2022 was primarily due to the
favorable tax benefits described above and the impact of a discrete
state tax item associated with the sale of the BMT Insurance
Advisors business in 2022.
(8) As used in this press release, core noninterest expense and
core efficiency ratio are non-GAAP financial measures. These
non-GAAP financial measures exclude certain pre-tax adjustments and
the tax impact of such adjustments. For a reconciliation of these
and other non-GAAP financial measures to their comparable GAAP
measures, see "Non-GAAP Reconciliation" at the end of the press
release.
Capital Management
Capital levels remain strong and are all substantially in excess
of the “well-capitalized” regulatory benchmarks at September 30,
2023 with WSFS Bank’s Tier 1 leverage ratio of 10.72%, Common
Equity Tier 1 capital ratio and Tier 1 capital ratio of 13.26%, and
Total Risk-based capital ratio of 14.43%.
WSFS’ total stockholders’ equity decreased $71.9 million, or 3%
(not annualized), during 3Q 2023. The decrease was primarily due to
a decline in accumulated other comprehensive income (AOCI) of
$124.7 million driven by market-value declines on investment
securities due to the rising interest rate environment, capital
returns of $24.9 million to stockholders, comprising $15.7 million
from share repurchases and $9.2 million from quarterly dividends,
and was partially offset by quarterly earnings of $74.2
million.
WSFS’ tangible common equity(9) decreased $76.1 million, or 6%
(not annualized), compared to June 30, 2023. WSFS’ common equity to
assets ratio was 11.19% at September 30, 2023, and our tangible
common equity to tangible assets ratio(9) decreased by 27bps during
the quarter to 6.49%, primarily due to the reasons described
above.
At September 30, 2023, book value per share was $36.93, a
decrease of $0.96, or 3% (not annualized), from June 30, 2023, and
tangible common book value per share(9) was $20.33, a decrease of
$1.12, or 5% (not annualized), from June 30, 2023.
During 3Q 2023, WSFS repurchased 386,900 shares of common stock
for an aggregate of $15.7 million. As of September 30, 2023, WSFS
has 5,582,593 shares, or approximately 9% of outstanding shares,
remaining to repurchase under its current authorizations.
The Board of Directors approved a quarterly cash dividend of
$0.15 per share of common stock. This dividend will be paid on
November 17, 2023 to stockholders of record as of November 3,
2023.
(9) As used in this press release, tangible common equity, tangible
common equity to tangible assets ratio and tangible common book
value per share are non-GAAP financial measures. These non-GAAP
financial measures exclude goodwill and intangible assets and the
related tax-effected amortization. For a reconciliation of these
and other non-GAAP financial measures to their comparable GAAP
measures, see "Non-GAAP Reconciliation" at the end of the press
release.
Selected Business Segments (included in previous
results):
Wealth Management
The Wealth Management segment provides a broad array of planning
and advisory services, investment management, trust services,
credit and deposit products to individual, corporate, and
institutional clients through multiple integrated businesses.
Selected quarterly performance results and metrics are as
follows:
(Dollars in millions)
September 30, 2023
June 30, 2023
September 30, 2022
Net interest income
$
21.1
$
21.5
$
15.1
(Recovery of) provision for credit
losses
(0.1
)
(0.5
)
—
Fee revenue
33.3
32.9
29.9
Noninterest expense(10)
24.5
24.3
24.2
Pre-tax income
30.0
30.5
20.9
Performance
Metrics
Trust fee revenue (Institutional Services
and BMT of DE)
$
18.5
$
17.5
$
16.1
Private wealth management fee revenue
14.5
14.4
13.0
AUM/AUA(11)
77,560
67,877
61,393
Wealth Management pre-tax income decreased $0.5 million compared
to 2Q 2023. The decrease was primarily attributable to a higher
recovery of credit losses during the prior quarter. Fee revenue
increased $0.4 million, or 1%, from 2Q 2023, primarily due to
continued growth in Institutional Services. Total noninterest
expense increased $0.2 million compared to 2Q 2023.
Wealth Management pre-tax income increased $9.1 million compared
to 3Q 2022, driven by higher net interest income and fee revenue in
Institutional Services and Private Wealth Management. Fee revenue
increased $3.4 million compared to 3Q 2022 due to account growth in
Institutional Services and AUM in Private Wealth Management. Total
noninterest expense increased $0.3 million compared to 3Q 2022.
Net AUM of $8.1 billion at the end of 3Q 2023 was flat compared
to 2Q 2023, and increased $0.8 billion compared to 3Q 2022. AUM
balances over the period were primarily impacted by returns in
broader equity and fixed income markets.
(10) Includes intercompany allocation of expense and excludes
provision for credit losses. (11) Represents Assets Under
Management and Assets Under Administration.
Cash Connect®
Cash Connect® is a premier provider of ATM vault cash, smart
safe and cash logistics services in the United States, servicing
non-bank ATMs and smart safes nationwide and supporting ATMs for
WSFS Bank Customers with one of the largest branded ATM networks in
our region.
Selected quarterly financial results and metrics are as
follows:
(Dollars in millions)
September 30, 2023
June 30, 2023
September 30, 2022
Net revenue(12)
$
18.0
$
17.0
$
12.8
Noninterest expense(13)
16.9
16.0
10.8
Pre-tax income
1.1
0.9
2.0
Performance
Metrics
Cash managed
$
1,517
$
1,632
$
1,706
Number of serviced non-bank ATMs and smart
safes
33,860
34,325
34,285
Number of WSFS owned and branded ATMs
592
679
611
ROA
0.87
%
0.72
%
0.99
%
Cash Connect® net revenue increased $1.0 million from 2Q 2023
driven by higher smart safe and managed services volume, the rising
interest rate environment, and funding source optimization (offset
by higher external funding expense). Noninterest expense increased
$0.9 million compared to 2Q 2023 driven by higher external funding
expense and armored carrier expense year-over-year.
Pre-tax income increased $0.2 million compared to 2Q 2023,
driven by higher smart safe and managed services volume. ROA
increased 15bps from 2Q 2023 primarily due to the same reasons.
Net Revenue increased $5.2 million and noninterest expense
increased $6.1 million compared to 3Q 2022 due to the reasons
described above.
Pre-tax income decreased $0.9 million compared to 3Q 2022 driven
by increased insurance-related expense and personnel expense. ROA
decreased 12bps from 3Q 2022 with lower pre-tax income.
At the end of 3Q 2023, Cash Connect® had approximately $1.5
billion in cash managed with 19% year-over-year growth in smart
safe units. Cash Connect® continues to focus on investment in its
growing product lines and expand these services across the country,
alongside a wide network and strong pipeline of channel partners,
retailers, and top-tier financial institutions.
(12) Includes intercompany allocation of income and net interest
income. (13) Includes intercompany allocation of expense.
Third Quarter 2023 Earnings Release Conference Call
Management will conduct a conference call to review 3Q 2023
results at 1:00 p.m. Eastern Time (ET) on Tuesday, October 24,
2023. Interested parties may access the conference call live on our
Investor Relations website (https://investors.wsfsbank.com). For
those who cannot access the live conference call, a replay will be
accessible shortly after the event concludes through our Investor
Relations website.
About WSFS Financial Corporation
WSFS Financial Corporation is a multibillion-dollar financial
services company. Its primary subsidiary, WSFS Bank, is the oldest
and largest locally-headquartered bank and trust company in the
Greater Philadelphia and Delaware region. As of September 30, 2023,
WSFS Financial Corporation had $20.0 billion in assets on its
balance sheet and $77.6 billion in assets under management and
administration. WSFS operates from 116 offices, 88 of which are
banking offices, located in Pennsylvania (59), 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 recent bank failures and other economic and industry
volatility, including potential increased regulatory requirements
and costs and potential impacts to macroeconomic conditions;
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; 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; the credit risk
associated with the substantial amount of commercial real estate,
construction and land development, and commercial and industrial
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 discontinued publication
of London Inter-Bank Offered Rate (LIBOR) and the transition to
Secured Overnight Financing Rate (SOFR) as an alternative reference
interest rate; the success of the Company's growth plans, including
its plans to grow the commercial small business leasing,
residential, small business and Small Business Administration (SBA)
portfolios and wealth management business; 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; failure of the
financial and operational controls of the Company's Cash Connect®
and/or Wealth Management divisions; 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
widespread remote working arrangements; the Company's ability to
recruit and retain key Associates; the effects of problems
encountered by other financial institutions that adversely affect
the Company or the banking industry generally; 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 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
interaction of the risks discussed above; and other risks and
uncertainties, including those discussed in the Company's Form 10-K
for the year ended December 31, 2022, the Company's Form 10-Q for
the quarterly period ended March 31, 2023, the Company's Form 10-Q
for the quarterly period ended June 30, 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
Nine months ended
(Dollars in thousands, except per share
data)
September 30, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Interest income:
Interest and fees on loans
$
218,903
$
207,884
$
152,887
$
620,511
$
401,110
Interest on mortgage-backed securities
26,654
27,130
28,338
81,310
78,828
Interest and dividends on investment
securities
2,180
2,182
1,981
6,599
4,642
Other interest income
3,402
4,573
3,359
10,871
6,142
251,139
241,769
186,565
719,291
490,722
Interest expense:
Interest on deposits
57,255
50,054
6,643
142,501
13,537
Interest on Federal Home Loan Bank
advances
167
1,597
42
5,135
42
Interest on senior and subordinated
debt
2,453
2,334
2,061
7,360
5,939
Interest on trust preferred borrowings
1,764
1,635
951
4,954
2,146
Interest on other borrowings
6,898
4,307
37
12,365
54
68,537
59,927
9,734
172,315
21,718
Net interest income
182,602
181,842
176,831
546,976
469,004
Provision for credit losses
18,414
15,830
7,454
63,255
34,693
Net interest income after provision for
credit losses
164,188
166,012
169,377
483,721
434,311
Noninterest income:
Credit/debit card and ATM income
14,869
14,430
10,993
42,660
27,446
Investment management and fiduciary
revenue
32,720
32,379
29,504
95,575
90,877
Deposit service charges
6,534
6,277
6,262
18,850
18,158
Mortgage banking activities, net
1,254
1,304
1,420
3,680
6,529
Loan and lease fee income
1,621
1,190
1,425
4,183
4,457
Unrealized (loss) gain on equity
investment, net
(5
)
—
—
(9
)
5,988
Bank-owned life insurance income
1,697
760
195
3,967
674
Other income
13,978
10,531
12,852
33,760
41,125
72,668
66,871
62,651
202,666
195,254
Noninterest expense:
Salaries, benefits and other
compensation
74,453
72,367
72,294
219,669
211,413
Occupancy expense
9,529
10,132
9,699
30,069
30,393
Equipment expense
10,563
10,810
9,913
31,165
30,674
Data processing and operations expense
4,867
4,771
5,362
14,362
16,009
Professional fees
4,612
6,118
3,561
15,169
12,285
Marketing expense
2,049
2,165
2,082
5,930
4,985
FDIC expenses
2,534
2,863
1,540
7,979
4,399
Loan workout and other credit costs
(189
)
536
1,001
292
1,103
Corporate development expense
113
2,796
1,248
3,649
41,679
Restructuring expense
—
(26
)
1,344
(787
)
22,792
Other operating expenses
31,158
28,721
24,873
86,490
65,691
139,689
141,253
132,917
413,987
441,423
Income before taxes
97,167
91,630
99,111
272,400
188,142
Income tax provision
22,904
23,035
25,767
66,880
49,929
Net income
74,263
68,595
73,344
205,520
138,213
Less: Net income (loss) attributable to
noncontrolling interest
97
(83
)
(38
)
272
287
Net income attributable to WSFS
$
74,166
$
68,678
$
73,382
$
205,248
$
137,926
Diluted earnings per share of common
stock:
$
1.22
$
1.12
$
1.16
$
3.34
$
2.15
Weighted average shares of common stock
outstanding for fully diluted EPS
61,039,317
61,414,273
63,227,983
61,367,802
64,282,992
See “Notes”
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited) -
continued
Three months ended
Nine months ended
September 30, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Performance Ratios:
Return on average assets (a)
1.45
%
1.36
%
1.44
%
1.36
%
0.89
%
Return on average equity (a)
12.64
11.81
12.40
11.89
7.41
Return on average tangible common equity
(a)(o)
23.19
21.66
22.78
22.03
13.27
Net interest margin (a)(b)
4.08
4.11
3.99
4.15
3.46
Efficiency ratio (c)
54.64
56.71
55.37
55.12
66.33
Noninterest income as a percentage of
total net revenue (b)
28.42
26.85
26.10
26.98
29.34
See “Notes”
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(Dollars in thousands)
September 30, 2023
June 30, 2023
September 30, 2022
Assets:
Cash and due from banks
$
260,200
$
723,034
$
443,104
Cash in non-owned ATMs
345,754
386,176
582,784
Investment securities,
available-for-sale
3,691,541
3,954,918
4,153,615
Investment securities,
held-to-maturity
1,068,871
1,079,768
1,121,895
Other investments
39,466
40,309
54,742
Net loans and leases (e)(f)(l)
12,539,062
12,211,112
11,620,866
Bank owned life insurance
101,424
101,108
101,061
Goodwill and intangibles
1,008,472
1,004,278
1,016,413
Other assets
986,202
884,988
890,907
Total assets
$
20,040,992
$
20,385,691
$
19,985,387
Liabilities and
Stockholders’ Equity:
Noninterest-bearing deposits
$
4,913,517
$
5,462,461
$
6,170,776
Interest-bearing deposits
10,983,747
10,798,060
10,531,250
Total customer deposits
15,897,264
16,260,521
16,702,026
Brokered deposits
89,105
167,435
23,182
Total deposits
15,986,369
16,427,956
16,725,208
Other borrowings
917,833
899,493
374,367
Other liabilities
901,412
750,858
784,981
Total liabilities
17,805,614
18,078,307
17,884,556
Stockholders’ equity of WSFS
2,242,795
2,314,659
2,103,593
Noncontrolling interest
(7,417
)
(7,275
)
(2,762
)
Total stockholders' equity
2,235,378
2,307,384
2,100,831
Total liabilities and stockholders'
equity
$
20,040,992
$
20,385,691
$
19,985,387
Capital Ratios:
Equity to asset ratio
11.19
%
11.35
%
10.53
%
Tangible common equity to tangible asset
ratio (o)
6.49
6.76
5.73
Common equity Tier 1 capital (required:
4.5%; well capitalized: 6.5%) (g)
13.26
13.68
12.38
Tier 1 leverage (required: 4.00%;
well-capitalized: 5.00%) (g)
10.72
10.83
9.76
Tier 1 risk-based capital (required:
6.00%; well-capitalized: 8.00%) (g)
13.26
13.68
12.38
Total risk-based capital (required: 8.00%;
well-capitalized: 10.00%) (g)
14.43
14.85
13.34
Asset Quality Indicators:
Nonperforming assets:
Nonaccruing loans (t)
$
57,460
$
33,003
$
19,369
Troubled debt restructurings
(accruing)
—
—
17,108
Assets acquired through foreclosure
298
527
840
Total nonperforming assets
$
57,758
$
33,530
$
37,317
Past due loans (h)
$
14,357
$
13,571
$
24,754
Troubled loans
78,186
51,129
—
Allowance for credit losses
175,996
171,877
146,205
Ratio of nonperforming assets to total
assets
0.29
%
0.16
%
0.19
%
Ratio of nonperforming assets (excluding
accruing TDRs) to total assets
—
—
0.10
Ratio of allowance for credit losses to
total loans and leases (q)
1.28
1.28
1.14
Ratio of allowance for credit losses to
nonaccruing loans
306
521
755
Ratio of quarterly net charge-offs to
average gross loans (a)(e)(i)(n)
0.45
0.43
0.11
Ratio of year-to-date net charge-offs to
average gross loans (a)(e)(i)(n)
0.43
0.41
0.11
See “Notes”
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
AVERAGE BALANCE SHEET (Unaudited)
(Dollars in thousands)
Three months ended
September 30, 2023
June 30, 2023
September 30, 2022
Average
Balance
Interest &
Dividends
Yield/
Rate
(a)(b)
Average
Balance
Interest &
Dividends
Yield/
Rate
(a)(b)
Average
Balance
Interest &
Dividends
Yield/
Rate
(a)(b)
Assets:
Interest-earning assets:
Loans: (e) (j)
Commercial loans and leases (p)
$
5,107,501
$
90,098
7.01
%
$
5,051,292
$
86,073
6.85
%
$
4,895,972
$
67,060
5.45
%
Commercial real estate loans (s)
4,611,968
82,040
7.06
4,484,162
78,018
6.98
4,262,599
53,096
4.94
Residential mortgage
841,510
10,698
5.09
804,390
9,384
4.67
769,151
8,379
4.36
Consumer loans
1,940,418
34,972
7.15
1,907,294
33,508
7.05
1,594,673
23,384
5.82
Loans held for sale
54,072
1,095
8.03
45,766
901
7.90
66,103
968
5.81
Total loans and leases
12,555,469
218,903
6.92
12,292,904
207,884
6.79
11,588,498
152,887
5.24
Mortgage-backed securities (d)
4,602,107
26,654
2.32
4,766,207
27,130
2.28
5,243,169
28,338
2.16
Investment securities (d)
364,565
2,180
2.64
370,530
2,182
2.62
361,113
1,981
2.57
Other interest-earning assets
251,273
3,402
5.37
345,791
4,573
5.30
460,124
3,359
2.90
Total interest-earning assets
$
17,773,414
$
251,139
5.61
%
$
17,775,432
$
241,769
5.46
%
$
17,652,904
$
186,565
4.21
%
Allowance for credit losses
(173,052
)
(170,968
)
(143,943
)
Cash and due from banks
277,780
255,590
242,734
Cash in non-owned ATMs
363,131
387,889
603,780
Bank owned life insurance
101,411
101,031
100,863
Other noninterest-earning assets
1,922,080
1,872,610
1,779,411
Total assets
$
20,264,764
$
20,221,584
$
20,235,749
Liabilities and stockholders’
equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand
$
2,955,613
$
7,156
0.96
%
$
3,039,257
$
6,525
0.86
%
$
3,370,158
$
2,179
0.26
%
Savings
1,750,809
1,521
0.34
1,873,572
1,342
0.29
2,287,227
185
0.03
Money market
4,499,909
34,639
3.05
4,137,867
27,898
2.70
3,833,113
2,907
0.30
Customer time deposits
1,661,885
12,828
3.06
1,578,615
10,597
2.69
1,083,290
1,230
0.45
Total interest-bearing customer
deposits
10,868,216
56,144
2.05
10,629,311
46,362
1.75
10,573,788
6,501
0.24
Brokered deposits
88,594
1,111
4.98
307,515
3,692
4.82
24,184
142
2.33
Total interest-bearing deposits
10,956,810
57,255
2.07
10,936,826
50,054
1.84
10,597,972
6,643
0.25
Federal Home Loan Bank advances
11,576
167
5.72
123,297
1,597
5.20
4,979
42
3.35
Trust preferred borrowings
90,557
1,764
7.73
90,511
1,635
7.25
90,361
951
4.18
Senior and subordinated debt
218,304
2,453
4.49
218,247
2,334
4.28
248,332
2,061
3.32
Other borrowed funds
604,156
6,898
4.53
390,576
4,307
4.42
39,745
37
0.37
Total interest-bearing liabilities
$
11,881,403
$
68,537
2.29
%
$
11,759,457
$
59,927
2.04
%
$
10,981,389
$
9,734
0.35
%
Noninterest-bearing demand deposits
5,248,931
5,458,676
6,319,755
Other noninterest-bearing liabilities
813,858
674,300
589,817
Stockholders’ equity of WSFS
2,327,853
2,332,147
2,347,178
Noncontrolling interest
(7,281
)
(2,996
)
(2,390
)
Total liabilities and equity
$
20,264,764
$
20,221,584
$
20,235,749
Excess of interest-earning assets over
interest-bearing liabilities
$
5,892,011
$
6,015,975
$
6,671,515
Net interest and dividend income
$
182,602
$
181,842
$
176,831
Interest rate spread
3.32
%
3.42
%
3.86
%
Net interest margin
4.08
%
4.11
%
3.99
%
See “Notes”
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
(Dollars in thousands, except per share
data)
Three months ended
Nine months ended
Stock Information:
September 30, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Market price of common stock:
High
$45.40
$40.54
$51.76
$51.77
$56.30
Low
35.02
29.59
37.40
29.59
37.03
Close
36.50
37.72
46.46
36.50
46.46
Book value per share of common stock
36.93
37.89
33.96
Tangible common book value per share of
common stock (o)
20.33
21.45
17.55
Number of shares of common stock
outstanding (000s)
60,728
61,093
61,949
Other Financial Data:
One-year repricing gap to total assets
(k)
0.41%
2.50%
8.82%
Weighted average duration of the MBS
portfolio
6.0 years
5.8 years
6.0 years
Unrealized losses on securities available
for sale, net of taxes
$(678,413)
$(550,890)
$(597,734)
Number of Associates (FTEs) (m)
2,224
2,219
2,150
Number of offices (branches, LPO’s,
operations centers, etc.)
116
114
119
Number of WSFS owned and branded ATMs
592
679
611
Notes:
(a)
Annualized.
(b)
Computed on a fully
tax-equivalent basis.
(c)
Noninterest expense divided by
(tax-equivalent) net interest income and noninterest income.
(d)
Includes securities
held-to-maturity (at amortized cost) and securities
available-for-sale (at fair value).
(e)
Net of unearned income.
(f)
Net of allowance for credit
losses.
(g)
Represents capital ratios of
Wilmington Savings Fund Society, FSB and subsidiaries. Capital
Ratios for the current quarter are to be considered preliminary
until the Call Reports are filed.
(h)
Accruing loans which are
contractually past due 90 days or more as to principal or interest.
Balance includes student loans, which are 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, leases and held-to-maturity securities.
(r)
Includes provision for credit
losses, loan workout expenses, OREO expenses and other credit
costs.
(s)
Includes commercial mortgage and
commercial construction loans.
(t)
Includes nonaccruing troubled
loans beginning in 2023 and nonaccruing troubled debt
restructurings prior to 2023.
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
(Dollars in thousands, except per share data)
(Unaudited)
Non-GAAP Reconciliation (o):
Three months ended
Nine months ended
September 30, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Net interest income (GAAP)
$
182,602
$
181,842
$
176,831
$
546,976
$
469,004
Core net interest income (non-GAAP)
182,602
181,842
176,831
546,976
469,004
Noninterest income (GAAP)
72,668
66,871
62,651
202,666
195,254
(Plus)/less: Unrealized (loss) gain on
equity investments, net
(5
)
—
—
(9
)
5,988
Plus: Visa derivative valuation
adjustment
(750
)
(552
)
(2,285
)
(1,855
)
(2,285
)
Core fee revenue (non-GAAP)
$
73,423
$
67,423
$
64,936
$
204,530
$
191,551
Core net revenue (non-GAAP)
$
256,025
$
249,265
$
241,767
$
751,506
$
660,555
Core net revenue
(non-GAAP)(tax-equivalent)
$
256,412
$
249,633
$
242,327
$
752,904
$
661,771
Noninterest expense (GAAP)
$
139,689
$
141,253
$
132,917
$
413,987
$
441,423
Less: Corporate development expense
113
2,796
1,248
3,649
41,679
(Plus)/less: Restructuring expense
—
(26
)
1,344
(787
)
22,792
Core noninterest expense (non-GAAP)
$
139,576
$
138,483
$
130,325
$
411,125
$
376,952
Core efficiency ratio (non-GAAP)
54.4
%
55.5
%
53.8
%
54.6
%
57.0
%
Core fee revenue ratio (non-GAAP) (b)
28.6
%
27.0
%
26.8
%
27.2
%
28.9
%
End of period
September 30, 2023
June 30, 2023
September 30, 2022
Total assets (GAAP)
$
20,040,992
$
20,385,691
$
19,985,387
Less: Goodwill and other intangible
assets
1,008,472
1,004,278
1,016,413
Total tangible assets (non-GAAP)
$
19,032,520
$
19,381,413
$
18,968,974
Total stockholders’ equity of WSFS
(GAAP)
$
2,242,795
$
2,314,659
$
2,103,593
Less: Goodwill and other intangible
assets
1,008,472
1,004,278
1,016,413
Total tangible common equity
(non-GAAP)
$
1,234,323
$
1,310,381
$
1,087,180
Tangible common book value per
share:
Book value per share (GAAP)
$
36.93
$
37.89
$
33.96
Tangible common book value per share
(non-GAAP)
20.33
21.45
17.55
Tangible common equity to tangible
assets:
Equity to asset ratio (GAAP)
11.19
%
11.35
%
10.53
%
Tangible common equity to tangible assets
ratio (non-GAAP)
6.49
6.76
5.73
Non-GAAP Reconciliation - continued
(o):
Three months ended
Nine months ended
September 30, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
GAAP net income attributable to WSFS
$
74,166
$
68,678
$
73,382
$
205,248
$
137,926
Plus/(less): Pre-tax adjustments:
Unrealized (loss)/gain on equity investments, net, Visa derivative
valuation adjustment, and corporate development and restructuring
expense
868
3,322
4,877
4,726
60,768
(Plus)/less: Tax impact of pre-tax
adjustments
(232
)
(798
)
(750
)
(1,293
)
(13,294
)
Adjusted net income (non-GAAP)
attributable to WSFS
$
74,802
$
71,202
$
77,509
$
208,681
$
185,400
GAAP return on average assets (ROA)
1.45
%
1.36
%
1.44
%
1.36
%
0.89
%
Plus/(less): Pre-tax adjustments:
Unrealized (loss)/gain on equity investments, net, Visa derivative
valuation adjustment, and corporate development and restructuring
expense
0.02
0.07
0.10
0.03
0.39
(Plus)/less: Tax impact of pre-tax
adjustments
(0.01
)
(0.02
)
(0.02
)
(0.01
)
(0.08
)
Core ROA (non-GAAP)
1.46
%
1.41
%
1.52
%
1.38
%
1.20
%
Earnings per share (diluted) (GAAP)
$
1.22
$
1.12
$
1.16
$
3.34
$
2.15
Plus/(less): Pre-tax adjustments:
Unrealized (loss)/gain on equity investments, net, Visa derivative
valuation adjustment, and corporate development and restructuring
expense
0.01
0.05
0.08
0.08
0.95
(Plus)/less: Tax impact of pre-tax
adjustments
—
(0.01
)
(0.01
)
(0.02
)
(0.22
)
Core earnings per share (non-GAAP)
$
1.23
$
1.16
$
1.23
$
3.40
$
2.88
Calculation of return on average
tangible common equity:
GAAP net income attributable to WSFS
$
74,166
$
68,678
$
73,382
$
205,248
$
137,926
Plus: Tax effected amortization of
intangible assets
2,984
2,884
2,906
8,748
8,827
Net tangible income (non-GAAP)
$
77,150
$
71,562
$
76,288
$
213,996
$
146,753
Average stockholders’ equity of WSFS
$
2,327,853
$
2,332,147
$
2,347,178
$
2,307,002
$
2,489,860
Less: Average goodwill and intangible
assets
1,007,803
1,006,972
1,018,592
1,008,463
1,011,306
Net average tangible common equity
$
1,320,050
$
1,325,175
$
1,328,586
$
1,298,539
$
1,478,554
Return on average tangible common
equity (non-GAAP)
23.19
%
21.66
%
22.78
%
22.03
%
13.27
%
Non-GAAP Reconciliation - continued
(o):
Three months ended
Nine months ended
September 30, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Calculation of PPNR:
Net income (GAAP)
$
74,263
$
68,595
$
73,344
$
205,520
$
138,213
Plus: Income tax provision
22,904
23,035
25,767
66,880
49,929
Plus: Provision for credit losses
18,414
15,830
7,454
63,255
34,693
PPNR (non-GAAP)
$
115,581
$
107,460
$
106,565
$
335,655
$
222,835
Plus/(less): Pre-tax adjustments:
Unrealized (loss)/gain on equity investments, net, Visa derivative
valuation adjustment, and corporate development and restructuring
expense
868
3,322
4,877
4,726
60,768
Core PPNR (non-GAAP)
$
116,449
$
110,782
$
111,442
$
340,381
$
283,603
Calculation of core PPNR to average
assets:
Core PPNR (non-GAAP)
$
116,449
$
110,782
$
111,442
$
340,381
$
283,603
Total average assets
20,264,764
20,221,584
20,235,749
20,163,889
20,661,638
Core PPNR to average assets
2.28
%
2.20
%
2.18
%
2.26
%
1.84
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231023730959/en/
Investor Relations Contact: Andrew Basile (302) 504-9857;
abasile@wsfsbank.com Media Contact: Rebecca Acevedo (215) 253-5566;
racevedo@wsfsbank.com
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