WSFS Financial Corporation (Nasdaq: WSFS), the parent company of
WSFS Bank, today announced its financial results for the second
quarter of 2023.
Selected financial results and metrics are as follows:
(Dollars in millions, except per share
data)
2Q 2023
1Q 2023
2Q 2022
Net interest income
$
181.8
$
182.5
$
153.6
Fee revenue
66.9
63.1
72.0
Total net revenue
248.7
245.7
225.6
Provision for credit losses
15.8
29.0
8.3
Noninterest expense
141.3
133.0
134.0
Net income attributable to WSFS
68.7
62.4
60.7
Pre-provision net revenue (PPNR)(1)
107.5
112.6
91.6
Earnings per share (EPS) (diluted)
1.12
1.01
0.94
Return on average assets (ROA) (a)
1.36
%
1.27
%
1.17
%
Return on average equity (ROE) (a)
11.8
11.2
10.1
Fee revenue as % of total net revenue
26.8
25.6
31.9
Efficiency ratio
56.7
54.0
59.3
See “Notes”
GAAP results for the quarterly periods shown below included the
following items that are excluded from core results.
2Q 2023
1Q 2023
2Q 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)
Unrealized gain on equity investments,
net
$
—
$
—
$
—
$
—
$
6.0
$
0.07
Visa derivative valuation
adjustment(2)
0.6
0.01
0.6
0.01
—
—
Corporate development and restructuring
expense
2.8
0.03
—
—
10.3
0.15
(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, "We were
pleased with our 2Q operating results which continued to reflect
the strength and diversity of our business model. This included
solid loan and deposit growth, a NIM of 4.11%, and strong
performance across our major fee businesses.
"Our balance sheet remains strong with stable credit metrics, an
ACL coverage ratio of 1.28%, significant liquidity capacity, and
capital levels above well-capitalized, even when including the
effective AOCI(3) from the total investment portfolio.
"WSFS continues to serve our Customers and Communities. On June
14th, we held our first-ever 'We Stand for Service Day', during
which approximately 1,200 of our Associates provided nearly 5,000
hours of service to more than 80 nonprofit and community
organizations across the Greater Philadelphia, Southern New Jersey
and Delaware region.
"In addition, we were honored to be named a 2023 honoree of The
Civic 50 Greater Philadelphia by the Philadelphia Foundation, in
partnership with Points of Light and other local partners, for the
second year in a row. This honor recognizes WSFS as one of the 50
most community-minded companies in Greater Philadelphia."
(3) As used in this press release,
effective AOCI is a non-GAAP financial measure. 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.
Highlights for 2Q 2023:
- Core EPS(4) was $1.16 compared to $1.02 for 2Q 2022.
- Core ROA(4) was 1.41% compared to 1.27% for 2Q 2022.
- Net loan growth of 2% (6% annualized) from 1Q 2023 driven by
growth across the commercial portfolio and our consumer partnership
with Spring EQ.
- Customer deposits increased by $380.1 million, or 2% (10%
annualized) for the quarter, driven by transactional Trust and
Wealth deposits, and reflecting our highly diverse and
insured/protected deposit portfolio. Noninterest deposits represent
34% of total customer deposits.
- Net interest margin of 4.11% compared to 4.25% for 1Q 2023,
reflects increasing deposit betas, partially offset by higher loan
yields.
- Core fee revenue (noninterest income)(4) was $67.4 million, an
increase of $3.7 million, or 6%, compared to 1Q 2023, resulting in
a 27.0% core fee revenue ratio(4).
- Total net credit costs were $16.4 million, primarily due to
provision driven by overall net loan growth, economic forecast
changes and losses related to two C&I relationships that
resolved during the quarter. The ACL coverage ratio was 1.28%, flat
from 1Q 2023.
- WSFS Bank capital ratios remain well above well-capitalized
levels, with total risk-based capital of 14.84% and CET1 of
13.66%.
- WSFS repurchased 357,278 shares of common stock at an average
price of $38.32 per share, totaling an aggregate of $13.7 million.
The Board of Directors also approved a quarterly cash dividend of
$0.15 per share.
(4) As used in this press release, core
EPS, core ROA, core fee revenue (noninterest income), and core fee
revenue 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.
Second Quarter 2023 Discussion of Financial Results
Balance Sheet
The following table summarizes loan and lease balances and
composition at June 30, 2023 compared to March 31, 2023 and June
30, 2022:
Loans and Leases
(Dollars in millions)
June 30, 2023
March 31, 2023
June 30, 2022
Commercial & industrial (C&I)
$
4,533
37
%
$
4,443
37
%
$
4,444
39
%
Commercial mortgage
3,553
29
3,473
29
3,322
29
Construction
955
7
1,024
8
934
8
Commercial small business leases
590
5
577
5
513
5
Total commercial loans and leases
9,631
78
9,517
79
9,213
81
Residential mortgage
847
7
801
6
808
7
Consumer
1,905
16
1,868
16
1,522
13
ACL
(172
)
(1
)
(169
)
(1
)
(142
)
(1
)
Net loans and leases
$
12,211
100
%
$
12,017
100
%
$
11,401
100
%
At June 30, 2023, WSFS’ net loan and lease portfolio increased
$194.5 million, or 6% (annualized), when compared with March 31,
2023 due to increases of $90.1 million in C&I, $79.7 million in
Commercial Real Estate mortgage, primarily due to construction
loans converting to permanent mortgages, $36.8 million in our
consumer portfolio, primarily from Spring EQ (home equity loans),
and $13.5 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 78% of net loans and
leases.
Net loans and leases at June 30, 2023 increased $809.6 million,
or 7%, when compared with June 30, 2022. The increase was driven by
increases of $382.6 million in our consumer portfolio, primarily
from Spring EQ, $231.1 million in commercial mortgage, $89.0
million in C&I, and $77.3 million in NewLane.
The following table summarizes customer deposit balances and
composition at June 30, 2023 compared to March 31, 2023 and June
30, 2022:
Customer Deposits
(Dollars in millions)
June 30, 2023
March 31, 2023
June 30, 2022
Noninterest demand
$
5,462
34
%
$
5,299
33
%
$
6,552
38
%
Interest-bearing demand
2,969
18
3,159
20
3,396
20
Savings
1,815
11
1,967
13
2,313
13
Money market
4,375
27
4,002
25
3,882
23
Total core deposits
14,621
90
14,427
91
16,143
94
Customer time deposits
1,640
10
1,453
9
1,104
6
Total customer deposits
$
16,261
100
%
$
15,880
100
%
$
17,247
100
%
Total customer deposits increased $380.1 million, or 2% (10%
annualized), when compared with March 31, 2023, primarily driven by
a $267.2 million increase from transactional trust deposits, a
$190.5 million increase in Wealth deposits mainly attributable to
trust referrals, partially offset by a $53.8 million decrease in
municipal deposits.
Customer deposits decreased by $1.0 billion from June 30, 2022
primarily driven by customer utilization of excess liquidity and
$226.9 million lower transactional trust deposits.
More than half of our customer deposits, or 55%, are from our
Commercial, Small Business and Wealth Management customer
relationships. The loan to deposit ratio(5) was 75% at June 30,
2023, reflecting continued capacity to fund future loan growth. Our
total protected deposits(6) were 72% of total customer
deposits.
Core deposits were a strong 90% of total customer deposits, and
no- and low-cost checking accounts represented a robust 52% of
total customer deposits, at June 30, 2023, with a weighted average
cost of 31bps for the quarter. These core deposits predominantly
represent longer-term, less price-sensitive customer
relationships.
(5) Ratio of net loans and leases to total
customer deposits.
(6) Protected deposits include collateralized and FDIC insured
deposits.
Net Interest Income
Three Months Ending
(Dollars in millions)
June 30, 2023
March 31, 2023
June 30, 2022
Net interest income before purchase
accretion
$
178.5
$
179.1
$
148.4
Purchase accounting accretion
3.3
3.4
5.2
Net interest income
$
181.8
$
182.5
$
153.6
Net interest margin before purchase
accretion
4.03
%
4.17
%
3.29
%
Purchase accounting accretion
0.08
0.08
0.11
Net interest margin
4.11
%
4.25
%
3.40
%
Net interest income decreased $0.7 million, or less than 1%,
compared to 1Q 2023, primarily due to increasing deposit betas,
partially offset by higher loan yields. Net interest income
increased $28.2 million, or 18%, compared to 2Q 2022, primarily due
to the benefits of our asset-sensitive balance sheet, partially
offset by funding mix.
Net interest margin decreased 14bps from 1Q 2023 and increased
71bps from 2Q 2022, primarily due to the reasons noted above.
Total loan yields were 6.79%, an increase of 26 bps compared to
1Q 2023. Total customer deposit costs were 1.16%, an increase of 36
bps compared to 1Q 2023 and customer interest-bearing deposit costs
were 1.75%, an increase of 51 bps compared to 1Q 2023.
Asset Quality
The following table summarizes asset quality metrics as of and
for the period ended June 30, 2023 compared to March 31, 2023 and
June 30, 2022.
(Dollars in millions)
June 30, 2023
March 31, 2023
June 30, 2022
Problem assets
$
465.3
$
416.7
$
567.5
Nonperforming assets
33.5
33.1
33.9
Delinquencies
72.8
100.5
59.5
Net charge-offs
13.1
11.7
2.6
Total net credit costs (recoveries)
(r)
16.4
29.0
8.0
Problem assets to total Tier 1 capital
plus ACL
20.14
%
18.65
%
26.24
%
Classified assets to total Tier 1 capital
plus ACL
15.37
15.38
16.65
Ratio of nonperforming assets to total
assets
0.16
0.16
0.16
Ratio of nonperforming assets (excluding
accruing TDRs) to total assets
—
—
0.10
Delinquencies to gross loans
0.59
0.83
0.52
Ratio of quarterly net charge-offs to
average gross loans
0.43
0.40
0.09
Ratio of allowance for credit losses to
total loans and leases (q)
1.28
1.28
1.13
Ratio of allowance for credit losses to
nonaccruing loans
521
528
676
See “Notes”
Asset quality metrics remained relatively stable during the
quarter and continued to reflect the strength of the originated and
acquired portfolios. Total problem assets(7) increased $48.6
million compared to 1Q 2023. Total problem assets to total Tier 1
capital plus ACL increased 149 bps compared to 1Q 2023.
Delinquencies to gross loans decreased to 0.59% at June 30, 2023
compared to 0.83% at March 31, 2023, primarily driven by resolution
of a few larger commercial maturities.
The ratio of nonperforming assets to total assets were flat from
March 31, 2023 at 0.16% and remained at historically low levels.
Net charge-offs for 2Q 2023 were $13.1 million, or 0.43%
(annualized) of average gross loans. The increase over prior
quarter was primarily due to losses from two C&I relationships
that experienced significant credit events during the quarter and
the continued portfolio maturation in our NewLane and Upstart
portfolios.
Total net credit costs were $16.4 million in the quarter
compared to $29.0 million in 1Q 2023, as the prior quarter's credit
costs were higher due to the impacts of economic uncertainty and
forecast on provisioning.
The ACL was $171.9 million as of June 30, 2023, an increase of
$2.7 million from March 31, 2023, primarily due to loan growth. The
ACL coverage ratio was 1.28%, flat from March 31, 2023.
(7) Total problem assets includes all
criticized, classified, and nonperforming loans as well as other
real estate owned (OREO).
Core Fee Revenue
Core fee revenue (noninterest income) of $67.4 million increased
$3.7 million, or 6% (not annualized), compared to 1Q 2023,
primarily driven by increases of $1.8 million in Cash Connect®,
$1.7 million in Wealth Management fees and $1.2 million in core
banking fees across consumer partnerships, deposit service charges
and SBA gain on sale. The increase was partially offset by a
decrease of $1.2 million in capital markets fees, which can be
uneven from period to period depending on loan origination volume
and mix and interest rate environment.
Core fee revenue increased $1.4 million, or 2%, compared to 2Q
2022. When excluding the impact from the BMT Insurance Advisors
(BMTIA) business, which was sold at the end of 2Q 2022, core fee
revenue increased $2.6 million, or 4.0%, compared to 2Q 2022. The
increase was primarily driven by an $8.0 million increase in Cash
Connect® fees, partially offset by a decrease of $3.8 million in
core banking fees from lower returns on derivative collateral as a
result of funding optimization and consumer partnerships.
For 2Q 2023, our core fee revenue ratio was 27.0% compared to
25.8% in 1Q 2023 and 30.0% in 2Q 2022. 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 Noninterest Expense(8)
Core noninterest expense of $138.5 million increased $5.4
million, or 4% (not annualized), compared to 1Q 2023. When
excluding a $2.3 million net benefit from nonrecurring items from
1Q 2023, core noninterest expense increased $3.1 million, or 2%
(not annualized). The increase is primarily due to $1.7 million
from professional fees, $1.0 million from equipment expenses, and
$0.9 million from Cash Connect® funding costs driven by the rising
interest rate environment.
Core noninterest expense increased $14.8 million, or 12%,
compared to 2Q 2022. The increase is primarily due to $6.2 million
in higher variable operating costs, $4.2 million from salaries and
benefits, and $1.4 million from FDIC insurance assessment. Our core
efficiency ratio was 55.5% in 2Q 2023, compared to 53.9% in 1Q 2023
and 56.2% in 2Q 2022.
Income Taxes
We recorded a $23.0 million income tax provision in 2Q 2023,
compared to a $20.9 million income tax provision in 1Q 2023 and
$22.4 million in 2Q 2022.
The effective tax rate was 25.1% in 2Q 2023, compared to 25.0%
in 1Q 2023 and 26.9% in 2Q 2022. The decrease in effective tax rate
for 2Q 2023 compared to 2Q 2022 was primarily due to discrete tax
expense of $1.4 million related to nondeductible goodwill written
off during the sale of the BMTIA business in 2Q 2022. Excluding
this item, our 2Q 2022 effective tax rate was 25.2%.
(8) As used in this press release, core
noninterest expense is a non-GAAP financial measure. This non-GAAP
financial measure excludes corporate development and restructuring
expense. 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.
Capital Management
Capital levels remain strong and are all substantially in excess
of the “well-capitalized” regulatory benchmarks at June 30, 2023
with WSFS Bank’s Tier 1 leverage ratio of 10.83%, Common Equity
Tier 1 capital ratio and Tier 1 capital ratio of 13.66%, and Total
Risk-based capital ratio of 14.84%.
WSFS’ total stockholders’ equity increased $8.3 million, or less
than 1% (not annualized), during 2Q 2023. The increase was
primarily due to quarterly earnings of $68.7 million, partially
offset by a decline in accumulated other comprehensive income
(AOCI) of $37.6 million from market-value declines on investment
securities and capital returns of $22.9 million to stockholders
comprising $13.7 million from share repurchases and $9.2 million
from quarterly dividends.
WSFS’ tangible common equity(9) increased $12.3 million, or 1%
(not annualized), compared to March 31, 2023. WSFS’ common equity
to assets ratio was 11.35% at June 30, 2023, and our tangible
common equity to tangible assets ratio(9) increased by 4bps during
the quarter to 6.76%, primarily due to the reasons described
above.
At June 30, 2023, book value per share was $37.89, an increase
of $0.32, or 1% (not annualized), from March 31, 2023, and tangible
common book value per share(9) was $21.45, an increase of $0.30, or
1% (not annualized), from March 31, 2023.
During 2Q 2023, WSFS repurchased 357,278 shares of common stock
for an aggregate of $13.7 million. As of June 30, 2023, WSFS has
5,969,493 shares, or approximately 10% 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
August 18, 2023 to stockholders of record as of August 4, 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)
June 30, 2023
March 31, 2023
June 30, 2022
Net interest income
$
21.5
$
17.9
$
10.6
(Recovery of) provision for credit
losses
(0.5
)
1.3
0.3
Fee revenue
32.9
30.9
32.8
Noninterest expense(10)
24.3
24.2
22.8
Pre-tax income
30.5
23.4
20.2
Performance
Metrics
Trust fee revenue (Institutional Services
and BMT of DE)
$
17.5
$
17.0
$
16.0
Private wealth management fee revenue
14.4
13.1
14.8
AUM/AUA(11)
67,877
65,562
60,330
Wealth Management reported pre-tax income of $30.5 million in 2Q
2023 compared to $23.4 million in 1Q 2023, and $20.2 million in 2Q
2022. The quarter-over-quarter increase was primarily attributable
to higher interest income, a seasonal increase in fees associated
with tax preparation and record high revenue in Institutional
Services. The year-over-year increase was mainly from the same
factors.
Fee revenue was $32.9 million in 2Q 2023, compared to $30.9
million in 1Q 2023, an increase of $2.0 million, or 6%, primarily
attributable to tax preparation and continued growth in
Institutional Services. Fee revenue was roughly flat compared to 2Q
2022 as the sale of the BMTIA business in 2Q 2022 offset growth in
Institutional Services fee revenue.
Total noninterest expense was $24.3 million in 2Q 2023, compared
to $24.2 million in 1Q 2023 and $22.8 million in 2Q 2022. These
increases were primarily driven by higher professional fees.
Net AUM of $8.1 billion at the end of 2Q 2023 increased $0.1
billion compared to 1Q 2023, and increased $0.5 billion compared to
2Q 2022. Both increases were primarily impacted by positive returns
in both 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 retail safes nationwide and supports 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)
June 30, 2023
March 31, 2023
June 30, 2022
Net revenue(12)
$
17.0
$
15.5
$
11.6
Noninterest expense(13)
16.0
14.8
9.3
Pre-tax income
0.9
0.6
2.3
Performance
Metrics
Cash managed
$
1,632
$
1,698
$
1,978
Number of serviced non-bank ATMs and
retail safes
34,325
34,067
34,234
Number of WSFS owned and branded ATMs
679
691
617
ROA
0.72
%
0.45
%
1.26
%
Cash Connect® pre-tax income increased $0.3 million compared to
1Q 2023, driven by higher retail safe and managed services volume.
Pre-tax income decreased $1.4 million compared to 2Q 2022, driven
by increased operating costs associated with the rising interest
rate environment and costs associated with the growth in the retail
safe business. ROA of 0.72% in 2Q 2023 increased 27bps from 1Q 2023
and decreased 54bps from 2Q 2022, primarily driven by the reasons
described above.
Net revenue of $17.0 million in 2Q 2023 was up $1.5 million from
1Q 2023 and up $5.3 million from 2Q 2022 driven by higher retail
safe and managed services volume, the rising interest rate
environment, and funding source optimization (offset by higher
external funding expense).
Noninterest expense was $16.0 million in 2Q 2023, an increase of
$1.2 million compared to 1Q 2023, and $6.7 million higher compared
to 2Q 2022, driven by higher external funding expense and armored
carrier expense year-over-year.
At the end of 2Q 2023, Cash Connect® had approximately $1.6
billion in cash managed with 21% year-over-year growth in retail
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, in a commitment to
improve margin and ROA.
(12) Includes intercompany allocation of
income and net interest income.
(13) Includes intercompany allocation of
expense.
Second Quarter 2023 Earnings Release Conference Call
Management will conduct a conference call to review 2Q 2023
results at 1:00 p.m. Eastern Time (ET) on Tuesday, July 25, 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 June 30, 2023, WSFS
Financial Corporation had $20.4 billion in assets on its balance
sheet and $67.9 billion in assets under management and
administration. WSFS operates from 114 offices, 88 of which are
banking offices, located in Pennsylvania (59), Delaware (39), New
Jersey (14), Virginia (1) and Nevada (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, and 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, and inflation; 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 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 the
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, including its acquisition of
BMBC; 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® division; 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
interactions 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, Form 10-Q for the quarter
ended March 31, 2023 and other documents filed by the Company with
the Securities and Exchange Commission from time to time.
The Company cautions readers not to place undue reliance on any
such forward-looking statements, which speak only as of the date
they are made. The Company disclaims any duty to revise or update
any forward-looking statement, whether written or oral, that may be
made from time to time by or on behalf of the Company for any
reason, except as specifically required by law. As used in this
press release, the terms "WSFS," "the Company," "registrant," "we,"
"us," and "our" mean WSFS Financial Corporation and its
subsidiaries, on a consolidated basis, unless the context indicates
otherwise.
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited)
Three months ended
Six months ended
(Dollars in thousands, except per share
data)
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Interest income:
Interest and fees on loans
$
207,884
$
193,724
$
129,342
$
401,608
$
248,223
Interest on mortgage-backed securities
27,130
27,526
27,377
54,656
50,490
Interest and dividends on investment
securities
2,182
2,237
1,340
4,419
2,661
Other interest income
4,573
2,896
1,961
7,469
2,783
241,769
226,383
160,020
468,152
304,157
Interest expense:
Interest on deposits
50,054
35,192
3,766
85,246
6,894
Interest on Federal Home Loan Bank
advances
1,597
3,371
—
4,968
—
Interest on senior and subordinated
debt
2,334
2,573
1,949
4,907
3,878
Interest on trust preferred borrowings
1,635
1,555
682
3,190
1,195
Interest on other borrowings
4,307
1,160
8
5,467
17
59,927
43,851
6,405
103,778
11,984
Net interest income
181,842
182,532
153,615
364,374
292,173
Provision for credit losses
15,830
29,011
8,268
44,841
27,239
Net interest income after provision for
credit losses
166,012
153,521
145,347
319,533
264,934
Noninterest income:
Credit/debit card and ATM income
14,430
13,361
8,772
27,791
16,453
Investment management and fiduciary
revenue
32,379
30,476
31,192
62,855
61,373
Deposit service charges
6,277
6,039
6,071
12,316
11,896
Mortgage banking activities, net
1,304
1,122
2,211
2,426
5,109
Loan and lease fee income
1,190
1,372
1,698
2,562
3,032
Unrealized (loss) gain on equity
investment, net
—
(4
)
5,991
(4
)
5,988
Bank-owned life insurance income
760
1,510
374
2,270
479
Other income
10,531
9,251
15,720
19,782
28,273
66,871
63,127
72,029
129,998
132,603
Noninterest expense:
Salaries, benefits and other
compensation
72,367
72,849
68,189
145,216
139,119
Occupancy expense
10,132
10,408
9,902
20,540
20,694
Equipment expense
10,810
9,792
10,388
20,602
20,761
Data processing and operations expense
4,771
4,724
5,288
9,495
10,647
Professional fees
6,118
4,439
5,273
10,557
8,724
Marketing expense
2,165
1,716
1,637
3,881
2,903
FDIC expenses
2,863
2,582
1,468
5,445
2,859
Loan workout and other credit costs
536
(55
)
(226
)
481
102
Corporate development expense
2,796
740
6,393
3,536
40,431
Restructuring expense
(26
)
(761
)
3,934
(787
)
21,448
Other operating expenses
28,721
26,611
21,803
55,332
40,818
141,253
133,045
134,049
274,298
308,506
Income before taxes
91,630
83,603
83,327
175,233
89,031
Income tax provision
23,035
20,941
22,425
43,976
24,162
Net income
68,595
62,662
60,902
131,257
64,869
Less: Net (loss) income attributable to
noncontrolling interest
(83
)
258
162
175
325
Net income attributable to WSFS
$
68,678
$
62,404
$
60,740
$
131,082
$
64,544
Diluted earnings per share of common
stock:
$
1.12
$
1.01
$
0.94
$
2.13
$
1.00
Weighted average shares of common stock
outstanding for fully diluted EPS
61,414,273
61,678,871
64,283,288
61,526,331
64,696,053
See “Notes”
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited) -
continued
Three months ended
Six months ended
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Performance Ratios:
Return on average assets (a)
1.36
%
1.27
%
1.17
%
1.31
%
0.62
%
Return on average equity (a)
11.81
11.20
10.13
11.51
5.08
Return on average tangible common equity
(a)(o)
21.66
21.19
18.61
21.43
9.14
Net interest margin (a)(b)
4.11
4.25
3.40
4.18
3.20
Efficiency ratio (c)
56.71
54.02
59.29
55.37
72.52
Noninterest income as a percentage of
total net revenue (b)
26.85
25.63
31.86
26.24
31.17
See “Notes”
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
(Continued) SUMMARY STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands)
June 30, 2023
March 31, 2023
June 30, 2022
Assets:
Cash and due from banks
$
723,034
$
686,788
$
1,036,554
Cash in non-owned ATMs
386,176
409,265
633,710
Investment securities,
available-for-sale
3,954,918
4,086,459
4,496,087
Investment securities,
held-to-maturity
1,079,768
1,094,799
1,064,182
Other investments
40,309
73,906
37,527
Net loans and leases (e)(f)(l)
12,211,112
12,016,579
11,401,486
Bank owned life insurance
101,108
100,907
100,515
Goodwill and intangibles
1,004,278
1,008,250
1,019,857
Other assets
884,988
842,337
760,298
Total assets
$
20,385,691
$
20,319,290
$
20,550,216
Liabilities and
Stockholders’ Equity:
Noninterest-bearing deposits
$
5,462,461
$
5,299,094
$
6,551,542
Interest-bearing deposits
10,798,060
10,581,285
10,695,127
Total customer deposits
16,260,521
15,880,379
17,246,669
Brokered deposits
167,435
309,309
22,938
Total deposits
16,427,956
16,189,688
17,269,607
Federal Home Loan Bank advances
—
800,000
—
Other borrowings
899,493
338,206
369,783
Other liabilities
750,858
688,052
597,950
Total liabilities
18,078,307
18,015,946
18,237,340
Stockholders’ equity of WSFS
2,314,659
2,306,362
2,315,360
Noncontrolling interest
(7,275
)
(3,018
)
(2,484
)
Total stockholders' equity
2,307,384
2,303,344
2,312,876
Total liabilities and stockholders'
equity
$
20,385,691
$
20,319,290
$
20,550,216
Capital Ratios:
Equity to asset ratio
11.35
%
11.35
%
11.27
%
Tangible common equity to tangible asset
ratio (o)
6.76
6.72
6.63
Common equity Tier 1 capital (required:
4.5%; well capitalized: 6.5%) (g)
13.66
13.39
13.60
Tier 1 leverage (required: 4.00%;
well-capitalized: 5.00%) (g)
10.83
10.57
10.02
Tier 1 risk-based capital (required:
6.00%; well-capitalized: 8.00%) (g)
13.66
13.39
13.60
Total risk-based capital (required: 8.00%;
well-capitalized: 10.00%) (g)
14.84
14.56
14.57
Asset Quality Indicators:
Nonperforming assets:
Nonaccruing loans (t)
$
33,003
$
32,017
$
21,011
Troubled debt restructurings
(accruing)
—
—
12,484
Assets acquired through foreclosure
527
1,131
358
Total nonperforming assets
$
33,530
$
33,148
$
33,853
Past due loans (h)
$
13,571
$
13,565
$
11,894
Troubled loans
51,129
18,061
—
Allowance for credit losses
171,877
169,171
141,976
Ratio of nonperforming assets to total
assets
0.16
%
0.16
%
0.16
%
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
1.13
Ratio of allowance for credit losses to
nonaccruing loans
521
528
676
Ratio of quarterly net charge-offs to
average gross loans (a)(e)(i)(n)
0.43
0.40
0.09
Ratio of year-to-date net charge-offs to
average gross loans (a)(e)(i)(n)
0.41
0.40
0.10
See “Notes”
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
(Continued) AVERAGE BALANCE SHEET (Unaudited)
(Dollars in thousands)
Three months ended
June 30, 2023
March 31, 2023
June 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)
$
5,051,292
$
86,073
6.85
%
$
4,954,622
$
80,744
6.63
%
$
4,831,874
$
56,950
4.74
%
Commercial real estate loans (s)
4,484,162
78,018
6.98
4,425,354
71,828
6.58
4,238,090
43,448
4.11
Residential mortgage
804,390
9,384
4.67
769,581
8,628
4.48
787,909
8,774
4.45
Consumer loans
1,907,294
33,508
7.05
1,849,398
31,535
6.92
1,463,391
19,232
5.27
Loans held for sale
45,766
901
7.90
43,527
989
9.21
66,502
938
5.66
Total loans and leases
12,292,904
207,884
6.79
12,042,482
193,724
6.53
11,387,766
129,342
4.56
Mortgage-backed securities (d)
4,766,207
27,130
2.28
4,823,507
27,526
2.28
5,292,568
27,377
2.07
Investment securities (d)
370,530
2,182
2.62
376,760
2,237
2.86
285,610
1,340
2.21
Other interest-earning assets
345,791
4,573
5.30
240,943
2,896
4.87
1,206,849
1,961
0.65
Total interest-earning assets
$
17,775,432
$
241,769
5.46
%
$
17,483,692
$
226,383
5.27
%
$
18,172,793
$
160,020
3.54
%
Allowance for credit losses
(170,968
)
(153,181
)
(136,773
)
Cash and due from banks
255,590
230,193
268,485
Cash in non-owned ATMs
387,889
421,057
566,174
Bank owned life insurance
101,031
101,612
100,356
Other noninterest-earning assets
1,872,610
1,919,065
1,766,854
Total assets
$
20,221,584
$
20,002,438
$
20,737,889
Liabilities and stockholders’
equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand
$
3,039,257
$
6,525
0.86
%
$
3,142,930
$
5,024
0.65
%
$
3,348,511
$
941
0.11
%
Savings
1,873,572
1,342
0.29
2,065,212
1,256
0.25
2,281,051
159
0.03
Money market
4,137,867
27,898
2.70
3,861,590
19,258
2.02
3,984,562
1,231
0.12
Customer time deposits
1,578,615
10,597
2.69
1,276,204
5,993
1.90
1,142,139
1,273
0.45
Total interest-bearing customer
deposits
10,629,311
46,362
1.75
10,345,936
31,531
1.24
10,756,263
3,604
0.13
Brokered deposits
307,515
3,692
4.82
346,355
3,661
4.29
35,469
162
1.83
Total interest-bearing deposits
10,936,826
50,054
1.84
10,692,291
35,192
1.33
10,791,732
3,766
0.14
Federal Home Loan Bank advances
123,297
1,597
5.20
267,367
3,371
5.11
—
—
—
Trust preferred borrowings
90,511
1,635
7.25
90,459
1,555
6.97
90,312
682
3.03
Senior and subordinated debt
218,247
2,334
4.28
233,189
2,573
4.41
248,448
1,949
3.14
Other borrowed funds
390,576
4,307
4.42
131,221
1,160
3.59
31,045
8
0.10
Total interest-bearing liabilities
$
11,759,457
$
59,927
2.04
%
$
11,414,527
$
43,851
1.56
%
$
11,161,537
$
6,405
0.23
%
Noninterest-bearing demand deposits
5,458,676
5,560,252
6,631,062
Other noninterest-bearing liabilities
674,300
770,565
543,587
Stockholders’ equity of WSFS
2,332,147
2,260,262
2,404,262
Noncontrolling interest
(2,996
)
(3,168
)
(2,559
)
Total liabilities and equity
$
20,221,584
$
20,002,438
$
20,737,889
Excess of interest-earning assets over
interest-bearing liabilities
$
6,015,975
$
6,069,165
$
7,011,256
Net interest and dividend income
$
181,842
$
182,532
$
153,615
Interest rate spread
3.42
%
3.71
%
3.31
%
Net interest margin
4.11
%
4.25
%
3.40
%
See “Notes”
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS
(Continued) (Unaudited)
(Dollars in thousands, except per share
data)
Three months ended
Six months ended
Stock Information:
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Market price of common stock:
High
$40.54
$51.77
$48.62
$51.77
$56.30
Low
29.59
34.83
37.03
29.59
37.03
Close
37.72
37.61
40.09
37.72
40.09
Book value per share of common stock
37.89
37.57
36.41
Tangible common book value per share of
common stock (o)
21.45
21.15
20.37
Number of shares of common stock
outstanding (000s)
61,093
61,387
63,587
Other Financial Data:
One-year repricing gap to total assets
(k)
2.50%
3.34%
11.31%
Weighted average duration of the MBS
portfolio
5.8 years
6.0 years
6.0 years
Unrealized losses on securities available
for sale, net of taxes
$(550,890)
$(510,522)
$(395,212)
Number of Associates (FTEs) (m)
2,219
2,177
2,209
Number of offices (branches, LPO’s,
operations centers, etc.)
114
119
121
Number of WSFS owned and branded ATMs
679
691
617
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
Six months ended
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Net interest income (GAAP)
$
181,842
$
182,532
$
153,615
$
364,374
$
292,173
Core net interest income (non-GAAP)
181,842
182,532
153,615
364,374
292,173
Noninterest income (GAAP)
66,871
63,127
72,029
129,998
132,603
(Plus)/less: Unrealized (loss) gain on
equity investments, net
—
(4
)
5,991
(4
)
5,988
Plus: Visa derivative valuation
adjustment
(552
)
(553
)
—
(1,105
)
—
Core fee revenue (non-GAAP)
$
67,423
$
63,684
$
66,038
$
131,107
$
126,615
Core net revenue (non-GAAP)
$
249,265
$
246,216
$
219,653
$
495,481
$
418,788
Core net revenue
(non-GAAP)(tax-equivalent)
$
249,633
$
246,859
$
220,095
$
496,492
$
419,444
Noninterest expense (GAAP)
$
141,253
$
133,045
$
134,049
$
274,298
$
308,506
Less: Corporate development expense
2,796
740
6,393
3,536
40,431
(Plus)/less: Restructuring expense
(26
)
(761
)
3,934
(787
)
21,448
Core noninterest expense (non-GAAP)
$
138,483
$
133,066
$
123,722
$
271,549
$
246,627
Core efficiency ratio (non-GAAP)
55.5
%
53.9
%
56.2
%
54.7
%
58.8
%
Core fee revenue ratio (non-GAAP) (b)
27.0
%
25.8
%
30.0
%
26.4
%
30.2
%
End of period
June 30, 2023
March 31, 2023
June 30, 2022
Total assets (GAAP)
$
20,385,691
$
20,319,290
$
20,550,216
Less: Goodwill and other intangible
assets
1,004,278
1,008,250
1,019,857
Total tangible assets (non-GAAP)
$
19,381,413
$
19,311,040
$
19,530,359
Total stockholders’ equity of WSFS
(GAAP)
$
2,314,659
$
2,306,362
$
2,315,360
Less: Goodwill and other intangible
assets
1,004,278
1,008,250
1,019,857
Total tangible common equity
(non-GAAP)
$
1,310,381
$
1,298,112
$
1,295,503
Tangible common book value per
share:
Book value per share (GAAP)
$
37.89
$
37.57
$
36.41
Tangible common book value per share
(non-GAAP)
21.45
21.15
20.37
Tangible common equity to tangible
assets:
Equity to asset ratio (GAAP)
11.35
%
11.35
%
11.27
%
Tangible common equity to tangible assets
ratio (non-GAAP)
6.76
6.72
6.63
Non-GAAP Reconciliation - continued
(o):
Three months ended
Six months ended
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
GAAP net income attributable to WSFS
$
68,678
$
62,404
$
60,740
$
131,082
$
64,544
Plus/(less): Pre-tax adjustments:
Unrealized (loss)/gain on equity investments, net, Visa derivative
valuation adjustment, and corporate development and restructuring
expense
3,322
536
4,336
3,858
55,891
(Plus)/less: Tax impact of pre-tax
adjustments
(798
)
(134
)
334
(976
)
(12,358
)
Adjusted net income (non-GAAP)
attributable to WSFS
$
71,202
$
62,806
$
65,410
$
133,964
$
108,077
GAAP return on average assets (ROA)
1.36
%
1.27
%
1.17
%
1.31
%
0.62
%
Plus/(less): Pre-tax adjustments:
Unrealized (loss)/gain on equity investments, net, Visa derivative
valuation adjustment, and corporate development and restructuring
expense
0.07
0.01
0.08
0.04
0.54
(Plus)/less: Tax impact of pre-tax
adjustments
(0.02
)
(0.01
)
0.02
(0.01
)
(0.12
)
Core ROA (non-GAAP)
1.41
%
1.27
%
1.27
%
1.34
%
1.04
%
Earnings per share (diluted) (GAAP)
$
1.12
$
1.01
$
0.94
$
2.13
$
1.00
Plus/(less): Pre-tax adjustments:
Unrealized (loss)/gain on equity investments, net, Visa derivative
valuation adjustment, and corporate development and restructuring
expense
0.05
0.01
0.07
0.06
0.86
(Plus)/less: Tax impact of pre-tax
adjustments
(0.01
)
—
0.01
(0.01
)
(0.19
)
Core earnings per share (non-GAAP)
$
1.16
$
1.02
$
1.02
$
2.18
$
1.67
Calculation of return on average
tangible common equity:
GAAP net income attributable to WSFS
$
68,678
$
62,404
$
60,740
$
131,082
$
64,544
Plus: Tax effected amortization of
intangible assets
2,884
2,880
2,940
5,764
5,921
Net tangible income (non-GAAP)
$
71,562
$
65,284
$
63,680
$
136,846
$
70,465
Average stockholders’ equity of WSFS
$
2,332,147
$
2,260,262
$
2,404,262
$
2,296,403
$
2,562,384
Less: Average goodwill and intangible
assets
1,006,972
1,010,645
1,032,131
1,008,798
1,007,602
Net average tangible common equity
$
1,325,175
$
1,249,617
$
1,372,131
$
1,287,605
$
1,554,782
Return on average tangible common
equity (non-GAAP)
21.66
%
21.19
%
18.61
%
21.43
%
9.14
%
Non-GAAP Reconciliation - continued
(o):
Three months ended
Six months ended
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Calculation of PPNR:
Net income (GAAP)
$
68,595
$
62,662
$
60,902
$
131,257
$
64,869
Plus: Income tax provision
23,035
20,941
22,425
43,976
24,162
Plus: Provision for credit losses
15,830
29,011
8,268
44,841
27,239
PPNR (non-GAAP)
$
107,460
$
112,614
$
91,595
$
220,074
$
116,270
Plus/(less): Pre-tax adjustments:
Unrealized (loss)/gain on equity investments, net, Visa derivative
valuation adjustment, and corporate development and restructuring
expense
3,322
536
4,336
3,858
55,891
Core PPNR (non-GAAP)
$
110,782
$
113,150
$
95,931
$
223,932
$
172,161
Three months ended
June 30, 2023
Calculation of effective AOCI
Unrealized losses on AFS securities
$
527,781
Unrealized losses on securities
transferred from AFS to HTM
99,945
Unrecognized fair value losses on HTM
securities
73,925
Effective AOCI (non-GAAP)
$
701,651
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230721434694/en/
Investor Relations: Dominic C. Canuso (302) 571-6833;
dcanuso@wsfsbank.com Media: Rebecca Acevedo (215) 253-5566;
racevedo@wsfsbank.com
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