Press Release
WSFS Reports 2Q Net Loss Of $7.1 Million, YTD Net Income of $3.8 Million; 2Q Includes $94.8 Million Provision Driven by COVID-19, $22.1 Million Gain on Visa Class B Sale and Nearly $1 Billion of PPP Loans
FOR ADDITIONAL INFORMATION REGARDING OUR CONTINUED COVID-19 RESPONSE, FINANCIAL IMPACTS AND OUTLOOK, PLEASE REFER TO THE 2Q 2020 EARNINGS RELEASE SUPPLEMENT AVAILABLE IN THE INVESTOR RELATIONS SECTION OF WSFS' WEBSITE (www.wsfsbank.com).
Selected financial results and metrics are as follows:
(Dollars in millions, except per share data) | 2Q 2020 | 1Q 2020 | 2Q 2019 | |||||||||||||
Net interest income | $ | 113.8 | $ | 116.2 | $ | 123.2 | ||||||||||
Fee income | 64.4 | 40.8 | 42.9 | |||||||||||||
Total net revenue | 178.1 | 157.0 | 166.1 | |||||||||||||
Provision for credit losses | 94.8 | 56.6 | 12.2 | |||||||||||||
Noninterest expense | 93.4 | 88.5 | 107.8 | |||||||||||||
Net (loss) income attributable to WSFS | (7.1) | 10.9 | 36.2 | |||||||||||||
Pre-provision net revenue (PPNR)(1) | 84.7 | 68.5 | 58.3 | |||||||||||||
(Loss) earnings per share (diluted) | (0.14) | 0.21 | 0.68 | |||||||||||||
Return on average assets (ROA) | (0.22) | % | 0.36 | % | 1.20 | % | ||||||||||
Return on average equity (ROE) | (1.6) | 2.4 | 8.0 | |||||||||||||
Efficiency ratio | 52.4 | 56.3 | 64.8 |
GAAP results for 2Q 2020 were significantly impacted by deterioration in economic forecasts since
2Q 2020 | 1Q 2020 | 2Q 2019 | ||||||||||||||||||||||||||||||||||
(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) |
||||||||||||||||||||||||||||||
Securities gains | $ | 1.9 | $ | 0.03 | $ | 0.7 | $ | 0.01 | $ | 0.1 | $ | — | ||||||||||||||||||||||||
Unrealized gain on equity investments, net | — | — | 0.7 | 0.01 | 1.0 | 0.01 | ||||||||||||||||||||||||||||||
Realized gain on sale of equity investment, net | 22.1 | 0.35 | — | — | — | — | ||||||||||||||||||||||||||||||
Corporate development and restructuring expense | 2.8 | 0.04 | 1.3 | 0.02 | 15.8 | 0.22 | ||||||||||||||||||||||||||||||
Contribution to |
— | — | 3.0 | 0.04 | — | — |
(1) As used in this press release, PPNR is a non-GAAP financial measure calculated as net revenue before provision for credit losses and net of noninterest expense. For a reconciliation of this and other non-GAAP measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.
CEO Commentary
“Our immediate focus remains on the health, wellbeing, and safety of our Associates, Customers, and our communities. We continue to serve Customers through drive-thru locations and have begun a carefully planned and phased approach to opening previously closed office and banking locations that aligns with Federal and State guidance and is informed by direction from the
“During the quarter we were honored to be ranked #21 in
(2) Core PPNR is a non-GAAP financial measure calculated as core net revenue before provision for credit losses and net of core noninterest expense. For a reconciliation of this and other non-GAAP measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.
Notable Items in the Quarter (all excluded from core results):
- WSFS recorded net realized gains on our equity investments of
$22.1 million (pre-tax), or$0.35 per share (after-tax), from the sale of 360,000 Visa Class B shares, compared with a combined$1.0 million (pre-tax), or approximately$0.01 per share (after-tax), in unrealized gains related to Visa Class B shares and our strategic partnership investment in Spring EQ in 2Q 2019. Since our adoption of ASU 2016-01 in 1Q 2018, cumulative realized and unrealized gains and dividends on Visa Class B shares total$78.0 million on a total portfolio investment of$17.7 million . - WSFS recorded
$2.8 million (pre-tax), or approximately$0.04 per share (after-tax), of corporate development expenses related to our acquisition ofBeneficial Bancorp, Inc. (Beneficial), compared with$15.8 million (pre-tax), or approximately$0.22 per share (after-tax), of corporate development and restructuring expenses in 2Q 2019. The merger-to-date amounts are less than our original expectations. - WSFS realized
$1.9 million (pre-tax), or approximately$0.03 per share (after-tax), in net gains on sales of other securities compared to$0.1 million (pre-tax) in 2Q 2019.
Highlights for 2Q 2020:
- WSFS recorded
$94.8 million of provision expense, which reduced core EPS(3) by$1.49 and core ROA(3) by 2.33%. The allowance for credit losses increased to$232.2 million with a coverage ratio of 2.73% excluding PPP loans and 3.26% when including the remaining credit mark on acquired loans. - Core PPNR was
$63.5 million , or 1.96% of average assets, a decrease of$7.9 million , or 11%, from 1Q 2020 and$9.4 million , or 13% from 2Q 2019 due to the factors described above. Excluding the impact of PPP, core PPNR was$60.5 million in 2Q 2020, or 1.98% of average assets. - PPP loans were
$945.1 million as ofJune 30, 2020 and resulted in$3.0 million of pre-tax, or$0.05 per share, net impact (measured as net interest income from PPP loans less direct PPP expenses) in 2Q 2020. WSFS provided PPP loans for more than 5,400 new and existing WSFS Customers, supporting an estimated 100,000 jobs in our region. - Core net revenue(3) of
$154.2 million decreased$10.8 million , or 7%, from 2Q 2019, including a$9.5 million , or 8%, decrease in core net interest income(3), and a$1.3 million , or 3%, decrease in core fee income (noninterest income)(3) primarily due to the lower interest rate environment. - Core noninterest expense(3) decreased
$1.4 million , or 2%, compared to 2Q 2019 while our core efficiency ratio(3) increased to 58.7% from 55.7% in 2Q 2019 due to decreased net revenue. 2Q 2020 included$3.2 million of increased loan workout and other credit costs compared to 2Q 2019 driven by$3.4 million of unfunded commitment reserve. - WSFS maintained significant excess capital levels with a Common Equity Tier 1 Ratio of 12.68%, including the year-to-date increase in the allowance for credit losses.
- The Board of Directors approved a quarterly cash dividend of
$0.12 per share of common stock consistent with the prior quarter. WSFS continued the temporary suspension of all share repurchases until we have a clearer long-term view of the impact of COVID-19 on the economy and our performance. The current Board authorization allows for the purchase of approximately 15% of outstanding shares.
(3) As used in this press release, core ROA, core EPS, core net revenue, core net interest income, core fee income (noninterest income), core noninterest expense, core PPNR, and core efficiency ratio are non-GAAP financial measures. These non-GAAP measures exclude securities gains, realized/unrealized gains on equity investments, corporate development and restructuring expense, and the contribution to the
Second Quarter 2020 Discussion of Financial Results
Balance Sheet
The following tables summarize loan and customer funding balances and composition at
Loans | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 3,354,007 | 36 | % | $ | 3,412,266 | 40 | % | $ | 3,421,197 | 40 | % | |||||||||||||||||||||||||||||
Commercial real estate (CRE) | 2,165,547 | 24 | 2,223,117 | 26 | 2,280,912 | 27 | |||||||||||||||||||||||||||||||||||
PPP | 945,136 | 10 | — | — | — | — | |||||||||||||||||||||||||||||||||||
Construction | 638,504 | 7 | 626,253 | 8 | 539,559 | 6 | |||||||||||||||||||||||||||||||||||
Commercial small business leases | 213,133 | 2 | 201,753 | 2 | 156,767 | 2 | |||||||||||||||||||||||||||||||||||
Total commercial loans | 7,316,327 | 79 | 6,463,389 | 76 | 6,398,435 | 75 | |||||||||||||||||||||||||||||||||||
Residential mortgage | 1,012,235 | 11 | 1,054,544 | 13 | 1,134,786 | 13 | |||||||||||||||||||||||||||||||||||
Consumer | 1,133,371 | 13 | 1,118,287 | 13 | 1,131,573 | 13 | |||||||||||||||||||||||||||||||||||
Allowance for credit losses | (232,192) | (3) | (139,073) | (2) | (45,364) | (1) | |||||||||||||||||||||||||||||||||||
Net loans | $ | 9,229,741 | 100 | % | $ | 8,497,147 | 100 | % | $ | 8,619,430 | 100 | % | |||||||||||||||||||||||||||||
Customer Funding | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Noninterest demand | $ | 3,188,046 | 30 | % | $ | 2,314,982 | 25 | % | $ | 2,190,180 | 23 | % | |||||||||||||||||||||||||||
Interest-bearing demand | 2,302,484 | 21 | 2,093,388 | 22 | 2,091,719 | 22 | |||||||||||||||||||||||||||||||||
Savings | 1,731,875 | 16 | 1,594,735 | 17 | 1,624,776 | 18 | |||||||||||||||||||||||||||||||||
Money market | 2,333,326 | 22 | 2,149,119 | 23 | 2,005,568 | 22 | |||||||||||||||||||||||||||||||||
Total core deposits | 9,555,731 | 89 | 8,152,224 | 87 | 7,912,243 | 85 | |||||||||||||||||||||||||||||||||
Customer time deposits | 1,228,440 | 11 | 1,272,154 | 13 | 1,359,308 | 15 | |||||||||||||||||||||||||||||||||
Total customer deposits | $ | 10,784,171 | 100 | % | $ | 9,424,378 | 100 | % | $ | 9,271,551 | 100 | % | |||||||||||||||||||||||||||
At
Total customer funding was
Net Interest Income
Three Months Ending | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Net interest income before purchase accretion and PPP | $ | 96,400 | $ | 101,941 | $ | 107,018 | ||||||||||||||||||||||
Purchase accounting accretion | 12,520 | 14,209 | 16,214 | |||||||||||||||||||||||||
Net interest income before PPP | 108,920 | 116,150 | 123,232 | |||||||||||||||||||||||||
PPP | 4,836 | — | — | |||||||||||||||||||||||||
Net interest income | $ | 113,756 | $ | 116,150 | $ | 123,232 | ||||||||||||||||||||||
Net interest margin before purchase accretion and PPP | 3.58 | % | 3.85 | % | 4.07 | % | ||||||||||||||||||||||
Purchase accounting accretion | 0.43 | 0.53 | 0.61 | |||||||||||||||||||||||||
Net interest margin before PPP | 4.01 | 4.38 | 4.68 | |||||||||||||||||||||||||
PPP (excluding income and interest-earning assets) | (0.08) | — | — | |||||||||||||||||||||||||
Net interest margin | 3.93 | % | 4.38 | % | 4.68 | % |
Net interest income decreased
Net interest income decreased
Credit Quality
Credit quality metrics at
Delinquencies were lower compared to 1Q 2020 and 2Q 2019 reflecting the impact of
Provision for credit losses was
The following table summarizes credit quality metrics as of and for the period ended
(Dollars in millions) | |||||||||||||
Problem assets | $ | 568.5 | $ | 221.9 | $ | 219.7 | |||||||
Nonperforming assets | 44.9 | 38.1 | 55.5 | ||||||||||
Delinquencies | 48.4 | 59.8 | 67.5 | ||||||||||
Net charge-offs | 1.6 | 1.0 | 13.2 | ||||||||||
Total credit costs (r) | 99.3 | 57.1 | 13.6 | ||||||||||
Problem assets to total Tier 1 capital plus ACL | 37.30 | % | 14.68 | % | 16.78 | % | |||||||
Classified assets to total Tier 1 capital plus ACL | 25.52 | 12.64 | 13.77 | ||||||||||
Ratio of nonperforming assets to total assets | 0.33 | 0.31 | 0.46 | ||||||||||
Ratio of nonperforming assets (excluding accruing TDRs) to total assets | 0.22 | 0.20 | 0.34 | ||||||||||
Delinquencies to gross loans | 0.51 | 0.69 | 0.78 | ||||||||||
Ratio of quarterly net charge-offs to average gross loans | 0.07 | 0.04 | 0.61 | ||||||||||
Ratio of allowance for credit losses to total loans and leases (q) | 2.45 | 1.60 | 0.53 | ||||||||||
Ratio of allowance for credit losses to nonaccruing loans | 887 | 722 | 121 |
Core Fee Income
Core fee income (noninterest income) was
Core fee income increased
For 2Q 2020, core fee income was 26.2% of core net revenue, compared to 25.3% for 2Q 2019, and was diversified among various sources, including traditional banking, mortgage banking, trust and wealth management and cash logistics services (Cash Connect®). The year-over-year percentage increase primarily reflects lower net interest income due to the lower rate environment.
Core Noninterest Expenses
Core noninterest expense for 2Q 2020 decreased
When compared to 1Q 2020, core noninterest expense increased
Our core efficiency ratio was 58.7% in 2Q 2020, compared to 54.0% in 1Q 2020 and 55.7% in 2Q 2019.
Income Taxes
We recorded a
The effective tax rate was 22.3% in 2Q 2020, 10.9% in 1Q 2020, and 21.9% in 2Q 2019. The lower tax rate in 1Q 2020 primarily reflects a one-time tax benefit of
Capital Management
WSFS’ total stockholders’ equity decreased
WSFS’ tangible common equity(4) decreased
At
At
The Board of Directors approved a quarterly cash dividend of
WSFS has temporarily suspended all share repurchases until we have a clearer view of the impact of COVID-19 on the economy and our performance and therefore did not repurchase any shares of common stock during 2Q 2020. In 1Q 2020, the Board approved a new share repurchase authorization of approximately 15% of outstanding shares.
(4) As used in this release, tangible common equity, tangible common equity to tangible assets and tangible common book value per share are non-GAAP financial measures. These non-GAAP measures exclude goodwill and intangible assets and the related tax-effected amortization. For a reconciliation of these and other non-GAAP 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, and credit and deposit products to individual, corporate, and institutional clients through multiple integrated businesses. Combined, these businesses had
Wealth Management reported pre-tax income of
Total Wealth Management revenue (net interest income and fee income) was
Asset based revenue was
Total noninterest expense (including intercompany allocations and excluding provision for credit losses) was
Cash Connect®
Cash Connect® is a premier provider of ATM vault cash, smart safe and cash logistics services in
Cash Connect® reported pre-tax income of
Net revenue of
Noninterest expense (including intercompany allocations of expense) was
During 2Q 2020, the division continued to focus on expanding its smart safe and ATM managed services to increase fee income and margin. Cash Connect® drove strong growth in the strategic remote cash capture space with approximately 4,100 devices under service, an increase of 400 units during the quarter. Our remote cash capture pipeline has grown as we add new channel partners, including top financial institutions which have brought us several significant national opportunities. We are increasing our cash logistics services for new ATM and safe devices during the COVID-19 pandemic and anticipate rollouts to increase as businesses continue to reopen nationwide.
Second Quarter 2020 Earnings Release Conference Call and Supplemental Materials
Management will conduct a conference call to review 2Q 2020 results at
We have provided additional information in the 2Q 2020 Earnings Release Supplement, which is available in the Investor Relations section of WSFS' website (www.wsfsbank.com).
About
Forward-Looking Statement Disclaimer
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
We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date on which they are made, and 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
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited)
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 112,260 | $ | 119,202 | $ | 129,001 | $ | 231,462 | $ | 216,118 | |||||||||||||||||||||||||||||||||||||||||
Interest on mortgage-backed securities | 12,549 | 13,219 | 12,229 | 25,768 | 22,695 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest and dividends on investment securities | 1,009 | 926 | 1,030 | 1,935 | 2,074 | ||||||||||||||||||||||||||||||||||||||||||||||
Other interest income | 65 | 508 | 643 | 573 | 1,593 | ||||||||||||||||||||||||||||||||||||||||||||||
125,883 | 133,855 | 142,903 | 259,738 | 242,480 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest on deposits | 9,832 | 14,637 | 16,123 | 24,469 | 27,065 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest on |
625 | 830 | 806 | 1,455 | 3,396 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest on senior debt | 1,180 | 1,179 | 1,180 | 2,359 | 2,359 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest on trust preferred borrowings | 484 | 586 | 717 | 1,070 | 1,443 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest on other borrowings | 6 | 473 | 845 | 479 | 1,671 | ||||||||||||||||||||||||||||||||||||||||||||||
12,127 | 17,705 | 19,671 | 29,832 | 35,934 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | 113,756 | 116,150 | 123,232 | 229,906 | 206,546 | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 94,754 | 56,646 | 12,195 | 151,400 | 19,849 | ||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 19,002 | 59,504 | 111,037 | 78,506 | 186,697 | ||||||||||||||||||||||||||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Credit/debit card and ATM income | 9,306 | 11,359 | 13,677 | 20,665 | 25,192 | ||||||||||||||||||||||||||||||||||||||||||||||
Investment management and fiduciary revenue | 10,929 | 10,962 | 10,382 | 21,891 | 20,529 | ||||||||||||||||||||||||||||||||||||||||||||||
Deposit service charges | 4,175 | 5,647 | 6,103 | 9,822 | 10,849 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage banking activities, net | 8,494 | 3,471 | 2,846 | 11,965 | 4,938 | ||||||||||||||||||||||||||||||||||||||||||||||
Loan and lease fee income | 1,097 | 1,119 | 650 | 2,216 | 1,535 | ||||||||||||||||||||||||||||||||||||||||||||||
Securities gains, net | 1,908 | 693 | 63 | 2,601 | 78 | ||||||||||||||||||||||||||||||||||||||||||||||
Unrealized (loss) gain on equity investment, net | (11) | 668 | 1,033 | 657 | 4,831 | ||||||||||||||||||||||||||||||||||||||||||||||
Realized gain on sale of equity investment, net | 22,052 | — | — | 22,052 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance income (loss) | 445 | (25) | 383 | 420 | 600 | ||||||||||||||||||||||||||||||||||||||||||||||
Other income | 5,980 | 6,953 | 7,734 | 12,933 | 15,441 | ||||||||||||||||||||||||||||||||||||||||||||||
64,375 | 40,847 | 42,871 | 105,222 | 83,993 | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries, benefits and other compensation | 48,757 | 45,346 | 48,550 | 94,103 | 84,755 | ||||||||||||||||||||||||||||||||||||||||||||||
Occupancy expense | 8,296 | 7,666 | 8,810 | 15,962 | 15,177 | ||||||||||||||||||||||||||||||||||||||||||||||
Equipment expense | 5,759 | 4,964 | 5,444 | 10,723 | 9,433 | ||||||||||||||||||||||||||||||||||||||||||||||
Data processing and operations expense | 3,061 | 3,078 | 3,731 | 6,139 | 6,319 | ||||||||||||||||||||||||||||||||||||||||||||||
Professional fees | 4,423 | 4,600 | 2,915 | 9,023 | 4,787 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing expense | 1,215 | 951 | 1,947 | 2,166 | 3,537 | ||||||||||||||||||||||||||||||||||||||||||||||
305 | (54) | 1,042 | 251 | 1,662 | |||||||||||||||||||||||||||||||||||||||||||||||
Loan workout and other credit costs | 4,587 | 453 | 1,419 | 5,040 | 1,690 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate development expense | 2,801 | 1,341 | 13,946 | 4,142 | 40,573 | ||||||||||||||||||||||||||||||||||||||||||||||
Restructuring expense | — | — | 1,881 | — | 6,243 | ||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses | 14,231 | 20,151 | 18,163 | 34,382 | 31,264 | ||||||||||||||||||||||||||||||||||||||||||||||
93,435 | 88,496 | 107,848 | 181,931 | 205,440 | |||||||||||||||||||||||||||||||||||||||||||||||
(Loss) income before taxes | (10,058) | 11,855 | 46,060 | 1,797 | 65,250 | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) provision | (2,247) | 1,288 | 10,091 | (959) | 16,351 | ||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (7,811) | $ | 10,567 | $ | 35,969 | $ | 2,756 | $ | 48,899 | |||||||||||||||||||||||||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | (700) | (360) | (231) | (1,060) | (324) | ||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income attributable to WSFS | $ | (7,111) | $ | 10,927 | $ | 36,200 | $ | 3,816 | $ | 49,223 | |||||||||||||||||||||||||||||||||||||||||
Diluted (loss) earnings per share of common stock: | $ | (0.14) | $ | 0.21 | $ | 0.68 | $ | 0.07 | $ | 1.06 | |||||||||||||||||||||||||||||||||||||||||
Weighted average shares of common stock outstanding for fully diluted EPS | 50,655,154 | 51,164,224 | 53,516,851 | 50,910,790 | 46,438,173 |
See “Notes”
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited) - continued
Three months ended | Six months ended | |||||||||||||||||||||||||||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||||||||||||||
Return on average assets (a) | (0.22) | % | 0.36 | % | 1.20 | % | 0.06 | % | 0.93 | % | ||||||||||||||||||||||||||||
Return on average equity (a) | (1.55) | 2.39 | 8.01 | 0.42 | 6.67 | |||||||||||||||||||||||||||||||||
Return on average tangible common equity (a)(o) | (1.55) | 4.13 | 12.46 | 1.28 | 10.17 | |||||||||||||||||||||||||||||||||
Net interest margin (a)(b) | 3.93 | 4.38 | 4.68 | 4.14 | 4.52 | |||||||||||||||||||||||||||||||||
Efficiency ratio (c) | 52.36 | 56.27 | 64.80 | 54.19 | 70.56 | |||||||||||||||||||||||||||||||||
Noninterest income as a percentage of total net revenue (b) | 36.07 | 25.97 | 25.76 | 31.34 | 28.85 |
See “Notes”
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(Dollars in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $ | 583,221 | $ | 182,125 | $ | 183,632 | |||||||||
Cash in non-owned ATMs | 360,969 | 322,844 | 338,006 | ||||||||||||
Investment securities (d) | 127,601 | 134,047 | 143,317 | ||||||||||||
Other investments | 31,560 | 104,843 | 64,772 | ||||||||||||
Mortgage-backed securities (d) | 2,195,389 | 2,048,400 | 1,796,870 | ||||||||||||
Net loans (e)(f)(l) | 9,229,741 | 8,497,147 | 8,619,430 | ||||||||||||
Bank owned life insurance | 30,391 | 30,093 | 30,118 | ||||||||||||
562,515 | 565,763 | 575,696 | |||||||||||||
Other assets | 451,970 | 393,628 | 404,754 | ||||||||||||
Total assets | $ | 13,573,357 | $ | 12,278,890 | $ | 12,156,595 | |||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||
Noninterest-bearing deposits | $ | 3,188,046 | $ | 2,314,982 | $ | 2,190,180 | |||||||||
Interest-bearing deposits | 7,596,125 | 7,109,396 | 7,081,371 | ||||||||||||
Total customer deposits | 10,784,171 | 9,424,378 | 9,271,551 | ||||||||||||
Brokered deposits | 278,329 | 284,976 | 323,159 | ||||||||||||
Total deposits | 11,062,500 | 9,709,354 | 9,594,710 | ||||||||||||
106,395 | 119,971 | 115,675 | |||||||||||||
Other borrowings | 189,398 | 281,314 | 299,456 | ||||||||||||
Other liabilities | 393,270 | 334,832 | 310,366 | ||||||||||||
Total liabilities | 11,751,563 | 10,445,471 | 10,320,207 | ||||||||||||
Stockholders’ equity of WSFS | 1,823,669 | 1,834,594 | 1,836,611 | ||||||||||||
Noncontrolling interest | (1,875) | (1,175) | (223) | ||||||||||||
Total stockholders' equity | 1,821,794 | 1,833,419 | 1,836,388 | ||||||||||||
Total liabilities and stockholders' equity | $ | 13,573,357 | $ | 12,278,890 | $ | 12,156,595 | |||||||||
Capital Ratios: | |||||||||||||||
Equity to asset ratio | 13.44 | % | 14.94 | % | 15.11 | % | |||||||||
Tangible common equity to tangible asset ratio (o) | 9.69 | 10.83 | 10.89 | ||||||||||||
Common equity Tier 1 capital (required: 4.5%; well capitalized: 6.5%) (g) | 12.68 | 13.41 | 12.47 | ||||||||||||
Tier 1 leverage (required: 4.00%; well-capitalized: 5.00%) (g) | 10.40 | 11.85 | 10.95 | ||||||||||||
Tier 1 risk-based capital (required: 6.00%; well-capitalized: 8.00%) (g) | 12.68 | 13.41 | 12.47 | ||||||||||||
Total Risk-based capital (required: 8.00%; well-capitalized: 10.00%) (g) | 13.93 | 14.53 | 12.93 | ||||||||||||
Asset Quality Indicators: | |||||||||||||||
Nonperforming Assets: | |||||||||||||||
Nonaccruing loans | $ | 26,175 | $ | 19,250 | $ | 37,636 | |||||||||
Troubled debt restructuring (accruing) | 14,550 | 14,070 | 14,203 | ||||||||||||
Assets acquired through foreclosure | 4,153 | 4,825 | 3,703 | ||||||||||||
Total nonperforming assets | $ | 44,878 | $ | 38,145 | $ | 55,542 | |||||||||
Past due loans (h) | $ | 8,601 | $ | 14,282 | $ | 15,667 | |||||||||
Allowance for credit losses | 232,200 | 139,081 | 45,364 | ||||||||||||
Ratio of nonperforming assets to total assets | 0.33 | % | 0.31 | % | 0.46 | % | |||||||||
Ratio of nonperforming assets (excluding accruing TDRs) to total assets | 0.22 | 0.20 | 0.34 | ||||||||||||
Ratio of allowance for credit losses to total loans and leases (q) | 2.45 | 1.60 | 0.53 | ||||||||||||
Ratio of allowance for credit losses to nonaccruing loans | 887 | 722 | 121 | ||||||||||||
Ratio of quarterly net charge-offs to average gross loans (a)(e)(i)(n) | 0.07 | 0.04 | 0.61 | ||||||||||||
Ratio of year-to-date net charge-offs to average gross loans (a)(e)(i)(n) | 0.06 | 0.04 | 0.38 |
See “Notes”
FINANCIAL HIGHLIGHTS (Continued)
AVERAGE BALANCE SHEET (Unaudited)
(Dollars in thousands) | Three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 real estate loans | $ | 2,841,231 | $ | 31,230 | 4.42 | % | $ | 2,808,867 | $ | 34,292 | 4.91 | % | $ | 2,857,091 | $ | 45,458 | 6.38 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate loans | 933,854 | 13,679 | 5.86 | 992,408 | 13,541 | 5.46 | 1,102,362 | 15,359 | 5.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans (p) | 4,291,301 | 53,390 | 5.01 | 3,533,626 | 55,693 | 6.35 | 3,571,559 | 51,798 | 5.83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | 1,124,742 | 13,065 | 4.67 | 1,130,223 | 14,935 | 5.31 | 1,126,385 | 15,958 | 5.68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 92,252 | 896 | 3.91 | 69,884 | 741 | 4.26 | 37,728 | 428 | 4.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | 9,283,380 | 112,260 | 4.87 | 8,535,008 | 119,202 | 5.62 | 8,695,125 | 129,001 | 5.96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities (d) | 2,048,357 | 12,549 | 2.45 | 1,959,637 | 13,219 | 2.70 | 1,653,582 | 12,229 | 2.96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities (d) | 130,671 | 1,009 | 3.82 | 131,121 | 926 | 3.40 | 146,064 | 1,030 | 3.39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other interest-earning assets | 220,801 | 65 | 0.12 | 76,356 | 508 | 2.68 | 89,145 | 643 | 2.89 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 11,683,209 | $ | 125,883 | 4.34 | % | 10,702,122 | $ | 133,855 | 5.04 | % | 10,583,916 | $ | 142,903 | 5.43 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (156,576) | (85,055) | (46,719) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 108,463 | 139,836 | 112,657 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash in non-owned ATMs | 319,154 | 335,434 | 364,236 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank owned life insurance | 29,965 | 30,154 | 56,332 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other noninterest-earning assets | 1,036,500 | 1,037,033 | 1,052,544 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 13,020,715 | $ | 12,159,524 | $ | 12,122,966 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 2,213,369 | $ | 882 | 0.16 | % | $ | 2,085,229 | $ | 1,897 | 0.37 | % | $ | 2,029,361 | $ | 2,163 | 0.43 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market | 2,262,737 | 2,311 | 0.41 | 2,152,986 | 4,090 | 0.76 | 1,936,112 | 4,932 | 1.02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | 1,681,587 | 877 | 0.21 | 1,574,215 | 1,744 | 0.45 | 1,657,790 | 2,009 | 0.49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer time deposits | 1,242,730 | 4,954 | 1.60 | 1,305,432 | 5,655 | 1.74 | 1,476,763 | 5,100 | 1.39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing customer deposits | 7,400,423 | 9,024 | 0.49 | 7,117,862 | 13,386 | 0.76 | 7,100,026 | 14,204 | 0.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokered deposits | 286,655 | 808 | 1.13 | 230,423 | 1,251 | 2.18 | 307,514 | 1,919 | 2.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 7,687,078 | 9,832 | 0.51 | 7,348,285 | 14,637 | 0.80 | 7,407,540 | 16,123 | 0.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHLB of |
106,694 | 625 | 2.36 | 170,058 | 830 | 1.96 | 134,151 | 806 | 2.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust preferred borrowings | 67,011 | 484 | 2.90 | 67,011 | 586 | 3.52 | 67,011 | 717 | 4.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior debt | 98,681 | 1,180 | 4.78 | 98,627 | 1,179 | 4.78 | 98,464 | 1,180 | 4.79 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other borrowed funds | 25,580 | 6 | 0.09 | 148,256 | 473 | 1.28 | 161,903 | 845 | 2.09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 7,985,044 | 12,127 | 0.61 | % | 7,832,237 | 17,705 | 0.91 | % | 7,869,069 | 19,671 | 1.00 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 2,882,999 | 2,166,510 | 2,126,640 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 311,697 | 326,185 | 315,108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity of WSFS | 1,842,525 | 1,835,501 | 1,812,302 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | (1,550) | (909) | (153) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 13,020,715 | $ | 12,159,524 | $ | 12,122,966 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess of interest-earning assets over interest-bearing liabilities | $ | 3,698,165 | $ | 2,869,885 | $ | 2,714,847 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest and dividend income | $ | 113,756 | $ | 116,150 | $ | 123,232 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 3.73 | % | 4.13 | % | 4.43 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.93 | % | 4.38 | % | 4.68 | % |
See “Notes”
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
(Dollars in thousands, except per share data) | Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock Information: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Market price of common stock: | ||||||||||||||||||||||||||||||||||||||||||||||||||
High | ||||||||||||||||||||||||||||||||||||||||||||||||||
Low | 21.00 | 17.84 | 38.69 | 17.84 | 37.19 | |||||||||||||||||||||||||||||||||||||||||||||
Close | 28.70 | 24.92 | 41.30 | 28.70 | 41.30 | |||||||||||||||||||||||||||||||||||||||||||||
Book value per share of common stock | 36.00 | 36.23 | 34.50 | |||||||||||||||||||||||||||||||||||||||||||||||
Tangible common book value per share of common stock (o) | 24.89 | 25.06 | 23.69 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of shares of common stock outstanding (000s) | 50,660 | 50,633 | 53,232 | |||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||
One-year repricing gap to total assets (k) | 6.95% | 2.38% | (3.05)% | |||||||||||||||||||||||||||||||||||||||||||||||
Weighted average duration of the MBS portfolio | 1.3 years | 2.2 years | 3.3 years | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains on securities available for sale, net of taxes | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Associates (FTEs) (m) | 1,862 | 1,791 | 1,914 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of offices (branches, LPO’s, operations centers, etc.) | 115 | 116 | 147 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of WSFS owned and branded ATMs | 571 | 470 | 509 |
Notes:
(a) | Annualized. | |
(b) | Computed on a fully tax-equivalent basis. | |
(c) | Noninterest expense divided by (tax-equivalent) net interest income and noninterest income. | |
(d) | Includes securities held to maturity (at amortized cost) and securities available for sale (at fair value). | |
(e) | Net of unearned income. | |
(f) | Net of allowance for credit losses. | |
(g) | Represents capital ratios of |
|
(h) | Accruing loans which are contractually past due 90 days or more as to principal or interest. Beginning in 1Q 2019, balance includes student loans acquired from Beneficial, which are |
|
(i) | Excludes loans held for sale. | |
(j) | Nonperforming loans are included in average balance computations. | |
(k) | The difference between projected amounts of interest-sensitive assets and interest-sensitive liabilities repricing within one year divided by total assets, based on a current interest rate scenario. | |
(l) | Includes loans held for sale and reverse mortgages. | |
(m) | Includes seasonal Associates, when applicable. | |
(n) | Excludes reverse mortgage loans. | |
(o) | The Company uses non-GAAP (United States Generally Accepted Accounting Principles) financial information in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP 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 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 measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release. | |
(p) | Includes 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. |
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
(Dollars in thousands, except per share data)
(Unaudited)
Non-GAAP Reconciliation (o): | Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (GAAP) | $ | 113,756 | $ | 116,150 | $ | 123,232 | $ | 229,906 | $ | 206,546 | ||||||||||||||||||||||||||||||||||||||||
Core net interest income (non-GAAP) | $ | 113,756 | $ | 116,150 | $ | 123,232 | $ | 229,906 | $ | 206,546 | ||||||||||||||||||||||||||||||||||||||||
Noninterest income (GAAP) | $ | 64,375 | $ | 40,847 | $ | 42,871 | $ | 105,222 | $ | 83,993 | ||||||||||||||||||||||||||||||||||||||||
Less: Securities gains | 1,908 | 693 | 63 | 2,601 | 78 | |||||||||||||||||||||||||||||||||||||||||||||
(Plus)/less: Unrealized (losses) gains on equity investments, net | (11) | 668 | 1,033 | 657 | 4,831 | |||||||||||||||||||||||||||||||||||||||||||||
Less: Realized gain on sale of equity investment, net | 22,052 | — | — | 22,052 | — | |||||||||||||||||||||||||||||||||||||||||||||
Core fee income (non-GAAP) | $ | 40,426 | $ | 39,486 | $ | 41,775 | $ | 79,912 | $ | 79,084 | ||||||||||||||||||||||||||||||||||||||||
Core net revenue (non-GAAP) | $ | 154,182 | $ | 155,636 | $ | 165,007 | $ | 309,818 | $ | 285,630 | ||||||||||||||||||||||||||||||||||||||||
Core net revenue (non-GAAP)(tax-equivalent) | $ | 154,513 | $ | 155,905 | $ | 165,325 | $ | 310,418 | $ | 286,265 | ||||||||||||||||||||||||||||||||||||||||
Noninterest expense (GAAP) | $ | 93,435 | $ | 88,496 | $ | 107,848 | $ | 181,931 | $ | 205,440 | ||||||||||||||||||||||||||||||||||||||||
Less: Corporate development expense | 2,801 | 1,341 | 13,946 | 4,142 | 40,573 | |||||||||||||||||||||||||||||||||||||||||||||
Less: Restructuring expense | — | — | 1,881 | — | 6,243 | |||||||||||||||||||||||||||||||||||||||||||||
Less: Contribution to |
— | 3,000 | — | 3,000 | — | |||||||||||||||||||||||||||||||||||||||||||||
Core noninterest expense (non-GAAP) | $ | 90,634 | $ | 84,155 | $ | 92,021 | $ | 174,789 | $ | 158,624 | ||||||||||||||||||||||||||||||||||||||||
Core efficiency ratio (c) | 58.7 | % | 54.0 | % | 55.7 | % | 56.3 | % | 55.4 | % | ||||||||||||||||||||||||||||||||||||||||
End of period | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 13,573,357 | $ | 12,278,890 | $ | 12,156,595 | ||||||||||||||||||||||||||||||||||||||||||||
Less: |
562,515 | 565,763 | 575,696 | |||||||||||||||||||||||||||||||||||||||||||||||
Total tangible assets | $ | 13,010,842 | $ | 11,713,127 | $ | 11,580,899 | ||||||||||||||||||||||||||||||||||||||||||||
Total stockholders’ equity of WSFS | $ | 1,823,669 | $ | 1,834,594 | $ | 1,836,611 | ||||||||||||||||||||||||||||||||||||||||||||
Less: |
562,515 | 565,763 | 575,696 | |||||||||||||||||||||||||||||||||||||||||||||||
Total tangible common equity (non-GAAP) | $ | 1,261,154 | $ | 1,268,831 | $ | 1,260,915 | ||||||||||||||||||||||||||||||||||||||||||||
Calculation of tangible common book value per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Book value per share (GAAP) | $ | 36.00 | $ | 36.23 | $ | 34.50 | ||||||||||||||||||||||||||||||||||||||||||||
Tangible common book value per share (non-GAAP) | 24.89 | 25.06 | 23.69 | |||||||||||||||||||||||||||||||||||||||||||||||
Calculation of tangible common equity to tangible assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity to asset ratio (GAAP) | 13.44 | % | 14.94 | % | 15.11 | % | ||||||||||||||||||||||||||||||||||||||||||||
Tangible common equity to tangible assets ratio (non-GAAP) | 9.69 | 10.83 | 10.89 |
Non-GAAP Reconciliation - continued (o): | Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP net (loss) income attributable to WSFS | $ | (7,111) | $ | 10,927 | $ | 36,200 | $ | 3,816 | $ | 49,223 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus/(less): Pre-tax adjustments: Securities gains, realized/unrealized gains on equity investments, corporate development and restructuring expense, and contribution to |
(21,148) | 2,980 | 14,731 | (18,168) | 41,907 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Plus)/less: Tax impact of pre-tax adjustments | 4,712 | (2,020) | (3,580) | 2,692 | (8,132) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net (loss) income (non-GAAP) attributable to WSFS | $ | (23,547) | $ | 11,887 | $ | 47,351 | $ | (11,660) | $ | 82,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP return on average assets (ROA) | (0.22) | % | 0.36 | % | 1.20 | % | 0.06 | % | 0.93 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus/(less): Pre-tax adjustments: Securities gains, realized/unrealized gains on equity investments, corporate development and restructuring expense, and contribution to |
(0.65) | 0.10 | 0.49 | (0.29) | 0.80 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Plus)/less: Tax impact of pre-tax adjustments | 0.14 | (0.07) | (0.12) | 0.04 | (0.15) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core ROA (non-GAAP) | (0.73) | % | 0.39 | % | 1.57 | % | (0.19) | % | 1.58 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) earnings per share (GAAP) | $ | (0.14) | $ | 0.21 | $ | 0.68 | $ | 0.07 | $ | 1.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus/(less): Pre-tax adjustments: Securities gains, realized/unrealized gains on equity investments, corporate development and restructuring expense, and contribution to |
(0.42) | 0.06 | 0.28 | (0.36) | 0.90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Plus)/less: Tax impact of pre-tax adjustments | 0.10 | (0.04) | (0.08) | 0.06 | (0.17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core (loss) earnings per share (non-GAAP) | $ | (0.46) | $ | 0.23 | $ | 0.88 | $ | (0.23) | $ | 1.79 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of return on average tangible common equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP net (loss) income attributable to WSFS | $ | (7,111) | $ | 10,927 | $ | 36,200 | $ | 3,816 | $ | 49,223 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus: Tax effected amortization of intangible assets | 2,198 | 2,103 | 2,104 | 4,301 | 3,139 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net tangible (loss) income (non-GAAP) | $ | (4,913) | $ | 13,030 | $ | 38,304 | $ | 8,117 | $ | 52,362 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Average stockholders’ equity of WSFS | $ | 1,842,525 | $ | 1,835,501 | $ | 1,812,302 | $ | 1,839,013 | $ | 1,489,241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: average goodwill and intangible assets | 564,622 | 567,695 | 579,283 | 566,159 | 450,906 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net average tangible common equity | $ | 1,277,903 | $ | 1,267,806 | $ | 1,233,019 | $ | 1,272,854 | $ | 1,038,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average tangible common equity (non-GAAP) | (1.55) | % | 4.13 | % | 12.46 | % | 1.28 | % | 10.17 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of core return on average tangible common equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net (loss) income (non-GAAP) attributable to WSFS | $ | (23,547) | $ | 11,887 | $ | 47,351 | $ | (11,660) | $ | 82,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus: Tax effected amortization of intangible assets | 2,198 | 2,103 | 2,104 | 4,301 | 3,139 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core net tangible (loss) income (non-GAAP) | $ | (21,349) | $ | 13,990 | $ | 49,455 | $ | (7,359) | $ | 86,137 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net average tangible common equity | $ | 1,277,903 | $ | 1,267,806 | $ | 1,233,019 | $ | 1,272,854 | $ | 1,038,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Core return on average tangible common equity (non-GAAP) | (6.72) | % | 4.44 | % | 16.09 | % | (1.16) | % | 16.73 | % |
Non-GAAP Reconciliation - continued (o): | Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of core PPNR: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income (GAAP) | $ | (7,811) | $ | 10,567 | $ | 35,969 | $ | 2,756 | $ | 48,899 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus/(less): Income tax (benefit) provision | (2,247) | 1,288 | 10,091 | (959) | 16,351 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus: Provision for credit losses | 94,754 | 56,646 | 12,195 | 151,400 | 19,849 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPNR (Non-GAAP) | 84,696 | 68,501 | 58,255 | 153,197 | 85,099 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus/(less): Pre-tax adjustments: Securities gains, realized/unrealized gains on equity investments, corporate development and restructuring expense, and contribution to |
(21,148) | 2,980 | 14,731 | (18,168) | 41,907 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core PPNR (Non-GAAP) | $ | 63,548 | $ | 71,481 | $ | 72,986 | $ | 135,029 | $ | 127,006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation core PPNR to average assets, less PPP: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPP income | $ | 4,836 | $ | — | $ | — | $ | 4,836 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
PPP expense | 1,814 | — | — | 1,814 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPP net income | $ | 3,022 | $ | — | $ | — | $ | 3,022 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Core PPNR (Non-GAAP), less PPP | $ | 60,526 | $ | 71,481 | $ | 72,986 | $ | 132,007 | $ | 127,006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total average assets | 13,020,715 | 12,159,524 | 12,122,966 | 12,590,119 | 10,619,425 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average assets (PPP) | 727,377 | — | — | 363,689 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average assets, less PPP | $ | 12,293,338 | $ | 12,159,524 | $ | 12,122,966 | $ | 12,226,430 | $ | 10,619,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Core PPNR to average assets | 1.96 | % | 2.36 | % | 2.41 | % | 2.16 | % | 2.41 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Core PPNR to average assets, less PPP | 1.98 | % | 2.36 | % | 2.41 | % | 2.17 | % | 2.41 | % |
Investor Relations Contact: |
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phone: (302) 571-6833; email: dcanuso@wsfsbank.com | ||
Media Contact: |
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phone: (215) 253-5566; email: racevedo@wsfsbank.com |
Source: WSFS Financial Corporation