WILMINGTON, Del., April 23 /PRNewswire-FirstCall/ -- WSFS Financial Corporation , the parent company of Wilmington Savings Fund Society, FSB, reported quarterly diluted earnings per share of $0.39, or net income of $2.9 million, compared to a net loss per share of $0.54, or $3.3 million in the fourth quarter of 2008 and diluted earnings per share of $1.15, or net income of $7.2 million in the first quarter of 2008.
Highlights: -- Customer deposits growth accelerated, increasing a very strong $139.1 million or over 8% (33% annualized) from December 31, 2008 and $367.2 million, or 25% from March 31, 2008. -- Commercial loan growth continued at a solid pace, increasing $69.7 million or 4% (16% annualized), from December 31, 2008 and $263.8 million or 17%, from March 31, 2008. The overwhelming majority of this growth was in the Company's commercial and industrial (C&I) portfolio. -- WSFS increased its allowance for loan losses to total gross loans to 1.41% from 1.26% as of December 31, 2008. -- WSFS improved total capital by $59 million; improved its tangible common equity by $6.8 million, or 3%, and improved its tangible common book value by 3%, to $33.53 per share. At March 31, 2009 regulatory capital levels remain well above "well-capitalized" levels by all measures. Notable items: -- On January 23, 2009, WSFS completed the sale of its senior preferred stock totaling $52.6 million to the U.S. Department of the Treasury under the Treasury's Capital Purchase Program (CPP), designed to "directly infuse capital into healthy viable banks with the goal of increasing the flow of financing available to small businesses and consumers." WSFS recorded $513,000 or $0.08 per share, in dividends and discount accretion due to the preferred shares. -- Reflecting the continuing recession, during the first quarter of 2009, WSFS recorded: -- A $7.7 million provision for loan losses and a $466,000 REO adjustment, both improved from the $14.7 million provision for loan losses and the $761,000 REO write-down recorded in the fourth quarter of 2008. -- Net charge-offs of $3.2 million, less than the $11.9 million recorded in the fourth quarter of 2008. -- A $301,000 charge (taken through interest income) related to our second-lien interest in 19 whole-loan reverse mortgages, less than the $1.0 million charge taken in the fourth quarter of 2008; -- A $124,000 negative mark-to-market adjustment on a $12.4 million par value BBB+ rated mortgage-backed security (MBS) issued in connection with the 2002 reverse mortgage sale and securitization, significantly below the $1.4 million charge taken in the previous quarter. This charge was more than offset by a $547,000 gain on sale of securities, including gains from both Agency and non-Agency mortgage-backed securities, as we continue to actively manage capital and liquidity and take advantage of a rebound in the mortgage-backed security (MBS) market in the first quarter. -- Higher FDIC insurance premium expense ($1.5 million, compared to $330,000 in the fourth quarter of 2008, and $53,000 in the first quarter of 2008); decreased FHLB Pittsburgh stock dividends (no dividend in the first quarter of 2009, compared to $237,000 in the fourth quarter of 2008, and $538,000 in the first quarter of 2008); and flat to decreased revenues from Bank Owned Life Insurance ($210,000, compared to $208,000 in the fourth quarter of 2008, and $574,000 in the first quarter of 2008). CEO outlook and commentary:
Mark A. Turner, WSFS' President and CEO said, "Our modestly profitable results for the first quarter reflect the continued economic deterioration facing Delaware and the U.S., but also represents a meaningful rebound from the loss we recorded in the fourth quarter of last year. Despite continued economic weakness, our significant growth in loans and deposits also indicates that WSFS is a strong bank that continues to be the bank of choice in the communities it serves during these difficult times."
"Decline in our financial results compared to the year-earlier figures is the result of credit deterioration in residential real estate-based lending, predominantly in our residential construction and land development (CLD) portfolio. We continue to proactively confront this reality with an increase in our provision for loan losses and other write-downs recorded during the quarter. The cost of our efforts to address these challenges is also reflected in higher legal and workout expenses."
Mr. Turner continued, "Most importantly, our local consumers and businesses have embraced us as their community bank during this difficult time. We have enjoyed tremendous growth in core deposits as well as strong commercial lending opportunities and have increased our loan portfolios with well-structured, appropriately-priced, good commercial relationships. We see this environment as an opportunity to strengthen our franchise and support our customers and communities through continued productive lending, deposit gathering, branch openings, and other services in 2009."
First Quarter 2009 Discussion of Financial Results Net interest income improves
Net interest income for the first quarter of 2009 was $23.9 million, and improved by $2.9 million, or 14% in comparison to the first quarter of 2008. The net interest margin increased five basis points (0.05%), to 3.05% from the 3.00% reported in the first quarter of 2008. Net interest income increased $1.3 million from the fourth quarter of 2008 and the net interest margin of 3.05% decreased by two basis points (0.02%).
The changes in net interest margin from the fourth quarter 2008 reflect the timing difference between loan and funding re-pricing following precipitous cuts in interest rates near the end of 2008, and a combination of other factors including the impact of effective "floors" on funding costs and changes in the reverse mortgage portfolio value in each of the quarters.
Total loans increased $60.1 million from December 31, 2008
Total net loans were $2.5 billion at March 31, 2009, an increase of $260.1 million, or 12%, over March 31, 2008. C&I loans increased $220.4 million, or 28%, accounted for over 80% of this growth. CLD loans decreased $28.8 million, or 10% from March 31, 2008 and commercial mortgages increased $72.2 million, or 15%.
Total net loans increased $60.1 million, or 2% (10% annualized) over December 31, 2008 levels. This growth was due to a $71.5 million, or almost 8% (30% annualized) increase in C&I loans offset by decreases in the Company's CLD and commercial real estate portfolios.
The following table summarizes the current loan balances and composition compared to prior periods. (Dollars in thousands) At At At Mar. 31, 2009 Dec. 31, 2008 Mar. 31, 2008 Commercial and CRE $1,819,606 73% $1,749,944 72% $1,555,799 69% Residential mortgage 419,462 16 427,481 17 439,328 20 Consumer 300,533 12 297,599 12 275,636 12 Allowance for loan losses (35,631) (1) (31,189) (1) (26,868) (1) Net Loans $2,503,970 100% $2,443,835 100% $2,243,895 100%
Despite strong originations, residential first mortgage loans have continued to decline from previous periods because of prepayments, and the Company's continuing strategy to sell most new originations of fixed rate loans at a gain.
Loan quality
As of March 31, 2009, total CLD loans represented $227 million, or only 8.9% of the loan portfolio, down from $229 million, or 9.3% at December 31, 2008. Included in this total, residential CLD represented $136 million, or 5.4% of the loan portfolio. The Company's average residential CLD loan was $1.5 million in size, and eight residential CLD loans exceeded $5 million in outstanding balances.
WSFS' mortgage and consumer loan portfolios continue positive comparisons to national trends, but also reflect the impact of a declining housing market:
-- Delinquencies in the Company's $402 million prime first mortgage portfolio is 2.95% as of March 31, 2009 compared to national delinquencies of 5.60% as of December 31, 2008, the date of the most recent comparable data. -- Subprime mortgage delinquencies in WSFS' $17 million portfolio (0.6% of total loans) improved to 2.61%, a small fraction of the national average of 23.89% at December 31, 2008, due to solid underwriting and seasoning of these loans. The continued low level of delinquency indicates that these are now functionally "prime" loans. -- Consumer home equity installment loans ($124 million) had delinquencies of 1.41% versus the national rate of 3.22% at December 31, 2008; and home equity lines of credit ($156 million) had delinquencies of 0.71% compared to the national rate of 1.59% at December 31, 2008. -- First quarter net charge-offs in the above mentioned mortgage and consumer loan portfolios were only $744,000 or 0.42% (annualized). -- WSFS has no credit card loans, and only $11.5 million in total consumer unsecured loans.
The Company recorded a provision for loan losses of $7.7 million in the first quarter of 2009, compared to $14.7 million in the fourth quarter of 2008 and $2.4 million in the first quarter of 2008. This level of provisioning reflects a risk grade migration in the commercial loan portfolio, charge-offs taken during the quarter, and solid loan growth. The ratio of the allowance for loan losses to total loans increased to 1.41% at March 31, 2009, from 1.26% at December 31, 2008 and 1.18% at March 31, 2008.
Nonperforming assets were $55.8 million at March 31, 2009 compared to $35.8 million at December 31, 2008 and $19.8 million at March 31, 2008. Nonperforming assets as a percentage of total assets were 1.57% at March 31, 2009 compared to 1.04% at December 31, 2008 and 0.62% at March 31, 2008. The increase in nonperforming assets over December 31, 2008 reflects:
-- A $10.9 million increase in nonaccruing loans. This increase is largely due to four nonaccruing residential construction loans (net of $2 million in writedowns on these loans). -- A $5.5 million increase in restructured mortgage and home equity consumer debt made up of twenty-four loans with an average size of approximately $230,000. The Company continues to work with homeowners in order to both keep them in their homes and optimize the Bank's return. -- A $3.6 million increase in assets acquired through foreclosure due to one large residential CLD property.
Net charge-offs in the first quarter of 2009 were $3.2 million, or 0.51% of average loans, compared to $11.9 million, or 1.97% for the fourth quarter of 2008 and $774,000 or 0.14% for the first quarter of 2008. Of the $3.2 million in net charge-offs, $1.4 million were attributed to residential CLD loans and $542,000 to real estate-secured mortgage and consumer loans.
Investments
At March 31, 2009, WSFS' total securities portfolio had a carrying value of $643.8 million. The Company holds no CDOs, Bank Trust Preferred, Agency Preferred securities or equity securities in other FDIC insured banks or thrifts.
Changes in the investment portfolio include: -- The Agency MBS portfolio increased to $270.4 million as a result of purchases in order to minimize earnings dilution related to the additional capital raised. All of the Agency MBS are "plain vanilla" securities; $102.8 million are sequential-pay CMOs with no contingent cash flows, and $167.6 million are Agency MBS with 10 to 15 year original final maturities. -- The non-Agency MBS portfolio was also increased to $315.4 million for the same reason mentioned previously. The quality of this portfolio is evidenced by: -- Diversification among more than 81 different pools ($3.9 million on average). -- Significant seasoning, with 90% of underlying loans originated in 2005 or earlier, and only 10% originated in 2006. -- Heavy continuing principal amortization, as more than 95% of these bonds were originated as 15-year pass-through cash flows. -- Strong fundamental characteristics, with an average loan-to-value (LTV) of approximately 42% (current loan balance as a percentage of original property value) and an average initial FICO credit rating score of well above 700. Only 11% of the collateral is classified as Alt-A loans, and none were classified as sub-prime. -- As of March 31, 2009 eight of the 81 bonds, with a market value of $25.9 million, have been downgraded below AAA-. Based on stress tests of these bonds, using proprietary models of two independent companies, management has concluded that the collection of all the contractual principal and interest is probable and therefore the unrealized losses are temporary (no Other-Than-Temporary-Impairment (OTTI)). Average FICO credit scores (at origination) for these bonds is greater than 700, calculated LTV is 47%, and average delinquency is only 3.8% (compared to national averages for prime mortgages of 5.6 %).
Balances also reflect the fact that during the quarter, WSFS sold $20.8 million in MBS, made up of $13.6 million in Agency MBS and $7.2 million in private label MBS. All bonds were sold at a gain and the aggregate gain totaled $547,000. Aggregate prepayments for the MBS portfolio are strong totaling $14 million during March 2009 alone.
Customer deposits increased $139.1 million from December 31, 2008
Total customer deposits (core deposits and customer time deposits) were $1.8 billion at March 31, 2009, a strong $367.2 million, or 25%, increase over balances at March 31, 2008. The growth in deposits included an increase in both demand accounts and customer time deposits. This growth was enhanced by $95.3 million in deposit accounts acquired in an October 2008 branch purchase. Without the purchase, customer deposits still grew a strong $271.9 million, or 18%.
Customer deposits increased a very strong $139.1 million or 8% (33% annualized) over levels reported at December 31, 2008. The linked quarter increase in deposits was mainly comprised of demand accounts and included $59.2 million in temporary deposits collected under the benefit of the FDIC's Transaction Account Guarantee program, which provides unlimited insurance on certain accounts through December 31, 2009.
The following table summarizes current customer deposit balances and composition compared to prior periods. (Dollars in thousands) At At At Mar. 31, 2009 Dec. 31, 2008 Mar. 31, 2008 Noninterest demand $386,103 21% $311,322 18% $291,595 20% Interest-bearing demand 232,102 12 214,749 13 172,937 12 Savings 223,683 12 208,368 12 196,930 13 Money market 347,246 19 326,792 19 316,067 21 Total core deposits 1,189,134 64 1,061,231 62 977,529 66 Customer time 657,101 36 645,902 38 501,459 34 Total customer deposits $1,846,235 100% $1,707,133 100% $1,478,988 100% Noninterest income
During the first quarter of 2009, the Company recorded noninterest income of $11.1 million, compared to $12.5 million in the first quarter of 2008. Contributing to the year-over-year decrease was an $1.0 million reduction in revenues from its Cash Connect division, partially offset by $556,000 in fees from 1st Reverse Financial Services, LLC (1st Reverse), both discussed later in a separate "niche business" section. Adjusted for these businesses, noninterest income decreased $1.0 million. This was caused by a decrease in securities gains, as gains recorded in the first quarter of 2008 (from the sale of Visa shares) exceeded gains recorded in the first quarter of 2009 by $644,000. In addition, income from Bank Owned Life Insurance (BOLI) decreased $364,000 mainly due to lower yields on underlying investments funding this program.
Noninterest income increased $1.0 million in comparison to the fourth quarter of 2008. Adjusted for Cash Connect and 1st Reverse, noninterest income increased by $1.2 million, mainly due to a $1.4 million increase in securities gains, partially stemming from a lower negative mark-to-market adjustment on the BBB+ rated MBS recorded during the first quarter of 2009. Deposit service charges recorded a $341,000 decrease from the fourth quarter 2008, primarily due to seasonality.
Noninterest expense
Noninterest expenses for the first quarter of 2009 totaled $24.4 million, which was $3.4 million, or 16%, greater than the first quarter of 2008. Adjusted for Cash Connect and 1st Reverse, noninterest expense increased by $2.5 million or 13%. During the first quarter of 2009, WSFS recorded $466,000 in write-downs of assets acquired through foreclosure (REO), resulting from updated appraisals and revised estimates of the net realizable values for these properties. Also during the first quarter of 2009, WSFS recorded an additional $1.4 million of expenses related to FDIC insurance mainly due to an increase in rates and deposit balances combined with additional expenses related to a change in the FDIC billing methodology. Without the REO write-down and additional FDIC insurance premium, expenses would have only increased 3%, reflecting primarily higher occupancy expenses, which increased $295,000 due mostly to branch acquisitions and de novo expansion.
Noninterest expense increased $405,000, or 2%, from the fourth quarter of 2008. Adjusted for Cash Connect and 1st Reverse, noninterest expense increased by $816,000 or 4%. This increase was mainly due to salaries and benefits, occupancy and expenses related to higher FDIC insurance, offset in part by lower write-downs of assets acquired through foreclosure (REO) and a decrease in professional fees.
Capital Management
The Company's capital grew by $58.8 million over December 31, 2008 levels, partially resulting from the $52.6 million of the senior preferred share issuance. Total book value per share increased by $9.33 to $44.50.
At March 31, 2009, the Bank's Tier 1 capital ratio increased to 10.18%, significantly above the 6.00% level required to be considered "well-capitalized" under regulatory definitions. Tangible common equity grew by $6.8 million or 3% over December 31, 2008 levels and tangible common book value per share increased by 3% or $0.91 to $33.53. The bank's tangible common equity ratio remained steady at 5.88% as of the end of the first quarter while also supporting franchise growth and continued payment of a shareholder dividend at previous levels.
During the quarter the Company's capital and earnings benefited from its MBS portfolio, as the MBS market improved and accumulated other comprehensive income related to these securities increased by $3.7 million, net of tax. Additionally, during the quarter the Company sold $20.8 million in MBS at a meaningful profit in response to robust loan growth and in order to actively manage capital, liquidity and take advantage of MBS market improvements.
Niche Businesses (included in the above results)
In late April 2008, WSFS acquired a majority stake in 1st Reverse Financial Services, LLC. (1st Reverse), specializing in reverse mortgage banking nationwide. During the first quarter of 2009, 1st Reverse reported a pre-tax loss of $586,000, compared to a pre-tax loss of $832,000 for the fourth quarter of 2008. 1st Reverse recorded $556,000 in fee income during the first quarter, an increase of $107,000, over the fourth quarter of 2008. Expenses were $1.1 million during the first quarter, $142,000 below the fourth quarter of 2008. 1st Reverse has modified its business plan to rely more heavily on retail loan originations, and also during the first quarter implemented many cost reductions to improve expected breakeven origination volumes.
The Cash Connect division is a premier provider of ATM Vault Cash and related services in the United States. Cash Connect manages more than $211 million in vault cash in approximately 10,500 non-bank ATMs nationwide and also operates over 300 ATMs for WSFS Bank, the largest branded ATM network in Delaware. During the first quarter of 2009, Cash Connect reported pre-tax income of $1.4 million, compared to $935,000 for the first quarter of 2008 and $1.4 million for the fourth quarter of 2008. Cash Connect recorded $2.7 million in net revenue (fee income less funding costs) during the first quarter primarily comprised of interest-sensitive bailment fees, an increase of $182,000 compared to the first quarter of 2008 and a decrease of $213,000 compared to the fourth quarter of 2008. Noninterest expenses were $1.3 million during the first quarter of 2009 a reduction of $314,000 from the first quarter of 2008 and $286,000 from the fourth quarter of 2008.
Income taxes
The Company recorded a $25,000 income tax provision in the first quarter of 2009 compared to $2.9 million in the first quarter of 2008. Both quarters included tax benefits of $939,000 and $723,000, respectively, resulting from a decrease in the Company's income tax reserve due to the expiration of the statute of limitations on certain tax items. The Company's effective tax rate exclusive of these benefits was 32.5% in the first quarter of 2009 and 35.7% for the first quarter of 2008. The reduction in the tax rate in the first quarter of 2009 is primarily due to the impact of permanent tax differences on lower pretax income.
During the fourth quarter of 2008 the Company recorded a $2.6 million tax benefit (44.3% effective tax rate) due to posting a pre-tax loss. Volatility in effective tax rates from quarter to quarter is expected.
WSFS maintains its quarterly cash dividend of $0.12 per share
Today, the Board of Directors approved a quarterly cash dividend of $0.12 per share. WSFS has been able to maintain its dividend at a level consistent with the fourth quarter of 2008. This dividend will be paid on May 29, 2009, to shareholders of record as of May 8, 2009.
1st Quarter 2009 Earnings Release Conference Call
Management will conduct a conference call to review this information at 11:00 a.m. Eastern Daylight Time (EDT) on Friday, April 24, 2009. Interested parties may listen to this call by dialing 1-800-860-2442. A rebroadcast of the conference call will be available upon completion of the conference call, until 12:00 a.m. EDT on May 1, 2009, by calling 877-344-7529 and using Conference ID # 430094.
About WSFS Financial Corporation
WSFS Financial Corporation is a $3.5 billion financial services company. Its primary subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank), operates 35 retail banking offices located in Delaware and Pennsylvania, as well as three loan production offices in Dover, Delaware; Blue Bell, Pennsylvania and Annandale, Virginia. WSFS Bank provides comprehensive financial services including personal trust and wealth management. Other subsidiaries include WSFS Investment Group, Inc., Montchanin Capital Management, Inc. and 1st Reverse Financial Services, LLC. Founded in 1832, WSFS is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit the Bank's website at http://www.wsfsbank.com/.
Statements contained in this news release which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various assumptions (some of which may be beyond the Company's control) are subject to risks and uncertainties 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, those related to the economic environment, particularly in the market areas in which the Company operate; the volatility of the financial and securities markets, including changes with respect to the market value of our financial assets; changes in government regulation affecting financial institutions and potential expenses associated therewith; changes resulting from our participation in the CPP including additional conditions that may be imposed in the future on participating companies; and the costs associated with resolving any problem loans and other risks and uncertainties, discussed in documents filed by WSFS Financial Corporation with the Securities and Exchange Commission from time to time. The Corporation does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Corporation.
WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS STATEMENT OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) Three months ended ------------------- March 31, December 31, March 31, 2009 2008 2008 ---- ---- ---- Interest income: Interest and fees on loans $31,374 $33,832 $37,682 Interest on mortgage-backed securities 7,336 6,377 5,988 Interest and dividends on investment securities 97 (662) 338 Other interest income - 238 552 -- --- --- 38,807 39,785 44,560 ------ ------ ------ Interest expense: Interest on deposits 8,329 9,521 12,129 Interest on Federal Home Loan Bank advances 5,341 6,061 8,968 Interest on trust preferred borrowings 595 727 1,018 Interest on other borrowings 651 900 1,476 --- --- ----- 14,916 17,209 23,591 ------ ------ ------ Net interest income 23,891 22,576 20,969 Provision for loan losses 7,653 14,699 2,390 ----- ------ ----- Net interest income after provision for loan losses 16,238 7,877 18,579 ------ ----- ------ Noninterest income: Credit/debit card and ATM income 3,702 3,968 4,531 Deposit service charges 3,817 4,158 3,798 Investment advisory income 531 557 655 Loan fee income 1,250 1,230 643 Bank owned life insurance income 210 208 574 Mortgage banking activities, net 202 (116) 105 Securities gains (losses) 423 (976) 1,067 Other income 966 1,099 1,133 --- ----- ----- 11,101 10,128 12,506 ------ ------ ------ Noninterest expenses: Salaries, benefits and other compensation 12,331 11,659 11,487 Occupancy expense 2,436 2,128 2,107 Equipment expense 1,579 1,603 1,463 Data processing and operations expense 1,121 1,001 1,038 Marketing expense 727 900 907 Professional fees 962 1,473 849 Other operating expenses 5,218 5,205 3,086 ----- ----- ----- 24,374 23,969 20,937 ------ ------ ------ Income (loss) before taxes 2,965 (5,964) 10,148 Income tax provision (benefit) 25 (2,644) 2,902 -- ------ ----- Net income (loss) 2,940 (3,320) 7,246 Dividends on preferred stock and accretion 513 - - --- -- -- Net income (loss) available to common stockholders $2,427 $(3,320) $7,246 ====== ======= ====== Diluted earnings per share: Net income (loss) available to common stockholders $0.39 $(0.54) $1.15 ===== ====== ===== Weighted average shares outstanding for diluted EPS 6,240,891 6,174,985 6,310,171 ---------------------------- --------- --------- --------- Performance Ratios: Return on average assets (a) 0.33% (0.40)% 0.91% Return on average equity (a) 4.53 (5.93) 13.17 Net interest margin (a)(b) 3.05 3.07 3.00 Efficiency ratio (c) 69.12 72.67 62.03 Noninterest income as a percentage of total revenue (b) 31.48 30.71 37.05 ---------------------------------- ----- ----- ----- See "Notes" WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) SUMMARY STATEMENT OF CONDITION (Dollars in thousands) (Unaudited) March 31, December 31, March 31, 2009 2008 2008 ---- ---- ---- Assets: ------- Cash and due from banks $56,830 $58,377 $75,115 Cash in non-owned ATMs 144,737 189,965 175,313 Investment securities (d)(e) 47,218 49,688 32,086 Other investments 39,586 39,521 43,715 Mortgage-backed securities (d) 596,588 498,205 477,234 Net loans (f)(g)(n) 2,503,970 2,443,835 2,243,895 Bank owned life insurance 59,547 59,337 58,125 Other assets 94,831 93,632 69,851 ------ ------ ------ Total assets $3,543,307 $3,432,560 $3,175,334 ========== ========== ========== Liabilities and Stockholders' Equity: ----------------------------- Noninterest-bearing deposits $386,103 $311,322 $291,595 Interest-bearing deposits 1,460,132 1,395,811 1,187,393 --------- --------- --------- Total customer deposits 1,846,235 1,707,133 1,478,988 Other jumbo CDs 77,623 103,825 87,322 Brokered deposits 334,262 311,394 238,071 ------- ------- ------- Total deposits 2,258,120 2,122,352 1,804,381 --------- --------- --------- Federal Home Loan Bank advances 696,291 815,957 883,899 Other borrowings 282,764 250,788 243,659 Other liabilities 30,661 26,828 27,140 ------ ------ ------ Total liabilities 3,267,836 3,215,925 2,959,079 --------- --------- --------- Stockholders' equity 275,471 216,635 216,255 ------- ------- ------- Total liabilities and stockholders' equity $3,543,307 $3,432,560 $3,175,334 ========== ========== ========== Capital Ratios: Equity to asset ratio 7.77% 6.31% 6.81% Tangible equity to asset ratio 7.38 5.88 6.72 Tangible common equity to asset ratio 5.88 5.88 6.72 Core capital (h) (required: 4.00%; well-capitalized: 5.00%) 8.21 7.99 8.48 Tier 1 capital (h) (required: 4.00%; well-capitalized: 6.00%) 10.18 9.90 10.74 Risk-based capital (h) (required: 8.00%; well-capitalized: 10.00%) 11.37 11.00 11.78 Asset Quality Indicators: Nonperforming Assets: Nonaccruing loans $39,383 $28,434 $17,934 Troubled debt restructuring 8,385 2,855 818 Assets acquired through foreclosure 8,023 4,471 1,033 ----- ----- ----- Total nonperforming assets $55,791 $35,760 $19,785 ======= ======= ======= Past due loans (i) $2,185 $1,339 $3,915 Allowance for loan losses $35,631 $31,189 $26,868 Ratio of nonperforming assets to total assets 1.57% 1.04% 0.62% Ratio of allowance for loan losses to total gross loans (j) 1.41 1.26 1.18 Ratio of allowance for loan losses to nonaccruing loans (k) 87 108 144 Ratio of quarterly net charge-offs to average gross loans (a)(f) 0.51 1.97 0.14 See "Notes" WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) AVERAGE BALANCE SHEET (Dollars in thousands) (Unaudited) Three months ended ------------------ March 31, 2009 Average Interest & Yield/ Balance Dividends Rate (a)(b) ------- --------- ----------- Assets: Interest-earning assets: Loans: (f) (l) Commercial real estate loans $810,238 $9,463 4.67% Residential real estate loans (n) 425,165 6,052 5.69 Commercial loans 973,088 12,081 5.08 Consumer loans 298,306 3,778 5.14 ------- ----- Total loans (n) 2,506,797 31,374 5.05 Mortgage-backed securities (d) 577,054 7,336 5.09 Investment securities (d)(e) 48,971 97 0.79 Other interest-earning assets 39,782 - 0.00 ------ -- Total interest-earning assets 3,172,604 38,807 4.93 ------ Allowance for loan losses (32,687) Cash and due from banks 56,194 Cash in non-owned ATMs 173,316 Bank owned life insurance 59,411 Other noninterest-earning assets 93,651 ------ Total assets $3,522,489 ========== Liabilities and Stockholders' Equity: Interest-bearing liabilities: Interest bearing deposits: Interest-bearing demand $214,234 $204 0.39 Money market 334,810 1,028 1.25 Savings 216,187 158 0.30 Customer time deposits 648,563 5,486 3.43 ------- ----- Total interest-bearing customer deposits 1,413,794 6,876 1.97 Other jumbo certificates of deposit 94,991 504 2.15 Brokered deposits 329,943 949 1.17 ------- --- Total interest-bearing deposits 1,838,728 8,329 1.84 FHLB of Pittsburgh advances 750,158 5,341 2.85 Trust preferred borrowings 67,011 595 3.55 Other borrowed funds 228,386 651 1.14 ------- --- Total interest-bearing liabilities 2,884,283 14,916 2.07 ------ Noninterest-bearing demand deposits 351,864 Other noninterest-bearing liabilities 26,941 Stockholders' equity 259,401 ------- Total liabilities and stockholders' equity $3,522,489 ========== Excess of interest-earning assets over interest-bearing liabilities $288,321 ======== Net interest and dividend income $23,891 ======= Interest rate spread 2.86% ==== Net interest margin 3.05% ==== See "Notes" Three months ended ------------------ December 31, 2008 Average Interest & Yield/ Balance Dividends Rate (a)(b) ------- --------- ----------- Assets: Interest-earning assets: Loans: (f) (l) Commercial real estate loans $787,935 $10,802 5.48% Residential real estate loans (n) 429,200 6,241 5.82 Commercial loans 899,809 12,503 5.56 Consumer loans 293,331 4,286 5.81 ------- ----- Total loans (n) 2,410,275 33,832 5.66 Mortgage-backed securities (d) 491,893 6,377 5.19 Investment securities (d)(e) 41,158 (662) (6.43) Other interest-earning assets 38,997 238 2.43 ------ --- Total interest-earning assets 2,982,323 39,785 5.37 ------ Allowance for loan losses (28,078) Cash and due from banks 57,654 Cash in non-owned ATMs 167,139 Bank owned life insurance 59,199 Other noninterest-earning assets 85,414 ------ Total assets $3,323,651 ========== Liabilities and Stockholders' Equity: Interest-bearing liabilities: Interest bearing deposits: Interest-bearing demand $193,699 $316 0.65 Money market 308,696 1,404 1.81 Savings 202,808 190 0.37 Customer time deposits 622,668 5,599 3.58 ------- ----- Total interest-bearing customer deposits 1,327,871 7,509 2.25 Other jumbo certificates of deposit 100,430 775 3.07 Brokered deposits 283,125 1,237 1.74 ------- ----- Total interest-bearing deposits 1,711,426 9,521 2.21 FHLB of Pittsburgh advances 786,632 6,061 3.02 Trust preferred borrowings 67,011 727 4.25 Other borrowed funds 200,053 900 1.80 ------- --- Total interest-bearing liabilities 2,765,122 17,209 2.49 ------ Noninterest-bearing demand deposits 298,613 Other noninterest-bearing liabilities 35,803 Stockholders' equity 224,113 ------- Total liabilities and stockholders' equity $3,323,651 ========== Excess of interest-earning assets over interest-bearing liabilities $217,201 ======== Net interest and dividend income $22,576 ======= Interest rate spread 2.88% ==== Net interest margin 3.07% ==== See "Notes" Three months ended ------------------ March 31, 2008 Average Interest & Yield/ Balance Dividends Rate (a)(b) ------- --------- ----------- Assets: Interest-earning assets: Loans: (f) (l) Commercial real estate loans $747,433 $13,236 7.08% Residential real estate loans (n) 445,681 6,497 5.83 Commercial loans 795,136 13,247 6.73 Consumer loans 277,402 4,702 6.82 ------- ----- Total loans (n) 2,265,652 37,682 6.70 Mortgage-backed securities (d) 495,538 5,988 4.83 Investment securities (d)(e) 29,707 338 4.55 Other interest-earning assets 45,296 552 4.90 ------ --- Total interest-earning assets 2,836,193 44,560 6.32 ------ Allowance for loan losses (25,496) Cash and due from banks 70,191 Cash in non-owned ATMs 175,413 Bank owned life insurance 57,749 Other noninterest-earning assets 65,478 ------ Total assets $3,179,528 ========== Liabilities and Stockholders' Equity: Interest-bearing liabilities: Interest bearing deposits: Interest-bearing demand $161,832 $326 0.81 Money market 304,226 2,172 2.87 Savings 194,440 257 0.53 Customer time deposits 504,155 5,639 4.50 ------- ----- Total interest-bearing customer deposits 1,164,653 8,394 2.90 Other jumbo certificates of deposit 97,585 1,009 4.16 Brokered deposits 256,454 2,726 4.28 ------- ----- Total interest-bearing deposits 1,518,692 12,129 3.21 FHLB of Pittsburgh advances 911,647 8,968 3.89 Trust preferred borrowings 67,011 1,018 6.01 Other borrowed funds 170,538 1,476 3.46 ------- ----- Total interest-bearing liabilities 2,667,888 23,591 3.54 ------ Noninterest-bearing demand deposits 268,543 Other noninterest-bearing liabilities 23,063 Stockholders' equity 220,034 ------- Total liabilities and stockholders' equity $3,179,528 ========== Excess of interest-earning assets over interest-bearing liabilities $168,305 ======== Net interest and dividend income $20,969 ======= Interest rate spread 2.78% ==== Net interest margin 3.00% ==== See "Notes" WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) (Dollars in thousands, except per share data) (Unaudited) Three months ended ------------------ March 31, December 31, March 31, 2009 2008 2008 ---- ---- ---- Stock Information: Market price of common stock: High $48.49 $57.71 $53.79 Low 17.34 38.54 44.46 Close 22.36 47.99 49.28 Book value per share 44.50 35.17 35.22 Tangible book value per share 42.03 32.62 34.73 Tangible common book value per share 33.53 32.62 34.73 Number of shares outstanding (000s) 6,191 6,159 6,141 ------------------- ----- ----- ----- Other Financial Data: One-year repricing gap to total assets (m) 3.65% 0.33% (1.33)% Weighted average duration of the MBS portfolio 2.8 years 2.9 years 2.6 years Unrealized losses on securities available-for-sale, net of taxes $(8,424) $(12,158) $(3,921) Number of associates (FTEs) 650 633 603 Number of branch offices 35 35 29 Number of WSFS owned ATMs 336 317 326 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 available-for-sale. (e) Includes reverse mortgages. (f) Net of unearned income. (g) Net of allowance for loan losses. (h) Represents capital ratios of Wilmington Savings Fund Society, FSB and subsidiaries. (i) Accruing loans which are contractually past due 90 days or more as to principal or interest. (j) Excludes loans held-for-sale. (k) Includes general reserves only. (l) Nonperforming loans are included in average balance computations. (m) 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. (n) Includes loans held-for-sale.
WSFS Financial Corporation
CONTACT: Investor Relations, Stephen A. Fowle, +1-302-571-6833,
sfowle@wsfsbank.com, or Media, Stephanie A. Heist, +1-302-571-5259,
sheist@wsfsbank.com, both of WSFS Financial Corporation
Web Site: http://www.wsfsbank.com/
