Net Interest Margin Increased to 3.20%, a 20 Basis Point
Increase Over 1st Quarter 2008
Company Announces $0.12 Dividend, a 20% Increase From 2nd Quarter 2007
WILMINGTON, Del., July 24, 2008 (PRIME NEWSWIRE) -- WSFS Financial Corporation (Nasdaq:WSFS), the parent company of Wilmington Savings Fund Society, FSB, reported quarterly diluted earnings per share of $1.07, or net income of $6.7 million, compared to $1.11, or $7.2 million in the second quarter of 2007. Net income for the first six months of 2008 was $13.9 million, or $2.22 per diluted share, compared to $15.0 million, or $2.26 in 2007.
During the quarter, earnings continued at a solid pace, allowing the Company to pursue franchise growth opportunities while growing its capital and maintaining an appropriate allowance for loan losses.
Highlights include:
* Pre-tax income increased $287,000 or 3% from the first quarter of 2008, despite nearly $2.0 million in additional earnings related to Visa's initial public offering (IPO) in the first quarter of 2008. * The net interest margin and net interest income improved significantly to 3.20% or $22.4 million from 3.00% or $21.0 million in the first quarter of 2008. * During the quarter the Company announced a 20% increase to the dividend from the second quarter of 2007. * WSFS' capital continued its increasing trends and grew by $15.7 million from the second quarter of 2007 remaining substantially above "well-capitalized" levels by all regulatory measures. * Commercial loan growth continued its strong pace, increasing 16%, or $216.4 million from the second quarter of 2007. * The Company increased its loan loss reserve ratio from 1.18% to 1.22% by recording a $2.4 million provision for loan losses in the second quarter, stable with levels of the past two quarters, in excess of net charge-offs of $1.1 million. * Net charge-offs continued at historically low levels and were less than 20 basis points (0.20%) of average loans.
Notable events:
* WSFS acquired a majority interest in 1st Reverse Financial Services, LLC (1st Reverse), specializing in business-to-business reverse mortgage lending through banks and financial institutions throughout the United States. * WSFS continued its franchise growth, recently opening branches in Selbyville and Smyrna, Delaware.
CEO outlook and commentary:
Mark A. Turner, WSFS' President and CEO said, "The weak credit environment continues to have an impact on our earnings and that of the industry in general. However, we recognize this market disruption as an opportunity for well capitalized companies with solid earnings to take advantage of growth opportunities. We have done just that.
"In prior quarters, I have discussed a number of decisions we have made in growing our business that have positioned us for the current economic environment. We continue to manage under and benefit from those decisions including maintaining a diversified commercial portfolio with limits on high risk lending activities. As an example, residential development loans now represent less than 7% of our loan portfolio. Additionally, our underwriting standards have resulted in residential and consumer delinquencies that are lower than half the national average, and in some cases much lower. Our securities portfolio continues to perform well and is comprised predominantly of 'plain vanilla' AAA-rated, short duration securities. There are no sub-prime mortgages as collateral in our mortgage-backed portfolio and the collateral underlying these securities is performing well. We have no trust preferred pooled securities in our investment portfolio and our bank owned life insurance (BOLI) investment has not suffered from asset quality or insurance-wrap issues that have affected other banks.
"Earnings remain strong despite the current economic environment. We have grown our margin 20 basis points this quarter through active management of our balance sheet and disciplined product pricing. This growth has helped to increase pre-tax earnings from first quarter levels which is particularly gratifying since the first quarter included $2.0 million in Visa-related earnings. This has allowed us to continue to build our capital levels.
"As a result, we are in a strong position to take advantage of opportunities to grow our franchise. We recently opened new branch offices in Selbyville and Smyrna, continuing our string of branch office openings. In early May we announced the acquisition of a majority ownership in 1st Reverse Financial Services, LLC (1st Reverse). As with many new initiatives, we expect modest start-up losses, and 1st Reverse experienced a $0.02 per share loss this quarter, but believe the revenue and profit opportunities of providing this product line are great. We also are using this economic environment as an opportunity to optimize our banking operations and customer service and retention platform."
Second Quarter 2008 Discussion of Financial Results
Net interest income improves
Net interest income and net interest margin for the second quarter of 2008 were $22.4 million and 3.20%, respectively, a significant increase of $1.4 million or 20 basis points (0.20%) from the first quarter of 2008. These increases were the result of a liability sensitive balance sheet combined with active management of deposit pricing during the recent round of Federal Reserve rate reductions.
Net interest income for the second quarter of 2008 improved by $2.2 million in comparison to the second quarter of 2007. The interest margin increased 10 basis points (0.10%) from 3.10% reported in the second quarter of 2007.
Total commercial loans increased 16% or $216.4 million from June 2007
Commercial and commercial real estate (CRE) loans increased a strong $216.4 million, or 16% over June 30, 2007. More than half of this growth was due to commercial and industrial (C&I) loans. Construction and land development (CLD) loans decreased $12.0 million from June 30, 2007. Total net loans were $2.3 billion at June 30, 2008, an increase of $205.5 million, or 10%, over June 30, 2007.
Commercial and CRE loans increased $46.3 million, or 3% (12% annualized) over March 31, 2008 levels. This included a $36.3 million, or 5% (18% annualized) increase in C&I loans. CLD loans decreased $13.0 million during the quarter. Total net loans increased $47.1 million, or 2% (8% annualized) over March 31, 2008.
The following table summarizes the current loan balances and composition compared to prior periods.
At At At
(Dollars in Jun. 30, 2008 Mar. 31, 2008 Jun. 30, 2007
thousands) ------------- ------------- -------------
Commercial and
CRE $1,602,103 70% $1,555,799 69% $1,385,662 66%
Residential
mortgage 436,216 19 439,328 20 457,881 22
Consumer 280,887 12 275,636 12 270,297 13
Allowance for
loan losses (28,198) (1) (26,868) (1) (28,359) (1)
---------- --- ---------- --- ---------- ---
Net Loans $2,291,008 100% $2,243,895 100% $2,085,481 100%
Asset quality
The Company recorded a provision for loan losses of $2.4 million, in the second quarter of 2008, due to continued loan growth and the effect of current economic conditions on the loan portfolio, compared to $1.3 million in the second quarter of 2007 and $2.4 million in the first quarter of 2008. The ratio of allowance for loan losses to total loans increased to 1.22% at June 30, 2008, compared to 1.18% at March 31, 2008. This ratio stood at 1.34% at June 30, 2007.
Nonperforming assets as a percentage of total assets was 0.95% at June 30, 2008 compared to 0.62% at March 31, 2008 and 0.14% at June 30, 2007. The increase from March 31, 2008 is due primarily to a $9.7 million residential development loan. The bank has established a specific reserve for this loan, equal to the difference between its carrying value and estimated net realizable value, the majority of which is included in this quarter's provision for loan losses.
Annualized net charge-offs in the second quarter of 2008 continued at historically low levels and were 0.19% of average loans. This compares to 0.14% for the first quarter of 2008 and 0.10% for the second quarter of 2007.
Customer deposits
Total customer deposits (core deposits and customer time deposits) were $1.5 billion at June 30, 2008, an increase of $24.0 million, or 2%, over balances at June 30, 2007. The growth rate in deposits is slower than historical levels and reflects increased competition including competition from a small number of liquidity-focused competitors, as well as additional focus on deposit pricing. This focus on deposit pricing during the recent rounds of Federal Reserve rate reductions contributed to the Company's margin improvement.
Customer deposits increased $9.7 million, or 1% (3% annualized) over levels reported for March 31, 2008. Average customer deposits increased $38.5 million, or 3% (11% annualized) over the first quarter of 2008.
The following table summarizes the current customer deposit balances and composition compared to prior periods.
(Dollars At At At
in thousands) Jun. 30, 2008 Mar. 31, 2008 Jun. 30, 2007
------------- ------------- -------------
Noninterest
demand $ 302,969 20% $ 291,595 20% $ 295,729 20%
Interest-
bearing
demand 169,741 12 172,937 12 162,487 11
Savings 195,817 13 196,930 13 216,104 15
Money market 293,703 20 316,067 21 308,639 21
---------- ---- ---------- ---- ---------- ----
Total core
deposits 962,230 65 977,529 66 982,959 67
Customer time 526,426 35 501,459 34 481,742 33
---------- ---- ---------- ---- ---------- ----
Total customer
deposits $1,488,656 100% $1,478,988 100% $1,464,701 100%
Noninterest income
During the second quarter of 2008, the Company recorded noninterest income of $11.7 million, a slight increase over the second quarter of 2007. This included increases of $320,000 in deposit service charges and $196,000 in loan fee income, primarily due to overall growth in deposits and loans. The increase also included $227,000 in fees from 1st Reverse, which was included in WSFS' results for two months of the quarter. Offsetting these increases was a $760,000 decrease in credit/debit card and ATM income mainly from Cash Connect, WSFS' ATM division. This decrease was mostly due to reduced market rates on ATM bailment fees. Excluding the revenues from Cash Connect, noninterest income increased $815,000, or 12%, from the second quarter of 2007. While noninterest income comparisons were negatively impacted by lower bailment fees, the net interest margin benefited due to lower funding costs.
Noninterest income was $835,000 less than the first quarter of 2008. This first quarter of 2008 included a $1.4 million gain on the sale of shares related to the completion of Visa's initial public offering (IPO) partially offset by a $303,000 charge related to a mark-to-market of trading securities. Excluding these items, noninterest income increased by $232,000, or 2% (8% annualized). This increase included $376,000 in deposit service charges and $134,000 in loan fee income. The increase also included $227,000 in fees from 1st Reverse. Partially offsetting these increases was a $217,000 decrease in credit/debit card and ATM income due to reduced market rates on ATM bailment fees.
Noninterest expense increases reflect continued investment in WSFS franchise
Noninterest expenses for the second quarter of 2008 totaled $21.2 million, which was $2.1 million, or 11% greater than the second quarter of 2007. This increase included $469,000 of expenses related to 1st Reverse which was included in WSFS' results for two months of the quarter. Additionally, salaries and benefits increased $688,000, other operating expenses increased $376,000 and marketing expense increased $280,000. Expenses are actively managed and these increases are in accordance with the Company's growth plans.
Noninterest expenses increased $233,000, or 1% from the first quarter of 2008. As previously mentioned, this increase included $469,000 of expenses related to 1st Reverse. The first quarter of 2008 included a reversal of a $562,000 contingency reserve corresponding with the completion of Visa's IPO. Excluding these items, noninterest expense decreased $798,000, or 4%, compared to the first quarter of 2008. This decrease included a $548,000 decrease in salaries and benefits and a $438,000 decrease in other operating expenses. The decrease in salaries and benefits related to decreased payroll taxes and decreased 401(k) expenses while the decrease in other operating expenses was the result of a number of reduced items.
Income taxes
Pre-tax income increased $287,000 or 3% from the first quarter of 2008; however net income decreased due to an increase in the effective tax rate in the second quarter of 2008. The Company recorded a $3.7 million income tax provision (reflecting a 35.8% effective tax rate) in the second quarter of 2008 versus $4.2 million in the second quarter of 2007 (36.9% effective tax rate) and $2.9 million in the first quarter of 2008 (28.6% effective tax rate). The higher rate in 2007 resulted from a one-time charge to reflect changes in Maryland tax law. The lower rate in the first quarter of 2008 resulted from a $723,000 tax benefit resulting from the expiration of the statute of limitations affecting certain previously recorded reserves. Excluding this tax benefit, the Company would have recorded a $3.6 million tax provision (reflecting a 35.7% effective tax rate). Volatility on effective tax rates from quarter to quarter is expected as the result of tax accounting guidance adopted in the first quarter of 2007, and will continue into the future.
Capital management
The Company strengthened its capital by growing equity $15.7 million over June 30, 2007 levels. All capital levels are in excess of "well-capitalized" regulatory benchmarks, the regulators' highest capital rating. The Tier 1 capital ratio was 11.03%, significantly above the 6.00% level required to be considered "well-capitalized" under regulatory definitions. The ratio of tangible equity to assets decreased slightly to 6.66% at June 30, 2008 from 6.72% at March 31, 2008, as equity increased $619,000. Tangible book value per share decreased slightly to $34.66 at June 30, 2008, from $34.73 at March 31, 2008 but increased from $31.47 at June 30, 2007. During the quarter the Company repurchased 8,500 shares of common stock at an average price of $48.93 per share. At June 30, 2008, the Company had 531,000 shares remaining under its current share repurchase authorization, or 8.7% of its 6.1 million outstanding shares.
WSFS' Board of Directors declares a quarterly cash dividend of $0.12 per share
The Board of Directors also declared a quarterly cash dividend of $0.12 per share. This dividend represents a 20% increase from that of the second quarter of 2007. This dividend will be paid on August 29, 2008, to shareholders of record as of August 8, 2008.
WSFS Financial Corporation is a $3.2 billion financial services company. Its principal subsidiary, Wilmington Savings Fund Society, FSB, currently operates 34 retail banking and loan production offices in Delaware, as well as Southeastern Pennsylvania and Northern Virginia, providing comprehensive banking services including wealth management and personal trust services. 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 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 are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors 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 Six months
ended ended
----------------------------- -------------------
June 30, March 31, June 30, June 30, June 30,
2008 2008 2007 2008 2007
--------- --------- --------- --------- ---------
Interest income:
Interest and fees
on loans $34,464 $ 37,682 $ 39,385 $ 72,146 $ 77,854
Interest on
mortgage-backed
securities 5,715 5,988 6,001 11,703 12,238
Interest and
dividends on
investment
securities 202 338 723 540 2,437
Other interest
income 414 552 558 966 1,226
--------- --------- --------- --------- ---------
40,795 44,560 46,667 85,355 93,755
--------- --------- --------- --------- ---------
Interest expense:
Interest on
deposits 9,223 12,129 14,299 21,352 28,687
Interest on Federal
Home Loan Bank
advances 7,356 8,968 9,538 16,324 18,460
Interest on trust
preferred
borrowings 783 1,018 1,161 1,801 2,338
Interest on other
borrowings 1,066 1,476 1,529 2,542 3,070
--------- --------- --------- --------- ---------
18,428 23,591 26,527 42,019 52,555
--------- --------- --------- --------- ---------
Net interest
income 22,367 20,969 20,140 43,336 41,200
Provision for
loan losses 2,433 2,390 1,273 4,823 1,644
--------- --------- --------- --------- ---------
Net interest
income after
provision for
loan losses 19,934 18,579 18,867 38,513 39,556
--------- --------- --------- --------- ---------
Noninterest income:
Credit/debit card
and ATM income 4,314 4,531 5,074 8,845 9,557
Deposit service
charges 4,174 3,798 3,854 7,972 7,456
Investment advisory
income 591 655 598 1,246 1,192
Loan fee income 1,004 643 581 1,647 1,142
Bank owned life
insurance income 456 574 542 1,030 1,099
Mortgage banking
activities, net 93 105 78 198 150
Securities gains 53 1,067 -- 1,120 --
Other income 986 1,133 889 2,119 1,753
--------- --------- --------- --------- ---------
11,671 12,506 11,616 24,177 22,349
--------- --------- --------- --------- ---------
Noninterest expenses:
Salaries, benefits
and other
compensation 11,297 11,487 10,251 22,784 21,101
Occupancy expense 2,063 2,107 2,083 4,170 3,915
Equipment expense 1,533 1,463 1,345 2,996 2,591
Data processing
and operations
expense 1,082 1,038 946 2,120 1,889
Marketing expense 1,161 907 867 2,068 1,609
Professional fees 723 849 654 1,572 1,307
Other operating
expenses 3,311 3,086 2,881 6,397 5,973
--------- --------- --------- --------- ---------
21,170 20,937 19,027 42,107 38,385
--------- --------- --------- --------- ---------
Income before
taxes 10,435 10,148 11,456 20,583 23,520
Income tax
provision 3,735 2,902 4,227 6,637 8,510
Net income $ 6,700 $ 7,246 $ 7,229 $ 13,946 $ 15,010
========= ========= ========= ========= =========
Diluted earnings
per share:
Net income $ 1.07 $ 1.15 $ 1.11 $ 2.22 $ 2.26
========= ========= ========= ========= =========
Weighted average
shares
outstanding for
diluted EPS 6,279,051 6,310,171 6,500,209 6,294,728 6,632,566
---------------------------------------------------------------------
Performance Ratios:
Return on average
assets (a) 0.85% 0.91% 0.98% 0.88% 1.02%
Return on average
equity (a) 12.29 13.17 14.21 12.73 14.49
Net interest
margin (a)(b) 3.20 3.00 3.10 3.10 3.17
Efficiency
ratio (c) 61.69 62.03 59.40 61.86 59.88
Noninterest income
as a percentage
of total
revenue (b) 34.01 37.05 36.26 35.52 34.86
---------------------------------------------------------------------
See "Notes"
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENT OF CONDITION:
(Dollars in thousands)
(Unaudited)
June 30, March 31, June 30,
2008 2008 2007
------------ ------------ ------------
Assets:
-------
Cash and due from banks $ 76,543 $ 75,115 $ 83,291
Cash in non-owned ATMs 167,693 175,313 176,987
Investment securities (d)(e) 32,868 32,086 28,494
Other investments 40,397 43,715 41,568
Mortgage-backed securities(d) 457,208 477,234 472,467
Net loans (f)(g)(n) 2,291,008 2,243,895 2,085,481
Bank owned life insurance 58,581 58,125 56,381
Other assets 73,745 69,851 73,450
------------ ------------ ------------
Total assets $ 3,198,043 $ 3,175,334 $ 3,018,119
============ ============ ============
Liabilities and
Stockholders' Equity:
----------------------
Noninterest-bearing deposits $ 302,969 $ 291,595 $ 295,729
Interest-bearing deposits 1,185,687 1,187,393 1,168,972
------------ ------------ ------------
Total customer deposits 1,488,656 1,478,988 1,464,701
Other jumbo CDs 78,618 87,322 100,595
Brokered deposits 288,590 238,071 283,265
------------ ------------ ------------
Total deposits 1,855,864 1,804,381 1,848,561
------------ ------------ ------------
Federal Home Loan Bank
advances 833,130 883,899 734,377
Other borrowings 250,542 243,659 205,085
Other liabilities 41,633 27,140 28,886
------------ ------------ ------------
Total liabilities 2,981,169 2,959,079 2,816,909
------------ ------------ ------------
Minority interest -- -- 34
Stockholders' equity 216,874 216,255 201,176
------------ ------------ ------------
Total liabilities, minority
interest and stockholders'
equity $ 3,198,043 $ 3,175,334 $ 3,018,119
============ ============ ============
---------------------------------------------------------------------
Capital Ratios:
Equity to asset ratio 6.78% 6.81% 6.67%
Tangible equity to asset
ratio 6.66 6.72 6.57
Core capital (h) (required:
4.00%; well-capitalized:
5.00%) 8.83 8.72 8.99
Tier 1 capital (h) (required:
4.00%; well-capitalized:
6.00%) 11.03 11.03 11.68
Risk-based capital (h)
(required: 8.00%;
well-capitalized: 10.00%) 12.02 12.04 12.88
---------------------------------------------------------------------
Asset Quality Indicators:
Nonperforming Assets:
Nonaccruing loans $ 28,289 $ 17,934 $ 3,873
Troubled debt restructuring 905 818 --
Assets acquired through
foreclosure 1,248 1,033 388
------------ ------------ ------------
Total nonperforming
assets $ 30,442 $ 19,785 $ 4,261
============ ============ ============
Past due loans (i) $ 51 $ 3,915 $ 426
Allowance for loan losses $ 28,198 $ 26,868 $ 28,359
Ratio of nonperforming
assets to total assets 0.95% 0.62% 0.14%
Ratio of allowance for loan
losses to total gross
loans (j) 1.22 1.18 1.34
Ratio of allowance for loan
losses to nonaccruing
loans (k) 91 144 719
Ratio of quarterly net
charge-offs to average
gross loans (a)(f) 0.19 0.14 0.10
Ratio of year-to-date net
charge-offs to average
gross loans (a)(f) 0.16 0.14 0.06
---------------------------------------------------------------------
See "Notes"
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
AVERAGE BALANCE SHEET
(Dollars in thousands)
(Unaudited)
---------------------------------
June 30, 2008
---------------------------------
Average Interest & Yield/
Balance Dividends Rate (a)(b)
--------- --------- ----------
Assets:
Interest-earning assets:
Loans: (f) (l)
Commercial real estate loans $ 754,051 $ 11,407 6.05%
Residential real estate loans (n) 438,132 6,339 5.79
Commercial loans 821,889 12,446 6.12
Consumer loans 276,695 4,272 6.21
--------- ---------
Total loans (n) 2,290,767 34,464 6.07
Mortgage-backed securities (d) 463,196 5,715 4.94
Investment securities (d)(e) 31,698 202 2.55
Other interest-earning assets 42,829 414 3.89
--------- ---------
Total interest-earning assets 2,828,490 40,795 5.81
Allowance for loan losses (26,998)
Cash and due from banks 62,679
Cash in non-owned ATMs 174,223
Bank owned life insurance 58,283
Other noninterest-earning assets 68,784
---------
Total assets $3,165,461
=========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest bearing deposits:
Interest-bearing demand $ 167,939 $ 184 0.44
Money market 300,181 1,158 1.55
Savings 195,646 139 0.29
Customer time deposits 525,982 5,046 3.86
--------- ---------
Total interest-bearing
customer deposits 1,189,748 6,527 2.21
Other jumbo certificates
of deposit 85,861 635 2.97
Brokered deposits 275,041 2,061 3.01
--------- ---------
Total interest-bearing
deposits 1,550,650 9,223 2.39
FHLB of Pittsburgh advances 842,780 7,356 3.45
Trust preferred borrowings 67,011 783 4.62
Other borrowed funds 178,556 1,066 2.39
--------- ---------
Total interest-bearing
liabilities 2,638,997 18,428 2.79
Noninterest-bearing demand
deposits 281,908
Other noninterest-bearing
liabilities 26,372
Minority interest --
Stockholders' equity 218,184
---------
Total liabilities and
stockholders' equity $3,165,461
=========
Excess of interest-earning
assets over interest-bearing
liabilities $ 189,493
=========
Net interest and dividend income $ 22,367
=========
Interest rate spread 3.02%
=======
Net interest margin 3.20%
=======
See "Notes"
Three months ended
---------------------------------------------------------
March 31, 2008 June 30, 2007
--------------------------- ----------------------------
Yield/ Yield/
Rate Rate
Average Interest & (a) Average Interest & (a)
Balance Dividends (b) Balance Dividends (b)
---------- ---------- ----- ---------- ---------- -----
Assets:
Interest-
earning
assets:
Loans:
(f) (l)
Commercial
real
estate
loans $ 747,433 $ 13,236 7.08% $ 663,812 $ 13,807 8.32%
Residen-
tial
real
estate
loans (n) 445,681 6,497 5.83 460,592 6,530 5.67
Commercial
loans 795,136 13,247 6.73 687,493 14,001 8.22
Consumer
loans 277,402 4,702 6.82 268,472 5,047 7.54
---------- ---------- ---------- ----------
Total
loans
(n) 2,265,652 37,682 6.70 2,080,369 39,385 7.63
Mortgage-
backed
securities
(d) 495,538 5,988 4.83 489,318 6,001 4.91
Investment
securities
(d)(e) 29,707 338 4.55 28,242 723 10.24
Other
interest-
earning
assets 45,296 552 4.90 39,117 558 5.72
---------- ---------- ---------- ----------
Total
interest
-earning
assets 2,836,193 44,560 6.32 2,637,046 46,667 7.12
Allowance
for loan
losses (25,496) (27,789)
Cash and due
from banks 70,191 70,648
Cash in
non-owned
ATMs 175,413 157,690
Bank owned
life
insurance 57,749 56,035
Other
noninterest
-earning
assets 65,478 67,315
---------- ----------
Total
assets $3,179,528 $2,960,945
========== ==========
Liabilities
and
Stock-
holders'
Equity:
Interest-
bearing
liabilities:
Interest
bearing
deposits:
Interest-
bearing
demand $ 161,832 $ 326 0.81 $ 147,552 $ 322 0.88
Money
market 304,226 2,172 2.87 309,655 3,002 3.89
Savings 194,440 257 0.53 217,117 439 0.81
Customer
time
deposits 504,155 5,639 4.50 458,298 5,353 4.68
---------- ---------- ---------- ----------
Total
interest
-bearing
customer
depos-
its 1,164,653 8,394 2.90 1,132,622 9,116 3.23
Other jumbo
certifi-
cates of
deposit 97,585 1,009 4.16 99,079 1,311 5.31
Brokered
depos-
its 256,454 2,726 4.28 287,025 3,872 5.41
---------- ---------- ---------- ----------
Total
interest-
bearing
depos-
its 1,518,692 12,129 3.21 1,518,726 14,299 3.78
FHLB of
Pittsburgh
advances 911,647 8,968 3.89 741,095 9,538 5.09
Trust
preferred
borrowings 67,011 1,018 6.01 67,011 1,161 6.85
Other
borrowed
funds 170,538 1,476 3.46 127,905 1,529 4.78
---------- ---------- ---------- ----------
Total
interest
-bearing
liabil-
ities 2,667,888 23,591 3.54 2,454,737 26,527 4.32
Noninterest
-bearing
demand
deposits 268,543 278,360
Other
noninterest
-bearing
liabili-
ties 23,063 24,376
Minority
interest -- 38
Stock-
holders'
equity 220,034 203,434
---------- ----------
Total
liabilities
and
stock-
holders'
equity $3,179,528 $2,960,945
========== ==========
Excess of
interest-
earning
assets
over
interest-
bearing
liabili-
ties $ 168,305 $ 182,309
========== ==========
Net interest
and
dividend
income $ 20,969 $ 20,140
========== ==========
Interest
rate spread 2.78% 2.80%
===== =====
Net interest
margin 3.00% 3.10%
===== =====
See "Notes"
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended Six months ended
--------------------------- -----------------
June 30, March 31, June 30, June 30, June 30,
2008 2008 2007 2008 2007
--------------------------- -------- --------
Stock Information:
Market price of common
stock:
High $ 53.12 $ 53.79 $ 68.08 $ 53.79 $ 70.69
Low 43.08 44.46 63.12 43.08 61.31
Close 44.60 49.28 65.43 44.60 65.43
Book value per share 35.35 35.22 31.95
Tangible book value
per share 34.66 34.73 31.47
Number of shares
outstanding (000s) 6,134 6,141 6,296
---------------------------------------------------------------------
Other Financial Data:
One-year repricing gap
to total assets (m) (0.55)% (1.33)% (0.67)%
Weighted average
duration of the MBS
portfolio 3.1 years 2.6 years 3.4 years
Unrealized losses on
securities available-
for-sale, net
of taxes $ (5,257) $ (3,921) $ (9,853)
Number of associates
(FTEs) 664 603 609
Number of branch
offices 29 29 30
Number of WSFS owned
ATMs 322 326 317
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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.