WILMINGTON, Del., Oct. 23, 2008 (GLOBE NEWSWIRE) -- WSFS Financial Corporation (Nasdaq:WSFS), the parent company of Wilmington Savings Fund Society, FSB, reported quarterly diluted earnings per share of $0.90, or net income of $5.7 million, compared to $1.11, or $7.1 million in the third quarter of 2007. Net income for the first nine months of 2008 was $19.6 million, or $3.12 per diluted share, compared to $22.2 million, or $3.38 in 2007.
Highlights include:
-- The net interest margin improved to 3.28% for the quarter, from
3.20% in the second quarter of 2008 and 3.04% in the third
quarter of 2007. Net interest income increased 16% or $3.2
million from the third quarter of 2007.
-- Commercial loan growth continued, increasing 11%, or $167.2
million from the end of the third quarter of 2007.
-- Customer deposits continued to grow, increasing 6%, or $85.0
million from the end of the third quarter of 2007. Growth in
customer deposits has accelerated this quarter, increasing 12%,
on an annualized basis, from June 30, 2008.
-- Capital continued to increase, growing $20.4 million from the end
of the third quarter of 2007, and remains substantially above
"well-capitalized" levels by all regulatory measures. Tangible
equity to assets increased to 6.74% at September 30, 2008 from
6.66% at June 30, 2008.
Notable events:
-- During the quarter WSFS announced an agreement to acquire Sun
National Bank's six Delaware branch offices, including deposits
of approximately $96 million and adding more than 6,600 customers
to the Company's franchise. This transaction is expected to close
on October 24, 2008.
-- 1st Reverse Financial Services, LLC (1st Reverse), an early stage
business, which is focused on originating and selling reverse
mortgages nationally, reduced the company's earnings per share by
$0.08 in the third quarter 2008.
CEO outlook and commentary:
Mark A. Turner, WSFS' President and CEO, said, "Key measures for our Company reflect the success we are having in growing our core banking business. Our quarterly results show positive operating leverage compared to last year's normalized third quarter, meaning that our revenues grew faster than our operating expenses. Our positive operating leverage is a reflection of the success that we have had in growing our core banking franchise and builds on the positive results we are experiencing in many of our Company's performance metrics, such as continued margin expansion.
"However, the weak economic environment continues to negatively affect our credit statistics. Nonperforming assets are up to 1.12% and net charge-offs are also up, reflecting progress we are making in resolving problem credits. The impact of a weak economic environment resulted in a provision for loan losses well above the levels we reported last quarter and for the third quarter of last year.
"As I have discussed in previous quarters, our loan portfolio is well diversified as we manage within internal concentration limits developed a number of years ago. These limits govern the size of our loan portfolios, including construction and land development (CLD) loans. In fact, during the quarter our residential CLD loan portfolio decreased to just 6% of total loans.
"As a result of our prudent risk management, we have no exposure to trust preferred securities, Fannie Mae or Freddie Mac preferred stock, or asset backed securities collateralized by sub-prime mortgages. Our securities portfolio continues to perform well and is comprised predominantly of 'plain vanilla' AAA-rated short duration securities.
"The strength of our balance sheet and earnings allows us to take advantage of opportunities to continue to grow our franchise, such as the acquisition of Sun National Bank's Delaware branches, which is expected to close later this month. This acquisition presents an opportunity for us to build our branch network and customer base, increase our earnings and improve our funding costs and liquidity -- benefits that are particularly attractive in the current operating environment."
Third Quarter 2008 Discussion of Financial Results
Net interest income
Net interest income for the third quarter of 2008 was $23.3 million and the net interest margin was 3.28%, displaying strong growth of $940,000 and 8 basis points (0.08%) from the second quarter of 2008. These increases reflect the continued positive impact of deposit pricing management efforts, combined with a recovery from the temporary negative impact of Federal Reserve rate reductions made early in the year. Similarly, additional recent Federal Reserve rate reductions and deposit pricing competition will put pressure on the net interest margin in the near term.
Net interest income for the third quarter of 2008 improved by $3.2 million, or 16% in comparison to the third quarter of 2007. Accordingly, the net interest margin increased a strong 24 basis points (0.24%) from 3.04% reported in the third quarter of 2007.
Total commercial loans increased 11% or $167.2 million from September 2007
Commercial and commercial real estate (CRE) loans increased a strong $167.2 million, or 11% over September 30, 2007. Nearly three quarters of this growth ($120.8 million) was due to commercial and industrial (C&I) loans. Construction and land development (CLD) loans decreased $27.0 million, or 11% from September 30, 2007. Making up the difference, commercial mortgages increased $73.4 million, or 16%. Total net loans were $2.3 billion at September 30, 2008, an increase of $172.2 million, or 8%, over September 30, 2007.
Commercial and CRE loans increased $33.1 million, or 2% (8% annualized) over June 30, 2008 levels. This included a $46.4 million, or 6% (22% annualized) increase in C&I loans. CLD loans decreased $9.0 million, or 4% (15% annualized) during the quarter. Commercial mortgages were relatively flat compared to the previous quarter. Total net loans increased $39.2 million, or 2% (7% annualized) over June 30, 2008.
The following table summarizes the current loan balances and composition compared to prior periods.
(Dollars in At At At
thousands) Sep. 30, 2008 Jun. 30, 2008 Sep. 30, 2007
------------- ------------- -------------
Commercial
and CRE $1,635,162 70% $1,602,103 70% $1,467,960 68%
Residential
mortgage 434,125 19 436,216 19 450,364 21
Consumer 289,301 12 280,887 12 268,468 12
Allowance
for loan
losses (28,358) (1) (28,198) (1) (28,768) (1)
---------- --- ---------- --- ---------- ---
Net Loans $2,330,230 100% $2,291,008 100% $2,158,024 100%
Asset quality
The Company recorded a provision for loan losses of $3.5 million in the third quarter of 2008, compared to $1.0 million in the third quarter of 2007 and $2.4 million in the second quarter of 2008. The ratio of allowance for loan losses to total loans was 1.20% at September 30, 2008, compared to 1.22% at June 30, 2008. This ratio stood at 1.32% at September 30, 2007. The increased level of provisioning this quarter is attributable to continued loan growth in our commercial portfolio, combined with the current economic conditions, particularly in the housing sector and those businesses related to residential real estate.
Nonperforming assets as a percentage of total assets was 1.12% at September 30, 2008 compared to 0.95% at June 30, 2008 and 0.53% at September 30, 2007. This was driven by an increase in nonperforming real estate construction related loans.
Annualized net charge-offs in the third quarter of 2008 were 0.57% of average loans compared to 0.19% for the second quarter of 2008 and 0.11% for the third quarter of 2007. On a year-to-date basis net charge-offs for 2008 were 0.30% compared to 0.08% for 2007. The increase in net charge-offs reflects our progress in resolving problem credits, utilizing reserves provided in previous periods. The provision for loan losses of $3.5 million recorded during the third quarter of 2008 slightly exceeded net charge-offs of $3.3 million recorded during the quarter.
Customer deposits
Total customer deposits (core deposits and customer time deposits) were $1.5 billion at September 30, 2008, an increase of $85.0 million, or 6%, over balances at September 30, 2007. The growth in deposits was mainly the result of an increase in demand accounts and customer time deposits.
Customer deposits increased $45.1 million, or 3% (12% annualized) over levels reported for June 30, 2008. Consistent with the year-over-year increase, the linked quarter increase in deposits was mainly due to increased demand accounts and customer time deposits.
The following table summarizes current customer deposit balances and composition compared to prior periods.
(Dollars in At At At
thousands) Sep. 30, 2008 Jun. 30, 2008 Sep. 30, 2007
------------- ------------- -------------
Noninterest
demand $ 294,648 19% $ 302,969 20% $ 272,678 19%
Interest-
bearing
demand 184,566 12 169,741 12 172,680 12
Savings 192,515 13 195,817 13 203,560 14
Money
market 286,020 19 293,703 20 311,132 21
---------- --- ---------- --- ---------- ---
Total core
deposits 957,749 63 962,230 65 960,050 66
Customer
time 576,011 37 526,426 35 488,735 34
---------- --- ---------- --- ---------- ---
Total
customer
deposits $1,533,760 100% $1,488,656 100% $1,448,785 100%
Noninterest income
During the third quarter of 2008, the Company recorded noninterest income of $11.7 million, compared to $12.8 million in the third quarter of 2007. Contributing to this decrease was a $789,000 reduction in credit/debit card and ATM income, the result of reduced prime-rate based ATM bailment fees from Cash Connect, WSFS' ATM division. While noninterest income comparisons were negatively impacted by lower bailment fees, the net interest margin continued to benefit from our lower funding costs for these borrowings. Offsetting this decrease were increases in deposit service charges of $417,000 and loan fee income of $204,000, primarily due to our investment in franchise growth. In addition, noninterest income was enhanced by $176,000 in fees from 1st Reverse. The third quarter of 2007 included an $882,000 one-time gain on the sale of the WSFS' credit card portfolio. Excluding the revenues from Cash Connect and the previously mentioned third quarter 2007 one-time gain on the sale of the WSFS' credit card portfolio, noninterest income increased $546,000, or 8%, from the third quarter of 2007.
Noninterest income increased slightly in comparison to the second quarter of 2008. Deposit service charges and credit/debit card and ATM income were seasonally higher than the previous quarter while loan fee income was lower due to reduced reverse mortgage fees.
Noninterest expense
Noninterest expenses for the third quarter of 2008 totaled $22.8 million, which was $1.4 million, or 7% greater than the third quarter of 2007. Excluding $898,000 of expenses related to 1st Reverse as we continue to develop its sales and operational platforms, expenses increased $546,000, or 3% over the third quarter of 2007. This increase included $562,000 in other operating expenses and $329,000 in professional fees. The increase in other operating expenses included a $174,000 increase in the FDIC charges due to increased assessment rates, as well as an increase in correspondent bank fees. The increase in professional fees related to increased legal expenses, reflecting increased costs relating to problem credits, typical at this point in the economic cycle. Partially offsetting these increases was a $351,000 decrease in marketing expenses due to higher expenses during last year's launch of our brand campaign.
Noninterest expenses increased $1.6 million, or 8% from the second quarter of 2008. Excluding $430,000 of increased expenses related to 1st Reverse, expenses were $1.2 million, or 6% over the second quarter of 2008. This included salaries and benefits of $635,000, other operating expenses of $389,000 and professional fees of $272,000, consistent with the previously mentioned year-over-year analysis.
On October 14, Visa notified members that it had reached a settlement in principle to a lawsuit brought against it by Discover; however, Visa has not disclosed the amount of this settlement. In the fourth quarter of 2007, we set aside a reserve for our portion of expenses related to this settlement based on currently available information.
Income taxes
The Company recorded a $3.1 million income tax provision (reflecting a 35.0% effective tax rate) in the third quarter of 2008 versus $3.4 million in the third quarter of 2007 (32.4% effective tax rate) and $3.7 million in the second quarter of 2008 (35.8% effective tax rate). Volatility on effective tax rates from quarter to quarter is expected and will continue into the future.
Capital management
The Company strengthened its capital by growing equity $20.3 million over September 30, 2007 levels. All capital levels are in excess of "well-capitalized" regulatory benchmarks, the regulators' highest capital rating. The Bank's Tier 1 capital ratio was 10.97%, significantly above the 6.00% level required to be considered "well-capitalized" under regulatory definitions. The ratio of tangible equity to assets increased to 6.74% at September 30, 2008 from 6.66% at June 30, 2008, as equity increased $6.6 million. Tangible book value per share also increased to $35.43 at September 30, 2008, from $34.66 at June 30, 2008 and $32.18 at September 30, 2007. During the quarter the Company did not repurchase any shares of common stock. At September 30, 2008, the Company had 531,000 shares remaining under its current share repurchase authorization, or 8.6% of its 6.2 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 third quarter of 2007. This dividend will be paid on November 28, 2008, to shareholders of record as of November 7, 2008.
WSFS Financial Corporation is a $3.3 billion financial services company. Its primary subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank), operates 31 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 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 ended
---------------------------------------
Sept. 30, June 30, Sept. 30,
2008 2008 2007
----------- ----------- -----------
Interest income:
Interest and fees on loans $ 34,683 $ 34,464 $ 40,747
Interest on mortgage-backed
securities 5,904 5,715 5,799
Interest and dividends on
investment securities 376 202 457
Other interest income 374 414 576
----------- ----------- -----------
41,337 40,795 47,579
----------- ----------- -----------
Interest expense:
Interest on deposits 8,936 9,223 15,066
Interest on Federal Home Loan
Bank advances 7,235 7,356 9,280
Interest on trust preferred
borrowings 747 783 1,217
Interest on other borrowings 1,112 1,066 1,917
----------- ----------- -----------
18,030 18,428 27,480
----------- ----------- -----------
Net interest income 23,307 22,367 20,099
Provision for loan losses 3,502 2,433 1,001
----------- ----------- -----------
Net interest income after
provision for loan losses 19,805 19,934 19,098
----------- ----------- -----------
Noninterest income:
Credit/debit card and ATM
income 4,416 4,314 5,205
Deposit service charges 4,354 4,174 3,937
Loan fee income 819 1,004 615
Investment advisory income 593 591 603
Bank owned life insurance
income 548 456 543
Gain on sale of credit card
loans -- -- 882
Mortgage banking activities,
net 66 93 68
Securities (losses) gains (5) 53 -
Other income 893 986 956
----------- ----------- -----------
11,684 11,671 12,809
----------- ----------- -----------
Noninterest expenses:
Salaries, benefits and other
compensation 12,211 11,297 11,347
Occupancy expense 2,118 2,063 2,287
Equipment expense 1,575 1,533 1,597
Data processing and
operations expense 1,095 1,082 1,089
Marketing expense 952 1,161 1,283
Professional fees 1,037 723 646
Other operating expenses 3,789 3,311 3,084
----------- ----------- -----------
22,777 21,170 21,333
----------- ----------- -----------
Income before taxes 8,712 10,435 10,574
Income tax provision 3,051 3,735 3,431
----------- ----------- -----------
Net income $ 5,661 $ 6,700 $ 7,143
=========== =========== ===========
Diluted earnings per share:
Net income $ 0.90 $ 1.07 $ 1.11
=========== =========== ===========
Weighted average
shares outstanding for
diluted EPS 6,290,130 6,279,051 6,426,816
====================================================================
Performance Ratios:
Return on average assets (a) 0.70% 0.85% 0.95%
Return on average equity (a) 10.22 12.29 14.02
Net interest margin (a)(b) 3.28 3.20 3.04
Efficiency ratio (c) 64.58 61.69 64.28
Noninterest income as a
percentage of total revenue (b) 33.13 34.01 38.60
====================================================================
Nine months ended
-------------------------
Sept. 30, Sept. 30,
2008 2007
----------- -----------
Interest income:
Interest and fees on loans $ 106,829 $ 118,601
Interest on mortgage-backed securities 17,607 18,037
Interest and dividends on investment
securities 916 2,894
Other interest income 1,340 1,802
----------- -----------
126,692 141,334
----------- -----------
Interest expense:
Interest on deposits 30,288 43,753
Interest on Federal Home Loan Bank advances 23,559 27,740
Interest on trust preferred borrowings 2,548 3,555
Interest on other borrowings 3,654 4,987
----------- -----------
60,049 80,035
----------- -----------
Net interest income 66,643 61,299
Provision for loan losses 8,325 2,645
----------- -----------
Net interest income after provision for
loan losses 58,318 58,654
----------- -----------
Noninterest income:
Credit/debit card and ATM income 13,261 14,762
Deposit service charges 12,326 11,393
Loan fee income 2,466 1,757
Investment advisory income 1,838 1,795
Bank owned life insurance income 1,578 1,642
Gain on sale of credit card loans -- 882
Mortgage banking activities, net 264 218
Securities (losses) gains 1,115 --
Other income 3,013 2,709
----------- -----------
35,861 35,158
----------- -----------
Noninterest expenses:
Salaries, benefits and other compensation 34,995 32,448
Occupancy expense 6,288 6,202
Equipment expense 4,571 4,188
Data processing and operations expense 3,215 2,978
Marketing expense 3,020 2,892
Professional fees 2,609 1,953
Other operating expenses 10,186 9,057
----------- -----------
64,884 59,718
----------- -----------
Income before taxes 29,295 34,094
Income tax provision 9,688 11,941
----------- -----------
Net income $ 19,607 $ 22,153
=========== ===========
Diluted earnings per share:
Net income $ 3.12 $ 3.38
=========== ===========
Weighted average shares outstanding for
diluted EPS 6,291,859 6,562,269
====================================================================
Performance Ratios:
Return on average assets (a) % 0.82% 1.00%
Return on average equity (a) 11.89 14.34
Net interest margin (a)(b) 3.16 3.13
Efficiency ratio (c) 62.79 61.38
Noninterest income as a percentage of total
revenue (b) 34.70 36.14
====================================================================
See "Notes"
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENT OF CONDITION:
(Dollars in thousands)
(Unaudited)
Sept. 30, June 30, Sept. 30,
2008 2008 2007
---------- ---------- ----------
Assets:
Cash and due from banks $ 61,410 $ 76,543 $ 69,948
Cash in non-owned ATMs 159,824 167,693 168,162
Investment securities (d)(e) 36,647 32,868 27,530
Other investments 41,746 40,397 42,517
Mortgage-backed
securities (d) 488,716 457,208 485,677
Net loans (f)(g)(n) 2,330,230 2,291,008 2,158,024
Bank owned life insurance 59,129 58,581 56,924
Other assets 77,139 73,745 74,996
---------- ---------- ----------
Total assets $3,254,841 $3,198,043 $3,083,778
========== ========== ==========
Liabilities and Stockholders'
Equity:
Noninterest-bearing deposits $ 294,648 $ 302,969 $ 272,678
Interest-bearing deposits 1,239,112 1,185,687 1,176,107
---------- ---------- ----------
Total customer deposits 1,533,760 1,488,656 1,448,785
Other jumbo CDs 101,203 78,618 93,580
Brokered deposits 338,494 288,590 268,724
---------- ---------- ----------
Total deposits 1,973,457 1,855,864 1,811,089
---------- ---------- ----------
Federal Home Loan Bank
advances 755,628 833,130 798,560
Other borrowings 269,567 250,542 236,120
Other liabilities 32,755 41,633 34,901
---------- ---------- ----------
Total liabilities 3,031,407 2,981,169 2,880,670
---------- ---------- ----------
Minority interest -- -- 34
Stockholders' equity 223,434 216,874 203,074
---------- ---------- ----------
Total liabilities, minority
interest and stockholders'
equity $3,254,841 $3,198,043 $3,083,778
========== ========== ==========
=====================================================================
Capital Ratios:
Equity to asset ratio 6.86% 6.78% 6.59%
Tangible equity to asset ratio 6.74 6.66 6.49
Core capital (h) (required:
4.00%; well-capitalized:
5.00%) 8.86 8.83 8.68
Tier 1 capital (h) (required:
4.00%; well-capitalized:
6.00%) 10.97 11.03 11.10
Risk-based capital (h)
(required: 8.00%;
well-capitalized: 10.00%) 11.94 12.02 12.22
=====================================================================
Asset Quality Indicators:
Nonperforming Assets:
Nonaccruing loans $ 31,368 $ 28,289 $ 15,727
Troubled debt restructuring 1,432 905 --
Assets acquired through
foreclosure 3,780 1,248 703
---------- ---------- ----------
Total nonperforming
assets $ 36,580 $ 30,442 $ 16,430
========== ========== ==========
Past due loans (i) $ 1,655 $ 51 $ 733
Allowance for loan losses $ 28,358 $ 28,198 $ 28,768
Ratio of nonperforming
assets to total assets 1.12% 0.95% 0.53%
Ratio of allowance for loan
losses to total gross
loans (j) 1.20 1.22 1.32
Ratio of allowance for loan
losses to nonaccruing
loans (k) 82 91 172
Ratio of quarterly net
charge-offs to average
gross loans (a)(f) 0.57 0.19 0.11
Ratio of year-to-date net
charge-offs to average
gross loans (a)(f) 0.30 0.16 0.08
=====================================================================
See "Notes"
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
AVERAGE BALANCE SHEET
(Dollars in thousands)
(Unaudited)
Three months ended
--------------------------------
September 30, 2008
--------------------------------
Yield/
Average Interest & Rate
Balance Dividends (a)(b)
---------- ---------- -------
Assets:
Interest-earning assets:
Loans: (f) (l)
Commercial real estate
loans $ 765,596 $11,202 5.85%
Residential real estate
loans (n) 435,983 6,453 5.92
Commercial loans 843,687 12,635 5.99
Consumer loans 284,215 4,393 6.15
---------- ----------
Total loans (n) 2,329,481 34,683 6.00
Mortgage-backed securities (d) 469,368 5,904 5.03
Investment securities (d)(e) 34,410 376 4.37
Other interest-earning assets 44,639 374 3.33
---------- ----------
Total interest-earning asset 2,877,898 41,337 5.78
----------
Allowance for loan losses (28,246)
Cash and due from banks 65,650
Cash in non-owned ATMs 176,441
Bank owned life insurance 58,769
Other noninterest-earning
assets 63,647
----------
Total assets $3,214,159
==========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand $ 172,650 $ 238 0.55%
Money market 290,027 1,176 1.61
Savings 195,758 150 0.30
Customer time deposits 521,807 4,490 3.42
---------- ----------
Total interest-bearing
customer deposits 1,180,242 6,054 2.04
Other jumbo certificates of
deposit 91,682 671 2.91
Brokered deposits 316,049 2,211 2.78
---------- ----------
Total interest-bearing
deposits 1,587,973 8,936 2.24
FHLB of Pittsburgh advances 823,750 7,235 3.44
Trust preferred borrowings 67,011 747 4.36
Other borrowed funds 194,929 1,112 2.28
---------- ----------
Total interest-bearing
liabilities 2,673,663 18,030 2.70
----------
Noninterest-bearing demand
deposits 286,128
Other noninterest-bearing
liabilities 32,893
Minority interest --
Stockholders' equity 221,475
----------
Total liabilities and
stockholders' equity $3,214,159
==========
Excess of interest-earning
assets over interest-bearing
liabilities $ 204,235
==========
Net interest and dividend
income $ 23,307
==========
Interest rate spread 3.08%
=====
Net interest margin 3.28%
=====
Three months ended
--------------------------------
June 30, 2008
--------------------------------
Yield/
Average Interest & Rate
Balance Dividends (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 asset 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%
=====
Three months ended
--------------------------------
September 30, 2007
--------------------------------
Yield/
Average Interest & Rate
Balance Dividends (a)(b)
---------- ---------- -------
Assets:
Interest-earning assets:
Loans: (f) (l)
Commercial real estate
loans $ 697,945 $ 14,286 8.19%
Residential real estate
loans (n) 454,010 6,551 5.77
Commercial loans 721,080 14,707 8.13
Consumer loans 272,881 5,203 7.56
---------- ----------
Total loans (n) 2,145,916 40,747 7.65
Mortgage-backed securities (d) 467,998 5,799 4.96
Investment securities (d)(e) 27,704 457 6.60
Other interest-earning assets 38,030 576 6.01
---------- ----------
Total interest-earning asset 2,679,648 47,579 7.14
----------
Allowance for loan losses (28,503)
Cash and due from banks 64,834
Cash in non-owned ATMs 169,775
Bank owned life insurance 56,571
Other noninterest-earning
assets 70,447
----------
Total assets $3,012,772
==========
Liabilities and Stockholders'
Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand $ 154,474 $ 401 1.03%
Money market 313,825 3,057 3.86
Savings 208,811 437 0.83
Customer time deposits 490,133 5,848 4.73
---------- ----------
Total interest-bearing
customer deposits 1,167,243 9,743 3.31
Other jumbo certificates of
deposit 94,535 1,268 5.32
Brokered deposits 299,337 4,055 5.38
---------- ----------
Total interest-bearing
deposits 1,561,115 15,066 3.83
FHLB of Pittsburgh advances 719,175 9,280 5.05
Trust preferred borrowings 67,011 1,217 7.11
Other borrowed funds 160,752 1,917 4.77
---------- ----------
Total interest-bearing
liabilities 2,508,053 27,480 4.38
----------
Noninterest-bearing demand
deposits 273,990
Other noninterest-bearing
liabilities 26,884
Minority interest 34
Stockholders' equity 203,811
----------
Total liabilities and
stockholders' equity $3,012,772
==========
Excess of interest-earning
assets over interest-bearing
liabilities $ 171,595
==========
Net interest and dividend
income $ 20,099
=========
Interest rate spread 2.76%
====
Net interest margin 3.04%
====
See "Notes"
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended Nine months ended
--------------------------- ------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2008 2008 2007 2008 2007
--------------------------- ------------------
Stock Information:
Market price of common
stock:
High $ 62.44 $ 53.12 $ 67.31 $ 62.44 $ 70.69
Low 41.54 43.08 54.15 41.54 54.15
Close 60.00 44.60 62.40 60.00 62.40
Book value per
share 36.15 35.35 32.67
Tangible book
value per share 35.43 34.66 32.18
Number of shares
outstanding (000s) 6,180 6,134 6,215
=====================================================================
Other Financial Data:
One-year repricing
gap to total
assets (m) (0.85)% (0.55)% (1.12)%
Weighted average
duration of
the MBS
portfolio 2.9 years 3.1 years 3.3 years
Unrealized losses
on securities
available-for-sale,
net of taxes $ (9,425) $ (9,178) $ (6,724)
Number of
associates
(FTEs) 645 664 612
Number of
branch
offices 31 29 29
Number of
WSFS owned
ATMs 313 322 319
=====================================================================
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.