EX-99 2 ex-99.txt PRESS RELEASE WSFS Financial Corporation 838 Market Street, Wilmington, Delaware 18801 1 FOR IMMEDIATE RELEASE Contact: Stephen A. Fowle October 24, 2006 (302) 571-6833 WSFS ANNOUNCES INCREASED 3Q '06 EPS OF $1.16 WSFS Financial Corporation (NASDAQ/NMS: WSFS), the parent company of Wilmington Savings Fund Society, FSB, reported quarterly net income of $8.0 million, or $1.16 per diluted share, a 9% increase over 2005 on a per share basis. This compares to net income of $7.4 million, or $1.06 per share for the third quarter of 2005. Net income for the first nine months of 2006 was $22.8 million, or $3.31 per diluted share, a 16% increase over $2.85 per diluted share reported for the first nine months of 2005. Highlights for the third quarter of 2006 include: o Return on equity of 16.0% o Increase in customer deposits of $142.0 million, or 12% over the third quarter of 2005 o Strong growth in loans of $288.3 million, or 17% over the third quarter of 2005 o Growth in noninterest income of 20%, or $1.7 million over the third quarter of 2005 o Opening of a new branch office in Long Neck (Sussex County, Delaware), with work begun on an additional branch office and two branch renovations o Sale of $51.4 million in below-market yielding mortgage-backed securities as part of the Company's efforts to improve its earning asset mix and return on assets Results for the quarter were impacted by: (1) $1.8 million in unanticipated income related to the Bank's investment in bank-owned life insurance (BOLI), which improved EPS by $0.26. (More) 2 This benefit is non-taxable income to the Bank and reduced the effective tax rate of the Company from 35% in the third quarter of 2005 to 30% this quarter; (2) $1.9 million loss on the sale of mortgage-backed securities (MBS) mentioned above, or $0.18 per share; and (3) $411,000, or $0.04 per share, of additional non-cash expense related to the 2005 refinance of the Company's trust preferred securities (discussed further in the "Net Interest Income" section). Marvin N. Schoenhals, Chairman and President of WSFS, said, "We are pleased with our continued franchise growth, as evidenced by our loan, deposit and earnings growth. Much of the success can be linked to our culture of engaged Associates who have created customer advocates for WSFS. A recent survey conducted by an internationally recognized company indicated that more than one-third of our customers rated WSFS a five out of a possible five on the statement `I can't imagine a world without WSFS.' " Third Quarter 2006 Financial Highlights Net Interest Income Net interest income for the third quarter of 2006 was $19.1 million. This compares to $19.2 million reported for the same quarter in 2005 and $19.4 million reported for the second quarter of 2006. The net interest margin of 2.88% for the third quarter of 2006 declined 6 basis points from the second quarter of 2006. The net interest margin was negatively impacted by the previously mentioned non-cash charge related to trust preferred borrowings ($411,000). This amount is related to hedge accounting at the time of the refinance of the Company's trust preferred securities in 2005 and is in addition to the non-cash charge related to unamortized issuance costs recorded at that time. In addition, the net interest margin was favorably affected by $232,000 of additional income, when compared to the second quarter of 2006, relating to reverse mortgages. (More) 3 The net interest margin continues to be negatively impacted by a flattening yield curve; growth in the Company's CashConnect (ATM) business (revenues related to cash outstanding for this business are recorded as fee income rather than interest income while the cost of funding these balances are charged to interest expense) and aggressive competition for deposits. "The Company took a significant step in its efforts to improve its asset and funding mix through the sale of more than $50 million in low yielding MBS late this quarter," said Stephen A. Fowle, Executive Vice President and Chief Financial Officer. "We look forward to the long-term margin, earnings and interest rate risk benefits from this ongoing balance-sheet realignment." WSFS customer deposits increased 12% from the third quarter of 2005 Total customer deposits (core deposits and customer time deposits) were $1.3 billion at September 30, 2006, an increase of $142.0 million, or 12%, over September 30, 2005 and increased $25.2 million, or 2% over June 30, 2006. The following table summarizes the current customer deposit balances and composition as compared to historical periods.
At At At (Dollars in thousands) Sep. 30, 2006 Jun. 30, 2006 Sep. 30, 2005 ------------- ------------- ------------- Amount % Amount % Amount % ------ --- ------ --- ------ --- Non-interest demand $ 263,363 20% $ 289,054 23% $ 266,598 23% Interest bearing demand 127,861 10 126,430 10 122,870 11 Savings 238,978 19 244,843 19 257,082 22 Money market 235,210 18 218,719 17 212,794 19 ---------- --- ---------- --- ---------- --- Total core deposits 865,412 67 879,046 69 859,344 75 Customer time 427,025 33 388,209 31 291,053 25 ---------- --- ---------- --- ---------- --- Total customer deposits $1,292,437 100% $1,267,255 100% $1,150,397 100%
As with much of the industry, the change in the mix of deposits continues to be affected by consumer preference for higher yielding non-transaction accounts. (More) 4 Marvin N. Schoenhals, Chairman and President of WSFS, said, "Our success in growing deposits was acknowledged by an article in the Wilmington, Delaware News Journal on October 16, 2006, which reported that `among the five largest retail banks in Delaware, WSFS saw its deposits grow fastest, rising 23 percent to $1.6 billion.' " Loan growth increased 17% from the third quarter of 2005 Net loans were $2.0 billion at September 30, 2006, an increase of $288.3 million, or 17%, over September 30, 2005 and increased $16.6 million, or 1% over June 30, 2006. Growth in comparison to the second quarter of 2006 was limited as a result of seasonality combined with a higher than normal amount of loan sales. During the quarter the Company sold mortgage loans that exceeded the average of the previous three quarters by $8.5 million. In addition, the Company securitized $3.0 million in mortgage loans during the third quarter as part of its efforts to improve its earning asset mix and return on assets. The following table summarizes the current loan balances and composition as well as recent changes in balances and composition.
At At At (Dollars in thousands) Sep. 30, 2006 Jun. 30, 2006 Sep. 30, 2005 ------------- ------------- ------------- Amount % Amount % Amount % ------ --- ------ --- ------ --- Commercial and CRE $1,264,246 64% $1,241,228 63% $1,053,168 62% Residential 484,105 24 495,715 25 439,975 26 Consumer 265,378 13 260,143 13 230,424 13 Allowance for loan losses (26,747) (1) (26,701) (1) (24,933) (1) ---------- --- ---------- --- ---------- --- Net Loans $1,986,982 100% $1,970,385 100% $1,698,634 100%
Asset Quality remains excellent The Company recorded a provision for loan losses of $319,000 in the third quarter of 2006, compared to $225,000 in the same period last year and $695,000 for the prior quarter. The (More) 5 current provision exceeded the level of net charge-offs for the quarter. The lower level of provision for loan losses compared to the prior quarter reflects continued strength in asset quality ratios, a slower loan growth trend and a change in estimates used to calculate the appropriate provision. The Company considered proposed interagency guidance on the classification of commercial credit published in 2005 to change its estimates. The ratio of allowance for loan losses to total loans is 1.33%, compared to 1.34% at June 30, 2006. Asset quality statistics continue to remain strong. Nonperforming assets as a percentage of assets increased slightly to 0.18% at September 30, 2006, from 0.11% at June 30, 2006, and the 0.16% reported at September 30, 2005. Annualized net charge-offs in the third quarter of 2006 were 0.05% (0.03% of which were overdraft charge-offs) of average loans compared to annualized net charge-offs of 0.03% (0.02% of which were overdraft charge-offs) for the second quarter of 2006 and annualized net charge-offs of 0.05% for the third quarter of 2005. Prior to the second quarter of 2006 overdraft charge-offs were not included as part of the provision for loan losses. WSFS's Noninterest Income up 20% over 2005 During the third quarter of 2006, the Company recorded noninterest income of $10.3 million, which was $1.7 million, or 20% greater than the third quarter of 2005 and $429,000, or 4% greater than the second quarter of 2006. In addition to the gain related to the BOLI and the loss on the sale of MBS mentioned earlier, the increase over the third quarter 2005 was mainly attributable to a $1.1 million increase in card and ATM income, and $303,000 in increased deposit service charges. This increase in card and ATM income was primarily due to increased volumes of cash in non-owned ATMs and higher rates earned on this cash. Increased deposit service charges were mainly due to an increase in deposit accounts resulting from the continued success of the Company's personal and business checking initiatives that began during the third quarter of 2004. During the third quarter of 2005 the Company reported a $609,000 loss on the sale of lower yielding agency investments. Consistent with the year-over-year trend, the increase over the second quarter of 2006 was mainly attributable to $153,000 in increased deposit service charges and a $124,000 increase in card and ATM income. (More) 6 Noninterest Expense increase reflects growth of franchise Noninterest expenses for the third quarter of 2006 totaled $17.6 million, which was $1.4 million, or 9% greater than the third quarter of 2005 and $655,000, or 4% greater than the second quarter of 2006. The increase over the third quarter of 2005 was primarily due to increases in compensation, equipment and data processing expenses, mainly the result of the Company's continued growth efforts (the number of full-time equivalent Associates increased from 512 in the third quarter of 2005 to 592 in the third quarter of 2006). Additionally, the increase in salaries, benefits and other compensation also includes $301,000 (pre-tax), or $0.04 (after-tax) per share, of expenses related to stock options due to the implementation of FAS 123 (revised 2004), Share-Based Payment (FAS 123R), this year. The increase over the second quarter of 2006 was primarily due to increases in compensation and equipment expenses, mainly the result of the Company's continued growth efforts. The Company has continued its aggressive branch expansion and renovation initiatives in addition to its recently formed Wealth Management Division. These efforts are expected to continue in the future. WSFS repurchases additional shares During the third quarter of 2006, the Company repurchased 19,400 shares of common stock at an average price of $60.39 per share. For the year the Company has repurchased 31,900 shares of common stock at an average price of $60.72 per share. At September 30, 2006, the Company had 618,100 shares remaining under its current share repurchase authorization, or 9.3% of its 6.7 million outstanding shares. The ratio of tangible equity to assets was 6.87% at September 30, 2006. The Tier 1 capital ratio was 12.21%, which is more than double the 6.00% level required to be considered "well-capitalized" under regulatory definitions. Tangible book value per share was $30.87 at September 30, 2006. (More) 7 WSFS Financial Corporation is a $3.0 billion financial services company. At September 30, 2006, its principal subsidiary, Wilmington Savings Fund Society, FSB, operated 26 retail banking offices in all three counties in Delaware, as well as Chester and Delaware Counties in Pennsylvania. Other operating subsidiaries include: WSFS Investment Group, Inc., Montchanin Capital Management, Inc. and WSFS Reit, Inc. 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. # # # (More) 8 WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS STATEMENT OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited)
Three months ended Nine months ended ---------------------------------------------- ----------------------------- September 30, June 30, September 30, September 30, September 30, 2006 2006 2005 2006 2005 -------------- ------------ ------------ -------------- ------------ Interest income: Interest and fees on loans $ 37,577 $ 35,332 $ 27,419 $ 105,005 $ 76,023 Interest on mortgage-backed securities 7,186 7,471 6,445 21,989 18,763 Interest and dividends on investment securities 616 388 921 1,639 2,315 Other interest income 752 677 351 1,843 1,086 ---------- ---------- ---------- ---------- ---------- 46,131 43,868 35,136 130,476 98,187 ---------- ---------- ---------- ---------- ---------- Interest expense: Interest on deposits 11,392 10,113 5,674 29,682 14,423 Interest on Federal Home Loan Bank advances 12,384 12,004 7,955 35,131 21,405 Interest on trust preferred borrowings 1,736 1,106 954 3,859 3,633 Interest on other borrowings 1,499 1,259 1,338 3,995 3,620 ---------- ---------- ---------- ---------- ---------- 27,011 24,482 15,921 72,667 43,081 ---------- ---------- ---------- ---------- ---------- Net interest income 19,120 19,386 19,215 57,809 55,106 Provision for loan losses 319 695 225 1,702 1,576 ---------- ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 18,801 18,691 18,990 56,107 53,530 ---------- ---------- ---------- ---------- ---------- Noninterest income: Credit/debit card and ATM income 4,982 4,858 3,907 14,000 10,775 Deposit service charges 2,979 2,826 2,676 8,382 7,341 Bank owned life insurance income 2,401 522 499 3,411 1,522 Investment advisory income 573 618 651 1,821 1,878 Loan fee income 458 413 516 1,292 1,511 Mortgage banking activities, net 136 61 106 219 287 Securities losses (1,940) (41) (609) (1,981) (609) Other income 720 623 838 2,083 2,449 ---------- ---------- ---------- ---------- ---------- 10,309 9,880 8,584 29,227 25,154 ---------- ---------- ---------- ---------- ---------- Noninterest expenses: Salaries, benefits and other compensation 10,189 9,421 9,061 28,802 26,377 Occupancy expense 1,387 1,347 1,290 4,034 3,829 Equipment expense 1,162 1,075 950 3,219 2,887 Data processing and operations expense 886 889 761 2,632 2,670 Marketing expense 676 728 689 2,017 2,042 Professional fees 587 505 610 1,349 1,661 Other operating expenses 2,700 2,967 2,789 8,708 7,257 ---------- ---------- ---------- ---------- ---------- 17,587 16,932 16,150 50,761 46,723 ---------- ---------- ---------- ---------- ---------- Income before minority interest and taxes 11,523 11,639 11,424 34,573 31,961 Less minority interest 9 15 48 40 122 ---------- ---------- ---------- ---------- ---------- Income before taxes 11,514 11,624 11,376 34,533 31,839 Income tax provision 3,511 4,126 3,969 11,691 11,076 ---------- ---------- ---------- ---------- ---------- Net income $ 8,003 $ 7,498 $ 7,407 $ 22,842 $ 20,763 ========== ========== ========== ========== ========== Diluted earnings per share: Net income $ 1.16 $ 1.09 $ 1.06 $ 3.31 $ 2.85 ========== ========== ========== ========== ========== Weighted average shares outstanding for diluted EPS 6,915,021 6,905,922 7,005,994 6,904,071 7,275,858 --------------------------------------------------------------------------------------------------- ----------------------------- Performance Ratios (continuing operations only): Return on average assets (a) 1.06 % 1.01 % 1.10 % 1.03 % 1.05 % Return on average equity (a) 16.02 15.82 16.15 15.86 14.41 Net interest margin (a)(b) 2.88 2.94 3.22 2.95 3.16 Efficiency ratio (c) 59.19 57.31 57.51 57.77 57.61 Noninterest income as a percentage of total revenue (b) 34.70 33.44 30.57 33.26 31.02 --------------------------------------------------------------------------------------------------- -----------------------------
See "Notes" 9 WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) SUMMARY STATEMENT OF CONDITION: (Dollars in thousands) (Unaudited)
September 30, June 30, September 30, 2006 2006 2005 ---------- ---------- ---------- Summary Statement of Condition: Assets: Cash and due from banks $ 67,616 $ 71,237 $ 61,012 Cash in non-owned ATMs 155,257 171,174 143,289 Investment securities (d)(e) 54,599 48,428 57,699 Other investments 63,784 50,461 45,934 Mortgage-backed securities (d) 537,912 599,933 593,496 Net loans (f)(g) 1,986,982 1,970,385 1,698,634 Loans held for sale (f) 621 1,752 2,199 Bank owned life insurance 57,604 55,203 53,713 Other assets 75,327 68,057 55,305 ---------- ---------- ---------- Total assets $2,999,702 $3,036,630 $2,711,281 ========== ========== ========== Liabilities and Stockholders' Equity: Noninterest-bearing deposits $ 263,363 $ 289,054 $ 266,598 Interest-bearing deposits 1,029,074 978,201 883,799 ---------- ---------- ---------- Total customer deposits 1,292,437 1,267,255 1,150,397 Other jumbo CDs 84,352 73,946 44,433 Brokered CDs 239,361 241,623 207,340 ---------- ---------- ---------- Total deposits 1,616,150 1,582,824 1,402,170 Federal Home Loan Bank advances 956,755 1,051,458 917,882 Other borrowings 188,960 183,764 191,755 Other liabilities 29,407 27,151 25,903 ---------- ---------- ---------- Total liabilities 2,791,272 2,845,197 2,537,710 ---------- ---------- ---------- Minority interest 47 69 200 Stockholders' equity 208,383 191,364 173,371 ---------- ---------- ---------- Total liabilities, minority interest and stockholders' equity $2,999,702 $3,036,630 $2,711,281 ========== ========== ========== ---------------------------------------------------------------------------------------------------------- Capital Ratios: Equity to asset ratio 6.95 % 6.30 % 6.39 % Tangible equity to asset ratio 6.87 6.23 6.33 Core capital (h) (required: 4.00%; well-capitalized: 5.00%) 8.96 8.53 8.69 Tier 1 Capital (h) (required: 4.00%; well-capitalized: 6.00%) 12.21 11.94 12.46 Risk-based capital (h) (required: 8.00%; well-capitalized: 10.00%)x 13.32 13.07 13.64 ---------------------------------------------------------------------------------------------------------- Asset Quality Indicators (continuing operations only): Nonperforming Assets: Nonaccruing loans $ 5,496 $ 3,189 $ 4,271 Assets acquired through foreclosure 17 61 89 ---------- ---------- ---------- Total nonperforming assets $ 5,513 $ 3,250 $ 4,360 ========== ========== ========== Past due loans (i) $ 289 $ 527 $ 207 Allowance for loan losses $ 26,747 $ 26,701 $ 24,933 Ratio of nonperforming assets to total assets 0.18 % 0.11 % 0.16 % Ratio of allowance for loan losses to total gross loans (j) 1.33 1.34 1.45 Ratio of allowance for loan losses to nonaccruing loans (k) 477 826 556 Ratio of quarterly net (recoveries) charge-offs to average gross loans (a)(f) 0.05 0.03 0.05 ----------------------------------------------------------------------------------------------------------
See "Notes" 10 WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) AVERAGE BALANCE SHEET (Dollars in thousands) (Unaudited)
Three months ended ------------------------------------------------------------------------------------------------------------ September 30, 2006 June 30, 2006 September 30, 2005 ----------------------------- --------------------------------- ----------------------------------- Average Interest & Yield/ Average Interest & Yield/ Average Interest & Yield/ Balance Dividends Rate (a)(b) Balance Dividends Rate (a)(b) Balance Dividends Rate (a)(b) ---------- --------- --------- ---------- --------- ---------- ---------- ---------- ---------- Assets: Interest-earning assets: Loans: (f) (l) Commercial real estate loans $ 639,307 $ 13,537 8.47 % $ 638,645 $12,860 8.05 % $ 589,703 $10,450 7.09 % Residential real estate loans 491,223 6,798 5.54 484,000 6,621 5.47 430,871 5,587 5.19 Commercial loans 601,763 12,294 8.18 573,853 11,146 7.88 451,532 7,554 6.79 Consumer loans 262,600 4,938 7.46 257,930 4,687 7.29 221,706 3,787 6.78 ----------- --------- ----------- -------- ---------- ------- Total loans 1,994,893 37,567 7.59 1,954,428 35,314 7.28 1,693,812 27,378 6.53 Mortgage-backed securities (d) 593,589 7,186 4.84 617,553 7,471 4.84 576,779 6,445 4.47 Loans held-for-sale (f) 1,185 10 3.38 1,284 18 5.61 2,462 41 6.66 Investment securities (d)(e) 52,935 616 4.65 54,366 388 2.85 100,523 921 3.66 Other interest-earning assets 55,668 752 5.36 52,402 677 5.18 48,155 351 2.89 ----------- --------- ----------- -------- ---------- ------- Total interest- earning assets 2,698,270 46,131 6.88 2,680,033 43,868 6.59 2,421,731 35,136 5.85 --------- -------- ------- Allowance for loan losses (26,938) (26,397) (25,215) Cash and due from banks 57,372 55,424 53,121 Cash in non- owned ATMs 158,396 157,655 138,543 Bank owned life insurance 55,414 54,860 53,389 Other noninterest- earning assets 63,607 62,156 54,602 ---------- ---------- ---------- Total assets $3,006,121 $2,983,731 $2,696,171 ========== ========== ========== Liabilities and Stockholders' Equity: Interest-bearing liabilities: Interest bearing deposits: Interest- bearing demand $ 121,160 $ 229 0.75 $ 122,917 $ 162 0.53 $ 116,518 $ 71 0.24 Money market 227,285 2,080 3.63 228,493 1,978 3.47 183,279 1,025 2.22 Savings 241,823 667 1.09 239,474 444 0.74 268,880 265 0.39 Customer time deposits 415,792 4,183 3.99 364,669 3,497 3.85 287,925 2,085 2.87 ---------- ------- ---------- ------- --------- ------- Total interest- bearing customer deposits 1,006,060 7,159 2.82 955,553 6,081 2.55 856,602 3,446 1.60 Other jumbo certificates of deposits 77,255 1,039 5.34 84,353 1,033 4.91 46,430 383 3.27 Brokered certificates of deposit 238,983 3,194 5.30 245,213 2,999 4.91 206,331 1,845 3.55 ---------- ------- ---------- ------- --------- ------- Total interest- bearing deposits 1,322,298 11,392 3.42 1,285,119 10,113 3.16 1,109,363 5,674 2.03 FHLB of Pittsburgh advances 1,002,001 12,384 4.84 1,037,132 12,004 4.58 894,331 7,955 3.48 Trust preferred borrowings 67,011 1,736 10.14 67,011 1,106 6.53 67,011 954 5.57 Other borrowed funds 123,377 1,499 4.86 113,190 1,259 4.45 166,268 1,338 3.22 ---------- ------- ---------- ------- --------- ------- Total interest- bearing liabilities 2,514,687 27,011 4.30 2,502,452 24,482 3.91 2,236,973 15,921 2.85 ------- ------- ------- Noninterest-bearing demand deposits 265,594 269,060 254,807 Other noninterest- bearing liabilities 25,970 22,566 20,691 Minority interest 68 65 201 Stockholders' equity 199,802 189,588 183,499 ---------- ---------- ---------- Total liabilities and stockholders equity $3,006,121 $2,983,731 $2,696,171 ========== ========== ========== Excess of interest- earning assets over interest- bearing liabilities $ 183,583 $ 177,581 $ 184,758 ========== ========== ========== Net interest and dividend income $ 19,120 $19,386 $ 19,215 ======== ======= ======== Interest rate spread 2.58% 2.68% 3.00% ==== ==== ==== Net interest margin 2.88% 2.94% 3.22% ==== ==== ====
See "Notes" WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) (Dollars in thousands, except per share data) (Unaudited)
Three months ended Nine months ended --------------------------------------- --------------------------- September 30, June 30, September 30, September 30, September 30, 2006 2006 2005 2006 2005 ------------- -------- ------------- ------------- ------------- Stock Information: Market price of common stock: High $ 64.37 $ 64.65 $ 59.26 $ 64.65 $ 59.91 Low 58.08 58.24 54.01 58.08 49.80 Close 62.19 61.45 58.89 62.19 58.89 Book value per share 31.22 28.77 26.80 Tangible book value per share 30.87 28.43 26.53 Number of shares outstanding (000s) 6,675 6,650 6,470 ----------------------------------------------------------------------------------------------------------------------- Other Financial Data: One-year repricing gap to total assets (m) (1.18)% (1.65)% (0.86)% Weighted average duration of the MBS portfolio 3.0 years 3.3 years 3.0 years Unrealized losses on securities available-for-sale, net of taxes $(7,749) $(16,502) $(7,602) Number of associates (FTEs) 592 554 512 Number of branch offices 26 25 24 Number of WSFS owned ATMs 316 318 270 -----------------------------------------------------------------------------------------------------------------------
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.