EX-99 2 ex-99_0312.htm EXHIBIT 99

 

PRESS RELEASE

 

 

FOR IMMEDIATE RELEASE

Contact: Stephen A. Fowle

 

 

July 26, 2007

(302) 571-6833

 

 

 

 

WSFS REPORTS 2Q '07 EPS OF $1.11

 

WSFS Financial Corporation (NASDAQ/GS: WSFS), the parent company of Wilmington Savings Fund Society, FSB, reported quarterly net income of $7.2 million, or $1.11 per diluted share, compared to $1.09 in the second quarter of 2006. Net income for the first six months of 2007 was $15.0 million, or $2.26 per diluted share, compared to $2.15 in the first half of 2006.

 

Revenue increases outpaced expense growth (excluding the provision for loan losses) and fundamentally remained strong. The comparison to the second quarter of 2006 was negatively impacted by $578,000 ($0.06 per share) in increased provisions for loan losses due to strong loan growth and a modest increase in charge-offs. The second quarter of 2007 was also impacted by a one-time increase in the effective tax rate due to changes in Maryland tax law and by the effects of new tax accounting guidance resulting in $142,000 ($0.02 per share) in increased tax expense.

 

Highlights for the quarter include:

 

•

Customer deposits increased 16% or $197.4 million from the second quarter 2006

 

•

Commercial and commercial real estate loans increased 12% or $144.4 million from the second quarter of 2006

 

•

Noninterest income grew 18%, or $1.7 million over the second quarter of 2006

 

•

Credit quality ratios continue at historically strong levels as nonperforming assets decreased to 0.14% of total assets

 

•

The Company repurchased 46,000 shares of stock, slightly less than 1% of shares outstanding

 

 

(More)

 

 

 

Mark A. Turner, WSFS President and CEO commented, “We are pleased with our continued strong growth in customer deposits, commercial loans and fee income. Our keen focus on improving loan yields and mix is paying dividends in spite of the difficult rate environment. Importantly, credit quality metrics remain strong and are at historically low levels.”

 

Mr. Turner continued, “This year continues to be an exciting and an eventful year for the Bank. We opened two new banking offices in Greenville and Lewes, DE, as part of the planned expansion of our franchise into key markets. Our new Greenville office exemplifies the Bank’s “Customer First” philosophy and has our relationship managers from Wealth Management, Private Banking and Retail Banking working together as a team to best serve our customers. The Lewes office deepens our presence in Sussex County and will also deliver Stellar Service through our “Customer First” approach. In June, we commemorated our 175th anniversary and grand opening of our new corporate offices in downtown Wilmington with a formal ribbon cutting ceremony.”

 

Second Quarter 2007 Financial Highlights

 

Net interest margin reflects mixed results

 

Net interest income for the second quarter of 2007 was $20.1 million, an increase of $754,000 from the second quarter of 2006 and an improvement of 16 basis points (0.16%) from the 2.94% margin reported in that quarter. This quarter’s net interest income compares to $21.1 million reported for the first quarter of 2007. The net interest margin of 3.10% for the second quarter of 2007 decreased 15 basis points from the first quarter of 2007.

 

The improvement over the second quarter of 2006 reflects the Company’s efforts to refocus the mix of its balance sheet. Compared to the first quarter of 2007, trends in loan yields, deposit costs and asset mix have shown improvement. However, the second quarter 2007 margin was negatively impacted by increases in wholesale funding costs, the growth of CashConnect (WSFS ATM division’s bailment revenues are included as fee income, rather than interest income) and a decrease in the Federal Home Loan Bank (FHLB) effective dividend rate.

 

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Additionally, the net interest margin decrease from the first quarter of 2007 was due in part to $1.0 million (or 15 basis points) of additional income from reverse mortgages recorded in the first quarter of 2007. This positive impact during the first quarter of 2007 was partially offset by $335,000 (or 5 basis points) of expense related to the pre-payment of a $50.0 million FHLB borrowing in that quarter. Adjusting for these two items, the net interest margin decreased 5 basis points from the first quarter of 2007.

 

Customer deposits increase 16% or $197.4 million from the second quarter of 2006

 

Total customer deposits (core deposits and customer time deposits) grew to $1.5 billion at June 30, 2007, an increase of $197.4 million, or 16%, over balances at June 30, 2006. This growth reflects an increase of $23.5 million, or 2% (7% annualized) over balances at March 31, 2007. WSFS’s deposit growth was well diversified with almost all customer deposit categories increasing compared to the first quarter of 2007. The comparison to the first quarter of 2007 was affected by the expected movement of $30.8 million of temporary money market deposits into investments – primarily with the Company’s Wealth Management Division. Adjusted for this expected temporary item, deposit growth would have increased $54.3 million, or 4% (15% annualized) above March 31, 2007 levels.

 

The following table summarizes the current customer deposit balances and composition compared to historical periods.

 

 

 

 

 

 

At

 

 

At

 

 

At

(Dollars in thousands)

 

 

 

Jun. 30, 2007

 

 

Mar. 31, 2007

 

 

Jun. 30, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

 

%

 

 

Amount

 

 

 

%

 

 

Amount

 

%

Non-interest demand

 

 

 

$

295,729

 

 

 

20

%

 

 

$

283,295

 

 

 

20

%

 

 

$

289,054

 

23

%

Interest bearing demand

 

 

 

 

162,487

 

 

 

11

 

 

 

 

148,946

 

 

 

10

 

 

 

 

126,430

 

10

 

Savings

 

 

 

 

216,104

 

 

 

15

 

 

 

 

219,904

 

 

 

15

 

 

 

 

244,843

 

19

 

Money market

 

 

 

 

308,639

 

 

 

21

 

 

 

 

324,191

 

 

 

23

 

 

 

 

218,719

 

17

 

Total core deposits

 

 

 

 

982,959

 

 

 

67

 

 

 

 

976,336

 

 

 

68

 

 

 

 

879,046

 

69

 

Customer time

 

 

 

 

481,742

 

 

 

33

 

 

 

 

464,864

 

 

 

32

 

 

 

 

388,209

 

31

 

Total customer deposits

 

 

 

$

1,464,701

 

 

 

100

%

 

 

$

1,441,200

 

 

 

100

%

 

 

$

1,267,255

 

100

%

 

 

 

(More)

 

 

 

Commercial and commercial real estate loans increased 12% or $144.4 million from the second quarter of 2006

 

Continuing the positive trends experienced in recent years, commercial and commercial real estate (CRE) loans increased $144.4 million, or 12% over June 30, 2006 and $58.2 million, or 4% (18% annualized) over March 31, 2007. Consumer loans also showed significant growth during the quarter increasing by 3% or $8.0 million (12% annualized). Net loans were $2.1 billion at June 30, 2007, an increase of $113.3 million, or 6% over June 30, 2006 and an increase of $53.1 million, or 3% (10% annualized) over March 31, 2007. Overall net loan growth was tempered by the planned decrease in residential mortgage loan balances in favor of mortgage loan sales as part of the Company’s efforts to realign the balance sheet toward higher yielding assets.

 

The following table summarizes the current loan balances and composition compared to historical periods.

 

 

 

 

At

 

 

 

At

 

 

 

At

 

(Dollars in thousands)

 

 

Jun. 30, 2007

 

 

 

Mar. 31, 2007

 

 

 

Jun. 30, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

%

 

 

 

Amount

 

 

%

 

 

Amount

 

 

%

Commercial and CRE

 

$

1,385,662

 

 

66

%

 

$

1,327,436

 

 

65

%

 

$

1,241,228

 

 

63

%

Residential

 

 

457,881

 

 

22

 

 

 

470,260

 

 

23

 

 

 

497,467

 

 

25

 

Consumer

 

 

270,297

 

 

13

 

 

 

262,270

 

 

13

 

 

 

260,143

 

 

13

 

Allowance for loan losses

 

 

(28,359

)

 

(1

)

 

 

(27,629

)

 

(1

)

 

 

(26,701

)

 

(1

)

Net loans

 

$

2,085,481

 

 

100

%

 

$

2,032,337

 

 

100

%

 

$

1,972,137

 

 

100

%

 

Credit quality statistics continue at historically strong levels

 

The Company recorded a provision for loan losses of $1.3 million in the second quarter of 2007 compared to $695,000 in the second quarter of 2006 and $371,000 in the first quarter of 2007. The provision well exceeded net charge-offs for the quarter. The provision reflects strong loan growth, a modest increase in charge-offs during the quarter as well as a migration of a small amount of loans to lower quality credit grades. The volatility in the provision is consistent with a more formulaic approach to provisioning endorsed by the SEC and banking regulators. The ratio of allowance for loan losses to total loans is 1.34%, equal to March 31, 2007.

 

(More)

 

 

 

Credit quality statistics continue at historically strong levels. The balances of nonperforming assets improved in comparison to the first quarter of 2007. Nonperforming assets as a percentage of assets were 0.14% at June 30, 2007 compared to 0.16% at March 31, 2007 and 0.11% at June 30, 2006. Annualized net charge-offs in the second quarter of 2007 remained low at only 0.10% of average loans. This compares to annualized net charge-offs of 0.02% for the first quarter of 2007 and annualized net charge-offs of 0.03% for the second quarter of 2006. Annualized net charge-offs for the first six months of 2007 were 0.06% compared to 0.01% for the first half of 2006.

 

Noninterest income grows $1.7 million, or 18% over the second quarter of 2006

 

During the second quarter of 2007, the Company recorded noninterest income of $11.6 million, which increased by $883,000, or 8% when compared to the first quarter of 2007. Noninterest income was a strong $1.7 million or 18% higher than the second quarter of 2006. Fee revenues represented 36% of total revenues compared to 33% during both the first quarter of 2007 and the second quarter of 2006.

 

The increase over the second quarter of 2006 was mainly attributable to a $1.0 million increase in deposit service charges and a $216,000 increase in credit/debit card and ATM income. Deposit service charges continue to benefit from an increase in deposit accounts and additional fee-based services offered by WSFS. The increase in credit/debit card and ATM income was due to increased volumes of cash in non-owned ATMs and higher rates earned on that cash.

 

Consistent with the year over year trend, the increase in noninterest income over the first quarter of 2007 was mainly attributable to $591,000 in increased credit/debit card and ATM income due to higher seasonal volumes of cash in non-owned ATMs and $252,000 in increased deposit service charges.

 

(More)

 

 

 

During the second quarter of 2007, WSFS sold its passive ownership interest in a limited partnership created to develop its headquarters building for an economic benefit of $1.3 million. This gain will be recognized over the effective life of the lease of its new corporate headquarters.

 

Noninterest expense increase reflects growth and investment in franchise

 

Noninterest expenses for the second quarter of 2007 totaled $19.0 million, which was $2.1 million, or 12% greater than the second quarter of 2006 and $331,000 less than the first quarter of 2007. This increase over the second quarter of 2006 was mainly related to the Company’s continued growth efforts. This expansion since June 2006, included the opening of five branch offices, two branch renovations/relocations, the continued growth of the Wealth Management Division and the formation of a reverse mortgage business unit. This franchise growth is reflected in higher compensation, occupancy, equipment and marketing expenses. The number of full-time equivalent Associates increased from 554 in the second quarter of 2006 to 609 in the second quarter of 2007.

 

Noninterest expenses in the second quarter were comparable to the levels recorded in the first quarter of 2007 despite the first full quarter of expenses related to the Company’s move into its new corporate headquarters in the WSFS Bank Center. During the second quarter the Company experienced reduced expenses related to its 401K plan and reduction to a reserve for its standby letters of credit. While these reductions resulted in lower noninterest expenses when compared to the first quarter of 2007, the Company expects overall expenses will continue to increase due to the Company’s continued growth efforts and additional investments in the franchise.

 

The Company recorded $4.2 million of income tax provision for the quarter (reflecting a 36.9% effective tax rate) versus $4.1 million in the second quarter of 2006 (35.5% effective tax rate) and $4.3 million in the first quarter of 2007 (35.5% effective tax rate). The increase is due to a one-time charge to reflect changes in Maryland tax law combined with the effects of new tax accounting guidance adding volatility to quarterly results.

 

(More)

 

 

 

The Company repurchased 46,000 shares of stock, or slightly less than 1% of shares outstanding

 

During the second quarter of 2007, the Company continued its history of returning earnings to shareholders by repurchasing 46,000 shares of common stock at an average price of $64.40 per share. Since the beginning of 2007 the Company has repurchased 427,500 shares, or 7% of its common stock at an average price of $66.96 per share.

 

The ratio of tangible equity to assets was 6.57% at June 30, 2007. The Tier 1 capital ratio was 11.68%, nearly double the 6.00% level required to be considered “well-capitalized” under regulatory definitions. Tangible book value per share increased to $31.47 at June 30, 2007, from $31.28 at March 31, 2007 and $28.43 at June 30, 2006, despite the repurchase of 8% of the Company’s common stock over the last twelve months.

 

WSFS’ Board of Directors declares a quarterly cash dividend of $0.10 per share

 

The Board of Directors has declared a quarterly cash dividend of $0.10 per share. This dividend will to be paid on August 31, 2007, to shareholders of record as of August 10, 2007.

 

WSFS Financial Corporation is a $3 billion financial services company. Its principal subsidiary, Wilmington Savings Fund Society, FSB, currently operates 30 retail banking offices in all three counties in Delaware, as well as Chester and Delaware Counties in Pennsylvania, providing full banking services under the WSFS Bank brand, and wealth management and personal trust services under Wilmington Advisors, a division of WSFS Bank. Other subsidiaries include: WSFS Investment Group, Inc., Montchanin Capital Management, Inc. and WSFS Reit, Inc. WSFS, celebrating its 175th anniversary, is one of the ten oldest banks continuously operating under the same name in the United States. For more information, please visit the Bank’s website at http://www.wsfsbank.com.

 

* * *

 

(More)

 

 

 

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)

 

 

WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS
STATEMENT OF OPERATIONS

(Dollars in thousands, except per share data)
(Unaudited)

Three months ended
 Six months ended
June 30, March 31, June 30, June 30, June 30,
2007
 2007
 2006
 2007
 2006
Interest income:                        
Interest and fees on loans   $ 39,385   $ 38,469   $ 35,332   $ 77,854   $ 67,428  
Interest on mortgage-backed securities    6,001    6,237    7,471    12,238    14,803  
Interest and dividends on investment securities    723    1,714    388    2,437    1,023  
Other interest income    558    668    677    1,226    1,091  
     46,667    47,088    43,868    93,755    84,345  
Interest expense:  
Interest on deposits    14,299    14,388    10,113    28,687    18,290  
Interest on Federal Home Loan Bank advances    9,538    8,922    12,004    18,460    22,747  
Interest on trust preferred borrowings    1,161    1,177    1,106    2,338    2,123  
Interest on other borrowings    1,529    1,541    1,259    3,070    2,496  
     26,527    26,028    24,482    52,555    45,656  
Net interest income    20,140    21,060    19,386    41,200    38,689  
Provision for loan losses    1,273    371    695    1,644    1,383  
Net interest income after provision for loan losses    18,867    20,689    18,691    39,556    37,306  
Noninterest income:  
Credit/debit card and ATM income    5,074    4,483    4,858    9,557    9,018  
Deposit service charges    3,854    3,602    2,826    7,456    5,403  
Investment advisory income    598    594    618    1,192    1,248  
Loan fee income    581    561    413    1,142    834  
Bank owned life insurance income    542    557    522    1,099    1,010  
Mortgage banking activities, net    78    72    61    150    83  
Securities losses    -    -    (41 )  -    (41 )
Other income    889    864    623    1,753    1,363  
     11,616    10,733    9,880    22,349    18,918  
Noninterest expenses:  
Salaries, benefits and other compensation    10,251    10,850    9,421    21,101    18,613  
Occupancy expense    2,083    1,832    1,347    3,915    2,647  
Equipment expense    1,345    1,246    1,075    2,591    2,057  
Data processing and operations expense    946    943    889    1,889    1,746  
Marketing expense    867    742    728    1,609    1,341  
Professional fees    654    653    505    1,307    762  
Other operating expenses    2,881    3,092    2,967    5,973    6,008  
     19,027    19,358    16,932    38,385    33,174  
Income before adjustment for minority interest and taxes    11,456    12,064    11,639    23,520    23,050  
Less minority interest    -    -    15    -    31  
Income before taxes    11,456    12,064    11,624    23,520    23,019  
Income tax provision    4,227    4,283    4,126    8,510    8,180  
Net income   $ 7,229   $ 7,781   $ 7,498   $ 15,010   $ 14,839  
Diluted earnings per share:  
Net income   $ 1.11   $ 1.15   $ 1.09   $ 2.26   $ 2.15  
Weighted average shares outstanding for diluted EPS    6,500,209    6,758,669    6,905,922    6,632,566    6,905,230  
Performance Ratios:  
Return on average assets (a)    0.98 %  1.06 %  1.01 %  1.02 %  1.02 %
Return on average equity (a)    14.21    14.75    15.82    14.49    15.78  
Net interest margin (a)(b)    3.10    3.25    2.94    3.17    2.98  
Efficiency ratio (c)    59.40    60.37    57.31    59.88    57.04  
Noninterest income as a percentage of total revenue (b)    36.26    33.47    33.44    34.86    32.53  

See “Notes”

WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENT OF CONDITION:

(Dollars in thousands)
(Unaudited)

June 30, March 31, June 30,
2007
 2007
 2006
Assets:                
Cash and due from banks   $ 83,291   $ 75,461   $ 71,237  
Cash in non-owned ATMs    176,987    150,270    171,174  
Investment securities (d)(e)    28,494    28,153    48,428  
Other investments    41,568    35,347    50,461  
Mortgage-backed securities (d)    472,467    500,069    599,933  
Net loans (f)(g)(n)    2,085,481    2,032,337    1,972,137  
Bank owned life insurance    56,381    55,839    55,203  
Other assets    73,450    70,062    68,057  
    Total assets   $ 3,018,119   $ 2,947,538   $ 3,036,630  
Liabilities and Stockholders' Equity:  
Noninterest-bearing deposits   $ 295,729   $ 283,295   $ 289,054  
Interest-bearing deposits    1,168,972    1,157,905    978,201  
    Total customer deposits    1,464,701    1,441,200    1,267,255  
Other jumbo CDs    100,595    99,593    73,946  
Brokered deposits    283,265    292,470    241,623  
    Total deposits    1,848,561    1,833,263    1,582,824  
                  
Federal Home Loan Bank advances    734,377    693,918    1,051,458  
Other borrowings    205,085    193,239    183,764  
Other liabilities    28,886    27,931    27,151  
    Total liabilities    2,816,909    2,748,351    2,845,197  
Minority interest    34    45    69  
                  
Stockholders' equity    201,176    199,142    191,364  
Total liabilities, minority interest and stockholders' equity   $ 3,018,119   $ 2,947,538   $ 3,036,630  
Capital Ratios:  
                
Equity to asset ratio    6.67 %  6.76 %  6.30 %
Tangible equity to asset ratio    6.57    6.67    6.23  
Core capital (h) (required: 4.00%; well-capitalized: 5.00%)    8.99    9.00    8.53  
Tier 1 capital (h) (required: 4.00%; well-capitalized: 6.00%)    11.68    11.70    11.94  
Risk-based capital (h) (required: 8.00%; well-capitalized: 10.00%)    12.88    12.91    13.02  
Asset Quality Indicators:  
                
Nonperforming Assets:  
Nonaccruing loans   $ 3,873   $ 4,230   $ 3,189  
Assets acquired through foreclosure    388    388    61  
     Total nonperforming assets   $ 4,261   $ 4,618   $ 3,250  
Past due loans (i)   $ 426   $ 89   $ 527  
                  
Allowance for loan losses   $ 28,359   $ 27,629   $ 26,701  
                  
Ratio of nonperforming assets to total assets    0.14 %  0.16 %  0.11 %
Ratio of allowance for loan losses to total gross  
     loans (j)    1.34    1.34    1.34  
Ratio of allowance for loan losses to nonaccruing  
     loans (k)    719    648    800  
Ratio of quarterly net charge-offs  
     to average gross loans (a)(f)    0.10    0.02    0.03  

See “Notes”

WSFS FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (Continued)

AVERAGE BALANCE SHEET

 

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

Three months ended

 

 

 

 

June 30, 2007

 

 

March 31, 2007

 

 

June 30, 2006

 

 

 

 

Average
Balance

 

Interest &
Dividends

 

Yield/
Rate (a)(b)

 

 

Average
Balance

 

Interest &
Dividends

 

Yield/
Rate (a)(b)

 

 

Average
Balance

 

Interest &
Dividends

 

Yield/
Rate (a)(b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans: (f) (l)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

 

 

$

663,812

 

 

$

13,807

 

 

8.32

%

 

 

$

655,669

 

 

 

$

13,692

 

 

8.35

%

 

 

$

638,645

 

 

$

12,860

 

 

8.05

%

Residential real estate loans (n)

 

 

 

 

460,592

 

 

 

6,530

 

 

5.67

 

 

 

 

472,703

 

 

 

 

6,736

 

 

5.70

 

 

 

 

485,284

 

 

 

6,639

 

 

5.47

 

Commercial loans

 

 

 

 

687,493

 

 

 

14,001

 

 

8.22

 

 

 

 

651,510

 

 

 

 

13,063

 

 

8.19

 

 

 

 

573,853

 

 

 

11,146

 

 

7.88

 

Consumer loans

 

 

 

 

268,472

 

 

 

5,047

 

 

7.54

 

 

 

 

266,368

 

 

 

 

4,978

 

 

7.58

 

 

 

 

257,930

 

 

 

4,687

 

 

7.29

 

Total loans (n)

 

 

 

 

2,080,369

 

 

 

39,385

 

 

7.63

 

 

 

 

2,046,250

 

 

 

 

38,469

 

 

7.58

 

 

 

 

1,955,712

 

 

 

35,332

 

 

7.28

 

Mortgage-backed securities (d)

 

 

 

 

489,318

 

 

 

6,001

 

 

4.91

 

 

 

 

509,224

 

 

 

 

6,237

 

 

4.90

 

 

 

 

617,553

 

 

 

7,471

 

 

4.84

 

Investment securities (d)(e)

 

 

 

 

28,242

 

 

 

723

 

 

10.24

 

 

 

 

32,757

 

 

 

 

1,714

 

 

20.93

 

 

 

 

54,366

 

 

 

388

 

 

2.85

 

Other interest-earning assets

 

 

 

 

39,117

 

 

 

558

 

 

5.72

 

 

 

 

37,851

 

 

 

 

668

 

 

7.16

 

 

 

 

52,402

 

 

 

677

 

 

5.18

 

Total interest-earning assets

 

 

 

 

2,637,046

 

 

 

46,667

 

 

7.12

 

 

 

 

2,626,082

 

 

 

 

47,088

 

 

7.21

 

 

 

 

2,680,033

 

 

 

43,868

 

 

6.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

 

 

(27,789

)

 

 

 

 

 

 

 

 

 

 

(27,708

) 

 

 

 

 

 

 

 

 

 

 

 

(26,397

)

 

 

 

 

 

 

 

Cash and due from banks

 

 

 

 

70,648

 

 

 

 

 

 

 

 

 

 

 

67,087

 

 

 

 

 

 

 

 

 

 

 

 

55,424

 

 

 

 

 

 

 

 

Cash in non-owned ATMs

 

 

 

 

157,690

 

 

 

 

 

 

 

 

 

 

 

142,103

 

 

 

 

 

 

 

 

 

 

 

 

157,655

 

 

 

 

 

 

 

 

Bank owned life insurance

 

 

 

 

56,035

 

 

 

 

 

 

 

 

 

 

 

55,473

 

 

 

 

 

 

 

 

 

 

 

 

54,860

 

 

 

 

 

 

 

 

Other noninterest-earning assets

 

 

 

 

67,315

 

 

 

 

 

 

 

 

 

 

 

65,758

 

 

 

 

 

 

 

 

 

 

 

 

62,156

 

 

 

 

 

 

 

 

Total assets

 

 

 

$

2,960,945

 

 

 

 

 

 

 

 

 

 

$

2,928,795

 

 

 

 

 

 

 

 

 

 

 

$

2,983,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

 

 

$

147,552

 

 

$

322

 

 

0.88

 

 

 

$

135,464

 

 

 

$

270

 

 

0.81

 

 

 

$

122,917

 

 

$

162

 

 

0.53

 

Money market

 

 

 

 

309,655

 

 

 

3,002

 

 

3.89

 

 

 

 

315,525

 

 

 

 

3,088

 

 

3.97

 

 

 

 

228,493

 

 

 

1,978

 

 

3.47

 

Savings

 

 

 

 

217,117

 

 

 

439

 

 

0.81

 

 

 

 

219,912

 

 

 

 

446

 

 

0.82

 

 

 

 

239,474

 

 

 

444

 

 

0.74

 

Customer time deposits

 

 

 

 

458,298

 

 

 

5,353

 

 

4.68

 

 

 

 

456,523

 

 

 

 

5,216

 

 

4.63

 

 

 

 

364,669

 

 

 

3,497

 

 

3.85

 

Total interest-bearing customer deposits

 

 

 

 

1,132,622

 

 

 

9,116

 

 

3.23

 

 

 

 

1,127,424

 

 

 

 

9,020

 

 

3.24

 

 

 

 

955,553

 

 

 

6,081

 

 

2.55

 

Other jumbo certificates of deposit

 

 

 

 

99,079

 

 

 

1,311

 

 

5.31

 

 

 

 

102,856

 

 

 

 

1,355

 

 

5.34

 

 

 

 

84,353

 

 

 

1,033

 

 

4.91

 

Brokered deposits

 

 

 

 

287,025

 

 

 

3,872

 

 

5.41

 

 

 

 

298,247

 

 

 

 

4,013

 

 

5.46

 

 

 

 

245,213

 

 

 

2,999

 

 

4.91

 

Total interest-bearing deposits

 

 

 

 

1,518,726

 

 

 

14,299

 

 

3.78

 

 

 

 

1,528,527

 

 

 

 

14,388

 

 

3.82

 

 

 

 

1,285,119

 

 

 

10,113

 

 

3.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLB of Pittsburgh advances

 

 

 

 

741,095

 

 

 

9,538

 

 

5.09

 

 

 

 

697,253

 

 

 

 

8,922

 

 

5.12

 

 

 

 

1,037,132

 

 

 

12,004

 

 

4.58

 

Trust preferred borrowings

 

 

 

 

67,011

 

 

 

1,161

 

 

6.85

 

 

 

 

67,011

 

 

 

 

1,177

 

 

7.03

 

 

 

 

67,011

 

 

 

1,106

 

 

6.53

 

Other borrowed funds

 

 

 

 

127,905

 

 

 

1,529

 

 

4.78

 

 

 

 

131,232

 

 

 

 

1,541

 

 

4.70

 

 

 

 

113,190

 

 

 

1,259

 

 

4.45

 

Total interest-bearing liabilities

 

 

 

 

2,454,737

 

 

 

26,527

 

 

4.32

 

 

 

 

2,424,023

 

 

 

 

26,028

 

 

4.30

 

 

 

 

2,502,452

 

 

 

24,482

 

 

3.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

 

 

 

278,360

 

 

 

 

 

 

 

 

 

 

 

267,354

 

 

 

 

 

 

 

 

 

 

 

 

269,060

 

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

 

 

24,376

 

 

 

 

 

 

 

 

 

 

 

26,399

 

 

 

 

 

 

 

 

 

 

 

 

22,566

 

 

 

 

 

 

 

 

Minority interest

 

 

 

 

38

 

 

 

 

 

 

 

 

 

 

 

49

 

 

 

 

 

 

 

 

 

 

 

 

65

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

203,434

 

 

 

 

 

 

 

 

 

 

 

210,970

 

 

 

 

 

 

 

 

 

 

 

 

189,588

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

 

 

$

2,960,945

 

 

 

 

 

 

 

 

 

 

$

2,928,795

 

 

 

 

 

 

 

 

 

 

 

$

2,983,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess of interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

over interest-bearing liabilities

 

 

 

$

182,309

 

 

 

 

 

 

 

 

 

 

$

202,059

 

 

 

 

 

 

 

 

 

 

 

$

177,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

 

 

 

 

 

$

20,140

 

 

 

 

 

 

 

 

 

 

 

$

21,060

 

 

 

 

 

 

 

 

 

 

$

19,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

 

 

 

 

 

 

 

 

2.80

%

 

 

 

 

 

 

 

 

 

 

 

2.91

%

 

 

 

 

 

 

 

 

 

 

2.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

 

 

 

 

 

 

 

 

3.10

%

 

 

 

 

 

 

 

 

 

 

 

3.25

%

 

 

 

 

 

 

 

 

 

 

2.94

%

 

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,

 

 

 

 

 

2007

 

 

 

2007

 

 

 

2006

 

 

 

2007

 

 

 

2006

 

 

 

 

 

 

 

Stock Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market price of common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High

 

 

 

$

68.08

 

 

 

$

70.69

 

 

 

$

64.65

 

 

 

$

70.69

 

 

 

$

64.65

 

Low

 

 

 

 

63.12

 

 

 

 

61.31

 

 

 

 

58.24

 

 

 

 

61.31

 

 

 

 

58.24

 

Close

 

 

 

 

65.43

 

 

 

 

64.48

 

 

 

 

61.45

 

 

 

 

65.43

 

 

 

 

61.45

 

Book value per share

 

 

 

 

31.95

 

 

 

 

31.70

 

 

 

 

28.77

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share

 

 

 

 

31.47

 

 

 

 

31.28

 

 

 

 

28.43

 

 

 

 

 

 

 

 

 

 

 

Number of shares outstanding (000s)

 

 

 

 

6,296

 

 

 

 

6,283

 

 

 

 

6,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Financial Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One-year repricing gap to total assets (m)

 

 

 

 

(0.67

)%

 

 

 

(1.74

)%

 

 

 

(1.65

)%

 

 

 

 

 

 

 

 

 

 

Weighted average duration of the MBS portfolio

 

 

 

 

3.4 years

 

 

 

 

2.9 years

 

 

 

 

3.3 years

 

 

 

 

 

 

 

 

 

 

 

Unrealized losses on securities available-for-sale, net of taxes

 

 

 

$

(9,853

)

 

 

$

(6,009

)

 

 

$

(16,502

)

 

 

 

 

 

 

 

 

 

 

Number of associates (FTEs)

 

 

 

 

609

 

 

 

 

564

 

 

 

 

554

 

 

 

 

 

 

 

 

 

 

 

Number of branch offices

 

 

 

 

30

 

 

 

 

28

 

 

 

 

25

 

 

 

 

 

 

 

 

 

 

 

Number of WSFS owned ATMs

 

 

 

 

317

 

 

 

 

309

 

 

 

 

318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.