Stockholders' Equity and Regulatory Capital

12 Months Ended

Dec. 31, 2015

Other Liabilities Disclosure [Abstract]

Stockholders' Equity and Regulatory Capital

13. STOCKHOLDERS’ EQUITY AND REGULATORY CAPITAL

Savings institutions such as the Bank are subject to regulatory capital requirements administered by various banking regulators. Failure to meet minimum capital requirements could result in certain actions by regulators that could have a material effect on the Company’s financial statements. In July 2013, the Federal Reserve Board approved final rules (the “U.S. Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The U.S. Basel III Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and depository institutions.

The new minimum regulatory capital requirements became effective for the Bank and the Company on January 1, 2015 and include a new minimum common equity Tier 1 capital ratio of 4.50% of risk-weighted assets and raise the Tier 1 capital ratio from 4.00% to 6.00% of risk-weighted assets. The rules also require a current minimum Total capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 leverage capital ratio of 4.00% of average assets.

As of December 31, 2015 and 2014, the Bank was in compliance with regulatory capital requirements and exceeded the amounts required to be considered “well capitalized” as defined in the regulations.

The following table presents the capital position of the Bank and the Company as of December 31, 2015 and 2014:

	Consolidated Bank Capital					For Capital Adequacy Purposes					To Be Well-Capitalized Under Prompt Corrective Action Provisions
(In Thousands)	Amount		Percent			Amount		Percent			Amount		Percent
As of December 31, 2015
Total Capital (to risk-weighted assets)
Wilmington Savings Fund Society, FSB	$	618,454		13.11	%	$	377,332		8.00	%	$	471,666		10.00	%
WSFS Financial Corporation		595,996		12.62			377,948		8.00			N/A		N/A
Tier 1 Capital (to risk-weighted assets)
Wilmington Savings Fund Society, FSB		580,735		12.31			282,999		6.00			377,332		8.00
WSFS Financial Corporation		558,278		11.82			283,461		6.00			N/A		N/A
Common Equity Tier 1 Capital (to risk-weighted assets)
Wilmington Savings Fund Society, FSB		580,735		12.31			212,249		4.50			306,583		6.50
WSFS Financial Corporation		494,571		10.47			212,596		4.50			N/A		N/A
Tier 1 Leverage Capital
Wilmington Savings Fund Society, FSB		580,735		10.88			213,502		4.00			266,877		5.00
WSFS Financial Corporation		558,278		10.44			213,849		4.00			N/A		N/A
As of December 31, 2014
Total Capital (to risk-weighted assets)
Wilmington Savings Fund Society, FSB	$	531,209		13.83	%	$	307,217		8.00	%	$	384,022		10.00	%
WSFS Financial Corporation		533,300		13.86			307,739		8.00			N/A		N/A
Core Capital (to adjusted tangible assets)
Wilmington Savings Fund Society, FSB		491,229		10.25			191,753		4.00			239,692		5.00
WSFS Financial Corporation		493,534		10.56			186,954		4.00			N/A		N/A
Tangible Capital (to tangible assets)
Wilmington Savings Fund Society, FSB		491,229		10.25			71,907		1.50			N/A		N/A
WSFS Financial Corporation		493,534		10.56			70,108		1.50			N/A		N/A
Tier 1 Capital (to risk-weighted assets)
Wilmington Savings Fund Society, FSB		491,229		12.79			153,609		4.00			230,413		6.00
WSFS Financial Corporation		493,534		12.83			153,869		4.00			N/A		N/A

The December 31, 2015 capital ratios presented above were determined in accordance with the Basel III Capital Rules while the December 31, 2014 capital ratios were calculated under the prior capital standards.

The Holding Company

As of December 31, 2015, our capital structure includes one class of stock, $0.01 par common stock outstanding with each share having equal voting rights.

In 2005, WSFS Capital Trust III, our unconsolidated subsidiary, issued Pooled Floating Rate Securities at a variable interest rate of 177 basis points over the three-month LIBOR rate with a scheduled maturity of June 1, 2035. The par value of these securities is $2.0 million and the aggregate principal is $67.0 million. The proceeds from the issue were invested in Junior Subordinated Debentures the Company issued. These securities are treated as borrowings with interest included in interest expense on the Consolidated Statements of Operations. At December 31, 2015, the coupon rate of the WSFS Capital Trust III securities was 2.18%. The effective rate will vary due to fluctuations in interest rates.

When infused into the Bank, the Trust Preferred Securities issued in 2005 qualify as Tier 1 capital. The Bank is prohibited from paying any dividend or making any other capital distribution if, after making the distribution, the Bank would be undercapitalized within the meaning of the Prompt Corrective Action regulations.

At December 31, 2015, $26.4 million in cash remains at the holding company to support the parent company’s needs.

Pursuant to federal laws and regulations, our ability to engage in transactions with affiliated corporations, including the loan of funds to, or guarantee of the indebtedness of, an affiliate, is limited.