WSFS Financial Corporation, the parent company of WSFS Bank, reported net income of $15.8 million for the first quarter of 2016 compared to net income of $12.9 million, for the first quarter of 2015 and net income of $14 million for the fourth quarter of 2015.
Highlights for the first quarter of 2016:
- Core earnings per share (enumerated below) of $0.53 increased 20 percent from 2015; and core return on average assets (ROA) increased 10 percent to 1.14 percent from 1.04 percent for the first quarter of 2015.
- Core net revenue increased $9.5 million, or 16 percent from the first quarter of 2015, including a $7.4 million, or 19 percent increase in core net interest income and a $2.1 million, or 10 percent increase in core fee income, reflecting both strong organic and acquisition growth.
- Commercial loans grew at a 5 percent annualized rate led by more than 8 percent growth in both Commercial and Industrial (C&I) and Commercial Real Estate (CRE) lending, reflecting continued success in winning good market share.
WSFS recorded $569,000 (pre-tax), in expenses related to corporate development (M&A) activities during the first quarter of 2016, primarily related to the acquisition of Alliance Bank, which closed in early October 2015, and the pending combination with Penn Liberty Bank, scheduled to close in August 2016.
“These results provide a strong foundation as we embark on our new 2016-2018 Strategic Plan. The Strategic Plan includes a full year 2016 core and sustainable ROA goal of 1.17 percent, increasing to at least 1.25 percent by the fourth quarter of 2016 and 1.30 percent by the fourth quarter of 2018. Our Strategic Plan reflects our focus on taking market share, deepening customer relationships, growing fee income and optimizing and innovating across our organization,” CEO Mark Turner stated.
“Also, during the quarter we announced that we have obtained all required approvals for our combination with Penn Liberty Bank, which we expect to close in August 2016. This combination will allow us to continue our expansion in our highly desirable Southeastern Pennsylvania market. We expect core EPS accretion in 2016 from this combination, further embracing our profitability growth,” Turner added
