WSFS Financial Corporation Wilmington, reported sharply higher earnings in the seconde quarter.
Net income came in at $17.5 million, compared to net income of $12.2 million, for the second quarter of 2015 and net income of $15.8 million, for the first quarter of 2016.
Results for the second quarter of 2016 (compared to the same period of 2015) reflect net revenues of $71.3 million, or an increase of $9.7 million, net interest income of $46.4 million, or an increase of $7.3 million, noninterest income of $24.8 million, or an increase of $2.4 million and noninterest expenses of $44.0 million, or an increase of $5.4 million.
Highlights include:
- Core return on average assets(1) (ROA) increased 23 percent to 1.23 percent from 1 percent for the second quarter of 2015.
- Core net revenue was up $9.6 million, or 16 percent from the second quarter of 2015, including a $7.3 million, or 19 percent increase in core net interest income and a $2.3 million, or 11 percent increase in core fee income, reflecting growth across all business lines.
- Commercial loans were up 5 percent, led by 13 percent annualized growth in Commercial and Industrial (C&I) lending
- WSFS recorded $549,000 (pre-tax) in expenses related to corporate development (M&A) activities during the second quarter of 2016, mostly related to the acquisition of Penn Liberty Bank, which is scheduled to close on August 12, 2016. WSFS recorded $0.02 per share in corporate development costs in the second quarter of 2015.
• WSFS recorded a legal reserve of $950,000, or $0.02 per share during the second quarter of 2016 related to the expected settlement of a legal matter initiated in 2011.
Mark A. Turner, CEO, said, “Our strong second quarter 2016 results reflect solid fundamental performance and the continued success of our balanced growth strategy. Growth in earnings came from all of our business lines, and our strong net interest income performance reflects our disciplined approach to loan and deposit growth while maintaining our margins in this highly competitive market.”
Turner continued, “In August we expect to complete our previously announced merger with Penn Liberty Bank in southeastern Pennsylvania. This would represent our fourth acquisition in four years, including three strong local community institutions in the last three years, expanding our product offerings and geographic footprint.”
