WSFS Financial Corp., parent company of WSFS Bank, reported net income of $16.9 million, for the first quarter of 2014, a sharp increase from net income of $9 million for the first quarter of 2013 and net income of $12.1 million, for the fourth quarter of 2013.
Highlights for the first quarter of 2014:
• Commercial loans grew at a 9% annualized rate led by double digit growth in Commercial and Industrial (C&I) and Commercial Real Estate (CRE) lending reflecting continued success in winning market share.
• Core evenues, excluding securities gains, increased $3.5 million, or 8%, from the first quarter 2013 despite the negative impact of the prolonged and severe weather on first quarter 2014 results.
• Core non-interest income improved $1.4 million, or 8% from the first quarter of 2013 with increases in nearly all fee income categories.
During the first quarter of 2014, WSFS completed the legal call of the reverse mortgage trust bonds previously consolidated on WSFS’ balance sheet. As a result, WSFS recorded an income tax benefit of approximately $6.7 million,
WSFS realized $578,000, or $0.04 per diluted common share (after-tax), in net gains on securities sales from continued portfolio management, down from $1.6 million,in the first quarter 2013 and $660,000in the fourth quarter of 2013.
Mark A. Turner, President and CEO, said, “We are pleased to report another quarter of strong growth and solid earnings. Year-over-year revenue growth continues positive trends as we build our businesses and benefit from our position as the leading community bank in our primary market. Our growth comes despite typical first quarter seasonal slowness compounded by the challenges of a severe, prolonged winter and heightened competition.”
“In addition to revenue growth, our balance sheet improvements also reflect the success we are having in building our franchise and solidifying our market position. Loan growth statistics continue to show strength, as C&I lending increased 10% on an annualized basis and CRE lending increased by 12%. Additionally, underlying core customer funding performance reflected market share gains.,” Turner said.
 “Credit quality statistics reflect the continued strength of our loan portfolio. The migration of two relationships to nonperforming status modestly impacted our credit quality metrics. However, the underlying credit trends for the remainder of the portfolio remained solid during the quarter,” he added.
