WSFS Financial Corporation reported lower net income in the second quarter and first half, due to the reclassification of a commercial loan and a one-time tax benefit that boosted earnings in 2014.
Net income in the first quarter was $12.2 million for the second quarter of 2015 compared to net income of $12.7 million for the second quarter of 2014 and net income of $12.9 million for the first quarter of 2015.
Net income for the first six months of 2015 was $25.1 million compared to $29.6 million a year earlier Results for 2014 include a one-time tax benefit of $6.7 million.
The earnings were slightly below those of analysts’ estimates. Zak’s reported.
Mark A. Turner, President and CEO, said, “Despite a one-off credit setback, our second quarter results reflect solid fundamental performance. We continue to see increases in net interest income driven by good growth in our loan portfolio. We have also seen strong growth in our fee income driven by bank-related businesses of Cash Connect, Wealth Management and mortgage banking. Expenses were well managed and broad loan portfolio credit quality statistics showed improvement.”
Turner went on to say WSFS’continued focus on innovation, growth and serving our customers was demonstrated in the quarter as we announced several new digital products and services. These services include WSFS Mobile Cash, our cardless ATM access, WSFS Everyday Pay , WSFS Business Mobile Banking and our strategic alliance with ZenBanx to provide mobile, multi-currency deposit accounts, and are responsive to customers‟ and market needs”.
Compared to the second quarter of 2014, net loans increased $315.0 million, or 10%, despite a competitive market and the impact of paydowns/payoffs of problem loans over the past year as the economy has improved. This growth was achieved through internal growth and $176.0 million in loans from the September 2014 First National Bank of Wyoming acquisition.
WSFS reported that credit quality remained strong during the second quarter of 2015 despite the impact of one $9.1 million commercial & Industrial problem loan that was moved to nonaccruing status during the second quarter of 2015.
WSFS will expand into neighboring areas of Pennsylvania with the acquisition of eight-branch Alliance Bancorp. Alliance is based in Delaware County, PA.
