WSFS Financial Corporation, the parent company of WSFS Bank, reported net income of $12.7 million for the third quarter compared to net income of $14.4 million during the same period a year earlier and net income of $17.5 million for the second quarter.
Earnings were dinged by acquisition costs and a decision to exit a loan relationship.
Net income for the first nine months of 2016 grew $6.4 million, or 16 percent , to $46 million from $39.5 million for the same period of 2015.
Results for the third quarter reflect net revenues of $75.9 million, an increase of $13.2 million, or 21 percent, net interest income of $49 million, or an increase of $8 million, noninterest income of $26.8 million, or an increase of $5.2 million and noninterest expenses of $50.5 million, or an increase of $11.8 million.
- Highlights cited by WSFS included:
- Successfully completed the acquisitions of Penn Liberty Financial Corp (“Penn Liberty”) and Powdermill Financial Solutions LLC the quarter. Recently announced the acquisition of West Capital Management in October.
- Net loans grew $574.4 million, including organic loan growth of $101.3 million or 11 percent (annualized) over June 30, 2016; the remainder of the loan growth was attributable to the successful Penn Liberty acquisition during the quart
- Customer deposits grew $756.0 million, including internal growth of $181.2 million or 19 percent (annualized) during the quarter.
WSFS reported a $15.4 million loan relationship was terminated during the third quarter, resulting in a $4.2 million charge-off and $3 million in incremental loan loss provision in the quarter. The loan had been reported as many times over the past several years.
Mark A. Turner, CEO, said, “During the quarter we successfully completed our combination with Penn Liberty and Powdermill Financial Solutions, as well announcing our acquisition of West Capital in October, and we warmly welcome our new Customers and Associates to WSFS Bank.
He continued, “Our third quarter results were impacted by active credit management and the costs from our strategic acquisitions during and shortly after the quarter. Excluding these discrete costs, our third quarter results reflect solid fundamental performance and continue to reflect the success of our balanced growth strategy.”
