WSFS Financial Corporation, Wilmington, reported net income of$37.4 million, compared to net income of$18.9 million, for the first quarter of 2017 and a net loss of$9.8 million for the final quarter of 2017.
The earnings performance led to the board to approve a 22 percent increase in the dividend. The dividend is up 57 percent from October 2017.
Net revenue was$105.2 million an increase of$24.0 million from the same period a year ago.
Earnings were aided by an upward valuation of shares of stock in credit card company Visa.
WSFS recorded an initial$1.7 millionpre-tax insurance recovery, net of deductible, of the$2.8 millionpre-tax fraud loss reported last year
Mark A. Turner, CEO, said, “In addition to the strong performance of our core business during the first quarter, our results were positively impacted by the adoption of a new accounting pronouncement and the initial recovery of a fraud loss previously disclosed in 2017. The accounting change required us to recognize the value of our significant investment in Visa Class B shares and we are also pleased to have made progress in our recovery efforts related to the fraud loss.”
“Our first quarter core results also demonstrate continued optimization of previous acquisitions evidenced by a very healthy 3 percentage points of positive operating leverage compared to 1Q 2017,” Turner added.
The fraud loss is believed to be tied to the case of a Maryland doctor who is accused of obtaining a loan under false pretenses.