WSFS Financial Corporation, parent company of WSFS Bank, reported net income of $38.9 million compared to net income of $20.6 million for the same period in 2017, and $28.7 million for the second quarter of this year.
The company did report slower growth in loan volume as the effects of price and nonbank competition were felt.
Results included a pre-tax insurance recovery of $7.9 million; a pre-tax realized gain of $3.8 million from the sale of a portion of our Visa Class B shares; and a $3.2 million, or $0.07per share, unrealized valuation gain on remaining equity investment in Visa Class B shares.
Net revenue (which includes net interest income and noninterest income) was $105 million for the third quarter, an increase of $16.4 million from the same period in 2017
WSFS recorded $3.8 million in corporate development expenses related to the pending merger with Beneficial Bancorp, Inc., compared to $200,000 during the same period a year.
Mark A. Turner, CEO, said, “Another excellent quarter of earnings keeps us on track to well exceed the enhanced primary goals in our 2016-2018 Strategic Plan, including a full year 2018 ROA (return on assets) of 1.50 percent and creates strong momentum into 2019 and our upcoming combination with Beneficial Bancorp.”
At September 30, 2018, WSFS’ net loan portfolio was $4.92 billion, an increase of $21.3 million, or 2 percent.
“This dynamic has led to the ongoing, highly competitive pricing market, which includes competition from non-banks, resulting in increased amounts of payoffs and paydowns. Consistent with our historical strategy, we remained focused on both pricing and credit discipline over short-term loan growth,” a WSFS release stated.
Total problem assets, which includes all criticized, classified, and nonperforming loans as well as other real estate owned, were $151.8 million at September 30, an increase compared to $143 million at June 30, 2018.
Total nonperforming assets decreased $1.3 million, or 2 percent, to $53.9 million at September 30, compared to $55.1 million at June 30.
