WSFS reports higher 2nd quarter earnings as it works to integrate Beneficial

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Wilmington-based WSFS Financial Corporation, the parent company of WSFS Bank, reported higher earnings for the second quarter.

Net income for the second quarter was $36.2 million, compared to $13 million in the first quarter and 28.7 million in the second quarter of last year.

Second-quarter revenue was $166.1 million in the second quarter, compared to $124.4 million in the first quarter and $96 million during the second quarter of 2018.
Earnings were affected by costs of acquiring Beneficial Bank and two commercial loans that triggered higher loan loss provisions. One of the loans involved a nursing home and the other was believed to be tied to the Philadelphia Energy Solutions refinery.

WSFS recorded $15.8 million (pre-tax), or approximately $0.22 per share (after-tax), of restructuring and corporate development costs related to the acquisition of Beneficial, compared with 500,000 in the second quarter of 2018.

Rodger Levenson, CEO, said, “Our second quarter results were impacted by expected acquisition costs and two previously reported credit events. Excluding these acquisition costs, our second-quarter results reflect strong fundamental performance and a positive start to our combination with Beneficial. Compared to 2Q 2018, the quarter included both organic and acquisition-related growth in net interest income, net interest margin, and fee income. Our Wealth Management, Cash Connect, and mortgage banking fee-based businesses all recorded year-over-year organic growth.

Levinson continued, “Expenses continue to be well managed, resulting in a lower core efficiency ratio when compared to the same period last year and demonstrate our ability to accelerate cost savings from the Beneficial combination. Also, C&I loans grew 9% (annualized) during the quarter despite significant pay-offs due primarily to the current interest rate environment. Our positive results during the first half of 2019 position us well to deliver on our full-year strategic goals, including a core ROA of greater than 1.50% for 2019. “

“In addition, we are poised and prepared to complete our branding and systems conversion, the final major milestone of our integration effort, on August 26, 2019. We look forward to executing on the future growth opportunities from our combination as the largest, full-service, full-product locally headquartered bank in the greater Delaware Valley.”

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