WSFS Financial Corporation parent company of WSFS Bank, reported lower net income in the first quarter.
Net income for the quarter was $10.9 million, compared to $13 million during the same period a year earlier.
The Wilmington company missed earnings estimates, according to Zacks.
Results were affected by the economic effects of the COVID-19 pandemic and the adoption of the Current Expected Credit Loss method of accounting (CECL). The change contributed to an additional provision for credit losses of $56.6 million for the quarter.
Rodger Levenson, CEO, said, “Our first quarter 2020 results were significantly impacted by the economic effects of the global COVID-19 pandemic, including $56.6 million of additional provision expense.”
“Our immediate focus remains on the health, wellbeing, and safety of our associates, customers, and our communities during this challenging and uncertain time. This includes reinforcing best healthcare and prevention practices and universal precautions in offices and banking locations and supporting our customers through several relief programs including significant participation in the Coronavirus Aid, Relief and Economic Security (CARES) Act and Payroll Protection Program (PPP). We also were pleased to make a $3 million grant to the WSFS Community Foundation to address the impacts of COVID-19 and provide long-term support for education, health and human services, and economic development in our communities,” Levinson added.
Levinson continued, “I am proud of all our associates and how hard they are working to support our customers and local communities during this uncertain time. Over the past 188 years, we’ve faced many challenges; we’re here and stand ready to serve those in need, now and for many years to come.”