WSFS weathers Covid-19, posts slightly lower earnings in 3rd quarter

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Wilmington-based WSFS Financial Corporation reported slightly lower earnings in the third quarter.

(Dollars in millions, except per share data) 3Q 2020 2Q 2020 3Q 2019
Net interest income $ 113.0 $ 113.8 $ 120.8
Fee income 49.2 64.4 62.3
Total net revenue 162.2 178.1 183.2
Provision for credit losses 2.7 94.8 4.1
Noninterest expense 93.5 93.4 109.6
Net income (loss) attributable to WSFS 51.1 (7.1) 53.9
Pre-provision net revenue (PPNR)(1) 68.7 84.7 73.6
Earnings (loss) per share (diluted) 1.01 (0.14) 1.02
Return on average assets (ROA) 1.49% (0.22)% 1.72
Return on average equity (ROE) 11.1 (1.6) 11.6
Efficiency ratio 57.6 52.4 59.7

GAAP results for the third quarter included the following items, with a significant decline in realized gain on sale related to Visa Class B shares compared to in the second quarter when WSFS recorded a $22.1 million net realized gain on the sale of 360,000 shares.

WSFS grew rapidly last year with the acquisition of Beneficial Bank in Philadelphia.

Rodger Levenson, CEO, said, “Our solid 3Q results including core ROA of 1.48 percent and core pre-provision net revenueof $68.0 million, or 1.98 percent of average assets, reflected the strength of our diversified business model while the economy gradually recovers.

Levenson continued, “The health, well-being, and safety of our associates, customers, and our communities remains our top priority. During the quarter, we were pleased to reopen all previously closed banking locations with appropriate precautions and I would like to extend a special thanks to all of our associates who continue to serve our customers during this challenging period of time. In addition, we continue to make significant investments throughout the franchise which positions us to accelerate our significant organic growth opportunity.

The WSFS board approved a quarterly cash dividend of $0.12 per share of common stock consistent with the prior quarter. Additionally, the Board approved the resumption of share repurchases under the Board authorization approved in 1Q 2020 that allows for the purchase of 15% of outstanding shares.

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