WSFS Financial Corporation, the parent company of WSFS Bank, reported that it weathered the uncertainties facing regional banks in the first quarter.
Net income declined from the fourth quarter as a provision for loan losses was increased.
The Wilmington-based financial services company did see a decline of $200 million in deposits during the period that followed two bank failures, notably Silicon Valley Bank.
Rodger Levenson, CEO, said, “Despite the disruption in banking markets in mid-March, WSFS performed very well this quarter, reflecting the continued strength and diversity of our relationship-based business model. A huge thank you to all of our associates who rallied together to serve our customers during this period of uncertainty.
“Our balance sheet remains strong with significant liquidity capacity and capital levels above well-capitalized
“While most credit quality metrics remain at historically favorable levels, ACL (loan loss) reserves increased prudently due to the near-term economic outlook.
“WSFS remains very well positioned to serve our customers and communities. During the quarter, we were honored to be named to Forbes’ list of America’s Best Banks for the fourth year in a row and recognized by Gallup as one of its Exceptional Workplaces of 2023 for the seventh time since 2016.
Selected financial results and metrics are as follows:
| (Dollars in millions, except per share data) | 1Q 2023 | 4Q 2022 | 1Q 2022 | |||||||||
| Net interest income | $ | 182.5 | $ | 193.9 | $ | 138.6 | ||||||
| Fee revenue | 63.1 | 64.9 | 60.6 | |||||||||
| Total net revenue | 245.7 | 258.8 | 199.1 | |||||||||
| Provision for credit losses | 29.0 | 13.4 | 19.0 | |||||||||
| Noninterest expense | 133.0 | 132.9 | 174.5 | |||||||||
| Net income attributable to WSFS | 62.4 | 84.4 | 3.8 | |||||||||
| Pre-provision net revenue (PPNR)(1) | 112.6 | 125.9 | 24.7 | |||||||||
| Earnings per share (EPS) (diluted) | 1.01 | 1.37 | 0.06 | |||||||||
| Return on average assets (ROA) (a) | 1.27 | % | 1.69 | % | 0.07 | % | ||||||
| Return on average equity (ROE) (a) | 11.2 | 15.7 | 0.6 | |||||||||
| Fee revenue as % of total net revenue | 25.6 | 25.0 | 30.4 | |||||||||
| Efficiency ratio | 54.0 | 51.2 | 87.5 |
