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Core EPS: $1.08 per share.
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Core ROA: 1.22%.
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Core Return on Tangible Common Equity: 16.96%.
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Loan Growth: Increased 5% annualized.
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Deposit Growth: Increased 3% annualized.
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Loan-to-Deposit Ratio: 80% as of September 30.
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Core Fee Revenue: $90.1 million, up 5% linked quarter and 23% year over year.
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Wealth Management Fee Revenue: Declined 3% linked quarter, increased 12% year over year.
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Cash Connect Revenue: Increased 3% linked quarter and 50% year over year.
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Core Noninterest Expense: $163.7 million, up 5% linked quarter.
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Net Interest Income Growth: 2% linked quarter.
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Net Interest Margin: 3.78%, down 7 basis points from 2Q ’24.
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Total Net Credit Cost: $20.1 million, increased modestly compared to the prior quarter.
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Nonperforming Assets: Increased 12 basis points quarter-over-quarter to 44 basis points.
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Net Charge-offs: Increased 14 basis points quarter-over-quarter to 58 basis points.
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Total Stockholders’ Equity: Increased 8% linked quarter.
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Book Value Per Share: Increased 8% linked quarter to $45.37.
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Tangible Book Value Per Share: Increased 13% linked quarter to $28.56.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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WSFS Financial Corp (NASDAQ:WSFS) reported a core EPS of $1.08 per share, demonstrating strong financial performance.
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Loans and deposits increased by 5% and 3% respectively on an annualized basis, indicating healthy growth.
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Core fee revenue rose by 5% quarter-over-quarter and 23% year-over-year, showcasing robust revenue generation.
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Successful completion of the trust accounting system conversion and upgraded client account portal positions WSFS for future growth.
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Total stockholders’ equity increased by 8% linked quarter, reflecting strong market value increases and earnings.
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Net interest margin decreased by 7 basis points from the previous quarter, impacted by higher-priced deposits.
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Nonperforming assets increased by 12 basis points quarter-over-quarter, driven by two problem loans.
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Net charge-offs rose by 14 basis points quarter-over-quarter, primarily due to a write-down of a nonperforming loan.
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Core noninterest expense increased by 5% linked quarter, driven by unfunded loan commitment reserves and higher loan workout costs.
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Wealth management fee revenue declined by 3% linked quarter, despite a 12% increase over the previous year.
Q: Can you explain the impact of the hedge program on the net interest margin (NIM) and what you expect per 25 basis point rate hike? A: David Burg, CFO, explained that the NIM reduction of 7 basis points was due to a write-up of the investment portfolio, a tick-up in nonaccruals, and higher deposit costs. The hedge program, now completed at $1.5 billion, mitigates asset sensitivity. The hedges will reduce the impact of rate cuts on NIM, previously estimated at 5 basis points per 25 basis point cut.
