WSFS Financial Corporation (WSFS): history, ownership, mission, how it works & makes money

A Brief History of WSFS Financial Corporation

Overview

WSFS Financial Corporation, headquartered in Wilmington, Delaware, is the parent company of WSFS Bank. As of September 30, 2024, WSFS operates 80 branches and provides a wide array of financial services, including commercial and consumer banking, treasury management, and wealth management.

Financial Performance

In the third quarter of 2024, WSFS reported net income of $64.4 million, a decrease from $74.2 million in the same period of 2023. For the nine months ending September 30, 2024, net income totaled $199.3 million, down from $205.2 million year-over-year.

Net Interest Income

For the three months ended September 30, 2024, net interest income decreased by $5.1 million compared to the same period in 2023, primarily due to a shift in deposit mix and growth in higher-priced deposit products. The net interest margin was reported at 3.78%, a decline from 4.08% in the previous year.

For the nine months ended September 30, 2024, net interest income decreased by $19.7 million, with the net interest margin at 3.82%, down from 4.15% in the prior year.

Noninterest Income

Noninterest income for the three months ended September 30, 2024, was $90.2 million, an increase of $17.5 million from $72.7 million in 2023. This growth was fueled by the Cash Connect®, Wealth Management, Core Banking, and Mortgage sectors. For the nine months, noninterest income reached $257.6 million, up from $202.7 million year-over-year.

Noninterest Expense

Noninterest expense for the three months ended September 30, 2024, amounted to $163.7 million, a rise of $24.0 million from $139.7 million in the previous year. For the nine months, the expense totaled $468.6 million, an increase from $414.0 million in 2023.

Credit Quality

As of September 30, 2024, the allowance for credit losses stood at $197.5 million, up from $186.1 million at the end of 2023. The ratio of allowance for credit losses to total loans was 1.48% as of September 30, 2024, compared to 1.46% at year-end 2023.

Total nonperforming assets increased to $91.3 million from $75.8 million at the end of 2023, influenced by new troubled loans in the commercial sector.

Stockholder Equity

As of September 30, 2024, total stockholders’ equity was $2.67 billion, an increase from $2.47 billion at year-end 2023. The common stock outstanding was 76,246,771 shares, with a par value of $0.01.

A Who Owns WSFS Financial Corporation (WSFS)

Major Shareholders

As of September 30, 2024, the ownership structure of WSFS Financial Corporation is characterized by a diverse set of institutional and individual investors. The following table outlines the major shareholders and their respective ownership percentages:

Stock Performance

The stock performance of WSFS Financial Corporation has shown resilience in the market, with a stock price of approximately $51.82 as of the latest trading session. The company's market capitalization stands at approximately $3.95 billion, reflecting a positive trend in investor confidence and financial stability.

Financial Highlights

In the third quarter of 2024, WSFS reported net income attributable to common shareholders of $64.4 million, compared to $74.2 million in the same quarter of the previous year. The earnings per share (EPS) for the third quarter stood at $1.08, reflecting a slight decline from $1.22 year-over-year.

Ownership Changes

Over the past year, WSFS has executed a series of stock repurchase programs, buying back a total of approximately 1.65 million shares at an average price of $51.82. This initiative reflects the company’s strategy to enhance shareholder value and return capital to its investors.

Regulatory Capital Position

As of September 30, 2024, WSFS Financial Corporation maintained a robust capital position with a common equity Tier 1 capital ratio of 13.46%, exceeding the regulatory minimum requirement of 4.5%. The total risk-based capital ratio stands at 15.61%, indicating strong capital adequacy.

Recent Developments

WSFS has expanded its business operations, particularly in the Wealth Management sector, which reported $87.2 billion in assets under management (AUM) as of September 30, 2024. This growth has been attributed to the integration of Bryn Mawr Trust and the enhancement of service offerings to high-net-worth clients.

Dividend Policy

The Board of Directors of WSFS Financial Corporation declared a quarterly cash dividend of $0.15 per share, payable on November 22, 2024, to stockholders of record as of November 8, 2024. The total dividends paid in the third quarter amounted to $8.89 million.

WSFS Financial Corporation (WSFS) Mission Statement

Mission Statement Overview

WSFS Financial Corporation aims to provide exceptional financial services that help customers achieve their financial goals. The mission emphasizes customer-centric service, community involvement, and innovative banking solutions.

Key Performance Indicators

As of September 30, 2024, WSFS Financial Corporation reported significant financial metrics that underscore its operational effectiveness and commitment to stakeholders:

Core Values

• Customer Commitment: Prioritizing the needs and satisfaction of customers.
• Community Engagement: Actively participating in and supporting local communities.
• Integrity: Upholding the highest standards of ethical conduct.
• Innovation: Continuously seeking new ways to enhance customer experience and operational efficiency.

Financial Highlights

For the three months ended September 30, 2024, WSFS Financial Corporation reported:

Regulatory Compliance

WSFS Financial Corporation maintains strong regulatory capital ratios, ensuring compliance and stability:

Community Involvement

WSFS Financial Corporation is committed to community service, achieving volunteer goals and supporting local initiatives:

Conclusion

WSFS Financial Corporation continues to leverage its mission statement to guide its operations and community involvement, ensuring alignment with its financial goals and customer satisfaction.

How WSFS Financial Corporation (WSFS) Works

Business Overview

WSFS Financial Corporation operates as a bank holding company. The company provides a range of financial services through its subsidiaries, including commercial banking, mortgage banking, and wealth management.

Financial Performance

For the three months ended September 30, 2024, WSFS reported a net income of $64.4 million, compared to $74.2 million for the same period in 2023. The net interest income for this quarter was $177.5 million, a decrease from $182.6 million year-over-year.

Over the nine months ending September 30, 2024, the net income was $199.3 million, down from $205.5 million in 2023. The net interest income for this period was $527.2 million, compared to $547.0 million in the previous year.

Balance Sheet Highlights

As of September 30, 2024, total assets increased to $20.9 billion, up from $20.6 billion at the end of 2023. Total liabilities stood at $18.2 billion, also reflecting an increase from $18.1 billion at the end of the previous year. Stockholders’ equity reached $2.7 billion, an increase from $2.5 billion at the end of 2023.

Loan Portfolio

As of September 30, 2024, WSFS reported net loans and leases of $13.1 billion, reflecting growth of $541.5 million since December 31, 2023. The composition of the loan portfolio included commercial loans, residential mortgages, and consumer loans.

Capital Position

WSFS maintains a strong capital position with total common equity Tier 1 capital of 13.46% and total risk-based capital of 14.71% as of September 30, 2024. The book value per share increased to $45.37, up from $40.93 at the end of 2023.

Dividends and Share Repurchase

During the three months ended September 30, 2024, WSFS declared a cash dividend of $0.15 per share, which will be paid on November 22, 2024. The company repurchased 266,672 shares of common stock at an average price of $51.82 per share during the same period, totaling approximately $13.8 million.

Conclusion

WSFS Financial Corporation continues to demonstrate a solid financial performance with a diversified portfolio and robust capital position. The company's strategic initiatives and effective management practices are evident in its growth metrics and shareholder returns.

How WSFS Financial Corporation (WSFS) Makes Money

Business Segments

WSFS Financial Corporation operates through three primary segments: WSFS Bank, Cash Connect®, and Wealth Management. Each segment contributes uniquely to the company's revenue streams.

WSFS Bank

WSFS Bank provides a variety of financial products and services to commercial and consumer customers. As of September 30, 2024, WSFS Bank reported:

• Interest income of $782.95 million, a significant increase from $703.21 million in the same period of 2023.
• Net interest income of $177.50 million for the third quarter of 2024, down from $182.60 million in the third quarter of 2023.
• Provision for credit losses of $18.42 million for the quarter, which is comparable to $18.41 million in the same quarter of the previous year.

Cash Connect®

This segment specializes in cash logistics services, including ATM vault cash and smart safe services. The Cash Connect® segment generated:

• Noninterest income of $89.16 million for the nine months ended September 30, 2024, an increase from $59.40 million in the same period of 2023.
• Growth driven by new bailment customers added in late 2023 and early 2024.

Wealth Management

Wealth Management services include investment management, fiduciary services, and financial planning. For the nine months ended September 30, 2024, Wealth Management reported:

• Noninterest income of $108.26 million, up from $96.65 million in the prior year.
• Assets under management (AUM) and assets under administration (AUA) totaling $87.2 billion as of September 30, 2024.

Financial Performance

Revenue Streams

WSFS generates revenue through various channels:

• Interest Income: Primarily from loans and leases, which accounted for $235.98 million in Q3 2024.
• Noninterest Income: Includes fees from wealth management, ATM services, and deposit charges, totaling $60.20 million in Q3 2024.
• Investment Management Fees: Contributed significantly to noninterest income, reflecting growth across key product lines.

Cost Management

Operating expenses for WSFS were reported as follows:

• Noninterest expenses totaled $163.72 million for Q3 2024, up from $139.69 million in Q3 2023.
• Increased expenses were largely driven by higher salaries and benefits, and costs associated with Cash Connect® funding.

Capital and Liquidity

As of September 30, 2024, WSFS maintained strong capital ratios:

• Total common equity Tier 1 capital of 13.46%.
• Total risk-based capital of 14.71%.
• Cash and cash equivalents totaled $990.92 million.

During the nine months ended September 30, 2024, the company returned $101.5 million to shareholders through share repurchases and dividends, demonstrating a commitment to returning value to investors.

Updated on 16 Nov 2024

Resources:

1. WSFS Financial Corporation (WSFS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of WSFS Financial Corporation (WSFS)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View WSFS Financial Corporation (WSFS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.