WSFS Financial Corp. (WSFS, Financial) filed Quarterly Report for the period ended 2009-03-31.
WSFS Financial Corporation is a thrift holding company. WSFS provides residential and commercial real estate commercial and consumer lending services as well as cash management services funding these activities primarily with retail deposits and borrowings. WSFS Financial Corp. has a market cap of $168.7 million; its shares were traded at around $27.36 with a P/E ratio of 15 and P/S ratio of 0.8. The dividend yield of WSFS Financial Corp. stocks is 1.8%. WSFS Financial Corp. had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated WSFS Financial Corp. the business predictability rank of 3.5-star.
Total liabilities increased $51.9 million, or 2%, between December 31, 2008 and March 31, 2009, to $3.3 billion. This increase was mainly due to an increase in deposits of $135.8 million, or 6%. This included increases of $139.1 million, or 8%, in customer deposits and $22.9 million, or 7%, in brokered certificates of deposit. These increases were partially offset by a decrease in other jumbo certificates of deposit of $26.2 million, or 25%. There were also increases in Federal funds purchased and securities sold under agreements to repurchase of $25.0 million, or 33%, and other borrowed funds of $7.0 million, or 6%. These increases were more than offset by a decrease in Federal Home Loan Bank (“FHLB”) advances of $119.7 million, or 15%.
Stockholders’ equity increased $58.8 million between December 31, 2008 and March 31, 2009. This increase was mainly due to the sale of senior preferred stock to the U. S. Department of the Treasury under its Capital Purchase Program (“CPP”) totaling $52.6 million. In addition, accumulated other comprehensive income (loss) improved $3.7 million during the first three months of 2009 mainly due to an increase of the fair value of securities available for sale. Also contributing to the increase was net income of $2.9 million as well as an increase of $583,000 from the issuance of common stock and employee stock option activity. Partially offsetting these increases was the declaration of cash dividends totaling $740,000 during the three months ended March 31, 2009.
During the three months ended March 31, 2009, cash and cash equivalents decreased $46.7 million to $201.8 million. Net loan growth resulted in the use of $69.9 million in cash, and was primarily the result of the successful implementation of specific strategies designed to increase corporate and small business lending. Also, during the three months ended March 31, 2009, net borrowings from the FHLB decreased $119.7 million, resulting in a decrease in cash. Further, our mortgage-backed securities portfolio growth decreased cash by $143.3 million. Partially offsetting these decreases was $142.6 million in cash provided through the net increase in demand, savings and time deposits. In addition, we sold 52,625 shares of senior preferred stock, resulting in an increase in cash of $52.6 million. Finally, $13.6 million in cash was provided by operating activities.
Nonerforming assets increased $20.0 million between December 31, 2008 and March 31, 2009. This increase was mainly due to a $10.9 million net increase in nonaccruing loans and a $5.5 million increase in restructured mortgage and home equity consumer debt comprised of 24 loans with an average size of approximately $230,000. The increase in nonaccruing loans was largely due to four nonaccruing residential construction loans (net of $2 million in writedowns on these loans). In addition there was a $3.6 million increase in assets acquired through foreclosure due to one large residential construction and land development (“CLD”) property.
We recorded net income of $2.9 million ($3.0 million pre-tax) or $.39 per diluted share for the first quarter of 2009. This compares to $7.2 million ($10.0 million pre-tax) or $1.15 per diluted share for the same quarter last year. Earnings per share were reduced by preferred stock dividends and discount accretion of $513,000 resulting from the sale of the senior preferred stock to the U.S. Treasury under CPP. Earnings for the first quarter of 2009 were impacted by an increase in the provision for loan loss to $7.7 million compared to $2.4 million in the first quarter of 2008. This increase was the result of a risk grade migration in the commercial loan portfolio, charge-offs taken during the quarter, continuing declines in value of collateral and loan growth. In addition, noninterest expenses increased $3.4 million due in large part to an increase in FDIC insurance premiums as a result of higher rates and deposits as well as the recording of certain immaterial items in 2009 that pertain to a billing methodology change from a prior period. Net interest income for the first quarter of 2009 was $23.9 million, a $2.9 million increase, compared to $21.0 million for the first quarter of 2008.
Read the The complete ReportWSFS is in the portfolios of Bruce Sherman of Private Capital Management.
WSFS Financial Corporation is a thrift holding company. WSFS provides residential and commercial real estate commercial and consumer lending services as well as cash management services funding these activities primarily with retail deposits and borrowings. WSFS Financial Corp. has a market cap of $168.7 million; its shares were traded at around $27.36 with a P/E ratio of 15 and P/S ratio of 0.8. The dividend yield of WSFS Financial Corp. stocks is 1.8%. WSFS Financial Corp. had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated WSFS Financial Corp. the business predictability rank of 3.5-star.
Highlight of Business Operations:
Our total assets increased $110.7 million or 3% during the three months ended March 31, 2009. Total loans increased $60.1 million, or 2%, attributable to a $69.7 million, or 4%, increase in commercial and commercial real estate loans offset by a decrease in residential loans of $8.0 million, or 2%. Mortgage-backed securities increased $98.3 million, or 20%. These increases were partially offset by decreases of $46.7 million, or 19%, in cash and cash equivalents. This included decreases of $45.2 million, or 24%, in cash in non-owned ATMs. The decrease is attributable to the higher cash balances required for ATMs during the fourth quarter of 2008 due to seasonal demand.Total liabilities increased $51.9 million, or 2%, between December 31, 2008 and March 31, 2009, to $3.3 billion. This increase was mainly due to an increase in deposits of $135.8 million, or 6%. This included increases of $139.1 million, or 8%, in customer deposits and $22.9 million, or 7%, in brokered certificates of deposit. These increases were partially offset by a decrease in other jumbo certificates of deposit of $26.2 million, or 25%. There were also increases in Federal funds purchased and securities sold under agreements to repurchase of $25.0 million, or 33%, and other borrowed funds of $7.0 million, or 6%. These increases were more than offset by a decrease in Federal Home Loan Bank (“FHLB”) advances of $119.7 million, or 15%.
Stockholders’ equity increased $58.8 million between December 31, 2008 and March 31, 2009. This increase was mainly due to the sale of senior preferred stock to the U. S. Department of the Treasury under its Capital Purchase Program (“CPP”) totaling $52.6 million. In addition, accumulated other comprehensive income (loss) improved $3.7 million during the first three months of 2009 mainly due to an increase of the fair value of securities available for sale. Also contributing to the increase was net income of $2.9 million as well as an increase of $583,000 from the issuance of common stock and employee stock option activity. Partially offsetting these increases was the declaration of cash dividends totaling $740,000 during the three months ended March 31, 2009.
During the three months ended March 31, 2009, cash and cash equivalents decreased $46.7 million to $201.8 million. Net loan growth resulted in the use of $69.9 million in cash, and was primarily the result of the successful implementation of specific strategies designed to increase corporate and small business lending. Also, during the three months ended March 31, 2009, net borrowings from the FHLB decreased $119.7 million, resulting in a decrease in cash. Further, our mortgage-backed securities portfolio growth decreased cash by $143.3 million. Partially offsetting these decreases was $142.6 million in cash provided through the net increase in demand, savings and time deposits. In addition, we sold 52,625 shares of senior preferred stock, resulting in an increase in cash of $52.6 million. Finally, $13.6 million in cash was provided by operating activities.
Nonerforming assets increased $20.0 million between December 31, 2008 and March 31, 2009. This increase was mainly due to a $10.9 million net increase in nonaccruing loans and a $5.5 million increase in restructured mortgage and home equity consumer debt comprised of 24 loans with an average size of approximately $230,000. The increase in nonaccruing loans was largely due to four nonaccruing residential construction loans (net of $2 million in writedowns on these loans). In addition there was a $3.6 million increase in assets acquired through foreclosure due to one large residential construction and land development (“CLD”) property.
We recorded net income of $2.9 million ($3.0 million pre-tax) or $.39 per diluted share for the first quarter of 2009. This compares to $7.2 million ($10.0 million pre-tax) or $1.15 per diluted share for the same quarter last year. Earnings per share were reduced by preferred stock dividends and discount accretion of $513,000 resulting from the sale of the senior preferred stock to the U.S. Treasury under CPP. Earnings for the first quarter of 2009 were impacted by an increase in the provision for loan loss to $7.7 million compared to $2.4 million in the first quarter of 2008. This increase was the result of a risk grade migration in the commercial loan portfolio, charge-offs taken during the quarter, continuing declines in value of collateral and loan growth. In addition, noninterest expenses increased $3.4 million due in large part to an increase in FDIC insurance premiums as a result of higher rates and deposits as well as the recording of certain immaterial items in 2009 that pertain to a billing methodology change from a prior period. Net interest income for the first quarter of 2009 was $23.9 million, a $2.9 million increase, compared to $21.0 million for the first quarter of 2008.
Read the The complete ReportWSFS is in the portfolios of Bruce Sherman of Private Capital Management.
