WSFS Financial (US:WSFS)2023-08-03 20:19Financial Position - As of June 30, 2023, WSFS Financial Corporation had total assets of $20.4 billion and assets under management (AUM) and assets under administration (AUA) of $67.9 billion[203]. - The total loan and lease portfolio was $12.3 billion, with a commercial loan and lease portfolio of $9.6 billion[205]. - Stockholders' equity increased by $109.5 million from December 31, 2022, primarily due to $131.1 million in earnings[210]. - The book value per share of common stock was $37.89, an increase of $2.10 from $35.79 at December 31, 2022[212]. - As of June 30, 2023, the company had $1.1 billion in cash, cash equivalents, and restricted cash, with uninsured deposits estimated at $6.0 billion, representing 37% of total customer deposits[218]. - The company's readily available, secured borrowing capacity was $5.2 billion from the FHLB and $0.2 billion through the Federal Reserve Discount Window, with a ratio of secured borrowing capacity to estimated unprotected deposits at 186%[219]. - As of June 30, 2023, tangible common equity was $1,310,381 thousand, compared to $1,192,881 thousand as of December 31, 2022[251]. Income and Expenses - Net income for the three months ended June 30, 2023, was $68.7 million, an increase from $60.7 million for the same period in 2022[231]. - For the six months ended June 30, 2023, net income was $131.1 million, compared to $64.5 million for the same period in 2022[232]. - Noninterest income decreased by $5.2 million, mainly from declines in banking fees and capital markets income[233]. - Noninterest expense rose by $7.2 million, driven by higher variable operating costs and salaries[233]. - Noninterest income for the six months ended June 30, 2023, was $130.0 million, a decrease of $2.6 million from $132.6 million in the same period of 2022[244]. - Noninterest expense for the three months ended June 30, 2023, was $141.3 million, an increase of $7.2 million from $134.0 million for the same period in 2022[245]. Credit and Loans - The allowance for credit losses (ACL) on loans and leases increased by $29.9 million due to economic forecast impacts and net loan originations[209]. - The ratio of allowance for credit losses to total loans and leases was 1.28% as of June 30, 2023, compared to 1.17% at December 31, 2022[224]. - The provision for credit losses for the three months ended June 30, 2023, was $15.8 million, an increase of $7.6 million compared to $8.3 million for the same period in 2022[239]. - The provision for credit losses for the six months ended June 30, 2023 increased by $17.6 million due to economic uncertainty[233]. - The net charge-offs for the six months ended June 30, 2023, were $24,835 thousand, with a ratio of net charge-offs to average gross loans at 0.41%[242]. Interest Income and Margin - Net interest income increased by $28.2 million due to the rising interest rate environment and balance sheet size and mix[233]. - For the six months ended June 30, 2023, net interest income increased by $72.2 million compared to the same period in 2022[233]. - The net interest margin for the six months ended June 30, 2023, was 4.18%, a 98 basis point increase from 3.20% in the same period of 2022[237]. - Total interest-earning assets amounted to $17.78 billion with a net interest margin of 4.11% for the three months ended June 30, 2023[234]. - The interest rate spread for the six months ended June 30, 2023, was 3.56%, compared to 3.12% for the same period in 2022[236]. Asset Quality - Total nonperforming assets decreased by $9.8 million from December 31, 2022, to June 30, 2023, with a nonperforming assets to total assets ratio of 0.16%[224]. - The allowance for credit losses increased to $171.9 million at June 30, 2023, from $151.9 million at December 31, 2022, with a ratio of allowance for credit losses to total loans and leases at 1.28%[241]. Shareholder Actions - The company repurchased 357,278 shares of common stock at an average price of $38.32 per share, totaling approximately $13.7 million during the quarter[209]. - As of June 30, 2023, WSFS had $135.0 million in cash reserved for share repurchases, dividends, acquisitions, and strategic growth plans[215]. Economic Environment - The economic value of equity ratio decreased to 20.99% in a stable interest rate environment as of June 30, 2023, from 23.87% at December 31, 2022[230]. - The FDIC proposed a special deposit insurance assessment of 3.13 basis points on uninsured deposits exceeding $5 billion, applicable starting Q1 2024[256].