WSFS Financial (US:WSFS)2024-04-25 20:06Financial Performance - WSFS reported a 1Q 2024 ROA of 1.28% and EPS of $1.09, with annualized loan growth of 7%[1] - Total net revenue for 1Q 2024 was $251.1 million, a decrease of 5.4% from $265.3 million in 4Q 2023[2] - Core EPS was $1.11, down from $1.15 in 4Q 2023, while core ROA decreased to 1.31% from 1.36%[4] - Net income attributable to WSFS increased to $65.8 million in Q1 2024, compared to $62.4 million in Q1 2023, with diluted earnings per share rising to $1.09[42] - GAAP net income attributable to WSFS for Q1 2024 was $65,761 thousand, an increase of 5.4% compared to $62,404 thousand in Q1 2023[49] Revenue and Income - Core fee revenue decreased by $1.5 million, or 2%, to $76.5 million compared to Q4 2023, but increased by $12.8 million, or 20%, compared to Q1 2023[21] - Noninterest income decreased to $75.9 million in Q1 2024 from $87.2 million in Q4 2023, with notable declines in investment management and fiduciary revenue[42] - Noninterest income (GAAP) for Q1 2024 was $75,857 thousand, a significant increase of 20.3% from $63,127 thousand in Q1 2023[48] - Cash Connect net revenue increased by $5.1 million to $24.1 million in Q1 2024 compared to Q4 2023, and by $8.6 million compared to Q1 2023[37] Assets and Loans - As of March 31, 2024, WSFS Financial Corporation had $20.6 billion in assets and $80.5 billion in assets under management and administration[40] - Total assets as of March 31, 2024, were $20.58 billion, slightly down from $20.59 billion at the end of 2023 but up from $20.32 billion a year ago[44] - Net loans and leases increased to $12.82 billion in Q1 2024, compared to $12.61 billion in Q4 2023 and $12.02 billion in Q1 2023[44] - Total loans and leases reached $12,885,965 thousand, generating $224,703 thousand in interest income, reflecting a yield of 7.02%[45] Deposits and Funding - Customer deposits decreased by $235.2 million, or 1% (6% annualized), primarily due to a reduction in corporate trust deposits[11] - Total customer deposits decreased to $16.19 billion in Q1 2024 from $16.42 billion in Q4 2023, but increased from $15.88 billion in Q1 2023[44] - The loan-to-deposit ratio was 79% at March 31, 2024, indicating continued capacity for future loan growth[12] Expenses and Efficiency - Core noninterest expense increased by $7.8 million, or 6%, to $147.6 million compared to Q4 2023, with a core efficiency ratio of 58.6%[23] - Noninterest expense increased by $6.0 million from Q4 2023 to $23.3 million in Q1 2024, primarily due to higher funding costs and onboarding costs for new units[37] - The efficiency ratio for Q1 2024 was 59.28%, higher than 55.56% in Q4 2023 and 54.02% in Q1 2023[43] Capital and Equity - Total stockholders' equity decreased by $4.2 million, or less than 1%, primarily due to a decrease in accumulated other comprehensive income[27] - Tangible common equity increased by $0.1 million, with a tangible common equity to tangible assets ratio of 7.52% as of March 31, 2024[28] - Total stockholders' equity of WSFS as of March 31, 2024, was $2,473,481 thousand, an increase from $2,306,362 thousand in Q1 2023[48] Credit Quality - Problem assets increased to $573.2 million as of March 31, 2024, up from $555.7 million at December 31, 2023, and $416.7 million at March 31, 2023[17] - Nonperforming assets decreased by $8.6 million to $67.2 million, representing 0.33% of total assets, down from 0.37% at December 31, 2023[18] - The allowance for credit losses increased to $192.64 million in Q1 2024 from $186.13 million in Q4 2023 and $169.17 million in Q1 2023[44] Shareholder Returns - WSFS repurchased 492,368 shares of common stock at an average price of $42.62 per share, totaling $21.0 million[7] - The Board of Directors approved a quarterly cash dividend of $0.15 per share, payable on May 24, 2024[29]