WSFS Financial (US:WSFS)2023-05-05 18:24Financial Position - As of March 31, 2023, WSFS Financial Corporation had total assets of $20.3 billion and assets under management (AUM) and assets under administration (AUA) of $65.6 billion[191][195]. - Total assets increased by $404.5 million from December 31, 2022, while total liabilities rose by $303.1 million[198]. - Stockholders' equity increased by $101.2 million, primarily due to $62.4 million in earnings[198]. - Book value per share of common stock was $37.57, an increase of $1.78 from $35.79 at December 31, 2022[200]. - Stockholders' equity increased to $2,306,362 thousand as of March 31, 2023, from $2,205,113 thousand as of December 31, 2022[235]. - Tangible common equity increased to $1,298,112 thousand as of March 31, 2023, compared to $1,192,881 thousand as of December 31, 2022[235]. Loan and Lease Portfolio - The total loan and lease portfolio amounted to $12.1 billion, with a commercial loan and lease portfolio of $9.5 billion[193]. - The total loans and leases increased to $12.04 billion in Q1 2023 from $11.42 billion in Q1 2022, with significant growth in commercial loans and consumer loans[222]. - The company had total commitments to extend credit of $3.8 billion as of March 31, 2023[209]. Income and Expenses - Net income for the three months ended March 31, 2023, was $62.4 million, a significant increase from $3.8 million for the same period in 2022[219]. - Net interest income increased by $44.0 million, driven by the balance sheet size and mix along with the rising interest rate environment[221]. - Noninterest income increased by $2.6 million, attributed to higher Cash Connect income, despite declines in mortgage banking fees and other income sources[221]. - Noninterest expense decreased by $41.4 million, primarily due to higher corporate development and restructuring costs from the combination with Bryn Mawr Bank Corporation in 2022[221]. - Noninterest expense for the three months ended March 31, 2023, was $133.0 million, a decrease of $41.4 million (23.7%) from $174.5 million for the same period in 2022[229]. - Income tax expense increased to $20.9 million for the three months ended March 31, 2023, compared to $1.7 million for the same period in 2022[230]. - The effective tax rate decreased to 25.0% for the three months ended March 31, 2023, from 30.5% for the same period in 2022[231]. Credit Quality - The allowance for credit losses (ACL) on loans and leases increased by $17.3 million due to economic forecast impacts and net loan originations[197]. - Total nonperforming assets decreased by $10.2 million from December 31, 2022, to March 31, 2023, with a ratio of nonperforming assets to total assets at 0.16%[212]. - The ratio of allowance for credit losses to total loans and leases was 1.28% as of March 31, 2023, compared to 1.17% at December 31, 2022[212]. - The provision for credit losses rose by $10.0 million due to economic uncertainty and net loan growth[221]. - The provision for credit losses was $29.0 million for Q1 2023, up from $19.0 million in Q1 2022, reflecting economic uncertainty and net loan growth[225]. - The allowance for credit losses rose to $169.2 million as of March 31, 2023, from $151.9 million at December 31, 2022, with a ratio of allowance to total loans and leases at 1.28%[226]. - The company recorded net charge-offs of $11.7 million for Q1 2023, with a net charge-off ratio of 0.40%[227]. Interest Rates and Margins - The net interest margin improved to 4.25% in Q1 2023, a 124 basis point increase from 3.01% in Q1 2022, driven by a favorable increase of 102 basis points from the asset-sensitive balance sheet[223]. - The interest rate spread widened to 3.71% in Q1 2023 from 2.93% in Q1 2022, reflecting the rising interest rate environment[223]. - Interest-sensitive assets exceeded interest-bearing liabilities maturing or repricing within one year by $679.1 million as of March 31, 2023[216]. Cash Management - The Cash Connect business managed approximately $1.7 billion in total cash and serviced about 26,100 non-bank ATMs nationwide[193]. - As of March 31, 2023, the company had a readily available, secured borrowing capacity of $4.2 billion from the FHLB, $1.3 billion through the Federal Reserve Discount Window, and $0.2 billion through the Bank Term Funding Program[207]. Regulatory and Compliance - Estimated uninsured deposits were $5.8 billion, or 36% of total customer deposits, as of March 31, 2023[206]. - The company is evaluating the impact of the new small business lending data collection rule finalized by the CFPB on March 30, 2023[240]. - The transition from LIBOR is expected to span several reporting periods through June 2023, with efforts led by a cross-functional team[244]. - The company is actively migrating its existing LIBOR indexed loan portfolio away from the LIBOR index, primarily to Term SOFR[244]. - The company had approximately $2.5 billion of loans and $2.0 billion of derivatives indexed to LIBOR as of March 31, 2023[243].