WSFS Financial (WSFS) - 2024 Q2 - Quarterly Results

Financial Performance - Core ROA for Q2 2024 was 1.25% and core EPS was $1.08, reflecting a solid performance driven by fee revenue growth of 13%[4] - Total net revenue for Q2 2024 was $266.0 million, up from $251.1 million in Q1 2024, driven by a 20.7% increase in fee revenue[22] - GAAP net income attributable to WSFS for 2Q 2024 was $69.3 million, compared to $65.8 million in Q1 2024 and $68.7 million in Q2 2023[96] - Adjusted net income (non-GAAP) attributable to WSFS was $133.964 million for the latest quarter, compared to $132.097 million in the previous quarter, reflecting a slight increase[111] - Core earnings per share (non-GAAP) decreased to $1.08 from $1.11 in the previous quarter[114] Loan and Deposit Growth - Gross loan growth was 1% (6% annualized) from Q1 2024, primarily due to increases in commercial and industrial (C&I) and consumer portfolios[8] - Customer deposits increased by $30.6 million from June 30, 2023, primarily due to transactional accounts[14] - The gross loan and lease portfolio increased by $189.2 million, or 1% (6% annualized), compared to Q1 2024[32] - The loan-to-deposit ratio was 80% at June 30, 2024, indicating continued capacity for future loan growth[63] - Total customer deposits reached $16.291 billion, a slight increase from $16.187 billion in the previous quarter[124] Noninterest Income and Expenses - Core fee revenue increased by $18.6 million, or 28%, compared to Q2 2023, driven by strong performance in various business segments[42] - Noninterest income for 2Q 2024 was $91.6 million, up from $75.9 million in Q1 2024 and $66.9 million in Q2 2023[95] - Core noninterest expense increased by $17.5 million, or 13%, compared to Q2 2023, primarily due to higher salaries and benefits[45] - Total noninterest expense for the three months ended June 30, 2024, was $155.8 million, compared to $149.1 million in the previous quarter[103] Asset Quality - Problem loans increased to 4.76% of total gross loans, while net charge-offs remained consistent at 44 basis points[25] - The allowance for credit losses (ACL) was $198.3 million as of June 30, 2024, an increase of $5.6 million from Q1 2024[40] - Nonperforming assets decreased by $1.8 million, or 1 basis point of total assets, compared to Q1 2024, while net charge-offs increased to $14.2 million, or 0.44% of average gross loans[68] - The ratio of nonperforming assets to total assets improved to 0.32% from 0.16% a year earlier, indicating enhanced asset quality[105] Capital and Shareholder Returns - WSFS repurchased 897,461 shares of common stock at an average price of $44.20 per share, totaling $39.7 million[30] - Total capital returned to stockholders through share repurchases and dividends was $78.7 million for the year[50] - The common equity to assets ratio was 12.00% and tangible common equity to tangible assets ratio was 7.56% as of June 30, 2024[49] - Book value per share increased to $42.01, up $0.84 or 2% from March 31, 2024, while tangible book value per share rose to $25.20, an increase of $0.68 or 3%[78] - The market price of common stock closed at $47.00 on June 30, 2024, compared to $37.72 a year earlier, marking a 24.06% increase[108] Operational Metrics - The efficiency ratio improved to 58.46% in Q2 2024 from 59.28% in Q1 2024[60] - The core efficiency ratio was 59.8% in Q2 2024, compared to 58.6% in Q1 2024 and 55.5% in Q2 2023[74] - Total assets reached $20,786,328, reflecting a stable growth compared to previous quarters[1] - Total assets (GAAP) increased to $20.74 billion as of June 30, 2024, from $20.58 billion at the end of 1Q 2024[95] - The company maintained 114 offices, consistent with the previous year, indicating stability in its operational footprint[108] Tax and Regulatory Compliance - The effective tax rate decreased to 23.5% in 2Q 2024 from 24.4% in 1Q 2024 and 25.1% in 2Q 2023, primarily due to solar tax credit investments[75] - As of June 30, 2024, the Tier 1 leverage ratio was 10.44%, Common Equity Tier 1 capital ratio was 13.07%, and Total Risk-based capital ratio was 14.32%, all exceeding regulatory benchmarks[77] - The common equity Tier 1 capital ratio was reported at 13.07%, down from 13.68% in June 2023, but still above the well-capitalized threshold[105]