WSFS Financial Corp (WSFS) Reports Solid 3Q 2023 Earnings with EPS of $1.22 and ROA of 1.45%
WSFS Financial Corp (NASDAQ:WSFS) reports 3Q 2023 EPS of $1.22 and ROA of 1.45%.
Net interest income for the quarter was $182.6 million, slightly up from $181.8 million in 2Q 2023.
Net income attributable to WSFS was $74.2 million, up from $68.7 million in 2Q 2023.
WSFS reported solid loan growth of 3%, a NIM of 4.08%, and a fee revenue increase of 9%.
WSFS Financial Corp (NASDAQ:WSFS) released its earnings report for the third quarter of 2023 on October 23, 2023. The company reported a net interest income of $182.6 million, a slight increase from $181.8 million in the second quarter of 2023. The net income attributable to WSFS was $74.2 million, up from $68.7 million in the previous quarter. The company's earnings per share (EPS) for the quarter was $1.22, up from $1.12 in the second quarter of 2023.
Financial Highlights
The company's return on average assets (ROA) for the quarter was 1.45%, up from 1.36% in the second quarter of 2023. The return on average equity (ROE) was 12.6%, up from 11.8% in the previous quarter. The company's fee revenue as a percentage of total net revenue was 28.4%, up from 26.8% in the second quarter of 2023.
CEO Commentary
WSFS's Chairman, President, and CEO, Rodger Levenson, commented on the company's performance, stating,
Our 3Q operating results reflect the continued optimization of the significant franchise investment over the past several years. Revenue growth was highlighted by solid quarterly loan growth of 3%, a NIM of 4.08%, and strong performance across our major fee businesses."
Financial Performance Analysis
WSFS's strong performance in the third quarter of 2023 can be attributed to its solid loan growth, increased net interest income, and increased fee revenue. The company's strong liquidity and capital levels also contributed to its robust performance. The company's net loan growth of 3% was driven by growth across the commercial portfolio and its consumer partnership with Spring EQ. The company's net interest margin of 4.08% reflects increasing deposit betas, partially offset by higher loan yields.
Future Outlook
Despite the strong performance, the company anticipates continued uncertainty in the near-term outlook due to the resiliency of the Greater Philadelphia and Delaware regional economy. However, the company's balance sheet remains strong with an ACL coverage of 1.28%, significant liquidity capacity, and all regulatory capital ratios above well-capitalized levels.
Other Noteworthy Achievements
During the quarter, WSFS announced the expansion of its Wealth Management business in southern Delaware and the establishment of a new presence in Boca Raton, Florida. The company was also voted reader's pick as the Best Bank For Customer Service in 2023 in South Jersey Biz Magazine.
This article first appeared on GuruFocus.
