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Mar 31, 2020
WSFS Q1 2020 Earnings Report
WSFS reported EPS of $0.21, with results impacted by COVID-19 and CECL adoption, and WSFS Community Foundation received a $3.0 million grant from WSFS Bank.
Key Takeaways
WSFS Financial Corporation's first quarter 2020 results were significantly impacted by the economic effects of the global COVID-19 pandemic and the adoption of the Current Expected Credit Loss (CECL) method of accounting, resulting in additional provision for credit losses. However, the company's core pre-provision net revenue (PPNR) remained strong, and it maintains significant excess capital levels and liquidity capacity.
WSFS's first quarter 2020 results were significantly impacted by the economic effects of the global COVID-19 pandemic.
WSFS adopted the CECL method of accounting, resulting in additional provision for credit losses of $56.6 million.
Core pre-provision net revenue (PPNR) was $71.5 million during the quarter.
WSFS temporarily suspended all share repurchases due to the uncertain impact of COVID-19.
Revenue by Segment
Forward Guidance
While no specific forward guidance was provided, the report indicates that WSFS has temporarily suspended all share repurchases until there is a clearer view of the impact of COVID-19 on the economy and the company's performance.
Positive Outlook
- WSFS continues to maintain significant excess capital levels.
- WSFS continues to maintain significant liquidity capacity.
- WSFS is focused on the health, wellbeing, and safety of its Associates, Customers, and communities.
- WSFS is supporting Customers through several relief programs including participation in the CARES Act and PPP.
- WSFS is open for business, serving Customers and hiring new Associates.
Challenges Ahead
- WSFS results were significantly impacted by the economic effects of the global COVID-19 pandemic.
- WSFS results were impacted by the adoption of the Current Expected Credit Loss (CECL) method of accounting.
- WSFS has temporarily suspended all share repurchases.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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