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WSFS
🇺🇸 NASDAQ:WSFS
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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.

Total Revenue
$116M
Previous year: $83.3M
+39.4%
EPS
$0.23
Previous year: $0.91
-74.7%
Net Interest Margin
4.38%
Efficiency Ratio
56.3%
Previous year: 78.2%
-28.0%
Gross Profit
$157M
Previous year: $124M
+26.2%
Cash and Equivalents
$505M
Previous year: $648M
-22.0%
Free Cash Flow
$59.9M
Previous year: $18.8M
+218.2%
Total Assets
$12.3B
Previous year: $12.2B
+0.8%

WSFS

WSFS

WSFS 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.
  • The COVID-19 pandemic has resulted in deterioration in expected macroeconomic drivers in CECL modeling.
  • There is uncertainty regarding the full impact of COVID-19 on the economy and WSFS's performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View WSFS