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WSFS
🇺🇸 NASDAQ:WSFS
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•
Jun 30, 2020

WSFS Q2 2020 Earnings Report

WSFS reported a net loss due to COVID-19 impacts and a provision for credit losses, but was offset by a gain on Visa Class B sale and PPP loans.

Key Takeaways

WSFS Financial Corporation announced a net loss of $7.1 million for the second quarter of 2020, primarily due to a $94.8 million provision for credit losses driven by the COVID-19 pandemic. This was partially offset by a $22.1 million gain on the sale of Visa Class B shares and the impact of nearly $1 billion in Paycheck Protection Program (PPP) loans.

Net loss of $7.1 million, impacted by $94.8 million provision for credit losses due to COVID-19.

Recorded a $22.1 million gain on the sale of Visa Class B shares.

Provided nearly $1.0 billion in PPP loans, supporting an estimated 100,000 jobs.

Maintained a strong capital position with a Common Equity Tier 1 Ratio of 12.68%.

Total Revenue
$109M
Previous year: $123M
-11.6%
EPS
-$0.46
Previous year: $0.88
-152.3%
Net Interest Margin
3.93%
Efficiency Ratio
52.4%
Gross Profit
$178M
Previous year: $166M
+7.2%
Cash and Equivalents
$583M
Previous year: $522M
+11.8%
Free Cash Flow
$17.7M
Previous year: $67.9M
-73.9%
Total Assets
$13.6B
Previous year: $12.2B
+11.7%

WSFS

WSFS

WSFS Revenue by Segment

Forward Guidance

The company's immediate focus remains on the health, wellbeing, and safety of its Associates, Customers, and communities, while navigating the uncertain economic environment caused by COVID-19. WSFS is encouraged by signs of improvement in the region’s economy during the early stages of a potentially prolonged and uneven recovery period.

Positive Outlook

  • Focus on health, wellbeing, and safety of Associates, Customers, and communities.
  • Continue to serve Customers through drive-thru locations.
  • Carefully planned and phased approach to opening previously closed office and banking locations.
  • Aligns with Federal and State guidance and is informed by direction from the CDC, State Departments of Health and other governing bodies.
  • Encouraged by signs of improvement in the region’s economy during the early stages of a potentially prolonged and uneven recovery period.

Challenges Ahead

  • Challenging operating environment related to COVID-19.
  • Increased credit reserves amidst the uncertain economic environment.
  • Recorded $94.8 million of provision for credit losses in the quarter.
  • Temporary suspension of all share repurchases until a clearer long-term view of the impact of COVID-19 on the economy and our performance.
  • The economy continues to gradually reopen.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View WSFS