WSFS Reports 4th Quarter And Full Year 2010 Net Income

Commercial Loan Growth Continues at Strong Pace Nonperforming Assets Percentage Stable; Leading Credit Quality Indicators Continue to Improve

WILMINGTON, Del., Feb. 3, 2011 (GLOBE NEWSWIRE) -- WSFS Financial Corporation (Nasdaq:WSFS), the parent company of WSFS Bank, reported net income of $14.1 million or $1.46 per diluted common share for the full year of 2010, a significant improvement compared to breakeven net income or a loss per common share of $0.30 (after payment of preferred stock dividends) for 2009.

For the fourth quarter of 2010, WSFS reported net income of $2.1 million or $0.16 per diluted common share compared to net income of $8.2 million or $0.94 per diluted common share for the third quarter of 2010. The decline in the linked-quarter earnings is primarily due to two large gains included in the third quarter of 2010 earnings and two large charges included in the fourth quarter of 2010 earnings, discussed later in "Notable items." Both 2010 quarters were improved from the breakeven net income or a loss per common share of $0.09 (after payment of preferred stock dividends) for the fourth quarter of 2009.

Highlights:

• WSFS successfully completed the acquisition of Christiana Bank & Trust (CBT) on December 3, 2010, adding $106.2 million in loans, $173.8 million in customer deposits and more than $7 billion in assets under management or administration.
• Net interest margin increased to 3.63% in the fourth quarter, up two basis points from 3.61% in the third quarter 2010 and up 15 basis points from 3.48% in the fourth quarter 2009.
• Asset quality metrics showed continued stabilization as the ratio of nonperforming assets to total assets increased slightly to 2.35% at December 31, 2010 from 2.33% at September 30, 2010. Importantly, leading indicators continued to improve. Delinquencies as a percentage of total loans improved 21 basis points to 2.39% at December 31, 2010 from 2.60% at September 30, 2010. Further, Problem Loan levels also continued to decline, down 3% from September 30, 2010, 14% from December 31, 2009 levels and 20% from their peak in this cycle in the first quarter of 2010.
• WSFS announced a quarterly common dividend of $0.12 per share.

Notable items:

• As anticipated, during the fourth quarter of 2010, the Company recorded $1.4 million of pre-tax costs ($0.10 per diluted common share) related to the acquisition and integration of CBT. And, as it prepared for the integration, the Company sold all of its remaining downgraded sub-investment grade securities and recorded a $1.0 million net loss ($0.07 per diluted common share).  Net securities gains for the full year 2010 were $1.0 million or $0.08 per diluted common share.
• In comparison, the third quarter of 2010 included a large loss recovery of $4.5 million ($0.38 per diluted common share) and net securities gains of $1.8 million ($0.14 per diluted common share).
• WSFS recorded $9.9 million of provision for loan losses, its fifth consecutive quarterly reduction in the provision, a slight improvement from $10.0 million in the third quarter of 2010 and a favorable improvement from $12.7 million in the fourth quarter of 2009. 

CEO outlook and commentary:

Mark A. Turner, President and CEO, said, "I believe 2010 will be viewed as a pivotal year in WSFS' storied 179 year history.