WSFS Financial (WSFS)

RESULTS OF OPERATIONS

WSFS Financial Corporation recorded net income of $16.1 million or $2.57 per diluted share for the year ended December 31, 2008, compared to $29.6 million or $4.55 per share and $30.4 million or $4.41 per share in 2007 and 2006, respectively.

RESULTS OF OPERATIONS

WSFS Financial Corporation recorded net income of $16.1 million or $2.57 per diluted share for the year ended December 31, 2008, compared to $29.6 million or $4.55 per share and $30.4 million or $4.41 per share in 2007 and 2006, respectively.

RESULTS OF OPERATIONS

WSFS Financial Corporation recorded net income of $16.1 million or $2.57 per diluted share for the year ended December 31, 2008, compared to $29.6 million or $4.55 per share and $30.4 million or $4.41 per share in 2007 and 2006, respectively.

RESULTS OF OPERATIONS

WSFS Financial Corporation recorded net income of $16.1 million or $2.57 per diluted share for the year ended December 31, 2008, compared to $29.6 million or $4.55 per share and $30.4 million or $4.41 per share in 2007 and 2006, respectively.

Results of Operations

We recorded net income of $5.5 million ($8.5 million pre-tax) or $.88 per diluted share for the third quarter of 2008. This compares to $7.1 million ($10.6 million pre-tax) or $1.11 per diluted share for the same quarter last year. Earnings for the third quarter of 2008 were impacted by an increase in the provision for loan losses to $3.5 million compared to $1.0 million in the third quarter of 2007. This increase was the result of several factors, including deteriorating economic conditions particularly in the residential real estate market and other circumstances affecting the credit strength of our borrowers. In addition, noninterest expenses increased $1.7 million mainly due to our continued growth efforts (discussed further in the noninterest expense section). Net interest income for the third quarter of 2008 was $23.3 million, a $3.2 million increase, compared to $20.1 million for the third quarter of 2007.

Net income of $19.5 million ($29.1 million pre-tax) or $3.09 per diluted share was recorded for the first nine months of 2008. This compares to $22.2 million ($34.1 million pre-tax) or $3.38 per diluted share for the same nine months in 2007. Consistent with the quarterly results, earnings for the first nine months of 2008 were impacted by a $8.3 million provision for loan losses, an increase of $5.7 million over the first nine months of 2007. Consistent with the quarterly results, this increase was the result of several factors, including deteriorating economic conditions particularly in the residential real estate market and other circumstances affecting the credit strength of our borrowers. In addition, noninterest expenses increased $5.4 million over the first nine months of 2007 mainly due to our continued growth efforts (discussed further in the noninterest expense section). Net interest income for the first nine months of 2008 improved by $5.3 million in comparison to the first nine months of 2007.

The reported net income includes a $245,000 non-cash charge ($151,000 after-tax) resulting from our portion of a Visa litigation settlement, which was disclosed by Visa after our earnings release announcement, and was subsequently recorded in the third quarter.

Results of Operations

We recorded net income of $6.7 million ($10.4 million pre-tax) or $1.07 per diluted share for the second quarter of 2008. This compares to $7.2 million ($11.5 million pre-tax) or $1.11 per diluted share for the same quarter last year. Earnings for the second quarter for 2008 were impacted by an increase in the provision for loan losses to $2.4 million compared to the $1.3 million in the second quarter of 2007. This increase was due to continued loan growth and the effect of current economic conditions on the loan portfolio as well as specific reserves on certain impaired loans. In addition, noninterest expenses increased $2.1 million mainly due to our continued growth efforts (discussed further in the noninterest expense section).  Net interest income for the second quarter of 2008 improved by $2.2 million in comparison to the second quarter of 2007.

Net income of $13.9 million ($20.6 million pre-tax) or $2.22 per diluted share was recorded for the first six months of 2008. This compares to $15.0 million ($23.5 million pre-tax) or $2.26 per diluted share for the same six months in 2007. Consistent with the quarterly results, earnings for the first six months of 2008 were impacted by a $4.8 million provision for loan losses, an increase of $3.2 million over the first six months of 2007.  In addition, noninterest expenses increased $3.7 million over the first six months of 2007 mainly due to our continued growth efforts (discussed further in the noninterest expense section).  Net interest income for the first six months of 2008 improved by $2.1 million in comparison to the first six months of 2007.  Noninterest income increased $1.8 million, mainly due to the gain on the sale of shares related to the completion of Visa's initial public offering (IPO).

Results of Operations

We recorded net income of $7.2 million or $1.15 per diluted share for the first quarter of 2008. This compares to $7.8 million or $1.15 per diluted share for the same quarter last year. Results for the first quarter of 2008 were impacted by a $1.4 million gain on the sale of shares related to the completion of Visa’s initial public offering (“IPO”). Related to this IPO we reversed a $562,000 indemnification charge. We recognized a total benefit of $0.20 per share as a result of these related events. This increase was partially offset by a $303,000 charge related to the mark-to-market adjustment of trading securities, as a result of widening spreads for mortgage securities. Also affecting results for the first quarter of 2008 was a $2.4 million increase in the loan loss reserve due to a generally deteriorating credit environment.

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