This excerpt taken from the WSFS 8-K filed Oct 22, 2009.
CEO outlook and commentary:
Mark A. Turner, President and CEO said, “We have made fundamental progress at improving our core franchise and earnings power, and while our results have stabilized in the third quarter, we continue to be challenged by high credit costs.”
“As the recession continued, we felt it was appropriate to conduct a detailed review and analysis of our commercial loan portfolio. This included a review of every loan commitment greater than $1 million, regardless of risk rating, and represented 74% of our commercial portfolio. The review considered cash flows from the business or project, appropriately conservative real estate values and a careful view of guarantor support and the direction of the economy. The evaluation was aimed at updating loan ratings and revising estimates of real estate recovery values and contributed to the increased level of our loan loss provision this quarter.”
Mr. Turner continued, “We also continue to focus on building the appropriate level of capital to both allow us to take advantage of opportunities that we are seeing as a result of this economy and to provide support against the threat of continued economic deterioration. Our private placement of $25 million of common stock to Peninsula Investment Partners, L.P. this quarter provided WSFS these benefits and reintroduced Ted Weschler as a valuable addition to our Board.”
“Our results for the quarter also highlighted the strengthening of our organization during this recession. This recession has provided an opportunity to grow and strengthen customer relationships and we see the results in significantly increased core deposits, commercial loan growth, enhanced margin and increased fee income. This quarter we also took advantage of investment opportunities in the Agency MBS market to sell some shorter term securities at a gain-on-sale while re-deploying the proceeds back into the Agency MBS market at higher yields. We continue to improve our franchise and earnings prospects through other initiatives such as our CORE Program, which stands for Creative Opportunities for Revenues and Expenses, aimed at cutting nearly 6% of total Bank expenses to increase efficiency and help support continued franchise growth.”
This excerpt taken from the WSFS 8-K filed Jul 27, 2009.
CEO outlook and commentary:
Mark A. Turner, President and CEO said, “Through these difficult times, our robust deposit and loan growth, along with branch expansion have demonstrated that we continue to remain a strong, growing and well-capitalized bank.”
“However, we are disappointed to report a loss for the quarter. Our loss reflects the continued pressures of a weak and declining economy on our customers, particularly those affected by the residential construction industry. We continue to recognize weakness in residential real estate development as new home sales in our market continue at very low levels and appraised values deteriorate. To a lesser, but meaningful extent, we also are impacted by negative credit trends across our portfolios as our communities are impacted by this protracted recession.”
Mr. Turner continued, “We are very pleased to strengthen our capital through a strategic private placement of our common stock. While we are well-capitalized by all regulatory measures, this additional capital will support our continued pursuit of market share growth and other opportunities that present themselves in this environment. This capital will also further strengthen WSFS’ balance sheet and support our ability to pursue the repayment of the Treasury’s Capital Purchase Program (CPP) funds when the time is right. We believe the stock sale at this price to Peninsula, an organization that has conducted due diligence and knows our Company well, is a solid vote of confidence in WSFS. We also very much look forward to welcoming Mr. Weschler back to our Board. Mr. Weschler has served WSFS as a Director in the past, helping the Company build long-term shareholder value. All in all, the addition of this capital and Mr. Weschler as a significant investor and Board member further positions WSFS to thrive as we navigate through this economic cycle.”
This excerpt taken from the WSFS 8-K filed Apr 24, 2009.
CEO outlook and commentary:
Mark A. Turner, WSFS’ President and CEO said, “Our modestly profitable results for the first quarter reflect the continued economic deterioration facing Delaware and the U.S., but also represents a meaningful rebound from the loss we recorded in the fourth quarter of last year. Despite continued economic weakness, our significant growth in loans and deposits also indicates that WSFS is a strong bank that continues to be the bank of choice in the communities it serves during these difficult times.”
“Decline in our financial results compared to the year-earlier figures is the result of credit deterioration in residential real estate-based lending, predominantly in our residential construction and land development (CLD) portfolio. We continue to proactively confront this reality with an increase in our provision for loan losses and other write-downs recorded during the quarter. The cost of our efforts to address these challenges is also reflected in higher legal and workout expenses.”
Mr. Turner continued, “Most importantly, our local consumers and businesses have embraced us as their community bank during this difficult time. We have enjoyed tremendous growth in core deposits as well as strong commercial lending opportunities and have increased our loan portfolios with well-structured, appropriately-priced, good commercial relationships. We see this environment as an opportunity to strengthen our franchise and support our customers and communities through continued productive lending, deposit gathering, branch openings, and other services in 2009.”
This excerpt taken from the WSFS 8-K filed Feb 5, 2009.
CEO outlook and commentary:
Mark A. Turner, WSFS’ President and CEO said, “Our results for the fourth quarter reflect a deepening recession in the global and national economy and, more specifically, in the markets we serve. We proactively and appropriately confronted this reality with an increase in our provision for loan losses and other write-downs recorded during the quarter.”
Mr. Turner continued, “While we are not pleased to have taken a loss this quarter, we reported a profit for 2008, a very challenging year. Although we cannot predict the future, we are anticipating a profitable 2009. Given the economic outlook, our planning for the coming year balances appropriate adjustments and expense reductions with the continued pursuit of strategic growth, including branch openings and continued lending growth, in service to our customers and communities.”
This excerpt taken from the WSFS 8-K filed Oct 24, 2008.
CEO outlook and commentary:
Mark A. Turner, WSFS’ President and CEO said, “Key measures for our Company reflect the success we are having in growing our core banking business. Our quarterly results show positive operating leverage compared to last year’s normalized third quarter, meaning that our revenues grew faster than our operating expenses. Our positive operating leverage is a reflection of the success that we have had in growing our core banking franchise and builds on the positive results we are experiencing in many of our Company’s performance metrics, such as continued margin expansion.
“However, the weak economic environment continues to negatively affect our credit statistics. Nonperforming assets are up to 1.12% and net charge-offs are also up, reflecting
progress we are making in resolving problem credits. The impact of a weak economic environment resulted in a provision for loan losses well above the levels we reported last quarter and for the third quarter of last year.
“As I have discussed in previous quarters, our loan portfolio is well diversified as we manage within internal concentration limits developed a number of years ago. These limits govern the size of our loan portfolios, including construction and land development (CLD) loans. In fact, during the quarter our residential CLD loan portfolio decreased to just 6% of total loans.
“As a result of our prudent risk management, we have no exposure to trust preferred securities, Fannie Mae or Freddie Mac preferred stock, or asset backed securities collateralized by sub-prime mortgages. Our securities portfolio continues to perform well and is comprised predominantly of ‘plain vanilla’ AAA-rated short duration securities.
“The strength of our balance sheet and earnings allows us to take advantage of opportunities to continue to grow our franchise, such as the acquisition of Sun National Bank’s Delaware branches, which is expected to close later this month. This acquisition presents an opportunity for us to build our branch network and customer base, increase our earnings and improve our funding costs and liquidity – benefits that are particularly attractive in the current operating environment.”
This excerpt taken from the WSFS 8-K filed Jul 25, 2008.
CEO outlook and commentary:
Mark A. Turner, WSFS’ President and CEO said, “The weak credit environment continues to have an impact on our earnings and that of the industry in general. However, we recognize this market disruption as an opportunity for well capitalized companies with solid earnings to take advantage of growth opportunities. We have done just that.
“In prior quarters, I have discussed a number of decisions we have made in growing our business that have positioned us for the current economic environment. We continue to manage under and benefit from those decisions including maintaining a diversified commercial portfolio
with limits on high risk lending activities. As an example, residential development loans now represent less than 7% of our loan portfolio. Additionally, our underwriting standards have resulted in residential and consumer delinquencies that are lower than half the national average, and in some cases much lower. Our securities portfolio continues to perform well and is comprised predominantly of ‘plain vanilla’ AAA-rated, short duration securities. There are no sub-prime mortgages as collateral in our mortgage-backed portfolio and the collateral underlying these securities is performing well. We have no trust preferred pooled securities in our investment portfolio and our bank owned life insurance (BOLI) investment has not suffered from asset quality or insurance-wrap issues that have affected other banks.
“Earnings remain strong despite the current economic environment. We have grown our margin 20 basis points this quarter through active management of our balance sheet and disciplined product pricing. This growth has helped to increase pre-tax earnings from first quarter levels which is particularly gratifying since the first quarter included $2.0 million in Visa-related earnings. This has allowed us to continue to build our capital levels.
“As a result, we are in a strong position to take advantage of opportunities to grow our franchise. We recently opened new branch offices in Selbyville and Smyrna, continuing our string of branch office openings. In early May we announced the acquisition of a majority ownership in 1st Reverse Financial Services, LLC (1st Reverse). As with many new initiatives, we expect modest start-up losses, and 1st Reverse experienced a $0.02 per share loss this quarter, but believe the revenue and profit opportunities of providing this product line are great. We also
are using this economic environment as an opportunity to optimize our banking operations and customer service and retention platform.”
This excerpt taken from the WSFS 8-K filed Apr 25, 2008.
CEO Outlook and commentary:
Mark A. Turner, WSFS’ President and CEO said, “We continue to actively manage our Company through a challenging environment for banking companies. Our commercial loan growth and fee revenue growth continue to be strong and our margin improved on a linked-quarter basis overcoming a short-term negative impact from severe rate drops during the quarter. Additionally, credit statistics have improved as the result of success in resolving certain problem loans.”
“Last quarter, we highlighted a number of steps we have taken to diversify our portfolio and manage risk in areas that have negatively impacted our peers and national banking companies. We continue to benefit from these actions in a number of ways, including: a low level of subprime residential mortgage loans (less than 1% of our total loan portfolio); a low level of subprime delinquencies (3.51% of our subprime portfolio) that are less than one-fifth of the national average; and a low level of residential mortgage delinquencies (1.53% of our residential mortgage portfolio) that are less than half the national average.”
“We will continue to actively manage our credit position through constant focus on diversification and portfolio limits as well as prudent underwriting. Despite a relatively strong economy locally, we face a credit market that is suffering from an ongoing weakness in the housing sector as well as general economic softening. We expect our credit statistics, as well as those of our peers, to be influenced by economic factors facing the industry. Recognizing these are difficult times, WSFS again this quarter provided reserves in excess of our current charge-offs.”
“In addition, we manage risk in our securities portfolio through wide diversification and high credit standards. We also manage to a moderate duration and avoid volatile and highly-structured MBS securities. WSFS is currently carrying only $12.1 million of illiquid securities, which are not credit impaired and are well over collateralized.”
“We will continue to grow our market share and take advantage of opportunities available in this market while prudently managing credit risk and our capital.”
This excerpt taken from the WSFS 8-K filed Oct 29, 2007.
CEO outlook and commentary
Mr. Turner remarked, “The banking industry faces strong headwinds. We are not immune from these, but we believe we have anticipated and are actively responding to these challenges. Our response has included limiting construction and development loans well ahead of regulatory guidance, ensuring industry and geographic diversification of our loan portfolio, responding to margin pressure through balance sheet realignment and, most recently, identifying revenue enhancement and cost cutting opportunities. We will continue to cultivate these efforts.”
Mr. Turner continued, “Our business model is built on Engaged Associates creating Customer Advocates. In July we were again named one of the best places to work in Delaware in a survey conducted by the Wilmington News Journal; and customer surveys conducted by the Gallup Organization, rank us “world class” for customer advocacy putting us in the top 10% of the many companies they conduct surveys for. Our success in creating a local, focused, high-service business model has allowed us to continue to take market share from our competition. In the last two years we have improved from #5 to a solid, and climbing, #4 in local deposits based on FDIC-reported data. In commercial banking, we continue to solidify our #2 market share position based on an internal analysis of our market.”
Mr. Turner finished, “We continue to invest in the future of WSFS. This comes at a cost, as many of the investments are still in their early stages of maturity. As part our
investment, this quarter we kicked off a multi-year “
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