NASDAQ$WSFS

WSFS Financial Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

WSFS reported solid operating performance reflecting diversified business model and strong capital and ACL levels.

WSFS Financial Corporation reported a strong third quarter in 2020, with an EPS of $1.01 and ROA of 1.49%. The company's diversified business model and strong capital position contributed to the positive results. Share repurchases are set to resume in Q4 2020.

  • Core ROA was 1.48% in 3Q 2020 compared to 1.66% for 3Q 2019.
  • Core EPS was $1.00 in 3Q 2020 compared to $0.98 for 3Q 2019.
  • Loans receiving short-term deferred payment modifications declined to less than 3% of the total loan portfolio.
  • WSFS maintained significant capital levels with a Bank Common Equity Tier 1 Ratio of 13.24%.

Headline financials

Total Revenue

$173M

Previous: $204M-15.3%
EPS (adj)

$1.00

Previous: $0.98+2.0%
Efficiency Ratio

57.6%

No prior period
Return on Average Assets

1.5%

No prior period
Return on Average Equity

11.1%

No prior period
Capital Expenditures

-$3.48M

Previous: -$10.7M+67.5%
Free Cash Flow

$47.7M

Previous: $43.2M+10.4%
Net Income

$51.1M

Previous: $53.9M-5.1%
Operating Income

$54.7M

Previous: $69.5M-21.2%
Gross Profit

$161M

Previous: $204M-20.8%
Cash & Equivalents

$1.07B

Previous: $580M+84.9%
Total Assets

$13.8B

Previous: $12.3B+12.7%
Stock-Based Comp

$660K

Previous: $759K-13.0%

Revenue & EPS history

WSFS · Revenue · Quarterly

$173M

Q3 2020-15.3%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

WSFS · $27.9M total across 2 segments · Q3 2020

  • Wealth and Trust
    $17.5M
  • Cash Connect
    $10.4M

Forward guidance

WSFS is expected to continue its growth trajectory, driven by strategic investments and a commitment to customer service. The resumption of share repurchases reflects confidence in the company's financial position and future prospects.

Tailwinds

  • The health, well-being, and safety of our Associates, Customers, and our communities remains our top priority.
  • All previously closed banking locations were reopened with appropriate precautions.
  • Significant investments are being made throughout the franchise to accelerate organic growth.
  • The Board approved a quarterly cash dividend of $0.12 per share of common stock.
  • The Board approved the resumption of share repurchases under the Board authorization approved in 1Q 2020.

Headwinds

  • The economic environment is still challenging.
  • The COVID-19 pandemic continues to pose risks.
  • There is uncertainty in the short- and long-term impacts of changes in trade, monetary and fiscal policies and stimulus programs, laws and regulations and other activities of governments, agencies, and similar organizations.
  • Adverse judgments or other resolution of pending and future legal proceedings, and cost incurred in defending such proceedings.
  • The Company's reliance on third parties for certain important functions, including the operation of its core systems, and any failures by such third parties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+3.2%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+17.2%

Q1 2020

Best reaction

-8.4%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+1.4%+2.2%
Q4 2025+6.5%+11.8%+14.6%
Q3 2025+0.2%+0.3%+5.4%
Q2 2025-1.5%-0.4%-0.1%
Q1 2025-0.9%-1.2%+1.2%
Q4 2024+1.3%+2.2%-2.4%
Q3 2024-3.1%-1.6%+19.4%
Q2 2024+1.3%+1.0%-1.4%
Q1 2024-4.9%-5.2%-2.5%
Q4 2023+1.7%+3.3%-8.4%
Q3 2023+0.3%-1.1%+13.1%
Q2 2023-0.2%+4.9%-4.7%
Q1 2023-8.4%-6.2%-9.1%
Q4 2022+1.7%+2.6%+4.7%
Q3 2022-5.5%-5.2%-2.6%
Q2 2022+5.0%+13.3%+17.7%
Q1 2022-3.5%-5.1%-8.7%
Q4 2021+3.4%+0.1%-1.3%
Q3 2021+0.1%-3.8%-3.0%
Q2 2021-3.0%-2.8%+0.2%
Q1 2021+2.2%+4.7%+9.0%
Q4 2020-2.4%-7.7%+16.5%
Q3 2020+5.4%+0.8%+27.4%
Q2 2020+2.0%+3.7%+6.4%
Q1 2020+17.2%+18.4%+30.5%
Q4 2019-4.0%-3.7%-4.9%
Q3 2019+2.8%-1.3%-0.6%
Q2 2019+2.0%+5.4%+6.7%
Q1 2019+0.3%+0.2%-5.9%
Q4 2018+3.7%+2.5%+5.6%
Q3 2018-2.2%-4.5%-6.2%
Q2 2018+3.6%+3.6%-7.4%
Q1 2018+4.2%+3.0%+6.6%
Q4 2017-0.8%+1.7%-3.0%
Q3 2017-2.7%+1.1%-3.6%
Q2 2017-1.5%-2.5%-3.8%
Q1 2017-5.7%-5.8%-12.5%
Q4 2016-2.1%-1.7%+1.1%
Q3 2016-5.2%-1.4%+19.7%
Q2 2016+1.8%-0.4%+10.1%
Q1 2016-1.2%
Q4 2015+1.6%
Q3 2015+1.2%
Q2 2015-1.2%
Q1 2015-0.5%
Q4 2014-2.3%
Q3 2014+1.9%
Q2 2014+0.3%
Q1 2014-2.5%
Q4 2013+2.7%
Q3 2013+7.7%
Q2 2013-3.2%
Q1 2013-0.9%
Q4 2012+3.0%
Q3 2012-0.6%
Q2 2012-0.1%
Q4 2011-0.1%
Q1 2011-2.3%
Q1 2012+0.0%
Q4 2009+2.5%
Q3 2010-2.3%
Q3 2011-2.3%
Q2 2011-5.2%
Q4 2010-5.2%
Q2 2010-5.2%
Q1 2010+8.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro