WSFS Financial Corporation (NASDAQ:WSFS) Files An 8-K Regulation FD Disclosure

On June 22, 2017, the Acting United States Attorney for the District of Delaware announced that a WSFS customer, Dr. Zahid Aslam, was charged by a federal grand jury on June 15, 2017, in a three-count indictment with conspiracy to commit bank fraud and making false statements on loan applications to WSFS and another financial institution. Charges have also been filed against Tae Kim, a WSFS Associate from 2013 to 2016 who was the relationship manager for Dr. Aslam, with whom he is charged with conspiring. WSFS continues to cooperate fully with all investigative authorities.

WSFS conducted a thorough investigation into this matter, which included a complete review of all loans originated by Mr. Kim while he was employed at WSFS. To date, the investigation has determined that the loan fraud scheme was isolated to Mr. Kim’s dealings with Dr. Aslam and that the loans were used to finance Dr. Aslam’s purchase of existing and ongoing medical businesses, which currently appear to be viable operating businesses.

As of May 31, 2017, WSFS’ total exposure to the customer in question was $4.8 million, which includes a $1.7 million exposure to an alleged nominee borrower. At the end of Q1 2017 and currently, these loan relationships were performing and considered in quarter-end loan loss reserve evaluations.

Although WSFS cannot predict whether it will ultimately incur losses in connection with this matter, it plans to pursue all available remedies to protect the Company’s interests and currently does not expect that this matter will have a material adverse effect on the Company. WSFS has provided notice to its insurance carriers in the event a loss occurs.

About WSFS Financial Corporation (NASDAQ:WSFS)
WSFS Financial Corporation is a savings and loan holding company. The Company’s subsidiary is Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), which is the bank and trust company. It operates in three segments: WSFS Bank, Cash Connect and Wealth Management. The WSFS Bank segment provides loans and other financial products to commercial and retail customers. Its Cash Connect segment provides automated teller machine (ATM) services through strategic partnerships with several of the network, manufacturers and service providers in the ATM industry. The Wealth Management segment provides a range of fiduciary, investment management, credit and deposit products to clients. Its banking business is commercial lending funded by customer-generated deposits. It also offers a range of consumer loan products, retail securities and insurance brokerage services. Its subsidiaries include WSFS Wealth Investments, 1832 Holdings, Inc., Monarch and West Capital Management. WSFS Financial Corporation (NASDAQ:WSFS) Recent Trading Information
WSFS Financial Corporation (NASDAQ:WSFS) closed its last trading session up +0.95 at 44.75 with 92,463 shares trading hands.