WSFS Financial Corporation (NASDAQ:WSFS) Files An 8-K Results of Operations and Financial ConditionItem 2.02Results of Operation and Financial Condition and Item 2.02 Regulation FD Disclosures
On February 27, 2018, the Registrant (WSFS or the Company) announced that it had entered into a settlement agreement with Universitas Education, LLC (Universitas), to resolve claims related to services provided by Christiana Bank & Trust Company (Christiana Trust) prior to WSFS’ acquisition of Christiana Trust in December 2010. WSFS previously disclosed this matter in its quarterly filings on Form 10-Q in 2017. Under the settlement agreement, WSFS will pay Universitas $12.0 million to fully settle the claims.
As a result of this settlement, WSFS made revisions to its results of operations and other financial information that were reported in the Company’s earnings release issued on January 22, 2018. The revisions reflect the impact of the $12.0 million legal settlement. Previously reported earnings did not include a legal reserve for these claims based on management’s assessment that its valid factual and legal defenses to the claims made it unlikely that a loss would be incurred at that time.
Accordingly, the Company's earnings release is revised to reflect:
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Earnings of $50.2 million ($1.56 per diluted share) for 2017 and a loss of $9.8 million ($0.31 per share) for the fourth quarter of 2017. These earnings are $12.0 million lower ($9.3 million or $0.28 per diluted share after-tax for the full year 2017) as a result of higher legal costs related to the settlement agreement. |
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For 4Q 2017, return on assets (ROA) was (0.56)%, return on average tangible common equity (ROTCE) was (6.60)% and the efficiency ratio was 74.9%. For the full-year 2017, ROA was 0.74%, ROTCE was 9.74% and the efficiency ratio was 64.9%. |
Core(1) earnings per share of $0.71 for 4Q17, as well as core ROA of 1.31%, core ROTCE of 16.46% and core efficiency ratio of 57.0% were all unchanged.
Additionally, we have revised our fourth quarter and full-year 2017 investor presentation materials.
A copy of the press release announcing the settlement , the revised results of operations and other financial information and revised investor presentation materials are furnished with this Form 8-K as exhibits.
Item 2.02 Financial Statements and Exhibits
(d) Exhibits:
(1) As used in this Form 8-K, core earnings per share (EPS), core return on assets (ROA), core return on tangible common equity (ROTCE) and core efficiency ratio are non-GAAP financial measures. For a reconciliation of these measures to their comparable GAAP measures, see Exhibit 99.2 under Item 2.02 of this Form 8-K.
WSFS FINANCIAL CORP ExhibitEX-99.1 2 pressreleasefor8kexhibit.htm EXHIBIT 99.1 pressreleasefor8kexhibit WSFS Bank Center
500 Delaware Avenue,…To view the full exhibit click here
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.
