Monday, WSFS Financial Corp. (WSFS) reported a loss for the second quarter, compared to a profit last year, reflecting higher loan-loss provisions as well as certain non-routine charges.
The Wilmington, Delaware-based company's net loss attributable to shareholders for the second quarter was $3.07 million or $0.50 per share, compared to net income of $6.70 million or $1.07 per share in the previous year.
Results include $5.7 million of non-routine items comprising mainly of $1.6 million charge related to the decision to conduct an orderly wind-down of the company's reverse mortgage subsidiary 1st Reverse Financial Services, LLC, $1.6 million additional FDIC insurance premium, and $1.3 million related to fraudulent wire transfer activity affecting the accounts of two of the company's customers.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share. Analysts'
estimates typically exclude special items.
Net interest income increased to $26.38 million from $22.37 million. Provision for loan losses increased to $12.00 million
from $2.43 million.
Total non-interest income for the quarter increased to $12.67 million from $11.67 million a year ago. Total non-interest
expense rose to $30.95 million from $21.17 million.
Total net loans were $2.5 billion at June 30, 2009, an increase of 10% over June 30, 2008. Total customer deposits were $2.0 billion at June 30, 2009, up 33% over balances at June 30, 2008.
For the six-month period, net loss attributable to shareholders was $0.64 million or $0.10 loss per share, compared to net income of 13.95 million or $2.22 per share in the same period of the previous year.
Net interest income for the period increased to $50.27 million from $43.34 million last year.
The company also said that it has entered into a stock purchase agreement to sell 862,069 shares of common stock and to issue a warrant to purchase 129,310 shares to Peninsula Investment Partners, L.P. for $25 million in cash. After the sale, Peninsula will own 1,472,069 shares or 20.87% of WSFS' outstanding common stock.
WSFS is currently trading at $27.45, 1.07% on the Nasdaq.
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