WSFS Financial (WSFS) of Wilmington, Del., has lowered its previously reported first-quarter earnings after the implementation of a new risk-rating system led it set aside more funds for loan losses.
The $4.3 billion-asset company said after markets closed Thursday that it had increased its first-quarter loan-loss provision by $1.6 million, to $8.3 million. The net result, after other adjustments, was that it earned $6.4 million, not $7.2 million as it reported late last month.
The company’s earnings per share for the first quarter were revised to 66 cents per share, down from 74 cents per share.
WSFS also said that it was looking to sell roughly $52 million in unpaid principle balances of problem and nonperforming loans in bulk sales. The loans were reclassified as loans held for sale and would result in a charge to earnings in the second quarter.
Additionally in the second quarter, WSFS anticipates selling roughly $300 million in mortgage-backed securities and using the proceeds to purchase securities with a shorter duration.