WSFS Financial (WSFS) in Wilmington, Del., realized some of the benefits of its M&A strategy last quarter.
The $4.5 billion-asset company reported a profit of $12.1 million in the fourth quarter, a 59.2% increase from the year-earlier quarter. That translated to earnings per share of $1.33, which beat the estimates of analysts polled by Bloomberg by eight cents.
It was the first full quarter of results for WSFS that included contributions from its mortgage banking company, Array Financial Group in Haverford, Pa. WSFS agreed to acquire Array and the affiliated Arrow Land Transfer in July.
WSFS also agreed in November to buy First Wyoming Financial in Wyoming, Del., for $64 million.
The results were "driven by fundamental growth in almost every aspect of our franchise, including improvement in net interest income and fee income, improvement in credit costs, careful expense management, as well as the benefits from prudent acquisitions of businesses and special assets," Chief Executive Mark Turner said in a press release Thursday.
Net loans at WSFS increased 7%, to $2.9 billion, year over year. All loan categories showed improvement.
Net interest income was $34.5 million, an increase of 9.5%. Net interest margin increased by 29 basis points to 3.68%, as the fourth quarter benefited from a consolidation of a reverse-mortgage trust late in the third quarter. The reverse mortgage loans had a positive net effect of $1.2 million (9 basis points) on net interest income in the fourth quarter of 2013.
Noninterest income in the fourth quarter of 2013 was $19.8 million, a 6.6% decrease from the same quarter a year prior. Noninterest expense was $34.6 million, a decrease of 7%.
Provision for loan losses was $1.3 million, a 64.9% from the same quarter a year prior. Net charge-offs for the quarter were $1.5 million.