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Financial report summary
?Risks
- Difficult market conditions and unfavorable economic trends could adversely affect our industry and our business.
- Changes in interest rates and other factors beyond our control could have an adverse impact on our earnings.
- The market value of our investment securities portfolio may be impacted by the level of interest rates and the credit quality and strength of the underlying collateral.
- Changes in or questions about the soundness of other financial institutions could adversely affect us.
- The financial services industry and our market area are highly competitive.
- Significant increases of nonperforming assets, or greater than anticipated costs to resolve these credits, can have an adverse effect on our earnings.
- Our loan portfolio includes a substantial amount of commercial mortgage, commercial and industrial, and construction and land development loans. The credit risk related to these types of loans is greater than the risk related to residential loans.
- We are exposed to increased credit losses and credit related expenses in the event of a major natural disaster, public health crisis, other catastrophic event or significant climate change effects.
- Concentration of loans in our primary markets may increase our risk.
- If our allowance for credit losses is not sufficient to cover actual loan and lease losses, our earnings will decrease.
- Our inability to grow deposits in the future could adversely affect our liquidity and ability to grow our business.
- We could experience an unexpected inability to obtain needed liquidity.
- Restrictions on our subsidiaries’ ability to pay dividends to us could negatively affect our liquidity and ability to pay dividends.
- We are subject to extensive regulation which could have an adverse effect on our operations.
- We face a risk of noncompliance and enforcement action under the Bank Secrecy Act and other anti-money laundering statutes and regulations.
- We are subject to numerous laws designed to protect consumers and promote community investment, including fair lending laws and the Community Reinvestment Act. Failure to comply with these laws or perform satisfactorily could lead to a wide variety of sanctions.
- The fiscal, monetary and regulatory policies of the federal government and its agencies could have an adverse effect on our results of operations.
- If we fail to comply with legal standards, we could incur liability to our clients or lose clients, which could negatively affect our earnings.
- The CFPB has reshaped consumer financial regulations through rulemaking and enforcement of prohibitions against unfair, deceptive or abusive business acts or practices. Compliance with any such change may impact the manner in which WSFS and WSFS Bank offer consumer financial products or services, and our results of operations.
- Our technology-related operational processes and procedures may not be effective in accomplishing their intended purposes.
- System failure or cybersecurity breaches of our network security could subject us to increased operating costs as well as litigation and other potential losses.
- We rely on third parties for certain important functions. Any failures by those vendors and service providers could disrupt our business operations or expose us to loss of confidential information or intellectual property.
- Our business may be adversely impacted by litigation and regulatory enforcement, which could expose us to significant liabilities and/or damage our reputation.
- Errors, breakdowns in controls or other mistakes in the provision of services to clients or in carrying out transactions for our own account can subject us to liability, result in losses or negatively affect our earnings in other ways.
- Our business strategy includes significant investment in growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth and investment in infrastructure effectively.
- We have in the past and may in the future pursue acquisitions, which may disrupt our business and adversely affect our results of operations, and we may fail to realize all of the anticipated benefits of any such acquisition.
- Key associates may be difficult to attract and retain.
- Damage to our reputation could significantly harm our businesses.
- The quantitative models we use to manage certain accounting and risk management functions may not be effective, which may cause adverse effects on our results of operations and financial condition.
- Impairment of goodwill and/or intangible assets could require charges to earnings, which could negatively impact our results of operations.
- Changes in accounting standards or changes in how the accounting standards are interpreted or applied could adversely impact the Company’s financial statements.
- Changes in the value of our deferred tax assets could adversely affect our results of operations and regulatory capital ratios.
Management Discussion
- For a discussion of our results for the year ended December 31, 2022 compared to the year ended December 31, 2021, please see "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 28, 2023.
- We recorded net income attributable to WSFS of $269.2 million, or $4.40 per diluted common share, for the year ended December 31, 2023, a increase of $46.8 million compared to $222.4 million, or $3.49 per diluted common share, for the year ended December 31, 2022.
- •Net interest income for the year ended December 31, 2023 was $725.1 million, an increase of $62.2 million compared to 2022, primarily due to the the benefits of our asset-sensitive balance sheet and an increase from the balance sheet size and mix. The increase was partially offset by lower purchase accounting accretion. See “Net Interest Income” for further information.