WSFS FINANCIAL CORPORATION
838 Market Street, Wilmington, DE 19899
For Release: November 7, 2002 Contact: Mark A. Turner
(302) 571-7160
WSFS ANNOUNCES AGREEMENT TO SELL WILMINGTON FINANCE, INC. AND
AN INCREASE IN SHARE REPURCHASE AUTHORIZATION
WSFS Financial Corporation (NASDAQ/NMS: WSFS), the parent company of
Wilmington Savings Fund Society, FSB (WSFS), announces that a definitive
agreement has been signed with American General Finance, Inc. for the sale of
WSFS' majority-owned subsidiary, Wilmington Finance, Inc.
WSFS started Wilmington Finance, Inc. (WF) in the fourth quarter of
1999 as a joint initiative with a recruited management team for the purpose of
originating and selling non- conforming mortgage loans. WF, headquartered in
Plymouth Meeting, Pennsylvania, made its first loan in January 2000 and has been
profitable since the fourth quarter of 2000.
The terms of the transaction are not fully disclosed. However, the sale
price is based on a premium to book value at closing. WSFS expects its share of
the total transaction proceeds to be approximately $78 million. WSFS expects to
recognize a gain on the sale of approximately $42 million after tax, or $4.40
per WSFS share. At September 30, 2002 WF had assets of approximately $166
million, consisting primarily of mortgage loans held-for-sale. Over the 12
months ended September 30, 2002 WSFS has recognized $8.1 million, or $0.86 per
WSFS share as its portion of the profitability of WF.
Marvin N. Schoenhals, Chairman and President of WSFS said, "We are
proud of the overwhelming success of Wilmington Finance, Inc. and our
contribution to that success. This transaction is in the best interests of our
shareholders and all constituents, and is consistent with WSFS' strategic
direction and other recent actions to focus resources and capital on our core
community bank in and around Delaware."
The transaction is expected to close in early 2003 and is subject to
customary closing conditions.
The Board of Directors of WSFS concurrently approved an increase in
WSFS' share repurchase authorization to 10% of outstanding shares, or
approximately 910,000 shares.
American General Finance, Inc. and its subsidiaries are engaged in the
consumer finance and related credit insurance business. The company,
headquartered in Evansville, Indiana, has $13 billion in assets and operates
over 1,400 offices in 44 states, Puerto Rico and the U.S. Virgin Islands,
providing products and services to approximately 2 million customers. The
company offers direct customer and home equity loans, retail sales financing,
and other credit-related products. American General Finance, Inc. is a member
company of American International Group, Inc.
WSFS Financial Corporation is a $1.6 billion financial services
company. Its principal subsidiary, Wilmington Savings Fund Society, FSB,
currently operates 21 retail banking offices in New Castle County and Dover,
Delaware, as well as Chester and Delaware Counties in Pennsylvania. Other
operating subsidiaries include WSFS Credit Corporation; Wilmington Finance,
Inc.; and WSFS Investment Group, Inc. For more information, please visit the
Bank's website at www.wsfsbank.com.
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Statements contained in this news release, which are not historical
facts, are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties which could cause actual results to differ
materially from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents filed by WSFS
Financial Corporation with the Securities and Exchange Commission from time to
time. The Corporation does not undertake to update any forward-looking
statement, whether written or oral, that may be made from time to time by or on
behalf of the Corporation.
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