WSFS - Earnings call transcript Q4 2019 | WSFS Financial Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the WSFS Financial Corporation Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions].

I'd now like to turn the call over to your host for today, Mr. Dominic Canuso, Chief Financial Officer. Sir, you may begin.

Dominic Canuso

thanks participate of on and the for Valerie, to time our you, to you all taking Thank call today. this Bacci, Steve Chief Technology on and Retail Banking Officer; me call Lisa Levenson, Chief Rodger With Brubaker, and Chairman, Rick CEO; Wright, Art Chief Chief Clark, Officer; Officer. Officer; Wealth Commercial Banking are President

Rodger with his read statement. harbor safe begins remarks, to Before our I would like

these uncertainties, our XX-K to, forward-looking management's our limited forward-looking and Our reports Actual our to statements view our included report information annual due quarterly discussion today risks XX-Q. and materially plans including, constitute will but in Form factors future risk or and by most differ not Form prospects may about on that results those recent the on statements. include results expectations, historical of from indicated

As Securities the the today's safe file I'll that well and made we are read, Exchange harbor subject other as during periodically Rodger Levenson. comments the over to to With call All with documents statement. discussion Commission. turn

Rodger Levenson

our thank our you with us for the usual joining on to longer will they for a everyone Consistent than as include and comments XXXX. little practice, call. be our historical Dominic, today outlook Thanks,

on the call fourth turn have the XXXX and additional then also through touch your Dominic outlook For we full of reference, year and information quarter on year to results the XXXX the supplement QX outlook. provided I to posted briefly website. details will the earnings full XXXX in XXXX and over walk on our

you to our be may answer that prepared questions As remarks, always, our happy of upon have. will the any conclusion team

for with share earnings and per ROA of another that strong X.XX%. report We are core to very QX of WSFS core $X.XX quarter XXXX pleased was

included a and the in by nonperforming XX% quarter fourth in revenue share our quarter results management. loans, resulting with core of year in both largest contributed noninterest resolution earnings expense in spread ROA XXXX NPL. businesses, of and the results from This of our combined disciplined were the Highlights a a solid fee reduction $X.XX to X.XX%. positive per performance also Our generation core our full driven of

in original year reflected XX performance, successful and and earnings strong for our combined XX exceeded outlined of integration supplement, our expectations the with operating results Beneficial. As Pages of the the

of One key strategic Beneficial portfolio is of loan our mix. objectives repositioning to related the the

runoff $X.X billion including approximately identified C&I and approximately mortgages non-relationship residential relationship-driven higher-yielding with we portfolios, of loans. Specifically, to $X.X lower-yielding and of that we billion replace plan

the accelerated interest related which and X.XX%, The purchase basis contributed declining of year, the net interest runoff XXXX growth. loan of points this XX included loan was full half reflected planned in to rate of second our margin also environment in our year accretion. Beneficial It

consistent anticipated, is While with of different and strategic attrition the the timing than accretion it was our plan. loan

the offset by year mortgage grew led deposits New branches X% excluding This revenue, modest when in banking The Bank core and impact minimal post-conversion to sale in of Total a deposit included for of core fees. Jersey Princeton. fee for X% deposits increase growth attrition. was the wealth income traditional the by X% decline a year of our strong and banking the management Organic five of

the loan directly second specific Beneficial $XX.X net modestly over efficiency loans. to attributable higher in million were original or of over modeled costs for reflected episodic higher of impairments than cost of management at which from ratio Our quarter, XX.X% core and Credit achieving savings year. expense revenue. two points XX our ongoing charge-offs XX% This was basis of our the accounted expectations

the course million just only of of average we Beneficial into service were exceeding market. at during completed uniquely and of Delaware $XX.XX to position region and an XXXX, integration for able to our Philadelphia of the big price as over bank we compete in X.X We result a in strategic and Having stock current our achieving with to bank with the Finally, of our shares the price, repurchase and stellar as the capital competitors WSFS the combined greater the strong locally product look plans or year. headquartered of positioned this executing WSFS our second offering move plan. forward with XXXX, year size, scale share

will Dominic on to provide information hand outlook. over additional it XXXX I to now our

Dominic Canuso

Year. New Rodger. afternoon, everyone, Good Thanks, and happy

and to from integration are Philadelphia our year focused strategic which page close, in delivering Beneficial. of marketplace, the the of plan, transformation the opportunities to We successful second is resulting the excited on turn three on and Delaware the greater year and conversion

the purposeful business Highlights to that Loan XXXX of posted forma cost modest outlined on high operating And will on or low plan our single-digit relationship purposeful original in expectations supplemental with in attrition. than and expectations somewhat and XXXX and organic walk expected mid three digits, outlook portfolio. Beneficial mid-single-digit opportunities outlook pro our materials today by consistent the runoff consistent for grow based as is we and with continue mid opportunities synergy our of is the to in Our year acquisition results. expected revenue to non-relationship build see single-digit we post-conversion high for cases. points, CDs. with website, the to our percentage we growth and incorporate following. mid-single growth, These consolidation offset pipeline, include strong including branch driven And strategic nonstrategic, better performance the offset through deposit see opportunities Deposits by financial original on runoff growth, are our to in higher our existing expectations. performance

the to margin XX basis incremental in decrease XXX environment. basis accretion on to Fed the interest pace of of A accretion and This attrition portfolios X.XX% point given includes the of rate beneficial midyear, beneficial rate in XX range of X.XX%. points net modeled basis points the runoff based current X

late single factors: Durbin's three on effect This low in rates to interchange July alone reduces Core debit lower which growth by XXXX, the conversion-related than of beginning fee interest lower impact is XXXX. which by rate grow bailment environment mapping growth funding costs. digits. points. connect’s in fees, by of fee Two, One, is rate the occurred quarter cash that X income the key product offset in fully the impact historical three, And on is third impacted assumed year full the percentage

near-term headwinds, and these in Excluding high digits grown the wealth in both by would double-digit businesses. fee income growth have driven mortgage single

full approximately fully approximately investment. deal the with Core the model. XX%. ratio normalizing transformation the for of When our original delivery savings in is Beneficial be would efficiency XX% versus expected XX%. two first year also rate includes efficiency plan, environment integration ratio achieving of includes be It interest projection the consistent cost This to strategic original our year the the

is are which of after through costs loans amount XX one CECL. approximately points That year is after the forecasted to the amount in $XX Credit day full that of $XX the for be a taken through runs directly adoption basis increase P&L million in basis to ACL, the million on balance the XXXX sheet.

historical our in $XX XX CECL in day ratio to ACL Our increase resulting by plus current our the of increase driven X, on loss our estimate million a materials between acquired $XX of supplemental class Slide impact adoption life driven million the from coverage in an of asset each mix, weighted basis year-end Addressed primarily is position XXXX experiences is by approximately portfolios average and this XXX points of mix the our loans. and portfolio. reserves one and organic from

XX-K our will continue upcoming additional outputs model and filings. validate and our to information provide We finalize in assumptions and

is outlook a The rate due effective approximately includes with strategic a to increase plan, slight delivery and in in XXXX with full consistent our our core landing stock-based lower digital activity. to XX%, expected meaningfully excited to with theme strategic tax which our compensation physical delivery of of brand plan we channels, our of our transformation efforts progress year transformation, mission. are and consistent and enter first our Consistent

XXXX, strategic to initial resulting incremental to customer a rapid to on of and to and with partner, and In we is our ROI. years transformation increase along enhance X opportunity time technology efficiencies our evolution commitment the and line operational increase This in in continued with on investment more our the accelerate experience quickly focused our banking our years. refining acceleration industry, program, based accelerate X working delivery from our

on major areas three additional We the and X IT in experience customer of across provided have materials X, infrastructure. supplemental Slide acquisition, and including context initiatives customer a specific list

our to routine purposely share income XX%. as in Finally, low practice price. annual some of that and and comments our of through When on capital capital, excess management. return It shares are IRR is of dividend at XX% regardless buying price combination over position a such we a of our to of is buybacks share shareholders an incremental long-standing least net

buyback. incremental in We will engage

at Even of and and excess of moderately in to future. quarter strong current objectives market achieve XXXX. in a the with expect the both core our stock Given price. X.XX%, capital price, our XXXX, we current Overall, above strategic levels position share ROA aggressive the be to approximately our achieve plan our third foreseeable year intend consistent full buyers we and of fourth and

Excluding the months significantly XX expectations lower interest ago. rate environment versus

lower. Specifically, basis XXX that base are points rates

performance plan our original estimates. to is strategic favorable outlook slightly Our

As ROA to always, this high-performance we our find sustainable, focused deliver peer quintile to on group. are expect top in and

joining this us on call today. you for Thank

is questions have. happy Thank We up any will our open may you. and now team the line, to you answer

Operator

Instructions]. [Operator

Piper Sandler. first Our Frank comes of question Schiraldi from

Frank Schiraldi

start to not might sure I you if with I'm have Dominic, it. it. Just missed gave

X about years three amount the years? a did versus total five. over talked to But tech You the dollar accelerating give X spend those you

Dominic Canuso

question. good and not, did I

historically, of So discussed investment incremental $XX.X previous million. we've in our conversations, an

that to to in see the would in increasing just as investment out we you'll years. gross about investment talked anything at a expect our $XX over three we've But lay few over We with of invest over million. year As we continue the will evaluate. material, this plan, next as XXXX pace in

Frank Schiraldi

expenses guess, And as reasonable to I being level about Got the you. well think mean, year? same net is per I it

Dominic Canuso

increase offset in cost cumulative operational would actually amortize, associated with of And would increase. would But efficiencies gains and those with -- along portions as the begin investment, net, back-office be that year that the benefits they spend On each expenses. revenues cost the in to CapEx. of as then is by other part

Frank Schiraldi

you. Got

cite activity? that X.XX% And for Okay. ROA include then buyback you does XXXX, that the

Dominic Canuso

includes It share consistent with repurchases. activity does. It recent buyback

Frank Schiraldi

I have mean, it significantly I the return think XX% in, you But original guys I Okay. of the it standard me wrong, correct have if buyback your X.XX% I'm whatever activity had of originally? in think terms didn't about given guidance baked higher, is, if

Dominic Canuso

closer would It level capital been have Correct. to returns. of minimum our

Frank Schiraldi

Okay.

should Now buybacks, we returns we about think think -- think incremental have you you Or attractive then about the could the plenty near to up the after be we return and capital. as could even IRR capital buyback -- you about certainly Should earnings? term XXX% being in of CECL, -- guys, as excess and talked of of of earnings? being exceed

Rodger Levenson

is Frank, So this Rodger.

think you've we and to look always, this uses around is, with generating continue me, to economic the year, pace intend in the quarter the would certainly, that. second I and the will clearly seen credit enough the it as cetera. evaluate support way at the capital, current third -- we that that we're excuse environment, environment, But I capital of et other fourth

factors I prices it's we upon capital our that then certainly say could increase share that enough fair things, So the other and statement think current and support pace. those to a to And generating amount. we're depending where

Frank Schiraldi

Okay.

changed imagine, now this dollar would have, X to left, year. rules, the X there's at its guess, -- no some it million you point I million So has issue I Fed reauthorizing shares

Rodger Levenson

Yes.

our capital is all address with planning capital Frank, issues. first in our So our when quarter cycle, do the we we normal Board

to part expect repurchase on that authorization As we a and through process, would share that new move cycle. of go after we'll that evaluate forward

Frank Schiraldi

throughout if finally, Okay. small And us, could deal? the then a margin, just accretion excluding any I remind accounting in just purchase if But purchase think accretion, accounting And the Beneficial accretion? there's point? talk on then layout that the just slide timing the it's pretty the in -- some you Is for pretty the XXXX, that number. about purchase you of year? numbers at your down Or Is deck. it, does you know to ramp evenly start spread I accounting that

Rodger Levenson

Sure.

of Beneficial points and And So first to accounting it would basis the points basis pace acquisitions before purchased to accretion to amount. Beneficial. about throughout XX year question, from question X purchasing accretion XXXX, that the loan XX regarding of your there is down in likely to X then your average legacy

Frank Schiraldi

Is that...

Rodger Levenson

Contingent quarter-to-quarter from upon basis. kind a of payoffs

Frank Schiraldi

terms it be -- Yes slope mean, would of is guess, about incremental Right. quarter-over-quarter. accretion a roll I if going is there but we I the the How is model, off? more shallow to in pretty think volatile much

Rodger Levenson

shallow a is XXXX. It slope in

Operator

of comes Perito question KBW. next Our Michael from

Michael Perito

just clarify. to wanted I

share you topic. did I Just guys, right? I hear repurchase mean, on So the

for couple the that, [ph] kind it's forward stay of of [indiscernible] So at is the fourth pace difficult comment beyond of you it quarter. constantly to anything the is? on for kind expectation, to in a least the quarters, the at next obviously, to what that at just couple the evaluate of little quarters next moving And then were capital

Dominic Canuso

correct. that's Yes,

Michael Perito

of was I rate the put the more kind transformation expand expand you could in for up a supplement. appreciate was little a could Okay. kind the the us. dynamic wondering guys sure maybe was if both a But environment more. could around the and that wondering you you And information decision-making process -- if timing of bit the expenses, expand outlook expenses. interesting, of guys given But I you there's some reason more seems wondering it accelerating all I little that a those that. earnings the of I kind the just on on little to if seems bit is little ratchet delivery challenging face bit I'm just on value, for

Dominic Canuso

sure. Yes,

decision and to but see First, for only incremental our the opportunities least the opportunity. it cover make deliver about look along we I at the to we'll the transformation, practice delivery we Lisa opportunity is accelerate And questions. when longer-term investment. and framework we as to the benefits of most not making. of I'll pass for of the say, talk would investment, this with investments, But over that and the historical

Lisa Brubaker

Dominic, Michael. Thanks, Sure. hello, and

obviously, underscore kind is what and of to and technology innovate want we everybody and provide to position, said, customers in to landscape, are be across seeing our the pace Just continue can Dominic moving as think the we very has for. of a and look that we what is I that respond quickly, looking

at all that projects makes benefits forward now acquisition organizationally, that tackle looking were around it materials, we the the we timeline road across in in as supplemental really, The for be to delivering to deliver be was three process talked map, time us experience. those to able to we so felt And our of so particularly we right. about and the on the sense pull can customer areas thought able and the is

we're others execute, got behind expanded to really and now. decision. and our that customers market serve have We We've the was to to and attract, ready

Rodger Levenson

and Hey, clear was accelerate Michael, environment a or rate current Rodger. all want is XXXX I do the was interest this at make investment not as to the point to It described. Lisa though, outlook. our influenced exactly Dominic about decision

the anywhere we came the the when know, have world just environment. assessment customer think summer lines amount referred to of base a assessment macro that operate we along it the was opposed decision did not with an the 'XX, we accelerate different the now. we what I of broader with about or originally as knowledge of to you more working market as place, that and in near the very financial of made the in up our to partner, beneficial And Lisa

Michael Perito

has aspect all? other -- that accelerate maybe than changed more it? that, some the thoughts pull Or thought of with Is and I it your kind at when is from think the Got the I perspective laid dynamic say you guys that on it forward? comment was making a to first Or kind that of you to case, rapidly This competitors competitors. you this forefront that's any of remember still of relative out at wasn't to keep you technology a that but the your was catch-up. plan, fair has

Rodger Levenson

competition No, I external world what is from up the make XX I at dynamic in acceleration to just back months. changed last don't would the changed the all. I changes just refer we're said, keeping seeing that hasn't we're an that sure in the required with environment. -- has this to dramatically And

Michael Perito

Got it.

a giving prepared you like Thank on And growth then more growth. a lastly, bit optimistic And wanted I little positive remarks? that if is back out pipeline outlook, just fair to I how from you've that see for do ask takeaway and the guys that with laid Is XXXX the think early does just stronger on kind I net sounds thoughts the mean, growth are XXXX. gate a about your me that. could initial out? I the Okay. the so, in that guess, mean, in your you just material any play out it is some more runoff turning you year of to Or as could and be that to the there balanced? of in the growth you of the runoff half. thoughts part still loan

Stephen Clark

We high to that in from But growth, mid- single-digit and we consumer and that mid- little And acquired Steve for the of spring Michael, identified portfolio. this leasing a mid-single-digit leasing our and to runoff to by lending year, low we full and our we C&I, at is growth, front. those, plan do that including Clark. the new be on Beneficial will EQ excluding portfolios, driven growth. is loan think those company think, the looking bit absent student single-digit are with

Michael Perito

I'm asking differently. the question little Maybe just a

the year the be half down of year, anything a sense might that the the a slower slows get runoff but growth number Is which look per next guys runoff, planned. not have to quarter and between material you you try to net little for the nature? as difference there per looking first than or the kind just because year, back of progresses runoff of As any -- quarter, growth of in the half

Stephen Clark

on We a it did runoff be so consistent But we could depending of the through happened. year. that certainly modeled not lumpy year quarter-to-quarter Yes, what model way. kind the

Operator

of Erik Our Boenning. comes question from next Zwick

Erik Zwick

little start and net for XX maybe excluding Slide can The accretion, margin, with X.XX% target net of me average? X.XX%. of you starts the Can the year in XXXX. throughout I if interest to and the you that how terms kind reach looking just kind Maybe the year to color Beneficial a interest of trend expect give it where margin that at of the

Dominic Canuso

as in for material. Page speaking the to Sure. supplemental just XX everybody's And reference, we're

the So margin and you'll net quarter that NPL. some below, included see for outsized payoff in income point interest that the of amounts kind the was X.XX% from a fourth bullet some

would be as then throughout when it for then it out the some deposit X.XXs. up. normalize student So that, with plays And would down the the phase takes to playing time it the the you in year out, in the as And cut year, environment middle of low year. the betas rate catch

Erik Zwick

So that? some even of it Or down you the to in at And continue throughout the down it's towards through trends quarter? do trend point fourth kind year. stabilization see does

Dominic Canuso

towards No, we to rate higher would see upside loans. C&I the then stabilization after stabilization And the relationship, as remixes the yielding portfolio cut.

Erik Zwick

Great. And income. then noninterest switching to the

it's the terms me in of your be revenue that'll impact interchange Can Durbin, impacted? from In of July. the of remind dollar effective impact you

Dominic Canuso

Yes.

we XX% takes We're our see a million interchange higher effect. larger, So hit would going and million billion more of basis, we historically, said Durbin about be $X.X over the full to bottom kind of, number of that $XX will we negative a lower net cost mix a interchange. the take the seeing year about coming which line, debit when had impact, $XX.X including of when about communicated on signature, $XX about from as impact million than

Erik Zwick

just kind numbers. of some That's quick Okay.

XQ? original Somewhere starting to estimate? around $X.X in kind the far, that impact net of million XX% per maybe $XX million quarter How

Dominic Canuso

Yes.

to $X a say, little be than around that, would million. it I lower So would $X million

Erik Zwick

break in other what million loan you of credit to in of for that to Okay, terms great. million. workout down expenses? terms the expect any cost XXXX, that of costs versus And you terms outlook able then provision $XX Are $XX in and

Rodger Levenson

Yes.

is Rodger. provision. The the this -- almost amount So entire is

to numbers here. give to the break I you me page, I and just think click the it out, let

is I delta or a million right credit million to its of million with around costs. $XX think total provision so, Sorry, being $XX $XX

Erik Zwick

appreciate I Great. one just me. one last then for that. And

when experienced again? that Hockessin in have that branch the you the of Do open branch an terms might estimate fire? location for In

Rodger Levenson

That's we'll if -- there add we're nine analyzing, information thing The later is I is one that further structural don't. significant go at something damage more months. We probable it's we and we're then the would with least decide currently probably have to talking that in about month.

Operator

next from Gunther Davidson. comes Our D.A. of question Russell

Russell Gunther

regarding, evaluating internally the was once question comments capital about consider. still uses Is couple three and a And would your other So plan believe the something that that year that correct? we next of with not quarters the is was that get M&A you of case? I focused, Rodger, through buybacks. current

Rodger Levenson

Yes.

three with to unique strategic as So very focus that market, our strongly year a it we believe growth and in that's plan this much really positioning relates bigger M&A. bank organic how we opportunity traditional have and was the contemplated this

some particularly have you from we that way businesses, perspective, We said consider wealth us. think the management management space. smaller M&A that's the in should would an be our about capital overall thinking fee-based But I

Russell Gunther

Got it.

you then sense could capital threshold, terms Rodger, get if lines, the would TCE Okay. your internal for along And just consider what in it so of be what us excess? us helping of a target, also you is sort of remind those

Rodger Levenson

as better tested somewhere because than a capital X% own TCE we and clearly, recession. more we've X%. cycle talked than optimal Beneficial. going thought of landed we significantly be we that, our after being with between over We're experience stress And multiple that's would the the higher So deep including closing our about, ratio be would through times,

would as lot flexibility, So that buybacks capital a economy us see other in there things of have or if change the use fit as or well. were it that provides I we to in we buffer to of think it's a the deployment whether

look significant it as it this So just at point us gives at we optionality.

Russell Gunther

clear no, Right. Yes there. very --

original that paying not why over table year? this with then out of in of XXX% that of down in earnings, back work back we levels near capital a to terms question timing would so half your off back ratio the see optimal the deal of depository of term. And to to that guess, I Getting kind

Rodger Levenson

I current obviously, factors business it's see of pace as Well, Yes. buybacks we dependent invest the or My the either or comment would fee-based some factors upon to the invest I other upon acquisitions and dependent other is, share think things. organically in price, on expect it's in opportunities all the in the evaluate upon and regular that in factored those based will go all certainly first but as increased buyback pace said, year. And we that I our to of that quarter activity. planning, would into capital each which, we through continue, be

Russell Gunther

then the Okay, what cut the year gears switching X.XX% June point perspective, for a great. you And could to contemplates range a margin, that would X.XX% that this please? that within to cut, from quantify basis mean

Dominic Canuso

Yes, sure.

data expect given we be would timing of presumed that about $X it XX%, more the rate couple recent that seen the environment small, impact So million of of in we've or rising a the and points. to about relatively basis

Russell Gunther

impacts quantify the conversation, Okay, the efficiency could anything, XXXX if discussion then guide, around to decision do accelerated circling impacted got expense to or you it. that? Thanks, expenses, back the just Dominic particularly your what, that and the

Dominic Canuso

business It and an fourth year, and the in you'd does see that cost the in it when so, modest primarily quarter investment you growth would the a by included rate. or but outlook Sure. point delivery normalize trend growth, our some from is percentage we've expect that driven we somewhat throughout provided,

Russell Gunther

all or even with us would absolute percentage XXXX then to of core it And growth mean for from I to company rate of potentially to be when we help base that. what pieces that consider 'XX. basis -- you you an the could a Okay. XX% from kind there moving dollar and follow expense for further, for the with a simplify cut, given

Dominic Canuso

What is, deposit typically scale income we XXXX that the provide business. to would underlying outpace think the you underlying expectation kind our our growth detail. I outlook assumptions of that if fee of loan say and so the growth, about the don't that level would Yes, around ability and

slags performance I fair XX%-plus that's level. out. drawn line metrics growth think typically expect don't at that those again, of detail it basis. just a We be would thereafter provide But to bottom on

Operator

[Operator Instructions].

Stephens have Brodie We Inc. from from a question Preston

Broderick Preston

-- So sticking just just real I just to the slide. with that the on transformation, headline reading just delivery quick, wanted

It's synergies. of right, So it's million this year, $XX of $X.X million $X.X Is revenue being it's Dominic? and rate then year added that to the million CapEx correct? this of run expenses

Dominic Canuso

So gross begin which to a million. investment you $XX.X That million is would by CapEx. amortize have revenue It's a $X.X then let net $X of me expense of clarify. that, when you $X.X And of of about offset million, lift. includes million

$X.X the offset by net the million is the So expense revenue.

Broderick Preston

Okay, okay.

basis like, and then gets just it's revenue, then for run for terms $X to is like for or gets income $X.X to amortized fee that? So over -- our X-year million million the model, XXXX, $X.X and added added to million in something expenses of or the a like rate depreciated

Dominic Canuso

That is correct.

the between X our increased leverage we well. So income pipelines, depending on margin years, as deposit points as a spread is the our growth and couple more and between and be million would project, loan $X.X of and finer on that. The X generating depreciation fee

Broderick Preston

that. much you one for thank Okay. All appreciate very right, for on margin the One I the ticky tack me. clarification.

ex and it Beneficial it to like accretion of Beneficial. from XX was in basis points So X it's all bps looked X

accretion it's basis in. So XX points correct? all about XX to Is that of

Dominic Canuso

you to? I'm sorry, speaking which period are

Broderick Preston

For XQ.

Sorry about that.

Dominic Canuso

if And those numbers you by way? could repeat the

Broderick Preston

Yes.

then basis -- to points And the in So X was XX in, So Beneficial looked said XX of about quarter? bps accretion like it from the like XX? to in X Beneficial all fourth it's of quarter. ex accretion it was you it

Dominic Canuso

correct. is That

Broderick Preston

slide? include of synergies the delivery X.XX%. fee then the revenue income that or that on other ROA Okay, beyond Does great. And guidance outlined any transformation what you

Dominic Canuso

It does.

the is and footprint specifically customer Beneficial base mortgage and that we X.X footprint, years, last which cases can business in incorporates card, been it larger that income, speaking larger for fact, saw we've the we fee geographic that our we credit our that the income legacy across In fee investment our opportunities leverage have to the in SBA Wealth.

Broderick Preston

Okay. And plan. original that that in X to the points correctly, ROA was if the basis Is remember additive correct? I about

Rodger Levenson

correct. is That

Broderick Preston

million. Was $X.X that to that XQ? the The off loan refinery Great. had healthcare or you the C&I tied charged loan in order, Okay. at all recovery the this

Rodger Levenson

older was legacy, that much credit. Brodie, different No, unrelated a

Broderick Preston

was Okay. a bid. there I guess, refinery the sold the for headline that top

just I drill in of loan. So down recovery refinery terms potential trying guess forward a tied to I'm to moving that

have would appreciated. there, be if color So any you that

Rodger Levenson

of So that beyond our watching report bankruptcy evaluating process process. and options. point. obviously, to part We're But really there's closely this that, -- we're there's at nothing that

Broderick Preston

you Okay. was the the call? the guys off QX books this that million facility the spoke on health local quarter. of NPL care And moved $XX that That sort also about

Rodger Levenson

That's correct.

Broderick Preston

just a the then a pretty but it to -- now, small the talking know guard portion it's And continues healthy clip. more great. of right so I Okay, book NewLane,

I could ticket what size give the as So to duration looks yield customer a sense just What if typical those and like is on was and average wondering the loans? there. us you the

Rodger Levenson

I'll just you give overview, Brodie. the So broad

Broderick Preston

Okay.

Rodger Levenson

ticket. national a It's small

So sourced think kind That business. leasing is of $XX,XXX through channels primarily to $XX,XXX relationships. direct and driven broker vendor

significantly than you synergy and commercial with C&I give business, see point nice on normal off. lots an country, little very bit color small to We as obviously, our really can So there. business vendor and it's but the leasing. ticket it's bit that. and This a and plan, our across is that well. business according we're well we little performing higher see driven it's it's our yields book. inflection all our Dominic behind take a small of teams very, plan, hit in it's starting with to opportunity the And pleased And really very commercial very, original a of

Dominic Canuso

Yes.

And to so supplement. just

higher, Rodger has the et are product, quality they side cetera. loans generate typically significantly $X,XXX level the -- on customer, can low the mentioned, anything and average the range from While on depending on the what the to

yields generating depending terms. on are contracts. digits in on the credit general X But typically these product high to We the risk mid-teens, to in the single year are X duration

Broderick Preston

I you And one. great. higher just runoff, one X% -- deposits, brokered The book the time Okay, appreciate time by this that color. grew book, deposits to X.X% -- across customer CD quarter. cost X% the have and CD for then pegged amount you last that

book. higher runoff sense that to just get So for CD is pegged wanted for the that I amount a you for what cost

is be cost of or Or be it beginning whether in front-loaded XXXX? average the would it And what there? not evenly of runoff? the would if Sort

Dominic Canuso

typically XX-month relatively those would X% as year, amount rates, level would we think yielding. longer that create back of will rack that don't rate the about in years be churn detail, by terms, We X.X more those I even runoff and attrition. some you rates our or growth an Yes. X%. from of some will reducing but quarter-to-quarter, And generating to if but nonetheless, would it's ago, disclose say were duration, it reduce higher X that

Operator

in queue, turn call over questions to Sir? And with like the Mr. Rodger back I'd further Levenson. to no

Rodger Levenson

back for Dominic Thank go on every you, the we and weeks. I seeing again participant the on forward to when thanks call out of look in you coming and many today. the road

other questions happy also to Thanks prior any that have a address are you have We may again, and good to then. day.

Operator

conclude and conference. Thank for you does Thank you. gentlemen, participating. this Ladies today's

You may all disconnect.

WSFS Financial (WSFS) 22 Jan 202019 Q4 Earnings call transcript