WSFS Financial Corporation Provides Earnings Guidance for the Fourth Quarter Ended December 31, 2017
January 04, 2018 at 09:44 pm
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WSFS Financial Corporation provided earnings guidance for the fourth quarter ended December 31, 2017. For the fourth quarter, the enactment of H.R. 1 results in significant changes to the U.S. tax code, including a reduction in the top corporate income tax rate from 35% to 21%, effective January 1, 2018. The company estimates the revaluation of its DTA will result in an incremental income tax charge of approximately $12 million to $13 million in the fourth quarter of 2017. The company anticipates a negative earnings per share (EPS) impact of approximately $0.37 – $0.40 resulting from this income tax charge. The company expects to recover this charge through lower taxes by the end of the third quarter in 2018. The actions outlined in this announcement are expected to reduce reported after-tax income by $22.8 million to $23.8 million in the fourth quarter of 2017, or $0.71 to $0.74 in EPS. The company’ decision to surrender the policies will result in an incremental income tax charge of approximately $8 million in the fourth quarter of 2017.
WSFS Financial Corporation is a savings and loan holding company. The Company operates through its subsidiary, Wilmington Savings Fund Society, FSB (the Bank). The Companyâs segments include WSFS Bank, Cash Connect and Wealth Management. The WSFS Bank segment provides loans and leases, deposits and other financial products to commercial and consumer customers. WSFS Bank also offers a variety of consumer loan products, retail securities and insurance brokerage services through its branches, and mortgage and title services through WSFS Mortgage. Its Cash Connect segment provides ATM vault cash, smart safe and cash logistics services in the United States, servicing non-bank ATMs and smart safes nationwide and supporting ATMs for WSFS Bank Customers. The Wealth Management segment provides a range of planning and advisory services, investment management, personal and institutional trust services, and credit and deposit products to individual, corporate, and institutional clients.