The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

WSFS offsets FDIC assessment, BOLI costs with Spring EQ gain

WSFS Financial in Wilmington, Del., had a noisy fourth quarter.

The $20.6 billion-asset company said in a press release that its quarterly profit fell by 24.2% from a year earlier, to $63.9 million.

WSFS paid a $5.1 million special assessment to help replenish the Federal Deposit Insurance Corp. Deposit Insurance Fund. It also recorded a $7.1 million income tax charge after surrendering $65.5 million of Bank-Owned Life Insurance policies.

The company said it expects to use the net proceeds from the surrendered BOLI policies to buy higher-yielding interest-earning assets or to pay off wholesale funding.

WSFS partially offset those hits by recording a $9.5 million gain from its investment in Spring EQ, a digital home equity origination platform. “Through our partnership with Spring EQ, we continue to grow our consumer loan portfolio,” WSFS said.

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