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WSFS Financial Corp. to acquire Beneficial Bancorp

August 20, 2018

WSFS Financial Corp. and Beneficial Bancorp Inc. jointly announced Aug. 8 the signing of an agreement whereby WSFS Financial Corp. will combine with Beneficial Bancorp Inc. in a transaction valued at approximately $1.5 billion.

With the acquisition, Beneficial Bank, the wholly owned subsidiary of Beneficial, will merge into WSFS Bank, a wholly owned subsidiary of WSFS, creating the largest, premier, locally headquartered community bank for the greater Delaware Valley with the sixth-largest deposit market share. With approximately $13 billion in assets and growing, WSFS will be the only bank in the region with distinct market-share advantages, including local market knowledge and decision-making, a full-service product suite, the balance sheet to compete with larger regional and national banks, and most importantly, an ingrained culture of engaged associates that bring to life WSFS’ mission of We Stand For Service in the daily delivery of stellar customer experiences.

WSFS Bank and Beneficial Bank share similar histories, missions, heritages and footprints. WSFS Bank was founded as Wilmington Savings Fund Society in Wilmington in 1832, for working citizens to encourage thrift and to safeguard their savings. Beneficial was founded in 1853 in Philadelphia as Beneficial Savings Fund Society to provide a safe and secure place for immigrants to deposit their savings. Both banks offer retail, commercial and mortgage products, and each provides specialized solutions that will round out the combined bank’s full-service product offerings. WSFS operates from 77 offices, including 60 banking offices, predominantly in Delaware and southeastern Pennsylvania. Beneficial operates from 72 offices, including 61 banking offices, predominantly in the City of Philadelphia and neighboring communities in southeastern Pennsylvania and southern New Jersey.

“This is an historic combination,” said Mark A. Turner, WSFS chairman, president and CEO, who will become WSFS executive chairman Tuesday, Jan. 1. “I believe this combination provides a compelling opportunity to serve our combined markets as it fills a long-standing gap between big banks and smaller community banks in this market. Together, we are poised and positioned to serve customers, to capture good market share, to expand the reach of our proven successful business model, and to deliver sustainable high performance for years to come.”

Gerard P. Cuddy, president and CEO of Beneficial, said, “We strongly believe there is value in partnering with WSFS and combining the strengths of our institutions. This is a sound decision for Beneficial, our stockholders, our employees and the communities we serve. We are combining with WSFS because it is an established institution with deep roots in the Delaware Valley, shares our values, and has the utmost respect for Beneficial’s legacy.”

“We are excited to be joining WSFS,” said Frank A. Farnesi, Beneficial’s chairman. “It’s a superior financial services company that has consistently delivered outstanding value to its stockholders. The combination of these two banking franchises will create a financial powerhouse uniquely dedicated to the customers and communities of the Delaware Valley.”

The combination is WSFS’ eighth acquisition since 2010, including traditional banks and other fee-based businesses in southeastern Pennsylvania and Delaware. WSFS’ proven track record of successful integrations, combined with its strong organic growth and purposeful expansion into the greater Delaware Valley, has resulted in the creation of new jobs and significant community and economic investments.

WSFS anticipates consolidating approximately 25 percent of the combined physical banking offices over the next 12 to 24 months due to geographic overlap, changing customer needs and optimization opportunities within the network. WSFS plans to reinvest an incremental $32 million, or about 50 percent  of the estimated cost savings from the network optimization, into a five-year transformational investment in technology and delivery systems. The delivery transformation will produce a top-tier physical and digital servicing platform that will significantly enhance customer experiences across all business lines.

“This partnership and our delivery transformation aligns with our strategic plan,” said longtime Delaware Valley banker Rodger Levenson, WSFS executive vice president and chief operating officer, who will become president and CEO of WSFS Jan. 1. “Our combination with Beneficial creates the ideal opportunity to transform WSFS’ customer delivery and back office systems that will secure our competitive edge in a fast-changing financial services industry.”

Upon completion of the acquisition, Cuddy will become vice chairman of WSFS Bank and will join the boards of directors of WSFS Financial and WSFS Bank along with two mutually agreed-upon current directors of Beneficial’s board.

 

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