<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
{X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
AND EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
-----------------
OR
{ ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
AND EXCHANGE ACT OF 1934
For the transition period from __________________________ to _________________
Commission file number 0-16668
-------
A. Full title of the plan and the address of the plan:
WSFS Financial Corporation
401(k) Savings and Retirement Plan
838 Market Street
Wilmington, DE 19899
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
WSFS Financial Corporation
838 Market Street
Wilmington, DE 19899
<PAGE>
REQUIRED INFORMATION
The audited financial statements required are incorporated herein by reference
from the Financial Statements and Supplemental Information, December 31, 1996,
attached as Exhibit 1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
WSFS Financial Corporation
401(k) Savings and Retirement Plan
DATE: July 1, 1997 /s/ R. WILLIAM ABBOTT
-----------------------
R. William Abbott
Plan Administrator
<PAGE>
EXHIBIT 1
WSFS FINANCIAL CORPORATION
401(K) SAVINGS AND RETIREMENT PLAN
Financial Statements and Supplemental Information
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Financial Statements and Supplemental Information
for the Year Ended 12/31/96
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Financial Statements
and
Supplemental Information
Index
<TABLE>
<CAPTION>
Page(s)
-------
<S> <C>
Report of Independent Auditors.......................................................................... 1
Financial Statements:
Statements of Net Assets Available for Benefits................................................ 2-3
Statements of Changes in Net Assets Available for Benefits..................................... 4-6
Notes to Financial Statements.................................................................. 7-15
Supplemental Information:
Schedule I - Item 27a: Schedule of Assets held for Investment
Purposes............................................................... 16
Schedule II - Item 27d: Schedule of Reportable Transactions................................... 17
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Participants and
Administrator of the
WSFS Financial Corporation
401(k) Savings and Retirement Plan
We have audited the accompanying statements of net assets available for benefits
of the 401(k) Savings and Retirement Plan of WSFS Financial Corporation (the
Plan) for the years ended December 31, 1996 and 1995 and the related statements
of changes in net assets available for benefits for each of the years in the
three year period then ended. These financial statements are the responsibility
of the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as, evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the 1996 and 1995 financial statements referred to above present
fairly, in all material respects, the information regarding the Plan's net
assets available for benefits as of December 31, 1996 and 1995, and changes in
net assets therein for the years then ended in conformity with generally
accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the 1996 basic
financial statements taken as a whole. The supplemental information included in
the schedules of assets held for investment purposes and reportable transactions
is presented for purposes of additional analysis and is not a required part of
the basic financial statements, but is supplemental information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974 (ERISA). The fund
information in the statement of net assets available for benefits and the
statement of changes in net assets available for benefits is presented for
purposes of additional analysis rather than to present the net assets available
for benefits and changes in net assets available for benefits of each fund. The
1996 supplemental information and fund information have been subjected to the
auditing procedures applied in the audit of the 1996 basic financial statements
and, in our opinion, are fairly stated in all material respects in relation to
the 1996 basic financial statements taken as a whole.
/s/ KPMG Peat Marwick, LLP
June 19, 1997
Philadelphia, Pennsylvania
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Statement of Net Assets Available for Benefits
Year Ended December 31, 1996
<TABLE>
<CAPTION>
Money Market Bond Large Cap Small Capital
Fund Fund Stock Fund Fund
------------ -------- ---------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments, at fair value.........$1,201,368 $ 905,415 $2,328,237 $ 980,752
Receivables:
Accrued income (loss).......... (33) 80 (75) 15
Loans to participants..........
----------- --------- ---------- ---------
Net assets available for benefits..$1,201,335 $ 905,495 $2,328,162 $ 980,767
========== ========= ========== =========
</TABLE>
(Re-Stub Table)
<TABLE>
<CAPTION>
WSFS
Financial
International Common Loan
Fund Stock Fund Fund Total
------------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Assets:
Investments, at fair value........ $ 510,954 $5,100,113 $11,026,839
Receivables:
Accrued income (loss)......... 14 203 204
Loans to participants......... $435,406 435,406
--------- ---------- -------- -----------
Net assets available for benefits. $ 510,968 $5,100,316 $435,406 $11,462,449
========= ========== ======== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Statement of Net Assets Available for Benefits
Year Ended December 31, 1995
<TABLE>
<CAPTION>
Money Market Bond Large Cap Small Capital
Fund Fund Stock Fund Fund
------------ ----------- ----------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments, at fair value .... $ 1,215,855 $ 980,294 $ 1,778,665 $ 806,286
Receivables:
Accrued income (loss) ..... (4,178) (5,375) 11,398 7,286
Receivable from employer 2,302
Loans to participants .....
----------- ----------- ----------- ----------
Net assets available
for benefits ...... $ 1,213,979 $ 974,919 $ 1,790,063 $ 813,572
=========== =========== =========== ==========
(Re-Stub Table)
WSFS
Financial
International Common
Fund Fund Loan Fund Total
------------- ---------- --------- ------------
Assets:
Investments, at fair value .... $ 469,042 $ 4,979,678 $ 10,229,820
Receivables:
Accrued income (loss) ..... 4,800 11,726 25,657
Receivable from employer 2,302
Loans to participants...... $ 408,593 408,593
--------- ----------- --------- ------------
Net assets available
for benefits....... $ 473,842 $ 4,991,404 $ 408,593 $ 10,666,372
========= =========== ========= ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 1996
<TABLE>
<CAPTION>
Money Market Bond Large Cap Small Capital
Fund Fund Stock Fund Fund
------------ ----------- ----------- -------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Net realized and unrealized
appreciation in fair value of
investments ...................................... $ 20,244 $ 437,665 $ 181,293
Interest and dividends ............................ $ 66,786 (23) 140 177
----------- ----------- ----------- -----------
66,786 20,221 437,805 181,470
----------- ----------- ----------- -----------
Contributions:
Employer .......................................... 31,399 17,045 26,954 16,916
Employee .......................................... 59,479 49,314 122,255 93,459
----------- ----------- ----------- -----------
90,878 66,359 149,209 110,375
----------- ----------- ----------- -----------
Transfers from other qualified plans
on behalf of participants ......................... 6,166
----------- ----------- ----------- -----------
Total additions ....................................... 157,664 86,580 593,180 291,845
----------- ----------- ----------- -----------
Participant withdrawals from
net assets ........................................ (226,291) (128,173) (248,021) (240,178)
Supplemental interfund transfers and
employee contributions ............................ 81,777 (22,143) 189,026 72,354
Net transfers to loan fund ............................ (25,794) (5,688) 3,914 43,174
----------- ----------- ----------- -----------
Net increase (decrease) ............................... (12,644) (69,424) 538,099 167,195
Net assets available for benefits:
Beginning of year ................................. 1,213,979 974,919 1,790,063 813,572
----------- ----------- ----------- -----------
End of year ....................................... $ 1,201,335 $ 905,495 $ 2,328,162 $ 980,767
=========== =========== =========== ===========
</TABLE>
<PAGE>
(Re-Stub Table)
<TABLE>
<CAPTION>
WSFS
Financial
International Common Loan
Fund Stock Fund Fund Total
------------- ---------- ----- -----
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Net realized and unrealized
appreciation in fair value of
investments.................... $ 44,602 $ 409,839 $1,093,643
Interest and dividends.......... 313 104,380 $ 50,666 222,439
--------- ---------- --------- ----------
44,915 514,219 50,666 1,316,082
--------- ---------- --------- ----------
Contributions:
Employer........................ 14,413 547,745 654,472
Employee........................ 58,460 103,645 486,612
--------- ---------- --------- ----------
72,873 651,390 1,141,084
--------- ---------- --------- ----------
Transfers from other qualified plans
on behalf of participants...... 70,748 76,914
76,914 --------- ---------- --------- ----------
Total additions .................... 117,788 1,236,357 50,666 2,534,080
--------- ---------- --------- ----------
Participant withdrawals from
net assets...................... (94,665) (735,020) (65,655) (1,738,003)
Supplemental interfund transfers and
employee contributions.......... 10,353 (331,367)
Net transfers to loan fund ......... 3,650 (61,058) 41,802
--------- ---------- -------- ----------
Net increase (decrease)............. 37,126 108,912 26,813 796,077
Net assets available for benefits:
Beginning of year............... 473,842 4,991,404 408,593 10,666,372
--------- ---------- --------- -----------
End of year .................... $ 510,968 $5,100,316 $ 435,406 $11,462,449
========= ========== ========= ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 1995
<TABLE>
<CAPTION>
Money Market Bond Large Cap Small Capital
Fund Fund Stock Fund Fund
------------ ----------- ---------- -------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Net realized and unrealized
appreciation in fair value of
investments ....................... $ 156,027 $ 451,398 $ 152,993
Interest and dividends .............. $ 76,361 352 3,559 5,666
------------ ----------- --------- ---------
76,361 156,379 454,957 158,659
------------ ----------- --------- ---------
Contributions:
Employer ........................... 34,476 18,599 27,264 23,071
Employees .......................... 73,379 60,810 124,988 106,213
------------ ----------- --------- ---------
107,855 79,409 152,252 129,284
------------ ----------- --------- ---------
Transfers from other qualified plans
on behalf of participants .......... 714 1,260
------------ ----------- --------- ---------
Total additions ........................ 184,216 235,788 607,923 289,203
------------ ----------- --------- ---------
Participant withdrawals from
net assets ......................... (158,307) (65,851) (119,908) (18,804)
Supplemental interfund transfers and
employee contributions ............. (12,234) 17,296 23,754 (7,960)
Net transfers to loan fund ............. 18,354 (11,970) (16,848) (9,641)
------------ ----------- --------- ---------
Net increase ...................... 32,029 175,263 494,921 252,798
Net assets available for benefits:
Beginning of year .................. 1,181,950 799,656 1,295,142 560,774
------------ ----------- ---------- ---------
End of year ........................ $ 1,213,979 $ 974,919 $1,790,063 $ 813,572
============ =========== ========== =========
</TABLE>
<PAGE>
(Re-Stub Table)
<TABLE>
<CAPTION>
WSFS
Financial
International Common
Fund Stock Fund Loan Fund Total
------------ ----------- ----------- ----------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Net realized and unrealized
appreciation in fair value of
investments.......................... $38,946 $ 2,280,760 $ 3,080,124
Interest and dividends.................. (56) 106,199 $ 37,681 229,762
------------ ----------- ----------- ------------
38,890 2,386,959 37,681 3,309,886
------------ ----------- ----------- ------------
Contributions:
Employer.............................. 17,583 1,210,122 1,331,115
Employees............................. 77,279 81,292 523,961
------------ ----------- ----------- ------------
94,862 1,291,414 1,855,076
------------ ----------- ----------- ------------
Transfers from other qualified plans
on behalf of participants............. 357 8,376 10,707
------------ ----------- ----------- ------------
Total additions......................... 134,109 3,686,749 37,681 5,175,669
------------ ----------- ----------- ------------
Participant withdrawls from
net assets............................ (11,859) (301,612) (14,189) (690,530)
Supplemental interfund transfers and
employee contributions................ (61,137) 181,067 140,786
Net transfers to loan fund.............. 8,891 (6,191) 17,405
------------ ---------- ----------- ------------
Net increase.......................... 70,004 3,560,013 40,897 4,625,925
Net assets available for benefits:
Beginning of year..................... 403,838 1,431,391 367,696 6,040,447
------------ ---------- ----------- ------------
End of year......................... $ 473,842 $4,991,404 $ 408,593 $ 10,666,372
============ ========== =========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Money Market Bond Large Cap Small Cap
Fund Fund Stock Fund Fund
------------ ----------- ---------- ----------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net realized and unrealized
appreciation (depreciation) in
fair value of investments............ $ (29,086) $ (61,915) $ 10,762
Interest and dividends ................. $ 49,865 75 157
------------ ----------- ---------- ----------
49,865 (29,011) (61,915) 10,919
------------ ----------- ---------- ----------
Contributions:
Employer................................ 23,228 21,821 26,184 18,415
Employees .............................. 53,727 65,261 102,190 70,568
------------ ----------- ---------- ----------
76,955 87,082 128,374 88,983
------------ ----------- ---------- ----------
Transfers from other qualified plans
on behalf of participants...............
------------ ----------- ---------- ----------
Total additions ............................ 126,820 58,071 66,459 99,902
------------ ----------- ---------- ----------
Participant withdrawals from
net assets ............................. (108,045) (30,863) (68,069) (5,674)
Supplemental interfund transfers
and employee contributions ............. 763,815 (124,318) 150,801 (435,079)
Net transfers among funds................... (643 466) 147,190 (3,213) 447,085
------------ ----------- ---------- ----------
Net increase (decrease) ................ 139,124 50,080 145,978 106,234
Net assets available for benefits:
Beginning of year....................... 1,042,826 749,576 1,149,164 454,540
------------ ----------- ---------- ----------
End of year ............................ $1,181,950 $ 799,656 $1,295,142 $ 560,774
========== ========== ========== ==========
</TABLE>
<PAGE>
(Re-Stubbed Table)
<TABLE>
<CAPTION>
WSFS WSFS
Financial Financial
International Common Preferred
Fund Stock Fund Stock Fund Loan Fund Total
------------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net realized and unrealized
appreciation (depreciation) in
fair value of investments............ $ (1,025) $ (186,306) $ 36,628 $ (230,942)
Interest and dividends.................. 148 726 $ 32,174 83,145
---------- ----------- ----------- ----------- ----------
(877) (185,580) 36,628 32,174 (147,797)
---------- ----------- ----------- ----------- ----------
Contributions:
Employer................................ 11,633 303,118 860 405,259
Employees .............................. 52,408 40,001 3,156 387,311
---------- ----------- ----------- ----------- ----------
64,041 343,119 4,016 792,570
---------- ----------- ----------- ----------- ----------
Transfers from other qualified plans
on behalf of participants............... 545 545
---------- ----------- ----------- ----------- ----------
Total additions ............................ 63,709 157,539 40,644 32,174 645,318
---------- ----------- ----------- ----------- ----------
Participant withdrawals from
net assets ............................. (5,497) (41,949) (78,515) (4,283) (342,895)
Supplemental interfund transfers
and employee contributions ............. (314,566) 177,182 92,462 (14,037) 296,260
Net transfers among funds................... 325,671 557,143 (606,243) (224,167)
---------- ----------- ----------- ----------- ----------
Net increase (decrease) ................ 69,317 849,915 (551,652) (210,313) 598,683
Net assets available for benefits:
Beginning of year....................... 334,521 581,476 551,652 578,009 5,441,764
---------- ----------- ----------- ----------- ----------
End of year ............................ $ 403,838 $1,431,391 $ $ 367,696 $6,040,447
========== ========== ============ ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Notes to Financial Statements
Note 1 - Description of Plan:
The purpose of the Plan is to encourage and assist employees in following a
systematic savings program suited to their individual long-term financial
objectives. The Plan is subject to the provisions of the Employees Retirement
Income Security Act of 1974 (ERISA). The following description of the WSFS
Financial Corporation 401(k) Savings and Retirement Plan (the "Plan"), provides
only general information. Participants should refer to the Plan Agreement or the
Summary Plan Description for a more complete description of the Plan's
provisions.
Plan Amendment:
Effective July 1, 1993, the Plan was amended with the most notable changes being
the addition of two new investment funds (Small Cap and International Stock
Funds), increased employer contributions and a new vesting schedule for employer
contributions. Each of these amendments is discussed further in the captions
that follow.
Eligibility:
All full- and part-time employees of WSFS Financial Corporation or its
subsidiaries ("the Employers") who were employed on or before June 30, 1993 were
eligible to participate on the first of the month following 90 days of service.
Employees hired after June 30, 1993 are eligible to participate following the
completion of one year of continuous employment, 1,000 hours of service and
attainment of age 21.
Contributions:
Participants may authorize the Employers to make payroll deductions under the
Plan from 1% to 15% of their base salary not to exceed $9,500 in 1996. The
percentage contribution may be increased, decreased, revoked or resumed at any
time during the year. Such changes are effective as of the next pay period.
Contributions made by participants are credited to their individual accounts and
are made on a pre-tax basis assuming applicable regulations set forth in the
Internal Revenue Code are satisfied.
All contributions made by the Employers on participants' behalf are also on
a pre-tax basis. The Employers' contributions to the Plan are made monthly and
comprise the following:
1. Company Matching Contribution - An employer matching contribution program
was implemented effective July 1, 1993. The Company matches 25% of the
employee's contribution up to 6%. The matching contribution is in the form
of WSFS Financial common stock.
2. Employer Discretionary Profit Sharing Contribution - Effective July 1,
1993, the Company implemented a profit sharing program. The allocation
formula was amended and effective October 1, 1995. The contribution for
each eligible participant is calculated on a pro-rata basis of the
<PAGE>
Participant's compensation in relation to the total compensation of all
participants. The profit sharing contribution is in the form of WSFS
Financial common stock and consists of two parts:
o Base Contribution - Awarded quarterly as predetermined
targets are achieved.
o Supplemental Contribution - Awarded at year end or
shortly thereafter in the event the Company equalled or
exceeded budgeted targets for the entire year.
During the year ended December 31, 1996, the Board of Directors approved a
Supplemental Contribution of $140,000 to the 401(K) Plan. The contribution
was invested in WSFS Common Stock and distributed to the Plan for the year
ended December 31, 1996. The distribution to Plan participants was
calculated according to the amended formula discussed above.
3. Excess Flexible Benefit Funds - Under the Employers' BeneFlex programs,
employees are provided a fixed amount of funds by the Employer which can be
used to purchase optional employee benefits. In lieu of purchasing such
benefits, employees may direct all or part of these funds to be contributed
to the Plan on their behalf.
Participants' accounts:
Participants' accounts are credited for their contributions and the Employers'
contribution made on their behalf. Participants' accounts are also credited with
an allocation of the earnings or losses of the Plan fund in which each
participant's account is invested based upon the change in unit share price of
all funds and for the money market fund upon the ratio of the account balance to
the total of all participants' account balances in that fund.
<PAGE>
Vesting:
All employee contributions are 100% vested and are not subject to forfeiture for
any reason. Employees hired on or before June 30, 1993 are also 100% vested in
the Employer's contributions. Employer contributions which are forfeited by
participants reduce future Employer contributions. Employees hired after June
30, 1993 will become vested in the Employer's contribution as follows:
Year of Vested
Service Percentages
------- -----------
0-2 0%
3 20%
4 40%
5 60%
6 80%
7 100%
Withdrawals:
Participants' accounts are segregated between pre-January 1, 1988 and
post-January 1, 1988 contributions. Employee contributions made subsequent to
January 1, 1988 are made on a pre-tax basis and withdrawals are subject to tax
and, in certain instances, penalty. Effective January 1, 1993, the Plan is
required to withhold federal income taxes at a flat rate of 20% on the taxable
portion of withdrawals that are not directly rolled over into an Individual
Retirement Account (IRA) or another qualified retirement plan. This withholding
tax does not apply to minimum distributions and annuity payments. Participant
interest payments on loans, which are recorded as earnings, are made on a
post-tax basis.
Under the Plan, participants may request hardship withdrawals of vested
contributions (but not income earned on contributions after December 31, 1988)
which must be approved by the Employee Benefits Committee and can only be made
for one of the following reasons:
1. Purchase of primary residence of the participant
2. Preservation of primary residence
3. Certain medical expenses of a participant or their dependents
4. Tuition for the next semester or quarter of post-secondary education of
the employee, spouse or dependents.
Hardship withdrawals are subject to applicable withholding taxes.
<PAGE>
Loan provision:
Under the Plan, participants may obtain loans up to 50% of their vested account
balance with a minimum loan of $1,000 and a maximum loan of $50,000. The
interest rate on loans is 10%. Interest paid on the loan is added to the
participant's account balance. Loans are secured by the participant's interest
in the Plan.
Investment funds:
Seven investment funds have been established with Wilmington Trust Company
(Trustee) for the investment of participants and Employers contributions. The
Small Cap Stock and International Funds were new investment options in 1993.
All contributions are allocated to the investment fund in accordance with the
participant's individual investment election. Participants may elect to invest
in increments of not less than 5% in any of the seven different funds.
Participants may change their investment elections monthly. The Trustee is
authorized to invest and reinvest the contributions allocated to each of the
investment funds, including all sales proceeds, investment income and other
payments received. A general description of the investments maintained in each
fund is described below.
Money Market Fund - This fund invests in fixed income securities, 80% of
which will mature within 90 days and 20% which will mature within one year.
This fund's objective is to provide maximum protection of principal value
with a yield consistent with short-term interest rates.
Bond Fund - This fund invests in a diversified mix of investment-quality,
fixed income securities. The overall sensitivity of the portfolio's value
to changes in interest rates is similar to that of the bond market as a
whole. The fund's objective is to provide an above-average investment
return consistent with the protection of principal value. An individual
choosing this fund should be willing to accept some fluctuation in market
value for capital appreciation opportunities
Large Cap Stock Fund - This fund invests in well-established, high quality
companies with large capitalizations (generally greater than $500 million).
The stocks are chosen for their above average potential for capital
appreciation and dividend growth.
Small Cap Stock Fund - This fund specializes in smaller companies,
generally those with market capitalizations under $500 million. The
portfolio includes both emerging and well-established companies across a
wide variety of industries. The fund's objective is to own stock in
companies whose earnings in aggregate are projected to grow substantially
faster than the economy.
International Fund - This fund invests exclusively in non-U.S. markets
across a wide range of industries and companies. Fund investments include
companies in large, well-established countries as well as in some of the
world's emerging markets.
WSFS Financial Common Stock - This fund invests solely in shares of the
common stock issued by WSFS Financial Corporation.
WSFS Financial Preferred Stock Fund - This fund was transferred to the WSFS
Financial Common Stock fund in 1994 when the Company's Preferred Stock was
converted into Common Stock at a ratio of 6.47 shares of Common Stock for
each share of Preferred Stock.
<PAGE>
The Loan fund is used solely to hold principal and interest payments on
outstanding loans and is not an investment alternative for contributions.
However, amounts paid on outstanding loans are allocated to the seven investment
funds in a manner consistent with the participant's individual investment
elections.
Administrative expenses:
Expenses relating to the administration of the Plan are paid by WSFS Financial
Corporation. Costs incurred by the Plan relating to voluntary removal of funds
in the form of loan proceeds or withdrawals are borne by the Plan participants.
Note 2 - Summary of Significant Accounting Policies:
Basis of presentation:
The accompanying financial statements are prepared on the accrual basis of
accounting. Revenues and expenses are recognized when earned or incurred in
accordance with generally accepted accounting principles.
Investment in securities:
Investments in short-term securities are valued at cost which approximates
market. Investments in Wilmington Trust commingled funds are valued at market
based on the quoted year-end market value of securities held by the funds. WSFS
Financial Corporation common and preferred stock is valued at the year-end
market price.
Revenue recognition and method of accounting:
The Plan records all transactions on an accrual basis. Investment income is
recorded as earned. The Plan calculates realized gains and losses and unrealized
appreciation and depreciation as the difference between market value and cost;
IRS Form 5500 calculates realized gains and losses and unrealized appreciation
and depreciation as the difference between market value at time of sale and
market value at the prior period year end.
Fund accounting for income:
The Wilmington Trust commingled funds invest interest and dividend income
within the fund to purchase more fund assets rather than distribute the income
among investors in the fund.
<PAGE>
Note 3 - Investments
The following table presents the fair values of investments. The investments in
the Bond, Large Cap Stock, Small Cap Stock and International Stock Funds
represent the Plan's undivided interest in the corresponding common or
commingled trust funds maintained by Wilmington Trust Company.
<TABLE>
<CAPTION>
December 31,
1996 1995
---- ----
<S> <C> <C>
Money Market Fund:
Wilmington Trust Company Money Market Fund............................... $1,173,847 $1,216,551
Cash and cash equivalents ............................................... 27,521 (696)
----------- ----------
$ 1,201,368 $ 1,215,855
----------- ----------
Bond Fund:
Wilmington Trust Company Employee Benefit Strategic
Fixed Income Fund (1996 - 55,752 units, 1995 -
61,731 units)...................................................... $ 905,415 $ 980,286
Wilmington Trust Company Money Market Fund............................... - 1,154
Cash and cash equivalents................................................ - (1,146)
----------- ----------
$ 905,415 $ 980,294
----------- ----------
Large Cap Stock Fund:
Wilmington Trust Company Value Equity Collective Fund
(1996 - 33,608 units, 1995 - 31,815 units)......................... $1,208,548 $ 931,534
Wilmington Trust Company Growth Equity Collective Fund
(1996 - 26,259 units, 1995 - 24,772) .............................. 1,119,689 847,191
Wilmington Trust Company Money Market Fund............................... - 1,897
Cash and cash equivalents................................................ - (1,957)
----------- -----------
$ 2,328,237 $ 1,778,665
----------- ----------
Small Cap Stock Fund:
Wilmington Trust Company Small Cap Portfolio Collective
Fund (1996 - 41,841 units, 1995 - 41,906 units) ................... $ 980,752 $ 806,262
Cash and cash equivalents ............................................... - 24
----------- -----------
$ 980,752 $ 806,286
----------- -----------
International Stock Fund:
Wilmington Trust Company International Equity Collective
Fund (1996 - 20,670, 1995 - 20,779 units) ......................... $ 510,954 $ 468,993
Cash and cash equivalents ............................................... - 49
----------- -----------
$ 510,954 $ 469,042
----------- -----------
</TABLE>
<PAGE>
Note 3 - Investments (Cont'd)
<TABLE>
<CAPTION>
December 31,
1996 1995
---- ----
<S> <C> <C>
WSFS Financial Common Stock Fund:
WSFS Financial Corporation common stock (1996 - 500,600
shares; 1995 - 552,824 shares) .................................... $ 5,100,113 $ 4,975,416
Wilmington Trust Company Money Market Fund............................... - 164,274
Cash and cash equivalents ............................................... - (160,012)
----------- -----------
$ 5,100,113 $ 4,979,678
----------- -----------
Total investments ................................................. $11,026,839 $10,229,820
=========== ===========
</TABLE>
<PAGE>
During the three year period ended December 31, 1996, the Plan's investments
(including investments bought, sold, as well as held during the year)
appreciated (depreciated) in value as follows:
<TABLE>
<CAPTION>
WSFS WSFS
Large Cap Small Cap Financial Financial
Bond Stock Stock International Common Preferred
Fund Fund Fund Stock Fund Stock Fund Stock Fund Total
----- --------- --------- ------------ ---------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1996
Net realized gain on sales of investments...... $ 23,489 $116,497 $ 63,018 $ 13,719 $ 337,017 $ 553,740
Net change in unrealized appreciation
(depreciation) of investments............ (3,245) 321,168 118,275 30,883 72,822 539,903
-------- -------- -------- --------- ---------- ------- ----------
$ 20,244 437,665 $181,293 $ 44,602 $ 409,839 $1,093,643
======== ======== ======== ========= ========== ======= ==========
1995
Net realized gain on sales of investments...... $ 5,181 $ 37,823 $ 19,400 $ 3,304 $ 78,397 144,105
Net change in unrealized appreciation
(depreciation) of investments............ 150,846 413,575 133,593 35,642 2,202,363 2,936,019
-------- -------- -------- --------- ---------- ------- ----------
$156,027 $451,398 $152,993 $ 38,946 $2,280,760 $3,080,124
======== ======== ======== ========= ========== ======= ==========
1994
Net realized gain (loss) on sales of investment. $ (1,873) $ 1,411 $ (852) $ (642) $ (44,665) $36,628 $ (9,993)
Net change in unrealized appreciation
(depreciation) of investments............ (27,213) (63,326) 11,614 (383) (141,641) (220,949)
-------- -------- -------- --------- ---------- ------- ----------
$(29,086) $(61,915) $ 10,762 $ (1,025) $ (186,306) $36,628 $ (230,942)
======== ======== ======== ========= ========== ======= ==========
</TABLE>
<PAGE>
Note 4 - Income Tax Status:
The Plan administrator has obtained a tax determination letter requesting
exemption from income tax under section 401(k) of the Internal Revenue Code.
Accordingly, no provision for income tax is included in the accompanying
financial statements.
Note 5 - Description of Priorities Upon Plan Termination:
Although WSFS Financial Corporation has not expressed any intention to terminate
the Plan, it may do so at any time. In the event of a termination, each
participant will receive a total distribution equal to their vested share of
each of the funds. All unvested Employer contributions revert to the Employer in
the event of a plan termination.
<PAGE>
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Supplemental Information
<PAGE>
Schedule I
WSFS FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Item 27a: Schedule of Assets Held for Investment Purposes
at December 31, 1996
(Supplemental Information)
<TABLE>
<CAPTION>
Shares or Current
Face Amount Description of investment Cost Value
- ----------- ------------------------- ---------- -------
<S> <C> <C> <C>
Money Market Fund:
1,201,368 Wilmington Trust Co. Money Market Fund.......................... $1,173,847 $1,173,847
Uninvested cash ................................................ 27,521 27,521
---------- ----------
1,201,368 1,201,368
---------- ----------
Bond Fund:
55,752 Wilmington Trust Co. Employee Strategic Benefit
Fixed Income Fund ......................................... 789,764 905,415
---------- ----------
Large Cap Stock Fund:
33,608 Wilmington Trust Co. Value Equity Collective Fund............... 798,231 1,208,548
26,259 Wilmington Trust Co. Growth Equity Collective Fund.... 812,955 1,119,689
---------- ---------
1,611,186 2,328,237
---------- ---------
Small Cap Stock fund:
41,841 Wilmington Trust Co. Small Cap Portfolio Collective
Fund ............................................................. 726,003 980,752
---------- ---------
International Stock Fund:
20,670 Wilmington Trust Co. International Equity Collective
Fund ...................................................... 450,653 510,954
---------- ---------
WSFS Financial Common Stock Fund:
500,600 WSFS Financial Common Stock...................... 2,742,499 5,100,113
---------- ---------
Loan Fund:
Loans to participant..................................... 435,406 435,406
---------- ---------
Total ................................................... $7,956,879 $11,462,245
---------- ---------
</TABLE>
<PAGE>
Schedule II
FINANCIAL CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
Item 27d: Schedule of Reportable Transactions
(Supplemental Information)
(single transaction or series
of transactions in one
issue aggregating 5% or
more of the market value of
plan assets at January 1,1996)
For the Year Ended December 31, 1996
<TABLE>
<CAPTION>
Sales Number of Names of
Name of party and --------------------------- Purchases and Sales and
description of assets Purchases Cost Proceeds Gain/(Loss) Issuances Redemptions
---------------------- ----------- ----------- ----------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
WSFS - Bond Fund $ 2,817,305 $ 1,386,313 $ 1,756,252 $ 369,939 250 362
WSFS - Short Term
Investment Fund 1,362,208 2,578,759 2,578,759 19 21
WSFS - Employer
Common Stock Fund 1,010,313 1,069,130 1,211,474
</TABLE>
