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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 19,1999
WSFS FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
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Delaware 0-16668 22-2866913
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
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838 Market Street, Wilmington, Delaware 19801
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(Address, including zip code, of principal executive office)
(302) 792-6000
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
On September 7, 1999, WSFS Financial Corporation issued a press release
announcing its anticipated entry into the Internet-only banking sector through
the launch of everbank.com(TM), a wholly-controlled operating subsidiary of its
primary subsidiary Wilmington Savings Fund Society, F.S.B. ("WSFS"), a federally
chartered thrift.
To achieve its objective, WSFS has made an equity investment of $5.5
million in CustomerOne Financial Network, Inc. ("C1FN"), a company formed in
early 1998 for the express purpose of providing direct-to-customer marketing,
servicing, internet development and technology management for "branchless"
financial services. With its investment, WSFS is an approximately 25% owner and
the largest single shareholder in C1FN, and has received warrants for the
purchase of an additional 20% ownership. WSFS has the opportunity, and under
certain circumstances, the obligation, to invest an additional $5.4 million in
C1FN, at current offered ownership prices.
Under the planned structure, which requires Office of Thrift Supervision
approval, C1FN's Internet-only banking infrastructure will become part of
everbank.com(TM).
A copy of the press release of WSFS Financial Corporation announcing its
entry into Internet banking is being filed as Exhibit 99.1 to this report and is
incorporated herein by reference.
ITEM 7 EXHIBITS
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Exhibit
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99.1 Press Release
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WSFS FINANCIAL CORPORATION
(Registrant)
By: /s/ Marvin N. Schoenhals
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Marvin N. Schoenhals
President and Chief Executive Officer
Date: September 13, 1999
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INDEX TO EXHIBITS
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Sequential
Exhibit Page No.
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99.1 Press Release........................................ 5
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE: September 7, 1999
CONTACT: Martin Katz, Media: 302-571-7288 or [email protected]
Mark Turner, Investor Relations: 302-571-7160 or
[email protected]
WILMINGTON SAVINGS FUND SOCIETY, FSB (WSFS) ANNOUNCES PENDING LAUNCH OF
INTERNET-ONLY BANKING SUBSIDIARY AND INVESTMENT IN CUSTOMERONE FINANCIAL
NETWORK, INC.
Wilmington, DE -- WSFS Financial Corporation (NASDAQ/NMS: WSFS), through its
primary subsidiary, WSFS, FSB (WSFS), is pleased to announce the anticipated
launch of its new everbank.com(TM) subsidiary, marking a significant entrance
into the rapidly emerging Internet-only banking sector.
To achieve its objective of offering high value Internet-only banking to a
national clientele, WSFS has made a $5.5 million investment in CustomerOne
Financial Network, Inc. (C1FN), a company formed in early 1998 for the express
purpose of providing direct-to-consumer marketing, servicing, internet
development and technology management for "branchless" financial services. With
its investment, WSFS is an approximately 25% owner and the largest single
shareholder in C1FN, and has received warrants for the purchase of an additional
20% ownership. WSFS has the opportunity, and under certain circumstances, the
obligation, to invest an additional $5.4 million in C1FN, at current offered
ownership prices.
Under the planned structure, which requires Office of Thrift Supervision (OTS)
approval, C1FN's Internet-only banking infrastructure will become part of
everbank.com(TM), a wholly controlled subsidiary of WSFS. Collectively, the
combined management of the new everbank.com(TM) subsidiary will have over 125
years experience in direct marketing and the management of remote clientele for
banking and financial services. It's planned that everbank.com(TM) customers,
through the Internet and a 24 hours a day, seven days a week live call center,
will be provided a full array of superior value products, including deposit
accounts, secure web banking, online bill payment, credit cards and instant
decision home loans. Through C1FN, brokerage, investment advisory services and
insurance quote services will be available.
"Developments over the past year have convinced us that Internet-only banking
will be a significant part of the future of financial services. We also
understand the very specialized skills and dedicated focus needed to make a
fully branchless Internet-only banking operation a success," said WSFS Chairman,
President and CEO, Marvin Schoenhals, adding, "We are also aware that it is
difficult to develop these skills and focus inside a traditional branch-bank
environment. We believe the management expertise of the new everbank.com(TM)
subsidiary will offer WSFS a rapid and effective entrance into this market.
What's more, this will be done in a targeted way, so as to preserve not only the
integrity of WSFS, the successful community bank that has been built over the
last 167 years, but also our current WSFS Bank
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Internet delivery channel, NetConnect(sm), which was rolled out to our
traditional WSFS customers last month."
According to a June 1999 study by Goldman Sachs, only 4 percent of US households
currently use online banking. The report goes on to forecast that the number of
online bank customers is expected to jump to about 20% of all US households by
2002.
Everbank.com(TM) plans to focus the marketing efforts on higher net worth
individuals who have demonstrated their comfort with remotely fulfilled,
self-directed financial services. "The target market consists of approximately 4
to 5 million individuals, and we hope to capture a 4 to 5 percent market share.
The business plan is extremely focused, and members of the everbank.com(TM)
management team have, in prior careers, spent the last 15 to 20 years catering
to, and successfully selling to this profitable niche," says Frank O. Trotter,
Chairman and President of C1FN.
Subject to regulatory approval, WSFS expects to roll out everbank.com(TM) to the
public in the fourth quarter of 1999. Commensurate with the operations of a new
venture, WSFS expects its costs and early operating losses to be approximately
$.01 to $.02 per share, per quarter through the startup phase, which begins in
the third quarter of 1999 and is expected to last two to four quarters.
WSFS Financial Corporation is a $1.7 billion financial services company. Its
principal subsidiary, WSFS, operates twenty-three retail-banking offices in New
Castle County and Dover, Delaware, as well as Chester, Delaware, and Montgomery
Counties in Pennsylvania. Other operating subsidiaries include WSFS Credit
Corporation; Community Credit Corporation; and 838 Investment Group, Inc. For
more information, please visit our website at www.wsfsbank.com.
This release contains forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act, that involve risk and uncertainty. It
should be noted that a variety of factors could cause actual results to differ
materially from the anticipated results or other expectations expressed in the
Company's forward-looking statements. The risks and uncertainties include, but
are not limited to, regulatory approvals, the growth of the economy, interest
rate movements, timely development of technology enhancements for its products
and operating systems, the impact of competitive products, services and pricing,
customer-based requirements, Congressional legislation, and similar matters.
Readers of this release are cautioned not to place undue reliance on
forward-looking statements which are subject to influence by the named risk
factors and unanticipated future events. Actual results, accordingly, may differ
materially from management expectations. WSFS Financial Corporation does not
undertake and specifically disclaims any obligation, to publicly release the
result of any revisions that may be made to any forward-looking statements to
reflect the occurrence of anticipated or unanticipated events or circumstances
after the date of such statements.
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