FROM FAILING TO PHENOMENAL

A financial book offers the inside story of the near demise and revival of a community bank.

In existence since 1832, the Wilmington Savings Fund Society, a Delaware bank, teetered on the brink of closure in 1991. Written by former bank CEO Schoenhals, in collaboration with Kriegstein, this book traces the bank’s journey from before its near-death experience through its successful rebirth. At first glance, the story may seem to have only local relevance, appealing primarily to those who live in the bank’s market—Delaware, Philadelphia, and Southeast Pennsylvania. Schoenhals writes in the preface that the book’s “one primary purpose” is for “past, current and future WSFS Associates and Customers” to gain a better understanding of the bank’s history. In that respect, the story is largely a memoir by Schoenhals and other officials quoted in the volume. But this well-told tale has broader implications; intertwined with the WSFS chronicle are historical details about a previously precarious economic time, insights into actions taken by federal regulators, and glimpses of how banks are capitalized. The work begins with a short, illustrated history of the bank, including an intriguing piece of trivia: In 1972, WSFS introduced what “was believed to be the world’s first debit card.” A chapter then offers a historical perspective on why the period from 1979 to 1990 was a particularly challenging time for financial institutions. Subsequent chapters explain in detail how WSFS got into serious trouble and was ultimately bailed out by investors. But this is not a dull, dry story; the lively account features sketches of bank, regulator, and investor personalities; the personal ups and downs faced by Schoenhals; a bailout plan written down on the proverbial napkin; and an amusing scene of a crucial slide presentation projected onto a bedsheet because no screen was available. Appended to the book is a section by Schoenhals of “stories that should not be lost.” In this insightful retrospective, he shares perhaps some of his most valuable observations about the bank’s culture, the “regulatory courage” it took to keep WSFS alive, and his seasoned views of leadership.

An engaging rags-to-riches business story.