WSFS Reports 1Q 2025 EPS of $1.12, ROA of 1.29% and NIM of 3.88%; Board Approved 13% Dividend Increase and Additional 10% Share Repurchase Authorization

Published: 2025-04-24 16:17:03 ET WSFS

WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today announced its financial results for the first quarter of 2025.

Selected financial results and metrics are as follows:

(Dollars in millions, except per share data)

1Q 2025

4Q 2024

1Q 2024

Net interest income

175.2

178.2

175.3

Fee revenue

80.9

83.3

75.9

Total net revenue

256.1

261.5

251.1

Provision for credit losses

17.4

8.0

15.1

Noninterest expense

151.8

169.1

149.1

Net income attributable to WSFS

65.9

64.2

65.8

Pre-provision net revenue (PPNR)(1)

104.3

92.4

102.1

Earnings per share (EPS) (diluted)

1.12

1.09

Return on average assets (ROA) (a)

1.29

1.21

1.28

Return on average equity (ROE) (a)

10.1

9.7

10.7

Fee revenue as % of total net revenue

31.5

31.8

30.2

Efficiency ratio

59.2

64.6

59.3

See “Notes”

GAAP results for the quarterly periods shown included items that are excluded from core results. Below is a summary of the financial effects of these items. For additional detail, refer to the Non-GAAP Reconciliation in the back of this earnings release.

1Q 2025

4Q 2024

1Q 2024

(Dollars in millions, except per share data)

Total (pre-tax)

Per share (after-tax)

Total (pre-tax)

Per share (after-tax)

Total (pre-tax)

Per share (after-tax)

Fee revenue

—

0.1

—

(0.6

)

(0.01

)

Noninterest expense

0.3

—

2.1

0.03

1.5

0.02

Income tax impacts

(0.1

)

—

(0.4

)

(0.01

)

(0.5

)

(0.01

)

(1) As used in this press release, PPNR is a non-GAAP financial measure that adjusts net income determined in accordance with GAAP to exclude the impacts of (i) income tax provision and (ii) provision for credit losses. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

CEO Commentary

Rodger Levenson, Chairman, CEO and President, said, "Despite uncertain economic conditions, WSFS continued to perform well in the first quarter with a core EPS(2) of $1.13 and a core ROA(2) of 1.29%.

"These results were driven by the net interest margin of 3.88%, which expanded 8bps from the previous quarter. Loans and deposits were essentially flat, reflecting expected seasonal activity and overall caution from Clients.

"Core fee revenue(2) grew 6% from the first quarter of 2024, driven by continued strong performance in the Wealth and Trust segment which grew 19% year-over-year.

"Credit metrics remained stable, excluding the impact of a charge-off related to an existing non-performing office-related credit. In light of the recent slowing of economic activity, we continue to closely monitor asset quality.

"As part of our normal capital planning process, the Board approved a 13% increase in the quarterly dividend to $0.17 per share, along with an additional share repurchase authorization of 10% of our outstanding shares as of quarter-end. These actions allow us to enhance shareholder value via the return of excess capital with increased flexibility of buybacks, depending on business performance and economic conditions."

(2) As used in this press release, core EPS, core ROA, and core fee revenue are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

Highlights for 1Q 2025:

(3) As used in this press release, core PPNR is a non-GAAP financial measures. This non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

First Quarter 2025 Discussion of Financial Results

Balance Sheet

The following table summarizes loan and lease balances and composition at March 31, 2025 compared to December 31, 2024 and March 31, 2024:

Loans and Leases

(Dollars in millions)

March 31, 2025

December 31, 2024

March 31, 2024

Commercial & industrial (C&I)(4)

4,651

4,652

4,489

Commercial mortgage

3,982

4,031

3,877

Construction

869

832

1,056

Commercial small business leases

636

648

634

Total commercial loans and leases

10,138

10,163

10,056

Residential mortgage

992

888

Consumer

2,033

2,086

2,066

Gross loans and leases

13,163

102

13,241

102

13,010

102

ACL

(188

)

(195

)

(193

)

Net loans and leases

12,975

100

13,046

100

12,817

100

At March 31, 2025, WSFS’ gross loan and lease portfolio decreased $78.4 million, or 1% (2% annualized), when compared with December 31, 2024. Excluding the continued runoff of the Spring EQ and Upstart portfolios, gross loans and leases decreased $12.8 million, or less than 1% annualized, as some borrowers delayed actions given uncertainty in the macroeconomic and policy environment. The decline was primarily driven by a decrease of $48.6 million in commercial mortgage, partially offset by a $36.6 million increase in construction loans.

Gross loans and leases at March 31, 2025 increased $153.2 million, or 1%, when compared with March 31, 2024. Total commercial loans and leases grew $82.5 million, or 1%, driven by increases of $162.3 million (4%) in C&I and $105.2 million (3%) in commercial mortgage. These increases were partially offset by a $187.7 million decrease in construction loans, partially driven by migration into commercial mortgages and C&I loans (including owner-occupied real estate). Residential mortgage increased $104.0 million, or 12%, due to the retention of certain loans based on favorable yields and relationship opportunities, and consumer loans decreased $33.3 million, or 2%, primarily due to runoff in the Upstart portfolio.

(4) Includes owner-occupied real estate.

The following table summarizes client deposit balances and composition at March 31, 2025 compared to December 31, 2024 and March 31, 2024:

Client Deposits

(Dollars in millions)

March 31, 2025

December 31, 2024

March 31, 2024

Noninterest demand

4,947

4,988

4,653

Interest-bearing demand

2,882

2,973

2,856

Savings

1,463

1,466

1,577

Money market

5,487

5,472

5,206

Total core deposits

14,779

14,899

14,292

Time deposits

2,100

2,131

1,895

Total client deposits

16,879

100

17,030

100

16,187

100

Total client deposits decreased by $150.7 million, or 1% (4% annualized), when compared with December 31, 2024, primarily due to seasonality and expected outflows in Trust deposits, partially offset by growth from Consumer Banking. Noninterest demand deposits comprised 29% of client deposits, consistent with recent levels and reflecting the strength of our core deposit base.

Total client deposits increased by $691.9 million, or 4%, from March 31, 2024, driven by broad-based growth across the Consumer, Commercial, and Trust businesses, with growth in noninterest demand, money market, and time deposits. Noninterest demand deposits increased 6% compared to March 31, 2024.

Core deposits were 88% of total client deposits, with a weighted average cost of 138bps for the quarter. No- and low-cost checking accounts represented 46% of total client deposits with a weighted average cost of 38bps for the quarter.

The deposit base remains well-diversified, with 50% of quarterly average client deposits coming from the Commercial, Small Business, and Wealth and Trust business lines. The loan-to-deposit ratio(5) was 77% at March 31, 2025, providing continued capacity to fund future loan growth.

(5) Ratio of net loans and leases to total client deposits.

Net Interest Income

Three Months Ending

(Dollars in millions)

March 31, 2025

December 31, 2024

March 31, 2024

Net interest income before purchase accretion

173.1

175.8

173.1

Purchase accounting accretion

2.1

2.4

2.2

Net interest income

175.2

178.2

175.3

Net interest margin before purchase accretion

3.83

3.75

3.79

Purchase accounting accretion

0.05

Net interest margin

3.88

3.80

3.84

Net interest income decreased $3.0 million, or 2% (not annualized), compared to 4Q 2024, driven by lower loan yields due to the full quarter impact of the Fed rate cuts in late 2024, typical impacts from day-count in the first quarter, and lower loan volume. The decrease was partially offset by lower deposit and wholesale funding costs. Net interest income decreased $0.1 million compared to 1Q 2024.

Total loan yields were 6.67%, a decrease of 13bps when compared to 4Q 2024, due to the rate cuts in late 2024. Total client deposit costs were 1.71%, a decrease of 12bps, while interest-bearing deposit costs were 2.43%, a decrease of 22bps compared to the prior quarter. The deposit cost decreases reflect deposit repricing actions taken in response to the Fed rate cuts.

Net interest margin of 3.88%, an increase of 8bps compared to 4Q 2024 and 4bps from 1Q 2024, reflects the aforementioned deposit repricing actions and a reduction in wholesale funding, partially offset by the lower loan yields mentioned above.

Asset Quality

(Dollars in millions)

March 31, 2025

December 31, 2024

March 31, 2024

Problem assets(6)

683.7

645.0

573.2

Delinquencies

147.7

121.8

104.5

Nonperforming assets

116.9

127.4

67.2

Net charge-offs

24.6

10.2

8.6

Total net credit costs (r)

17.6

8.7

16.2

Problem assets to total Tier 1 capital plus ACL

27.83

26.21

23.42

Classified assets to total Tier 1 capital plus ACL

20.80

21.40

17.56

Ratio of nonperforming assets to total assets

0.57

0.61

0.33

Delinquencies to gross loans (n)

1.13

0.92

0.81

Ratio of quarterly net charge-offs to average gross loans

0.76

0.31

0.27

Ratio of allowance for credit losses to total loans and leases (q)

1.43

1.48

Ratio of allowance for credit losses to nonaccruing loans

168

160

292

See “Notes”

Problem assets to total Tier 1 capital plus ACL ratio was 27.83%, an increase of 162bps compared to December 31, 2024, primarily driven by downgrades to two multifamily relationships which are well-collateralized and remain current.

Delinquencies of $147.7 million, or 113bps of gross loans, increased $25.9 million, or 21bps, compared to December 31, 2024, primarily due to increased delinquencies in the C&I portfolio.

Net charge-offs increased $14.3 million to $24.6 million, or 76bps (annualized) of average gross loans during the quarter, driven by a $15.9 million charge-off of an existing nonperforming C&I loan to a fund that is invested in office properties. Excluding this loan, net charge-offs would have been 27bps of average gross loans during the quarter, reflecting continued decreases in charge-offs related to NewLane and Upstart.

Nonperforming assets decreased $10.5 million, or 4bps of total assets, compared to December 31, 2024, primarily due to the charge-off mentioned above, partially offset by the migration of a land development loan.

Total net credit costs were $17.6 million in the quarter, an increase of $8.9 million, compared to $8.7 million in 4Q 2024, primarily driven by the aforementioned charge-off.

The ACL was $188.1 million as of March 31, 2025, a decrease of $7.2 million from December 31, 2024, which includes an $8.4 million release related to the charge-off mentioned above and $2.8 million from the continued runoff of the Upstart portfolio. The ACL coverage ratio was 1.43%, a decrease of 5bps compared to December 31, 2024. Excluding the impacts of the C&I charge-off and Upstart runoff, the ACL coverage ratio would have increased 3bps, primarily due to economic forecast changes.

(6) Problem assets includes all criticized, classified, and nonperforming loans as well as other real estate owned (OREO).

Core Fee Revenue(7)

Core fee revenue (noninterest income) of $80.9 million decreased $2.3 million, or 3% (not annualized), compared to $83.2 million from 4Q 2024. The decrease was driven by declines of $0.8 million in Cash Connect® fees primarily due to lower bailment volume and the lower interest rate environment (which was more than offset in noninterest expense), $0.6 million in Private Wealth Management due to lower AUM-based fees, and $0.7 million in other bank fees. The decrease was partially offset by modest increases in Institutional Services and WSFS Mortgage fees.

Core fee revenue increased $4.4 million, or 6%, compared to 1Q 2024. The increase was primarily driven by a 19% increase in Wealth and Trust, with double-digit increases in Institutional Services and BMT of DE. The increase was partially offset by a decline in Cash Connect® and Capital Markets fees. The decline in Cash Connect® was primarily due to the impact of interest rates and lower managed service volumes, partially offset by higher bailment volumes.

For 1Q 2025, our core fee revenue ratio(7) was 31.5% compared to 31.8% in 4Q 2024 and 30.3% in 1Q 2024. Fee revenue is a competitive differentiator providing a well-diversified source of revenue with further growth opportunities expected.

(7) As used in this press release, core fee revenue and core fee revenue ratio is a non-GAAP financial measure. This non-GAAP financial measure excludes certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

Core Noninterest Expense(8)

Core noninterest expense of $151.5 million decreased $15.5 million, or 9% (not annualized), compared to 4Q 2024. Cash Connect® accounted for $5.3 million of the decrease, including $2.8 million from external funding costs due to seasonally lower volumes and lower rates, as well as $1.9 million from nonrecurring items related to a Client termination in the fourth quarter. In addition, salaries and benefits declined by $5.0 million, reflecting lower incentive payments made for 2024 and lower medical costs. Professional fees decreased from an elevated level in the fourth quarter by $2.4 million due to lower legal, compliance, and risk-related fees.

Core noninterest expense increased $3.9 million, or 3%, compared to 1Q 2024. The increase was largely driven by $6.7 million in higher salaries and benefits as a result of talent additions in key business areas, performance-based increases, and higher medical costs. This increase was partially offset by a $2.6 million decrease in Cash Connect® external funding costs.

Our core efficiency ratio(8) was 59.0% in 1Q 2025, compared to 63.8% in 4Q 2024 and 58.6% in 1Q 2024.

Income Taxes

We recorded a $21.1 million income tax provision in 1Q 2025, compared to $20.2 million in 4Q 2024 and $21.2 million in 1Q 2024. The increase compared to 4Q 2024 and the decrease compared to 1Q 2024 is primarily due to income before taxes.

The effective tax rate was 24.3% in 1Q 2025 compared to 23.9% in 4Q 2024 and 24.4% in 1Q 2024. The increase in effective tax rate compared to 4Q 2024 is attributable to higher state taxes and reduced federal tax credits.

(8) As used in this press release, core noninterest expense and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

Capital Management

In line with our annual capital planning process, the Board of Directors approved a 13% increase in the quarterly cash dividend to $0.17 per share of common stock and an incremental share repurchase authorization of 10% of outstanding shares as of March 31, 2025. The dividend will be paid on May 23, 2025 to stockholders of record as of May 9, 2025. As a result of the incremental authorization, WSFS had 8,033,974 shares, or approximately 14% of outstanding shares as of March 31, 2025, available for repurchase. Capital levels remain strong and are all substantially in excess of the “well-capitalized” regulatory benchmarks at March 31, 2025, with Common Equity Tier 1 capital ratio and Tier 1 capital ratio of 14.10%, Tier 1 leverage ratio of 11.17%, and Total Risk-based capital ratio of 15.89%.

During 1Q 2025, WSFS repurchased 1,027,214 shares of common stock for an aggregate of $53.8 million and paid quarterly dividends of $8.8 million. Total capital returned to stockholders through share repurchases and quarterly dividends was $62.6 million.

WSFS’ total stockholders’ equity increased $81.9 million, or 3% (not annualized), during 1Q 2025. The increase was primarily due to a decrease in accumulated other comprehensive loss of $75.4 million, driven by market-value increases on available-for-sale investment securities, and quarterly earnings of $65.9 million. The increase was partially offset by capital returns of $62.6 million to stockholders.

WSFS’ tangible common equity(9) increased $86.1 million, or 5% (not annualized), compared to December 31, 2024, primarily due to the reasons described above. WSFS’ common equity to assets ratio increased 56bps to 13.00% during the quarter, and our tangible common equity to tangible assets ratio(9) was 8.63% at March 31, 2025, an increase of 55bps, compared to the prior quarter.

At March 31, 2025, book value per share was $46.31, an increase of $2.16, or 5% (not annualized), from December 31, 2024, and tangible book value per share was $29.25, an increase of $1.95, or 7% (not annualized), from December 31, 2024. These increases were due to the reasons described above. Book value per share increased $5.14, or 12%, and tangible book value per share increased $4.73, or 19%, compared to 1Q 2024.

(9) As used in this press release, tangible common equity and tangible common equity to tangible assets ratio are non-GAAP financial measures. These non-GAAP financial measures exclude goodwill and intangible assets and the related tax-effected amortization. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

Selected Business Segments (included in previous results): Wealth and Trust

The Wealth and Trust segment provides a broad array of planning and advisory services, investment management, trust services, credit and deposit products to individual, corporate, and institutional Clients.

Selected quarterly performance results and metrics are as follows:

(Dollars in millions)

March 31, 2025

December 31, 2024

March 31, 2024

Net interest income

20.3

23.1

19.7

Provision for credit losses

0.8

0.4

0.3

Fee revenue(10)

39.9

40.3

33.5

Noninterest expense(10)

30.0

29.9

26.4

Pre-tax income

29.4

33.1

26.5

Performance Metrics

Trust fee revenue (Institutional Services and BMT of DE)

24.3

24.1

17.8

Private Wealth Management fee revenue

14.8

15.3

14.8

AUM/AUA(11)

89,633

89,425

80,464

Wealth and Trust pre-tax income was $29.4 million, which decreased $3.8 million, or 11% (not annualized), compared to 4Q 2024. Net interest income drove the decline, as average deposits were $153.7 million lower than 4Q 2024. Fee revenue decreased slightly as a decline in Private Wealth Management, primarily from AUM declines in 4Q 2024, was largely offset by an increase in Institutional Services. Total noninterest expense was relatively flat compared to 4Q 2024.

Wealth and Trust pre-tax income increased $2.9 million, or 11%, compared to 1Q 2024, as higher fee revenue was partially offset by higher expenses. Fee revenue increased $6.4 million, or 19%, compared to 1Q 2024, due to growth in Institutional Services and BMT of DE. In Institutional Services, we continue to win market share and benefit from higher deal volumes with increases in agent and custody fees. Total noninterest expense increased $3.6 million driven by salaries and benefits expense from hiring new advisors and performance-based compensation as well as volume-driven expenses related to deal flow.

Net AUM of $8.9 billion at the end of 1Q 2025 decreased $0.2 billion, or 2% (not annualized), compared to 4Q 2024, and was relatively flat compared to 1Q 2024.

(10) Includes intercompany allocation of revenue and expense.

(11) Represents Assets Under Management and Assets Under Administration.

Cash Connect®

Cash Connect® is a premier provider of ATM vault cash, smart safe and cash logistics services in the United States, servicing non-bank ATMs and smart safes nationwide and supporting ATMs for WSFS Bank Clients with one of the largest branded ATM networks in our region.

Selected quarterly financial results and metrics are as follows:

(Dollars in millions)

March 31, 2025

December 31, 2024

March 31, 2024

Net revenue(12)

21.5

21.8

24.1

Noninterest expense(13)

19.9

25.2

23.3

Pre-tax income

1.6

(3.4

)

0.8

Performance Metrics

Average cash managed

1,407

1,585

1,843

Number of serviced non-bank ATMs and smart safes

38,214

38,574

46,031

Number of WSFS owned and branded ATMs

580

567

583

Net Profit Margin

7.38

(15.72

3.18

ROA

1.21

(2.63

0.83

Cash Connect® pre-tax income increased $4.9 million compared to 4Q 2024, as the prior quarter included costs associated with a terminated Client relationship. Excluding those costs, pre-tax income increased $0.2 million driven by pricing actions taken during the quarter and lower cost of funds on non-earning cash, partially offset by lower bailment volume. Noninterest expense decreased $5.3 million from 4Q 2024, driven by the Client termination in 4Q 2024 and lower external funding costs due to lower volumes and lower rate environment.

Pre-tax income increased $0.8 million from 1Q 2024 driven by lower expense associated with non-earning cash and a shift in product to higher margin services. Fee revenue decreased $2.6 million due to the lower rate environment and decreased managed-service volume. Noninterest expense decreased $3.4 million from 1Q 2024 driven by the lower rate environment, as well as lower insurance and armored carrier expense driven by volumes. The net profit margin increased to 7.38% compared to 3.18% in 1Q 2024, driven by pricing actions, a shift away from lower margin units, and rates.

The number of serviced non-bank ATMs and smart safes declined by 7,817 units, or 17% compared to 1Q 2024, primarily due to a shift away from lower margin units and the loss of the terminated Client relationship.

(12) Includes intercompany allocation of income and net interest income.

(13) Includes intercompany allocation of expense.

First Quarter 2025 Earnings Release Conference Call

Management will conduct a conference call to review 1Q 2025 results at 1:00 p.m. Eastern Time (ET) on Friday, April 25, 2025. Interested parties may access the conference call live on our Investor Relations website (https://investors.wsfsbank.com). For those who cannot access the live conference call, a replay will be accessible shortly after the event concludes through our Investor Relations website.

About WSFS Financial Corporation

WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region. As of March 31, 2025, WSFS Financial Corporation had $20.5 billion in assets on its balance sheet and $89.6 billion in assets under management and administration. WSFS operates from 115 offices, 88 of which are banking offices, located in Pennsylvania (58), Delaware (39), New Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Capital Management®, LLC, Bryn Mawr Trust®, The Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane Finance®, Powdermill® Financial Solutions, WSFS Institutional Services®, WSFS Mortgage®, and WSFS Wealth® Investments. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

Forward-Looking Statements

This press release contains estimates, predictions, opinions, projections and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. The words “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, difficult market conditions and unfavorable economic trends in the United States generally and in financial markets, particularly in the markets in which the Company operates and in which its loans are concentrated, including potential recessionary and other unfavorable conditions and trends related to housing markets, costs of living, unemployment levels, interest rates, supply chain issues, inflation, and economic growth; the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions; possible additional loan losses and impairment of the collectability of loans; the Company's level of nonperforming assets and the costs associated with resolving problem loans including litigation and other costs and complying with government-imposed foreclosure moratoriums; changes in market interest rates which may increase funding costs and reduce earning asset yields and thus reduce margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of the Company's investment securities portfolio, which could impact market confidence in the Company’s operations; the credit risk associated with the substantial amount of commercial real estate, commercial and industrial, and construction and land development loans in the Company's loan portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company's operations and potential expenses associated with complying with such regulations; the Company's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms; possible changes in trade, monetary and fiscal policies and stimulus programs, laws and regulations and other activities of governments, agencies, and similar organizations, and the uncertainty of the short- and long-term impacts of such changes; any impairments of the Company's goodwill or other intangible assets; the success of the Company's growth plans; failure of the financial and/or operational controls of the Company's Cash Connect® and/or Wealth and Trust segments; negative perceptions or publicity with respect to the Company generally and, in particular, the Company's trust and wealth management business; adverse judgments or other resolution of pending and future legal proceedings, and cost incurred in defending such proceedings; the Company's reliance on third parties for certain important functions, including the operation of its core systems, and any failures by such third parties; system failures or cybersecurity incidents or other breaches of the Company's network security, particularly given remote working arrangements; the Company's ability to recruit and retain key Associates; the effects of weather, including climate change, and natural disasters such as floods, droughts, wind, tornadoes, wildfires and hurricanes as well as effects from geopolitical instability, armed conflicts, public health crises and man-made disasters including terrorist attacks; the effects of regional or national civil unrest (including any resulting branch or ATM closures or damage); possible changes in the speed of loan prepayments by the Company's Clients and loan origination or sales volumes; possible changes in market valuations and/or the speed of prepayments of mortgage-backed securities (MBS) due to changes in the interest rate environment, and the related acceleration of premium amortization on prepayments in the event that prepayments accelerate; regulatory limits on the Company's ability to receive dividends from its subsidiaries and pay dividends to its stockholders; any reputation, credit, interest rate, market, operational, litigation, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above; any compounding effects or unexpected interactions of the risks discussed above; and other risks and uncertainties, including those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and other documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any duty to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company for any reason, except as specifically required by law. As used in this press release, the terms "WSFS," "the Company," "registrant," "we," "us," and "our" mean WSFS Financial Corporation and its subsidiaries, on a consolidated basis, unless the context indicates otherwise.

WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS SUMMARY STATEMENTS OF INCOME (Unaudited)

Three months ended

(Dollars in thousands, except per share data)

March 31, 2025

December 31, 2024

March 31, 2024

Interest income:

Interest and fees on loans

216,752

226,886

224,703

Interest on mortgage-backed securities

24,745

24,995

25,897

Interest and dividends on investment securities

2,186

2,188

2,184

Other interest income

7,195

9,270

8,838

250,878

263,339

261,622

Interest expense:

Interest on deposits

71,104

78,541

72,795

Interest on Federal Home Loan Bank advances

938

828

308

Interest on senior and subordinated debt

2,074

2,354

2,449

Interest on trust preferred borrowings

1,523

1,655

1,756

Interest on other borrowings

1,754

9,036

75,662

85,132

86,344

Net interest income

175,216

178,207

175,278

Provision for credit losses

17,350

8,036

15,138

Net interest income after provision for credit losses

157,866

170,171

160,140

Noninterest income:

Credit/debit card and ATM income

18,743

20,545

19,669

Investment management and fiduciary revenue

39,281

39,763

32,928

Deposit service charges

6,753

6,844

6,487

Mortgage banking activities, net

1,800

1,634

1,647

Loan and lease fee income

1,465

1,939

1,523

Realized gain on sale of equity investment, net

—

123

—

Bank-owned life insurance income

727

1,191

1,200

Other income

12,128

11,268

12,403

80,897

83,307

75,857

Noninterest expense:

Salaries, benefits and other compensation

82,477

87,503

75,806

Occupancy expense

9,893

9,118

9,479

Equipment expense

12,728

12,922

10,692

Data processing and operations expense

4,695

4,829

3,660

Professional fees

4,698

7,083

4,481

Marketing expense

1,695

1,969

1,782

FDIC expenses

2,578

2,912

3,982

Loan workout and other credit costs

240

646

1,071

Corporate development expense

208

Restructuring expense

260

2,193

—

Other operating expenses

32,472

39,890

37,911

151,795

169,126

149,072

Income before taxes

86,968

84,352

86,925

Income tax provision

21,101

20,197

21,202

Net income

65,867

64,155

65,723

Less: Net loss attributable to noncontrolling interest

(29

)

(47

)

(38

)

Net income attributable to WSFS

65,896

64,202

65,761

Diluted earnings per share of common stock:

1.12

1.09

Weighted average shares of common stock outstanding for fully diluted EPS

58,713,452

59,078,572

60,521,951

See “Notes”

WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS SUMMARY STATEMENTS OF INCOME (Unaudited) - continued

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

Performance Ratios:

Return on average assets (a)

1.29

1.21

1.28

Return on average equity (a)

10.13

9.66

10.68

Return on average tangible common equity (a)(o)

16.91

16.17

18.76

Net interest margin (a)(b)

3.88

3.80

3.84

Efficiency ratio (c)

59.16

64.57

59.28

Noninterest income as a percentage of total net revenue (b)

31.53

31.80

30.16

See “Notes”

WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(Dollars in thousands)

March 31, 2025

December 31, 2024

March 31, 2024

Assets:

Cash and due from banks

693,830

722,722

787,729

Cash in non-owned ATMs

322,520

430,320

186,522

Investment securities, available-for-sale

3,548,077

3,510,648

3,734,229

Investment securities, held-to-maturity

1,006,410

1,015,161

1,049,807

Other investments

39,552

31,765

35,397

Net loans and leases (e)(f)(l)

12,975,323

13,045,917

12,816,986

Bank owned life insurance

36,344

36,565

42,708

Goodwill and intangibles

983,882

988,160

1,000,344

Other assets

943,012

1,033,045

925,526

Total assets

20,548,950

20,814,303

20,579,248

Liabilities and Stockholders’ Equity:

Noninterest-bearing deposits

4,947,049

4,987,753

4,652,875

Interest-bearing deposits

11,932,012

12,042,055

11,534,329

Total client deposits

16,879,061

17,029,808

16,187,204

Federal Home Loan Bank advances

51,040

—

Other borrowings

267,052

332,567

1,124,958

Other liabilities

690,588

821,512

801,464

Total liabilities

17,887,741

18,234,927

18,113,626

Stockholders’ equity of WSFS

2,671,614

2,589,752

2,473,481

Noncontrolling interest

(10,405

)

(10,376

)

(7,859

)

Total stockholders' equity

2,661,209

2,579,376

2,465,622

Total liabilities and stockholders' equity

20,548,950

20,814,303

20,579,248

Capital Ratios:

Equity to asset ratio

13.00

12.44

12.02

Tangible common equity to tangible asset ratio (o)

8.63

8.08

7.52

Common equity Tier 1 capital (required: 4.5%; well capitalized: 6.5%) (g)

14.10

13.81

13.29

Tier 1 leverage (required: 4.00%; well-capitalized: 5.00%) (g)

11.17

10.96

10.57

Tier 1 risk-based capital (required: 6.00%; well-capitalized: 8.00%) (g)

14.10

13.81

13.29

Total risk-based capital (required: 8.00%; well-capitalized: 10.00%) (g)

15.89

15.77

15.35

Asset Quality Indicators:

Nonperforming assets:

Nonaccruing loans (t)

111,675

122,181

65,948

Assets acquired through foreclosure

5,204

1,210

Total nonperforming assets

116,879

127,385

67,158

Past due loans (h)

11,866

9,202

11,362

Troubled loans (u)

184,122

151,288

119,243

Allowance for credit losses

188,088

195,288

192,637

Ratio of nonperforming assets to total assets

0.57

0.61

0.33

Ratio of allowance for credit losses to total loans and leases (q)

1.43

1.48

Ratio of allowance for credit losses to nonaccruing loans

168

160

292

Ratio of quarterly net charge-offs to average gross loans (a)(e)(i)(n)

0.76

0.31

0.27

Ratio of year-to-date net charge-offs to average gross loans (a)(e)(i)(n)

0.76

0.40

0.27

See “Notes”

WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) AVERAGE BALANCE SHEET (Unaudited)

(Dollars in thousands)

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

Average

Balance

Interest &

Dividends

Yield/

Rate

(a)(b)

Average

Balance

Interest &

Dividends

Yield/

Rate

(a)(b)

Average

Balance

Interest &

Dividends

Yield/

Rate

(a)(b)

Assets:

Interest-earning assets:

Loans: (e) (j)

Commercial loans and leases (p)

5,235,511

87,112

6.76

5,234,307

89,784

6.84

5,047,482

88,530

7.06

Commercial real estate loans (s)

4,881,873

79,095

6.57

4,939,610

84,415

6.80

4,887,483

86,724

7.14

Residential mortgage

965,624

12,802

5.30

953,099

12,604

5.29

874,703

10,579

4.84

Consumer loans

2,061,803

36,649

7.21

2,112,283

39,039

7.35

2,041,390

38,228

7.53

Loans held for sale

50,929

1,094

8.71

49,455

1,044

8.40

34,907

642

7.40

Total loans and leases

13,195,740

216,752

6.67

13,288,754

226,886

6.80

12,885,965

224,703

7.02

Mortgage-backed securities (d)

4,179,692

24,745

2.37

4,295,179

24,995

2.33

4,476,032

25,897

2.31

Investment securities (d)

363,678

2,186

2.74

366,981

2,188

2.64

365,375

2,184

2.65

Other interest-earning assets

640,424

7,195

4.56

765,240

9,270

4.82

643,749

8,838

5.52

Total interest-earning assets

18,379,534

250,878

5.55

18,716,154

263,339

5.61

18,371,121

261,622

5.74

Allowance for credit losses

(196,480

)

(196,740

)

(188,762

)

Cash and due from banks

188,138

189,730

273,286

Cash in non-owned ATMs

379,115

387,114

243,941

Bank owned life insurance

36,202

36,350

42,791

Other noninterest-earning assets

1,947,736

1,917,671

1,953,037

Total assets

20,734,245

21,050,279

20,695,414

Liabilities and stockholders’ equity:

Interest-bearing liabilities:

Interest-bearing deposits:

Interest-bearing demand

2,854,258

7,343

1.04

2,843,613

8,460

1.18

2,834,273

7,366

1.05

Savings

1,457,440

1,596

0.44

1,480,650

1,922

0.52

1,588,224

1,580

0.40

Money market

5,432,622

41,033

3.06

5,323,856

44,797

3.35

5,186,402

45,433

3.52

Time deposits

2,112,467

21,132

4.06

2,155,891

23,362

4.31

1,835,424

18,238

4.00

Total interest-bearing client deposits

11,856,787

71,104

2.43

11,804,010

78,541

2.65

11,444,323

72,617

2.55

Brokered deposits

—

18,410

178

3.89

Total interest-bearing deposits

11,856,787

71,104

2.43

11,804,010

78,541

2.65

11,462,733

72,795

2.55

Federal Home Loan Bank advances

83,818

938

4.54

71,331

828

4.62

21,429

308

5.78

Trust preferred borrowings

90,854

1,523

6.80

90,806

1,655

7.25

90,655

1,756

7.79

Senior and subordinated debt

206,984

2,074

4.01

218,593

2,354

4.31

218,420

2,449

4.48

Other borrowed funds

31,701

0.29

171,873

1,754

4.06

781,854

9,036

4.65

Total interest-bearing liabilities

12,270,144

75,662

2.50

12,356,613

85,132

2.74

12,575,091

86,344

2.76

Noninterest-bearing demand deposits

5,040,032

5,289,024

4,828,865

Other noninterest-bearing liabilities

797,098

772,531

822,834

Stockholders’ equity of WSFS

2,637,354

2,643,325

2,476,453

Noncontrolling interest

(10,383

)

(11,214

)

(7,829

)

Total liabilities and equity

20,734,245

21,050,279

20,695,414

Excess of interest-earning assets over interest-bearing liabilities

6,109,390

6,359,541

5,796,030

Net interest and dividend income

175,216

178,207

175,278

Interest rate spread

3.05

2.87

2.98

Net interest margin

3.88

3.80

3.84

See “Notes”

WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) (Unaudited)

(Dollars in thousands, except per share data)

Three months ended

Stock Information:

March 31, 2025

December 31, 2024

March 31, 2024

Market price of common stock:

High

$59.43

$62.75

$47.71

Low

49.65

47.87

40.20

51.87

53.13

45.14

Book value per share of common stock

46.31

44.15

41.17

Tangible common book value (TBV) per share of common stock (o)

29.25

27.30

24.52

Number of shares of common stock outstanding (000s)

57,693

58,657

60,084

Other Financial Data:

One-year repricing gap to total assets (k)

2.30%

2.26%

0.19%

Weighted average duration of the MBS portfolio

6.1 years

5.9 years

5.8 years

Unrealized losses on securities available for sale, net of taxes

$(467,752)

$(537,790)

$(539,939)

Number of Associates (FTEs) (m)

2,336

2,309

2,241

Number of offices (branches, LPO’s, operations centers, etc.)

115

114

Number of WSFS owned and branded ATMs

580

567

583

Notes:

(a)

Annualized.

(b)

Computed on a fully tax-equivalent basis.

(c)

Noninterest expense divided by (tax-equivalent) net interest income and noninterest income.

(d)

Includes securities held-to-maturity (at amortized cost) and securities available-for-sale (at fair value).

(e)

Net of unearned income.

(f)

Net of allowance for credit losses.

(g)

Represents capital ratios of Wilmington Financial Corporation and subsidiaries. Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.

(h)

Accruing loans which are contractually past due 90 days or more as to principal or interest. Balance includes student loans, which are U.S. government guaranteed with little risk of credit loss.

(i)

Excludes loans held for sale.

(j)

Nonperforming loans are included in average balance computations.

(k)

The difference between projected amounts of interest-sensitive assets and interest-sensitive liabilities repricing within one year divided by total assets, based on a current interest rate scenario.

(l)

Includes loans held for sale and reverse mortgages.

(m)

Includes seasonal Associates, when applicable.

(n)

Excludes reverse mortgage loans.

(o)

The Company uses non-GAAP (United States Generally Accepted Accounting Principles) financial information in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Company’s management believes that investors may use these non-GAAP financial measures to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

(p)

Includes commercial & industrial loans and commercial small business leases.

(q)

Reflects allowance for credit losses on loans and leases over the amortized cost of the total portfolio.

(r)

Includes provision for credit losses, loan workout expenses, OREO expenses and other credit costs.

(s)

Includes commercial mortgage and commercial construction loans.

(t)

Includes nonaccruing troubled loans.

(u)

Represents loans modified in the form of principal forgiveness, interest rate reduction, an other-than-insignificant payment delay, or a term extension to borrowers experiencing financial difficulty.

WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) (Dollars in thousands, except per share data) (Unaudited)

Non-GAAP Reconciliation (o):

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

Net interest income (GAAP)

175,216

178,207

175,278

Core net interest income (non-GAAP)

175,216

178,207

175,278

Noninterest income (GAAP)

80,897

83,307

75,857

Less: Realized gain on sale of equity investment, net

—

123

—

Plus: Visa derivative valuation adjustment

—

(605

)

Core fee revenue (non-GAAP)

80,897

83,184

76,462

Core net revenue (non-GAAP)

256,113

261,391

251,740

Core net revenue (non-GAAP)(tax-equivalent)

256,568

261,811

252,084

Noninterest expense (GAAP)

151,795

169,126

149,072

Less: FDIC special assessment

—

1,263

Less: Corporate development expense

208

Less: Restructuring expense

260

2,193

—

Plus: Remeasurement of lease liability

—

(112

)

—

Core noninterest expense (non-GAAP)

151,476

166,984

147,601

Core efficiency ratio (non-GAAP)

59.0

63.8

58.6

Core fee revenue ratio (non-GAAP) (b)

31.5

31.8

30.3

End of period

March 31, 2025

December 31, 2024

March 31, 2024

Total assets (GAAP)

20,548,950

20,814,303

20,579,248

Less: Goodwill and other intangible assets

983,882

988,160

1,000,344

Total tangible assets (non-GAAP)

19,565,068

19,826,143

19,578,904

Total stockholders’ equity of WSFS (GAAP)

2,671,614

2,589,752

2,473,481

Less: Goodwill and other intangible assets

983,882

988,160

1,000,344

Total tangible common equity (non-GAAP)

1,687,732

1,601,592

1,473,137

Tangible common book value (TBV) per share:

Book value per share (GAAP)

46.31

44.15

41.17

Tangible common book value per share (non-GAAP)

29.25

27.30

24.52

Tangible common equity to tangible assets:

Equity to asset ratio (GAAP)

13.00

12.44

12.02

Tangible common equity to tangible assets ratio (non-GAAP)

8.63

8.08

7.52

Non-GAAP Reconciliation - continued (o):

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

GAAP net income attributable to WSFS

65,896

64,202

65,761

Plus/(less): Pre-tax adjustments: Realized gain on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and remeasurement of lease liability

319

2,019

2,076

(Plus)/less: Tax impact of pre-tax adjustments

(78

)

(445

)

(507

)

Adjusted net income (non-GAAP) attributable to WSFS

66,137

65,776

67,330

GAAP return on average assets (ROA)

1.29

1.21

1.28

0.01

0.04

(Plus)/less: Tax impact of pre-tax adjustments

(0.01

)

(0.01

)

(0.01

)

Core ROA (non-GAAP)

1.29

1.24

1.31

Earnings per share (diluted) (GAAP)

1.12

1.09

0.01

0.03

(Plus)/less: Tax impact of pre-tax adjustments

—

(0.01

)

(0.01

)

Core earnings per share (non-GAAP)

1.13

1.11

Calculation of return on average tangible common equity:

GAAP net income attributable to WSFS

65,896

64,202

65,761

Plus: Tax effected amortization of intangible assets

2,945

2,965

2,973

Net tangible income (non-GAAP)

68,841

67,167

68,734

Average stockholders’ equity of WSFS

2,637,354

2,643,325

2,476,453

Less: Average goodwill and intangible assets

986,738

990,762

1,003,167

Net average tangible common equity

1,650,616

1,652,563

1,473,286

Return on average tangible common equity (non-GAAP)

16.91

16.17

18.76

Calculation of PPNR:

Net income (GAAP)

65,867

64,155

65,723

Plus: Income tax provision

21,101

20,197

21,202

Plus: Provision for credit losses

17,350

8,036

15,138

PPNR (non-GAAP)

104,318

92,388

102,063

319

2,019

2,076

Core PPNR (non-GAAP)

104,637

94,407

104,139

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