Financial Performance Highlights for WSFS Bank

WSFS Bank, a leading regional bank in the Mid-Atlantic region, has reported its financial results for the first quarter of 2025. The bank’s performance showcases its resilience and ability to navigate the evolving economic landscape.

Earnings and Profitability WSFS Bank’s net income attributable to the company for the first quarter of 2025 was $65.9 million, a slight increase from the $65.8 million reported in the same period last year. Earnings per share (EPS) rose to $1.12, up from $1.09 in the first quarter of 2024. The bank’s return on assets (ROA) also improved, reaching 1.29% compared to 1.28% in the prior-year period.

Net Interest Income and Margin Net interest income, the bank’s primary revenue source, decreased slightly by $0.1 million compared to the first quarter of 2024. However, the bank’s net interest margin, a key measure of profitability, increased to 3.88% from 3.84% in the prior-year period. This improvement was driven by the bank’s ability to reprice deposits and manage its funding costs, which offset the impact of lower loan yields.

Provision for Credit Losses The bank’s provision for credit losses, the amount set aside to cover potential loan losses, increased by $2.2 million to $17.4 million in the first quarter of 2025. This increase was primarily due to a charge-off of a nonperforming commercial and industrial (C&I) loan, partially offset by a lower provision on the bank’s consumer loan portfolio as the Upstart portfolio continued to run off.

Noninterest Income Noninterest income, which includes revenue from sources other than interest, increased by $5.0 million to $80.9 million in the first quarter of 2025. This growth was driven by a $6.4 million increase in the bank’s Wealth and Trust segment, with strong performance in Institutional Services and The Bryn Mawr Trust Company of Delaware. The increase was partially offset by declines in the bank’s Cash Connect® and Capital Markets businesses.

Noninterest Expense Noninterest expense, which includes operating costs, increased by $2.7 million to $151.8 million in the first quarter of 2025. This increase was primarily due to higher salaries and benefits, reflecting talent additions in key business areas, performance-based increases, and higher medical costs. The increase was partially offset by lower external funding costs in the Cash Connect® business.

Capital and Liquidity WSFS Bank remains well-capitalized, with a common equity Tier 1 capital ratio of 14.10% and a total risk-based capital ratio of 15.89% as of March 31, 2025. The bank’s liquidity position also remains strong, with $1.0 billion in cash, cash equivalents, and restricted cash, as well as significant borrowing capacity from the Federal Home Loan Bank and the Federal Reserve Discount Window.

Asset Quality The bank’s nonperforming assets, which include nonaccruing loans and other real estate owned, decreased by $10.5 million to $116.9 million as of March 31, 2025. The ratio of nonperforming assets to total assets declined from 0.61% at the end of 2024 to 0.57% at the end of the first quarter of 2025. The bank’s allowance for credit losses decreased to $188.1 million, or 1.43% of total loans and leases, as of March 31, 2025, compared to $195.3 million, or 1.48%, at the end of 2024.

Interest Rate Sensitivity WSFS Bank actively manages its interest rate risk exposure. As of March 31, 2025, the bank’s interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year (interest-sensitive gap) by $473.6 million. The bank’s one-year interest-sensitive gap as a percentage of total assets was 2.30%, compared to 2.26% at the end of 2024. The bank’s economic value of equity ratio, a measure of the impact of interest rate changes on the bank’s value, remained strong at 19.64% in a stable interest rate environment.

Outlook and Strategic Initiatives WSFS Bank’s performance in the first quarter of 2025 demonstrates its ability to navigate the evolving economic landscape and deliver solid results. The bank’s focus on diversifying its revenue streams, managing its funding costs, and maintaining a strong capital and liquidity position positions it well for the future.

Looking ahead, the bank’s board of directors has approved a 13% increase in the quarterly cash dividend to $0.17 per share and an incremental share repurchase authorization of 10% of outstanding shares as of March 31, 2025. These actions reflect the bank’s confidence in its financial strength and its commitment to returning capital to shareholders.

Overall, WSFS Bank’s first-quarter 2025 results highlight its resilience, financial discipline, and strategic focus. The bank’s diversified business model, prudent risk management, and ongoing investments in key growth areas position it well to navigate the challenges and capitalize on the opportunities in the evolving financial landscape.