Piper Sandler assumed coverage of WSFS Financial (WSFS) with a Neutral rating and $62 price target In a time of some building market optimism for banks, the analyst is assuming coverage of five more regional banks. Piper highlights a positive earnings backdrop. The firm bases its forecast through 2027 on its expectations for a steady march lower by the Federal Reserve in short-term rates, a modest steepening in the yield curve, and a solid economic backdrop for growth and credit. Claim 50% Off TipRanks P ...

WILMINGTON, Del.--(BUSINESS WIRE)--WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today announced the pricing of its underwritten public offering of $200 million aggregate principal amount of its Fixed-to-Floating Rate Senior Unsecured Notes due 2035 (the "Notes†). The Notes will bear interest from and including December 15, 2025 to but excluding December 15, 2030 at a fixed rate of 5.375% per annum, reflecting a spread of 160 basis points to the 5-year Treasury, pa. ...

Core Insights - WSFS Financial Corporation will participate in Stephen's Virtual East Coast Conference on November 24, 2025 [1] Company Information - WSFS Financial Corporation is the parent company of WSFS Bank [1] - Rodger Levenson serves as the Chairman, President, and Chief Executive Officer of WSFS [1] - David Burg holds the position of Executive Vice President and Chief Financial Officer [1] Investor Engagement - Management will refer to the most recent investor materials available in the Investor Relations section of WSFS' website during the conference [1]

Core Points - WSFS Financial Corporation's charitable arm, WSFS CARES Foundation, is contributing a $150,000 grant to the Todmorden Foundation to enhance affordable housing in Wilmington, Delaware [1] - The Todmorden Foundation is a nonprofit organization focused on providing access to affordable rental housing and improving the quality of life for residents in Wilmington [1] - The foundation manages several hundred affordable rental properties in the area [1]

Core Points - WSFS Financial Corporation will participate in Piper Sandler's East Coast Financial Services Conference [1] - The event is scheduled for November 11, 2025, in Aventura, Florida [1] - Key executives attending include Rodger Levenson (Chairman, President, and CEO), David Burg (CFO), and Art Bacci (COO) [1]

Core Viewpoint - WSFS Financial (WSFS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock price movements [2][4]. - The correlation between earnings estimate revisions and stock price movements is strong, with institutional investors using these estimates to determine fair value [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in WSFS's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. - For the fiscal year ending December 2025, WSFS is expected to earn $4.96 per share, with a 0.9% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - WSFS's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9][10].

Financial Performance - For the three months ended September 30, 2025, earnings per share (EPS) was $1.37, and return on assets (ROA) was 1.44%, compared to $1.08 and 1.22% for the same period in 2024 [178]. - Net income for the three months ended September 30, 2025, was $76.4 million, an increase from $64.4 million for the same period in 2024 [200]. - Net interest income for the three months ended September 30, 2025, increased by $6.5 million to $184.023 million compared to the same period in 2024 [204]. - Noninterest income for the three months ended September 30, 2025, was $86.5 million, a decrease of $3.7 million from $90.2 million in the same period in 2024 [212]. - Noninterest expense for the nine months ended September 30, 2025, was $474.2 million, an increase of $5.6 million from $468.6 million for the same period in 2024 [213]. Asset and Liability Management - As of September 30, 2025, WSFS Financial Corporation had total assets of $20.8 billion and assets under management (AUM) and assets under administration (AUA) of $93.4 billion [173]. - Total liabilities decreased by $137.3 million to $18.1 billion at September 30, 2025, compared to December 31, 2024 [179]. - The company had a readily available, secured borrowing capacity of $5.6 billion from the FHLB and $2.3 billion through the Federal Reserve Discount Window as of September 30, 2025 [190]. - Interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year by $1.2 billion as of September 30, 2025 [197]. Capital and Equity - Stockholders' equity increased by $163.5 million to $2.8 billion at September 30, 2025, primarily due to $214.7 million of earnings [179]. - WSFS Financial Corporation maintained a total common equity Tier 1 capital ratio of 13.76% and total risk-based capital of 15.00% as of September 30, 2025, well above regulatory requirements [183]. - Tangible common equity increased to $1,779,596 thousand as of September 30, 2025, from $1,601,592 thousand at December 31, 2024 [218]. - Book value per share of common stock was $49.67 at September 30, 2025, an increase of $5.52 from $44.15 at December 31, 2024 [181]. Credit Quality - The provision for credit losses decreased by $11.9 million in the current quarter, reflecting favorable asset quality [202]. - Total nonperforming assets decreased by $54.8 million from December 31, 2024, to September 30, 2025, with a ratio of nonperforming assets to total assets decreasing from 0.61% to 0.35% [194]. - The ratio of allowance for credit losses to total loans and leases was 1.41% as of September 30, 2025, compared to 1.48% at December 31, 2024 [194]. - The total allowance for credit losses decreased to $185.5 million at September 30, 2025, from $195.3 million at December 31, 2024, primarily due to the resolution of problem loans and the Upstart loan sale [209]. Regulatory Environment - The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, introduces immediate expensing of qualifying R&D expenditures but is not expected to materially impact the company [222]. - The GENIUS Act, signed into law on July 18, 2025, establishes a federal licensing framework for payment stablecoins, potentially increasing competition for banks [223]. - The Community Reinvestment Act (CRA) framework was revised, with the bank receiving a "Satisfactory" rating in its most recent evaluation [224]. - Recent regulatory developments include guidance to eliminate mandatory examination activities not required by statute, enhancing flexibility for community banks [228].

Core Points - WSFS Financial Corporation has appointed Michelle Hong to its Board of Directors, effective December 1, 2025 [1] - Hong will stand for election at the 2026 Annual Meeting of Shareholders [1] - She currently serves as a corporate director of PECO, an Exelon company, and is the Vice Chair-elect of the National Association of Corporate Directors (NACD) in Philadelphia [1] - Hong has an extensive background in financial services [1]

Financial Data and Key Metrics Changes - The company reported a core EPS of $1.40, core return on assets of 1.40%, and core return on tangible common equity of 18.7%, all showing improvement compared to the second quarter [3][4] - Year-over-year, core net income increased by 21%, core PP&R grew by 6%, and core earnings per share rose by 30% [3][4] - Tangible book value per share increased by 12% [4] - Net interest margin expanded by two basis points to 3.91% quarter over quarter [4] Business Line Data and Key Metrics Changes - The wealth and trust business grew by 13% year over year [5] - Core fee revenue was flat quarter over quarter but grew by 5% when excluding strategic exits [4] - Client deposits increased by 1% linked quarter and by 5% year over year, with non-interest deposits growing by 12% year over year [5] Market Data and Key Metrics Changes - Total net credit costs were $8.4 million this quarter, down $5.9 million compared to the prior quarter [7] - Non-performing assets (NPAs) declined by over 30% to 35 basis points, with delinquencies down by 34% [7] Company Strategy and Development Direction - The company intends to maintain elevated levels of buybacks while adjusting the pace based on macroeconomic conditions and business performance [8] - The management is focused on organic growth and is actively recruiting talent in commercial and wealth sectors [52][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage margins through deposit repricing and hedging strategies despite potential rate cuts [9][56] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance [9] Other Important Information - The company returned $56.3 million of capital, including buybacks of $46.8 million, representing 1.5% of outstanding shares [8] - The commercial pipeline remains strong at approximately $300 million [7] Q&A Session Summary Question: What is the base case scenario for achieving the CET1 target? - Management indicated that they are currently buying back approximately 100% of net income and have the capacity to continue this for the next two to three years [15] Question: How are reserve levels being managed amid macro volatility? - Management stated that they are conservatively maintaining reserves due to potential macroeconomic volatility, despite good asset quality trends [18] Question: What is the outlook for the wealth and trust business? - The wealth business is seeing growth in new accounts and transactions, with institutional services up 30% and The Bryn Mawr Trust Company of Delaware up 20% year over year [26][28] Question: How does Cash Connect revenue forecast with changing rates? - Management confirmed that while revenue may decrease with rate cuts, expenses would also reduce, leading to overall profitability benefits [36][37] Question: What is the expected pace of loan payoffs from the consumer partnership? - The company expects a runoff of approximately $15 million to $17 million per month from the Spring EQ portfolio, while home lending is experiencing double-digit growth [42][43]

Financial Data and Key Metrics Changes - The company reported a core EPS of $1.40, core return on assets of 1.40%, and core return on tangible common equity of 18.7%, all showing improvement compared to the second quarter [3] - Year-over-year, core net income increased by 21%, core PP&R grew by 6%, and core earnings per share rose by 30% [3][4] - Tangible book value per share increased by 12%, and net interest margin expanded by 2 basis points to 3.91% quarter over quarter [4] Business Line Data and Key Metrics Changes - The wealth and trust business grew by 13% year over year, with total client deposits increasing by 1% linked quarter and 5% year over year [5] - Core fee revenue was flat quarter over quarter but grew by 5% when excluding strategic exits in wealth and trust [4] - Loans decreased by 1% linked quarter, primarily due to the sale of the Upstart loan portfolio, but residential mortgage and WSFS-originated consumer loan portfolios saw increases of 5% and 3% respectively [5][6] Market Data and Key Metrics Changes - Non-interest deposits grew by 12% year over year, representing over 30% of total client deposits [5] - The commercial pipeline increased to approximately $300 million, indicating strong demand in both C&I and commercial real estate [7] Company Strategy and Development Direction - The company intends to maintain elevated levels of buybacks while being flexible based on macroeconomic conditions and business performance [8] - Management emphasized a focus on organic growth and potential acquisitions, particularly in the wealth and trust sectors [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality improvements, with total net credit costs decreasing to $8.4 million, down $5.9 million from the prior quarter [7] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance despite uncertainties in the macro environment [9] Other Important Information - The company returned $56.3 million of capital during the quarter, including $46.8 million in buybacks, representing 1.5% of outstanding shares [8] - The CET1 ratio stands at 14.39%, well above the medium-term target of 12% [8] Q&A Session Summary Question: What is the base case scenario for achieving the CET1 target? - Management indicated that they are currently buying back approximately 100% of net income and have the capacity to continue this for the next two to three years, depending on balance sheet dynamics and growth rates [14][15] Question: How are reserve levels being managed amid macro volatility? - Management noted that while there is capacity to release some reserves, they are maintaining a conservative approach due to potential economic volatility [18] Question: What is the outlook for the wealth and trust business? - The wealth business is seeing growth in new accounts and transactions, with institutional services up 30% and Bryn Mawr Trust up 20% year over year [26][28] Question: How does Cash Connect revenue forecast with changing rates? - Management confirmed that while revenue may decrease with rate cuts, expenses would also reduce, leading to a net profitability benefit [36][37] Question: What is the expected pace of loan payoffs from the consumer partnership? - The company expects a runoff of approximately $15 million to $17 million per month from the Spring EQ portfolio, while home lending is experiencing double-digit growth [42][43]