Financial Data and Key Metrics Changes - The company reported a core EPS of $1.4, a core return on assets of 1.48%, and a core return on tangible common equity of 18.7%, all of which increased compared to the second quarter [5] - Year-over-year, core net income rose by 21%, core PPNR grew by 6%, and core earnings per share increased by 30% [5] - Tangible book value per share increased by 12%, and net interest margin expanded by two basis points to 3.91% quarter over quarter [5][6] Business Line Data and Key Metrics Changes - Core fee revenue was flat quarter over quarter but grew by 5% when excluding the impact of strategic exits in Wealth and Trust [6] - The Wealth and Trust business grew by 13% year over year, with institutional services up 30% and Brimmore Trust of Delaware up 20% [6][32] Market Data and Key Metrics Changes - Total client deposits increased by 1% linked quarter and grew by 5% year over year, with non-interest deposits up 12% year over year [7] - Loans decreased by 1% linked quarter, primarily due to the sale of the Upstart loan portfolio and continued runoff in the Spring EQ portfolio [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 [11] - The management is focused on disciplined originations and proactive engagement with clients to maintain asset quality [24] - The company is exploring talent acquisition in both commercial and wealth businesses to enhance organic growth [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year outlook despite an additional rate cut in October [11] - The company is prepared for potential future rate cuts and has strategies in place to manage margins through deposit repricing and hedging [11][70] 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 [10] - Year-to-date, the company has repurchased 5.8% of its outstanding shares, maintaining a strong capital position with a CET1 of 14.39% [11] Q&A Session Summary Question: Achieving CET1 target and organic growth rates - Management indicated that they are currently buying back approximately 100% of net income and have high capital levels despite buybacks, allowing for continued buybacks for the next few years [18] Question: Asset quality and reserve levels - Management noted good momentum in asset quality and indicated a conservative approach to reserves due to macroeconomic volatility [24] Question: Growth in wealth and trust business - Management highlighted growth in new accounts and transactions, particularly in institutional services and Brimmore Trust of Delaware [32] Question: Cash Connect business and NII benefit - Management confirmed that while revenue from Cash Connect may decrease with rate cuts, expenses would offset this, leading to overall profitability benefits [46] Question: Commercial loan growth and consumer partnership payoffs - Management discussed the impact of problem loan payoffs and expected continued growth in the home lending business, offsetting runoff in the Spring EQ portfolio [54]

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] - 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 grew by 5% year over year, with non-interest deposits up by 12% year over year [5] - Loans decreased by 1% linked quarter, but residential mortgage and WSFS-originated consumer loan portfolios saw increases of 5% and 3%, respectively [5][6] Market Data and Key Metrics Changes - The commercial pipeline increased to approximately $300 million, indicating strong demand [6] - Total net credit costs were $8.4 million, down $5.9 million compared to the prior quarter, with net charge-offs at 30 bps [6] Company Strategy and Development Direction - The company plans to maintain elevated buybacks while adjusting the pace based on macroeconomic conditions and business performance [7] - Management emphasized a focus on organic growth and potential acquisitions in both depositories and fee verticals to achieve medium-term CET1 targets [12][14] - The wealth and trust business is expected to continue growing, with a focus on new accounts and transaction activity [25][28] 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 amid uncertain rate cuts [8][50] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance [8] Other Important Information - The company returned $56.3 million of capital, including $46.8 million in buybacks, representing 1.5% of outstanding shares [7] - The company has a CET1 ratio of 14.39%, well above the medium-term target of 12% [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, depending on balance sheet dynamics and investment opportunities [12][14] Question: How are reserve levels being managed amid macro volatility? - Management noted that while there is capacity to release some reserves, they are maintaining conservative levels due to potential macroeconomic volatility [16][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 the Cash Connect business forecast profitability amid rate changes? - Management confirmed that while fee revenue may decrease with rate cuts, expenses would also reduce, leading to overall profitability benefits [34][36] Question: What is the expected pace of consumer loan portfolio runoff? - The company expects the Spring EQ portfolio runoff to continue at a pace of $15 million to $17 million per month, while home lending is expected to grow positively [40][41]

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Financial Performance - EPS reached $1.37 in 3Q25, compared to $1.08 in 3Q24[6] - Core EPS increased to $1.40 in 3Q25, up from $1.08 in 3Q24, a 30% increase[6, 7] - Core ROA was 1.48%, an increase of 10 bps QoQ and 26 bps YoY[6, 8] - NIM was 3.91%, up 2 bps QoQ and 13 bps YoY[6, 8] - Fee Revenue was $86.5 million, representing 31.9%[6] Balance Sheet & Capital Management - Total Client Deposits reached $17.226 billion, a 5% increase YoY[22] - Noninterest Demand Deposits grew 12% YoY, reaching $5.237 billion[22] - CET1 ratio was 14.39%[6] - $206.2 million of capital was returned to shareholders YTD, including $178.3 million from share repurchases, representing 5.8% of outstanding shares[8] - Tangible book value (TBV) was $32.11 per share, including a negative impact of $8.56 per share related to Reported AOCI[35] Asset Quality - ACL ratio was 1.41%[6]

Core Insights - WSFS Financial Corporation announced the appointment of Bernard Shields as Executive Vice President and Pennsylvania Market President [1] - Shields will report to Jim Wechsler, the Chief Commercial Banking Officer, and will be responsible for growth and sales strategies across the company's markets [1] - The role includes enhancing and optimizing relationships with current clients [1]

Core Points - WSFS Bank, a subsidiary of WSFS Financial Corporation, organized its third annual We Stand for Service Day, where over 1,600 associates volunteered at more than 130 community organizations [1] - The associates contributed over 5,500 hours of volunteer work across Delaware, Pennsylvania, and New Jersey on October 1 [1] Company Initiatives - The We Stand for Service Day reflects the company's commitment to community service and employee engagement [1] - The event involved a significant number of associates, highlighting the company's culture of volunteerism and support for local communities [1]

Group 1: Bryn Mawr Trust Developments - Bryn Mawr Trust has hired Michael Mendelson as senior vice president and COO, aiming to increase wealth fee revenue by 50% by 2027 [3][6] - The firm promoted Harrison Gelber to senior vice president and director of private banking and trust advisory services, enhancing his existing role [4] - Mark Bradford has been promoted to senior vice president and director of wealth planning, focusing on personalized planning for clients [5] - Jackie Blue has been named senior vice president and COO of Bryn Mawr Trust Advisors, overseeing portfolio solutions and client support [5] - The wealth division aims to become the top wealth management firm in the Greater Philadelphia and Delaware region by the end of 2027 [6] Group 2: Aspiriant Developments - Aspiriant has hired Gretchen Hollstein as director of wealth management, bringing over 20 years of experience from Litman Gregory Wealth Management [7] - Hollstein will focus on high-net-worth individuals and families, providing services in financial planning, investment management, estate planning, and tax advisory [8] - Aspiriant's employee-owned business model emphasizes trusted advisor-client relationships [8]

Core Insights - WSFS Financial Corporation announced key leadership appointments in its wealth management division to support growth and talent development [1] - The company aims to increase wealth fee revenue by 50% by the end of 2027 [1] Leadership Appointments - Michael Mendelson has been appointed as Senior Vice President and Chief Operating Officer at Bryn Mawr Trust [1]

Core Insights - WSFS Financial Corporation announced key leadership appointments in its wealth management division to support growth and align with its strategic plan to double its wealth business in the next three years [1] Leadership Appointments - Michael Mendelson has been appointed as Senior Vice President and Chief Operating Officer at Bryn Mawr Trust, where he will be responsible for driving operational excellence [1]

Industry Overview - The Zacks Savings and Loan industry is benefiting from an improving lending environment, characterized by relatively low interest rates and expectations of further rate cuts [1][4] - The industry primarily consists of specialized U.S. banks focused on residential mortgage finance, offering various loan products and funding mortgages with FDIC-insured savings [3] Industry Trends - Lower interest rates are expected to enhance net interest income (NII) and net interest margin (NIM), as the Federal Reserve has reduced rates by 100 basis points in 2024 and is anticipated to cut rates again [4] - The digitization of operations is a key trend, with companies transitioning to technology-driven models to improve operational efficiency despite initial cost increases [5] - Asset quality is deteriorating, which may impact borrowers' repayment capacity due to rising inflation and less substantial rate cuts from the central bank [6] Industry Performance - The Zacks Savings and Loan industry ranks 19, placing it in the top 8% of over 245 Zacks industries, indicating solid near-term prospects [7][8] - The industry's earnings estimate has increased by 25.6% over the past year, reflecting growing analyst confidence in earnings growth potential [8] Stock Performance - The industry has underperformed compared to the Zacks Finance sector and the S&P 500, with a collective stock rally of 14.7% over the past year, while the S&P 500 rose by 21.3% [11] Valuation Metrics - The industry has a trailing 12-month price-to-tangible book ratio (P/TBV) of 2.00X, below the five-year median of 2.09X, indicating a discount compared to the broader market [15][18] - The Zacks Finance sector's current P/TBV is significantly higher at 5.69X, suggesting that the savings and loan industry is trading at a decent discount [18] Company Highlights - **ServisFirst Bancshares (SFBS)**: With total assets of $17.4 billion and loans of $13.2 billion, SFBS is expected to benefit from solid loan balances and improving market share. The Zacks Consensus Estimate for 2025 earnings is $5.22, reflecting a 24.9% year-over-year increase [21][23] - **WSFS Financial**: This company has $20.8 billion in assets and is projected to maintain stable loan growth. The Zacks Consensus Estimate for current-year earnings is $4.91, indicating an 11.9% rise [25][28] - **Provident Financial**: Following its merger with Lakeland Bancorp, Provident Financial has $24.6 billion in assets and is expected to see improved mortgage banking revenues. The Zacks Consensus Estimate for 2025 earnings is $2.15, a 77.7% year-over-year surge [32][34]