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WSFS Financial (WSFS) - 2025 Q2 - Earnings Call Presentation
2025-07-25 17:00
Financial Performance - The company's Core Return on Average Assets (ROA) was 1.38%, an increase of 9 basis points (bps) quarter-over-quarter (QoQ)[6] - Core Pre-Provision Net Revenue (PPNR) reached $107.8 million, up 3% QoQ[6] - Net Interest Margin (NIM) increased by 1 basis point (bp) QoQ to 3.89%, driven by deposit repricing and wholesale funding optimization[6, 9] - Core Fee Revenue totaled $88.0 million, a 9% increase QoQ and a 2% increase year-over-year (YoY)[6] - The company returned $149.9 million of capital to shareholders year-to-date (YTD), including $131.5 million from share repurchases[6] Loan Portfolio - Commercial & Industrial (C&I) loans increased by 7% QoQ annualized[12] - Residential mortgage and WSFS-originated consumer loans grew 16% QoQ annualized[16] - Total Gross Loans decreased slightly by $11 million QoQ[12] Deposit Trends - Total client deposits increased by $242 million QoQ, representing a 6% annualized growth[17, 21] - Noninterest demand deposits grew by $359 million QoQ, a 29% annualized increase[17] - Total client deposits increased by $830 million YoY, a 5% increase[17, 21] Capital and Asset Quality - The company's CET1 ratio was 14.07%[5] - Tangible book value (TBV) per share grew 20% YoY to $30.32, which includes a negative impact of $9.29 per share related to Reported Accumulated Other Comprehensive Income (AOCI)[28] - The company announced the sale of $98.1 million of Upstart loans[6] - The ACL coverage ratio was 1.43%[5, 46]
WSFS Financial (WSFS) Q2 Earnings and Revenues Beat Estimates
ZACKS· 2025-07-24 22:15
Group 1 - WSFS Financial reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, and showing an increase from $1.08 per share a year ago, resulting in an earnings surprise of +12.39% [1] - The company posted revenues of $267.5 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.36%, and showing a slight increase from $266.05 million year-over-year [2] - WSFS has outperformed the market with a share price increase of about 9.5% since the beginning of the year, compared to the S&P 500's gain of 8.1% [3] Group 2 - The earnings outlook for WSFS is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for WSFS was favorable ahead of the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $1.13 on revenues of $262.8 million, and for the current fiscal year, it is $4.64 on revenues of $1.04 billion [7] Group 3 - The outlook for the Financial - Savings and Loan industry, where WSFS operates, is currently in the bottom 26% of over 250 Zacks industries, which may impact the stock's performance [8]
WSFS Financial (WSFS) - 2025 Q2 - Quarterly Results
2025-07-24 20:09
[Executive Summary](index=1&type=section&id=Executive%20Summary) [2Q 2025 Highlights](index=1&type=section&id=2Q%202025%20Highlights) WSFS Financial Corporation reported strong financial results for the second quarter of 2025, with diluted EPS of $1.27 and ROA of 1.39%. These results were primarily driven by a net interest margin (NIM) of 3.89% and a 9% quarter-over-quarter growth in fee revenue. The company also returned $87.3 million in capital to shareholders Key Financial Highlights | Metric | 2Q 2025 | 1Q 2025 | 2Q 2024 | | :--------------------------------- | :------ | :------ | :------ | | Net interest income (in millions) | $179.5 | $175.2 | $174.4 | | Fee revenue (in millions) | $88.0 | $80.9 | $91.6 | | Total net revenue (in millions) | $267.5 | $256.1 | $266.0 | | Net income attributable to WSFS (in millions) | $72.3 | $65.9 | $69.3 | | Earnings per share (EPS) (diluted) | $1.27 | $1.12 | $1.16 | | Return on average assets (ROA) | 1.39 % | 1.29 % | 1.34 % | | Net interest margin (NIM) | 3.89 % | 3.88 % | 3.85 % | | Fee revenue as % of total net revenue | 32.8 % | 31.5 % | 34.4 % | | Efficiency ratio | 59.5 % | 59.2 % | 58.5 % | - WSFS reported 2Q 2025 **EPS of $1.27** and **ROA of 1.39%**, driven by a **NIM of 3.89%** and **fee revenue growth of 9%**[2](index=2&type=chunk) - The company returned **$87.3 million of capital** to shareholders during the quarter[2](index=2&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) CEO Rodger Levenson highlighted strong performance in Q2 2025, with core EPS of $1.27 and core ROA of 1.38%. This was attributed to robust growth in fee-based businesses (9% QoQ), an improved net interest margin of 3.89%, and annualized client deposit growth of 6%. The company also saw solid growth in C&I loan fundings and WSFS-originated Consumer Lending - Core **EPS was $1.27** and core **ROA was 1.38%** for 2Q 2025[5](index=5&type=chunk) - Core **fee revenue grew 9% quarter-over-quarter**, driven by Wealth and Trust, WSFS Mortgage, Capital Markets, and Banking businesses[5](index=5&type=chunk) - Net interest margin improved to **3.89%**, up **1bp** from the previous quarter[5](index=5&type=chunk) - Client deposits grew **6% (annualized)** compared to 1Q 2025, primarily from the Trust business[5](index=5&type=chunk) [Key Performance Indicators](index=3&type=section&id=Key%20Performance%20Indicators) Key performance indicators for 2Q 2025 showed improvements across several metrics compared to 1Q 2025, including higher core EPS, core PPNR, and net interest margin. The company also reduced total net credit costs and increased client deposits, while executing significant share repurchases and dividend payments Key Performance Indicators (Dollars in millions) | Metric | 2Q 2025 | 1Q 2025 | Change (QoQ) | | :--------------------------------- | :------ | :------ | :----------- | | Core EPS | $1.27 | $1.13 | +$0.14 | | Core ROA | 1.38% | 1.29% | +0.09% | | Core PPNR (in millions) | $107.8 | $104.6 | +$3.2 | | Net Interest Margin | 3.89% | 3.88% | +0.01% | | Core Fee Revenue (in millions) | +$7.1 | | +9% | | Total Net Credit Costs (in millions) | $14.3 | $17.6 | -$3.3 | | Client Deposits (annualized growth) | 6% | | +1% (not annualized) | | Shares Repurchased | 1,556,199 | | | | Total Capital Returned (in millions) | $87.3 | | | - Announced the sale of the majority of the unsecured consumer lending portfolio generated through the partnership with Upstart, accelerating the disposition of a non-strategic portfolio[7](index=7&type=chunk) [Financial Performance Overview](index=15&type=section&id=Financial%20Performance%20Overview) [Selected Financial Results (GAAP & Non-GAAP)](index=15&type=section&id=Selected%20Financial%20Results%20(GAAP%20%26%20Non-GAAP)) WSFS reported a net income attributable to WSFS of $72.3 million for 2Q 2025, an increase from $65.9 million in 1Q 2025 and $69.3 million in 2Q 2024. Diluted EPS also increased to $1.27. Performance ratios like ROA and ROE showed quarter-over-quarter improvements, with core ROA at 1.38% and core ROE at 18.08% Summary Statements of Income (Unaudited) (Dollars in thousands, except per share data) | (Dollars in thousands, except per share data) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------------------- | :------------ | :------------- | :------------ | | Net interest income | $179,495 | $175,216 | $174,449 | | Provision for credit losses | $12,621 | $17,350 | $19,814 | | Noninterest income | $88,009 | $80,897 | $91,598 | | Noninterest expense | $159,343 | $151,795 | $155,768 | | Net income attributable to WSFS | $72,326 | $65,896 | $69,273 | | Diluted earnings per share | $1.27 | $1.12 | $1.16 | Performance Ratios | Performance Ratios | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------- | :------------ | :------------- | :------------ | | Return on average assets (a) | 1.39 % | 1.29 % | 1.34 % | | Return on average equity (a) | 10.94 | 10.13 | 11.39 | | Return on average tangible common equity (a)(o) | 18.08 | 16.91 | 20.08 | | Net interest margin (a)(b) | 3.89 | 3.88 | 3.85 | | Efficiency ratio (c) | 59.46 | 59.16 | 58.46 | | Noninterest income as a percentage of total net revenue (b) | 32.84 | 31.53 | 34.38 | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) [Loans and Leases](index=4&type=section&id=Loans%20and%20Leases) WSFS' gross loan and lease portfolio saw a slight decrease of less than 1% QoQ, primarily due to the transfer and write-down of Upstart loans. Excluding runoff portfolios, gross loans and leases increased by 1% (2% annualized), driven by growth in C&I, WSFS-originated consumer loans, and residential mortgages Loans and Leases Composition (Dollars in millions) | Loans and Leases | June 30, 2025 | % | March 31, 2025 | % | June 30, 2024 | % | | :------------------------- | :------------ | :- | :------------- | :- | :------------ | :- | | Commercial & industrial (C&I) | $4,731 | 36 % | $4,651 | 36 % | $4,599 | 35 % | | Commercial mortgage | $3,911 | 30 | $3,982 | 31 | $4,035 | 31 | | Construction | $858 | 7 | $869 | 6 | $879 | 7 | | Commercial small business leases | $630 | 5 | $636 | 5 | $644 | 5 | | Total commercial loans and leases | $10,130 | 78 | $10,138 | 78 | $10,157 | 78 | | Residential mortgage | $1,016 | 8 | $992 | 8 | $936 | 7 | | Consumer | $2,006 | 15 | $2,033 | 16 | $2,106 | 17 | | Gross loans and leases | $13,152 | 101 % | $13,163 | 102 % | $13,199 | 102 % | | ACL | $(186) | (1) | $(188) | (2) | $(198) | (2) | | Net loans and leases | $12,966 | 100 % | $12,975 | 100 % | $13,001 | 100 % | - Gross loan and lease portfolio decreased **$10.7 million (less than 1%) QoQ**, primarily due to the transfer of **$98.1 million Upstart loans** to held for sale, resulting in an **$8.1 million write-down**[8](index=8&type=chunk) - Excluding Upstart and Spring EQ runoff portfolios, gross loans and leases increased **$65.5 million, or 1% (2% annualized)**, driven by **C&I (7% annualized)**, **WSFS-originated consumer loans (23% annualized)**, and **residential mortgage (10% annualized)**[8](index=8&type=chunk) [Client Deposits](index=5&type=section&id=Client%20Deposits) Total client deposits increased by $242.4 million, or 1% (6% annualized), QoQ, mainly due to growth in Trust deposits. Noninterest demand deposits comprised 32% of average total client deposits, reflecting a strong deposit base. The loan-to-deposit ratio was 76%, indicating capacity for future loan growth Client Deposit Balances and Composition (Dollars in millions) | Client Deposits | June 30, 2025 | % | March 31, 2025 | % | June 30, 2024 | % | | :------------------------ | :------------ | :- | :------------- | :- | :------------ | :- | | Noninterest demand | $5,306 | 31 % | $4,947 | 29 % | $4,783 | 29 % | | Interest-bearing demand | $2,806 | 16 | $2,882 | 17 | $2,812 | 17 | | Savings | $1,452 | 9 | $1,463 | 9 | $1,537 | 9 | | Money market | $5,471 | 32 | $5,487 | 33 | $5,175 | 33 | | Total core deposits | $15,035 | 88 | $14,779 | 88 | $14,307 | 88 | | Time deposits | $2,086 | 12 | $2,100 | 12 | $1,984 | 12 | | Total client deposits | $17,121 | 100 % | $16,879 | 100 % | $16,291 | 100 % | - Total client deposits increased by **$242.4 million, or 1% (6% annualized)**, compared to 1Q 2025, primarily driven by an increase in Trust deposits[12](index=12&type=chunk) - Noninterest demand deposits comprised **32% of average total client deposits**, a **2% increase** compared with 1Q 2025[12](index=12&type=chunk) - The **loan-to-deposit ratio was 76%** at June 30, 2025, providing continued capacity to fund future loan growth[14](index=14&type=chunk) [Income Statement Analysis](index=6&type=section&id=Income%20Statement%20Analysis) [Net Interest Income](index=6&type=section&id=Net%20Interest%20Income) Net interest income increased by $4.3 million (2%) QoQ, reaching $179.5 million, driven by deposit repricing, higher noninterest deposits, and wholesale funding optimization. The net interest margin improved to 3.89%, up 1bp QoQ and 4bps YoY, despite a 7bps decrease in total loan yields due to the Upstart sale impact Net Interest Income (Dollars in millions) | (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :------------ | | Net interest income before purchase accretion | $177.5 | $173.1 | $172.7 | | Purchase accounting accretion | $2.0 | $2.1 | $1.7 | | Net interest income | $179.5 | $175.2 | $174.4 | | Net interest margin before purchase accretion | 3.84 % | 3.83 % | 3.81 % | | Purchase accounting accretion | 0.05 | 0.05 | 0.04 | | Net interest margin | 3.89 % | 3.88 % | 3.85 % | - Net interest income increased **$4.3 million, or 2%**, compared to 1Q 2025, driven by deposit repricing actions, higher cash balances from noninterest deposits, and wholesale funding optimization[16](index=16&type=chunk) - Net interest margin was **3.89%**, an increase of **1bp** compared to 1Q 2025 and **4bps** from 2Q 2024[18](index=18&type=chunk) - Total loan yields decreased **7bps QoQ to 6.60%**, while total client deposit costs decreased **8bps to 1.63%**[17](index=17&type=chunk) [Core Fee Revenue](index=8&type=section&id=Core%20Fee%20Revenue) Core fee revenue increased by $7.1 million, or 9% QoQ, reaching $88.0 million. This growth was primarily driven by a 12% increase in Wealth and Trust revenue, particularly from Institutional Services and BMT of DE, and included revenue from the Spring EQ earnout and WSFS Mortgage - Core fee revenue (noninterest income) of **$88.0 million increased $7.1 million, or 9%**, compared to 1Q 2025[25](index=25&type=chunk) - The increase was primarily driven by a **$4.6 million, or 12%, increase in Wealth and Trust revenue**, with double-digit increases in Institutional Services and BMT of DE[25](index=25&type=chunk) - Core fee revenue increased **$2.0 million, or 2%**, compared to 2Q 2024, mainly due to a **17% increase in Wealth and Trust** and the Spring EQ earnout, partially offset by declines in Cash Connect and Capital Markets fees[26](index=26&type=chunk) - The **core fee revenue ratio was 32.8%** in 2Q 2025, up from **31.5%** in 1Q 2025[26](index=26&type=chunk) [Noninterest Expense](index=9&type=section&id=Noninterest%20Expense) Core noninterest expense increased by $8.2 million, or 5% QoQ, to $159.7 million. Excluding one-time credits from 1Q 2025, the increase was mainly due to higher salaries and benefits, technology costs, and loan workout expenses. The core efficiency ratio was 59.6% in 2Q 2025 - Core noninterest expense of **$159.7 million increased $8.2 million, or 5%**, compared to 1Q 2025[28](index=28&type=chunk) - Excluding one-time credits (approximately **$4.0 million**) in 1Q 2025, the increase was primarily driven by higher salaries and benefits, technology costs, loan workout, and other credit costs[28](index=28&type=chunk) - The quarter included **$1.6 million of one-time insurance recoveries** at Cash Connect related to client termination losses from 4Q 2024[28](index=28&type=chunk) - The **core efficiency ratio was 59.6%** in 2Q 2025, compared to **59.0%** in 1Q 2025 and **59.8%** in 2Q 2024[28](index=28&type=chunk) [Income Taxes](index=9&type=section&id=Income%20Taxes) The income tax provision for 2Q 2025 was $23.3 million, up from $21.1 million in 1Q 2025 and $21.3 million in 2Q 2024, primarily due to higher income before taxes and certain tax credits in the prior year. The effective tax rate increased slightly to 24.4% from 24.3% QoQ and 23.5% YoY, mainly due to higher state taxes and reduced federal tax credits - Income tax provision was **$23.3 million** in 2Q 2025, compared to **$21.1 million** in 1Q 2025 and **$21.3 million** in 2Q 2024[29](index=29&type=chunk) - The effective tax rate was **24.4%** in 2Q 2025, up from **24.3%** in 1Q 2025 and **23.5%** in 2Q 2024, primarily due to higher state taxes and reduced federal tax credits[30](index=30&type=chunk) [Asset Quality](index=7&type=section&id=Asset%20Quality) [Asset Quality Metrics](index=7&type=section&id=Asset%20Quality%20Metrics) Asset quality metrics showed a decrease in nonperforming assets QoQ, primarily due to a C&I credit payoff, while problem assets remained flat. Net charge-offs significantly decreased to $9.8 million, or 30bps (annualized), partly due to the Upstart sale impact. Total net credit costs also decreased, but included additional reserves for nonperforming loans and accounts receivable in Wealth and Trust Asset Quality Metrics (Dollars in millions) | (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :------------ | | Problem assets | $683.1 | $683.7 | $628.5 | | Delinquencies | $158.0 | $147.7 | $89.0 | | Nonperforming assets | $106.2 | $116.9 | $65.4 | | Net charge-offs on loans and leases | $9.8 | $24.6 | $14.2 | | Total net credit costs | $14.3 | $17.6 | $18.5 | | Ratio of nonperforming assets to total assets | 0.51 % | 0.57 % | 0.32 % | | Ratio of quarterly net charge-offs to average gross loans | 0.30 | 0.76 | 0.44 | | Ratio of allowance for credit losses to total loans and leases | 1.43 | 1.43 | 1.51 | - Nonperforming assets decreased **$10.7 million, or 6bps of total assets**, compared to 1Q 2025, primarily due to the payoff of a C&I credit[19](index=19&type=chunk) - Net charge-offs decreased **$14.8 million to $9.8 million, or 30bps (annualized)** of average gross loans, during the quarter, including the impact of the Upstart sale[21](index=21&type=chunk) - Total net credit costs were **$14.3 million**, a decrease of **$3.3 million QoQ**, but included **$6.3 million of additional reserves** on two nonperforming loans and a **$4.1 million increase** related to accounts receivable within the Wealth and Trust segment[22](index=22&type=chunk) [Capital Management](index=10&type=section&id=Capital%20Management) [Capital Ratios and Shareholder Returns](index=10&type=section&id=Capital%20Ratios%20and%20Shareholder%20Returns) WSFS maintained strong capital ratios, all substantially exceeding 'well-capitalized' regulatory benchmarks. Total stockholders' equity increased slightly, driven by quarterly earnings and a decrease in accumulated other comprehensive loss, partially offset by $87.3 million in capital returns to stockholders through share repurchases and dividends Capital Ratios at June 30, 2025 | Capital Ratio | Value | | :-------------------------- | :---- | | Common Equity Tier 1 capital | 14.07% | | Tier 1 capital | 14.07% | | Tier 1 leverage | 11.04% | | Total Risk-based capital | 15.86% | - Total stockholders' equity increased **$11.1 million (less than 1%)** during 2Q 2025, primarily due to quarterly earnings of **$72.3 million** and a **$27.3 million decrease** in accumulated other comprehensive loss, offset by **$87.3 million in capital returns**[33](index=33&type=chunk) - WSFS repurchased **1,556,199 shares of common stock for $77.7 million** and paid **$9.6 million in quarterly dividends**, totaling **$87.3 million in capital returned** to stockholders[7](index=7&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk) - Book value per share increased **3% QoQ to $47.71**, and tangible book value per share increased **4% QoQ to $30.32**[34](index=34&type=chunk) [Selected Business Segments](index=11&type=section&id=Selected%20Business%20Segments) [Wealth and Trust](index=11&type=section&id=Wealth%20and%20Trust) The Wealth and Trust segment reported a 5% QoQ increase in pre-tax income to $30.7 million, driven by higher fee revenue (transaction and account growth in Institutional Services and BMT of DE, seasonal tax activity in Private Wealth Management) and net interest income. This was partially offset by increased provision for credit losses due to an ACL adjustment for accounts receivable Wealth and Trust Selected Quarterly Performance (Dollars in millions) | (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :------------ | | Net interest income | $23.0 | $20.3 | $18.4 | | Provision for credit losses | $4.4 | $0.8 | — | | Fee revenue | $44.5 | $39.9 | $38.2 | | Noninterest expense | $32.3 | $30.0 | $28.0 | | Pre-tax income | $30.7 | $29.4 | $28.6 | | Institutional Services and BMT of DE fee revenue | $27.9 | $24.3 | $21.8 | | Private Wealth Management fee revenue | $16.1 | $15.1 | $15.8 | | AUM/AUA (in billions) | $92,386 | $89,633 | $84,938 | - Wealth and Trust pre-tax income increased **$1.4 million, or 5%**, compared to 1Q 2025[38](index=38&type=chunk) - Fee revenue increased due to transaction and account growth in Institutional Services and BMT of DE, and seasonal tax activity in Private Wealth Management[38](index=38&type=chunk) - AUM/AUA reached **$92.4 billion** at June 30, 2025, up from **$89.6 billion** in 1Q 2025 and **$84.9 billion** in 2Q 2024[38](index=38&type=chunk) [Cash Connect](index=12&type=section&id=Cash%20Connect) Cash Connect's pre-tax income increased by $1.7 million QoQ, primarily due to $1.6 million in one-time insurance recoveries. Excluding these recoveries, pre-tax income was flat. Net revenue decreased due to lower bailment volumes and a lower rate environment, but this was largely offset by lower expenses Cash Connect Selected Quarterly Financial Results (Dollars in millions) | (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------- | :------------ | | Net revenue | $21.1 | $21.5 | $27.6 | | Noninterest expense | $17.8 | $19.9 | $25.6 | | Pre-tax income | $3.3 | $1.6 | $2.0 | | Average cash managed | $1,329 | $1,407 | $1,530 | | Number of serviced non-bank ATMs and smart safes | 36,494 | 38,214 | 42,524 | | Net profit margin | 15.58 % | 7.24 % | 7.17 % | | ROA | 2.43 % | 1.21 % | 1.72 % | - Cash Connect pre-tax income increased **$1.7 million** compared to 1Q 2025, driven by **$1.6 million of one-time insurance recoveries**[42](index=42&type=chunk) - Net revenue decreased **$0.3 million** from 1Q 2025 due to lower bailment volumes, which were more than offset in expenses[42](index=42&type=chunk) - Excluding insurance recoveries, net profit margin increased to **7.95%** compared to **7.17%** in 2Q 2024[42](index=42&type=chunk) [Company Information](index=13&type=section&id=Company%20Information) [Earnings Release Conference Call](index=13&type=section&id=Earnings%20Release%20Conference%20Call) WSFS Financial Corporation will host a conference call on Friday, July 25, 2025, at 1:00 p.m. ET to discuss its 2Q 2025 results. Interested parties can access the live call and replay via the Investor Relations website - Management will conduct a conference call to review 2Q 2025 results at **1:00 p.m. Eastern Time (ET) on Friday, July 25, 2025**[44](index=44&type=chunk) - The conference call can be accessed live on the Investor Relations website (https://investors.wsfsbank.com), with a replay available shortly after[44](index=44&type=chunk) [About WSFS Financial Corporation](index=13&type=section&id=About%20WSFS%20Financial%20Corporation) WSFS Financial Corporation is a multi-billion dollar financial services company, with its primary subsidiary, WSFS Bank, being the oldest and largest locally headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region. As of June 30, 2025, it had $20.8 billion in assets and $92.4 billion in assets under management and administration, operating from 115 offices across multiple states - WSFS Financial Corporation is a **multibillion-dollar financial services company**, with **$20.8 billion in assets** and **$92.4 billion in assets under management and administration** as of June 30, 2025[45](index=45&type=chunk) - WSFS Bank is the **oldest and largest locally headquartered bank and wealth management franchise** in the Greater Philadelphia and Delaware region, operating from **115 offices**[45](index=45&type=chunk) - The company provides comprehensive financial services including commercial banking, consumer banking, treasury management, and trust and wealth management[45](index=45&type=chunk) [Forward-Looking Statements](index=14&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements based on various assumptions, subject to risks and uncertainties that could cause actual results to differ materially. Key risks include volatile market conditions, uncertain economic trends, potential loan losses, changes in interest rates, regulatory changes, and operational failures. The company disclaims any duty to revise or update these statements - The press release contains forward-looking statements subject to various assumptions, risks, and uncertainties that could cause actual results to differ materially[46](index=46&type=chunk) - Key risks include volatile market conditions, uncertain economic trends, potential loan losses, changes in market interest rates, regulatory changes, and operational failures[46](index=46&type=chunk) - The Company cautions readers not to place undue reliance on any such forward-looking statements and disclaims any duty to revise or update them, except as required by law[46](index=46&type=chunk) [Detailed Financial Statements and Reconciliations](index=15&type=section&id=Detailed%20Financial%20Statements%20and%20Reconciliations) [Summary Statements of Income](index=15&type=section&id=Summary%20Statements%20of%20Income) This section provides detailed unaudited summary statements of income for the three and six months ended June 30, 2025, March 31, 2025, and June 30, 2024, including interest income and expense, noninterest income and expense, provision for credit losses, and net income attributable to WSFS, along with key performance ratios Summary Statements of Income (Unaudited) - Key Figures (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :------------ | | Total interest income | $253,190 | $250,878 | $265,237 | | Total interest expense | $73,695 | $75,662 | $90,788 | | Net interest income | $179,495 | $175,216 | $174,449 | | Provision for credit losses | $12,621 | $17,350 | $19,814 | | Total noninterest income | $88,009 | $80,897 | $91,598 | | Total noninterest expense | $159,343 | $151,795 | $155,768 | | Net income attributable to WSFS | $72,326 | $65,896 | $69,273 | | Diluted earnings per share | $1.27 | $1.12 | $1.16 | Performance Ratios (Unaudited) | Performance Ratios | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------- | :------------ | :------------- | :------------ | | Return on average assets | 1.39 % | 1.29 % | 1.34 % | | Return on average equity | 10.94 % | 10.13 % | 11.39 % | | Net interest margin | 3.89 % | 3.88 % | 3.85 % | | Efficiency ratio | 59.46 % | 59.16 % | 58.46 % | [Summary Statements of Financial Condition](index=17&type=section&id=Summary%20Statements%20of%20Financial%20Condition) This section presents the unaudited summary statements of financial condition as of June 30, 2025, March 31, 2025, and June 30, 2024, detailing assets, liabilities, and stockholders' equity. It also includes key capital ratios and asset quality indicators, showing strong capital positions and a decrease in nonperforming assets QoQ Summary Statements of Financial Condition (Unaudited) - Key Figures (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :------------ | | Total assets | $20,763,292 | $20,548,950 | $20,744,530 | | Total client deposits | $17,121,469 | $16,879,061 | $16,291,081 | | Total liabilities | $18,091,074 | $17,887,741 | $18,266,173 | | Total stockholders' equity | $2,672,218 | $2,661,209 | $2,478,357 | | Nonperforming assets | $106,166 | $116,879 | $65,376 | | Allowance for credit losses | $189,121 | $188,088 | $198,260 | Capital Ratios (Unaudited) | Capital Ratios | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------- | :------------ | :------------- | :------------ | | Equity to asset ratio | 12.92 % | 13.00 % | 12.00 % | | Tangible common equity to tangible asset ratio | 8.62 | 8.63 | 7.56 | | Common equity Tier 1 capital | 14.07 | 14.10 | 13.29 | | Tier 1 leverage | 11.04 | 11.17 | 10.61 | | Total risk-based capital | 15.86 | 15.89 | 15.34 | [Average Balance Sheet](index=18&type=section&id=Average%20Balance%20Sheet) This section provides the unaudited average balance sheet for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, detailing average interest-earning assets, interest-bearing liabilities, and their corresponding yields and rates. It highlights the net interest margin and interest rate spread Average Balance Sheet - Key Figures (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :------------ | | Total interest-earning assets | $18,580,355 | $18,379,534 | $18,272,237 | | Total interest-bearing liabilities | $12,150,291 | $12,270,144 | $12,622,595 | | Net interest and dividend income | $179,495 | $175,216 | $174,449 | | Interest rate spread | 3.05 % | 3.05 % | 2.96 % | | Net interest margin | 3.89 % | 3.88 % | 3.85 % | - Average total loans and leases were **$13.13 billion** with a yield of **6.60%** in 2Q 2025, compared to **$13.19 billion** with a yield of **6.67%** in 1Q 2025[50](index=50&type=chunk) - Average total interest-bearing deposits were **$11.81 billion** with a cost of **2.38%** in 2Q 2025, compared to **$11.86 billion** with a cost of **2.43%** in 1Q 2025[50](index=50&type=chunk) [Stock Information and Other Financial Data](index=19&type=section&id=Stock%20Information%20and%20Other%20Financial%20Data) This section provides stock information, including market prices, book value per share, and tangible common book value per share, which all increased QoQ. It also includes other financial data such as the one-year repricing gap, MBS portfolio duration, unrealized losses on securities, and employee count Stock Information (Unaudited) | Stock Information | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------------- | :------------ | :------------- | :------------ | | Market price of common stock (Close) | $55.00 | $51.87 | $47.00 | | Book value per share of common stock | $47.71 | $46.31 | $42.01 | | Tangible common book value (TBV) per share of common stock | $30.32 | $29.25 | $25.20 | | Number of shares of common stock outstanding (000s) | 56,235 | 57,693 | 59,261 | Other Financial Data (Unaudited) | Other Financial Data | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------- | :------------ | :------------- | :------------ | | One-year repricing gap to total assets | 4.54% | 2.30% | (0.30)% | | Weighted average duration of the MBS portfolio | 6.2 years | 6.1 years | 5.7 years | | Unrealized losses on securities available for sale, net of taxes | $(445,065) | $(467,752) | $(549,039) | | Number of Associates (FTEs) | 2,375 | 2,336 | 2,279 | | Number of offices | 115 | 115 | 114 | | Number of WSFS owned and branded ATMs | 582 | 580 | 579 | [Non-GAAP Reconciliation](index=20&type=section&id=Non-GAAP%20Reconciliation) This section provides a detailed reconciliation of non-GAAP financial measures to their comparable GAAP measures, including core net interest income, core fee revenue, core noninterest expense, core efficiency ratio, tangible assets, tangible common equity, core ROA, core EPS, and core PPNR. These adjustments aim to provide a clearer view of ongoing operational performance Non-GAAP Reconciliation - Core Net Revenue (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :------------ | | Net interest income (GAAP) | $179,495 | $175,216 | $174,449 | | Core net interest income (non-GAAP) | $179,495 | $175,216 | $174,449 | | Noninterest income (GAAP) | $88,009 | $80,897 | $91,598 | | Core fee revenue (non-GAAP) | $87,991 | $80,897 | $86,034 | | Core net revenue (non-GAAP) | $267,486 | $256,113 | $260,483 | | Core noninterest expense (non-GAAP) | $159,672 | $151,476 | $155,993 | | Core efficiency ratio (non-GAAP) | 59.6 % | 59.0 % | 59.8 % | | Core fee revenue ratio (non-GAAP) | 32.8 % | 31.5 % | 33.0 % | Non-GAAP Reconciliation - Tangible Equity and Assets (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :------------ | | Total assets (GAAP) | $20,763,292 | $20,548,950 | $20,744,530 | | Total tangible assets (non-GAAP) | $19,785,746 | $19,565,068 | $19,748,349 | | Total stockholders' equity of WSFS (GAAP) | $2,682,728 | $2,671,614 | $2,489,580 | | Total tangible common equity (non-GAAP) | $1,705,182 | $1,687,732 | $1,493,399 | | Tangible common book value per share (non-GAAP) | $30.32 | $29.25 | $25.20 | | Tangible common equity to tangible assets ratio (non-GAAP) | 8.62 % | 8.63 % | 7.56 % | Non-GAAP Reconciliation - Core Profitability Metrics (Dollars in thousands) | (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------- | :------------ | | GAAP net income attributable to WSFS | $72,326 | $65,896 | $69,273 | | Adjusted net income (non-GAAP) attributable to WSFS | $72,128 | $66,137 | $64,757 | | GAAP return on average assets (ROA) | 1.39 % | 1.29 % | 1.34 % | | Core ROA (non-GAAP) | 1.38 % | 1.29 % | 1.25 % | | Earnings per share (diluted) (GAAP) | $1.27 | $1.12 | $1.16 | | Core earnings per share (non-GAAP) | $1.27 | $1.13 | $1.08 | | PPNR (non-GAAP) | $108,161 | $104,318 | $110,279 | | Core PPNR (non-GAAP) | $107,814 | $104,637 | $104,490 |
Should You Buy WSFS Financial (WSFS) After Golden Cross?
ZACKS· 2025-07-04 14:56
Core Viewpoint - WSFS Financial Corporation (WSFS) is showing potential for a bullish breakout as it has reached a key support level and experienced a "golden cross" in its moving averages [1][2]. Technical Analysis - A "golden cross" occurs when a short-term moving average, such as the 50-day, crosses above a long-term moving average, like the 200-day, indicating a potential bullish trend [2]. - The formation of a golden cross involves three stages: a downtrend that bottoms out, the crossover of moving averages, and subsequent upward momentum in stock prices [3]. Stock Performance - WSFS shares have increased by 13.9% over the past four weeks, indicating positive momentum [4]. - The company currently holds a 2 (Buy) rating on the Zacks Rank, suggesting strong potential for further gains [4]. Earnings Expectations - Recent changes in earnings estimates show two upward revisions with no downward changes in the last 60 days, contributing to a bullish outlook [4]. - The Zacks Consensus Estimate for WSFS has also increased, reinforcing investor confidence in the stock's upward trend [5].
Are You Looking for a Top Momentum Pick? Why WSFS Financial (WSFS) is a Great Choice
ZACKS· 2025-07-01 17:06
Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: WSFS Financial - WSFS Financial currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Over the past week, WSFS shares increased by 6.48%, outperforming the Zacks Financial - Savings and Loan industry, which rose by 2.05% [5] - In a longer timeframe, WSFS shares rose by 18.64% over the past quarter and 18.53% over the last year, while the S&P 500 increased by 10.83% and 14.92%, respectively [6] Trading Volume - WSFS's average 20-day trading volume is 364,265 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, one earnings estimate for WSFS has increased, raising the consensus estimate from $4.59 to $4.61 [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [9] Conclusion - Given the strong performance metrics and positive earnings outlook, WSFS Financial is recommended as a stock to consider for near-term investment opportunities [11]
3 Solid Stocks to Bet on From the Prospering Savings & Loan Industry
ZACKS· 2025-06-17 15:16
Industry Overview - The Zacks Savings and Loan industry is experiencing benefits from an improving lending environment due to the Federal Reserve's interest rate cuts, leading to stable funding costs and supporting net interest income (NII) and net interest margin (NIM) expansion [1][4] - The industry consists of specialized U.S. banks focusing on residential mortgage finance, offering various loan products and funding mortgages with savings insured by the FDIC [3] Industry Trends - Lower interest rates are expected to enhance NII and margins for savings and loan companies, which have faced pressure from higher funding costs [4] - A decline in mortgage rates is anticipated to boost purchase originations and refinancing activities, increasing loan demand across various categories [5] - Companies are transitioning to digital operations to remain competitive, despite facing challenges from legacy technologies [6][7] Asset Quality Concerns - Prolonged higher interest rates may lead to a deterioration in asset quality, as portfolio companies struggle to service debt amid geopolitical risks and tariff uncertainties [8] Industry Performance - The Zacks Savings and Loan industry ranks 14, placing it in the top 6% of over 245 Zacks industries, indicating solid prospects for outperformance [9][10] - The industry has underperformed the Zacks Finance sector but outperformed the S&P 500, with a collective gain of 20% over the past year compared to the S&P 500's 10.5% increase [12] Valuation Metrics - The industry has a trailing 12-month price-to-tangible book ratio (P/TBV) of 1.72X, below the five-year median of 1.97X, indicating a discount compared to the broader market [16][18] Company Highlights - **WSFS Financial**: With $20.5 billion in assets, the company expects mid-single-digit growth in commercial lending and a net interest margin of 3.80% for 2025, with a Zacks Consensus Estimate for current-year earnings at $4.59, reflecting a 4.6% year-over-year rise [21][22][23] - **Provident Financial**: After merging with Lakeland Bancorp, the company has $24.2 billion in assets and is expected to see a 69.4% year-over-year rise in earnings to $2.05 for 2025, with shares climbing 29.1% over the past year [26][29] - **Riverview Bancorp**: With assets of $1.51 billion, the company is focused on expanding revenue through commercial banking initiatives, expecting a 4.4% increase in earnings to 24 cents for fiscal 2025, with shares gaining 41.6% in the past year [32][34]
WSFS Financial (WSFS) - 2025 Q1 - Quarterly Report
2025-05-07 16:51
Financial Performance - The company reported earnings per share (EPS) of $1.12 and a return on assets (ROA) of 1.29% for the three months ended March 31, 2025, compared to $1.09 and 1.28% for the same period in 2024[175]. - Net income attributable to the company for the three months ended March 31, 2025, was $65.9 million, slightly up from $65.8 million in the same period of 2024[197]. - Noninterest income for the three months ended March 31, 2025, was $80.9 million, an increase of $5.0 million from $75.9 million in the same period of 2024, driven by a $6.4 million increase in the Wealth and Trust segment[205]. - Noninterest income increased by $5.0 million, driven by growth in Wealth and Trust services[197]. - Net interest income for the three months ended March 31, 2025, decreased by $0.1 million compared to the same period in 2024, totaling $175.2 million[199]. Asset and Liability Management - As of March 31, 2025, WSFS Financial Corporation had total assets of $20.5 billion and assets under management (AUM) and assets under administration (AUA) of $89.6 billion[173]. - Total liabilities decreased by $347.2 million to $17.9 billion at March 31, 2025, compared to December 31, 2024[176]. - Client deposits decreased by $150.7 million, primarily due to expected outflows in Trust deposits[180]. - The company maintained a total common equity Tier 1 capital ratio of 14.12% and total risk-based capital of 15.36%, well above regulatory requirements[181]. - Interest-earning assets exceeded interest-bearing liabilities maturing or repricing within one year by $473.6 million as of March 31, 2025[194]. Equity and Dividends - The Board of Directors approved a 13% increase in the quarterly cash dividend to $0.17 per share and authorized a share repurchase of 10% of outstanding shares[178]. - Stockholders' equity increased by $81.9 million to $2.7 billion at March 31, 2025, primarily due to $65.9 million in earnings[177]. - Stockholders' equity increased to $2,671,614 thousand as of March 31, 2025, from $2,589,752 thousand as of December 31, 2024[211]. - Tangible common equity as of March 31, 2025, was $1,687,732 thousand, up from $1,601,592 thousand as of December 31, 2024[211]. - Book value per share of common stock increased to $46.31 as of March 31, 2025, from $44.15 as of December 31, 2024[211]. Credit Quality - Nonperforming assets decreased by $10.5 million from December 31, 2024, to March 31, 2025, primarily due to the charge-off of a nonperforming commercial and industrial loan[191]. - The ratio of nonperforming assets to total assets improved from 0.61% at December 31, 2024, to 0.57% at March 31, 2025[191]. - The provision for credit losses rose by $2.2 million due to a charge-off of a nonperforming loan, partially offset by a lower provision on the consumer portfolio[197]. - The total allowance for credit losses decreased to $188.1 million as of March 31, 2025, from $195.3 million at December 31, 2024, with the ratio to total loans and leases decreasing to 1.43%[202]. - The charge-offs for the three months ended March 31, 2025, amounted to $27.1 million, with net charge-offs totaling $24.6 million[203]. Expenses and Taxation - Noninterest expense for the three months ended March 31, 2025, was $151.8 million, an increase of $2.7 million from $149.1 million for the same period in 2024, primarily due to a $6.7 million increase in salaries and benefits[206]. - Income tax expense for the three months ended March 31, 2025, was $21.1 million, compared to $21.2 million for the same period in 2024[207]. - The effective tax rate for the three months ended March 31, 2025, was 24.3%, slightly down from 24.4% in the same period of 2024[208]. Interest and Margin - The net interest margin increased to 3.88% for the three months ended March 31, 2025, up from 3.84% in the prior year, driven by deposit repricing actions[175]. - The interest rate spread for Q1 2025 was 3.05%, compared to 2.98% in Q1 2024[199]. - The total interest-earning assets were $18.38 billion, generating interest income of $250.9 million in Q1 2025[198]. - The total interest-bearing liabilities were $12.27 billion, with interest expense of $75.7 million in Q1 2025[198].
WSFS Financial (WSFS) - 2025 Q1 - Earnings Call Presentation
2025-05-02 07:14
WSFS Financial Corporation 1Q 2025 Earnings Release Supplement April 2025 1 Forward Looking Statements & Non-GAAP Forward Looking Statements: This presentation 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 objec ...
WSFS Financial (WSFS) - 2025 Q1 - Earnings Call Transcript
2025-04-25 23:37
Financial Data and Key Metrics Changes - WSFS Financial Corporation reported core earnings per share of $1.13, core return on assets (ROA) of 1.29%, core pre-provision net revenue (PPNR) of $104.6 million, and core return on tangible common equity of 16.97%, all showing improvements from the prior quarter [5][6][14] - The core net interest margin expanded by 8 basis points to 3.88%, with total funding costs reduced by 15 basis points to 1.77% [6][7] - Year-over-year, the net interest margin increased by 4 basis points despite absorbing 100 basis points of interest rate cuts [7] Business Line Data and Key Metrics Changes - Core fee revenue grew by 6% year-over-year, driven by a 19% increase in Wealth and Trust services [7] - Institutional Services and Bryn Mawr Trust Company of Delaware showed strong year-over-year growth, attributed to higher deal flow [8] - Client deposits declined by 1% linked quarter but increased by 4% year-over-year, with non-interest bearing deposits up 6% year-over-year [11][12] Market Data and Key Metrics Changes - The loan to deposit ratio remained stable at 77%, providing flexibility for future growth [12] - Total net credit costs increased to $17.6 million, with net charge-offs at $24.6 million, primarily due to a charge-off of a non-performing office-related loan [12][13] Company Strategy and Development Direction - The company announced a 13% increase in the quarterly dividend to $0.17 per share and an additional share repurchase authorization of 10% of outstanding shares [15] - A medium-term target CET1 ratio of 12% was established, with a gradual glide path over two to three years [15][66] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautious about expansion due to macroeconomic uncertainties, leading to postponed investments [40][42] - The overall credit quality remains stable, with no significant red flags identified in delinquency metrics [45] - Management expressed confidence in the ability to manage net interest margin compression through various tools, including deposit beta management and wholesale funding optimization [56][60] Other Important Information - The company returned $62.6 million of capital in the first quarter, including $53.8 million in buybacks and $8.8 million in dividends [14] - The capital ratios remain strong, with a CET1 of 14.1% and a tangible common equity (TCE) of 8.63% [14] Q&A Session Summary Question: Why was there no updated guidance in the presentation? - Management stated that it is typical to update guidance after the second quarter due to the volatility of the environment [22][23] Question: What is the outlook for net charge-offs? - Management indicated that the increase in charge-offs was due to a one-off item and that the overall portfolio is performing as expected [24][26] Question: How should expenses be viewed going forward? - Management noted that the first quarter expenses were lower than the run rate, estimating a future run rate around $160 million [33] Question: What is the outlook for commercial growth? - Management observed that clients are cautious about expansion due to market volatility, but the pipeline remains consistent [40][42] Question: How are deposit beta expectations evolving? - Management exceeded their initial goal for deposit beta, reaching 38% this quarter, and will continue to push for higher rates [56][63] Question: What is the timeframe for the CET1 target? - Management indicated a two to three-year glide path for the CET1 target, depending on macroeconomic conditions [66][68] Question: How is the company addressing potential impacts from new tariff policies? - Management is monitoring the situation closely but has not made changes to underwriting criteria yet due to the uncertainty [78][79] Question: What needs to happen for net growth to resume? - Management emphasized that greater certainty in the macro environment would help spur net growth, as clients are currently in a holding pattern [83][84]
WSFS Financial (WSFS) - 2025 Q1 - Earnings Call Transcript
2025-04-25 18:53
Financial Data and Key Metrics Changes - WSFS Financial Corporation reported core earnings per share of $1.13, core return on assets (ROA) of 1.29%, core pre-provision net revenue (PPNR) of $104.6 million, and core return on tangible common equity of 16.97%, all showing improvements from the prior quarter [5][6][14] - The core net interest margin expanded by 8 basis points to 3.88%, with total funding costs reduced by 15 basis points to 1.77% [6][7] - Year-over-year, net interest margin increased by 4 basis points despite absorbing 100 basis points of interest rate cuts [7] Business Line Data and Key Metrics Changes - Core fee revenue grew by 6% year-over-year, driven by a 19% increase in Wealth and Trust services [7] - Institutional Services and Bryn Mawr Trust Company of Delaware showed strong year-over-year growth, increasing deal flow and market share [8] - Client deposits declined by 1% linked quarter but increased by 4% year-over-year, with non-interest bearing deposits up 6% year-over-year [11][12] Market Data and Key Metrics Changes - The loan to deposit ratio remained stable at 77%, providing flexibility for future growth [12] - Total net credit costs increased to $17.6 million, with net charge-offs at $24.6 million, primarily due to a charge-off of a non-performing loan [12][13] Company Strategy and Development Direction - The company announced a 13% increase in the quarterly dividend to $0.17 per share and an additional share repurchase authorization of 10% of outstanding shares [15] - A medium-term target CET1 ratio of 12% was established, with a gradual glide path over two to three years [15][66] - The company aims to manage net interest margin through various tools, including optimizing wholesale funding and hedging programs [58][60] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautious about expansion due to macroeconomic uncertainties, leading to postponed investments [40][42] - The overall credit quality remains stable, with no significant red flags identified in delinquency metrics [45] - Management expressed confidence in the ability to navigate the current environment and indicated that an update on full-year outlook will be provided in the second quarter [16][68] Other Important Information - The company returned $62.6 million of capital in the first quarter, including $53.8 million in buybacks and $8.8 million in dividends [14] - The capital ratios remain strong, with a CET1 of 14.1% and TCE of 8.63%, significantly above regulatory targets [14] Q&A Session Summary Question: Why was there no updated guidance in the presentation? - Management stated that it is typical not to provide updated guidance until mid-year due to the volatility of the environment [22][23] Question: What is the outlook for net charge-offs? - Management indicated that the increase in charge-offs was due to a one-off item and that the rest of the portfolio is performing as expected [26][28] Question: How should expenses be viewed going forward? - Management noted that the first quarter expenses were lower than the run rate and provided insights into one-time items affecting the expense line [33] Question: What is the outlook for commercial growth? - Management observed that clients are cautious about expansion due to market volatility, but the pipeline remains consistent [40][42] Question: How are deposit beta expectations evolving? - Management exceeded their deposit beta goal of 40% and plans to continue pushing for higher rates [56][63] Question: What is the medium-term plan for the CET1 target? - Management outlined a two to three-year glide path to reach a CET1 target of 12%, depending on macroeconomic conditions [66][68]