Core Viewpoint - WSFS Financial (WSFS) is experiencing significant selling pressure, with a 6.9% decline over the past four weeks, but is positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better-than-previously predicted earnings [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating oversold conditions [2] - WSFS has an RSI reading of 29.64, suggesting that heavy selling may be exhausting itself, indicating a potential bounce back towards equilibrium in supply and demand [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that WSFS will report better earnings, leading to a 0.2% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7] - WSFS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]

Loan Portfolio Composition - The loan portfolio composition as of December 31, 2024, includes commercial and industrial loans at $2.66 billion (20.4%), owner-occupied commercial loans at $1.97 billion (15.2%), and commercial mortgages at $4.03 billion (31.0%) [58] - The total gross loans and leases increased to $13.19 billion in 2024 from $12.77 billion in 2023, reflecting a growth of approximately 3.3% [58] - The allowance for credit losses was $195.28 million, representing 1.5% of total loans and leases for both years [58] - The commercial mortgage portfolio was $4.0 billion, with the largest property types being retail-related ($1.3 billion), residential multi-family ($1.1 billion), and office ($0.6 billion) [66] - The commercial and industrial and owner-occupied commercial loan portfolios totaled $4.6 billion, accounting for 35% of the total loan and lease portfolio [68] - The commercial small business leases portfolio was $647.5 million, or 5% of total loans, with average deal sizes of approximately $29,000 [70] - At December 31, 2024, $1.5 billion was committed for construction loans, with $0.8 billion outstanding [67] - The residential loan portfolio included loans with loan-to-value ratios of up to 80%, with approximately $146.2 million in loans exceeding this ratio without private mortgage insurance [71] Consumer Loans - As of December 31, 2024, the total consumer loans amounted to $2.086 billion, an increase from $2.012 billion in 2023, representing a growth of approximately 3.7% [81] - Home equity lines of credit outstanding totaled $535 million, while installment loans reached $224.8 million, together accounting for about 37% of total consumer loans [80] - In 2024, the company originated $433.9 million in residential loans, up from $343.7 million in 2023, marking an increase of approximately 26.3% [83] - The company originated $2.0 billion in commercial and commercial mortgage loans in 2024, a decrease from $2.4 billion in 2023, reflecting a decline of about 16.7% [82] Financial Performance - For the year ended December 31, 2024, the net income attributable to the Company was $263.671 million, with a core ROA of 1.26% [104] - The tangible common equity to tangible assets ratio was 8.08% as of December 31, 2024, with tangible assets amounting to $19.826 billion [104] - Fee income from lending activities generated $7.9 million in 2024, compared to $8.8 million in 2023, showing a decrease of approximately 10.2% [87] Regulatory Environment - The Company is subject to extensive federal and state banking regulations, impacting its profitability and operational decisions [106] - The Federal Reserve conducts regular examinations of the Company, which influence its risk management and financial condition ratings [112] - The Company is a grandfathered unitary thrift holding company, allowing it to acquire non-banking companies without significant restrictions [117] - The Dodd-Frank Act requires the Company to act as a source of financial strength to the Bank during financial distress [119] - The Company relies on debt issuances and dividends from its Bank and other subsidiaries for cash flow, with federal regulations impacting dividend payments [121] - The Federal Reserve mandates that holding companies should only pay dividends from available earnings and maintain a strong capital position [121] - The regulatory capital requirements include a minimum common equity Tier 1 capital ratio of 4.5% of risk-weighted assets and a total capital ratio of at least 8% [130] - As of December 31, 2024, the Bank met all requirements for being classified as "well-capitalized" under regulatory standards [135] - The Company must file a notice with the Federal Reserve at least 30 days prior to any capital distribution, including dividends [136] - The OCC can prohibit capital distributions if deemed unsafe or unsound, ensuring the financial stability of the institution [137] Deposit Insurance and Risk Management - The maximum deposit insurance amount per depositor is $250,000, providing a safety net for customers [140] - The Bank is not currently in default on any FDIC assessment payments, allowing for continued capital distributions [138] - The capital ratios for the Bank and the Company indicate levels above the regulatory minimums, ensuring compliance and operational flexibility [133] - The FDIC's current risk-based premium system has initial assessment rates ranging from 3 to 30 basis points on insured deposits, with a designated reserve ratio of 2% for the Deposit Insurance Fund (DIF) [141] - The FDIC's restoration plan aims to restore the DIF reserve ratio to at least 1.35% by September 30, 2028, due to the DIF reserve ratio falling below the statutory minimum [141] - The Bank's deposit insurance costs have increased by 2 basis points as a result of the FDIC's final rule adopted on October 18, 2022 [142] - The Bank received a "satisfactory" rating in its most recent Community Reinvestment Act performance evaluation [160] Interest Rate Sensitivity - Total interest-rate sensitive assets amount to $19,311,916,000, with $9,391,543,000 maturing in less than one year [305] - Total interest-rate sensitive liabilities are $9,077,220,000, resulting in a positive interest-rate sensitive gap of $10,234,696,000 [305] - The one-year interest-rate sensitive assets to interest-rate sensitive liabilities ratio is 105.28% [305] - The one-year interest-rate sensitive gap represents 2.26% of total assets [305] - The allowance for credit losses (ACL) is established based on historical loss experience and current economic conditions, reflecting significant judgment [312] - The ACL may fluctuate due to changes in economic conditions, borrower circumstances, and macroeconomic variables [314] - Interest rates have a greater impact on the company's performance than inflation due to the monetary nature of its assets and liabilities [308] - The company estimates that 75% of money market deposits and 50% of savings and interest-bearing demand deposits are sensitive to interest rate changes [307] - The interest-sensitivity gap analysis is subject to variations as the company adjusts its interest sensitivity position throughout the year [306] Other Financial Activities - The Company issued $150.0 million of senior notes due 2030 with a fixed coupon rate of 2.75% until December 15, 2025, and a variable rate thereafter [100] - The Company assumed $70.0 million in subordinated notes due 2027, currently bearing interest at a variable rate of 6.67% [101] - The Company recorded investments in the RBC Trusts' common securities of $0.4 million each as investments in unconsolidated entities [99] - The Company repurchased three loans in 2024 for $0.7 million, one loan in 2023 for $0.8 million, and two loans in 2022 for $0.8 million [78]

Financial Data and Key Metrics Changes - The company reported core earnings per share of $1.11 for Q4 2024, with a full-year core earnings per share of $4.39, reflecting a strong performance [6] - Core return on assets was 1.24% for the quarter and 1.26% for the full year, while core return on tangible common equity was 16.55% for the quarter and 17.83% for the year [6] - Core fee revenue grew by 7% year-over-year in Q4, with a full-year growth of 19% [8] Business Line Data and Key Metrics Changes - The Wealth & Trust business achieved a record fee quarter of $40 million, contributing significantly to core fee revenue growth [8] - Core net interest margin was 3.80% for the quarter, up 2 basis points from the previous quarter [9] - Loans declined by 1% linked quarter but grew by 3% year-over-year, with mid-single-digit growth in commercial and industrial (C&I) and commercial mortgage segments [10] Market Data and Key Metrics Changes - Customer deposits grew by 4% linked quarter, with noninterest-bearing deposits increasing by 6% and comprising 31% of average deposits in Q4 [10] - The company finished the year with a loyalty deposit ratio of 77%, indicating strong customer retention [11] Company Strategy and Development Direction - The company aims for mid-single-digit loan growth in the Commercial portfolio and flat growth in the Consumer portfolio, with expectations of continued broad-based deposit growth [14] - The strategic focus includes optimizing investments made in the franchise and capitalizing on growth opportunities in fee businesses, particularly in Wealth & Trust [16][104] - The company plans to maintain an efficiency ratio of around 60% while continuing to invest in talent and technology [19][74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting another year of high performance with a core return on assets of approximately 1.25% [13] - The company anticipates net charge-offs to be between 35 basis points to 45 basis points of average loans for the year, reflecting normalization in credit [17] - Management highlighted the importance of managing expenses while continuing to invest in growth areas [33][71] Other Important Information - The company experienced a negative $4.7 million pre-tax impact from the termination of a relationship with a Cash Connect client, which is considered an isolated incident [7] - Nonperforming assets increased due to the migration of one relationship, but management believes these loans are well collateralized [12] Q&A Session Summary Question: Expense outlook and efficiency guidance - Management indicated that expenses were up about 50% year-over-year, primarily due to incentive compensation true-ups and investments in headcount [28][30] Question: Cash Connect profitability levers - Management discussed opportunities for pricing leverage and optimizing cash logistics to improve profitability despite interest rate impacts [36][38] Question: Capital levels and M&A interest - The company plans to return about 35% of net income through dividends and buybacks, while remaining open to M&A opportunities that are accretive [46][49] Question: Loan growth outlook and mix - Management detailed that consumer loan growth would be flat due to runoff from partnerships, while commercial loans are expected to grow mid-single digits [92][93]

WSFS Financial Corporation 4Q 2024 Earnings Release Supplement January 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 obj ...

Core Insights - WSFS Financial reported revenue of $261.51 million for the quarter ended December 2024, a decrease of 1.4% year-over-year, and EPS of $1.11, down from $1.15 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $266.75 million by 1.96%, while the EPS exceeded the consensus estimate of $0.98 by 13.27% [1] Financial Metrics - Net Interest Margin was reported at 3.8%, surpassing the two-analyst average estimate of 3.7% [4] - Efficiency Ratio stood at 64.6%, higher than the two-analyst average estimate of 61.5% [4] - Net Interest Income reached $178.21 million, exceeding the average estimate of $175.60 million based on two analysts [4] - Total Non-Interest Income was $83.31 million, below the two-analyst average estimate of $91.15 million [4] Stock Performance - Over the past month, WSFS shares returned +0.8%, compared to a +1.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

WSFS Financial (WSFS) came out with quarterly earnings of $1.11 per share, beating the Zacks Consensus Estimate of $0.98 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.27%. A quarter ago, it was expected that this bank holding company would post earnings of $1.08 per share when it actually produced earnings of $1.08, delivering no surprise.Over the last four quarters, the compa ...

Financial Performance - 4Q 2024 EPS was $1.09, with a full-year EPS of $4.41, reflecting strong financial performance [2] - Net interest income for 4Q 2024 was $178.2 million, while total net revenue was $261.5 million, showing a slight decrease from 3Q 2024 [3] - Core ROA for 4Q 2024 was 1.24%, up from 1.22% in 3Q 2024, indicating improved asset efficiency [7] - The efficiency ratio for 4Q 2024 was 64.6%, compared to 61.1% in 3Q 2024, reflecting increased noninterest expenses [3] - Net interest margin was 3.80%, an increase of 2bps from Q3 2024, but a decrease of 19bps from Q4 2023 [16] - Net income attributable to WSFS for the twelve months ended December 31, 2024, was $263.671 million, slightly down from $269.156 million in 2023 [43] - GAAP net income attributable to WSFS for Q4 2024 was $64,202, compared to $63,908 in Q4 2023, reflecting a year-over-year increase of 0.46% [50] Customer Deposits and Loans - Customer deposits increased by $602.8 million, or 4% (not annualized), compared to 3Q 2024, driven by growth across Trust, Consumer, and Commercial business lines [10] - Total customer deposits increased by $607.4 million, or 4%, from December 31, 2023, driven by growth in Consumer and Commercial businesses [11] - Total gross loans decreased by $123.1 million, or 1% (4% annualized), from 3Q 2024, primarily due to higher commercial payoffs [8] - The loan-to-deposit ratio was 77% at December 31, 2024, providing capacity for future loan growth [12] - Net loans and leases increased to $13,045,917, up from $12,612,470, representing a growth of 3.43% year-over-year [45] Noninterest Income and Expenses - Fee revenue in Wealth and Trust reached a quarterly record with a 12% year-over-year growth [7] - Core fee revenue for Q4 2024 was $83.2 million, a decrease of $6.9 million, or 8%, compared to Q3 2024, but an increase of $5.2 million, or 7%, compared to Q4 2023 [22] - Noninterest income for the three months ended December 31, 2024, was $83.307 million, a decrease of 7.8% from $90.158 million in the previous quarter [43] - Noninterest expense for Cash Connect increased to $25.2 million, up from $26.1 million in Q3 2024, largely due to one-time charges related to the terminated client [38] - Core noninterest expense increased to $167.0 million, up $3.3 million, or 2%, from Q3 2024, and up $27.2 million, or 19%, from Q4 2023 [24] Shareholder Actions - WSFS repurchased 393,238 shares of common stock at an average price of $53.27 per share, totaling $20.9 million in 4Q 2024 [7] - During Q4 2024, the company repurchased 393,238 shares of common stock for $20.9 million, with approximately 6% of outstanding shares remaining for repurchase under current authorization [31] Asset Management - Total Assets Under Management (AUM) reached $89.4 billion, reflecting a 6% increase compared to Q4 2023, despite a 2% decrease from Q3 2024 [36] - Wealth Management segment achieved pre-tax income of $33.1 million, a 9% increase from Q3 2024, driven by a $1.5 million rise in net interest income and a $3.0 million increase in fee revenue [34] Tax and Equity - The effective tax rate for Q4 2024 was 23.9%, down from 24.7% in Q3 2024 and 31.6% in Q4 2023 [26] - Total stockholders' equity decreased by $88.5 million, or 3%, during Q4 2024, primarily due to an increase in accumulated other comprehensive loss [29] - Book value per share was $44.15, a decrease of $1.22, or 3%, from Q3 2024, but an increase of $3.22, or 8%, compared to Q4 2023 [30] Risk Factors and Future Outlook - Forward-looking statements indicate potential risks including market conditions, interest rate changes, and regulatory compliance that could impact future performance [42] - The company is actively pursuing recovery of costs related to the terminated Cash Connect client through insurance and other means [38]

The upcoming report from WSFS Financial (WSFS) is expected to reveal quarterly earnings of $0.98 per share, indicating a decline of 14.8% compared to the year-ago period. Analysts forecast revenues of $266.75 million, representing an increase of 0.5% year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Before a company announ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer x Accelerated filer ☐ Emerging growth company ☐ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35638 WSFS FINANCIAL CORPORATION (Exact name of regi ...

Financial Data and Key Metrics Changes - Core EPS for Q3 2024 was $1.08 per share, with a core ROA of 1.22% and a core return on tangible common equity of 16.96% [3] - Loans and deposits increased by 5% and 3% respectively on an annualized basis, with a loan to deposit ratio of 80% [4] - Core net interest income grew by 2% linked quarter, while net interest margin decreased by 7 basis points to 3.78% [6] - Total stockholders' equity increased by 8% linked quarter, resulting in a book value per share of $45.37 and a tangible book value per share of $28.56 [7] Business Line Data and Key Metrics Changes - Core fee revenue reached $90.1 million, up 5% linked quarter and 23% year-over-year, with wealth management fee revenue declining by 3% linked quarter but increasing by 12% year-over-year [4] - Cash Connect revenue increased by 3% linked quarter and 50% year-over-year, driven by increased bailment revenues [5] - Core Banking revenue surged by 25% over the prior quarter, primarily due to an annual earn-out payment from the sale of Spring EQ [5] Market Data and Key Metrics Changes - The company updated its full-year outlook to reflect a 50 basis points rate cut, maintaining its outlook for loans, deposits, fee revenue growth, and efficiency ratio [8] - The updated estimate for Q4 net interest margin is projected to be between 3.70% and 3.75% [9] Company Strategy and Development Direction - The company is focused on optimizing its network and driving efficiency in its Cash Connect business, while also evaluating future origination volumes with Spring EQ [5][17] - Management emphasized the importance of organic growth and strategic market share gains, particularly in light of competitor dynamics [22][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainty but expressed confidence in the company's ability to grow and deliver strong results [10] - The company plans to provide a full-year outlook for 2025 in January, indicating a cautious but optimistic approach to future performance [10] Other Important Information - The company successfully completed its trust accounting system conversion and upgraded its client account portal, positioning itself for future growth [5] - Non-performing assets increased by 12 basis points quarter-over-quarter, primarily due to two previously identified problem loans [6] Q&A Session Summary Question: Impact of hedge program on NIM - Management explained that the hedge program mitigates asset sensitivity, with a previous guidance of 5 basis points of NIM reduction for each 25 basis point rate cut [14][32] Question: Fee revenue trends and market share gains - Management noted significant market share gains in Cash Connect and emphasized the need to optimize the network for profitability [15][16] Question: Charge-offs and NPAs - Management clarified that the uptick in charge-offs was expected and driven by specific problem loans that were being monitored [19][20] Question: Deposit data and rate cuts - Management discussed proactive measures taken to reduce CD pricing and manage deposit costs in response to rate cuts [21][22] Question: Commercial loan pipeline - The commercial loan pipeline remains consistent with past quarters, indicating stable growth prospects [24]