WSFS Financial (US:WSFS)2025-11-04 21:33Financial 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].