WSFS Financial (US:WSFS)2026-01-26 21:10Financial Performance - WSFS reported 4Q 2025 EPS of $1.34, with a full-year EPS of $5.09, reflecting a 15% increase from 2024[2][4] - Core EPS for 4Q 2025 was $1.43, representing a 29% year-over-year growth[6][9] - Total net revenue for 2025 was $1,066.0 million, up from $1,046.4 million in 2024[4] - GAAP net income attributable to WSFS for Q4 2025 was $72,678,000, an increase from $64,202,000 in Q4 2024, reflecting a 13.5% year-over-year growth[54] - Adjusted net income (non-GAAP) for Q4 2025 was $77,678,000, compared to $65,776,000 in Q4 2024, marking a 18.0% increase[54] - Net income (GAAP) for the three months ended December 31, 2025, was $72.694 million, compared to $76.467 million for the previous quarter and $64.155 million for the same period last year[56] Revenue and Income Sources - Net interest income for 4Q 2025 was $187.4 million, a 2% increase from 3Q 2025 and a 5% increase from 4Q 2024[4][17] - Noninterest income for the three months ended December 31, 2025, was $84.521 million, slightly down from $83.307 million in the same period of 2024[46] - Core fee revenue increased to $90.1 million, up $2.1 million or 2% from 3Q 2025, driven by 9% growth across Wealth and Trust services[25] - Cash Connect reported net revenue of $20.7 million for Q4 2025, a decrease of $1.3 million from Q3 2025[41] - Adjusted Cash Connect net revenue for the three months ended December 31, 2025, was $20.735 million, down from $22.043 million in the previous quarter and $24.641 million a year ago[56] Asset and Deposit Growth - Total client deposits increased by $416.3 million, or 2% from 3Q 2025, with noninterest demand deposits growing by 6%[13][15] - Total assets increased to $21,314,076 thousand as of December 31, 2025, up from $20,840,415 thousand at September 30, 2025, representing a growth of 2.27%[48] - Total client deposits reached $17,642,488 thousand, up from $17,226,218 thousand, marking a growth of 2.42%[48] - Assets Under Management/Administration (AUM/AUA) grew to $97.4 billion, representing a 4% quarter-over-quarter and 9% year-over-year increase[39] Loan and Credit Metrics - Commercial and industrial (C&I) loans grew by 4% quarter-over-quarter, contributing to overall loan growth of 2%[10][9] - The loan-to-deposit ratio was 74% at December 31, 2025, indicating capacity for further loan growth[15] - Net loans and leases rose to $13,143,600 thousand, compared to $12,840,383 thousand in the previous quarter, reflecting an increase of 2.36%[48] - Provision for credit losses for the three months ended December 31, 2025, was $12.669 million, significantly higher than $8.036 million in the same period of 2024[46] Efficiency and Cost Management - Core noninterest expense decreased to $160.9 million, down $1.2 million or 1% from 3Q 2025, primarily due to lower Cash Connect external funding costs[27] - The efficiency ratio improved to 59.46% for the three months ended December 31, 2025, compared to 64.57% in the same period of 2024[47] - Core efficiency ratio (non-GAAP) improved to 57.9% in Q4 2025 from 59.5% in Q3 2025, indicating enhanced operational efficiency[53] Capital and Shareholder Returns - Tangible book value per share increased by 21% to $33.11, with core ROA of 1.39% reflecting a 13bps increase from 2024[6][8] - The Common Equity Tier 1 capital ratio was 13.92%, substantially above regulatory benchmarks, indicating strong capital management[31] - During 4Q 2025, the company repurchased 2,029,468 shares for $109.3 million, with total capital returned to stockholders reaching $324.7 million for the year[34] - Total stockholders' equity decreased by $14.7 million, or 1%, primarily due to capital returns of $118.5 million, offset by quarterly earnings of $72.7 million[32] Tax and Regulatory Compliance - The effective tax rate increased to 25.2% in 4Q 2025, compared to 24.2% in 3Q 2025, primarily due to higher nondeductible expenses[29] - The allowance for credit losses stood at $182,500 thousand, slightly down from $185,504 thousand, a decrease of 1.08%[48] Market and Operational Metrics - The market price of common stock closed at $55.24, reflecting a high of $58.86 and a low of $49.92 during the quarter[50] - The number of WSFS owned and branded ATMs decreased to 488 from 567 year-over-year[50] - The number of serviced non-bank ATMs and smart safes was 35,958 in Q4 2025, down from 36,511 in Q3 2025[41] - The number of associates (FTEs) remained stable at 2,335, slightly up from 2,309 a year ago[50] Future Outlook - The management will conduct a conference call on January 27, 2026, to review Q4 2025 results[43]