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][4] - Year-over-year, core net income increased by 21%, core PP&R grew by 6%, and core earnings per share rose by 30% [3][4] - 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 by 5% year over year, with non-interest deposits growing by 12% year over year [5] Market Data and Key Metrics Changes - Total net credit costs were $8.4 million this quarter, down $5.9 million compared to the prior quarter [7] - Non-performing assets (NPAs) declined by over 30% to 35 basis points, with delinquencies down by 34% [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 [8] - The management is focused on organic growth and is actively recruiting talent in commercial and wealth sectors [52][54] 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 despite potential rate cuts [9][56] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance [9] Other Important Information - The company returned $56.3 million of capital, including buybacks of $46.8 million, representing 1.5% of outstanding shares [8] - The commercial pipeline remains strong at approximately $300 million [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 [15] Question: How are reserve levels being managed amid macro volatility? - Management stated that they are conservatively maintaining reserves due to potential macroeconomic volatility, despite good asset quality trends [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 Cash Connect revenue forecast with changing rates? - Management confirmed that while revenue may decrease with rate cuts, expenses would also reduce, leading to overall profitability benefits [36][37] Question: What is the expected pace of loan payoffs from the consumer partnership? - The company expects a runoff of approximately $15 million to $17 million per month from the Spring EQ portfolio, while home lending is experiencing double-digit growth [42][43]

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][4] - Tangible book value per share increased by 12%, and net interest margin expanded by 2 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, with total client deposits increasing by 1% linked quarter and 5% year over year [5] - Core fee revenue was flat quarter over quarter but grew by 5% when excluding strategic exits in wealth and trust [4] - Loans decreased by 1% linked quarter, primarily due to the sale of the Upstart loan portfolio, but residential mortgage and WSFS-originated consumer loan portfolios saw increases of 5% and 3% respectively [5][6] Market Data and Key Metrics Changes - Non-interest deposits grew by 12% year over year, representing over 30% of total client deposits [5] - The commercial pipeline increased to approximately $300 million, indicating strong demand in both C&I and commercial real estate [7] Company Strategy and Development Direction - The company intends to maintain elevated levels of buybacks while being flexible based on macroeconomic conditions and business performance [8] - Management emphasized a focus on organic growth and potential acquisitions, particularly in the wealth and trust sectors [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality improvements, with total net credit costs decreasing to $8.4 million, down $5.9 million from the prior quarter [7] - The company plans to provide a full-year 2026 outlook in January, indicating a commitment to high performance despite uncertainties in the macro environment [9] 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 [8] - The CET1 ratio stands at 14.39%, well above the medium-term target of 12% [8] 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 growth rates [14][15] Question: How are reserve levels being managed amid macro volatility? - Management noted that while there is capacity to release some reserves, they are maintaining a conservative approach due to potential economic volatility [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 Bryn Mawr Trust up 20% year over year [26][28] Question: How does Cash Connect revenue forecast with changing rates? - Management confirmed that while revenue may decrease with rate cuts, expenses would also reduce, leading to a net profitability benefit [36][37] Question: What is the expected pace of loan payoffs from the consumer partnership? - The company expects a runoff of approximately $15 million to $17 million per month from the Spring EQ portfolio, while home lending is experiencing double-digit growth [42][43]

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]

Financial Data and Key Metrics Changes - Core earnings per share increased to $1.27, core return on assets at 1.3%, and core return on tangible common equity at 18.03%, all up from the first quarter [4][5] - Core net interest margin expanded by one basis point to 3.89%, with total funding costs reduced by nine basis points [5] - Total net credit costs were $14.3 million, with net charge-offs at 30 basis points, half attributed to the Upstart sale [7][9] Business Line Data and Key Metrics Changes - Wealth business grew 17% year over year, with institutional services up 39% and Brimmore Trust Company of Delaware up 7% [6] - Core fee revenue grew 9% quarter over quarter, driven by growth in wealth, capital markets, and mortgage [5] - Gross loans remained flat quarter over quarter, but commercial fundings reached the highest level in over a year, with C&I loan balances growing 2% linked quarter [6][7] 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 11% year over year [6] - The company expects low single-digit growth in the commercial portfolio and flat growth in the consumer portfolio, excluding Upstart [10] Company Strategy and Development Direction - The company is focused on accretive loan growth, particularly in the C&I sector, while maintaining profit margins [19][20] - Strategic opportunities are being pursued in the wealth and trust franchise, with a focus on broadening product offerings [12][31] - The company plans to continue executing buybacks as part of a multi-year glide path to reach a CET1 capital target of 12% [13] Management's Comments on Operating Environment and Future Outlook - Management noted a mild uptick in optimism among commercial borrowers, with some projects previously on hold now moving forward [23][24] - The outlook for net interest margin (NIM) has been raised to approximately 3.85%, factoring in expected interest rate cuts [11][38] - Management remains committed to driving high performance and growth, with expectations for continued strong performance in fee businesses [10][64] Other Important Information - The company completed the sale of its powder mill business, which is expected to create strategic opportunities despite some near-term revenue headwinds [12] - The company is managing expenses for growth, with a focus on investing in technology and talent [58] Q&A Session Summary Question: Loan growth expectations and commercial borrower sentiment - Management emphasized a focus on C&I growth and maintaining profit margins, with a mild uptick in optimism among borrowers regarding tariffs [19][23] Question: Expense outlook and run rate - Management indicated that the second quarter is a good run rate for future growth, with some potential increases in the back half of the year [25][28] Question: Impact of buybacks on CET1 and M&A opportunities - Management confirmed that buybacks are driven by excess capital, with a focus on investing in the business first, but open to M&A opportunities in fee businesses [30][31] Question: NIM outlook and potential upside - Management discussed the expected impact of interest rate cuts on NIM, with strategies in place to mitigate these effects [36][38] Question: Cash Connect profitability and pricing strategies - Management reported progress in driving profit margins in Cash Connect, with ongoing pricing increases expected to enhance profitability [61] Question: Long-term margin outlook - Management did not provide specific guidance for 2026 but aims to continue improving ROA and mitigating impacts from interest rate cuts [64]

Financial Data and Key Metrics Changes - Core earnings per share increased to $1.27, core return on assets at 1.3%, and core return on tangible common equity at 18.03%, all up from the first quarter [3][4] - Core net interest margin expanded by one basis point to 3.89%, with total funding costs reduced by nine basis points [4] - Core fee revenue grew by 9% quarter over quarter, driven by growth in wealth, capital markets, and mortgage businesses [4] Business Line Data and Key Metrics Changes - Wealth business grew by 17% year over year, with institutional services up by 39% and Brimmore Trust Company of Delaware up by 7% [5] - Total client deposits increased by 1% linked quarter and grew by 5% year over year, with non-interest deposits up by 11% year over year [5] - Gross loans remained flat quarter over quarter, but commercial fundings reached the highest level in over a year, with C&I loan balances growing by 2% linked quarter [6] Market Data and Key Metrics Changes - The company expects low single-digit growth in the commercial portfolio and flat growth in the consumer portfolio, excluding Upstart [8] - The outlook for net interest margin (NIM) has been raised to approximately 3.85%, factoring in two anticipated rate cuts [9] Company Strategy and Development Direction - The company is focused on accretive loan growth, particularly in the C&I sector, while maintaining profit margins [19][20] - Strategic opportunities are being pursued in the wealth and trust business, with a focus on broadening product offerings [10] - The company plans to continue executing buybacks as part of a multi-year glide path to reach a CET1 capital target of 12% [11] Management's Comments on Operating Environment and Future Outlook - Management noted a mild uptick in optimism among commercial borrowers, indicating a potential shift in sentiment regarding tariffs [22][23] - The company is managing expenses for growth, with continued investments in technology and talent [57] - Future performance is expected to be driven by fee businesses, which are accretive to ROA, despite temporary impacts from interest rate cuts [64] Other Important Information - The company returned $87.3 million of capital in the second quarter, including $77.7 million in buybacks, representing 2.7% of outstanding shares [7] - The sale of the Upstart portfolio is expected to impact net charge-offs, with total net charge-offs projected between 35 to 45 basis points for the year, excluding Upstart [10] Q&A Session Summary Question: Loan growth expectations and commercial borrower sentiment - Management emphasized a focus on C&I growth and noted a mild uptick in optimism among borrowers regarding project initiation [19][22] Question: Expense outlook and run rate - Management indicated that the second quarter represents a good run rate for future growth, with some potential increases due to business-as-usual activities [26][57] Question: Impact of buybacks on CET1 and M&A considerations - Management confirmed that buybacks are being executed due to excess capital, with a focus on investing in the business first before considering M&A opportunities [30][31] Question: NIM outlook and potential upside - Management discussed the expected impact of interest rate cuts on NIM, with a focus on mitigating these impacts through deposit repricing [38][41] Question: Cash Connect profitability and pricing strategies - Management reported progress in driving profit margins in Cash Connect, with ongoing pricing increases expected to enhance profitability [60][61]

Financial Data and Key Metrics Changes - The company 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][10] - Net interest margin expanded by eight basis points to 3.88%, reflecting a reduction in total funding cost by 15 basis points to 1.77% [5][6] - Total net credit costs increased to $17.6 million, up $8.9 million from the previous quarter, with net charge-offs at $24.6 million [9] 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 [6] - Institutional Services showed strong year-over-year growth, contributing to higher deal flow [6] - Cash Connect fees declined quarter over quarter due to seasonally lower volumes, but profit margins improved through expense and pricing offsets [7] Market Data and Key Metrics Changes - Client deposits declined by 1% linked quarter but increased by 4% year over year, with non-interest bearing deposits up by 6% year over year [8] - The loan to deposit ratio remained stable at 77%, providing flexibility for future growth [8] Company Strategy and Development Direction - The company plans to target a CET1 ratio of 12% in the medium term, with a gradual glide path over two to three years [11][56] - The company is committed to returning capital to shareholders, having returned $62.6 million in capital during the first quarter, including $53.8 million in buybacks and a 13% increase in the quarterly dividend [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are cautious about expansion due to macroeconomic uncertainty, leading to postponed investments [32][33] - The company remains engaged with clients and is monitoring the overall environment closely, indicating a stable outlook despite current challenges [9][20] Other Important Information - The company has a strong capital position with a CET1 ratio of 14.1% and TCE of 8.63%, significantly above regulatory targets [10] - The company is actively managing its net interest margin through various tools, including deposit beta management and optimization of wholesale funding [45][46] 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, and there is nothing to read into the absence of guidance this quarter [16][17] Question: What is the outlook for net charge-offs? - Management indicated that the increase in charge-offs was primarily due to a one-off item and that the rest of the portfolio is performing as expected [19][20] Question: How should expenses be viewed going forward? - Management provided insights on seasonal impacts and one-time items affecting expenses, suggesting a run rate between the first and fourth quarters [21][24] Question: What is the outlook for commercial growth? - Management noted that clients are cautious about expansion due to market volatility, but the pipeline remains consistent [32][33] Question: How are deposit beta expectations evolving? - Management exceeded their initial goal for deposit beta, reaching 38% this quarter, and plans to continue pushing higher [44][45] Question: What is the medium-term target for CET1? - Management indicated a two to three-year glide path to a 12% CET1 target, with discretion to adjust based on macroeconomic conditions [56][57] Question: How does the macro environment impact buyback decisions? - Management expressed confidence in their capital position but acknowledged the need to monitor the macro environment for any changes [59][60]