WSFS Financial Corporation

WSFS reported core earnings per share of $1.66, core ROA of 1.55%, and core ROTCE of 20.2%. On a year-over-year basis, core net income increased 19%, core PPNR increased 10%, core EPS grew 31%, and tangible book value per share grew 13%. Net interest margin was 3.87%, up 4 bps sequentially, and core fee revenue rose 2% QoQ and 5% YoY. Client deposits increased 3% QoQ and 11% YoY; gross loans rose 1% QoQ. Net charge-offs were $7.1 million, or 21 bps of average loans, and problem assets, delinquencies, and nonperforming assets all improved year over year. For 2026, management now expects ROA of 1.50% with potential upside, deposit growth in the mid-to-high single digits, NIM of approximately 3.85%, fee revenue excluding Cash Connect to grow mid-to-high single digits, and net charge-offs of 15 to 25 bps of average loans.

Rodger Levenson framed the quarter as evidence of a strong franchise and said the bank is seeing momentum across deposits, loans, and fee businesses. He emphasized that client sentiment is good, businesses are investing despite cost and geopolitical uncertainty, and WSFS is winning share by combining service with a selective relationship approach. He also stressed that the bar for M&A is high because the company sees ample organic opportunity, but it would consider accretive deals in wealth, fees, or banking if they fit the strategy.

David Burg highlighted broad-based operating strength, including better deposit costs, margin expansion, and stronger fee income. He pointed to $77 million of capital returned in the quarter, including $66 million of buybacks, and said year to date the company has repurchased over 4% of outstanding shares and returned about 100% of net income to shareholders. He also explained that expense growth was about 4% YoY and is partly variable/revenue-driven, while reaffirming a disciplined cost base and a long-term goal of continued efficiency improvement. He said deposit competition remains elevated, which could pressure pricing, but the company expects NIM to remain stable around the updated 3.85% outlook.

Analysts focused on how WSFS can defend NIM and deposit costs, whether expense growth can stay contained, and how sustainable the strong loan and deposit trends are. Management said deposit competition has intensified, particularly in CDs, and that some deposit-cost pressure may continue even though the bank has a good liquidity profile. On loans, management said C&I growth remains a core priority and consumer growth should continue, though home lending may moderate as rates and seasonality turn less favorable. They also said fee growth from institutional services has been strong, but the current pace of market-share and transactional growth is unlikely to continue indefinitely.