WSFS Financial (WSFS) investor relations material

Executive summary

• Core EPS was $1.75, up 25% YoY; reported diluted EPS rose 28% YoY. Core ROA was 1.58%, up 10 bps YoY, and core ROTCE was 20.74%.

• Core PPNR rose 15% YoY to $126.1 million and core net income rose 14%, supporting 25% core EPS growth.

Financial highlights

• Net interest margin was 3.88%, up 1 bp QoQ; net interest income rose 2% QoQ and 7% YoY to $196.6 million.

• Core fee revenue was $91.0 million, up 3% YoY; total fee revenue was up 5% YoY. Core net revenue was $287.6 million.

• Core noninterest expenses fell 3% QoQ and were generally flat YoY; Q3 expenses included $2 million–$3 million of favorable non-recurring items.

• GAAP net income attributable was $89.3 million, versus $76.4 million a year earlier; provision for credit losses was $8.4 million.

• Gross loans and leases grew 5% annualized QoQ; deposits were $18.4 billion, up 7% YoY and down 3% QoQ on expected transactional outflows.

Outlook and guidance

• Estimated deposit beta is ~35% at the 2026 exit up-cycle, assuming a December 25 bp rate hike; normalized beta through the increase cycle is expected at 45%–50%.

• Through-cycle loan and deposit growth expectations are mid-single digits; deposit growth is expected to normalize from the 10% YoY core deposit pace.

• Each 25 bp rate increase is expected to add 2–3 bps to NIM, potentially closer to 2 bps amid deposit competition.

• At least $1.1 billion of investment portfolio principal and interest cash flows are forecast over the next 24 months; reinvestment is expected to lift portfolio yield and NIM.

• Management expects to finish 2026 strongly and enter 2027 with momentum; wealth and trust's sustained growth goal is double digits, but Q3's 30% pace is not expected to continue.