WSFS Financial (WSFS) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 2024 results with core EPS of $1.11, core ROA of 1.24%, and core ROTCE of 16.55%; full-year 2024 core EPS was $4.39, core ROA 1.26%, and core ROTCE 17.83%.

• Customer deposits grew 4% sequentially and year-over-year, with broad-based growth across business lines.

• Loans declined 1% sequentially in Q4 but grew 3% year-over-year, with mid-single-digit growth in C&I and commercial mortgage.

• Wealth and Trust business delivered record quarterly fee revenue of $40M–$40.3M, driving overall fee growth.

• Termination of a Cash Connect client resulted in a $4.7M pre-tax negative impact, but this was an isolated event.

Financial highlights

• Q4 core fee revenue grew 7% year-over-year; full-year core fee growth was 19%.

• Core net interest margin was 3.80% in Q4, up two basis points sequentially.

• Customer deposits grew $602.8M in Q4 2024, up 4% for the year.

• Total net credit costs were $8.7M, down $11.4M from the prior quarter.

• Efficiency ratio improved to 63.8% core in Q4 2024, with a full-year core efficiency ratio of 60.8%.

Outlook and guidance

• 2025 outlook assumes one 25bp rate cut in June and targets full-year core ROA of ~1.25%.

• Project mid-single-digit commercial loan growth and flat consumer loan growth, with consumer impacted by runoff in Upstart and Spring EQ portfolios.

• Anticipate low single-digit deposit growth and net interest margin of ~3.80%.

• Fee revenue expected to grow mid-single digits; Wealth and Trust business to grow double digits.

• Net charge-offs expected between 35-45bps of average loans for 2025.