WILMINGTON, Del.--(BUSINESS WIRE)--WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today announced its financial results for the third quarter of 2026.

Selected financial results and metrics are as follows:

GAAP results for the periods shown include items that are excluded from core results. Below is a summary of the financial effects of these items. For additional detail, refer to the Non-GAAP Reconciliation in the back of this press release.

CEO Commentary and Highlights

Rodger Levenson, Chairman, CEO and President, said, "WSFS continued to perform well in the third quarter with a 25% year-over-year increase in core EPS⁽²⁾. Our results include an expanded net interest margin, solid loan growth, and continued strong momentum in our Wealth and Trust franchise, which generated year-over-year fee growth of 30%. Additionally, we continued to execute our capital return framework through dividends and share repurchases, repurchasing nearly six percent of outstanding shares⁽³⁾ in the first three quarters of 2026. We look forward to finishing the year out strong in the fourth quarter, while providing momentum as we enter 2027."

Overall highlights include:

• Core EPS of $1.75, an increase of 5% compared to 2Q 2026 and 25% compared to 3Q 2025.
• Core ROA⁽²⁾ of 1.58%, an increase of 3bps compared to 2Q 2026 and 10bps compared to 3Q 2025.
• Gross loans and leases grew 5% annualized quarter-over-quarter.
• Net interest margin (NIM) of 3.88%, an increase of 1bp compared to 2Q 2026.
• Wealth and Trust delivered 30% year-over-year fee growth, continuing to produce consistent double-digit growth.
  • WSFS Institutional Services^® fees increased 45%, The Bryn Mawr Trust Company of Delaware (BMT of DE), our personal trust business, increased 22%, and Private Wealth Management increased 14%.
• Our core efficiency ratio⁽²⁾ was 56.1%, an improvement of 223bps compared to 2Q 2026 and 345bps compared to 3Q 2025.
• Repurchased $59.6 million of common stock (1.5% of outstanding shares⁽⁴⁾) and paid quarterly dividends of $10.2 million for a total capital return of $69.8 million.

Third Quarter 2026 Discussion of Financial Results

Balance Sheet

The following table summarizes loan and lease balances and composition at September 30, 2026 compared to June 30, 2026 and September 30, 2025:

At September 30, 2026, WSFS’ gross loan and lease portfolio increased $162.6 million, or 1% (not annualized), when compared with June 30, 2026. Home Lending continued to generate strong performance across both mortgages and home equity, with overall growth of 6%. Commercial loans increased 1%, led by growth in C&I, as well as an increase in commercial small business leases. This growth was partially offset by continued runoff of the Spring EQ portfolio.

Gross loans and leases at September 30, 2026 increased 5% when compared with September 30, 2025. Excluding the impacts from the sale of the credit card portfolio and runoff of Spring EQ, gross loans and leases increased 7%. This growth was driven by increases in residential mortgage (27%), home equity (20%), and C&I (9%), partially offset by a decline in commercial small business leases.

The following table summarizes client deposit balances and composition at September 30, 2026 compared to June 30, 2026 and September 30, 2025:

Total client deposits decreased $619.5 million, or 3% (not annualized), when compared with June 30, 2026. The reduction in ending deposits reflects the expected outflow of transactional deposits at the end of the prior quarter within WSFS Institutional Services^® and Commercial. These declines were partially offset by growth within interest-bearing demand (7%) due to seasonal increases in municipal deposits, money market (2%), and time deposits (2%). Average deposits increased slightly during the quarter, led by Commercial and Small Business.

Total client deposits increased $1.2 billion, or 7% from September 30, 2025, with core deposits increasing 9%. This growth was driven by a 16% increase in noninterest demand deposits, with growth in WSFS Institutional Services^®, Commercial, and Consumer. Money market grew 9%, driven by growth across all business lines, while time deposits decreased 9%. Noninterest demand deposits increased to 33% of total client deposits, compared to 31% last year.

The deposit base remains well-diversified, with 56% of quarterly average client deposits coming from outside of our Consumer business. No- and low-cost deposit accounts⁽⁶⁾ represented 58% of average total client deposits with a weighted average cost of 31bps for the quarter. The loan-to-deposit ratio⁽⁷⁾ was 73% at September 30, 2026, providing capacity to fund ongoing loan growth.

Net Interest Income

Net interest income increased $4.1 million, or 2% (not annualized), compared to 2Q 2026, primarily driven by higher average loan balances and higher yields on loans and investment securities. The higher yields were partially offset by higher deposit costs as we continued to see elevated deposit pricing competition.

Net interest income increased $12.6 million, or 7%, compared to 3Q 2025, primarily driven by lower deposit costs and higher average loan balances. These increases were partially offset by lower loan yields following Federal Funds Rate cuts in 2025.

Total loan yields were 6.26%, an increase of 2bps when compared to 2Q 2026 and a decrease of 38bps when compared to 3Q 2025. The year-over-year decrease was primarily driven by the impact of the aforementioned interest rate cuts.

Total client deposit costs were 1.33% and interest-bearing deposit costs were 2.05%, increases of 4bps and 5bps, respectively, compared to 2Q 2026. Total client deposit costs decreased 29bps and interest-bearing deposit costs decreased 32bps compared to 3Q 2025. The quarter-over-quarter increase in total client deposit costs reflects elevated deposit cost competition and mix shift. The year-over-year decrease was driven primarily by deposit repricing actions and mix shift.

Net interest margin of 3.88% increased 1bp compared to 2Q 2026, primarily due to higher average loan balances and higher investment yields, partially offset by higher deposit costs. Net interest margin decreased 3bps from 3Q 2025 primarily due to the impact of the 2025 interest rate cuts, partially offset by higher investment yields and favorable balance sheet mix.

Asset Quality

Overall, most asset quality metrics were stable with delinquencies reaching their lowest level in two years, while year-to-date net charge-offs were 3bps of average gross loans.

Problem assets increased $57.5 million compared to June 30, 2026, driven by several downgrades, primarily within multifamily and construction, partially offset by payoffs. Delinquencies decreased $2.9 million, or 3bps of gross loans, compared to June 30, 2026, driven by commercial payoffs. Problem assets decreased 16% and delinquencies decreased 11% compared to September 30, 2025.

Nonperforming assets (NPAs) increased $1.7 million, or 1bp of total assets, compared to June 30, 2026. The increase in NPAs was primarily driven by a student housing-related loan, partially offset by payoffs of a C&I loan and a CRE office loan.

Net recoveries on loans and leases for the quarter were $0.6 million compared to net charge-offs of $7.1 million in 2Q 2026. The quarter included recoveries of $7.6 million from the payoff of NPAs noted above.

Total net credit costs increased $4.4 million when compared to 2Q 2026, driven by a specific reserve of $8.1 million on the student housing-related loan mentioned above and a $2.0 million write-down of an OREO property, partially offset by the aforementioned recoveries.

The ACL on loans and leases was $185.2 million as of September 30, 2026, an increase of $8.0 million when compared to June 30, 2026, and the ACL coverage increased 4bps to 1.36%.

Core Fee Revenue⁽⁹⁾

Core fee revenue (noninterest income) of $91.0 million decreased $1.2 million, or 1%, compared to 2Q 2026. We continued to see strong momentum in Wealth and Trust, which had an increase of $2.5 million, or 5%, due to growth across WSFS Institutional Services^® and Private Wealth Management. This increase was more than offset by a decline in Capital Markets revenue from lower demand for interest rate swaps due to the rate environment, as well as lower Cash Connect^® revenue driven by a decrease in cash volume.

Core fee revenue increased $3.0 million, or 3%, compared to 3Q 2025. The increase was driven by a $12.5 million, or 30%, increase in Wealth and Trust, including 45% growth in WSFS Institutional Services^®, driven by both Corporate Trust and Global Capital Markets, 22% growth in BMT of DE, and 14% growth in Private Wealth Management. These increases were partially offset by a $3.6 million decrease in Cash Connect^®, primarily due to the impact of interest rate cuts in 2025 and lower ATM volumes, as well as lower gains on the sale of mortgage and SBA loans as we retained more of our originated loans.

For 3Q 2026, our core fee revenue ratio⁽⁹⁾ was 31.6% compared to 32.3% in both 2Q 2026 and 3Q 2025. Fee revenue diversification is a strategic priority and we continue to see momentum in our fee businesses, particularly in Wealth and Trust.

Core Noninterest Expense⁽¹⁰⁾

Core noninterest expense of $161.5 million decreased $4.8 million, or 3% (not annualized), compared to 2Q 2026. The decrease is primarily due to lower external fraud losses, including recoveries of previously incurred losses, lower medical costs, and lower professional fees which were primarily driven by a recovery of legal expenses. These decreases were partially offset by an increase in occupancy expenses and loan workout and other credit costs due to the write-down of an existing OREO property.

Core noninterest expense decreased $0.7 million, or less than 1%, compared to 3Q 2025. Excluding Cash Connect^® external funding costs, which decreased due to lower rates and ATM volume, core noninterest expense increased $2.6 million⁽¹⁰⁾, or 2%. This increase reflects higher salaries and benefits primarily due to merit increases, higher equipment expenses from client transaction costs in Wealth and Trust and continued investment in technology across the franchise, as well as the OREO write-down noted above. These increases were partially offset by lower external fraud losses and professional fees.

Our core efficiency ratio⁽¹⁰⁾ was 56.1% in 3Q 2026, compared to 58.3% in 2Q 2026 and 59.5% in 3Q 2025, reflecting our focus on expense discipline while continuing to invest in the franchise.

Income Taxes

We recorded a $28.3 million income tax provision in 3Q 2026, compared to $26.8 million in 2Q 2026 and $24.4 million in 3Q 2025. The increases in income tax provision compared to 2Q 2026 and 3Q 2025 were primarily due to higher income before taxes.

The effective tax rate was 24.1% in 3Q 2026 compared to 24.1% in 2Q 2026 and 24.2% in 3Q 2025. The decrease in effective tax rate compared to 3Q 2025 is primarily due to increased federal tax credits.

Capital Management

Capital ratios remain strong and are all substantially in excess of the “well-capitalized” regulatory benchmarks at September 30, 2026, with a Common Equity Tier 1 capital ratio and Tier 1 capital ratio of 13.74%, Tier 1 leverage ratio of 10.40%, and Total Risk-based capital ratio of 15.47%.

WSFS’ total stockholders’ equity decreased $108.8 million, or 4%, during 3Q 2026. The decrease was primarily due to an increase in accumulated other comprehensive loss of $131.2 million, driven by market-value decreases on available-for-sale investment securities, and capital returns to stockholders of $69.8 million, partially offset by quarterly earnings of $89.3 million.

WSFS’ tangible common equity⁽¹¹⁾ decreased $104.4 million, or 6%, compared to June 30, 2026, primarily due to the reasons noted above. WSFS’ common equity to assets ratio decreased 19bps to 11.82% and tangible common equity to tangible assets ratio⁽¹²⁾ decreased 29bps to 7.82% at September 30, 2026.

At September 30, 2026, book value per share was $51.58, a decrease of $1.39, or 3% (not annualized), from June 30, 2026, and tangible book value per share⁽¹¹⁾ was $32.67, a decrease of $1.57, or 5% (not annualized), from June 30, 2026, primarily due to the increase in accumulated other comprehensive loss. Book value per share increased $1.91, or 4%, and tangible book value per share increased $0.56, or 2%, compared to 3Q 2025.

During 3Q 2026, WSFS repurchased 748,970 shares of common stock for an aggregate of $59.6 million and paid quarterly cash dividends of $10.2 million. Total capital returns to stockholders through share repurchases and quarterly dividends was $69.8 million. WSFS has 8,451,059 shares, or approximately 17% of outstanding shares as of September 30, 2026, available for repurchase.

The Board of Directors approved a quarterly cash dividend of $0.20 per share of common stock. The dividend will be paid on November 20, 2026 to stockholders of record as of November 6, 2026.

Selected Business Segments (included in previous results):

Wealth and Trust

The Wealth and Trust segment provides a broad array of planning and advisory services, investment management, trust services, credit and deposit products to individual, corporate, and institutional Clients.

Selected quarterly performance results and metrics are as follows:

Wealth and Trust pre-tax income was $52.7 million, which increased $5.0 million, or 10% (not annualized), compared to 2Q 2026, driven by increases in net interest income of $3.0 million and fee revenue of $2.3 million.

The increase in net interest income was driven by higher yields on interest-earning assets. The increase in fee revenue was driven by higher deal activity in WSFS Institutional Services^® and higher AUM-based fees.

Wealth and Trust pre-tax income increased $18.3 million, or 53%, compared to 3Q 2025, driven by increases in fee revenue of $12.4 million and net interest income of $10.6 million. These increases were partially offset by an increase in noninterest expense of $3.0 million.

The increase in fee revenue was driven by growth in WSFS Institutional Services^®, Private Wealth Management, and BMT of DE. The increase in net interest income was due to higher noninterest deposit balances in WSFS Institutional Services^®. The increase in noninterest expense was primarily due to higher salaries and benefits and client transaction costs, partially offset by a recovery of legal fees.

AUM/AUA increased $7.8 billion to $109.5 billion at the end of 3Q 2026 driven by account growth and market appreciation.

Cash Connect^®

Cash Connect^® is a premier provider of ATM vault cash, smart safe and cash logistics services in the United States, servicing non-bank ATMs and smart safes nationwide and supporting ATMs for WSFS Bank Clients.

Selected quarterly financial results and metrics are as follows:

Cash Connect^® pre-tax income of $2.9 million was down slightly compared to 2Q 2026. Net revenue decreased $0.5 million driven by lower cash volume as well as a decrease in units. Cash Connect^® net profit margin of 15.1% and ROA of 2.26% were both up compared to 2Q 2026.

Compared to 3Q 2025, pre-tax income increased $0.6 million, driven by lower cost of non-earning cash and lower noninterest expense. Net revenue decreased $2.8 million driven by lower ATM volume and the impact of lower rates, which were more than offset by lower funding costs in noninterest expense. Net profit margin increased 445bps compared to 3Q 2025, while ROA increased 59bps.

Cash Connect^® continues to shift its business mix from traditional non-bank ATMs to higher margin products, such as smart safe units and managed cash solutions. Cash Connect^® smart safe units have grown 1% quarter-over-quarter and 5% year-over-year.

Third Quarter 2026 Earnings Release Conference Call

Management will conduct a conference call to review 3Q 2026 results at 1:00 p.m. Eastern Time (ET) on Friday, October 23, 2026. Interested parties may access the conference call live on our Investor Relations website (https://investors.wsfsbank.com). For those who cannot access the live conference call, a replay will be accessible shortly after the event concludes through our Investor Relations website.

About WSFS Financial Corporation

WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region. As of September 30, 2026, WSFS Financial Corporation had $22.1 billion in assets on its balance sheet and $109.5 billion in assets under management and administration. WSFS operates from 115 offices, 87 of which are banking offices, located in Pennsylvania (59), Delaware (38), New Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management, and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Trust Advisors, LLC, Bryn Mawr Trust^®, The Bryn Mawr Trust Company of Delaware, Cash Connect^®, NewLane Finance^®, WSFS Wealth^® Management, LLC, WSFS Institutional Services^®, and WSFS Mortgage^®. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

Forward-Looking Statements

This press release contains estimates, predictions, opinions, projections and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. The words “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, difficult market conditions and unfavorable economic trends in the United States generally and in financial markets, particularly in the markets in which the Company operates and in which its loans are concentrated, including difficult and unfavorable conditions and trends related to housing markets, costs of living, unemployment levels, interest rates, supply chain issues, inflation, and economic growth; possible additional loan losses and impairment of the collectability of loans; losses incurred as a result of external fraud; the Company's level of nonperforming assets and the costs associated with resolving problem loans including litigation and other costs and complying with government-imposed foreclosure moratoriums; the credit risk associated with the substantial amount of commercial real estate, commercial and industrial, and construction and land development loans in the Company's loan portfolio; changes in market interest rates, which may increase funding costs and reduce earning asset yields and thus reduce margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of the Company's investment securities portfolio, which could impact market confidence in the Company's operations; the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company's operations, and potential expenses associated with complying with such regulations; the Company's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms; the impacts related to or resulting from bank failures and other economic industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions; changes in trade, monetary and fiscal policies and stimulus programs, laws and regulations and other activities of governments, agencies, and similar organizations, and the uncertainty of the short- and long-term impacts of such changes; any impairments of the Company's goodwill or other intangible assets, or equity investments; the success of the Company's growth plans across our WSFS Bank, Cash Connect^® and/or Wealth and Trust segments; the Company's ability to successfully integrate and fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and post-acquisition Client acceptance of the Company's products and services and related Client disintermediation; negative perceptions or publicity with respect to the Company generally and, in particular, the Company's Wealth and Trust business; failure of the financial and/or operational controls of the Company's Cash Connect^® and/or Wealth and Trust segments; adverse judgments or other resolution of pending and future legal proceedings, and costs incurred in defending such proceedings; the Company's reliance on third parties for certain important functions, including the operation of its core systems, and any failures by such third parties; system failures or cybersecurity incidents or other breaches of the Company's network security, particularly given remote working arrangements; any actual or perceived failure or deficiency in the use of artificial intelligence by the Company or third-party vendors or service providers; the Company's ability to recruit and retain key Associates; the effects of weather, including climate change, and natural disasters such as floods, droughts, wind, tornadoes, wildfires and hurricanes as well as effects from geopolitical instability, armed conflicts, public health crises and man-made disasters including terrorist attacks; the effects of regional or national civil unrest (including any resulting branch or ATM closures or damage); possible changes in the speed of loan prepayments by the Company's Clients and loan origination or sales volumes; possible changes in market valuations and/or the speed of prepayments of mortgage-backed securities (MBS) due to changes in the interest rate environment, and the related acceleration of premium amortization on prepayments in the event that prepayments accelerate; regulatory limits on the Company's ability to receive dividends from its subsidiaries, and pay dividends to its stockholders; any reputation, credit, interest rate, market, operational, litigation, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above; any compounding effects or unexpected interactions of the risks discussed above; and other risks and uncertainties, including those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 under the heading “Risk Factors” and in other documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any duty to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company for any reason, except as specifically required by law. As used in this press release, the terms "WSFS," "the Company," "registrant," "we," "us," and "our" mean WSFS Financial Corporation and its subsidiaries, on a consolidated basis, unless the context indicates otherwise.