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 due to seasonal payoffs and business sales, but grew 3% year-over-year.

• Wealth and Trust business delivered record quarterly fee revenue of $40M+, driving 7% core fee revenue growth in Q4 and 19% for the year.

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

Financial highlights

• Core net interest margin was 3.80% in Q4, up 2 bps sequentially, despite rate cuts.

• Customer deposits grew $602.8M in Q4, with non-interest-bearing deposits comprising 31% of Q4 average deposits.

• Net interest income for Q4 2024 was $178.2M, essentially flat year-over-year and up $0.7M sequentially.

• Total net credit costs were $8.7M, down $11.4M from prior quarter; net charge-offs (excluding Upstart) were 20 bps for Q4.

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

Outlook and guidance

• 2025 outlook assumes one 25 bps rate cut in June; expects full-year core ROA of ~1.25%.

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

• Expects low single-digit deposit growth and net interest margin of ~3.80% for 2025.

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

• Net charge-offs expected between 35-45 bps of average loans; efficiency ratio target of 60%.