WSFS Financial (WSFS) - 2024 Q4 - Annual Results

Financial Performance - 4Q 2024 EPS was $1.09, with a full-year EPS of$ 4.41, reflecting strong financial performance [2] - Net interest income for 4Q 2024 was $178.2 million, while total net revenue was$ 261.5 million, showing a slight decrease from 3Q 2024 [3] - Core ROA for 4Q 2024 was 1.24%, up from 1.22% in 3Q 2024, indicating improved asset efficiency [7] - The efficiency ratio for 4Q 2024 was 64.6%, compared to 61.1% in 3Q 2024, reflecting increased noninterest expenses [3] - Net interest margin was 3.80%, an increase of 2bps from Q3 2024, but a decrease of 19bps from Q4 2023 [16] - Net income attributable to WSFS for the twelve months ended December 31, 2024, was $263.671 million, slightly down from$ 269.156 million in 2023 [43] - GAAP net income attributable to WSFS for Q4 2024 was $64,202, compared to$ 63,908 in Q4 2023, reflecting a year-over-year increase of 0.46% [50] Customer Deposits and Loans - Customer deposits increased by $602.8 million, or 4% (not annualized), compared to 3Q 2024, driven by growth across Trust, Consumer, and Commercial business lines [10] - Total customer deposits increased by$ 607.4 million, or 4%, from December 31, 2023, driven by growth in Consumer and Commercial businesses [11] - Total gross loans decreased by $123.1 million, or 1% (4% annualized), from 3Q 2024, primarily due to higher commercial payoffs [8] - The loan-to-deposit ratio was 77% at December 31, 2024, providing capacity for future loan growth [12] - Net loans and leases increased to$ 13,045,917, up from $12,612,470, representing a growth of 3.43% year-over-year [45] Noninterest Income and Expenses - Fee revenue in Wealth and Trust reached a quarterly record with a 12% year-over-year growth [7] - Core fee revenue for Q4 2024 was$ 83.2 million, a decrease of $6.9 million, or 8%, compared to Q3 2024, but an increase of$ 5.2 million, or 7%, compared to Q4 2023 [22] - Noninterest income for the three months ended December 31, 2024, was $83.307 million, a decrease of 7.8% from$ 90.158 million in the previous quarter [43] - Noninterest expense for Cash Connect increased to $25.2 million, up from$ 26.1 million in Q3 2024, largely due to one-time charges related to the terminated client [38] - Core noninterest expense increased to $167.0 million, up$ 3.3 million, or 2%, from Q3 2024, and up $27.2 million, or 19%, from Q4 2023 [24] Shareholder Actions - WSFS repurchased 393,238 shares of common stock at an average price of$ 53.27 per share, totaling $20.9 million in 4Q 2024 [7] - During Q4 2024, the company repurchased 393,238 shares of common stock for$ 20.9 million, with approximately 6% of outstanding shares remaining for repurchase under current authorization [31] Asset Management - Total Assets Under Management (AUM) reached $89.4 billion, reflecting a 6% increase compared to Q4 2023, despite a 2% decrease from Q3 2024 [36] - Wealth Management segment achieved pre-tax income of$ 33.1 million, a 9% increase from Q3 2024, driven by a $1.5 million rise in net interest income and a$ 3.0 million increase in fee revenue [34] Tax and Equity - The effective tax rate for Q4 2024 was 23.9%, down from 24.7% in Q3 2024 and 31.6% in Q4 2023 [26] - Total stockholders' equity decreased by $88.5 million, or 3%, during Q4 2024, primarily due to an increase in accumulated other comprehensive loss [29] - Book value per share was$ 44.15, a decrease of $1.22, or 3%, from Q3 2024, but an increase of$ 3.22, or 8%, compared to Q4 2023 [30] Risk Factors and Future Outlook - Forward-looking statements indicate potential risks including market conditions, interest rate changes, and regulatory compliance that could impact future performance [42] - The company is actively pursuing recovery of costs related to the terminated Cash Connect client through insurance and other means [38]