WSFS Financial (WSFS) - 2025 Q1 - Quarterly Results

Financial Performance - WSFS reported 1Q 2025 EPS of $1.12, a 2.8$1.09 in 4Q 2024[2] - Total net revenue for 1Q 2025 was $256.1 million, compared to$261.5 million in 4Q 2024[2] - Core fee revenue grew 6% year-over-year, driven by a 19% increase in the Wealth and Trust segment[6] - Core fee revenue decreased to $80.9 million, down 3$83.2 million in 4Q 2024, but increased 6% compared to 1Q 2024[27] - Adjusted net income (non-GAAP) attributable to WSFS for Q1 2025 was $66,137,000, compared to$67,330,000 in Q1 2024[56] - Return on average tangible common equity (non-GAAP) was 16.91% in Q1 2025, up from 18.76% in Q1 2024[56] Income and Expenses - Net interest income for 1Q 2025 was $175.2 million, down 2$178.2 million in 4Q 2024[2] - Noninterest expense decreased to $151.8 million in Q1 2025, down from$169.1 million in Q4 2024[48] - Core noninterest expense decreased to $151.5 million, down 9$20,548,950 thousand as of March 31, 2025, from $20,814,303 thousand at December 31, 2024, representing a decline of 1.28$81.9 million, or 3%, during 1Q 2025, primarily due to quarterly earnings of $65.9 million[34] - The equity to asset ratio improved to 13.00$29.25 in Q1 2025 from $24.52 in Q1 2024[55] Loan and Deposit Activity - Total client deposits decreased by$150.7 million, or 1%, compared to December 31, 2024[14] - Total commercial loans and leases grew by $82.5 million, or 1$12,975,323 thousand from $13,045,917 thousand, a reduction of 0.54$16,879,061 thousand from $17,029,808 thousand, a decline of 0.88$683.7 million, up 6% from $645.0 million as of December 31, 2024, and up 19$573.2 million as of March 31, 2024[21] - Delinquencies rose to $147.7 million, an increase of$25.9 million or 21bps compared to December 31, 2024, primarily due to the C&I portfolio[22] - Net charge-offs increased to $24.6 million, or 76bps of average gross loans, driven by a$15.9 million charge-off of a nonperforming C&I loan[23] - Nonperforming assets decreased to $116.9 million, down$10.5 million compared to December 31, 2024, primarily due to the aforementioned charge-off[24] - The provision for credit losses increased to $17.4 million in Q1 2025, compared to$15.1 million in Q1 2024[48] Dividends and Share Repurchase - The board approved a 13% increase in the quarterly dividend to $0.17 per share[7] - WSFS repurchased 1,027,214 shares at an average price of$52.37, totaling $53.8 million[9] - The quarterly cash dividend was increased by 13$0.17 per share, with an incremental share repurchase authorization of 10% of outstanding shares[32] Operational Metrics - The number of associates (FTEs) increased to 2,336 in Q1 2025 from 2,241 in Q1 2024[53] - The number of serviced non-bank ATMs and smart safes declined by 7,817 units, or 17% compared to Q1 2024, primarily due to a shift away from lower margin units[42] - The number of WSFS owned and branded ATMs increased to 580 in Q1 2025 from 583 in Q1 2024[53] Other Financial Metrics - Net profit margin improved to 7.38% in Q1 2025, up from 3.18% in Q1 2024, driven by pricing actions and a shift to higher margin services[41] - Cash Connect's net revenue for Q1 2025 was $21.5 million, a decrease of 10.8$24.1 million in Q1 2024[41] - Wealth and Trust pre-tax income decreased to $29.4 million, down 11$8.9 billion at the end of 1Q 2025, a decrease of $0.2 billion, or 2$(467,752,000) in Q1 2025 from $(539,939,000) in Q1 2024[53]