Q2 2025 WSFS Financial Corp Earnings Call Transcript
Key Points
- WSFS Financial Corp (WSFS) reported a core earnings per share of $1.27, with core return on assets at 1.3% and core return on tangible common equity at 18.03%, all showing improvement from the previous quarter.
- Core fee revenue increased by 9% quarter-over-quarter, driven by growth in wealth, capital markets, and mortgage sectors.
- Noninterest deposits grew 11% year-over-year, now representing over 30% of total client deposits.
- WSFS Financial Corp (WSFS) returned $87.3 million of capital in the second quarter, including $77.7 million in buybacks, representing 2.7% of outstanding shares.
- The company raised its net interest margin outlook to approximately 3.85% and increased its return on assets outlook for the year to approximately 1.30%.
- Loan yields were lower, primarily due to the sale of the Upstart portfolio, which accelerated the disposition of a nonstrategic portfolio.
- Net charge-offs were 30 basis points, with approximately half attributed to the impact of the Upstart sale.
- The sale of the Powdermill business and the unwinding of a wealth advisory partnership with Commonwealth Financial Network may result in near-term revenue headwinds.
- Cash Connect revenues are expected to decline due to interest rate reductions and lower volume.
- The company anticipates net charge-offs to be between 35 to 45 basis points of average loans for the year, excluding the full impact of Upstart.
Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to WSFS Financial Corporation second quarter earnings call. (Operator Instructions). After the speakers' remarks, there will be a question-and-answer session.
(Operator Instructions) I'd now like to turn the call over to David Burg, Chief Financial Officer. Sir, you may begin.
Thank you, Tina, and good afternoon, and thank you, everyone, for joining our second-quarter 2025 earnings call. Our earnings release and earnings release supplement, which we will refer to on today's call can be found in the Investor Relations section of our company website.
With me on this call are Rodger Levenson, Chairman, President and CEO; and Art Bacci, Chief Operating Officer. Prior to reviewing our financial results, I would like to read our safe harbor statement. Our discussion today will include information about our management's view of our
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