Q4 2024 WSFS Financial Corp Earnings Call Transcript
Key Points
- WSFS Financial Corp (WSFS) reported strong financial performance with a core earnings per share of $1.11 and a return on tangible common equity of 16.55% for the fourth quarter.
- The Wealth and Trust business delivered a record quarter with $40 million in revenue, contributing to a 19% year-over-year growth.
- Customer deposits grew by 4% in the quarter, with non-interest bearing deposits increasing by 6%, indicating strong customer engagement.
- WSFS Financial Corp (WSFS) achieved a core net interest margin of 3.80% for the quarter, despite interest rate cuts, showcasing effective deposit repricing strategies.
- The company expects continued broad-based deposit growth and mid-single-digit loan growth in the commercial portfolio for 2025, indicating a positive outlook for future growth.
- WSFS Financial Corp (WSFS) faced a $4.7 million pre-tax impact due to the termination of a relationship with a longstanding Cash Connect client, affecting revenue and core non-interest expense.
- Loans declined by 1% quarter-over-quarter due to higher seasonal payoffs and business sales, although there was a 3% year-over-year growth.
- Non-performing assets increased due to the migration of one relationship with two loans, although these are believed to be well collateralized.
- The Cash Connect business is expected to see a decline in revenue due to interest rate reductions, although this is offset by lower funding costs.
- The company anticipates net charge-offs to be between 35 to 45 basis points of average loans for the year, reflecting ongoing normalization of credit.
Thank you for standing by. My name is Jeanine and I will be your conference operator for today.
At this time, I would like to welcome everyone to the WSFS Financial Corporation fourth-quarter earnings call. (Operator Instructions)
I'd now like to turn the call over to David Burg, Chief Financial Officer. Sir, you may begin.
All right. Thank you, Jeanine and good afternoon, everyone. Thank you for joining our fourth-quarter 2024 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 website. With me on this call are Rodger Levenson, Chairman, President, and CEO; and Arthur 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 management's view of our future expectations, plans, and prospects that constitute forward
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