WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today released its financial results for the fourth quarter and full year of 2024.
Fourth Quarter 2024 Overview
In Q4 2024, WSFS reported net income attributable to the company of $64.2 million, or $1.09 per diluted share, compared to $64.4 million, or $1.08 per share in Q3 2024, and $63.9 million, or $1.05 per share in Q4 2023. The company’s return on average assets (ROA) for the quarter was 1.21%, slightly down from 1.22% in Q3 2024 but consistent with its strong historical performance.
Key drivers for the quarterly performance included growth in customer deposits and fee revenue, as well as a slight improvement in the net interest margin (NIM), which stood at 3.80% for Q4, a small increase from 3.78% in Q3 2024. The bank’s strong core deposit growth was reflected across its Trust, Consumer, and Commercial business lines, contributing to a 4% increase in customer deposits compared to both the previous quarter and Q4 2023.
The company’s noninterest income reached $83.3 million in Q4, slightly down from $90.2 million in Q3 but up from $87.2 million in Q4 2023. This decline was primarily due to a drop in fee-based income from certain business units, although fee revenue from WSFS’s Wealth and Trust segment posted record performance, growing 12% year-over-year.
WSFS also saw a reduction in its provision for credit losses in the quarter, totaling $8.0 million, a significant decrease from $18.4 million in Q3 2024 and $24.8 million in Q4 2023. The improvement in credit costs was due to better-than-expected credit performance and reduced net charge-offs.
The company’s noninterest expense increased to $169.1 million in Q4 2024, up from $163.7 million in Q3 2024 and $147.6 million in the same quarter last year. The rise was primarily due to higher compensation costs and expenses related to the ongoing optimization of real estate properties.
Full-Year 2024 Results
For the full year of 2024, WSFS reported net income of $263.7 million, or $4.41 per diluted share, compared to $269.2 million, or $4.40 per share, in 2023. Despite a slight decrease in annual earnings, the bank’s return on equity (ROE) remained solid at 9.7%, with a return on average assets (ROA) of 1.27%, down from 1.33% in the prior year.
The decrease in annual earnings was mainly due to higher credit costs and increased noninterest expenses, though these were partially offset by strong revenue growth, particularly in fee income from the Wealth and Trust division. Core earnings, excluding certain adjustments, were higher, with core ROA of 1.26% and core earnings per share (EPS) of $4.39.
The company’s fee revenue for 2024 totaled $340.9 million, a significant increase from $289.9 million in 2023, driven by growth across various business lines, including Wealth and Trust, which had a particularly strong year. Meanwhile, net interest income for the full year was $705.4 million, slightly down from $725.1 million in 2023 due to lower loan yields despite higher deposit and wholesale funding costs.
Balance Sheet and Asset Quality
As of December 31, 2024, WSFS’s total assets stood at $17.7 billion, up from $17.2 billion at the end of 2023. The company’s gross loans and leases decreased by 1% from the previous quarter but increased by 3% year-over-year, driven by growth in commercial mortgage, commercial and industrial (C&I) loans, and residential mortgages.
The company’s asset quality remained strong, with nonperforming assets increasing slightly to $127.4 million, or 0.61% of total assets, up from $91.3 million in Q3 2024. The increase was attributed to the migration of certain loans, though they remained well-collateralized. Net charge-offs for the quarter were $10.2 million, representing 0.31% of average gross loans, a significant decrease from $19.2 million in Q3 2024.
WSFS’s allowance for credit losses (ACL) was $195.3 million as of December 31, 2024, covering 1.48% of total loans. The bank’s provision for credit losses also decreased significantly to $8.0 million in Q4, reflecting the improvement in early-stage credit metrics.
Capital and Shareholder Returns
During Q4 2024, WSFS repurchased 393,238 shares of its common stock at an average price of $53.27 per share, totaling $20.9 million. For the full year, the company repurchased 2,049,739 shares, or approximately 3% of its outstanding shares, at an average price of $46.55 per share, returning $95.4 million of capital to shareholders. The company’s Board of Directors declared a quarterly cash dividend of $0.15 per share.
