WSFS FINANCIAL CORP Q3 FY2024 earnings call

• Introduced new Executive Vice President and CFO David Burg. - Highlighted WSFS's strong franchise and diverse business model. - Mentioned loans and deposits growth, core fee revenue details. - Noted successful trust accounting system conversion and client account portal rollout. - Discussed Cash Connect growth and Core Banking increase. - Addressed net interest expense, margin, credit costs, and stockholders' equity changes. - Provided full-year outlook update including NIM, charge-offs, and ROA.

WSFS demonstrated strength in the third quarter. Core EPS was $1.08 per share, core ROA 1.22%, and core return on tangible common equity 16.96%. Loans increased 5% annually, deposits 3%. Core fee revenue was $90.1 million, up 5% linked quarter and 23% year-over-year. Wealth management fee revenue declined 3% linked quarter but rose 12% year-over-year. Cash Connect increased 3% linked quarter and 50% year-over-year. Core Banking increased 25% over prior quarter. Net interest income grew 2% linked quarter, net interest margin 3.78% (down 7 basis points from 2Q 2024). Total net credit costs were $20.1 million. Non-performing assets were 44 basis points, net charge-offs 58 basis points. Total stockholders' equity increased 8% linked quarter.

• Updated full-year net interest margin to approximately 3.80%, with 4Q NIM expected to be 3.70%-3.75%. - Reduced net charge-offs outlook to approximately 50 basis points. - Set ROA range at 1.20%-1.25%.

• Economic uncertainty. - Impact of interest rate changes on financial results. - Deposit pricing and market share dynamics. - Credit quality issues and potential loan workout challenges.

Q: Russell Gunther asks about hedge program impact on NIM and fee revenue trend.

A: David Burg discusses hedge program mitigant to asset sensitivity and Cash Connect outlook.

Q: Kate Ashley asks about charge-offs and NPAs.

A: David Burg explains commercial charge-offs and resolution efforts with problem loans.

Q: Sharanjit Cheema asks about deposit data and actions post-rate cut.

A: David Burg talks about deposit actions like CD pricing changes and portfolio management.

Q: Sharanjit Cheema asks about commercial loan pipelines.

A: Steve Clark provides details on commercial loan pipeline consistency.

Q: Frank Schiraldi asks about problem assets and NIM impact of rate cuts.

A: David Burg and Rodger Levenson discuss problem assets driven by specific credits and hedging program mitigation.

Q: Frank Schiraldi asks about bank M&A.

A: Rodger Levenson talks about focus on organic growth and high bar for M&A opportunities