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What changed in WSFS FINANCIAL CORP's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of WSFS FINANCIAL CORP's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+356 added−351 removedSource: 10-K (2025-02-28) vs 10-K (2024-02-29)

Top changes in WSFS FINANCIAL CORP's 2024 10-K

356 paragraphs added · 351 removed · 290 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

149 edited+30 added−22 removed166 unchanged
Biggest changeDuring 2023, our Associates continued to embody our strategy through the following community enrichment activities: • Volunteered more than 18,000 hours during 2023 through Team WSFS, our corporate volunteer program; • In June, we held our first-ever "We Stand for Service Day", during which approximately 1,200 of our Associates provided nearly 5,000 hours of service to more than 80 nonprofit and community organizations across the Greater Philadelphia, Southern New Jersey and Delaware region. • We contributed $4.9 million to the WSFS CARES Foundation, the charitable giving arm of WSFS Bank, to enhance community support activities, which included a one-time $2.0 million special contribution in the fourth quarter. • The WSFS CARES Foundation provided grants and donations totaling more than $2.7 million to more than 390 community organizations located across Delaware, New Jersey and Pennsylvania, bolstering our key pillars of support including community investments, affordable housing, revitalization and business economic empowerment, education and leadership development, and strengthening those in need. 7 Diversity, Equity and Inclusion Beyond having diverse talent and Customers, WSFS works to create a truly inclusive environment with opportunities to find commonalities, build relationships and provide support to our diverse Communities from different backgrounds and cultures.
Biggest changeDuring 2024, our Associates continued to embody our strategy through the following community enrichment activities: • WSFS Associates surpassed the Company's 2024 volunteer commitment goal of 24,000 hours of service by providing over 33,000 hours of service to our Communities; • In June, we held our second annual "We Stand for Service Day", during which approximately 1,500 of our Associates provided more than 5,000 hours of service to more than 130 nonprofit and community organizations across the Greater Philadelphia, Southern New Jersey and Delaware region. • We contributed $3.3 million to the WSFS CARES Foundation, the charitable giving arm of WSFS Bank, to enhance community support activities.
Although WSFS owns an aggregate of $0.8 million of the common securities of Trust I and Trust II, the RBC Trusts are not consolidated into the Company’s Consolidated Financial Statements as the Company is not deemed to be the primary beneficiary of these entities.
Although WSFS owns an aggregate of $0.8 million of the common securities of Trust I and Trust II, the RBC Trusts are not consolidated into the Company’s Consolidated Financial Statements as the Company is not deemed to be the primary beneficiary of these entities.
Department of the Treasury, the Financial Crimes Enforcement Network (FinCEN), but compliance by individual institutions is also overseen by their primary federal regulator, which in the Bank's case is the OCC. 29 Bank Secrecy Act and anti-money laundering compliance has been a special focus of the OCC and the other federal banking agencies in recent years.
Department of the Treasury, the Financial Crimes Enforcement Network (FinCEN), but compliance by individual institutions is also overseen by their primary federal regulator, which in the Bank's case is the OCC. Bank Secrecy Act and anti-money laundering compliance has been a special focus of the OCC and the other federal banking agencies in recent years.
Although WSFS owns $2.0 million of the common securities of the Trust, the Trust is not consolidated into the Company’s Consolidated Financial Statements as the Company is not deemed to be the primary beneficiary of the entity. • Royal Bancshares Capital Trust I (Trust I) and Royal Bancshares Capital Trust II (Trust II) (collectively, the RBC Trusts), which were acquired from Bryn Mawr Bank Corporation.
Although WSFS owns $2.0 million of the common securities of the Trust, the Trust is not consolidated into the Company’s Consolidated Financial Statements as the Company is not deemed to be the primary beneficiary of the entity. • Royal Bancshares Capital Trust I (Trust I) and Royal Bancshares Capital Trust II (Trust II) (collectively, the RBC Trusts), were acquired from Bryn Mawr Bank Corporation.
We continue to execute our current Board-approved share repurchase plans, as well as any future Board-approved share repurchase plans, including opportunistically repurchasing shares, based on current valuation levels, above our stated practice of returning a minimum of 35% of annual net income to stockholders through dividends and share repurchases.
We continue to execute our current Board-approved share repurchase plan, as well as any future Board-approved share repurchase plans, including opportunistically repurchasing shares, based on current valuation levels, above our stated practice of returning a minimum of 35% of annual net income to stockholders through dividends and share repurchases.
Among these powers is the authority to proscribe the payment of dividends by bank and savings and loan holding companies. Bryn Mawr Capital Management, LLC Bryn Mawr Capital Management, LLC is a registered investment adviser under the Investment Advisers Act of 1940 (the Investment Advisers Act) and as such is supervised by the SEC.
Among these powers is the authority to proscribe the payment of dividends by bank and savings and loan holding companies. 23 Bryn Mawr Capital Management, LLC Bryn Mawr Capital Management, LLC is a registered investment adviser under the Investment Advisers Act of 1940 (the Investment Advisers Act) and as such is supervised by the SEC.
New credit actions to relationships exceeding $35 million, along with new single transactions of $30 million or more, new transactions exceeding the Bank’s Single Borrower or Project Hold limits and new transactions of $10 million or more with two or more Tier 1 exceptions require approval by Senior Loan Committee.
New credit actions to relationships exceeding $35.0 million, along with new single transactions of $30 million or more, new transactions exceeding the Bank’s Single Borrower or Project Hold limits and new transactions of $10.0 million or more with two or more Tier 1 exceptions require approval by Senior Loan Committee.
The Bank may not extend credit, lease, sell property, or furnish any service or fix or vary the consideration for the foregoing on the condition that (i) the customer obtain or provide some additional credit, property, or service from or to the Bank or the Company or their subsidiaries (other than a loan, discount, deposit, or trust service or that are related to and usually provided in connection with any such product or service) or (ii) the customer not obtain some other credit, property, or services from a competitor, except to the extent such a condition is reasonably imposed to assure the soundness of the credit extended.
The Bank may not extend credit, lease, sell property, or furnish any service or fix or vary the consideration for the foregoing on the condition that (i) the client obtain or provide some additional credit, property, or service from or to the Bank or the Company or their subsidiaries (other than a loan, discount, deposit, or trust service or that are related to and usually provided in connection with any such product or service) or (ii) the client not obtain some other credit, property, or services from a competitor, except to the extent such a condition is reasonably imposed to assure the soundness of the credit extended.
Commercial credit approvals require a minimum of two authorized signers, and three signers, of escalating authority, are required for new credit actions to relationships with exposure over $2.5 million up to $35 million.
Commercial credit approvals require a minimum of two authorized signers, and three signers, of escalating authority, are required for new credit actions to relationships with exposure over $2.5 million up to $35.0 million.
(2) Includes hybrid adjustable-rate mortgages. 14 Commercial Lending Pursuant to section 5(c) of the Home Owners’ Loan Act (HOLA), federal savings banks are generally permitted to invest up to 400% of their total regulatory capital in nonresidential real estate loans and up to 20% of their assets in commercial loans, but no more than 10% may be in loans that do not qualify as small business loans.
(2) Includes hybrid adjustable-rate mortgages. 13 Commercial Lending Pursuant to section 5(c) of the Home Owners’ Loan Act (HOLA), federal savings banks are generally permitted to invest up to 400% of their total regulatory capital in nonresidential real estate loans and up to 20% of their assets in commercial loans, but no more than 10% may be in loans that do not qualify as small business loans.
Subsidiaries As of December 31, 2023, the Company had six consolidated subsidiaries: WSFS Bank, The Bryn Mawr Trust Company of Delaware (BMT-DE), Bryn Mawr Capital Management, LLC (BMCM), WSFS Wealth Management, LLC (Powdermill ® ), WSFS SPE Services, LLC, and 601 Perkasie, LLC. • BMT-DE, a Delaware state chartered non-depository trust company, supplements our existing Wealth Management segment by offering Delaware advantage trust services including directed trusts, asset protection trusts and dynasty trusts via centers of influence such as estate planning attorneys.
Subsidiaries As of December 31, 2024, the Company had six consolidated subsidiaries: WSFS Bank, The Bryn Mawr Trust Company of Delaware (BMT-DE), Bryn Mawr Capital Management, LLC (BMCM), WSFS Wealth Management, LLC (Powdermill ® ), WSFS SPE Services, LLC, and 601 Perkasie, LLC. • BMT-DE, a Delaware state chartered non-depository trust company, supplements our existing Wealth Management segment by offering Delaware advantage trust services including directed trusts, asset protection trusts and dynasty trusts via centers of influence such as estate planning attorneys.
However, depending on future adjustments to the DIF’s estimated loss, the FDIC has retained the ability to cease collection early, extend the special assessment collection period, or impose a one-time final shortfall assessment.
However, depending on future adjustments to the DIF’s estimated loss, the FDIC retained the ability to cease collection early, extend the special assessment collection period, or impose a one-time final shortfall assessment.
Our current portfolio lending activity is concentrated on small- to mid-sized businesses in the mid-Atlantic region of the U.S., primarily in Delaware, southeastern Pennsylvania, southern New Jersey, Maryland and northern Virginia. Based on current market conditions, we expect our focus on growing commercial and industrial loans and other relationship-based commercial loans to continue during the remainder of 2024 and beyond.
Our current portfolio lending activity is concentrated on small- to mid-sized businesses in the mid-Atlantic region of the U.S., primarily in Delaware, southeastern Pennsylvania, southern New Jersey, Maryland and northern Virginia. Based on current market conditions, we expect our focus on growing commercial and industrial loans and other relationship-based commercial loans to continue during the remainder of 2025 and beyond.
We believe this trend has underserved small and medium size business owners who have become accustomed to dealing directly with their bank’s senior executives, discouraged consumer customers who often experience deteriorating levels of service in branches and other service outlets, and resulted in less empowered bank employees who are less engaged to provide good and timely service to their customers.
We believe this trend has underserved small and medium size business owners who have become accustomed to dealing directly with their bank’s senior executives, discouraged consumer clients who often experience deteriorating levels of service in branches and other service outlets, and resulted in less empowered bank employees who are less engaged to provide good and timely service to their clients.
If prior approval is necessary, the OCC will consider the effect of the acquisition on a safe and sound banking system, the branch office's role in providing fair access to financial services by helping to meet the credit needs of the entire community, the association's compliance with laws and regulations, and the fair treatment of customers including efficiency and better service.
If prior approval is necessary, the OCC will consider the effect of the acquisition on a safe and sound banking system, the branch office's role in providing fair access to financial services by helping to meet the credit needs of the entire community, the association's compliance with laws and regulations, and the fair treatment of clients including efficiency and better service.
BMCM had approximately $3.3 billion in AUM and AUA at December 31, 2023. • Powdermill ® provides multi-family office services to affluent clientele in the local community and throughout the U.S. • WSFS SPE Services, LLC provides commercial domicile services which include providing employees, directors, subleases of office facilities and registered agent services in Delaware and Nevada. • 601 Perkasie, LLC was formed to hold certain tax credit investments. 3 As of December 31, 2023, WSFS Bank had two wholly-owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC), and 1832 Holdings, Inc.
BMCM had approximately $3.7 billion in AUM and AUA at December 31, 2024. • Powdermill ® provides multi-family office services to affluent clientele in the local community and throughout the U.S. • WSFS SPE Services, LLC provides commercial domicile services which include providing employees, directors, subleases of office facilities and registered agent services in Delaware and Nevada. • 601 Perkasie, LLC was formed to hold certain tax credit investments. 3 As of December 31, 2024, WSFS Bank had two wholly-owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC), and 1832 Holdings, Inc.
We position ourselves with strategic partners when it is the best experience for our Customers and aligned to our strategic plan. Through these partnerships, we look forward to offering and supporting even more innovative products to the financial services marketplace, continuing our organizational learning in this fast-developing space, and participating in value creation for our stockholders.
We position ourselves with strategic partners when it is the best experience for our Clients and aligned to our strategic plan. Through these partnerships, we look forward to offering and supporting even more innovative products to the financial services marketplace, continuing our organizational learning in this fast-developing space, and participating in value creation for our stockholders.
If a savings association falls below any one of these floors, it becomes undercapitalized and subject to a variety of restrictions on its operations. There is no tangible capital requirement under prompt corrective action. As of December 31, 2023, the Bank met all of the prerequisites for well-capitalized status.
If a savings association falls below any one of these floors, it becomes undercapitalized and subject to a variety of restrictions on its operations. There is no tangible capital requirement under prompt corrective action. As of December 31, 2024, the Bank met all of the prerequisites for well-capitalized status.
As the financial services industry has consolidated, many independent banks have been acquired by national companies that have centralized their decision-making authority and focused their product offerings on a regional or even national customer base. As a result, many of these banks have lost the deep knowledge of the local markets expected by our Customer base.
As the financial services industry has consolidated, many independent banks have been acquired by national companies that have centralized their decision-making authority and focused their product offerings on a regional or even national client base. As a result, many of these banks have lost the deep knowledge of the local markets expected by our Client base.
To accomplish this, our Risk Management Administration and Credit and Asset Recovery departments monitor the asset quality of our loans and real estate portfolios and reports such information to the Consumer Credit Quality Committee, Credit Policy Committee, the Finance Division, and the Audit Committee of our Board of Directors. 18 SOURCES OF FUNDS We manage our liquidity risk and funding needs through our Treasury function and our Asset/Liability Committee.
To accomplish this, our Risk Management Administration and Credit and Asset Recovery departments monitor the asset quality of our loans and real estate portfolios and reports such information to the Consumer Credit Quality Committee, Credit Policy Committee, the Finance Division, and the Audit Committee of our Board of Directors. 17 SOURCES OF FUNDS We manage our liquidity risk and funding needs through our Treasury function and our Asset/Liability Committee.
Through our investments in the franchise and our ongoing commitment to Stellar Service, we intend to continue to lead the community and regional banking industry with regards to service delivery and Customer experience. Our organization is committed to product and service innovation as a means to drive growth and to stay ahead of changing customer demands and emerging competition.
Through our investments in the franchise and our ongoing commitment to Stellar Service, we intend to continue to lead the community and regional banking industry with regards to service delivery and Client experience. Our organization is committed to product and service innovation as a means to drive growth and to stay ahead of changing client demands and emerging competition.
Home equity lines of credit offer customers the convenience of checkbook and debit card access, and revolving credit features for a portion of the life of the loan and typically are more attractive in a low interest rate environment. Home equity lines of credit expose us to the risk that falling collateral values may leave us inadequately secured.
Home equity lines of credit offer clients the convenience of checkbook and debit card access, and revolving credit features for a portion of the life of the loan and typically are more attractive in a low interest rate environment. Home equity lines of credit expose us to the risk that falling collateral values may leave us inadequately secured.
Deposits WSFS Bank primarily attracts deposits through its retail branch offices and loan production offices, in Delaware, southeastern Pennsylvania and southern New Jersey, as well as through our digital banking platforms. WSFS Bank offers various deposit products to our customers, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts and certificates of deposit.
Deposits WSFS Bank primarily attracts deposits through its retail branch offices and loan production offices, in Delaware, southeastern Pennsylvania and southern New Jersey, as well as through our digital banking platforms. WSFS Bank offers various deposit products to our Clients, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts and certificates of deposit.
The Wealth Management segment provides a broad array of planning and advisor services, investment management, personal and institutional trust services, and credit and deposit products to individuals, corporate, and institutional clients. WSFS Bank As of December 31, 2023, WSFS Bank's banking business had a total loan and lease portfolio of $12.8 billion.
The Wealth Management segment provides a broad array of planning and advisor services, investment management, personal and institutional trust services, and credit and deposit products to individuals, corporate, and institutional clients. WSFS Bank As of December 31, 2024, WSFS Bank's banking business had a total loan and lease portfolio of $12.8 billion.
Private Wealth Management includes businesses that operate under the bank’s charter, through a broker/dealer and as a registered investment advisor (RIA). It generates revenue through fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody.
Private Wealth Management includes businesses that operate under the bank’s charter, through a third-party broker/dealer, and as a registered investment advisor (RIA). It generates revenue through fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody.
Our mission is simple: “We Stand for Service.” Our strategy of “Engaged Associates, living our culture, enriching the Communities we serve” focuses on exceeding Customer expectations, delivering stellar experiences and building customer advocacy through highly-trained, relationship-oriented, friendly, knowledgeable and empowered Associates.
Our mission is simple: “We Stand for Service®.” Our strategy of “Engaged Associates, living our culture, enriching the Communities we serve” focuses on exceeding Client expectations, delivering stellar experiences and building client advocacy through highly-trained, relationship-oriented, friendly, knowledgeable and empowered Associates.
We believe the essence of being a community bank means that we are: • Small enough to offer Customers responsive, personalized service and direct access to decision makers, yet • Large enough to provide the products, services and balance sheet lending capacity needed by our target market Customers.
We believe the essence of being a community bank means that we are: • Small enough to offer Clients responsive, personalized service and direct access to decision makers, yet • Large enough to provide the products, services and balance sheet lending capacity needed by our target market Clients.
Those investments are expected to provide our Customers with leading edge products and elevate our Associates, as they strive to serve in a competitive and compelling way. We are designing and integrating solutions to provide personalized experiences to our Customers, while retaining the essence of what makes WSFS great.
Those investments are expected to provide our Clients with leading edge products and elevate our Associates, as they strive to serve in a competitive and compelling way. We are designing and integrating solutions to provide personalized experiences to our Clients, while retaining the essence of what makes WSFS great.
The capital ratios for the Bank and the Company, as of December 31, 2023, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well-capitalized.” 26 Prompt Corrective Action All banks and savings associations are subject to a “prompt corrective action” regime.
The capital ratios for the Bank and the Company, as of December 31, 2024, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well-capitalized.” 26 Prompt Corrective Action All banks and savings associations are subject to a “prompt corrective action” regime.
This manifests itself in: • Disciplined lending - We maintain discipline in our lending with a particular focus on portfolio diversification and granularity. Diversification includes limits on loans to one borrower as well as industry and product concentrations. We supplement this portfolio diversification with a disciplined underwriting process and the benefit of knowing our customers.
This manifests itself in: • Disciplined lending - We maintain discipline in our lending with a particular focus on portfolio diversification and granularity. Diversification includes limits on loans to one borrower as well as industry and product concentrations. We supplement this portfolio diversification with a disciplined underwriting process and the benefit of knowing our Clients.
As another example, a savings and loan holding company may not impair its subsidiary savings association’s soundness by causing it to make funds available to non-depository subsidiaries or their customers if the Federal Reserve believes it not prudent for the Company to do so.
As another example, a savings and loan holding company may not impair its subsidiary savings association’s soundness by causing it to make funds available to non-depository subsidiaries or their clients if the Federal Reserve believes it not prudent for the Company to do so.
Census Bureau - Quick Facts 2020 - 2022 DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS’ EQUITY Condensed average balance sheets for each of the last two years and analyses of net interest income and changes in net interest income due to changes in volume and rate are presented in “Results of Operations” included in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 12 CREDIT EXTENSION ACTIVITIES Over the past several years we have focused on growing the more profitable, relationship-oriented segments of our loan portfolio as well as growing our consumer portfolio primarily through our consumer partnerships.
Census Bureau - Quick Facts 2020 - 2023 DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS’ EQUITY Condensed average balance sheets for each of the last two years and analyses of net interest income and changes in net interest income due to changes in volume and rate are presented in “Results of Operations” included in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 11 CREDIT EXTENSION ACTIVITIES Over the past several years we have focused on growing the more profitable, relationship-oriented segments of our loan portfolio as well as growing our consumer portfolio primarily through our consumer partnerships.
The FDIC will collect the special assessment over eight quarterly assessment periods starting with the first quarter of 2024, at a quarterly rate of 3.36 basis points (0.0336%). We recognized the entire special assessment expense of approximately $5.1.million in the fourth quarter of 2023.
The FDIC will collect the special assessment over eight initial quarterly assessment periods starting with the first quarter of 2024, at a quarterly rate of 3.36 basis points (0.0336%). We recognized the entire initial special assessment expense of approximately $5.1 million in 2023.
The interagency council of the agencies, the Federal Financial Institutions Examination Council, has issued several policy statements and other guidance for banks as new cybersecurity threats arise. FFIEC has recently focused on such matters as compromised customer credentials and business continuity planning.
The interagency council of the agencies, the Federal Financial Institutions Examination Council, has issued several policy statements and other guidance for banks as new cybersecurity threats arise. FFIEC has recently focused on such matters as compromised client credentials and business continuity planning.
As of December 31, 2023, WSFS had three unconsolidated subsidiaries, WSFS Capital Trust III (the Trust), Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II . • The Trust was formed in 2005 to issue $67.0 million aggregate principal amount of Pooled Floating Rate Capital Securities.
As of December 31, 2024, WSFS had three unconsolidated subsidiaries, WSFS Capital Trust III (the Trust), Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II . • The Trust was formed in 2005 to issue $67.0 million aggregate principal amount of Pooled Floating Rate Capital Securities.
Evaluations that result in a conclusion of “Needs to Improve” or “Substantial Non-Compliance” may block or impede regulatory approvals for other actions by an institution. The Bank received a rating of “Outstanding” in its most recent performance evaluation.
Evaluations that result in a conclusion of “Needs to Improve” or “Substantial Non-Compliance” may block or impede regulatory approvals for other actions by an institution. The Bank received a rating of “satisfactory” in its most recent performance evaluation.
Our partnership with Upstart allowed us to expand our personal loan offerings to a wider, more inclusive Customer base while diversifying our business and creating more digital-friendly Customer experiences. • LendKey Technologies, Inc.: A digital lending platform that specializes in student loans and student loan refinancing. 11 • Cred Technologies (cred.ai): A Philadelphia-based fintech company that provides a high-tech, mobile-first everyday card spending experience.
Our partnership with Upstart allowed us to expand our personal loan offerings to a wider, more inclusive Client base while diversifying our business and creating more digital-friendly Client experiences. • LendKey Technologies, Inc.: A digital lending platform that specializes in student loans and student loan refinancing. • Cred Technologies (cred.ai): A Philadelphia-based fintech company that provides a high-tech, mobile-first everyday card spending experience.
In addition to its focus on stellar customer experiences, WSFS Bank has continued to fuel growth and remain a leader in our community. We are a relationship-focused and locally-managed community banking and wealth franchise, complemented by nationwide businesses.
In addition to its focus on stellar client experiences, WSFS Bank has continued to fuel growth and remain a leader in our community. We are a relationship-focused and locally-managed community banking and wealth franchise, complemented by nationwide businesses.
We are focused on developing and maintaining a strong “culture of innovation” that solicits, captures, prioritizes and executes innovation initiatives, including feedback from our customers, as well as leveraging technology from product creation to process improvements.
We are focused on developing and maintaining a strong “culture of innovation” that solicits, captures, prioritizes and executes innovation initiatives, including feedback from our Clients, as well as leveraging technology from product creation to process improvements.
Cash Connect ® provides ATM vault cash, smart safe and cash logistics services in the U.S, servicing non-bank ATMs and smart safes nationwide and supporting ATMs for WSFS Bank Customers with one of the largest branded ATM networks in our region.
Cash Connect ® provides ATM vault cash, smart safe and cash logistics services in the U.S, servicing non-bank ATMs and smart safes nationwide and supporting ATMs for WSFS Bank Clients with one of the largest branded ATM networks in our region.
We are focused on developing and maintaining a strong “culture of innovation” that solicits, captures, prioritizes and executes innovation initiatives, including feedback from our customers, as well as leveraging technology from product creation to process improvements. We have embraced a partnership model to help diversify our consumer business and learn from innovators in the industry.
We are focused on developing and maintaining a strong “culture of innovation” that solicits, captures, prioritizes and executes innovation initiatives, including feedback from our Clients, as well as leveraging technology from product creation to process improvements. 10 We have embraced a partnership model to help diversify our consumer business and learn from innovators in the industry.
These relationships generally range in amounts of up to $100.0 million with an average loan balance in the portfolio of $1.4 million, and terms ranging from less than one year to ten years. The loans generally carry variable interest rates indexed to our WSFS prime rate, “Wall Street” prime rate or SOFR.
These relationships generally may range in amounts of up to $100.0 million with an average loan balance in the portfolio of $1.6 million, and terms ranging from less than one year to ten years. The loans generally carry variable interest rates indexed to our WSFS prime rate, “Wall Street” prime rate or SOFR.
The reference rate on these securities was updated to three-month term SOFR upon the discontinuation of LIBOR on June 30th, 2023. These securities are currently callable and have a maturity date of June 1, 2035.
The reference rate on these securities was updated to three-month term SOFR upon the discontinuation of LIBOR on June 30, 2023. These securities are currently callable and have a maturity date of June 1, 2035.
The federal banking agencies have, however, allowed banks and savings associations to offer combined-balance discount packages and otherwise to offer more favorable terms if a customer obtains two or more traditional bank products.
The federal banking agencies have, however, allowed banks and savings associations to offer combined-balance discount packages and otherwise to offer more favorable terms if a client obtains two or more traditional bank products.
These innovations have created internal efficiencies and valued services for our local banking customers, institutional clients and merchants across the nation. We intend to continue to leverage technology and innovation to grow our business and to successfully execute on our strategy. We maintain an organizational philosophy of continuous, prudent investment in technology to continue to meet our customer needs.
These innovations have created internal efficiencies and valued services for our local banking Clients, institutional Clients and merchants across the nation. We intend to continue to leverage technology and innovation to grow our business and to successfully execute on our strategy. We maintain an organizational philosophy of continuous, prudent investment in technology to continue to meet our Client needs.
Segment Information For financial reporting purposes, our business has three segments: WSFS Bank, Cash Connect ® and Wealth Management. The WSFS Bank segment provides loans and leases, deposits and other financial products to commercial and consumer customers.
Segment Information For financial reporting purposes, our business has three segments: WSFS Bank, Cash Connect ® and Wealth Management. The WSFS Bank segment provides loans and leases, deposits and other financial products to Commercial and Consumer Clients.
For additional information regarding FHLB stock, see Note 12 to the Consolidated Financial Statements. 19 Trust Preferred Borrowings In 2005, the Company issued $67.0 million of aggregate principal amount of Pooled Floating Rate Securities at a variable interest rate of 177 basis points over the three-month LIBOR rate.
For additional information regarding FHLB stock, see Note 12 to the Consolidated Financial Statements. 18 Trust Preferred Borrowings In 2005, the Trust issued $67.0 million of aggregate principal amount of Pooled Floating Rate Securities at a variable interest rate of 177 basis points over the three-month LIBOR rate.
At December 31, 2023 all regulatory capital levels for the Bank were in excess of "well-capitalized" levels. For the capital position of the Bank and the Company, refer to Note 13 of the Consolidated Financial Statements.
At December 31, 2024 all regulatory capital levels for the Bank were in excess of "well-capitalized" levels. For the capital position of the Bank and the Company, refer to Note 13 of the Consolidated Financial Statements.
As of December 31, 2023, Cash Connect ® also supports 590 owned or branded ATMs for WSFS Bank, which has one of the largest branded ATM networks in our market. 4 Wealth Management Our Wealth Management business provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate, and institutional clients.
As of December 31, 2024, Cash Connect ® also supports 567 owned or branded ATMs for WSFS Bank Clients, which has one of the largest branded ATM networks in our market. 4 Wealth Management Our Wealth Management business provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate, and institutional clients.
These leases included initial average deal sizes of approximately $28 thousand, with yields ranging from 5% to 25% and initial maturity terms of 12 to 84 months.
These leases included initial average deal sizes of approximately $29 thousand, with yields ranging from 5% to 25% and initial maturity terms of 12 to 84 months.
In addition, our diversified fee revenue businesses, which include banking fees, Wealth, Trust, Cash Connect ® , and capital markets, account for 32.8% of our noninterest income and further differentiate us from our peers and provide additional growth opportunities for the Company. Balance Sheet Management We put a great deal of focus on actively managing our balance sheet.
In addition, our diversified fee revenue businesses, which include banking fees, Wealth, Trust, Cash Connect ® , and Capital Markets, account for 32.5% of our revenue and further differentiate us from our peers and provide additional growth opportunities for the Company. Balance Sheet Management We put a great deal of focus on actively managing our balance sheet.
Federal law limits the Bank’s extensions of credit to any one borrower to 15% of our unimpaired capital (approximately $355.5 million), and an additional 10% if the additional extensions of credit are secured by readily marketable collateral. Extensions of credit include outstanding loans as well as contractual commitments to advance funds, such as standby letters of credit.
Federal law limits the Bank’s extensions of credit to any one borrower to 15% of our unimpaired capital (approximately $369.2 million), and an additional 10% if the additional extensions of credit are secured by readily marketable collateral. Extensions of credit include outstanding loans as well as contractual commitments to advance funds, such as standby letters of credit.
The exception to this policy is when we in limited circumstances receive an "appraisal waiver" from one of the governmental agencies, Fannie Mae or Freddie Mac. The majority of our adjustable-rate, residential loans have interest rates that adjust yearly or bi-yearly after an initial period.
The exception to this policy is when we in limited circumstances receive an "appraisal waiver" from one of the governmental agencies, Fannie Mae or Freddie Mac. The majority of our adjustable-rate, residential loans have interest rates that adjust yearly or bi-yearly after an initial period of 5, 7, or 10 years.
We purchase certain second-lien home equity installment loans through our partnership with Spring EQ, LLC (Spring EQ). These select loans meet or exceed our current underwriting standards and are similar to home equity loans originated through our branch network. We originate personal loans, which are typically unsecured with 36-month or 60-month terms, through our partnership with Upstart.
We have purchased certain second-lien home equity installment loans through our partnership with Spring EQ, LLC (Spring EQ). These select loans meet or exceed our current underwriting standards and are similar to home equity loans originated through our branch network. We have originated personal loans, which are typically unsecured with 36-month or 60-month terms, through our partnership with Upstart.
We focus on melding our physical and digital delivery, consistent with our brand, by enabling our Associates with the latest technology and actionable data to better serve our Customers. Industry and customer behavior trends continue to shift as observed in reduced branch traffic and increased digital channel adop tion.
We focus on melding our physical and digital delivery, consistent with our brand, by enabling our Associates with the latest technology and actionable data to better serve our Clients. Industry and client behavior trends continue to shift as observed in reduced branch traffic and increased digital channel adop tion.
Among these are: • Retained earnings • Commercial, consumer, wealth and trust deposits • Loan repayments • Investment securities • Federal funds purchased • Federal Reserve Bank Term Funding Program (BTFP) • Federal Home Loan Bank (FHLB) borrowings • Federal Reserve Discount Window access • Brokered deposits • Trust preferred borrowings • Senior and subordinated debt Our branch strategy has been focused on expanding our market penetration and retail footprint in Delaware, southeastern Pennsylvania and southern New Jersey and attracting new customers in part to provide additional deposit growth.
Among these are: • Retained earnings • Commercial, consumer, wealth and trust deposits • Loan repayments • Investment securities • Federal funds purchased • Federal Home Loan Bank (FHLB) borrowings • Federal Reserve Discount Window access • Brokered deposits • Trust preferred borrowings • Senior and subordinated debt Our branch strategy has been focused on expanding our market penetration and retail footprint in Delaware, southeastern Pennsylvania and southern New Jersey and attracting new clients in part to provide additional deposit growth.
The laws and regulations to which the Company and the Bank are subject cover all aspects of our business, including lending and collection practices, treatment of our customers, safeguarding deposits, customer privacy and information security, capital structure, liquidity, dividends and other capital distributions, transactions with affiliates and conduct and qualifications of personnel.
The laws and regulations to which the Company and the Bank are subject cover all aspects of our business, including lending and collection practices, treatment of our Clients, safeguarding deposits, client privacy and information security, capital structure, liquidity, dividends and other capital distributions, transactions with affiliates and conduct and qualifications of personnel.
Commercial: We originate commercial mortgage and commercial loans through our commercial lending division and SBA loan program. Commercial loans are made for working capital, financing equipment acquisitions, business expansion and other business purposes. During 2023, we originated $2.4 billion of commercial and commercial mortgage loan exposures compared to $2.3 billion in 2022.
Commercial: We originate commercial mortgage and commercial loans through our commercial lending division and SBA loan program. Commercial loans are made for working capital, financing equipment acquisitions, business expansion and other business purposes. During 2024, we originated $2.0 billion of commercial and commercial mortgage loan exposures compared to $2.4 billion in 2023.
We believe these results reflect that Associates are encouraged to be themselves, are a valued part of their teams, experience strength-based developments, have inclusive conversations and trust in the Company's mission, values and leadership. • Customer loyalty remained consistent during the year, as measured by our Net Promoter Scores (NPS).
We believe these results reflect that Associates are encouraged to be themselves, are a valued part of their teams, experience strength-based developments, have inclusive conversations and trust in the Company's mission, values and leadership. • Client loyalty improved during the year, as measured by our Net Promoter Scores (NPS).
The concentration in agency MBS (96% of investment portfolio) and bank qualified municipal bonds (4% of investment portfolio) provides liquidity, yield and credit to meet the intended risk profile. Disciplined Capital Management We understand that our capital (or stockholders’ equity) belongs to our stockholders.
The concentration in agency mortgage backed securities (96% of investment portfolio) and bank qualified municipal bonds (4% of investment portfolio) provides liquidity, yield and credit to meet the intended risk profile. Disciplined Capital Management We understand that our capital (or stockholders’ equity) belongs to our stockholders.
These current partnerships include: • Spring EQ, LLC: A digital mortgage solution specializing in home equity, refinancing, cash out, and home purchase loans. • Upstart: A leading white label lending-as-a-service platform provider specializing in risk-based priced unsecured consumer loans.
These partnerships have included: • Spring EQ, LLC: A digital mortgage solution specializing in home equity, refinancing, cash out, and home purchase loans. • Upstart: A leading white label lending-as-a-service platform provider specializing in risk-based priced unsecured consumer loans.
Community Banking Model Our size and community banking model play a key role in our success. Our approach to business combines a service-oriented culture with a full complement of products and services, all aimed at meeting the needs of our consumer, business and wealth Customers.
Community Banking Model Our size and community banking model play a key role in our success. Our approach to business combines a service-oriented culture with a full complement of products and services, all aimed at meeting the needs of our Clients.
At December 31, 2023, no borrower had collective (relationship) total extensions of credit exceeding either the legal lending limits or our internal limit. 15 Residential Lending Generally, we originate held-for-sale residential first mortgage loans with loan-to-value ratios of up to 80% and require private mortgage insurance or government guarantee for up to 35% of the mortgage amount for mortgage loans with loan-to-value ratios exceeding 80%.
At December 31, 2024, no borrower had collective (relationship) total extensions of credit exceeding either the legal lending limits or our internal limit. 14 Residential Lending Generally, we originate residential first mortgage loans with loan-to-value ratios of up to 80% and require private mortgage insurance or government guarantee for up to 35% of the mortgage amount for mortgage loans with loan-to-value ratios exceeding 80%.
On a limited basis, we have originated loans with loan-to-value ratios exceeding 80% without a private mortgage insurance requirement or government guarantee. Any such loans are either originated for sale into the secondary market or held for investment. At December 31, 2023, the balance of all such loans was approximately $123.9 million.
On a limited basis, we have originated loans with loan-to-value ratios exceeding 80% without a private mortgage insurance requirement or government guarantee. Any such loans are either originated for sale into the secondary market or held for investment. At December 31, 2024, the balance of all such loans was approximately $146.2 million.
WSFS assumed junior subordinated debentures to the RBC Trusts with a current carrying value of $11.8 million each, totaling $23.6 million, inclusive of the fair value marks. The junior subordinated debentures incur interest at a coupon rate of 7.80% as of December 31, 2023. The rate resets quarterly based on three-month term SOFR plus 2.41%.
WSFS assumed junior subordinated debentures to the RBC Trusts with a current carrying value of $11.9 million each, totaling $23.8 million, inclusive of the fair value marks. The junior subordinated debentures incur interest at a coupon rate of 6.77% as of December 31, 2024. The rate resets quarterly based on three-month term SOFR plus 2.41%.
The majority of our commercial and commercial mortgage loans are concentrated in Delaware and Pennsylvania. We offer commercial mortgage loans on multi-family properties and on other commercial real estate. Generally, loan-to-value ratios for these loans do not exceed 80% of appraised value at origination. Our commercial mortgage portfolio was $3.8 billion at December 31, 2023.
The majority of our commercial and commercial mortgage loans are concentrated in Delaware and Pennsylvania. We offer commercial mortgage loans on multi-family properties and on other commercial real estate. Generally, loan-to-value ratios for these loans do not exceed 80% of appraised value at origination. Our commercial mortgage portfolio was $4.0 billion at December 31, 2024.
We have built a $9.9 billion commercial loan and lease portfolio by recruiting seasoned commercial lenders in our markets, offering the high level of service and flexibility typically associated with a community bank and through acquisitions. We fund our lending businesses primarily with deposits generated through commercial relationships and consumer deposits, as well as through our digital banking platforms.
We have built a $9.9 billion commercial loan and lease portfolio by recruiting seasoned commercial lenders in our markets, offering a high level of service and flexibility. We fund our lending businesses primarily with deposits generated through commercial relationships and consumer deposits, as well as through our digital banking platforms.
To reduce our exposure on certain types of these loans, and/or to maintain relationships within internal lending limits, at times we will sell a portion of our commercial loan portfolio, typically through loan participations. Commercial loan sales totaled $261.5 million and $201.6 million in 2023 and 2022, respectively.
To reduce our exposure on certain types of these loans, and/or to maintain relationships within internal lending limits, at times we will sell a portion of our commercial loan portfolio, typically through loan syndications and participations. Commercial loan sales totaled $45.5 million and $261.5 million in 2024 and 2023, respectively.
Most loan fees are not recognized in our Consolidated Statements of Income immediately, but are deferred as adjustments to yield in accordance with GAAP, and are reflected in interest income over the expected life of the loan. Those fees represented interest income of $8.8 million, $12.1 million and $25.4 million during 2023, 2022 and 2021 respectively.
Most loan fees are not recognized in our Consolidated Statements of Income immediately, but are deferred as adjustments to yield in accordance with GAAP, and are reflected in interest income over the expected life of the loan. Those fees represented interest income of $7.9 million, $8.8 million and $12.1 million during 2024, 2023 and 2022 respectively.
At December 31, 2023, our commercial and industrial and owner-occupied commercial loan portfolios were $4.4 billion and represented 35% of our total loan and lease portfolio. These loans are diversified by industry, with no industry representing more than 12% of the portfolio.
At December 31, 2024, our commercial and industrial and owner-occupied commercial loan portfolios were $4.6 billion and represented 35% of our total loan and lease portfolio. These loans are diversified by industry, with no industry representing more than 14% of the portfolio.
Federal Home Loan Bank Advances As a member of the FHLB, we are able to obtain FHLB advances. At December 31, 2023, we had no FHLB advances compared to $350.0 million of FHLB advances at December 31, 2022.
Federal Home Loan Bank Advances As a member of the FHLB, we are able to obtain FHLB advances. At December 31, 2024, we had $51.0 million of FHLB advances compared to no FHLB advances at December 31, 2023.
At December 31, 2023, the construction portfolio included $101.6 million of “land hold” loans, which are land loans not currently being developed. Commercial and industrial and owner-occupied commercial loans include loans for working capital, financing equipment and real estate acquisitions, business expansion and other business purposes.
At December 31, 2024, the construction portfolio included $95.4 million of “land hold” loans, which are land loans not currently being developed. Commercial and industrial and owner-occupied commercial loans include loans for working capital, financing equipment and real estate acquisitions, business expansion and other business purposes.
Generally, this portfolio is diversified by property type, with no type representing more than 30% of the portfolio. The three largest types are retail-related (non-mall, neighborhood shopping centers and other retail), residential multi-family, and office with outstanding balances of $1.1 billion, $1.0 billion and $0.7 billion at December 31, 2023, respectively.
Generally, this portfolio is diversified by property type, with no type representing more than 32% of the portfolio. The three largest types are retail-related (non-mall, neighborhood shopping centers and other retail), residential multi-family, and office with outstanding balances of $1.3 billion, $1.1 billion, and $0.6 billion at December 31, 2024, respectively.
There were no purchases in 2023 or 2022 related to our Community Reinvestment Act (CRA) obligations. We sell most newly originated mortgage loans in the secondary market to generate fee income and to manage our overall balance sheet mix. Residential loan sales totaled $195.7 million in 2023 and $498.1 million in 2022.
There were no purchases in 2024 or 2023 related to our Community Reinvestment Act (CRA) obligations. We sell most newly originated mortgage loans in the secondary market to generate fee revenue and to manage our overall balance sheet mix. Residential loan sales totaled $303.7 million in 2024 and $195.7 million in 2023.
Combined, these businesses had $84.3 billion of AUM and AUA at December 31, 2023. Bryn Mawr Trust ® is our predominant Private Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals.
Combined, these businesses had $89.4 billion of AUM and AUA at December 31, 2024. Bryn Mawr Trust ® is our predominant Private Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals.
These amounts represent gross contract amounts and do not necessarily reflect amounts outstanding on those loans. We also periodically buy loan participations from other banks. Commercial loan participation purchases totaled $264.2 million and $241.9 million in 2023 and 2022, respectively.
These amounts represent gross contract amounts and do not necessarily reflect amounts outstanding on those loans. We also periodically buy loan participations from other banks. Commercial loan participation purchases totaled $163.5 million and $264.2 million in 2024 and 2023, respectively.
WSFS achieved an overall NPS of 68.1 in 2023, which placed WSFS in the top quartile of Medallia's global database of financial services companies for relationship surveys. By fostering a culture of engaged and empowered Associates, we believe we have become the employer and bank of choice in our market.
WSFS achieved an overall NPS of 72.0 in 2024, which placed WSFS in the top quartile of Medallia's global database of financial services companies for relationship surveys. 6 By fostering a culture of engaged and empowered Associates, we believe we have become the employer and bank of choice in our market.
Depending on a large bank’s geographic distribution of lending, the evaluation of retail lending may include assessment areas in which the bank extends loans but does not operate any deposit-taking facilities, in addition to assessment areas in which the bank has deposit taking facilities. The rule becomes effective April 1, 2024.
Depending on a large bank’s geographic distribution of lending, the evaluation of retail lending may include assessment areas in which the bank extends loans but does not operate any deposit-taking facilities, in addition to assessment areas in which the bank has deposit taking facilities.
As a member of the FHLB, we are required to purchase and hold shares of capital stock in the FHLB and we were in compliance with this requirement with a stock investment in FHLB of $15.4 million as of December 31, 2023 and with $24.1 million at December 31, 2022.
As a member of the FHLB, we are required to purchase and hold shares of capital stock in the FHLB and we were in compliance with this requirement with a stock investment in FHLB of $11.8 million as of December 31, 2024 and with $15.4 million at December 31, 2023.
As of December 31, 2023, we serviced our Customers primarily from our 114 offices located in Pennsylvania (57), Delaware (40), New Jersey (14), Florida (1), Nevada (1) and Virginia (1), our ATM network, our website at www.wsfsbank.com and our mobile app.
As of December 31, 2024, we serviced our Clients primarily from our 114 offices located in Pennsylvania (57), Delaware (39), New Jersey (14), Florida (2), Nevada (1) and Virginia (1), our ATM network, our website at www.wsfsbank.com and our mobile app.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeDuring such time we would not necessarily know the extent of the harm or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, all of which would further increase the costs and consequences of such an attack or breach. 38 The SEC recently enacted rules, effective as of December 18, 2023, requiring public companies to disclose material cybersecurity incidents that they experience on Form 8-K within four business days of determining that a material cybersecurity incident has occurred and to disclose on annual basis material information regarding their cybersecurity risk management, strategy, and governance.
Biggest changeDuring such time we would not necessarily know the extent of the harm or how best to remediate it, and certain errors or actions could be repeated or compounded before they are discovered and remediated, all of which would further increase the costs and consequences of such an attack or breach.
Senior management gives a quarterly update on cybersecurity to the Risk Committee of our Board of Directors and an annual update to our full Board of Directors.
Senior management gives a quarterly update on cybersecurity to the Risk Committee and Cybersecurity Committee of our Board of Directors and an annual update to our full Board of Directors.
General Risk Impairment of goodwill and/or intangible assets could require charges to earnings, which could negatively impact our results of operations. Goodwill and other intangible assets arise when a business is purchased for an amount greater than the net fair value of its identifiable assets.
General Risk Impairment of goodwill and/or intangible assets could require charges to earnings, which could negatively impact our results of operations. Goodwill and other intangible assets arise when a business is purchased for an amount greater than the net fair value of its identifiable net assets.
Our ability to attract and retain customers, clients, investors, and highly-skilled management and Associates is affected by our reputation and the reputation of the financial services industry as a whole. Adverse developments may result in additional scrutiny or new litigation against us and potential sources of reputational damage are discussed throughout these risk factors.
Our ability to attract and retain clients, clients, investors, and highly-skilled management and Associates is affected by our reputation and the reputation of the financial services industry as a whole. Adverse developments may result in additional scrutiny or new litigation against us and potential sources of reputational damage are discussed throughout these risk factors.
Significant harm to our reputation can arise from sources, including economic changes, regulatory scrutiny, employee misconduct, actual or perceived unethical behavior, litigation or regulatory outcomes, failing to deliver minimum or required standards of service and quality, compliance failures, disclosure of confidential information, significant or numerous failures, interruptions or breaches of our information systems, and the activities of our clients, customers and counterparties, including vendors.
Significant harm to our reputation can arise from sources, including economic changes, regulatory scrutiny, employee misconduct, actual or perceived unethical behavior, litigation or regulatory outcomes, failing to deliver minimum or required standards of service and quality, compliance failures, disclosure of confidential information, significant or numerous failures, interruptions or breaches of our information systems, and the activities of our Clients and counterparties, including vendors.
Negative perceptions or publicity regarding these matters could damage the division’s and our reputation among existing customers and corporate clients, which could make it difficult for the Wealth Management segment to attract new clients and maintain existing ones. We could also suffer significant harm to our reputation if we fail to properly identify and manage potential conflicts of interest.
Negative perceptions or publicity regarding these matters could damage the division’s and our reputation among existing clients and corporate clients, which could make it difficult for the Wealth Management segment to attract new clients and maintain existing ones. We could also suffer significant harm to our reputation if we fail to properly identify and manage potential conflicts of interest.
Failure to comply with these standards, adequately manage these risks or manage the differing interests often involved in the exercise of fiduciary responsibilities could also result in liability. 36 The CFPB has reshaped consumer financial regulations through rulemaking and enforcement of prohibitions against unfair, deceptive or abusive business acts or practices.
Failure to comply with these standards, adequately manage these risks or manage the differing interests often involved in the exercise of fiduciary responsibilities could also result in liability. The CFPB has reshaped consumer financial regulations through rulemaking and enforcement of prohibitions against unfair, deceptive or abusive business acts or practices.
In particular, we may face the following risks in connection with these events: • An increase in the number of customers unable to repay their loans in accordance with the original terms, which could result in a higher level of loan and lease losses and provision for loan and lease losses; • Decreases in customer deposits; • Impaired ability to assess the creditworthiness of customers as the models and approaches we use to select, manage and underwrite our customers become less predictive of future performance; • Impaired ability to estimate the losses inherent in our credit exposure as the process we use to make such estimates requires difficult, subjective and complex judgments based on forecasts of economic or market conditions that might impair the ability of our customers to repay their loans, and this estimating process becomes less accurate and thus less reliable as economic conditions worsen; • Increases in foreclosures, delinquencies and customer bankruptcies, as well as more restricted access to commercial credit; • Decreases in our Wealth Management segment's AUM portfolios as a result of, among other things, decreases in market value from investment performance losses and customers' increased financial needs; • Downward pressure on our stock price or an impaired ability to access the capital markets or otherwise obtain needed funding on attractive terms or at all; • Changes in the regulatory environment, including regulations promulgated or to be promulgated under federal banking legislation or other new regulations, and changes in accounting standards, which could influence recognition of loan and lease losses and our allowance for credit losses, and could result in earlier recognition of loan losses and decreases in capital; and • Increased competition due to intensified consolidation of the financial services industry and competition from non-banks. 31 Changes in interest rates and other factors beyond our control could have an adverse impact on our earnings.
In particular, we may face the following risks in connection with these events: • An increase in the number of clients unable to repay their loans in accordance with the original terms, which could result in a higher level of loan and lease losses and provision for loan and lease losses; • Decreases in customer deposits; • Impaired ability to assess the creditworthiness of clients as the models and approaches we use to select, manage and underwrite our Clients become less predictive of future performance; • Impaired ability to estimate the losses inherent in our credit exposure as the process we use to make such estimates requires difficult, subjective and complex judgments based on forecasts of economic or market conditions that might impair the ability of our Clients to repay their loans, and this estimating process becomes less accurate and thus less reliable as economic conditions worsen; • Increases in foreclosures, delinquencies and client bankruptcies, as well as more restricted access to commercial credit; • Decreases in our Wealth Management segment's AUM portfolios as a result of, among other things, decreases in market value from investment performance losses and clients' increased financial needs; • Downward pressure on our stock price or an impaired ability to access the capital markets or otherwise obtain needed funding on attractive terms or at all; • Changes in the regulatory environment, including regulations promulgated or to be promulgated under federal banking legislation or other new regulations, and changes in accounting standards, which could influence recognition of loan and lease losses and our allowance for credit losses, and could result in earlier recognition of loan losses and decreases in capital; and • Increased competition due to intensified consolidation of the financial services industry and competition from non-banks. 31 Changes in interest rates and other factors beyond our control could have an adverse impact on our earnings.
Failures in, or breaches of, our computer systems, software and networks, or those of our third-party vendors or other service providers, including as a result of cyber-attacks, cybersecurity breaches and other disruptions, could disrupt our business or operations or those of our Customers and counterparties, result in the disclosure or misuse of confidential or proprietary information, result in supervisory liability or regulatory enforcement action, damage our reputation, result in a loss of Customers and business, result in a loss of confidence in the security of our systems, products and services, increase our costs and cause losses to us.
Failures in, or breaches of, our computer systems, software and networks, or those of our third-party vendors or other service providers, including as a result of cyber-attacks, cybersecurity breaches and other disruptions, could disrupt our business or operations or those of our Clients and counterparties, result in the disclosure or misuse of confidential or proprietary information, result in supervisory liability or regulatory enforcement action, damage our reputation, result in a loss of Clients and business, result in a loss of confidence in the security of our systems, products and services, increase our costs and cause losses to us.
The banking laws, regulations and policies applicable to us govern a variety of matters, including certain debt obligations, changes in control, maintenance of adequate capital, and general business operations, including permissible types, amounts and terms of loans and investments, the amount of reserves held against deposits, restrictions on dividends, establishment of new offices, the maximum interest rate that may be charged by law and treatment of customers.
The banking laws, regulations and policies applicable to us govern a variety of matters, including certain debt obligations, changes in control, maintenance of adequate capital, and general business operations, including permissible types, amounts and terms of loans and investments, the amount of reserves held against deposits, restrictions on dividends, establishment of new offices, the maximum interest rate that may be charged by law and treatment of clients.
The profitability of our Cash Connect ® segment depends to a large degree on its ability to accurately and efficiently distribute, track, and settle large amounts of cash to its customers’ ATMs which, in turn, depends on the successful implementation and monitoring of a comprehensive system of financial and operational controls that are designed to help prevent, detect, and recover any potential loss of funds.
The profitability of our Cash Connect ® segment depends to a large degree on its ability to accurately and efficiently distribute, track, and settle large amounts of cash to its Clients’ ATMs which, in turn, depends on the successful implementation and monitoring of a comprehensive system of financial and operational controls that are designed to help prevent, detect, and recover any potential loss of funds.
Our success depends primarily on the general economic conditions and housing markets in the state of Delaware, southeastern Pennsylvania, southern New Jersey and northern Virginia, as a large portion of our loans are made to customers in these markets. This makes us vulnerable to a downturn in the local economy and real estate markets in these areas.
Our success depends primarily on the general economic conditions and housing markets in the state of Delaware, southeastern Pennsylvania, southern New Jersey and northern Virginia, as a large portion of our loans are made to clients in these markets. This makes us vulnerable to a downturn in the local economy and real estate markets in these areas.
Although we have determined that goodwill and other intangible assets were not impaired during 2023, a significant and sustained decline in our stock price and market capitalization, a significant decline in our expected future cash flows, a significant adverse change in the business climate, slower growth rates or other factors could result in impairment of goodwill or other intangible assets.
Although we have determined that goodwill and other intangible assets were not impaired during 2024, a significant and sustained decline in our stock price and market capitalization, a significant decline in our expected future cash flows, a significant adverse change in the business climate, slower growth rates or other factors could result in impairment of goodwill or other intangible assets.
We are subject to extensive federal and state regulation, supervision and examination governing almost all aspects of our operations. The laws and regulations governing our business are intended primarily to protect depositors, our customers, the public, the FDIC’s Deposit Insurance Fund, and the banking system as a whole, and not our stockholders or holders of our debt.
We are subject to extensive federal and state regulation, supervision and examination governing almost all aspects of our operations. The laws and regulations governing our business are intended primarily to protect depositors, our Clients, the public, the FDIC’s Deposit Insurance Fund, and the banking system as a whole, and not our stockholders or holders of our debt.
In a declining interest rate environment, there may be an increase in prepayments on loans as borrowers refinance their loans at lower rates. In addition, in a low interest rate environment, loan customers often pursue long-term fixed rate credits, which could adversely affect our earnings and net interest margin if rates increase.
In a declining interest rate environment, there may be an increase in prepayments on loans as borrowers refinance their loans at lower rates. In addition, in a low interest rate environment, loan clients often pursue long-term fixed rate credits, which could adversely affect our earnings and net interest margin if rates increase.
In 2022 and 2023, to curb rising inflation, the Federal Reserve increased the target Federal Funds rate−the interest rate that banks charge each other for overnight lending in order to help maintain the reserve requirements of the Federal Reserve−to a range between 5.25% and 5.50% as of December 2023 and enacted policies to achieve that target range.
In 2022 and 2023, to curb rising inflation, the Federal Reserve increased the target Federal Funds rate−the interest rate that banks charge each other for overnight lending in order to help maintain the reserve requirements of the Federal Reserve−to a range between 5.25% and 5.50% and enacted policies to achieve that target range.
The demand for the deposit products we offer may also be reduced due to a variety of factors, such as demographic patterns, changes in customer preferences, reductions in consumers’ disposable income, regulatory actions that decrease customer access to particular products or the availability of competing products.
The demand for the deposit products we offer may also be reduced due to a variety of factors, such as demographic patterns, changes in client preferences, reductions in consumers’ disposable income, regulatory actions that decrease client access to particular products or the availability of competing products.
There are no such restrictions under the FDIA on a bank that is “well-capitalized” and at December 31, 2023, the Bank met or exceeded all applicable requirements to be deemed “well-capitalized” for purposes of the FDIA. However, the Bank may not continue to meet these requirements.
There are no such restrictions under the FDIA on a bank that is “well-capitalized”, and at December 31, 2024, the Bank met or exceeded all applicable requirements to be deemed “well-capitalized” for purposes of the FDIA. However, the Bank may not continue to meet these requirements.
Commercial mortgage loans generally carry larger loan balances and involve a greater degree of risk of nonpayment or late payment than home equity loans or residential mortgage loans. Any significant failure to pay or late payments by our customers would adversely affect our earnings.
Commercial mortgage loans generally carry larger loan balances and involve a greater degree of risk of nonpayment or late payment than home equity loans or residential mortgage loans. Any significant failure to pay or late payments by our Clients would adversely affect our earnings.
Negative public opinion could result from actual or alleged conduct in a number of areas, including lending practices, regulatory compliance, inadequate protection of customer information or sales and marketing activities, and from actions taken by regulators or others in response to such conduct.
Negative public opinion could result from actual or alleged conduct in a number of areas, including lending practices, regulatory compliance, inadequate protection of client information or sales and marketing activities, and from actions taken by regulators or others in response to such conduct.
Our ability to originate and maintain deposits is also highly dependent on the strength of the Bank and the perceptions of customers and others of our business practices and our financial health. Adverse perceptions regarding our reputation could lead to difficulties in attracting and retaining deposits accounts.
Our ability to originate and maintain deposits is also highly dependent on the strength of the Bank and the perceptions of clients and others of our business practices and our financial health. Adverse perceptions regarding our reputation could lead to difficulties in attracting and retaining deposits accounts.
The market for deposits is highly competitive, with intense competition in attracting and retaining deposits. We compete on the basis of the rates we pay on deposits, features and benefits of our products, the quality of our customer service and the competitiveness of our digital banking capabilities.
The market for deposits is highly competitive, with intense competition in attracting and retaining deposits. We compete on the basis of the rates we pay on deposits, features and benefits of our products, the quality of our client service and the competitiveness of our digital banking capabilities.
Credit risk is the risk of loss that arises when an obligor fails to meet the terms of an obligation. We are exposed to both customer credit risk, from our loans, and institutional credit risk, principally from our various business partners and counterparties.
Credit risk is the risk of loss that arises when an obligor fails to meet the terms of an obligation. We are exposed to both client credit risk, from our loans, and institutional credit risk, principally from our various business partners and counterparties.
Banking regulators continue to focus on the models used by banks and bank holding companies in their businesses. The failure or inadequacy of a model may result in increased regulatory scrutiny on us or may result in an enforcement action or proceeding against us by one of our regulators. 41 Table of Contents 9.
Banking regulators continue to focus on the models used by banks and bank holding companies in their businesses. The failure or inadequacy of a model may result in increased regulatory scrutiny on us or may result in an enforcement action or proceeding against us by one of our regulators. 9.
Additionally, the operations of our Cash Connect ® segment depends on us having access to large amounts of cash. Our principal sources of liquidity include customer deposits, the Bank Term Funding Program FHLB borrowings, brokered certificates of deposit, sales of loans, repayments to the Bank from borrowers and paydowns and sales of investment securities.
Additionally, the operations of our Cash Connect ® segment depends on us having access to large amounts of cash. Our principal sources of liquidity include customer deposits, FHLB borrowings, brokered certificates of deposit, sales of loans, repayments to the Bank from borrowers and paydowns and sales of investment securities.
Depending on industries and markets involved, changes to tax law and increased or reduced public expenditures could affect us directly or the business operations of our customers.
Depending on industries and markets involved, changes to tax law and increased or reduced public expenditures could affect us directly or the business operations of our Clients.
Unfavorable economic trends, sustained high unemployment, high costs of living, and declines in real estate values can cause a reduction in the availability of commercial credit and can negatively impact the credit performance of commercial and consumer loans, resulting in increased write-downs.
Unfavorable economic trends, sustained high unemployment, high costs of living, and declines in real estate values can cause a reduction in the availability of commercial credit and can negatively impact the credit performance of commercial and consumer loans, resulting in increased losses.
If key personnel were to leave us and equally knowledgeable or skilled personnel are unavailable within WSFS or could not be sourced in the market, our ability to manage our business may be hindered or impaired. 40 Table of Contents 7. Reputation Risk Damage to our reputation could significantly harm our businesses.
If key personnel were to leave us and equally knowledgeable or skilled personnel are unavailable within WSFS or could not be sourced in the market, our ability to manage our business may be hindered or impaired. 7. Reputation Risk Damage to our reputation could significantly harm our businesses.
Credit Risk Significant increases of nonperforming assets, or greater than anticipated costs to resolve these credits, can have an adverse effect on our earnings. Our nonperforming assets, which consist of non-accrual loans, assets acquired through foreclosure, and restructured loans adversely affect our net income in various ways.
Credit Risk Significant increases of nonperforming assets, or greater than anticipated costs to resolve these credits, can have an adverse effect on our earnings. Our nonperforming assets, which consist of non-accrual loans and assets acquired through foreclosure, adversely affect our net income in various ways. We do not record interest income on nonaccrual loans and assets acquired through foreclosure.
We also experience large volumes of phishing and other forms of social engineering attempted for the purpose of perpetrating fraud against us, our Associates, or our Customers.
We also experience large volumes of phishing and other forms of social engineering attempts for the purpose of perpetrating fraud against us, our Associates, or our Clients.
These laws and regulations are increasing in complexity and number. If any person, including any of our associates, negligently disregards or intentionally breaches our established controls with respect to client or employee data, or otherwise mismanages or misappropriates such data, we could be subject to significant monetary damages, regulatory enforcement actions, fines and/or criminal prosecution.
If any person, including any of our Associates, negligently disregards or intentionally breaches our established controls with respect to client or employee data, or otherwise mismanages or misappropriates such data, we could be subject to significant monetary damages, regulatory enforcement actions, fines and/or criminal prosecution.
Our results of operations and financial condition could be adversely affected if our Cash Connect ® segment’s policies, procedures and controls are inadequate to prevent a misappropriation of funds, or if a misappropriation of funds is not insured or not fully covered through insurance.
If our Cash Connect ® division’s established policies, procedures and controls are inadequate, or not properly executed to prevent or detect a misappropriation of funds, or if a misappropriation of funds is not insured or not fully covered through any insurance maintained by us, our business, results of operations or financial condition could be adversely affected.
Changes in Federal Reserve policies, fiscal policy, and our regulatory environment generally are beyond our control, and we are unable to predict what changes may occur or the manner in which any future changes may affect our business, financial condition and results of operations.
Changes in Federal Reserve policies, fiscal policy, and our regulatory environment generally are beyond our control, and we are unable to predict what changes may occur or the manner in which any future changes may affect our business, financial condition and results of operations. 36 If we fail to comply with legal standards, we could incur liability to our Clients or lose clients, which could negatively affect our earnings.
WSFS Bank provides indenture trustee and loan agency services, including administrative and collateral agent fee-based services for first lien, second lien, debtor-in-possession and exit facilities, and WSFS Bank professionals work with ad hoc committees, unsecured creditors’ committees, borrowers and other professionals involved in restructuring and bankruptcy.
In enforcement matters, claims for disgorgement, the imposition of civil and criminal penalties and the imposition of other remedial sanctions are possible. 39 WSFS Bank provides indenture trustee and loan agency services, including administrative and collateral agent fee-based services for first lien, second lien, debtor-in-possession and exit facilities, and WSFS Bank professionals work with ad hoc committees, unsecured creditors’ committees, borrowers and other professionals involved in restructuring and bankruptcy.
The results of our interest rate sensitivity simulation models depend upon a number of assumptions which may prove to be inaccurate. We may not be able to successfully manage our interest rate risk.
The results of our interest rate sensitivity simulation models depend upon a number of assumptions which may prove to be inaccurate. We may not be able to successfully manage our interest rate risk, which could have a material adverse impact on the fair market value of our assets and the results of our operations.
If our risk management framework does not effectively identify and control such risks, we could suffer unexpected losses or be adversely affected, and that could have an adverse effect on our business, results of operations and financial condition.
If our risk management framework does not effectively identify and control such risks, we could suffer unexpected losses or be adversely affected, and that could have an adverse effect on our business, results of operations and financial condition. 37 Our results of operations and financial condition could be adversely affected if our Cash Connect ® segment’s policies, procedures and controls are inadequate to prevent a misappropriation of funds, or if a misappropriation of funds is not insured or not fully covered through insurance.
There may also be technology-related issues that exist, or that develop in the future, that we have not anticipated, identified or mitigated, including when processes are changed or new products and services are introduced.
There may also be technology-related issues that exist, or that develop in the future, that we have not anticipated, identified or mitigated, including when processes are changed or new products and services are introduced. In particular, the implementations of new technologies and digital solutions may cause business disruptions that affect our ability to maintain relationships with clients, depositors and employees.
In the normal course of business, we collect, process, and retain sensitive and confidential information regarding our Customers and Associates, including personal data. As a result, we are subject to numerous laws and regulations designed to protect this information, such as U.S. federal, state and international laws governing the protection of personally identifiable information.
As a result, we are subject to numerous laws and regulations designed to protect this information, such as U.S. federal, state and international laws governing the protection of personally identifiable information. These laws and regulations are increasing in complexity and number.
The resolution of nonperforming assets requires the active involvement of management, which can distract management from daily operations and other income producing activities. Finally, if our estimate of the allowance for credit losses is inadequate, we will have to increase the allowance for credit losses accordingly, which will have an adverse effect on our earnings.
Finally, if our estimate of the allowance for credit losses is inadequate, we will have to increase the allowance for credit losses accordingly, which will have an adverse effect on our earnings.
Actual outcomes, losses and related expenses of pending legal proceedings may differ materially from assessments and estimates, and may exceed the amount of any reserves we have established, which could adversely affect our reputation, business, financial condition and results of operations. 39 Errors, breakdowns in controls or other mistakes in the provision of services to clients or in carrying out transactions for our own account can subject us to liability, result in losses or negatively affect our earnings in other ways.
Actual outcomes, losses and related expenses of pending legal proceedings may differ materially from assessments and estimates, and may exceed the amount of any reserves we have established, which could adversely affect our reputation, business, financial condition and results of operations.
Even if the underlying assumptions and historical correlations used in our models are adequate, our models may be deficient due to errors in computer code, bad data, misuse of data, fraud or the use of a model for a purpose outside the scope of the model’s design.
Even if the underlying assumptions and historical correlations used in our models are adequate, our models may be deficient due to errors in computer code, bad data, misuse of data, fraud or the use of a model for a purpose outside the scope of the model’s design. 41 Table of Contents As a result, our models may not capture or fully express the risks we face, may suggest that we have sufficient capitalization when we do not, or may lead us to misjudge the business and economic environment in which we will operate.
In addition, although we maintain insurance coverage that may, subject to terms and conditions, cover certain aspects of cyber and information security risks, such insurance coverage may be insufficient to cover all losses, such as litigation costs or financial losses that exceed our policy limits or are not covered under any of our current insurance policies.
In addition, although we maintain insurance coverage that may, subject to terms and conditions, cover certain aspects of cyber and information security risks, such insurance coverage may be insufficient to cover all losses, such as litigation costs or financial losses that exceed our policy limits or are not covered under any of our current insurance policies. 38 Information security risks for financial institutions like us have increased recently in part because of new technologies, the use of the internet, cloud, and telecommunications technologies (including mobile devices) to conduct financial and other business transactions and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists and others.
We do not record interest income on nonaccrual loans and assets acquired through foreclosure. We must establish an allowance for credit losses which reserves for losses inherent in the loan and lease portfolio that are both probable and reasonably estimable.
We must establish an allowance for credit losses which reserves for losses inherent in the loan and lease portfolio that are both probable and reasonably estimable. From time to time, we also write down the value of properties in our portfolio of assets acquired through foreclosure to reflect changing market values.
Our operations are dependent upon our ability to protect our computer equipment against damage from fire, power loss, telecommunications failure or a similar catastrophic event. Any damage or failure that causes an interruption in our operations could have an adverse effect on our business, financial condition and results of operations.
Any damage or failure that causes an interruption in our operations could have an adverse effect on our business, financial condition and results of operations.
We may not properly ascertain all such risks prior to an acquisition or prior to such a risk impacting us while integrating an acquired company. As a result, difficulties encountered with acquisitions could have an adverse effect on our business, financial condition and results of operations.
We may not properly ascertain all such risks prior to an acquisition or prior to such a risk impacting us while integrating an acquired company.
From time to time, we also write down the value of properties in our portfolio of assets acquired through foreclosure to reflect changing market values. Additionally, there are legal fees associated with the resolution of problem assets as well as carrying costs such as taxes, insurance and maintenance related to assets acquired through foreclosure.
Additionally, there are legal fees associated with the resolution of problem assets as well as carrying costs such as taxes, insurance and maintenance related to assets acquired through foreclosure. The resolution of nonperforming assets requires the active involvement of management, which can distract management from daily operations and other income producing activities.
Furthermore, we must generally receive federal regulatory approval before we can acquire another insured depository institution or its holding company.
As a result, difficulties encountered with acquisitions could have an adverse effect on our business, financial condition and results of operations. 40 Furthermore, we must generally receive federal regulatory approval before we can acquire another insured depository institution or its holding company.
Removed
As the increases in the target Federal Funds rate resulted in increased costs of operating a financial institution, the costs of borrowing increased while the availability of credit and the favorable credit terms available under the Federal Reserve’s 2020 and 2021 policies generally decreased.
Added
During 2024, the Federal Reserve announced three decreases to the Federal Funds rate, ending the year with a range between 4.25% and 4.50%.
Removed
In addition, increases in market interest rates and/or adverse changes in the local residential real estate market, the general economy or consumer confidence would likely have a significant adverse impact on our noninterest income, as a result of reduced demand for residential loans that we pre-sell.
Added
As noted in “Business - Regulation of the Company,” recent executive orders from the current administration may result in uncertainty as to what the supervisory and enforcement priorities of the three prudential banking agencies will be and may result in significant changes in policies, rules and regulations.
Removed
If we fail to comply with legal standards, we could incur liability to our clients or lose clients, which could negatively affect our earnings.
Added
There continues to be uncertainty as to how CFPB's strategies and priorities will impact the Company's business and operations. As noted in “Business - Regulation of the Company,” the Acting Director of the CFPB instructed agency staff to pause most activity, including supervision and enforcement.
Removed
There continues to be uncertainty as to how CFPB's strategies and priorities will impact the Company's business and operations. Any changes by the CFPB in regulatory expectations, interpretations or practices could increase the risk of additional enforcement actions, fines and penalties, which could have an adverse impact on our business, results of operations, and financial condition. 5.
Added
While it is presently unclear when and to what extent the CFPB will resume its activities, other governmental authorities, including state attorneys general or banking regulators, may seek to increase their regulation, supervision, and enforcement of providers of consumer financial products and services in response to changes at the CFPB, which could increase our regulatory risk. 5.
Removed
In particular, the implementations of new technologies and digital solutions may cause business disruptions that affect our ability to maintain relationships with clients, customers, depositor and employees.
Added
System failure or cybersecurity breaches of our network security could subject us to increased operating costs as well as litigation and other potential losses. Our operations are dependent upon our ability to protect our computer equipment against damage from fire, power loss, telecommunications failure or a similar catastrophic event.
Removed
If our Cash Connect ® division’s established policies, procedures and controls are inadequate, or not properly executed to prevent or detect a misappropriation of funds, or if a misappropriation of funds is not insured or not fully covered through any insurance maintained by us, our business, results of operations or financial condition could be adversely affected. 37 System failure or cybersecurity breaches of our network security could subject us to increased operating costs as well as litigation and other potential losses.
Added
We may also be subject to liability under various data protection laws. In the normal course of business, we collect, process, and retain sensitive and confidential information regarding our Clients and Associates, including personal data.
Removed
Information security risks for financial institutions like us have increased recently in part because of new technologies, the use of the internet, cloud, and telecommunications technologies (including mobile devices) to conduct financial and other business transactions and the increased sophistication and activities of organized crime, perpetrators of fraud, hackers, terrorists and others.
Added
Errors, breakdowns in controls or other mistakes in the provision of services to clients or in carrying out transactions for our own account can subject us to liability, result in losses or negatively affect our earnings in other ways.
Removed
If we fail to comply with these new requirements we could incur regulatory fines in addition to other adverse consequences to our reputation, business, financial condition and results of operations. We may also be subject to liability under various data protection laws.
Removed
In enforcement matters, claims for disgorgement, the imposition of civil and criminal penalties and the imposition of other remedial sanctions are possible.
Removed
As a result, our models may not capture or fully express the risks we face, may suggest that we have sufficient capitalization when we do not, or may lead us to misjudge the business and economic environment in which we will operate.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

6 edited+2 added−0 removed10 unchanged
Biggest changeInformation Security, in conjunction with Operations, Technology, and Executive Leadership, work together to provide and maintain security processes and procedures pursuant to which the Company will: • Ensure the security and confidentiality of customer and bank records covered by law. • Protect against any anticipated threats or hazards to the security of such records. • Protect against the unauthorized access or use of such records or information in ways that could result in substantial harm to the Company, our Customers, and Associates. • Establish guidelines and practices for ensuring Information Technology compliance to external and regulatory requirements. • Ensure proper and effective Business Continuity and Disaster Recovery programs are implemented and tested.
Biggest changeInformation Security, in conjunction with Operations, Technology, and Executive Leadership, work together to provide and maintain security processes and procedures pursuant to which the Company will: • Ensure the security and confidentiality of client and bank records covered by law. • Protect against any anticipated threats or hazards to the security of such records. • Protect against the unauthorized access or use of such records or information in ways that could result in substantial harm to the Company, our Clients, and Associates. • Establish guidelines and practices for ensuring Information Technology compliance to external and regulatory requirements. • Ensure proper and effective Business Continuity and Disaster Recovery programs are implemented and tested. 42 The Company's Chief Information Security Officer (CISO) is designated as the program coordinator responsible for coordinating and overseeing the program.
The Chief Information Officer (CIO) and CRO are notified of all incidents that are determined to be significant. based on perceived impacts of the incident or event. The Chief Executive Officer and Board of Directors are notified of these incidents by the CIO and CRO as necessary.
The Chief Information Officer (CIO) and CRO are notified of all incidents that are determined to be 43 significant. based on perceived impacts of the incident or event. The Chief Executive Officer and Board of Directors are notified of these incidents by the CIO and CRO as necessary.
The Incident Management Team structure is based on the Incident Command System and follows a flexible, adaptable approach with response team membership designed to support expanding response team needs. An Incident Response Task Force (IRTF) is in place to oversees the assessment of cybersecurity incidents and operational response needs. The CISO and the Head of Regulatory Affairs/Relations co-lead IRTF response.
The Incident Management Team structure is based on the Incident Command System and follows a flexible, adaptable approach with response team membership designed to support expanding response team needs. An Incident Response Task Force (IRTF) is in place to oversee the assessment of cybersecurity incidents and operational response needs. The CISO and the Head of Regulatory Affairs/Relations co-lead IRTF response.
The CISO has more than 25 years of experience in the information security field, including 20 years at WSFS, and holds several professional certifications and memberships in the Information Security, IT, and financial services fields. The Board and Senior Management are charged with the ultimate responsibility for understanding the company’s risk environment.
The CISO has more than 25 years of experience in the information security field, including 23 years at WSFS, and holds several professional certifications and memberships in the Information Security, IT, and financial services fields. The Board and Senior Management are charged with the ultimate responsibility for understanding the company’s risk environment.
For further information on risks to the Company from cybersecurity threats, see " System failure or cybersecurity breaches of our network security could subject us to increased operating costs as well as litigation and other potential losses" under Item 1A. Risk Factors." 43 Table of Contents
For further information on risks to the Company from cybersecurity threats, see " System failure or cybersecurity breaches of our network security could subject us to increased operating costs as well as litigation and other potential losses" under Item 1A. Risk Factors."
The Company's Chief Information Security Officer (CISO) is designated as the program coordinator responsible for coordinating and overseeing the program. 42 Our Information Security Department performs annual risk assessments to evaluate the effectiveness of the controls as set forth in the Information Security Program to support the requirements under Gramm-Leach Bliley Act (GLBA), and Federal Financial Institutions Examination Council (FFIEC) Guidance on Securing Customer Information.
Our Information Security Department performs annual risk assessments to evaluate the effectiveness of the controls as set forth in the Information Security Program to support the requirements under Gramm-Leach Bliley Act (GLBA), and Federal Financial Institutions Examination Council (FFIEC) Guidance on Securing Customer Information.
Added
The Company's Cybersecurity Committee is responsible for providing overall direction to reduce risk to company and Client data that resides in various systems, both in-house and with third parties. The committee duties are to ensure the confidentiality, integrity, and availability of such information.
Added
Further, the Cybersecurity Committee is responsible for (1) prioritization of Enterprise Strategic Planning for cybersecurity, (2) the review and approval corporate cybersecurity risk tolerance, (3) monitoring of cybersecurity threats and trends, (4) support of cross-functional collaboration on cybersecurity activities, and (5) promotion and support of cybersecurity awareness and decisions across the enterprise.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed1 unchanged
Biggest changeFor additional detail regarding our properties and equipment, see Note 8 to the Consolidated Financial Statements.
Biggest changeFor additional detail regarding our properties and equipment, see Note 8 to the Consolidated Financial Statements. ITEM 3. LEGAL PROCEEDINGS For information regarding legal proceedings, see Note 24 to the Consolidated Financial Statements. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 44 PART II
ITEM 2. PROPERTIES Our headquarters are located at 500 Delaware Ave., Wilmington, Delaware where we lease 78,432 square feet of space. At December 31, 2023, we conducted our business through 88 banking offices located in Delaware, southeastern Pennsylvania and southern New Jersey.
ITEM 2. PROPERTIES Our headquarters are located at 500 Delaware Ave., Wilmington, Delaware where we lease 78,432 square feet of space. At December 31, 2024, we conducted our business through 88 banking offices located in Delaware, southeastern Pennsylvania and southern New Jersey.
At December 31, 2023, our premises and equipment had a net book value of $104.5 million. All of these properties are generally in good condition and are appropriate for their intended use. While these facilities are adequate to meet our current needs, available space is limited and additional facilities may be required to support future expansion.
At December 31, 2024, our premises and equipment had a net book value of $86.0 million. All of these properties are generally in good condition and are appropriate for their intended use. While these facilities are adequate to meet our current needs, available space is limited and additional facilities may be required to support future expansion.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+0 added−2 removed1 unchanged
Biggest changeDecember 31, 2018 through December 31, 2023 Cumulative Total Return 2018 2019 2020 2021 2022 2023 WSFS Financial Corporation $ 100 $ 117 $ 122 $ 137 $ 126 $ 129 Dow Jones Total Market Index 100 125 138 166 155 180 Nasdaq Bank Index 100 124 115 164 138 133 KBW Nasdaq Regional Bank Index 100 124 113 155 144 143 ITEM 6. [RESERVED] 46
Biggest changeDecember 31, 2019 through December 31, 2024 Cumulative Total Return 2019 2020 2021 2022 2023 2024 WSFS Financial Corporation $ 100 $ 104 $ 117 $ 107 $ 110 $ 129 Dow Jones Total Market Index 100 110 133 124 144 165 Nasdaq Bank Index 100 93 132 111 107 129 KBW Nasdaq Regional Bank Index 100 91 125 116 116 131 S&P SmallCap 600 Index 100 111 141 118 137 149 ITEM 6. [RESERVED] 46
Dividends For a discussion of dividend restrictions on our common stock, or of restrictions on dividends from the Company's subsidiaries to the Company, see “Business - Regulation - Regulation of the Company - Dividends” and “Business - Regulation - Regulation of WSFS Bank - Dividends Restrictions.” Securities Authorized for Issuance Under Equity Compensation Plans Shown below is information as of December 31, 2023 with respect to compensation plans under which equity securities of the Registrant are authorized for issuance.
Dividends For a discussion of dividend restrictions on our common stock, or of restrictions on dividends from the Company's subsidiaries to the Company, see “Business - Regulation - Regulation of the Company - Dividends” and “Business - Regulation - Regulation of WSFS Bank - Dividends Restrictions.” Securities Authorized for Issuance Under Equity Compensation Plans Shown below is information as of December 31, 2024 with respect to compensation plans under which equity securities of the Registrant are authorized for issuance.
Cumulative total shareholder return on our common stock or the indices equals the total increase in value since December 31, 2018, assuming reinvestment of all dividends paid into the common stock or the index, respectively. The graph and table were prepared assuming $100 was invested on December 31, 2018 in our common stock and in each of the indices.
Cumulative total shareholder return on our common stock or the indices equals the total increase in value since December 31, 2019, assuming reinvestment of all dividends paid into the common stock or the index, respectively. The graph and table were prepared assuming $100 was invested on December 31, 2019 in our common stock and in each of the indices.
Under the programs, repurchases may be made from time to time in the open market or through negotiated transactions, subject to market conditions and other factors, and in accordance with applicable securities laws.
Under the program, repurchases may be made from time to time in the open market or through negotiated transactions, subject to market conditions and other factors, and in accordance with applicable securities laws.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Registrant’s Common Equity and Related Stockholder Matters Our common stock is traded on the Nasdaq Global Select Market under the symbol “WSFS.” At February 26, 2024, we had 3,404 registered common stockholders of record.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Registrant’s Common Equity and Related Stockholder Matters Our common stock is traded on the Nasdaq Global Select Market under the symbol “WSFS.” At February 24, 2025, we had 3,138 registered common stockholders of record.
Equity Compensation Plan Information (a) (b) (c) Number of Securities to be issued upon exercise of outstanding options, warrants and rights Weighted-Average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Equity compensation plans approved by stockholders (1) 252,851 $ 43.49 3,313,543 Equity compensation plans not approved by stockholders N/A N/A N/A Total 252,851 $ 43.49 3,313,543 (1) Plans approved by stockholders include the 2013 Incentive Plan and the 2018 Incentive Plan.
Equity Compensation Plan Information (a) (b) (c) Number of Securities to be issued upon exercise of outstanding options, warrants and rights Weighted-Average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) Equity compensation plans approved by stockholders (1) 170,620 $ 44.20 2,321,904 Equity compensation plans not approved by stockholders N/A N/A N/A Total 170,620 $ 44.20 2,321,904 (1) Plans approved by stockholders include the 2013 Incentive Plan and the 2018 Incentive Plan.
During the second quarter of 2022, the Board of Directors approved an additional share repurchase authorization under the program of 6,358,727 shares of common stock, or 10% of its outstanding shares as of June 30, 2022.
Share Repurchases: During the second quarter of 2022, the Board of Directors approved a share repurchase program authorizing the repurchase of 6,358,727 shares of common stock, or 10% of our outstanding shares as of June 30, 2022.
Month Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Maximum Number of Shares that May Yet Be Purchased Under the Programs October 1, 2023 - October 31, 2023 — $ — — 5,582,593 November 1, 2023 - November 28, 2023 169,000 38.49 169,000 5,413,593 December 1, 2023 - December 31, 2023 72,000 41.50 72,000 5,341,593 Total 241,000 39.39 241,000 45 COMPARATIVE STOCK PERFORMANCE GRAPH The graph and table which follow show the yearly percentage change in the cumulative total shareholder return on our common stock over the last five years compared with the cumulative total shareholder return of the Dow Jones Total Market Index, the Nasdaq Bank Index and KBW Nasdaq Regional Bank Index over the same period as obtained from Bloomberg L.P.
Month Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Maximum Number of Shares that May Yet Be Purchased Under the Programs October 1, 2024 - October 31, 2024 140,517 $ 50.19 140,517 3,544,575 November 1, 2024 - November 30, 2024 137,521 53.56 137,521 3,407,054 December 1, 2024 - December 31, 2024 115,200 56.69 115,200 3,291,854 Total 393,238 53.27 393,238 45 COMPARATIVE STOCK PERFORMANCE GRAPH The graph and table which follow show the yearly percentage change in the cumulative total shareholder return on our common stock over the last five years compared with the cumulative total shareholder return of the Dow Jones Total Market Index, the Nasdaq Bank Index, the KBW Nasdaq Regional Bank Index, and the S&P SmallCap 600 Index over the same period as obtained from Bloomberg L.P.
The closing market price of our common stock at February 26, 2024 was $41.81.
The closing market price of our common stock at February 24, 2025 was $53.54.
The programs are consistent with our intent to return a minimum of 35% of annual net income to stockholders through dividends and share repurchases while maintaining capital ratios in excess of regulatory minimums and, in the case of the Bank, the “well-capitalized” benchmarks.
The program is consistent with our intent to return a minimum of 35% of annual net income to stockholders through dividends and share repurchases while maintaining capital ratios in excess of the “well-capitalized” benchmarks. During the three months ended December 31, 2024, the Company repurchased 393,238 shares of common stock under the share repurchase program.
Removed
Share Repurchases: During the first quarter of 2020, the Board of Directors approved a share repurchase program authorizing the repurchase of 7,594,977 shares, or 15% of our outstanding shares as of March 31, 2020. This repurchase program was completed during the first quarter of 2023.
Removed
During the three months ended December 31, 2023, the Company had 241,000 shares of common stock repurchased under the current share repurchase programs.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

69 edited+26 added−26 removed45 unchanged
Biggest changeThe following tables detail the allocation of the ACL and show our net charge-offs (recoveries) by portfolio category: (Dollars in thousands) Commercial and Industrial (1) Owner- occupied Commercial Commercial Mortgages Construction Residential (2) Consumer (3) Total As of December 31, 2023 Allowance for credit losses $ 64,564 $ 10,719 $ 36,055 $ 10,762 $ 5,483 $ 58,543 $ 186,126 % of ACL to total ACL 35 % 6 % 19 % 6 % 3 % 31 % 100 % Loan portfolio balance $ 3,163,692 $ 1,886,087 $ 3,801,180 $ 1,035,530 $ 867,895 $ 2,012,134 $ 12,766,518 % to total loans and leases 24 % 15 % 30 % 8 % 7 % 16 % 100 % Year ended December 31, 2023 Charge-offs $ 42,294 $ 184 $ 300 $ 794 $ 41 $ 22,394 $ 66,007 Recoveries 9,721 54 7 532 260 1,625 12,199 Net charge-offs (recoveries) $ 32,573 $ 130 $ 293 $ 262 $ (219) $ 20,769 $ 53,808 Average loan balance $ 3,177,739 $ 1,863,542 $ 3,562,070 $ 1,008,768 $ 817,758 $ 1,922,828 $ 12,352,704 Ratio of net charge-offs (recoveries) to average gross loans 1.03 % 0.01 % 0.01 % 0.03 % (0.03) % 1.08 % 0.44 % (Dollars in thousands) Commercial and Industrial (1) Owner- occupied Commercial Commercial Mortgages Construction Residential (2) Consumer (3) Total As of December 31, 2022 Allowance for credit losses $ 59,394 $ 6,019 $ 21,473 $ 6,987 $ 4,668 $ 53,320 $ 151,861 % of ACL to total ACL 39 % 4 % 14 % 5 % 3 % 35 % 100 % Loan portfolio balance $ 3,134,326 $ 1,809,582 $ 3,351,084 $ 1,044,049 $ 759,465 $ 1,810,930 $ 11,909,436 % to total loans and leases 26 % 15 % 28 % 9 % 7 % 15 % 100 % Year ended December 31, 2022 Charge-offs $ 19,004 $ 179 $ 581 $ — $ 186 $ 7,520 $ 27,470 Recoveries 6,112 278 223 2,567 665 793 10,638 Net charge-offs (recoveries) $ 12,892 $ (99) $ 358 $ (2,567) $ (479) $ 6,727 $ 16,832 Average loan balance $ 3,043,836 $ 1,831,428 $ 3,319,687 $ 962,082 $ 787,273 $ 1,543,704 $ 11,488,010 Ratio of net charge-offs (recoveries) to average gross loans 0.42 % (0.01) % 0.01 % (0.27) % (0.06) % 0.44 % 0.15 % (1) Includes commercial small business leases and PPP loans.
Biggest changeThe following tables detail the allocation of the ACL and show our net charge-offs (recoveries) by portfolio category: (Dollars in thousands) Commercial and Industrial Owner- occupied Commercial Commercial Mortgages Construction Commercial Small Business Leases Residential (1) Consumer (2) Total As of December 31, 2024 Allowance for credit losses $ 57,131 $ 9,139 $ 48,962 $ 9,185 $ 15,965 $ 5,566 $ 49,333 $ 195,281 % of ACL to total ACL 29 % 5 % 25 % 5 % 8 % 3 % 25 % 100 % Loan portfolio balance $ 2,656,174 $ 1,973,645 $ 4,030,627 $ 832,093 $ 647,516 $ 961,426 $ 2,086,393 $ 13,187,874 % to total loans and leases 20 % 15 % 31 % 6 % 5 % 7 % 16 % 100 % Year ended December 31, 2024 Charge-offs $ 15,490 $ 177 $ 5,749 $ — $ 20,033 $ 125 $ 23,549 $ 65,123 Recoveries (6,883) (217) (183) — (2,705) (225) (2,654) (12,867) Net charge-offs (recoveries) $ 8,607 $ (40) $ 5,566 $ — $ 17,328 $ (100) $ 20,895 $ 52,256 Average loan balance $ 2,586,833 $ 1,937,449 $ 3,991,686 $ 945,491 $ 637,036 $ 908,368 $ 2,088,699 $ 13,095,562 Ratio of net charge-offs (recoveries) to average gross loans 0.33 % NMF 0.14 % — % 2.72 % (0.01) % 1.00 % 0.40 % (Dollars in thousands) Commercial and Industrial Owner- occupied Commercial Commercial Mortgages Construction Commercial Small Business Leases Residential (1) Consumer (2) Total As of December 31, 2023 Allowance for credit losses $ 49,394 $ 10,719 $ 36,055 $ 10,762 $ 15,170 $ 5,483 $ 58,543 $ 186,126 % of ACL to total ACL 27 % 6 % 19 % 6 % 8 % 3 % 31 % 100 % Loan portfolio balance $ 2,540,070 $ 1,886,087 $ 3,801,180 $ 1,035,530 $ 623,622 $ 867,895 $ 2,012,134 $ 12,766,518 % to total loans and leases 19 % 15 % 30 % 8 % 5 % 7 % 16 % 100 % Year ended December 31, 2023 Charge-offs $ 26,653 $ 184 $ 300 $ 794 $ 15,641 $ 41 $ 22,394 $ 66,007 Recoveries (7,735) (54) (7) (532) (1,986) (260) (1,625) (12,199) Net charge-offs (recoveries) $ 18,918 $ 130 $ 293 $ 262 $ 13,655 $ (219) $ 20,769 $ 53,808 Average loan balance $ 2,589,147 $ 1,863,542 $ 3,562,070 $ 1,008,768 $ 588,592 $ 817,758 $ 1,922,828 $ 12,352,704 Ratio of net charge-offs (recoveries) to average gross loans 0.73 % 0.01 % 0.01 % 0.03 % 2.32 % (0.03) % 1.08 % 0.44 % (1) Excludes reverse mortgages.
Funding sources to support growth and meet our liquidity needs include cash from operations, commercial, consumer, wealth and trust deposit programs, loan repayments, FHLB borrowings, repurchase agreements, BTFP borrowings, access to the Federal Reserve Discount Window, and access to the brokered deposit market as well as other wholesale funding avenues.
Funding sources to support growth and meet our liquidity needs include cash from operations, commercial, consumer, wealth and trust deposit programs, loan repayments, FHLB borrowings, repurchase agreements, access to the Federal Reserve Discount Window, and access to the brokered deposit market as well as other wholesale funding avenues.
Substantially all of our assets are held by the Company’s subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), one of the ten oldest bank and trust companies in the United States (U.S.) continuously operating under the same name.
Substantially all of our assets are held by our subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), one of the ten oldest bank and trust companies in the United States (U.S.) continuously operating under the same name.
For a description of certain financial instruments to which we are party and which expose us to certain credit risk not recognized in our financial statements, see Note 17 to the Consolidated Financial Statements. 62 CRITICAL ACCOUNTING ESTIMATES The discussion and analyses of the financial condition and results of operations are based on the Consolidated Financial Statements, which are prepared in conformity with U.S.
For a description of certain financial instruments to which we are party and which expose us to certain credit risk not recognized in our financial statements, see Note 17 to the Consolidated Financial Statements. 61 CRITICAL ACCOUNTING ESTIMATES The discussion and analyses of the financial condition and results of operations are based on the Consolidated Financial Statements, which are prepared in conformity with U.S.
Our mission is simple: “We Stand for Service.” Our strategy of “Engaged Associates, living our culture, enriching the communities we serve” focuses on exceeding customer expectations, delivering stellar experiences and building customer advocacy through highly-trained, relationship-oriented, friendly, knowledgeable and empowered Associates.
Our mission is simple: “We Stand for Service®.” Our strategy of “Engaged Associates, living our culture, enriching the communities we serve” focuses on exceeding client expectations, delivering stellar experiences and building client advocacy through highly-trained, relationship-oriented, friendly, knowledgeable and empowered Associates.
As of December 31, 2023, we had six consolidated subsidiaries: WSFS Bank, The Bryn Mawr Trust Company of Delaware (BMT-DE), Bryn Mawr Capital Management, LLC (BMCM), WSFS Wealth Management, LLC (Powdermill ® ), WSFS SPE Services, LLC, and 601 Perkasie, LLC.
As of December 31, 2024, we had six consolidated subsidiaries: WSFS Bank, The Bryn Mawr Trust Company of Delaware (BMT-DE), Bryn Mawr Capital Management, LLC (BMCM), WSFS Wealth Management, LLC (Powdermill ® ), WSFS SPE Services, LLC, and 601 Perkasie, LLC.
We also offer a broad variety of consumer loan products and retail securities brokerage through our retail branches, in addition to mortgage and title services through our branches and WSFS Mortgage ® , our mortgage banking company specializing in a variety of residential mortgage and refinancing solutions.
We also offer a broad variety of consumer loan products and retail securities brokerage through our retail branches, in addition to mortgage and title services through our branches and WSFS Mortgage ® , our mortgage banking division specializing in a variety of residential mortgage and refinancing solutions.
In addition to our focus on stellar customer experience, we have continued to fuel growth and remain a leader in our community. We are a relationship-focused, locally-managed, community banking institution.
In addition to our focus on stellar client experience, we have continued to fuel growth and remain a leader in our community. We are a relationship-focused, locally-managed, community banking institution.
Segment financial information for the years ended December 31, 2023, 2022 and 2021 is provided in Note 21 to the Consolidated Financial Statements. 60 Table of Contents ASSET/LIABILITY MANAGEMENT Our primary asset/liability management goal is to optimize long term net interest income opportunities within the constraints of managing interest rate risk, ensuring adequate liquidity and funding and maintaining a strong capital base.
Segment financial information for the years ended December 31, 2024, 2023 and 2022 is provided in Note 21 to the Consolidated Financial Statements. 59 Table of Contents ASSET/LIABILITY MANAGEMENT Our primary asset/liability management goal is to optimize long term net interest income opportunities within the constraints of managing interest rate risk, ensuring adequate liquidity and funding and maintaining a strong capital base.
Expected maturities of mortgage-backed securities may differ from contractual maturities due to calls or prepay obligations. 57 Table of Contents Provision/Allowance for Credit Losses (ACL) We maintain an ACL at an appropriate level based on our assessment of estimable and probable losses in the loan portfolio, which we evaluate in accordance with applicable accounting principles, as discussed further in “Nonperforming Assets.” Our evaluation is based on a review of the portfolio and requires significant, complex and difficult judgments.
Expected maturities of mortgage-backed securities may differ from contractual maturities due to calls or prepay obligations. 56 Table of Contents Provision/Allowance for Credit Losses (ACL) We maintain an ACL at an appropriate level based on our assessment of current expected credit losses in the loan portfolio, which we evaluate in accordance with applicable accounting principles, as discussed further in “Nonperforming Assets.” Our evaluation is based on a review of the portfolio and requires significant, complex and difficult judgments.
We believe these sources are sufficient to meet our funding needs as well as maintain required and prudent levels of liquidity over the next twelve months and beyond. As of December 31, 2023, the Company has $1.1 billion in cash, cash equivalents, and restricted cash.
We believe these sources are sufficient to meet our funding needs as well as maintain required and prudent levels of liquidity over the next twelve months and beyond. As of December 31, 2024, the Company has $1.2 billion in cash, cash equivalents, and restricted cash.
At December 31, 2023, the Bank was in compliance with regulatory capital requirements and all of its regulatory ratios exceeded “well-capitalized” regulatory benchmarks.
At December 31, 2024, the Bank was in compliance with regulatory capital requirements and all of its regulatory ratios exceeded “well-capitalized” regulatory benchmarks.
We frequently analyze our projections of taxable income and make adjustments to our provision for income taxes accordingly. 59 Table of Contents SEGMENT INFORMATION For financial reporting purposes, our business has three reporting segments: WSFS Bank, Cash Connect ® , and Wealth Management. The WSFS Bank segment provides loans and leases and other financial products to commercial and consumer customers.
We frequently analyze our projections of taxable income and make adjustments to our provision for income taxes accordingly. 58 Table of Contents SEGMENT INFORMATION For financial reporting purposes, our business has three reporting segments: WSFS Bank, Cash Connect ® , and Wealth Management. The WSFS Bank segment provides loans and leases and other financial products to Commercial and Consumer Clients.
These tax benefits are offset by the tax effect of stock-based compensation expense related to incentive stock options, nondeductible acquisition costs and a provision for state income tax expense.
These tax benefits are offset by the tax effect of stock-based compensation expense related to incentive stock options, and a provision for state income tax expense.
We also had three unconsolidated subsidiaries, WSFS Capital Trust III, Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II. WSFS Bank had two wholly-owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC) and 1832 Holdings, Inc., and one majority-owned subsidiary, NewLane Finance Company (NewLane Finance ® ).
The Company also has three unconsolidated subsidiaries: WSFS Capital Trust III, Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II. WSFS Bank has two wholly-owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC) and 1832 Holdings, Inc., and one majority-owned subsidiary, NewLane Finance Company (NewLane Finance ® ).
As a federal savings bank that was formerly chartered as a state mutual savings bank, WSFS Bank enjoys a broader scope of permissible activities than most other financial institutions. A fixture in the community, WSFS Bank has been in operation for more than 191 years.
As a federal savings bank that was formerly chartered as a state mutual savings bank, WSFS Bank enjoys a broader scope of permissible activities than most other financial institutions. A fixture in the community, we have been in operation for more than 192 years.
At December 31, 2023, we had obligations for principal payments on long-term debt including $67.0 million for our trust preferred borrowings, due June 1, 2035, $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027, and $150.0 million for our senior debt, due December 15, 2030.
At December 31, 2024, we had obligations for principal payments on long-term debt including $51.0 million of FHLB advances, $67.0 million for our trust preferred borrowings, due June 1, 2035, $23.8 million for our trust preferred borrowings, due December 15, 2034, $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027, and $150.0 million for our senior debt, due December 15, 2030.
Our banking business had a total loan and lease portfolio of $12.8 billion as of December 31, 2023, which was funded primarily through commercial relationships and consumer and customer generated deposits.
Our banking business had a total loan and lease portfolio of $12.8 billion as of December 31, 2024, which was funded primarily through commercial relationships and client generated deposits.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW WSFS Financial Corporation (the Company or WSFS) is a savings and loan holding company headquartered in Wilmington, Delaware.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW WSFS Financial Corporation (WSFS, and together with its subsidiaries, the Company) is a savings and loan holding company headquartered in Wilmington, Delaware.
Loans are placed on nonaccrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and the value of the collateral is insufficient to cover principal and interest.
Nonaccruing loans are those on which we no longer accrue interest. Loans are placed on nonaccrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and the value of the collateral is insufficient to cover principal and interest.
With $20.6 billion in assets and $84.3 billion in assets under management (AUM) and assets under administration (AUA) at December 31, 2023, WSFS Bank is the oldest and largest locally-managed bank and trust company headquartered in the Greater Philadelphia and Delaware region.
With $20.8 billion in assets and $89.4 billion in assets under management (AUM) and assets under administration (AUA) at December 31, 2024, WSFS Bank is the oldest and largest locally-managed bank and trust company headquartered in the Greater Philadelphia and Delaware region.
Income Taxes We recorded $96.2 million of income tax expense for the year ended December 31, 2023 compared to $78.0 million for the year ended December 31, 2022.
Income Taxes We recorded $83.8 million of income tax expense for the year ended December 31, 2024 compared to $96.2 million for the year ended December 31, 2023.
The following table summarizes the changes in nonperforming assets during the periods indicated: Year Ended December 31, (Dollars in thousands) 2023 2022 Beginning balance $ 43,372 $ 33,133 Additions 110,586 34,041 Collections (19,874) (17,293) Transfers to accrual (1) (20,263) (922) Charge-offs (38,067) (5,587) Ending balance $ 75,754 $ 43,372 (1) Includes impact of ASU No. 2022-02 adoption.
The following table summarizes the changes in nonperforming assets during the periods indicated: Year Ended December 31, (Dollars in thousands) 2024 2023 Beginning balance $ 75,754 $ 43,372 Additions 207,135 110,586 Collections (75,810) (19,874) Transfers to accrual (1) (15,653) (20,263) Charge-offs (64,041) (38,067) Ending balance $ 127,385 $ 75,754 (1) 2023 includes impact of ASU No. 2022-02 adoption.
The Bank’s December 31, 2023 common equity Tier 1 capital ratio of 13.72%, Tier 1 capital ratio of 13.72%, total risk based capital ratio of 14.96% and Tier 1 leverage capital ratio of 10.92%, all remain substantially in excess of “well-capitalized” regulatory benchmarks, the highest regulatory capital rating.
The Bank’s December 31, 2024 common equity Tier 1 capital ratio of 13.88%, Tier 1 capital ratio of 13.88%, total risk based capital ratio of 15.13% and Tier 1 leverage capital ratio of 11.03%, all remain substantially in excess of “well-capitalized” regulatory benchmarks, the highest regulatory capital rating.
We repurchased 1,247,178 and 4,151,117 shares of our common stock in 2023 and 2022, respectively. We held 15,557,263 shares and 14,310,085 shares of our common stock as treasury shares at December 31, 2023 and 2022, respectively. For further information on our regulatory capital requirements, refer to our Capital Resources discussion below.
We repurchased 2,049,739 and 1,247,178 shares of our common stock in 2024 and 2023, respectively. We held 17,607,002 shares and 15,557,263 shares of our common stock as treasury shares at December 31, 2024 and 2023, respectively. For further information on our regulatory capital requirements, refer to our Capital Resources discussion below.
The effective tax rate reflects the recognition of certain tax benefits in the financial statements including those benefits from tax-exempt interest income, federal low-income housing/research and development tax credits, and excess tax benefits from recognized stock compensation.
The effective tax rate reflects the recognition of certain tax benefits in the financial statements including those benefits from tax-exempt interest income, income from bank-owned life insurance policies, various federal income tax credits, and excess tax benefits from recognized stock compensation.
For the year ended December 31, 2023, we recorded a provision for credit losses of $88.1 million, a net change of $40.0 million, compared to the provision of credit losses of $48.1 million in 2022.
For the year ended December 31, 2024, we recorded a provision for credit losses of $61.4 million, a net change of $26.7 million, compared to a provision for credit losses of $88.1 million in 2023.
Cash Connect ® services non-bank and WSFS-branded ATMs and smart safes nationwide, and manages approximately $1.9 billion in total cash and services approximately 33,000 non-bank ATMs and 8,700 smart safes nationwide.
Cash Connect ® services non-bank and WSFS-branded ATMs and smart safes nationwide, and manages approximately $1.6 billion in total cash and services approximately 28,600 non-bank ATMs and 10,000 smart safes nationwide.
The increase in income tax expense was primarily driven by an increase in income before taxes of $64.7 million for the year ended December 31, 2023 compared to the year ended December 31, 2022. The effective tax rates for the years ended December 31, 2023 and 2022 were 26.3% and 25.9%, respectively.
The decrease in income tax expense was primarily driven by a decrease in income before taxes of $18.0 million for the year ended December 31, 2024 compared to the year ended December 31, 2023. The effective tax rates for the years ended December 31, 2024 and 2023 were 24.1% and 26.3%, respectively.
Stockholders’ equity increased $272.5 million to $2.5 billion at December 31, 2023 compared to the prior year.
Stockholders’ equity increased $112.1 million to $2.6 billion at December 31, 2024 compared to the prior year.
WSFS Institutional Services ® ended 2023 as the securitization industry's fourth most active trustee by number of deals for U.S. ABS and MBS according to Asset-Backed Alert’s ABS Database.
At December 31, 2024, Wealth Management had AUA/AUM of $89.4 billion, a 15% increase from 2023 balances. WSFS Institutional Services ® ended 2024 as the securitization industry's fourth most active trustee by number of deals for U.S. ABS and MBS according to Asset-Backed Alert’s ABS Database.
Additionally, changes in factors and inputs may be directionally inconsistent, such that improvement in one factor may offset deterioration in others. As of December 31, 2023, the Company believes that its ACL was adequate. For information on Recent Accounting Pronouncements see Note 2 to the Consolidated Financial Statements. 63
Additionally, changes in factors and inputs may be directionally inconsistent, such that improvement in one factor may offset deterioration in others. As of December 31, 2024, the Company believes that its ACL was adequate. 62
Combined, these businesses had $84.3 billion of AUM and AUA at December 31, 2023. Bryn Mawr Trust ® is our predominant Private Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals.
Bryn Mawr Trust ® is our predominant Private Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals.
The following table shows our nonperforming assets and past due loans at the dates indicated: At December 31, (Dollars in thousands) 2023 2022 Nonaccruing loans: Commercial and industrial $ 29,389 $ 6,770 Owner-occupied commercial 4,862 386 Commercial mortgages 22,292 5,159 Construction 12,617 5,143 Residential 2,579 3,199 Consumer 2,446 2,145 Total nonaccruing loans (1) 74,185 22,802 Other real estate owned 1,569 833 Restructured loans (2) — 19,737 Total nonperforming assets $ 75,754 $ 43,372 Past due loans: Commercial $ 1,552 $ 1,022 Consumer (3) 10,032 15,513 Total past due loans $ 11,584 $ 16,535 Troubled loans (4)(5) : Commercial $ 85,330 $ — Residential 777 — Consumer 9,161 — Total troubled loans $ 95,268 $ — Ratio of allowance for credit losses to total gross loans and leases (6) 1.35 % 1.17 % Ratio of nonaccruing loans to total gross loans and leases (7) 0.58 0.19 Ratio of nonperforming assets to total assets 0.37 0.22 Ratio of allowance for credit losses to nonaccruing loans 251 666 Ratio of allowance for credit losses to total nonperforming assets (8) 246 350 (1) Includes nonaccrual loans held-for-sale.
The following table shows our nonperforming assets, past due loans, and troubled loans at the dates indicated: At December 31, (Dollars in thousands) 2024 2023 Nonaccruing loans (1) : Commercial and industrial $ 61,809 $ 29,389 Owner-occupied commercial 4,710 4,862 Commercial mortgages 22,223 22,292 Construction 25,600 12,617 Residential 5,011 2,579 Consumer 2,828 2,446 Total nonaccruing loans (2) 122,181 74,185 Other real estate owned 5,204 1,569 Total nonperforming assets $ 127,385 $ 75,754 Past due loans: Commercial $ 1,812 $ 1,552 Residential 15 — Consumer (3) 7,375 10,032 Total past due loans $ 9,202 $ 11,584 Troubled loans (4) : Commercial $ 143,904 $ 85,330 Residential 144 777 Consumer 7,240 9,161 Total troubled loans $ 151,288 $ 95,268 Ratio of allowance for credit losses to total gross loans and leases (5) 1.48 % 1.46 % Ratio of nonaccruing loans to total gross loans and leases (6) 0.93 0.58 Ratio of nonperforming assets to total assets 0.61 0.37 Ratio of allowance for credit losses to nonaccruing loans 160 251 Ratio of allowance for credit losses to total nonperforming assets (7) 153 246 (1) Includes nonaccruing troubled loans.
We are also contractually obligated to make interest payments on our long-term debt through their respective maturities. For additional information regarding long-term debt, see Note 12 to the Consolidated Financial Statements. At December 31, 2023, the Company had total commitments to extend credit of $4.1 billion, which are generally one year commitments.
We are also contractually obligated to make interest payments on our long-term debt through their respective maturities. We are also contractually obligated to make interest payments on our long-term debt through their respective maturities. For additional information regarding long-term debt, see Note 12 to the Consolidated Financial Statements.
(2) Excludes reverse mortgages. (3) Includes home equity lines of credit, installment loans unsecured lines of credit and education loans. 58 Table of Contents Noninterest Income Noninterest income increased $29.7 million to $289.9 million in 2023 from $260.1 million in 2022.
(2) Includes home equity lines of credit, installment loans unsecured lines of credit and education loans. 57 Table of Contents Noninterest Income Noninterest income increased $51.0 million to $340.9 million in 2024 from $289.9 million in 2023.
The Wealth Management segment provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients.
The Wealth Management segment provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients. WSFS Bank Segment The WSFS Bank segment income before taxes decreased $22.0 million, or 9%, in 2024 compared to 2023.
As of December 31, 2023, the Company had a readily available, secured borrowing capacity of $5.4 billion from the FHLB, $0.6 billion through the Federal Reserve Discount Window, and $1.7 billion through the BTFP.
Our estimated uninsured deposits were $6.4 billion, or 38% of total customer deposits, and our estimated unprotected deposits (uninsured and uncollateralized) were $5.2 billion, or 31% of total customer deposits. As of December 31, 2024, the Company had a readily available, secured borrowing capacity of $5.7 billion from the FHLB and $2.4 billion through the Federal Reserve Discount Window.
In general, this system uses guidelines established by federal regulation. 53 Table of Contents RESULTS OF OPERATIONS 2022 compared with 2021 For a discussion of our results for the year ended December 31, 2022 compared to the year ended December 31, 2021, please see "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 28, 2023. 2023 compared with 2022 We recorded net income attributable to WSFS of $269.2 million, or $4.40 per diluted common share, for the year ended December 31, 2023, a increase of $46.8 million compared to $222.4 million, or $3.49 per diluted common share, for the year ended December 31, 2022. • Net interest income for the year ended December 31, 2023 was $725.1 million, an increase of $62.2 million compared to 2022, primarily due to the the benefits of our asset-sensitive balance sheet and an increase from the balance sheet size and mix.
In general, this system uses guidelines established by federal regulation. 52 Table of Contents RESULTS OF OPERATIONS 2023 compared with 2022 For a discussion of our results for the year ended December 31, 2023 compared to the year ended December 31, 2022, please see "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. 2024 compared with 2023 We recorded net income attributable to WSFS of $263.7 million, or $4.41 per diluted common share, for the year ended December 31, 2024, a decrease of $5.5 million compared to $269.2 million, or $4.40 per diluted common share, for the year ended December 31, 2023. • Net interest income for the year ended December 31, 2024 was $705.4 million, a decrease of $19.7 million compared to 2023, primarily due to continued deposit mix shift and growth in higher priced deposit products over the past year, partially offset by higher loan volumes and yields.
The effective tax rate for year ended December 31, 2023 increased primarily due to our decision to surrender certain BOLI policies in 2023 that resulted in $7.1 million of tax expense. In addition, the 2022 effective tax rate reflects the impact of the write-off of $6.7 million of nondeductible goodwill related to the sale of the BMT Insurance Advisors business.
The effective tax rate for year ended December 31, 2024 decreased primarily due to our decision to surrender certain BOLI policies in 2023 that resulted in $7.1 million of tax expense.
The increase was primarily due to earnings of $269.2 million during the year and a decrease of $81.9 million in accumulated other comprehensive loss from market value increases on investment securities, partially offset by significant levels of capital return to shareholders including $54.6 million from the repurchase of shares of common stock under our stock repurchase plan and shares withheld to cover tax liabilities, and the payment of dividends on our common stock of $36.7 million.
The increase was primarily due to earnings of $263.7 million during the year, partially offset by significant capital returns to shareholders ($96.3 million from the repurchase of shares of common stock under our stock repurchase plan as well as payment of dividends on our common stock of $35.8 million), and an increase of $30.9 million in accumulated other comprehensive loss due to market value decreases on investment securities.
See “Noninterest Expense” for further information. 54 Table of Contents Net Interest Income The following table provides information regarding the average balances of, and yields/rates on, interest-earning assets and interest-bearing liabilities during the periods indicated: Year Ended December 31, 2023 2022 (Dollars in thousands) Average Balance Interest & Dividends Yield/ Rate (1) Average Balance Interest & Dividends Yield/ Rate (1) Assets: Interest-earning assets: Loans: (2) Commercial loans and leases $ 5,041,280 $ 346,389 6.88 % $ 4,875,265 $ 253,293 5.21 % Commercial mortgage loans 4,570,839 317,603 6.95 4,281,768 203,611 4.76 Residential 820,600 38,886 4.74 790,650 35,420 4.48 Consumer 1,922,827 138,510 7.20 1,543,704 86,743 5.62 Loans held for sale 47,424 3,883 8.19 65,927 3,687 5.59 Total loans and leases 12,402,970 845,271 6.82 11,557,314 582,754 5.05 Mortgage-backed securities (3) 4,640,646 107,555 2.32 5,151,469 106,606 2.07 Investment securities (3) 367,026 8,783 2.71 338,979 6,899 2.39 Other interest-earning assets 282,462 14,913 5.28 878,097 7,556 0.86 Total interest-earning assets 17,693,104 976,522 5.53 17,925,859 703,815 3.94 Allowance for credit losses (169,140) (140,916) Cash and due from banks 256,984 243,579 Cash in non-owned ATMs 392,007 551,108 Bank owned life insurance 98,935 100,725 Other noninterest-earning assets 1,931,147 1,783,340 Total assets $ 20,203,037 $ 20,463,695 Liabilities and stockholders’ equity: Interest-bearing liabilities: Interest-bearing deposits: Interest-bearing demand $ 3,019,050 $ 26,671 0.88 % $ 3,377,321 $ 7,441 0.22 % Money market 4,317,810 122,168 2.83 3,918,756 13,536 0.35 Savings 1,832,601 5,733 0.31 2,265,721 965 0.04 Customer time deposits 1,571,682 45,184 2.87 1,103,336 5,626 0.51 Total interest-bearing customer deposits 10,741,143 199,756 1.86 10,665,134 27,568 0.26 Brokered deposits 214,608 10,064 4.69 36,461 613 1.68 Total interest-bearing deposits 10,955,751 209,820 1.92 10,701,595 28,181 0.26 Federal Home Loan Bank advances 103,268 5,348 5.18 12,841 538 4.19 Trust preferred borrowings 90,534 6,736 7.44 90,337 3,482 3.85 Senior and subordinated debt 221,975 9,815 4.42 248,389 8,246 3.32 Other borrowed funds (4) 442,197 19,700 4.46 47,076 478 1.02 Total interest-bearing liabilities 11,813,725 251,419 2.13 11,100,238 40,925 0.37 Noninterest-bearing demand deposits 5,306,511 6,376,459 Other noninterest-bearing liabilities 787,573 590,814 Stockholders’ equity of WSFS 2,300,467 2,398,871 Noncontrolling interest (5,239) (2,687) Total liabilities and stockholders’ equity $ 20,203,037 $ 20,463,695 Excess of interest-earning assets over interest-bearing liabilities $ 5,879,379 $ 6,825,621 Net interest and dividend income $ 725,103 $ 662,890 Interest rate spread 3.40 % 3.57 % Net interest margin 4.11 % 3.71 % (1) Weighted average yields for tax-exempt securities and loans have been computed on a tax-equivalent basis.
See “Noninterest Expense” for further information. 53 Table of Contents Net Interest Income The following table provides information regarding the average balances of, and yields/rates on, interest-earning assets and interest-bearing liabilities during the periods indicated: Year Ended December 31, 2024 2023 (Dollars in thousands) Average Balance Interest & Dividends Yield/ Rate (1) Average Balance Interest & Dividends Yield/ Rate (1) Assets: Interest-earning assets: Loans: (2) Commercial loans and leases $ 5,161,318 $ 362,909 7.04 % $ 5,041,280 $ 346,389 6.88 % Commercial mortgage loans 4,937,177 349,507 7.08 4,570,839 317,603 6.95 Residential 911,345 46,094 5.06 820,600 38,886 4.74 Consumer 2,088,699 156,195 7.48 1,922,827 138,510 7.20 Loans held for sale 44,263 3,676 8.30 47,424 3,883 8.19 Total loans and leases 13,142,802 918,381 6.99 12,402,970 845,271 6.82 Mortgage-backed securities (3) 4,365,155 102,024 2.34 4,640,646 107,555 2.32 Investment securities (3) 364,896 8,739 2.65 367,026 8,783 2.71 Other interest-earning assets 647,361 34,438 5.32 282,462 14,913 5.28 Total interest-earning assets 18,520,214 1,063,582 5.75 17,693,104 976,522 5.53 Allowance for credit losses (195,126) (169,140) Cash and due from banks 182,368 256,984 Cash in non-owned ATMs 339,646 392,007 Bank owned life insurance 38,958 98,935 Other noninterest-earning assets 1,935,011 1,931,147 Total assets $ 20,821,071 $ 20,203,037 Liabilities and stockholders’ equity: Interest-bearing liabilities: Interest-bearing deposits: Interest-bearing demand $ 2,823,136 $ 33,007 1.17 % $ 3,019,050 $ 26,671 0.88 % Money market 5,202,179 183,306 3.52 4,317,810 122,168 2.83 Savings 1,535,151 7,314 0.48 1,832,601 5,733 0.31 Customer time deposits 1,998,134 84,871 4.25 1,571,682 45,184 2.87 Total interest-bearing customer deposits 11,558,600 308,498 2.67 10,741,143 199,756 1.86 Brokered deposits 4,577 178 3.89 214,608 10,064 4.69 Total interest-bearing deposits 11,563,177 308,676 2.67 10,955,751 209,820 1.92 Federal Home Loan Bank (FHLB) advances 56,855 2,967 5.22 103,268 5,348 5.18 Trust preferred borrowings 90,730 6,910 7.62 90,534 6,736 7.44 Senior and subordinated debt 218,507 9,690 4.43 221,975 9,815 4.42 Other borrowed funds (4) 645,921 29,901 4.63 442,197 19,700 4.46 Total interest-bearing liabilities 12,575,190 358,144 2.85 11,813,725 251,419 2.13 Noninterest-bearing demand deposits 4,926,702 5,306,511 Other noninterest-bearing liabilities 793,465 787,573 Stockholders’ equity of WSFS 2,535,737 2,300,467 Noncontrolling interest (10,023) (5,239) Total liabilities and stockholders’ equity $ 20,821,071 $ 20,203,037 Excess of interest-earning assets over interest-bearing liabilities $ 5,945,024 $ 5,879,379 Net interest and dividend income $ 705,438 $ 725,103 Interest rate spread 2.90 % 3.40 % Net interest margin 3.82 % 4.11 % (1) Weighted average yields for tax-exempt securities and loans have been computed on a tax-equivalent basis.
As of December 31, 2023, we service our customers primarily from our 114 offices located in Pennsylvania (57), Delaware (40), New Jersey (14), Florida (1), Nevada (1) and Virginia (1), our ATM network, our website at www.wsfsbank.com , and our mobile app.
WSFS Institutional Services ® provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles. 47 As of December 31, 2024, we service our Clients primarily from 114 offices located in Pennsylvania (57), Delaware (39), New Jersey (14), Florida (2), Nevada (1) and Virginia (1), our ATM network, our website at www.wsfsbank.com , and our mobile app.
For additional information regarding commitments to extend credit, see Note 17 to the Consolidated Financial Statements. 51 Table of Contents NONPERFORMING ASSETS Nonperforming assets include nonaccruing loans, OREO and restructured loans. Nonaccruing loans are those on which we no longer accrue interest.
At December 31, 2024, the Company had total commitments to extend credit of $4.2 billion, which are generally one year commitments. For additional information regarding commitments to extend credit, see Note 17 to the Consolidated Financial Statements. 50 Table of Contents NONPERFORMING ASSETS Nonperforming assets include nonaccruing loans and OREO.
At December 31, 2023, we had $211.3 million in total contractual payments for ongoing leases that have remaining lease terms of less than one year to 22 years, which includes renewal options that are exercised at our discretion. For additional information on our operating leases see Note 9 to the Consolidated Financial Statements.
Our primary cash contractual obligations relate to operating leases, long-term debt, credit obligations, and data processing. At December 31, 2024, we had $212.5 million in total contractual payments for ongoing leases that have remaining lease terms of less than one year to 21 years, which includes renewal options that are exercised at our discretion.
BMT-DE provides personal trust and fiduciary services to families and individuals across the U.S. and internationally. WSFS Institutional Services ® provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles.
BMT-DE provides personal trust and fiduciary services to families and individuals across the U.S. and internationally.
Cash Connect ® provides related services such as online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection and deposit safe cash logistics.
Cash Connect ® provides related services such as online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, and deposit safe cash logistics. Cash Connect ® also supports 567 owned or branded ATMs for WSFS Bank Clients, which is one of the largest branded ATM networks in our market.
At year-end 2023, Cash Connect ® serviced approximately 33,000 non-bank ATMs compared to approximately 26,300 at year-end 2022 as a result of a large industry participant exiting their ATM cash vault business and approximately 8,700 smart safes nationwide compared to approximately 7,500 smart safes at year-end 2022.
At year-end 2024, Cash Connect ® serviced approximately 28,600 non-bank ATMs compared to approximately 33,000 at year-end 2023 and approximately 10,000 smart safes nationwide compared to approximately 8,700 smart safes at year-end 2023.
In addition to these decreases, we recognized $6.0 million of unrealized gains on equity investments and $2.6 million from BMTIA in 2022. Our diverse fee-based businesses support sustainability of noninterest income through economic cycles. Noninterest Expenses Noninterest expense decreased $12.7 million to $561.6 million in 2023 from $574.3 million in 2022.
Our diverse fee-based businesses support sustainability of noninterest income through economic cycles. Noninterest Expenses Noninterest expense increased $76.1 million to $637.7 million in 2024 from $561.6 million in 2023.
Cash provided by financing activities was $344.9 million, primarily due to the borrowing of $565.0 million from the BTFP and a $252.5 million net increase in deposits, partially offset by $350.0 million for the repayment of fixed rate FHLB term advances, $54.6 million for repurchases of common stock under the previously announced stock repurchase plan, common stock dividends of $36.7 million, and the $30.0 million redemption of the 2025 Notes 50 Table of Contents Our primary cash contractual obligations relate to operating leases, long-term debt, credit obligations, and data processing.
Cash used by financing activities was $91.2 million, primarily due to the net repayment of $565.0 million of BTFP borrowings, $96.3 million for repurchases of common stock under the previously announced stock repurchase plan, and common stock dividends of $35.8 million, partially offset by a $557.7 million net increase in deposits and $51.0 million for the receipt of fixed rate FHLB term advances.
Cash used for investing activities was $326.3 million primarily due to a $486.8 million net increase in loans and leases and purchases of loans held for investment of $313.4 million. These outflows were partially offset by net repayments of available-for-sale and held-to-maturity debt securities of $327.1 million and $73.0 million, respectively.
These outflows were partially offset by net repayments of available-for-sale and held-to-maturity debt securities of $283.0 million and $61.3 million, respectively.
In addition, the Company had $1.5 billion in unpledged securities that could be used to support additional borrowings and $0.5 billion of cash deposited with the Federal Reserve Bank. The Company’s readily available, secured borrowing capacity to estimated unprotected deposits ratio is 202%.
In addition, the Company had $1.1 billion in unpledged securities that could be used to support additional borrowings and $0.6 billion of cash deposited with the Federal Reserve Bank. During the year ended December 31, 2024, cash, cash equivalents and restricted cash increased $61.9 million to $1.2 billion from $1.1 billion as of December 31, 2023.
Liquidity We manage our liquidity and funding needs through our Treasury function and our Asset/Liability Committee. We have a policy that separately addresses liquidity, and management monitors our adherence to policy limits. Also, liquidity risk management is a primary area of examination by the banking regulators.
In addition, and not included in the Bank's capital, the holding company held $275.4 million in cash to support potential dividends, acquisitions and strategic growth plans. Liquidity We manage our liquidity and funding needs through our Treasury function and our Asset/Liability Committee. We have a policy that separately addresses liquidity, and management monitors our adherence to policy limits.
The interest rate environment materially increased vault operating expenses, resulting in a full-year 2023 ROA for the Cash Connect ® segment of 0.80%, a decrease of 21bps in comparison with full-year 2022. Cash Connect ® had $1.9 billion in total cash managed at December 31, 2023 and $1.7 billion at December 31, 2022.
The full-year 2024 ROA for the Cash Connect ® segment decreased 63 bps to 0.17% compared to 0.80% for the full-year 2023 primarily due to the termination of the vault cash relationship described above. Cash Connect ® had $1.6 billion in total cash managed at December 31, 2024 and $1.9 billion at December 31, 2023.
See “Provision/Allowance for Credit Losses” for further information. • Noninterest income increased $29.7 million in 2023, primarily due to increases in income from Cash Connect ® , Wealth Management fee income, a realized gain from our investment in Spring EQ, and capital markets income.
See “Provision/Allowance for Credit Losses” for further information. • Noninterest income increased $51.0 million in 2024, primarily due to increases from Cash Connect ® driven by higher ATM bailment volume and growth in smart safes, Wealth Management driven by WSFS Institutional Services ® and Bryn Mawr Capital Management, mortgage banking income, and a gain on our Visa B derivative liability.
This increase was primarily due to the transfer in of seven commercial relationships totaling $61.1 million and two CRE relationships totaling $19.4 million during the period. These inflows were partially offset by partial charge-offs on some of the C&I relationships totaling $20.7 million, several smaller payoffs and the continued collection of principal payments on the majority of these loans.
These inflows were partially offset by partial charge-offs on some of the commercial mortgage and commercial and industrial relationships totaling $14.2 million, several smaller payoffs, and the continued collection of principal payments on the majority of these loans. The ratio of nonperforming assets to total assets increased from 0.37% at December 31, 2023 to 0.61% at December 31, 2024.
The decrease was primarily due to $61.5 million lower net corporate development and restructuring costs, partially offset by increases of $29.5 million in other operating expense driven by higher variable operating costs from Cash Connect ® , $9.8 million in FDIC expenses which includes the $5.1 million FDIC special assessment charged to recover losses to the Deposit Insurance Fund related to closures of certain banks in 2023, $5.3 million in salaries and benefits costs, and $2.7 million in professional fees.
These increases were partially offset by a $4.6 million decrease in occupancy expense and a $3.7 million decrease in FDIC expenses related to the FDIC special assessment charged in 2023 to recover losses to the Deposit Insurance Fund related to closures of certain banks.
Total liabilities increased $0.4 billion, or 2%, to $18.1 billion at December 31, 2023 compared to the prior year, primarily comprised of the following (in descending order of magnitude): • Other borrowed funds increased $547.8 million primarily due to $565.0 million borrowed from the Bank Term Funding Program (BTFP) as a result of favorable terms and pricing. • Total deposits increased $270.5 million, primarily driven by a $236.6 million increase in trust deposits. • FHLB advances decreased $350.0 million due to the repayment of fixed rate FHLB term advances as part of our routine balance sheet management. • Other liabilities decreased $68.2 million primarily due to a net decrease of $65.3 million in collateral held on derivatives and derivative liabilities driven by changes in interest rates. • Senior and subordinated debt decreased $29.8 million due to the redemption of the 2025 Notes.
Total liabilities increased $110.1 million, or 1%, to $18.2 billion at December 31, 2024 compared to the prior year, primarily comprised of the following (in descending order of magnitude): • Total deposits increased $555.7 million, primarily driven by the Consumer and Commercial businesses, with growth in time, money market, and noninterest demand deposits. • Other liabilities increased $74.3 million primarily due to an increase of $53.1 million in collateral held on derivatives and derivative liabilities and $12.8 million due to performance-based incentive increases. • FHLB advances increased $51.0 million due to favorable pricing terms. • Other borrowed funds decreased $562.9 million primarily due to the repayment of borrowings from the BTFP.
(2) Accruing loans only, which includes acquired nonimpaired loans. Nonaccruing Troubled Debt Restructurings (TDRs) are included in their respective categories of nonaccruing loans. (3) Includes delinquent, but still accruing, U.S. government guaranteed student loans with little risk of credit loss. (4) Loans with certain modifications (as prescribed in ASU No. 2022-02) to borrowers experiencing financial difficulty.
(2) Includes nonaccrual loans held-for-sale as of December 31, 2023 (3) Includes U.S. government guaranteed student loans with little risk of credit loss. (4) Represents loans with certain modifications (as prescribed in ASU 2022-02) to borrowers experiencing financial difficulty. (5) Represents amortized cost basis for loans and leases. (6) Total loans exclude loans held for sale and reverse mortgages.
The increase was partially offset by lower purchase accounting accretion. See “Net Interest Income” for further information. • Our provision for credit losses increased $40.0 million in 2023, primarily due to higher provisions on our CRE, commercial small business leasing, and Upstart portfolios as well as our elder care portfolio within C&I.
See “Net Interest Income” for further information. • Our provision for credit losses decreased $26.7 million in 2024, primarily driven by a lower provision on our consumer portfolio due to the runoff of our Upstart portfolio and higher provisions on our owner-occupied and construction portfolios in the prior year, partially offset by loan growth.
(2) Includes a tax-equivalent income adjustment related to municipal bonds. 56 Table of Contents Investment Securities The following table details the maturity and weighted average yield of the available-for-sale investment portfolio as of December 31, 2023: (Dollars in thousands) Maturing During 2024 Maturing From 2025 Through 2028 Maturing From 2029 Through 2033 Maturing After 2033 Total Collateralized mortgage obligations (CMO) Amortized cost $ — $ 25,645 $ 65,192 $ 470,115 $ 560,952 Weighted average yield — % 2.37 % 1.97 % 1.84 % 1.88 % Fannie Mae (FNMA) mortgage-backed securities (MBS) Amortized cost $ — $ 60,147 $ 230,640 $ 3,253,975 $ 3,544,762 Weighted average yield — % 2.38 % 2.05 % 1.99 % 2.00 % Freddie Mac (FHLMC) MBS Amortized cost $ — $ 431 $ 51,704 $ 74,721 $ 126,856 Weighted average yield — % 2.43 % 2.39 % 3.15 % 2.84 % Ginnie Mae (GNMA) MBS Amortized cost $ — $ 1 $ 558 $ 45,774 $ 46,333 Weighted average yield — % 4.79 % 2.98 % 3.39 % 3.38 % Government-sponsored enterprises (GSE) Amortized cost $ — $ — $ 221,861 $ 3,578 $ 225,439 Weighted average yield — % — % 1.30 % 1.44 % 1.30 % Total amortized cost $ — $ 86,224 $ 569,955 $ 3,848,163 $ 4,504,342 Weighted average yield — % 2.38 % 1.78 % 2.01 % 1.99 % As of December 31, 2023, WSFS does not have any tax-exempt securities within the available-for-sale investment portfolio.
(2) Includes a tax-equivalent income adjustment related to municipal bonds. 55 Table of Contents Investment Securities The following table details the maturity and weighted average yield of the available-for-sale investment portfolio as of December 31, 2024: (Dollars in thousands) Maturing During 2025 Maturing From 2026 Through 2029 Maturing From 2030 Through 2034 Maturing After 2034 Total Collateralized mortgage obligations (CMO) Amortized cost $ — $ 50,924 $ 48,316 $ 427,556 $ 526,796 Weighted average yield — % 2.51 % 2.25 % 0.92 % 1.91 % Fannie Mae (FNMA) mortgage-backed securities (MBS) Amortized cost $ 16,833 $ 60,965 $ 201,089 $ 3,026,531 $ 3,305,418 Weighted average yield 2.17 % 2.53 % 2.03 % 2.04 % 2.05 % Freddie Mac (FHLMC) MBS Amortized cost $ — $ 29,884 $ 20,623 $ 68,098 $ 118,605 Weighted average yield — % 2.76 % 1.85 % 3.15 % 2.83 % Ginnie Mae (GNMA) MBS Amortized cost $ — $ 385 $ 23 $ 44,170 $ 44,578 Weighted average yield — % 2.89 % 4.91 % 3.51 % 3.50 % Government-sponsored enterprises (GSE) agency notes Amortized cost $ — $ 4,999 $ 217,870 $ — $ 222,869 Weighted average yield — % 1.13 % 1.31 % — % 1.31 % Total amortized cost $ 16,833 $ 147,157 $ 487,921 $ 3,566,355 $ 4,218,266 Weighted average yield 2.17 % 2.52 % 1.72 % 2.05 % 2.03 % As of December 31, 2024, WSFS does not have any tax-exempt securities within the available-for-sale investment portfolio.
Wealth Management Segment The Wealth Management segment income before taxes increased $28.9 million in 2023 compared to 2022, primarily attributable to growth in our institutional trust activity. At December 31, 2023, Wealth Management had AUA/AUM of $84.3 billion, a 31% increase from 2022 balances.
Wealth Management Segment The Wealth Management segment income before taxes increased $7.2 million in 2024 compared to 2023, primarily attributable to growth in our institutional trust activity and Bryn Mawr Capital Management, partially offset by increases in salaries and benefits as a result of talent additions to support future growth.
Cash Connect ® also supports 590 owned or branded ATMs for WSFS Bank Customers, which is one of the largest branded ATM networks in our market. 47 Our Wealth Management business provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients.
Our Wealth Management business provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients. Combined, these businesses had $89.4 billion of AUM and AUA at December 31, 2024.
The increase was primarily due to higher provisions on our CRE, commercial small business leasing, and Upstart portfolios as well as our elder care portfolio within C&I. The ACL was $186.1 million at December 31, 2023 compared to $151.9 million at December 31, 2022.
The ACL was $195.3 million at December 31, 2024 compared to $186.1 million at December 31, 2023. The increase of the ACL was primarily due to net loan growth, as well as increases in criticized loan levels in the commercial mortgages portfolio and specific reserves on certain commercial loans.
For additional information related to interest rate sensitivity, see "Quantitative and Qualitative Disclosures About Market Risk." The repricing and maturities of our interest-rate sensitive assets and interest-rate sensitive liabilities at December 31, 2023 are shown in the following table: (Dollars in thousands) Less than One Year One to Five Years Five to Fifteen Years Over Fifteen Years Total Interest-rate sensitive assets: Loans (1) : Commercial loans and leases $ 4,270,467 $ 1,560,156 $ 360,958 $ 10,148 $ 6,201,729 Commercial mortgage loans 2,637,128 953,519 216,446 5,096 3,812,189 Residential (2) 127,836 301,046 357,615 93,426 879,923 Consumer 944,286 776,008 235,189 33,589 1,989,072 Loans held for sale 26,193 5,283 4,010 — 35,486 Investment securities, available-for-sale 810,582 1,288,020 2,306,782 566,486 4,971,870 Investment securities, held-to-maturity 62,200 241,817 561,770 313,207 1,178,994 Other interest-earning assets 15,398 — — — 15,398 Total interest-rate sensitive assets: $ 8,894,090 $ 5,125,849 $ 4,042,770 $ 1,021,952 $ 19,084,661 Interest-rate sensitive liabilities: Interest-bearing deposits: Interest-bearing demand $ 1,467,765 $ — $ — $ — $ 1,467,765 Savings 882,060 — — — 882,060 Money market 4,088,226 — — — 4,088,226 Customer time deposits 1,695,594 86,290 1,583 — 1,783,467 Trust preferred borrowings 90,638 — — — 90,638 Senior and subordinated debt 70,000 148,400 — — 218,400 Other borrowed funds 629,216 — — 8,498 637,714 Total interest-rate sensitive liabilities: $ 8,923,499 $ 234,690 $ 1,583 $ 8,498 $ 9,168,270 (Shortfall) excess of interest-rate sensitive assets over interest-rate liabilities (interest-rate sensitive gap) $ (29,409) $ 4,891,159 $ 4,041,187 $ 1,013,454 $ 9,916,391 One-year interest-rate sensitive assets/interest-rate sensitive liabilities 99.67 % One-year interest-rate sensitive gap as a percent of total assets (0.14) % (1) Loan balances exclude nonaccruing loans, deferred fees and costs (2) Includes reverse mortgage loans 61 Table of Contents Generally, during a period of rising interest rates, a positive gap would result in an increase in net interest income while a negative gap would adversely affect net interest income.
For additional information related to interest rate sensitivity, see "Quantitative and Qualitative Disclosures About Market Risk." The repricing and maturities of our interest-rate sensitive assets and interest-rate sensitive liabilities at December 31, 2024 are shown in the following table: (Dollars in thousands) Less than One Year One to Five Years Five to Fifteen Years Over Fifteen Years Total Interest-rate sensitive assets: Loans (1) : Commercial loans and leases $ 4,278,839 $ 1,578,106 $ 361,454 $ 9,618 $ 6,228,017 Commercial mortgage loans 2,906,950 921,943 206,131 5,711 4,040,735 Residential (2) 147,714 347,431 384,090 89,641 968,876 Consumer 965,140 786,513 293,063 33,253 2,077,969 Loans held for sale 71,558 — — — 71,558 Investment securities, available-for-sale 942,628 1,327,486 2,081,775 445,366 4,797,255 Investment securities, held-to-maturity 66,910 255,687 541,275 251,830 1,115,702 Other interest-earning assets 11,804 — — — 11,804 Total interest-rate sensitive assets: $ 9,391,543 $ 5,217,166 $ 3,867,788 $ 835,419 $ 19,311,916 Interest-rate sensitive liabilities: Interest-bearing deposits: Interest-bearing demand $ 1,486,716 $ — $ — $ — $ 1,486,716 Savings 795,147 — — — 795,147 Money market 4,281,877 — — — 4,281,877 Customer time deposits 2,016,630 112,716 527 — 2,129,873 Trust preferred borrowings 90,834 — — — 90,834 Senior and subordinated debt 218,631 — — — 218,631 Other borrowed funds 23,102 — — — 23,102 Total interest-rate sensitive liabilities: $ 8,920,819 $ 155,874 $ 527 $ — $ 9,077,220 Excess of interest-rate sensitive assets over interest-rate liabilities (interest-rate sensitive gap) $ 470,724 $ 5,061,292 $ 3,867,261 $ 835,419 $ 10,234,696 One-year interest-rate sensitive assets/interest-rate sensitive liabilities 105.28 % One-year interest-rate sensitive gap as a percent of total assets 2.26 % (1) Loan balances exclude nonaccruing loans, deferred fees and costs (2) Includes reverse mortgage loans 60 Table of Contents Generally, during a period of rising interest rates, a positive gap would result in an increase in net interest income while a negative gap would adversely affect net interest income.
Net charge-offs were $53.8 million for the year ended December 31, 2023 compared to $16.8 million for the year-ended December 31, 2022. The increase in net charge-offs was primarily driven by our Upstart and commercial small business leasing portfolios.
The decrease in net charge-offs was primarily driven by our commercial and industrial portfolio, offset by higher charge-offs in commercial mortgages and commercial small business leases portfolios.
Net interest margin increased 40 bps to 4.11% in 2023 from 3.71% in 2022. The increase was primarily due to 24 bps increase from the balance sheet size and mix and 17 bps from the benefits of our asset-sensitive balance sheet, partially offset by 1 bp from lower purchase accounting accretion.
Net interest margin decreased 29 bps to 3.82% in 2024 from 4.11% in 2023. The decrease was primarily due to 54 bps decrease from the mix shift and growth in higher priced deposit products, partially offset by 21 bps from higher loan yields.
Year Ended December 31, 2023 vs. 2022 (Dollars in thousands) Volume Yield/Rate Net Interest Income: Loans: Commercial loans and leases (1) $ 8,940 $ 84,156 $ 93,096 Commercial mortgage loans 14,587 99,405 113,992 Residential 1,369 2,097 3,466 Consumer 24,137 27,630 51,767 Loans held for sale (1,216) 1,412 196 Mortgage-backed securities (11,185) 12,134 949 Investment securities (2) 719 1,165 1,884 Other interest-earning assets (8,192) 15,549 7,357 Favorable 29,159 243,548 272,707 Interest expense: Deposits: Interest-bearing demand (866) 20,096 19,230 Money market 1,539 107,093 108,632 Savings (205) 4,973 4,768 Customer time deposits 3,324 36,234 39,558 Brokered certificates of deposits 6,916 2,535 9,451 FHLB advances 4,654 156 4,810 Trust preferred borrowings 8 3,246 3,254 Senior and subordinated debt (946) 2,515 1,569 Other borrowed funds 13,713 5,509 19,222 Unfavorable 28,137 182,357 210,494 Net change, as reported $ 1,022 $ 61,191 $ 62,213 (1) Includes a tax-equivalent income adjustment related to commercial loans.
Year Ended December 31, 2024 vs. 2023 (Dollars in thousands) Volume Yield/Rate Net Interest Income: Loans: Commercial loans and leases (1) $ 8,358 $ 8,162 $ 16,520 Commercial mortgage loans 25,867 6,037 31,904 Residential 4,475 2,733 7,208 Consumer 12,190 5,495 17,685 Loans held for sale (259) 52 (207) Mortgage-backed securities (6,450) 919 (5,531) Investment securities (2) (9) (35) (44) Other interest-earning assets 19,411 114 19,525 Favorable 63,583 23,477 87,060 Interest expense: Deposits: Interest-bearing demand (1,838) 8,174 6,336 Money market 27,912 33,226 61,138 Savings (1,062) 2,643 1,581 Customer time deposits 14,316 25,371 39,687 Brokered deposits (8,419) (1,467) (9,886) FHLB advances (2,422) 41 (2,381) Trust preferred borrowings 15 159 174 Senior and subordinated debt (148) 23 (125) Other borrowed funds 9,421 780 10,201 Unfavorable 37,775 68,950 106,725 Net change, as reported $ 25,808 $ (45,473) $ (19,665) (1) Includes a tax-equivalent income adjustment related to commercial loans.
The increase of the ACL was primarily due to net loan growth across the CRE, Consumer, and commercial small business leasing portfolios and the higher provisions noted above. The ratio of allowance for credit losses to total loans and leases was 1.35% at December 31, 2023 and 1.17% at December 31, 2022.
The ratio of allowance for credit losses to total loans and leases was 1.48% at December 31, 2024 and 1.46% at December 31, 2023. Net charge-offs were $52.3 million for the year ended December 31, 2024 compared to $53.8 million for the year-ended December 31, 2023.
Removed
On January 1, 2023, WSFS completed the merger and brand conversion of WSFS Capital Management, LLC (West Capital) and Cypress Capital Management, LLC and renamed the combined entity Bryn Mawr Capital Management, LLC. BMCM is registered as an investment advisor with the U.S. Securities and Exchange Commission and is a wholly-owned subsidiary of WSFS.
Added
Notable Items Impacting Results of Operations, Financial Condition and Business Outlook Notable items in 2024 include the following: • Customer deposits increased $607.4 million, or 4% , driven by the Consumer and Commercial businesses, with growth in time, money market, and noninterest demand deposits. • During the fourth quarter, WSFS completed the repayment of $800.0 million of borrowings from the Bank Term Funding Program (BTFP). • Net loans and leases grew $413.0 million , or 3%, compared to December 31, 2023.
Removed
In the third quarter of 2023, BMCM expanded its business in Southern Delaware and established a new presence in Boca Raton, Florida with the acquisition of a registered investment advisory firm's business based in Rehoboth Beach, Delaware.
Added
Increases in commercial mortgage and commercial & industrial were partially offset by decreases in construction loans, partially driven by migration into commercial mortgages. • Returned $131.2 million of capital to shareholders through $95.4 million of share repurchases and $35.8 million of quarterly dividends.
Removed
Notable Items Impacting Results of Operations, Financial Condition and Business Outlook Notable items in 2023 include the following: • WSFS completed the redemption of the $30.0 million of fixed-to-floating rate subordinated notes due 2025 (the 2025 Notes) acquired from Bryn Mawr Trust.
Added
Under the Company's share repurchase program, 2,049,739 shares of common stock were repurchased at an average price of $46.55 per share . • Fee revenue grew by 18% , primarily driven by Cash Connect and Wealth Management, resulting in a fee revenue ratio of 32.5% compared to 28.5% for the prior year.
Removed
The 2025 Notes were redeemed at a price of 100%, plus accrued and unpaid interest through the date of redemption. • There was an increase in the allowance for credit losses (ACL) of $34.3 million during the year ended December 31, 2023, primarily due to net loan growth across the CRE, Consumer and commercial small business leasing portfolios as well as higher provisions on our CRE, commercial small business leasing, and Upstart portfolios and the elder care portfolio within C&I.
Added
Wealth Management fee revenue grew 12% to a record $148.1 million. • Recognized $4.3 million of nonrecurring income from our partnership with Spring EQ, comprised of the $2.3 million annual earnout and $2.0 million of post-close distributions related to the sale of our equity investment in Spring EQ that occurred in the fourth quarter of 2023. • Our Wealth Management segment completed the conversions of its trust accounting system and client portal.
Removed
See “Results of Operations - Provision/Allowance for Credit Losses (ACL)” for further information. • We realized a $9.5 million gain on our equity investment in Spring EQ, a digital home equity origination platform, which was sold during the fourth quarter. • Recorded an income tax charge of $7.1 million from our decision to surrender $65.5 million of previously acquired BOLI policies.
Added
These conversions were executed as part of our Bryn Mawr Trust integration plan. • The Bank and the Company continue to be well above well-capitalized across all measures of regulatory capital, with total common equity tier 1 capital of 13.88% and 13.81%, respectively, and total risk-based capital of 15.13% and 15.77%, respectively. • In June 2024, Moody's Investor Services reaffirmed the Company's investment-grade issuer rating of Baa2 with a stable outlook and in August 2024, Kroll Bond Rating Agency reaffirmed the Company's senior unsecured debt rating of A-.
Removed
This resulted from recent changes in the interest rate environment lowering our yields on these long-term assets and the termination of a stable value protection wrap policy.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+1 added−1 removed6 unchanged
Biggest changeChange in Interest Rate (Basis Points) December 31, 2023 December 31, 2022 % Change in Net Interest Margin (1) Economic Value of Equity (2) % Change in Net Interest Margin (1) Economic Value of Equity (2) 300 15.7% 22.44% 18.5% 27.54% 200 10.4% 21.46% 12.3% 26.44% 100 5.2% 20.41% 6.1% 25.22% 50 2.6% 19.85% 3.1% 24.56% 25 1.3% 19.56% 1.5% 24.22% — —% 19.26% —% 23.87% (25) (1.3)% 18.96% (1.6)% 23.50% (50) (2.6)% 18.64% (3.3)% 23.10% (100) (4.9)% 18.00% (6.8)% 22.20% (200) (9.6)% 16.50% (14.0)% 20.20% (300) (14.2)% 14.80% (21.2)% 17.90% (1) The percentage difference between net interest income in a stable interest rate environment and net interest margin as projected under the various rate change environments.
Biggest changeChange in Interest Rate (Basis Points) December 31, 2024 December 31, 2023 % Change in Net Interest Margin (1) Economic Value of Equity (2) % Change in Net Interest Margin (1) Economic Value of Equity (2) 300 14.9% 18.60% 15.7% 22.44% 200 9.8% 19.15% 10.4% 21.46% 100 4.8% 19.82% 5.2% 20.41% 50 2.3% 20.05% 2.6% 19.85% 25 1.1% 20.17% 1.3% 19.56% — —% 20.31% —% 19.26% (25) (0.9)% 20.32% (1.3)% 18.96% (50) (1.7)% 20.33% (2.6)% 18.64% (100) (3.2)% 20.30% (4.9)% 18.00% (200) (6.1)% 19.70% (9.6)% 16.50% (300) (9.0)% 18.30% (14.2)% 14.80% (1) The percentage difference between net interest income in a stable interest rate environment and net interest margin as projected under the various rate change environments.
The economic value of the equity ratio is defined as the economic value of the estimated cash flows from assets and liabilities as a percentage of economic value of cash flows from total assets.
The economic value of the equity ratio is defined as the net economic value of the estimated cash flows from assets and liabilities as a percentage of economic value of cash flows from total assets.
The following table shows the estimated impact of immediate changes in interest rates on our net interest margin and economic value of equity at the specified levels at December 31, 2023 and December 31, 2022.
The following table shows the estimated impact of immediate changes in interest rates on our net interest margin and economic value of equity at the specified levels at December 31, 2024 and December 31, 2023.
We regularly review our interest rate sensitivity and adjust the sensitivity within acceptable tolerance ranges. At December 31, 2023 interest-bearing liabilities that mature or reprice within one year exceeded interest-earning assets (interest-sensitive gap) by $29.4 million.
We regularly review our interest rate sensitivity and adjust the sensitivity within acceptable tolerance ranges. At December 31, 2024, interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year (interest-sensitive gap) by $470.7 million.
These fluctuations are difficult to model and estimate. 64
These fluctuations are difficult to model and estimate. 63
Our interest-sensitive assets as a percentage of interest-sensitive liabilities within the one-year window was 99.67% at December 31, 2023 compared with 116.93% at December 31, 2022. In addition, the one-year interest-sensitive gap as a percentage of total assets was (0.14)% at December 31, 2023 compared to 6.29% at December 31, 2022.
Our interest-sensitive assets as a percentage of interest-sensitive liabilities within the one-year window was 105.28% at December 31, 2024 compared with 99.67% at December 31, 2023. In addition, the one-year interest-sensitive gap as a percentage of total assets was 2.26% at December 31, 2024 compared to (0.14)% at December 31, 2023.
Removed
In response to the economic and financial effects of COVID-19, the FOMC reduced interest rates through 2020 and 2021 and instituted quantitative easing measures as well as domestic and global capital market support programs. The FOMC raised the federal funds target rate a total of 525 basis points between 2022 and 2023.
Added
The FOMC lowered the federal funds target rate three times in 2024 for a total of 100 basis points and increased the target rate four times in 2023 for a total of 100 basis points, and has suggested it may continue lowering interest rates in 2025.

Other WSFS 10-K year-over-year comparisons