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What changed in WSFS FINANCIAL CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of WSFS FINANCIAL CORP's 2024 and 2025 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 2025 report.

+336 added−339 removedSource: 10-K (2026-03-02) vs 10-K (2025-02-28)

Top changes in WSFS FINANCIAL CORP's 2025 10-K

336 paragraphs added · 339 removed · 280 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

140 edited+15 added−31 removed174 unchanged
Biggest changeThe number of owned or branded ATMs was 567 as of December 31, 2024. • Continuing strong growth in commercial and consumer lending by: ◦ Offering local decision-making by seasoned banking professionals with significant local market experience. ◦ Executing our community banking model that combines stellar experiences with the banking products and services our business Clients demand. ◦ Continuing to grow our NewLane Finance ® leasing business. ◦ Adding seasoned lending professionals that have helped us win clients in our Delaware, southeastern Pennsylvania and southern New Jersey markets. ◦ Continuing to meet the needs of our community through our WSFS Home Lending division. • Continuing to grow deposits by: ◦ Providing a stellar experience to our Clients and offering products through our branch network, increasing our market presence in Delaware, southeastern Pennsylvania and southern New Jersey. ◦ Further expanding our Commercial and Small Business Client relationships with deposit and treasury management products. ◦ Expanding services within WSFS Institutional Services ® and increasing relationship opportunities within Private Wealth Management. ◦ Finding creative ways to build deposit market share such as targeted marketing programs. 9 • Enhancing our capabilities to serve the needs of our Clients through our Capital Markets division by: ◦ Making strategic investments to build our Interest Rate Derivatives, Foreign Exchange, and Trade Finance lines of business. ◦ Employing products and services that enable Clients to better manage their own market risk exposures, providing additional sources of non-interest fee revenue for the Company. ◦ Making continued investments in a team of highly experienced markets personnel and improved technology solutions. ◦ Delivering the capabilities of a globally capable financial institution with a locally headquartered team that is fully embedded in the WSFS culture. • Seeking targeted, strategic opportunities in our non-banking businesses while we focus on optimizing our recent franchise investments. • Continuing investment in our franchise to increase adoption and usage of digital channels aligned with our strategy by ◦ Enabling business outcomes through optimizing and leveraging the full capabilities of current and future investments in our franchise to increase Associate efficiencies and improve the overall Client experience. ◦ Building out Salesforce to support our client relationship management with focus on change management, adoption and governance ◦ Increased control, transparency, automation & efficiencies through platform integrations, enhancements and bot implementations ◦ Advancing how we use data, the deployment of artificial intelligence, and predictive modeling to create operational efficiencies and redesign business models ◦ Continue to build upon people, processes and controls within a focus on information security and fraud prevention ◦ Leveraging the newly completed conversion of our trust accounting system and client portal in our Wealth Management business to drive efficiency and growth.
Biggest changeThe number of owned or branded ATMs was 488 as of December 31, 2025. ◦ Enhancing our capabilities to serve the needs of our Clients through our Capital Markets division by making strategic investments to build our Interest Rate Derivatives, Foreign Exchange, and Trade Finance lines of business, employing products and services that enable Clients to better manage their own market risk exposures, and investing in a team of highly experienced markets personnel and improved technology solutions to deliver the capabilities of a globally capable financial institution with a locally headquartered team that is fully embedded in the WSFS culture. • Continuing strong growth in commercial and consumer lending by: ◦ Offering local decision-making by seasoned banking professionals with significant local market experience. ◦ Executing our community banking model that combines stellar experiences with the banking products and services our business Clients demand. ◦ Continuing to grow our NewLane Finance ® leasing business. ◦ Adding seasoned lending professionals that have helped us win clients in our Delaware, southeastern Pennsylvania and southern New Jersey markets. ◦ Continuing to meet the needs of our community through our WSFS Home Lending division. • Continuing to grow deposits by: ◦ Providing a stellar experience to our Clients and offering products through our branch network, increasing our market presence in Delaware, southeastern Pennsylvania and southern New Jersey. ◦ Further expanding our Commercial and Small Business Client relationships with deposit and treasury management products. ◦ Continuing to grow WSFS Institutional Services ® and increasing relationship opportunities within Private Wealth Management. ◦ Finding creative ways to build deposit market share such as targeted marketing programs. • Seeking targeted, strategic opportunities in our businesses while we focus on optimizing our recent franchise investments. • Continuing investment in our franchise to increase adoption and usage of digital channels aligned with our strategy by: ◦ Enabling business outcomes through optimizing and leveraging the full capabilities of current and future investments in our franchise to increase Associate efficiencies and improve the overall Client experience. ◦ Building out Salesforce to support our client relationship management with focus on change management, adoption and governance. ◦ Increased control, transparency, automation & efficiencies through platform integrations, enhancements and bot implementations. ◦ Advancing how we use data, the deployment of artificial intelligence and predictive modeling to create operational efficiencies and redesign business models. 8 ◦ Continue to build upon people, processes and controls within a focus on information security and fraud prevention. ◦ Leveraging our trust accounting system and client portal in our Wealth and Trust business to drive efficiency and growth.
Since 1832, WSFS has been a service-oriented, locally managed community banking institution serving Greater Philadelphia and Delaware region families and businesses. We strive to meet our Clients’ evolving banking needs and to exceed their expectations every day. Values Our values define our culture.
Since 1832, WSFS has been a service-oriented, locally managed community banking institution serving Greater Philadelphia and Delaware region families and businesses. We strive to meet our Clients’ evolving needs and to exceed their expectations every day. Values Our values define our culture.
Our philosophy and pre-purchase due diligence have allowed us to control credit risk in our investment portfolio. • Asset/liability management strategies - Our investment portfolio is consistent with the approved risk appetite of our Board of Directors. We work to optimize duration, yield and liquidity and to minimize credit risk within policy guidelines.
Our philosophy and pre-purchase due diligence have allowed us to control credit risk in our investment portfolio. • Asset/liability management strategies - Our investment portfolio is consistent with the approved risk appetite of our Board of Directors (the Board). We work to optimize duration, yield and liquidity and to minimize credit risk within policy guidelines.
Tier 2 capital includes subordinated debt with a minimum original maturity of five years, related surplus, certain minority interests in in the equity accounts of fully consolidated subsidiaries not included in Tier 1 capital (subject to certain limitations), and limited amounts of a bank’s allowance for credit losses (ACL).
Tier 2 capital includes subordinated debt with a minimum original maturity of five years, related surplus, certain minority interests in the equity accounts of fully consolidated subsidiaries not included in Tier 1 capital (subject to certain limitations), and limited amounts of a bank’s allowance for credit losses (ACL).
A Federal Reserve supervisory letter setting forth expectations for the payment of dividends by holding companies states that a holding company’s board of directors considering the payment of dividends should consider, among other things, the following factors: (i) overall asset quality, potential need to increase reserves and write down assets, and concentrations of credit; (ii) the potential for unanticipated losses and declines in asset values; (iii) implicit and explicit liquidity and credit commitments, including off-balance sheet and contingent liabilities; (iv) the quality and level of current and prospective earnings, including earnings capacity under a number of plausible economic scenarios; (v) current and prospective cash flow and liquidity; (vi) the ability to serve as an ongoing source of financial and managerial strength to depository institution subsidiaries insured by the FDIC, including the extent of double leverage and the condition of subsidiary depository institutions; (vii) other risks that affect the holding company’s financial condition and are not fully captured in regulatory capital calculations; (viii) the level, composition, and quality of capital; and (ix) the ability to raise additional equity capital in prevailing market and economic conditions (the Dividend Factors).
A Federal Reserve supervisory letter setting forth expectations for the payment of dividends by holding companies states that a holding company’s Board considering the payment of dividends should consider, among other things, the following factors: (i) overall asset quality, potential need to increase reserves and write down assets, and concentrations of credit; (ii) the potential for unanticipated losses and declines in asset values; (iii) implicit and explicit liquidity and credit commitments, including off-balance sheet and contingent liabilities; (iv) the quality and level of current and prospective earnings, including earnings capacity under a number of plausible economic scenarios; (v) current and prospective cash flow and liquidity; (vi) the ability to serve as an ongoing source of financial and managerial strength to depository institution subsidiaries insured by the FDIC, including the extent of double leverage and the condition of subsidiary depository institutions; (vii) other risks that affect the holding company’s financial condition and are not fully captured in regulatory capital calculations; (viii) the level, composition, and quality of capital; and (ix) the ability to raise additional equity capital in prevailing market and economic conditions (the Dividend Factors).
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.
Among these are: • Retained earnings • Commercial, consumer, wealth and trust deposits • Loan repayments • Investment securities • Federal funds purchased • Federal Home Loan Bank (FHLB) • Federal Reserve Discount Window • Brokered deposits • Trust preferred borrowings • Senior/ 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.
Loan fee income was mainly due to fee accretion on new and existing loans (including the acceleration of the accretion on loans that paid early), loan growth and prepayment penalties. LOAN AND LEASE LOSS EXPERIENCE, PROBLEM ASSETS AND DELINQUENCIES Our results of operations can be negatively impacted by nonperforming assets, which include nonaccruing loans and other real estate owned.
Loan fee income was mainly due to fee accretion on new and existing loans (including the acceleration of the accretion on loans that paid early) and prepayment penalties. LOAN AND LEASE LOSS EXPERIENCE, PROBLEM ASSETS AND DELINQUENCIES Our results of operations can be negatively impacted by nonperforming assets, which include nonaccruing loans and other real estate owned.
In addition, our Management Risk Committee (MRC), which meets each quarter, provides management governance and oversight of the Company's risk management program on an enterprise-wide basis, and includes members of the Company's executive and senior management teams. Market Demographics Our primary market is the Greater Philadelphia and Delaware region, including southeastern Pennsylvania and southern New Jersey.
In addition, our Management Risk Committee (MRC), which meets each quarter, provides management governance and oversight of the Company's risk management program on an enterprise-wide basis, and includes members of the Company's executive and senior management teams. 9 Market Demographics Our primary market is the Greater Philadelphia and Delaware region, including southeastern Pennsylvania and southern New Jersey.
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.
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. 26 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.
In addition, a holding company’s board of directors should strongly consider, after careful analysis of the Dividend Factors, reducing, deferring, or eliminating dividends when the quantity and quality of the holding company’s earnings have declined or the holding company is experiencing other financial problems, or when the macroeconomic outlook for the holding company’s primary profit centers has deteriorated.
In addition, a holding company’s Board should strongly consider, after careful analysis of the Dividend Factors, reducing, deferring, or eliminating dividends when the quantity and quality of the holding company’s earnings have declined or the holding company is experiencing other financial problems, or when the macroeconomic outlook for the holding company’s primary profit centers has deteriorated.
For a reconciliation of tangible common equity and tangible assets to net income and total assets, the most comparable measures in accordance with U.S. generally accepted accounting principles (GAAP), refer to “Reconciliation of non-GAAP financial measures included in Item 1” located at the end of this section.
For a reconciliation of tangible common equity and tangible assets to net income and total assets, the most directly comparable measures in accordance with U.S. generally accepted accounting principles (GAAP), refer to “Reconciliation of non-GAAP financial measures included in Item 1” located at the end of this section.
Cash Connect ® , a premier provider of ATM vault cash, smart safe and other cash logistics services in the U.S., serves as an innovation engine by driving enhancements such as mobile phone cash withdrawals from WSFS ATMs, and has developed best-in-class cash logistics and reconciliation software.
Cash Connect ® , a premier provider of ATM vault cash, smart safe and other cash logistics services in the U.S., serves as an innovation engine by driving enhancements such as mobile phone cash withdrawals from WSFS Branch ATMs, and has developed best-in-class cash logistics and reconciliation software.
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.
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 quality to meet the intended risk profile. Disciplined Capital Management We understand that our capital (or stockholders’ equity) belongs to our stockholders.
Principal requirements for an insured depository institution include (i) establishment of an anti-money laundering program that includes training and audit components; (ii) establishment of a "know your customer" program involving due diligence to confirm the identity of persons seeking to open accounts and to deny accounts to those persons unable to demonstrate their identities; (iii) the filing of currency transaction reports for deposits and withdrawals of large amounts of currency; (iv) additional precautions for accounts sought and managed for non-U.S. persons; (v) verification and certification of money laundering risk with respect to private banking and foreign correspondent banking relationships; and (vi) the filing of suspicious activity reports for suspicious transactions.
Principal requirements for an insured depository institution include (i) establishment of an anti-money laundering program that includes training and audit components; (ii) establishment of a "know your client" program involving due diligence to confirm the identity of persons seeking to open accounts and to deny accounts to those persons unable to demonstrate their identities; (iii) the filing of currency transaction reports for deposits and withdrawals of large amounts of currency; (iv) additional precautions for accounts sought and managed for non-U.S. persons; (v) verification and certification of money laundering risk with respect to private banking and foreign correspondent banking relationships; and (vi) the filing of suspicious activity reports for suspicious transactions.
(2) Includes secured and unsecured installment loans, personal and other loans. Loan Originations, Purchases and Sales We engage in traditional lending activities primarily in Delaware, southeastern Pennsylvania, southern New Jersey, and contiguous areas of neighboring states.
(2) Includes secured and unsecured installment loans, personal and other loans. Loan Originations, Purchases and Sales We engage in traditional lending activities primarily in Delaware, southeastern Pennsylvania, central and southern New Jersey, and contiguous areas of neighboring states.
It is particularly important for a holding company’s board of directors to ensure that the level of a prospective dividend is prudent relative to the organization’s financial position and is not based on overly optimistic earnings scenarios.
It is particularly important for a holding company’s Board to ensure that the level of a prospective dividend is prudent relative to the organization’s financial position and is not based on overly optimistic earnings scenarios.
(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.
(2) Includes hybrid adjustable-rate mortgages. 11 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.
The FDIC adopted a restoration plan in September 2020, which it amended in June 2022, to restore the DIF reserve ratio to at least 1.35% by September 30, 2028. 27 On October 18, 2022 the FDIC adopted a final rule to increase initial base deposit insurance assessment rates for insured depository institutions by 2 basis points, beginning with the first quarterly assessment period of 2023.
The FDIC adopted a restoration plan in September 2020, which it amended in June 2022, to restore the DIF reserve ratio to at least 1.35% by September 30, 2028. 24 On October 18, 2022 the FDIC adopted a final rule to increase initial base deposit insurance assessment rates for insured depository institutions by 2 basis points, beginning with the first quarterly assessment period of 2023.
The law authorizes the Federal Reserve to grant additional exceptions by regulation or order. 25 Regulatory Capital Requirements The regulatory capital rules require savings associations and their holding companies to maintain minimum levels of common equity Tier 1 capital equal to at least 4.5% of risk-weighted assets, Tier 1 capital equal to at least 6% of risk-weighted assets, total capital (the aggregate of Tier 1 and Tier 2 capital) equal to at least 8% of risk-weighted assets, and a leverage ratio of Tier 1 capital to average total consolidated assets equal to at least 4%.
The law authorizes the Federal Reserve to grant additional exceptions by regulation or order. 22 Regulatory Capital Requirements The regulatory capital rules require savings associations and their holding companies to maintain minimum levels of common equity Tier 1 capital equal to at least 4.5% of risk-weighted assets, Tier 1 capital equal to at least 6% of risk-weighted assets, total capital (the aggregate of Tier 1 and Tier 2 capital) equal to at least 8% of risk-weighted assets, and a leverage ratio of Tier 1 capital to average total consolidated assets equal to at least 4%.
Any non-compliance is likely to result in an enforcement action, often with substantial monetary penalties and reputation damage. A savings association or bank that is required to strengthen its compliance program often must put on hold any initiatives that require banking agency approval. The Office of Foreign Assets Control (OFAC), an office within the U.S.
Non-compliance may result in an enforcement action, often with substantial monetary penalties and reputation damage. A savings association or bank that is required to strengthen its compliance program often must put on hold any initiatives that require banking agency approval. The Office of Foreign Assets Control (OFAC), an office within the U.S.
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.
These relationships generally may range in amounts of up to $100.0 million with an average loan balance in the portfolio of $1.5 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.
We believe the presentation of these non-GAAP financial measures, when used in conjunction with GAAP financial measures, is a useful financial analysis tool that can assist investors in assessing the company’s operating performance and underlying prospects. This analysis should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.
We believe the presentation of this non-GAAP financial measure, when used in conjunction with GAAP financial measures, is a useful financial analysis tool that can assist investors in assessing the company’s operating performance and underlying prospects. This analysis should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.
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.
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, 2025, the Bank met all of the prerequisites for well-capitalized status.
The impact of such regulations on our business is discussed further below, as well as in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors – Risks Relating to Regulation." 21 Regulation of the Company General The Company is a registered savings and loan holding company and is subject to the regulation, examination, supervision and reporting requirements of the Federal Reserve.
The impact of such regulations on our business is discussed further below, as well as in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors – Risks Relating to Regulation." 19 Regulation of the Company General The Company is a registered savings and loan holding company and is subject to the regulation, examination, supervision and reporting requirements of the Federal Reserve.
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.
Federal law limits the Bank’s extensions of credit to any one borrower to 15% of our unimpaired capital (approximately $366.2 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.
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.
For additional information regarding FHLB stock, see Note 12 to the Consolidated Financial Statements. 16 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.
Adjustments are generally based upon a margin (as of December 31, 2024, 2.75% for the loans indexed by the Standard Overnight Finance Rate) over the weekly average yield on U.S. Treasury securities adjusted to a constant maturity, as published by the Board of Governors of the Federal Reserve System (the Federal Reserve).
Adjustments are generally based upon a margin (as of December 31, 2025, 2.75% for the loans indexed by the Standard Overnight Finance Rate) over the weekly average yield on U.S. Treasury securities adjusted to a constant maturity, as published by the Board of Governors of the Federal Reserve System (the Federal Reserve).
In September 2024, the OCC finalized a new Policy Statement Regarding Statutory Factors Under the Bank Merger Act (Policy Statement), which outlines factors that the OCC will considering when evaluating a proposed bank merger transaction, including factors related to financial stability, the financial and managerial resources and future prospects of the existing and proposed institutions, and the convenience and needs of the community.
In September 2024, the OCC finalized a new Policy Statement Regarding Statutory Factors Under the Bank Merger Act (Policy Statement), which outlines factors that the OCC will consider when evaluating a proposed bank merger transaction, including factors related to financial stability, the financial and managerial resources and future prospects of the existing and proposed institutions, and the convenience and needs of the community.
Noncompliance with the Investment Advisers Act or other federal and state securities laws and regulations could result in investigations, sanctions, disgorgement, fines and reputation damage. 24 Regulation of WSFS Bank General As a federally chartered savings association the Bank is subject to regulation, examination and supervision by the OCC.
Noncompliance with the Investment Advisers Act or other federal and state securities laws and regulations could result in investigations, sanctions, disgorgement, fines and reputation damage. 21 Regulation of WSFS Bank General As a federally chartered savings association the Bank is subject to regulation, examination and supervision by the OCC.
Our Diversified Business Diversified Revenue Streams With over 25 discrete lines of business and products, our diversified revenue model is a key differentiator for the Company. We focus on relationship-based lending which provides the potential for higher profit margins, resilient deposits and strong consumer relationships.
Our Diversified Business Diversified Revenue Streams With over 20 discrete lines of business and products, our diversified revenue model is a key differentiator for the Company. We focus on relationship-based lending which provides the potential for higher profit margins, resilient deposits and strong consumer relationships.
The Bank’s deposits are insured by the FDIC to the fullest extent allowed by law. As an insurer of bank deposits, the FDIC promulgates regulations, requires the filing of reports, and has authority to examine the operations of all institutions to which it provides deposit insurance for insurance purposes.
The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC) to the fullest extent allowed by law. As an insurer of bank deposits, the FDIC promulgates regulations, requires the filing of reports, and has authority to examine the operations of all institutions to which it provides deposit insurance for insurance purposes.
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.
As of December 31, 2025, 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.
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.
At December 31, 2025 all regulatory capital levels for the Bank and the Company 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.
For segment financial information for the years ended December 31, 2024, 2023 and 2022, see Note 21 to the Consolidated Financial Statements in this report. 5 WSFS DIFFERENTIATION STRATEGY Through our unique competitive position as the largest locally headquartered bank and trust company in a top financial market with a full suite of national and international banking capabilities, diversified and resilient fee revenue (noninterest income), and high touch client service, WSFS sets itself apart from other banks in our market and the industry.
For segment financial information for the years ended December 31, 2025, 2024 and 2023, see Note 21 to the Consolidated Financial Statements in this report. 4 WSFS DIFFERENTIATION STRATEGY Through our unique competitive position as the largest locally headquartered bank and trust company in a top financial market with a full suite of national and international capabilities, diversified and resilient fee revenue (noninterest income), and high touch client service, WSFS sets itself apart from other banks in our market and the industry.
We significantly invest in our culture and engagement as they enable and enhance all that we do at WSFS, including attracting, inspiring and retaining our Associates, delivering stellar client experiences, and strengthening the well-being of our communities as evidenced by our Vision: "A day when we all thrive." At December 31, 2024, we had 2,309 full-time equivalent Associates.
We significantly invest in our culture and engagement as they enable and enhance all that we do at WSFS, including attracting, inspiring and retaining our Associates, delivering stellar client experiences, and strengthening the well-being of our communities as evidenced by our Vision: "A day when we all thrive." At December 31, 2025, we had 2,335 full-time equivalent Associates.
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.
Census Bureau - Quick Facts 2020 - 2024 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.” 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.
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%.
At December 31, 2025, no borrower had collective (relationship) total extensions of credit exceeding either the legal lending limits or our internal limit. 12 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%.
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.
In addition, our diversified fee revenue businesses, which include Wealth Management, Trust, Cash Connect ® , banking fees, and Capital Markets, account for 31.8% 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.
Our Associates are not represented by a collective bargaining unit and we believe our relationship with our Associates is strong. During 2024, WSFS captured the voice of our Associates and our Clients through multiple channels to measure our Associate and Client engagement. • Our Associate engagement survey results placed WSFS in the 89th percentile of Gallup's global overall company-level database.
Our Associates are not represented by a collective bargaining unit and we believe our relationship with our Associates is strong. During 2025, WSFS captured the voice of our Associates and our Clients through multiple channels to measure our Associate and Client engagement. • Our Associate engagement survey results placed WSFS in the 84th percentile of Gallup's global overall company-level database.
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.
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 Risk and Audit Committees of the Board. 15 SOURCES OF FUNDS We manage our liquidity risk and funding needs through our Treasury function and our Asset/Liability Committee.
The average size of a loan in the commercial mortgage portfolio is $1.2 million and only 39 loans are greater than $15.0 million, with no loans greater than $35.0 million. We offer commercial construction loans to developers.
The average size of a loan in the commercial mortgage portfolio is $1.3 million and only 35 loans are greater than $15.0 million, with no loans greater than $35.0 million. We offer commercial construction loans to developers.
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.
The capital ratios for the Bank and the Company, as of December 31, 2025, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well-capitalized.” 23 Prompt Corrective Action All banks and savings associations are subject to a “prompt corrective action” regime.
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.
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 2025, we originated $2.1 billion of commercial and commercial mortgage loan exposures compared to $2.0 billion in 2024.
At December 31, 2024, no relationships exceeded the $100.0 million “House Limit.” Residential and Consumer: During 2024, we originated $433.9 million of residential loans, an increase compared to $343.7 million in 2023. From time to time, we have purchased whole loans and loan participations in accordance with our ongoing asset and liability management objectives.
At December 31, 2025, no relationships exceeded the $100.0 million “House Limit.” Residential and Consumer: During 2025, we originated $541.9 million of residential loans, an increase compared to $433.9 million in 2024. From time to time, we have purchased whole loans and loan participations in accordance with our ongoing asset and liability management objectives.
Dividends The principal sources of the Company’s cash are debt issuances and dividends from the Bank, supplemented by dividends from its other operating subsidiaries (including Bryn Mawr Capital Management, LLC, Powdermill ® , and The Bryn Mawr Trust Company of Delaware). Our earnings and activities are affected by federal, state and local laws and regulations.
Dividends The principal sources of the Company’s cash are debt issuances and dividends from the Bank, supplemented by dividends from its other operating subsidiaries (including The Bryn Mawr Trust Company of Delaware). Our earnings and activities are affected by federal, state and local laws and regulations.
These loans do not close in our name and we process them as a reverse mortgage broker. During 2024 and 2023, we originated $6.6 million and $3.3 million in reverse mortgages, respectively.
These loans do not close in our name and we process them as a reverse mortgage broker. During 2025 and 2024, we originated $8.3 million and $6.6 million in reverse mortgages, 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.
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 $202.1 million and $45.5 million in 2025 and 2024, 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.
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 $10.9 million, $7.9 million and $8.8 million during 2025, 2024 and 2023 respectively.
Beyond having diverse talent and Clients, 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. We are committed to enhancing workforce diversity, creating developmental opportunities and continually improving hiring practices to retain our status as an employer of choice.
Beyond having diverse talent and Clients, WSFS works to create a truly inclusive environment with opportunities to find commonalities, build relationships and provide support to our Communities from different backgrounds and cultures. We are committed to enhancing belonging and inclusion at work, creating developmental opportunities and continually improving hiring practices to retain our status as an employer of choice.
We believe these measures provide investors with useful information for understanding the Company’s performance when analyzing changes in our underlying business between reporting periods and provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making.
We believe this measure provides investors with useful information for understanding the Company’s performance when analyzing changes in our underlying business between reporting periods and provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making.
In general, loans are sold without recourse except for the repurchase right arising from standard contract provisions covering violation of representations and warranties or, under certain investor contracts, a default by the borrower on the first payment.
In general, loans that we choose to sell are sold without recourse except for the repurchase right arising from standard contract provisions covering violation of representations and warranties or, under certain investor contracts, a default by the borrower on the first payment.
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.
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 $3.9 billion at December 31, 2025.
Our commercial small business leases generated through NewLane Finance ® , finance critical equipment through advanced technologies, a client-centric approach and transparent business lending practices. The commercial small business leases portfolio was $647.5 million, or 5% of total loans, at December 31, 2024.
Our commercial small business leases generated through NewLane Finance ® , finance critical equipment through advanced technologies, a client-centric approach and transparent business lending practices. The commercial small business leases portfolio was $603.3 million, or 5%, of total loans and leases, at December 31, 2025.
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.
Among these powers is the authority to proscribe the payment of dividends by bank and savings and loan holding companies. Bryn Mawr Trust Advisors, LLC Bryn Mawr Trust Advisors, 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.
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.
WSFS achieved an overall NPS of 76.0 in 2025, which placed WSFS in the top quartile of Medallia's global database of financial services companies for relationship surveys. 5 By fostering a culture of engaged and empowered Associates, we believe we have become the employer and bank of choice in our market.
At December 31, 2024, the Company's common equity to assets ratio was 12.44% and its tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, was 8.08%.
At December 31, 2025, the Company's common equity to assets ratio was 12.85%, compared to 12.44% at December 31, 2024, and its tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, was 8.69%, compared to 8.08% at December 31, 2024.
In total, these product lines represented approximately 37% of total consumer loans. Typically, maximum loan to value (LTV) limits are 90% for primary residences and 70% for all other properties. At December 31, 2024, we had $1.6 billion in total commitments for home equity lines of credit.
In total, these product lines represented approximately 47% of total consumer loans. Typically, maximum loan to value (LTV) limits are 90% for primary residences and 70% for all other properties. At December 31, 2025, we had $1.8 billion in total commitments for home equity lines of credit.
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.
At December 31, 2025, the construction portfolio included $163.6 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.
The penalties can range up to $25,000 for certain reckless violations and up to $1.0 million for certain knowing violations for each day such a violation continues. 22 Source of Strength Confirming a longstanding policy of the Federal Reserve, the Dodd-Frank Act requires the Company to act as a source of financial strength to the Bank in the event of financial distress at the Bank.
The statutory penalties can range up to $25,000 for certain reckless violations and up to $1.0 million, adjusted for inflation by regulation, for certain knowing violations for each day such a violation continues. 20 Source of Strength Confirming a longstanding policy of the Federal Reserve, the Dodd-Frank Act requires the Company to act as a source of financial strength to the Bank in the event of financial distress at the Bank.
Our Associate engagement ratio was 10.5:1, which means there were 10.5 engaged Associates for every actively disengaged Associate. This compares to a U.S. working population ratio of 1.7:1. • Our culture of inclusion index of 4.34 placed WSFS in the top quartile of Gallup's global overall workgroup-level database.
Our Associate engagement ratio was 8.4:1, which means there were 8.4 engaged Associates for every actively disengaged Associate. This compares to a U.S. working population ratio of 1.9:1. • Our culture of inclusion index of 4.27 placed WSFS in the top quartile of Gallup's global overall workgroup-level database.
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.
Generally, this portfolio is diversified by property type, with no type representing more than 31% 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 $1.2 billion, $1.1 billion, and $0.7 billion at December 31, 2025, respectively.
These construction loans are short-term, usually not exceeding three years, with interest rates generally indexed to our WSFS prime rate, the “Wall Street” prime rate or the Secured Overnight Financing Rate (SOFR), and are adjusted periodically as these indices change.
These construction loans are short-term, usually not exceeding three years (unless they have a term-out option), with interest rates generally indexed to our WSFS prime rate, the “Wall Street” prime rate or the Secured Overnight Financing Rate (SOFR), and are adjusted periodically as these indices change.
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.
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 $376.8 million and $163.5 million in 2025 and 2024, respectively.
Among other things, the rules require home mortgage lenders to: (i) develop and implement procedures to ensure compliance with a “reasonable ability to repay” test and identify whether a loan meets a new definition for a “qualified mortgage,” in which case a rebuttable presumption exists that the creditor extending the loan has satisfied the reasonable ability to repay test; (ii) implement new or revised disclosures, policies and procedures for originating and servicing mortgages including, but not limited to, pre-loan counseling, early intervention with delinquent borrowers and specific loss mitigation procedures for loans secured by a borrower’s principal residence; (iii) comply with additional restrictions on mortgage loan originator hiring and compensation; (iv) comply with new disclosure requirements and standards for appraisals and certain financial products; and (v) maintain escrow accounts for higher-priced mortgage loans for a longer period of time.
Among other things, the rules require home mortgage lenders to: (i) develop and implement procedures to ensure compliance with a “reasonable ability to repay” test, under which there exists a rebuttable presumption that defined "qualified mortgages" satisfy the reasonable ability to repay test; (ii) implement new or revised disclosures, policies and procedures for originating and servicing mortgages including, but not limited to, pre-loan counseling, early intervention with delinquent borrowers and specific loss mitigation procedures for loans secured by a borrower’s principal residence; (iii) comply with additional restrictions on mortgage loan originator hiring and compensation; (iv) comply with new disclosure requirements and standards for appraisals and certain financial products; and (v) maintain escrow accounts for higher-priced mortgage loans for a longer period of time.
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 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 $10.2 million as of December 31, 2025 and with $11.8 million at December 31, 2024.
(3) Excludes $49.7 million and $29.3 million of commercial and industrial loans and residential loans held for sale at December 31, 2024 and 2023, respectively. 12 The following table shows the remaining contractual maturity and rate sensitivity of the loan portfolio by loan category as of December 31, 2024.
(3) Excludes $61.6 million and $49.7 million of commercial and industrial loans and residential loans held for sale at December 31, 2025 and 2024, respectively. 10 The following table shows the remaining contractual maturity and rate sensitivity of the loan portfolio by loan category as of December 31, 2025.
We received $1.5 million in dividends from the FHLB during 2024 compared to $1.1 million during 2023.
We received $1.8 million in dividends from the FHLB during 2025 compared to $1.5 million during 2024.
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.
The Wealth and Trust segment provides a broad array of planning and advisory 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, 2025, WSFS Bank's banking business had a net loan and lease portfolio of $12.6 billion.
An increase in the amount of brokered deposits on an insured depository institution’s balance sheet could, among other consequences, increase the institution’s deposit insurance assessment costs. Reserves Pursuant to regulations of the Federal Reserve, a savings association must maintain reserves against its transaction accounts.
An increase in the amount of brokered deposits on an insured depository institution’s balance sheet could, among other consequences, increase the institution’s deposit insurance assessment costs. On March 3, 2025, the FDIC withdrew this proposed rule. Reserves Pursuant to regulations of the Federal Reserve, a savings association must maintain reserves against its transaction accounts.
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.
There were no purchases in 2025 or 2024 related to our Community Reinvestment Act (CRA) obligations. We sell a portion of newly originated mortgage loans in the secondary market to generate fee revenue and to manage our overall balance sheet mix. Residential loan sales totaled $367.1 million in 2025 and $303.7 million in 2024.
As a federal savings bank, however, we may originate, purchase and sell loans throughout the U.S and do so when such purchases are deemed appropriate. We originate fixed-rate and adjustable-rate residential loans through our banking offices and WSFS Mortgage ® , our mortgage banking company.
As a federal savings bank, however, we may originate, purchase and sell loans throughout the U.S and do so when such purchases are deemed appropriate. We originate fixed-rate and adjustable-rate residential loans through our banking offices and WSFS Mortgage ® , which is part of our Home Lending division.
We hold certain mortgage loans for investment, consistent with our current asset/liability management strategies and our relationship-based lending philosophy. 16 At December 31, 2024, we serviced $215.7 million of residential first mortgage loans and reverse mortgage loans for others, compared to $248.3 million at December 31, 2023.
We hold certain mortgage loans for investment, consistent with our current asset/liability management strategies and our relationship-based lending philosophy. 14 At December 31, 2025, we serviced $186.1 million of residential first mortgage loans and reverse mortgage loans for others, compared to $215.7 million at December 31, 2024.
Industry organizations have challenged the final rule in court, and on March 29, 2024, the United States District Court for the Northern District of Texas granted an injunction and stay of the final rule. The final outcome of such challenge is uncertain. 30
Industry organizations have challenged the final rule in court, and on March 29, 2024, the United States District Court for the Northern District of Texas granted an injunction and stay of the final rule.
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.
As of December 31, 2025, we serviced our Clients primarily from our 113 offices located in Pennsylvania (58), Delaware (37), New Jersey (14), Florida (2), Nevada (1) and Virginia (1), our ATM network, our website at www.wsfsbank.com and our mobile app.
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. A fixture in the community, WSFS Bank has been in operation for more than 192 years.
With $21.3 billion in assets and $97.4 billion in assets under management (AUM) and assets under administration (AUA) at December 31, 2025, WSFS Bank is the oldest and largest locally-managed bank and trust company headquartered in the Greater Philadelphia and Delaware region. A fixture in the community, WSFS Bank has been in operation for more than 193 years.
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.
At December 31, 2025, our commercial and industrial and owner-occupied commercial loan portfolios were $4.7 billion and represented 36% of our total loan and lease portfolio. These loans are diversified by industry, with no industry representing more than 15% of the portfolio.
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%.
WSFS assumed junior subordinated debentures to the RBC Trusts with a current carrying value of $12.0 million each, totaling $24.0 million, inclusive of the fair value marks. The junior subordinated debentures incur interest at a coupon rate of 6.13% as of December 31, 2025. The rate resets quarterly based on three-month term SOFR plus 2.41%.
At December 31, 2024, we had $190.9 million of residential first mortgage loans serviced by others, compared to $211.3 million at December 31, 2023. We also serviced residential first mortgage loans and reverse mortgage loans for our own portfolio totaling $774.1 million and $659.4 million at December 31, 2024 and 2023, respectively. We offer government-insured reverse mortgages to our Clients.
At December 31, 2025, we had $170.2 million of residential first mortgage loans serviced by others, compared to $190.9 million at December 31, 2024. We also serviced residential first mortgage loans and reverse mortgage loans for our own portfolio totaling $919.6 million and $774.1 million at December 31, 2025 and 2024, respectively. We offer government-insured reverse mortgages to our Clients.
Since the CFPB first began operations, the CFPB's supervisory, enforcement, and rulemaking priorities have shifted as its leadership has changed, and we are unable to predict what effect, if any, future changes to the CFPB's leadership and priorities may have on the Bank.
State attorneys general also may file suit to enforce federal and state laws. 25 Since the CFPB first began operations, the CFPB's supervisory, enforcement, and rulemaking priorities have shifted as its leadership has changed, and we are unable to predict what effect, if any, future changes to the CFPB's leadership and priorities may have on the Bank.
The Company assumed $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027 (the 2027 Notes) from Bryn Mawr Bank Corporation, which were issued by Bryn Mawr Bank Corporation in an underwritten public offering on December 13, 2017.
The Company assumed $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027 (the 2027 Notes) from Bryn Mawr Bank Corporation, which were issued by Bryn Mawr Bank Corporation in an underwritten public offering on December 13, 2017. The 2027 Notes were redeemed on March 17, 2025, at 100% of principal plus accrued and unpaid interest.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeEven 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.
Biggest changeEven 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.
In addition to other bank regulatory agencies, FinCEN is authorized to impose significant civil money penalties for violations of those requirements and has engaged in coordinated enforcement efforts with the state and federal banking regulators, as well as the U.S. Department of Justice, CFPB, Drug Enforcement Administration, and Internal Revenue Service.
In addition to other bank regulatory agencies, FinCEN is authorized to impose significant civil money penalties for violations of those requirements and has engaged in coordinated enforcement efforts with state and federal banking regulators, as well as the U.S. Department of Justice, CFPB, Drug Enforcement Administration, and Internal Revenue Service.
The CFPB has used its authorities to penalize market participants and/or change market practices in several areas of the financial services industry, including automobile loan servicing, credit card account management, debt collection, small business lending, the operation of ATMs, mortgage origination, depository account management, the charging of late fees or other credit card fees, the charging of overdraft fees and insufficient funds fees on deposit accounts, and consumer reporting, among others.
The CFPB has used its authorities to penalize market participants and/or change market practices in several areas of the financial services industry, including automobile loan servicing, credit card account management, debt collection, small business lending, the operation of ATMs, mortgage origination and servicing, depository account management, the charging of late fees or other credit card fees, the charging of overdraft fees and insufficient funds fees on deposit accounts, and consumer reporting, among others.
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.
Our ability to attract and retain 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 Wealth Management segment derives the majority of its revenue from noninterest income which consists of trust, investment and other servicing fees, and our ability to attract trust and wealth management clients is highly dependent upon external perceptions of this segment’s level of service, trustworthiness, business practices and financial condition.
Our Wealth and Trust segment derives the majority of its revenue from noninterest income which consists of trust, investment and other servicing fees, and our ability to attract trust and wealth management clients is highly dependent upon external perceptions of this segment’s level of service, trustworthiness, business practices and financial condition.
If we conclude in the future that a significant portion of our deferred tax assets are not more likely than not to be realized, we will record a valuation allowance, which could adversely affect our financial position, results of operations and regulatory capital ratios. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
If we conclude in the future that a significant portion of our deferred tax assets are not more likely than not to be realized, we will record a valuation allowance, which could adversely affect our financial position, results of operations and regulatory capital ratios. 39 ITEM 1B. UNRESOLVED STAFF COMMENTS None.
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.
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. 35 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.
The CFPB has initiated enforcement actions against a variety of bank and non-bank market participants with respect to a number of consumer financial products and services, which has resulted in those participants expending significant time and money, including the costs of penalties, to respond to the actions pursued by the CFPB.
The CFPB has initiated enforcement actions against a variety of bank and non-bank market participants with respect to a number of consumer financial products and services, which has resulted in those participants expending significant time and money, including the costs of penalties and consumer redress, to respond to the actions pursued by the CFPB.
While we believe we have the executive management resources and internal systems in place to successfully manage our future growth, there can be no assurance growth opportunities will be available or that we will successfully manage our growth. We regularly evaluate potential acquisitions and expansion opportunities.
While we believe we have the executive management resources and internal systems in place to successfully manage our future growth, there can be no assurance growth opportunities will be available or that we will successfully manage our growth. 37 We regularly evaluate potential acquisitions and expansion opportunities.
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.
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 Client 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 and Trust 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. 28 Changes in interest rates and other factors beyond our control could have an adverse impact on our earnings.
Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit. 33 We are exposed to increased credit losses and credit related expenses in the event of a major natural disaster, public health crisis, other catastrophic event or significant climate change effects.
Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit. 30 We are exposed to increased credit losses and credit related expenses in the event of a major natural disaster, public health crisis, other catastrophic event or significant climate change effects.
Changes we make to the rates offered on our deposit products may affect our profitability and liquidity. 34 The FDIA prohibits an insured bank from accepting brokered deposits or offering interest rates on any deposits significantly higher than the prevailing rate in the bank’s normal market area or nationally (depending upon where the deposits are solicited), unless it is “well-capitalized,” or it is “adequately capitalized” and receives a waiver from the FDIC.
Changes we make to the rates offered on our deposit products may affect our profitability and liquidity. 31 The FDIA prohibits an insured bank from accepting brokered deposits or offering interest rates on any deposits significantly higher than the prevailing rate in the bank’s normal market area or nationally (depending upon where the deposits are solicited), unless it is “well-capitalized,” or it is “adequately capitalized” and receives a waiver from the FDIC.
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.
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. 34 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.
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.
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. 33 If we fail to comply with legal standards, we could incur liability to our Clients or lose clients, which could negatively affect our earnings.
In our asset servicing, investment management, fiduciary administration and other business activities, we effect or process transactions for clients and for us that involve very large amounts of money. Failure to properly manage or mitigate operational risks can have adverse consequences, and increased volatility in the financial markets may increase the magnitude of resulting losses.
In our asset servicing, investment management, fiduciary administration and other business activities, we effect or process transactions for clients and for us that involves very large amounts of money. Failure to properly manage or mitigate operational risks can have adverse consequences, and increased volatility in the financial markets may increase the magnitude of resulting losses.
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.
Although we have determined that goodwill and other intangible assets were not impaired during 2025, 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.
Future changes in interest rates may reduce the market value of our investment securities, which could impact market confidence in our operations. A series of bank failures in the spring of 2023 was precipitated by losses in the value of securities portfolios due to rising interest rates and subsequent reduction in deposits.
Future changes in interest rates may reduce the market value of our investment securities, which could impact market confidence in our operations. For example, a series of bank failures in the spring of 2023 was precipitated by losses in the value of securities portfolios due to rising interest rates and subsequent reduction in deposits.
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.
There are no such restrictions under the FDIA on a bank that is “well-capitalized”, and at December 31, 2025, 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.
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.
Additionally, the operations of our Cash Connect ® segment depends on us having access to large amounts of cash. Our principal sources of liquidity include client deposits, FHLB borrowings, brokered certificates of deposit, sales of loans, repayments to the Bank from borrowers and paydowns and sales of investment securities.
Any decrease in the value of the underlying collateral will likely decrease the overall value of our securities, affecting equity and possibly impacting earnings. 32 Changes in or questions about the soundness of other financial institutions could adversely affect us.
Any decrease in the value of the underlying collateral will likely decrease the overall value of our securities, affecting equity and possibly impacting earnings. 29 Changes in or questions about the soundness of other financial institutions could adversely affect us.
Such a delay could adversely affect our business, results of operations, or financial condition. 35 We are subject to changes in federal and state banking statutes, regulations and governmental policies, and their interpretation or implementation.
Such a delay could adversely affect our business, results of operations, or financial condition. 32 We are subject to changes in federal and state banking statutes, regulations and governmental policies, and their interpretation or implementation.
If one or more of these key external parties were not able to perform their functions for a period of time, perform them at an acceptable service level or handle increased volumes, or if one of them experiences a disruption in its own business or technology from any cause, our business operations could be constrained, disrupted, or otherwise negatively affected.
If one or more of these key external parties were not able to perform their functions, perform them at an acceptable service level or handle increased volumes, or if one of them experiences a disruption in its own business or technology from any cause, our business operations could be constrained, disrupted, or otherwise negatively affected.
Compliance with any such change may impact the manner in which WSFS and WSFS Bank offer consumer financial products or services, and our results of operations. As an insured depository institution with $10 billion or more in total assets, WSFS Bank is subject to supervision, examination, and enforcement with respect to consumer protection laws by the CFPB.
Compliance with any such change may impact the manner in which WSFS and WSFS Bank offer consumer financial products or services, and our results of operations. As an insured depository institution with $10 billion or more in total assets, WSFS Bank is subject to supervision, examination, and enforcement with respect to defined Federal consumer financial laws by the CFPB.
Additionally, like many large enterprises, we have introduced more remote work arrangements for our Associates. The increase in remote work arrangements over the past few years has introduced potential new vulnerabilities to cyber threats. We also face increased cybersecurity risk as we deploy additional technologies and digital solutions, including our website and personalized messaging app.
Additionally, like many large enterprises, we have introduced more remote work arrangements for our Associates. The increase in remote work arrangements over the past few years has introduced potential new vulnerabilities to cyber threats. We also face increased cybersecurity risk as we deploy additional technologies and digital solutions, including our website and mobile banking app.
In addition, federal and state banking regulators have broad authority to supervise our banking business, including the authority to prohibit activities that represent unsafe or unsound banking practices or constitute violations of statute, rule, regulation or administrative order.
In addition, banking regulators have broad authority to supervise our banking business, including the authority to prohibit activities that represent unsafe or unsound banking practices or constitute violations of statute, rule, regulation or administrative order.
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.
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 and Trust segment to attract new clients and maintain existing ones. 38 Table of Contents We could also suffer significant harm to our reputation if we fail to properly identify and manage potential conflicts of interest.
In particular, the success of our Wealth Management segment is highly dependent on reputation.
In particular, the success of our Wealth and Trust segment is highly dependent on reputation.
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%.
During 2025, the Federal Reserve announced three decreases to the Federal Funds rate, ending the year with a range between 3.50% and 3.75%.
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.
While it is presently unclear what the level and nature of activity by the CFPB will be going forward, other governmental authorities, including state attorneys general or banking regulators, may seek to increase their regulation and supervision of, and enforcement against providers of consumer financial products and services in response to changes at the CFPB and other federal agencies, which could increase our regulatory risk. 5.
This risk may be heightened during periods when credit, equity or other financial markets are deteriorating in value or are particularly volatile, or when clients or investors are experiencing losses.
Our trust, custody and investment management businesses are particularly subject to this risk. This risk may be heightened during periods when credit, equity or other financial markets are deteriorating in value or are particularly volatile, or when clients or investors are experiencing losses.
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.
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.
Private parties may also have the ability to challenge our performance under fair lending laws in private class action litigation. Such actions could have an adverse effect on our business, financial condition, results of operations and prospects. The Community Reinvestment Act imposes community investment obligations on insured depository institutions.
Private parties may also have the ability to challenge our performance under fair lending laws in private individual and class action litigation. Such actions could have an adverse effect on our business, financial condition, results of operations and prospects. The Community Reinvestment Act requires federal banking regulators to use their supervisory authority to assess depository institutions' record of community investment.
Our businesses involve the risk that clients or others may sue us, claiming that we have failed to perform under a contract or otherwise failed to carry out a duty perceived to be owed to them. Our trust, custody and investment management businesses are particularly subject to this risk.
From time to time, we have and may become party to various litigation claims and legal proceedings. Our businesses involve the risk that clients or others may sue us, claiming that we have failed to perform under a contract or otherwise failed to carry out a duty perceived to be owed to them.
We seek to continuously monitor for and nimbly react to any and all such malicious cyber activity, and we develop our systems to protect our technology infrastructure and data from misuse, misappropriation or corruption.
We seek to continuously monitor for and nimbly react to any and all such malicious cyber activity, and we develop our systems to protect our technology infrastructure and data from misuse, misappropriation or corruption. Senior management gives a quarterly update on cybersecurity to the Risk Committee of our Board (Risk Committee) and an annual update to our full Board.
Operational Risk Our technology-related operational processes and procedures may not be effective in accomplishing their intended purposes. Our operations depend upon the use of computer programs, algorithms, and other analytical tools.
Operational Risk Our technology-related operational processes and procedures may not be effective in accomplishing their intended purposes. Our operations depend upon the use of computer programs, algorithms, and other analytical tools. If such technology is ineffective at its intended purposes or includes errors in computer code, bias, bad data, misuse of data, or fraud, it may adversely affect our 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.
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.
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 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.
The Federal Reserve is the primary federal regulator for the Company, the OCC is the Bank’s primary regulator and the CFPB regulates the Bank’s compliance with consumer financial protection laws .
We are subject to extensive federal and state regulation, supervision and examination governing almost all aspects of our operations. The Federal Reserve is the primary federal regulator for the Company, the OCC is the Bank’s primary regulator and the CFPB regulates the Bank’s compliance with a defined category of Federal consumer financial laws .
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.
Furthermore, we must generally receive federal regulatory approval before we can acquire another insured depository institution or its holding company.
Our business may be adversely impacted by litigation and regulatory enforcement, which could expose us to significant liabilities and/or damage our reputation. From time to time, we have and may become party to various litigation claims and legal proceedings.
Changes in laws, regulations or enforcement practices may impose new compliance requirements, restrict certain AI applications or increase our regulatory obligations, which could negatively impact our business and results of operations. Our business may be adversely impacted by litigation and regulatory enforcement, which could expose us to significant liabilities and/or damage our reputation.
Removed
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.
Added
Other agencies, including the U.S Department of Justice, the U.S Department of Housing and Urban Development, and state attorney's in general also have enforcement or other authority.
Removed
If such technology is ineffective at its intended purposes or includes errors in computer code, unintended bias, bad data, misuse of data, or fraud, it may adversely affect our operations. Additionally, as societal norms, legal requirements, businesses and markets evolve, our technology may not accurately reflect this evolution.
Added
There also has been a reduction in staffing and funding at the CFPB in 2025, which has been challenged in ongoing litigation.
Removed
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.
Added
Additionally, as societal norms, legal requirements, businesses and markets evolve, our technology may not accurately reflect this evolution. 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.
Added
Use of artificial intelligence by us and our third-party vendors or service providers could result in reputational or competitive harm, legal or regulatory liability and adverse impacts on our results of operations.
Added
We have incorporated, and expect to continue to incorporate in the future, artificial intelligence (“AI”) solutions into our operations, and the use of AI involves various risks and challenges that could adversely affect our business, financial condition or results of operations.
Added
In addition, we expect our third-party vendors and service providers to increasingly develop and incorporate AI into their product offerings.
Added
The use, development and deployment of AI systems or the AI systems of third-party AI vendors involve inherent technical complexities and uncertainties, and these AI systems may encounter unexpected technical difficulties, limitations or errors, including inaccuracies in data processing or flawed algorithms, which could compromise the reliability and effectiveness of our products and services based on AI.
Added
In addition, our competitors or other third parties may incorporate AI into their products more quickly or more successfully than us, which could impair our ability to compete effectively.
Added
The use of AI applications, including large language models, has resulted in, and may in the future result in, cybersecurity vulnerabilities or incidents that implicate the personal information, intellectual property, proprietary data or other sensitive information of end users of such applications.
Added
Any such cybersecurity incidents related to our use of AI applications could adversely affect our reputation and results of operations.
Added
AI also presents emerging ethical issues, and if our use of AI becomes controversial, we may experience brand or reputational harm, competitive harm, regulatory scrutiny or legal liability. 36 The increased adoption of AI technologies in our products and services may result in new or enhanced governmental or regulatory scrutiny, litigation, confidentiality or security risks or other complications that could adversely affect our business, reputation or financial results.
Added
The regulatory landscape governing AI technologies is evolving rapidly, and various jurisdictions, including Europe and certain U.S. states, have proposed or already adopted laws governing the use, development and deployment of AI technologies.
Added
In enforcement matters, claims for disgorgement, the imposition of civil and criminal penalties and the imposition of other remedial sanctions are possible.
Added
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

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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.
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.
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.
Further, the Cybersecurity Committee is responsible for (1) prioritization of Enterprise Strategic Planning for cybersecurity, (2) the review and approval of 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.
The Company is not aware of any cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company's business strategy, results of operations or financial condition. Governance Our Information Security Policy and Information Security Program are the standards used to protect the Bank’s confidential information.
The Company is not aware of any cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company's business strategy, results of operations or financial condition. 40 Governance Our Information Security Policy and Information Security Program are the standards used to protect the Bank’s confidential information.
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.
The CISO has more than 25 years of experience in the information security field, including 24 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.
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 Client Information.
The Information Security Policy is annually reviewed, updated, and approved by the Risk Committee and the Board of Directors. The CISO reports security related incidents, findings, changes, etc. to the Risk Committee, on an annual basis or quarterly as needed. This information is communicated through the Company's Risk Department.
The Information Security Policy is annually reviewed, updated, and approved by the Risk Committee and the Board. The CISO reports security related incidents, findings, changes, etc. to the Risk Committee, on an annual basis or quarterly as needed. This information is communicated through the Company's Risk Department.
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 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 the Board are notified of these incidents by the CIO and CRO as necessary.
Management reviews test results promptly and ensures that appropriate steps are taken to address adverse test results. Remediation efforts are organized and made available to the Risk Committee of the Board of Directors (Risk Committee) as well as for review by third party auditors and examiners.
Management reviews test results promptly and ensures that appropriate steps are taken to address adverse test results. Remediation efforts are organized and made available to the Risk Committee, the Audit Committee, the Cybersecurity Committee, as well as for review by third party auditors and examiners.
The CSIRP requires approval by the Executive Leadership Team under the Cybersecurity Committee and is governed by the Continuity of Operations Policy that is approved annually by the Board of Directors.
The CSIRP requires approval by the Executive Leadership Team under the Management Risk Committee and is governed by the Continuity of Operations Policy that is approved annually by the Board.
Added
The Company's Chief Information Security Officer (CISO) is designated as the program coordinator responsible for coordinating and overseeing the program.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeIn addition to our branch network, we own or lease office space for 26 other loan production offices and facilities located in Delaware, southeastern Pennsylvania, southern New Jersey, Florida, Nevada and Virginia to house operational activities, Cash Connect ® and our Wealth Management businesses. We owned 37 of our banking offices and other facilities while all other locations were leased.
Biggest changeIn addition to our branch network, we own or lease office space for 26 other loan production offices and facilities located in Delaware, southeastern Pennsylvania, southern New Jersey, Florida, Nevada and Virginia to house operational activities, Cash Connect ® and our Wealth and Trust businesses.
For 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
For 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. 41 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, 2024, 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 78,534 square feet of space. At December 31, 2025, we conducted our business through 87 banking offices located in Delaware, southeastern Pennsylvania and southern New Jersey.
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.
We owned 37 of our banking offices and other facilities while all other locations were leased. 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

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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
Biggest changeDecember 31, 2020 through December 31, 2025 Cumulative Total Return 2020 2021 2022 2023 2024 2025 WSFS Financial Corporation $ 100 $ 113 $ 103 $ 106 $ 125 $ 131 Nasdaq Bank Index 100 143 120 116 139 149 KBW Nasdaq Regional Bank Index 100 137 127 127 143 153 S&P SmallCap 600 Index 100 127 106 123 134 142 ITEM 6. [RESERVED] 43
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.
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, 2025 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, 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.
Cumulative total shareholder return on our common stock or the indices equals the total increase in value since December 31, 2020, 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, 2020 in our common stock and in each of the indices.
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.
Share Repurchases: During the second quarter of 2022, the Board 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. This repurchase program was completed during the third quarter of 2025.
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.
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 23, 2026, we had 2,929 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) 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.
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) 151,354 $ 43.66 1,710,180 Equity compensation plans not approved by stockholders N/A N/A N/A Total 151,354 $ 43.66 1,710,180 (1) Plans approved by stockholders include the 2013 Incentive Plan and the 2018 Incentive Plan.
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.
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, 2025 - October 31, 2025 756,596 $ 52.85 756,596 4,894,079 November 1, 2025 - November 30, 2025 1,152,972 54.14 1,152,972 3,741,107 December 1, 2025 - December 31, 2025 119,900 57.23 119,900 3,621,207 Total 2,029,468 53.84 2,029,468 42 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 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 24, 2025 was $53.54.
The closing market price of our common stock at February 23, 2026 was $65.36.
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.
The program is consistent with our intent to optimize capital levels through a mix of dividends and share repurchases while maintaining capital ratios in excess of “well-capitalized” regulatory benchmarks and targeting a corporate Common Equity Tier 1 capital ratio of approximately 12%.
Added
During the second quarter of 2025, the Board of the Company approved a share repurchase program authorizing the repurchase of 5,769,334 shares of common stock, or 10% of its outstanding shares as of March 31, 2025.
Added
During the three months ended December 31, 2025, the Company repurchased 2,029,468 shares of common stock under the share repurchase program.

Item 7. Management's Discussion & Analysis

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

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Biggest changeConstruction loans decreased $203.4 million partially due to the migration of construction loans to permanent commercial mortgage and owner-occupied commercial loans. • Other assets increased $145.1 million, primarily driven by a $63.8 million receivable due to the settlement timing of ACH payments, $18.8 million from the transfer of three properties to held for sale, an $18.3 million increase in derivatives from our Capital Markets business due to changes in fair value, $17.9 million in deferred taxes, and $12.5 million driven by new low-income housing tax credit investments. • Total cash and cash equivalents increased $61.9 million, primarily due to increased deposits, partially offset by the repayment of borrowings from the BTFP and increased lending activity. • Total investment securities decreased $379.3 million: ◦ Investment securities, available-for-sale decreased $335.9 million, primarily due to repayments of $350.4 million and decreased market values on available-for-sale securities of $49.8 million, partially offset by $67.4 million in purchases . ◦ Investment securities, held to maturity decreased $43.4 million primarily due to repayments, maturities and calls of $61.3 million, partially offset by $14.8 million of amortization of net unrealized losses on available-for-sale securities transferred to held-to-maturity. • Premises and equipment decreased $18.5 million primarily driven by the transfer of three properties to held for sale.
Biggest changeThese increases were partially offset by decreases in consumer loans of $191.9 million primarily driven by the Upstart portfolio sale and runoff of the Spring EQ portfolio, $114.5 million in commercial mortgages primarily due to the payoff of several large loans, and $36.3 million in owner-occupied commercial loans • Other assets decreased $87.3 million, primarily driven by a $55.0 million decrease in low-income housing tax credit investments and a $34.9 million decrease in derivatives from our Capital Markets business due to changes in fair value, partially offset by a $15.2 million increase in receivables due to the settlement timing of ACH payments. • Goodwill and intangible assets decreased $18.3 million due to scheduled amortization and impacts from the sale of the WSFS Wealth Management, LLC (dba Powdermill Financial Solutions) business. • Total investment securities decreased $15.2 million: ◦ Investment securities, held to maturity decreased $46.8 million primarily due to repayments, maturities and calls of $62.2 million, partially offset by $12.4 million of amortization of net unrealized losses on securities transferred from available-for-sale. ◦ Investment securities, available-for-sale increased $31.6 million, primarily due to a net $212.2 million increase in market value on available-for-sale securities and $203.0 million in purchases, partially offset by repayments of $380.6 million .
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.
Expected maturities of mortgage-backed securities may differ from contractual maturities due to calls or prepay obligations. 54 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.
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.
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 488 owned or branded ATMs for WSFS Bank Clients, which is one of the largest branded ATM networks in our market.
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.
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. 59 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 Cash Connect ® business is a premier provider of ATM vault cash, smart safe (safes that automatically accept, validate, record and hold cash in a secure environment) and other cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry.
Our Cash Connect ® segment is a premier provider of ATM vault cash, smart safe (safes that automatically accept, validate, record and hold cash in a secure environment) and other cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry.
Allowance for Credit Losses We maintain an allowance for credit losses (ACL) which represents our best estimate of expected losses in our financial assets, which include loans, leases and held-to-maturity debt securities. We establish our allowance in accordance with guidance provided in ASC 326, Financial Instruments – Credit Losses.
Allowance for Credit Losses We maintain an allowance for credit losses (ACL) which represents our best estimate of expected losses in our financial assets, which include loans, leases, held-to-maturity debt securities, and accounts receivable. We establish our allowance in accordance with guidance provided in ASC 326, Financial Instruments – Credit Losses.
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.
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 193 years.
Private Wealth Management serves high-net-worth clients and institutions by providing trustee and advisory services, financial planning, customized investment strategies, brokerage products such as annuities and traditional banking services such as credit and deposit products tailored to its clientele. Private Wealth Management includes businesses that operate under the Bank’s charter, through a broker/dealer and as a registered investment advisor (RIA).
Private Wealth Management serves high-net-worth clients and institutions by providing trustee and advisory services, financial planning, customized investment strategies, brokerage products such as annuities and traditional banking services such as credit and deposit products tailored to its clientele. Private Wealth Management includes businesses that operate under the Bank’s charter and as a registered investment advisor (RIA).
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.
Segment financial information for the years ended December 31, 2025, 2024 and 2023 is provided in Note 21 to the Consolidated Financial Statements. 57 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.
Failure to meet minimum capital requirements can initiate certain mandatory actions and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. 49 Table of Contents Regulators have established five capital tiers: well-capitalized, adequately-capitalized, under-capitalized, significantly under-capitalized, and critically under-capitalized.
Failure to meet minimum capital requirements can initiate certain mandatory actions and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Regulators have established five capital tiers: well-capitalized, adequately-capitalized, under-capitalized, significantly under-capitalized, and critically under-capitalized.
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.
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, 2025, the Company has $1.7 billion in cash, cash equivalents, and restricted cash.
(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.
(2) Includes U.S. government guaranteed student loans with little risk of credit loss. (3) Represents loans with certain modifications (as prescribed in ASU 2022-02) to borrowers experiencing financial difficulty. (4) Represents amortized cost basis for loans and leases. (5) Total loans exclude loans held for sale and reverse mortgages.
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
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, 2025, the Company believes that its ACL was adequate. 60
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.
Our primary cash contractual obligations relate to operating leases, long-term debt, credit obligations, and data processing. At December 31, 2025, we had $167.9 million in total contractual payments for ongoing leases that have remaining lease terms of less than one year to 19 years, which includes renewal options that are exercised at our discretion.
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.
Our Wealth and Trust 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. Combined, these businesses had $97.4 billion of AUM and AUA at December 31, 2025.
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.
In addition, the Company had $0.3 billion in unpledged securities that could be used to support additional borrowings and $1.2 billion of cash deposited with the Federal Reserve Bank. During the year ended December 31, 2025, cash, cash equivalents and restricted cash increased $544.3 million to $1.7 billion from $1.2 billion as of December 31, 2024.
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.
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 $20.8 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.
With $21.3 billion in assets and $97.4 billion in assets under management (AUM) and assets under administration (AUA) at December 31, 2025, WSFS Bank is the oldest and largest locally-managed bank and trust company headquartered in the Greater Philadelphia and Delaware region.
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.
At December 31, 2025, Wealth and Trust had AUA/AUM of $97.4 billion, a 9% increase from 2024 balances. WSFS Institutional Services ® ended 2025 as the securitization industry's fourth most active trustee for U.S. ABS and MBS according to Asset-Backed Alert’s ABS Database.
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.
Income Taxes We recorded $93.4 million of income tax expense for the year ended December 31, 2025 compared to $83.8 million for the year ended December 31, 2024.
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.
Our estimated uninsured deposits were $7.1 billion, or 40% of total client deposits, and our estimated unprotected deposits (uninsured and uncollateralized) were $5.3 billion, or 30% of total Client deposits. As of December 31, 2025, the Company had a readily available, secured borrowing capacity of $5.9 billion from the FHLB and $2.3 billion through the Federal Reserve Discount Window.
LIQUIDITY AND CAPITAL RESOURCES Capital Resources Regulatory capital requirements for the Bank and the Company include a minimum common equity Tier 1 capital ratio of 4.50% of risk-weighted assets, a Tier 1 capital ratio of 6.00% of risk-weighted assets, a minimum Total capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 leverage capital ratio of 4.00% of average assets.
For further information on our regulatory capital requirements, refer to our Capital Resources discussion below. 46 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Capital Resources Regulatory capital requirements for the Bank and the Company include a minimum common equity Tier 1 capital ratio of 4.50% of risk-weighted assets, a Tier 1 capital ratio of 6.00% of risk-weighted assets, a minimum Total capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 leverage capital ratio of 4.00% of average assets.
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.
The increase was primarily due to earnings of $287.3 million during the year and a decrease of $179.3 million in accumulated other comprehensive loss due to market value increases on investment securities, partially offset by significant capital returns to shareholders ($287.5 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 $37.2 million).
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.
For the year ended December 31, 2025, we recorded a provision for credit losses of $49.2 million, a net change of $12.2 million, compared to a provision for credit losses of $61.4 million in 2024.
(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.
(2) Includes home equity lines of credit, installment loans unsecured lines of credit and education loans. 55 Table of Contents Noninterest Income Noninterest income decreased $1.0 million to $339.9 million in 2025 from $340.9 million in 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 have built a $10.0 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 also offer a broad variety of consumer loan products and retail securities brokerage through our retail branches.
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.
Cash Connect ® services non-bank and WSFS-branded ATMs and smart safes nationwide, and manages approximately $1.3 billion in total cash and services approximately 24,000 non-bank ATMs and 11,900 smart safes nationwide.
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.
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 frequently analyze our projections of taxable income and make adjustments to our provision for income taxes accordingly.
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.
The increase in income tax expense was primarily driven by an increase in income before taxes of $33.4 million for the year ended December 31, 2025 compared to the year ended December 31, 2024. The effective tax rates for the years ended December 31, 2025 and 2024 were 24.5% and 24.1%, respectively.
Cash Connect ® provides ATM vault cash, smart safe and other cash logistics services in the U.S through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry. Cash Connect ® services non-bank and WSFS-branded ATMs and smart safes nationwide.
The WSFS Bank segment provides loans and leases and other financial products to Commercial and Consumer Clients. Cash Connect ® provides ATM vault cash, smart safe and other cash logistics services in the U.S through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry.
Stockholders’ equity increased $112.1 million to $2.6 billion at December 31, 2024 compared to the prior year.
Stockholders’ equity increased $148.8 million to $2.7 billion at December 31, 2025 compared to the prior year.
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.
In addition, and not included in the Bank's capital, the Company separately held $254.5 million in cash to support share repurchases, potential dividends, acquisitions, strategic growth plans and other general corporate purposes. Liquidity We manage our liquidity and funding needs through our Treasury function and our Asset/Liability Committee.
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.
In general, this system uses guidelines established by federal regulation. 50 Table of Contents RESULTS OF OPERATIONS 2024 compared with 2023 For a discussion of our results for the year ended December 31, 2024 compared to the year ended December 31, 2023, 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, 2024 filed with the SEC on February 28, 2025. 2025 compared with 2024 We recorded net income attributable to WSFS of $287.3 million, or $5.09 per diluted common share, for the year ended December 31, 2025, an increase of $23.7 million compared to $263.7 million, or $4.41 per diluted common share, for the year ended December 31, 2024. • Net interest income for the year ended December 31, 2025 was $726.1 million, an increase of $20.6 million compared to 2024, primarily due to lower deposit and wholesale funding costs as well as higher cash balances from growth in average deposits.
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.
The following table shows our nonperforming assets, past due loans, and troubled loans at the dates indicated: At December 31, (Dollars in thousands) 2025 2024 Nonaccruing loans (1) : Commercial and industrial $ 27,060 $ 61,809 Owner-occupied commercial 6,581 4,710 Commercial mortgages 7,565 22,223 Construction 22,381 25,600 Residential 5,002 5,011 Consumer 3,309 2,828 Total nonaccruing loans 71,898 122,181 Other real estate owned 200 5,204 Total nonperforming assets $ 72,098 $ 127,385 Past due loans: Commercial $ 12,237 $ 1,812 Residential 133 15 Consumer (2) 10,046 7,375 Total past due loans $ 22,416 $ 9,202 Troubled loans (3) : Commercial $ 142,613 $ 143,904 Residential 226 144 Consumer 1,428 7,240 Total troubled loans $ 144,267 $ 151,288 Ratio of allowance for credit losses to total gross loans and leases (4) 1.36 % 1.48 % Ratio of nonaccruing loans to total gross loans and leases (5) 0.54 0.93 Ratio of nonperforming assets to total assets 0.34 0.61 Ratio of allowance for credit losses to nonaccruing loans 250 160 Ratio of allowance for credit losses to total nonperforming assets (6) 249 153 (1) Includes nonaccruing troubled loans.
Customer deposits increased by $0.6 billion to $14.6 billion, driven by growth in money market and time deposits. Cash Connect ® Segment The Cash Connect ® segment income before taxes decreased to $1.0 million in 2024 from $4.2 million in 2023.
Client deposits decreased by $0.1 billion to $14.5 billion, primarily driven by decreases in time deposits and interest-bearing demand deposits, partially offset by growth in money market and noninterest-bearing demand deposits. Cash Connect ® Segment The Cash Connect ® segment income before taxes increased to $9.8 million in 2025 from $1.0 million in 2024.
The timely identification of problem loans is a key element in our strategy to manage our loan portfolio. Problem loans are all criticized, classified and nonperforming loans and other real estate owned. Timely identification enables us to take appropriate action and accordingly, minimize losses.
Problem loans are all criticized, classified and nonperforming loans and other real estate owned. Timely identification enables us to take appropriate action and accordingly, minimize losses. An asset review system established to monitor the asset quality of our loans and investments in real estate portfolios facilitates the identification of problem assets.
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.
We are also contractually obligated to make interest payments on our long-term debt through their respective maturities. 47 Table of Contents For additional information regarding long-term debt, see Note 12 to the Consolidated Financial Statements. At December 31, 2025, the Company had total commitments to extend credit of $4.5 billion, which are generally one year commitments.
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.
Wealth and Trust Segment The Wealth and Trust segment income before taxes increased $16.1 million in 2025 compared to 2024, primarily driven by fee revenue growth from WSFS Institutional Services ® and BMT-DE, partially offset by increases in salaries and benefits as a result of performance-based incentive increases and talent additions to support future growth.
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.
See “Noninterest Expense” for further information. 51 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, 2025 2024 (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 $ 4,615,946 $ 294,129 6.39 % $ 4,524,282 $ 308,005 6.82 % Commercial mortgage loans 4,859,468 320,174 6.59 4,937,177 349,507 7.08 Commercial leases 623,005 54,536 8.75 637,036 54,904 8.62 Residential 998,405 53,504 5.36 911,345 46,094 5.06 Consumer 1,965,557 135,791 6.91 2,088,699 156,195 7.48 Loans held for sale 73,080 5,120 7.01 44,263 3,676 8.30 Total loans and leases 13,135,461 863,254 6.58 13,142,802 918,381 6.99 Mortgage-backed securities (3) 4,138,516 98,004 2.37 4,365,155 102,024 2.34 Investment securities (3) 366,075 8,722 2.69 364,896 8,739 2.65 Other interest-earning assets 1,152,938 49,708 4.31 647,361 34,438 5.32 Total interest-earning assets 18,792,990 1,019,688 5.44 18,520,214 1,063,582 5.75 Allowance for credit losses (189,982) (195,126) Cash and due from banks 179,871 182,368 Cash in non-owned ATMs 377,562 339,646 Bank owned life insurance 36,438 38,958 Other noninterest-earning assets 1,898,742 1,935,011 Total assets $ 21,095,621 $ 20,821,071 Liabilities and stockholders’ equity: Interest-bearing liabilities: Interest-bearing deposits: Interest-bearing demand $ 2,842,545 $ 29,713 1.05 % $ 2,823,136 $ 33,007 1.17 % Money market 5,540,917 163,402 2.95 5,202,179 183,306 3.52 Savings 1,437,130 6,580 0.46 1,535,151 7,314 0.48 Client time deposits 2,082,820 78,562 3.77 1,998,134 84,871 4.25 Total interest-bearing client deposits 11,903,412 278,257 2.34 11,558,600 308,498 2.67 Brokered deposits 79 3 3.80 4,577 178 3.89 Total interest-bearing deposits 11,903,491 278,260 2.34 11,563,177 308,676 2.67 Federal Home Loan Bank (FHLB) advances 76,186 3,453 4.53 56,855 2,967 5.22 Trust preferred borrowings 90,928 6,048 6.65 90,730 6,910 7.62 Senior and subordinated debt 165,885 5,772 3.48 218,507 9,690 4.43 Other borrowed funds (4) 22,075 68 0.31 645,921 29,901 4.63 Total interest-bearing liabilities 12,258,565 293,601 2.40 12,575,190 358,144 2.85 Noninterest-bearing demand deposits 5,484,348 4,926,702 Other noninterest-bearing liabilities 681,093 793,465 Stockholders’ equity of WSFS 2,682,068 2,535,737 Noncontrolling interest (10,453) (10,023) Total liabilities and stockholders’ equity $ 21,095,621 $ 20,821,071 Excess of interest-earning assets over interest-bearing liabilities $ 6,534,425 $ 5,945,024 Net interest and dividend income $ 726,087 $ 705,438 Interest rate spread 3.04 % 2.90 % Net interest margin 3.87 % 3.82 % (1) Weighted average yields for tax-exempt securities and loans have been computed on a tax-equivalent basis.
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.
At December 31, 2025, we had obligations for principal payments on long-term debt including $200.0 million for our senior debt due December 15, 2035, $67.0 million for our trust preferred borrowings due June 1, 2035, and $24.0 million for our trust preferred borrowings due December 15, 2034.
The 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.
The following tables detail the allocation of the ACL on loans and leases 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, 2025 Allowance for credit losses $ 52,927 $ 7,626 $ 48,047 $ 13,264 $ 16,449 $ 6,764 $ 34,570 $ 179,647 % of ACL to total ACL 30 % 4 % 27 % 7 % 9 % 4 % 19 % 100 % Loan portfolio balance $ 2,796,654 $ 1,937,339 $ 3,916,159 $ 1,023,911 $ 603,321 $ 1,086,102 $ 1,894,460 $ 13,257,946 % to total loans and leases 20 % 15 % 30 % 8 % 5 % 8 % 14 % 100 % Year ended December 31, 2025 Charge-offs $ (32,120) $ (215) $ (4,583) $ (4,900) $ (14,386) $ — $ (18,863) $ (75,067) Recoveries 4,894 19 622 — 2,959 188 6,980 15,662 Net (charge-offs) recoveries $ (27,226) $ (196) $ (3,961) $ (4,900) $ (11,427) $ 188 $ (11,883) $ (59,405) Average loan balance $ 2,671,383 $ 1,944,563 $ 3,940,590 $ 918,878 $ 623,005 $ 993,870 $ 1,965,557 $ 13,057,846 Ratio of net charge-offs (recoveries) to average gross loans 1.02 % 0.01 % 0.10 % 0.53 % 1.83 % (0.02) % 0.60 % 0.45 % (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 % (1) Excludes reverse mortgages.
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.
For additional information regarding commitments to extend credit, see Note 17 to the Consolidated Financial Statements. 48 Table of Contents NONPERFORMING ASSETS Nonperforming assets include nonaccruing loans and OREO. Nonaccruing loans are those on which we no longer accrue interest.
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 provided by financing activities was $199.5 million, primarily due to a $604.3 million net increase in deposits and $200.0 million from the issuance of the 2035 Notes, offset by $290.3 million for repurchases of common stock under the previously announced stock repurchase plan, $220.0 million for the redemption of senior and subordinated debt, $51.0 million for the redemption of fixed rate FHLB term advances, and $37.2 million for the payment of quarterly dividends.
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.
Cash Connect ® services non-bank and WSFS-branded ATMs and smart safes nationwide. The Wealth and Trust 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.
At December 31, 2024, the Bank was in compliance with regulatory capital requirements and all of its regulatory ratios exceeded “well-capitalized” regulatory benchmarks.
At December 31, 2025, the Bank and the Company were in compliance with regulatory capital requirements and all of their regulatory ratios exceeded “well-capitalized” regulatory benchmarks. For the capital position of the Bank and the Company, refer to Note 13 of the Consolidated Financial Statements.
Also, liquidity risk management is a primary area of examination by the banking regulators.
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.
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.
Cash Connect ® had $1.3 billion in total cash managed at December 31, 2025 and $1.6 billion at December 31, 2024. At year-end 2025, Cash Connect ® serviced approximately 24,000 non-bank ATMs compared to approximately 28,600 at year-end 2024 and approximately 11,900 smart safes nationwide compared to approximately 10,000 smart safes at year-end 2024.
The increase was primarily due to increases of $43.5 million in salaries and benefits costs from annual performance-based increases, talent additions in key business lines and higher medical benefits costs, $37.1 million in other operating expense driven by higher funding costs from Cash Connect ® , and $5.5 million in equipment expense as we continued to invest in technology, including a new Trust accounting system and client portal.
The decrease was primarily due to a $30.5 million decrease in other operating expense driven by lower funding costs from Cash Connect ® as well as other productivity measures, partially offset by increases of $24.1 million in salaries and benefits costs due to performance-based increases and talent additions in key business areas and $5.2 million in equipment expense.
Cash provided by operating activities was $219.9 million, primarily reflecting the cash impact of earnings. Cash used for investing activities was $66.7 million primarily due to purchases of loans held for investment of $269.6 million and a $138.3 million net increase in loans and leases.
Cash provided by operating activities was $220.0 million, primarily reflecting the cash impact of earnings. Cash provided by investing activities was $124.9 million primarily due to repayments of AFS and HTM securities of $380.6 million and $62.2 million, respectively, partially offset by $203.0 million of purchases of AFS securities and a $117.7 million net increase in loans and leases.
It generates revenue through a percentage fee based on account assets, fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody. Powdermill ® is a multi-family office specializing in providing independent solutions to high-net-worth individuals, families and corporate executives through a coordinated, centralized approach.
It generates revenue through a percentage fee based on account assets, fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody. BMT-DE provides personal trust and fiduciary services to families and individuals across the U.S. and internationally.
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 ® ).
The Company also has three unconsolidated subsidiaries: WSFS Capital Trust III, Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II. Subsidiaries of WSFS Bank included 1832 Holdings, Inc. and one majority-owned subsidiary, NewLane Finance Company (NewLane Finance ® ). Our banking segment had a net loan and lease portfolio of $12.6 billion as of December 31, 2025.
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 following table summarizes the changes in nonperforming assets during the periods indicated: Year Ended December 31, (Dollars in thousands) 2025 2024 Beginning balance $ 127,385 $ 75,754 Additions 80,760 207,135 Collections (60,535) (75,810) Transfers to accrual (1,529) (15,653) Charge-offs (73,983) (64,041) Ending balance $ 72,098 $ 127,385 The timely identification of problem loans is a key element in our strategy to manage our loan portfolio.
WSFS Bank segment net loans and leases held for investment increased by $0.4 billion to $12.6 billion, driven by commercial loan growth within the commercial mortgage, commercial and industrial, and owner-occupied portfolios, residential mortgage loans and consumer loans (primarily from Spring EQ home equity loans), and was partially offset by a decrease in construction loans partially due to the migration to permanent commercial mortgage and owner-occupied commercial loans.
WSFS Bank segment net loans and leases held for investment was essentially flat at $12.6 billion, with growth in construction, residential mortgage, and commercial and industrial, offset by a decrease in consumer loans driven by the runoff of our Spring EQ portfolio and the sale of the Upstart loans, as well as a decrease in commercial mortgages.
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.
We repurchased 5,439,981 and 2,049,739 shares of our common stock in 2025 and 2024, respectively. We held 23,046,983 shares and 17,607,002 shares of our common stock as treasury shares at December 31, 2025 and 2024, respectively.
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.
Total liabilities increased $351.1 million, or 2%, to $18.6 billion at December 31, 2025 compared to the prior year, primarily comprised of the following (in descending order of magnitude): • Total deposits increased $612.7 million, primarily driven by the Wealth and Trust segment, with growth in noninterest demand and money market deposits. • Other liabilities decreased $162.2 million primarily due to a decrease of $162.4 million in collateral held on derivatives and derivative liabilities. • FHLB advances decreased $51.0 million due to wholesale funding optimization. • Senior and subordinated debt decreased $21.7 million due to the redemption of the 2030 Notes and 2027 Notes, partially offset by the issuance of the 2035 Notes.
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.
See “Provision/Allowance for Credit Losses” for further information. • Noninterest income decreased $1.0 million in 2025, primarily due to a decrease in Cash Connect ® driven by rates and lower ATM bailment income, the impact of valuation adjustments to our Visa B derivative liability, and an impairment loss related to one of our equity investments, partially offset by an increase from Wealth and Trust driven by WSFS Institutional Services ® and BMT-DE and returns on derivative collateral.
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 effective tax rate for year ended December 31, 2025 increased primarily due to certain tax credits recognized in 2024.
The increase is primarily comprised of the following (in descending order of magnitude): • Net loans and leases held for investment increased $413.0 million, primarily due to increases of $229.4 million in commercial mortgages, $116.1 million in commercial and industrial loans, $94.3 million in residential mortgage loans, $87.6 million in owner-occupied commercial loans, and $74.3 million in consumer loans (primarily from Spring EQ home equity loans).
The increase is primarily comprised of the following (in descending order of magnitude): • Total cash and cash equivalents increased $544.3 million, primarily due to higher deposits. • Net loans and leases held for investment increased $85.8 million due to increases in construction loans of $191.8 million primarily from draws on existing commitments, $140.5 million in commercial and industrial loans, and $124.8 million in residential mortgage loans.
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.
Net interest margin increased 5 bps to 3.87% in 2025 from 3.82% in 2024. The increase was primarily due to deposit repricing actions, continued wholesale funding optimization, and higher cash balances, partially offset by lower loan yields.
The decrease was driven by an increase in salaries, benefits, and other compensation of $34.5 million, or 15%, largely due to talent additions in key business lines including Commercial and Technology, and a decrease in net external client interest income of $11.6 million, or 2%, driven by growth in higher-priced deposit products, partially offset by higher loan yields.
The increase in income before taxes was partially offset by an increase in salaries, benefits, and other compensation expense of $15.9 million, or 6%, largely due to performance-based increases and talent additions in key businesses.
(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.
(2) Includes a tax-equivalent income adjustment related to municipal bonds. 53 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, 2025: (Dollars in thousands) Maturing During 2026 Maturing From 2027 Through 2030 Maturing From 2031 Through 2035 Maturing After 2035 Total Collateralized mortgage obligations (CMO) Amortized cost $ 15,279 $ 42,458 $ 34,008 $ 384,664 $ 476,409 Weighted average yield 1.85 % 2.24 % 2.68 % 1.78 % 1.89 % Fannie Mae (FNMA) mortgage-backed securities (MBS) Amortized cost $ 30,947 $ 103,803 $ 223,848 $ 2,808,612 $ 3,167,210 Weighted average yield 2.02 % 2.95 % 2.50 % 2.12 % 2.17 % Freddie Mac (FHLMC) MBS Amortized cost $ — $ 37,769 $ 28,063 $ 58,147 $ 123,979 Weighted average yield — % 2.99 % 2.29 % 3.22 % 2.94 % Ginnie Mae (GNMA) MBS Amortized cost $ — $ 245 $ 20 $ 49,539 $ 49,804 Weighted average yield — % 2.90 % 4.90 % 3.70 % 3.69 % Government-sponsored enterprises (GSE) agency notes Amortized cost $ — $ 35,006 $ 185,292 $ — $ 220,298 Weighted average yield — % 1.25 % 1.33 % — % 1.32 % Total amortized cost $ 46,226 $ 219,281 $ 471,231 $ 3,300,962 $ 4,037,700 Weighted average yield 1.96 % 2.55 % 2.04 % 2.12 % 2.13 % As of December 31, 2025, WSFS does not have any tax-exempt securities within the available-for-sale investment portfolio.
See “Noninterest Income” for further information. • Noninterest expense increased $76.1 million in 2024, primarily due to increases in salaries and benefits from annual performance-based increases, talent additions in key business lines and increased medical benefits costs, Cash Connect ® funding costs, and equipment expense as we continued to invest in technology, including a new Trust accounting system and client portal.
See “Noninterest Income” for further information. • Noninterest expense decreased $1.5 million in 2025, primarily due to a decrease in other operating expense driven by lower Cash Connect ® funding costs and other productivity measures, partially offset by increases in salaries and benefits from performance-based increases and equipment expense.
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.
Our mission is simple: “We Stand for Service ® .” As of December 31, 2025, the Company's consolidated operating subsidiaries included WSFS Bank, The Bryn Mawr Trust Company of Delaware (BMT-DE), Bryn Mawr Trust Advisors (BMTA), and WSFS SPE Services, LLC.
(4) Includes federal funds purchased. 54 Table of Contents Net interest income decreased $19.7 million, or 3%, to $705.4 million in 2024, compared to 2023 primarily due to continued deposit mix shift and growth in higher priced deposit products, partially offset by higher loan volumes and yields.
(4) Includes federal funds purchased. 52 Table of Contents Net interest income increased $20.6 million, or 3%, to $726.1 million in 2025, compared to 2024 driven by lower deposit and wholesale funding costs as well as higher cash balances from growth in average deposits . The increase was partially offset by lower loan yields due to rate cuts .
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.
The increase was partially offset by lower loan yields due to rate cuts. See “Net Interest Income” for further information. • Our provision for credit losses decreased $12.2 million in 2025. The current year provision was impacted by charge-offs and new originations, partially offset by the reduction in the allowance due to the Upstart loan sale.
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.
The Home Lending division offers mortgage banking and title services through our branches and WSFS Mortgage ® , our mortgage banking division specializing in a variety of residential mortgage and refinancing solutions. We fund our lending businesses primarily with deposits generated through commercial relationships and consumer, wealth and trust client deposits, as well as through our digital banking platforms.
The decrease was primarily due to one-time charges during 2024 associated with the termination of a longstanding Client relationship during the fourth quarter totaling $4.7 million, partially offset by higher ATM bailment volume from new clients added in the fourth quarter of 2023 and first quarter of 2024 and double digit growth in smart safes.
The increase was primarily due to a decrease in other operating expense driven by lower funding costs and one-time charges during 2024 associated with the termination of a longstanding Client relationship totaling $4.7 million. The full-year 2025 profit margin for the Cash Connect ® segment increased to 11.51% from 0.99% for the full-year 2024 due to the reasons described above.
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.
Year Ended December 31, 2025 vs. 2024 (Dollars in thousands) Volume Yield/Rate Net Interest Income: Loans: Commercial loans (1) $ 6,087 $ (19,963) $ (13,876) Commercial mortgage loans (5,435) (23,898) (29,333) Commercial leases (1,201) 833 (368) Residential 4,572 2,838 7,410 Consumer (8,900) (11,504) (20,404) Loans held for sale 2,088 (644) 1,444 Mortgage-backed securities (5,325) 1,305 (4,020) Investment securities (2) (3) (14) (17) Other interest-earning assets 22,803 (7,533) 15,270 Favorable (unfavorable) 14,686 (58,580) (43,894) Interest expense: Deposits: Interest-bearing demand 219 (3,513) (3,294) Money market 11,300 (31,204) (19,904) Savings (444) (290) (734) Client time deposits 3,513 (9,822) (6,309) Brokered deposits (171) (4) (175) FHLB advances 915 (429) 486 Trust preferred borrowings 15 (877) (862) Senior and subordinated debt (2,072) (1,846) (3,918) Other borrowed funds (15,174) (14,659) (29,833) Favorable (1,899) (62,644) (64,543) Net change, as reported $ 16,585 $ 4,064 $ 20,649 (1) Includes a tax-equivalent income adjustment related to commercial loans.
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.
The legislation has multiple effective dates and is not expected to have a material impact on the Company. 56 Table of Contents SEGMENT INFORMATION For financial reporting purposes, our business has three reporting segments: WSFS Bank, Cash Connect ® , and Wealth and Trust.
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.
ABS and MBS according to Asset-Backed Alert's ABS Database. • During the year, WSFS recognized $3.2 million of nonrecurring income from our partnership with Spring EQ, comprised of the $2.3 million annual earnout and $0.9 million of post-close distributions related to the sale of our equity investment that occurred in the fourth quarter of 2023. • Throughout the year, WSFS exited certain non-strategic businesses and product offerings which included the sales of the Upstart loan portfolio and Powdermill business (which provided tax and other administrative services to family offices), as well as the unwind of a wealth advisory partnership with Commonwealth Financial.
(7) Excludes acquired purchase credit deteriorated loans. 51 Table of Contents Nonperforming assets increased $51.6 million between December 31, 2023 and December 31, 2024. This increase was primarily due to the transfer in of three commercial mortgage relationships totaling $74.1 million and two commercial and industrial relationships totaling $37.7 million during the period.
(6) Excludes acquired purchase credit deteriorated loans. 49 Table of Contents Nonperforming assets decreased $55.3 million between December 31, 2024 and December 31, 2025.
This increase reflects a $32.1 million increase from Cash Connect ® driven by higher ATM bailment volume from new clients added in the fourth quarter of 2023 and first quarter of 2024 and growth in smart safes, $15.2 million in Wealth Management revenue driven by WSFS Institutional Services ® and Bryn Mawr Capital Management, $2.8 million in mortgage banking fees, and a $2.8 million net gain on our Visa B derivative liability established from our previous sale of 360,000 shares in 2Q 2020.
This decrease reflects a $17.2 million decrease from Cash Connect ® driven by lower interest rates and ATM bailment income, a $6.8 million impact from valuation adjustments to our Visa B derivative liability that was established from our previous sale of 360,000 shares in 2Q 2020, and a $4.1 million impairment loss related to one of our equity investments.
Removed
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.
Added
WSFS Institutional Services ® provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles.
Removed
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.
Added
As of December 31, 2025, we service our Clients primarily from 113 offices located in Pennsylvania (58), Delaware (37), New Jersey (14), Florida (2), Nevada (1) and Virginia (1), our ATM network, our website at www.wsfsbank.com , and our mobile app. 44 Notable Items Impacting Results of Operations, Financial Condition and Business Outlook Notable items in 2025 include the following: • EPS was $5.09 and ROA was 1.36%, compared to $4.41 and 1.27%, respectively, for the year ended December 31, 2024. • Net interest margin of 3.87%, compared to 3.82% for the year ended December 31, 2024, driven by deposit repricing actions continued wholesale funding optimization, and higher cash balances, partially offset by lower loan yields due to rate cuts. • Client deposits increased $612.7 million, or 4% , primarily due to growth in Trust deposits, reflecting continued strong performance in this business. • Net loans and leases grew $85.8 million , or 1%, compared to December 31, 2024.
Removed
BMT-DE provides personal trust and fiduciary services to families and individuals across the U.S. and internationally.
Added
Increases in construction loans, commercial & industrial, and residential mortgage were partially offset by decreases in consumer loans and commercial mortgages. • Noninterest income in our Wealth and Trust segment increased 16% compared to December 31, 2024 , driven by growth in WSFS Institutional Services ® . ◦ WSFS Institutional Services ® ended 2025 as the securitization industry's fourth most active trustee for U.S.
Removed
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.
Added
These actions helped to streamline our product offering and organizational focus on our core strategic priorities. ◦ The Upstart portfolio was an unsecured consumer lending portfolio generated through our partnership with Upstart.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+0 added−0 removed7 unchanged
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.
Biggest changeChange in Interest Rate (Basis Points) December 31, 2025 December 31, 2024 % Change in Net Interest Margin (1) Economic Value of Equity (2) % Change in Net Interest Margin (1) Economic Value of Equity (2) 300 19.7% 23.88% 14.9% 18.60% 200 13.4% 24.02% 9.8% 19.15% 100 7.0% 24.10% 4.8% 19.82% 50 4.1% 24.08% 2.3% 20.05% 25 2.7% 24.04% 1.1% 20.17% — —% 23.60% —% 20.31% (25) (0.7)% 23.56% (0.9)% 20.32% (50) (1.3)% 23.46% (1.7)% 20.33% (100) (2.5)% 23.20% (3.2)% 20.30% (200) (5.1)% 22.50% (6.1)% 19.70% (300) (7.5)% 21.20% (9.0)% 18.30% (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 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.
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, 2025 and December 31, 2024.
These fluctuations are difficult to model and estimate. 63
These fluctuations are difficult to model and estimate. 61
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.
We regularly review our interest rate sensitivity and adjust the sensitivity within acceptable tolerance ranges. At December 31, 2025, interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year (interest-sensitive gap) by $1.8 billion.
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.
Our interest-sensitive assets as a percentage of interest-sensitive liabilities within the one-year window was 120.45% at December 31, 2025 compared with 105.28% at December 31, 2024. In addition, the one-year interest-sensitive gap as a percentage of total assets was 8.37% at December 31, 2025 compared to 2.26% at December 31, 2024.
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.
The FOMC lowered the federal funds target rate three times in 2025 for a total of 75 basis points and three times in 2024 for a total of 100 basis points after they increased the target rate four times in 2023 for a total of 100 basis points.

Other WSFS 10-K year-over-year comparisons