WSFS Financial Corporation announced its first quarter 2025 financial results, reporting diluted EPS of $1.12 and a return on average assets (ROA) of 1.29%. The core EPS was $1.13 and core ROA was 1.29%, indicating continued strong performance despite uncertain economic conditions. Net interest margin (NIM) expanded by 8 basis points linked quarter to 3.88%.
Core fee revenue grew 6% from the first quarter of 2024, driven by a 19% year-over-year increase in the Wealth and Trust segment. Loans and deposits were essentially flat quarter-over-quarter, reflecting expected seasonal activity and client caution. Total client deposits decreased by $150.7 million, or 1% linked quarter, primarily due to seasonality and expected outflows in Trust deposits.
The Board of Directors approved a 13% increase in the quarterly dividend to $0.17 per share, alongside an additional share repurchase authorization of 10% of outstanding shares. These capital actions are intended to enhance shareholder value by returning excess capital and providing flexibility for buybacks based on business performance and economic conditions.
Credit metrics remained stable, excluding the impact of a significant charge-off. Net charge-offs increased by $14.3 million to $24.6 million, or 76 basis points annualized of average gross loans, primarily due to a $15.9 million charge-off of an existing nonperforming C&I loan related to office properties. Excluding this specific loan, net charge-offs would have been 27 basis points.
Problem assets to total Tier 1 capital plus ACL ratio increased by 162 basis points to 27.83%, driven by downgrades to two multifamily relationships. The allowance for credit losses (ACL) coverage ratio decreased by 5 basis points to 1.43%.
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