WSFS Financial Corporation announced its financial results for the fourth quarter and full year 2024, reporting diluted EPS of $1.09 for Q4 and $4.41 for the full year. The company achieved a return on average assets (ROA) of 1.21% for Q4 and 1.27% for the full year. Core EPS for Q4 was $1.11, and core ROA was 1.24%, reflecting strong performance.
Net interest margin (NIM) for Q4 2024 was 3.80%, an increase of 2 basis points linked quarter, driven by active management of deposit repricing. Total customer deposits increased by $602.8 million, or 4% quarter-over-quarter, with average noninterest demand deposits growing 6%. The Wealth and Trust franchise delivered a record quarter, showing double-digit growth in Institutional Services.
Gross loans and leases decreased by $123.1 million, or 1% (4% annualized) linked quarter, due to commercial mortgage payoffs and runoff in the Spring EQ and Upstart consumer loan portfolios. However, year-over-year, gross loans and leases increased by $442.6 million, or 3%. Total net credit costs decreased significantly to $8.7 million in Q4, an $11.4 million reduction from the prior quarter, with net charge-offs at 31 basis points, or 20 basis points excluding the Upstart portfolio.
The company provided its outlook for 2025, projecting a full-year core ROA of approximately 1.25%, assuming one 25 basis point rate cut in June. Management expects mid-single digit loan growth in the Commercial portfolio and flat growth in the Consumer portfolio, with WSFS-originated loans offsetting partnership runoff. Net interest margin is anticipated to be around 3.85% for the year.
Core fee revenue is projected to grow low single digits, with the Wealth & Trust segment maintaining its double-digit growth trajectory. This growth is expected despite a decline in Cash Connect revenues due to lower interest rates, which will be more than offset by lower funding costs, leading to higher profit margins for the segment. Net charge-offs are expected to normalize to between 35 to 45 basis points of average loans for the year, excluding Upstart.
The fourth quarter results included a $4.7 million pre-tax impact from an adverse event related to a Cash Connect client, leading to the termination of that relationship. This resulted in a $2.8 million impact to core fee revenue and a $1.9 million impact to core noninterest expense, though the company expects to recover a portion through insurance.
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