WSFS Q3 2026 Earnings: Wealth and Trust Growth Lifts EPS

WSFS Financial Corporation (Nasdaq: WSFS) reported Q3 2026 total net revenue of $287.6 million, up about 6% from $270.5 million a year earlier, while diluted GAAP EPS rose 28% to $1.75 from $1.37. Net interest income and Wealth and Trust both expanded, and lower operating expenses supported profitability, although several credit-related items increased quarterly credit costs.

Core Earnings Results

Net interest income rose 7% year over year as lower deposit costs and higher average loan balances more than offset lower loan yields following the 2025 federal funds rate cuts. GAAP fee revenue increased about 5%, while core fee revenue grew 3%, with the difference reflecting adjustments in the prior-year period.

Profit growth outpaced revenue growth. Net income attributable to WSFS increased about 17% to $89.3 million, helped by expense control and higher revenue, even as the provision for credit losses rose to $8.4 million. Return on average assets improved to 1.58% from 1.44%, while return on average equity increased to 13.0% from 11.3%.

Pre-provision net revenue is a non-GAAP measure that excludes taxes and the provision for credit losses. Core EPS was also $1.75, representing 25% growth from the adjusted prior-year base; the GAAP comparison shows 28% growth because Q3 2025 contained items excluded from core results.

Business and Segment Performance

Wealth and Trust was the principal growth driver, with both fee revenue and net interest income increasing substantially. Cash Connect moved in the opposite direction on revenue, but lower funding and operating costs allowed its pretax income and margin to improve.

Within Wealth and Trust, WSFS Institutional Services fees increased 45%, BMT of Delaware fees rose 22%, and Private Wealth Management fees grew 14%. Higher deal activity and AUM-based fees contributed to the increase, while AUM/AUA benefited from account growth and market appreciation. Higher noninterest deposit balances at Institutional Services also supported segment net interest income.

Cash Connect revenue declined because of lower ATM volume, lower cash volume, fewer serviced units, and the effect of lower rates. Those pressures were more than offset at the pretax-income level by reduced funding costs and lower noninterest expense. The segment continued shifting toward higher-margin smart safe units and managed cash solutions, with smart safe units up 5% year over year.

Profitability, Funding, and the Balance Sheet

Net interest margin was 3.88%, up 1 basis point from Q2 2026 but down 3 basis points from Q3 2025. The sequential improvement reflected higher average loan balances and investment yields, partly offset by deposit pricing competition. Total client deposit costs rose 4 basis points sequentially to 1.33%, but remained 29 basis points below the prior-year level.

Gross loans and leases reached $13.663 billion, increasing 5% year over year. Excluding the credit card portfolio sale and runoff of the Spring EQ portfolio, growth was 7%, led by residential mortgages, home equity, and commercial and industrial loans. Sequentially, the portfolio grew $162.6 million, or 1% before annualization.

Client deposits totaled $18.384 billion, up 7% year over year but down 3% from June 2026. The sequential decline reflected expected transactional deposit outflows from Institutional Services and Commercial, while average deposits increased slightly. Core deposits grew 9% year over year, and noninterest-bearing demand deposits represented 33% of total deposits. The 73% loan-to-deposit ratio left WSFS with capacity to fund additional lending.

Regulatory capital remained above well-capitalized benchmarks, including a 13.74% Common Equity Tier 1 ratio and a 15.47% total risk-based capital ratio. However, stockholders’ equity declined $108.8 million sequentially, primarily because accumulated other comprehensive loss increased by $131.2 million as available-for-sale securities lost market value. Tangible book value per share declined 5% sequentially to $32.67 but remained 2% above the prior-year level.

WSFS repurchased $59.6 million of common stock and paid $10.2 million in dividends during the quarter. Combined capital returns were $69.8 million, while quarterly net income was $89.3 million.

Credit Costs Rose Despite Net Recoveries

WSFS recorded $0.6 million of net loan and lease recoveries, compared with $7.1 million of net charge-offs in Q2 2026. The improvement included $7.6 million of recoveries associated with the payoff of nonperforming assets, but it did not prevent total net credit costs from rising to $11.5 million from $7.1 million sequentially.

The increase was driven by an $8.1 million specific reserve on a student housing-related loan and a $2.0 million write-down of an other real estate owned property. Problem assets rose $57.5 million sequentially to $530.4 million following downgrades concentrated in multifamily and construction, although problem assets remained 16% below the prior-year level and delinquencies reached their lowest level in two years.

Nonperforming assets increased modestly to $82.7 million, primarily because of the student housing-related loan. The allowance for credit losses rose to $185.2 million, with coverage increasing to 1.36% of total loans and leases from 1.32% in the prior quarter.

Recent Insider Transactions

The supplied insider data shows 72,685 shares classified as purchases across 11 transactions and 72,193 shares sold across three transactions during the latest six-month period, resulting in a net increase of 492 shares. Because the purchase category includes stock awards, the aggregate should not be treated as equivalent to open-market buying.

The nine award recipients in the latest records were Francis B. Brake Jr., Christopher T. Gheysens, Michael J. Donahue, David G. Turner, Lynn B. McKee, Eleuthere I. du Pont, Jennifer W. Davis, Karen Dougherty Buchholz, and Anat M. Bird. These transactions are reported objectively and do not, by themselves, establish a view on the company’s outlook.

Risks Investors Need to Watch

• Deposit pricing pressure: Deposit costs increased sequentially as competition remained elevated. Further increases could pressure net interest margin if asset yields do not rise enough to compensate.
• Concentrated credit issues: The student housing-related reserve, OREO write-down, and multifamily and construction downgrades show that specific problem credits can materially affect provisions even when net recoveries are positive.
• Cash Connect volume pressure: Lower ATM and cash volumes continued to reduce segment revenue. Cost reductions protected profit this quarter, but continued revenue contraction could make further margin gains harder to sustain.
• Securities valuation effects on capital: Lower market values for available-for-sale securities increased accumulated other comprehensive loss and reduced tangible book value sequentially, despite positive earnings.

Summary

WSFS delivered higher Q3 2026 revenue and faster earnings growth as net interest income expanded, Wealth and Trust maintained double-digit fee growth, and operating efficiency improved. The main counterweight was credit: specific reserves and property-related costs raised total credit expenses despite net recoveries. Future results will depend on whether Wealth and Trust can sustain its momentum, deposit competition remains manageable, and the recent increase in problem assets stays contained.