3Q 2026
Filed Oct 22, 2026WSFS REPORTS 3Q 2026 EPS OF $1.75, REFLECTING YOY GROWTH OF 28%, ROA OF 1.58% AND NIM OF 3.88%; WEALTH AND TRUST FEES UP 30% YOY
GAAP net income attributable to WSFS rose to $89.3 million from $76.4 million, diluted EPS increased to $1.75 from $1.37, net interest income increased 7% year over year, and Wealth and Trust fee growth was 30%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenue, 3Q 2026GAAP | $287.6M | – | – |
| Net interest income, 3Q 2026GAAP | $196.6M | 2% (not annualized) | 7% |
| Net interest margin, 3Q 2026GAAP | 3.88% | increased 1bp | decreased 3bps |
| Fee revenue, 3Q 2026GAAP | $91M | – | – |
| Core fee revenue, 3Q 2026non-GAAP | $91M | decreased $1.2 million, or 1% | increased $3.0 million, or 3% |
| Provision for credit losses, 3Q 2026GAAP | $8.4M | – | – |
| Total net credit costs, 3Q 2026other | $11.5M | increased $4.4 million | – |
| Noninterest expense, 3Q 2026GAAP | $161.6M | – | – |
| Core noninterest expense, 3Q 2026non-GAAP | $161.5M | decreased $4.8 million, or 3% (not annualized) | decreased $0.7 million, or less than 1% |
| Efficiency ratio, 3Q 2026GAAP | 56.1 | – | – |
| Core efficiency ratio, 3Q 2026non-GAAP | 56.1% | improvement of 223bps | improvement of 345bps |
| Income before taxes, 3Q 2026GAAP | $117.6M | – | – |
| Income tax provision, 3Q 2026GAAP | $28.3M | – | – |
| Effective tax rate, 3Q 2026GAAP | 24.1% | – | – |
| Net income attributable to WSFS, 3Q 2026GAAP | $89.3M | – | – |
| Adjusted net income attributable to WSFS, 3Q 2026non-GAAP | $89.3M | – | – |
| Diluted earnings per share, 3Q 2026GAAP | $1.75 | – | 28% |
| Core earnings per share, 3Q 2026non-GAAP | $1.75 | 5% | 25% |
| Return on average assets, 3Q 2026GAAP | 1.58% | – | – |
| Core return on average assets, 3Q 2026non-GAAP | 1.58% | increased 3bps | increased 10bps |
| Return on average equity, 3Q 2026GAAP | 13.02 | – | – |
| Return on average tangible common equity, 3Q 2026non-GAAP | 20.74% | – | – |
| Pre-provision net revenue, 3Q 2026non-GAAP | $126M | – | – |
| Gross loans and leases, September 30, 2026other | $13.66B | increased $162.6 million, or 1% (not annualized) | increased 5% |
| Net loans and leases, September 30, 2026other | $13.48B | – | – |
| Total client deposits, September 30, 2026other | $18.38B | decreased $619.5 million, or 3% (not annualized) | increased $1.2 billion, or 7% |
| Allowance for credit losses on loans and leases, September 30, 2026other | $185.2M | increased $8.0 million | – |
| Problem assets, September 30, 2026other | $530.4M | increased $57.5 million | decreased 16% |
| Nonperforming assets, September 30, 2026other | $82.7M | increased $1.7 million, or 1bp of total assets | – |
| Delinquencies, September 30, 2026other | $92.7M | decreased $2.9 million, or 3bps of gross loans | decreased 11% |
| Total assets, September 30, 2026GAAP | $22.1B | – | – |
| Total stockholders' equity, September 30, 2026GAAP | $2.60B | decreased $108.8 million, or 4% | – |
| Common Equity Tier 1 capital ratio, September 30, 2026other | 13.74% | – | – |
| Tier 1 leverage ratio, September 30, 2026other | 10.40% | – | – |
| Total Risk-based capital ratio, September 30, 2026other | 15.47% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wealth and TrustGrowth in WSFS Institutional Services®, Private Wealth Management, and BMT of DE; higher deal activity and higher AUM-based fees supported quarterly growth. | $54.7 million fee revenue | increased $2.3 million | increased $12.4 million |
| Cash Connect®Lower ATM volume, lower cash volume, fewer units, and the impact of lower rates reduced revenue; lower funding costs and noninterest expense supported pre-tax income. | $19.3 million net revenue | decreased $0.5 million | decreased $2.8 million |
Capital returns
- Repurchased 748,970 shares of common stock for an aggregate of $59.6 million during 3Q 2026.
- Paid quarterly cash dividends of $10.2 million during 3Q 2026.
- Total capital returns to stockholders through share repurchases and quarterly dividends was $69.8 million.
- Year-to-date 2026 repurchases represent 5.6% of outstanding shares as of December 31, 2025.
- The Board of Directors approved a quarterly cash dividend of $0.20 per share of common stock, payable on November 20, 2026 to stockholders of record as of November 6, 2026.
- WSFS has 8,451,059 shares, or approximately 17% of outstanding shares as of September 30, 2026, available for repurchase.
What drove it
- Net interest income increased primarily from higher average loan balances and higher yields on loans and investment securities versus 2Q 2026.
- Year-over-year net interest income growth reflected lower deposit costs and higher average loan balances, partially offset by lower loan yields following Federal Funds Rate cuts in 2025.
- Wealth and Trust fee revenue increased $12.5 million, or 30%, year over year, including 45% growth in WSFS Institutional Services®, 22% growth in BMT of DE, and 14% growth in Private Wealth Management.
- Core noninterest expense declined from lower external fraud losses, lower medical costs, and lower professional fees, partly offset by higher occupancy expenses and an OREO write-down.
- Gross loans and leases increased 5% year over year, with growth in residential mortgage, home equity, and C&I loans.
- Deposit growth year over year was led by a 16% increase in noninterest demand deposits and 9% money market growth.
Concerns
- Net interest margin was 3.88%, down 3bps from 3Q 2025, primarily due to the impact of 2025 interest rate cuts.
- Total client deposit costs were 1.33%, up 4bps from 2Q 2026, reflecting elevated deposit cost competition and mix shift.
- Total client deposits declined $619.5 million, or 3% (not annualized), from June 30, 2026 following expected transactional-deposit outflows in WSFS Institutional Services® and Commercial.
- Problem assets increased $57.5 million from June 30, 2026, driven by several downgrades, primarily within multifamily and construction.
- Total net credit costs increased $4.4 million from 2Q 2026, including a specific reserve of $8.1 million on a student housing-related loan and a $2.0 million OREO write-down.
- Total stockholders' equity declined $108.8 million, or 4%, during 3Q 2026, primarily reflecting a $131.2 million increase in accumulated other comprehensive loss from market-value decreases on available-for-sale securities and $69.8 million of capital returns.
What to watch
- Whether loan growth continues while deposits and deposit costs remain under competitive pressure.
- The development of the student housing-related loan, multifamily and construction downgrades, problem assets, and credit costs.
- The sustainability of Wealth and Trust fee growth, deal activity in WSFS Institutional Services®, and AUM/AUA growth.
- The effect of interest rates, loan yields, investment yields, and deposit pricing on net interest margin.
- Further accumulated other comprehensive loss and the resulting effect on tangible common equity and book value.
Balance sheet and cash flow
- Total assets were $22.1 billion as of September 30, 2026.
- Cash and due from banks were $1,926,787 thousand as of September 30, 2026.
- Investment securities, available-for-sale were $3,691,117 thousand as of September 30, 2026.
- Investment securities, held-to-maturity were $925,722 thousand as of September 30, 2026.
- Other borrowings were $304,369 thousand as of September 30, 2026.
- Total client deposits were $18,384,086 thousand as of September 30, 2026.
- The loan-to-deposit ratio was 73% at September 30, 2026.
- Unrealized losses on securities available for sale, net of taxes were $(518,520) thousand at September 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
WSFS reported a stronger third quarter, with GAAP net income attributable to WSFS of $89.3 million versus $76.4 million in 3Q 2025 and diluted GAAP EPS of $1.75 versus $1.37. Core EPS was $1.75, up 25% year over year and 5% from 2Q 2026. PPNR was $126.0 million, compared with $107.4 million a year ago and $116.2 million in the prior quarter. GAAP ROA was 1.58%, compared with 1.44% in 3Q 2025, while GAAP ROE was 13.02 compared with 11.25.
Net interest income reached $196.6 million, up 7% from 3Q 2025 and 2% from 2Q 2026. The sequential increase was driven by higher average loan balances and higher yields on loans and investment securities, partly offset by higher deposit costs. NIM was 3.88%, up 1bp sequentially but down 3bps year over year. Management identified elevated deposit pricing competition and mix shift as the reason total client deposit costs rose 4bps sequentially to 1.33%.
Fee diversification remained a central contributor. Core fee revenue was $91.0 million, down $1.2 million sequentially as lower Capital Markets and Cash Connect® revenue more than offset Wealth and Trust growth. It increased $3.0 million year over year, driven by a $12.5 million, or 30%, increase in Wealth and Trust. Wealth and Trust segment fee revenue was $54.7 million, and AUM/AUA rose to $109.5 billion from $101.7 billion at June 30, 2026. Cash Connect® net revenue was $19.3 million, down from both comparison periods, but its pre-tax income was $2.9 million versus $2.3 million a year earlier because lower funding costs and noninterest expense more than offset the revenue decline.
Expense discipline improved the operating profile. GAAP noninterest expense was $161.6 million, and core noninterest expense was $161.5 million, down $4.8 million sequentially and $0.7 million year over year. The core efficiency ratio improved to 56.1% from 58.3% in 2Q 2026 and 59.5% in 3Q 2025. Lower external fraud losses, medical costs, and professional fees supported the quarter, although occupancy expense and credit-related costs increased, including an OREO write-down.
Loan growth and asset quality require continued attention. Gross loans and leases were $13,663 million, up 5% from September 30, 2025, while total client deposits were $18,384 million, up $1.2 billion, or 7%, year over year but down $619.5 million sequentially after expected transactional-deposit outflows. Problem assets increased $57.5 million sequentially, largely from multifamily and construction downgrades, and total net credit costs increased $4.4 million, including an $8.1 million specific reserve on a student housing-related loan. WSFS returned $69.8 million through buybacks and dividends, but total stockholders' equity declined $108.8 million during the quarter, primarily due to a $131.2 million increase in accumulated other comprehensive loss on available-for-sale securities.
Management, verbatim
WSFS continued to perform well in the third quarter with a 25% year-over-year increase in core EPS (2) . Our results include an expanded net interest margin, solid loan growth, and continued strong momentum in our Wealth and Trust franchise, which generated year-over-year fee growth of 30%.
Rodger Levenson, Chairman, CEO and President
Additionally, we continued to execute our capital return framework through dividends and share repurchases, repurchasing nearly six percent of outstanding shares (3) in the first three quarters of 2026.
Rodger Levenson, Chairman, CEO and President
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Gross margin was not reported.
- A total debt figure was not reported.
- Management did not provide a formal outlook section with revenue, expense, tax-rate, or margin targets.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.