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• 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;
−Removed: • Decreases in customer deposits;
+Added: • 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;
1 unchanged sentence
• Increases in foreclosures, delinquencies and client bankruptcies, as well as more restricted access to commercial credit;
−Removed: • 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;
+Added: • 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;
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Future changes in interest rates may reduce the market value of our investment securities, which could impact market confidence in our operations.
−Removed: 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.
+Added: 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.
In addition, our securities portfolio is subject to risk as a result of our exposure to the credit quality and strength of the issuers of the securities or the collateral backing such securities.
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Additionally, the operations of our Cash Connect ® segment depends on us having access to large amounts of cash.
−Removed: 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.
+Added: 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.
Our ability to obtain funds from these sources could become limited, or our costs to obtain such funds could increase, due to a variety of factors, including changes in our financial performance, the imposition of regulatory restrictions on us, or adverse developments in the capital markets, including weakening economic conditions or negative views and expectations about the prospects for the financial services industry as a whole.
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We are subject to extensive federal and state regulation, supervision and examination governing almost all aspects of our operations.
−Removed: 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.
−Removed: 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 .
+Added: 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 .
+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.
The banking laws, regulations and policies applicable to us govern a variety of matters, including certain debt obligations, changes in control, maintenance of adequate capital, and general business operations, including permissible types, amounts and terms of loans and investments, the amount of reserves held against deposits, restrictions on dividends, establishment of new offices, the maximum interest rate that may be charged by law and treatment of clients.
−Removed: 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.
+Added: 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.
Failure to appropriately comply with any such laws, regulations or regulatory policies could result in sanctions by regulatory agencies, civil money penalties or damage to our reputation, all of which could adversely affect our business, results of operations, financial condition or prospects.
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These laws and regulations also provide that we are ultimately responsible to ensure our third party vendors adhere to the same laws and regulations.
−Removed: 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.
+Added: 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.
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Adverse findings in an evaluation of our fair lending compliance could result in a wide variety of sanctions, including damages and civil money penalties, injunctive relief, restrictions on mergers and acquisitions activity, restrictions on expansion, and restrictions on entering new business lines.
−Removed: Private parties may also have the ability to challenge our performance under fair lending laws in private class action litigation.
+Added: 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.
−Removed: The Community Reinvestment Act imposes community investment obligations on insured depository institutions.
+Added: The Community Reinvestment Act requires federal banking regulators to use their supervisory authority to assess depository institutions' record of community investment.
If the Bank does not perform satisfactorily under the Community Reinvestment Act, as determined by the OCC, the Company and the Bank could be restricted in their ability to expand through mergers, acquisitions, and/or the establishment of branches.
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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.
−Removed: 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.
+Added: 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.
The CFPB has broad authority to administer and carry out provisions of the Dodd-Frank Act with respect to the Company's consumer financial products and services and may impose requirements more onerous than those of other bank regulatory agencies.
For example, the Dodd-Frank Act authorizes the CFPB to write rules or bring enforcement actions to prohibit acts or practices that are unfair, deceptive or abusive in connection with consumer financial products or services, and the concept of an "abusive" act or practice did not previously exist in federal banking law.
−Removed: 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.
+Added: 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.
As part of its rulemaking and enforcement activities, the CFPB has adopted interpretations of consumer protection laws that have required many market participants to change their practices and expend substantial resources to do so.
−Removed: 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.
+Added: 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.
There continues to be uncertainty as to how CFPB's strategies and priorities will impact the Company's business and operations.
As noted in “Business - Regulation of the Company,” the Acting Director of the CFPB instructed agency staff to pause most activity, including supervision and enforcement.
−Removed: 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.
+Added: There also has been a reduction in staffing and funding at the CFPB in 2025, which has been challenged in ongoing litigation.
+Added: 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.
Operational Risk
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Our operations depend upon the use of computer programs, algorithms, and other analytical tools.
−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.
+Added: 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.
Additionally, as societal norms, legal requirements, businesses and markets evolve, our technology may not accurately reflect this evolution.
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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.
−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: 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.
Although we devote significant resources and Board oversight and management focus to ensuring the integrity of our systems through information security and business continuity programs, our computer systems, software and networks, and those of our third-party service providers, are vulnerable to external or internal security breaches, acts of vandalism, computer viruses or malware, misplaced or lost data, denial-of-service attacks, programming or human errors, or other similar events.
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The increase in remote work arrangements over the past few years has introduced potential new vulnerabilities to cyber threats.
−Removed: We also face increased cybersecurity risk as we deploy additional technologies and digital solutions, including our website and personalized messaging app.
+Added: We also face increased cybersecurity risk as we deploy additional technologies and digital solutions, including our website and mobile banking app.
We may also face increased cybersecurity risk for a period of time after acquisitions as we transition the acquired entity’s historical systems and networks to our standards.
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We may enter into other key outsourcing relationships in the future and continue to expand our existing reliance on third-party service providers.
−Removed: 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.
+Added: 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.
Our use of third-party service providers also exposes us to the risk of losing intellectual property or confidential information and to other harm, including to our reputation.
Our ability to monitor the activities or performance of third-party service providers may be constrained, which may make it difficult for us to assess and manage the risks associated with these relationships.
+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.
+Added: 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.
+Added: states, have proposed or already adopted laws governing the use, development and deployment of AI technologies.
+Added: 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.
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Errors, breakdowns in controls or other mistakes in the provision of services to clients or in carrying out transactions for our own account can subject us to liability, result in losses or negatively affect our earnings in other ways.
−Removed: 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.
+Added: 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.
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Damage to our reputation could significantly harm our businesses.
−Removed: 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.
+Added: 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.
1 unchanged sentence
Significant harm to our reputation can arise from sources, including economic changes, regulatory scrutiny, employee misconduct, actual or perceived unethical behavior, litigation or regulatory outcomes, failing to deliver minimum or required standards of service and quality, compliance failures, disclosure of confidential information, significant or numerous failures, interruptions or breaches of our information systems, and the activities of our Clients and counterparties, including vendors.
−Removed: In particular, the success of our Wealth Management segment is highly dependent on reputation.
−Removed: 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.
−Removed: 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.
+Added: In particular, the success of our Wealth and Trust segment is highly dependent on reputation.
+Added: 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.
+Added: 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.
We could also suffer significant harm to our reputation if we fail to properly identify and manage potential conflicts of interest.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.