What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-03-02 compared with 2025-02-28 · 116 added, 104 removed, 372 unchanged (37% of the section changed)

8 unchanged sentences

Our mission is simple:

“We Stand for Service®.” Our strategy of “Engaged Associates, living our culture, enriching the communities we serve” focuses on exceeding client expectations, delivering stellar experiences and building client advocacy through highly-trained, relationship-oriented, friendly, knowledgeable and empowered Associates.

As of December 31, 2024, we had six consolidated subsidiaries:

WSFS Bank, The Bryn Mawr Trust Company of Delaware (BMT-DE), Bryn Mawr Capital Management, LLC (BMCM), WSFS Wealth Management, LLC (Powdermill ® ), WSFS SPE Services, LLC, and 601 Perkasie, LLC.

“We Stand for Service ® .”

As of December 31, 2025, the Company's consolidated operating subsidiaries included WSFS Bank, The Bryn Mawr Trust Company of Delaware (BMT-DE), Bryn Mawr Trust Advisors (BMTA), and WSFS SPE Services, LLC.

The Company also has three unconsolidated subsidiaries:

WSFS Capital Trust III, Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II.

WSFS Bank has two wholly-owned subsidiaries:

Beneficial Equipment Finance Corporation (BEFC) and 1832 Holdings, Inc., and one majority-owned subsidiary, NewLane Finance Company (NewLane Finance ® ).

Our banking business had a total loan and lease portfolio of $12.8 billion as of December 31, 2024, which was funded primarily through commercial relationships and client generated deposits.

Subsidiaries of WSFS Bank included 1832 Holdings, Inc.

and one majority-owned subsidiary, NewLane Finance Company (NewLane Finance ® ).

Our banking segment had a net loan and lease portfolio of $12.6 billion as of December 31, 2025.

We have built a $10.0 billion commercial loan and lease portfolio by recruiting seasoned commercial lenders in our markets, offering the high level of service and flexibility typically associated with a community bank and through acquisitions.

We also offer a broad variety of consumer loan products and retail securities brokerage through our retail branches, in addition to mortgage and title services through our branches and WSFS Mortgage ® , our mortgage banking division specializing in a variety of residential mortgage and refinancing solutions.

We also offer a broad variety of consumer loan products and retail securities brokerage through our retail branches.

The Home Lending division offers mortgage banking and title services through our branches and WSFS Mortgage ® , our mortgage banking division specializing in a variety of residential mortgage and refinancing solutions.

We fund our lending businesses primarily with deposits generated through commercial relationships and consumer, wealth and trust client deposits, as well as through our digital banking platforms.

Our leasing business, conducted by NewLane Finance ® , originates small business leases and provides commercial financing to businesses nationwide, targeting various equipment categories including technology, software, office, medical, veterinary and other areas.

In addition, NewLane Finance ® offers captive insurance through its subsidiary, Prime Protect.

Our Cash Connect ® business is a premier provider of ATM vault cash, smart safe (safes that automatically accept, validate, record and hold cash in a secure environment) and other cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry.

Our Cash Connect ® segment is a premier provider of ATM vault cash, smart safe (safes that automatically accept, validate, record and hold cash in a secure environment) and other cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry.

Cash Connect ® services non-bank and WSFS-branded ATMs and smart safes nationwide, and manages approximately $1.3 billion in total cash and services approximately 24,000 non-bank ATMs and 11,900 smart safes nationwide.

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Cash Connect ® also supports 488 owned or branded ATMs for WSFS Bank Clients, which is one of the largest branded ATM networks in our market.

Our Wealth Management business provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients.

Our Wealth and Trust segment provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients.

Combined, these businesses had $97.4 billion of AUM and AUA at December 31, 2025.

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Private Wealth Management serves high-net-worth clients and institutions by providing trustee and advisory services, financial planning, customized investment strategies, brokerage products such as annuities and traditional banking services such as credit and deposit products tailored to its clientele.

Private Wealth Management includes businesses that operate under the Bank’s charter, through a broker/dealer and as a registered investment advisor (RIA).

Private Wealth Management includes businesses that operate under the Bank’s charter and as a registered investment advisor (RIA).

It generates revenue through a percentage fee based on account assets, fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody.

Powdermill ® is a multi-family office specializing in providing independent solutions to high-net-worth individuals, families and corporate executives through a coordinated, centralized approach.

BMT-DE provides personal trust and fiduciary services to families and individuals across the U.S.

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Notable items in 2025 include the following:

• Customer deposits increased $607.4 million, or 4% , driven by the Consumer and Commercial businesses, with growth in time, money market, and noninterest demand deposits.

• During the fourth quarter, WSFS completed the repayment of $800.0 million of borrowings from the Bank Term Funding Program (BTFP).

• EPS was $5.09 and ROA was 1.36%, compared to $4.41 and 1.27%, respectively, for the year ended December 31, 2024.

• Net interest margin of 3.87%, compared to 3.82% for the year ended December 31, 2024, driven by deposit repricing actions continued wholesale funding optimization, and higher cash balances, partially offset by lower loan yields due to rate cuts.

• Client deposits increased $612.7 million, or 4% , primarily due to growth in Trust deposits, reflecting continued strong performance in this business.

• Net loans and leases grew $85.8 million , or 1%, compared to December 31, 2024.

Increases in commercial mortgage and commercial & industrial were partially offset by decreases in construction loans, partially driven by migration into commercial mortgages.

Increases in construction loans, commercial & industrial, and residential mortgage were partially offset by decreases in consumer loans and commercial mortgages.

• Noninterest income in our Wealth and Trust segment increased 16% compared to December 31, 2024 , driven by growth in WSFS Institutional Services ® .

◦ WSFS Institutional Services ® ended 2025 as the securitization industry's fourth most active trustee for U.S.

ABS and MBS according to Asset-Backed Alert's ABS Database.

• During the year, WSFS recognized $3.2 million of nonrecurring income from our partnership with Spring EQ, comprised of the $2.3 million annual earnout and $0.9 million of post-close distributions related to the sale of our equity investment that occurred in the fourth quarter of 2023.

• Throughout the year, WSFS exited certain non-strategic businesses and product offerings which included the sales of the Upstart loan portfolio and Powdermill business (which provided tax and other administrative services to family offices), as well as the unwind of a wealth advisory partnership with Commonwealth Financial.

These actions helped to streamline our product offering and organizational focus on our core strategic priorities.

◦ The Upstart portfolio was an unsecured consumer lending portfolio generated through our partnership with Upstart.

The impacts from the sale included a net charge-off of $5.2 million against previous reserves of $9.9 million, resulting in a provision release of $4.7 million.

• Returned $324.7 million of capital to shareholders through $287.5 million of share repurchases and $37.2 million of quarterly dividends.

Under the Company's share repurchase program, 5,439,981 shares of common stock were repurchased at an average price of $52.86 per share .

• Fee revenue grew by 18% , primarily driven by Cash Connect and Wealth Management, resulting in a fee revenue ratio of 32.5% compared to 28.5% for the prior year.

Wealth Management fee revenue grew 12% to a record $148.1 million.

• Recognized $4.3 million of nonrecurring income from our partnership with Spring EQ, comprised of the $2.3 million annual earnout and $2.0 million of post-close distributions related to the sale of our equity investment in Spring EQ that occurred in the fourth quarter of 2023.

• Our Wealth Management segment completed the conversions of its trust accounting system and client portal.

These conversions were executed as part of our Bryn Mawr Trust integration plan.

• The Bank and the Company continue to be well above well-capitalized across all measures of regulatory capital, with total common equity tier 1 capital of 13.88% and 13.81%, respectively, and total risk-based capital of 15.13% and 15.77%, respectively.

• In June 2024, Moody's Investor Services reaffirmed the Company's investment-grade issuer rating of Baa2 with a stable outlook and in August 2024, Kroll Bond Rating Agency reaffirmed the Company's senior unsecured debt rating of A-.

We believe the ratings reaffirmations reflect the benefits of our diversified business model, our strong capital levels, earnings, liquidity, and asset quality.

• During the year, we held our second annual "We Stand for Service Day", during which nearly 1,500 of our Associates volunteered at more than 130 community organizations across the Greater Philadelphia, Southern New Jersey and Delaware region.

In addition, WSFS Associates surpassed the Bank's 2024 volunteer commitment goal of 24,000 hours of service.

• The Board approved a 13% increase in the quarterly cash dividend to $0.17 per share of common stock as well as an incremental share repurchase authorization of 10% of outstanding shares as of March 31, 2025.

• The Company and the Bank continue to be well-capitalized across all measures of regulatory capital, with total common equity tier 1 capital of 13.92% and 14.06%, respectively, and total risk-based capital of 15.67% and 15.25%, respectively.

• In December, the Company issued $200.0 million of senior notes due 2035 (the 2035 Notes).

The 2035 Notes mature on December 15, 2035 and have a fixed coupon rate of 5.375% from issuance until December 15, 2030 and a variable coupon rate equal to the benchmark rate (which is expected to be three-month term SOFR), reset quarterly, plus 1.89% from December 15, 2030 until maturity.

The proceeds from this issuance were concurrently used to redeem $150.0 million of Fixed-to-Floating Senior Notes due 2030 (the 2030 Notes).

• WSFS completed the redemption of $70.0 million fixed-to-floating rate subordinated notes due 2027 (the 2027 Notes) acquired from Bryn Mawr Trust using our other operating cash flows.

Subsequent Events

In February 2026, the Company received payment for loans that were previously charged off in the first quarter of 2025 to a fund invested in office properties.

In the first quarter of 2026, the Company will recognize a recovery of $15.7 million (against the first quarter 2025 charge-off of $15.9 million) as well as the payoff of a $2.5 million nonperforming loan, specific to this transaction.

Management will update its previously announced 2026 net charge-off outlook as part of its first quarter 2026 Earnings Release.

FINANCIAL CONDITION

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The increase is primarily comprised of the following (in descending order of magnitude):

• Net loans and leases held for investment increased $413.0 million, primarily due to increases of $229.4 million in commercial mortgages, $116.1 million in commercial and industrial loans, $94.3 million in residential mortgage loans, $87.6 million in owner-occupied commercial loans, and $74.3 million in consumer loans (primarily from Spring EQ home equity loans).

Construction loans decreased $203.4 million partially due to the migration of construction loans to permanent commercial mortgage and owner-occupied commercial loans.

• Other assets increased $145.1 million, primarily driven by a $63.8 million receivable due to the settlement timing of ACH payments, $18.8 million from the transfer of three properties to held for sale, an $18.3 million increase in derivatives from our Capital Markets business due to changes in fair value, $17.9 million in deferred taxes, and $12.5 million driven by new low-income housing tax credit investments.

• Total cash and cash equivalents increased $61.9 million, primarily due to increased deposits, partially offset by the repayment of borrowings from the BTFP and increased lending activity.

• Total cash and cash equivalents increased $544.3 million, primarily due to higher deposits.

• Net loans and leases held for investment increased $85.8 million due to increases in construction loans of $191.8 million primarily from draws on existing commitments, $140.5 million in commercial and industrial loans, and $124.8 million in residential mortgage loans.

These increases were partially offset by decreases in consumer loans of $191.9 million primarily driven by the Upstart portfolio sale and runoff of the Spring EQ portfolio, $114.5 million in commercial mortgages primarily due to the payoff of several large loans, and $36.3 million in owner-occupied commercial loans

• Other assets decreased $87.3 million, primarily driven by a $55.0 million decrease in low-income housing tax credit investments and a $34.9 million decrease in derivatives from our Capital Markets business due to changes in fair value, partially offset by a $15.2 million increase in receivables due to the settlement timing of ACH payments.

• Goodwill and intangible assets decreased $18.3 million due to scheduled amortization and impacts from the sale of the WSFS Wealth Management, LLC (dba Powdermill Financial Solutions) business.

• Total investment securities decreased $15.2 million:

◦ Investment securities, available-for-sale decreased $335.9 million, primarily due to repayments of $350.4 million and decreased market values on available-for-sale securities of $49.8 million, partially offset by $67.4 million in purchases .

◦ Investment securities, held to maturity decreased $43.4 million primarily due to repayments, maturities and calls of $61.3 million, partially offset by $14.8 million of amortization of net unrealized losses on available-for-sale securities transferred to held-to-maturity.

• Premises and equipment decreased $18.5 million primarily driven by the transfer of three properties to held for sale.

◦ Investment securities, held to maturity decreased $46.8 million primarily due to repayments, maturities and calls of $62.2 million, partially offset by $12.4 million of amortization of net unrealized losses on securities transferred from available-for-sale.

◦ Investment securities, available-for-sale increased $31.6 million, primarily due to a net $212.2 million increase in market value on available-for-sale securities and $203.0 million in purchases, partially offset by repayments of $380.6 million .

Total liabilities increased $351.1 million, or 2%, to $18.6 billion at December 31, 2025 compared to the prior year, primarily comprised of the following (in descending order of magnitude):

• Total deposits increased $555.7 million, primarily driven by the Consumer and Commercial businesses, with growth in time, money market, and noninterest demand deposits.

• Other liabilities increased $74.3 million primarily due to an increase of $53.1 million in collateral held on derivatives and derivative liabilities and $12.8 million due to performance-based incentive increases.

• FHLB advances increased $51.0 million due to favorable pricing terms.

• Other borrowed funds decreased $562.9 million primarily due to the repayment of borrowings from the BTFP.

• Total deposits increased $612.7 million, primarily driven by the Wealth and Trust segment, with growth in noninterest demand and money market deposits.

• Other liabilities decreased $162.2 million primarily due to a decrease of $162.4 million in collateral held on derivatives and derivative liabilities.

• FHLB advances decreased $51.0 million due to wholesale funding optimization.

• Senior and subordinated debt decreased $21.7 million due to the redemption of the 2030 Notes and 2027 Notes, partially offset by the issuance of the 2035 Notes.

Stockholders’ equity increased $148.8 million to $2.7 billion at December 31, 2025 compared to the prior year.

The increase was primarily due to earnings of $263.7 million during the year, partially offset by significant capital returns to shareholders ($96.3 million from the repurchase of shares of common stock under our stock repurchase plan as well as payment of dividends on our common stock of $35.8 million), and an increase of $30.9 million in accumulated other comprehensive loss due to market value decreases on investment securities.

The increase was primarily due to earnings of $287.3 million during the year and a decrease of $179.3 million in accumulated other comprehensive loss due to market value increases on investment securities, partially offset by significant capital returns to shareholders ($287.5 million from the repurchase of shares of common stock under our stock repurchase plan as well as payment of dividends on our common stock of $37.2 million).

We repurchased 5,439,981 and 2,049,739 shares of our common stock in 2025 and 2024, respectively.

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Under the Prompt Corrective Action framework of the Federal Deposit Insurance Corporation Act, depository institutions that are not classified as well-capitalized are subject to various restrictions regarding capital distributions, payment of management fees, acceptance of brokered deposits and other operating activities.

At December 31, 2024, the Bank was in compliance with regulatory capital requirements and all of its regulatory ratios exceeded “well-capitalized” regulatory benchmarks.

The Bank’s December 31, 2024 common equity Tier 1 capital ratio of 13.88%, Tier 1 capital ratio of 13.88%, total risk based capital ratio of 15.13% and Tier 1 leverage capital ratio of 11.03%, all remain substantially in excess of “well-capitalized” regulatory benchmarks, the highest regulatory capital rating.

In addition, and not included in the Bank's capital, the holding company held $275.4 million in cash to support potential dividends, acquisitions and strategic growth plans.

At December 31, 2025, the Bank and the Company were in compliance with regulatory capital requirements and all of their regulatory ratios exceeded “well-capitalized” regulatory benchmarks.

For the capital position of the Bank and the Company, refer to Note 13 of the Consolidated Financial Statements.

In addition, and not included in the Bank's capital, the Company separately held $254.5 million in cash to support share repurchases, potential dividends, acquisitions, strategic growth plans and other general corporate purposes.

We manage our liquidity and funding needs through our Treasury function and our Asset/Liability Committee.

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As of December 31, 2025, the Company has $1.7 billion in cash, cash equivalents, and restricted cash.

Our estimated uninsured deposits were $6.4 billion, or 38% of total customer deposits, and our estimated unprotected deposits (uninsured and uncollateralized) were $5.2 billion, or 31% of total customer deposits.

Our estimated uninsured deposits were $7.1 billion, or 40% of total client deposits, and our estimated unprotected deposits (uninsured and uncollateralized) were $5.3 billion, or 30% of total Client deposits.

As of December 31, 2025, the Company had a readily available, secured borrowing capacity of $5.9 billion from the FHLB and $2.3 billion through the Federal Reserve Discount Window.

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Cash provided by operating activities was $220.0 million, primarily reflecting the cash impact of earnings.

Cash used for investing activities was $66.7 million primarily due to purchases of loans held for investment of $269.6 million and a $138.3 million net increase in loans and leases.

These outflows were partially offset by net repayments of available-for-sale and held-to-maturity debt securities of $283.0 million and $61.3 million, respectively.

Cash used by financing activities was $91.2 million, primarily due to the net repayment of $565.0 million of BTFP borrowings, $96.3 million for repurchases of common stock under the previously announced stock repurchase plan, and common stock dividends of $35.8 million, partially offset by a $557.7 million net increase in deposits and $51.0 million for the receipt of fixed rate FHLB term advances.

Cash provided by investing activities was $124.9 million primarily due to repayments of AFS and HTM securities of $380.6 million and $62.2 million, respectively, partially offset by $203.0 million of purchases of AFS securities and a $117.7 million net increase in loans and leases.

Cash provided by financing activities was $199.5 million, primarily due to a $604.3 million net increase in deposits and $200.0 million from the issuance of the 2035 Notes, offset by $290.3 million for repurchases of common stock under the previously announced stock repurchase plan, $220.0 million for the redemption of senior and subordinated debt, $51.0 million for the redemption of fixed rate FHLB term advances, and $37.2 million for the payment of quarterly dividends.

Our primary cash contractual obligations relate to operating leases, long-term debt, credit obligations, and data processing.

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For additional information on our operating leases see Note 9 to the Consolidated Financial Statements.

At December 31, 2024, we had obligations for principal payments on long-term debt including $51.0 million of FHLB advances, $67.0 million for our trust preferred borrowings, due June 1, 2035, $23.8 million for our trust preferred borrowings, due December 15, 2034, $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027, and $150.0 million for our senior debt, due December 15, 2030.

We are also contractually obligated to make interest payments on our long-term debt through their respective maturities.

At December 31, 2025, we had obligations for principal payments on long-term debt including $200.0 million for our senior debt due December 15, 2035, $67.0 million for our trust preferred borrowings due June 1, 2035, and $24.0 million for our trust preferred borrowings due December 15, 2034.

We are also contractually obligated to make interest payments on our long-term debt through their respective maturities.

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Total nonaccruing loans 71,898 122,181

122,181 74,185

Other real estate owned 200 5,204

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(1) Includes nonaccruing troubled loans.

(2) Includes nonaccrual loans held-for-sale as of December 31, 2023

(2) Includes U.S.

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(6) Excludes acquired purchase credit deteriorated loans.

Nonperforming assets increased $51.6 million between December 31, 2023 and December 31, 2024.

This increase was primarily due to the transfer in of three commercial mortgage relationships totaling $74.1 million and two commercial and industrial relationships totaling $37.7 million during the period.

These inflows were partially offset by partial charge-offs on some of the commercial mortgage and commercial and industrial relationships totaling $14.2 million, several smaller payoffs, and the continued collection of principal payments on the majority of these loans.

The ratio of nonperforming assets to total assets increased from 0.37% at December 31, 2023 to 0.61% at December 31, 2024.

Nonperforming assets decreased $55.3 million between December 31, 2024 and December 31, 2025.

This decrease was primarily due to the payoff of three existing nonperforming commercial loans and the charge-off of an existing nonperforming C&I loan to a fund that is invested in office properties, partially offset by the migration of a land development loan.

The ratio of nonperforming assets to total assets decreased from 0.61% at December 31, 2024 to 0.34% at December 31, 2025.

The following table summarizes the changes in nonperforming assets during the periods indicated:

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Transfers to accrual (1,529) (15,653)

(15,653) (20,263)

Charge-offs (73,983) (64,041)

Ending balance $ 72,098 $ 127,385

(1) 2023 includes impact of ASU No.

2022-02 adoption.

The timely identification of problem loans is a key element in our strategy to manage our loan portfolio.

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2025 compared with 2024

We recorded net income attributable to WSFS of $263.7 million, or $4.41 per diluted common share, for the year ended December 31, 2024, a decrease of $5.5 million compared to $269.2 million, or $4.40 per diluted common share, for the year ended December 31, 2023.

• Net interest income for the year ended December 31, 2024 was $705.4 million, a decrease of $19.7 million compared to 2023, primarily due to continued deposit mix shift and growth in higher priced deposit products over the past year, partially offset by higher loan volumes and yields.

We recorded net income attributable to WSFS of $287.3 million, or $5.09 per diluted common share, for the year ended December 31, 2025, an increase of $23.7 million compared to $263.7 million, or $4.41 per diluted common share, for the year ended December 31, 2024.

• Net interest income for the year ended December 31, 2025 was $726.1 million, an increase of $20.6 million compared to 2024, primarily due to lower deposit and wholesale funding costs as well as higher cash balances from growth in average deposits.

The increase was partially offset by lower loan yields due to rate cuts.

See “Net Interest Income” for further information.

• Our provision for credit losses decreased $26.7 million in 2024, primarily driven by a lower provision on our consumer portfolio due to the runoff of our Upstart portfolio and higher provisions on our owner-occupied and construction portfolios in the prior year, partially offset by loan growth.

• Our provision for credit losses decreased $12.2 million in 2025.

The current year provision was impacted by charge-offs and new originations, partially offset by the reduction in the allowance due to the Upstart loan sale.

See “Provision/Allowance for Credit Losses” for further information.

• Noninterest income increased $51.0 million in 2024, primarily due to increases from Cash Connect ® driven by higher ATM bailment volume and growth in smart safes, Wealth Management driven by WSFS Institutional Services ® and Bryn Mawr Capital Management, mortgage banking income, and a gain on our Visa B derivative liability.

• Noninterest income decreased $1.0 million in 2025, primarily due to a decrease in Cash Connect ® driven by rates and lower ATM bailment income, the impact of valuation adjustments to our Visa B derivative liability, and an impairment loss related to one of our equity investments, partially offset by an increase from Wealth and Trust driven by WSFS Institutional Services ® and BMT-DE and returns on derivative collateral.

See “Noninterest Income” for further information.

• Noninterest expense increased $76.1 million in 2024, primarily due to increases in salaries and benefits from annual performance-based increases, talent additions in key business lines and increased medical benefits costs, Cash Connect ® funding costs, and equipment expense as we continued to invest in technology, including a new Trust accounting system and client portal.

These increases were partially offset by decreases in occupancy expense and FDIC expenses related to the FDIC special assessment charged in 2023 to recover losses to the Deposit Insurance Fund related to closures of certain banks.

• Noninterest expense decreased $1.5 million in 2025, primarily due to a decrease in other operating expense driven by lower Cash Connect ® funding costs and other productivity measures, partially offset by increases in salaries and benefits from performance-based increases and equipment expense.

See “Noninterest Expense” for further information.

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Interest-earning assets:

Commercial loans and leases $ 5,161,318 $ 362,909 7.04 % $ 5,041,280 $ 346,389 6.88 %

Commercial loans $ 4,615,946 $ 294,129 6.39 % $ 4,524,282 $ 308,005 6.82 %

Commercial mortgage loans 4,859,468 320,174 6.59 4,937,177 349,507 7.08

Commercial leases 623,005 54,536 8.75 637,036 54,904 8.62

Residential 998,405 53,504 5.36 911,345 46,094 5.06

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Savings 1,437,130 6,580 0.46 1,535,151 7,314 0.48

Customer time deposits 1,998,134 84,871 4.25 1,571,682 45,184 2.87

Total interest-bearing customer deposits 11,558,600 308,498 2.67 10,741,143 199,756 1.86

Client time deposits 2,082,820 78,562 3.77 1,998,134 84,871 4.25

Total interest-bearing client deposits 11,903,412 278,257 2.34 11,558,600 308,498 2.67

Brokered deposits 79 3 3.80 4,577 178 3.89

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(4) Includes federal funds purchased.

Net interest income decreased $19.7 million, or 3%, to $705.4 million in 2024, compared to 2023 primarily due to continued deposit mix shift and growth in higher priced deposit products, partially offset by higher loan volumes and yields.

Net interest margin decreased 29 bps to 3.82% in 2024 from 4.11% in 2023.

The decrease was primarily due to 54 bps decrease from the mix shift and growth in higher priced deposit products, partially offset by 21 bps from higher loan yields.

While average loan yields were higher year-over-year for 2024, as a result of the interest rate environment further described within "Item 1A.

Risk Factors," loan yields ended the year below the full-year average.

Net interest income increased $20.6 million, or 3%, to $726.1 million in 2025, compared to 2024 driven by lower deposit and wholesale funding costs as well as higher cash balances from growth in average deposits .

The increase was partially offset by lower loan yields due to rate cuts .

Net interest margin increased 5 bps to 3.87% in 2025 from 3.82% in 2024.

The increase was primarily due to deposit repricing actions, continued wholesale funding optimization, and higher cash balances, partially offset by lower loan yields.

The following table provides certain information regarding changes in net interest income attributable to changes in the volumes of interest-earning assets and interest-bearing liabilities and changes in the rates for the periods indicated.

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Interest Income:

Commercial loans and leases (1)

Commercial loans (1)

$ 6,087 $ (19,963) $ (13,876)

Commercial mortgage loans (5,435) (23,898) (29,333)

Commercial leases (1,201) 833 (368)

Residential 4,572 2,838 7,410

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Other interest-earning assets 22,803 (7,533) 15,270

Favorable 63,583 23,477 87,060

Favorable (unfavorable) 14,686 (58,580) (43,894)

Interest expense:

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Savings (444) (290) (734)

Customer time deposits 14,316 25,371 39,687

Client time deposits 3,513 (9,822) (6,309)

Brokered deposits (171) (4) (175)

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Other borrowed funds (15,174) (14,659) (29,833)

Unfavorable 37,775 68,950 106,725

Favorable (1,899) (62,644) (64,543)

Net change, as reported $ 16,585 $ 4,064 $ 20,649

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For the year ended December 31, 2025, we recorded a provision for credit losses of $49.2 million, a net change of $12.2 million, compared to a provision for credit losses of $61.4 million in 2024.

The decrease was primarily driven by a lower provision on our consumer portfolio due to the runoff of our Upstart portfolio and higher provisions on our owner-occupied and constructions portfolios in 2023 driven by economic uncertainty in the commercial real estate market, partially offset by loan growth.

The current year provision was primarily driven by charge-offs and new originations in our C&I, Construction, and Residential Mortgage, partially offset by the reduction in the allowance due to the sale of the Upstart loans.

The decrease was due to favorable migration when compared to the prior period and payoffs of several large nonperforming assets, as well a provision release associated with the Upstart loans sale.

The ACL was $182.5 million at December 31, 2025 compared to $195.3 million at December 31, 2024.

The increase of the ACL was primarily due to net loan growth, as well as increases in criticized loan levels in the commercial mortgages portfolio and specific reserves on certain commercial loans.

The ratio of allowance for credit losses to total loans and leases was 1.48% at December 31, 2024 and 1.46% at December 31, 2023.

Net charge-offs were $52.3 million for the year ended December 31, 2024 compared to $53.8 million for the year-ended December 31, 2023.

The decrease in net charge-offs was primarily driven by our commercial and industrial portfolio, offset by higher charge-offs in commercial mortgages and commercial small business leases portfolios.

The following tables detail the allocation of the ACL and show our net charge-offs (recoveries) by portfolio category:

The decrease of the ACL was primarily due to the resolution of several problem loans as well as the Upstart loan sale, partially offset by additional reserve on accounts receivable for certain fee-based businesses.

The ratio of allowance for credit losses to total loans and leases decreased to 1.36% at December 31, 2025 from 1.48% at December 31, 2024 due to a decrease of eleven basis points driven by the sale of the Upstart loans and resolution of several large nonperforming assets, which was offset by growth in C&I and residential mortgages.

The following tables detail the allocation of the ACL on loans and leases and show our net charge-offs (recoveries) by portfolio category:

(Dollars in thousands) Commercial and Industrial Owner-

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Average loan balance $ 2,671,383 $ 1,944,563 $ 3,940,590 $ 918,878 $ 623,005 $ 993,870 $ 1,965,557 $ 13,057,846

Ratio of net charge-offs (recoveries) to average gross loans 0.33 % NMF 0.14 % — % 2.72 % (0.01) % 1.00 % 0.40 %

Ratio of net charge-offs (recoveries) to average gross loans 1.02 % 0.01 % 0.10 % 0.53 % 1.83 % (0.02) % 0.60 % 0.45 %

(Dollars in thousands) Commercial and Industrial Owner-

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Average loan balance $ 2,586,833 $ 1,937,449 $ 3,991,686 $ 945,491 $ 637,036 $ 908,368 $ 2,088,699 $ 13,095,562

Ratio of net charge-offs (recoveries) to average gross loans 0.73 % 0.01 % 0.01 % 0.03 % 2.32 % (0.03) % 1.08 % 0.44 %

Ratio of net charge-offs (recoveries) to average gross loans 0.33 % NMF 0.14 % — % 2.72 % (0.01) % 1.00 % 0.40 %

(1) Excludes reverse mortgages.

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Noninterest Income

Noninterest income increased $51.0 million to $340.9 million in 2024 from $289.9 million in 2023.

This increase reflects a $32.1 million increase from Cash Connect ® driven by higher ATM bailment volume from new clients added in the fourth quarter of 2023 and first quarter of 2024 and growth in smart safes, $15.2 million in Wealth Management revenue driven by WSFS Institutional Services ® and Bryn Mawr Capital Management, $2.8 million in mortgage banking fees, and a $2.8 million net gain on our Visa B derivative liability established from our previous sale of 360,000 shares in 2Q 2020.

Our diverse fee-based businesses support sustainability of noninterest income through economic cycles.

Noninterest income decreased $1.0 million to $339.9 million in 2025 from $340.9 million in 2024.

This decrease reflects a $17.2 million decrease from Cash Connect ® driven by lower interest rates and ATM bailment income, a $6.8 million impact from valuation adjustments to our Visa B derivative liability that was established from our previous sale of 360,000 shares in 2Q 2020, and a $4.1 million impairment loss related to one of our equity investments.

These decreases were partially offset by a $23.3 million increase in Wealth and Trust revenue, primarily driven by WSFS Institutional Services ® and BMT-DE, as well as $5.0 million from returns on derivative collateral.

Noninterest Expenses

Noninterest expense increased $76.1 million to $637.7 million in 2024 from $561.6 million in 2023.

The increase was primarily due to increases of $43.5 million in salaries and benefits costs from annual performance-based increases, talent additions in key business lines and higher medical benefits costs, $37.1 million in other operating expense driven by higher funding costs from Cash Connect ® , and $5.5 million in equipment expense as we continued to invest in technology, including a new Trust accounting system and client portal.

These increases were partially offset by a $4.6 million decrease in occupancy expense and a $3.7 million decrease in FDIC expenses related to the FDIC special assessment charged in 2023 to recover losses to the Deposit Insurance Fund related to closures of certain banks.

Noninterest expense decreased $1.5 million to $636.2 million in 2025 from $637.7 million in 2024.

The decrease was primarily due to a $30.5 million decrease in other operating expense driven by lower funding costs from Cash Connect ® as well as other productivity measures, partially offset by increases of $24.1 million in salaries and benefits costs due to performance-based increases and talent additions in key business areas and $5.2 million in equipment expense.

We recorded $93.4 million of income tax expense for the year ended December 31, 2025 compared to $83.8 million for the year ended December 31, 2024.

The decrease in income tax expense was primarily driven by a decrease in income before taxes of $18.0 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.

The increase in income tax expense was primarily driven by an increase in income before taxes of $33.4 million for the year ended December 31, 2025 compared to the year ended December 31, 2024.

The effective tax rates for the years ended December 31, 2025 and 2024 were 24.5% and 24.1%, respectively.

The effective tax rate for year ended December 31, 2024 decreased primarily due to our decision to surrender certain BOLI policies in 2023 that resulted in $7.1 million of tax expense.

The effective tax rate for year ended December 31, 2025 increased primarily due to certain tax credits recognized in 2024.

The effective tax rate reflects the recognition of certain tax benefits in the financial statements including those benefits from tax-exempt interest income, income from bank-owned life insurance policies, various federal income tax credits, and excess tax benefits from recognized stock compensation.

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We frequently analyze our projections of taxable income and make adjustments to our provision for income taxes accordingly.

On July 4, 2025, the One Big Beautiful Bill Act was signed into law by President Trump in the United States.

The legislation introduces several changes to the U.S.

corporate income tax system, including the immediate expensing of qualifying research and development expenditures and the permanent extension of select provisions originally enacted under the Tax Cuts and Jobs Act.

The legislation has multiple effective dates and is not expected to have a material impact on the Company.

SEGMENT INFORMATION

For financial reporting purposes, our business has three reporting segments:

WSFS Bank, Cash Connect ® , and Wealth Management.

WSFS Bank, Cash Connect ® , and Wealth and Trust.

The WSFS Bank segment provides loans and leases and other financial products to Commercial and Consumer Clients.

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Cash Connect ® services non-bank and WSFS-branded ATMs and smart safes nationwide.

The Wealth Management segment provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients.

The Wealth and Trust segment provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional clients.

WSFS Bank Segment

The WSFS Bank segment income before taxes decreased $22.0 million, or 9%, in 2024 compared to 2023.

The decrease was driven by an increase in salaries, benefits, and other compensation of $34.5 million, or 15%, largely due to talent additions in key business lines including Commercial and Technology, and a decrease in net external client interest income of $11.6 million, or 2%, driven by growth in higher-priced deposit products, partially offset by higher loan yields.

The decrease in income before taxes was partially offset by a $26.8 million, or 31%, decrease in provision for credit losses, primarily due to lower provision on our consumer portfolio due to the runoff of our Upstart portfolio and higher provisions on our owner-occupied and constructions portfolios in 2023 driven by economic uncertainty in the commercial real estate market, partially offset by loan growth.

WSFS Bank segment net loans and leases held for investment increased by $0.4 billion to $12.6 billion, driven by commercial loan growth within the commercial mortgage, commercial and industrial, and owner-occupied portfolios, residential mortgage loans and consumer loans (primarily from Spring EQ home equity loans), and was partially offset by a decrease in construction loans partially due to the migration to permanent commercial mortgage and owner-occupied commercial loans.

Customer deposits increased by $0.6 billion to $14.6 billion, driven by growth in money market and time deposits.

The WSFS Bank segment income before taxes increased $8.4 million, or 4%, in 2025 compared to 2024.

The increase was driven by a $17.9 million, or 29%, decrease in provision for credit losses and a $10.2 million increase in net external Client interest income.

The decrease in provision for credit losses was primarily due to favorable migration when compared to the prior period, payoffs of several large nonperforming assets, and a provision release associated with the Upstart loan sale.

The increase in net interest income was driven by lower deposit and wholesale funding costs.

The increase in income before taxes was partially offset by an increase in salaries, benefits, and other compensation expense of $15.9 million, or 6%, largely due to performance-based increases and talent additions in key businesses.

WSFS Bank segment net loans and leases held for investment was essentially flat at $12.6 billion, with growth in construction, residential mortgage, and commercial and industrial, offset by a decrease in consumer loans driven by the runoff of our Spring EQ portfolio and the sale of the Upstart loans, as well as a decrease in commercial mortgages.

Client deposits decreased by $0.1 billion to $14.5 billion, primarily driven by decreases in time deposits and interest-bearing demand deposits, partially offset by growth in money market and noninterest-bearing demand deposits.

Cash Connect ® Segment

The Cash Connect ® segment income before taxes decreased to $1.0 million in 2024 from $4.2 million in 2023.

The decrease was primarily due to one-time charges during 2024 associated with the termination of a longstanding Client relationship during the fourth quarter totaling $4.7 million, partially offset by higher ATM bailment volume from new clients added in the fourth quarter of 2023 and first quarter of 2024 and double digit growth in smart safes.

The full-year 2024 ROA for the Cash Connect ® segment decreased 63 bps to 0.17% compared to 0.80% for the full-year 2023 primarily due to the termination of the vault cash relationship described above.

The Cash Connect ® segment income before taxes increased to $9.8 million in 2025 from $1.0 million in 2024.

The increase was primarily due to a decrease in other operating expense driven by lower funding costs and one-time charges during 2024 associated with the termination of a longstanding Client relationship totaling $4.7 million.

The full-year 2025 profit margin for the Cash Connect ® segment increased to 11.51% from 0.99% for the full-year 2024 due to the reasons described above.

Cash Connect ® had $1.3 billion in total cash managed at December 31, 2025 and $1.6 billion at December 31, 2024.

At year-end 2025, Cash Connect ® serviced approximately 24,000 non-bank ATMs compared to approximately 28,600 at year-end 2024 and approximately 11,900 smart safes nationwide compared to approximately 10,000 smart safes at year-end 2024.

Wealth Management Segment

The Wealth Management segment income before taxes increased $7.2 million in 2024 compared to 2023, primarily attributable to growth in our institutional trust activity and Bryn Mawr Capital Management, partially offset by increases in salaries and benefits as a result of talent additions to support future growth.

At December 31, 2024, Wealth Management had AUA/AUM of $89.4 billion, a 15% increase from 2023 balances.

WSFS Institutional Services ® ended 2024 as the securitization industry's fourth most active trustee by number of deals for U.S.

Wealth and Trust Segment

The Wealth and Trust segment income before taxes increased $16.1 million in 2025 compared to 2024, primarily driven by fee revenue growth from WSFS Institutional Services ® and BMT-DE, partially offset by increases in salaries and benefits as a result of performance-based incentive increases and talent additions to support future growth.

At December 31, 2025, Wealth and Trust had AUA/AUM of $97.4 billion, a 9% increase from 2024 balances.

WSFS Institutional Services ® ended 2025 as the securitization industry's fourth most active trustee for U.S.

ABS and MBS according to Asset-Backed Alert’s ABS Database.

The Wealth and Trust segment net loans held for investment increased $53.9 million to $445.7 million, primarily driven by growth in consumer and commercial loans.

Client deposits increased $0.7 billion to $3.1 billion, primarily driven by Institutional Services.

Segment financial information for the years ended December 31, 2025, 2024 and 2023 is provided in Note 21 to the Consolidated Financial Statements.

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Money market 4,496,159 — — — 4,496,159

Customer time deposits 2,016,630 112,716 527 — 2,129,873

Client time deposits 1,919,854 88,520 412 61 2,008,847

Trust preferred borrowings 91,047 — — — 91,047

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Excess of interest-rate sensitive assets over interest-rate liabilities (interest-rate sensitive gap) (3)

$ 1,784,334 $ 4,670,349 $ 3,536,882 $ 693,523 $ 10,685,088

One-year interest-rate sensitive assets/interest-rate sensitive liabilities 120.45 %

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(2) Includes reverse mortgage loans

(3) Excludes the impact of floor options purchased for balance sheet hedging purposes.

Inclusive of the floor options, the one-year interest-rate sensitive assets/interest-rate sensitive liabilities is 103.26% and the one-year interest-rate sensitive gap as a percent of total assets is 1.33%.

Generally, during a period of rising interest rates, a positive gap would result in an increase in net interest income while a negative gap would adversely affect net interest income.

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Allowance for Credit Losses

We maintain an allowance for credit losses (ACL) which represents our best estimate of expected losses in our financial assets, which include loans, leases and held-to-maturity debt securities.

We maintain an allowance for credit losses (ACL) which represents our best estimate of expected losses in our financial assets, which include loans, leases, held-to-maturity debt securities, and accounts receivable.

We establish our allowance in accordance with guidance provided in ASC 326, Financial Instruments – Credit Losses.

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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.

What changed 10-K

Item 7. Management’s Discussion and Analysis