What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-28 compared with 2024-02-29 · 378 added, 371 removed, 2057 unchanged (27% of the section changed)

31 unchanged sentences

Assessment of the Allowance for Credit Losses for Loans and Leases Evaluated on a Collective Basis

As discussed in Footnotes 2 and 7 to the consolidated financial statements, the Company’s total allowance for credit losses as of December 31, 2023 was $186.1 million, of which $184.5 million related to the allowance for credit losses on loans and leases evaluated on a collective basis (the collective ACL).

As discussed in Notes 2 and 7 to the consolidated financial statements, the Company’s total allowance for credit losses as of December 31, 2024 was $195.3 million, of which $186.9 million related to the allowance for credit losses on loans and leases evaluated on a collective basis (the collective ACL).

The collective ACL includes the measure of expected credit losses on a collective (pooled) basis for those loans and leases that share similar risk characteristics.

11 unchanged sentences

A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment.

Specifically, the assessment encompassed the evaluation of the collective ACL methodology, including the methods and quantitative model used to estimate (1) the PD, LGD and average net loss rates and their significant assumptions, including portfolio segmentation, the economic forecast scenario and macroeconomic assumptions, the reasonable and supportable forecast periods, the LBP for both the commercial and retail portfolio, and credit risk ratings for commercial loans, and (2) the qualitative factors.

The assessment also included an evaluation of the conceptual soundness and performance of the quantitative model.

2 unchanged sentences

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s measurement of the collective ACL estimates, including controls over the:

• development of the collective ACL methodology

• continued use and appropriateness of the collective ACL methodology

• continued use and appropriateness of changes made to the quantitative model

8 unchanged sentences

• assessing the conceptual soundness and performance of the quantitative model used by inspecting the model documentation to determine whether the model is suitable for its intended use

• evaluating the selection of economic forecast scenario by comparing it to the Company’s business environment and relevant industry practices

• evaluating the selection of the economic forecast scenario by comparing it to the Company’s business environment and relevant industry practices

• evaluating the length of the historical observation period and reasonable and supportable forecast periods by comparing to specific portfolio risk characteristics and trends

29 unchanged sentences

Net interest income 705,438 725,103 662,890

Provision for (recovery of) credit losses 88,071 48,089 ( 117,087 )

Provision for credit losses 61,410 88,071 48,089

Net interest income after provision for (recovery of) credit losses 644,028 637,032 614,801

5 unchanged sentences

Loan and lease fee income 6,681 5,718 6,275

Security gains, net — — 331

Unrealized gains on equity investments, net — 329 5,980

Realized gain (loss) on sale of equity investment, net 9,493 — ( 706 )

Realized gain on sale of equity investment, net 2,309 9,493 —

Bank owned life insurance income 4,724 4,642 1,804

12 unchanged sentences

Restructuring expense 2,193 ( 230 ) 22,473

Recovery of legal settlement — — ( 15,000 )

Loss on early extinguishment of debt — — 1,087

Other operating expense 156,460 119,406 89,917

14 unchanged sentences

Net income $ 263,495 $ 269,025 $ 222,648

Net (loss) gain attributable to noncontrolling interest ( 131 ) 273 163

Net (loss) income attributable to noncontrolling interest ( 176 ) ( 131 ) 273

Net income attributable to WSFS $ 263,671 $ 269,156 $ 222,375

Other comprehensive income (loss):

Other comprehensive (loss) income:

Net change in unrealized gains (losses) on investment securities available-for-sale

Net unrealized gains (losses) arising during the period, net of tax expense (benefit) of $ 20,085 , $( 167,261 ), and $( 29,523 ), respectively

63,601 ( 529,660 ) ( 93,503 )

reclassification adjustment for net gains on sales realized in net income, net of tax expense of $ — , $ — , and $ 80 , respectively

Net unrealized (losses) gains arising during the period, net of tax (benefit) expense of $( 11,955 ), $ 20,085 , and $( 167,261 ), respectively

( 37,857 ) 63,601 ( 529,660 )

Net change in securities held-to-maturity

Net change in unrealized gains (losses) on securities reclassified to held-to-maturity, net of tax (benefit) expense of $( 5,361 ), $ 34,319 , and $ 32 , respectively (1)(2)

Net change in unrealized losses (gains) on securities reclassified to held-to-maturity, net of tax expense (benefit) of $ 4,774 , $ 5,361 , and $( 34,319 ), respectively (1)(2)

15,118 16,980 ( 108,678 )

3 unchanged sentences

Net change in cash flow hedge

Net unrealized gain arising during the period, net of tax expense of $ 504 , $ — , and $ — , respectively

Net unrealized (loss) gain arising during the period, net of tax (benefit) expense of $( 2,809 ), $ 504 , and $ — , respectively

( 8,894 ) 1,596 —

Amortization of unrealized gain on terminated cash flow hedges, net of tax benefit

5 unchanged sentences

( 52 ) ( 85 ) 213

Total other comprehensive income (loss) 81,853 ( 638,076 ) ( 93,775 )

Total other comprehensive (loss) income ( 30,886 ) 81,853 ( 638,076 )

Total comprehensive income (loss) $ 232,785 $ 351,009 $ ( 415,701 )

21 unchanged sentences

Premises and equipment 86,028 104,484

Goodwill 885,898 883,637

Intangible assets 118,662 128,595

Goodwill and intangible assets 988,160 1,004,560

Other assets 857,142 712,022

29 unchanged sentences

Comprehensive

Income (Loss) Retained

Loss Retained

Earnings Treasury

6 unchanged sentences

— — — — ( 35,746 ) — ( 35,746 ) — ( 35,746 )

Distributions to noncontrolling shareholders — — — — — — — ( 504 ) ( 504 )

Issuance of common stock including proceeds from exercise of common stock

options 109,473 1 3,178 — — — 3,179 — 3,179

Issuance of common stock in acquisition of BMT 18,116,848 181 907,835 — — — 908,016 — 908,016

Noncontrolling interest assumed in acquisition — — — — — — — ( 913 ) ( 913 )

Stock-based compensation expense — — 6,349 — — — 6,349 — 6,349

2 unchanged sentences

Balance, December 31, 2022 75,921,997 $ 759 $ 1,974,210 $ ( 675,844 ) $ 1,411,243 $ ( 505,255 ) $ 2,205,113 $ ( 3,227 ) $ 2,201,886

Net income — — — — 222,375 — 222,375 273 222,648

Other comprehensive loss — — — ( 638,076 ) — — ( 638,076 ) — ( 638,076 )

Net income (loss) — — — — 269,156 — 269,156 ( 131 ) 269,025

Other comprehensive income — — — 81,853 — — 81,853 — 81,853

Cash dividend, $ 0.60 per share

2 unchanged sentences

Issuance of common stock including proceeds from exercise of common stock options 173,097 2 3,296 — — — 3,298 — 3,298

Issuance of common stock in acquisition of BMT 18,116,848 181 907,835 — — — 908,016 — 908,016

Noncontrolling interest assumed in acquisition — — — — — — — ( 913 ) ( 913 )

Stock-based compensation expense — — 9,605 — — — 9,605 — 9,605

2 unchanged sentences

Balance, December 31, 2023 76,095,094 $ 761 $ 1,984,746 $ ( 593,991 ) $ 1,643,657 $ ( 557,537 ) $ 2,477,636 $ ( 7,821 ) $ 2,469,815

Net income — — — — 269,156 — 269,156 ( 131 ) 269,025

Other comprehensive income — — — 81,853 — — 81,853 — 81,853

Net income (loss) — — — — 263,671 — 263,671 ( 176 ) 263,495

Other comprehensive loss — — — ( 30,886 ) — — ( 30,886 ) — ( 30,886 )

Cash dividend, $ 0.60 per share

2 unchanged sentences

Issuance of common stock including proceeds from exercise of common stock options (2)

169,117 2 464 — — — 466 — 466

Stock-based compensation expense — — 11,901 — — — 11,901 — 11,901

2 unchanged sentences

Balance, December 31, 2024 76,264,211 $ 763 $ 1,996,191 $ ( 624,877 ) $ 1,871,523 $ ( 653,848 ) $ 2,589,752 $ ( 10,376 ) $ 2,579,376

(1) Repurchase of common stock for the years ended December 31, 2023, 2022 and 2021 included 1,247,178 , 4,151,117 and 267,309 shares repurchased, respectively, in connection with the Company's share buyback program approved by the Board of Directors, and 45,489 , 113,039 and 31,188 shares withheld, respectively, to cover tax liabilities.

(1) Repurchase of common stock for the years ended December 31, 2024, 2023 and 2022 included 2,049,739 , 1,247,178 and 4,151,117 shares repurchased, respectively, in connection with the Company's share buyback program approved by the Board of Directors.

The years ended December 31, 2023 and 2022 included 45,489 and 113,039 shares withheld, respectively, to cover tax liabilities.

(2) Issuance of common stock includes 54,972 shares withheld to cover tax liabilities.

The accompanying notes are an integral part of these Consolidated Financial Statements

5 unchanged sentences

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for (recovery of) credit losses 88,071 48,089 ( 117,087 )

Provision for credit losses 61,410 88,071 48,089

Depreciation of premises and equipment, net 13,875 17,508 24,152

4 unchanged sentences

Income from mortgage banking activities, net ( 7,565 ) ( 4,799 ) ( 7,271 )

Gain on sale of securities, net — — ( 331 )

Loss (gain) on sale of other real estate owned and valuation adjustments, net 296 195 ( 221 )

1 unchanged sentence

Unrealized gains on equity investments, net — ( 329 ) ( 5,980 )

Realized (gain) loss on sale of equity investment, net ( 9,493 ) — 706

Deferred income tax (benefit) expense ( 5,397 ) ( 4,005 ) 39,838

(Increase) decrease in accrued interest receivable ( 11,531 ) ( 22,151 ) 2,739

Realized gain on sale of equity investment, net ( 2,309 ) ( 9,493 ) —

Deferred income tax benefit ( 8,162 ) ( 5,397 ) ( 4,005 )

Decrease (increase) in accrued interest receivable 1,308 ( 11,531 ) ( 22,151 )

Increase in other assets ( 106,041 ) ( 2,185 ) ( 58,852 )

1 unchanged sentence

Proceeds from sales of loans held-for-sale 319,658 198,920 501,186

Increase (decrease) in accrued interest payable 41,510 1,196 ( 714 )

(Decrease) increase in other liabilities ( 60,781 ) 315,065 ( 4,807 )

Decrease (increase) in value of bank-owned life insurance ( 2,053 ) ( 1,311 ) ( 1,048 )

(Decrease) increase in accrued interest payable ( 8,511 ) 41,510 1,196

Increase (decrease) in other liabilities 85,291 ( 60,781 ) 315,065

(Increase) decrease in value of bank-owned life insurance ( 531 ) ( 2,053 ) ( 1,311 )

Increase in capitalized interest, net ( 1,471 ) ( 1,738 ) ( 2,078 )

3 unchanged sentences

Repayments, maturities and calls of investment securities held to maturity 61,332 72,966 66,186

Sale of investment securities available-for-sale — — 14,051

Purchases of investment securities available-for-sale ( 67,433 ) ( 27,689 ) ( 1,218,022 )

4 unchanged sentences

Net cash (paid for) from business combinations — ( 3,000 ) 573,745

Net (increase) decrease in loans and leases ( 486,819 ) ( 41,324 ) 1,453,471

Net increase in loans and leases ( 138,250 ) ( 486,819 ) ( 41,324 )

Purchases of loans held for investment ( 269,635 ) ( 313,363 ) ( 393,159 )

10 unchanged sentences

Financing activities:

Net (decrease) increase in demand and saving deposits $ ( 358,115 ) $ ( 1,123,468 ) $ 1,760,031

Net increase (decrease) in demand and saving deposits $ 263,007 $ ( 358,115 ) $ ( 1,123,468 )

Increase (decrease) in time deposits 346,329 681,484 ( 94,251 )

5 unchanged sentences

Receipts from Bank Term Funding Program 235,000 565,000 —

Repayments of Bank Term Funding Program ( 800,000 ) — —

Distributions to noncontrolling shareholders ( 3,299 ) ( 4,463 ) ( 504 )

3 unchanged sentences

Repurchase of common shares ( 96,311 ) ( 54,647 ) ( 200,083 )

Net cash provided by (used in) financing activities $ 344,900 $ ( 1,039,168 ) $ 1,244,924

Net cash (used in) provided by financing activities $ ( 91,249 ) $ 344,900 $ ( 1,039,168 )

Increase (decrease) in cash, cash equivalents, and restricted cash $ 61,918 $ 255,642 $ ( 695,681 )

8 unchanged sentences

Securities transferred to held-to-maturity from available-for-sale at fair value — — 931,421

Available-for-sale securities purchased, not settled — — 34,489

Receivable for bank-owned life insurance surrender proceeds — 4,731 —

Receivable for bank-owned life insurance death benefit proceeds — 742 —

Premises & equipment transferred to held-for-sale 18,839 — —

Fair value of assets acquired, net of cash received — 7,993 4,713,544

4 unchanged sentences

WSFS Financial Corporation (the Company or WSFS) is a savings and loan holding company organized under the laws of the State of Delaware.

Substantially all of the Company's assets are held by its subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), is a federal savings bank organized under the laws of the United States (U.S.).

Substantially all of the Company's assets are held by its subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), a federal savings bank organized under the laws of the United States (U.S.).

The Consolidated Financial Statements include the accounts of the Company, 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.

6 unchanged sentences

In addition, the Company offers a variety of wealth management and trust services to individual, corporate and institutional clients.

The Federal Deposit Insurance Corporation (FDIC) insures the Company's customers’ deposits to their legal maximums.

The Company serves its Customers primarily from 114 offices located in Pennsylvania ( 57 ), Delaware ( 40 ) , New Jersey ( 14 ), Florida ( 1 ), Nevada ( 1 ) and Virginia ( 1 ) , its ATM network, website at www.wsfsbank.com , and mobile app.

The Federal Deposit Insurance Corporation (FDIC) insures the Company's Clients’ deposits to their legal maximums.

The Company serves its Clients primarily from 114 offices located in Pennsylvania ( 57 ), Delaware ( 39 ) , New Jersey ( 14 ), Florida ( 2 ), Nevada ( 1 ) and Virginia ( 1 ) , its ATM network, website at www.wsfsbank.com , and mobile app.

Information on the Company's website is not incorporated by reference into this Annual Report on Form 10-K.

6 unchanged sentences

Although the Company's estimates contemplate current conditions and how it expects them to change in the future, it is reasonably possible that actual conditions in 2025 could be worse than anticipated in those estimates, which could materially affect its results of operations and financial condition.

The accounting for the allowance for credit losses (including loans and leases held for investment, investment securities available-for-sale and held-to-maturity), lending related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, and income taxes are subject to significant estimates.

The accounting for the allowance for credit losses (including loans and leases held for investment, investment securities available-for-sale and held-to-maturity), loans held for sale, lending-related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, and income taxes are subject to significant estimates.

Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the establishment of additional allowance and lending-related commitment reserves, changes in the fair value of financial instruments, as well as increased post-retirement benefits and income tax expense.

10 unchanged sentences

• Securities not classified as either trading or held to maturity are classified as “available-for-sale” and reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, as a separate component of stockholders’ equity in accumulated other comprehensive income (loss).

Realized gains and losses are determined using the specific identification method and included in Security gains, net on the Consolidated Statements of Income.

Realized gains and losses are determined using the specific identification method and included on the Consolidated Statements of Income.

All sales are made without recourse.

11 unchanged sentences

The Company classifies the held-to-maturity debt securities into the following major security types:

mortgage backed securities, state and political subdivisions, and foreign bonds.

mortgage backed securities and state and political subdivisions.

These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security.

14 unchanged sentences

Equity Investments

The Company has equity investments in certain strategic partnerships that are accounted for in accordance with both ASC 321-10, Investments - Equity Securities and ASC 323-10, Investments - Equity Method and Joint Ventures .

The Company has equity investments that are accounted for in accordance with both ASC 321-10, Investments - Equity Securities and ASC 323-10, Investments - Equity Method and Joint Ventures .

Our equity investments are recorded in Other investments on the Consolidated Statements of Financial Condition.

30 unchanged sentences

For loans greater than 90 days past due, unless loans are well-secured and collection is imminent, their respective reserves are generally charged off once the loss has been confirmed.

Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off.

A loan, for which the terms have been modified in the current reporting period in the form of principal forgiveness, an interest rate reduction, an other than-insignificant payment delay, or a term extension to a borrower experiencing financial difficulty, is considered a troubled loan.

Expected recoveries do not exceed the aggregate of amounts previously charged off.

A loan, for which the terms have been modified in the form of principal forgiveness, an interest rate reduction, an other than-insignificant payment delay, or a term extension to a borrower experiencing financial difficulty, is considered a troubled loan.

The assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

46 unchanged sentences

In addition, various regulatory agencies periodically review the Company's loan ratings and allowance for credit losses and the Bank's internal loan review department performs recurring loan reviews.

Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the unaudited Consolidated Statements of Financial Condition.

Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Statements of Financial Condition.

For additional detail regarding the allowance for credit losses and the provision for credit losses, see Note 7.

13 unchanged sentences

The Company periodically evaluates OREO for impairment and write-down the value of the asset when declines in fair value below the carrying value are identified.

Loan workout and OREO expenses include costs of holding and operating the assets, net gains or losses on sales of the assets and provisions for losses to reduce such assets to the estimated fair values less costs to sell.

Loan workout and other credit costs include costs of holding and operating the assets, net gains or losses on sales of the assets and provisions for losses to reduce such assets to the estimated fair values less costs to sell.

For additional detail regarding other real estate owned, see Note 7.

28 unchanged sentences

Lease expense for lease payments is recognized on a straight-line basis over the lease term.

As a lessor, the Company provides direct financing to customers through the Company's equipment and small-business leasing business.

As a lessor, the Company provides direct financing to clients through the Company's equipment and small-business leasing business.

Direct financing leases are recorded at the aggregate of minimum lease payments net of unamortized deferred lease origination fees and costs and unearned income.

30 unchanged sentences

RECENT ACCOUNTING PRONOUNCEMENTS

The following accounting pronouncement was adopted by the Company during the year ended December 31, 2024:

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (ASU 2023-07):

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (ASU 2023-07):

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (ASU 2023-07):

In November 2023, the FASB issued ASU 2023-07 to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss.

The Company adopted this ASU on a retrospective basis for its annual period ending December 31, 2024 and for the interim period beginning January 1, 2025.

For further details on the impact of the adoption, see segment information disclosures in Note 21.

The following accounting pronouncements were adopted by the Company during the year ended December 31, 2024, but do not have a material impact on the Consolidated Financial Statements:

2022-02, Financial Instruments – Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures:

In March 2022, the FASB issued ASU No.

2022-02, Financial Instruments – Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage Disclosures.

The guidance eliminates the accounting guidance for troubled debt restructurings by creditors (ASC 310-40) while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

The guidance also requires that an entity disclose current-period write-offs by year of origination for financing receivables and net investments in leases within the scope of Topic 326.

The Company adopted this guidance prospectively on January 1, 2023.

For further details on the impact of the adoption and accounting policies, see updated Significant Accounting Policies, as described above, and troubled loans disclosures in Note 7 - Allowance for Credit Losses and Credit Quality Information .

Accounting Guidance Pending Adoption as of December 31, 2023

2023-01, Leases (Topic 842) — Common Control Agreements

In March 2023, the FASB issued ASU No.

2023-01, Leases (Topic 842) Common Control Agreements.

The amendment clarifies the accounting for leasehold improvements associated with common control leases by allowing the lessee to amortize the leasehold improvements over the useful life of the common control group’s use of the underlying asset, regardless of the lease term.

The guidance is effective for fiscal years beginning after December 15, 2023.

Early adoption is permitted.

Adoption is required on a modified retrospective basis, consistent with the Company's adoption of Topic 842.

The Company does not expect this update to have a material impact on the Consolidated Financial Statements.

2023-02, Investments—Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method:

In March 2023, The FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.

The amendments permit reporting entities to elect to account for any equity investments in a tax credit program using the proportional amortization method if certain conditions are met.

The amendments are effective for fiscal years beginning after December 15, 2023.

Early adoption is permitted.

Adoption is required on a prospective, modified retrospective, or retrospective basis depending on the amendment.

The Company does not expect this update to have a material impact on the Consolidated Financial Statements.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures:

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss.

The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

Adoption is required retrospectively to all prior periods presented in the financial statements.

The Company is currently evaluating this update to determine the impact on the Company’s disclosures.

2023-02, Investments — Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

There were no other applicable material accounting pronouncements adopted by the Company since December 31, 2023.

Accounting Guidance Pending Adoption as of December 31, 2024

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures:

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

The amendments further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction.

The amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025.

Early adoption is permitted and should be applied either prospectively or retrospectively.

Improvements to Income Tax Disclosures (ASU 2023-09):

In December 2023, the FASB issued ASU 2023-09 to enhance the transparency and decision usefulness of income tax disclosures primarily related to the effective tax rate reconciliation and income taxes paid.

The amendments are effective for fiscal years beginning after December 15, 2024.

Adoption is permitted on either a prospective or retrospective basis and the Company is currently evaluating this update to determine the impact on the Company’s disclosures.

2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses (ASU 2024-03):

In November 2024, the FASB issued ASU 2024-03, which requires entities to disclose disaggregated information about certain income statement expense line items in the notes to their financial statements on an annual and interim basis.

Subsequently, in January 2025, the FASB issued ASU 2025-01—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date, making ASU 2024-03 effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted.

The Company is currently evaluating this update to determine the impact on the Company’s disclosures.

2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20):

Induced Conversions of Convertible Debt Instruments (ASU 2024-04):

In November 2024, the FASB issued ASU 2024-04 which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion or extinguishment of convertible debt.

The new guidance is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual periods.

The Company is currently evaluating the impact upon adoption and will apply the guidance after completion of its assessment.

NONINTEREST INCOME

8 unchanged sentences

Credit/debit card and ATM income is composed of bailment fees, interchange fees, and other card and ATM fees.

Bailment fees are earned from bailment arrangements with customers.

Bailment fees are earned from bailment arrangements with clients.

Bailment arrangements are legal relationships in which property is delivered to another party without a transfer of ownership.

2 unchanged sentences

The bailee pays an agreed-upon fee for the use of the bailor's property in exchange for the bailor allowing use of the assets at the bailee's site.

Bailment fees are earned from cash that is made available for customers' use at an offsite location, such as cash located in an ATM at a customer's place of business.

Bailment fees are earned from cash that is made available for clients' use at an offsite location, such as cash located in an ATM at a client's place of business.

These fees are typically indexed to a market interest rate.

46 unchanged sentences

The BMTIA business was sold during the second quarter of 2022.

Other income consists of managed service fees, which are primarily courier fees related to treasury management, currency preparation, ATM loss protection, capital markets revenue, and other miscellaneous products and services offered by the Bank.

Other income consists of managed service fees, which are primarily courier fees related to treasury management and are partially offset in noninterest expense, currency preparation, ATM loss protection, Capital Markets revenue, and other miscellaneous products and services offered by the Bank.

These fees are primarily generated through monthly billings or at the time of the transaction.

1 unchanged sentence

Arrangements with multiple performance obligations

The Company's contracts with customers may include multiple performance obligations.

The Company's contracts with clients may include multiple performance obligations.

For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price.

The Company generally determines standalone selling prices based on the prices charged to customers.

The Company generally determines standalone selling prices based on the prices charged to clients.

Practical expedients and exemptions

14 unchanged sentences

Diluted earnings per share is calculated by dividing Net income attributable to WSFS by the weighted-average fully diluted shares outstanding, using the treasury stock method.

Fully diluted shares include the adjustment for the dilutive effect of common stock awards, which include outstanding stock options and unvested restricted stock units under the 2013 Incentive Plan and the 2018 Incentive Plan.

Fully diluted shares include the adjustment for the dilutive effect of common stock awards, which include outstanding stock options under the 2013 Incentive Plan and the 2018 Incentive Plan and unvested restricted stock units and performance stock units under the 2018 Incentive Plan.

INVESTMENT SECURITIES

6 unchanged sentences

Available-for-Sale Debt Securities

Collateralized mortgage obligation (CMO) $ 560,952 $ — $ 96,333 $ — $ 464,619

Collateralized mortgage obligations (CMO) $ 526,796 $ 113 $ 95,967 $ — $ 430,942

Fannie Mae (FNMA) mortgage-backed securities (MBS) 3,305,418 172 550,011 — 2,755,579

25 unchanged sentences

State and political subdivisions 185,912 2,665 959 8 187,610

Foreign bonds 500 2 — — 502

$ 1,058,565 $ 2,665 $ 75,291 $ 8 $ 985,931

44 unchanged sentences

The held-to-maturity debt securities are not collateral-dependent securities as these are general obligation bonds issued by cities, states, counties, or other local and foreign governments.

During the second quarter of 2022, the Company transferred investment securities with a book value of $ 1.1 billion from available-for-sale to held-to-maturity to mitigate the impact of the rising interest rate environment to Accumulated other comprehensive income (loss) in the Company's Consolidated Statement of Changes in Stockholders' Equity.

The transfer occurred at a fair value totaling $ 931.4 million.

The amortized cost of transferred held-to-maturity securities included net unrealized losses of $ 157.6 million at June 30, 2022, which are offset in Accumulated other comprehensive income (loss) .

No gains or losses on these securities were recognized at the time of transfer.

Investment securities with fair market values aggregating $ 3.3 billion and $ 2.8 billion were pledged as collateral for investment sweep repurchase agreements, municipal deposits, and other obligations as of December 31, 2023 and December 31, 2022, respectively.

During the years ended December 31, 2023 and December 31, 2022, the Company had no sales of debt securities categorized as available-for-sale.

During the year ended December 31, 2021, the Company sold $ 14.1 million of debt securities categorized as available-for-sale, resulting in realized gains of $ 0.3 million and no realized losses.

Investment securities with fair market values aggregating $ 3.3 billion were pledged as collateral for investment sweep repurchase agreements, municipal deposits, and other obligations as of December 31, 2024 and December 31, 2023.

During the years ended December 31, 2024, December 31, 2023, and December 31, 2022, the Company had no sales of debt securities categorized as available-for-sale.

As of December 31, 2024 and December 31, 2023, the Company's debt securities portfolio had remaining unamortized premiums of $ 48.1 million and $ 56.9 million, respectively, and unaccreted discounts of $ 17.6 million and $ 20.9 million, respectively.

For debt securities in an unrealized loss position and an allowance has not been recorded, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at December 31, 2023.

For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at December 31, 2024.

Duration of Unrealized Loss Position

8 unchanged sentences

$ 51,381 $ 668 $ 3,430,940 $ 707,235 $ 3,482,321 $ 707,903

Duration of Unrealized Loss Position

11 unchanged sentences

Total unrealized losses on these securities were $ 707.9 million at December 31, 2024.

The Company does not have the intent to sell, nor is it more likely than not it will be required to sell these securities before it is able to recover the amortized cost basis.

The unrealized losses are the result of changes in market interest rates subsequent to purchase, not credit loss, as these are highly rated agency securities with no expected credit loss, in the event of a default.

As a result, there is no allowance for credit losses recorded for available-for-sale debt securities as of December 31, 2023.

At December 31, 2023 and December 31, 2022, held-to-maturity debt securities had an amortized cost basis of $ 1.1 billion.

The Company assessed whether an allowance for credit losses was required on our available-for-sale debt securities and determined no allowance was necessary as of December 31, 2024 as (1) the Company currently does not have the intent to sell, nor is it more likely than not it will be required to sell these securities before it is able to recover the amortized cost basis and (2) the unrealized losses are the result of changes in market interest rates subsequent to purchase, not credit loss, as these are highly rated agency securities with no expected credit loss, in the event of a default.

At December 31, 2024 and December 31, 2023, held-to-maturity debt securities had an amortized cost basis of $ 1.0 billion and $ 1.1 billion, respectively.

The held-to-maturity debt security portfolio primarily consists of mortgage-backed securities which were issued or guaranteed by U.S.

7 unchanged sentences

The following table summarizes the amortized cost of debt securities held-to-maturity as of December 31, 2023, aggregated by credit quality indicator:

(Dollars in thousands) FNMA MBS State and political subdivisions Foreign bonds

(Dollars in thousands) FNMA MBS State and political subdivisions

A+ rated or higher $ — $ 185,912

2 unchanged sentences

The Company reviewed its held-to-maturity debt securities by major security type for potential credit losses.

There was no activity in the allowance for credit losses for FNMA MBS and foreign bond debt securities for the twelve months ended December 31, 2023 and 2022.

There was no activity in the allowance for credit losses for FNMA MBS debt securities for the twelve months ended December 31, 2024 and 2023.

The following table presents the activity in the allowance for credit losses for state and political subdivisions debt securities for the twelve months ended December 31, 2024, 2023, and 2022:

9 unchanged sentences

The Company had equity investments with a fair value of $ 18.2 million and $ 17.4 million as of December 31, 2024 and December 31, 2023, respectively.

During the year ended December 31, 2023, total net gains on equity investments of $ 9.8 million were recorded, driven by a realized gain on the Company's investment in Spring EQ presented within Realized gain (loss) on sale of equity investment, net in the Consolidated Statements of Income.

During the year ended December 31, 2024, total net gains on equity investments of $ 2.3 million were recorded, driven by an annual earnout distribution related to the Company's investment in Spring EQ presented within Realized gain on sale of equity investment, net in the Consolidated Statements of Income.

During the year ended December 31, 2023, total net gains on equity investments of $ 9.8 million were recorded, driven by a realized gain on the Company's investment in Spring EQ presented within Realized gain on sale of equity investment, net in the Consolidated Statements of Income.

During the year ended December 31, 2023, the Company recognized $ 2.5 million of net gains related to our equity method investments within Other income on the Consolidated Statements of Income.

During the year ended December 31, 2022, total net gains on equity investments of $ 6.0 million were recorded, driven by an unrealized gain on the Company's investment in cred.ai presented within Unrealized gain on equity investment, net in the Consolidated Statements of Income.

During the year ended December 31, 2022, total net gains on equity investments of $ 6.0 million were recorded, driven by an unrealized gain on the Company's investment in cred.ai presented within Unrealized gains on equity investment, net in the Consolidated Statements of Income.

During the year ended December 31, 2022, the Company recognized $ 5.4 million of net gains related to our equity method investments within Other income on the Consolidated Statements of Income.

During the twelve months ended December 31, 2021, total net gains on equity investments of $ 4.4 million were recorded from the sale of the Company's investment in Social Finance, Inc.

(SoFi) in July 2021.

This included a net realized loss of $ 0.7 million which was recorded in Realized gain (loss) on sale of equity investment, net in the Consolidated Statements of Income at the time of sale.

LOANS AND LEASES

17 unchanged sentences

The following tables provide the activity of the Company's allowance for credit losses and loan and lease balances for the years ended December 31, 2024, 2023, and 2022.

During 2023, the increase was primarily due to net loan growth in our commercial mortgage, commercial small business leasing, and Upstart portfolios and higher provision on our commercial small business leasing, Upstart, commercial mortgage and elder care (subset of C&I) portfolios.

(Dollars in thousands) Commercial and Industrial (1)

Construction Residential (2)

During 2024, the increase 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.

(Dollars in thousands) Commercial and Industrial Owner-

Construction Commercial Small Business Leases Residential (1)

Year Ended December 31, 2024

3 unchanged sentences

Recoveries 6,883 217 183 — 2,705 225 2,654 12,867

Provision 37,743 4,830 14,875 4,037 596 25,992 88,073

Provision (release) 16,344 ( 1,620 ) 18,473 ( 1,577 ) 18,123 ( 17 ) 11,685 61,411

Ending balance $ 57,131 $ 9,139 $ 48,962 $ 9,185 $ 15,965 $ 5,566 $ 49,333 $ 195,281

8 unchanged sentences

Ending balance $ 2,656,174 $ 1,973,645 $ 4,030,627 $ 832,093 $ 647,516 $ 961,426 $ 2,086,393 $ 13,187,874

(1) Includes commercial small business leases.

(1) Period-end loan balance excludes reverse mortgages at fair value of $ 3.6 million.

(2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

(Dollars in thousands) Commercial and Industrial (1)

(Dollars in thousands) Commercial and Industrial Owner-

Commercial Commercial

Mortgages Construction Residential (2)

Mortgages Construction Commercial Small Business Leases Residential (1)

Year Ended December 31, 2023

1 unchanged sentence

Beginning balance $ 49,526 $ 6,019 $ 21,473 $ 6,987 $ 9,868 $ 4,668 $ 53,320 $ 151,861

Initial allowance on acquired PCD loans 22,614 595 2,684 71 61 78 26,103

Charge-offs ( 26,653 ) ( 184 ) ( 300 ) ( 794 ) ( 15,641 ) ( 41 ) ( 22,394 ) ( 66,007 )

Recoveries 7,735 54 7 532 1,986 260 1,625 12,199

(Credit) provision (4)

( 295 ) 751 7,524 2,446 776 36,881 48,083

Provision 18,786 4,830 14,875 4,037 18,957 596 25,992 88,073

Ending balance $ 49,394 $ 10,719 $ 36,055 $ 10,762 $ 15,170 $ 5,483 $ 58,543 $ 186,126

7 unchanged sentences

Ending balance $ 2,540,070 $ 1,886,087 $ 3,801,180 $ 1,035,530 $ 623,622 $ 867,895 $ 2,012,134 $ 12,766,518

(1) Includes commercial small business leases.

(1) Period-end loan balance excludes reverse mortgages at fair value of $ 2.8 million.

(2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

(4) Includes $ 23.5 million initial provision for credit losses on non-PCD loans.

(Dollars in thousands) Commercial and Industrial (1)

Construction Residential (2)

(Dollars in thousands) Commercial and Industrial Owner-

Construction Commercial Small Business Leases Residential (1)

Year Ended December 31, 2022

Allowance for loan and lease losses

Allowance for credit losses

Beginning balance $ 43,987 $ 4,574 $ 11,623 $ 1,903 $ 5,980 $ 3,352 $ 23,088 $ 94,507

Impact of adoption ASC 326 (3)

22,613 595 2,684 71 1 61 78 26,103

Charge-offs ( 12,500 ) ( 179 ) ( 581 ) — ( 6,504 ) ( 186 ) ( 7,520 ) ( 27,470 )

Recoveries 4,806 278 223 2,567 1,306 665 793 10,638

(Credit) provision ( 86,072 ) ( 5,118 ) ( 19,644 ) ( 7,814 ) ( 4,330 ) 5,891 ( 117,087 )

(Release) provision ( 9,380 ) 751 7,524 2,446 9,085 776 36,881 48,083

Ending balance $ 49,526 $ 6,019 $ 21,473 $ 6,987 $ 9,868 $ 4,668 $ 53,320 $ 151,861

7 unchanged sentences

Ending balance $ 2,575,345 $ 1,809,582 $ 3,351,084 $ 1,044,049 $ 558,981 $ 759,465 $ 1,810,930 $ 11,909,436

(1) Includes commercial small business leases and PPP loans.

(1) Period-end loan balance excludes reverse mortgages at fair value of $ 2.4 million.

(2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

(3) Includes $ 23.5 million initial provision for credit losses on non-PCD loans.

The following tables show nonaccrual and past due loans presented at amortized cost at the date indicated:

3 unchanged sentences

Still Accruing

Nonaccrual Loans With No Allowance (1)

Nonaccrual Loans With An Allowance Total

Nonaccrual Loans With No Allowance Nonaccrual Loans With An Allowance Total

Commercial and industrial $ 1,482 $ 488 $ 1,970 $ 2,592,395 $ 43,206 $ 18,603 $ 2,656,174

$ 8,327 $ 1,065 $ 9,392 $ 3,135,087 $ 13,645 $ 5,568 $ 3,163,692

Owner-occupied commercial 706 196 902 1,968,033 4,710 — 1,973,645

1 unchanged sentence

Construction — — — 806,493 25,600 — 832,093

Commercial small business leases 8,409 566 8,975 638,541 — — 647,516

Residential (1)

3 unchanged sentences

% of Total Loans 0.27 % 0.07 % 0.34 % 98.73 % 0.79 % 0.14 % 100.00 %

(1) Excludes nonaccruing loans held-for-sale.

(2) Includes commercial small business leases.

(1) Residential accruing current balances exclude reverse mortgages at fair value of $ 3.6 million.

5 unchanged sentences

Still Accruing

Nonaccrual Loans With No Allowance (1)

Nonaccrual Loans With An Allowance Total Loans

Commercial and industrial (2)

3 unchanged sentences

Construction — — — 1,022,913 12,617 — 1,035,530

Commercial small business leases 6,697 772 7,469 616,153 — — 623,622

Residential (2)

1 unchanged sentence

15,249 10,032 25,281 1,984,407 2,446 — 2,012,134

$ 31,230 $ 16,535 $ 47,765 $ 11,838,869 $ 22,802 $ 11,909,436

Total $ 35,813 $ 11,584 $ 47,397 $ 12,655,112 $ 58,441 $ 5,568 $ 12,766,518

% of Total Loans 0.28 % 0.09 % 0.37 % 99.13 % 0.46 % 0.04 % 100.00 %

(1) There were no nonaccrual loans with an allowance as of December 31, 2022.

(2) Includes commercial small business leases.

(1) Excludes nonaccruing loans held-for-sale.

(2) Residential accruing current balances exclude reverse mortgages at fair value of $ 2.8 million.

13 unchanged sentences

Total $ 101,477 $ 20,704 $ 62,026 $ 1,983

(1) Includes commercial small business leases.

(2) Excludes nonaccruing loans held-for-sale.

(1) Excludes nonaccruing loans held-for-sale in 2023.

(2) Excludes reverse mortgages at fair value.

4 unchanged sentences

The total outstanding balance on the loans was $ 3.2 million and $ 1.1 million, respectively.

Loan workout and OREO expenses recognized were $ 0.6 million in 2023, $ 0.4 million in 2022, and $ 1.5 million in 2021.

Loan workout and other real estate owned (OREO) expenses were $ 1.7 million in 2024, $ 0.6 million in 2023, and $ 0.4 million in 2022.

Loan workout and OREO expenses are included in Loan workout and other credit costs on the Consolidated Statements of Income.

32 unchanged sentences

$ 749,866 $ 571,748 $ 369,477 $ 131,936 $ 179,216 $ 339,837 $ 8,771 $ 305,323 $ 2,656,174

$ 1,057,398 $ 748,564 $ 292,526 $ 262,535 $ 128,714 $ 414,250 $ 8,785 $ 250,920 $ 3,163,692

Current-period gross writeoffs $ 102 $ 1,303 $ 4,276 $ 706 $ 275 $ 8,828 $ — $ — $ 15,490

17 unchanged sentences

Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — $ — $ —

Commercial small business leases:

Performing $ 247,583 $ 189,509 $ 121,990 $ 56,998 $ 14,569 $ 16,867 $ — $ — $ 647,516

Nonperforming — — — — — — — — —

$ 247,583 $ 189,509 $ 121,990 $ 56,998 $ 14,569 $ 16,867 $ — $ — $ 647,516

Current-period gross writeoffs $ 1,018 $ 5,442 $ 8,216 $ 3,645 $ 1,235 $ 477 $ — $ — $ 20,033

Residential (2) :

9 unchanged sentences

(1) Origination date represent the most recent underwriting of the loan which includes new relationships, renewals and extensions.

(2) Includes commercial small business leases.

(3) Excludes nonacrruing loans held-for-sale.

(2) Excludes reverse mortgages at fair value.

2 unchanged sentences

Term Loans Amortized Cost Basis by Origination Year (1)

2022 2021 2020 2019 2018 Prior

(Dollars in thousands) 2023 2022 2021 2020 2019 Prior

Revolving loans amortized cost basis Revolving loans converted to term Total

(Dollars in thousands)

Commercial and industrial:

3 unchanged sentences

$ 797,050 $ 556,818 $ 189,098 $ 221,838 $ 113,303 $ 402,258 $ 8,785 $ 250,920 $ 2,540,070

Current-period gross writeoffs $ — $ 568 $ 5,214 $ 1,747 $ 7,567 $ 11,557 $ — $ — $ 26,653

Owner-occupied commercial:

3 unchanged sentences

$ 350,789 $ 286,875 $ 267,790 $ 220,257 $ 213,174 $ 354,690 $ — $ 192,512 $ 1,886,087

Current-period gross writeoffs $ — $ — $ — $ — $ 184 $ — $ — $ — $ 184

Commercial mortgages:

3 unchanged sentences

$ 877,631 $ 466,048 $ 527,394 $ 481,028 $ 511,873 $ 631,660 $ — $ 305,546 $ 3,801,180

Current-period gross writeoffs $ — $ 83 $ — $ 217 $ — $ — $ — $ — $ 300

Construction:

3 unchanged sentences

$ 463,471 $ 339,727 $ 122,868 $ 11,628 $ 2,522 $ 7,016 $ — $ 88,298 $ 1,035,530

Current-period gross writeoffs $ — $ — $ 794 $ — $ — $ — $ — $ — $ 794

Commercial small business leases:

Performing $ 260,348 $ 191,746 $ 103,428 $ 40,697 $ 15,411 $ 11,992 $ — $ — $ 623,622

Nonperforming — — — — — — — — —

$ 260,348 $ 191,746 $ 103,428 $ 40,697 $ 15,411 $ 11,992 $ — $ — $ 623,622

Current-period gross writeoffs $ 1,528 $ 7,250 $ 4,447 $ 1,454 $ 735 $ 227 $ — $ — $ 15,641

Residential (2) :

2 unchanged sentences

$ 188,644 $ 67,528 $ 103,695 $ 57,759 $ 34,750 $ 415,519 $ — $ — $ 867,895

Current-period gross writeoffs $ 33 $ — $ — $ — $ — $ 8 $ — $ — $ 41

Consumer (3) :

2 unchanged sentences

$ 391,580 $ 568,919 $ 154,065 $ 104,600 $ 45,172 $ 245,879 $ 496,025 $ 5,894 $ 2,012,134

(1) Includes commercial small business leases.

Current-period gross writeoffs $ 1,790 $ 15,227 $ 4,411 $ 313 $ 198 $ 455 $ — $ — $ 22,394

(1) Origination date represents the most recent underwriting of the loan which includes new relationships, renewals and extensions.

(2) Excludes reverse mortgages at fair value.

5 unchanged sentences

In addition, certain reorganization bankruptcy judgments may result in interest rate reduction, term extension, or principal forgiveness modification types.

The following table shows the amortized cost basis at the end of the reporting period of troubled loans, disaggregated by portfolio segment and type of modification granted.

December 31, 2023

(Dollars in thousands) Term Extension More-Than-Insignificant Payment Delay Combination- Term Extension and Payment Delay Combination- Term Extension and Interest Rate Reduction Combination - Payment Delay and Interest Rate Reduction Total % of Total Loan Category

The following tables show the amortized cost basis of troubled loans modified during the twelve months ended December 31, 2024 and 2023, disaggregated by portfolio segment and type of modification granted:

Twelve Months Ended December 31, 2024

(Dollars in thousands) Term Extension Interest Rate Reduction More-Than-Insignificant Payment Delay Combination- Term Extension and Payment Delay Combination- Term Extension and Interest Rate Reduction Combination- Payment Delay and Interest Rate Reduction Total % of Total Loan Category

Commercial and industrial $ 62,314 $ — $ 15,682 $ 19,261 $ 27 $ — $ 97,284 3.66 %

Owner-occupied commercial 3,606 — — — — — 3,606 0.18 %

Commercial mortgages 22,421 — — — — — 22,421 0.56 %

Construction 1,188 — — — — 19,405 20,593 2.47 %

Residential — 120 24 — — — 144 0.01 %

716 — 2,821 3,703 — — 7,240 0.35 %

Total $ 90,245 $ 120 $ 18,527 $ 22,964 $ 27 $ 19,405 $ 151,288 1.15 %

Twelve Months Ended December 31, 2023

(Dollars in thousands) Term Extension Interest Rate Reduction More-Than-Insignificant Payment Delay Combination- Term Extension and Payment Delay Combination- Term Extension and Interest Rate Reduction Combination - Payment Delay and Interest Rate Reduction Total % of Total Loan Category

Commercial and industrial $ 44,123 $ — $ 10,523 $ 5,568 $ 27 $ — $ 60,241 1.90 %

Owner-occupied commercial 66 — — — 138 — 204 0.01 %

4 unchanged sentences

Total $ 71,329 $ — $ 12,676 $ 10,660 $ 321 $ 194 $ 95,180 0.75 %

(1) Includes commercial small business leases.

(2) Excludes troubled loan held-for-sale.

(1) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

The following table describes the financial effect of the modifications made to troubled loans as of December 31, 2023:

The following table describes the financial effect of the modifications made to troubled loans during the twelve months ended December 31, 2024 and 2023:

Twelve Months Ended December 31, 2024 Twelve Months Ended December 31, 2023

Term Extension ( 1)

1 unchanged sentence

More-Than-Insignificant Payment Delay (3)

Term Extension (1)

Interest Rate Reduction (2)

More-Than-Insignificant Payment Delay (3)

Commercial and industrial 0.92 6.11 % 0.26 % 1.34 4.00 % 0.13 %

1.34 4.00 % 0.13 %

Owner-occupied commercial 0.90 — — 0.95 2.59 —

6 unchanged sentences

(3) Represents the percentage of loans deferred over the total loan portfolio excluding reverse mortgages at fair value.

(4) Excludes troubled loan held-for-sale.

As of December 31, 2023, the Company had commitments to extend credit of $ 18.4 million to borrowers experiencing financial difficulty whose terms had been modified.

As of December 31, 2024 and December 31, 2023, the Company had commitments to extend credit of $ 18.6 million and $ 18.4 million, respectively, to borrowers experiencing financial difficulty whose terms had been modified.

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off.

Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

The following table shows the amortized cost of loans that received a term extension modification that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty as of December 31, 2023.

The following tables show the amortized cost of loans that received a modification that had a payment default during the twelve months ended December 31, 2024 and 2023 and were modified in the 12 months before default to borrowers experiencing financial difficulty.

Twelve Months Ended December 31, 2024

Interest Rate Reduction More-Than-Insignificant Payment Delay Total

Residential $ 120 $ 24 $ 144

Consumer — 96 96

Total $ 120 $ 120 $ 240

Twelve Months Ended December 31, 2023

More-Than-Insignificant Payment Delay Combination Term Extension & Payment Delay Total

3 unchanged sentences

The Company closely monitors the performance of troubled loans to understand the effectiveness of its modification efforts.

The following table shows the performance of loans that have been modified in the last 12 months:

The following tables show the performance of loans that have been modified in the last 12 months as of December 31, 2024 and 2023:

December 31, 2024

1 unchanged sentence

Commercial and industrial $ — $ — $ 42,552 $ 54,732 $ 97,284

$ 21 $ 293 $ 53,989 $ 5,938 $ 60,241

Owner-occupied commercial — — 3,606 — 3,606

4 unchanged sentences

Total $ 780 $ 546 $ 94,887 $ 55,075 $ 151,288

(1) Includes commercial small business leases.

(2) Excludes troubled loan held-for-sale.

(1) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

Troubled Debt Restructurings (TDRs) under ASC 326 for periods prior to adoption of ASU 2022-02

The following table presents the balance of TDRs as of the indicated date:

(Dollars in thousands) December 31, 2022

Performing TDRs $ 19,737

Nonperforming TDRs 2,006

Total TDRs $ 21,743

Approximately $ 0.6 million in related reserves have been established for these loans at December 31, 2022.

The following tables present information regarding the types of loan modifications made and the balances of loans modified as TDRs during the year ended and December 31, 2022:

December 31, 2023

reduction Maturity

extension Discharged

bankruptcy Other (1)

Commercial 1 2 — 2 5

30-89 Days Past Due and Still Accruing 90+ Days Past Due and Still Accruing Accruing Current Balances Nonaccrual Loans Total

Commercial and industrial $ 21 $ 293 $ 53,989 $ 5,938 $ 60,241

Owner-occupied commercial — — — 204 204

2 unchanged sentences

Residential — — 607 170 777

Consumer 151 48 8 3 210

Total 153 53 9 6 221

(1) Other includes interest rate reduction, forbearance, and interest only payments.

Year Ended December 31,

(Dollars in thousands) 2022

Commercial $ 1,067 $ 1,067

Owner-occupied commercial 2,087 2,087

Commercial mortgages 2,380 2,380

Residential 302 302

Consumer 4,178 4,178

1,021 205 7,539 396 9,161

(1) During the year ended December 31, 2022 the TDRs in the table above resulted in a $ 0.5 million increase in the allowance for credit losses, and no additional charge-offs.

During the year ended December 31, 2022, no TDRs defaulted that had received troubled debt modification during the past twelve months.

(2) The TDRs in the table above did not occur as a result of the loan forbearance program under the CARES Act.

Total $ 1,042 $ 498 $ 86,932 $ 6,708 $ 95,180

(1) Includes home equity lines of credit, installment loans and unsecured lines of credit.

PREMISES AND EQUIPMENT

9 unchanged sentences

The Company recognized depreciation expense of $ 13.4 million, $ 17.9 million and $ 20.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

During the year, the Company transferred $ 18.8 million of land and building assets to held for sale as part of an optimization plan of WSFS-owned real estate properties.

The Company recognized a $ 2.2 million loss on the transfer, which is reflected in restructuring expense on the Company's Consolidated Statements of Income.

The Company is actively working to dispose of the assets.

As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment.

39 unchanged sentences

Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the Consolidated Statements of Income.

The allowance for credit losses on finance leases are included within Provision for (recovery of) credit losses on the Consolidated Statements of Income.

The allowance for credit losses on finance leases are included within Provision for credit losses on the Consolidated Statements of Income.

The components of direct finance lease income are summarized in the table below:

21 unchanged sentences

Between annual tests, management performs a qualitative review of goodwill quarterly as part of the Company's review of the overall business to ensure no events or circumstances have occurred that would impact its goodwill evaluation.

During the year ended December 31, 2023, management determined that the fair values of our reporting units exceeded their carrying values, and no goodwill impairment existed during the year ended December 31, 2023.

During the year ended December 31, 2024, management determined, based on its qualitative assessment, that it is not more likely than not that the fair values of our reporting units are less than their carrying values.

No goodwill impairment existed during the year ended December 31, 2024.

The following table shows the allocation of goodwill to the reportable operating segments for purposes of goodwill impairment testing:

2 unchanged sentences

Goodwill from business combinations (1)

Goodwill adjustments 3,311 ( 6,839 ) ( 3,528 )

December 31, 2022 753,586 130,051 883,637

Goodwill from business combinations (1)

— 2,261 2,261

December 31, 2023 753,586 132,312 885,898

Goodwill adjustments — — —

December 31, 2024 $ 753,586 $ 132,312 $ 885,898

(1) During the third quarter of 2023, BMCM acquired the business of a registered investment advisory firm.

13 unchanged sentences

Customer relationships 73,880 ( 18,153 ) 55,727 7 - 15 years

Non-compete agreements 200 ( 200 ) — 1 year

Tradename 2,900 — 2,900 indefinite

2 unchanged sentences

Total intangible assets $ 194,144 $ ( 75,482 ) $ 118,662

(1) Includes impairment losses of less than $ 0.1 million for the year ended December 31, 2023.

(1) Includes impairment losses of $ 0.6 million for the year ended December 31, 2024.

(2) Includes impairment losses of less than $ 0.1 million for the year ended December 31, 2023.

The Company recognized amortization expense on other intangible assets of $ 15.7 million, $ 15.5 million and $ 15.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.

6 unchanged sentences

Servicing Assets

The Company records mortgage servicing rights on its mortgage loan servicing portfolio, which includes mortgages that it acquires or originates as well as mortgages that it services for others, and servicing rights on Small Business Administration (SBA) loans.

The Company records mortgage servicing rights and servicing rights on Small Business Administration (SBA) loans.

The Company's mortgage loan servicing portfolio includes acquired servicing portfolios, mortgages it originates, and mortgages that it services for others.

Mortgage servicing rights and SBA loan servicing rights are included are in Intangible assets in the accompanying Consolidated Statements of Financial Condition.

2 unchanged sentences

The value of the Company's mortgage servicing rights was $ 1.3 million and $ 1.7 million at December 31, 2024 and 2023, respectively, and the value of its SBA loan servicing rights was $ 4.0 million and $ 4.3 million at December 31, 2024 and 2023, respectively.

Changes in the value of these servicing rights resulted in impairment losses of less than $ 0.1 million during 2023 and impairment losses of $ 0.3 million during 2022.

Revenues from originating, marketing and servicing mortgage loans as well as valuation adjustments related to capitalized mortgage servicing rights are included in Mortgage Banking Activities, Net in the Consolidated Statements of Income and revenues from the Company's SBA loan servicing rights are included in Loan fee income, in the Consolidated Statements of Income.

Changes in the value of these servicing rights resulted in an impairment reversal of $ 0.6 million during 2024 and impairment losses of less than $ 0.1 million during 2023.

Revenues from originating, marketing and servicing mortgage loans as well as valuation adjustments related to capitalized mortgage servicing rights are included in Mortgage Banking Activities, Net in the Consolidated Statements of Income and revenues from the Company's SBA loan servicing rights are included in Loan and lease fee income, in the Consolidated Statements of Income.

Besides the impairment on loan servicing rights noted above, there was no impairment of other intangible assets as of December 31, 2024 or 2023.

54 unchanged sentences

Trust preferred borrowings 90,638 7.51 90,638 90,534 7.44

Senior debt 248,169 4.51 248,566 248,389 3.32

Senior and subordinated debt 218,400 4.34 248,189 221,975 4.42

Other borrowed funds 586,038 0.28 739,346 409,002 4.41

Federal Home Loan Bank Advances

As of December 31, 2023, there were no advances from the FHLB.

Advances from the FHLB with ranges ranging from 3.77 % to 4.72 % at December 31, 2024 are due as follows:

(Dollars in thousands) Amount Weighted

2025 $ 7,882 4.30 %

2026 16,261 3.96

2027 26,897 4.56

$ 51,040 4.33 %

Pursuant to collateral agreements with the FHLB, advances are secured by qualifying loan collateral, qualifying fixed-income securities, FHLB stock and an interest-bearing demand deposit account with the FHLB.

5 unchanged sentences

In 2005, the Trust issued Pooled Floating Rate Securities at a variable interest rate of 177 basis points over the three-month LIBOR rate with a scheduled maturity of June 1, 2035.

The reference rate on these securities was updated to three-month term SOFR upon the discontinuation of LIBOR on June 30th, 2023.

The reference rate on these securities was updated to three-month term SOFR upon the discontinuation of LIBOR on June 30, 2023.

These securities are currently callable and have a maturity date of June 1, 2035.

16 unchanged sentences

Senior and Subordinated Debt

On June 13, 2016, the Company issued $ 100.0 million of senior notes due 2026 (the 2026 Notes).

The 2026 Notes had a fixed coupon rate of 4.50 % from issuance to but excluding June 15, 2021 and a variable coupon rate of three month LIBOR plus 3.30 % from June 15, 2021 until maturity.

The 2026 Notes were redeemed on June 15, 2021 at 100 % of principal plus accrued and unpaid interest using cash on hand.

On December 3, 2020, the Company issued $ 150.0 million of senior notes due 2030 (the 2030 Notes).

The 2030 Notes mature on December 15, 2030 and have a fixed coupon rate of 2.75 % from issuance until December 15, 2025 and a variable coupon rate equal to the three-month term SOFR, reset quarterly, plus 2.485 % from December 15, 2025 until maturity.

The 2030 Notes may be redeemed beginning December 15, 2025 at 100 % of principal plus accrued and unpaid interest.

The 2030 Notes may be redeemed by the Company beginning December 15, 2025 at 100 % of principal plus accrued and unpaid interest.

The remaining net proceeds from the issuance of the 2030 Notes are being used for general corporate purposes, including, but not limited to, financing organic growth, acquisitions, repurchases of common stock, and redemption of outstanding indebtedness.

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Other Borrowed Funds

Included in other borrowed funds are collateralized borrowings of $ 586.0 million and $ 38.3 million at December 31, 2023 and 2022, respectively, primarily consisting of Bank Term Funding Program (BTFP) borrowings of $ 565.0 million borrowed in 2023 as well as outstanding retail repurchase agreements, contractual arrangements under which portions of certain securities are sold overnight to retail customers under agreements to repurchase.

Included in other borrowed funds are collateralized borrowings of $ 23.1 million and $ 586.0 million at December 31, 2024 and 2023, respectively, primarily consisting of outstanding retail repurchase agreements, contractual arrangements under which portions of certain securities are sold overnight to retail clients under agreements to repurchase.

Other borrowed funds at December 31, 2023 included $ 565.0 million of Bank Term Funding Program borrowings.

Such borrowings were collateralized by mortgage-backed securities.

1 unchanged sentence

The Company had $ 2.5 billion and $ 2.1 billion of loans and securities pledged to the Federal Reserve of Philadelphia (FRB) at December 31, 2024 and December 31, 2023, respectively.

The Company borrowed $ 565.0 million from the FRB during 2023.

The Company did no t borrow funds from the FRB during 2022.

The Company had no borrowings outstanding from the FRB at December 31, 2024 and $ 565.0 million in borrowings outstanding from the FRB as of December 31, 2023.

STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL

41 unchanged sentences

In 2005, the Trust issued Pooled Floating Rate Securities at a variable interest rate of 177 basis points over the three-month LIBOR rate with a scheduled maturity of June 1, 2035.

The reference rate on these securities was updated to three-month term SOFR upon the discontinuation of LIBOR on June 30th, 2023.

The reference rate on these securities was updated to three-month term SOFR upon the discontinuation of LIBOR on June 30, 2023.

The par value of these securities is $ 2.0 million and the aggregate principal is $ 67.0 million.

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The effective rate will vary due to fluctuations in interest rates.

Royal Bancshares Capital Trust I (Trust I) and Royal Bancshares Capital Trust II (Trust II) (collectively, the RBC Trusts), which were acquired from Bryn Mawr Bank Corporation, were utilized for the sole purpose of issuing and selling capital securities representing preferred beneficial interests.

The RBC Trusts, which were acquired from Bryn Mawr Bank Corporation, were utilized for the sole purpose of issuing and selling capital securities representing preferred beneficial interests.

Although WSFS owns an aggregate of $ 0.8 million of the common securities of Trust I and Trust II, the RBC Trusts are not consolidated into the Company’s Consolidated Financial Statements as the Company is not deemed to be the primary beneficiary of these entities.

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During the year ended December 31, 2024, the Company repurchased 2,049,739 common shares at an average price of $ 46.55 per share as part of its share buy-back program approved by the Board of Directors.

The program is consistent with the Company's intent to return a minimum of 35 % of annual net income to stockholders through dividends and share repurchases while maintaining capital ratios in excess of regulatory minimums, and in the case of the Bank, the “well-capitalized” benchmarks.

The program is consistent with the Company's intent to return 35 % of annual net income to stockholders through routine share repurchases and common equity dividends, along with incremental capital return as appropriate through additional share repurchases, while maintaining capital ratios in excess of the “well-capitalized” benchmarks.

ASSOCIATE BENEFIT PLANS

44 unchanged sentences

Net amount recognized $ 1,263 $ 1,470 $ 1,908

Components of net periodic (benefit) cost:

Components of net periodic benefit income:

Service cost $ 32 $ 33 $ 52

Interest cost 66 65 51

Amortization of prior service cost ( 76 ) ( 76 ) ( 76 )

Amortization of prior service credit ( 76 ) ( 76 ) ( 76 )

Net gain recognition ( 147 ) ( 160 ) ( 84 )

Net periodic (benefit) cost $ ( 138 ) $ ( 57 ) $ 25

Net periodic benefit income $ ( 125 ) $ ( 138 ) $ ( 57 )

Assumption used to determine net periodic benefit cost:

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Plan participants' contributions — 41 — 63 — 55

Amendments — — — — ( 83 ) —

Actuarial loss (gain) 1,604 256 ( 26,233 ) ( 3,346 ) ( 4,420 ) ( 442 )

Actuarial (gain) loss ( 5,481 ) 68 1,604 256 ( 26,233 ) ( 3,346 )

Benefits paid ( 5,035 ) ( 1,382 ) ( 4,336 ) ( 1,415 ) ( 5,736 ) ( 1,336 )

5 unchanged sentences

Participants' contributions — 41 — 63 — 55

Settlements — — — — ( 83 ) —

Benefits paid ( 5,035 ) ( 1,382 ) ( 4,336 ) ( 1,415 ) ( 5,736 ) ( 1,336 )

4 unchanged sentences

Net loss (gain) $ 8,370 $ ( 2,386 ) $ 9,920 $ ( 2,612 ) $ 10,658 $ ( 3,259 )

Components of net periodic (benefit) cost:

Components of net periodic benefit (income) cost:

Service cost $ — $ 8 $ — $ 14 $ — $ 33

2 unchanged sentences

Net loss (gain) recognition 129 ( 158 ) 281 ( 392 ) 16 —

Net periodic (benefit) cost $ ( 812 ) $ 281 $ ( 4,145 ) $ 416 $ ( 4,656 ) $ 337

Net periodic benefit (income) cost $ ( 1,214 ) $ 498 $ ( 812 ) $ 281 $ ( 4,145 ) $ 416

(1) Before tax effects

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(3) a Supplemental Executive Retirement Plan with a corresponding liability of $ 1.3 million for both December 31, 2024 and 2023, and;

(4) a Post-Retirement Medical Plan with a corresponding liability of $ 0.1 million for both December 31, 2023 and 2022.

(4) a Post-Retirement Medical Plan with a corresponding liability of less than $ 0.1 million and $ 0.1 million for December 31, 2024 and 2023, respectively.

The Company and its subsidiaries file a consolidated federal income tax return and separate state income tax returns.

16 unchanged sentences

Reserves and other accruals 33,250 25,093

Investments 763 1,579

Net operating losses 2,131 2,725

10 unchanged sentences

Net deferred tax asset $ 248,161 $ 230,262

(1) Other deferred tax assets includes deferred gains, tax credits, and reverse mortgages in 2023 and 2022, and employee benefit plans in 2022.

(2) Other deferred tax liabilities includes deferred loan costs, derivatives and partnership investments in 2023 and 2022, and employee benefit plans in 2023.

Included in the table above are deferred taxes recorded in accumulated other comprehensive income (loss).

At December 31, 2023, such items consisted primarily of deferred tax assets of $ 186.8 million of unrealized losses on certain investments in debt securities accounted for under ASC 320 and $ 1.5 million of unrealized losses related to postretirement benefit obligations accounted for under ASC 715.

At December 31, 2022, the deferred tax assets consisted primarily of $ 212.2 million of unrealized gains on certain investments in debt securities and $ 1.5 million of unrealized losses related to postretirement benefit obligations.

(1) Other deferred tax assets includes investments, deferred gains, tax credits in 2024 and 2023, and reverse mortgages in 2023.

(2) Other deferred tax liabilities includes derivatives, partnership investments, and employee benefit plans in 2024 and 2023, reverse mortgages in 2024, and deferred loan costs in 2023.

Based on the Company's history of prior earnings and its expectations of the future, it is anticipated that operating income and the reversal pattern of its temporary differences will, more likely than no t, be sufficient to realize a net deferred tax asset of $ 248.2 million at December 31, 2024.

16 unchanged sentences

Bank-owned life insurance income ( 0.1 ) ( 0.1 ) —

Excess tax benefits from share-based compensation — — ( 0.1 )

Nondeductible acquisition costs — — 0.1

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ASC 740 also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties.

Based on recent changes in the interest rate environment lowering our yields on our Bank Owned Life Insurance (BOLI) policies and the termination of a stable value protection wrap policy, we surrendered $ 65.5 million of previously acquired BOLI policies.

Based on recent changes in the interest rate environment lowering our yields on our Bank Owned Life Insurance (BOLI) policies and the termination of a stable value protection wrap policy, during 2023, we surrendered $ 65.5 million of previously acquired BOLI policies.

This resulted in a taxable gain of $ 22.6 million and corresponding income tax charge of $ 7.1 million

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The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the year ended December 31, 2024 were $ 5.8 million, $ 5.3 million and $ 1.7 million respectively.

The carrying value of the investment in affordable housing credits is $ 87.1 million December 31, 2023, compared to $ 69.0 million December 31, 2022.

The carrying value of the investment in affordable housing credits is $ 94.3 million at December 31, 2024, compared to $ 87.1 million at December 31, 2023.

STOCK-BASED COMPENSATION

10 unchanged sentences

Awards under the ELTIP include short-term incentive (STI) cash bonus awards and long-term incentive (LTI) awards of RSUs and PSUs that will be issued under the Company's 2018 Incentive Plan.

LTI awards under the ELTIP will be awarded to the CEO and Executive Vice Presidents that directly report to the CEO in the form of RSUs that vest in equal annual installments over a three-year service period, and PSUs that vest based on a service condition defined as the achievement of a three-year service period and a performance condition based on the Company's cumulative core ROA performance over a three-year period relative to the KBW Nasdaq Regional Bank Index (the KRX Index) for the same period.

LTI awards under the ELTIP will be awarded to the CEO and Executive Vice Presidents that directly report to the CEO or COO in the form of RSUs that vest in equal annual installments over a three-year service period, and PSUs that vest based on a service condition defined as the achievement of a three-year service period and a performance condition based on the Company's cumulative core ROA performance over a three-year period relative to the KBW Nasdaq Regional Bank Index (the KRX Index) for the same period.

Total stock-based compensation expense recognized was $ 12.7 million ($ 9.6 million after tax) for 2024, $ 10.0 million ($ 7.6 million after tax) for 2023, and $ 9.0 million ($ 6.7 million after tax) for 2022.

5 unchanged sentences

No stock options were granted during 2024, 2023, or 2022.

All stock options granted during 2021 vest in 25 % per annum increments, start to become exercisable in April of the year following the year of grant, and expire between five and seven years from the grant date.

New shares are issued upon the exercise of options.

The Company determines the grant date fair value of stock options using the Black-Scholes option-pricing model.

The model requires the use of numerous assumptions, many of which are subjective.

Significant assumptions used to determine 2021 grant date fair value included expected term, which was derived from historical exercise patterns and represents the amount of time that stock options granted are expected to be outstanding;

volatility, measured using the fluctuation in month end closing stock prices over a period which corresponds with the average expected option life;

a weighted-average risk-free rate of return (zero coupon treasury yield);

and a dividend yield indicative of the Company's current dividend rate.

The assumptions used to determine the grant date fair value for options issued during 2021 are presented below:

Expected term (in years) 5.5

Volatility 23.9 %

Weighted-average risk-free interest rate 1.16 %

Dividend yield 1.33 %

A summary of option activity as of December 31, 2024, and changes during the year the ended December 31, 2024, is presented below:

4 unchanged sentences

Exercised ( 49,505 ) 37.64

Forfeited ( 38,421 ) 47.14

Expired ( 32,726 ) 48.62

2 unchanged sentences

Exercisable at end of year 155,707 43.46 1.90 1,505

The weighted-average fair value of options granted was $ 10.44 in 2021.

The aggregate intrinsic value of options exercised was $ 0.8 million in 2024, $ 0.5 million in 2023, and $ 0.8 million in 2022.

4 unchanged sentences

Vested ( 34,944 ) 42.82 8.63

Forfeited ( 25,985 ) 46.91 9.45

Nonvested at end of period 14,913 51.84 10.44

The total amount of unrecognized compensation cost related to non-vested stock options as of December 31, 2023 was $ 0.2 million.

The total amount of unrecognized compensation cost related to non-vested stock options as of December 31, 2024 was less than $ 0.1 million.

The weighted-average period over which the expense is expected to be recognized is 0.28 years.

During 2023, the Company recognized $ 0.3 million of compensation expense related to these awards.

During 2024, the Company recognized $ 0.2 million of compensation expense related to these awards compared to $ 0.3 million in 2023 and $ 0.7 million in 2022.

Restricted Stock Units

RSUs are granted at no cost to the recipient and generally vest over a four year period, with the exception of RSUs from the ELTIP which vest over a three year period.

All outstanding awards granted to senior executives vest over no less than a three year period.

The 2013 and 2018 Plans allow for awards with vesting periods less than four years , subject to Board approval.

RSUs are granted at no cost to the recipient and generally vest over a three year period, with the exception of RSUs from the ELTIP which vest over a three year period.

Most outstanding awards granted to senior executives vest over no less than a three year period.

The 2013 and 2018 Plans allow for awards with vesting periods less than three years , subject to Board approval.

The fair value of RSUs is equal to the fair value of the common stock on the date of grant.

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The weighted-average period over which the cost is expected to be recognized is 1.89 years.

During 2023, the Company recognized $ 6.3 million of compensation expense related to these awards.

During 2024, the Company recognized $ 8.2 million of compensation expense related to these awards compared to $ 6.3 million in 2023 and $ 7.5 million in 2022..

The following table summarizes the Company’s RSUs and changes during the year:

10 unchanged sentences

PSUs are granted at no cost to the recipient and vest based on both service and performance conditions.

The service condition is defined as the achievement of a three-year service period between January 1, 2022 and December 31, 2024.

The service condition is defined as the achievement of a three-year service period beginning January 1 of the year of the award and ending on December 31 of the third year.

The service condition can be waived at the discretion of the Committee.

4 unchanged sentences

The expense related to PSUs granted to Associates is recognized in Salaries, benefits and other compensation on an accrual basis over the requisite service period if the performance condition is probable and the service condition is met.

The weighted-average fair value of PSUs granted was $ 49.69 in 2023.

The weighted-average fair value of PSUs granted was $ 42.39 in 2024, $ 49.69 in 2023, and $ 49.76 in 2022.

The total amount of compensation cost to be recognized relating to nonvested performance stock units (based on current performance estimates) was $ 10.7 million as of December 31, 2024.

The weighted-average period over which the cost is expected to be recognized is 1.73 years.

During 2023, the Company recognized $ 1.6 million of compensation expense related to these awards.

During 2024, the Company recognized $ 3.4 million of compensation expense related to these awards compared to $ 1.6 million in 2023 and $ 0.9 million in 2022..

The following table summarizes the Company’s PSUs and changes during the year:

4 unchanged sentences

Granted 129,802 42.39

Forfeited ( 35,291 ) 49.73

Balance at December 31, 2024 287,550 46.78

5 unchanged sentences

Thus, 20 % of the restricted stock units subject to the Integration Awards will performance vest and become subject to service-based vesting conditions.

During 2023, the Company recognized $ 0.1 million of compensation expense related to these awards.

During 2024 and 2023, the Company recognized $ 0.1 million of compensation expense related to these awards.

Beneficial Acquisition Success Plan:

2 unchanged sentences

The key measures of success related to Beneficial include acquisition economics, one-time acquisition costs, banking location integration and optimization, customer deposit retention, and cost synergies.

During 2023, the Success Plan awards fully vested and the Company recognized $ 0.6 million of compensation expense related to these awards.

During 2023, the RSUs previously issued under the Success Plan fully vested.

Awards from the Integration Plan and the Success Plan were issued under the Company’s 2018 Incentive Plan.

4 unchanged sentences

Financial Instruments With Off-Balance Sheet Risk

In the ordinary course of business, the Company is a party to financial instruments with off-balance sheet risk, primarily to meet the financing needs of its customers.

In the ordinary course of business, the Company is a party to financial instruments with off-balance sheet risk, primarily to meet the financing needs of its Clients.

To varying degrees, these financial instruments involve elements of credit risk that are not recognized in the Consolidated Statements of Financial Condition.

4 unchanged sentences

Financial instruments with contract amounts which represent potential credit risk:

Commercial and industrial loan commitments $ 1,841,169 $ 1,717,924

Owner-occupied commercial loan commitments 54,162 57,013

Commercial mortgages loan commitments 132,276 136,379

Construction loan commitments 626,847 725,591

Commercial mortgage loan commitments 136,379 96,208

Commercial loan commitments 1,717,924 863,566

Owner-occupied commercial commitments 57,013 27,198

Commercial standby letters of credit 101,448 107,031

Residential loan commitments (1)

12,751 11,797

Consumer loan commitments (2)

2 unchanged sentences

(1) Not reflected in the table above are commitments to sell residential loans of $ 18.2 million and $ 16.3 million at December 31, 2024 and 2023, respectively.

(2) Consumer loan commitments of $ 633.8 million were secured by real estate.

Commitments provide for financing on predetermined terms as long as the customer continues to meet specific criteria.

(2) Consumer loan commitments of $ 1.0 billion and $ 0.6 billion were secured by real estate at December 31, 2024 and 2023, respectively..

Commitments provide for financing on predetermined terms as long as the client continues to meet specific criteria.

Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.

Since many of the commitments are expected to expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party.

The Company evaluates each customer’s creditworthiness and obtain collateral based on its credit evaluation of the counterparty.

Standby letters of credit are conditional commitments issued to guarantee the performance of a client to a third party.

The Company evaluates each client’s creditworthiness and obtain collateral based on its credit evaluation of the counterparty.

Secondary Market Loan Sales

10 unchanged sentences

Repurchases and losses have been rare and no provision is made for losses at the time of sale.

There was one repurchase for $ 0.8 million during the year ended December 31, 2023 and two repurchases for $ 0.8 million during the same period in 2022.

There were three repurchases for $ 0.7 million during the year ended December 31, 2024 and one repurchase for $ 0.8 million during the same period in 2023.

Unfunded Lending Commitments

At December 31, 2024 and December 31, 2023, the allowance for credit losses of unfunded lending commitments was $ 12.5 million and $ 12.1 million, respectively.

A provision expense for unfunded lending commitments of $ 0.2 million was recognized during the year ended December 31, 2023, and a provision expense for unfunded lending commitments of $ 0.3 million was recognized during year ended December 31, 2022.

A provision expense for unfunded lending commitments of $ 0.4 million was recognized during the year ended December 31, 2024, compared to provision expenses for unfunded lending commitments of $ 0.2 million and $ 0.3 million during years ended December 31, 2023 and December 31, 2022, respectively.

FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES

62 unchanged sentences

Other investments

Other investments includes equity investments without readily determinable fair values and equity method investments, which are categorized as Level 3.

The Company’s equity investments without readily determinable fair values are held at cost, and are adjusted for any observable transactions during the reporting period and its equity method investments are initially recorded at cost based on the Company’s percentage ownership in the investee, and are adjusted to reflect the recognition of the Company’s proportionate share of income or loss of the investee based on the investee’s earnings.

Other investments includes equity investments without readily determinable fair values, which are categorized as Level 3.

The Company’s equity investments without readily determinable fair values are held at cost, and are adjusted for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer during the reporting period.

Other real estate owned

6 unchanged sentences

These inputs are based on pricing information obtained from wholesale mortgage banks and brokers and applied to loans with similar interest rates and maturities.

Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements.

Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty.

Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale .

Valuation of risk participation agreements are obtained from an independent pricing service.

Valuation of foreign exchange forward contracts and risk participation agreements are obtained from an independent pricing service.

Other liabilities

20 unchanged sentences

Other investments

Other investments includes equity investments without readily determinable fair values (see discussion in “Fair Value of Financial Assets and Liabilities” section above).

Other investments includes equity investments without readily determinable fair values (see discussion in “Fair Value of Financial Assets and Liabilities” section above) as well as equity method investments.

Loans held for sale

11 unchanged sentences

The carrying amounts of interest receivable approximate fair value.

Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements (see discussion in “Fair Value of Financial Assets and Liabilities” section above).

Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, and risk participation agreements (see discussion in “Fair Value of Financial Assets and Liabilities” section above).

The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, money market and interest-bearing demand deposits, is assumed to be equal to the amount payable on demand.

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1 - 250 bps ( 207 bps)

Other liabilities 14,023 Discounted cash flow Timing of Visa litigation resolution 1.00 - 4.75 years ( 3.06 years or 4Q 2025)

Other liabilities (Financial derivative related to sales of certain Visa Class B shares) 5,180 Discounted cash flow Timing of Visa litigation resolution 2.50 years or 2Q 2027

(Dollars in thousands) December 31, 2023

1 unchanged sentence

(Weighted Average)

Other investments $ 26,120 Observed market comparable transactions Period of observed transactions May 2022

Other investments $ 15,206 Observed market comparable transactions Period of observed transactions December 2023

Other real estate owned 1,569 Fair market value of collateral Costs to sell 10.0 % - 20.0 % ( 18.1 %)

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The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

The Company does not use derivative financial instruments for proprietary or speculative trading.

Fair Values of Derivative Instruments

8 unchanged sentences

Interest rate products 2,942,675 Other liabilities ( 153,980 )

Interest rate lock commitments with customers 34,651 Other assets 637

Interest rate lock commitments with clients 41,238 Other assets 612

Interest rate lock commitments with clients 3,658 Other liabilities ( 18 )

Forward sale commitments 28,927 Other assets 200

9 unchanged sentences

Fair Values of Derivative Instruments

(Dollars in thousands) Notional Balance Sheet Location Derivatives

(Dollars in thousands) Count Notional Balance Sheet Location Derivatives

Derivatives designated as hedging instruments:

Interest rate products 9 $ 750,000 Other assets $ 15,578

Total $ 750,000 $ 15,578

Derivatives not designated as hedging instruments:

1 unchanged sentence

Interest rate products 2,383,443 Other liabilities ( 136,924 )

Interest rate lock commitments with customers 24,673 Other assets 385

Interest rate lock commitments with customers 1,179 Other liabilities ( 7 )

Interest rate lock commitments with clients 34,651 Other assets 637

Forward sale commitments 1,000 Other assets 1

7 unchanged sentences

Effect of Derivative Instruments on the Income Statement

The table below presents the effect of the derivative financial instruments on the unaudited Consolidated Statements of Income for the years ended December 31, 2023 and December 31, 2022.

Amount of Gain Recognized in OCI on Derivative (Effective Portion) Location of Gain Reclassified from Accumulated OCI into Income (Effective Portion)

The table below presents the effect of the derivative financial instruments on the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022.

Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) Location of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion)

(Dollars in thousands) Year Ended December 31,

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Total $ ( 8,894 ) $ 1,596 $ —

Amount of (Loss) or Gain Recognized in Income Location of Gain (Loss) Recognized in Income

Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income

(Dollars in thousands) Year Ended December 31,

1 unchanged sentence

Interest rate products $ 9,412 $ 10,294 $ 7,576 Other income

Interest rate lock commitments with customers 274 ( 2,072 ) ( 6,218 ) Mortgage banking activities, net

Interest rate lock commitments with clients ( 34 ) 274 ( 2,072 ) Mortgage banking activities, net

Forward sale commitments 175 65 4,863 Mortgage banking activities, net

9 unchanged sentences

The Company also has agreements with certain derivative counterparties that contain a provision where if it fails to maintain its status as a well-capitalized or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements.

During 2023, the Company purchased nine interest rate floors at a premium of $ 14.7 million with an aggregate notional amount of $ 750.0 million to hedge variable cash flows associated with a variable rate loan pool through the fourth quarter of 2026.

As of December 31, 2024, the Company had 18 interest rate floors purchased at an aggregate premium of $ 29.7 million with an aggregate notional amount of $ 1.5 billion to hedge variable cash flows associated with a variable rate loan pool through the third quarter of 2027.

Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings.

1 unchanged sentence

As of December 31, 2024, the Company determined the cash flow hedges remain highly effective.

During the year ended December 31, 2023, $ 1.2 million of amortization expense on the premium was reclassified into interest income.

During the year ended December 31, 2024, $ 4.6 million of amortization expense on the premium was reclassified into interest income compared to $ 1.2 million during the year ended December 31, 2023.

The Company does not expect any unrealized gains or losses related to cash flow hedges to be reclassified into earnings in the next twelve months.

In 2020, the Company terminated its three interest rate derivatives that were designated as cash flow hedges for a net gain of $ 1.3 million, recognized in accumulated other comprehensive income (loss).

Hedge accounting was discontinued, and the net gain in accumulated comprehensive income (loss) is reclassified into earnings when the transaction affects earnings.

As the underlying hedged transaction continues to be probable, the $ 1.3 million net gain will be recognized into earnings on a straight-line basis over each derivative's original contract term.

During the year ended December 31, 2023, $ 0.1 million was reclassified into interest income compared to $ 0.2 million during the same period in 2022.

As of December 31, 2023, this gain has been fully recognized and reclassified to interest income.

Derivatives not designated as hedging instruments:

Customer Derivatives – Interest Rate Swaps

The Company enters into interest rate swaps with commercial loan customers wishing to manage interest rate risk.

Client Derivatives – Interest Rate Swaps

The Company enters into interest rate swaps with commercial loan clients wishing to manage interest rate risk.

The Company then enters into corresponding swap agreements with swap dealer counterparties to economically hedge the exposure arising from these contracts.

The interest rate swaps with both the customers and third parties are not designated as hedges under ASC 815, Derivatives and Hedging (ASC 815) and are marked to market through earnings.

The interest rate swaps with both the clients and third parties are not designated as hedges under ASC 815, Derivatives and Hedging (ASC 815) and are marked to market through earnings.

As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings;

3 unchanged sentences

Derivative financial instruments related to mortgage banking activities are recorded at fair value and are not designated as accounting hedges.

This includes commitments to originate certain fixed-rate residential loans to customers, also referred to as interest rate lock commitments.

This includes commitments to originate certain fixed-rate residential loans to clients, also referred to as interest rate lock commitments.

The Company may also enter into forward sale commitments to sell loans to investors at a fixed price at a future date and trade asset-backed securities to mitigate interest rate risk.

Foreign Exchange Forward Contracts

The Company enters into foreign exchange forward contracts (FX forwards) with customers to exchange one currency for another on an agreed date in the future at an agreed exchange rate.

The Company then enters into corresponding FX forwards with swap dealer counterparties to economically hedge its exposure on the exchange rate component of the customer agreements.

The FX forwards with both the customers and third parties are not designated as hedges under ASC 815 and are marked to market through earnings.

The Company enters into foreign exchange forward contracts (FX forwards) with clients to exchange one currency for another on an agreed date in the future at an agreed exchange rate.

The Company then enters into corresponding FX forwards with swap dealer counterparties to economically hedge its exposure on the exchange rate component of the client agreements.

The FX forwards with both the clients and third parties are not designated as hedges under ASC 815 and are marked to market through earnings.

Exposure to gains and losses on these contracts increase or decrease over their respective lives as currency exchange and interest rates fluctuate.

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Risk Participation Agreements

The Company may enter into a risk participation agreement (RPA) with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed.

commensurate with the risk assumed.

This type of derivative is referred to as an “RPA sold.” In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the Company has provided a loan structured with a derivative, the Company may purchase an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared.

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Swap Guarantees

The Company entered into an agreement with one unrelated financial institution whereby that financial institution entered into interest rate derivative contracts (interest rate swap transactions) directly with customers referred to them by the Company.

Under the terms of the agreements, those financial institutions have recourse to us for any exposure created under each swap transaction, only in the event that the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution.

This is a customary arrangement that allows us to provide access to interest rate swap transactions for our customers without creating the swap ourselves.

Under the terms of the agreements, those financial institutions have recourse to us for any exposure created under each swap transaction, only in the event that the client defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution.

This is a customary arrangement that allows us to provide access to interest rate swap transactions for our Clients without creating the swap ourselves.

These swap guarantees are accounted for as credit derivatives.

At December 31, 2023 and December 31, 2022, there were 188 and 209 variable-rate to fixed-rate swap transactions between the third-party financial institutions and the Company's customers, respectively.

At December 31, 2024 and December 31, 2023, there were 154 and 188 variable-rate to fixed-rate swap transactions between the third-party financial institutions and the Company's Clients, respectively.

The initial notional aggregate amount was approximately $ 0.6 billion and $ 0.7 billion at December 31, 2024 and December 31, 2023, respectively.

At December 31, 2024, the swap transactions remaining maturities ranged from under 1 year to 11 years.

At December 31, 2023, none of these customer swaps were in a paying position to third parties, with our swap guarantees having a fair value of $ 7.3 million.

At December 31, 2022, none of these customer swaps were in a paying position to third parties, with the Company's swap guarantees having a fair value of $ 10.4 million.

For both periods, none of the Company's customers were in default of the swap agreements.

At December 31, 2024, none of these client swaps were in a paying position to third parties, with our swap guarantees having a fair value of $ 5.5 million.

At December 31, 2023, none of these client swaps were in a paying position to third parties, with the Company's swap guarantees having a fair value of $ 7.3 million.

For both periods, none of the Company's Clients were in default of the swap agreements.

Credit-risk-related Contingent Features

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Any related party loans exceeding $ 0.5 million require review and approval by the Board of Directors.

There was one extension of credit to related parties exceeding $ 0.5 million originated during the year ended December 31, 2023 and no extensions of credit to related parties originated during the year ended December 31, 2022.

There were no extensions of credit to related parties exceeding $ 0.5 million originated during the year ended December 31, 2024 and one extension of credit to related parties exceeding $ 0.5 million originated during the year ended December 31, 2023.

During 2024, all new loans and credit line advances to related parties were $ 0.2 million and repayments were $ 0.1 million.

The outstanding balances of loans to related parties at December 31, 2023 and 2022 were $ 0.4 million and $ 3.9 million, respectively.

Total deposits from related parties at December 31, 2023 and 2022 were $ 9.7 million and $ 5.8 million.

The outstanding balances of loans to related parties at both December 31, 2024 and 2023 were $ 0.4 million.

Total deposits from related parties at December 31, 2024 and 2023 were $ 6.4 million and $ 9.7 million, respectively.

SEGMENT INFORMATION

As defined in ASC 280, Segment Reporting (ASC 280), an operating segment is a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision makers to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

As defined in ASC 280, Segment Reporting (ASC 280), an operating segment is a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

The Company evaluates performance based on pretax net income relative to resources used, and allocate resources based on these results.

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WSFS Bank, Cash Connect ® , and Wealth Management.

The WSFS Bank segment provides financial products to commercial and consumer customers.

Consumer and Commercial Banking, Commercial Real Estate Lending and other banking business units are operating departments of WSFS Bank.

These departments share the same regulators, the same market, many of the same customers and provide similar products and services through the general infrastructure of the Bank.

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

Commercial and Consumer Banking and other banking business units are operating departments of WSFS Bank.

These departments share the same regulators, the same market, many of the same Clients and provide similar products and services through the general infrastructure of the Bank.

Accordingly, these departments are not considered discrete segments and are appropriately aggregated in the WSFS Bank segment.

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

The balance sheet category Cash in non-owned ATMs includes cash from which fee income is earned through bailment arrangements with customers of Cash Connect ® .

The balance sheet category Cash in non-owned ATMs includes cash from which fee income is earned through bailment arrangements with clients of Cash Connect ® .

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.

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WSFS Institutional Services ® provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles.

The following tables show segment results for the years ended December 31, 2023, 2022, and 2021:

The following tables show segment results for the years ended December 31, 2024, 2023, and 2022, and represent amounts included in management's reports that are regularly provided to the Company's CODM:

Rodger Levenson, Chairman, President and Chief Executive Officer.

The CODM evaluates performance based on pretax net income relative to resources used, and allocates resources based on these results.

Year Ended December 31, 2024

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Statements of Income

External customer revenues:

External client revenues:

Interest income $ 1,040,192 $ — $ 23,390 $ 1,063,582

Interest expense 318,484 — 39,660 358,144

Net interest income 721,708 — ( 16,270 ) 705,438

Noninterest income 78,249 114,539 148,132 340,920

Total external customer revenues 1,030,001 82,468 153,924 1,266,393

Total external client revenues 799,957 114,539 131,862 1,046,358

Inter-segment revenues:

Interest income 31,036 1,441 113,329 145,806

Interest expense 114,770 16,645 14,391 145,806

Net interest income ( 83,734 ) ( 15,204 ) 98,938 —

Noninterest income 33,933 1,835 1,112 36,880

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Total revenue 750,156 101,170 231,912 1,083,238

External customer expenses:

Interest expense 221,713 — 29,706 251,419

Noninterest expenses 425,703 59,485 76,445 561,633

External client expenses:

Provision for credit losses 60,710 — 700 61,410

Total external customer expenses 734,945 59,485 106,693 901,123

Noninterest expenses:

Salaries, benefits and other compensation 264,281 10,209 58,192 332,682

Occupancy expense 36,486 28 1,065 37,579

Equipment expense 38,607 — 9,137 47,744

Professional fees 15,286 — 4,878 20,164

Other segment items (1)

104,180 83,641 11,699 199,520

Total external client expenses 519,550 93,878 85,671 699,099

Inter-segment expenses

Interest expense 100,279 16,348 11,854 128,481

Noninterest expenses 2,947 6,293 27,640 36,880

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Consolidated net income $ 263,495

Net income attributable to noncontrolling interest ( 131 )

Net loss attributable to noncontrolling interest ( 176 )

Net income attributable to WSFS $ 263,671

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Capital expenditures for the period ended $ 12,305 $ 204 $ 1,749 $ 14,258

(1) Other segment items for each reportable segment includes:

WSFS Bank - data processing and operation expense, marketing expense, FDIC expense, loan workout and other credit costs, corporate development expense, restructuring expense, and certain other noninterest expenses.

Cash Connect ® - data processing and operation expense, marketing expense, and certain other noninterest expenses, which includes external funding costs.

Wealth Management - data processing and operation expense, marketing expense, FDIC expense, loan workout and other credit costs, and certain other noninterest expenses.

Year Ended December 31, 2023

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Statements of Income

External customer revenues:

External client revenues:

Interest income $ 955,050 $ — $ 21,472 $ 976,522

Interest expense 221,713 — 29,706 251,419

Net interest income 733,337 — ( 8,234 ) 725,103

Noninterest income 74,951 82,468 132,452 289,871

Total external customer revenues 770,580 55,519 137,850 963,949

Total external client revenues 808,288 82,468 124,218 1,014,974

Inter-segment revenues:

Interest income 28,202 1,384 98,895 128,481

Interest expense 100,279 16,348 11,854 128,481

Net interest income ( 72,077 ) ( 14,964 ) 87,041 —

Noninterest income 29,199 1,930 568 31,697

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Total revenue 765,410 69,434 211,827 1,046,671

External customer expenses:

Interest expense 37,393 — 3,532 40,925

Noninterest expenses 465,999 36,777 71,550 574,326

External client expenses:

Provision for credit losses 87,529 — 542 88,071

Total external customer expenses 551,313 36,777 75,250 663,340

Noninterest expenses:

Salaries, benefits and other compensation 229,740 9,395 50,058 289,193

Occupancy expense 40,694 296 1,194 42,184

Equipment expense 35,657 — 6,585 42,242

Professional fees 11,418 — 7,636 19,054

Other segment items (1)

108,194 49,794 10,972 168,960

Total external client expenses 513,232 59,485 76,987 649,704

Inter-segment expenses

Interest expense 48,075 9,831 4,517 62,423

Noninterest expenses 2,498 5,714 23,485 31,697

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Consolidated net income $ 269,025

Net income attributable to noncontrolling interest 273

Net loss attributable to noncontrolling interest ( 131 )

Net income attributable to WSFS $ 269,156

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Capital expenditures for the period ended $ 6,335 $ — $ 71 $ 6,406

(1) Other segment items for each reportable segment includes:

Cash Connect ® - data processing and operation expense, marketing expense, and certain other noninterest expenses, which includes external funding costs.

Wealth Management - data processing and operation expense, marketing expense, FDIC expense, loan workout and other credit costs, and certain other noninterest expenses.

Year Ended December 31, 2022

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Statements of Income

External customer revenues:

External client revenues:

Interest income $ 690,780 $ — $ 13,035 $ 703,815

Interest expense 37,393 — 3,532 40,925

Net interest income 653,387 — 9,503 662,890

Noninterest income 79,800 55,519 124,815 260,134

Total external customer revenues 526,852 42,818 72,179 641,849

Total external client revenues 733,187 55,519 134,318 923,024

Inter-segment revenues:

Interest income 14,348 1,536 46,539 62,423

Interest expense 48,075 9,831 4,517 62,423

Net interest income ( 33,727 ) ( 8,295 ) 42,022 —

Noninterest income 27,534 1,610 654 29,798

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Total revenue 726,994 48,834 176,994 952,822

External customer expenses:

Interest expense 22,058 — 662 22,720

External client expenses:

Provision for credit losses 47,921 — 168 48,089

Noninterest expenses:

Recovery of credit losses ( 113,715 ) — ( 3,372 ) ( 117,087 )

Total external customer expenses 236,620 29,465 18,064 284,149

Salaries, benefits and other compensation 226,354 8,113 49,438 283,905

Occupancy expense 39,362 299 1,224 40,885

Equipment expense 37,280 — 3,714 40,994

Professional fees 15,485 — 5,391 20,876

Other segment items (1)

147,518 28,365 11,783 187,666

Total external client expenses 513,920 36,777 71,718 622,415

Inter-segment expenses

Interest expense 13,090 856 2,604 16,550

Noninterest expenses 2,264 4,720 22,814 29,798

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Consolidated net income $ 222,648

Net loss attributable to noncontrolling interest 163

Net income attributable to noncontrolling interest 273

Net income attributable to WSFS $ 222,375

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Capital expenditures for the period ended $ 8,793 $ 16 $ — $ 8,809

(1) Other segment items for each reportable segment includes:

Cash Connect ® - data processing and operation expense, marketing expense, and certain other noninterest expenses, which includes external funding costs.

Wealth Management - data processing and operation expense, marketing expense, FDIC expense, loan workout and other credit costs, and certain other noninterest expenses.

The following table shows significant components of segment net assets as of December 31, 2024 and 2023:

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Interest income $ 1,252 $ 817 $ 374

Realized gain (loss) on sale of equity investment 9,493 — ( 706 )

Realized gain on sale of equity investment 2,105 9,493 —

Unrealized gains on equity investments, net — 2,489 5,379

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24,312 23,575 23,252

Income (loss) before equity in undistributed income of subsidiaries 87,291 233,883 ( 5,480 )

Income before equity in undistributed income of subsidiaries 198,108 87,291 233,883

Equity in undistributed income (loss) of subsidiaries 64,429 182,396 ( 12,672 )

Income before taxes 262,537 269,687 221,211

Income tax expense (benefit) 531 ( 1,164 ) ( 714 )

Income tax (benefit) expense ( 1,134 ) 531 ( 1,164 )

Net income attributable to WSFS $ 263,671 $ 269,156 $ 222,375

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Net income attributable to WSFS $ 263,671 $ 269,156 $ 222,375

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Equity in undistributed (income) loss of subsidiaries ( 64,429 ) ( 182,396 ) 12,672

Realized (gain) loss on sale of equity investments ( 9,493 ) — 706

Realized gain on sale of equity investments ( 2,105 ) ( 9,493 ) —

Unrealized gains on equity investments — ( 2,489 ) ( 5,379 )

Decrease in other assets 15,932 31,254 2,569

Increase (decrease) in other liabilities 3,488 812 ( 6,690 )

Net cash provided by (used for) operating activities $ 109,520 $ 233,049 $ ( 5,229 )

(Decrease) increase in other liabilities ( 747 ) 3,488 812

Net cash provided by operating activities $ 212,322 $ 109,520 $ 233,049

Investing activities:

Payments for investment in and advances to subsidiaries ( 2,511 ) — —

Net cash for business combinations $ — $ — $ 101,734

Net cash provided by investing activities $ — $ 101,734 $ —

Net cash (used for) provided by investing activities $ ( 2,511 ) $ — $ 101,734

Financing activities:

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Net cash used for financing activities $ ( 131,650 ) $ ( 118,091 ) $ ( 232,650 )

Decrease (increase) in cash and cash equivalents $ ( 8,571 ) $ 102,133 $ ( 141,217 )

Increase (decrease) in cash and cash equivalents $ 78,161 $ ( 8,571 ) $ 102,133

Cash and cash equivalents at beginning of period 197,270 205,841 103,708

Cash and cash equivalents at end of period $ 275,431 $ 197,270 $ 205,841

CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) includes unrealized gains and losses on available-for-sale investments, unrealized gains and losses on cash flow hedges, as well as unrecognized prior service costs, and actuarial gains and losses on defined benefit post-retirement plans.

Changes to accumulated other comprehensive income (loss) are presented net of tax as a component of stockholders' equity.

Amounts that are reclassified out of accumulated other comprehensive income (loss) are recorded on the Consolidated Statement of Income either as a gain or loss.

Changes to accumulated other comprehensive income (loss) by component are shown net of taxes in the following tables for the period indicated:

CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss includes unrealized gains and losses on available-for-sale investments, unrealized gains and losses on cash flow hedges, as well as unrecognized prior service costs, and actuarial gains and losses on defined benefit post-retirement plans.

Changes to accumulated other comprehensive loss are presented net of tax as a component of stockholders' equity.

Amounts that are reclassified out of accumulated other comprehensive loss are recorded on the Consolidated Statement of Income either as a gain or loss.

Changes to accumulated other comprehensive loss by component are shown net of taxes in the following tables for the period indicated:

(Dollars in thousands) Net change in

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Other comprehensive (loss) income before reclassifications (2)

Amounts reclassified from accumulated other comprehensive (loss) income ( 252 ) ( 101 ) ( 65 ) ( 378 ) — ( 796 )

Net current-period other comprehensive (loss) income ( 93,755 ) ( 101 ) 97 ( 378 ) 362 ( 93,775 )

Balance, December 31, 2021 $ ( 33,873 ) $ 175 $ ( 4,691 ) $ 268 353 $ ( 37,768 )

Other comprehensive (loss) income before reclassifications (2)

( 529,660 ) ( 119,769 ) 318 — 213 ( 648,898 )

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Balance, December 31, 2023 $ ( 499,932 ) $ ( 91,523 ) $ ( 4,614 ) $ 1,597 $ 481 $ ( 593,991 )

Other comprehensive (loss) income before reclassifications ( 37,857 ) — 991 ( 8,894 ) ( 52 ) ( 45,812 )

Amounts reclassified from accumulated other comprehensive income (loss) — 15,118 ( 192 ) — — 14,926

Net current-period other comprehensive (loss) income ( 37,857 ) 15,118 799 ( 8,894 ) ( 52 ) ( 30,886 )

Balance, December 31, 2024 $ ( 537,789 ) $ ( 76,405 ) $ ( 3,815 ) $ ( 7,297 ) $ 429 $ ( 624,877 )

(1) Includes amortization of net gain for cash flow hedges terminated as of April 1, 2020.

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(Dollars in thousands) 2024 2023 2022

Securities available-for-sale:

Realized gains on securities transactions $ — $ — $ ( 331 ) Securities gains, net

Income taxes — — 79 Income tax provision

Net of tax $ — $ — $ ( 252 )

Net unrealized holding losses (gains) on securities transferred between available-for-sale and held-to-maturity:

Amortization of net unrealized losses (gains) to income during the period $ 22,343 $ 14,593 $ ( 133 ) Interest and dividends on

investment securities

Net unrealized holding losses on securities transferred between available-for-sale and held-to-maturity:

Amortization of net unrealized losses to income during the period $ 19,892 $ 22,343 $ 14,593 Net interest income

Income taxes ( 4,774 ) ( 5,363 ) ( 3,502 ) Income tax provision

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Amortization of defined benefit pension plan-related items:

Prior service (credits) costs $ ( 76 ) $ ( 76 ) $ ( 85 )

Prior service credits $ ( 76 ) $ ( 76 ) $ ( 76 )

Actuarial gains ( 176 ) ( 271 ) ( 68 )

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LEGAL AND OTHER PROCEEDINGS

In accordance with the current accounting standards for loss contingencies, the Company establishes reserves for litigation-related matters that arise in the ordinary course of its business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated.

In accordance with the current accounting standards for loss contingencies, the Company establishes liabilities for litigation-related matters that arise in the ordinary course of its business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated.

Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance.

In addition, the Company's defense of litigation claims may result in legal fees, which it expenses as incurred.

On November 16, 2022, Prophet Mortgage Opportunities, LP (Prophet) filed a a complaint against WSFS Bank and the RBSHD 2013-1 Trust in the United States District Court for the Southern District of New York alleging that the Bank, in its capacity as owner trustee and indenture trustee in a Residential Mortgage-Backed Securities (RMBS) trust, was responsible for certain actions directed by the trust’s majority certificate holder, which allegedly diminished the value of the notes and depleted the value of the trust’s assets.

The complaint seeks damages in an amount to be proven at trial of not less than $ 40.0 million.

The Bank disputes the factual allegations and denies liability.

Based on the inherent uncertainty of this matter, it is reasonably possible that the Bank may incur a loss and has recorded an estimated liability of $ 1.0 million for this matter.

The Bank, in accordance with its normal procedures, has notified its insurance carriers of a possible claim.

The Bank is vigorously defending itself in this matter and believes it has valid factual and legal defenses.

On October 3, 2022, Mary Elizabeth Gibbons filed a petition against WSFS Bank, in its individual capacity, in the Circuit Court of St.

Louis County for the State of Missouri asserting claims and seeking damages related to an alleged injury that occurred on a property that was allegedly held by the Bank as owner trustee of a RMBS trust.

The Plaintiff sought in excess of $ 25.0 thousand in damages and other equitable relief.

On June 6, 2023, the court entered a default judgment against the Bank in the amount of $ 15.0 million, plus post-judgment interest.

On January 3, 2025, the Bank received notice that the plaintiff seeks to domesticate and execute on the Missouri judgment by filing an action in the Philadelphia Court of Common Pleas.

Based on the inherent uncertainty of this matter, it is reasonably possible that the Bank may incur a loss in the range of $ 0.0 -$ 15.0 million.

The Bank, in accordance with its normal procedures, notified its insurance carriers of a possible claim.

The Bank disputes the judgment, the Bank's connection to the property, and denies liability.

There were no material changes or additions to other significant pending legal or other proceedings involving the Company other than those arising out of routine operations.

SUBSEQUENT EVENTS

The Company evaluated subsequent events in accordance with ASC Topic 855 and determined that the following qualifies as a non-recognized subsequent event:

Extinguishment of Debt

On January 30, 2025, the Company notified holders of the $ 70.0 million of fixed-to-floating rate subordinated notes due 2027 (the 2027 Notes) acquired from Bryn Mawr Trust that it would be redeeming the outstanding 2027 Notes.

The Company anticipates completing the redemption in the first quarter of 2025 at a price of 100 % of the outstanding principal amount of the 2027 Notes, plus accrued and unpaid interest through the date of redemption.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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 8. Financial Statements and Supplementary Data