[Management View]
WSFS Financial Corporation reported strong sequential and year-over-year growth in core profitability metrics. Key metrics include a core EPS of $1.40, core return on assets of 1.4%, and core return on tangible common equity of 18.7%. Management emphasized continued capital return and margin management strategies, with a focus on maintaining elevated share buybacks to move CET1 toward the 12% target.

[Outlook]
Management maintained guidance for low single-digit annual commercial loan growth despite problem loan payoffs and runoff activity. The company plans to continue leveraging its hedging program to offset rate cut impacts and maintain margin stability. Future plans include ongoing expansion in the wealth and trust business, with a focus on new accounts and client activity.

[Financial Performance]
- Core EPS: $1.40, up from the prior quarter.
- Core Return on Assets: 1.4%, up sequentially from Q2 2025.
- Core Return on Tangible Common Equity: 18.7%, higher than the previous quarter.
- Core Net Income: Increased 21% YoY.
- Core PPNR: Grew 6% YoY.
- Tangible Book Value Per Share: Rose 12% YoY.
- Net Interest Margin: Expanded by two basis points to 3.91% QoQ.

[Q&A Highlights]
Question 1: What's your base case scenario to achieve the CET1 target, and what does that assume for organic and acquisitive growth rates?
Answer: We are buying back approximately 100% of our net income. Despite these buybacks, our capital levels are still very high and have increased since the beginning of the year. We have a lot of dry powder to execute buybacks at or above the level of 1% of our net income for two to three years. Depending on the balance sheet dynamics, we may accelerate that path. We continuously evaluate different investment opportunities, with a preference to invest capital in the business where accretive opportunities exist.

Question 2: How are you thinking about reserve levels amid a somewhat volatile macro environment, and which sectors of your loan portfolio are you monitoring closely?
Answer: We have good momentum and progress in asset quality. We focus on disciplined origination and proactive client engagement. Our reserve levels are conservatively maintained due to potential macro volatility, including rates, inflation, and labor weakness. We see capacity to release some reserves based on macro data but have made qualitative offsets to keep reserves stable.

Question 3: Can you provide more details on the future growth in the wealth and trust business lines?
Answer: Our wealth business is diverse, with institutional services, Bryn Mawr Trust of Delaware, and private wealth management. Institutional services and BMT of Delaware have seen significant growth in new accounts and transactions. Institutional services revenue is up 30% YoY, and BMT of Delaware is up 20% YoY. We are also seeing positive net client cash flow in private wealth management.

Question 4: How do you forecast the potential financial benefit from Cash Connect amid rate changes?
Answer: Cash Connect revenue is tied to interest rates, and as rates come down, we expect a reduction in fee revenue but an offsetting reduction in expenses. Profitability benefits from rate decreases, with about $300,000 pretax benefit per 25 basis-point cut. We are also increasing profit margins through pricing leverage and efficiency improvements.

Question 5: Can you help us size the pace of payoffs from the consumer partnership going forward?
Answer: The Upstart portfolio sale removed $85 million from our balance sheet. The Spring EQ portfolio runoff was about $50 million this quarter, with an expected pace of $15 million to $17 million per month. Our home lending business and WSFS-originated consumer loans are offsetting this runoff with strong growth.

Question 6: Where are you looking to add talent for growth opportunities?
Answer: We are focusing on increasing relationship managers in the commercial team and adding talent in the wealth business. We have had successful lift-outs of teams and are continuously evaluating potential RIA acquisitions. There is significant untapped potential in referral pipelines across our businesses.

Question 7: How do you manage margin sensitivity amid potential rate cuts?
Answer: We have a near-term sensitivity of about three basis points per 25 basis point rate cut. We use deposit repricing, hedging programs, new deposit growth, and securities portfolio management to offset this sensitivity. Our floating rate loans are a little over 50%, with a loan beta slightly above 40% when including hedges.

[Sentiment Analysis]
The tone of the analysts was inquisitive and focused on understanding the strategic plans and financial stability of WSFS. Management's tone was confident and detailed, emphasizing strong performance metrics and strategic initiatives to maintain growth and stability.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | YoY Change |
|---------------------------------|---------------|---------------|--------------|
| Core EPS | $1.40 | $1.35 | +30% |
| Core Return on Assets | 1.4% | 1.3% | +0.1% |
| Core Return on Tangible Equity | 18.7% | 18.0% | +0.7% |
| Core Net Income | $XX million | $XX million | +21% |
| Core PPNR | $XX million | $XX million | +6% |
| Tangible Book Value Per Share | $XX | $XX | +12% |
| Net Interest Margin | 3.91% | 3.89% | +0.02% |

[Risks and Concerns]
- Potential macroeconomic volatility, including interest rate changes, inflation, and labor market conditions.
- Continued runoff in non-strategic loan portfolios.
- Competitive pressures in the commercial lending market.

[Final Takeaway]
WSFS Financial Corporation demonstrated strong core profitability and effective capital management in Q3 2025. The company is well-positioned to achieve its CET1 target through strategic buybacks and disciplined growth. Management's proactive approach to asset quality and margin management, along with a focus on expanding the wealth and trust business, supports a positive outlook for future performance. Investors should monitor macroeconomic conditions and competitive dynamics as potential risks.