WILMINGTON, DE — WSFS Financial Corp. (Nasdaq: WSFS) reported higher second-quarter earnings as loan growth, expanding deposits and stronger wealth management fees helped offset continued pressure on loan yields, while the regional bank returned $76.6 million to shareholders through dividends and share repurchases.
The Wilmington-based parent of WSFS Bank reported net income of $84.4 million, or $1.63 per diluted share, for the quarter ended June 30, compared with $72.3 million, or $1.27 per share, a year earlier. Return on average assets improved to 1.52% from 1.39% a year ago, while total net revenue increased to $282.5 million from $267.5 million.
Chairman, President and Chief Executive Officer Rodger Levenson said the results reflected growth across the company’s core banking and fee-based businesses while credit quality improved.
“Our results included robust growth in noninterest deposits, a double-digit year-over-year increase in Wealth and Trust fees, and solid loan growth,” Levenson said. “Asset quality continued to trend positively, with improvement across key metrics.”
Client deposits increased 3% from the previous quarter to $19.0 billion, driven by a 10% increase in noninterest-bearing deposits, while gross loans and leases rose 1% to $13.5 billion. Commercial and industrial lending continued to expand, and residential mortgage balances posted double-digit quarterly growth.
The company said fiduciary assets exceeded $100 billion during the quarter, supported by continued expansion in its Wealth and Trust business. Wealth and Trust fee revenue increased 17% from a year earlier, including 34% growth in WSFS Institutional Services and a 20% increase at The Bryn Mawr Trust Company of Delaware.
Net interest income rose 7% from the prior-year quarter to $192.5 million as lower deposit costs and higher average loan balances more than offset the effect of lower interest rates. Net interest margin was 3.87%, down two basis points from a year earlier after the Federal Reserve’s 2025 rate cuts reduced loan yields.
Credit quality improved during the quarter, with problem assets declining 31% and delinquencies falling 39% from a year earlier. Nonperforming assets decreased 24% year over year, while the allowance for credit losses on loans and leases stood at $177.3 million, or 1.32% of total loans and leases.
WSFS maintained capital levels above regulatory “well-capitalized” thresholds and repurchased 923,948 shares for $66.2 million during the quarter. Combined with $10.4 million in dividends, total capital returned to shareholders reached $76.6 million. The board also approved a quarterly cash dividend of $0.20 per share, payable Aug. 21, 2026, to shareholders of record on Aug. 7, 2026.
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