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Investing.com -- WSFS Financial Corporation (NASDAQ:WSFS) reported first quarter earnings that beat analyst expectations, but revenue came in slightly below estimates, sending shares down 2% in after-hours trading.
The parent company of WSFS Bank posted adjusted earnings per share of $1.13 for the first quarter, exceeding the analyst consensus of $1.04. However, revenue of $256.1 million fell short of the $256.6 million analysts were expecting.
Net interest income decreased 2% from the previous quarter to $175.2 million, primarily due to lower loan yields following Federal Reserve interest rate cuts in late 2024. This was partially offset by lower deposit and wholesale funding costs.
Core fee revenue declined 3% quarter-over-quarter to $80.9 million, driven by decreases in Cash Connect fees, private wealth management, and other bank fees.
"Despite uncertain economic conditions, WSFS continued to perform well in the first quarter with a core EPS of $1.13 and a core ROA of 1.29%," said Rodger Levenson, Chairman, CEO and President.
The company’s net interest margin expanded 8 basis points from the previous quarter to 3.88%, reflecting deposit repricing actions and reduced wholesale funding.
Total (EPA:TTEF) client deposits decreased 1% from the end of 2024 to $16.9 billion, primarily due to seasonality and expected outflows in Trust deposits.
WSFS repurchased over 1 million shares during the quarter for $53.8 million and paid $8.8 million in dividends, returning a total of $62.6 million to shareholders.
The board approved a 13% increase in the quarterly dividend to $0.17 per share and authorized an additional share repurchase of up to 10% of outstanding shares.
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