WSFS Financial completes sale of Upstart consumer loan portfolio

Published 08/07/2025, 14:44
WSFS Financial completes sale of Upstart consumer loan portfolio

WSFS Financial Corporation (NASDAQ:WSFS), a $3.3 billion market cap financial institution with a solid track record of profitability, announced Tuesday the completion of the sale of the majority of its remaining unsecured consumer lending portfolio that was originated through its partnership with Upstart (NASDAQ:UPST) Holdings, Inc. The loans involved had an outstanding book balance of $98.1 million as of May 31, 2025. According to InvestingPro analysis, WSFS maintains strong financial health metrics and currently trades at an attractive P/E ratio of 11.56x.

According to a statement provided in a Securities and Exchange Commission filing, WSFS expects its second quarter 2025 financial results to reflect a net charge-off of approximately $4.3 million against previous reserves of $9.1 million. The company also anticipates a provision release of about $4.8 million related to these transactions. WSFS stated it expects the ongoing impact from the sale to be immaterial to its financial results, which is particularly noteworthy given the company’s steady revenue growth of 4.38% over the last twelve months.

The transactions accelerate the disposition of a non-core consumer loan portfolio that has been in runoff mode since early 2024. WSFS noted that its second quarter 2025 results have not yet been finalized and that the actual amounts of charge-offs and provision releases could differ from current estimates. Investors can expect the next earnings release on July 28, 2025. For deeper insights into WSFS’s financial health and detailed analysis, check out the comprehensive Pro Research Report available on InvestingPro.

This information is based on a press release statement included in a recent SEC filing.

In other recent news, WSFS Financial Corporation reported its first-quarter earnings for 2025, with an earnings per share (EPS) of $1.13, surpassing analyst expectations of $1.04. However, the company’s revenue slightly missed estimates, coming in at $256.1 million against a forecast of $256.6 million. Despite the revenue miss, WSFS demonstrated strong performance with a core return on assets of 1.29% and a net interest margin expansion to 3.88%. In management changes, WSFS Bank appointed Allan Matyger as the new Executive Vice President and Chief Information Officer, highlighting his 25-year tenure and leadership in digital transformation. Additionally, Rebecca Seeman was named Senior Vice President, Chief Operating Officer of Consumer Banking, bringing nearly two decades of experience to her role. Keefe, Bruyette & Woods maintained a Market Perform rating on WSFS Financial with a price target of $64.00, citing the bank’s strong market positioning and income diversification. These developments reflect WSFS Financial’s strategic moves and operational resilience in a challenging economic environment.

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