Earnings call transcript: WSFS Financial beats Q3 2025 earnings expectations

WSFS Financial Corporation reported its Q3 2025 earnings, surpassing analysts’ expectations with an EPS of $1.40 against the forecasted $1.25, marking a 12% surprise. The company’s revenue also exceeded predictions, reaching $270.5 million compared to the forecast of $268.48 million. Despite these positive results, WSFS shares experienced a minor decline of 0.08% in the latest trading session, closing at $52.8. According to InvestingPro analysis, the stock appears fairly valued at current levels, with a market capitalization of $2.96 billion and a P/E ratio of 11.5x.

Key Takeaways

• WSFS Financial’s EPS exceeded expectations by 12%.
• Revenue for Q3 2025 surpassed forecasts, reaching $270.5 million.
• The company’s stock price fell slightly despite strong earnings results.
• WSFS continued to show growth in its home lending and wealth management sectors.
• The company maintained a strong capital position with a CET1 ratio of 14.39%.

Company Performance

WSFS Financial demonstrated robust performance in Q3 2025, with a notable increase in core net income by 21% year-over-year. The company’s core return on assets stood at 1.40%, while the core return on tangible common equity reached 18.7%. WSFS showed strong momentum in its home lending business, with a 5% growth in its residential mortgage portfolio quarter-over-quarter. InvestingPro data reveals the company has maintained dividend payments for 28 consecutive years, with a current dividend yield of 1.32%. Management has been actively buying back shares, demonstrating confidence in the company’s future prospects. InvestingPro subscribers have access to 6 additional key insights about WSFS’s financial health and growth potential.

Financial Highlights

• Revenue: $270.5 million, up from the forecast of $268.48 million.
• Earnings per share: $1.40, surpassing the forecast of $1.25.
• Net interest margin expanded by 2 basis points to 3.91%.
• Tangible book value per share increased by 12%.

Earnings vs. Forecast

WSFS Financial outperformed earnings expectations with an EPS of $1.40, 12% higher than the forecasted $1.25. Revenue also slightly exceeded predictions, reaching $270.5 million compared to the anticipated $268.48 million. This performance reflects the company’s continued growth and strategic focus on core business areas.

Market Reaction

Despite the positive earnings surprise, WSFS Financial’s stock experienced a minor decline of 0.08% in the latest trading session, closing at $52.8. This slight drop comes amid a broader market trend where financial stocks have faced volatility. The stock remains within its 52-week range of $42.44 to $62.75. InvestingPro analysis shows the company maintains a solid financial health score of 2.4 (FAIR), with particularly strong profitability metrics. The stock has delivered a modest 2.38% total return over the past year, while analysts have set price targets ranging from $59 to $67.

Outlook & Guidance

WSFS Financial maintained its guidance for low single-digit loan growth and anticipates a monthly runoff of $15-17 million from the Spring EQ portfolio. The company plans to continue focusing on organic growth and talent acquisition, with a full-year 2026 outlook expected in January.

Executive Commentary

• "We are buying back approximately 100% of our net income," said David Burg, CFO, highlighting the company’s strong capital management strategy.
• "Our reputation and quality of service is really being recognized in the marketplace," stated Art Bacci, COO, emphasizing the company’s competitive advantage in service quality.
• "We feel good about being able to grow that business and continuing to lean into CNI," noted Rodger Levenson, CEO, on the company’s future growth prospects.

Risks and Challenges

• Potential market volatility affecting financial stocks.
• Economic uncertainties that could impact consumer lending.
• Competition in the financial services sector.
• Regulatory changes that may influence operational strategies.

Q&A

During the earnings call, analysts inquired about WSFS’s capital management strategy, margin management approach, and the performance of the Cash Connect business. Executives also highlighted growth strategies for the wealth and trust business, reinforcing the company’s commitment to expanding its market presence.

Full transcript - WSFS Financial Corporation (WSFS) Q3 2025:

Colby, Conference Operator: Hi, my name is Colby, and I’ll be your conference operator today. At this time, I would like to welcome you to the WSFS Financial Corporation third-quarter earnings call. All lines have been placed on mute to prevent any background noise, and after the speaker’s remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star then the number one on your telephone keypad. If you would like to withdraw your question at any time, please press star one again. Thank you. I’d now like to turn the call over to your host today, to Mr. David Burg, Chief Financial Officer. Sir, you may begin.

David Burg, Chief Financial Officer, WSFS Financial Corporation: Great, thank you very much, and good afternoon, everyone, and thank you for joining our third-quarter 2025 earnings call. Our earnings release and earnings release supplement, which we will refer to on today’s call, can be found in the Investor Relations section of our company website. With me on this call are Rodger Levenson, Chairman, President, and CEO, and Arthur Bacci, Chief Operating Officer. Prior to reviewing our financial results, I would like to read our safe harbor statement. Our discussion today will include information about our management’s view of future expectations, plans, and prospects that constitute forward-looking statements.

Actual results may differ materially from historical results or those indicated by these forward-looking statements due to risks and uncertainties including, but not limited to, the risk factors included in the annual report and Form 10-K, and our most recent quarterly reports on Form 10-Q, as well as other documents we periodically file with the SEC. All comments made during today’s call are subject to the safe harbor statement. I will now turn to our financial results. During the third quarter, WSFS continued to demonstrate the strength of our franchise and diverse business model. The company delivered a core EPS of $1.40, core return on assets of 1.40%, and core return on tangible common equity of 18.7%, which are all up versus the second quarter. On a year-over-year basis, core net income increased 21%, core PP&R grew 6%, and core earnings per share increased 30%.

In addition, our tangible book value per share increased by 12%. Net interest margin expanded two basis points to 3.91% quarter over quarter. This reflects a reduction in total funding cost of two basis points with a deposit beta of 37%. Given the September rate cut, our exit beta for September is 43%, which reflects the repricing actions taken after the rate cut. Net interest margin for the quarter benefited from an interest recovery from a previously non-performing loan, which added about four basis points. Core fee revenue was flat quarter over quarter, as our results were impacted by two previously announced strategic exits in wealth and trust, as well as the Spring EQ earnout from last quarter. Excluding these items, core fee revenue grew 5% quarter over quarter, primarily driven by capital markets and Cash Connect.

Our wealth and trust business continues to perform very well and grew 13% year over year. Total client deposits increased 1% linked quarter, driven by commercial business. On a year-over-year basis, client deposits grew 5%, driven by growth across consumer, commercial, wealth, and trust. Importantly, non-interest deposits grew 12% year over year and continue to represent over 30% of our total client deposits. Loans were down 1% linked quarter, driven by the previously announced sale of the Upstart loan portfolio and continued runoff in our Spring EQ portfolio. Excluding these items, loans were generally flat this quarter, but we saw solid momentum in several areas. Our residential mortgage and WSFS-originated consumer loan portfolios both delivered strong growth with linked quarter increases of 5% and 3%, respectively. These results reflect the momentum of our home lending business, as well as the learnings attained from our partnership with Spring EQ.

In commercial, new fundings this quarter were offset by lower line utilization and the payoff of problem loans, which supported improvements in our asset quality. Importantly, our commercial pipeline remains strong across both C&I and commercial real estate, increasing to approximately $300 million. We saw a meaningful improvement across our asset quality metrics during the quarter. Total net credit costs were $8.4 million this quarter, down $5.9 million compared to the prior quarter. Net charge-offs were 30 bps for the quarter and 21 bps when excluding NewLane. Importantly, we saw a decline in problem assets, delinquencies, and non-performing assets this quarter. NPAs declined by over 30% to 35 bps, driven by two large payoffs with no additional losses, while delinquencies declined by 34%. In each of these areas, we are now at or below the lowest level in the past year.

During the third quarter, WSFS returned $56.3 million of capital, including buybacks of $46.8 million, or 1.5% of our outstanding shares. Year to date, we have repurchased 5.8% of our outstanding shares. Despite these higher levels of repurchase, our capital position remains very strong, with a CET1 of 14.39%, well in excess of our medium-term operating target of 12%. We intend to maintain an elevated level of buybacks in line with our previously communicated glide path towards our capital target of 12%, while retaining discretion to adjust the pace of these buybacks based on the macro environment, our business performance, and potential investment opportunities. These results position us well to meet our previously announced full-year outlook, even with an additional October rate cut, which was not previously included in our assumptions.

While the path and timing of future rate cuts remains uncertain, it’s important to note that the impacts of additional rate cuts on our financial results will not be linear as we continue to manage our margins through deposit repricing, our hedging program, and securities portfolio strategy. As we have done in the past, we will provide a full-year 2026 outlook in January with the release of our fourth quarter 2025 financial results. We remain excited about the future and committed to continuing to deliver high performance. Thank you, and we’ll now open the line for questions.

Colby, Conference Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. Your first question comes from the line of Russell Gunther from Stephens Inc. Your line’s open.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: Hey, good afternoon, guys.

David Burg, Chief Financial Officer, WSFS Financial Corporation: Hey, Russell, good afternoon.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: I wanted to start with the bigger picture question, David, and you touched on it towards the end of your prepared remarks. That medium-term target on CET1 is challenging to hit given just how much money you guys make. It would be helpful to get a sense, big picture, in your mind, what’s your base case scenario to achieving that target? What does that assume for organic growth rates over the next couple of years, acquisitive growth, be it depositories or fee verticals? You mentioned potentially flexing the buyback at a more accelerated clip. Your base case to get there would be helpful to start.

David Burg, Chief Financial Officer, WSFS Financial Corporation: Yeah, absolutely, Russell. As you’ve seen this year, we are buying back at a clip that’s significantly ahead of both the last couple of years. We’re buying back approximately 100% of our net income. Given some of the balance sheet dynamics, the sale of the Upstart portfolio, for example, the runoff in some of the partnership portfolios, our RWA has not increased. Therefore, our capital levels, despite these buybacks, are still very high and actually increased since the beginning of the year. That’s the dynamic. As well as the profitability levels that you mentioned, we do generate a lot of capital.

I think that if you look forward, even with a robust growth rate on our balance sheet, we still have a lot of dry powder to execute the buybacks at or above the level of 100% of our net income for a couple of years, for two to three years. That’s really the strategic intention that we have. Depending on what happens with the balance sheet, we may accelerate that path. I can completely see us leaning in more and doing even in excess of our net income on the buyback side. Obviously, as you said, we continuously evaluate different investment opportunities. The first priority and the preference is always to invest the capital in the business where those creative opportunities exist. After that, we would look to return.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: Okay, got it. Thank you. Just a second question for me. Asset quality resolution and trends were really constructive this quarter. You guys have a healthy reserve, and we just talked about the healthy CET1 for that matter. I guess how are you thinking about reserve levels here amid what is still a somewhat volatile macro? Could you share particular sectors of your loan portfolio where you continue to keep a closer incremental eye?

David Burg, Chief Financial Officer, WSFS Financial Corporation: Yeah, I think on asset quality, generally, as you’ve seen in our numbers, we have good momentum and good progress. I would say a couple of things. First and foremost, with respect to asset quality, one of the things that we try to do, obviously, is discipline originations. It starts there, and we try to have recourse for most of our lending, vast majority of it, and those types of actions to make sure we have good underwriting. We also try to be proactive around engagement with clients should there be unexpected bumps and bruises. We have a very kind of long forward-looking pipeline. We stress our portfolio for higher rates. Where there are issues, where we think there are issues at maturity, we try to engage very, very early and proactively with our clients.

That’s been the key to working through our pipeline and some of the migration that you’ve seen and the favorable trends that you’ve seen. I think commercial is always going to be lumpy, and there may be one or two uneven situations. Generally, we feel good about our portfolio, and we feel good about continuing to make progress on resolving and working through the remaining NPAs. The consumer asset quality has been very strong both within our home lending business and within the Spring EQ portfolio. We feel good about the trends, and we feel good about continuing to make progress. In terms of our reserve, when you look at the pure macro data that goes into the model, it would suggest that we have the capacity to release some reserves.

We have conservatively made some qualitative offsets where we see still potential volatility in the macro economy to keep that reserve where it is. I think that’s purely a function of all the volatility that we see with rates, potential inflation, some of the labor weakness, and us erring more on the conservative side. Hopefully that covers the question, but please let me know if I missed something.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: No, that’s perfect, David. Thank you very much. I’ll step back. Thank you, guys.

David Burg, Chief Financial Officer, WSFS Financial Corporation: Thanks, Russell.

Colby, Conference Operator: Your next question comes from the line of Kelly Mota from KBW. Your line is open.

David Burg, Chief Financial Officer, WSFS Financial Corporation: Hi, Kelly.

Colby, Conference Operator: Your next question comes from the line of Christopher Marinette from Janney Montgomery Scott.

David Burg, Chief Financial Officer, WSFS Financial Corporation: Hey, good afternoon. Thank you for hosting us today. I wanted to dig in further to the wealth and trust business lines and just understand a little bit more about the future growth in terms of new accounts being opened versus just doing more business with existing accounts. I know you called a little bit of that out on The Bryn Mawr Trust, but I wanted to do more on the other pieces.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: Sure. Hi, Chris. Thanks for the question. As you know, our wealth business is a pretty diverse business. There are really three business lines within that business: institutional services, The Bryn Mawr Trust Company of Delaware, and private wealth management. Also, about 60% of the revenue in that business is really not AUM-based revenue, not tied to AUM, but really tied to new accounts and tied to transaction activity. We’ve seen the places where we’ve seen a lot of new activity growth, new clients, new accounts have been both on the institutional services side and The Bryn Mawr Trust Company of Delaware side. When you look at year-over-year, institutional services is up about 30% this quarter, and The Bryn Mawr Trust Company of Delaware is up about 20% this quarter. We’re seeing growth in new accounts and transactions with existing clients. We’re seeing a lot of activity there.

Art Bacci, Chief Operating Officer, WSFS Financial Corporation: Chris, this is Art. I would tell you on a few things. I mean, the institutional services team just came back from the ABS East Conference in Miami this week, and they’re jazzed. I mean, our reputation and our quality of service is really being recognized in the marketplace. There have been comments about deterioration in service with some other trustees. We are continuing to see a very robust pipeline with new clients and actually becoming the preferred provider for many clients. On The Bryn Mawr Trust Company of Delaware side, similar thing. We’ve seen a recent bank acquisition where one of the subsidiaries was a Delaware trust, and we’re seeing clients starting to leave that and coming to us. We’re seeing opportunities on the international side of that business. That team’s really continuing to look to grow its business.

On the private wealth management side, we’ve kind of got past the Commonwealth divestiture, if you will. The last two months have been net client cash flow positive, and we’re starting to see very good referrals from commercial. We’re also really honing in on COIs and really trying to focus on getting more business from some of our COIs. I think all in all, we have a really positive outlook going into 2026 with our wealth and trust businesses.

David Burg, Chief Financial Officer, WSFS Financial Corporation: Great. Thank you both for that. I guess just to extend one more thought. You have operating leverage on all ends of the company, but is the operating leverage greater in the wealth space where you can create more earnings from that versus the bank operation?

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: I think one of the things that goes to the diversity of the business model, when you look at our profit margins in the wealth business, I would say they’re higher than the traditional profit margins that you may see in other wealth businesses. It really goes to that model. We do have a lot of operating leverage and a lot of opportunity for scale there, for sure, particularly institutional services and The Bryn Mawr Trust Company of Delaware. I definitely would echo that comment.

Art Bacci, Chief Operating Officer, WSFS Financial Corporation: You can see it in our deposit base that comes out of the trust business because that’s large deposits. They’re not using our branch network or ATMs. It’s a very scalable business for us.

David Burg, Chief Financial Officer, WSFS Financial Corporation: Great. Thanks again for taking our calls today.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: Yeah, thanks, Chris.

Colby, Conference Operator: Your next question comes from the line of Janet Lee from TD Bank. Your line’s open.

Hello.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: Hi, Janet.

Hi. On Cash Connect business, if rates were to come down, I would expect the revenue to get compressed, but then I believe that the funding side of it could offset. In terms of the NII benefit coming from the Cash Connect, how do you guys forecast in terms of the potential financial benefit coming from Cash Connect increasing, or is it more compressed?

Yeah, Janet, happy to answer that. I would say a couple of things on Cash Connect. One, I think the way you described it is exactly right. The Cash Connect revenue, the pricing is tied to interest rates. As interest rates come down, we would expect a reduction in our fee revenue in Cash Connect, but that would be more than offset in a reduction in expenses. Basically, from a profitability perspective, we do benefit from rates coming down. You can think of it as roughly for every 25 basis points, about a $300,000 kind of pre-tax profitability benefit.

That’s, you know, as we’ve seen that play out over the last couple of cuts, and as we have the cuts, September is really not in the numbers yet, but as we have September, potentially the cut next week in December, all of those will flow in into the beginning of next year. I would say that’s one dynamic with Cash Connect, and we’ll drive towards increasing profitability. The other thing, which is if you look at our segment reporting in Cash Connect, one of the things we’ve been talking about is increasing the profit margins in that business in general. That’s not just because of rates, but also because of pricing leverage that we think we have in the market, given our market share. That’s also on the expense and efficiency side. There are a few different levers to that. That’s been playing out nicely so far.

If you look at year over year, the profit margin in that business was about a little bit under 6%. This year, we’re over 10%. Last quarter, it’s important to note that there was an insurance recovery last quarter, which, so the margins look a bit elevated. If you normalize for that, last quarter was about 8%. We went from kind of 6% to 8% to 10%, and that’s the trajectory that we were looking for. We’re executing against that strategy.

Art Bacci, Chief Operating Officer, WSFS Financial Corporation: Janet, just as a reminder, the way we account for the bailment business, the benefit that David’s talking about won’t necessarily flow through NII. It’s a combination of fee income and non-interest expense.

Thank you. You maintain your low single-digit all guidance, including the low single-digit commercial loan growth for the year. That includes the problem loan payoff that you experienced in the quarter. Could you help us size the pace of the payoffs coming from the consumer partnership going forward? Should it decelerate from the current $140 million levels? How should I think about the total impact of the payments and the trajectory there?

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: Janet, let me take the consumer first, and then I’ll circle back around to the commercial question. On the consumer side, we had two things happen this quarter, and it’s important to separate them. One was we closed the sale of the Upstart portfolio. That was about $85 million that came off our balance sheet at the beginning of the quarter. As you know, that was a non-strategic portfolio that was in runoff. It had some elevated net charge-offs. We made the strategic decision to exit that portfolio, and we were also able to release some reserves based on that transaction. That’s the Upstart portfolio. Beyond that, the remaining runoff that you see is really in the Spring EQ portfolio. That runoff for the quarter was about $50 million.

That’s the pace, more or less, that we would expect, coming somewhere in the $15 million to $17 million per month is what we would expect in that runoff of Spring EQ. We expect that to continue. One of the areas where we’ve been leaning into and we think we’ve had good momentum and we think we have continued momentum is in our home lending business, which is our mortgage business and our WSFS-originated consumer loans, which are primarily PLOC, lines of credit, and installment loans. We’ve had really annualized double-digit growth for a few quarters there. That’s really more than offsetting the Spring EQ runoff that you see. We think positively about that growth continuing. We think we have some differentiated origination capabilities in that mortgage business. We’ve been growing our origination officers. We feel good about leaning into that area.

That’s on the residential side, on the consumer side. On the commercial side, this quarter was really impacted by a couple of things. One was the payoff of the problem loans, which obviously is a good thing. We like to see that, and that supports our asset quality improvement. We also saw line utilization being down this quarter. That’s kind of a bit of a volatile number. That moves up and down. Some of the economic uncertainty plays into that. Generally, that’s just a function of business activity. Generally, if you kind of separate that, we feel we continue to feel good about our pipeline altogether across the board, including CNI. I would say we’re focused on definitely making accretive and profitable originations. There’s a lot of competition in CNI. We don’t want to be the low, we’re not the low price point in the market.

We want to be very thoughtful around profitability. We want to be very thoughtful about underwriting. Having said that, we feel very good about our pipeline. Our pipeline now is at a higher level than it’s been in a number of quarters, at about $300 million in total. We feel good about our pipeline. I would also add that we’re continuing to win talent in the market, which gives us a lot of confidence. For example, we recently announced the new Philadelphia Market President, who was the Market President for one of the major super regional banks in the area for Philadelphia. I think winning talent like that gives us confidence, and I think demonstrates the confidence that others have in the franchise as well.

We feel good about, you know, it’s hard to predict quarter over quarter, but we feel good about being able to grow that business and continuing to lean into CNI. That’s really the relationship engine that we want to anchor to.

Thank you.

Colby, Conference Operator: Your next question comes from the line of Kelly Mota from KBW. Your line is open.

Hey, good afternoon. Sorry about the technical difficulties, and thanks for the question.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: Hey, Kelly, no problem.

Maybe just piggybacking where you left off last, you noted, you know, recruitment of a Philly Market President. Clearly, organic growth is a focus. Are there other areas where you’re looking to add talent where you think, you know, there’s room to bolster up, either in terms of, you know, product line, wealth, or the core bank, or parts of the geography that look like, you know, attractive growth opportunities and places where you could add some folks?

Yes, the answer is yes. Just like I mentioned, the commercial example, we have other relationship managers joining the commercial team. That continues to be an area that we’re looking to continue to increase. That is an area of focus, as well as the wealth business. That’s been an area of focus all along. We’ve had some very successful liftouts of teams in the last 12 to 18 months there that are really starting to bear fruit and play out the thesis. That’s another area where we’re continuously looking at talent, both from a liftout perspective, as well as, you know, we look at potential RIA acquisitions that we’ve done in the past. We continuously evaluate talent across our footprint. We think we have a lot of opportunity there.

Art mentioned earlier the referrals, but that’s something that we really think there’s a significant amount of opportunity in the referral pipelines across our businesses. That’s between wealth and commercial, between small business, and between our home lending business in each of those. There’s really a lot of untapped potential there as well.

Got it. That’s helpful. Maybe turning back from the margin, I apologize if I missed this, but you guys have done a really great job managing the margin, keeping an overall relatively high-level margin and neutralizing some asset sensitivity. If we get a couple of cuts here again this quarter, do you think you have enough flex in the deposit base to absorb some of that, or could there be some near-term pressure in that margin ahead? Thank you.

Yeah, Kelly, happy to go into work through that a little bit. I think there’s, I’ll give you a short-term answer and a longer-term answer. From a shorter-term answer, you know, we do have sensitivity in our net interest margin, as you mentioned. I would characterize that as about 3 basis points per 25 basis point rate cut. That’s really the near-term impact. When you think about the net interest margin this quarter, we were at 3.91. We had the one interest recovery. If you kind of normalize for that, you know, we’re in the high 3.80s. With a couple of few rate cuts that go into the fourth quarter, you know, we would tick down to maybe about 3.80, around kind of in that ballpark.

I would say the longer-term answer is that we have a number of tools that we use to offset that sensitivity after the initial impact. The best evidence that I can give you of that is if you look at what’s happened over the last year, where we’ve had, you know, as you know, 125 basis points of rate cuts, but our margins are up year over year over 10 basis points. That sensitivity that I mentioned of about 3 basis points per cut, you know, will go to 1 to 2 basis points as we are able to take the actions that we take. Those actions are, well, one is the deposit repricing that you mentioned.

We continue to, our exit beta for the quarter, the cut obviously happened at the end of September, but if you look at the exit beta at the end of the month, it was about 43% in the low 40s. We’re going to run, you know, a similar playbook for the other cuts, and we think that we can be kind of in that low 40 beta for each of the upcoming cuts. That’s number one. Two is we have, as you know, the hedging program where we have floor options that mitigate and neutralize some of the asset sensitivity. We have about $850 million of those that are in the money right now. With the next rate cut, another $250 million would come in the money. If we have three more cuts, you would have the entire $1.5 billion program actually in the money.

That would neutralize essentially $1.5 billion of variable rate loans and, you know, essentially neutralize that to look like fixed. That’s, you know, that’s something that we continue to deploy. We’re going to continue to utilize that program throughout 2026. We’re, you know, we’re thoughtful about maturities there and making sure that, you know, that full $1.5 billion is going to be deployed. The third tool that we’ve been using is obviously new to the extent that we’ve been growing new deposits, and we’re able to reinvest it. You think about a steeper yield curve going forward, and you’re able to originate those deposits and the low-cost deposits that we’ve been able to have and then reinvest them at the higher yields. That, of course, takes some time to play out, but that’s a big supporter of the net interest margin.

The last thing that I will call out is our securities portfolio. As you know, our securities portfolio yields south of 2.5%. It rolls off, and we have about $500 million of cash flow every year that comes off that securities portfolio that then we reinvest either into loans or potentially other securities. We reinvest it and we pick up a lot of yield. There’s four to five basis points of annual yield pickup from that rollover. The combination of all of those things is what allowed us to really mitigate the impact more than what the kind of the paper math would suggest. We’ll continue to lean in and deploy those tools.

Great. I really appreciate all the color on that. That’s really helpful and will be helpful to go back to. Just one point of tying up the loose ends of clarification. Can you remind me how much floating rate loans you have and maybe index deposits just to help, you know, manage our margin with that component? Thank you.

Yeah, so our floating rate loans are a little bit over 50%, and our loan beta is about 50%. When you incorporate the hedges, the loan beta drops to a little bit over 40%. That’s really, you know, when you think about our deposit beta in that range as well, that’s how we try to neutralize the portfolio. That’s how we think about it. On the deposit side, as you know, we have the CD book, which is the time maturities. Most of that CD book is in kind of the six-month with a little bit of 11-month, and that kind of matures on its cycle. The other deposits are mostly non-indexed. We have about $700 to $800 million of kind of index deposits.

Thanks again for all that, David. That’s helpful. I’ll step back.

Sure.

Colby, Conference Operator: Thank you. With no further questions in queue, I would like to turn the conference back over to David Burg.

Rodger Levenson, Chairman, President, and CEO, WSFS Financial Corporation: Okay, thank you very much, everyone, for joining the call today. If you have any specific follow-up questions, please feel free to reach out to Investor Relations or me. Have a great day.

Colby, Conference Operator: This concludes today’s conference call. You may now disconnect.

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