DEF: WSFS Financial Corporation Announces 2025 Annual Meeting of Stockholders

WSFS Financial Corporation is set to hold its 2025 Annual Meeting of Stockholders virtually on May 15, 2025, to vote on the election of directors, executive compensation, and the ratification of the company's independent auditor.

Summary

• WSFS Financial Corporation will hold its 2025 Annual Meeting of Stockholders virtually on May 15, 2025.
• Stockholders of record as of March 21, 2025, are eligible to vote.
• The meeting will address the election of four directors, an advisory vote on executive compensation, and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
• The Board of Directors recommends voting for the director nominees, the executive compensation proposal, and the ratification of KPMG LLP.
• WSFS delivered strong results in 2024, including substantial performance in our fee-based businesses, solid loan and deposit growth, prudent asset quality management, and continued optimization of recent franchise investments.
• EPS (diluted) was $4.41, ROA was 1.27%, Fee Revenue % was 32.5%, Net Income was $263.7M and ROTCE was 17.91%.

Sentiment

Score: 8

Explanation: The document presents a positive outlook for WSFS, highlighting strong financial performance and strategic initiatives. The tone is optimistic and confident, reflecting a well-managed and successful company.

Positives

• WSFS delivered strong results in 2024, including substantial performance in our fee-based businesses, solid loan and deposit growth, prudent asset quality management, and continued optimization of recent franchise investments.
• Fee revenue increased 18% compared to last year to $340.9 million, primarily driven by Cash Connect from higher ATM bailment revenue and growth in smart safes as well as record revenue from our Wealth Management segment.
• Deposits grew 4%, compared to 2023, primarily driven by the Consumer and Commercial businesses.
• Loans grew 3% with mid-single digit growth in commercial and industrial, and commercial mortgage.
• WSFS returned 50% of reported earnings to stockholders.
• Record annual fee revenue of $149.2 million, driven by growth across Institutional Services, Private Wealth Management, and the Bryn Mawr Trust Company of Delaware.
• Fee revenue growth of 38%, primarily driven by higher ATM bailment revenue and a 14% increase in Smart Safes.

Negatives

• The NIM of 3.82% decreased 29bps compared to the prior year, reflecting continued mix shift and growth in higher-priced deposits and was partially offset by higher loan volumes and yields.
• Net charge-offs were 40bps of average loans and 27bps when excluding the Upstart portfolio.

Risks

• The Proxy Statement contains forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ materially from those currently anticipated.
• These risks and uncertainties are discussed in detail in the risk factors in Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2024, and in subsequent quarterly reports on Form 10-Q and current reports on Form 8-K.

Future Outlook

As WSFS embarks on its 2025-2027 Strategic Plan, the company is energized and strategically focused on driving franchise growth and seizing share within its markets, leveraging its unique market position, strong capital ratios, and diversified business model.

Management Comments

• WSFS delivered strong results in 2024, including substantial performance in our fee-based businesses, solid loan and deposit growth, prudent asset quality management, and continued optimization of recent franchise investments.
• We are particularly pleased with the increase in fee revenue %, which rose over 400 bps, showcasing the strength and diversification of our revenue streams.
• Notably, WSFS returned $131.2 million of capital to stockholders while still being able to grow our strong and prudent capital ratios.
• We are confident that our strategic focus and strong financial foundation will drive continued success and create significant value for all stakeholders in the years ahead.

Industry Context

The document highlights WSFS's performance in the context of the banking industry, particularly its ability to manage deposit pricing strategies and maintain a strong net interest margin, as well as its focus on fee-based businesses for revenue diversification.

Comparison to Industry Standards

• The document compares WSFS's performance to the KBW Nasdaq Regional Bank Index (KRX) for performance comparison for our STI and PSUs.
• The document states that our Targets are set based on a relative analysis and endeavor to align with the 75th percentile performance of the KRX index.
• The document lists a custom CPG, in addition to other relevant market compensation data sources, to assess competitive compensation levels for Executive Leadership and the alignment of base compensation, incentives, and equity awards with our compensation philosophy.
• The document states that our intent is that WSFS rank near the middle of the peer group when multiple size factors are considered.

Management Changes

Related Party Transactions

• In the ordinary course of its business, WSFS Bank makes loans to our directors, officers and Associates.
• All loans granted to related parties, regardless of the amount, are reported to our Board of Directors.
• These loans are subject to limitations and restrictions under federal banking laws and regulations, including Regulation O, and are made on substantially the same terms (including interest rate and collateral) as, and credit underwriting procedures that are not less stringent than, those prevailing at the time for comparable loans with persons not related to WSFS Bank.
• These loans do not involve more than the normal risk of repayment or present other unfavorable features to WSFS Bank.
• In accordance with our written policy and Regulation O of the Board of Governors of the Federal Reserve System, any extensions of credit granted by the Bank to a related party in excess of $500,000 requires pre-approval by our Board of Directors, with the interested party (if a director) abstaining from participating directly or indirectly in the voting.
• During 2024, there were no loans that constituted extensions of credit under Regulation O.

Stakeholder Impact

• WSFS returned 50% of reported earnings to stockholders.
• The company is committed to balancing the evolving needs of its Clients with the need to minimize its adverse impact on the environment.
• Associates are encouraged to volunteer with nonprofits of their choice, and the company offers each Associate four hours per month of compensated work time for participation in volunteer activities.
• The WSFS Cares Foundation made more than $2.7 million in grants and contributions to 323 charitable organizations in our Communities.

Next Steps

• Stockholders are encouraged to vote their shares in advance of the Annual Meeting.
• Stockholders must register at https://web.viewproxy.com/wsfs/2025 by 11:59 P.M. ET on May 12, 2025, to attend the virtual Annual Meeting.
• The Board of Directors will consider the outcome of the advisory vote on executive compensation when making future compensation decisions for NEOs.

Key Dates

Keywords

Annual Meeting, Proxy Statement, Executive Compensation, Board of Directors, KPMG LLP, Financial Performance, WSFS