WSFS Financial Corporation announced strong financial results for the second quarter of 2025, with diluted EPS of $1.27 and a return on average assets (ROA) of 1.39%. Core EPS was $1.27 and core ROA was 1.38%, reflecting robust performance. Net interest margin (NIM) improved by 1 basis point linked quarter to 3.89%.
Core fee revenue grew 9% quarter-over-quarter to $88.0 million, driven by strong performance in Wealth and Trust, WSFS Mortgage, Capital Markets, and Banking businesses. Wealth and Trust revenue increased by $4.6 million, or 12% linked quarter, with double-digit increases in Institutional Services and The Bryn Mawr Trust Company of Delaware.
Client deposits grew 6% on an annualized basis compared to the first quarter of 2025, primarily from the Trust business, with total client deposits increasing by $242.4 million. Gross loans and leases decreased slightly by $10.7 million, though excluding runoff portfolios, they increased by $65.5 million, or 2% annualized, driven by C&I, WSFS-originated consumer loans, and residential mortgage.
The company returned $87.3 million of capital to shareholders during the quarter. Total net credit costs decreased by $3.3 million quarter-over-quarter to $14.3 million, and net charge-offs decreased to $9.8 million, or 30 basis points annualized of average gross loans. Excluding the Upstart portfolio, net charge-offs were $4.5 million, or 14 basis points annualized.
WSFS transferred Upstart loans with an outstanding book balance of $98.1 million to loans held for sale, resulting in an $8.1 million write-down. This strategic move aims to streamline the loan portfolio. The company's performance provides momentum as it enters the second half of the year, as reflected in its updated FY 2025 outlook.
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