Regional banking company WSFS Financial (NASDAQ: WSFS) announced better-than-expected revenue in Q4 CY2025, with sales up 3.8% year on year to $271.9 million. Its GAAP profit of $1.34 per share was 9.1% above analysts’ consensus estimates.
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WSFS Financial (WSFS) Q4 CY2025 Highlights:
- Net Interest Income: $187.4 million vs analyst estimates of $180.6 million (5.1% year-on-year growth, 3.8% beat)
- Net Interest Margin: 3.8% vs analyst estimates of 3.8% (2.2 basis point beat)
- Revenue: $271.9 million vs analyst estimates of $267 million (3.8% year-on-year growth, 1.8% beat)
- Efficiency Ratio: 59.5% vs analyst estimates of 61.6% (218.8 basis point beat)
- EPS (GAAP): $1.34 vs analyst estimates of $1.23 (9.1% beat)
- Tangible Book Value per Share: $33.11 vs analyst estimates of $32.90 (20.9% year-on-year growth, 0.6% beat)
- Market Capitalization: $3.16 billion
Company Overview
Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Thankfully, WSFS Financial’s 11% annualized revenue growth over the last five years was decent. Its growth was slightly above the average banking company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. WSFS Financial’s recent performance shows its demand has slowed as its annualized revenue growth of 2.9% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, WSFS Financial reported modest year-on-year revenue growth of 3.8% but beat Wall Street’s estimates by 1.8%.
Net interest income made up 70% of the company’s total revenue during the last five years, meaning lending operations are WSFS Financial’s largest source of revenue.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
WSFS Financial’s TBVPS grew at a decent 5% annual clip over the last five years. TBVPS growth has accelerated recently, growing by 16.4% annually over the last two years from $24.43 to $33.11 per share.
Over the next 12 months, Consensus estimates call for WSFS Financial’s TBVPS to grow by 10.2% to $36.49, mediocre growth rate.
Key Takeaways from WSFS Financial’s Q4 Results
We enjoyed seeing WSFS Financial beat analysts’ net interest income expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $58.20 immediately after reporting.
WSFS Financial may have had a good quarter, but does that mean you should invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
