WSFS FINANCIAL CORP
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
WSFS$78.94-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0000828944-26-000028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0000828944-26-000038
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 115 previous paragraphs and 120 current paragraphs.
63 unchanged; 47 reworded; 10 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
◦Gross loans and leases grew$162.6 million, or 1.2%, during the quarter.
Current report
▪WSFS Institutional Services® fees increased 45%, BMT-DE increased 22%, and Private Wealth Management increased 14%.
Current report
•Nine Months Ended September 30, 2026
Current report
•Other assets increased $131.8 million, primarily due to increases of $72.8 million in our derivatives from our Capital Markets business, $42.1 million in deferred taxes primarily due to decreased market values on available-for-sale investment securities, and $23.2 million from receivables due to the settlement timing of ACH payments.
Current report
•Loans, held for sale decreased $40.2 million due to the retention of originated mortgage and SBA loans.
Current report
Three months ended September 30, 2026: During the three months ended September 30, 2026, noninterest expense was $161.6 million, a decrease of $1.5 million from $163.1 million for the three months ended September 30, 2025. The decrease was primarily due to a $5.5 million decrease in other operating expense primarily driven by lower external fraud losses and Cash Connect®external funding costs as well as a $1.4 million decrease in professional fees primarily driven by a recovery of previously incurred legal expenses. These decreases were partially offset by a $2.2 million increase in salaries and benefits primarily related to merit increases, a $1.7 million increase in equipment expenses from client transaction costs in Wealth and Trust and continued investment in technology across the franchise, as well as a $1.3 million increase in loan workout and other credit costs primarily due to the write-down of an existing OREO property.
Current report
Community Reinvestment Act
Current report
All savings associations and banks are subject to the Community Reinvestment Act (CRA), which requires federal banking regulators to use their supervisory authority to encourage such institutions to help meet the credit needs of the communities within the institution’s assessment area. The CRA does not impose specific lending requirements, and it does not contemplate that a savings association or bank would take any action inconsistent with safety and soundness. The federal banking agencies evaluate the performance of each of their regulated institutions periodically. Evaluations that result in a conclusion of “Needs to Improve” or “Substantial Non-Compliance” may block or impede regulatory approvals for other actions by an institution.
Current report
The Bank received a rating of “Satisfactory” in its most recent performance evaluation.
Current report
On October 24, 2023, the Federal Reserve, FDIC, and OCC issued a final rule revising their framework for evaluating banks’ records of community reinvestment under the CRA. Under the revised framework, banks with assets of at least $2 billion, such as the Bank, are considered large banks and their retail lending, retail services and products, community development financing, and community development services will be subject to periodic evaluation. Depending on a large bank’s geographic distribution of lending, the evaluation of retail lending may include assessment areas in which the bank extends loans but does not operate any deposit-taking facilities, in addition to assessment areas in which the bank has deposit taking facilities. Industry organizations have challenged the final rule in court, and on March 29, 2024, the United States District Court for the Northern District of Texas granted an injunction and stay of the final rule. On July 16, 2025, the Federal Reserve, FDIC, and OCC issued a notice of proposed rulemaking to rescind the October 24, 2023 final rule implementing the CRA and to replace it with the prior CRA regulations that were originally adopted by the agencies in 1995, with certain amendments. On July 1, 2026, the OCC and FDIC filed an unopposed motion to dismiss their appeal of the District Court’s injunction against their 2023 CRA rules. That motion was granted, and the agencies’ appeal was dismissed on July 9, 2026. On July 31, 2026, the OCC and FDIC issued a notice of proposed rulemaking to amend the CRA rules, proposing targeted revisions to the current rules that leaves in place much of the framework that has existed since 1995.
Removed paragraphs (5)
Previous report
◦Total deposits increased$535.1 million, or 2.9%, during the quarter, primarily due to growth in Trust and Commercial. Noninterest deposits comprised 37% of total deposits at June 30, 2026.
Previous report
▪WSFS Institutional Services®grew 34% and BMT-DE grew 20%.
Previous report
▪The segment also surpassed $100 billion of fiduciary assets.
Previous report
•Six Months Ended June 30, 2026
Previous report
Three months ended June 30, 2026: During the three months ended June 30, 2026, noninterest expense was $166.3 million, an increase of $7.0 million from $159.3 million for the three months ended June 30, 2025. The increase was primarily due to an increase of $6.6 million from salaries and benefits from higher performance-based incentives and higher medical costs, as well as higher fraud costs and a $1.6 million one-time insurance recovery in the prior year. These increases were partially offset by a $1.5 million decrease in professional fees.
Reworded paragraphs (47)
Previous wording
WSFS Financial Corporation (WSFS, and together with its subsidiaries, the Company) is a savings and loan holding company headquartered in Wilmington, Delaware. Substantially all of our assets are held by our subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), one of the ten oldest bank and trust companies in the United States (U.S.) continuously operating under the same name. With $22.7 billion in assets and $101.7 billion in assets under management (AUM) and assets under administration (AUA) at June 30, 2026, WSFS Bank is the oldest and largest locally-managed bank and trust company headquartered in the Greater Philadelphia and Delaware region. As a federal savings bank that was formerly chartered as a state mutual savings bank, WSFS Bank enjoys a broader scope of permissible activities than most other financial institutions. A fixture in the community, we have been in operation for more than 194 years. In addition to our focus on stellar client experience, we have continued to fuel growth and remain a leader in our community. We are a relationship-focused, locally-managed, community banking institution. Our mission and strategy is simple: “We Stand for Service®.”
Current wording
WSFS Financial Corporation (WSFS, and together with its subsidiaries, the Company) is a savings and loan holding company headquartered in Wilmington, Delaware. Substantially all of our assets are held by our subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), one of the ten oldest bank and trust companies in the United States (U.S.) continuously operating under the same name. With $22.1 billion in assets and $109.5 billion in assets under management (AUM) and assets under administration (AUA) at September 30, 2026, WSFS Bank is the oldest and largest locally-managed bank and trust company headquartered in the Greater Philadelphia and Delaware region. As a federal savings bank that was formerly chartered as a state mutual savings bank, WSFS Bank enjoys a broader scope of permissible activities than most other financial institutions. A fixture in the community, we have been in operation for more than 194 years. In addition to our focus on stellar client experience, we have continued to fuel growth and remain a leader in our community. We are a relationship-focused, locally-managed, community banking institution. Our mission and strategy is simple: “We Stand for Service®.”
Previous wording
Our WSFS Bank segment had a total loan and lease portfolio of$13.0 billion as of June 30, 2026, which was funded primarily through client-generated deposits. We have built a$10.1 billion commercial loan and lease portfolio by recruiting seasoned commercial lenders in our markets, offering the high level of service and flexibility typically associated with a community bank and through acquisitions. We also offer a broad variety of consumer loan products and retail securities brokerage through our retail branches. The Home Lending division offers mortgage banking and title services through our branches and WSFS Mortgage®, our mortgage banking division specializing in a variety of residential mortgage and refinancing solutions.
Current wording
Our WSFS Bank segment had a total loan and lease portfolio of$13.2 billion as of September 30, 2026, which was funded primarily through client-generated deposits. We have built a$10.2 billion commercial loan and lease portfolio by recruiting seasoned commercial lenders in our markets, offering the high level of service and flexibility typically associated with a community bank and through acquisitions. We also offer a broad variety of consumer loan products and retail securities brokerage through our retail branches. The Home Lending division offers mortgage banking and title services through our branches and WSFS Mortgage®, our mortgage banking division specializing in a variety of residential mortgage and refinancing solutions.
Previous wording
Our Wealth and Trust segment provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional Clients. Combined, these businesses had$101.7 billion of AUM and AUA at June 30, 2026.
Current wording
Our Wealth and Trust segment provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate and institutional Clients. Combined, these businesses had$109.5 billion of AUM and AUA at September 30, 2026.
Previous wording
Our Cash Connect® segment is a premier provider of ATM vault cash, smart safe (safes that automatically accept, validate, record and hold cash in a secure environment) and other cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry. Cash Connect®services non-bank and WSFS-branded ATMs and smart safes nationwide, and manages approximately $1.3 billion in total cash and services approximately 23,100 non-bank ATMs and 12,100 smart safes nationwide. Cash Connect® provides related services such as online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, and deposit safe cash logistics.
Current wording
Our Cash Connect® segment is a premier provider of ATM vault cash, smart safe (safes that automatically accept, validate, record and hold cash in a secure environment) and other cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry. Cash Connect®services non-bank and WSFS-branded ATMs and smart safes nationwide, and manages approximately $1.2 billion in total cash and services approximately 22,900 non-bank ATMs and 12,100 smart safes nationwide. Cash Connect® provides related services such as online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, and deposit safe cash logistics.
Previous wording
As of June 30, 2026, we service our Clients primarily from 114 offices located in Pennsylvania (58), Delaware (38), New Jersey (14), Florida (2), Nevada (1) and Virginia (1), our ATM network, our website atwww.wsfsbank.com and our mobile app.
Current wording
As of September 30, 2026, we service our Clients primarily from 115 offices located in Pennsylvania (59), Delaware (38), New Jersey (14), Florida (2), Nevada (1) and Virginia (1), our ATM network, our website atwww.wsfsbank.com and our mobile app.
Previous wording
Highlights and Other Notables Items for Three and Six Months Ended June 30, 2026
Current wording
Highlights and Other Notable Items for Three and Nine Months Ended September 30, 2026
Previous wording
◦Diluted EPS was $1.63 and ROA was 1.52%, compared to $1.27 and 1.39%, respectively, for the three months ended June 30, 2025.
Current wording
◦Diluted EPS was $1.75 and ROA was 1.58%, compared to $1.37 and 1.44%, respectively, for the three months ended September 30, 2025.
Previous wording
◦Wealth and Trust noninterest income grew 17% compared to thethree months ended June 30, 2025.
Current wording
◦Wealth and Trust noninterest income grew 30% compared to thethree months ended September 30, 2025.
Previous wording
◦WSFS repurchased 923,948 sharesof common stock under the Company's share repurchase plans at an average price of$71.69 per share, for an aggregate purchase price of approximately$66.2 million, and paid quarterly dividends of $10.4 million, for a total capital return of $76.6 million.
Current wording
◦WSFS repurchased 748,970 sharesof common stock under the Company's share repurchase plans at an average price of$79.60 per share, for an aggregate purchase price of approximately$59.6 million, and paid quarterly dividends of $10.2 million, for a total capital return of $69.8 million.
Previous wording
◦The Bank and the Company continue to be above well-capitalized across all measures of regulatory capital, with total common equity Tier 1 capital of 13.77% and 13.76%, respectively, and total risk-based capital of 14.94% and 15.47%, respectively.
Current wording
◦The Bank and the Company continue to be above well-capitalized across all measures of regulatory capital, with total common equity Tier 1 capital of 13.68% and 13.74%, respectively, and total risk-based capital of 14.88% and 15.47%, respectively.
Previous wording
◦Diluted EPS was $3.26 and ROA was 1.56%, compared to $2.39 and 1.34% for the six months ended June 30, 2025.
Current wording
◦Diluted EPS was $5.01 and ROA was 1.57%, compared to $3.75 and 1.37% for the nine months ended September 30, 2025.
Previous wording
◦Total deposits increased$1.4 billion, or 7.7%, compared to December 31, 2025, primarily due to growth in Trust and Commercial.
Current wording
◦Total deposits increased$0.7 billion, or 4.2%, compared to December 31, 2025, primarily due to growth in Institutional Services and Commercial.
Previous wording
◦The Bank recognized a $15.7 million recovery of previously charged-off loans to a fund invested in office properties.
Current wording
◦The Bank recognized a $15.7 million recovery of previously charged-off loans to a fund invested in office properties during the first quarter.
Previous wording
◦The Company completed the sale of its credit card portfolio and entered into a partnership to issue WSFS-branded credit cards. This portfolio had an outstanding book balance of $36.3 million at time of sale and the transaction resulted in a $1.7 million gain on sale and a $1.3 million release of provision for credit losses.
Current wording
◦The Company completed the sale of its credit card portfolio and entered into a partnership to issue WSFS-branded credit cards. This portfolio had an outstanding book balance of $36.3 million at time of sale and the transaction resulted in a $1.6 million gain on sale and a $1.4 million release of provision for credit losses.
Previous wording
◦WSFS repurchased 2,243,574 sharesof common stock under the Company's share repurchase plans at an average price of$67.39 per share, for an aggregate purchase price of approximately$151.2 million, and paid quarterly dividends of $19.4 million, for a total capital return of $170.6 million.
Current wording
◦WSFS repurchased 2,992,544 sharesof common stock under the Company's share repurchase plans at an average price of$70.44 per share, for an aggregate purchase price of approximately$210.8 million, and paid quarterly dividends of $29.6 million, for a total capital return of $240.4 million.
Previous wording
Total assets increased $1.3 billion to $22.7 billion at June 30, 2026 compared to December 31, 2025. This increase is primarily comprised of the following:
Current wording
Total assets increased $0.8 billion to $22.1 billion at September 30, 2026 compared to December 31, 2025. This increase is primarily comprised of the following:
Previous wording
•Loans and leases, net of allowance increased $207.8 million, primarily driven by growth in C&I and residential mortgages, partially offset by a decrease in consumer from the continued runoff of Spring EQ loans and the sale of the credit card portfolio.
Current wording
•Loans and leases, net of allowance increased $375.0 million, primarily driven by growth in residential mortgages and C&I, partially offset by a decrease in consumer from the continued runoff of Spring EQ loans and the sale of the credit card portfolio.
Previous wording
•Total cash and cash equivalents increased $871.5 million, primarily due to increases in deposits.
Current wording
•Total cash and cash equivalents increased $231.1 million, primarily due to increases in deposits.
Previous wording
•Total investment securities increased $273.7 million:
Current wording
•Total investment securities increased $106.3 million:
Previous wording
◦Investment securities, available-for-sale increased $298.8 million, primarily due to purchases of $533.5 million, partially offset by repayments, maturities and calls of $211.9 million and decreased market values of $22.9 million.
Current wording
◦Investment securities, available-for-sale increased $148.9 million, primarily due to purchases of $694.2 million, partially offset by repayments, maturities and calls of $359.7 million and decreased market values of $186.8 million.
Previous wording
◦Investment securities, held-to-maturity decreased $25.0 million, primarily due to repayments, maturities and calls of $31.8 million, partially offset by $6.7 million of amortization of net unrealized losses on available-for-sale securities transferred to held-to-maturity.
Current wording
◦Investment securities, held-to-maturity decreased $42.6 million, primarily due to repayments, maturities and calls of $52.9 million, partially offset by $10.3 million of amortization of net unrealized losses on available-for-sale securities transferred to held-to-maturity.
Previous wording
•Other real estate owned increased $12.5 million, due to the transfer of an existing nonperforming land development loan.
Current wording
•Other real estate owned increased $11.6 million, primarily due to the transfer of an existing nonperforming land development loan.
Previous wording
Total liabilities increased $1.4 billion to $19.9 billion at June 30, 2026 compared to December 31, 2025 due to an increase in Client deposits. This deposit growth was primarily due to an increase in noninterest demand deposits, driven by Institutional Services and Commercial deposits.
Current wording
Total liabilities increased $0.9 billion to $19.5 billion at September 30, 2026 compared to December 31, 2025 primarily due to an increase in Client deposits. This deposit growth was primarily due to an increase in noninterest demand deposits, driven by Institutional Services and Commercial deposits.
Previous wording
Stockholders’ equity of WSFS decreased $16.7 million to $2.7 billion at June 30, 2026 compared to December 31, 2025. This decrease was primarily due to $151.2 million for the repurchase of shares of common stock under our stock repurchase plan, an increase of $20.7 million in accumulated other comprehensive loss driven by market value decreases on available-for-sale investment securities and our cash flow hedges, and the payment of dividends on our common stock of $19.4 million, partially offset by $171.2 million of net income attributable to WSFS.
Current wording
Stockholders’ equity of WSFS decreased $125.5 million to $2.6 billion at September 30, 2026 compared to December 31, 2025. This decrease was primarily due to $210.8 million for the repurchase of shares of common stock under our stock repurchase plan, an increase of $151.9 million in accumulated other comprehensive loss driven by market value decreases on available-for-sale investment securities and our cash flow hedges, and the payment of dividends on our common stock of $29.6 million, partially offset by $260.5 million of net income attributable to WSFS.
Previous wording
Book value per share of common stock was $52.97 at June 30, 2026, an increase of $1.70 from $51.27 at December 31, 2025. Tangible book value per share of common stock (a non-GAAP financial measure) was $34.24 at June 30, 2026, an increase of $1.13 from $33.11 at December 31, 2025. We believe tangible book value per common share helps management and investors better understand and assess changes from period to period in stockholders’ equity exclusive of changes in intangible assets. This non-GAAP measure should be considered in addition to results prepared in accordance with Generally Accepted Accounting Principles in the U.S. (GAAP), and is not a substitute for, or superior to, GAAP results. For a reconciliation of tangible book value per common share to book value per share in accordance with GAAP, see "Reconciliation of Non-GAAP Measure to GAAP Measure."
Current wording
Book value per share of common stock was $51.58 at September 30, 2026, an increase of $0.31 from $51.27 at December 31, 2025. Tangible book value per share of common stock (a non-GAAP financial measure) was $32.67 at September 30, 2026, a decrease of $0.44 from $33.11 at December 31, 2025. We believe tangible book value per common share helps management and investors better understand and assess changes from period to period in stockholders’ equity exclusive of changes in intangible assets. This non-GAAP measure should be considered in addition to results prepared in accordance with Generally Accepted Accounting Principles in the U.S. (GAAP), and is not a substitute for, or superior to, GAAP results. For a reconciliation of tangible book value per common share to book value per share in accordance with GAAP, see "Reconciliation of Non-GAAP Measure to GAAP Measure."
Previous wording
Not included in the Bank’s capital, the Company separately held $272.2 million in cash to support share repurchases, potential dividends, acquisitions, strategic growth plans and other general corporate purposes.
Current wording
Not included in the Bank’s capital, the Company separately held $282.4 million in cash to support share repurchases, potential dividends, acquisitions, strategic growth plans and other general corporate purposes.
Previous wording
As of June 30, 2026, the Company had$2.6 billion in cash, cash equivalents, and restricted cash. Our estimated uninsured deposits were $8.5 billion, or 45% of total client deposits, and our estimated unprotected deposits (uninsured and uncollateralized) were $7.3 billion, or 38% of total client deposits.
Current wording
As of September 30, 2026, the Company had$1.9 billion in cash, cash equivalents, and restricted cash. Our estimated uninsured deposits were $7.9 billion, or 43% of total client deposits, and our estimated unprotected deposits (uninsured and uncollateralized) were $6.4 billion, or 35% of total client deposits.
Previous wording
As of June 30, 2026, the Company had a readily available, secured borrowing capacity of $6.0 billion from the FHLB and $2.1 billion through the Federal Reserve Discount Window. In addition, the Company had $2.0 billion of cash deposited with the Federal Reserve Bank and $1.1 billion in unpledged securities that could be used to support additional borrowings.
Current wording
As of September 30, 2026, the Company had a readily available, secured borrowing capacity of $6.1 billion from the FHLB and $2.0 billion through the Federal Reserve Discount Window. In addition, the Company had $1.4 billion of cash deposited with the Federal Reserve Bank and $0.7 billion in unpledged securities that could be used to support additional borrowings.
Previous wording
Our primary cash contractual obligations relate to operating leases, long-term debt, credit obligations, and data processing. At June 30, 2026, we had $156.4 million in total contractual payments for ongoing leases that have remaining lease terms of less than one year to 19 years, which includes renewal options that are exercised at our discretion. For additional information on our operating leases, see Note 7 to the unaudited Consolidated Financial Statements. At June 30, 2026, we had obligations for principal payments on long-term debt including $67.0 million for our trust preferred borrowings, due June 1, 2035, $25.0 million for our trust preferred borrowings due December 15, 2034, and $200.0 million for our senior debt due December 15, 2035. We are also contractually obligated to make interest payments on our long-term debt through their respective maturities.
Current wording
Our primary cash contractual obligations relate to operating leases, long-term debt, credit obligations, and data processing. At September 30, 2026, we had $153.1 million in total contractual payments for ongoing leases that have remaining lease terms of less than one year to 19 years, which includes renewal options that are exercised at our discretion. For additional information on our operating leases, see Note 7 to the unaudited Consolidated Financial Statements. At September 30, 2026, we had obligations for principal payments on long-term debt including $67.0 million for our trust preferred borrowings, due June 1, 2035, $25.0 million for our trust preferred borrowings due December 15, 2034, and $200.0 million for our senior debt due December 15, 2035. We are also contractually obligated to make interest payments on our long-term debt through their respective maturities.
Previous wording
Commitments to extend credit provide for financing on predetermined terms as long as the client continues to meet specific criteria. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. At June 30, 2026, the Company had total commitments to extend credit, including cancellable commitments, of $4.6 billion, which are generally one-year commitments.
Current wording
Commitments to extend credit provide for financing on predetermined terms as long as the client continues to meet specific criteria. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. At September 30, 2026, the Company had total commitments to extend credit, including cancellable commitments, of $4.3 billion, which are generally one-year commitments.
Previous wording
Nonperforming assets include nonaccruing loans and OREO. Nonaccruing loans are those on which we no longer accrue interest. Loans are placed on nonaccrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and the value of the collateral is insufficient to cover principal and interest. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the amortization of net deferred loan fees is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Past due loans shown in the table below are loans that are contractually past due 90 days or more as to principal or interest payments but which remain in accrual status because they are considered well secured and in the process of collection. Troubled loans are loans modified in the form of principal forgiveness, interest rate reduction, an other-than-insignificant payment delay, or a term extension to borrowers experiencing financial difficulty.
Current wording
Nonperforming assets include nonaccruing loans and other real estate owned (OREO). Nonaccruing loans are those on which we no longer accrue interest. Loans are placed on nonaccrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and the value of the collateral is insufficient to cover principal and interest. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the amortization of net deferred loan fees is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Past due loans shown in the table below are loans that are contractually past due 90 days or more as to principal or interest payments but which remain in accrual status because they are considered well secured and in the process of collection. Troubled loans are loans modified in the form of principal forgiveness, interest rate reduction, an other-than-insignificant payment delay, or a term extension to borrowers experiencing financial difficulty.
Previous wording
Nonperforming assets increased $8.9 million between December 31, 2025 and June 30, 2026. This increase was primarily driven by the addition of an $11.2 million owner-occupied loan.
Current wording
Nonperforming assets increased $10.6 million between December 31, 2025 and September 30, 2026. This increase was primarily driven by the addition of a student housing-related loan and an owner-occupied loan, partially offset by payoffs of C&I, multifamily, and office loans.
Previous wording
Our primary objective in managing interest rate risk is to minimize the adverse impact of changes in interest rates on net interest income and capital, while maximizing the yield/cost spread on our asset/liability structure. Interest rates are partly a function of decisions by the Federal Open Market Committee (FOMC) on the target range for the federal funds rate, and these decisions are sometimes difficult to anticipate. In 2025, the FOMC lowered the federal funds target rate three times for a total of 75 basis points. In order to manage the risks associated with changes or possible changes in interest rates, we rely primarily on our asset/liability structure.
Current wording
Our primary objective in managing interest rate risk is to minimize the adverse impact of changes in interest rates on net interest income and capital, while maximizing the yield/cost spread on our asset/liability structure. Interest rates are partly a function of decisions by the Federal Open Market Committee (FOMC) on the target range for the federal funds rate, and these decisions are sometimes difficult to anticipate. In September 2026, the FOMC increased the federal funds target rate by 25 basis points. In 2025, the FOMC lowered the federal funds target rate three times for a total of 75 basis points. In order to manage the risks associated with changes or possible changes in interest rates, we rely primarily on our asset/liability structure.
Previous wording
Our primary tool for achieving our asset/liability management strategies is to match maturities or repricing periods of interest rate-sensitive assets and liabilities to promote a favorable interest rate spread and mitigate exposure to fluctuations in interest rates. We regularly review our interest rate sensitivity and adjust the sensitivity within acceptable tolerance ranges. At June 30, 2026, interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year (interest-sensitive gap) by $1.5 billion. When including the impact of cash flow hedges, our interest-sensitive assets as a percentage of interest-sensitive liabilities within the one-year window was 116.81% and the one-year interest-sensitive gap as a percentage of total assets was 6.45% at June 30, 2026 compared with 103.26% and 1.33% at December 31, 2025, respectively.
Current wording
Our primary tool for achieving our asset/liability management strategies is to match maturities or repricing periods of interest rate-sensitive assets and liabilities to promote a favorable interest rate spread and mitigate exposure to fluctuations in interest rates. We regularly review our interest rate sensitivity and adjust the sensitivity within acceptable tolerance ranges. At September 30, 2026, interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year (interest-sensitive gap) by $0.7 billion. When including the impact of cash flow hedges, our interest-sensitive assets as a percentage of interest-sensitive liabilities within the one-year window was 107.50% and the one-year interest-sensitive gap as a percentage of total assets was 3.02% at September 30, 2026 compared with 103.26% and 1.33% at December 31, 2025, respectively.
Previous wording
(1)The percentage difference between net interest margin in a stable interest rate environment and net interest income as projected under the various rate change environments.
Current wording
(1)The percentage difference between net interest income in a stable interest rate environment and net interest income as projected under the various rate change environments.
Previous wording
Three months ended June 30, 2026: During the three months ended June 30, 2026, net interest income increased $13.0 million from the three months ended June 30, 2025 primarily driven by lower deposit costs, higher cash balances, and higher average loan balances. These increases were partially offset by lower loan yields as a result of three 25bp Federal Funds rate cuts that occurred in 2025. Net interest margin was 3.87% for the second quarter of 2026, a 2 basis point decrease compared to 3.89% for the second quarter of 2025. The decrease was primarily due to the impact of the three interest rate cuts that occurred in 2025, partially offset by higher investment yields and favorable balance sheet mix.
Current wording
Three months ended September 30, 2026: During the three months ended September 30, 2026, net interest income increased $12.6 million from the three months ended September 30, 2025 primarily driven by lower deposit costs and higher average loan balances. These increases were partially offset by lower loan yields as a result of three 25bp Federal Funds Rate cuts that occurred in 2025. Net interest margin was 3.88% for the third quarter of 2026, a 3 basis point decrease compared to 3.91% for the third quarter of 2025. The decrease was primarily due to the impact of the three interest rate cuts that occurred in 2025, partially offset by higher investment yields and favorable balance sheet mix.
Previous wording
Six months ended June 30, 2026: During the six months ended June 30, 2026, net interest income increased $22.9 million from the six months ended June 30, 2025 due to the reasons noted above. Net interest margin was 3.85% for the six months ended June 30, 2026, a 3 basis point decrease compared to 3.88% for the six months ended June 30, 2025. The decrease was due to the reasons mentioned above.
Current wording
Nine months ended September 30, 2026: During the nine months ended September 30, 2026, net interest income increased $35.5 million from the nine months ended September 30, 2025. Net interest margin was 3.86% for the nine months ended September 30, 2026, a 3 basis point decrease compared to 3.89% for the nine months ended September 30, 2025. The increase in net interest income and the decrease in net interest margin were due to the reasons mentioned above.
Previous wording
During the three months ended June 30, 2026, we recorded a provision for credit losses of $5.0 million, a decrease of $7.6 million, compared to the provision for credit losses of $12.6 million for the three months ended June 30, 2025. The current quarter provision for credit losses was primarily driven by loan growth, partially offset by the release from the sale of our credit card portfolio. The decrease compared to the prior year was primarily driven by the aforementioned release of ACL on credit cards as well as higher charge-offs during the three months ended June 30, 2025.
Current wording
During the three months ended September 30, 2026, we recorded a provision for credit losses of $8.4 million, an increase of $1.8 million, compared to $6.6 million for the three months ended September 30, 2025. The current quarter provision for credit losses was driven by a specific reserve on a student housing-related loan. The increase compared to the prior year was primarily driven by higher charge-offs during the three months ended September 30, 2025.
Previous wording
During the six months ended June 30, 2026, we recorded a provision for credit losses of $3.0 million, a decrease of $26.9 million, compared to the provision for credit losses of $30.0 million for the six months ended June 30, 2025. The current year-to-date provision was primarily driven by loan growth, partially offset by a $15.7 million recovery of C&I loans to a fund invested in office properties that were charged-off in the first quarter of 2025. The decrease compared to the prior year was primarily driven by the aforementioned recovery as well as impacts to the prior year from specific reserves on two nonperforming loans and an adjustment for the ACL for accounts receivable.
Current wording
During the nine months ended September 30, 2026, we recorded a provision for credit losses of $11.4 million, a decrease of $25.1 million, compared to $36.5 million for the nine months ended September 30, 2025. The current year-to-date provision was primarily driven by loan growth and the previously mentioned specific reserve, partially offset by a $15.7 million recovery of C&I loans to a fund invested in office properties that were charged-off in the first quarter of 2025. The decrease compared to the prior year was primarily driven by the aforementioned recovery as well as impacts to the prior year from specific reserves on two nonperforming loans and an adjustment for the ACL for accounts receivable.
Previous wording
The total allowance for credit losses decreased to $180.0 million at June 30, 2026 from $182.5 million at December 31, 2025. The ratio of allowance for credit losses to total loans and leases was 1.32% at June 30, 2026 and 1.36% at December 31, 2025.
Current wording
The total allowance for credit losses increased to $187.9 million at September 30, 2026 from $182.5 million at December 31, 2025. The ratio of allowance for credit losses to total loans and leases was 1.36% at September 30, 2026 and December 31, 2025.
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