[Management View]
WSFS Financial reported sequential improvements in core profitability metrics, with core earnings per share at $1.27, core return on assets at 1.3%, and core return on tangible common equity at 18.03%. Management emphasized a nine basis point decline in total funding costs and robust growth in fee revenue segments, particularly within wealth and institutional services. The unwind of a key wealth advisory partnership was noted as creating short-term revenue pressures but also longer-term opportunities for franchise expansion.

[Outlook]
The company expects modest temporary net interest margin headwinds in the next two quarters due to forecasted interest rate cuts and portfolio shifts, partially offset by positive repricing dynamics. Management affirmed that efficiency ratio guidance remains unchanged, and investment in technology and talent will continue to align with long-term strategy.

[Financial Performance]
WSFS Financial's core net interest margin expanded by one basis point to 3.89%, driven by a reduction in total funding costs. Core fee revenue grew 9% quarter over quarter, with significant contributions from wealth, capital markets, and mortgage businesses. Total client deposits increased 1% compared to the prior quarter and 5% year over year.

[Q&A Highlights]
Question 1: Could you discuss your expectations for commercial loan growth and any sentiment shifts among your commercial borrowers regarding tariffs?
Answer: WSFS is focused on accretive loan growth, particularly in the C&I sector, with solid originations in commercial real estate and construction. There is a mild uptick in optimism among borrowers, with some projects moving forward despite tariff uncertainties.

Question 2: How should we think about the expense run rate and potential seasonality or merit increases?
Answer: The second quarter's expense figure is a good run rate for future growth, with potential slight increases due to business-as-usual activities and hiring. The company will continue to invest in technology and talent.

Question 3: How does pricing impact your buyback strategy, and do you consider AOCI recovery in your pricing decisions?
Answer: WSFS increased buybacks in the first half of the year, taking advantage of lower stock prices. The company remains price agnostic, focusing on a gradual glide path for capital return, while considering AOCI risk and market conditions.

Question 4: What is the outlook for net interest margin (NIM) in the back half of the year, and where could there be upside?
Answer: The NIM guidance is slightly lower due to anticipated interest rate cuts and the sale of the Upstart portfolio. However, WSFS continues to manage deposit pricing effectively and expects some repricing benefits from its securities portfolio.

Question 5: Can you update us on Cash Connect's profitability and the impact of price increases?
Answer: Cash Connect's pretax margin is expected to improve, with pricing initiatives delivering about $1 million in pretax benefit for the year. Despite some client terminations and volume challenges, the focus remains on driving profit margins.

[Sentiment Analysis]
Analysts showed interest in WSFS's strategic growth and capital management, with a positive tone towards the company's ability to manage costs and leverage opportunities. Management conveyed confidence in their strategic direction and capital flexibility.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 |
|---------------------------------|---------|---------|
| Core Earnings per Share | $1.27 | - |
| Core Return on Assets | 1.3% | - |
| Core Return on Tangible Equity | 18.03% | - |
| Core Net Interest Margin | 3.89% | - |
| Core Fee Revenue Growth (QoQ) | 9% | - |
| Total Client Deposits Growth | 1% | - |

[Risks and Concerns]
Potential risks include temporary net interest margin headwinds from forecasted interest rate cuts and portfolio shifts. The unwind of a wealth advisory partnership may create near-term revenue pressures. Additionally, the impact of tariffs and economic uncertainties on commercial borrowers remains a concern.

[Final Takeaway]
WSFS Financial demonstrated strong sequential improvements in core profitability metrics, driven by strategic growth in fee revenue segments and effective cost management. The company remains focused on accretive loan growth and capital management, with a positive outlook for long-term strategic investments. While facing temporary headwinds from interest rate cuts and portfolio adjustments, WSFS is well-positioned to leverage opportunities for franchise expansion and product diversification.