WSFS Sees 45%-50% Deposit Beta, Targets Double-Digit Walton Trust Fee Growth

WSFS Financial Corporation expects its deposit beta to reach 45% to 50% during the current rate-hiking cycle and targets double-digit Walton Trust fee growth, below recent levels near 30%.\n\nEach 25-basis-point increase in interest rates may add 2 to 3 basis points to WSFS' net interest margin. The bank also faces deposit outflows and increased pressure to pay more for funding.\n\nWSFS expects high rates to slow loan and mortgage growth, with revenue growth also likely to moderate. Problem assets grew amid downgrades in multifamily, construction and commercial and industrial loans, while overall credit measures remained stable and some loans were recovering.\n\nThe bank's third-quarter results included GAAP earnings of $1.75 per share and revenue of $287.6 million, up 6.3% from a year earlier. Revenue was $1.02 million below estimates.