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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

United Bankshares (UBSI - Free Report) is headquartered in Charleston, and is in the Finance sector. The stock has seen a price change of 10.05% since the start of the year. The holding company for United Bank is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.6%. This compares to the Banks - Southeast industry's yield of 2.09% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $1.52 is up 2% from last year. Over the last 5 years, United Bankshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. United Bankshares's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.

UBSI is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.64 per share, representing a year-over-year earnings growth rate of 11.31%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, UBSI is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

The Buffalo Trace-maker offered $32 per share for its Louisville rival.

Brown-Forman Focused on Creating Value for All Stakeholders by Advancing Ongoing Strategic and Operational Plans

LOUISVILLE, Ky.--(BUSINESS WIRE)--Brown-Forman Corporation (NYSE: BFA, BFB) today announced that the company and Pernod Ricard have terminated discussions regarding a potential business combination, as the companies were unable to reach mutually agreeable terms. Brown-Forman and Pernod Ricard previously confirmed discussions on March 26 and noted there could be no assurance that any such agreement would be reached. Brown-Forman issued the following statement:

“We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities. This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers, and enhancing operational efficiency.”

About Brown-Forman

Brown-Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes the Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.

Important Information on Forward-Looking Statements

This press release contains statements that are “forward-looking statements”, as defined under U.S. federal securities laws, that are subject to risks and uncertainties. Such statements involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond Brown-Forman’s control and could cause Brown-Forman’s future financial results, goals, plans, commitments, strategies and objectives to differ materially from those expressed in, or implied by, the statements. Words such as "should," "could," "would," "will," "may," "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "projects," "forecast," "guidance," "outlook," "goals," "targets," "pledge," "confident," "optimistic," "dedicated," "positioned," "on track", "path" and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. All statements, other than those that relate solely to historical facts, are forward-looking statements.

Additionally, forward-looking statements include conditional statements and statements that identify uncertainties or trends, discuss the possible future effects of known trends or uncertainties, or that indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this press release are based upon information available to Brown-Forman on the date of this press release. Brown-Forman undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law or regulation.

Brown-Forman’s actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, any risks and uncertainties set forth in the "Risk Factors" section or other sections in Brown-Forman’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as other risks and uncertainties set forth from time to time in the reports Brown-Forman files with the U.S. Securities and Exchange Commission.

The French spirits company and the Jack Daniel's maker announced in March that they were discussing a potential combination

-

LOUISVILLE, Ky.--(BUSINESS WIRE)--Brown-Forman Corporation (NYSE: BFA, BFB) today announced the strategic realignment of its U.S. control states distribution network. Following a comprehensive review of its distributor agreements across 18 state-managed markets—where government agencies oversee the wholesale or retail distribution of distilled spirits—the company has selected four distributor organizations to represent its portfolio in 11 markets. The remaining seven control states will continue to be served by their existing distributor.

The following organizations will represent the Brown-Forman portfolio in their respective markets, effective June 1:

Johnson Brothers: Idaho, Montana, North Carolina, Oregon, Utah, and Wyoming Southern Glazer’s Wine & Spirits: Maine, New Hampshire, and Vermont Superior Beverage Group: Ohio Great Lakes Wine & Spirits: Michigan Brown‑Forman would like to recognize and thank outgoing distributor Republic National Distributing Company (RNDC) for their years of partnership and collaboration in these markets.

“In 2025, Brown‑Forman embarked on the most significant transformation of its U.S. distribution network in more than six decades. With the control states phase now complete, we are aligned with distributors who bring the capabilities, scale, and operational excellence required to drive our next generation of growth,” said Michael Masick, Executive Vice President and President, Americas, Brown‑Forman.”

Robinson Brown IV, Senior Vice President and Managing Director, USA & Canada, Brown‑Forman, added: “Control states require a unique combination of regulatory expertise and strong commercial execution. With these new partners, we’re better equipped to expand our footprint and ensure our brands are in the right place at the right time to win with the consumer."

About Brown-Forman:

Brown-Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes the Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.

Forward-Looking Statements

This press release contains statements that are “forward-looking statements” as defined under U.S. federal securities laws. These forward-looking statements reflect management’s expectations or projections regarding future events and speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections.

For further information on factors that could cause our actual results to differ materially from our historical experience or from our current expectations or projections, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

More News From Brown-Forman Corporation

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The deal between Brown-Forman and Pernod Ricard is off the table, but that is not the end of it. Another bidder has recently stepped in, and the chances of some form of a deal remain. The issue around a target price as Brown-Forman trades at record-low levels is likely to be the cause of Pernod Ricard walking away.

Whiskey barrels are placed on a truck at the Jack Daniel Distillery in Lynchburg, Tennessee, U.S. February 3, 2025. REUTERS/Kevin Wurm/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesSazerac had offered $32 cash per share for Jack Daniel's maker Brown-Forman - sourceDeal rejected weeks after talks between Brown-Forman and Pernod Ricard fell apartSpirits industry grappling with a prolonged slump amid declining alcohol consumptionMay 12 (Reuters) - Brown-Forman (BFb.N), opens new tab has rejected a $32-per-share cash takeover offer from U.S. ‌spirits maker Sazerac, according to a source familiar with the matter, weeks after talks between the Jack Daniel's maker and France's Pernod Ricard (PERP.PA), opens new tab fell apart.

Brown-Forman shares closed down 1% at $26.56 on Tuesday, well below Sazerac's offer price.

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Privately owned Sazerac emerged as a suitor ​for Brown-Forman last month, after Brown-Forman and Pernod disclosed talks over a possible merger. Those talks ended in ​late April after the companies failed to reach mutually acceptable terms.

Sazerac, which owns more ⁠than 500 brands, including Buffalo Trace whiskey and Fireball, and is controlled by the Goldring family, had submitted ​a $15 billion offer for Brown-Forman in April.

The offer was financially backed by Wells Fargo and Apollo Global Management and ​would have given Brown-Forman’s Class A shareholders the option to take cash or roll their shares into the new company, the source added.

Sazerac and Brown-Forman declined to comment. The Wall Street Journal first reported the development.

The rejection of the Sazerac offer comes ​at a time when the spirits industry is grappling with a prolonged slump, as declining alcohol consumption has ​squeezed volumes across the sector.

Multiples for consumer goods companies have fallen sharply, and dealmakers increasingly see scale as the answer, bankers ‌and analysts ⁠have said.

The Brown family, which controls Brown-Forman, favored a potential sale to Pernod over Sazerac’s rival proposal, a source familiar with the matter told Reuters last month. The family viewed Pernod as the more prestigious acquirer, with a portfolio of stronger and more recognizable brands, the source added.

Pernod's brands include Jameson Irish Whiskey, Absolut Vodka ​and Malibu Rum.

The structure of ​the two potential deals ⁠also differed sharply. Pernod’s proposed terms would have been a mostly stock deal akin to a merger of equals, allowing the Brown family to retain a meaningful stake ​and some influence in the combined company, a source told Reuters last month.

Sazerac’s approach, ​by contrast, ⁠would have required more cash, higher leverage and effectively forced the Brown family to relinquish control.

Sazerac generates more than $6 billion in annual net sales, topping Brown-Forman's around $4 billion of annual net sales.

A tie-up between the Kentucky neighbors would have ⁠created a ​dominant U.S. player controlling roughly 30% of the American whiskey market, ​some analysts have said. A combination of the two would also have meant greater clout in negotiations with major U.S. distributors.

Reporting by Abigail ​Summerville in New York and Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber, Echo Wang and Jamie Freed

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Abigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University.

LOUISVILLE, Ky.--(BUSINESS WIRE)--Brown-Forman Corporation (NYSE: BFA, BFB) reported financial results for its fourth quarter and fiscal year ended April 30, 2026. Fourth quarter reported net sales increased 2%1 to $912 million (+2% on an organic basis2) compared to the same prior-year period. In the quarter, reported operating income decreased 53% to $96 million (flat on an organic basis) and diluted earnings per share decreased 62% to $0.12.

For the full year, the company’s reported net sales decreased 1% to $3.9 billion (flat on an organic basis) compared to the same prior-year period. Reported operating income decreased 10% to $1.0 billion (-2% on an organic basis) and diluted earnings per share decreased 17% to $1.53.

“We finished the fiscal year ahead of our expectations, driven by strong execution in our innovation portfolio, the early benefits of our U.S. route-to-market transformation, and strategic cost-restructuring initiatives,” said President and Chief Executive Officer Lawson Whiting. “Our ability to grow cash flows from operations and free cash flow by more than $400 million in a declining market speaks to the strength of our business and our commitment to a robust capital allocation strategy. While we expect continued market volatility and a challenging cost cycle in the year ahead, our performance this year proves we have the right people, brands, and strategy to navigate these challenges effectively.”

Fiscal 2026 Highlights

The net sales decline was led by the end of the Korbel Champagne Cellars relationship (Korbel relationship) and the absence of the Sonoma-Cutrer prior-year transition services agreement (TSA), partially offset by the launch of Jack Daniel’s Tennessee Blackberry. From a geographic perspective, net sales growth in Emerging3 markets and the Travel Retail3 channel was partially offset by a decline in the United States, and Developed International3 markets were flat. Gross margin expanded 160 basis points driven by the positive effect of acquisitions and divestitures. Cash flows from operations grew by $402 million to $1.0 billion and free cash flow2 increased by $462 million to $893 million. The company returned $827 million to stockholders by distributing $427 million in regular quarterly dividends and $400 million through its share repurchase program. Fiscal 2026 Brand Results

Net sales for Whiskey3 products increased 3% (+1% organic) driven by the launch of Jack Daniel’s Tennessee Blackberry, the positive effect of foreign exchange, and the growth of Woodford Reserve in the United States, partially offset by declines of Jack Daniel’s Tennessee Whiskey. Net sales for the Tequila3 portfolio decreased 4% (-6% organic). Herradura’s net sales declined 9% (-10% organic) led by lower volumes in the United States. el Jimador’s net sales decreased 2% (-2% organic) driven by declines in the United States and Mexico, partially offset by higher volumes in Colombia. Net sales for the Ready-to-Drink3 (RTD) portfolio increased 11% (+7% organic). Net sales of New Mix increased 41% (+33% organic) fueled by market share gains in Mexico within an accelerating category and the product’s launch in the United States. Jack Daniel’s RTD/RTP portfolio decreased 3% (-5% organic) driven by declines in the United States and the absence of American-made beverage alcohol from retail shelves across most provinces in Canada. Rest of Portfolio's3 net sales declined 31% (+18% organic) driven by the unfavorable impact of acquisitions and divestitures, partially offset by the distribution of new agency brands in Japan and Mexico, as well as strong double-digit growth of Gin Mare and Diplomático. Net sales for non-branded and bulk decreased 68% (-68% organic) driven by lower used barrel sales. Fiscal 2026 Market Results

Net sales in the United States declined 7% (flat organic) driven by the end of the Korbel relationship and the absence of the Sonoma-Cutrer prior-year TSA, as well as lower volumes of Jack Daniel’s Tennessee Whiskey and unfavorable portfolio mix, partially offset by innovation, led by Jack Daniel’s Tennessee Blackberry and growth of Woodford Reserve. Higher net pricing across the portfolio as a result of changes to our distributor relationship terms and favorable timing of distributor ordering patterns positively impacted net sales. In a challenging economic environment, net sales in the Developed International markets were flat (-3% organic). The positive effect of foreign exchange and the benefit from the transition to owned distribution in Italy was offset by the absence of American-made beverage alcohol from retail shelves in most of the Canadian provinces and declines in Germany and the United Kingdom. Net sales in Emerging markets increased 14% (+12% organic) driven by growth across the Jack Daniel’s family of brands led by Türkiye, the United Arab Emirates, and Brazil, strong double-digit growth of New Mix in Mexico, an estimated net increase in distributor inventories, and the positive effect of foreign exchange. The Travel Retail channel’s net sales increased 6% (+5% organic) largely due to increased passenger traffic leading to higher volumes of Jack Daniel’s Tennessee Whiskey as well as the positive effect of foreign exchange. Fiscal 2026 Other P&L Items

Gross profit increased 2% (flat organic). Gross margin expanded 160 basis points to 60.5% driven by the positive effect of acquisitions and divestitures, the positive effect of foreign exchange, and lower costs influenced by the timing of cost fluctuations. Advertising expense decreased 4% (-5% organic) driven by lower spend across the Jack Daniel’s family of brands, led by super-premium Jack Daniel’s expressions, and the end of the Korbel relationship, partially offset by the negative effect of foreign exchange. Selling, general, and administrative (SG&A) expenses increased 9% (+7% organic) driven by costs associated with the contemplated business transaction discussions, higher compensation-and-benefit-related expenses, and the negative effect of foreign exchange. The company incurred $19 million in charges related to the strategic restructuring initiative announced in January 2025. Operating income decreased 10% (-2% organic) resulting in an operating margin decrease of 240 basis points to 25.5%. The operating margin decrease was driven by higher non-cash impairment charges and higher SG&A expenses, partially offset by lower restructuring initiative costs compared to the same prior-year period. Diluted earnings per share decreased $0.31 driven by lower operating income and the absence of the prior-year gain on sale of our investment in The Duckhorn Portfolio, Inc. Fiscal 2026 Financial Stewardship

During fiscal 2026, the company paid $427 million to stockholders through its regular quarterly dividend and returned $400 million to stockholders through its share repurchase program, which was completed in December 2025. Brown-Forman, a member of the S&P 500 Dividend Aristocrats Index, has paid regular quarterly cash dividends for 82 consecutive years and has increased the regular dividend for 42 consecutive years.

In addition, cash flows from operations grew $402 million to $1.0 billion, primarily reflecting disciplined working capital management, and free cash flow increased $462 million to $893 million, driven by strong operating cash flow generation and lower capital expenditure needs.

Fiscal 2027 Outlook

We anticipate the operating environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behavior and beverage alcohol consumption, particularly within developed markets. We remain committed to building our business for the long term while focusing intensely on the variables within our control. We believe we will benefit in fiscal 2027 from our previously announced restructuring initiative and U.S. distributor changes, and continued new product innovation, such as the expansion of Jack Daniel's Tennessee Blackberry. Considering these factors, we expect the following in fiscal 2027:

Organic net sales to be approximately flat. Organic operating income decline in the 3% to 5% range. Our effective tax rate to be in the range of approximately 20% to 22%. Capital expenditures planned to be in the range of $60 to $70 million. Conference Call Details

Brown-Forman will host a conference call to discuss these results at 10:00 a.m. (ET) today. A live audio broadcast of the conference call, and the accompanying presentation slides, will be available via Brown-Forman’s website, brown-forman.com, through a link to “Investors/Events & Presentations.” A digital audio recording of the conference call and the presentation slides will also be posted on the website and will be available for at least 30 days following the conference call.

Brown-Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes the Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.

Important Information on Forward-Looking Statements:

This press release contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from those expressed in or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to:

Our substantial dependence upon the continued growth of the Jack Daniel’s family of brands Substantial competition from new entrants, consolidations by competitors and retailers, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks Disruption of our distribution network or inventory fluctuations in our products by distributors, wholesalers, or retailers Risks from changes to the trade policies, tariffs, and import and export regulations of the United States or foreign governments and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and/or distributors Changes in consumer preferences, consumption, or purchase patterns – particularly away from larger producers in favor of small distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; further legalization of marijuana; bar, restaurant, travel, or other on-premise declines; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher fixed costs Production facility, aging warehouse, or supply chain disruption Imprecision in supply/demand forecasting Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, or labor Risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs, or impairment in recorded value Unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations Negative publicity related to our company, products, brands, marketing, executive leadership, employees, Board of Directors, family stockholders, operations, business performance, or prospects or risks relating to the increased risk of social media Product recalls or other product liability claims, product tampering, contamination, or quality issues Failure to attract or retain key executive or employee talent Impact of health epidemics and pandemics, and the risk of the resulting negative economic impacts and related governmental actions Risks associated with being a U.S.-based company with a global business, including commercial, political, and financial risks; local labor policies and conditions; compliance with local trade practices and other regulations; terrorism, kidnapping, extortion, or other types of violence; and health pandemics Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations Fluctuations in foreign currency exchange rates, particularly due to a stronger U.S. dollar A downgrade or potential downgrade of our credit ratings Changes in laws, regulatory measures, or governmental policies, especially those affecting production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products Tax rate changes (including excise, corporate, sales or value-added taxes, property taxes, payroll taxes, import and export duties, and tariffs) or changes in related reserves, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they can occur Decline in the social acceptability of beverage alcohol in significant markets Significant additional labeling or warning requirements or limitations on availability of our beverage alcohol products Counterfeiting and inadequate protection of our intellectual property rights Significant legal disputes and proceedings, or government investigations Cyberbreach or failure or corruption of our key information technology systems or those of our suppliers, customers, or direct and indirect business partners, or failure to comply with personal data protection laws Our status as a family “controlled company” under New York Stock Exchange rules, and our dual-class share structure For further information on these and other risks, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

Brown-Forman Corporation

Unaudited Consolidated Statements of Operations

For the Three Months Ended April 30, 2025 and 2026

(Dollars in millions, except per share amounts)

  2025

2026

Change

Net sales

$

894

$

912

2

%

Cost of sales

381

341

(10

%)

Gross profit

513

571

11

%

Advertising expenses

107

96

(10

%)

Selling, general, and administrative expenses

193

259

34

%

Restructuring and other charges

27

—

(97

)%

Other intangible assets impairment

47

132

Other expense (income), net

(66

)

(12

)

Operating income

205

96

(53

)%

Non-operating postretirement expense

—

2

Interest expense, net

22

23

Equity method investment income and gain on sale

—

—

Income before income taxes

183

71

(61

)%

Income taxes

37

17

Net income

$

146

$

54

(63

)%

Earnings per share:

Basic

$

0.31

$

0.12

(62

)%

Diluted

$

0.31

$

0.12

(62

)%

Gross margin

57.3

%

62.6

%

Operating margin

22.9

%

10.5

%

Effective tax rate

20.2

%

25.1

%

Cash dividends paid per common share

$

0.2265

$

0.2310

Shares (in thousands) used in the

calculation of earnings per share

Basic

472,667

458,702

Diluted

472,884

459,310

Brown-Forman Corporation

Unaudited Consolidated Statements of Operations

For the Twelve Months Ended April 30, 2025 and 2026

(Dollars in millions, except per share amounts)

  2025

2026

Change

Net sales

$

3,975

$

3,928

(1

%)

Cost of sales

1,632

1,550

(5

%)

Gross profit

2,343

2,378

2

%

Advertising expenses

484

462

(4

%)

Selling, general, and administrative expenses

744

807

9

%

Restructuring and other charges

60

19

(68

%)

Other intangible assets impairment

47

132

Other expense (income), net

(99

)

(43

)

Operating income

1,107

1,001

(10

)%

Non-operating postretirement expense

4

27

Interest expense, net

105

89

Equity method investment income and gain on sale

(83

)

—

Income before income taxes

1,081

885

(18

)%

Income taxes

212

170

Net income

$

869

$

715

(18

)%

Earnings per share:

Basic

$

1.84

$

1.53

(17

)%

Diluted

$

1.84

$

1.53

(17

)%

Gross margin

58.9

%

60.5

%

Operating margin

27.9

%

25.5

%

Effective tax rate

19.6

%

19.3

%

Cash dividends paid per common share

$

0.8886

$

0.9150

Shares (in thousands) used in the

calculation of earnings per share

Basic

472,655

466,335

Diluted

472,950

466,733

Brown-Forman Corporation

Unaudited Condensed Consolidated Balance Sheets

(Dollars in millions)

  April 30,
2025

April 30,
2026

Assets:

Cash and cash equivalents

$

444

$

308

Accounts receivable, net

830

832

Inventories

2,511

2,543

Assets held for sale

121

—

Other current assets

289

308

Total current assets

4,195

3,991

Property, plant, and equipment, net

1,095

1,116

Goodwill

1,505

1,522

Other intangible assets

981

943

Other assets

310

322

Total assets

$

8,086

$

7,894

Liabilities:

Accounts payable and accrued expenses

$

741

$

795

Accrued income taxes

27

18

Short-term borrowings

312

68

Current portion of long-term debt

—

351

Total current liabilities

1,080

1,232

Long-term debt

2,421

2,083

Deferred income taxes

241

207

Accrued postretirement benefits

164

172

Other liabilities

187

180

Total liabilities

4,093

3,874

Stockholders’ equity

3,993

4,020

Total liabilities and stockholders’ equity

$

8,086

$

7,894

Brown-Forman Corporation

Unaudited Condensed Consolidated Statements of Cash Flows

For the Twelve Months Ended April 30, 2025 and 2026

(Dollars in millions)

  2025

2026

Cash provided by operating activities

$

598

$

1,000

Cash flows from investing activities:

Proceeds from sale of cooperage assets

51

33

Proceeds from sale of equity method investment

350

—

Additions to property, plant, and equipment

(167

)

(107

)

Other

15

3

Cash provided by (used for) investing activities

249

(71

)

Cash flows from financing activities:

Net change in short-term borrowings

(117

)

(244

)

Repayment of long-term debt

(300

)

—

Acquisition of treasury stock

—

(400

)

Dividends paid

(420

)

(427

)

Other

(6

)

(3

)

Cash provided by (used for) financing activities

(843

)

(1,074

)

Effect of exchange rate changes

3

9

Net increase (decrease) in cash, cash equivalents, and restricted cash

7

(136

)

Cash, cash equivalents, and restricted cash at beginning of period

456

463

Cash, cash equivalents, and restricted cash at end of period

463

327

Less: Restricted cash at end of period

(19

)

(19

)

Cash and cash equivalents at end of period

$

444

$

308

Schedule A

Brown-Forman Corporation

Supplemental Statement of Operations Information (Unaudited)

Percentage change versus the prior-year period ended

April 30, 2026

3 Months

12 Months

Reported change in net sales

2

%

(1

%)

Acquisitions and divestitures

2

%

3

%

Foreign exchange

(2

%)

(2

%)

Organic* change in net sales

2

%

—

%

Reported change in gross profit

11

%

2

%

Acquisitions and divestitures

1

%

1

%

Other items*

(1

%)

—

%

Foreign exchange

(2

%)

(2

%)

Organic change in gross profit

10

%

—

%

Reported change in advertising expenses

(10

%)

(4

%)

Acquisitions and divestitures

1

%

2

%

Foreign exchange

(3

%)

(2

%)

Organic change in advertising expenses

(12

%)

(5

%)

Reported change in SG&A

34

%

9

%

Acquisitions and divestitures

—

%

—

%

Foreign exchange

(2

%)

(2

%)

Organic change in SG&A

32

%

7

%

Reported change in operating income

(53

%)

(10

%)

Acquisitions and divestitures

7

%

5

%

Impairment charges

54

%

8

%

Other items*

(12

%)

(4

%)

Foreign exchange

5

%

(1

%)

Organic change in operating income

—

%

(2

%)

Schedule B

Brown-Forman Corporation

Supplemental Statement of Operations Information (Unaudited)

Twelve Months Ended April 30, 2026

Supplemental Information^

Volumes (9-Liter Cases)

Net Sales % Change vs. Prior-Year Period

Product Category / Brand Family / Brand^

Depletions

(Millions)*

% Change vs. Prior-Year Period

Shipments

(Millions)*

% Change vs. Prior-Year Period

Reported

Acquisitions and Divestitures

Foreign Exchange

Organic^

Whiskey

20.9

—

%

21.0

—

%

3

%

—

%

(1

%)

1

%

JDTW

13.4

(3

%)

13.3

(3

%)

(2

%)

—

%

(1

%)

(4

%)

JDTH

1.9

(4

%)

1.9

(4

%)

(3

%)

—

%

(2

%)

(5

%)

Gentleman Jack

0.8

(2

%)

0.8

(1

%)

(1

%)

—

%

(1

%)

(2

%)

JDTA

1.1

14

%

1.1

12

%

12

%

—

%

(2

%)

10

%

JDTF

0.6

(7

%)

0.6

(8

%)

(7

%)

—

%

(1

%)

(8

%)

Woodford Reserve

1.8

—

%

1.9

1

%

4

%

—

%

—

%

4

%

Old Forester

0.5

(3

%)

0.5

—

%

5

%

—

%

—

%

5

%

Rest of Whiskey

0.9

91

%

1.0

115

%

61

%

—

%

(1

%)

60

%

Ready-to-Drink

23.6

9

%

23.8

10

%

11

%

—

%

(4

%)

7

%

JD RTD/RTP

9.9

(4

%)

9.9

(4

%)

(3

%)

—

%

(3

%)

(5

%)

New Mix

13.7

21

%

13.8

22

%

41

%

—

%

(8

%)

33

%

Tequila

1.9

(7

%)

1.9

(3

%)

(4

%)

—

%

(1

%)

(6

%)

el Jimador

1.3

(6

%)

1.3

(1

%)

(2

%)

—

%

(1

%)

(2

%)

Herradura

0.5

(11

%)

0.5

(11

%)

(9

%)

—

%

(1

%)

(10

%)

Rest of Portfolio

1.1

6

%

1.1

15

%

(31

%)

53

%

(4

%)

18

%

Non-branded and bulk

NA

NA

NA

NA

(68

%)

—

%

—

%

(68

%)

Total Portfolio

47.5

4

%

47.8

5

%

(1

%)

3

%

(2

%)

—

%

Other Brands and Aggregations

Jack Daniel's Family

28.3

(2

%)

28.4

(1

%)

1

%

—

%

(2

%)

—

%

American Whiskey

19.5

(1

%)

19.6

—

%

2

%

—

%

(1

%)

—

%

Diplomático

0.3

3

%

0.3

12

%

17

%

—

%

(5

%)

11

%

Gin Mare

0.2

19

%

0.2

18

%

36

%

—

%

(6

%)

30

%

Schedule C

Brown-Forman Corporation

Supplemental Statement of Operations Information (Unaudited)

Twelve Months Ended April 30, 2026

Net Sales % Change vs. Prior-Year Period

Geographic Area^

Reported

Acquisitions and Divestitures

Foreign Exchange

Organic^

United States

(7

%)

7

%

—

%

—

%

Developed International

—

%

—

%

(3

%)

(3

%)

Germany

(2

%)

—

%

(5

%)

(7

%)

Australia

1

%

—

%

—

%

—

%

United Kingdom

(6

%)

—

%

(3

%)

(9

%)

France

(2

%)

—

%

(5

%)

(7

%)

Spain

—

%

1

%

(5

%)

(4

%)

Rest of Developed International

7

%

—

%

(3

%)

4

%

Emerging

14

%

1

%

(3

%)

12

%

Mexico

20

%

—

%

(7

%)

13

%

Poland

7

%

6

%

(11

%)

2

%

Brazil

13

%

—

%

(2

%)

12

%

Türkiye

(4

%)

—

%

22

%

19

%

Rest of Emerging

16

%

—

%

(2

%)

15

%

Travel Retail

6

%

—

%

(2

%)

5

%

Non-branded and bulk

(68

%)

—

%

—

%

(68

%)

Total

(1

%)

3

%

(2

%)

—

%

Schedule D

Brown-Forman Corporation

Supplemental Information (Unaudited) —
Estimated Net Change in Distributor Inventories

Twelve Months Ended April 30, 2026

Estimated Net Change in Distributor
Inventories^ vs. Prior-Year Period

Geographic Area^ - Net Sales

United States

1%

Developed International

1%

Emerging

3%

Travel Retail

—%

Non-branded and bulk

—%

Product category / brand family / brand^

Whiskey

1%

JDTW

—%

JDTH

—%

Gentleman Jack

1%

JDTA

(1%)

JDTF

(1%)

Woodford Reserve

3%

Old Forester

6%

Rest of Whiskey

12%

Ready-to-Drink

1%

JD RTD/RTP

—%

New Mix

3%

Tequila

2%

el Jimador

5%

Herradura

—%

Rest of Portfolio

7%

Non-branded and bulk

—%

Statement of Operations Line Items

Net Sales

2%

Cost of Sales

1%

Gross Profit

2%

Operating Income

3%

Schedule E

Brown-Forman Corporation

Supplemental Free Cash Flow Information (Unaudited)

For the Twelve Months Ended April 30, 2025 and 2026

(Dollars in millions)

2025

2026

Cash provided by operating activities

$

598

$

1,000

Additions to property, plant, and equipment

(167

)

(107

)

Free cash flow*

431

893

Note 1 - All related commentary and percentage growth rates are on a reported basis and compared to the same prior-year periods, unless otherwise noted.

Note 2 - Non-GAAP Financial Measures

Use of Non-GAAP Financial Information. We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). Additionally, we use some financial measures in this press release that are not measures of financial performance under GAAP. These non-GAAP measures, defined below, should be viewed as supplements to (not substitutes for) our results of operations and other measures reported under GAAP. Other companies may define or calculate these non-GAAP measures differently. Reconciliations of these non-GAAP measures to the most closely comparable GAAP measures are presented on Schedules A, B, C, and E of this press release.

“Organic change” in measures of statements of operations. We present changes in certain measures, or line items, of the statements of operations that are adjusted to an “organic” basis. We use “organic change” for the following measures: (a) organic net sales; (b) organic cost of sales; (c) organic gross profit; (d) organic advertising expenses; (e) organic selling, general, and administrative (SG&A) expenses; (f) organic other expense (income), net; (g) organic operating expenses*; and (h) organic operating income. To calculate these measures, we adjust, as applicable, for (1) acquisitions and divestitures, (2) impairment charges, (3) other items, and (4) foreign exchange. We explain these adjustments below.

“Acquisitions and divestitures.” This adjustment removes (a) the gain or loss recognized on the sale of divested brands and certain assets, (b) any non-recurring effects related to our acquisitions and divestitures (e.g., transaction, transition, and integration costs), (c) the effects of operating activity related to acquired and divested brands, including certain divested agency brands, for periods not comparable year over year (non-comparable periods), and (d) fair value changes to contingent consideration liabilities. Excluding non-comparable periods allows us to include the effects of acquired and divested brands only to the extent that results are comparable year over year. For the periods presented, we had the following acquisitions and divestitures adjustments During fiscal 2023, we acquired the Gin Mare brand (Gin Mare). The purchase price consisted of cash paid at the acquisition date plus contingent consideration that is payable in cash no later than July 2027. We recognized $43 million and $15 million in favorable fair value adjustments to Gin Mare’s contingent consideration liability during fiscal 2025 and fiscal 2026, respectively. This adjustment removes the fair value impact from our other expense (income), net and operating income for the periods presented.

During fiscal 2024, we sold our Finlandia vodka and Sonoma-Cutrer wine businesses and entered into transition services agreements (TSAs) related to distribution services in certain markets for these businesses. This adjustment removes the net sales, cost of sales, operating expenses, and operating income recognized pursuant to the TSAs for the non-comparable period, which is activity from fiscal 2025.

During fiscal 2025, we recognized a gain of $12 million on the sale of the Alabama cooperage. This adjustment removes the gain from our other expense (income), net and operating income.

During fiscal 2026, we ended our sales, marketing, and distribution relationship with Korbel Champagne Cellars (Korbel relationship), effective June 30, 2025. This adjustment removes the net sales, cost of sales, operating expenses, and operating income for the non-comparable period, which is July through April of fiscal 2025 and fiscal 2026.

“Impairment Charges.” This adjustment removes the impact of impairment charges from our results of operations. During fiscal 2025, we recognized a non-cash impairment charge of $47 million for the Gin Mare brand name. During fiscal 2026, we recognized non-cash impairment charges of $45 million and $87 million for the Gin Mare and Diplomático brand names, respectively.

“Other Items.” Other Items include the additional items outlined below. “Franchise tax refund.” During fiscal 2025, we recognized a $13 million franchise tax refund due to a change in franchise tax calculation methodology for the state of Tennessee. This modification lowered our annual franchise tax obligation and was retroactively applied to franchise taxes paid during fiscal 2020 through fiscal 2023. This adjustment removes the franchise tax refund from our other expense (income), net and operating income.

“Restructuring initiative.” During fiscal 2025, our Board of Directors approved a plan to reduce our structural cost base and realign resources toward future sources of growth. This included reducing our workforce by approximately 12% and closing the Louisville-based Brown-Forman Cooperage. We also offered a special, one-time early retirement benefit to qualifying U.S. employees. In fiscal 2025, we incurred $63 million* in charges related to the restructuring initiative. During fiscal 2026, we incurred $19 million in restructuring and other charges associated with this initiative and completed the sale of Brown-Forman Cooperage facility and related assets. This adjustment removes the restructuring initiative impact from our cost of sales, operating expenses and operating income for the periods presented.

“Substitution drawback claims.” During fiscal 2026, we recognized a net benefit of $18 million related to the collection of substitution drawback claims filed with the U.S. Government between fiscal 2016 and 2019. As of the first quarter of fiscal 2026, all claims had been collected. Comparatively, we recognized an immaterial net benefit in fiscal 2025 related to the collection of substitution drawback claims. This adjustment removes the benefit from our other expense (income), net and operating income for the periods presented.

“Foreign exchange.” We calculate the percentage change in certain line items of the statements of operations in accordance with GAAP and adjust to exclude the cost or benefit of currency fluctuations. Adjusting for foreign exchange allows us to understand our business on a constant-dollar basis, as fluctuations in exchange rates can distort the organic trend both positively and negatively. (In this press release, “dollar” means the U.S. dollar unless stated otherwise.) To eliminate the effect of foreign exchange fluctuations when comparing across periods, we translate current-year results at prior-year rates and remove transactional and hedging foreign exchange gains and losses from current- and prior-year periods. We use the non-GAAP measure “organic change,” along with other metrics, to: (a) understand our performance from period to period on a consistent basis; (b) compare our performance to that of our competitors; (c) calculate components of management incentive compensation; (d) plan and forecast; and (e) communicate our financial performance to the Board of Directors, stockholders, and the investment community. We have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. We believe these non-GAAP measures are useful to readers and investors because they enhance the understanding of our historical financial performance and comparability between periods. When we provide guidance for organic change in certain measures of the statements of operations, we do not provide guidance for the corresponding GAAP change, as the GAAP measure will include items that are difficult to quantify or predict with reasonable certainty, such as foreign exchange, which could have a significant impact to our GAAP income statement measures.

In addition to the non-GAAP financial measures presented, we believe that our results are affected by changes in distributor inventories, particularly in our largest market, the United States, where the spirits industry is subject to regulations that essentially mandate a so-called “three-tier system,” with a value chain that includes suppliers, distributors, and retailers. Accordingly, we also provide information concerning estimated fluctuations in distributor inventories. We believe such information is useful in understanding our performance and trends as it provides relevant information regarding customers’ demand for our products. See Schedule D of this press release.

“Free cash flow.” Free cash flow is a liquidity measure that represents cash provided by operating activities less additions to property, plant, and equipment. In Schedule E, we provide this calculation for the relevant periods. We believe this non-GAAP measure provides useful information to investors about the amount of cash generated from our business operations. We use free cash flow primarily to meet current obligations, make appropriate capital and strategic investments, and return cash to our stockholders through regular dividends and, from time to time, through share repurchases and special dividends. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations, such as debt service, that are not deducted from this measure. Free cash flow should be considered in addition to, rather than as a substitute for, cash provided by operating activities reported under GAAP.

Note 3 - Definitions

From time to time, to explain our results of operations or to highlight trends and uncertainties affecting our business, we aggregate markets according to stage of economic development as defined by the International Monetary Fund (IMF), and we aggregate brands by beverage alcohol category. Below, we define the geographic and brand aggregations used in this release.

Geographic Aggregations.

In Schedule C and Schedule D, we provide supplemental information for our top markets ranked by percentage of reported net sales. In addition to markets listed by country name, we include the following aggregations:

“Developed International” markets are “advanced economies” as defined by the IMF, excluding the United States. Our top developed international markets were Germany, Australia, the United Kingdom, France, and Spain. This aggregation represents our net sales of branded products to these markets. “Spain” includes Spain and certain other surrounding territories. “Emerging” markets are “emerging and developing economies” as defined by the IMF. Our top emerging markets were Mexico, Poland, Brazil, and Türkiye. This aggregation represents our net sales of branded products to these markets. “Brazil” includes Brazil, Paraguay, Uruguay, and certain other surrounding territories. “Travel Retail” represents our net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military, regardless of customer location. “Non-branded and bulk” includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey, regardless of customer location. Brand Aggregations.

In Schedule B and Schedule D, we provide supplemental information for our top brands ranked by percentage of reported net sales. In addition to brands listed by name, we include the aggregations outlined below.

Beginning in fiscal 2025, we aggregated the “Wine” and “Vodka” product categories with “Rest of Portfolio,” due to the divestitures of Sonoma-Cutrer and Finlandia. Please refer to the new definition of “Rest of Portfolio” for more information.

“Whiskey” includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel’s family of brands (excluding the “Ready-to-Drink” products defined below), the Woodford Reserve family of brands (Woodford Reserve), the Old Forester family of brands (Old Forester), The Glendronach, Benriach, Glenglassaugh, and Slane Irish Whiskey. “American whiskey” includes the Jack Daniel’s family of brands (excluding the “Ready-to-Drink” products defined below), Woodford Reserve, and Old Forester. “Super-premium American whiskey” includes Woodford Reserve, Gentleman Jack, and other super-premium Jack Daniel’s expressions. “Ready-to-Drink” includes all ready-to-drink (RTD) and ready-to-pour (RTP) products. The brands included in this category are Jack Daniel’s RTD and RTP products (JD RTD/RTP), New Mix, and other RTD/RTP products. “Jack Daniel’s RTD/RTP” products include all RTD line extensions of Jack Daniel’s, such as Jack Daniel’s & Coca-Cola RTD, Jack Daniel’s & Cola, Jack Daniel’s Double Jack, Jack Daniel’s Country Cocktails (JDCC)*, and other malt- and spirit-based Jack Daniel’s RTDs, along with Jack Daniel’s Winter Jack RTP. “Jack Daniel’s & Coca-Cola RTD” includes all Jack Daniel’s & Coca-Cola RTD products and Jack Daniel’s bulk whiskey shipments for the production of these products. “Tequila” includes el Jimador, the Herradura family of brands (Herradura), and other tequilas. “Rest of Portfolio” includes Diplomático, Gin Mare, Chambord, other agency brands (brands we do not own, but sell in certain markets), Korbel California Champagnes and Korbel Brandy†, Fords Gin, Finlandia Vodka (which was divested on November 1, 2023), and Sonoma-Cutrer (which was divested on April 30, 2024). “Non-branded and bulk” includes net sales of used barrels, contract bottling services, and non-branded bulk whiskey. “Jack Daniel’s family of brands” includes Jack Daniel’s Tennessee Whiskey (JDTW), JD RTD/RTP, Jack Daniel’s Tennessee Honey (JDTH), Gentleman Jack, Jack Daniel’s Tennessee Apple (JDTA), Jack Daniel’s Tennessee Blackberry (JDTB), Jack Daniel’s Tennessee Fire (JDTF), Jack Daniel’s Single Barrel Collection (JDSB), Jack Daniel’s Bonded Series, Jack Daniel’s Sinatra Select, Jack Daniel’s 10 Year Old, Jack Daniel’s American Single Malt, Jack Daniel’s 14 Year Old, Jack Daniel’s 12 Year Old, and other Jack Daniel’s expressions. Other Metrics.

“Shipments.” We generally record revenues when we ship or deliver our products to our customers. In this release unless otherwise specified, we refer to shipments when discussing volume. “Depletions.” This metric is commonly used in the beverage alcohol industry to describe volume. Depending on the context, depletions usually means either (a) where Brown-Forman is the distributor, shipments directly to retail or wholesale customers or (b) where Brown-Forman is not the distributor, shipments from distributor customers to retailers and wholesalers. We believe that depletions measure volume in a way that more closely reflects consumer demand than our shipments to distributor customers do. “Consumer takeaway.” When discussing trends in the market, we refer to consumer takeaway, a term commonly used in the beverage alcohol industry that refers to the purchase of product by consumers from retail outlets, including products purchased through e-commerce channels, as measured by volume or retail sales value. This information is provided by outside parties, such as Nielsen and the National Alcohol Beverage Control Association (NABCA). Our estimates of market share or changes in market share are derived from consumer takeaway data using the retail sales value metric. “Estimated net change in distributor inventories.” We generally recognize revenue when our products are shipped or delivered to customers. In the United States and certain other markets, our customers are distributors that sell downstream to retailers and consumers. We believe that our distributors’ downstream sales more closely reflect actual consumer demand than do our shipments to distributors. Our shipments increase distributors’ inventories, while distributors’ depletions (as described above) reduce their inventories. Therefore, it is possible that our shipments do not coincide with distributors’ downstream depletions and merely reflect changes in distributors’ inventories. Because changes in distributors’ inventories could affect our trends, we believe it is useful for investors to understand those changes in the context of our operating results. We perform the following calculation to determine the “estimated net change in distributor inventories”:

For both the current-year period and the comparable prior-year period, we calculate a “depletion-based” amount by (a) dividing the organic dollar amount (e.g., organic net sales) by the corresponding shipment volumes to arrive at a shipment-per-case amount, and (b) multiplying the resulting shipment-per-case amount by the corresponding depletion volumes. We subtract the year-over-year percentage change of the “depletion-based” amount from the year-over-year percentage change of the organic amount to calculate the “estimated net change in distributor inventories.” A positive difference is interpreted as a net increase in distributors’ inventories, which implies that organic trends could decrease as distributors reduce inventories; whereas a negative difference is interpreted as a net decrease in distributors’ inventories, which implies that organic trends could increase as distributors rebuild inventories.

Brown-Forman posted higher revenue in the fiscal fourth quarter, but said pressures to the broader spirits market are expected to keep sales flat in the new fiscal year.

Brown-Forman Corporation receives a Hold rating, reflecting structural headwinds and muted long-term growth prospects despite strong brands. The recent quarter showed 2% revenue growth and gross margin gains, but operating income fell 53% and EPS declined 62%. Emerging markets and premiumization trends support BF.B's brand strength, with double-digit organic growth in Mexico, Brazil, and Turkey.

Brown-Forman Corporation reported stable earnings in Q4. The performance is good when considering significant sector pressure in developed markets. Successful product launches, distribution changes, and better growth in emerging markets continue to drive Brown-Forman's relative strength. The FY2027 outlook isn't as good. Slowing alcohol consumption weighs on the sales outlook, and Brown-Forman will start to bottle more expensive inventory from early 2020s.

WSFS Financial (WSFS - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

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Earnings Estimate Revisions for WSFSFor the fiscal year ending December 2026, this bank holding company is expected to earn $5.78 per share, which is unchanged compared with the year-ago reported number.

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The upgrade of WSFS to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Great Southern Bancorp (NASDAQ: GSBC - Get Free Report) and WSFS Financial (NASDAQ: WSFS - Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends. Analyst Ratings This is a summary of

Posted by Defense World Staff on Apr 6th, 2026

Aberdeen Group plc trimmed its holdings in WSFS Financial Corporation (NASDAQ:WSFS – Free Report) by 4.6% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 383,212 shares of the bank’s stock after selling 18,517 shares during the period. Aberdeen Group plc owned 0.70% of WSFS Financial worth $21,169,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in the business. Bryn Mawr Trust Advisors LLC purchased a new stake in WSFS Financial in the 3rd quarter valued at approximately $1,051,000. Tudor Investment Corp ET AL purchased a new position in WSFS Financial during the third quarter worth $1,153,000. Cooke & Bieler LP raised its holdings in shares of WSFS Financial by 15.5% in the third quarter. Cooke & Bieler LP now owns 1,031,956 shares of the bank’s stock worth $55,653,000 after acquiring an additional 138,220 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in shares of WSFS Financial by 2.2% in the third quarter. JPMorgan Chase & Co. now owns 1,544,508 shares of the bank’s stock worth $83,295,000 after acquiring an additional 33,398 shares during the last quarter. Finally, Wilmington Savings Fund Society FSB lifted its position in shares of WSFS Financial by 46.5% in the third quarter. Wilmington Savings Fund Society FSB now owns 89,669 shares of the bank’s stock valued at $4,836,000 after acquiring an additional 28,471 shares in the last quarter. 88.49% of the stock is currently owned by hedge funds and other institutional investors.

WSFS Financial Stock Performance NASDAQ:WSFS opened at $66.30 on Monday. The business’s 50-day moving average is $65.16 and its two-hundred day moving average is $58.68. The firm has a market capitalization of $3.50 billion, a PE ratio of 13.00 and a beta of 0.75. WSFS Financial Corporation has a 12 month low of $42.44 and a 12 month high of $71.32. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.84 and a quick ratio of 0.84.

WSFS Financial (NASDAQ:WSFS – Get Free Report) last issued its earnings results on Monday, January 26th. The bank reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.26 by $0.17. WSFS Financial had a return on equity of 10.89% and a net margin of 21.14%.The company had revenue of $90.08 million during the quarter, compared to the consensus estimate of $267.36 million. During the same quarter in the prior year, the business earned $1.11 earnings per share. The company’s revenue was up 4.0% compared to the same quarter last year. Research analysts predict that WSFS Financial Corporation will post 4.47 earnings per share for the current fiscal year.

WSFS Financial Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 13th were paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Friday, February 13th. WSFS Financial’s dividend payout ratio is 13.33%.

Wall Street Analyst Weigh In A number of analysts recently issued reports on the stock. TD Cowen restated a “buy” rating on shares of WSFS Financial in a research report on Wednesday, January 28th. Zacks Research downgraded WSFS Financial from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 30th. Brean Capital started coverage on shares of WSFS Financial in a research note on Tuesday, March 10th. They set a “buy” rating and a $74.50 price objective for the company. DA Davidson initiated coverage on shares of WSFS Financial in a report on Wednesday, February 25th. They set a “neutral” rating and a $74.00 price objective on the stock. Finally, Stephens reiterated an “overweight” rating and issued a $71.00 price target (up from $66.00) on shares of WSFS Financial in a report on Wednesday, January 28th. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $71.42.

Get Our Latest Stock Analysis on WSFS Financial

Insiders Place Their Bets In other WSFS Financial news, EVP Arthur J. Bacci sold 2,005 shares of the company’s stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $70.51, for a total transaction of $141,372.55. Following the sale, the executive vice president owned 26,366 shares in the company, valued at $1,859,066.66. This represents a 7.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Shari Kruzinski sold 1,000 shares of the stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $70.10, for a total value of $70,100.00. Following the transaction, the executive vice president directly owned 14,740 shares in the company, valued at approximately $1,033,274. This represents a 6.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,455 shares of company stock valued at $242,923 in the last ninety days. Corporate insiders own 1.10% of the company’s stock.

About WSFS Financial (Free Report)

WSFS Financial Corporation is the bank holding company for WSFS Bank, a regional financial institution headquartered in Wilmington, Delaware. The company traces its roots to the Safe Deposit & Trust Company, founded in 1832, and formally organized as WSFS Financial in the mid-1980s. Over its long history, WSFS has grown through a combination of organic expansion and selective acquisitions to serve a broad base of individual, commercial and institutional clients.

WSFS Bank offers a full suite of banking and financial services, including retail and commercial deposit accounts, commercial and industrial lending, real estate financing, and treasury management solutions.

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WILMINGTON, Del.--(BUSINESS WIRE)--WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, expects to report its first quarter earnings at the end of business on Thursday, April 23, 2026. Management will conduct a conference call to review this information at 1:00 p.m. Eastern Time (ET) on Friday, April 24, 2026.

Interested parties can register in advance here or access the conference call live at investors.wsfsbank.com. Earnings release and supplemental materials will be available prior to the start of the event via the Investor Relations section of the Company’s website, and participants are advised to log on at least 15 minutes prior to the broadcast.

For those who cannot access the live conference call, a replay will be accessible shortly after the event concludes through the links above.

About WSFS Financial Corporation

WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region. As of December 31, 2025, WSFS Financial Corporation had $21.3 billion in assets on its balance sheet and $97.4 billion in assets under management and administration. WSFS operates from 113 offices, 87 of which are banking offices, located in Pennsylvania (58), Delaware (37), New Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management, and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Trust Advisors, LLC, Bryn Mawr Trust®, The Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane Finance®, WSFS Wealth® Management, LLC, WSFS Institutional Services®, and WSFS Mortgage®. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

WILMINGTON, Del.--(BUSINESS WIRE)--WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, announced today it has entered into a long-term lease for its office located at 1818 Market Street. This renewal ensures the company remains a fixture of the Philadelphia skyline and a prominent member of the local business community.

“This lease renewal underscores our unwavering commitment to Philadelphia, a city that has been integral to our growth and success as an organization,” said Rodger Levenson, WSFS Chairman, President, and CEO. “Philadelphia is not just a key market for WSFS; it’s a vibrant community where we are proud to be an employer of choice, fostering opportunities for our Associates and contributing to the city’s economic vitality.”

The building, also known as WSFS Bank Place, has been occupied by WSFS since 2019 and now houses more than 250 Associates. WSFS further enhanced its presence at Bank Place in 2024 with the opening of a WSFS banking office, full-service ATM, and accompanying Wiss Fiss Lounge.

“This renewed investment in our Center City office reflects our dedication to collaboration, innovation, and delivering exceptional service to our Philadelphia-based clients and communities for years to come,” said Levenson.

About WSFS Financial Corporation

WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region. As of December 31, 2025, WSFS Financial Corporation had $21.3 billion in assets on its balance sheet and $97.4 billion in assets under management and administration. WSFS operates from 113 offices, 87 of which are banking offices, located in Pennsylvania (58), Delaware (37), New Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management, and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Trust Advisors, LLC, Bryn Mawr Trust®, The Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane Finance®, WSFS Wealth® Management, LLC, WSFS Institutional Services®, and WSFS Mortgage®. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

WILMINGTON, Del.--(BUSINESS WIRE)--WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today announced its financial results for the first quarter of 2026.

Selected financial results and metrics are as follows:

(Dollars in millions, except per share data)

1Q 2026

4Q 2025

1Q 2025

Net interest income

$

185.1

$

187.4

$

175.2

Fee revenue

90.1

84.5

80.9

Total net revenue

275.3

271.9

256.1

(Recovery of) provision for credit losses

(2.0

)

12.7

17.4

Noninterest expense

162.8

162.0

151.8

Net income attributable to WSFS

86.8

72.7

65.9

Pre-provision net revenue (PPNR)(1)

112.5

109.9

104.3

Earnings per share (EPS) (diluted)

1.64

1.34

1.12

Return on average assets (ROA) (a)

1.61

%

1.33

%

1.29

%

Return on average equity (ROE) (a)

12.7

10.5

10.1

Fee revenue as % of total net revenue

32.7

31.0

31.5

Efficiency ratio

59.0

59.5

59.2

See “Notes”

GAAP results for the periods shown include items that are excluded from core results. Below is a summary of the financial effects of these items. In 1Q 2026, these items include restructuring expenses related to a loss on a property sale and a write-down of held-for-sale real estate. For additional detail, refer to the Non-GAAP Reconciliation in the back of this earnings release.

1Q 2026

4Q 2025

1Q 2025

(Dollars in millions, except per share data)

Total (pre-tax)

Per share (pre-tax)

Total (pre-tax)

Per share (pre-tax)

Total (pre-tax)

Per share (pre-tax)

Fee revenue

$

—

$

—

$

(5.6

)

$

(0.10

)

$

—

$

—

Noninterest expense

2.9

0.05

1.1

0.02

0.3

0.01

Income tax impacts

(0.6

)

(0.01

)

(1.6

)

(0.03

)

(0.1

)

—

(1) As used in this press release, PPNR is a non-GAAP financial measure that adjusts net income determined in accordance with GAAP to exclude the impacts of (i) income tax provision and (ii) (recovery of) provision for credit losses. For a reconciliation of this and other non-GAAP financial measures to their most directly comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

CEO Commentary and Highlights

Rodger Levenson, Chairman, CEO and President, said, "WSFS performed very well in the first quarter as reflected by a 49% year-over-year increase in core EPS(2). Our results included robust deposit growth, solid C&I loan fundings, and strong performance in our Wealth and Trust segment, which delivered double-digit year-over-year fee revenue growth. Additionally, we continued to execute our capital return framework through dividends and share repurchases. We look forward to building on this momentum as we optimize ongoing franchise investments and grow market share across our diversified businesses."

Overall highlights included:

Core EPS of $1.68 increased 17% and core ROA(2) of 1.65% increased 23bps compared to 4Q 2025. Excluding a previously disclosed $15.7 million loan recovery, core EPS(2) was $1.45 and core ROA(2) was 1.43%. Wealth and Trust continued to deliver double-digit fee growth, increasing 25% year-over-year. WSFS Institutional Services® increased 46% and The Bryn Mawr Trust Company of Delaware (BMT of DE) increased 27%. Client deposits grew 5% quarter-over-quarter with strong noninterest demand growth of 14% primarily driven by Trust and Commercial. C&I loans grew 2% quarter-over-quarter driven by strong fundings. The Board approved an 18% increase in the quarterly cash dividend to $0.20 per share, along with an additional share repurchase authorization of 15% of our outstanding shares as of March 31, 2026. Repurchased $85.0 million of common stock (2.5% of outstanding shares(3)) and paid quarterly dividends of $9.0 million, for a total capital return of $94.0 million. First Quarter 2026 Discussion of Financial Results

Balance Sheet

The following table summarizes loan and lease balances and composition at March 31, 2026 compared to December 31, 2025 and March 31, 2025:

Loans and Leases

(Dollars in millions)

March 31, 2026

December 31, 2025

March 31, 2025

Commercial & industrial (C&I)(4)

$

4,849

37

%

$

4,766

36

%

$

4,651

36

%

Commercial mortgage

3,882

30

3,916

30

3,982

31

Construction

1,034

7

1,024

7

869

6

Commercial small business leases

588

4

603

5

636

5

Total commercial loans and leases

10,353

78

10,309

78

10,138

78

Residential mortgage

1,127

9

1,120

9

992

8

Consumer

1,854

14

1,894

14

2,033

16

Gross loans and leases

13,334

101

%

13,323

101

%

13,163

102

%

Allowance for Credit Losses (ACL)

(180

)

(1

)

(179

)

(1

)

(188

)

(2

)

Net loans and leases

$

13,154

100

%

$

13,144

100

%

$

12,975

100

%

At March 31, 2026, WSFS’ gross loan and lease portfolio increased $10.6 million, or less than 1%, when compared with December 31, 2025. C&I fundings remained strong, resulting in growth of 2% (not annualized), which included 4% growth in Small Business Banking(5). This growth reflects our continued investment in talent and product offerings, enhancing our ability to win market share and more effectively compete for a broader set of clients. Despite seasonal trends, residential mortgage and home equity generated strong originations and delivered over 1% combined growth. The strong funding momentum was partially offset by elevated payoff and paydown activity in commercial mortgage and residential mortgage as well as the continued runoff of Spring EQ loans.

Gross loans and leases at March 31, 2026 increased 1% when compared with March 31, 2025. Excluding the impacts from the sale of the Upstart portfolio and runoff of Spring EQ, gross loans and leases increased 4%. C&I fundings more than doubled year-over-year, resulting in growth of 4%, while construction loans (19%), residential mortgage (14%), and WSFS-originated consumer loans (15%) also grew. These increases were partially offset by declines in commercial mortgage (3%) and commercial small business leases (8%).

The following table summarizes client deposit balances and composition at March 31, 2026 compared to December 31, 2025 and March 31, 2025:

Client Deposits

(Dollars in millions)

March 31, 2026

December 31, 2025

March 31, 2025

Noninterest demand

$

6,372

34

%

$

5,577

32

%

$

4,947

29

%

Interest-bearing demand

2,848

15

2,884

16

2,882

17

Savings

1,418

8

1,410

8

1,463

9

Money market

5,909

33

5,762

33

5,487

33

Total core deposits

16,547

90

15,633

89

14,779

88

Time deposits

1,921

10

2,009

11

2,100

12

Total client deposits

$

18,468

100

%

$

17,642

100

%

$

16,879

100

%

Total client deposits increased $826.0 million, or 5% (not annualized), when compared with December 31, 2025. Noninterest demand increased 14%, driven by growth in Trust and Commercial, and comprises 34% of total client deposits. Money market grew 3%, while time deposits decreased 4%. End of period deposit balances reflect elevated activity by clients within Trust and Commercial. While some of these transactional deposits are short-term, we continue to see strong deposit growth across our franchise.

Total client deposits increased $1.6 billion, or 9% from March 31, 2025. Noninterest demand grew 29%, driven by Trust and Commercial. Money market grew 8%, driven by Consumer, Trust, and Private Wealth Management, while time deposits decreased 8% as we continued to manage our deposit pricing.

The deposit base remains well-diversified, with 53% of quarterly average client deposits coming from the Commercial, Small Business Banking, and Wealth and Trust businesses. No- and low-cost deposit accounts(6) represented 57% of average total client deposits with a weighted average cost of 28bps for the quarter. The loan-to-deposit ratio(7) was 71% at March 31, 2026, providing capacity to fund ongoing loan growth.

Net Interest Income

Three Months Ending

(Dollars in millions)

March 31, 2026

December 31, 2025

March 31, 2025

Net interest income before purchase accretion

$

183.5

$

186.0

$

173.1

Purchase accounting accretion

1.6

1.4

2.1

Net interest income

$

185.1

$

187.4

$

175.2

Net interest margin before purchase accretion

3.80

%

3.80

%

3.83

%

Purchase accounting accretion

0.03

0.03

0.05

Net interest margin

3.83

%

3.83

%

3.88

%

Net interest income decreased $2.2 million, or 1% (not annualized), compared to 4Q 2025, primarily driven by lower loan yields and higher interest expense on debt, partially offset by lower deposit costs and higher average loan balances.

Net interest income increased $9.9 million, or 6%, compared to 1Q 2025, primarily driven by higher cash balances from growth in deposits, lower deposit costs, and higher average loan balances. The increase was partially offset by lower loan yields.

Total loan yields were 6.27%, a decrease of 13bps when compared to 4Q 2025 and a decrease of 40bps when compared to 1Q 2025. The quarter-over-quarter and year-over-year decreases were primarily driven by the impact of interest rate cuts.

Total client deposit costs were 1.33% and interest-bearing deposit costs were 2.01%, decreases of 12bps and 16bps, respectively, compared to 4Q 2025. Total client deposit costs decreased 38bps and interest-bearing deposit costs decreased 42bps compared to 1Q 2025. The quarter-over-quarter and year-over-year decreases were driven by deposit repricing actions and a continued shift in the mix of deposits, with higher noninterest balances.

Net interest margin of 3.83% was flat compared to 4Q 2025 as lower deposit costs and loan growth were offset by lower loan yields and the higher debt expense noted above. Net interest margin decreased 5bps from 1Q 2025 primarily due to the impact of the three interest rate cuts that occurred in 2025.

Asset Quality

(Dollars in millions)

March 31, 2026

December 31, 2025

March 31, 2025

Problem assets(8)

$

503.9

$

535.9

$

683.7

Delinquencies (n)

100.7

168.4

147.7

Nonperforming assets (n)

87.8

72.1

116.9

Net (recoveries) charge-offs on loans and leases

(3.5

)

15.2

24.6

Total net credit costs (q)

0.2

12.0

17.6

Problem assets to total Tier 1 capital plus ACL on loans and leases

20.71

%

21.98

%

27.83

%

Classified assets to total Tier 1 capital plus ACL on loans and leases

17.19

17.59

20.80

Ratio of nonperforming assets to total assets (n)

0.40

0.34

0.57

Delinquencies (n) to gross loans (i)

0.76

1.27

1.13

Ratio of quarterly net (recoveries) charge-offs to average gross loans

(0.11

)

0.46

0.76

Ratio of allowance for credit losses to total loans and leases (p)

1.36

1.36

1.43

Ratio of allowance for credit losses to nonaccruing loans (n)

240

250

168

See “Notes”

Problem assets continued to trend downward, with a decrease of $32.0 million compared to December 31, 2025, largely driven by payoffs. Delinquencies decreased $67.7 million, or 51bps of gross loans, compared to December 31, 2025, driven by a significant reduction in commercial mortgage delinquencies. Problem assets decreased 26% and delinquencies decreased 32% compared to March 31, 2025.

Nonperforming assets (NPAs) increased $15.7 million, or 6bps of total assets compared to December 31, 2025. The increase in NPAs was primarily driven by a C&I loan of $11.2 million and a multifamily loan of $6.6 million, both of which are well-secured. NPAs are down 25% compared to March 31, 2025.

During the quarter, the Company transferred $12.7 million to other real estate owned related to a nonperforming land development loan.

As previously disclosed in our 2025 Form 10-K, we received payment for loans charged-off in the first quarter of 2025 to a fund invested in office properties, resulting in a recovery of $15.7 million and the payoff of a $2.5 million nonperforming loan. Net recoveries for the quarter were $3.5 million. Excluding the impacts of the recovery, net charge-offs on loans and leases were $12.2 million, a decrease of $2.9 million, or 8bps (annualized) of average gross loans, and total net credit costs increased by $3.9 million when compared to 4Q 2025. The increase in net credit costs was driven by timing-related loan workout costs and higher unfunded commitment reserves as a result of significant new originations.

The ACL on loans and leases was $180.0 million as of March 31, 2026, an increase of $0.4 million when compared to December 31, 2025, and the ACL coverage ratio was flat at 1.36%.

Core Fee Revenue(9)

Core fee revenue (noninterest income) of $90.1 million was flat compared to 4Q 2025. Wealth and Trust fees increased 9%, driven by double-digit growth in WSFS Institutional Services®, coupled with growth in Private Wealth Management and BMT of DE. This increase was offset by a $1.4 million decline in Cash Connect®, due to lower volume and rates (which was more than offset in noninterest expense), as well as lower income from equity investments and Capital Markets.

Core fee revenue increased $9.2 million, or 11%, compared to 1Q 2025. The increase was driven by broad-based double-digit growth across several businesses, including WSFS Institutional Services®, BMT of DE, Capital Markets, and WSFS Home Lending. These increases were partially offset by a $2.7 million decrease in Cash Connect®, primarily due to the impact of interest rate cuts and lower ATM volumes.

For 1Q 2026, our core fee revenue ratio(9) was 32.7% compared to 32.4% in 4Q 2025 and 31.5% in 1Q 2025. Fee revenue diversification is a differentiator with further growth opportunities expected.

Core Noninterest Expense(10)

Core noninterest expense of $159.9 million decreased $1.0 million, or 1% (not annualized), compared to 4Q 2025. The decrease is primarily due to a $2.1 million decline in salaries and benefits driven by the impact of higher performance-based incentives accrued in 4Q 2025, a $1.3 million decline in professional fees and a $1.1 million decline in Cash Connect® external funding costs due to lower rates and volume. These decreases were partially offset by increases from timing-related loan workout costs and higher unfunded commitment reserves as a result of significant new originations.

Core noninterest expense increased $8.4 million, or 6%, compared to 1Q 2025. The increase was primarily driven by a $9.2 million increase in salaries and benefits, driven by the impact of lower incentive payments made in the first quarter of 2025, higher salaries due to annual merit-based increases, and higher medical costs. In addition, loan workout and other credit costs, including unfunded commitment reserves, increased $1.9 million. These increases were partially offset by a $3.3 million decrease in Cash Connect® external funding costs due to lower ATM volume and rates.

Our core efficiency ratio(10) was 58.0% in 1Q 2026, compared to 57.9% in 4Q 2025 and 59.0% in 1Q 2025, reflecting our focus on expense discipline while continuing to invest in the franchise.

Income Taxes

We recorded a $27.6 million income tax provision in 1Q 2026, compared to $24.5 million in 4Q 2025 and $21.1 million in 1Q 2025. These increases were primarily due to higher income before taxes.

The effective tax rate was 24.1% in 1Q 2026 compared to 25.2% in 4Q 2025 and 24.3% in 1Q 2025. The decrease in effective tax rate compared to 4Q 2025 is primarily due to increased federal income tax credits and lower nondeductible expenses.

Capital Management

As part of our annual capital planning process, the Board of Directors approved an 18% increase in the quarterly cash dividend to $0.20 per share of common stock and an incremental share repurchase authorization of 15% of outstanding shares as of March 31, 2026. The dividend will be paid on May 22, 2026 to stockholders of record as of May 8, 2026. As a result of the incremental authorization, WSFS has 10,123,977 shares, or approximately 19% of outstanding shares as of March 31, 2026, available for repurchase.

Capital ratios remain strong and are all substantially in excess of the “well-capitalized” regulatory benchmarks at March 31, 2026, with a Common Equity Tier 1 capital ratio and Tier 1 capital ratio of 13.91%, Tier 1 leverage ratio of 10.51%, and Total Risk-based capital ratio of 15.66%.

During 1Q 2026, WSFS repurchased 1,319,626 shares of common stock for an aggregate of $85.0 million and paid quarterly cash dividends of $9.0 million. Total capital returns to stockholders through share repurchases and quarterly dividends was $94.0 million.

WSFS’ total stockholders’ equity decreased $14.1 million, or less than 1%, during 1Q 2026. The decrease was primarily due to capital returns to stockholders and an increase in accumulated other comprehensive loss of $8.5 million, driven by market-value decreases on available-for-sale investment securities. These decreases were partially offset by quarterly earnings of $86.8 million.

WSFS’ tangible common equity(11) decreased $10.5 million, or 1% (not annualized), compared to December 31, 2025, primarily due to the reasons described above. WSFS’ common equity to assets ratio decreased 53bps to 12.32% during the quarter. Our tangible common equity to tangible assets ratio(11) decreased 37bps to 8.32% during the quarter.

At March 31, 2026, book value per share was $52.24, an increase of $0.97, or 2% (not annualized), from December 31, 2025, and tangible book value per share(11) was $33.71, an increase of $0.60, or 2% (not annualized), from December 31, 2025. Book value per share increased $5.93, or 13%, and tangible book value per share increased $4.46, or 15%, compared to 1Q 2025.

Selected Business Segments (included in previous results):

Wealth and Trust

The Wealth and Trust segment provides a broad array of planning and advisory services, investment management, trust services, credit and deposit products to individual, corporate, and institutional Clients.

Selected quarterly performance results and metrics are as follows:

(Dollars in millions, except where otherwise noted)

March 31, 2026

December 31, 2025

March 31, 2025

Net interest income

$

27.5

$

27.2

$

20.3

Provision for credit losses

1.2

1.0

0.8

Fee revenue(12)

50.0

46.2

39.9

Noninterest expense(12)

31.8

32.1

30.0

Pre-tax income

44.5

40.2

29.4

Performance Metrics

WSFS Institutional Services® and BMT of DE fee revenue

$

34.2

$

31.3

$

24.3

Private Wealth Management fee revenue

15.9

15.5

15.1

AUM/AUA (in billions)(13)

97.6

97.4

89.6

Wealth and Trust pre-tax income was $44.5 million, which increased $4.3 million, or 11% (not annualized), compared to 4Q 2025, driven by an increase in fee revenue of $3.9 million, or 8%.

The increase in fee revenue was due to higher assignment, custody, and paying agent fees across WSFS Institutional Services® as well as higher AUM-based fees in Private Wealth Management. Net interest income increased $0.3 million or 1% (not annualized), due to higher noninterest deposit balances in Trust.

Wealth and Trust pre-tax income increased $15.1 million, or 52%, compared to 1Q 2025, driven by increases in fee revenue of $10.2 million, or 25%, and net interest income of $7.2 million, or 36%. These increases were partially offset by an increase in noninterest expense of $1.9 million, or 6%.

The increase in fee revenue was driven by growth in WSFS Institutional Services® and BMT of DE, while the increase in net interest income was due to higher noninterest deposit balances in Trust. The increase in noninterest expense was primarily due to lower incentive payments made in the first quarter of 2025.

AUM/AUA increased by $0.2 billion to $97.6 billion at the end of 1Q 2026, as client inflows outpaced market depreciation and client spend.

Cash Connect®

Cash Connect® is a premier provider of ATM vault cash, smart safe and cash logistics services in the United States, servicing non-bank ATMs and smart safes nationwide and supporting ATMs for WSFS Bank Clients.

Selected quarterly financial results and metrics are as follows:

(Dollars in millions)

March 31, 2026

December 31, 2025

March 31, 2025

Net revenue(14)

$

19.6

$

20.7

$

21.5

Noninterest expense(15)

16.7

18.1

19.9

Pre-tax income

3.0

2.6

1.6

Performance Metrics

Average cash managed

$

1,251

$

1,292

$

1,407

Number of serviced non-bank ATMs and smart safes

35,338

35,958

38,214

Net profit margin

15.4

%

12.7

%

7.4

%

ROA

2.38

%

2.11

%

1.21

%

Cash Connect® net profit margin of 15.4% increased 267bps compared to 4Q 2025, and increased 799bps compared to 1Q 2025.

Pre-tax income of $3.0 million in 1Q 2026 increased $0.4 million, or 14% (not annualized), compared to 4Q 2025. Net revenue decreased $1.1 million and noninterest expense decreased $1.4 million compared to 4Q 2025, both driven by lower volume and lower interest rates.

Compared to 1Q 2025, pre-tax income increased $1.5 million, driven by the impact of lower interest rates (lower revenues were more than offset by lower expenses), pricing initiatives (increased revenues), and expense optimization, which more than offset overall ATM volume declines.

Cash Connect® continues to shift its business mix from traditional non-bank ATMs to higher margin products, such as smart safes, which have grown 14% year over year.

First Quarter 2026 Earnings Release Conference Call

Management will conduct a conference call to review 1Q 2026 results at 1:00 p.m. Eastern Time (ET) on Friday, April 24, 2026. Interested parties may access the conference call live on our Investor Relations website (https://investors.wsfsbank.com). For those who cannot access the live conference call, a replay will be accessible shortly after the event concludes through our Investor Relations website.

About WSFS Financial Corporation

WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region. As of March 31, 2026, WSFS Financial Corporation had $22.1 billion in assets on its balance sheet and $97.6 billion in assets under management and administration. WSFS operates from 114 offices, 87 of which are banking offices, located in Pennsylvania (58), Delaware (38), New Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management, and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Trust Advisors, LLC, Bryn Mawr Trust®, The Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane Finance®, WSFS Wealth® Management, LLC, WSFS Institutional Services®, and WSFS Mortgage®. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

Forward-Looking Statements

This press release contains estimates, predictions, opinions, projections and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. The words “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, difficult market conditions and unfavorable economic trends in the United States generally and in financial markets, particularly in the markets in which the Company operates and in which its loans are concentrated, including difficult and unfavorable conditions and trends related to housing markets, costs of living, unemployment levels, interest rates, supply chain issues, inflation, and economic growth; possible additional loan losses and impairment of the collectability of loans; the Company's level of nonperforming assets and the costs associated with resolving problem loans including litigation and other costs and complying with government-imposed foreclosure moratoriums; the credit risk associated with the substantial amount of commercial real estate, commercial and industrial, and construction and land development loans in the Company's loan portfolio; changes in market interest rates, which may increase funding costs and reduce earning asset yields and thus reduce margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of the Company's investment securities portfolio, which could impact market confidence in the Company's operations; the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company's operations, and potential expenses associated with complying with such regulations; the Company's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms; the impacts related to or resulting from bank failures and other economic industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions; changes in trade, monetary and fiscal policies and stimulus programs, laws and regulations and other activities of governments, agencies, and similar organizations, and the uncertainty of the short- and long-term impacts of such changes; any impairments of the Company's goodwill or other intangible assets; the success of the Company's growth plans across our WSFS Bank, Cash Connect® and/or Wealth and Trust segments; the Company's ability to successfully integrate and fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and post-acquisition Client acceptance of the Company's products and services and related Client disintermediation; negative perceptions or publicity with respect to the Company generally and, in particular, the Company's Wealth and Trust business; failure of the financial and/or operational controls of the Company's Cash Connect® and/or Wealth and Trust segments; adverse judgments or other resolution of pending and future legal proceedings, and costs incurred in defending such proceedings; the Company's reliance on third parties for certain important functions, including the operation of its core systems, and any failures by such third parties; system failures or cybersecurity incidents or other breaches of the Company's network security, particularly given remote working arrangements; any actual or perceived failure or deficiency in the use of artificial intelligence by the Company or third-party vendors or service providers; the Company's ability to recruit and retain key Associates; the effects of weather, including climate change, and natural disasters such as floods, droughts, wind, tornadoes, wildfires and hurricanes as well as effects from geopolitical instability, armed conflicts, public health crises and man-made disasters including terrorist attacks; the effects of regional or national civil unrest (including any resulting branch or ATM closures or damage); possible changes in the speed of loan prepayments by the Company's Clients and loan origination or sales volumes; possible changes in market valuations and/or the speed of prepayments of mortgage-backed securities (MBS) due to changes in the interest rate environment, and the related acceleration of premium amortization on prepayments in the event that prepayments accelerate; regulatory limits on the Company's ability to receive dividends from its subsidiaries, and pay dividends to its stockholders; any reputation, credit, interest rate, market, operational, litigation, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above; any compounding effects or unexpected interactions of the risks discussed above; and other risks and uncertainties, including those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 under the heading “Risk Factors” and in other documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company disclaims any duty to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company for any reason, except as specifically required by law. As used in this press release, the terms "WSFS," "the Company," "registrant," "we," "us," and "our" mean WSFS Financial Corporation and its subsidiaries, on a consolidated basis, unless the context indicates otherwise.

WSFS FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS

SUMMARY STATEMENTS OF INCOME (Unaudited)

  Three months ended

(Dollars in thousands, except per share data)

March 31, 2026

December 31, 2025

March 31, 2025

Interest income:

Interest and fees on loans

$

205,243

$

212,247

$

216,752

Interest on mortgage-backed securities

25,242

24,526

24,745

Interest and dividends on investment securities

2,171

2,170

2,186

Other interest income

16,553

18,256

7,195

249,209

257,199

250,878

Interest expense:

Interest on deposits

59,497

65,847

71,104

Interest on Federal Home Loan Bank advances

439

980

938

Interest on senior and subordinated debt

2,766

1,520

2,074

Interest on trust preferred borrowings

1,355

1,483

1,523

Interest on other borrowings

16

16

23

64,073

69,846

75,662

Net interest income

185,136

187,353

175,216

(Recovery of) provision for credit losses

(1,998

)

12,669

17,350

Net interest income after (recovery of) provision for credit losses

187,134

174,684

157,866

Noninterest income:

Credit/debit card and ATM income

15,066

16,804

18,743

Investment management and fiduciary revenue

49,127

45,127

39,281

Deposit service charges

6,877

6,972

6,753

Mortgage banking activities, net

2,361

2,127

1,800

Loan and lease fee income

2,002

2,084

1,465

Unrealized loss on equity investment, net

—

(4,057

)

—

Other income

14,682

15,464

12,855

90,115

84,521

80,897

Noninterest expense:

Salaries, benefits and other compensation

91,887

93,548

82,477

Occupancy expense

10,139

8,340

9,893

Equipment expense

13,272

13,501

12,728

Data processing and operations expense

5,011

5,195

4,695

Professional fees

4,118

5,420

4,698

Marketing expense

2,135

2,639

1,695

FDIC expenses

2,634

2,544

2,578

Loss on debt extinguishment

—

1,151

—

Loan workout and other credit costs

2,174

(696

)

240

Corporate development expense

57

55

59

Restructuring expense

2,796

(126

)

260

Other operating expenses

28,542

30,402

32,472

162,765

161,973

151,795

Income before taxes

114,484

97,232

86,968

Income tax provision

27,639

24,538

21,101

Net income

86,845

72,694

65,867

Less: Net income (loss) attributable to noncontrolling interest

18

16

(29

)

Net income attributable to WSFS

$

86,827

$

72,678

$

65,896

Diluted earnings per share of common stock:

$

1.64

$

1.34

$

1.12

Weighted average shares of common stock outstanding for fully diluted EPS

53,031,912

54,369,944

58,713,452

See “Notes”

WSFS FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS

SUMMARY STATEMENTS OF INCOME (Unaudited) - continued

  Three months ended

March 31, 2026

December 31, 2025

March 31, 2025

Performance Ratios:

Return on average assets (a)

1.61

%

1.33

%

1.29

%

Return on average equity (a)

12.71

10.51

10.13

Return on average tangible common equity (a)(o)

20.18

16.91

16.91

Net interest margin (a)(b)

3.83

3.83

3.88

Efficiency ratio (c)

59.0

59.5

59.2

Noninterest income as a percentage of total net revenue (b)

32.7

31.0

31.5

See “Notes”

WSFS FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (Continued)

SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)

  (Dollars in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Assets:

Cash and due from banks

$

2,067,824

$

1,326,339

$

693,830

Cash in non-owned ATMs

397,877

363,926

322,520

Investment securities, available-for-sale

3,581,894

3,542,246

3,548,077

Investment securities, held-to-maturity

958,219

968,331

1,006,410

Other investments

43,291

32,524

39,552

Net loans and leases (e)(f)(l)

13,153,815

13,143,600

12,975,323

Goodwill and intangibles

966,388

969,903

983,882

Other assets

937,607

967,207

979,356

Total assets

$

22,106,915

$

21,314,076

$

20,548,950

Liabilities and Stockholders’ Equity:

Noninterest-bearing deposits

$

6,371,522

$

5,576,598

$

4,947,049

Interest-bearing deposits

12,096,966

12,065,890

11,932,012

Total client deposits

18,468,488

17,642,488

16,879,061

Federal Home Loan Bank advances

—

—

51,040

Other borrowings

310,355

302,682

267,052

Other liabilities

614,031

640,831

690,588

Total liabilities

19,392,874

18,586,001

17,887,741

Stockholders’ equity of WSFS

2,724,493

2,738,545

2,671,614

Noncontrolling interest

(10,452

)

(10,470

)

(10,405

)

Total stockholders' equity

2,714,041

2,728,075

2,661,209

Total liabilities and stockholders' equity

$

22,106,915

$

21,314,076

$

20,548,950

Capital Ratios:

Equity to asset ratio

12.32

%

12.85

%

13.00

%

Tangible common equity to tangible asset ratio (o)

8.32

8.69

8.63

Common equity Tier 1 capital (required: 4.5%; well capitalized: 6.5%) (g)

13.91

13.92

14.10

Tier 1 leverage (required: 4.00%; well-capitalized: 5.00%) (g)

10.51

10.59

11.17

Tier 1 risk-based capital (required: 6.00%; well-capitalized: 8.00%) (g)

13.91

13.92

14.10

Total risk-based capital (required: 8.00%; well-capitalized: 10.00%) (g)

15.66

15.67

15.89

Asset Quality Indicators:

Nonperforming assets:

Nonaccruing loans (s)(n)

$

75,112

$

71,898

$

111,675

Assets acquired through foreclosure

12,717

200

5,204

Total nonperforming assets

$

87,829

$

72,098

$

116,879

Past due loans (h)(n)

$

12,029

$

22,416

$

11,866

Troubled loans (t)(n)

110,586

144,267

184,122

Allowance for credit losses

182,876

182,500

188,088

Ratio of nonperforming assets to total assets (n)

0.40

%

0.34

%

0.57

%

Ratio of allowance for credit losses to total loans and leases (p)

1.36

1.36

1.43

Ratio of allowance for credit losses to nonaccruing loans (n)

240

250

168

Ratio of quarterly net (recoveries) charge-offs to average gross loans (a)(e)(i)

(0.11

)

0.46

0.76

Ratio of year-to-date net (recoveries) charge-offs to average gross loans (a)(e)(i)

(0.11

)

0.45

0.76

See “Notes”

WSFS FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (Continued)

AVERAGE BALANCE SHEET (Unaudited)

  (Dollars in thousands)

Three months ended

March 31, 2026

December 31, 2025

March 31, 2025

Average

Balance

Interest &

Dividends

Yield/

Rate

(a)(b)

Average

Balance

Interest &

Dividends

Yield/

Rate

(a)(b)

Average

Balance

Interest &

Dividends

Yield/

Rate

(a)(b)

Assets:

Interest-earning assets:

Loans: (e) (j)

Commercial loans

$

4,701,069

$

70,169

6.07

%

$

4,623,319

$

72,389

6.23

%

$

4,598,599

$

73,154

6.45

%

Commercial real estate loans (r)

4,968,948

76,339

6.23

4,916,393

79,765

6.44

4,881,873

79,095

6.57

Commercial leases

588,782

12,850

8.73

604,445

13,216

8.75

636,912

13,958

8.77

Residential mortgage

1,089,151

14,638

5.38

1,059,006

14,056

5.31

965,624

12,802

5.30

Consumer loans

1,871,601

29,847

6.47

1,896,878

31,498

6.59

2,061,803

36,649

7.21

Loans held for sale

66,760

1,400

8.50

69,230

1,323

7.58

50,929

1,094

8.71

Total loans and leases

13,286,311

205,243

6.27

13,169,271

212,247

6.40

13,195,740

216,752

6.67

Mortgage-backed securities (d)

4,191,264

25,242

2.41

4,136,381

24,526

2.37

4,179,692

24,745

2.37

Investment securities (d)

368,318

2,171

2.72

367,731

2,170

2.66

363,678

2,186

2.74

Other interest-earning assets

1,793,908

16,553

3.74

1,795,895

18,256

4.03

640,424

7,195

4.56

Total interest-earning assets

$

19,639,801

$

249,209

5.16

%

$

19,469,278

$

257,199

5.25

%

$

18,379,534

$

250,878

5.55

%

Allowance for credit losses

(184,109

)

(184,484

)

(196,480

)

Cash and due from banks

175,052

166,442

188,138

Cash in non-owned ATMs

351,909

347,883

379,115

Bank owned life insurance

37,289

36,946

36,202

Other noninterest-earning assets

1,855,211

1,861,713

1,947,736

Total assets

$

21,875,153

$

21,697,778

$

20,734,245

Liabilities and stockholders’ equity:

Interest-bearing liabilities:

Interest-bearing deposits:

Interest-bearing demand

$

2,828,403

$

6,055

0.87

%

$

2,861,099

$

7,163

0.99

%

$

2,854,258

$

7,343

1.04

%

Savings

1,395,028

1,163

0.34

1,413,087

1,652

0.46

1,457,440

1,596

0.44

Money market

5,817,813

36,876

2.57

5,708,666

38,871

2.70

5,432,622

41,033

3.06

Time deposits

1,962,289

15,403

3.18

2,047,200

18,158

3.52

2,112,467

21,132

4.06

Total interest-bearing client deposits

12,003,533

59,497

2.01

12,030,052

65,844

2.17

11,856,787

71,104

2.43

Brokered deposits

—

—

—

315

3

3.78

—

—

—

Total interest-bearing deposits

12,003,533

59,497

2.01

12,030,367

65,847

2.17

11,856,787

71,104

2.43

Federal Home Loan Bank advances

44,444

439

4.01

86,957

980

4.47

83,818

938

4.54

Trust preferred borrowings

91,055

1,355

6.04

91,001

1,483

6.47

90,854

1,523

6.80

Senior and subordinated debt

196,919

2,766

5.62

159,787

1,520

3.81

206,984

2,074

4.01

Other borrowed funds

21,868

16

0.30

20,846

16

0.30

31,701

23

0.29

Total interest-bearing liabilities

$

12,357,819

$

64,073

2.10

%

$

12,388,958

$

69,846

2.24

%

$

12,270,144

$

75,662

2.50

%

Noninterest-bearing demand deposits

6,105,690

5,955,352

5,040,032

Other noninterest-bearing liabilities

652,541

621,484

797,098

Stockholders’ equity of WSFS

2,769,574

2,742,480

2,637,354

Noncontrolling interest

(10,471

)

(10,496

)

(10,383

)

Total liabilities and equity

$

21,875,153

$

21,697,778

$

20,734,245

Excess of interest-earning assets over interest-bearing liabilities

$

7,281,982

$

7,080,320

$

6,109,390

Net interest and dividend income

$

185,136

$

187,353

$

175,216

Interest rate spread

3.06

%

3.01

%

3.05

%

Net interest margin

3.83

%

3.83

%

3.88

%

See “Notes”

WSFS FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (Continued)

(Unaudited)

(Dollars in thousands, except per share data)

Three months ended

Stock Information:

March 31, 2026

December 31, 2025

March 31, 2025

Market price of common stock:

High

$71.32

$58.86

$59.43

Low

54.31

49.92

49.65

Close

65.46

55.24

51.87

Book value per share of common stock

52.24

51.27

46.31

Tangible common book value (TBV) per share of common stock (o)

33.71

33.11

29.25

Number of shares of common stock outstanding (000s)

52,149

53,410

57,693

Other Financial Data:

One-year repricing gap to total assets (k)

11.50%

8.37%

2.30%

Weighted average duration of the MBS portfolio

5.8 years

5.8 years

6.1 years

Unrealized losses on securities available for sale, net of taxes

$(385,270)

$(376,545)

$(467,752)

Number of Associates (FTEs) (m)

2,348

2,335

2,336

Number of offices (branches, LPO’s, operations centers, etc.)

114

113

115

Notes:

(a)

Annualized.

(b)

Computed on a fully tax-equivalent basis.

(c)

Noninterest expense divided by (tax-equivalent) net interest income and noninterest income.

(d)

Includes securities held-to-maturity (at amortized cost) and securities available-for-sale (at fair value).

(e)

Net of unearned income.

(f)

Net of allowance for credit losses.

(g)

Represents capital ratios of Wilmington Financial Corporation and subsidiaries. Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.

(h)

Accruing loans which are contractually past due 90 days or more as to principal or interest. Balance includes student loans, which are U.S. government guaranteed with little risk of credit loss.

(i)

Excludes loans held for sale and reverse mortgage loans.

(j)

Nonperforming loans are included in average balance computations.

(k)

The difference between projected amounts of interest-sensitive assets and interest-sensitive liabilities repricing within one year divided by total assets, based on a current interest rate scenario.

(l)

Includes loans held for sale and reverse mortgages.

(m)

Includes seasonal Associates, when applicable.

(n)

Includes loans held for sale.

(o)

The Company uses non-GAAP (United States Generally Accepted Accounting Principles) financial information in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Company’s management believes that investors may use these non-GAAP financial measures to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. For a reconciliation of these and other non-GAAP financial measures to their most directly comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

(p)

Reflects allowance for credit losses on loans and leases over the amortized cost of the total portfolio.

(q)

Includes provision for credit losses, loan workout expenses, OREO expenses and other credit costs.

(r)

Includes commercial mortgage and commercial construction loans.

(s)

Includes nonaccruing troubled loans.

(t)

Represents 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.

WSFS FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (Continued)

(Dollars in thousands, except per share data)

(Unaudited)

  Non-GAAP Reconciliation (o):

Three months ended

March 31, 2026

December 31, 2025

March 31, 2025

Net interest income (GAAP)

$

185,136

$

187,353

$

175,216

Core net interest income (non-GAAP)

185,136

187,353

175,216

Noninterest income (GAAP)

90,115

84,521

80,897

Plus: Unrealized loss on equity investments, net

—

(4,057

)

—

Plus: Visa derivative valuation adjustment

—

(1,500

)

—

Core fee revenue (non-GAAP)

$

90,115

$

90,078

$

80,897

Core net revenue (non-GAAP)

$

275,251

$

277,431

$

256,113

Core net revenue (non-GAAP)(tax-equivalent)

$

275,780

$

277,957

$

256,568

Noninterest expense (GAAP)

$

162,765

$

161,973

$

151,795

Less: Loss on debt extinguishment

—

1,151

—

Less: Corporate development expense

57

55

59

Less/(plus): Restructuring expense

2,796

(126

)

260

Core noninterest expense (non-GAAP)

$

159,912

$

160,893

$

151,476

Core efficiency ratio (non-GAAP)

58.0

%

57.9

%

59.0

%

Core fee revenue ratio (non-GAAP) (b)

32.7

%

32.4

%

31.5

%

End of period

March 31, 2026

December 31, 2025

March 31, 2025

Total assets (GAAP)

$

22,106,915

$

21,314,076

$

20,548,950

Less: Goodwill and other intangible assets

966,388

969,903

983,882

Total tangible assets (non-GAAP)

$

21,140,527

$

20,344,173

$

19,565,068

Total stockholders’ equity of WSFS (GAAP)

$

2,724,493

$

2,738,545

$

2,671,614

Less: Goodwill and other intangible assets

966,388

969,903

983,882

Total tangible common equity (non-GAAP)

$

1,758,105

$

1,768,642

$

1,687,732

Tangible common book value (TBV) per share:

Book value per share (GAAP)

$

52.24

$

51.27

$

46.31

Tangible common book value per share (non-GAAP)

33.71

33.11

29.25

Tangible common equity to tangible assets:

Equity to asset ratio (GAAP)

12.32

%

12.85

%

13.00

%

Tangible common equity to tangible assets ratio (non-GAAP)

8.32

8.69

8.63

Non-GAAP Reconciliation - continued (o):

Three months ended

March 31, 2026

December 31, 2025

March 31, 2025

GAAP net income attributable to WSFS

$

86,827

$

72,678

$

65,896

Plus/(less): Pre-tax adjustments: Unrealized loss on equity investments, net, Visa derivative valuation adjustment, loss on debt extinguishment, corporate development and restructuring expense

2,853

6,637

319

(Less)/plus: Tax impact of pre-tax adjustments

(639

)

(1,637

)

(78

)

Adjusted net income (non-GAAP) attributable to WSFS

$

89,041

$

77,678

$

66,137

GAAP return on average assets (ROA)

1.61

%

1.33

%

1.29

%

Plus/(less): Pre-tax adjustments: Unrealized loss on equity investments, net, Visa derivative valuation adjustment, loss on debt extinguishment, corporate development and restructuring expense

0.05

0.12

0.01

(Less)/plus: Tax impact of pre-tax adjustments

(0.01

)

(0.03

)

(0.01

)

Core ROA (non-GAAP)

1.65

%

1.42

%

1.29

%

Less: Impact of loan recovery (after-tax)

0.22

—

—

Core ROA excluding loan recovery (non-GAAP)

1.43

%

1.42

%

1.29

%

Earnings per share (diluted) (GAAP)

$

1.64

$

1.34

$

1.12

Plus/(less): Pre-tax adjustments: Unrealized loss on equity investments, net, Visa derivative valuation adjustment, loss on debt extinguishment, corporate development and restructuring expense

0.05

0.12

0.01

(Less)/plus: Tax impact of pre-tax adjustments

(0.01

)

(0.03

)

—

Core earnings per share (non-GAAP)

$

1.68

$

1.43

$

1.13

Less: Impact of loan recovery (after-tax)

0.23

—

—

Core EPS excluding loan recovery (non-GAAP)

$

1.45

$

1.43

$

1.13

Calculation of return on average tangible common equity:

GAAP net income attributable to WSFS

$

86,827

$

72,678

$

65,896

Plus: Tax effected amortization of intangible assets

2,778

2,782

2,945

Net tangible income (non-GAAP)

$

89,605

$

75,460

$

68,841

Average stockholders’ equity of WSFS

$

2,769,574

$

2,742,480

$

2,637,354

Less: Average goodwill and intangible assets

968,555

972,332

986,738

Net average tangible common equity

$

1,801,019

$

1,770,148

$

1,650,616

Return on average tangible common equity (non-GAAP)

20.18

%

16.91

%

16.91

%

Calculation of PPNR:

Net income (GAAP)

$

86,845

$

72,694

$

65,867

Plus: Income tax provision

27,639

24,538

21,101

(Less)/plus: (Recovery of) provision for credit losses

(1,998

)

12,669

17,350

PPNR (non-GAAP)

$

112,486

$

109,901

$

104,318

WSFS Financial (WSFS - Free Report) reported $275.25 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 7.5%. EPS of $1.45 for the same period compares to $1.13 a year ago.

The reported revenue represents a surprise of +1.45% over the Zacks Consensus Estimate of $271.32 million. With the consensus EPS estimate being $1.48, the EPS surprise was -2.03%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how WSFS performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Efficiency Ratio: 59% versus 59.2% estimated by two analysts on average.Net Interest Margin: 3.8% versus the two-analyst average estimate of 3.8%.Common equity Tier 1 capital: 13.9% versus 14% estimated by two analysts on average.Net Interest Income: $185.14 million versus $183.14 million estimated by two analysts on average.Total Non-Interest Income: $90.12 million versus $88.18 million estimated by two analysts on average.Mortgage banking activities, net: $2.36 million versus $1.58 million estimated by two analysts on average.View all Key Company Metrics for WSFS here>>>

Shares of WSFS have returned +7% over the past month versus the Zacks S&P 500 composite's +9.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

92% report meeting or exceeding their expectations despite inflation and tariff concerns

WILMINGTON, Del.--(BUSINESS WIRE)--Small business owners and senior decision-makers in the Mid-Atlantic region are reporting strong resilience. Despite persistent inflation and tariff-related uncertainty, 92% say their businesses are currently meeting or exceeding their performance expectations. According to a new survey from WSFS Bank, the primary subsidiary of WSFS Financial Corporation (Nasdaq: WSFS), optimism is equally strong looking ahead, with 66% of respondents agreeing their businesses will grow over the next 12 months.

“Small business owners have proven to be skilled navigators of uncertainty, turning economic challenges into opportunities for refinement,” said Candice Caruso, Senior Vice President, Chief Business Banking Officer, WSFS Bank.

Share The survey, which polled 505 small business decision-makers, found larger organizations with 100 to 499 employees and newer organizations founded within the last five years to be the most confident, with 77% in each group expressing optimism for their next year of operations. More than half of all owners and decision-makers (52%) also expect revenue to increase over the coming year. These findings suggest that despite a volatile economic backdrop, small business owners are finding effective ways to sustain and build momentum.

“Small business owners have proven to be skilled navigators of uncertainty, turning economic challenges into opportunities for refinement,” said Candice Caruso, Senior Vice President, Chief Business Banking Officer, WSFS Bank. “At WSFS, we aim to meet businesses where they are. Whether they need assistance managing cash flow or seeking guidance to manage risk, we’re proud to provide the lending options and advisory support to help owners grow their businesses in any economic climate.”

Challenges Facing Small Businesses
Despite the overall positive outlook, economic uncertainty and inflation continue to weigh heavily on the small business community. Among leaders surveyed who reported negative impacts, 52% cited inflation as the primary driver of decreased performance, followed by the cost-of-living crisis (43%), tariff-related uncertainty (40%), and recession concerns (33%).

However, business owners are taking proactive steps to protect their cash flow. More than half (51%) have reduced non-essential spending, while 31% have shifted to lower-cost suppliers and 27% have renegotiated contracts with existing vendors. These strategic shifts and creative solutions for marketing and content creation reflect a broader pattern of pragmatic adaptability in the face of external pressures.

Banking Expectations and Partnership Satisfaction
The survey also explored what small business owners expect from their banking relationships. Overall satisfaction between small businesses and their banking partners remains high at 84%, though the data suggests that smaller, newer, and lower-revenue businesses may benefit from deeper banking relationships that provide additional expertise and resources to help them succeed.

"Our Associates are focused on helping business owners connect the dots from managing day-to-day financial needs to planning for long-term growth," Caruso said. "As a trusted advisor, we provide guidance that’s practical, personalized, and grounded in what each business is trying to achieve."

The Role of Artificial Intelligence (AI)
Technology plays an increasingly central role in how small businesses operate. Four in five (81%) respondents report using AI tools for at least one business function, with data analysis and information gathering (43%) and marketing and content creation (42%) emerging as the top use cases. Technology adoption is widespread for larger businesses with annual revenues above $250K integrating these tools at more advanced rates than their smaller counterparts, suggesting that resources and scale continue to shape how businesses embrace AI.

Survey Methodology
The survey was conducted by market research and insights agency Opinium. The sample includes a survey of 505 small business owners/decision-makers in the Mid-Atlantic region, with annual revenues of up to $5 million and a minimum of two employees. All respondents were over the age of 18. The online survey was conducted from March 18 – March 28th, 2026. It has a margin of error of +/- 4 percent.

Learn more about the survey at wsfsbank.com/smallbusinesssurvey.

About Opinium, Inc.
Opinium is an award-winning strategic market research and insights agency built on the belief that in a world of uncertainty and complexity, success depends on the ability to stay on pulse of what people think, feel and do. Creative and inquisitive, Opinium is passionate about empowering clients to make the decisions that matter. The company works with organizations to define and overcome strategic challenges – helping them to get to grips with the world in which their brands operate. Opinium uses the right approach and methodology to deliver robust insights, strategic counsel and targeted recommendations that generate change and positive outcomes.

About WSFS Financial Corporation
WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region. As of March 31, 2026, WSFS Financial Corporation had $22.1 billion in assets on its balance sheet and $97.6 billion in assets under management and administration. WSFS operates from 114 offices, 87 of which are banking offices, located in Pennsylvania (58), Delaware (38), New Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management, and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Trust Advisors, LLC, Bryn Mawr Trust®, The Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane Finance®, WSFS Wealth® Management, LLC, WSFS Institutional Services®, and WSFS Mortgage®. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

WILMINGTON, Del.--(BUSINESS WIRE)--WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, rang the Nasdaq Closing Bell on Tuesday, June 2, 2026, marking its 40th year listed as a publicly traded company on the exchange. The milestone, along with WSFS’ nearly 200-year history, highlights the growth, innovation, and service of the company.

“Reaching this milestone reflects both our financial strength and the deep relationships we’ve built with our Clients, Communities, and fellow Associates,” said WSFS Chairman, President, and Chief Executive Officer, Rodger Levenson.

To celebrate the occasion, Levenson rang the bell alongside a group of WSFS Associates, including those who have been with the organization for 40 years or more.

“A company is only as strong as the people who build it,” said Levenson. “Our Associates have helped us build the strong culture we rely on today and their dedication is the blueprint for our continued success.”

WSFS is the oldest and largest locally headquartered bank in the Greater Philadelphia and Delaware region.

Watch the ceremony at https://www.nasdaq.com/events/wsfs-financial-corporation-rings-closing-bell.

About WSFS Financial Corporation

WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region. As of March 31, 2026, WSFS Financial Corporation had $22.1 billion in assets on its balance sheet and $97.6 billion in assets under management and administration. WSFS operates from 114 offices, 87 of which are banking offices, located in Pennsylvania (58), Delaware (38), New Jersey (14), Florida (2), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management, and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Trust Advisors, LLC, Bryn Mawr Trust®, The Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane Finance®, WSFS Wealth® Management, LLC, WSFS Institutional Services®, and WSFS Mortgage®. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

Recursion Pharmaceuticals (RXRX - Free Report) closed the most recent trading day at $3.50, moving -6.17% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.89%.

Shares of the biotechnology company have appreciated by 17.67% over the course of the past month, outperforming the Medical sector's gain of 0.47%, and the S&P 500's gain of 9.71%.

Investors will be eagerly watching for the performance of Recursion Pharmaceuticals in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.27, marking a 46% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.73 million, showing a 40.65% escalation compared to the year-ago quarter.

RXRX's full-year Zacks Consensus Estimates are calling for earnings of -$0.93 per share and revenue of $90.52 million. These results would represent year-over-year changes of +35.42% and +21.21%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Recursion Pharmaceuticals. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Recursion Pharmaceuticals holds a Zacks Rank of #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RXRX in the coming trading sessions, be sure to utilize Zacks.com.