WSFS FINANCIAL CORPWSFS
WSFS FINANCIAL CORP Leases Disclosure
9. LEASES
As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business.
Lessee
The Company's ongoing leases have remaining lease terms of less than one year to 19 years, which includes renewal options that are exercised at its discretion. The Company's lease terms to calculate the lease liability and right-of-use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets, respectively, in the Consolidated Statement of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the Consolidated Statement of Income. The Company accounts for lease components separately from nonlease components and subleases certain real estate to third parties.
The components of the Company's ongoing operating lease cost were as follows:
| Twelve months ended | ||||||||||||||||||||
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
Operating lease cost (1) | $ | 16,184 | $ | 16,830 | $ | 18,972 | ||||||||||||||
| Sublease income | (104) | (117) | (161) | |||||||||||||||||
| Net lease cost | $ | 16,080 | $ | 16,713 | $ | 18,811 | ||||||||||||||
(1)Includes variable lease cost and short-term lease cost.
Supplemental balance sheet information related to operating leases was as follows:
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | ||||||||||||
| $ | 102,891 | $ | 131,126 | |||||||||||
| $ | 125,288 | $ | 152,364 | |||||||||||
| Lease term and discount rate of operating leases | ||||||||||||||
| Weighted average remaining lease term (in years) | 11.35 | 12.62 | ||||||||||||
| Weighted average discount rate | 5.26 | % | 5.28 | % | ||||||||||
Maturities of operating lease liabilities are as follows:
| (Dollars in thousands) | December 31, 2025 | |||||||
| 2026 | $ | 17,255 | ||||||
| 2027 | 15,241 | |||||||
| 2028 | 15,042 | |||||||
| 2029 | 14,554 | |||||||
| 2030 | 14,107 | |||||||
| After 2030 | 91,746 | |||||||
| Total lease payments | 167,945 | |||||||
| Less: Interest | (42,657) | |||||||
| Present value of lease liabilities | $ | 125,288 | ||||||
Supplemental cash flow information related to leases was as follows:
| Twelve months ended | ||||||||||||||||||||
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Operating cash flows from operating leases | $ | 19,255 | $ | 19,488 | $ | 19,104 | ||||||||||||||
As of December 31, 2025, the Company had entered into two leases that have not yet commenced, with combined estimated future lease payments of approximately $27.2 million. These leases are expected to commence in the first and third quarter of 2026, with an initial lease term of 13 years and 10 years, respectively.
Lessor Equipment Leasing
The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the Consolidated Statements of Income. The allowance for credit losses on finance leases are included within Provision for credit losses on the Consolidated Statements of Income.
The components of direct finance lease income are summarized in the table below:
| Twelve months ended | ||||||||||||||||||||
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Direct financing leases: | ||||||||||||||||||||
| Interest income on lease receivable | $ | 63,636 | $ | 62,881 | $ | 53,572 | ||||||||||||||
| Amortization of deferred fees and costs | (9,100) | (7,977) | (6,301) | |||||||||||||||||
| $ | 54,536 | $ | 54,904 | $ | 47,271 | |||||||||||||||
Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows:
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | ||||||||||||
| Lease receivables | $ | 695,125 | $ | 749,968 | ||||||||||
| Unearned income | (109,667) | (122,846) | ||||||||||||
| Deferred fees and costs | 17,863 | 20,394 | ||||||||||||
| Net investment in direct financing leases | $ | 603,321 | $ | 647,516 | ||||||||||
Future minimum lease payments to be received for direct financing leases were as follows:
| (Dollars in thousands) | December 31, 2025 | |||||||
| 2026 | $ | 243,143 | ||||||
| 2027 | 191,989 | |||||||
| 2028 | 135,782 | |||||||
| 2029 | 81,377 | |||||||
| 2030 | 35,068 | |||||||
| After 2030 | 7,766 | |||||||
| Total lease payments | $ | 695,125 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.