Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q1 2023 Earnings Presentation
19 slides from Wsfs Financial's earnings presentation, Apr 24, 2023
Slide 1: WSFS Financial Corporation 1Q 2023 Earnings Release Supplement
1 WSFS Financial Corporation 1Q 2023 Earnings Release Supplement April 2023 Exhibit 99.2
Slide 2: Forward Looking Statements & Non-GAAP
2 Forward Looking Statements & Non-GAAP Forward Looking Statements: This presentation 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 limi
Slide 3: 1Q 2023 Financial Highlights
3 1Q 2023 Financial Highlights 1Q 2023 Highlights: • Customer deposit growth was flat prior to March 8th, and declined $201 million or 1% (5% annualized) in the full-quarter • Net loan growth of $214 million or 2% (7% annualized) • Loan-to-deposit ratio of 76% • NIM of 4.25% reflects increasing depo
Slide 4: Deposit Balance Trends
4 Deposit Balance Trends Deposits well diversified by product and Customer mix ($ in millions) Dec 2022 Mar 2022 1Q 2023 $ Growth 1Q 2023 % Growth Non-interest Demand $5,299 $5,739 $6,639 ($440) (8%) Interest Demand Deposits 3,159 3,347 3,292 (188) (6%) Savings 1,967 2,162 2,279 (195) (9%) Money Mar
Slide 5: Loan Portfolio Trends
5 Loan Portfolio Trends • Commercial loan growth of $155 million, or 2% (7% annualized) driven by Commercial Mortgages and C&I • Commercial line utilization of 37.0% • Consumer loan growth moderated to $57 million primarily from Spring EQ partnership product (home equity loans) • Upstart portfolio f
Slide 6: Commercial Loan Composition
6 Flex, Warehouse, Self- Storage, General Industrial, 10% Special Use & Other, 3% Medical Office, 2% Residential 1-4, 15% Residential Multi-Family, 28% Office, 15% Retail, 27% 3 Commercial Loan Composition1 Hotels, 15% Other Services (except Public Admin), 10% Healthcare & Social Assistance, 9% Cons
Slide 7: Net Interest Margin Trends
7 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 0.07% 0.08% 0.15% 0.35% 0.80% 4.13% 4.40% 5.12% 5.98% 6.42% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 0.0% 0.4% 0.8% 1.2% 1.6% 2.0% 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 Lo an Y ie ld (% ) Cu st om er D ep os it Co st (% )
Slide 8: Liquidity Highlights
8 Liquidity Highlights Diversified deposits with nearly 75% Insured/Protected balances; Bolstered by significant Wholesale Funding Capacity 1 At the consolidated Corp. level 2 Total protected deposits accounts for FDIC insured and collateralized/other protected deposits • 73% of Customer deposits ar
Slide 9: Core Fee Revenue
9 Banking 21% Cash Connect 29% Wealth Management 48% Mortgage 2% • Well-diversified with over 25 discrete lines of business and products within our three main segments: Banking, Wealth Management, and Cash Connect® • Core fee revenue ratio of 25.8% provides earnings stability through interest rate a
Slide 10: Asset Quality
10 Asset Quality 1 Prior to 1Q23, NPA included accruing TDRs 2 Concentration limits are based on relationship exposure, and Tier-1 + ACL; As of March 31, 2023 3 Based on relationship’s outstanding balances 4 Defined as the sum of CRE Investor and Construction (excluding Owner-Occupied) $618 $568 $47
Slide 11: ACL Overview
11 0% 1% 2% 3% 4% 5% 6% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 4Q22 Forecast 1Q23 Forecast ACL Ratio 1 Source: Oxford Economics as of March 2023 2 Hotel loan balances are included in the C&I and Construction segments ACL Overview ACL by Segment Full-Year GDP forecast of 0.9% in 2023 and 0.6% in 202
Slide 12: Capital Performance
12 Capital Performance All capital ratios remain well-capitalized when including Effective AOCI1 impact; Long-term disciplined policies on Investment Portfolio concentrations, IRR, and Capital support strength 1 Effective AOCI ($673.8) includes AFS, HTM, and HTM unrecognized MTM; reported AOCI of ($
Slide 13: 2023 Core Outlook
13 3 2023 Core Outlook Loan Growth Deposit Growth Net Interest Margin Fee Revenue Growth Provision Costs Efficiency Ratio ROA2 PPNR 1 The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable GAAP estimates without unreasonable effo
Slide 14: Appendix: Non-GAAP Financial Information
14 Non-GAAP Financial Information Appendix:
Slide 15: Non-GAAP Information
15 Non-GAAP Information This presentation contains financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). This presentation may include the following non-GAAP measures: • Adjusted Net Income (non-GAAP) attributable
Slide 16: Appendix: Non-GAAP Financial Information
16 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) March 31, 2023 December 31, 2022 March 31, 2022 Net interest income (GAAP) $ 182,532 $ 193,886 $ 138,558 Core net interest income (non-GAAP) $ 182,532 $ 193,886 $ 138,558 Noninterest income (GAAP) $ 63,127 $ 64,880
Slide 17: Appendix: Non-GAAP Financial Information
17 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands, except per share data) March 31, 2023 December 31, 2022 March 31, 2022 GAAP net income attributable to WSFS $ 62,404 $ 84,449 $ 3,804 Plus/(less): Pre-tax adjustments1 536 1,351 51,555 (Plus)/less: Tax impact of pr
Slide 18: Appendix: Non-GAAP Financial Information
18 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) March 31, 2023 December 31, 2022 March 31, 2022 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 62,404 $ 84,449 $ 3,804 Plus: Tax effected amortization of intangible
Slide 19: Appendix: Non-GAAP Financial Information
19 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) March 31, 2023 Calculation of Effective AOCI Unrealized lossses on AFS securities $ 510,522 Unrealized holding losses on securities transferred from AFS to HTM 104,338 Unrecognized fair value losses on HTM securiti