Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — IPO Roadshow (June 2016)
34 slides from Wsfs Financial's IPO roadshow presentation, Jun 8, 2016
Slide 1: WSFS Financial Corporation Senior Notes Offering
Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-211911 Dated June 8, 2016 WSFS Financial Corporation Senior Notes Offering June 2016
Slide 2: Registration statement and prospectus notice
The issuer has filed a registration statement (and a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information abo
Slide 3: Table of Contents
Table of Contents Terms of the Proposed Offering Page 6 1Q 2016 Highlights Page 7 The WSFS Franchise Page 10 Additional Information Page 21 Asset Quality Metrics Page 22 Capital Page 24 Interest Coverage Page 25 Interest Rate Sensitivity Page 26 Business Model and Total Shareholder Returns Page 27 A
Slide 4: Forward-Looking Statements
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 limitation, references to the Company’s predi
Slide 5: Non-GAAP Information
Non-GAAPInformation This presentation contains financial information and performance measures determined by methods other than in accordance accounting with principles generally accepted in the United States (“GAAP”). The Company’s management uses these non-GAAP measures to measure the Company’s per
Slide 6: Terms of Proposed Offering
Terms of Proposed Offering • Issuer: WSFS Financial Corporation • Security Type: Fixed-to-Floating Rate Senior Notes due 2026 • Aggregate Principal Amount: $75 million • Rating: A-by Kroll Bond Rating Agency • Maturity: 10 years • Call Provision: Callable after five years at 100% • Use of Proceeds:
Slide 7: 1Q 2016 Highlights
1Q 2016 Highlights Financial Corporation
Slide 8: 1Q 2016 Highlights
1Q 2016 Highlights Reported Strong Results Reported Core • EPS: $0.52 $0.53 • ROAA: 1.13% 1.14% • ROATCE: 13.13% 13.33% Strong Revenue Growth • Core net revenue increased $9.5 million, or 16% over 1Q 2015 • Core net interest income improved $7.3 million, or 19% over 1Q 2015; Net interest margin (NIM
Slide 9: 1Q 2016 Highlights
1Q 2016 Highlights Loan and Core Deposit Growth Continues • Net loans increased $23.1 million from 4Q 2015. Growth was driven by (annualized) an 8% increase in C&I and CRE loans, partially offset by a decline in residential mortgages and expected paydown/payoff activity in the construction portfolio
Slide 10: The WSFS Franchise
The WSES Franchise Financial Corporation
Slide 11: The WSFS Franchise
The WSFS Franchise • Largest independent bank and trust co. HQ in the Del. Valley • $5.7 billion in assets • $13.1 billion in fiduciary assets, includes $1.2 billion in assets under management • 63 offices • Founded in 1832, WSFS is one of the oldest banks in the U.S. • Major business lines • Retail
Slide 12: The WSFS Franchise: PA Expansion
The WSFS Franchise PA– Expansion Over the past 5 years, WSFS has successfully expanded its franchise into Pennsylvania through: • De novo branches; hiring local lenders • Acquisition of Alliance Bank • Recently announced Penn Liberty acquisition Strong position as one of the few remaining super-comm
Slide 13: WSFS Bank Asset Composition – March 31, 2016
The WSFS Franchise WSFS - Bank AssetComposition – March31,2016 Assets $5.7 Billion; Net Loans $3.8 Billion Non- Earning Assets 6% 53% C&I BOLI 2% • Commercial loans comprise 84% of the loan portfolio Investments 17% Net Loans Construction • C&I (including owner- 66% occupied real estate), 6% CRE the
Slide 14: WSFS Bank Funding Composition – March 31, 2016
The WSFS Franchise WSFS - Bank FundingComposition – March31,2016 Customer Funding $3.9 - Billion Sweeps Equity 10% 0.4% Time Non- • Core customer funding 14% interest comprises 85% of total Customer DDA 25% Funding customer funding Borrowings 68% Money • Non-interest and very Market Interest 17% & D
Slide 15: The WSFS Franchise: WSFS Bank
The WSFS Franchise WSFS - Bank (1) WSFS 2015 growth excluding the acquisition of The First National Bank of Wyoming was $119 million or 3.86% (2) Excludes estimated out-of-market deposits of TD Bank *Most recently available FDIC data 15 (3) Top 10 Delaware Banks house 96% of all traditional deposits
Slide 16: Core Customer Deposit Funding Strength
Core Customer Deposit Funding Strength 3.5% 3.19% Cost of Deposits 3.0% 2.5% 2.12% 2.0% 1.5% 1.29% 1.0% 0.88% 0.66% 0.42% 0.5% 0.23% 0.22% 0.20% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q 2016 Cost of Deposits Wtd. Avg. Cost Noninterest Bearing DDA: 0.00% Interest Bearing Demand: 0.13% Sav
Slide 17: Diversified & Robust Fee Income
The WSFS Franchise Diversified – & Robust Fee Income $100 Trust & Wealth Management Cash Connect CAGR: 12% $90 Bank Segment 32% $80 34% 33% $23 $70 30% $16 $18 27% $60 $14 23% $13 $50 $24 $28 $5 $26 $19 $40 $13 $16 $30 $20 $37 $36 $31 $30 $33 $33 $10 $0 2010 2011 2012 2013 2014 2015 %’s represent fe
Slide 18: The WSFS Franchise: WSFS Wealth
The WSFS Franchise WSFS – Wealth Net Revenue (1) of $34.9 million in 2015; Pre-tax profit of $12.2 million • Offers insurance and brokerage products • Registered investment advisor offering a • Focus on retail banking clients “balanced’ investment style focused on preservation of capital and current
Slide 19: The WSFS Franchise: Cash Connect
The WSFS Franchise Cash – Connect® • Leading provider of ATM vault cash, armored carrier management, cash forecasting services, insurance and equipment services • More than $700 million in vault cash • More than 17,000 non-bank ATMs nationwide • Adding ATM settlement services to existing managed ser
Slide 20: Strong Performance Through the Economic Cycle
Strong Performance Through the Economic Cycle Total Assets ($ bn) Net Income ($ mm) $6.0 $60.0 $5.0 $50.0 $4.0 $40.0 $3.0 $30.0 $2.0 $20.0 $1.0 $10.0 $0.0 $0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 Tangible Common Equity / Tangible Assets (%) • WSF
Slide 21: Additional Information
Additional Information Financial Corporation
Slide 22: Asset Quality Metrics
Asset Quality Metrics ALLL / Gross Loans (%) NPLs / Loans (%) 3.0 4.0 3.5 2.5 3.0 2.0 2.5 1.5 2.0 1.5 1.0 1.0 0.5 0.5 0.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 Texas Ratio NCOs / Avg. Loans (%) 35.0 3.0 30.0 2.5 25.0 2.0 20.0 1.5 15.0 1.0 10.0 5.0 0.5 0.
Slide 23: Asset Quality Metrics
Asset Quality Metrics Delinquencies (1) / Gross Loans 2.70% Average 2.20% delinquency over the past 13 1.70% quarters was 0.92% 1.20% 0.70% 0.20% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Delinquencies Large Relationship (2) Criticized & Classified Loans / Tier-1 + ALLL 50% 45
Slide 24: Adequate Capital to Grow and to Return to Shareholders
Adequate Capital to Grow and to Return to Shareholders Total Risk Based Capital (TRBC) 000’s $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 12/12 12/13 12/14 12/15 3/16 Total Risk-BasedCapital Well Capitalized Requirement 12/12 12/13 12/14 12/15 3/16 TRBC 14.29% 14.
Slide 25: Interest Coverage
Interest Coverage Historical Interest Coverage Interest Expense Incurred On: 2011 2012 2013 2014 2015 Interest Expense: CDs 14,364 10,665 5,311 4,827 3,743 Interest Expense: Other Deposits 4,767 2,436 1,869 2,324 3,423 Interest Expense: Total Deposits 19,131 13,101 7,180 7,151 7,165 Interest Expense
Slide 26: Well Positioned for Rising Rates
Well Positioned for Rising Rates NII NII 1 BPS Change % Impact $ Impact +100 0.5% +$0.9mm +200 3.1% +$5.5mm +300 5.4% +$9.7mm +400 7.8% +$13.9mm Balance Sheet Drivers • +100 Model results reflects impact of loan floors and WSFS prime • High % of variable/adjustable rate total loan portfolio: 68% • H
Slide 27: Business Model and Total Shareholder Returns
Business Model and Total Shareholder Returns • Consistently ranked in the top quartile of all Focused Business Model 1 businesses surveyed • Voted “Top Bank” in Delaware • WSFS has been recog- five yearsrunning (The News nized by The Wilmington Journal) News Journal as a “Top Workplace Award” winner
Slide 28: Appendices
Appendices Financial Corporation
Slide 29: Appendix – Table of Contents
Appendix –Table of Contents Section – Appendix 1 –Management Team – Appendix 2 –Business Model – Appendix 3 –Non-GAAP Financial Information 29
Slide 30: Appendix 1 – Management Team
Appendix 1 –Management Team • Mark A. Turner, 52, has served as President and Chief Executive Officer since 2007. Mr. Turner was previously Chief Operating Officer and the Chief Financial Officer for WSFS. Prior to joining WSFS, his experience includes working at CoreStates Bank and Meridian Bancorp
Slide 31: Appendix 1 – Management Team
Appendix 1 –Management Team • Thomas W. Kearney, 68, Executive Vice President and Chief Risk Officer has been with WSFS since 1998. Mr. Kearney holds a Bachelor’s degree in Business Administration (Finance and Accounting) from Drexel University. He also holds the professional designations of Certifi
Slide 32: Appendix 2 – Business Model
Appendix 2 –Business Model 32
Slide 33: Appendix 3 – Non-GAAP Financial Information
Appendix 3 –Non-GAAP Financial Information Tangible common equity to assets and Tangible common book value per share As of March 31, December 31, December 31, December 31, December 31, 2016 2015 2014 2013 2012 Total assets $ 5,684,994 $ 5,584,637 $ 4,853,320 $ 4,515,763 $ 4,375,148 Less: Goodwill an
Slide 34: Appendix 3 – Non-GAAP Financial Information
Appendix 3 –Non-GAAP Financial Information Core: GAAP Reconciliation 3 Months Ended 3 Months Ended March 31, 2016 March 31, 2015 Net Interest Income (GAAP) $45,356 $38,817 Adj: Special FHLB Dividend ($808) Core Net Interest Income $45,356 $38,009 Noninterest Inc (as reported) $23,070 $21,095 Adj: Se