Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q1 2020 Earnings Presentation
22 slides from Wsfs Financial's earnings presentation, Apr 27, 2020
Slide 1: 1Q 2020 Earnings Release Supplement
WSFS Financial Corporation EXHIBIT 99.2 1Q 2020 Earnings Release Supplement April 27, 2020
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures 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 inc
Slide 3: Table of Contents
Table of Contents COVID-19 Preparedness and Response Page 4 Customer Support and Relief Programs Page 5 Channel Strategy and Digital Adoption Page 6 1Q 2020 Financial Highlights Page 7 1Q 2020 CECL Overview Page 8 Capital Position and Stress Scenarios Page 9 Financial Strength and Performance Page 1
Slide 4: COVID-19 Preparedness and Response
COVID-19 Preparedness and Response Management Response Associate and Community Initiatives Business and Consumer Support Implemented our well-tested • Retail office Associate schedules • Drive-thru service only at retail offices Business Continuity Plan, including: adjusted to balance work and famil
Slide 5: Customer Support and Relief Programs
Customer Support and Relief Programs • $1.6 billion of Customer loans receiving deferred payments (over 99% 90 days or Payment Deferral Loan Modifications as of April 17th less) resulting in ~$11 million of monthly cashflow support to our Customers as of # of % of th ($ in '000's) Loans $ Portfolio
Slide 6: Channel Strategy and Digital Adoption
Channel Strategy and Digital Adoption Channel Volumes 1 • Since COVID-19 pandemic, WSFS supported consistent volumes of total 150% 141% 140% deposit transactions with a significant shift from physical to mobile 127% 130% 121% 120% 114% 110% 102% 104% 105% 100% 99% 96% • Increased digital and remote
Slide 7: 1Q 2020 Financial Highlights
1Q 2020 Financial Highlights Strong fundamental operating performance as pre-provision net revenue (PPNR)1 continues strong trend since the Beneficial combination. Significant excess capital levels and liquidity capacity. 1Q 2020 • Core results include adoption of CECL; COVID-19 impact on macroecono
Slide 8: 1Q 2020 CECL Overview
1Q 2020 CECL Overview Consensus Economic Outlook expects 2Q’20 1Q’20 ACL Drivers GDP Growth of -15% and Unemployment of ~9% (in millions) ACL by Segment January 1, 2020 March 31, 2020 • ($ thousands) CECL Adoption CECL Day 1 CECL adoption was approximately $36 million, driven by: % of % of o Estimat
Slide 9: Capital Position and Stress Scenarios
Capital Position and Stress Scenarios Well Positioned in Current Environment and Compared to beginning of Great Recession1 Common Equity Tier-1 Capital 2-Year Stress Scenario • WSFS Bank’s Common Equity Tier-1 Capital Ratio was a strong 13.52% at 14.00% end of 2019 compared to 10.97% at the beginnin
Slide 10: Financial Strength and Performance
Financial Strength and Performance Significantly Stronger Financial Performance Compared to Beginning of Great Recession1 Core ROA2 Core PPNR2 1.60% $300,000 2.50% 1.61% 2.31% 1.20% 264,789 $200,000 2.00% 0.80% 0.85% $100,000 1.50% 0.40% 1.53% 48,780 0.00% $0 1.00% TTM 3Q'08 TTM 4Q'19 3Q 2008 TTM 4Q
Slide 11: NIM and Pre-Provision Net Revenue (PPNR) Trends
NIM and Pre-Provision Net Revenue (PPNR) Trends Net Interest Margin (NIM)1 CORE PPNR1,2 4.75% 4.37% 4.38% 3.85%–3.95%1 $140,000 3.00% 4.50% $120,000 2.16% 2.36% 0.13% 0.23% 2.41% 2.27% 2.50% 4.25% 0 1.65-1.70%1 0-0.10%% $100,000 4.00% 0.35% 2.00% 0.31% $72,986 $80,000 $71,151 $66,632 $71,481 3.75% 0
Slide 12: Appendix: Loan Portfolio
| Appendix: Loan Portfolio WSFS bork WSFS2z:. We Stand For Service®
Slide 13: Balance Sheet Composition at March 31, 2020
Balance Sheet Composition at March 31, 2020 Loan to Deposit Ratio - 90% Asset Composition Funding Composition Assets: $12.3 Billion; Net Loans: $8.5 Billion Total Funding: $12.3 Billion; Customer Deposits: $9.4 Billion Time CRE, 26% 13% Non-interest Net Loans 69% Consumer, DDA 25% Customer Deposits
Slide 14: Commercial Loan Portfolio at March 31, 2020
Commercial Loan Portfolio at March 31, 2020 C&I and Owner Occupied - $3.4 billion CRE Investor and Construction - $2.8 billion Real Estate Rental Special Use & Mixed Use, Flex, Warehouse, Well Diversified and Granular and Leasing, 10% Other, 4% 1% Self-Storage, Other, 20% General Industrial, • No si
Slide 15: Retail and Food Service Portfolios at March 31, 2020
Retail and Food Service Portfolios at March 31, 2020 Retail Food Service1 Loan Type # of Outstanding Average Loan Type # of Outstanding Average ($ in millions) Loans Balances Outstanding ($ in millions) Loans Balances Outstanding CRE/Construction 605 $744.2 $1.2 C&I 364 $108.9 $0.3 C&I 583 $127.1 $0
Slide 16: Hotel Portfolio at March 31, 2020
Hotel Portfolio at March 31, 2020 Hotels1 • Conservative credit underwriting with maximum loan-to-value of 75% and debt service coverage ratio of 1.30 times at original loan Loan Type # of Outstanding Average underwriting ($ in millions) Loans Balances Outstanding CRE 72 $386.0 $5.4 • 4 loans over $
Slide 17: 1Q 2020 Loan and Deposit Growth
1Q 2020 Loan and Deposit Growth Loans - 1Q'20 vs 4Q'19 and 1Q'19 Mar Dec Mar 1Q'20 $ Annualized YOY $ YOY % • We are ahead of schedule after the first year of ($ in millions) 2020 2019 2019 Growth % Growth Growth Growth executing our strategy to optimize our loan mix towards C & I Loans $3,412 $ 3,3
Slide 18: Appendix 2: 1Q 2020 Reported Results and Reconciliation of Non-GAAP
Appendix 2: 1Q 2020 Reported Financial Results and Reconciliation of Non-GAAP Financial Information
Slide 19: 1Q 2020 Reported Financial Results
1Q 2020 Reported Financial Results 1Q 2020 • GAAP results for 1Q 2020 were significantly impacted by the economic effects of the COVID-19 pandemic and our adoption of $ in millions (expect per share amounts) the Current Expected Credit Loss method of accounting (CECL), Net Revenue $157.0 primarily r
Slide 20: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information Reconcilation of Non-GAAP Financial Information: PPNR and Core PPNR $ in 000's 4Q'07 1Q'08 2Q'08 3Q'08 TTM 3Q'08 Net Income $ 7,496 $ 7,246 $ 6,700 $ 5,510 $ 26,952 Plus: Income Tax Provision 1,533 2,902 3,735 2,957 11,127 Plus: Provision for Credit L
Slide 21: WSFS Mission, Vision, Strategy and Values
WSFS Mission, Vision, Strategy and Values 21
Slide 22: Investor Relations Contact Information
Stockholders or others seeking information regarding the Company may call or write: WSFS Financial Corporation Investor Relations WSFS Bank Center 500 Delaware Avenue Wilmington, DE 19801 302-504-9857 stockholderrelations@wsfsbank.com www.wsfsbank.com Rodger Levenson Dominic C. Canuso Chairman, Pres