Wsfs Financial Corporation · NASDAQ:WSFS

Wsfs Financial — Q3 2016 Earnings Presentation

40 slides from Wsfs Financial's earnings presentation, Nov 2, 2016

  1. Slide 1: 3Q 2016 Investor Update

    Exhibit 99.1 WSFS Financial Corporation 3Q 2016 Investor Update November 2, 2016

  2. Slide 2: 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 302-571-7264 stockholderrelations@wsfsbank.com www.wsfsbank.com Mark A. Turner Dominic Canuso Rodger Levenson Pr

  3. Slide 3: 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

  4. Slide 4: 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

  5. Slide 5: 3Q 2016 Highlights

    3Q 2016 Highlights Financial Corporation

  6. Slide 6: 3Q 2016 Highlights

    3Q 2016 Highlights Results: Reported Core(1) • EPS: $0.41 $0.51 • ROA: 0.82% 1.03% • ROTCE: 9.69% 12.16% Completed Acquisitions Consistent with Strategic Plan • Penn Liberty acquisition successfully closed and converted over the weekend of August 12, 2016. WSFS currently has 28 offices in southeaste

  7. Slide 7: 3Q 2016 Highlights

    3Q 2016 Highlights Continued Positive Operating Leverage • 20% core(1) net revenue growth vs. 18% core (1) noninterest expense growth from 3Q 2015; = 2% points in positive operating leverage in 3Q 2016 vs 3Q 2015 • Core(1) efficiency ratio improved to 59.0% in 3Q 2016 from 60.0% in 3Q 2015 Loan and

  8. Slide 8: 3Q 2016 Highlights

    3Q 2016 Highlights Credit Costs Include the Impact of the Divestiture and Related Charge-Off of One Problem Loan • Exited a $15.4 million substandard local C&I loan relationship, resulting in a $4.2 million charge-off and $3.0 million in incremental loan loss provision. This was a longstanding credi

  9. Slide 9: 2016-2018 Strategic Plan Goals

    2016-2018 Strategic Plan Goals 9

  10. Slide 10: 2016 Outlook & Actual YTD Results

    2016 Outlook & Actual YTD Results ROA(1) Core & Sustainable 1.20% 1.10% 1.00% 0.90% 1.14% 1.17% 1.13% 0.80% 0.95% 0.91% 0.70% 0.77% 0.60% FY12 FY13 FY14 FY15 YTD FY16 Core & Core & Core & Core & 9/30/16 Outlook Sustainable Sustainable Sustainable Sustainable Core & Sustainable GAAP ROA 0.73% 1.07% 1

  11. Slide 11: 4Q 2016 Outlook

    4Q 2016 Outlook • Linked quarter low to mid single digit organic loan and deposit growth • Net interest margin of 3.80%3.85% - • $100 million in senior notes issued in 2Q 2016, partially offset by the benefits of our recent acquisitions • Total fee income growth versus 4Q 2015: • Approximately 22%:

  12. Slide 12: Core & Sustainable ROA Trend Line

    1 Core & SustainableROA Trend Line 1.30 4Q16 Plan 1.25 1.25% ROA 1.20 1.17% 1.15 1.10 1.05 1.00 0.95 0.90 0.85 0.80 0.75 0.70 0.65 4Q tends to be the strongest on revenue and expenses; 1Q tends to be the weakest 3Q 2015 ROA of 1.16% grew to 1.24% in 4Q 2015 (1) Core and Sustainable ROA is a non-GAAP

  13. Slide 13: 2016-2018 Strategic Plan Themes

    2016 –2018 Strategic Plan Themes • Strong organic growth driven by favorable market demographics and competitive disruption • Selected acquisitions with a focus on increasing fee-based revenue • Fee (non-interest) income to total revenue of 40% by 4Q 2018 • Positive operating leverage • Single digit

  14. Slide 14: The WSFS Franchise

    The WSES Franchise Financial Corporation

  15. Slide 15: The WSFS Franchise

    The WSFS Franchise • Largest independent bank and trust co. HQ in the Del. Valley • $6.6 billion in assets • $15.0billion(2) in fiduciary assets, including $1.9 billion(2) in assets under management • 76 offices • Founded in 1832, WSFS is one of the ten oldest banks in the U.S. • Major business line

  16. Slide 16: Deposits of Traditional Banks in Delaware

    The WSFS Franchise WSFS - Bank Deposits of Traditional Banks in the State of Delaware June 30, 2016 Total Total Rank Institution Branch Deposits in Market ‘15-’16 ‘15-’16 CAGR (Adjusted for M&A) Count Market Share Growth Growth ‘08-’16 1 M&T Bank 39 5,767,847 28.85% 266,786 4.85% 2.44% 2 PNC Bank 39

  17. Slide 17: 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 Array / Arrow • Acquisition of Alliance Bank • Acquisition of Penn Liberty Bank • Acquisition of West Capital Mana

  18. Slide 18: Deposits of Banks in Chester, Delaware and Montgomery Counties

    The WSFS Franchise PA– Expansion Deposits ofTraditional BanksinChester, DelawareandMontgomery Counties inPennsylvania June 30, 2016* Total Total Institution Branch Deposits in Market ‘15-’16 ‘15-’16 CAGR Rank (Adjusted for M&A) Count Market Share Growth Growth ‘08-’16 1 Wells Fargo Bank 81 $9,998,02

  19. Slide 19: Diversified & Robust Fee Income

    The WSFS Franchise Diversified – & Robust Fee Income WSFS Strategic Plan goal of fee (non-interest) income to total revenue of 40% by 4Q 2018 $100 Trust & Wealth Management CAGR: 12% 35.0% in Cash Connect $90 34.0% 3Q 2016 Bank Segment 34.5% $80 35.4% 33.8% $23 $70 33.5% $18 34.9% 31.6% $16 $18 $60

  20. Slide 20: WSFS Wealth

    The WSFS Franchise WSFS – Wealth NetRevenueof $9.3millionin3Q2016;Pre-taxprofitof$3.2million • Offers insurance and brokerage products • Registered investment advisor offering a • Focus on retail banking clients “balanced’ investment style focused on • $514,000 revenue in 3Q 2016 preservation of cap

  21. Slide 21: WSFS Wealth Recent Strategic Acquisitions

    The WSFS Franchise WSFS – Wealth Recent Strategic Acquisitions • Closed August 1, 2016 • Boutique multi-family office providing estate and business succession planning, bill paying, tax planning and preparation, investment tracking and philanthropy management • Ultra-High net worth clientele th • Cl

  22. Slide 22: 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 $890 million in vault cash • Over 20,000 non-bank ATMs nationwide • Adding ATM settlement services to existing managed service

  23. Slide 23: Selected Financial Information

    Selected Financial Information

  24. Slide 24: Asset Composition September 30, 2016

    The WSFS Franchise WSFS - Bank AssetComposition September – 30, 2016 Assets $6.6 Billion; Net Loans $4.4 Billion Non- Earning Assets 7% 52% C&I BOLI 2% • Commercial loans comprise 83% of the loan portfolio Investments Net Loans • C&I (including owner- 15% 66% Construction occupied real estate), 5% C

  25. Slide 25: Funding Composition September 30, 2016

    The WSFS Franchise WSFS - Bank FundingComposition – September30,2016 Total Funding$6.6 – Billion; Customer Deposits- $4.6 Billion Equity 11% Time Non- • Core customer funding 13% Customer interest comprises 87% of total DDA 27% Deposits customer funding 69% Money Market • Non-interest and very Borro

  26. Slide 26: Well Positioned for Rising Rates

    Well Positioned for Rising Rates NII NII BPS Change 1 % Impact $ Impact +100 0.2% +$0.4mm +200 2.4% +$4.8mm +300 4.3% +$8.6mm +400 6.3% +$12.7mm Balance Sheet Drivers • +100 Model results primarily reflects impact of WSFS prime • High % of variable/adjustable rate total loan portfolio: 66% • High %

  27. Slide 27: Overall Credit Trends Remain Strong

    Overall Credit Trends Remain Strong Delinquencies (1) / Gross Loans Criticized & Classified Loans / Tier-1 + ALLL 2.00% 50% Average 1.80% delinquency over 45% 1.60% the past 15 40% 1.40% quarters was 0.90% 35% 1.20% 28.98% 30% 1.00% 0.78% 25% 0.80% 17.92% 0.60% 20% 0.40% 15% 0.20% 10% 1Q132Q133Q134Q

  28. Slide 28: Robust Capital to Grow and to Return to Shareholders

    Robust 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 9/16 Total Risk-Based Capital Well Capitalized Requirement 12/12 12/13 12/14 12/15 9/16 TRBC 14.29% 14.3

  29. Slide 29: Strong Alignment / Capital Management

    Strong Alignment / Capital Management • Executive management bonuses and equity awards based on bottom-line performance • ROA, ROTCE and EPS growth 1 • Insider ownership is over 5% • Board of Directors and Executive Management ownership guidelines in place and followed • In 3Q 2016, WSFS repurchased

  30. Slide 30: Business Model and Total Shareholder Returns

    Business Model and Total Shareholder Returns • Consistently ranked in the top quartile of all businesses surveyed1 • Received the 2016 Gallup Great Focused Business Model Workplace Award • WSFS has been recognized by The • Voted “Top Bank” in Delaware Wilmington News Journal as a six yearsrunning (T

  31. Slide 31: Appendices

    Appendices Financial Corporation

  32. Slide 32: Appendix Table of Contents

    Appendix –Table of Contents Section Page # – Appendix 1 –Management Team 33-34 – Appendix 2 –Business Model 35 – Appendix 3 –Non-GAAP Financial Information 35-39 32

  33. Slide 33: Appendix 1 Management Team

    Appendix 1 –Management Team • Mark A. Turner, 53, 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

  34. Slide 34: 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

  35. Slide 35: Appendix 2 Business Model

    Appendix 2 –Business Model 35

  36. Slide 36: Appendix 3 Non-GAAP Financial Information

    Appendix 3 –Non-GAAP Financial Information Tangible common equity to assets and Tangible common book value per share 3 Months Ended 3 Months Ended 3 Months Ended September 30, 2016 June 30, 2016 September 30, 2015 Total Assets $6,627,593 $5,834,107 $5,067,942 Less: Goodwill and other intangible asse

  37. Slide 37: Appendix 3 Non-GAAP Financial Information

    Appendix 3 –Non-GAAP Financial Information Core: GAAP Reconciliation 3 Months Ended 3 Months Ended September 30, 2016 September 30, 2015 Net Interest Income (GAAP) $49,021 $40,997 Adj: Core Net Interest Income $49,021 $40,997 Noninterest Inc (as reported) $26,849 $21,665 Adj: Securities Gains ($1,04

  38. Slide 38: Appendix 3 Non-GAAP Financial Information

    Appendix 3 -Non-GAAP Financial Information Core: GAAP Reconciliation YTD 2016 FY15 FY14 FY13 FY12 FY11 Pre-Tax YTD 2016 Pre-Tax FY15 Pre-Tax FY14 Pre-Tax FY13 Pre-Tax FY12 Pre-Tax FY11 Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Reported (GAAP) Net Income $45,970 $53,533

  39. Slide 39: Appendix 3 Non-GAAP Financial Information

    Appendix 3 –Non-GAAP Financial Information Core & Sustainable ROA: GAAP Reconciliation YTD FY15 FY14 FY13 FY12 9/30/16 Reported (GAAP) ROA 1.05% 1.05% 1.17% 1.07% 0.73% Non-recurring PCI accretion (0.02) - - - Long-term credit normalization 0.02 - (0.09) (0.05) 0.33 Securities Gains (0.03) (0.02) (0

  40. Slide 40: For more information please contact

    For more information please contact: Investor Relations: Dominic Canuso (302) 571-6833 or dcanuso@wsfsbank.com www.wsfsbank.com Corporate Headquarters 500 Delaware Avenue Wilmington, DE 19801 40

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