Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q2 2024 Earnings Presentation
20 slides from Wsfs Financial's earnings presentation, Jul 25, 2024
Slide 1: WSFS Financial Corporation 2Q 2024 Earnings Release Supplement
1 WSFS Financial Corporation 2Q 2024 Earnings Release Supplement July 2024 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: Financial Highlights
3 Financial Highlights 2Q 2024 Highlights: • Core Fee Revenue1 of $86mm; grew 13% quarter-over-quarter • Cash Connect®, Wealth and Trust, Capital Markets, and Mortgage all with double-digit linked quarter increases • Gross Loans increased $189mm or 6% (annualized) • Driven by growth in C&I and Consu
Slide 4: Core Fee Revenue
4 $15 $19 $19 $17 $17 $20 $21 $23 $26 $31 $32 $33 $36 $33 $38 $67 $73 $78 $76 $86 $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Co re F ee R ev en ue ( $m m )2 Banking Cash Connect Wealth Management3 Core Fee Revenue1 33% Core Fee Revenue ratio with continued su
Slide 5: Net Interest Margin Trends
5 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 1.16% 1.38% 1.62% 1.79% 1.89% 1.40% 1.59% 1.83% 1.99% 2.09% 6.69% 6.81% 6.92% 6.95% 7.03% 2.0% 4.0% 6.0% 8.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Lo an Y ie ld (% ) Cu st om er D ep os it
Slide 6: Deposit Highlights
6 Deposit Highlights • $104mm (3% annualized) increase in ending Customer Deposits • Driven by $130mm in noninterest deposits (primarily from short-term Trust) and $89mm in time deposits • 1.89% total average Customer Deposit cost; 35% total deposit beta • 30% average noninterest deposits • 51% of C
Slide 7: Loan Portfolio Highlights
7 Loan Portfolio Highlights • Commercial: Growth driven by C&I originations; migration of Construction to CRE • Line utilization to 39.3%, up from 38.3% last quarter • Consumer: Driven by $48mm increase in Spring EQ loans, partially offset by $28mm decline in Upstart loans • Residential mortgage ret
Slide 8: Commercial Loan Composition
8 3 Commercial Loan Composition1 1 As defined by the North American Industry Classification System (NAICS) 2 Based on the underlying real estate collateral 3 Concentration limits are based on relationship exposure, and Tier-1 + ACL; as of June 30, 2024 2 Highly diversified C&I, Owner-Occupied, CRE,
Slide 9: Stable Asset Quality Metrics
9 Stable Asset Quality Metrics Problem Assets Nonperforming Assets Delinquencies Net Charge-offs $465 $543 $556 $573 $629 3.76% 4.27% 4.34% 4.41% 4.76% 0.0% 1.2% 2.4% 3.6% 4.8% 6.0% $300 $400 $500 $600 $700 $800 2Q23 3Q23 4Q23 1Q24 2Q24 M ill io ns Problem Assets % of Gross Loans $73 $111 $102 $105
Slide 10: Volume of Maturing CRE Loans by Industry
10 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 2H24 2025 2026 2027 2028 Bi lli on s Volume of Maturing CRE Loans by Industry Office Multi-Family Industrial/Flex Retail Single Family Other CRE and Select Portfolios 1 Inclusive of Construction 2 Office CRE portfolio excludes $98.0mm ($102.2mm exposure) of Medical O
Slide 11: ACL Ratio
11 ACL Ratio $165 $175 $185 $195 $205 $215 3/31/2024 Economic Impact Net Loan Growth Migration / Other 6/30/2024 2Q 2024 ACL ($mm) $9 ($10) $198 $6 1 This is a non-GAAP financial measures and should be considered along with results prepared in accordance with GAAP, and not as a substitute for GAAP r
Slide 12: Investment Portfolio
12 Investment Portfolio High-quality investment portfolio providing consistent cash flows and borrowing capacity 1 Investment portfolio value includes market value AFS and book value of HTM 2 Weighted average duration and yield of the MBS portfolio 3 This is a non-GAAP financial measure and should b
Slide 13: Capital and TBV per Share
13 $25.20 $36.05 $15 $20 $25 $30 $35 $40 2Q19 4Q19 2Q20 4Q20 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 2Q24 Corp. TBV and AOCI’s Impact per Share TBV/share TBV/share ex-AOCI Capital All capital ratios remain above “well-capitalized” while deploying our disciplined buyback framework 9.12% 8.84% 10.46% 7.56% 3.95
Slide 14: 2024 Core Outlook - Update
14 Original FY Outlook1 Mid-single digit Low-single digit Range of 3.80% - 3.90% Double-digit 0.50% - 0.60% +/- 60% +/- 1.20% Updated FY Outlook1 Mid-single digit Flat Range of 3.80% - 3.90% Double-digit 0.50% - 0.60% +/- 60% +/- 1.25% 2024 Core Outlook - Update Loan Growth Deposit Growth Net Intere
Slide 15: Appendix: Non-GAAP Financial Information
15 Non-GAAP Financial Information Appendix:
Slide 16: Non-GAAP Information
16 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 17: Appendix: Non-GAAP Financial Information
17 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) June 30, 2024 March 31, 2024 June 30, 2023 Net interest income (GAAP) $ 174,449 $ 175,278 $ 181,842 Core net interest income (non-GAAP) $ 174,449 $ 175,278 $ 181,842 Noninterest income (GAAP) $ 91,598 $ 75,857 $ 66
Slide 18: Appendix: Non-GAAP Financial Information
18 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands, except per share data) June 30, 2024 March 31, 2024 June 30, 2023 GAAP net income attributable to WSFS $ 69,273 $ 65,761 $ 68,678 Plus/(less): Pre-tax adjustments1 (5,789) 2,076 3,322 (Plus)/less: Tax impact of pre
Slide 19: Appendix: Non-GAAP Financial Information
19 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) June 30, 2024 March 31, 2024 June 30, 2023 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 69,273 $ 65,761 $ 68,678 Plus: Tax effected amortization of intangible ass
Slide 20: Appendix: Non-GAAP Financial Information
20 Appendix: Non-GAAP Financial Information (dollars in thousands, except per share data) June 30, 2024 December 31, 2023 June 30, 2023 December 31, 2022 June 30, 2022 December 31, 2021 Calculation of tangible common book value per share and tangible common book value per share ex-AOCI: Total stockh