Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q2 2023 Earnings Presentation
18 slides from Wsfs Financial's earnings presentation, Jul 24, 2023
Slide 1: WSFS Financial Corporation 2Q 2023 Earnings Release Supplement
1 WSFS Financial Corporation 2Q 2023 Earnings Release Supplement July 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: 2Q 2023 Financial Highlights
3 2Q 2023 Financial Highlights 2Q 2023 Highlights: • Customer deposit growth of $380.1 million or 2% (10% annualized) • Noninterest deposits represents 34% of customer deposits • Net loan growth of $194.5 million or 2% (6% annualized) • Net loan-to-deposit ratio of 75%, flat quarter-over-quarter • N
Slide 4: Deposits Highlights
4 1 Insured/Protected deposits accounts for FDIC insured and collateralized/other protected deposits Deposits Highlights Significantly diversified and protected deposit base Consumer 45% Commercial 23% Small Business 17% Trust 8% Wealth 7% Customer Deposits By Business Line 75% Net Loan-to-Deposit 7
Slide 5: Loan Portfolio Trends
5 Loan Portfolio Trends • Commercial loan growth of $114 million, or 1% (5% annualized) driven by C&I loans and Commercial Real Estate Mortgages • Commercial line utilization of 36.6% • Consumer loan growth moderated to $37 million due to our Spring EQ partnership product (home equity loans) • Upsta
Slide 6: Commercial Loan Composition
6 3 Commercial Loan Composition1 1 As defined by the North American Industry Classification System (NAICS) 2 Office portfolio excludes Medical Office CRE Highly diversified C&I, Owner-Occupied, CRE, and Construction Portfolios 2 Flex, Warehouse, Self- Storage, General Industrial, 9% Special Use & Ot
Slide 7: Net Interest Margin Trends
7 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 0.08% 0.15% 0.35% 0.80% 1.16% 4.40% 5.12% 5.98% 6.42% 6.69% 0.0% 2.0% 4.0% 6.0% 8.0% 0.0% 0.4% 0.8% 1.2% 1.6% 2.0% 2.4% 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Lo an Y ie ld (% ) Cu st om er D ep os it Co st (% ) Total Dep
Slide 8: Core Fee Revenue
8 Banking 21% Cash Connect® 30% Wealth Management 49% • Well-diversified with over 25 discrete lines of business and products within our three segments: Banking, Wealth Management, and Cash Connect® • Core fee revenue ratio of 27.0% provides earnings stability through interest rate and credit cycles
Slide 9: Asset Quality
9 Asset Quality 1 Prior to 1Q23, NPA included accruing TDRs 2 Concentration limits are based on relationship exposure, and Tier-1 + ACL; as of June 30, 2023 3 Based on relationship’s outstanding balances 4 Defined as the sum of CRE and Construction (excluding Owner-Occupied) $568 $473 $462 $417 $465
Slide 10: Credit Risk Management – CRE Details
10 Credit Risk Management – CRE Details • $3.5 billion outstanding; $3.7 billion exposure • $1.1 million average loan exposure • 56% of the portfolio has fixed rates; ~75% of variable rate loans are swapped, resulting in effectively ~88% of portfolio having fixed rate • 58% portfolio average LTV at
Slide 11: ACL Ratio
11 ACL Ratio $140 $145 $150 $155 $160 $165 $170 $175 $180 3/31/2023 Economic Impact Net Loan Growth Other 6/30/2023 2Q 2023 ACL ($mm) $3 $169 ($2) $172 $2 1 Source: Oxford Economics as of July 2023 2 Percentages are over amortized cost of loans and HTM securities 3 Hotel loan balances are included i
Slide 12: Capital Performance
12 Capital Performance All capital ratios remain well-capitalized, even when including Effective AOCI1,2 impact; Long-term disciplined policies on Investment Portfolio concentrations, IRR, and Capital support strength 1 These are non-GAAP financial measures and should be considered along with result
Slide 13: 2023 Core Outlook - Update
13 Original FY Outlook1 Mid-single digit Relatively flat Range of 4.35% - 4.45%; Mid-to-high single digit 0.40% - 0.50% Mid 50s % +/- 2.30% +/- 1.50% Updated FY Outlook1 Mid-to-high single digit Flat-to-low single digit decrease Range of 3.95%-4.05% Mid-single digit 0.60% - 0.70% Mid-to-high 50s % +
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) June 30, 2023 March 31, 2023 June 30, 2022 Net interest income (GAAP) $ 181,842 $ 182,532 $ 153,615 Core net interest income (non-GAAP) $ 181,842 $ 182,532 $ 153,615 Noninterest income (GAAP) $ 66,871 $ 63,127 $ 72
Slide 17: Appendix: Non-GAAP Financial Information
17 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands, except per share data) June 30, 2023 March 31, 2023 June 30, 2022 GAAP net income attributable to WSFS $ 68,678 $ 62,404 $ 60,740 Plus/(less): Pre-tax adjustments1 3,322 536 4,336 (Plus)/less: Tax impact of pre-tax
Slide 18: Appendix: Non-GAAP Financial Information
18 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) June 30, 2023 March 31, 2023 June 30, 2022 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 68,678 $ 62,404 $ 60,740 Plus: Tax effected amortization of intangible ass