Slide 1: WSFS Financial Corporation 4Q 2021 Investor Update
WSFS Financial Corporation 4Q 2021 Investor Update January 2022 1
Slide 2: Forward Looking Statements & Non-GAAP
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 limita
Slide 3: Table of Contents
Table of Contents Financial Highlights Page 4 2022 Outlook Page 5 Loan and Deposit Growth Page 7 Excess Liquidity Trends Page 8 Net Interest Margin Trends Page 9 Core Fee Revenue Trends Page 10 ACL Overview Page 11 WSFS Franchise and Markets Page 12 Lines of Business Page 20 Selected Financial and P
Slide 4: Financial Highlights
Financial Highlights 4Q 2021 FY 2021 2021 operating results reflect record net income; $ in millions (expect per share amounts) Reported Core1 Reported Core1 4Q highlighted diversified revenue EPS $1.18 $1.04 $5.69 $5.63 and improving credit metrics ROA 1.45% 1.28% 1.82% 1.80% 4Q 2021 Highlights: Ne
Slide 5: 2022 Outlook – BMT Pro Forma & Assumptions
2022 Outlook – BMT Pro Forma & Assumptions 2021 Pro Forma • BMT transaction closed on January 1, 2022 Estimates1 Timeline • Bank technology, branding, and branch conversion scheduled for the weekend of March 18, 2022 • Trust and Wealth integration is anticipated in late 2022 or Loans Deposits early
Slide 6: 2022 Outlook – Core Key Metrics
2022 Outlook – Core Key Metrics Outlook FY Core ROA range of 1.05% - 1.15%; 4Q of 1.20% +/- ; Resulting from franchise growth, BMT cost synergies, continued investments in talent and technology 2022 Core Outlook1 Mid-to-high single digit growth excluding residential mortgage portfolio; Loan Growth2
Slide 7: Loan and Deposit Growth
Loan and Deposit Growth Significant excess Customer liquidity continues due to strong Customer relationships across all business lines; Elevated payoffs offsetting record new loan originations Loans - 4Q 2021 vs 3Q 2021 and 4Q 2020 Deposits - 4Q 2021 vs 3Q 2021 and 4Q 2020 Dec Sep Dec 4Q21 Annualize
Slide 8: Excess Liquidity Impact and Management
Excess Liquidity Impact and Management Commercial Portfolio: Net New Loan Originations ($mm)1 $600 $429 $467 $434 $477 Investment portfolio expansion continues $398 $400 $256 $372 $359 $338 as loan paydowns more than offset $200 pre-COVID new origination levels - $(200) Commercial Portfolio Highligh
Slide 9: Net Interest Margin Trends
Net Interest Margin Trends NIM impacted by significant customer liquidity, balance sheet mix, and low funding costs 4.00% 3.93% Average Deposit Cost1 and Loan Yield2 0.6% 0.06% 4.4% 4.39% Customer Deposit Cost (%) 3.75% 4.30% 4.2% 0.5% 4.23% 4.20% 4.16% 3.59% 0 4.0% Loan Yield (%) 0.51% 3.50% 0.12%
Slide 10: Core Fee Revenue Trends
Core Fee Revenue1 Trends Diversified business model drives Core Fee Revenue strength 26.1% 29.4% 29.1% 29.3% 29.8% Core Fee Revenue % (including PPP)2 $50 27.9% 30.2% 30.0% 29.9% 30.0% Core Fee Revenue % (excluding PPP)3 $45 $5 • Well-diversified with over 20 discrete lines of $9 $4 $6 $40 $7 busine
Slide 11: ACL Overview
ACL Overview Full-Year GDP forecast of 5.5% in 2021 and 4.4% in 20221 4Q 2021 ACL Commentary Full-Year Unemployment forecast of 5.4% in 2021 and 3.8% in 20221 • Coverage ratio of 1.19% and 1.43% including estimated remaining GDP Growth by Quarter Unemployment by Quarter 15% 7% credit mark on the acq
Slide 12: WSFS Franchise and Markets
WSFS Franchise and Markets 12
Slide 13: The WSFS Franchise – Strategic Opportunity
The WSFS Franchise – Strategic Opportunity At $15.8 billion in assets at 12/31/21, WSFS fills a long-standing service gap in our market between larger regional/national banks and smaller community banks MSA: Philadelphia-Camden-Wilmington 1 Regional Highlights2 2021 • 4th largest metro in the Northe
Slide 14: The WSFS Franchise
The WSFS Franchise 1 Founded in 1832, WSFS is one of the ten oldest banks in the U.S.2 Largest independent bank & trust company HQ in Delaware-Greater Philadelphia region • $15.8 billion in assets • $34.6 billion in combined AUA3 and AUM3, including $2.6 billion in AUM4 • 112 offices, including 89 b
Slide 15: The WSFS Franchise - Our Markets
The WSFS Franchise - Our Markets Philadelphia-Camden-Wilmington MSA Regional Employment Composition1 Regional Statistics3 Diversity of industries drives stable and favorable employment and economic growth in our markets 6.1M 2.3M 38.9 4.6% Unemployment2 Population Households Median Age Financial Act
Slide 16: The WSFS Franchise – Growth & Performance
The WSFS Franchise – Growth & Performance Millions 1 This is a non-GAAP financial measure and should be considered along with results prepared in accordance with GAAP, and not as a substitute for GAAP results. See Appendix for reconciliation to GAAP financial information Note: GAAP ROA is the follow
Slide 17: The WSFS Franchise – Strategic Partnerships
The WSFS Franchise – Strategic Partnerships Partnering with industry leaders for product diversification, knowledge, and technology best-practices Timeline 2013 – Current 2015 – 2017 2016 – Current 2017 – 2021 2020 – Current 2021 - Current Digital mortgage Digital lending Mobile multi- solution spec
Slide 18: Delivery Transformation
Delivery Transformation Optimization of our physical footprint driving accelerating investments into our digital capabilities, consistent with our brand, to provide best-in-industry solutions and better serve Customers • Maximizing data-driven analytics to deliver personalized campaigns leading to c
Slide 19: Recognitions and Total Shareholder Returns
Recognitions and Total Shareholder Returns Engaged Associates, living our culture, making a better life Total Shareholder Returns1 for all we serve “Top Workplace” fifteen #1 “Top Bank” in Delaware nine years 400% years in a row and #2 in in a row; The News Journal 350% 2021; The News Journal “1st R
Slide 20: Lines of Business
Lines of Business Financial Corporation
Slide 21: Commercial Banking
Commercial Banking Local, relationship-focused lending including cash management, wealth management, and private banking services Business Banking Middle Market Comm. Real Estate Small Business SBA Lending Revenues: Revenues: Revenues: Revenues: Profit: $3 million - $20 million+ $20 million-$150 mil
Slide 22: Retail Banking
Retail Banking Relationship-focused community banking model with 89 banking offices & 609 ATMs1 Branch & ATM Network Digitally Active Banking Lending Mortgage Offering a full range of Over 131K digitally active Providing Customers with a Meeting Customers’ Locations across Delaware, mortgage product
Slide 23: WSFS Wealth
WSFS Wealth Financial Highlights 4Q 2021 total revenue of $22.5 million 4Q 2021 pre-tax income of $23.4 million $34.6 billion in combined Assets Under Management and Administration, including $2.6 billion in AUM1 at 12/31/2021 Total AUM and AUA2 $40 Billions $35 $30 $25 $20 $34.6 $15 $24.2 $10 $20.7
Slide 24: Cash Connect®
Cash Connect® Leading National Provider of Cash Logistics and Services • Oldest and second largest vault cash provider in the ATM industry - approximately $1.7 billion in vault cash supplied or supported at 12/31/2021 ATM Vault Cash • Approximately 34,000 non-bank ATMs & retail safes in all 50 state
Slide 25: NewLane Finance
NewLane Finance Micro & Small Ticket Commercial Equipment Financing Background: • Co-founded in 2017 by industry veterans, each with over 20 years of experience1 Market Size: Attractive Risk Adjusted Margins • Micro & Small Ticket Equipment Leasing is a $100 billion segment with over 100 thousand eq
Slide 26: Selected Financial and Performance Metrics
Selected Financial and Performance Metrics 26
Slide 27: Balance Sheet Composition at December 31, 2021
Balance Sheet Composition at December 31, 2021 Asset Composition (ex PPP)1 Funding Composition $15.7B $7.9B 16% $13.2B 60% 14% Assets Net Loans YOY Asset Growth Deposits2 Loan-to-Deposit YOY Deposit Growth Construction Money Market 9% & Savings CRE Commerical 24% Leasing 37% 4% Other Non- Residentia
Slide 28: Customer Deposit Costs
Customer Deposit Costs 14.0 0.9% Billions 0.82% 0.8% 12.0 Interest-bearing1 • Disciplined funding cost- Noninterest-bearing 0.65% 0.7% management through Interest-bearing cost 1 interest rate cycles while 10.0 Total deposit cost supporting Customer and 0.6% 0.62% 0.47% deposit retention 8.0 0.5% • 9
Slide 29: Diversified and Robust Core Fee Revenue
Diversified and Robust Core Fee Revenue 29%2 $180 Bank Segment 27%2 Cash Connect 27%2 • Core Fee revenue is well diversified $23 $160 Trust & Wealth with over 20 discrete products and $11 Mortgage $30 services within our lines of business 36%2 $140 $6 2021 Notables: 36%2 $44 $63 • Trust & Wealth inc
Slide 30: Credit Metrics (ex PPP)
Credit Metrics (ex PPP) Criticized & Classified Loans / Tier-1 + ACL Delinquencies1 / Gross Loans 60% 1.2% 50% 1.0% 0.8% 40% 0.59% 0.6% 30% 23.38% 0.4% 20% 0.2% 15.95% 10% 0.0% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 4Q16 1Q17 2Q17 3Q1
Slide 31: Credit Risk Management – Select Portfolios
Credit Risk Management – Select Portfolios • $531.1 million or 6.7% of loan portfolio1 Hotel • 24% Criticized; ~85% of loans include recourse; 100% secured by real estate Loan Modifications1 Portfolio • 66% business and 34% leisure % of $ ($ in thousands) Portfolio • $672.9 million or 8.5% of loan p
Slide 32: Channel Strategy and Digital Adoption
Channel Strategy and Digital Adoption Channel Volumes1 200% 179% • Branch Net Promoter Score (NPS) improved to 80.6 170% 172% 170% 175% 163% 166% 164% in 4Q 2021, which is the highest quarter performance since program inception. Contact 150% Center Net Promotor Score (NPS) improved in 4Q 2021 to 65.
Slide 33: Capital Management - Bank
Capital Management - Bank Disciplined capital management providing flexibility to grow & return profits to shareholders Tier 1 Leverage Ratio Common Equity Tier 1 Capital 16,000 11.72% 12.5% 1,750 14.59% 16% Millions Millions Millions 10.72% 1,550 13.52% 13.20% 15.11% 14,000 10.35% 10.27% 13.16% 12.
Slide 34: Capital Management / Ownership Alignment
Capital Management / Ownership Alignment $200,000 $0.60 • Executive management incentive $0.52 $180,000 compensation and equity awards aligned with $0.47 $0.48 $0.50 shareholder performance Annual Dividends Paid per Share $160,000 ROA, ROTCE and EPS growth – equally weighted Capital Returned ($ in 0
Slide 35: Interest Rate Risk at December 31, 2021
Interest Rate Risk1 at December 31, 2021 WSJ Prime @ 3.25% Balance Sheet Drivers 12-Month IRR2 BPs change NII Impact (%) NII Impact ($) • High % of variable/adjustable rate to total loan portfolio: 59% -100 (3.8%) ($16.5 million) • Approximately half of variable rate loans tied to 30- -50 (2.2%) ($9
Slide 36: WSFS Mission, Vision, Strategy, and Values
WSFS Mission, Vision, Strategy, and Values 36
Slide 37: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 37
Slide 38: Non-GAAP Information
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 to
Slide 39: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Three Months Ended Twelve Months Ended (dollars in thousands, except per share data) December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 Net interest income (GAAP) $ 108,224 $ 104,491 $ 123,001 $ 433,649 Core net interest income (non-GAAP
Slide 40: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Three Months Ended Twelve Months Ended (dollars in thousands, except per share data) December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 GAAP net income attributable to WSFS $ 56,287 $ 54,406 $ 59,813 $ 271,442 Plus/(less): Pre-tax adjust
Slide 41: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Three Months Ended Twelve Months Ended (dollars in thousands, except per share data) December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 56,
Slide 42: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information For the year ended December 31, (dollars in thousands, except per share data) 2010 2011 2012 2013 Net Income (GAAP) $ 14,117 $ 22,677 $ 31,311 $ 46,882 Adj: Plus/less core (after-tax) 1 420 (2,664) (11,546) (4,290) Adjusted net income (non-GAAP) $ 14,537 $ 20
Slide 43: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information For the year ended December 31, (dollars in thousands, except per share data) 2016 2017 2018 2019 2020 2021 Net interest income (as reported) $ 193,745 $ 221,271 $ 246,474 $ 444,948 $ 465,955 $ 433,649 Adj: Tax-equivalent income 2,970 2,991 1,360 1,215 1,151
Slide 44: Stockholders or others seeking information may call or write
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