Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q2 2022 Earnings Presentation
29 slides from Wsfs Financial's earnings presentation, Aug 18, 2022
Slide 1: WSFS Financial Corporation 2Q 2022 Investor Update
1 WSFS Financial Corporation 2Q 2022 Investor Update August 2022 Exhibit 99.1
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: Table of Contents
3 Table of Contents Franchise and Markets Page 4 Selected Financial and Performance Metrics Page 18
Slide 4: Franchise and Markets
4 Franchise and Markets
Slide 5: The WSFS Franchise – Diversified Business Model
5 The WSFS Franchise – Diversified Business Model1 • Wealth and Trust • Serving all 50 states with over half of revenues coming outside of PA/DE/NJ through our established national centers of influence and reputation for service • Cash Connect® • Serving all 50 states by leveraging strategic channel
Slide 6: The WSFS Franchise – Strategic Opportunity
6 Note: As of June 30th, 2022, unless otherwise stated; Pro Forma includes the net deposits of WSFS and BMT 1 AUA represents Assets Under Administration and AUM represents Assets Under Management; net AUM excludes certain flat-fee assets 2 Sources: FDIC and S&P Global Market Intelligence. Market Sha
Slide 7: The WSFS Franchise – Growth & Performance
7 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 following: 2019 – 1.30%, 2020 – 0.87%, and 2021 – 1.82%
Slide 8: Historical Trends – Deposit and Fee Revenue
8 $3.4 $3.7 $6.5 $7.6 $8.4$1.4 $1.5 $2.2 $2.8 $4.0 0.37% 0.65% 0.82% 0.47% 0.16% 0.27% 0.47% 0.62% 0.35% 0.11% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9% $0 $2 $4 $6 $8 $10 $12 $14 2017 2018 2019 2020 2021 Bi lli on s Interest-bearing Noninterest-bearing Interest-bearing cost Total deposit co
Slide 9: Disciplined Credit and Underwriting Philosophy
9 34 38 42 6 6 6 16 14 19 18 18 16 7 7 7 - 20 40 60 80 100 2Q 2020 2Q 2021 2Q 2022 Relationship Managers3 Business Banking Middle Market CRE Small Business SBA Lending Disciplined Credit and Underwriting Philosophy • Conservative lending and concentration limits • CRE1: 300% limit; 259% actual • Con
Slide 10: Branch & ATM Network, Digital Banking, Lending, Mortgage
10 Branch & ATM Network Digitally Active Banking Lending Mortgage Locations across Delaware, southeastern Pennsylvania and southern New Jersey Over 151K digitally active Customers, which includes active online banking and mobile users Providing Customers with a wide range of options to make banking
Slide 11: Strategic Fintech Partnerships Timeline
11 Timeline 2013 – Current 2015 – 2017 2016 – Current 2017 – 2021 2020 – Current 2021 - Current Business Summary Digital lending platform that specializes in student loans and student loan refinancing Mobile multi- currency account for people who live, work, or travel across borders Digital mortgage
Slide 12: Wealth and Trust Businesses
12 Advisory $7.6B AUM $37.2B AUA • Serving all 50 states and internationally; Approx. 50% of Revenue outside of local markets. • Well diversified fee sources that provides relatively stable revenue throughout economic and market cycles • Approximately 15,000 Advisory relationships and 1,100 Institut
Slide 13: Cash Connect
13 • Oldest and second largest vault cash provider in the ATM industry - approximately $2.0 billion in vault cash supplied or supported at 6/30/2022 • Over 34,000 non-bank ATMs & retail safes in all 50 states1 • ~9,500 devices utilizing armored car management and/or cash forecasting1 • Support over
Slide 14: NewLane Finance
14 NewLane Finance Background: • Co-founded in 2017 by industry veterans, each with over 20 years of experience1 Market Size: • Micro & Small Ticket Equipment Leasing is a $100 billion segment with over 100 thousand equipment dealers and 31 million small businesses nationwide Product Offering: • Lea
Slide 15: Channel Strategy and Digital Adoption
15 1 Based on 90-day average; Customer must login at least once through mobile or online channel to be considered digitally active 2 Contact Center NPS scoring began in 4Q 2020 Channel Strategy and Digital Adoption $120 $142 $183 40 60 80 100 120 140 160 180 200 2Q 2020 2Q 2021 2Q 2022 Deposits Per
Slide 16: Delivery Transformation Journey
16 Delivery Transformation Journey OneWSFS Pre-2020 2020 2021 2022 and Future • First-of-its-kind multi-currency account with Zenbanx • Cloud-based Contact Center • nCino© platform • Oracle cloud-based ERP and PBCS ledger system • Launched the MyWSFS application • Rolled out Customer-centric website
Slide 17: Recognitions and Total Shareholder Returns
17 “President’s Award for Business Excellence and Best Community Involvement”; DE Small Business Chamber “Soaring 76’s Fastest Growing Companies”; Philadelphia Business Journal “Best of Biz” for Business Banking; South Jersey Magazine 2022 Annual World's Best Banks honoree; Forbes #1 “Top Bank” in D
Slide 18: Selected Financial and Performance Metrics
18 Selected Financial and Performance Metrics
Slide 19: Balance Sheet Composition at June 30, 2022
19 Time 6% Non-interest DDA 38% Money Market & Savings 36% Interest DDA 20% Core Deposits decreased $246 million in 2Q 2022, primarily due to lower Corporate Trust deposits and balance sheet strategy to sweep deposits Balance Sheet Composition at June 30, 2022 C&I 39% CRE 29% Construction 8% Commeri
Slide 20: Interest Rate Risk at June 30, 2022
20 1 WSFS IRR model estimates: Static Balance Sheet / Instantaneous Rate Shocks 2 Includes PPP loans • High % of variable/adjustable rate to total loan portfolio: 56% • Approximately half of variable rate loans tied to 30- day LIBOR • High % core deposits: 94%; high % non-interest bearing and low-in
Slide 21: Credit Quality: Delinquencies, Criticized and Classified Loans
21 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Delinquencies Govt. Guaranteed Student Loans 0.52% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q
Slide 22: Capital Management - Bank
22 9.66% 9.73% 10.82% 11.72% 9.74% 10.11% 10.27% 10.44% 9.98% 10.02% 4.5% 6.5% 8.5% 10.5% 12.5% 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Average Assets (QTD) Tier 1 Leverage Ratio 11.9
Slide 23: Capital Management / Ownership Alignment
23 Note: 2015 adjusted to reflect 3 for 1 stock split in May 2015 1 As discussed in our most recent proxy statement filed March 28, 2022 2 As of June 30, 2022 (dollars in 000s) 2017 2018 2019 2020 2021 1H 2022 Total Capital Returned $21,157 $44,451 $113,795 $179,451 $36,263 $112,824 Total Shares Rep
Slide 24: WSFS Mission, Vision, Strategy and Values
24 WSFS Mission, Vision, Strategy and Values
Slide 25: Appendix: Non-GAAP Financial Information
25 Non-GAAP Financial Information Appendix:
Slide 26: Non-GAAP Information
26 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 27: Appendix: Non-GAAP Financial Information
27 Appendix: Non-GAAP Financial Information For the year ended December 31, (dollars in thousands) 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 $ 20,013 $ 19,765 $ 42,
Slide 28: Appendix: Non-GAAP Financial Information (Tax-Equivalent Basis)
28 Appendix: Non-GAAP Financial Information 1 Completed on a fully tax-equivalent basis For the year ended December 31, (dollars in thousands) 2017 2018 2019 2020 2021 Net interest income (as reported) $ 221,271 $ 246,474 $ 444,948 $ 465,955 $ 433,649 Adj: Tax-equivalent income 2,991 1,360 1,215 1,1
Slide 29: Investor Relations Contact
29 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 Chairman, President and CEO 3