Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q2 2023 Earnings Presentation
27 slides from Wsfs Financial's earnings presentation, Aug 3, 2023
Slide 1: WSFS Financial Corporation 2Q 2023 Investor Update
1 WSFS Financial Corporation 2Q 2023 Investor Update August 2023 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 The WSFS Franchise Page 5 Lines of Business Page 8 Selected Financial and Performance Metrics Page 15 Balance Sheet Composition Page 16 Deposit Cost Trends Page 17 Interest Rate Risk Page 18 Credit Risk Page 19 Capital Management Page 20 Recognitions
Slide 4: Franchise and Markets
4 Franchise and Markets
Slide 5: The WSFS Franchise – Lines of Business Overview
5 • Consumer • 88 branches serving Pennsylvania, Delaware, and New Jersey with 679 branded ATMs • Focused strategic partnerships including Upstart, which has over 80% regional concentration for outstanding balances • Commercial & Small Business • Over $9.7 billion in Commercial loan exposure within
Slide 6: The WSFS Franchise – Strategic Opportunity
6 2.6% 6.7% WSFS Market Share 2018 2022 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 Share data excludes brokered deposits as defined by FDIC, credit unions
Slide 7: The WSFS Franchise – Diversified Fee Revenue
7 The WSFS Franchise – Diversified Fee Revenue 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. 2 %s represent Core Fee (nonint
Slide 8: Commercial Banking and Business Lending
8 Business Banking Middle Market Comm. Real Estate Small Business SBA Lending Revenues: $3 million – $20 million+ Revenues: $20 million – $150 million+ Revenues: N/A Revenues: $250,000 – $5 million+ Profit: Up to $5 million Loan Exposure: $1 million – $15 million+ Loan Exposure: $5 million – $30 mil
Slide 9: Consumer Banking: Branch & ATM Network, Digital, Lending, Mortgage
9 Branch & ATM Network Digitally Active Banking Lending Mortgage Locations across Delaware, southeastern Pennsylvania and southern New Jersey Approximately 149K digitally active2 Customers, which includes active online banking and mobile users Providing Customers with a wide range of options to make
Slide 10: Wealth and Trust
10 1 Banks and thrifts with greater than $15mm annualized revenue generated from TTM (trailing twelve-month) fiduciary activities and between $5B to $100B in assets; Source: S&P Global; data as of July 1, 2023 2 TTM revenue includes net interest income and noninterest income; excludes provision and
Slide 11: Wealth and Trust Performance
11 Transaction-based 24% Account-based 42% AUM-based 33% Private Banking 1% 2Q 2023 Core Fee Revenue $19.0 $20.7 $24.2 $34.6 $64.5 $0 $20 $40 $60 $80 2018 2019 2020 2021 2022 AUM AUA AUA and AUM ($b)2 1 Total revenue includes net interest income and noninterest income; excludes provision and BMT Ins
Slide 12: Cash Connect
12 • Oldest and second largest vault cash provider in the ATM industry; approximately $1.6 billion in vault cash supplied or supported at 6/30/2023 • ~34,000 non-bank ATMs & smart safes in all 50 states1 • ~9,100 devices utilizing armored car management and/or cash forecasting1 • Support over 65 ATM
Slide 13: NewLane Finance: Micro & Small Ticket Equipment Financing
13 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 100,000 equipment dealers and 31 million small businesses nationwide Product Offering: • Lease/Lo
Slide 14: Strategic Fintech Partnerships and Investments
14 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 15: Selected Financial and Performance Metrics
15 Selected Financial and Performance Metrics
Slide 16: Balance Sheet Composition
16 Time 10% Non-interest DDA 34% Money Market & Savings 38% Interest DDA 18% Balance Sheet Composition1 C&I 37% Commercial Mortgage 29% Construction 7% Commerical Leasing 5% Residential Mortgage 7% Consumer 16% ACL (1%) Investments 25%Cash Connect 2% Other Non- Earning Assets 13% Net Loans 60% • Com
Slide 17: Deposit Cost Trends
17 $3.7 $6.5 $7.6 $8.4 $10.7 $1.5 $2.2 $2.8 $4.0 $6.4 0.65% 0.82% 0.47% 0.16% 0.26% 0.47% 0.62% 0.35% 0.11% 0.17% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 2018 2019 2020 2021 2022 Av er ag e Cu st om er D ep os it Co st (% ) Av er ag e Cu st om er D ep os it ($
Slide 18: Interest Rate Risk
18 1 As of June 30, 2023 2 WSFS IRR model estimates: Static Balance Sheet / Instantaneous Rate Shocks • High % of variable/adjustable rate to total loan portfolio: ~53% • Approximately half of variable rate loans tied to 30- day LIBOR/SOFR • High % core deposits: 90%; high % non-interest bearing and
Slide 19: Credit Risk
19 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 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 3Q 22 4Q 22 1Q 23 2Q 23 Delinquencies Govt. Guaranteed Student Loans 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q
Slide 20: Capital Management – Bank Ratios
20 10.83% 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 2018 Dec 2019 Dec 2020 Dec 2021 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Average Assets (QTD) Tier 1 Leverage Ratio 14.85% 9.5% 10.5% 11.5% 12.5% 13.5% 14.5% 15.5% 16.5% 400 900 1,400 1,900 2,400 2
Slide 21: Capital Management – Ownership Alignment
21 1 As discussed in our most recent proxy statement filed March 28, 2023 2 As of June 30, 2023 3 Board authorization in 2Q 2022 (dollars in 000s) 2018 2019 2020 2021 2022 Total Capital Returned $44,451 $113,795 $179,451 $36,263 $229,927 Total Shares Repurchased 691,742 2,132,390 3,950,855 267,309 4
Slide 22: Recognitions and Total Shareholder Returns
22 Corporate Champion of Change; The Fund for Women & Girls 2022 Champions of Board Diversity honoree; The Forum of Executive Women 2023 Civic 50 Greater Philadelphia Honoree; Philadelphia Foundation 29th Ranked Bank in America for 2023; Forbes 2022 Top SBA Lender in Greater Philadelphia; Philadelph
Slide 23: WSFS Mission, Vision, Strategy, and Values
23 WSFS Mission, Vision, Strategy, and Values
Slide 24: Appendix: Non-GAAP Financial Information
24 Non-GAAP Financial Information Appendix:
Slide 25: Non-GAAP Information
25 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 26: Appendix: Non-GAAP Financial Information
26 Appendix: Non-GAAP Financial Information For the year ended December 31, (dollars in thousands) 2012 2013 2014 2015 Net Income (GAAP) $ 31,311 $ 46,882 $ 53,757 $ 53,533 Adj: Plus/(less) core (after-tax)1 (11,546) (4,290) (4,632) 4,407 Adjusted net income (non-GAAP) $ 19,765 $ 42,592 $ 49,125 $ 5
Slide 27: Investor Relations Contact
27 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