Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q3 2022 Earnings Presentation
17 slides from Wsfs Financial's earnings presentation, Oct 24, 2022
Slide 1: WSFS Financial Corporation 3Q 2022 Earnings Release Supplement
1 WSFS Financial Corporation 3Q 2022 Earnings Release Supplement October 2022
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: 3Q 2022 Financial Highlights
3 3Q 2022 Financial Highlights Strong and diversified performance driving Core PPNR % growth of 32bps to 2.18%; including 8% annualized loan growth and 26.8% core fee revenue percentage 3Q 2022 $ in millions (except per share amounts) Reported Core1 EPS $1.16 $1.23 ROA 1.44% 1.52% Net Income2 $73.4
Slide 4: 2022 Core Outlook
4 Status 3 2022 Core Outlook Loan Growth2 Mid single digit growth; excluding acquired residential mortgage portfolio On Track Deposit Growth2 Flat deposit growth Low single digit decline Net Interest Margin Range of 3.60% - 3.65%; assumed thirteen 25bp interest rate increases On Track3 Fee Revenue G
Slide 5: Loan and Deposit Growth
5 Loan and Deposit Growth • Customer deposit decline of $545 million, or 13% annualized, primarily due to declines in transactional trust deposits and Customer liquidity run-off across most lines of business • 55% of Customer deposits are in Wealth and Trust, Commercial, and Small Business portfolio
Slide 6: Commercial Loan and Investment Portfolios
6 $426 $490 $503 $685 $618 ($521) ($626) ($516) ($600) ($558) $(800) $(600) $(400) $(200) - $200 $400 $600 $800 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Commercial Portfolio: New Net Loan Fundings ($mm)1 New Loans Fundings Paydown/Payoffs Commercial Loan and Investment Portfolios Investment Portfolio
Slide 7: Net Interest Margin Trends
7 0.10% 0.09% 0.07% 0.08% 0.15% 4.16% 4.23% 4.13% 4.40% 5.12% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 0.0% 0.2% 0.3% 0.5% 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Lo an Y ie ld (% ) Cu st om er D ep os it Co st (% ) Total Deposit Cost Total Loans Ex PPP/PAA Yield 2.87% 2.91% 2.94% 3.29% 3.90%0.18% 0.19% 0
Slide 8: Core Fee Revenue
8 $16 $18 $32 $33 $30 $11 $13 $16 $19 $18 $11 $11 $10 $12 $15 $6 $5 $3 $2 $1 $- $10 $20 $30 $40 $50 $60 $70 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Co re F ee R ev en ue ( $m m )2 Wealth Management Banking Cash Connect Mortgage 1 These are non-GAAP financial measures and should be considered along w
Slide 9: ACL Overview
9 $60 $80 $100 $120 $140 $160 $180 6/30/2022 Economic Impact Net Loan Growth Migration Other 9/30/2022 0% 1% 2% 3% 4% 5% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 2Q22 Forecast 3Q22 Forecast Coverage Ratio 1 Source: Oxford Economics as of September 2022 2 Hotel loan balances are included in the C&I an
Slide 10: Capital Management
10 Capital Management TCE Ratio1,2 with AOCI 3Q 2022 Bank Capital Ratios 7.47% 6.63% 5.73% 1.57% 2.66% 3.77% 9.04% 9.29% 9.50% 0% 3% 6% 9% 12% 1Q 2022 2Q 2022 3Q 2022 TCE/Tangible Assets AOCI/Tangible Assets • TCE Ratio declined 90bps QoQ, which includes nearly half, or 43bps, from $81 million in sh
Slide 11: Appendix: Non-GAAP Financial Information
11 Non-GAAP Financial Information Appendix:
Slide 12: Non-GAAP Information
12 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 13: Appendix: Non-GAAP Financial Information
13 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) September 30, 2022 June 30, 2022 September 30, 2021 Net interest income (GAAP) $ 176,831 $ 153,615 $ 104,491 Core net interest income (non-GAAP) $ 176,831 $ 153,615 $ 104,491 Noninterest income (GAAP) $ 62,651 $ 72
Slide 14: Appendix: Non-GAAP Financial Information
14 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) September 30, 2022 June 30, 2022 September 30, 2021 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 73,382 $ 60,740 $ 54,406 Plus: Tax effected amortization of intan
Slide 15: Appendix: Non-GAAP Financial Information
15 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) September 30, 2022 June 30, 2022 March 31, 2022 Calculation of tangible common equity ratio: Total Assets (GAAP) $ 19,985,387 $ 20,550,216 $ 20,964,674 Less: Goodwill and other intangible assets 1,016,413 1,019,857
Slide 16: Appendix: Non-GAAP Financial Information
16 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 17: Investor Relations contact information
17 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