Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q4 2024 Earnings Presentation
21 slides from Wsfs Financial's earnings presentation, Jan 27, 2025
Slide 1: WSFS Financial Corporation 4Q 2024 Earnings Release Supplement
1 WSFS Financial Corporation 4Q 2024 Earnings Release Supplement January 2025 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: Financial Highlights
3 Financial Highlights Highlights: • Customer Deposits increased $602.8mm in 4Q, resulting in a full-year increase of $607.4mm or 4% • Growth was broad-based; driven by Trust, Consumer, and Commercial • Loans declined $123.1mm in 4Q, resulting in a full-year increase of $442.6mm or 3% • QoQ decline
Slide 4: Net Interest Margin Trends
4 Up-cycle Deposit Betas3,4 50% 51% 35% 36% 0% 15% 30% 45% 60% 2Q 2024 3Q 2024 De po sit B et a Int-Only Total Net Interest Margin Trends Reflects growing core deposits while maintaining favorable funding costs 1 Includes noninterest and interest-bearing; interest-bearing deposits include demand, mo
Slide 5: Loan Portfolio Highlights
5 Loan Portfolio Highlights • Commercial: New originations remain strong with seasonally higher payoffs • Payoffs include a combination of refinancing activity and property/business sales • Line utilization of 36.5%, down from 38.2% last quarter mainly due to an increase in new C&I commitments • Con
Slide 6: Deposit Highlights
6 Deposit Highlights • $602.8mm (4% not annualized) increase in ending Customer Deposits this quarter • Driven by Trust, Consumer, and Commercial deposits, partially offset by expected declines in Munis • 51% of Customer Deposits are coming from Commercial, Small Business, and Wealth & Trust • Consi
Slide 7: Core Fee Revenue
7 $19 $17 $17 $21 $18 $23 $26 $31 $32 $25 $36 $33 $38 $37 $40 $78 $76 $86 $90 $83 $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Co re F ee R ev en ue ($ m m )2 Banking Cash Connect Wealth Management3 Core Fee Revenue1 31.8% Core Fee Revenue ratio with record qua
Slide 8: Commercial Loan Composition
8 3 Commercial Loan Composition1 1 As defined by the North American Industry Classification System (NAICS) 2 Based on the underlying real estate collateral 3 Concentration limits are based on relationship exposure, and Tier-1 + ACL; as of December 31, 2024 2 Highly diversified C&I, Owner-Occupied, C
Slide 9: Volume of Maturing CRE Loans by Industry
9 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 2025 2026 2027 2028 2029 Bi lli on s Volume of Maturing CRE Loans by Industry Office Multi-Family Industrial/Flex Retail Resi 1-4 Other CRE and Select Portfolios 1 Inclusive of Construction 2 Includes a $18.8mm C&I loan, in participation with another bank, to a f
Slide 10: Asset Quality Metrics
10 Asset Quality Metrics Problem Assets Nonperforming Assets (NPA) Delinquencies (DLQ) Net Charge-offs (NCO) $556 $573 $629 $722 $645 4.34% 4.41% 4.76% 5.40% 4.87% 0.0% 1.2% 2.4% 3.6% 4.8% 6.0% $300 $400 $500 $600 $700 $800 4Q23 1Q24 2Q24 3Q24 4Q24 M ill io ns Problem Assets % of Gross Loans $102 $1
Slide 11: ACL Ratio
11 ACL Ratio $165 $175 $185 $195 $205 9/30/2024 Net Loan Growth (ex. Upstart) Migration / NCOs / Other Upstart 12/31/2024 4Q 2024 ACL ($mm) $5 ($3) $195 ($4) 1 This is a non-GAAP financial measures and should be considered along with results prepared in accordance with GAAP, and not as a substitute
Slide 12: Investment Portfolio
12 Investment Portfolio High-quality investment portfolio providing consistent cash flows and borrowing capacity 1 Investment portfolio value includes market value AFS and book value of HTM 2 Weighted average duration and yield of the MBS portfolio 3 This is a non-GAAP financial measure and should b
Slide 13: Capital Ratios and TBV per Share
13 -$10.58 $27.30 -$20 -$10 $0 $10 $20 $30 $40 4Q20 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 2Q24 4Q24 TBV and AOCI per Share AOCI/share TBV/share 10.03% 9.64% 11.36% 8.08% 3.85% 1.39% 3.77% 1.61% 13.88% 11.03% 15.13% 9.69% 0% 4% 8% 12% 16% Bank CET1 Bank Leverage Bank TRBC Corp. TCE Effective AOCI Well-capita
Slide 14: 2025 Outlook
14 3 2025 Outlook Loan Growth Mid-single digit growth in Commercial Consumer flat due to Partnership portfolio runoff Deposit Growth Low-single digit growth Broad-based growth across our businesses Net Interest Margin +/-3.80% IB deposit beta of ~40% by year-end Fee Revenue Growth Mid-single digit g
Slide 15: Appendix: Non-GAAP Financial Information
15 Non-GAAP Financial Information Appendix:
Slide 16: Non-GAAP Information
16 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 17: Appendix: Non-GAAP Financial Information
17 Appendix: Non-GAAP Financial Information Three Months Ended For the Year Ended (dollars in thousands) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 Net interest income (GAAP) $ 178,207 $ 177,504 $ 178,127 $ 705,438 Core net interest income (non-GAAP) $ 178,207 $ 177,504
Slide 18: Appendix: Non-GAAP Financial Information
18 Appendix: Non-GAAP Financial Information Three Months Ended For the Year Ended (dollars in thousands, except per share data) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 GAAP net income attributable to WSFS $ 64,202 $ 64,435 $ 63,908 $ 263,671 Plus/(less): Pre-tax adju
Slide 19: Appendix: Non-GAAP Financial Information
19 Appendix: Non-GAAP Financial Information Three Months Ended For the Year Ended (dollars in thousands) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 64,202 $ 64,435 $ 63,908
Slide 20: Appendix: Non-GAAP Financial Information
20 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) December 31, 2024 Calculation of effective AOCI: Unrealized losses on AFS securities $ 537,790 Unrealized losses on securities transferred from AFS to HTM 76,405 Unrecognized fair value on HTM securities 119,651
Slide 21: Appendix: Non-GAAP Financial Information
21 Appendix: Non-GAAP Financial Information (dollars in thousands, except per share data) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Calculation of tangible common book value per share: Total s