Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q2 2022 Earnings Presentation
18 slides from Wsfs Financial's earnings presentation, Jul 25, 2022
Slide 1: WSFS Financial Corporation 2Q 2022 Earnings Release Supplement
1 WSFS Financial Corporation 2Q 2022 Earnings Release Supplement July 2022 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: 2Q 2022 Financial Highlights
3 2Q 2022 Financial Highlights 1 These are non-GAAP financial measures 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 Excludes net income that is attributable to
Slide 4: WSFS and Bryn Mawr Trust Update
4 WSFS and Bryn Mawr Trust Update 1Q 2022 – Announced Bryn Mawr Trust as the prominent brand within our Wealth Management segment 3/22/22 – Banking systems and branding integration completed April 2022 – KCMI Capital Inc. (KCMI) loan portfolio was sold at par value for $55.5 million (C&I and Commerc
Slide 5: 2022 Core Outlook - Update
5 3 2022 Core Outlook - Update Loan Growth2 Mid-to-high single digit growth; excluding acquired residential mortgage portfolio Mid single digit growth; excluding acquired residential mortgage portfolio Deposit Growth2 Flat deposit growth Flat deposit growth Net Interest Margin Range of 3.15% - 3.20%
Slide 6: 2022 Core Outlook - Update: NIM, ROA, PPNR
6 +43bps +96bps 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% FY Outlook 4Q Outlook Original Updated 2022 Core Outlook - Update Net Interest Margin +43bps to 2022 NIM FY Outlook Return on Assets +28bps to 2022 ROA FY Outlook 4.20% to 4.25% +28bps +49bps 0.00% 0.20% 0.40% 0.60% 0.80% 1.
Slide 7: 2022-2024 Strategic Plan as of March 31, 2022
7 3 2022-2024 Strategic Plan as of March 31, 2022 Core Return on Average Assets1 • Continued Core ROA expansion from interest rate environment, loan and fee growth • Strategic Plan incorporates macroeconomic considerations for inflation and credit cycle • Loan growth impacted by timing and pace of e
Slide 8: Loan and Deposit Growth
8 Loan and Deposit Growth • Customer deposit decline of $298 million, or 7% annualized, primarily due to decline in trust deposits and balance sheet strategy to sweep deposits • 56% of Customer deposits are in Wealth and Trust, Commercial, and Small Business portfolios • Total gross loan growth excl
Slide 9: Excess Liquidity Impact and Management
9 Excess Liquidity Impact and Management Commercial Portfolio: Net New Loan Fundings ($mm)1 Investment Portfolio Highlights • Optimizing excess liquidity and shifting cash to securities • $1.1 billion of AFS MBS shifted to HTM to limit the capital impact from the rising interest rate environment • T
Slide 10: Net Interest Margin Trends; Average Deposit Cost and Loan Yield
10 0.11% 0.10% 0.09% 0.07% 0.08% 4.20% 4.16% 4.23% 4.13% 4.40% 3.5% 3.7% 3.9% 4.1% 4.3% 4.5% 0.0% 0.2% 0.3% 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 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 2.99% 2.87% 2.91% 2.94% 3.29% 0.24% 0.18% 0.19% 0.0
Slide 11: Core Fee Revenue
11 $16 $16 $18 $32 $33 $12 $11 $13 $16 $19 $11 $11 $11 $10 $12 $4 $6 $5 $3 $2 $- $10 $20 $30 $40 $50 $60 $70 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 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
Slide 12: ACL Overview
12 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 3/31/2022 Economic Impact Run off Net Loan Growth 6/30/2022 0% 1% 2% 3% 4% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 Forecast 2Q22 Forecast Coverage Ratio 1 Source: Oxford Economics as of June 2022 2 Hotel loan balances are included in the C&I and
Slide 13: Appendix: Non-GAAP Financial Information
13 Non-GAAP Financial Information Appendix:
Slide 14: Non-GAAP Information
14 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 15: Appendix: Non-GAAP Financial Information
15 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) June 30, 2022 March 31, 2022 June 30, 2021 Net interest income (GAAP) $ 153,615 $ 138,558 $ 106,749 Core net interest income (non-GAAP) $ 153,615 $ 138,558 $ 106,749 Noninterest income (GAAP) $ 72,029 $ 60,574 $ 49
Slide 16: Appendix: Non-GAAP Financial Information
16 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) June 30, 2022 March 31, 2022 June 30, 2021 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 60,740 $ 3,804 $ 95,667 Plus: Tax effected amortization of intangible asse
Slide 17: Appendix: Non-GAAP Financial Information
17 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 18: Stockholder and Investor Relations Contacts
18 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