Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q1 2024 Earnings Presentation
19 slides from Wsfs Financial's earnings presentation, Apr 25, 2024
Slide 1: WSFS Financial Corporation 1Q 2024 Earnings Release Supplement
1 WSFS Financial Corporation 1Q 2024 Earnings Release Supplement April 2024 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 1Q 2024 Highlights: • Gross loans increased $212mm or 7% (annualized) • Growth across Commercial and Consumer segments • Customer deposits declined $235mm or 6% (annualized) • Expected declines in Trust and a short-term Commercial deposit partially offset by Consumer and Wealt
Slide 4: Net Interest Margin Trends
4 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 0.80% 1.16% 1.38% 1.62% 1.79% 1.05% 1.40% 1.59% 1.83% 1.99% 6.42% 6.69% 6.81% 6.92% 6.95% 2.0% 4.0% 6.0% 8.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Lo an Y ie ld (% ) Cu st om er D ep os it
Slide 5: Core Fee Revenue
5 $15 $15 $19 $19 $17 $18 $20 $21 $23 $26 $31 $32 $33 $36 $33 $64 $67 $73 $78 $76 $- $10 $20 $30 $40 $50 $60 $70 $80 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Co re F ee R ev en ue ( $m m )2 Banking Cash Connect Wealth Management3 Core Fee Revenue1 30.3% core fee revenue ratio with substantial growth
Slide 6: Deposit Highlights
6 Deposit Highlights • $235mm (6% annualized) decrease in ending Customer Deposits • Decline driven by $207mm in expected Trust activity and $82mm from a short-term Commercial deposit • 1.79% total average Customer Deposit cost; 34% total deposit beta • 30% average noninterest deposits • 52% of Cust
Slide 7: Loan Portfolio Highlights
7 Loan Portfolio Highlights • Commercial: Growth driven by CRE new fundings and C&I originations; partially offset by payoffs and paydowns • Lowest quarterly payoffs/paydowns in over five years • Line utilization to 38.3%, up from 36.9% last quarter • Consumer: Driven by $59mm increase in Spring EQ
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 March 31, 2024 2 Highly diversified C&I, Owner-Occupied, CRE,
Slide 9: Stable Asset Quality Metrics
9 Stable Asset Quality Metrics $417 $465 $543 $556 $573 3.42% 3.76% 4.27% 4.34% 4.41% -2% 0% 2% 4% 6% 8% $300 $400 $500 $600 $700 $800 1Q23 2Q23 3Q23 4Q23 1Q24 M ill io ns Problem Assets % of Gross Loans Problem Assets $33 $34 $58 $76 $67 0.16% 0.16% 0.29% 0.37% 0.33% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% $
Slide 10: CRE Portfolio Maturity and Select Portfolios
10 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 2024 2025 2026 2027 2028 Bi lli on s Office Multi-Family Industrial/Flex Retail Single Family Other 9.3% 9.3% 8.3% 10.6% 12.3% Portfolio Maturity % CRE and Select Portfolios 1 Inclusive of Construction 2 Office CRE portfolio excludes $102.5mm ($107.1mm exposure)
Slide 11: ACL Ratio
11 ACL Ratio $170 $175 $180 $185 $190 $195 $200 12/31/2023 Economic Impact Net Loan Growth Migration / Other 3/31/2024 1Q 2024 ACL ($mm) ($1) $186 $6 $193 $2 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 cashflows 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 be
Slide 13: Capital
13 Capital All capital ratios remain significantly above “well-capitalized” 10.18% 9.92% 11.52% 7.52% 3.82% 1.22% 3.73% 1.76% 14.00% 11.14% 15.25% 9.28% 0% 4% 8% 12% 16% Bank CET1 Bank Leverage Bank TRBC Corp. TCE Effective AOCI Well-capitalized Reported 1Q24 Capital Ratios with Effective AOCI1 Impa
Slide 14: 2024 Outlook as originally presented in 4Q 2023 Supplement
14 3 2024 Outlook as originally presented in 4Q 2023 Supplement Loan Growth Mid-single digit growth; Increase market share due to favorable market position Deposit Growth Low-single digit growth; Broad-based growth across our businesses Net Interest Margin Range of 3.80% - 3.90%; NIM expected to pla
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 (dollars in thousands, except per share data) March 31, 2024 December 31, 2023 March 31, 2023 Calculation of tangible common equity ratio: Total Assets (GAAP) $ 20,579,248 $ 20,594,672 $ 20,319,290 Less: Goodwill and other intangible ass
Slide 18: Appendix: Non-GAAP Financial Information
18 Appendix: Non-GAAP Financial Information 1 Pre-tax adjustments include realized/unrealized gain/(loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS Cares Foundation Three Months
Slide 19: Appendix: Non-GAAP Financial Information
19 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 65,761 $ 63,908 $ 62,404 Plus: Tax effected amortization of intangibl