Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q4 2020 Earnings Presentation
14 slides from Wsfs Financial's earnings presentation, Jan 25, 2021
Slide 1: WSFS Financial Corporation 4Q 2020 Earnings Supplement
1 WSFS Financial Corporation 4Q 2020 Earnings Supplement1 January 25, 2021 1 4Q 2020 Earnings Release Supplement is for the purpose and use in conjunction with our Earnings Release furnished as Exhibit 99.1 to our Form 8-K on January 25, 2021 Exhibit 99.2
Slide 2: Forward Looking Statements
2 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 limitation, references to the Company's pr
Slide 3: Table of Contents
3 Table of Contents Financial Highlights Page 4 2021 Core Outlook Page 5 Net Interest Margin Trends and 2021 Outlook Page 6 Loan & Deposit Growth Page 7 Credit Risk Management ACL Page 8 Selected Portfolios Page 9 Appendix: Reconciliation of Non-GAAP Financial Information Page 10
Slide 4: Financial Highlights
4 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 Attributable to WSFS 3 Tax-equivalent Financial Highlights 4Q 2020 FY 202
Slide 5: 2021 Core Outlook
5 3 2021 Core Outlook Loan Growth Mid single digit growth excluding PPP and non-relationship run-off portfolios primarily driven by C&I, leasing and consumer; 90% of PPP loans assumed forgiven by 4Q 2021 and approximate $200M decline from run-off portfolios Deposit Growth Mid single digit core depos
Slide 6: Net Interest Margin Trends and 2021 Outlook
6 3.85% 3.58% 3.35% 3.36% 3.35% - 3.42% 0.31% 0.30% 0.28% 0.26% 0.24% - 0.28% 0.22% 0.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2021 Outlook NIM Ex PAA/PPP Modeled PAA Incremental PAA PPP 0.1 4.38% 3.93% 3.66% Negative 8 bps PPP impact Net Interest
Slide 7: Loan and Deposit Growth
7 Loan and Deposit Growth Positive loan growth excluding purposeful run-off portfolios and PPP; Significant excess customer liquidity continues • Continued focus on strategy to optimize our balance sheet mix towards relationship-based commercial loans and deposits • Customer funding levels remain el
Slide 8: Credit Risk Management - ACL
8 -45% -35% -25% -15% -5% 5% 15% 25% 35% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 3Q Forecast 4Q Forecast Coverage Ratio (ex PPP) 1 Source: Oxford Economics as of December 2020 2 Hotel loan balances are included in the C&I and Construction segments Credit Risk Management - ACL ACL by Segment (ex. PPP
Slide 9: Credit Risk Management – Select Portfolios
9 3 Credit Risk Management – Select Portfolios • Almost all loan modifications are making some form of payment as of December 31, 2020 • $524.6 million or 6.2% of loan portfolio1 • 49% Criticized; ~85% of loans include recourse; 100% secured by real estate • 65% business and 35% leisure • $667.6 mil
Slide 10: Appendix
10 Appendix: Non-GAAP Financial Information
Slide 11: Non-GAAP Information
11 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). The following are the non-GAAP measures used in this presentation: • Adjusted net income (non-GAAP) is a non
Slide 12: Appendix: Non-GAAP Reconciliation
12 Appendix: Non-GAAP Financial Information (dollars in thousands, except per share data) Net interest income (GAAP) $ 123,001 $ 113,048 $ 117,569 $ 465,955 Core net interest income (non-GAAP) $ 123,001 $ 113,048 $ 117,569 $ 465,955 Noninterest income (GAAP) $ 46,632 $ 49,171 $ 41,770 $ 201,025 Less
Slide 13: Appendix: Net Income and PPNR Reconciliation
13 Appendix: Non-GAAP Financial Information 1 Pre-tax adjustments include securities gains, net realized/unrealized gains on equity investments, recovery of fraud loss, corporate development and restructuring expense, loss on early extinguishment of debt, and a contribution to the WSFS Community Fou
Slide 14: Appendix: Return on Average Tangible Common Equity
14 Appendix: Non-GAAP Financial Information (dollars in thousands, except per share data) Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 59,813 $ 51,145 $ 45,704 $ 114,774 Plus: Tax effected amortization of intangible assets Net tangible income (no