Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Investor Presentation (November 2014)
30 slides from Wsfs Financial's investor presentation, Nov 6, 2014
Slide 1: WSFS Financial Corporation
WSFS Financial Corporation WSFS bank) We Stand For Service®
Slide 2: Investor Relations contact information
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 302-571-7264 bsellers@wsfsbank.com www.wsfsbank.com Mark A. Turner Stephen A. Fowle Rodger Levenson President an
Slide 3: Forward-Looking Statements
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 finan
Slide 4: Quarter Highlights
Quarter Highlights Review of 4Q 2014 Results • 4Q 2014 results reflect continued core revenue growth • Core revenues increased $4.5 million or 8% over 4Q 2013 • Net interest income improved $3.7 million or 11% over 4Q 2013 • Core noninterest income increased $793,000 or 4% over 4Q 2013; stands at a
Slide 5: Quarter Highlights
Quarter Highlights • Capital levels remain strong, boosted by earnings and investment appreciation • Tangible common book value per share improved 3% to $45.89 and tangible common equity increased 15 basis points to 9.00% • Tier 1 leverage ratio was 10.25%, Tier 1 risk-based capital ratio was 12.79%
Slide 6: Recently completed combination with FNB of Wyoming (DE)
Recently completed combination with FNB of Wyoming (DE) Strategic Rationale: Consistent with WSFS’s strategic growth plan Size: Assets of $285MM; Loans $176MM; Deposits of $229MM; 6 Branches Enhances franchise in Kent County – from #6 to #2 (pro forma) in market share Diversifies revenue stream and
Slide 7: The WSFS Franchise
The WSFS Franchise • Largest independent bank and trust co. in the Delaware Valley Pennsylvania • $4.9 billion in assets • $9.9 billion in fiduciary assets, includes $1.2 billion in assets under management New Jersey • 55 offices • Founded in 1832, WSFS is one of the ten Maryland oldest banks in the
Slide 8: WSFS Bank
WSFS Bank Deposits of Traditional Banks in Delaware June 30, 2014* Rank Institution Branch Total Deposits Total Market CAGR Count in Market Share ‘08-’14 1 M&T Bancorp (NY) 41 5,672,018 29.41% 3.58% 2 PNC Financial Services Group (PA) 41 3,932,958 20.40% 10.11% 3 WSFS (DE)¹ 37 3,090,816 16.03% 11.52
Slide 9: WSFS Bank – Balance Sheet
WSFS Bank – Balance Sheet Asset Composition-December 31, 2014 Assets $4.9 Billion; Net Loans $3.2 Billion Comments Commercial Bank Assets Non- Earning 4Q 2014: Assets 6% • Commercial loans comprise 83% BOLI 2% C&I of the loan portfolio 54% • C&I (including owner-occupied real estate), the largest co
Slide 10: WSFS Bank – Balance Sheet
WSFS Bank – Balance Sheet Funding Composition-December 31, 2014 Customer Funding - $3.5 billion Comments Heavy Bias Towards Core: • Core customer funding comprises 85% of total customer funding • Non-interest and very low interest DDA (WAC 9bps) stands at 43% of total customer funding Equity 10% Swe
Slide 11: Wealth Management
Wealth Management CYPRESS WSFS Wealth Investments CAPITAL MANAGEMENT, LLC • Offers insurance and brokerage products • Focus on retail banking clients • Registered investment advisor offering a • $469,000 revenue in 4Q 2014 “balanced’ investment style focused on preservation of capital and current in
Slide 12: Cash Connect ®
Cash Connect ® • Leading provider of ATM vault cash, armored carrier management, cash forecasting services, insurance and equipment services • Adding ATM settlement services to existing managed service offering • Expanding ATM managed services from ISO market to FI market sector • Services non-bank
Slide 13: Fee Income Businesses
Fee Income Businesses Significant Growth in Fee Businesses 35% of Total Revenues* $80 $70 $60 $50 $40 $30 $20 $10 $0 2010 2011 2012 2013 2014 WSFS Bank* Cash Connect Wealth * Excludes security gains, reverse mortgage consolidation gains and BOLI gain 13
Slide 14: The WSFS Franchise
The WSFS Franchise Organizational Focus • Focus on increasing operating leverage and earnings • Continued credit quality improvement • Managing capital prudently and thoughtfully • Continuing strong alignment of management and owners • Goal – become solidly high performing (top quintile of p
Slide 15: Increasing Earnings
Increasing Earnings ROA Progression (1) Comments 1.40% Building Bottom Line Performance: 1.20% 1.00% • ROA trend has consistently 0.80% improved from a break-even year in 0.60% 2009 0.40% • 4Q 2014 Core ROA of 1.15% ahead of 0.20% 1.08% in 4Q 2013 0.00% • Goal of 1.20% -1.30% by end of 4Q 2010 2011
Slide 16: Increasing Earnings
Increasing Earnings Reflects Improved Credit Quality Comments $50 Provision and Credit Costs $40 • Decreased significantly, reflecting long term $30 trend in asset quality improvement and lower charge offs in 4Q 2014. $20 • Total Problem loans reduced significantly to $10 25.97% of Tier I Capital pl
Slide 17: Increasing Earnings
Increasing Earnings Improved Net Interest Income Comments $150 Net Interest Margin / Net Interest $140 Income $130 • Net interest income increased $3.7 million $120 or 11% over 4Q 2013 • Net Interest Margin of 3.78% improved 10 $110 basis points over 4Q 2013 $100 2010 2011 2012 2013 2014 Improving E
Slide 18: What happens when Rates go up?
What happens when Rates go up? NII NII BPS Change* % Impact $ Impact +100 (1)% $ (1.6) mm +200 2% $ +2.2 mm +300 4% $ +6.2 mm +400 7% $ +9.9 mm Balance Sheet Drivers • +100 Model results reflects impact of loan floors and WSFS prime • High % of variable/adjustable rate total loan portfolio: 66% • Hi
Slide 19: Credit Quality Continues to Improve
Credit Quality Continues to Improve Asset Quality Metrics Problem Loan Key Ratios Comments Improving credit quality trends: 90.0% 84.8% • NPAs were 1.08% of total assets at December 31, 2014 80.0% • Classified loans decreased to 21.3% 70.0% 63.9% of Tier 1 Capital + ALLL 60.0% • From a cycle–high of
Slide 20: Managing Capital
Managing Capital Bank-Level Capital Ratios (thousands) $600,000 $531,208 $550,000 $505,354 $500,000 $466,925 $434,301 $450,000 $409,034 $400,000 $350,000 $300,000 $250,000 12/10 12/11 12/12 12/13 12/14 Total Risk-Based Capital Well Capitalized Requirement Total Risk-Based Capital 13.62% 13.43% 14.29
Slide 21: Strong Alignment
Strong Alignment • Insider ownership is nearly 8%* • Board of Directors and Executive Management ownership guidelines in place • Executive management bonuses and equity awards based on bottom-line performance • ROA, ROTCE and EPS growth • 5% stock buyback authorization in place; repurchased 1% or 11
Slide 22: Path to High Performing – 2015 Goal
Path to High Performing – 2015 Goal Credit Costs Security Gains 1Q 2013 Baseline (1Q 2013 Normalized) 0.70% ROA 11 10 0.91% (as Reported) Net interest income 15 6 Fee income growth 20 Efficiency ratio 12 8 1 Credit costs 5 3 Tax rate 2 Goal (1Q 2013 Normalized + Planned Impacts) 1.20% 1.30% (with Po
Slide 23: Business Model and Total Shareholder Returns
Business Model and Total Shareholder Returns Focused Business Model • Consistently ranked in the top quintile of all • Gallup survey showed businesses surveyed * WSFS best among top players in market at • WSFS has been recog- delivering service * nized by The Wilmington News Journal as a “Top Workpl
Slide 24: Appendices
Financial Corporation Appendices
Slide 25: Appendix – Table of Contents
Appendix – Table of Contents Section Page # • Appendix 1 – Management Team 26-27 • Appendix 2 – Business Model 28 • Appendix 3 – Non-GAAP Financial Information 29-30 25
Slide 26: Appendix – Management Team
Appendix 1 – Management Team • Mark A. Turner, 52, has served as President and Chief Executive Officer since 2007. Mr. Turner was previously Chief Operating Officer and the Chief Financial Officer for WSFS. Prior to joining WSFS, his experience includes working at CoreStates Bank and Meridian Bancor
Slide 27: Appendix – Management Team
Appendix 1 – Management Team • Thomas W. Kearney, 67, Executive Vice President and Chief Risk Officer has been with WSFS since 1998. Mr. Kearney holds a Bachelor’s degree in Business Administration (Finance and Accounting) from Drexel University. He also holds the professional designations of Certif
Slide 28: Appendix – Business Model
Appendix 2 – Business Model 28
Slide 29: Appendix – Non-GAAP Financial Information
Appendix 3 – Non-GAAP Financial Information Pro forma EPS R ev M tg S e c urit ie s N o n- R o ut ine D e bt C o ns o lida t io n C o rpo ra t e F ra ud/ ( G a ins ) B O LI B ulk E xt inguis hm e nt G a in / T a x D e v e lo pm e nt Lit iga t io n P RBO P ro f o rm a EP S Lo s s e s Inc o m e S a le
Slide 30: Appendix – Non-GAAP Financial Information
Appendix 3 – Non-GAAP Financial Information Tangible common book value and equity to assets End of Period December 31, September 30, December 31, 2014 2014 2013 Total assets $ 4,853,320 $ 4,782,728 $ 4,442,656 Less: Goodwill and other intangible assets (57,593) (58,176) (39,541) Total tangible asset
WSFS Financial — Investor Presentation (November 2014) on 6ix