Wsfs Financial Corporation · NASDAQ:WSFS
Wsfs Financial — Q2 2020 Earnings Presentation
21 slides from Wsfs Financial's earnings presentation, Jul 23, 2020
Slide 1: WSFS Financial Corporation 2Q 2020 Earnings Supplement
Exhibit 99.2 WSFS Financial Corporation 2Q 2020 Earnings Supplement July 23, 2020
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures 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 inc
Slide 3: Table of Contents
Table of Contents 2Q 2020 Financial Highlights Page 4 PPP Loans Page 5 CECL Page 6 Credit Risk Management Page 7 Balance Sheet and Commercial Loan Composition Page 8 Hotel Portfolio Page 10 Food Services Portfolio Page 11 Retail Portfolio Page 12 2H 2020 Outlook Net Interest Margin Outlook Page 13 C
Slide 4: 2Q 2020 Financial Highlights
2Q 2020 Financial Highlights Solid Core operating performance with pre-provision net revenue (PPNR)1 at 1.96% of average assets Significant ACL reserve build, excess capital levels, and a $0.12 dividend approved in the quarter 2Q 2020 (1) • Core results include $94.8 million of provision expense red
Slide 5: PPP Loans
PPP Loans Nearly $1 billion of loans processed in 2Q 2020 supporting an estimated 100,000 jobs in our region PPP Loans as of June 30, 2020 PPP Loans by Size as of June 30, 2020 # of % of % of $ ($ in '000s) $ # of Loans Loan Size Loans total $ total # Construction $ 195,075 552 > $1M $358,764 175 39
Slide 6: CECL
CECL Economic Forecast Full Year GDP of -6.1% in 2020 and 6.3% in 2021 Economic Forecast Impact Year-end Unemployment of 9.3% in 2020 and 7.6% in 2021 Coverage*: 1.60% 2.73% ACL by Segment ACL Considerations • 2Q 2020 ACL increase of $93 million driven by: • Slower forecasted recovery in unemploymen
Slide 7: Credit Risk Management
Credit Risk Management Original Loan Modifications1 Loan # of % of Active Management of Payment Deferrals First Modification ($ in '000s) Balances Loans Portfolio CRE $ 700,889 624 32% • At least 75% of original loan modifications expected to revert to full C&I 636,426 1,165 32% contractual payment
Slide 8: Balance Sheet Composition at June 30, 2020
Balance Sheet Composition at June 30, 2020 Asset Composition Funding Composition Assets: $12.61 Billion; Net Loans: $8.31 Billion Customer Deposits: $10.8 Billion Time CRE, 25% Net Loans (ex PPP) 11% Non-interest Consumer, DDA 30% Customer Deposits 80% 65% 13% C&I, 39% Money Market & Savings 38% Int
Slide 9: Commercial Loan Portfolio (ex PPP) at June 30, 2020
Commercial Loan Portfolio (ex PPP) at June 30, 2020 C&I and Owner Occupied - $3.4 billion4 CRE Investor and Construction - $2.8 billion Real Estate Rental Special Use & Mixed Use, Flex, Warehouse, Well Diversified and Granular and Leasing, 10% Other, 8% 2% Self-Storage, Other, 20% General Industrial
Slide 10: Hotel Portfolio at June 30, 2020
Hotel Portfolio at June 30, 2020 • Risk-rating reviews completed for entire portfolio in 2Q 2020 Hotels (ex PPP)1 • 48% of balances Criticized at June 30, 2020 Loan Type Loan Average ($ in millions) Balances Loan Size • Approximately 60% of balances with original modification C&I/Owner-Occupied $422
Slide 11: Food Services Portfolio at June 30, 2020
Food Services Portfolio at June 30, 2020 • Approximately 50% of total portfolio, including majority of loans over $1 million, were reviewed in 2Q 2020 1 Food Services (ex PPP) • 13% of balances Criticized at June 30, 2020 Loan Type Loan Average • Approximately two-thirds of balances with original mo
Slide 12: Retail Portfolio at June 30, 2020
Retail Portfolio at June 30, 2020 Retail CRE (ex PPP) Retail Trade (ex PPP) Loan Type Loan Average Loan Type Loan Average ($ in millions) Balances Loan Size ($ in millions) Balances Loan Size C&I $116.0 $0.2 Total $741.3 $1.3 Owner Occupied $150.1 $0.6 • All large loans over $8 million and nearly ha
Slide 13: Net Interest Margin Outlook
Net Interest Margin Outlook • 2Q 2020 included full quarter impact of the March 150 4.75% 3.73% - 4.08% - bps Fed Fund rate decrease and negative 8 bps from 4.38% 3.93% 13 4.50% 3.83% 4.18% PPP; 1Q and 2Q 2020 included elevated purchase 0 accounting accretion (PAA) due to payoffs, which are 0.22% Ne
Slide 14: Core PPNR Outlook
Core PPNR1 Outlook $ in million’s 120.0 2.50% 2.36% • Outlook assumes no Fed rate changes and continued 1.93% - gradual reopening of the economy 100.0 1.98% 1.77% - 2.15% 1.98% 2.00% • Excluding PPP, core PPNR as a percentage of average 1.96% 1.66%- 1 80.0 1.70%- 1.83% assets is expected to decline
Slide 15: Capital Position
Capital Position Common Equity Tier-1 (CET1) Capital Ratio Scenario1 ACL Capacity1 Six Quarter PPNR Run-Rate and ACL Capacity to Remain “Well” Capitalized (Six Quarters Ending 4Q 2021) $ in millions 1 Common Equity Tier 1 Capital - 2Q20 $ 1,292 PPNR Run-Rate (after-tax)1 263 Dividend Run-Rate (36) C
Slide 16: 2Q 2020 Loan and Deposit Growth
2Q 2020 Loan and Deposit Growth Loans - 2Q'20 vs 1Q'20 and 2Q'19 Mar Jun 2Q'20 $ Annualized YOY $ YOY % ($ in millions) Jun 2020 2020 2019 Growth % Growth Growth Growth • We continue to execute our strategy to optimize our C & I Loans $ 3,354 $ 3,412 $ 3,421 $ (58) -7% (67) -2% PPP Loans 945 0 0 945
Slide 17: Appendix: Non-GAAP Financial Information
Appendix : Non-GAAP Financial Information
Slide 18: Appendix: 2Q 2020 Reported Financial Results
Appendix: 2Q 2020 Reported Financial Results 2Q 2020 • GAAP results for 2Q 2020 were significantly impacted by the continued $ in millions (expect per share amounts) impacts of COVID-19 and included $94.8 million (pre-tax), or $1.49 per share EPS ($0.14) (after-tax) of provision for credit losses du
Slide 19: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Three Months Ended Three Months Ended June 30, March 31, June 30, June 30, June 30 , March 31,2020 (dollars in thousands, except per share data) 2020 2020 2019 (dollars in thousands, except per share data) 2020 2019 Net interest income (GAAP) $ 113,756 $ 116,
Slide 20: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information $ in 000's 1Q'19 2Q'19 3Q'19 4Q'19 TTM 4Q'19 1Q'20 2Q'20 Net Income $ 12,930 $ 35,969 $ 53,595 $ 45,424 $ 147,918 $ 10,567 $ (7,811) Plus: Income Tax Provision 6,260 10,091 15,902 14,199 46,452 1,288 (2,247) Plus: Provision for Credit Losses 7,654 12,195 4,12
Slide 21: Investor Relations Contact
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 Dominic C. Canuso Chairman, Pres