Slide 1: WSFS Financial Corporation Investor Presentation December 2020
1 WSFS Financial Corporation Investor Presentation December 2020 Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Dated December 3, 2020 Registration No. 333 - 235572
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'
Slide 3: Table of Contents
3 Table of Contents Offering Summary Page 4 WSFS Franchise and Markets Page 5 Financial Highlights and Trends Page 8 Balance Sheet Composition and Credit Risk Management Page 12 Capital Trends and Interest Coverage Page 16 Lines of Business and Delivery Transformation Page 18 Appendix: Non - GAAP Fi
Slide 4: Offering Summary
4 Offering Summary Issuer: WSFS Financial Corporation (NASDAQ: WSFS) Security Type: 10NC5 Fixed - to - Floating Rate Senior Notes due 2030 Format: SEC Registered Principal Amount: $100 million Expected Ratings: A - by Kroll Bond Rating Agency Optional Redemption: Par Call Option After 5 Years and Th
Slide 5: The WSFS Franchise
5 1 As of 9/30/2020 The WSFS Franchise 1 • $13.8 billion in assets • $22.5 billion in fiduciary assets, including $2.7 billion in assets under management • 115 offices • One of largest ATM networks in our market with 635 branded - ATMs Founded in 1832, WSFS is one of the ten oldest banks in the U.S.
Slide 6: Regional Employment and Economy - Industry Breakdown
6 Education & Health Services 23% Trade, Transportation, & Utilities 18% Professional & Business Services 16% Government 12% Financial Activities 8% Leisure & Hospitality 7% Manufacturing 6% Other 10% Employment – Industry Breakdown ~10 - 20% higher income than the U.S. overall 1 Bureau of Labor Sta
Slide 7: The WSFS Franchise – Growth & Performance
7 7 The WSFS Franchise – Growth & Performance Millions 1 This is a non - GAAP financial measure 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
Slide 8: 3Q 2020 Financial Highlights
8 3Q 2020 $ in millions (expect per share amounts) Reported Core EPS $1.01 $1.00 1 Net Income attributable to WSFS $51.1 $50.7 1 PPNR 1 $68.7 $68.0 PPNR % 1 2.00% 1.98% ROA 1.49% 1.48% 1 ROE 11.08% 10.98% 1 ROTCE 1 16.61% 16.47% NIM 3.66% 3.66% Fee Income $49.2 $45.7 1 Fee Income % 2 30.3% 28.8% 1 E
Slide 9: YTD September 2020 Financial Highlights
9 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 Tax - equivalent YTD – September 2020 Financial Highlights • Core PPNR
Slide 10: Core Metrics – 5 Year Trend
10 Core PPNR % 1 Core Net Interest Margin 1 Core ROA 1 Core Fee Income % 1,2 Core Metrics – 5 Year Trend 1.14% 1.13% 1.21% 1.63% 1.61% 0.40% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2015 2016 2017 2018 2019 YTD'20 34.3% 34.6% 35.7% 35.9% 26.6% 26.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 3
Slide 11: Total Core Fee Income
11 $36 $40 $44 $46 $66 $59 $30 $36 $43 $51 $51 $31 $23 $27 $36 $41 $44 $36 34% 35% 36% 36% 27% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 2015 2016 2017 2018 2019 YTD'20 Total Core 1 Fee Income $ in Millions Trust & Wealth Cash Connect Bank Segment 27% 1 This is a non - GAAP financial measure and s
Slide 12: Balance Sheet Composition at September 30, 2020
12 Time 11% Non - interest DDA 28% Money Market & Savings 38% Interest DDA 22% Customer Funding increased $1.9 billion in 3Q 2020, as compared to 3Q 2019, primarily due to PPP loans and pandemic - related excess liquidity Balance Sheet Composition at September 30, 2020 C&I 38% CRE 25% Consumer 14% R
Slide 13: Credit Metrics (ex PPP)
13 0.0% 0.2% 0.3% 0.5% 0.6% 0.8% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 10% 20%
Slide 14: Credit Risk Management – Selected Portfolios
14 3 Credit Risk Management – Selected Portfolios Hotel Portfolio Retail Trade Portfolio Retail CRE Portfolio Food Services Portfolio 1 Portfolio values are gross loans excluding PPP as of September 30, 2020 2 Current exposure / most recent valuation 3 Essential includes grocery, pharmacy, liquor, g
Slide 15: Credit Risk Management - CECL
15 $47 $36 $55 $95 $233 $0 $50 $100 $150 $200 $250 12/31/2019 1/1/2020 CECL Adoption Migration and Other Impacts Economic Forecast 9/30/2020 -45% -35% -25% -15% -5% 5% 15% 25% 35% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 2Q Forecast 3Q Forecast 1 Hotel loan balances are included in the C&I and Constr
Slide 16: Capital Management - Bank
16 Capital Management - Bank Disciplined capital management providing flexibility to grow & return profits to shareholders 12.15% 13.04% 13.16% 12.54% 12.35% 11.19% 11.36% 12.69% 13.52% 13.41% 12.68% 13.24% 7.5% 8.5% 9.5% 10.5% 11.5% 12.5% 13.5% 350 550 750 950 1,150 1,350 1,550 Dec 2011 Dec 2012 De
Slide 17: Interest Coverage
17 Interest Coverage Interest Coverage Interest - Bearing Customer Deposit Costs 2015 2016 2017 2018 2019 Sept YTD'20 Core Deposit Cost 0.14% 0.17% 0.23% 0.42% 0.52% 0.27% Total Deposit Cost 0.25% 0.28% 0.37% 0.65% 0.82% 0.54% Actuals Proforma 1 Dollar Values in Thousands 2015 2016 2017 2018 2019 Se
Slide 18: Disciplined Credit and Underwriting Philosophy
18 Disciplined Credit and Underwriting Philosophy • Conservative lending and concentration limits • CRE 1 : 300%, 201% actual • Construction 2 : 100%, 58% actual • Concentration limits by industry, CRE, project and individual borrower • House Limit: $70 million at 9/30/2020 (1 Relationship) • 5 rela
Slide 19: Delivery Transformation: Branch, Online, Lending, Mortgage, COVID-19 Response
19 Branch & ATM Network Online & Mobile Banking Lending Mortgage COVID - 19 Response Locations across Delaware, southeastern Pennsylvania and southern New Jersey Over 130K active online banking users and over 80K active mobile banking users Providing Customers with a wide range of options to make ba
Slide 20: WSFS Wealth at September 30, 2020
20 WSFS Wealth at September 30, 2020 Private Banking Services for Commercial Customers Wealth Management Services for Retail Customers Financial Highlights 3Q 2020 Net Revenue: $16.1 million 3Q 2020 Pre - tax Income: $8.6 million $22.5 billion in fiduciary assets, including $2.7 billion in assets un
Slide 21: Cash Connect
21 • Oldest and second largest vault cash provider in the ATM industry - o ver $1.3 billion in vault cash supplied or supported at 9/30/2020 • Approximately 32,000 non - bank ATMs & retail safes in all 50 states 1 • ~8,000 devices utilizing armored car management and/or cash forecasting 1 • Support
Slide 22: NewLane Finance at September 30, 2020
22 NewLane Finance at September 30, 2020 Background: • Co - founded in 2017 by industry veterans who built Marlin Business Services from a start - up to a publicly - traded company (Nasdaq: MRLN) • WSFS owns ~83% of the Company Market Size: • Micro & Small Ticket Equipment Leasing is a $100 billion
Slide 23: Delivery Transformation: Recent Accomplishments
23 • Improved Branch NPS scores and expanding NPS surveys to Contact Center • Deeper adoption of MyWSFS to provide a personalized mobile experience; 45% QoQ increase in 3Q 2020 • Deployed Medallia © for real - time customer feedback from Branch and Contact Center • Expanded DocuSign © capabilities t
Slide 24: Appendix: Non-GAAP Financial Information
24 Appendix: Non - GAAP Financial Information
Slide 25: Appendix: Non-GAAP Information
25 Appendix: 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/Core net incom
Slide 26: Appendix: Non-GAAP Financial Information
26 Appendix: Non - GAAP Financial Information 1 Pre - tax adjustments include securities gains, realized/unrealized gains on equity investments, FHLB special dividends, corporat e development and restructuring expense, loss on early extinguishment of debt, and a one - time $3 million contribution to
Slide 27: Appendix: Non-GAAP Financial Information
27 Appendix: Non - GAAP Financial Information 1 For details on our core adjustments for full - year 2010 through 2019 refer to each years respective fourth quarter Earnings Rele ase filed at Exhibit 99.1 on Form 8 - K; For details on our core adjustments for YTD September 2020 refer to slide 25. (do
Slide 28: Appendix: Non-GAAP Financial Information
28 Appendix: Non - GAAP Financial Information 1 Pre - tax adjustments include securities gains, realized/unrealized gains on equity investments, FHLB special dividends, corporat e development and restructuring expense, loss on early extinguishment of debt, and contribution to WSFS Community Foundati