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| 8-K - 8-K - WSFS FINANCIAL CORP | wsfs-20201104.htm |
Exhibit 99.1 WSFS Financial Corporation 3Q 2020 Investor Update November 2020 1
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 limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. The words “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to significant risks and uncertainties (which change over time) and other factors, including the uncertain effects of the COVID-19 pandemic and actions taken in response thereto on our business, results of operations, capital and liquidity, which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties are discussed in detail the Company's Form 10-K for the year ended December 31, 2019, Form 10-Q for the quarter ended March 31, 2020, Form 10-Q for the quarter ended June 30, 2020, and and other documents filed by the Company with the Securities and Exchange Commission from time to time. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date on which they are made, and the Company disclaims any duty to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company for any reason, except as specifically required by law. As used in this presentation, the terms "WSFS", "the Company", "registrant", "we", "us", and "our" mean WSFS Financial Corporation and its subsidiaries, on a consolidated basis, unless the context indicates otherwise. Non-GAAP Financial Measures: This presentation contains financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP measures include core earnings per share (“EPS”), core pre-provision net revenue (“PPNR”), PPNR, core PPNR to average assets ratio, PPNR to average assets ratio, core return on assets (“ROA”), core return on tangible common equity (“ROTCE”), ROTCE, core fee income and core fee income as a percentage of total core net revenue. The Company’s management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Company’s management believes that investors may use these non-GAAP measures to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. For a reconciliation of these non-GAAP measures to their comparable GAAP measures, see the Appendix. 2
Table of Contents 3Q 2020 Financial Highlights Page 4 Loan & Deposit Growth Page 6 Core Fee Income Trends Page 7 Credit Risk Management CECL Page 8 Loan Modifications Page 9 Selected Portfolios Page 10 NIM Trends & 4Q Outlook Page 11 Core PPNR Trends & 4Q Outlook Page 12 Capital Position Page 13 WSFS Franchise & Markets Page 14 Delivery Transformation and Lines of Business Page 20 Selected Financial Information Page 28 Appendix: Reconciliation of Non-GAAP Financial Information Page 36 3
3Q 2020 Reported Financial Highlights 3Q 2020 $ in millions (expect per share amounts) GAAP WSFS 3Q 2020 GAAP included the following items that are excluded from Core results: EPS 1.01 • WSFS realized $3.3 million (pre-tax), or approximately $0.05 per share (after-tax), in net gains on Net Income $51.1 sales of securities compared to no amounts realized in 3Q 2019 PPNR1 $68.7 • WSFS recorded net unrealized gains on our equity investments of $0.1 million (pre-tax) related to our investment in Visa Class B shares, compared with $22.1 million or approximately $0.35 per PPNR %1 1.98% share, in realized gains from the sale of 360,000 Visa Class B shares in 2Q 2020. Since our adoption ROA 1.49% of ASU 2016-01 in 1Q 2018, cumulative realized and unrealized gains on Visa Class B shares total $78.1 million on a total portfolio investment of $17.7 million ROE 11.08% • WSFS recorded $0.4 million (pre-tax), or approximately $0.01 per share (after-tax), of corporate ROTCE1 16.61% development expenses related to our acquisition of Beneficial Bancorp, Inc. (Beneficial), compared NIM 3.66% with $18.9 million (pre-tax), or approximately $0.27 per share (after-tax), of corporate development and restructuring expenses in 3Q 2019. The merger-to-date amounts are less than Fee Income/Total Revenue2 30.3% our original expectations Efficiency Ratio 57.6% • WSFS recorded $2.3 million (pre-tax), or approximately $0.03 per share (after-tax), of loss ACL Coverage Ratio ex PPP 2.74% associated with prepayment fees from the termination of fixed rate FHLB term advances as part of routine balance sheet and liquidity management. The termination of these fixed rate term Loan to Deposit Ratio 83% advances is expected to be accretive to net interest income in future periods Common Equity Tier 1 Capital 13.24% 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. 4 2 Tax-equivalent
3Q 2020 Core Financial Highlights Solid operating performance with PPNR1 at 1.98% of average assets reflecting diversified business model Significant ACL reserve, strong capital levels, and the approved resumption of share repurchases in 4Q 2020 3Q 2020 • Core PPNR1 of $68.0 million increased $4.4 million, or 7%, from 2Q 2020 reflecting positive core operating leverage $ in millions (except per share amounts) Core • Core fee income1 increased $5.3 million, or 13%, compared to 2Q 2020, despite a $3.2 million negative EPS1 $1.00 impact due to Durbin Amendment (effective July 2020). Solid growth across several areas, including PPNR1 $68.0 mortgage, trust services, non-interchange related core banking fees, and Cash Connect® 1 PPNR % 1.98% • Modest provision expense of $2.7 million while maintaining a strong allowance for credit losses (“ACL”) ROA1 1.48% coverage ratio of 2.74% excluding Paycheck Protection Program (“PPP”) loans and 3.22% including estimated credit mark on acquired loans. Short-term loan deferrals reduced to 3% of total portfolio at October 15, 2020 ROTCE1 16.47% NIM 3.66% • Loans grew $95.5 million, or 5% on an annualized basis during the quarter and $254 million, or 4% year-over- year, excluding PPP loans, ACL, and purposeful run-off portfolios Fee Income/Total Revenue1,2 28.8% Customer funding levels remain elevated and increased $364 million, or 13% on an annualized basis, during Efficiency Ratio1 57.1% • the quarter and $1.9 billion, or 20%, compared to 3Q 2019 primarily due to PPP loans and the current ACL Coverage Ratio (ex. PPP) 2.74% economic environment Loan to Deposit Ratio 83% • Board approved the resumption of share repurchases in 4Q 2020 under current authorization of 15% of Common Equity Tier 1 Capital 13.24% outstanding shares and a $0.12 quarterly cash dividend to be paid in November 2020 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. 5 2 Tax-equivalent
Loan and Deposit Growth Positive loan growth excluding purposeful run-off portfolios; Significant excess customer liquidity continues Loans - 3Q 2020 vs 2Q 2020 and 3Q 2019 Deposits - 3Q 2020 vs 2Q 2020 and 3Q 2019 Sep Jun Sep 3Q20 $ Annualized YOY $ YOY % Sep Jun Sep 3Q20 $ Annualized YOY $ YOY % ($ in millions) 2020 2020 2019 Growth % Growth Growth Growth ($ in millions) 2020 2020 2019 Growth % Growth Growth Growth C & I Loans $3,300 $3,354 $3,389 ($54) (6%) ($89) (3%) Noninterest Demand $3,197 $3,188 $2,269 $9 1% $928 41% PPP Loans $954 $945 $0 $9 4% $954 100% Interest Demand Deposits $2,521 $2,303 $2,177 $218 38% $344 16% Commercial Mortgages $2,167 $2,166 $2,263 $1 0% ($96) (4%) Savings $1,718 $1,732 $1,563 ($14) (3%) $155 10% Construction Loans $666 $639 $512 $27 17% $154 30% Money Market $2,489 $2,333 $1,952 $156 27% $537 28% Commercial Leases $228 $213 $171 $15 28% $57 33% Total Core Deposits $9,925 $9,556 $7,961 $369 15% $1,964 25% Total Commercial Loans $7,315 $7,317 $6,335 ($2) (0%) $980 15% Customer Time Deposits $1,224 $1,228 $1,330 ($4) (1%) ($106) (8%) Residential Mortgage (HFS/HFI/Rev Mgt) $1,003 $1,012 $1,117 ($9) (4%) ($114) (10%) Total Customer Deposits $11,149 $10,784 $9,291 $365 13% $1,858 20% Consumer Loans $1,169 $1,133 $1,144 $36 13% $25 2% Total Gross Loans $9,487 $9,462 $8,596 $25 1% $891 10% • Continued focus on strategy to optimize our loan mix towards Residential Mortgage (HFI) $845 $895 $1,035 ($50) (22%) ($190) (18%) relationship-based, higher yielding commercial loans Student Loans Acquired from BNCL $118 $119 $129 ($1) (3%) ($11) (9%) Auto Loans Acquired From BNCL $27 $33 $28 ($6) (72%) ($1) (4%) • Excluding PPP loans, ACL, and purposeful run-off portfolios, loans Participation portfolios (CRE) from BNCL $147 $169 $247 ($22) (52%) ($100) (40%) Leveraged Loans (C&I) from BNCL $12 $12 $27 $0 0% ($15) (56%) increased $95.5 million, or 5% on an annualized basis, compared to 2Q Total Run-Off Portfolios $1,149 $1,228 $1,466 ($79) (26%) ($317) (22%) 2020 and $254 million, or 4% year-over-year Gross Loans ex Run-Off Portfolios $8,338 $8,234 $7,130 $104 5% $1,208 17% PPP Loans $954 $945 $0 $9 4% $954 100% • Customer funding levels remain elevated and increased $364 million, or Gross Loans ex Run-Off & PPP Portfolios $7,384 $7,289 $7,130 $95 5% $254 4% 13% on an annualized basis during the quarter and 1.9 billion, or 20%, compared to 3Q 2019, primarily due to PPP loans and the current economic environment 6
Core Fee Income1 Trends Diversified Business Model Drives Core Fee Income Growth Through 3Q 2020 $50 25.3%2 27.0%2 30.0%2 Core Fee Income % (excluding PPP) Millions $45 $3 $40 $8 • Core fee income is well diversified with over $5 $5 20 discrete lines of business and products $35 within our three core segments: Banking, $6 Wealth, and Cash Connect® $30 $8 $12 • Provides strong PPNR stability through $25 $3 $8 interest rate cycles $20 $10 • 3Q 2020 increased $5.3 million, or 13%, $12 $15 $9 compared to 2Q 2020, despite Durbin impact (effective July 2020), diversified across all $10 major areas $13 $5 $11 $11 $- 1Q20 2Q20 3Q20 4 Wealth & Trust Cash Connect Mortgage Other Banking 3 Credit/Debit 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 for GAAP results. See Appendix for reconciliation to GAAP financial information. 2 Core Fee (non-interest) income / total net revenue excluding PPP. See Appendix for reconciliation to GAAP financial information. 3 Other banking includes deposit service charges, SBA loan sales, loan and lease fees, and other banking related fees 7 4 Credit/Debit includes Interchange and Other Fee income
Credit Risk Management - CECL 2 F/Y GDP forecast of (3.7%) in 2020 and 3.7% in 2021 Considerations & Components for 3Q 2020 ACL Y/E Unemployment forecast of 8.8% in 2020 and 6.6% in 20212 GDP Growth by Quarter Unemployment by Quarter • Coverage ratio of 2.74% excluding PPP loans and 3.22% including 35% 15% estimated remaining credit mark on the acquired loan portfolio 25% 13% • Modest reserve build of $0.5 million in 3Q 2020 driven by: 15% 11% 5% • Portfolio migration largely consistent with expectations; -5% 9% remaining targeted portfolio reviews completed in 3Q 2020 -15% 7% • Core loan growth offset by intentional portfolio run-off and net -25% charge offs 5% -35% • No significant economic forecast changes -45% 3% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Components of 3Q 2020 ACL Economic 2Q Forecast 3Q Forecast 2Q Forecast 3Q Forecast $300 Forecast Impact (in millions) ACL by Segment $250 $232 $233 January 1, 2020 March 31, 2020 June 30, 2020 September 30, 2020 $200 -$2 $3 ($ millions) $ % $ % $ % $ % C&I1 $40.3 1.99% $62.3 2.96% $133.1 6.81% $137.8 7.24% $150 Construction1 $4.6 0.78% $5.2 0.82% $10.1 1.59% $10.2 1.54% $100 CRE Investor $9.1 0.41% $26.6 1.19% $38.4 1.77% $34.3 1.58% Owner Occupied $3.2 0.24% $9.4 0.72% $9.0 0.67% $10.4 0.77% $50 Leases $2.0 0.77% $3.6 1.34% $11.1 5.20% $10.7 4.70% Mortgage $8.9 0.90% $11.6 1.22% $9.2 1.03% $8.4 1.00% $0 HELOC & HEIL $9.4 1.27% $12.6 1.69% $10.8 1.43% $11.2 1.41% 6/30/2020 NCO Net Growth/Other 9/30/2020 Installment - Other $3.8 3.82% $4.4 5.17% $6.9 6.58% $5.6 5.55% Other $1.9 0.33% $3.4 0.81% $3.6 0.90% $4.1 1.04% 2.73% 2.74% TOTAL $83.2 0.96% $139.1 1.60% $232.2 2.73% $232.7 2.74% Coverage Ratio (ex PPP) 1 Hotel loan balances are included in the C&I and Construction segments 2 Source: Oxford Economics as of September 2020 8
Credit Risk Management – Loan Modifications As of October 15, 2020, loan modifications declined to 3% of total loan portfolio Loan Modifications Commercial Loan Modifications by Sector As of October 15, 2020 As of October 15, 2020 1 1 ($ in millions) Loan Balances % of Portfolio ($ in millions) Loan Balances % of Portfolio C&I $ 94.0 5% Hotel $ 81.7 16% CRE $ 53.0 2% Retail $ 50.1 5% Owner Occupied $ 9.8 1% Real Estate Rental & Leasing $ 6.8 0% Construction $ 1.7 0% Other Services $ 5.8 2% Total Commercial $ 158.5 3% Food Services $ 5.1 3% Health Care and Social Assistance $ 2.6 1% Residential Mortgage $ 35.0 4% Construction $ 0.5 0% Education2 $ 23.7 3 10% All Other $ 5.9 0% Consumer $ 14.5 2% Total Commercial $ 158.5 3% Leases $ 0.2 0% Credit Cards $ 0.1 1% Total Consumer $ 73.5 3% Total Loan Modifications $ 232.0 3% • 88% of original payment modifications have reverted to full contractual payments as of October 15, 2020 • 82% of remaining total modifications are under 90 days or less terms as of October 15, 2020 • 56% of remaining total modifications (82% of remaining Commercial modifications) include at least interest payments as of October 15, 2020 1 Portfolio values are as of September 30, 2020 and exclude PPP loans 2 Approximately 75% of the loan balances include U.S. government-guaranteed student loans that carry little risk of credit loss 9
Credit Risk Management – Selected Portfolios Hotel Portfolio Retail CRE Portfolio $516.9 million; 6.1% of loan portfolio1 $734.3 million; 8.6% of loan portfolio1 • 48% of balances Criticized • 7% of balances Criticized • $5.8 million average loan balance size • $1.2 million average loan balance size • 76% of loans include recourse; 100% secured by real estate • 65% of relationships, $5 million or more, include recourse • Conservative underwriting with current weighted average • No outstanding loan balances to indoor shopping malls; LTV of ~55%2 limited exposure to power centers • 65% Business and 35% Leisure • 49% of portfolio is anchored by essential3 businesses • Diversified across 8+ states (43% PA, 21% NJ, and 15% DE) 3 Food Services Portfolio Retail Trade Portfolio $183.4 million; 2.1% of loan portfolio1 $266.9 million; 3.1% of loan portfolio1 • 31% of balances Criticized • 10% of balances Criticized • $325 thousand average loan balance size • $271 thousand average loan balance size • ~80% of loans include recourse • 90% of loans include recourse • ~50% of loans secured by real estate • 77% of portfolio is anchored by essential3 businesses 1 Portfolio values are gross loans excluding PPP as of September 30, 2020 2 Current exposure / most recent valuation 10 3 Essential includes grocery, pharmacy, liquor, general merchandise, bank branch, gas/vehicle/convenience, home improvement, and government
Net Interest Margin Trends and 4Q Outlook NIM impacted by rate environment, PPP forgiveness timing, purchase accretion volatility and excess customer liquidity 4.75% • 2Q & 3Q 2020 included full quarter impact of the 150 bps Fed Fund rate decrease and negative 8 bps 4.50% from PPP loans 4.38% 0. • 3Q 2020 included 14 bps of negative impact 4.25% 0.22% Negative 8 bps PPP impact 3.70% - resulting from excess customer funding; compared 3.93% 3.80% to 5 bps in 2Q 2020 and 0 bps in 1Q 2020; 4Q 2020 4.00% 0.31% Outlook of ~15bps Positive 4 bps 3.66% PPP Impact • 4Q Outlook reflects 4 bps from PPP loans with 3.75% 0.30% ~20% of PPP loans estimated to be forgiven plus core margin growth from continued increase in 3.50% 0.28% 0.26% 3.85% deposit betas offset by lower purchase accounting accretion 3.25% 3.58% 3.35% 3.38% • Deposit and Loan betas are ~25-30% for down rate 3.00% cycle 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Outlook • Weighted average total Customer funding cost NIM Ex PAA/PPP Modeled PAA Accretion Incremental PAA Accretion PPP of 28 bps in 3Q 2020 (35 bps in 2Q 2020) 11
Core PPNR1 Trends and 4Q 2020 Outlook Solid Core PPNR Results Despite Challenging Rate Environment $140 2.50% 2.36% • 4Q 2020 Outlook assumes continued gradual Millions 2.36% $120 1.96% 1.98% reopening of the economy, and PPP net income 1.80% - 2.05% 2.00% growth from ~20% of PPP loans forgiven during 1.98% 1.94% $100 the quarter 1.72% - 1.87% 1.50% $80 • Excluding PPP loans, core PPNR and core PPNR as $5.9 1 $3.0 $7 - $10 a percentage of average assets are expected to $60 decline in 4Q 2020 due primarily to the following: 1.00% • Lower seasonal mortgage revenue and $40 expected decline in refinancing volume $71.5 $60.5 $62.0 $55 - $60 0.50% • Lower incremental purchase loan accretion $20 • Modest increase in expenses due to franchise investments $- 0.00% 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1 1 1 PPNR - Core (ex PPP) PPP PPNR % Assets (ex PPP) PPNR % Assets 1 These are 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. 12
Capital Position Strong Capital Levels and PPNR1 Run-Rate Result in Significant Capital Return Opportunity1 Bank Common Equity Tier-1 (CET1) Capital Ratio Scenario2 Five Quarters Ending 4Q 2021 16% • PPNR (after-tax) run-rate2 provides approximately 42 bps of CET1 per quarter. After estimated routine dividends 2.11% -0.29% -0.30% 14.76% 14% and stressed ACL scenario, the Bank has approximately 4Q21 $485 million or 476 bps of excess capital above our 10% 12% Proforma internal target 3 10% • ACL scenario reflects most conservative scenario under 10.00% the Federal Reserve’s guidance issued in September 2020 WSFS and applied to our internal CECL modeling; excess capital 8% Target levels and strong PPNR provide opportunity to return 13.24% 6% 6.50% capital to stockholders • Quarterly cash dividend of $0.12 per share of common 4% Well stock to be paid November 2020 Capitalized • Board approved the resumption of share repurchases in 2% 4Q 2020 under current authorization of approximately 15% of outstanding shares 0% 2 3 3Q 2020 PPNR (net of Tax) Dividends ACL Scenario 4Q 2021 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 Assumed PPNR Run-Rate reflects 4Q 2020 Outlook on page 11 extended at $55M per quarter in 2021. 13 3 ACL scenario based on most conservative scenario under the Federal Reserves “ Supervisory Scenarios for the Resubmission of Capital Plans in the Fourth Quarter of 2020” issued in September 2020
WSFS Franchise & Markets 14
The WSFS Franchise Founded in 1832, WSFS is one of the ten oldest banks in the U.S. Largest independent bank & trust company HQ in Delaware-Greater Philadelphia region1 • $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 Major Business Lines Commercial Retail Mortgage Regional Presence Cash Equipment Wealth National Presence Connect® Leasing 1 As of 9/30/2020 15
The WSFS Franchise - Our Markets Philadelphia-Camden-Wilmington MSA Regional Employment Composition1 Regional Statistics3 Diversity of industries drives stable and favorable employment and economic growth in our markets Employment – Industry Breakdown 6.1M 2.3M 38.9 Population Households Median Age 7.9% Unemployment2 • Consistent with Over 4% of U.S. within branch network Trade, Transportation, & overall U.S. Utilities 18% • 45% improvement Education & Health $264K 67% Services since 2Q 2020 peak 2.5M 23% Median Housing Owner Professional & Housing Units Business Services Home Value Occupied 16% ~10% higher household value than the U.S. overall Other 10% Purchasing $74.5KAvg Income $40.9K $27.69 Government power vs. 12% Mean Hourly Manufacturing Median Home Per Capita US 6% 4 Leisure & Financial Income Income Wage Hospitality Activities 7% 8% ~10-20% higher income than the U.S. overall 1 Bureau of Labor Statistics: Employees on nonfarm payrolls by industry supersector, Philadelphia-Camden-Wilmington MSA, not seasonally adjusted; September 2020 2 Unemployment rate for the Philadelphia-Camden-Wilmington MSA. Preliminary, not seasonally adjusted; September 2020 3 U.S. Census Bureau: 2019 American Community Survey; Philadelphia-Camden-Wilmington MSA 16 4 Bureau of Labor Statistics: Occupational Employment and Wages, Philadelphia-Camden-Wilmington, MSA; May 2019
The WSFS Franchise – Strategic Opportunity At $13.8 billion in assets at 09/30/2020, WSFS fills a long-standing service gap in our market between larger regional/national banks and smaller community banks MSA: Philadelphia-Camden- Regional Highlights2 Wilmington1 • 4th largest metro in the Northeast –$444 2020 billion regional economy Ne t De posits Market De posits / Branch # Institution Name th ($mm) Share % Branch ($mm) Count • 6 largest MSA population in the U.S 1 Wells Fargo Bank $35,311 16.7% $196.2 180 • 4th largest depository MSA in the U.S. 2 TD Bank $32,871 15.6% $236.5 139 3 Bank of America $22,412 10.6% $287.3 78 4 PNC Bank $20,752 9.8% $141.2 147 5 Citizens Bank $19,346 9.2% $119.4 162 1 6 M & T Bank $10,891 5.2% $242.0 45 WSFS Highlights 7 WSFS Bank $9,680 4.6% $125.7 77 8 Santander Bank $6,966 3.3% $96.8 72 9 Truist Bank $5,852 2.8% $80.2 73 • 45% YOY improvement in branch efficiency 10 Univest Bank and Trust $4,317 2.0% $134.9 32 (deposits per branch) 11 Bryn Mawr Trust $4,081 1.9% $99.5 41 • 12 Fulton Bank $3,933 1.9% $74.2 53 11% YOY deposit growth 13 Republic First Bank $3,425 1.6% $126.9 27 • 79 institutions with ~$355M average 14 Firstrust Savings Bank $3,138 1.5% $184.6 17 deposits outside of MSA’s top 15 15 KeyBank $2,230 1.06% $62.0 36 Remaining 79 Institutions $28,026 13.3% $81.5 344 1 Sources: FDIC and S&P Global Market Intelligence. Market Share data excludes brokered deposits, credit unions, and non-traditional banks (e.g. credit card companies); as of June 30, 2020. Philadelphia-Camden-Wilmington MSA (includes Cecil County, MD) 17 2 Sources: U.S Bureau of Economic Analysis, U.S. Census Bureau, Select Greater Philadelphia Council, U.S Bureau of Labor Statistics. Philadelphia-Camden-Wilmington MSA (includes Cecil County, MD)
The WSFS Franchise – Growth & Performance Millions 18 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 for GAAP results. See Appendix for reconciliation to GAAP financial information 18
Business Model and Total Shareholder Returns Engaged Associates, living our culture, making a better life for all we serve “Top Workplace” fifteen #1 “Top Bank” in Delaware nine years in “Soaring 76’s Fastest Growing years in a row and #1 in a row; The News Journal Companies”; Philadelphia Business 2020; The News Journal Journal 2020 Annual World’s Best Banks & Customer engagement survey places “Top Workplace” six years in a row; America’s Best Banks honoree; Forbes WSFS at the 84th percentile1 Inquirer.com 68% of WSFS Customers surveyed rated “Best of Biz” for Business us a “5” out of 5, saying “WSFS is the 2020 Gallup Culture Transformation Banking; South Jersey Magazine perfect bank for people like me”1 Award; Gallup Organization Top quartile of all businesses Total Shareholder Returns2 1 surveyed ; Gallup Organization 1 Year 3 Year 5 Year 7 Year 10 Year WSFS -38.0% -42.8% -1.8% 42.9% 137.4% “Best Community Involvement”; SNL U.S. Bank > $10B -31.6% -26.9% 6.2% 26.8% 83.8% DE Small Business Chamber NASDAQ Bank -28.6% -30.9% 1.8% 26.3% 90.1% KBW Bank -24.3% -19.7% 19.2% 38.3% 97.3% S&P 500 15.1% 41.5% 93.7% 130.5% 262.2% 1 Completed by the Gallup Organization, as of December 31, 2019 2 Per Bloomberg; closing price as of September 30, 2020 19
Delivery Transformation and Lines of Business 20
Delivery Transformation Optimizing physical footprint through consolidation of 25% (30) of retail offices; investing savings into our digital capabilities, consistent with our brand, to provide best-in-industry solutions and better serve our Customers • 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 Recent • Deployed Medallia© for real-time customer feedback from Branch and Contact Center Accomplishments • Expanded DocuSign© capabilities to improve turnaround time and document retention across the enterprise • Executed multichannel target marketing campaigns with positive customer engagement • Expanding nCino©; streamlined underwriting process, increased operational efficiencies, and scale • Piloting Salesforce© in Wealth, Commercial, and Mortgage; driving Customer and revenue growth Current Projects • Implementing MuleSoft© to improve data systems and technology stack flexibility • Delivering a true omnichannel experience from Account Opening through Customer lifecycle • Full Year Gross Investment: ~$15 million • Full Year Net Investment: ~$9 million Financials • 2020 investment consistent with original expectations • Increased adoption and usage of digital channels aligns with our strategy 21
Channel Strategy & Digital Adoption Channel Volumes1 200% 186% 172% • Branch Net Promoter Score (NPS) improved in Q3 and 175% 166% 162% 159% remains strong at 72.9. Contact Center Net Promotor 150% 141% 128% Score (NPS) was introduced for the first time in Q3 and 123% 115% 125% 111% was 58.1. Surveys are conducted utilizing Medallia 102% 105% 105% 100% 105% 99% 96% 95% 100% 92% 100% 92% 83% 69% • Since COVID-19 pandemic, WSFS supported consistent 75% 66% 66% 65% 67% 58% volumes of total deposit transactions with a significant 50% shift from physical to mobile 25% 0% • Increased digital and remote banking volume 2019 Avg Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Branch Transactions Contact Center Call Handled Mobile Deposits demonstrates versatile and adaptable channel strategy, while managing a significant increase in contact center MyWSFS Adoption and Usage Growth2 volume due to COVID-19 impact and relief programs 9,000 7,500 , launched in 2019, offers a secure 6,000 • MyWSFS mobile 4,500 application that enables communication directly and in Conversations (Cumulative) real-time with a WSFS Associate to support Customer’s 3,000 Adoptions (Cumulative) 1,500 banking needs from any location - 03/01/20 04/01/20 05/01/20 06/01/20 07/01/20 08/01/20 09/01/20 1 Chart reflects monthly volume in 2020 indexed to average monthly 2019 volume 2 Chart reflects cumulative growth since COVID-19 and through September 30, 2020 22
Commercial Banking Local, relationship-focused lending including cash management, wealth management, and private banking services Business Banking Middle Market Comm. Real Estate Small Business SBA Lending Revenues: Revenues: Revenues: Revenues: Profit: $3 million - $20 million+ $20 million-$150 million N/A $250,000 - $5 million+ Up to $5 million Loan Exposure: Loan Exposure: Loan Exposure: Loan Exposure: Loan Exposure: $1 million – $15 million+ $5 million – $30 million+ $3 million – $30 million+ up to $1.5 million up to $5 million Average Relationship Average Relationship Average Relationship Average Loan Average Loan Exposure: Exposure: Exposure: Exposure: Exposure: $2.1 million $6.0 million $7.6 million $0.1 million $0.2 million 35 Relationship Managers 6 Relationship Managers 15 Relationship Managers 17 Relationship Managers 7 Relationship Managers Disciplined Credit and Underwriting Philosophy In Delaware and Pennsylvania, WSFS Bank ranks 1st in Overall Satisfaction, Values Long-Term Relationships, • Conservative lending and concentration limits Overall Satisfaction with Relationship Manager, • CRE1: 300%, 201% actual Responsiveness and Prompt Follow-up on Requests, • Construction2: 100%, 58% actual Knowledge of Cash Management Services, Provides Advice to Help Business Grow and Effectively Coordinates Product • Concentration limits by industry, CRE, project and individual borrower Specialists among commercial businesses surveyed. • House Limit: $70 million at 9/30/2020 (1 Relationship) • 5 relationships >$50 million Source: 2019 Greenwich Associates Market Tracking Program (WSFS - Total Footprint Plus Oversample - $1-500MM - FY 2019) 1 Defined as the sum of CRE and Construction (excluding owner occupied) exposures divided by the sum of Tier 1 Capital and ACL; as of 9/30/20 2 Defined as Construction (excluding owner occupied) exposure divided by the sum of Tier 1 Capital and ACL; as of 9/30/20 23
Retail Banking Relationship-focused community banking model with 90 banking offices & 635 ATMs Branch & ATM COVID-19 Online & Mobile Banking Lending Mortgage Network Response Offering a full range of Our Associates, Locations across Over 130K active online Providing Customers with Meeting Customers’ mortgage products with Customers, and Delaware, southeastern banking users and over a wide range of options to borrowing needs through national capabilities, Communities health, well- Pennsylvania and 80K active mobile banking make banking simple, in-house originations and world-class service and being and safety remains southern New Jersey users intuitive and seamless strategic partnerships local-decision making our top priority Highly rated mobile Operates universal Deposit Products: Consumer Loan Products: banking application that During the quarter we banking model to • Noninterest DDA • Installment Significant contributor to provides a range of completed the phased maximize staffing • Interest DDA • HELOC fee income through our functionality including reopening of our retail efficiencies while • Savings • Personal Lines originate and sell WSFS SnapShot Deposit, network with appropriate providing a superior • Money Market • Credit Cards mortgage model Zelle®, MyWSFS and safety measures Customer experience • Time Deposits • Student Loans WSFS Mobile Cash 68% of WSFS Customers Voted #1 “Top Bank” in surveyed rated us a “5” out of 5, Delaware nine years in a row by saying “WSFS is the perfect bank readers of The News Journal for people like me.”1 1 Completed by the Gallup Organization; as of December 31, 2019 24
Cash Connect® Leading National Provider of Cash Logistics • Oldest and second largest vault cash provider in the ATM industry - over $1.3 billion in vault cash supplied or supported at 9/30/2020 ATM Vault Cash • Approximately 32,000 non-bank ATMs & retail safes in all 50 states1 “Bailment” 1 WSFS • ~8,000 devices utilizing armored car management and/or cash forecasting Smart Branded 1 Safes • Support ~80 ATM ISOs and ~800 deposit safe customers ATMs • Supports 6351 branded ATMs for WSFS Bank; one of the largest networks in our footprint • $10.2 million in net revenue (fee income less funding costs) and $3.1 million in pre-tax Armored Loss Carrier income in 3Q 2020 Protection Management Fees • 3Q 2020 ROA of 2.37% Dollars Managed ($mm)1 Cash 2 $1,600 Forecasting & • 5-year CAGR for net Reconcilement revenue of 9.57% Services $1,200 • 41% growth in dollars managed since 2018 $800 $1,389 $1,246 $979 An innovation center for the company, both expanding core ATM $400 offerings and additional payment, processing and software-related activities (i.e. launched WSFS Mobile Cash) $0 2018 2019 YTD'20 1 As of 09/30/2020 2 5 years ending 9/30/2020 25
NewLane Finance Micro & Small Ticket Commercial Equipment Financing 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 Attractive Risk Adjusted Margins Market Size: • Micro & Small Ticket Equipment Leasing is a $100 billion segment with over 100 thousand Simple, Fast and Convenient Offer equipment dealers and 31 million small businesses nationwide Product Offering: Superior Customer Experience • Lease/Loan to finance business critical equipment Small and Mid-Size Business Market Focus • Deal size ranges from $3,000 - $500,000; average deal size approximately $20,000 • Yields range 6%-25% with terms 12-72 months Vendor Relationship Model • Stable credit default risk and minimal residual exposure Leasing Originations ($mm) Advanced Technology Platform $40 $32 $24 Value Proposition: $36 • Provide a better lending experience through advanced $16 $31 technologies, customer-centric approach and transparent $8 business lending practices $11 • Deliver simple, fast, & competitive financing solutions $- 2018 2019 YTD'201 1 as of 9/30/20 26
WSFS Wealth Full-Service, Relationship-based Wealth Management 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 under management at 9/30/2020 Private Banking Services for Commercial Customers Wealth Management Services for Retail Customers 27
Selected Financial Information 28
Diversified & Robust Fee Income $180 27% 2 $160 Trust & Wealth 2 Cash Connect 36% • Core Fee income is well diversified with $140 $44 over 20 discrete products and services Bank Segment 2 36% within our lines of business $120 $41 2 35% $36 $100 2 • Strong historical growth in each segment; 34% Fee income Fee $27 $51 5-year CAGR: 1 $80 $23 • Trust & Wealth: 19% $ $ in Millions $51 $43 • Cash Connect: 15% $60 $36 Total Core Total $30 • Bank: 15% $40 • Total: 16% $66 $44 $46 $20 $36 $40 $0 2015 2016 2017 2018 2019 1 This is a non-GAAP financial measures and should be considered along with results prepared in accordance with GAAP, and not as a substitute for GAAP results. See Appendix for reconciliation to GAAP financial information. 2 %s represent core fee (noninterest) income / total net revenue. 29
Interest Rate Risk1 at September 30, 2020 WSJ Prime @ 3.25% 12-Month including PPP 12-Month excluding PPP BPs change NII Impact (%) NII Impact ($) NII Impact (%) NII Impact ($) -100 (1.3%) ($5.5 million) (1.2%) ($4.9 million) -50 (1.1%) ($4.8 million) (1.0%) ($4.2 million) -25 (0.7%) ($2.8 million) (0.6%) ($2.4 million) Static Base +25 1.0% $4.5 million 1.0% $4.1 million +50 2.1% $9.2 million 2.0% $8.3 million +100 4.4% $19.1 million 4.2% $17.4 million • High % of variable/adjustable rate to total loan portfolio: 50% excluding PPP • Approximately half of variable rate loans tied to 30-day LIBOR Balance Sheet • High % core deposits: 89%; high % non-interest bearing and low-interest DDA: 51% Drivers • Solid brand and position / WSFS is a market “price leader” • Assumes long-term historical deposit beta of approximately 50% 1 WSFS IRR model estimates: Static Balance Sheet / Instantaneous Rate Shocks 30
Credit (exCredit Metrics PPP) 3 2 1 Ratio of quarterly net charge One large $15.4 million, highly non- Includes 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 10% 20% 30% 40% 50% accruing loans accruing 1Q15 1Q15 2Q15 2Q15 Criticized& Classified Loans 3Q15 3Q15 4Q15 4Q15 - offs to average gross loans - seasonal relationship that was exited in 3Q 2016 2016 3Q in was exited that relationship seasonal 1Q16 1Q16 2Q16 2Q16 Classified Loans Classified 3Q16 NPAsTotal/ Assets 3Q16 4Q16 4Q16 1Q17 1Q17 2Q17 2Q17 3Q17 3Q17 4Q17 4Q17 1Q18 1Q18 2Q18 2Q18 Tier / Criticized Loans 3Q18 3Q18 4Q18 4Q18 - 1 + ACL + 1 1Q19 1Q19 2Q19 2Q19 3Q19 3Q19 4Q19 4Q19 1Q20 1Q20 48.78% 0.32% 2Q20 2Q20 32.34% 3Q20 3Q20 0.0% 0.2% 0.3% 0.5% 0.6% 0.8% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1Q15 1Q15 2Q15 2Q15 3Q15 Delinquencies 3Q15 4Q15 4Q15 1Q16 1Q16 Delinquencies 2Q16 2Q16 3Q16 3Q16 Net Charge Net 4Q16 Large Relationship 4Q16 1Q17 1Q17 2Q17 2Q17 3Q17 3Q17 1 / Gross Loans 4Q17 - 4Q17 2 Offs 1Q18 1Q18 2Q18 Loans Student Govt. Guaranteed 3 2Q18 3Q18 3Q18 4Q18 4Q18 1Q19 1Q19 2Q19 2Q19 3Q19 3Q19 4Q19 4Q19 1Q20 1Q20 2Q20 0.07% 2Q20 00.92% 3Q20 3Q20 31
Capital Management - Bank Disciplined capital management providing flexibility to grow & return profits to shareholders Tier 1 Capital Common Equity Tier 1 Capital 13.52% 1,550 13.52% 1,550 13.16% 13.41% 13.24% 13.16% 13.41% 13.24% 13.5% 12.68% 13.5% 12.68% 12.15% 1,350 12.15% 12.35% 1,350 12.35% 12.5% 11.36% 12.5% Millions 11.36% Millions 13.04% 13.04% 1,150 12.54% 1,150 12.54% 12.69% 11.5% 12.69% 11.5% 950 950 11.19% 10.5% 11.19% 10.5% 750 750 9.5% 9.5% 550 8.5% 550 8.5% 350 7.5% 350 7.5% Dec Dec Dec Dec Dec Dec Dec Dec Dec Mar Jun Sep Dec Dec Dec Dec Dec Dec Dec Dec Dec Mar Jun Sep 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2020 2011 2012 2013 2014Tier2015 1 Leverage2016 2017 Ratio 2018($000s)2019 2020 2020 2020 Tier 1 Capital Tier 1 Capital Ratio Common Equity Tier 1 Capital Common Equity Tier 1 Capital Ratio Tier 1 Leverage Ratio Total Risk Based Capital 14,000 1,600 14.29% 14.53% 14.50% 14.5% 14.5% 11.85% 1,400 13.56% 13.37% 12,000 14.36% Millions Millions 12.5% 13.5% 10.82% 14.01% 13.93% 10.52% 10.31% 1,200 11.93% 10,000 9.83% 9.66% 13.40% 11.72% 10.5% 12.5% 1,000 13.15% 10.35% 10.72% 10.40% 8,000 8.5% 11.5% 9.28% 9.73% 800 12.08% 6,000 6.5% 600 10.5% 4,000 4.5% 400 9.5% Dec Dec Dec Dec Dec Dec Dec Dec Dec Mar Jun Sep Dec Dec Dec Dec Dec Dec Dec Dec Dec Mar Jun Sep 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2020 Average Assets (QTD) Tier 1 Leverage Ratio Total Capital Total Risk Based Capital Ratio 32
Share Buyback & Dividends – Recent History $120,000 $0.50 $0.47 $0.45 $0.42 $100,000 ) $0.40 $0.36 000s $0.35 $80,000 $0.30 $0.30 $0.25 $60,000 $0.25 $0.21 $0.20 $40,000 $0.15 Capital Returned ($ in ($ Returned Capital $0.10 $20,000 Annual Dividends Paid per Share $0.05 $- $- 1 2015 2016 2017 2018 2019 YTD'20 Dividends Routine buybacks Incremental buybacks Annual Dividend Per Share (dollars in 000s) 2015 2016 2017 2018 2019 YTD’20201 Total Capital Returned $ 37,606 $ 22,061 $ 21,165 $ 44,419 $ 113,780 $50,938 Total Shares 1,152,233 449,371 255,000 691,742 2,132,390 1,004,348 Repurchased Note: 2015 adjusted to reflect 3 for 1 stock split in May 2015 1 as of 9/30/20 33
Strong Alignment / Capital Management • Executive management bonuses and equity awards based on bottom-line performance ROA, ROTCE and EPS growth – equally weighted • Insider ownership1 is approximately 2% Board of Directors and Executive Management ownership guidelines in place and followed • The Board of Directors approved the resumption of share repurchases In 4Q 2020, the Board approved the resumption of share repurchases, under the Board authorization approved in 1Q 2020, that allows for the purchase of 15% of outstanding shares • The Board of Directors approved a quarterly cash dividend of $0.12 per share of common stock which is scheduled to be paid in November 2020 1 As defined in our most recent proxy 34
WSFS Mission, Vision, Strategy, & Values 35
Appendix: Non-GAAP Financial Information 36
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-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of securities gains, unrealized gains and corporate development costs; • Core noninterest income, also called core fee income, is a non-GAAP measure that adjusts noninterest income as determined in accordance with GAAP to exclude the impact of securities gains and realized/unrealized gains on equity investments; • Core earnings (loss) per share is a non-GAAP measure that divides (i) adjusted net income (non-GAAP) by (ii) weighted average shares of common stock outstanding for the applicable period; • Core net revenue is a non-GAAP measure that is determined by adding core net interest income plus core fee income; • Core noninterest expense is a non-GAAP measure that adjusts noninterest expense as determined in accordance with GAAP to exclude corporate development and restructuring expenses, loss on early extinguishment of debt and contribution to WSFS Community Foundation; • Core efficiency ratio is a non-GAAP measure that is determined by dividing core noninterest expense by the sum of core interest income and core fee income; • Core return on average assets (ROA) is a non-GAAP measure that divides (i) adjusted net income (non-GAAP) by (ii) average assets for the applicable period; • Core operating leverage is a non-GAAP measure that subtracts (i) periodic change in core noninterest expense growth from (ii) periodic change in core net revenue growth; • Tangible common equity is a non-GAAP measure and is defined as total average stockholders’ equity less goodwill, other intangible assets. Return on average tangible common equity (ROTCE) is a non-GAAP measure and is defined as net income allocable to common stockholders divided by tangible common equity; and • Tangible common book value per share is a non-GAAP measure that is equal to common equity less goodwill and intangible assets, divided by total shares outstanding. • Pre-provision net revenue (PPNR) is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of income tax provision (credit) and provision for credit losses. 37
Appendix: Non-GAAP Financial Information Three Months Ended September 30, September 30, (dollars in thousands, except per share data) 2020 June 30, 2020 March 31, 2020 2019 Net interest income (GAAP) $ 113,048 $ 113,756 $ 116,150 $ 120,833 Core net interest income (non-GAAP) $ 113,048 $ 113,756 $ 116,150 $ 120,833 Noninterest income (GAAP) $ 49,171 $ 64,375 $ 40,847 $ 62,346 Less: Securities gains 3,322 1,908 693 — Less/(plus): Unrealized gains (losses) on equity investments, net 104 (11) 668 21,344 Less: Realized gain on sale of equity investment, net — 22,052 — — Core fee income (non-GAAP) $ 45,745 $ 40,426 $ 39,486 $ 41,002 Core net revenue (non-GAAP) $ 158,793 $ 154,182 $ 155,636 $ 161,835 Core net revenue (non-GAAP) (tax-equivalent) $ 159,068 $ 154,513 $ 155,905 $ 162,135 Noninterest expense (GAAP) $ 93,540 $ 93,435 $ 88,496 $ 109,561 Less: Corporate developement expense 428 2,801 1,341 10,517 Less: Restructuring expense — — — 8,360 Less: Loss on early extinguishment of debt 2,280 — — — Less: Contribution to WSFS Community Foundation — — 3,000 — Core noninterest expense (non-GAAP) $ 90,832 $ 90,634 $ 84,155 $ 90,684 Core efficiency ratio 57.1 % 58.7 % 54.0 % 55.9 % Core fee income as a percentage of total core net revenue (tax-equivalent) 28.76 % 26.16 % 25.33 % 25.29 % PPP income 6,373 4,836 — — Core fee income as a percentage of total core net revenue excl. PPP income(tax-equivalent) 29.96 % 27.01 % 25.33 % 25.29 % 38
Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands, except per share data) September 30, 2020 June 30, 2020 March 31, 2020 September 30, 2019 GAAP net income (loss) attributable to WSFS $ 51,145 $ (7,111) $ 10,927 $ 53,882 Plus/(less): Pre-tax adjustments1 (718) (21,148) 2,980 (2,467) (Plus)/less: Tax impact of pre-tax adjustments 264 4,712 (2,020) 590 Adjusted net (loss) income (non-GAAP) attributable to WSFS $ 50,691 $ (23,547) $ 11,887 $ 52,005 Net income (loss) (GAAP) $ 50,823 $ (7,811) $ 10,567 $ 53,595 Plus/(less): Income tax provision (benefit) 15,140 (2,247) 1,288 15,902 Plus: Provision for credit losses 2,716 94,754 56,646 4,121 PPNR (Non-GAAP) 68,679 84,696 68,501 73,618 Plus/(less): Pre-tax adjustments1 (718) (21,148) 2,980 (2,467) Core PPNR (Non-GAAP) $ 67,961 $ 63,548 $ 71,481 $ 71,151 GAAP return on average assets (ROA) 1.49 % (0.22)% 0.36 % 1.72 % Plus/(less): Pre-tax adjustments1 (0.02) (0.65) 0.10 (0.08) (Plus)/less: Tax impact of pre-tax adjustments 0.01 0.14 (0.07) 0.02 Core ROA (non-GAAP) 1.48 % (0.73)% 0.39 % 1.66 % Earnings (loss) per share (GAAP) $ 1.01 $ (0.14) $ 0.21 $ 1.02 Plus/(less): Pre-tax adjustments1 (0.01) (0.42) 0.06 (0.05) (Plus)/less: Tax impact of pre-tax adjustments — 0.10 (0.04) 0.01 Core earnings (loss) per share (non-GAAP) $ 1.00 $ (0.46) $ 0.23 $ 0.98 1 Pre-tax adjustments include securities gains, realized/unrealized gains on equity investments, corporate development and restructuring expense, loss on early extinguishment of debt, and contribution to WSFS Community Foundation. 39
Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands, except per share data) September 30, 2020 June 30, 2020 March 31, 2020 September 30, 2019 Calculation of return on average tangible common equity: GAAP net income (loss) attributable to WSFS $ 51,145 $ (7,111) $ 10,927 $ 53,882 Plus: Tax effected amortization of intangible assets 2,090 2,198 2,103 2,113 Net tangible income (loss) (non-GAAP) 53,235 (4,913) 13,030 55,995 Average stockholders' equity of WSFS 1,836,256 1,842,525 1,835,501 1,842,759 Less: average goodwill and intangible assets $ 561,505 $ 564,622 $ 567,695 $ 574,253 Net average tangible common equity $ 1,274,751 $ 1,277,903 $ 1,267,806 $ 1,268,506 Return on average tangible common equity (non-GAAP) 16.61 % (1.55)% 4.13 % 17.51 % Calculation of core return on average tangible common equity: Adjusted net income (loss) (non-GAAP) attributable to WSFS $ 50,691 $ (23,547) $ 11,887 $ 52,005 Plus: Tax effected amortization of intangible assets 2,090 2,198 2,103 2,113 Core net tangible income (loss) (non-GAAP) $ 52,781 $ (21,349) $ 13,990 $ 54,118 Net average tangible common equity $ 1,274,751 $ 1,277,903 $ 1,267,806 $ 1,268,506 Core return on average tangible common equity (non-GAAP) 16.47 % (6.72)% 4.44 % 16.93 % 1 Pre-tax adjustments include securities gains, realized/unrealized gains on equity investments, corporate development and restructuring expense, loss on early extinguishment of debt, and contribution to WSFS Community Foundation. 40
Appendix: Non-GAAP Financial Information $ in 000's 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 TTM 4Q'19 Calculation of core PPNR: Net income (loss) (GAAP) $ 50,823 $ (7,811) $ 10,567 $ 45,424 $ 53,595 $ 35,969 $ 12,930 $ 147,918 Plus/(less): Income tax provision (benefit) 15,140 (2,247) 1,288 14,199 15,902 10,091 6,260 46,452 Plus: Provision for credit losses 2,716 94,754 56,646 1,590 4,121 12,195 7,654 25,560 Plus/(less): Pre-tax adjustments1 (718) (21,148) 2,980 5,419 (2,467) 14,731 27,176 44,859 Core PPNR (Non-GAAP) $ 67,961 $ 63,548 $ 71,481 $ 66,632 $ 71,151 $ 72,986 $ 54,020 $ 264,789 Calculation of core PPNR to average assets, less PPP: PPP income 6,373 4,836 — — — — — — PPP expense (442) (1,814) — — — — — — PPP net income 5,931 3,022 — — — — — — Core PPNR (Non-GAAP), less PPP $ 62,030 $ 60,526 $ 71,481 $ 66,632 $ 71,151 $ 72,986 $ 54,020 $ 264,789 Total average assets $ 13,647,993 $ 13,020,715 $ 12,159,524 $ 12,226,162 $ 12,418,420 $ 12,122,966 $ 9,099,176 $ 11,466,681 Average assets (PPP) 952,640 727,377 — — — — — — Average assets, less PPP $ 12,695,353 $ 12,293,338 $ 12,159,524 $ 12,226,162 $ 12,418,420 $ 12,122,966 $ 9,099,176 $ 11,466,681 Core PPNR to average assets 1.98 % 1.96 % 2.36 % 2.16 % 2.27 % 2.41 % 2.41 % 2.31 % Core PPNR to average assets, less PPP 1.94 % 1.98 % 2.36 % 2.16 % 2.27 % 2.41 % 2.41 % 2.31 % 1 For detail on our core adjustments for 3Q'20, 2Q'20 and 3Q’19 refer to our Earnings Release filed at Exhibit 99.1 to our October 22, 2020 8-K filing. For detail on our core adjustments for 1Q’20, 4Q’19, and 1Q’19, refer to our Earnings Release filed at Exhibit 99.1 to our April 27,2020 8-K filing. For detail on our core adjustments for 2Q'19, refer to our Earnings Release filed at Exhibit 99.1 to our July 22,2019 8-K filing. 41
Appendix: Non-GAAP Financial Information For the year ended December 31, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net Income (GAAP) $ 14,117 $ 22,677 $ 31,311 $ 46,882 $ 53,757 $ 53,533 $ 64,080 $ 50,244 $ 134,743 $ 148,809 Plus/less core adjustments (after-tax) 420 (2,664) (11,546) (4,290) (4,632) 4,407 4,323 32,597 (20,436) 36,295 Adjusted net income (nonGAAP) $ 14,537 $ 20,013 $ 19,765 $ 42,592 $ 49,125 $ 57,940 $ 68,403 $ 82,841 $ 114,307 $ 185,104 Average Assets $ 3,796,166 $ 4,070,896 $ 4,267,358 $ 4,365,389 $ 4,598,121 $ 5,074,129 $ 6,042,824 $ 6,820,471 $ 7,014,447 $ 11,477,856 Core ROA 0.38% 0.49% 0.46% 0.98% 1.07% 1.14% 1.13% 1.21% 1.63% 1.61% For the year ended December 31, 2015 2016 2017 2018 2019 Net Int Income (as reported) $ 166,800 $ 193,745 $ 221,271 $ 246,474 $ 444,948 Adj: FHLB Dividend (808) Core Net Int Inc $ 165,992 $ 193,745 $ 221,271 $ 246,474 $ 444,948 Noninterest Inc (as reported) $ 88,255 $ 105,061 $ 124,644 $ 162,541 $ 188,109 Adj: Securities Gains (1,478) (2,369) (1,984) (21) (333) Adj: Less: Gain on sale of Visa Class B shares (20,745) (26,175) Adj: Unrealized gains on equity investment (3,757) Core Nonint Inc $ 86,777 $ 102,692 $ 122,660 $ 138,018 $ 161,601 Net Revenue $ 252,769 $ 296,437 $ 343,931 $ 384,492 $ 606,549 Core Fee Income % 34% 35% 36% 36% 27% 42
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, President and CEO Chief Financial Officer 302-571-7296 302-571-6833 rlevenson@wsfsbank.com dcanuso@wsfsbank.com 43