false000082894400008289442024-01-252024-01-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

January 25, 2024
Date of Report
(Date of Earliest Event Reported) 
WSFS Financial Corporation
(Exact Name of Registrant as Specified in its Charter)
 
Delaware001-3563822-2866913
(State or Other Jurisdiction
of incorporation)		(SEC Commission
File Number)		(IRS Employer
Identification Number)
500 Delaware Ave,
Wilmington, Delaware, 19801
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (302) 792-6000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareWSFSNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 40.12b-2).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operation and Financial Condition

On January 25, 2024, WSFS Financial Corporation (the “Registrant”) issued a press release to report earnings for the quarter ended December 31, 2023. A copy of the press release is furnished with this Form 8-K as Exhibit 99.1.

This information (including Exhibit 99.1) is being furnished under Item 2.02 hereof and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosures

The attached presentation contains information that the members of the Registrant's management will use during visits with investors, analysts, and other interested parties to assist their understanding of the Registrant from time to time throughout the first quarter of 2024. Other presentations and related materials will be made available as they are presented during the year. A copy of the earnings release supplement is furnished with this Form 8-K as Exhibit 99.2.

This information (including Exhibit 99.2) is being furnished under Item 7.01 hereof and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference into any filing under the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Other Exhibits
(d) Exhibits.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized.

 
WSFS FINANCIAL CORPORATION
Date:January 25, 2024By: /s/ Arthur J. Bacci
  Arthur J. Bacci
Executive Vice President, Chief Wealth Officer and Interim Chief Financial Officer


wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
1
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
EXHIBIT 99.1
FOR IMMEDIATE RELEASEInvestor Relations Contact: Andrew Basile
(302) 504-9857; abasile@wsfsbank.com
January 25, 2024Media Contact: Rebecca Acevedo
(215) 253-5566; racevedo@wsfsbank.com

WSFS REPORTS 4Q 2023 EPS OF $1.05 AND ROA OF 1.25%;
REFLECTS STRONG DEPOSIT AND FEE REVENUE GROWTH, NIM OF 3.99%;
FULL YEAR EPS OF $4.40 AND ROA OF 1.33%

Wilmington, DE — WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today announced its financial results for the fourth quarter of 2023.
Selected financial results and metrics are as follows:
(Dollars in millions, except per share data)4Q 20233Q 20234Q 202220232022
Net interest income$178.1 $182.6 $193.9 $725.1 $662.9 
Fee revenue87.2 72.7 64.9 289.9 260.1 
Total net revenue265.3 255.3 258.8 1,015.0 923.0 
Provision for credit losses24.8 18.4 13.4 88.1 48.1 
Noninterest expense147.6 139.7 132.9 561.6 574.3 
Net income attributable to WSFS
63.9 74.2 84.4 269.2 222.4 
Pre-provision net revenue (PPNR)(1)
117.7 115.6 125.9 453.3 348.7 
Earnings per share (EPS) (diluted)1.05 1.22 1.37 4.40 3.49 
Return on average assets (ROA) (a)1.25 %1.45 %1.69 %1.33 %1.09 %
Return on average equity (ROE) (a)11.1 12.6 15.7 11.7 9.3 
Fee revenue as % of total net revenue32.8 28.4 25.0 28.5 28.1 
Efficiency ratio55.6 54.6 51.2 55.2 62.1 
See “Notes”
GAAP results for the quarterly periods shown included items that are excluded from core results. Below is a summary of the financial effects of these items.
4Q 20233Q 20234Q 2022
(Dollars in millions, except per share data)Total (pre-tax)Per share (after-tax)Total (pre-tax)Per share (after-tax)Total (pre-tax)Per share (after-tax)
Fee revenue$9.2 $0.11 $(0.8)$0.01 $(0.6)$0.01 
Noninterest expense7.9 0.09 0.1 — 0.8 0.01 
Income tax(2)
7.1 0.12 (0.2)— (0.3)0.01 



(1) As used in this press release, PPNR is a non-GAAP financial measure that adjusts net income determined in accordance with GAAP to exclude the impacts of (i) income tax provision and (ii) provision for credit losses. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.
(2) Income tax impacts are presented on an after-tax basis.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
2
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
CEO Commentary
Rodger Levenson, Chairman, President and CEO, said, "Our fourth quarter operating results reflect the continued optimization of the significant franchise investments leveraging our unique competitive market positioning and diverse business mix. Core EPS(3) of $1.15 and core ROA(3) of 1.36% were driven by growth in deposits and loans as well as record core fee revenue.
"During the quarter, we also realized the benefits of our consumer partnership strategy and recognized a gain from our equity in Spring EQ. A portion of these proceeds were allocated to a contribution of $2.0 million to the WSFS CARES Foundation. We continue to invest in the success of our local communities, consistent with our strategy of “Engaged Associates, living our culture, enriching the Communities we serve."
"We enter 2024 with momentum and a continued focus on franchise growth and capitalizing on the opportunities in our market. I'd like to extend a sincere thank you to our over 2,200 Associates for a highly successful 2023 as they continue to serve our Customers and deliver on our mission: "We Stand for Service."








(3) As used in this press release, core EPS and core ROA are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
3
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Notable Items in the Quarter (all excluded from core results):
•Recorded a $9.5 million gain from our investment in Spring EQ, a digital home equity origination platform, reflecting the strength of our partnership strategy. Through our partnership with Spring EQ, we continue to grow our consumer loan portfolio.
•We contributed $2.0 million (pre-tax), or $0.02 per share (after-tax) to the WSFS CARES Foundation to enhance community support activities.
•Recorded an income tax charge of $7.1 million from our decision to surrender $65.5 million of previously acquired Bank Owned Life Insurance (BOLI) policies. This resulted from recent changes in the interest rate environment lowering our yields on these long-term assets and the termination of a stable value protection wrap policy. We expect to deploy the net proceeds from the surrender into higher yielding interest-earning assets or payoff wholesale funding.
•Recorded a $5.1 million expense for the FDIC Special Assessment charged to recover losses to the Deposit Insurance Fund related to the closures of certain banks in 2023.





wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
4
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Highlights for 4Q 2023: 
•Core EPS was $1.15 compared to $1.23 for 3Q 2023.
•Core ROA was 1.36% compared to 1.46% for 3Q 2023.
•Customer deposits increased by $525.1 million, or 3% (13% annualized) for the quarter, driven by a $297.3 million increase in trust deposits, $122.5 million in commercial banking and $89.4 million in consumer deposits.
•Core fee revenue (noninterest income)(4) was a record $78.0 million, an increase of $4.6 million, or 6% (not annualized), compared to 3Q 2023.
•Net interest margin of 3.99% compared to 4.08% for 3Q 2023, reflects increasing deposit costs, partially offset by higher loan yields.
•Gross loan growth of 1% (3% annualized) from 3Q 2023 driven primarily by growth in commercial mortgage and our consumer partnerships.
•Total net credit costs were $25.4 million, driven by higher provision on our NewLane and Upstart portfolios, which accounted for 66% of provision costs for the quarter. The ACL coverage ratio was 1.35%, an increase of 7bps from 3Q 2023.
•WSFS Bank capital ratios remain significantly above "well-capitalized" levels, with total risk-based capital of 14.97% and Common Equity Tier 1 of 13.72%.
•WSFS repurchased 241,000 shares of common stock at an average price of $39.39 per share, totaling an aggregate of $9.5 million. The Board of Directors also approved a quarterly cash dividend of $0.15 per share. During the year, WSFS repurchased 1,247,178 shares of common stock, or 2% of shares outstanding, at an average price of $41.52 per share, returning $51.8 million of capital to shareholders.







(4) As used in this press release, core fee revenue (noninterest income) is a non-GAAP financial measure. This non-GAAP financial measure excludes certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
5
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Fourth Quarter 2023 Discussion of Financial Results
Balance Sheet
The following table summarizes loan and lease balances and composition at December 31, 2023 compared to September 30, 2023 and December 31, 2022:
Loans and Leases
(Dollars in millions)December 31, 2023September 30, 2023December 31, 2022
Commercial & industrial (C&I)$4,443 35 %$4,590 37 %$4,408 37 %
Commercial mortgage3,801 30 3,646 29 3,351 28 
Construction1,036 8 1,043 8 1,044 9 
Commercial small business leases624 5 606 5 559 5 
Total commercial loans and leases9,904 78 9,885 79 9,362 79 
Residential mortgage882 7 873 7 782 7 
Consumer2,012 16 1,957 15 1,811 15 
Gross loans and leases12,798 101 %12,715 101 %11,955 101 %
ACL(186)(1)(176)(1)(152)(1)
Net loans and leases$12,612 100 %$12,539 100 %$11,803 100 %
At December 31, 2023, WSFS’ gross loan and lease portfolio increased 83.5 million, or 1% (3% annualized), when compared with September 30, 2023 due to increases of $155.5 million in commercial mortgage, $55.1 million in consumer loans, primarily from Spring EQ home equity loans, and $17.9 million in commercial small business leases, partially offset by a decrease of $146.5 million in C&I as strong originations were outpaced by elevated payoffs and paydowns.
In line with our 2022-2024 Strategic Plan, the C&I portfolio (including owner-occupied real estate) continued to be our largest portfolio at 35% of net loans and leases. Additionally, our total commercial loan and lease portfolio continues to represent a majority of our lending portfolio at 78% of net loans and leases.
Gross loans and leases at December 31, 2023 increased $843.8 million, or 7%, when compared with December 31, 2022. The increase was driven by increases of $450.1 million in commercial mortgage, $201.2 million in consumer loans, primarily from Spring EQ, $100.9 million in residential mortgage, $64.6 million in commercial small business leases, and $35.5 million in C&I.


wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
6
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
The following table summarizes customer deposit balances and composition at December 31, 2023 compared to September 30, 2023 and December 31, 2022:
Customer Deposits
(Dollars in millions)
December 31, 2023September 30, 2023December 31, 2022
Noninterest demand$4,917 30 %$4,913 31 %$5,739 36 %
Interest-bearing demand2,936 18 3,028 19 3,347 21 
Savings1,610 10 1,681 10 2,162 13 
Money market5,175 31 4,560 29 3,731 23 
Total core deposits14,638 89 14,182 89 14,979 93 
Customer time deposits1,784 11 1,715 11 1,102 7 
Total customer deposits$16,422 100 %$15,897 100 %$16,081 100 %
Total customer deposits increased $525.1 million, or 3% (13% annualized), when compared with September 30, 2023, primarily driven by a $297.3 million increase in trust deposits, $122.5 million in commercial banking and $89.4 million in consumer deposits.
Customer deposits increased by $341.4 million from December 31, 2022 primarily driven by $236.6 million higher trust deposits.
Our deposit base remains highly diverse, with more than half of our customer deposits, or 55%, from our Commercial, Small Business, Wealth and Trust customer relationships. The loan to deposit ratio(5) was 77% at December 31, 2023, reflecting continued capacity to fund future loan growth.
Core deposits were a strong 89% of total customer deposits, and no- and low-cost checking accounts represented a robust 48% of total customer deposits at December 31, 2023, with a weighted average cost of 40bps for the quarter.






(5) Ratio of net loans and leases to total customer deposits.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
7
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Net Interest Income
Three Months Ending
(Dollars in millions)
December 31, 2023September 30, 2023December 31, 2022
Net interest income before purchase accretion$174.8 $178.8 $190.0 
Purchase accounting accretion3.3 3.8 3.8 
Net interest income
$178.1 $182.6 $193.9 
Net interest margin before purchase accretion3.92 %4.00 %4.40 %
Purchase accounting accretion0.07 0.08 0.09 
Net interest margin
3.99 %4.08 %4.49 %
Net interest income decreased $4.5 million, or 2% (not annualized), compared to 3Q 2023 and decreased $15.8 million, or 8%, compared to 4Q 2022, primarily due to increasing deposit costs.
Total loan yields were 7.02%, an increase of 10bps compared to 3Q 2023. Total customer deposit costs were 1.62%, an increase of 24bps compared to 3Q 2023 and customer interest-bearing deposit costs were 2.35%, an increase of 30bps compared to 3Q 2023.
Net interest margin decreased 9bps from 3Q 2023 and decreased 50bps from 4Q 2022, primarily due to the reason noted above.


wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
8
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Asset Quality
The following table summarizes asset quality metrics as of and for the period ended December 31, 2023 compared to September 30, 2023 and December 31, 2022.
(Dollars in millions)December 31, 2023September 30, 2023December 31, 2022
Problem assets(6)
$555.7 $543.4 $462.1 
Nonperforming assets75.8 57.8 43.4 
Delinquencies101.9 110.8 61.2 
Net charge-offs14.7 14.3 7.7 
Total net credit costs (recoveries) (r)25.4 18.2 13.0 
Problem assets to total Tier 1 capital plus ACL23.44 %23.61 %21.44 %
Classified assets to total Tier 1 capital plus ACL17.29 16.11 14.29 
Ratio of nonperforming assets to total assets0.37 0.29 0.22 
Ratio of nonperforming assets (excluding accruing TDRs) to total assets— — 0.12 
Delinquencies to gross loans (n)0.80 0.87 0.51 
Ratio of quarterly net charge-offs to average gross loans0.46 0.45 0.26 
Ratio of allowance for credit losses to total loans and leases (q) 1.35 1.28 1.17 
Ratio of allowance for credit losses to nonaccruing loans251 306 666 
See “Notes”
Overall asset quality metrics remained stable and reflect continued credit normalization from prior favorable levels. Problem assets to total Tier 1 capital plus ACL ratio of 23.44% is flat from September 30, 2023. Delinquencies decreased $8.9 million, or 7bps of gross loans, to $101.9 million, or 80bps, compared to September 30, 2023. Nonperforming assets increased $18.0 million, or 8bps of total assets, compared to September 30, 2023.
Net charge-offs were $14.7 million, or 0.46% (annualized) of average gross loans during the quarter, essentially flat compared to September 30, 2023. Approximately 70% of these charge-offs can be attributed to the Upstart (unsecured consumer loans) and NewLane (commercial small business leasing) portfolios, while the remaining portfolios experienced a decrease in net charge-offs compared to the prior quarter.
Total net credit costs were $25.4 million in the quarter compared to $18.2 million in 3Q 2023. The ACL was $186.1 million as of December 31, 2023, an increase of $10.1 million from September 30, 2023. The ACL coverage ratio was 1.35%, an increase of 7bps from September 30, 2023. The increases in net credit costs and ACL from the prior quarter were primarily due to higher provision on our NewLane, Upstart and CRE-office portfolios.

(6) Problem assets includes all criticized, classified, and nonperforming loans as well as other real estate owned (OREO).

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
9
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Core Fee Revenue
Fee business, including Wealth Management, Cash Connect®, capital markets and mortgage banking, continue to perform strongly and reflect the investments that have been made to grow our fee businesses. Core fee revenue (noninterest income) increased $4.6 million, or 6% (not annualized), compared to 3Q 2023 to a record of $78.0 million, driven by increases of $2.5 million across all Wealth and Trust business lines and $1.8 million in Cash Connect® driven by ATM vault cash units added during the quarter.
Core fee revenue increased $12.5 million, or 19%, compared to 4Q 2022. The increase was primarily driven by $5.0 million from Cash Connect® due to the addition of ATM vault cash units and the higher rate environment, $5.0 million from Wealth and Trust driven by account growth in Institutional Services and the Bryn Mawr Trust Company of Delaware (BMT-DE) and increases in Assets Under Management (AUM) in Private Wealth Management, and $1.6 million from capital markets.
For 4Q 2023, our core fee revenue ratio(7) was 30.4% compared to 28.6% in 3Q 2023 and 25.2% in 4Q 2022. Fee revenue is a competitive differentiator providing a well-diversified source of revenue with further growth opportunities expected across all sources.









(7) As used in this press release, core fee revenue ratio is a non-GAAP financial measure. This non-GAAP financial measure excludes certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
10
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Core Noninterest Expense(8)
Core noninterest expense of $139.8 million increased $0.2 million, or less than 1% (not annualized), compared to 3Q 2023. The increase was primarily due to $2.6 million in occupancy expenses, $1.4 million in professional fees, and $1.3 million in other miscellaneous expenses. The increase was partially offset by a $4.9 million decrease in salaries and benefits mainly due to a reduction in incentive accruals as well as a one-time reduction of liabilities associated with certain employee benefit plans due to changes in estimates.
Core noninterest expense increased $7.6 million, or 6%, compared to 4Q 2022. The increase was primarily due to $4.5 million from Cash Connect® driven by higher funding costs from the rising interest rate environment, $1.6 million in uninsured losses, $1.6 million in occupancy expenses, and $1.2 million in FDIC expenses (excluding the special assessment), partially offset by a decrease of $3.0 million in salaries and benefits primarily due to the reasons noted above.
Our core efficiency ratio(8) was 54.5% in 4Q 2023, compared to 54.4% in 3Q 2023 and 50.8% in 4Q 2022.
Income Taxes
We recorded a $29.4 million income tax provision in 4Q 2023, compared to $22.9 million in 3Q 2023 and $28.0 million in 4Q 2022.
The effective tax rate was 31.6% in 4Q 2023 compared to 23.6% in 3Q 2023 and 24.9% in 4Q 2022. The increase in effective tax rate for 4Q 2023 compared to 3Q 2023 and 4Q 2022 was primarily driven by the surrender of BOLI policies during the quarter. We recorded $7.1 million of tax expense related to the surrender. Excluding this charge, our 4Q 2023 tax rate was 24.0%.




(8) As used in this press release, core noninterest expense and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
11
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Capital Management
Capital levels remain strong and are all substantially in excess of the “well-capitalized” regulatory benchmarks at December 31, 2023 with WSFS Bank’s Tier 1 leverage ratio of 10.92%, Common Equity Tier 1 capital ratio and Tier 1 capital ratio of 13.72%, and Total Risk-based capital ratio of 14.97%.
WSFS’ total stockholders’ equity increased $234.8 million, or 10% (not annualized), during 4Q 2023. The increase was primarily due to an increase in accumulated other comprehensive income (AOCI) of $186.7 million driven by market-value increases on investment securities, quarterly earnings of $63.9 million and was partially offset by capital returns of $18.6 million to stockholders, comprising $9.5 million from share repurchases and $9.1 million from quarterly dividends.
WSFS’ tangible common equity(9) increased $238.8 million, or 19% (not annualized), compared to September 30, 2023. WSFS’ common equity to assets ratio was 12.03% at December 31, 2023, and our tangible common equity to tangible assets ratio(9) increased by 103bps during the quarter to 7.52%, primarily due to the reasons described above.
At December 31, 2023, book value per share was $40.93, an increase of $4.00, or 11% (not annualized), from September 30, 2023, and tangible common book value per share(9) was $24.33, an increase of $4.00, or 20% (not annualized), from September 30, 2023.
During 4Q 2023, WSFS repurchased 241,000 shares of common stock for an aggregate of $9.5 million. As of December 31, 2023, WSFS has 5,341,593 shares, or approximately 9% of outstanding shares, remaining to repurchase under its current authorizations. For the year, total capital returned to stockholder through share repurchases and quarterly dividends was $88.5 million.
The Board of Directors approved a quarterly cash dividend of $0.15 per share of common stock. This dividend will be paid on February 23, 2024 to stockholders of record as of February 9, 2024.




(9) As used in this press release, tangible common equity, tangible common equity to tangible assets ratio and tangible common book value per share are non-GAAP financial measures. These non-GAAP financial measures exclude goodwill and intangible assets and the related tax-effected amortization. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
12
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Selected Business Segments (included in previous results):
Wealth Management
The Wealth Management segment provides a broad array of planning and advisory services, investment management, trust services, credit and deposit products to individual, corporate, and institutional clients.
Selected quarterly performance results and metrics are as follows:
(Dollars in millions)December 31, 2023September 30, 2023December 31, 2022
Net interest income$18.3 $21.1 $18.7 
(Recovery of) provision for credit losses(0.1)(0.1)0.1 
Fee revenue36.0 33.3 31.0 
Noninterest expense(10)
26.9 24.5 23.6 
Pre-tax income27.5 30.0 25.9 
Performance Metrics
Trust fee revenue (Institutional Services and BMT of DE)$20.9 $18.5 $17.1 
Private wealth management fee revenue14.5 14.5 13.1 
AUM/AUA(11)
84,346 77,560 64,517 
Wealth Management fee revenue increased $2.7 million, or 8% (not annualized), from 3Q 2023, primarily due to continued growth in Institutional Services. Total noninterest expense increased $2.4 million compared to 3Q 2023 driven by salaries and benefits, which included the addition of advisors and higher performance-based incentives. Pre-tax income decreased $2.5 million compared to 3Q 2023. The decrease was primarily attributable to lower net interest income of $2.7 million.
Wealth Management fee revenue increased $5.0 million, or 16% (not annualized), compared to 4Q 2022 due to account growth in Institutional Services and BMT-DE and increases in AUM in Private Wealth Management.Pre-tax income increased $1.6 million compared to 4Q 2022, driven by higher fee revenue in Institutional Services, Private Wealth Management, and BMT-DE.
Net AUM of $8.6 billion at the end of 4Q 2023 increased $0.6 billion, or 7% (not annualized), compared to 3Q 2023, and increased $1.0 billion, or 13%. compared to 4Q 2022. AUM balances over the period were primarily impacted by returns in broader equity and fixed income markets.




(10) Includes intercompany allocation of expense and excludes provision for credit losses.
(11) Represents Assets Under Management and Assets Under Administration.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
13
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Cash Connect®
Cash Connect® is a premier provider of ATM vault cash, smart safe and cash logistics services in the United States, servicing non-bank ATMs and smart safes nationwide and supporting ATMs for WSFS Bank Customers with one of the largest branded ATM networks in our region.
Selected quarterly financial results and metrics are as follows:
(Dollars in millions)December 31, 2023September 30, 2023December 31, 2022
Net revenue(12)
$19.0 $18.0 $13.9 
Noninterest expense(13)
17.4 16.9 12.7 
Pre-tax income1.6 1.1 1.2 
Performance Metrics
Cash managed $1,867 $1,517 $1,717 
Number of serviced non-bank ATMs and smart safes41,695 33,860 33,820 
Number of WSFS owned and branded ATMs590 592 686 
ROA1.17 %0.87 %0.65 %
Cash Connect® net revenue increased $1.0 million from 3Q 2023 driven by ATM vault cash units added during the quarter, partially offset by $0.5 million higher noninterest expense due to higher external funding expense. Pre-tax income increased $0.5 million compared to 3Q 2023, driven by higher ATM vault cash volume. ROA increased 30bps to 1.17% compared to 3Q 2023 due to higher net income.
Net Revenue increased $5.1 million and noninterest expense increased $4.7 million compared to 4Q 2022 due to the added units described above and the higher rate environment. Pre-tax income increased $0.4 million compared to 4Q 2022. ROA increased 52bps to 1.17% compared to 4Q 2022 with higher pre-tax income and funding source optimization.
During 4Q 2023, Cash Connect® added 7,638 serviced non-bank ATMs as a result of a large industry participant exiting their ATM cash vault business. Cash Connect® is targeting additional unit growth and positive earnings impact in 2024 as a result of the exit of a large player in the cash logistics business. The additional ATMs contributed to 9% fee revenue growth and higher pre-tax net income compared to 3Q 2023. Cash Connect ended 2023 with approximately $1.9 billion in managed cash.



(12) Includes intercompany allocation of income and net interest income.
(13) Includes intercompany allocation of expense.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
14
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Fourth Quarter 2023 Earnings Release Conference Call
Management will conduct a conference call to review 4Q 2023 results at 1:00 p.m. Eastern Time (ET) on Friday, January 26, 2024. Interested parties may access the conference call live on our Investor Relations website (https://investors.wsfsbank.com). For those who cannot access the live conference call, a replay will be accessible shortly after the event concludes through our Investor Relations website.
About WSFS Financial Corporation
WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally headquartered bank and trust company in the Greater Philadelphia and Delaware region. As of December 31, 2023, WSFS Financial Corporation had $20.6 billion in assets on its balance sheet and $84.3 billion in assets under management and administration. WSFS operates from 114 offices, 88 of which are banking offices, located in Pennsylvania (57), Delaware (40), New Jersey (14), Florida (1), Nevada (1) and Virginia (1) and provides comprehensive financial services including commercial banking, consumer banking, treasury management and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Bryn Mawr Capital Management, LLC, Bryn Mawr Trust®, The Bryn Mawr Trust Company of Delaware, Cash Connect®, NewLane Finance®, Powdermill® Financial Solutions, WSFS Institutional Services®, WSFS Mortgage®, and WSFS Wealth® Investments. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
15
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Forward-Looking Statements
This press release 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 risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, difficult market conditions and unfavorable economic trends in the United States generally and in financial markets, particularly in the markets in which the Company operates and in which its loans are concentrated, including difficult and unfavorable conditions and trends related to housing markets, costs of living, unemployment levels, interest rates, supply chain issues, inflation, and economic growth; the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions; possible additional loan losses and impairment of the collectability of loans; the Company's level of nonperforming assets and the costs associated with resolving problem loans including litigation and other costs and complying with government-imposed foreclosure moratoriums; changes in market interest rates which may increase funding costs and reduce earning asset yields and thus reduce margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of the Company's investment securities portfolio; which could impact market confidence in the Company's operations, the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial and industrial loans in the Company's loan portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company's operations and potential expenses associated with complying with such regulations; the Company's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms; possible changes in trade, monetary and fiscal policies and stimulus programs, laws and regulations and other activities of governments, agencies, and similar organizations, and the uncertainty of the short- and long-term impacts of such changes; any impairments of the Company's goodwill or other intangible assets; the discontinued publication of London Inter-Bank Offered Rate (LIBOR) and the continued transition to Secured Overnight Financing Rate (SOFR) as the replacement reference interest rate; the success of the Company's growth plans, including its plans to grow the commercial small business leasing, residential, small business and Small Business Administration (SBA) portfolios and wealth management business; the Company's ability to successfully integrate and fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and post-acquisition Customer acceptance of the Company's products and services and related Customer disintermediation; negative perceptions or publicity with respect to the Company generally and, in particular, the Company's trust and wealth management business; failure of the financial and/or operational controls of the Company's Cash Connect® and/or Wealth Management divisions; adverse judgments or other resolution of pending and future legal proceedings, and cost incurred in defending such proceedings; the Company's reliance on third parties for certain important functions, including the operation of its core systems, and any failures by such third parties; system failures or cybersecurity incidents or other breaches of the Company's network security, particularly given remote working arrangements; the Company's ability to recruit and retain key Associates; the effects of problems encountered by other financial institutions that adversely affect the Company or the banking industry generally; the effects of weather, including climate change, and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability, armed conflicts, public health crises and man-made disasters including terrorist attacks; the effects of regional or national civil unrest (including any resulting branch or ATM closures or damage); possible changes in the speed of loan prepayments by the Company's Customers and loan origination or sales volumes; possible changes in the speed of prepayments of mortgage-backed securities (MBS) due to changes in the interest rate environment, and the related acceleration of premium amortization on prepayments in the event that prepayments accelerate; regulatory limits on the Company's ability to receive dividends from its subsidiaries and pay dividends to its stockholders; any reputation, credit, interest rate, market, operational, litigation, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above; any compounding effects or unexpected interaction of the risks discussed above; and other risks and uncertainties, including those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, the Company's Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2023, June 30, 2023, and September 30, 2023 and other documents filed by the Company with the Securities and Exchange Commission from time to time.
The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. 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 press release, 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.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
16
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited)
Three months endedTwelve months ended
(Dollars in thousands, except per share data)December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Interest income:
Interest and fees on loans $224,760 $218,903 $181,644 $845,271 $582,754 
Interest on mortgage-backed securities26,245 26,654 27,778 107,555 106,606 
Interest and dividends on investment securities2,184 2,180 2,257 8,783 6,899 
Other interest income4,042 3,402 1,414 14,913 7,556 
257,231 251,139 213,093 976,522 703,815 
Interest expense:
Interest on deposits67,319 57,255 14,644 209,820 28,181 
Interest on Federal Home Loan Bank advances213 167 496 5,348 538 
Interest on senior and subordinated debt2,455 2,453 2,307 9,815 8,246 
Interest on trust preferred borrowings1,782 1,764 1,336 6,736 3,482 
Interest on other borrowings7,335 6,898 424 19,700 478 
79,104 68,537 19,207 251,419 40,925 
Net interest income178,127 182,602 193,886 725,103 662,890 
Provision for credit losses24,816 18,414 13,396 88,071 48,089 
Net interest income after provision for credit losses153,311 164,188 180,490 637,032 614,801 
Noninterest income:
Credit/debit card and ATM income17,058 14,869 12,642 59,718 40,088 
Investment management and fiduciary revenue35,475 32,720 30,731 131,050 121,608 
Deposit service charges6,543 6,534 6,326 25,393 24,484 
Mortgage banking activities, net1,119 1,254 742 4,799 7,271 
Loan and lease fee income1,535 1,621 1,818 5,718 6,275 
Unrealized gain (loss) on equity investment, net338 (5)(8)329 5,980 
Realized gain on sale of equity investment, net9,493 — — 9,493 — 
Bank-owned life insurance income675 1,697 1,130 4,642 1,804 
Other income14,969 13,978 11,499 48,729 52,624 
87,205 72,668 64,880 289,871 260,134 
Noninterest expense:
Salaries, benefits and other compensation69,524 74,453 72,492 289,193 283,905 
Occupancy expense12,115 9,529 10,492 42,184 40,885 
Equipment expense11,077 10,563 10,320 42,242 40,994 
Data processing and operations expense4,692 4,867 4,867 19,054 20,876 
Professional fees6,031 4,612 6,212 21,200 18,497 
Marketing expense1,984 2,049 2,245 7,914 7,230 
FDIC expenses7,908 2,534 1,699 15,887 6,098 
Loan workout and other credit costs560 (189)(401)852 702 
Corporate development expense282 113 1,070 3,931 42,749 
Restructuring expense557 — (319)(230)22,473 
Other operating expenses32,916 31,158 24,226 119,406 89,917 
147,646 139,689 132,903 561,633 574,326 
Income before taxes92,870 97,167 112,467 365,270 300,609 
Income tax provision29,365 22,904 28,032 96,245 77,961 
Net income63,505 74,263 84,435 269,025 222,648 
Less: Net (loss) income attributable to noncontrolling interest(403)97 (14)(131)273 
Net income attributable to WSFS$63,908 $74,166 $84,449 $269,156 $222,375 
Diluted earnings per share of common stock:$1.05 $1.22 $1.37 $4.40 $3.49 
Weighted average shares of common stock outstanding for fully diluted EPS60,772,603 61,039,317 61,801,612 61,220,647 63,658,611 
See “Notes”

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
17
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited) - continued
Three months endedTwelve months ended
 December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Performance Ratios:
Return on average assets (a)1.25 %1.45 %1.69 %1.33 %1.09 %
Return on average equity (a)11.12 12.64 15.74 11.70 9.27 
Return on average tangible common equity (a)(o)20.83 23.19 31.12 21.73 16.88 
Net interest margin (a)(b)3.99 4.08 4.49 4.11 3.71 
Efficiency ratio (c)55.56 54.64 51.22 55.24 62.09 
Noninterest income as a percentage of total net revenue (b)32.81 28.42 25.01 28.51 28.12 
See “Notes”

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
18
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(Dollars in thousands)December 31, 2023September 30, 2023December 31, 2022
Assets:
Cash and due from banks$629,310 $260,200 $332,961 
Cash in non-owned ATMs458,889 345,754 499,017 
Investment securities, available-for-sale3,846,537 3,691,541 4,093,060 
Investment securities, held-to-maturity1,058,557 1,068,871 1,111,619 
Other investments37,533 39,466 55,516 
Net loans and leases (e)(f)(l)12,612,470 12,539,062 11,802,977 
Bank owned life insurance42,762 101,424 101,935 
Goodwill and intangibles1,004,560 1,008,472 1,012,232 
Other assets904,054 986,202 905,438 
Total assets$20,594,672 $20,040,992 $19,914,755 
Liabilities and Stockholders’ Equity:
Noninterest-bearing deposits$4,917,297 $4,913,517 $5,739,647 
Interest-bearing deposits11,505,113 10,983,747 10,341,331 
Total customer deposits16,422,410 15,897,264 16,080,978 
Brokered deposits51,676 89,105 122,591 
Total deposits16,474,086 15,986,369 16,203,569 
Federal Home Loan Bank advances— — 350,000 
Other borrowings895,076 917,833 376,894 
Other liabilities755,695 901,412 782,406 
Total liabilities18,124,857 17,805,614 17,712,869 
Stockholders’ equity of WSFS2,477,636 2,242,795 2,205,113 
Noncontrolling interest(7,821)(7,417)(3,227)
Total stockholders' equity2,469,815 2,235,378 2,201,886 
Total liabilities and stockholders' equity$20,594,672 $20,040,992 $19,914,755 
Capital Ratios:
Equity to asset ratio12.03 %11.19 %11.07 %
Tangible common equity to tangible asset ratio (o)7.52 6.49 6.31 
Common equity Tier 1 capital (required: 4.5%; well capitalized: 6.5%) (g)13.72 13.26 12.86 
Tier 1 leverage (required: 4.00%; well-capitalized: 5.00%) (g)10.92 10.72 10.29 
Tier 1 risk-based capital (required: 6.00%; well-capitalized: 8.00%) (g)13.72 13.26 12.86 
Total risk-based capital (required: 8.00%; well-capitalized: 10.00%) (g)14.97 14.43 13.84 
Asset Quality Indicators:
Nonperforming assets:
Nonaccruing loans (t)$74,185 $57,460 $22,802 
Troubled debt restructurings (accruing)— — 19,737 
Assets acquired through foreclosure1,569 298 833 
Total nonperforming assets$75,754 $57,758 $43,372 
Past due loans (h)$11,584 $14,357 $16,535 
Troubled loans95,268 78,186 — 
Allowance for credit losses186,134 175,996 151,871 
Ratio of nonperforming assets to total assets0.37 %0.29 %0.22 %
Ratio of nonperforming assets (excluding accruing TDRs) to total assets— — 0.12 
Ratio of allowance for credit losses to total loans and leases (q)1.35 1.28 1.17 
Ratio of allowance for credit losses to nonaccruing loans251 306 666 
Ratio of quarterly net charge-offs to average gross loans (a)(e)(i)(n)0.46 0.45 0.26 
Ratio of year-to-date net charge-offs to average gross loans (a)(e)(i)(n)0.44 0.43 0.15 
See “Notes”

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
19
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued) 
AVERAGE BALANCE SHEET (Unaudited)
(Dollars in thousands)Three months ended
 December 31, 2023September 30, 2023December 31, 2022
 Average
Balance		Interest &
Dividends		Yield/
Rate
(a)(b)		Average
Balance		Interest &
Dividends		Yield/
Rate
(a)(b)		Average
Balance		Interest &
Dividends		Yield/
Rate
(a)(b)
Assets:
Interest-earning assets:
Loans: (e) (j)
Commercial loans and leases (p)$5,049,932 $89,474 7.04 %$5,107,501 $90,098 7.01 %$4,920,329 $76,817 6.21 %
Commercial real estate loans (s)4,757,766 85,717 7.15 4,611,968 82,040 7.06 4,334,772 66,428 6.08 
Residential mortgage865,631 10,176 4.70 841,510 10,698 5.09 762,967 8,610 4.51 
Consumer loans1,992,434 38,495 7.67 1,940,418 34,972 7.15 1,753,871 28,843 6.52 
Loans held for sale46,227 898 7.71 54,072 1,095 8.03 56,605 946 6.63 
Total loans and leases12,711,990 224,760 7.02 12,555,469 218,903 6.92 11,828,544 181,644 6.10 
Mortgage-backed securities (d)4,376,102 26,245 2.40 4,602,107 26,654 2.32 4,849,450 27,778 2.29 
Investment securities (d)356,495 2,184 2.72 364,565 2,180 2.64 377,610 2,257 2.85 
Other interest-earning assets291,626 4,042 5.50 251,273 3,402 5.37 145,668 1,414 3.85 
Total interest-earning assets$17,736,213 $257,231 5.76 %$17,773,414 $251,139 5.61 %$17,201,272 $213,093 4.93 %
Allowance for credit losses(179,030)(173,052)(147,990)
Cash and due from banks263,724 277,780 253,031 
Cash in non-owned ATMs396,589 363,131 524,042 
Bank owned life insurance91,769 101,411 100,920 
Other noninterest-earning assets2,009,939 1,922,080 1,945,047 
Total assets$20,319,204 $20,264,764 $19,876,322 
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand$2,941,311 $7,966 1.07 %$2,955,613 $7,156 0.96 %$3,356,188 $3,740 0.44 %
Savings1,646,314 1,614 0.39 1,750,809 1,521 0.34 2,232,665 459 0.08 
Money market4,760,003 40,373 3.37 4,499,909 34,639 3.05 3,769,013 8,473 0.89 
Customer time deposits1,763,678 15,766 3.55 1,661,885 12,828 3.06 1,016,827 1,800 0.70 
Total interest-bearing customer deposits11,111,306 65,719 2.35 10,868,216 56,144 2.05 10,374,693 14,472 0.55 
Brokered deposits119,843 1,600 5.30 88,594 1,111 4.98 23,389 172 2.92 
Total interest-bearing deposits11,231,149 67,319 2.38 10,956,810 57,255 2.07 10,398,082 14,644 0.56 
Federal Home Loan Bank advances14,620 213 5.78 11,576 167 5.72 45,967 496 4.28 
Trust preferred borrowings90,606 1,782 7.80 90,557 1,764 7.73 90,410 1,336 5.86 
Senior and subordinated debt218,362 2,455 4.50 218,304 2,453 4.49 248,216 2,307 3.72 
Other borrowed funds635,512 7,335 4.58 604,156 6,898 4.53 78,755 424 2.14 
Total interest-bearing liabilities$12,190,249 $79,104 2.57 %$11,881,403 $68,537 2.29 %$10,861,430 $19,207 0.70 %
Noninterest-bearing demand deposits4,965,356 5,248,931 6,108,618 
Other noninterest-bearing liabilities889,962 813,858 780,336 
Stockholders’ equity of WSFS2,281,076 2,327,853 2,128,869 
Noncontrolling interest(7,439)(7,281)(2,931)
Total liabilities and equity$20,319,204 $20,264,764 $19,876,322 
Excess of interest-earning assets over interest-bearing liabilities$5,545,964 $5,892,011 $6,339,842 
Net interest and dividend income$178,127 $182,602 $193,886 
Interest rate spread3.19 %3.32 %4.23 %
Net interest margin3.99 %4.08 %4.49 %
See “Notes”

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
20
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
 
(Dollars in thousands, except per share data)Three months endedTwelve months ended
Stock Information:December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Market price of common stock:
High$47.97$45.40$50.67$51.77$56.30
Low33.1235.0241.8129.5937.03
Close45.9336.5045.3445.9345.34
Book value per share of common stock40.9336.9335.79
Tangible common book value (TBV) per share of common stock (o)24.3320.3319.36
Number of shares of common stock outstanding (000s)60,53860,72861,612
Other Financial Data:
One-year repricing gap to total assets (k)(0.14)%0.41%6.29%
Weighted average duration of the MBS portfolio5.8 years6.0 years5.9 years
Unrealized losses on securities available for sale, net of taxes$(499,932)$(678,413)$(563,532)
Number of Associates (FTEs) (m)2,2292,2242,160
Number of offices (branches, LPO’s, operations centers, etc.)114116119
Number of WSFS owned and branded ATMs590592686
Notes:
(a)Annualized.
(b)Computed on a fully tax-equivalent basis.
(c)Noninterest expense divided by (tax-equivalent) net interest income and noninterest income.
(d)Includes securities held-to-maturity (at amortized cost) and securities available-for-sale (at fair value).
(e)Net of unearned income.
(f)Net of allowance for credit losses.
(g)Represents capital ratios of Wilmington Savings Fund Society, FSB and subsidiaries. Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.
(h)Accruing loans which are contractually past due 90 days or more as to principal or interest. Balance includes student loans, which are U.S. government guaranteed with little risk of credit loss.
(i)Excludes loans held for sale.
(j)Nonperforming loans are included in average balance computations.
(k)The difference between projected amounts of interest-sensitive assets and interest-sensitive liabilities repricing within one year divided by total assets, based on a current interest rate scenario.
(l)Includes loans held for sale and reverse mortgages.
(m)Includes seasonal Associates, when applicable.
(n)Excludes reverse mortgage loans.
(o)The Company uses non-GAAP (United States Generally Accepted Accounting Principles) financial information in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial 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 financial 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 and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.
(p)Includes commercial & industrial loans and commercial small business leases.
(q)Represents amortized cost basis for loans, leases and held-to-maturity securities.
(r)Includes provision for credit losses, loan workout expenses, OREO expenses and other credit costs.
(s)Includes commercial mortgage and commercial construction loans.
(t)Includes nonaccruing troubled loans beginning in 2023 and nonaccruing troubled debt restructurings prior to 2023.

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
21
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
WSFS FINANCIAL CORPORATION 
FINANCIAL HIGHLIGHTS (Continued)
(Dollars in thousands, except per share data)
(Unaudited)
 
Non-GAAP Reconciliation (o):Three months endedTwelve months ended
 December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Net interest income (GAAP)$178,127 $182,602 $193,886 $725,103 $662,890 
Core net interest income (non-GAAP)178,127 182,602 193,886 725,103 662,890 
Noninterest income (GAAP)87,205 72,668 64,880 289,871 260,134 
Less/(plus): Unrealized gain (loss) on equity investments, net338 (5)(8)329 5,980 
Less: Realized gain on sale of equity investment, net9,493 — — 9,493 — 
Plus: Visa derivative valuation adjustment(605)(750)(592)(2,460)(2,877)
Core fee revenue (non-GAAP)$77,979 $73,423 $65,480 $282,509 $257,031 
Core net revenue (non-GAAP)$256,106 $256,025 $259,366 $1,007,612 $919,921 
Core net revenue (non-GAAP)(tax-equivalent)$256,523 $256,412 $260,058 $1,009,427 $921,829 
Noninterest expense (GAAP)$147,646 $139,689 $132,903 $561,633 $574,326 
Less: FDIC special assessment5,052 — — 5,052 — 
Less: Corporate development expense282 113 1,070 3,931 42,749 
Less/(plus): Restructuring expense557 — (319)(230)22,473 
Less: Contribution to WSFS CARES Foundation2,000 — — 2,000 — 
Core noninterest expense (non-GAAP)$139,755 $139,576 $132,152 $550,880 $509,104 
Core efficiency ratio (non-GAAP)54.5 %54.4 %50.8 %54.6 %55.2 %
Core fee revenue ratio (non-GAAP) (b)30.4 %28.6 %25.2 %28.0 %27.9 %
 End of period
 December 31, 2023September 30, 2023December 31, 2022
Total assets (GAAP)$20,594,672 $20,040,992 $19,914,755 
Less: Goodwill and other intangible assets1,004,560 1,008,472 1,012,232 
Total tangible assets (non-GAAP)$19,590,112 $19,032,520 $18,902,523 
Total stockholders’ equity of WSFS (GAAP)$2,477,636 $2,242,795 $2,205,113 
Less: Goodwill and other intangible assets1,004,560 1,008,472 1,012,232 
Total tangible common equity (non-GAAP)$1,473,076 $1,234,323 $1,192,881 
Tangible common book value (TBV) per share:
Book value per share (GAAP)$40.93 $36.93 $35.79 
Tangible common book value per share (non-GAAP)24.33 20.33 19.36 
Tangible common equity to tangible assets:
Equity to asset ratio (GAAP)12.03 %11.19 %11.07 %
Tangible common equity to tangible assets ratio (non-GAAP)7.52 6.49 6.31 





wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
22
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Non-GAAP Reconciliation - continued (o):Three months endedTwelve months ended
December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
GAAP net income attributable to WSFS$63,908 $74,166 $84,449 $269,156 $222,375 
Plus/(less): Pre-tax adjustments: Realized/unrealized gain (loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation(1,335)868 1,351 3,391 62,119 
Plus: Tax adjustments: BOLI surrender7,056 — — 7,056 — 
(Plus)/less: Tax impact of pre-tax adjustments65 (232)(308)(764)(13,809)
Adjusted net income (non-GAAP) attributable to WSFS$69,694 $74,802 $85,492 $278,839 $270,685 
GAAP return on average assets (ROA)1.25 %1.45 %1.69 %1.33 %1.09 %
Plus/(less): Pre-tax adjustments: Realized/unrealized gain (loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation(0.03)0.02 0.03 0.02 0.30 
Plus: Tax adjustments: BOLI surrender0.14 — — 0.03 — 
(Plus)/less: Tax impact of pre-tax adjustments— (0.01)(0.01)— (0.07)
Core ROA (non-GAAP)1.36 %1.46 %1.71 %1.38 %1.32 %
Earnings per share (diluted) (GAAP)$1.05 $1.22 $1.37 $4.40 $3.49 
Plus/(less): Pre-tax adjustments: Realized/unrealized gain (loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation(0.02)0.01 0.02 0.05 0.98 
Plus: Tax adjustments: BOLI surrender0.12 — — 0.12 — 
(Plus)/less: Tax impact of pre-tax adjustments— — (0.01)(0.02)(0.22)
Core earnings per share (non-GAAP)$1.15 $1.23 $1.38 $4.55 $4.25 
Calculation of return on average tangible common equity:
GAAP net income attributable to WSFS$63,908 $74,166 $84,449 $269,156 $222,375 
Plus: Tax effected amortization of intangible assets2,976 2,984 2,925 11,724 11,752 
Net tangible income (non-GAAP)$66,884 $77,150 $87,374 $280,880 $234,127 
Average stockholders’ equity of WSFS$2,281,076 $2,327,853 $2,128,869 $2,300,467 $2,398,871 
Less: Average goodwill and intangible assets1,007,136 1,007,803 1,014,985 1,008,128 1,012,233 
Net average tangible common equity$1,273,940 $1,320,050 $1,113,884 $1,292,339 $1,386,638 
Return on average tangible common equity (non-GAAP)20.83 %23.19 %31.12 %21.73 %16.88 %

wsfs_corp2.jpg
WSFS Bank CenterWSFS Bank Place
23
500 Delaware Avenue,1818 Market St,
Wilmington, Delaware 19801Philadelphia, PA 19103
Non-GAAP Reconciliation - continued (o):Three months endedTwelve months ended
December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Calculation of PPNR:
Net income (GAAP)$63,505 $74,263 $84,435 $269,025 $222,648 
Plus: Income tax provision 29,365 22,904 28,032 96,245 77,961 
Plus: Provision for credit losses24,816 18,414 13,396 88,071 48,089 
PPNR (non-GAAP)$117,686 $115,581 $125,863 $453,341 $348,698 

1 WSFS Financial Corporation 4Q 2023 Earnings Release Supplement January 2024 Exhibit 99.2

 
2 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 impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions, the uncertain effects of geopolitical instability, armed conflicts, public health crises, inflation, interest rates 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 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2023, June 30, 2023, September 30, 2023, 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 Net Income, Core Efficiency ratio, Pre-provision Net Revenue (“PPNR”), Core PPNR, PPNR to average assets ratio, Core PPNR to average assets ratio, Core Return on Assets (“ROA”), core net interest income, Core Net Interest Margin (“NIM”), Tangible Common Equity (“TCE”), tangible assets, tangible equity, Return on Tangible Common Equity (“ROTCE”), Core ROTCE, Core Fee Revenue, Core Fee Revenue ratio, tangible common book value (“TBV”), TBV excluding AOCI, coverage ratio including the remaining credit marks and excluding HTM securities, and Effective AOCI. 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. Trade names, trademarks and service marks of other companies appearing in this presentation are the property of their respective holders.

 
3 Financial Highlights 4Q 2023 Highlights: • Strong customer deposit growth of $525mm or 13% (annualized) • Driven by $297mm increase in Trust deposits • Record core fee revenue1 of $78mm in the quarter, up 6% QoQ, with continued growth opportunities • Cash Connect® up 9% QoQ and Wealth & Trust up 7% QoQ • Gross loans up $83mm or 3% (annualized) • Loan-to-deposit ratio of 77%3 • High-quality NIM of 3.99%; reflects our competitive deposit betas and focus on Commercial loan relationships • Tangible common book value (TBV)1 increased a meaningful 20% to $24 per share 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 Excludes net income that is attributable to noncontrolling interest 3 Net loans / total customer deposits 4 Tax-equivalent Reported Core1 $ in millions (except per share amounts) 4Q23 FY23 4Q23 FY23 EPS $1.05 $4.40 $1.15 $4.55 ROA 1.25% 1.33% 1.36% 1.38% Net Income2 $63.9 $269.2 $69.7 $278.8 PPNR %1 2.30% 2.24% 2.27% 2.26% ROTCE1 20.83% 21.73% 22.63% 22.48% NIM 3.99% 4.11% 3.99% 4.11% Fee Revenue %4 32.8% 28.5% 30.4% 28.0% Efficiency Ratio 55.6% 55.2% 54.5% 54.6% ACL Ratio 1.35% 1.35% 1.35% 1.35% Bank CET1 13.72% 13.72% 13.72% 13.72%

 
4 4Q 2023 Notable Items $63.9 $9.5 $2.0 $5.1 $1.1 $7.1 $69.7 $50 $55 $60 $65 $70 Reported Net Income Spring EQ Sale WSFS CARES FDIC Special Assessment Other / Tax Impacts BOLI Core Net Income 4Q 2023 Adjustments Key Items Spring EQ: • Digital home equity loan partner • Recognized gain from our equity investment in conjunction with company sale • Continue loan partnership post-sale BOLI: • Surrendered $65mm of policies this quarter • Reinvestment yield more than double current BOLI yield • Removes long-term counterparty risk • Estimated earnback of +/-3.5 years WSFS CARES Foundation: • Contributed $2mm to enhance community support activities $0.10 Cumulative EPS Impact $5.8 Cumulative Net Income Impact

 
5 Deposits Highlights • $525mm (13% annualized) increase in ending customer deposits • 1.62% total average customer deposit cost with 31% total deposit beta • 31% noninterest deposits offsets pricing pressures • 56% of deposits from non-Consumer accounts • 86% of Trust deposits are noninterest; complements deposit strategy Average Total Customer Deposit Mix 6% 8% 10% 10% 11% 37% 37% 37% 39% 40% 20% 20% 19% 18% 18% 37% 35% 34% 33% 31% 0% 20% 40% 60% 80% 100% 4Q22 1Q23 2Q23 3Q23 4Q23 Noninterest Interest-bearing Savings/MM Time Resilient deposit base with advantageous funding mix ($ in millions) Dec 2023 Sept 2023 Dec 2022 4Q23 $ Growth Annualized % Growth Noninterest Demand $4,917 $4,913 $5,739 $4 0% Interest-bearing Demand 2,936 3,028 3,347 (92) (12%) Savings 1,610 1,681 2,162 (71) (17%) Money Market 5,175 4,560 3,731 615 54% Total Core Deposits $14,638 $14,182 $14,979 $456 13% Customer Time Deposits 1,784 1,715 1,102 69 16% Total Customer Deposits $16,422 $15,897 $16,081 $525 13% EOP Deposits by Product - 4Q23 vs 3Q23 Consumer 44% Commercial 24% Small Business 16% Trust 8% Wealth 7%Other 1% Average Customer Deposits By Business Line

 
6 Loan Portfolio Highlights • Total gross loan growth of $83mm or 3% annualized • Commercial: CRE driven by conversion of Construction loans to permanent; strong C&I originations were outpaced by elevated payoffs and paydowns • Over 95% of Commercial Customers have deposit and/or Wealth relationships • Consumer: growth of $55mm driven by Spring EQ; Upstart portfolio at $229mm Low loan-to-deposit ratio and relationship-driven loan portfolio Gross Loan Portfolio Composition 1 C&I loans includes Owner-Occupied Real Estate C&I Loans Commercial Mortgages (CRE) Construction Loans Commercial Leases Residential Mortgage Traditional Consumer Consumer Partnerships 30% 35% 8% 5% 7% 6% 9% ($ in millions) Dec 2023 Sept 2023 Dec 2022 4Q23 $ Growth Annualized % Growth C & I Loans1 $4,443 $4,590 $4,408 ($147) (13%) Commercial Mortgages (CRE) 3,801 3,646 3,351 155 17% Construction Loans 1,036 1,043 1,044 (7) (3%) Commercial Leases 624 606 559 18 12% Total Commercial Loans $9,904 $9,885 $9,362 $19 1% Residential Mortgage (HFS/HFI) 882 873 782 9 4% Consumer Loans 2,012 1,957 1,811 55 11% Total Gross Loans $12,798 $12,715 $11,955 $83 3% Loans - 4Q23 vs 3Q23 1

 
7 3 Commercial Loan Composition1 1 As defined by the North American Industry Classification System (NAICS) 2 Based on the underlying real estate collateral 3 Office portfolio excludes Medical Office CRE; additional Office portfolio details on Slide 14 2 Flex, Warehouse, Self- Storage, General Industrial, 10% Special Use & Other, 9% Medical Office, 2% Residential 1-4, 11% Residential Multi-Family, 29% Office3, 14% Retail, 25% Hotels, 12% Other Services (except Public Admin), 11% Healthcare & Social Assistance, 9% Construction, 8% Manufacturing, 7% Retail Trade, 8% Finance & Insurance, 7% Professional, Science & Tech. Services, 5% Food Services, 5% Wholesale Trade, 4% Other, 17% C&I and Owner-Occupied1 $4.4 billion CRE and Construction2 $4.8 billion Real Estate Rental and Leasing, 7% Highly diversified C&I, Owner-Occupied, CRE, and Construction Portfolios

 
8 Investment Portfolio High-quality investment portfolio providing consistent cashflows and borrowing capacity 1 Investment portfolio value includes market value AFS and book value of HTM 2 Weighted average duration and yield of the MBS portfolio 3 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 • Targeting 18% - 20% of total assets over time • Forecast cash flows of $1b+ over the next 24 months • Cashflows redeployed in higher yields • Anticipated cashflows could fund ~3.5% annualized loan growth • AOCI improved $186.7mm or 24% quarter-over-quarter Investments Investment Portfolio1 $4.91b % of Total Assets 25% Portfolio Duration2 5.8yrs Portfolio Yield2 2.40% Agency MBS/Notes % >95% AOCI ($594.0mm) Effective AOCI3,4 ($664.1mm) AFS Agency MBS Agency CMOs GNMA MBS/CMOs Agency Debent. HTM Agency MBS Munis $3.85b $1.06b 4 Effective AOCI ($664.1mm) includes AFS, HTM, and HTM unrecognized MTM; reported AOCI of ($594.0mm) $676 $618 $656 $781 $594 $0 $200 $400 $600 $800 $1,000 4Q22 1Q23 2Q23 3Q23 4Q23 M ill io ns AOCI Trend

 
9 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 0.35% 0.80% 1.16% 1.38% 1.62%0.46% 1.05% 1.40% 1.59% 1.83% 5.98% 6.42% 6.69% 6.81% 6.92% 2.0% 4.0% 6.0% 8.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Lo an Y ie ld (% ) Cu st om er D ep os it Co st (% ) Total Deposit Cost Total Funding Cost Total Loans Ex PAA Yield Deposit Betas3 Net Interest Margin Trends Top-tier NIM with favorable funding mix and competitive betas Average Deposit Cost and Loan Yield 1 Includes non-interest and interest-bearing; interest-bearing deposits include demand, money market, savings, and customer time deposits 2 Average total loans yield excludes PAA 3 Deposit betas are cumulative customer deposits for the current cycle; Federal Funds Target rates are end-of-period value 21 4.49% 4.25% 4.11% 4.08% 15% 28% 35% 39% 44% 9% 19% 23% 27% 31% 49% 53% 54% 52% 54% 4.5% 5.0% 5.3% 5.5% 5.5% -1.2% 0.8% 2.8% 4.8% 6.8% 0% 20% 40% 60% 80% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Fe de ra l F un ds T ar ge t R at e De po sit B et a Interest-bearing Dep Beta Total Dep Beta Loan Beta Fed Funds 3.99%

 
10 1 As of December 31, 2023 2 WSFS IRR model estimates: Static Balance Sheet / Instantaneous Rate Shocks 3 This IRR analysis only provides directional guidance for 2024, since the IRR model assumes static balance sheet and through the cycle beta Interest Rate Risk1,2 WSJ Prime @ 8.50% • Maintains asset sensitivity profile while mitigating downrate risk • ~52% of loans are variable/adjustable rate • ~95% variable rate loans indexed to SOFR & Prime • Assumes an interest-bearing deposit beta of 38% on future moves • Executing off-balance sheet hedging strategy • $750mm of floors purchased with ~4% strike price during the year • Approved for an additional $250mm of floors1 Balance Sheet Drivers Full Year Impact3 BPs change NII Impact (%) NII Impact ($) +100 5.2% $38.7mm +50 2.6% $19.3mm +25 1.3% $9.6mm Static Base -25 (1.3%) ($9.6mm) -50 (2.6%) ($19.2mm) -100 (4.9%) ($36.7mm) IRR mitigated by asset mix shift, increasing deposit beta, and hedging strategy

 
11 $16 $15 $15 $19 $19 $18 $18 $20 $21 $23 $31 $31 $32 $33 $36 $65 $64 $67 $73 $78 $- $10 $20 $30 $40 $50 $60 $70 $80 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Co re F ee R ev en ue ( $m m )2 Banking Cash Connect Wealth Management3 Robust Core Fee Revenue1 Well-diversified record core fee revenue of $78 million in the quarter 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. 2 Tax-equivalent basis and excludes PPP revenue 3 Banking includes deposit service charges, SBA loan sales, loan and lease fees, credit and debit revenue, capital markets, mortgage, and other banking related fees Wealth Management: Substantial growth opportunity within Institutional Trust, BMT of DE, and Private Wealth Management Cash Connect®: Peer consolidation opportunity and high growth products including smart safes Banking: Capital Markets capabilities complements Customer relationships • 30.4% core fee revenue ratio • Increasing synergies and referral opportunities across business lines ®

 
12 Stable Asset Quality 1 Prior to 1Q23, NPA included accruing TDRs 2 Concentration limits are based on relationship exposure, and Tier-1 + ACL; as of December 31, 2023 3 Based on relationship’s outstanding balances 4 Defined as the sum of CRE and Construction (excluding Owner-Occupied) $462 $417 $465 $543 $556 21.44% 18.65% 20.14% 23.61% 23.44% 10% 15% 20% 25% 30% 35% 40% $300 $400 $500 $600 $700 $800 4Q22 1Q23 2Q23 3Q23 4Q23 M ill io ns Problem Assets % of Tier 1 capital plus ACL Problem Assets $43 $33 $34 $58 $76 0.22% 0.16% 0.16% 0.29% 0.37% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% $0 $20 $40 $60 $80 $100 4Q22 1Q23 2Q23 3Q23 4Q23 M ill io ns Nonperforming Assets % of Total Assets Nonperforming Assets1 $61 $101 $73 $111 $102 0.51% 0.83% 0.59% 0.87% 0.80% 0.0% 0.3% 0.6% 0.9% 1.2% 1.5% $0 $25 $50 $75 $100 $125 $150 $175 $200 4Q22 1Q23 2Q23 3Q23 4Q23 M ill io ns Delinquencies % of Gross Loans Delinquencies $4 $6 $8 $8 $10$4 $6 $5 $6 $50.26% 0.40% 0.43% 0.45% 0.46% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% $0 $4 $8 $12 $16 $20 $24 4Q22 1Q23 2Q23 3Q23 4Q23 M ill io ns Upstart/NewLane Other % of Avg. Gross Loans Net Charge-offs • Problem Assets: Flat from prior quarter • Nonperforming Assets: Modest increase due to one C&I and one CRE loan • Delinquencies: Decreased due to resolution of problem loans • Net Charge-Offs: Flat from prior quarter • 14bps excluding Upstart and NewLane portfolios 4Q 2023 Performance • 22 distinct concentration limits; all in compliance • House limit of $100mm (no relationships > limit) • 23 relationships over $50mm3; <10% gross loans • CRE4 at 220% (300% limit) • Upstart at 10% (12.5% limit) • Other Unsecured at 9% (12.5% limit) Concentration Limits2

 
13 ACL Ratio $150 $160 $170 $180 $190 9/30/2023 Economic Impact Net Loan Growth Migration / Other 12/31/2023 4Q 2023 ACL ($mm) ($3) $176 $8 $186 $5 1 This is a non-GAAP financial measures and should be considered along with results prepared in accordance with GAAP, and not as a substitute for GAAP results. See Appendix for reconciliation to GAAP financial information 2 Source: Oxford Economics as of December 2023 ACL Overview ACL and Coverage Ratio by Segment 4Q 2023 ACL Commentary 1.35% • ACL coverage ratio of 1.35%; 1.64% when including estimated remaining credit marks on the acquired loan portfolios and excluding HTM securities1 • Increased NewLane, Upstart, and Office ACL • FY GDP forecast of 2.4% in 2023 and 1.2% in 20242 • FY Unemployment forecast of 3.7% in 2023 and 4.4% in 20242 1.28% 1.15% 2.26% 1.35% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 1Q20 4Q20 3Q21 2Q22 1Q23 4Q23 ACL % By Portfolio and Total3 Commercial Consumer and Leasing Total ACL%5 ($ millions) $ % $ % $ % C&I4 $49.5 1.93% $51.7 1.96% $49.4 1.95% Owner Occupied $6.0 0.33% $7.9 0.41% $10.7 0.57% CRE Investor $21.5 0.64% $33.2 0.91% $36.1 0.95% Construction4 $7.0 0.67% $11.3 1.08% $10.8 1.04% Mortgage $4.7 0.61% $5.4 0.63% $5.5 0.63% Leases $9.9 1.77% $10.0 1.65% $15.2 2.43% HELOC & HEIL $8.7 1.34% $8.2 1.26% $8.4 1.27% Consumer Partnerships $41.1 4.28% $45.5 4.03% $47.2 4.01% Other $3.5 0.27% $2.8 0.24% $2.8 0.24% TOTAL $151.9 1.17% $176.0 1.28% $186.1 1.35% December 31, 2022 September 30, 2023 December 31, 2023 3 Percentages are over amortized cost of loans and HTM securities 4 Hotel loan balances are included in the C&I and Construction segments 5 Commercial excludes Leasing

 
14 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 2024 2025 2026 2027 2028 Bi lli on s Office Multi-Family Industrial Flex Retail Single Family Other 11.8% 8.9% 8.2% 10.9% 12.6% Commercial Real Estate Portfolio 1 Inclusive of Office-related Construction 2 Office CRE portfolio excludes $98.9mm ($105.6mm exposure) of Medical Office CRE/Construction 3 Central Business District 4 Includes hotel loans and excludes non-performing loans Staggered maturities reduces repricing risk • Proactively addressing high and medium risk borrowers • 20.7% of CRE maturing in 2024 and 2025 • Reviewed all $2.5mm or larger CRE4 loans maturing in the next two years; <15% are considered elevated risk (Under 1.05 DSCR) under a stressed 7.50% interest rate scenario • $691mm with $738mm exposure2; 5.4% of gross loans • $1.8mm average loan size • 78% suburban and 22% urban; 8% of Office is in CBD3 • 14 loans over $10mm each; largest loan ~$27mm • LTV of ~60% at origination • ACL of 2.76% • 0% DLQ; 0% NCO; <1% NPA; 8% problem loans • 86% of loans include guarantor recourse Office Portfolio1 47.8% of CRE loans maturing in 2029 or after Portfolio Maturity % Volume of Maturing CRE Loans by Industry

 
15 Capital All capital ratios remain healthy and significantly above “well-capitalized;” Tangible book value increased $4 or 20% this quarter $24.33 $34.14 $15 $20 $25 $30 $35 4Q19 2Q20 4Q20 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 Corp. TBV and AOCI’s Impact per Share TBV/share TBV/share ex-AOCI 10.27% 9.96% 11.61% 7.52% 3.45% 0.96% 3.36% 2.02% 13.72% 10.92% 14.97% 9.54% 0% 4% 8% 12% 16% Bank CET1 Bank Leverage Bank TRBC Corp. TCE Effective AOCI Well-capitalized Reported 4Q23 Capital Ratios with Effective AOCI1 Impact 1 Effective AOCI ($664.1mm) includes AFS, HTM, and HTM unrecognized MTM; reported AOCI of ($594.0mm) 2 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

 
16 3 2024 Outlook Loan Growth Mid-single digit growth; Increase market share due to favorable market position Deposit Growth Low-single digit growth; Broad-based growth across our businesses Net Interest Margin Range of 3.80% - 3.90%; NIM expected to plateau mid-year; IB deposit beta of ~50% by year-end Fee Revenue Growth Double-digit growth; Cash Connect® and Wealth & Trust growth Net Charge-offs 0.50% - 0.60% of average loans; ~35bps when excluding Upstart and NewLane Efficiency Ratio +/-60%; Continued franchise investment Tax Rate Approximately 25% Full-Year Core ROA1 Outlook of +/-1.20% Delivering high-performing results and franchise growth 1 The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable GAAP estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates with a reasonable degree of accuracy2 2024 Core Outlook1 Assumes a flat interest rate environment and a soft economic landing (FY GDP of ~1%) in 2024; See IRR slide for impact of interest rate changes on NII

 
17 Non-GAAP Financial Information Appendix:

 
18 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). This presentation may include the following non-GAAP measures: • Adjusted Net Income (non-GAAP) attributable to WSFS is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the realized/unrealized gain (loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation; • Core noninterest income, also called Core Fee Revenue, is a non-GAAP measure that adjusts noninterest income as determined in accordance with GAAP to exclude the impact of realized/unrealized gain (loss) on equity investments, net, and Visa derivative valuation adjustment; • Core fee revenue ratio (%) is a non-GAAP measure that divides (i) Core Fee Revenue by (ii) Core Net Revenue (tax-equivalent); • Core net interest income is a non-GAAP measure that adjusts net interest income to exclude the impact of certain dividends; • Core Earnings Per Share (EPS) is a non-GAAP measure that divides (i) Adjusted Net Income (non-GAAP) attributable to WSFS by (ii) weighted average shares of common stock outstanding for the applicable period; • Core Net Revenue is a non-GAAP measure that adds (i) core net interest income and (ii) Core Fee Revenue; • Core noninterest expense is a non-GAAP measure that adjusts noninterest expense as determined in accordance with GAAP to exclude FDIC special assessment, corporate development and restructuring expenses, and contribution to WSFS CARES Foundation; • Core Efficiency Ratio is a non-GAAP measure that divides (i) core noninterest expense by (ii) the sum of core interest income and Core Fee Revenue; • Core Return on Average Assets (ROA) is a non-GAAP measure that divides (i) Adjusted Net Income (non-GAAP) attributable to WSFS by (ii) average assets for the applicable period; • Tangible Common Equity (TCE) is a non-GAAP measure and is defined as total stockholders’ equity of WSFS less goodwill and other intangible assets; • TCE Ratio is a non-GAAP measure that divides (i) TCE by (ii) tangible assets; • Tangible assets is a non-GAAP measure and is defined as total assets less goodwill and 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; • Core ROTCE is a non-GAAP measure that is defined as adjusted net income (non-GAAP) attributable to WSFS divided by tangible common equity; • Net tangible income is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impact of the amortization of intangible assets; • Core net tangible income is a non-GAAP measure that adjusts adjusted net income (non-GAAP) attributable to WSFS to exclude the impact of the amortization of intangible assets; • Tangible common book value per share (TBV) is a non-GAAP financial measure that divides (i) TCE by (ii) shares outstanding; • TBV excluding AOCI is a non-GAAP financial measure that adjusts TBV to exclude AOCI; • Pre-provision Net Revenue (PPNR) is a non-GAAP measure that adjusts net income determined in accordance with GAAP to exclude the impacts of (i) income tax provision and (ii) provision for credit losses; • Core PPNR is a non-GAAP measure that adjusts PPNR to exclude the impact of realized/unrealized gain (loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expenses, and contribution to WSFS CARES Foundation; • PPNR % is a non-GAAP measure that divides (i) PPNR (annualized) by (ii) average assets for the applicable period; • Core PPNR % is a non-GAAP measure that divides (i) core PPNR (annualized) by (ii) average assets for the applicable period; and • Core Return on Average Equity (ROE) is a non-GAAP measure that divides (i) Adjusted Net Income (non-GAAP) attributable to WSFS by (ii) average stockholders’ equity for the applicable period. • Effective AOCI is a non-GAAP measure that adds (i) unrealized losses on AFS securities, (ii) unrealized holding losses on securities transferred from AFS to HTM, and (iii) unrecognized fair value losses on HTM securities; • Adjusted risk weighted assets is a non-GAAP measure that adjusts the Bank’s risk weighted assets determined in accordance with GAAP to exclude our AFS and HTM securities; • Adjusted average assets is a non-GAAP measure that adjusts the Bank’s average assets determined in accordance with GAAP to exclude our AFS and HTM securities; • Adjusted tangible assets is a non-GAAP measure that adjusts risk weighted assets determined in accordance with GAAP to exclude our AFS and HTM securities ; • Adjusted TCE is a non-GAAP measure that adjusts TCE to exclude unrecognized fair value losses on HTM securities; • Adjusted TCE ratio is a non-GAAP measure (i) adjusted TCE by (ii) adjusted tangible assets; • Adjusted total risk-based capital is a non-GAAP measure that adjusts total risk-based capital determined in accordance with GAAP to exclude effective AOCI; • Adjusted total risk-based capital ratio is a non-GAAP measure that divides (i) adjusted total risk-based capital by (ii) adjusted risk weighted assets; • Adjusted common equity Tier 1 capital is a non-GAAP measure that adjusts common equity Tier 1 capital determined in accordance with GAAP to exclude effective AOCI; • Adjusted common equity Tier 1 capital ratio is a non-GAAP measure that divides (i) adjusted common equity Tier 1 capital by (ii) adjusted risk weighted assets; • Adjusted Tier 1 capital is a non-GAAP measure that adjusts Tier 1 capital determined in accordance with GAAP to exclude effective AOCI; • Adjusted Tier 1 leverage ratio is a non-GAAP measure that divides (i) adjusted Tier 1 capital by (ii) adjusted average assets. • Coverage ratio including the remaining credit marks and excluding HTM securities is a non-GAAP measure that adjusts the coverage ratio to include the impact of the remaining credit marks on the acquired loan portfolios and exclude the impact of HTM securities.

 
19 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands, except per share data) December 31, 2023 September 30, 2023 December 31, 2022 Calculation of tangible common equity ratio: Total Assets (GAAP) $ 20,594,672 $ 20,040,992 $ 19,914,755 Less: Goodwill and other intangible assets 1,004,560 1,008,472 1,012,232 Total tangible assets (non-GAAP) $ 19,590,112 $ 19,032,520 $ 18,902,523 Total stockholders’ equity of WSFS (GAAP) $ 2,477,636 $ 2,242,795 $ 2,205,113 Less: Goodwill and other intangible assets 1,004,560 1,008,472 1,012,232 Total tangible common equity (non-GAAP) $ 1,473,076 $ 1,234,323 $ 1,192,881 Equity to asset ratio (GAAP) 12.03 % 11.19 % 11.07 % Tangible common equity to tangible assets ratio (non-GAAP) 7.52 % 6.49 % 6.31 % Calculation of tangible common book value (TBV) per share excluding AOCI: Total stockholders’ equity of WSFS (GAAP) $ 2,477,636 $ 2,242,795 $ 2,205,113 Total tangible common equity (non-GAAP) $ 1,473,076 $ 1,234,323 $ 1,192,881 Less: AOCI (593,991) (780,711) (675,844) Tangible common equity ex-AOCI (non-GAAP) $ 2,067,067 $ 2,015,034 $ 1,868,725 Number of shares of common stock outstanding (000s) 60,538 60,728 61,612 Book value per share (GAAP) $ 40.93 $ 36.93 $ 35.79 Tangible common book value per share (non- GAAP) $ 24.33 $ 20.33 $ 19.36 Tangible common book value per share excluding AOCI (non-GAAP) $ 34.14 $ 33.18 $ 30.33 Three Months Ended (dollars in thousands) December 31, 2023 September 30, 2023 December 31, 2022 Net interest income (GAAP) $ 178,127 $ 182,602 $ 193,886 Core net interest income (non-GAAP) $ 178,127 $ 182,602 $ 193,886 Noninterest income (GAAP) $ 87,205 $ 72,668 $ 64,880 Less/(plus): Unrealized gain (loss) on equity investments, net 338 (5) (8) Less: Realized gain on sale of equity investment, net 9,493 — — Plus: Visa derivative valuation adjustment (605) (750) (592) Core fee revenue (non-GAAP) $ 77,979 $ 73,423 $ 65,480 Core net revenue (non-GAAP) $ 256,106 $ 256,025 $ 259,366 Core net revenue (non-GAAP) (tax- equivalent) $ 256,523 $ 256,412 $ 260,058 Noninterest expense (GAAP) $ 147,646 $ 139,689 $ 132,903 Less: FDIC special assessment 5,052 — — Less: Corporate development expense 282 113 1,070 Less/(plus): Restructuring expense 557 — (319) Less: Contribution to WSFS CARES Foundation 2,000 — — Core noninterest expense (non-GAAP) $ 139,755 $ 139,576 $ 132,152 Core efficiency ratio (non-GAAP) 54.5 % 54.4 % 50.8 % Core fee revenue ratio (non-GAAP)(tax- equivalent) 30.4 % 28.6 % 25.2 %

 
20 Appendix: Non-GAAP Financial Information 1 Pre-tax adjustments include realized/unrealized gain/(loss) on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, corporate development and restructuring expense, and contribution to WSFS Cares Foundation Three Months Ended (dollars in thousands, except per share data) December 31, 2023 September 30, 2023 December 31, 2022 GAAP net income attributable to WSFS $ 63,908 $ 74,166 $ 84,449 Plus/(less): Pre-tax adjustments1 (1,335) 868 1,351 Plus: Tax adjustments: BOLI surrender 7,056 — — (Plus)/less: Tax impact of pre-tax adjustments 65 (232) (308) Adjusted net income (non-GAAP) attributable to WSFS $ 69,694 $ 74,802 $ 85,492 Net income (GAAP) $ 63,505 $ 74,263 $ 84,435 Plus: Income tax provision 29,365 22,904 28,032 Plus: Provision for credit losses 24,816 18,414 13,396 PPNR (Non-GAAP) 117,686 115,581 125,863 Plus/(less): Pre-tax adjustments1 (1,335) 868 1,351 Core PPNR (Non-GAAP) $ 116,351 $ 116,449 $ 127,214 Average Assets $ 20,319,204 $ 20,264,764 $ 19,876,322 PPNR % (Non-GAAP) 2.30 % 2.26 % 2.51 % Core PPNR % (Non-GAAP) 2.27 % 2.28 % 2.54 % GAAP return on average assets (ROA) 1.25 % 1.45 % 1.69 % Plus/(less): Pre-tax adjustments1 (0.03) 0.02 0.03 Plus: Tax adjustments: BOLI surrender 0.14 — — (Plus)/less: Tax impact of pre-tax adjustments — (0.01) (0.01) Core ROA (non-GAAP) 1.36 % 1.46 % 1.71 % Earnings per share (diluted)(GAAP) $ 1.05 $ 1.22 $ 1.37 Plus/(less): Pre-tax adjustments1 (0.02) 0.01 0.02 Plus: Tax adjustments: BOLI surrender 0.12 — — (Plus)/less: Tax impact of pre-tax adjustments — — (0.01) Core earnings per share (non-GAAP) $ 1.15 $ 1.23 $ 1.38

 
21 Appendix: Non-GAAP Financial Information Three Months Ended (dollars in thousands) December 31, 2023 September 30, 2023 December 31, 2022 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS​ $ 63,908 $ 74,166 $ 84,449 Plus: Tax effected amortization of intangible assets​ 2,976 2,984 2,925 Net tangible income (non-GAAP)​ $ 66,884 $ 77,150 $ 87,374 Average stockholders' equity of WSFS​ $ 2,281,076 $ 2,327,853 $ 2,128,869 Less: Average goodwill and intangible assets​ 1,007,136 1,007,803 1,014,985 Net average tangible common equity​ $ 1,273,940 $ 1,320,050 $ 1,113,884 Return on average equity (GAAP) 11.12 % 12.64 % 15.74 % Return on average tangible common equity (non-GAAP) 20.83 % 23.19 % 31.12 % Calculation of core return on average tangible common equity: Adjusted net income (non-GAAP) attributable to WSFS​ $ 69,694 $ 74,802 $ 85,492 Plus: Tax effected amortization of intangible assets​ 2,976 2,984 2,925 Core net tangible income (non-GAAP)​ $ 72,670 $ 77,786 $ 88,417 Net average tangible common equity​ $ 1,273,940 $ 1,320,050 $ 1,113,884 Core return on average equity (non-GAAP) 12.12 % 12.75 % 15.93 % Core return on average tangible common equity (non-GAAP) 22.63 % 23.38 % 31.49 % Three Months Ended (dollars in thousands) December 31, 2023 Calculation of effective AOCI: Unrealized losses on AFS securities ​ $ 499,932 Unrealized losses on securities transferred from AFS to HTM 91,523 Unrecognized fair value on HTM securities 72,626 Effective AOCI (non-GAAP) $ 664,081 Calculation of coverage ratio including the estimated remaining credit marks and excluding HTM securities: Coverage ratio 1.35 % Plus: Estimated remaining credit marks on the acquired loan portfolios 0.17 Less: HTM securities 0.12 Coverage ratio including the estimated remaining credit marks and excluding HTM securities (non-GAAP) 1.64 %

 
v3.23.4
COVER PAGE
Jan. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 25, 2024
Entity Registrant Name WSFS Financial Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 001-35638
Entity Tax Identification Number 22-2866913
Entity Address, Address Line One 500 Delaware Ave
Entity Address, City or Town Wilmington
Entity Address, State or Province DE
Entity Address, Postal Zip Code 19801
City Area Code 302
Local Phone Number 792-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol WSFS
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000828944
WSFS Financial (NASDAQ:WSFS)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more WSFS Financial Charts.
WSFS Financial (NASDAQ:WSFS)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more WSFS Financial Charts.