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 gain on equity investments, net, Visa derivative valuation adjustment, FDIC special assessment, and corporate development ...

WSFS Financial Corporation (NASDAQ:WSFS) Q2 2024 Earnings Conference Call July 26, 2024 1:00 PM ET Company Participants Arthur Bacci - Chief Wealth Officer & Interim CFO Rodger Levenson - Chairman, President & |CEO Shari Kruzinski - Chief Consumer Banking Officer Stephen Clark - Chief Commercial Banking Officer Conference Call Participants Russell Gunther - Stephens Manuel Navas - D.A. Davidson Kelly Motta - KBW Frank Schiraldi - Piper Sandler Jacob Civiello - Janney Montgomery Scott Operator Thank you for ...

Core Insights - WSFS Financial reported revenue of $266.05 million for the quarter ended June 2024, reflecting a 7% increase year-over-year [5] - The company achieved an EPS of $1.08, down from $1.16 in the same quarter last year [5] - The reported revenue exceeded the Zacks Consensus Estimate of $254.54 million, resulting in a surprise of +4.52% [1] - The EPS also surpassed expectations with a surprise of +3.85%, against a consensus estimate of $1.04 [1] Financial Metrics - Net Interest Margin was reported at 3.9%, slightly above the average estimate of 3.8% from two analysts [3] - The Efficiency Ratio stood at 58.5%, better than the estimated 59% [3] - Net Interest Income was $174.45 million, slightly below the estimate of $174.89 million [3] - Total Non-Interest Income reached $91.60 million, exceeding the average estimate of $79.64 million [3] - Mortgage banking activities netted $2.22 million, outperforming the estimated $1.70 million [3] Stock Performance - Over the past month, WSFS shares have returned +23.7%, contrasting with a -0.3% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

This quarterly report represents an earnings surprise of 3.85%. A quarter ago, it was expected that this bank holding company would post earnings of $1.07 per share when it actually produced earnings of $1.11, delivering a surprise of 3.74%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. While WSFS has outperformed the market so far this year, the question t ...

Financial Performance - Core ROA for Q2 2024 was 1.25% and core EPS was $1.08, reflecting a solid performance driven by fee revenue growth of 13%[4] - Total net revenue for Q2 2024 was $266.0 million, up from $251.1 million in Q1 2024, driven by a 20.7% increase in fee revenue[22] - GAAP net income attributable to WSFS for 2Q 2024 was $69.3 million, compared to $65.8 million in Q1 2024 and $68.7 million in Q2 2023[96] - Adjusted net income (non-GAAP) attributable to WSFS was $133.964 million for the latest quarter, compared to $132.097 million in the previous quarter, reflecting a slight increase[111] - Core earnings per share (non-GAAP) decreased to $1.08 from $1.11 in the previous quarter[114] Loan and Deposit Growth - Gross loan growth was 1% (6% annualized) from Q1 2024, primarily due to increases in commercial and industrial (C&I) and consumer portfolios[8] - Customer deposits increased by $30.6 million from June 30, 2023, primarily due to transactional accounts[14] - The gross loan and lease portfolio increased by $189.2 million, or 1% (6% annualized), compared to Q1 2024[32] - The loan-to-deposit ratio was 80% at June 30, 2024, indicating continued capacity for future loan growth[63] - Total customer deposits reached $16.291 billion, a slight increase from $16.187 billion in the previous quarter[124] Noninterest Income and Expenses - Core fee revenue increased by $18.6 million, or 28%, compared to Q2 2023, driven by strong performance in various business segments[42] - Noninterest income for 2Q 2024 was $91.6 million, up from $75.9 million in Q1 2024 and $66.9 million in Q2 2023[95] - Core noninterest expense increased by $17.5 million, or 13%, compared to Q2 2023, primarily due to higher salaries and benefits[45] - Total noninterest expense for the three months ended June 30, 2024, was $155.8 million, compared to $149.1 million in the previous quarter[103] Asset Quality - Problem loans increased to 4.76% of total gross loans, while net charge-offs remained consistent at 44 basis points[25] - The allowance for credit losses (ACL) was $198.3 million as of June 30, 2024, an increase of $5.6 million from Q1 2024[40] - Nonperforming assets decreased by $1.8 million, or 1 basis point of total assets, compared to Q1 2024, while net charge-offs increased to $14.2 million, or 0.44% of average gross loans[68] - The ratio of nonperforming assets to total assets improved to 0.32% from 0.16% a year earlier, indicating enhanced asset quality[105] Capital and Shareholder Returns - WSFS repurchased 897,461 shares of common stock at an average price of $44.20 per share, totaling $39.7 million[30] - Total capital returned to stockholders through share repurchases and dividends was $78.7 million for the year[50] - The common equity to assets ratio was 12.00% and tangible common equity to tangible assets ratio was 7.56% as of June 30, 2024[49] - Book value per share increased to $42.01, up $0.84 or 2% from March 31, 2024, while tangible book value per share rose to $25.20, an increase of $0.68 or 3%[78] - The market price of common stock closed at $47.00 on June 30, 2024, compared to $37.72 a year earlier, marking a 24.06% increase[108] Operational Metrics - The efficiency ratio improved to 58.46% in Q2 2024 from 59.28% in Q1 2024[60] - The core efficiency ratio was 59.8% in Q2 2024, compared to 58.6% in Q1 2024 and 55.5% in Q2 2023[74] - Total assets reached $20,786,328, reflecting a stable growth compared to previous quarters[1] - Total assets (GAAP) increased to $20.74 billion as of June 30, 2024, from $20.58 billion at the end of 1Q 2024[95] - The company maintained 114 offices, consistent with the previous year, indicating stability in its operational footprint[108] Tax and Regulatory Compliance - The effective tax rate decreased to 23.5% in 2Q 2024 from 24.4% in 1Q 2024 and 25.1% in 2Q 2023, primarily due to solar tax credit investments[75] - As of June 30, 2024, the Tier 1 leverage ratio was 10.44%, Common Equity Tier 1 capital ratio was 13.07%, and Total Risk-based capital ratio was 14.32%, all exceeding regulatory benchmarks[77] - The common equity Tier 1 capital ratio was reported at 13.07%, down from 13.68% in June 2023, but still above the well-capitalized threshold[105]

The upcoming report from WSFS Financial (WSFS) is expected to reveal quarterly earnings of $1.04 per share, indicating a decline of 10.3% compared to the year-ago period. Analysts forecast revenues of $254.54 million, representing an increase of 2.3% year over year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Before a ...

Company Overview - WSFS Financial (WSFS) shares increased by 7.1% to close at $54.36, with notable trading volume compared to typical sessions, and a total gain of 15.3% over the past four weeks [1][2] Market Context - The positive movement in WSFS shares is part of a broader trend in finance stocks, which have been affected by the Federal Reserve's monetary tightening. As interest rates decrease, banks' funding costs are expected to decline, and loan demand is anticipated to improve, leading to increased investor confidence in the banking sector [2][5] Earnings Expectations - WSFS is projected to report quarterly earnings of $1.04 per share, reflecting a year-over-year decline of 10.3%. Revenue is expected to reach $254.54 million, marking a 2.3% increase from the previous year [6] - The consensus EPS estimate for WSFS has been revised 1.4% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not correlate with price appreciation [7] Industry Performance - WSFS operates within the Zacks Financial - Savings and Loan industry, which has seen positive movements, including Flushing Financial (FFIC) shares rising by 5.3% to $15.30, with a 20.5% return over the past month [8]

Company Overview - Citizens Financial Group, Inc. (CFG) has a healthy loan and deposit base, with loans and leases and deposits recording a CAGR of 6.3% and 6.4% respectively over the last three years [1] - WSFS Financial Corporation has $20.6 billion in assets and $80.5 billion in assets under management as of March 31, 2024, operating from 114 offices across multiple states [4] - HomeStreet, Inc. has total assets of $9.5 billion and is engaged in commercial banking, mortgage banking, and consumer/retail banking activities [28] Financial Performance - CFG's market capitalization is $16.69 billion, with a current-year earnings per share estimate of $3.16 [1] - WSFS has a market capitalization of $2.82 billion, with a current-year earnings estimate of $4.27, indicating a 6.2% year-over-year decline [6] - HomeStreet's revenues for 2024 are expected to be $176 million, with shares gaining 9% in the past year [30] Industry Trends - The Zacks Savings and Loan industry is facing challenges due to high interest rates, which have led to increased funding costs and pressure on net interest income (NII) [8][10] - The industry is currently ranked 190 by Zacks, placing it in the bottom 24% of over 250 Zacks industries, indicating bleak near-term prospects [14] - The industry's earnings estimates for 2024 have moved 39.2% downward over the past year, reflecting a loss of confidence in earnings growth potential [15] Growth Outlook - CFG's total deposits continued to grow in the first quarter of 2024, driven by retail and private banking [1] - WSFS expects mid-single-digit loan growth and low-single-digit deposit growth for 2024, with net interest margin projected to be in the range of 3.80-3.90% [5] - HomeStreet's merger with FirstSun Capital Bancorp is expected to create a leading regional bank with $17 billion in total assets, enhancing its market presence [31] Valuation Metrics - The Zacks Savings and Loan industry has a trailing 12-month P/TBV of 1.25X, below the median level of 1.37X over the past five years [20] - The industry is trading at a discount compared to the S&P 500, which has a trailing 12-month P/TBV ratio of 15.32X [26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35638 WSFS FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 22-2866913 (State or other juri ...

Financial Data and Key Metrics Changes - The company reported core earnings per share of $1.11, core return on tangible common equity of 19.2%, and core return on assets of 1.31% for Q1 2024 [6] - The core net interest margin was 3.84%, with an interest-bearing deposit beta of 47% [9] - Average deposit balances increased by 4.9% annualized linked quarter, while quarter-end customer deposits were up 3% linked quarter [8] Business Line Data and Key Metrics Changes - Gross loan growth was 2% linked quarter or 7% annualized, with growth across commercial mortgage, consumer, and C&I books [7] - Core fee revenue increased by 2.7% linked quarter, excluding income from the equity position in Spring EQ [10] - The core efficiency ratio stood at 58.6%, with noninterest expenses increasing by $7.2 million or 5% linked quarter [11] Market Data and Key Metrics Changes - Asset quality remained stable, with problem loans and delinquencies flat at 4.41% and 81 basis points of gross loans, respectively [13] - Net charge-offs decreased to 27 basis points of average gross loans, including a net recovery [13] Company Strategy and Development Direction - The company is focused on delivering top-quintile financial performance in 2024 and is tracking well to the full-year outlook communicated in January [14] - There is no current focus on traditional bank M&A, as the company believes it is uniquely positioned for significant organic growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to return to profitability levels in the Cash Connect business as they optimize cash usage [19] - The company anticipates a plateauing of net interest margin in Q2, with expectations of recovery in the second half of the year [32] Other Important Information - The company added 4,336 serviced non-bank ATMs during the quarter due to the exit of a large industry participant [12] - A one-time adjustment of $1.3 million in deferred revenue impacted wealth management revenue this quarter [26] Q&A Session Summary Question: Market share and competitor exit in Cash Connect - Management confirmed that U.S. Bancorp exited the space, allowing the company to add approximately 12,000 units [16] Question: Strategic shift regarding Upstart partnership - Management indicated that the Upstart partnership was paused due to unsatisfactory returns on cross-sell opportunities, but they remain well-reserved for expected losses [21][22] Question: M&A appetite and deposit discussions - Management stated that they are not currently focused on traditional bank M&A but continue to invest in wealth and commercial areas [24] Question: Wealth management and deferred revenue - A one-time item related to deferred revenue adjustment was clarified, with expectations of recovery in future quarters [26] Question: NIM outlook and deposit costs - Management discussed the impact of rising deposit costs on NIM, with expectations of stabilization and recovery in the second half of the year [30][32] Question: Charge-offs and guidance - Management expects charge-offs to plateau and potentially decline, particularly in the Upstart portfolio [39] Question: Loan growth and pipelines - The commercial bank's pipeline remains strong, with no significant impact from high rates on demand [42]