Financial Position - As of June 30, 2023, WSFS Financial Corporation had total assets of $20.4 billion and assets under management (AUM) and assets under administration (AUA) of $67.9 billion[203]. - The total loan and lease portfolio was $12.3 billion, with a commercial loan and lease portfolio of $9.6 billion[205]. - Stockholders' equity increased by $109.5 million from December 31, 2022, primarily due to $131.1 million in earnings[210]. - The book value per share of common stock was $37.89, an increase of $2.10 from $35.79 at December 31, 2022[212]. - As of June 30, 2023, the company had $1.1 billion in cash, cash equivalents, and restricted cash, with uninsured deposits estimated at $6.0 billion, representing 37% of total customer deposits[218]. - The company's readily available, secured borrowing capacity was $5.2 billion from the FHLB and $0.2 billion through the Federal Reserve Discount Window, with a ratio of secured borrowing capacity to estimated unprotected deposits at 186%[219]. - As of June 30, 2023, tangible common equity was $1,310,381 thousand, compared to $1,192,881 thousand as of December 31, 2022[251]. Income and Expenses - Net income for the three months ended June 30, 2023, was $68.7 million, an increase from $60.7 million for the same period in 2022[231]. - For the six months ended June 30, 2023, net income was $131.1 million, compared to $64.5 million for the same period in 2022[232]. - Noninterest income decreased by $5.2 million, mainly from declines in banking fees and capital markets income[233]. - Noninterest expense rose by $7.2 million, driven by higher variable operating costs and salaries[233]. - Noninterest income for the six months ended June 30, 2023, was $130.0 million, a decrease of $2.6 million from $132.6 million in the same period of 2022[244]. - Noninterest expense for the three months ended June 30, 2023, was $141.3 million, an increase of $7.2 million from $134.0 million for the same period in 2022[245]. Credit and Loans - The allowance for credit losses (ACL) on loans and leases increased by $29.9 million due to economic forecast impacts and net loan originations[209]. - The ratio of allowance for credit losses to total loans and leases was 1.28% as of June 30, 2023, compared to 1.17% at December 31, 2022[224]. - The provision for credit losses for the three months ended June 30, 2023, was $15.8 million, an increase of $7.6 million compared to $8.3 million for the same period in 2022[239]. - The provision for credit losses for the six months ended June 30, 2023 increased by $17.6 million due to economic uncertainty[233]. - The net charge-offs for the six months ended June 30, 2023, were $24,835 thousand, with a ratio of net charge-offs to average gross loans at 0.41%[242]. Interest Income and Margin - Net interest income increased by $28.2 million due to the rising interest rate environment and balance sheet size and mix[233]. - For the six months ended June 30, 2023, net interest income increased by $72.2 million compared to the same period in 2022[233]. - The net interest margin for the six months ended June 30, 2023, was 4.18%, a 98 basis point increase from 3.20% in the same period of 2022[237]. - Total interest-earning assets amounted to $17.78 billion with a net interest margin of 4.11% for the three months ended June 30, 2023[234]. - The interest rate spread for the six months ended June 30, 2023, was 3.56%, compared to 3.12% for the same period in 2022[236]. Asset Quality - Total nonperforming assets decreased by $9.8 million from December 31, 2022, to June 30, 2023, with a nonperforming assets to total assets ratio of 0.16%[224]. - The allowance for credit losses increased to $171.9 million at June 30, 2023, from $151.9 million at December 31, 2022, with a ratio of allowance for credit losses to total loans and leases at 1.28%[241]. Shareholder Actions - The company repurchased 357,278 shares of common stock at an average price of $38.32 per share, totaling approximately $13.7 million during the quarter[209]. - As of June 30, 2023, WSFS had $135.0 million in cash reserved for share repurchases, dividends, acquisitions, and strategic growth plans[215]. Economic Environment - The economic value of equity ratio decreased to 20.99% in a stable interest rate environment as of June 30, 2023, from 23.87% at December 31, 2022[230]. - The FDIC proposed a special deposit insurance assessment of 3.13 basis points on uninsured deposits exceeding $5 billion, applicable starting Q1 2024[256].

WSFS Financial Corporation (NASDAQ:WSFS) Q2 2023 Earnings Conference Call July 25, 2023 1:00 PM ET Company Participants Dominic Canuso - CFO Rodger Levenson - Chairman, President & CEO Art Bacci - Chief Wealth Officer Steve Clark - Chief Commercial Banking Officer Shari Kruzinski - Chief Consumer Banking Officer Conference Call Participants Frank Schiraldi - Piper Sandler Michael Perito - KBW Feddie Strickland - Janney Montgomery Scott Manuel Navas - D.A. Davidson Russell Gunther - Stephens Operator Ladies ...

Financial Position - As of March 31, 2023, WSFS Financial Corporation had total assets of $20.3 billion and assets under management (AUM) and assets under administration (AUA) of $65.6 billion[191][195]. - Total assets increased by $404.5 million from December 31, 2022, while total liabilities rose by $303.1 million[198]. - Stockholders' equity increased by $101.2 million, primarily due to $62.4 million in earnings[198]. - Book value per share of common stock was $37.57, an increase of $1.78 from $35.79 at December 31, 2022[200]. - Stockholders' equity increased to $2,306,362 thousand as of March 31, 2023, from $2,205,113 thousand as of December 31, 2022[235]. - Tangible common equity increased to $1,298,112 thousand as of March 31, 2023, compared to $1,192,881 thousand as of December 31, 2022[235]. Loan and Lease Portfolio - The total loan and lease portfolio amounted to $12.1 billion, with a commercial loan and lease portfolio of $9.5 billion[193]. - The total loans and leases increased to $12.04 billion in Q1 2023 from $11.42 billion in Q1 2022, with significant growth in commercial loans and consumer loans[222]. - The company had total commitments to extend credit of $3.8 billion as of March 31, 2023[209]. Income and Expenses - Net income for the three months ended March 31, 2023, was $62.4 million, a significant increase from $3.8 million for the same period in 2022[219]. - Net interest income increased by $44.0 million, driven by the balance sheet size and mix along with the rising interest rate environment[221]. - Noninterest income increased by $2.6 million, attributed to higher Cash Connect income, despite declines in mortgage banking fees and other income sources[221]. - Noninterest expense decreased by $41.4 million, primarily due to higher corporate development and restructuring costs from the combination with Bryn Mawr Bank Corporation in 2022[221]. - Noninterest expense for the three months ended March 31, 2023, was $133.0 million, a decrease of $41.4 million (23.7%) from $174.5 million for the same period in 2022[229]. - Income tax expense increased to $20.9 million for the three months ended March 31, 2023, compared to $1.7 million for the same period in 2022[230]. - The effective tax rate decreased to 25.0% for the three months ended March 31, 2023, from 30.5% for the same period in 2022[231]. Credit Quality - The allowance for credit losses (ACL) on loans and leases increased by $17.3 million due to economic forecast impacts and net loan originations[197]. - Total nonperforming assets decreased by $10.2 million from December 31, 2022, to March 31, 2023, with a ratio of nonperforming assets to total assets at 0.16%[212]. - The ratio of allowance for credit losses to total loans and leases was 1.28% as of March 31, 2023, compared to 1.17% at December 31, 2022[212]. - The provision for credit losses rose by $10.0 million due to economic uncertainty and net loan growth[221]. - The provision for credit losses was $29.0 million for Q1 2023, up from $19.0 million in Q1 2022, reflecting economic uncertainty and net loan growth[225]. - The allowance for credit losses rose to $169.2 million as of March 31, 2023, from $151.9 million at December 31, 2022, with a ratio of allowance to total loans and leases at 1.28%[226]. - The company recorded net charge-offs of $11.7 million for Q1 2023, with a net charge-off ratio of 0.40%[227]. Interest Rates and Margins - The net interest margin improved to 4.25% in Q1 2023, a 124 basis point increase from 3.01% in Q1 2022, driven by a favorable increase of 102 basis points from the asset-sensitive balance sheet[223]. - The interest rate spread widened to 3.71% in Q1 2023 from 2.93% in Q1 2022, reflecting the rising interest rate environment[223]. - Interest-sensitive assets exceeded interest-bearing liabilities maturing or repricing within one year by $679.1 million as of March 31, 2023[216]. Cash Management - The Cash Connect business managed approximately $1.7 billion in total cash and serviced about 26,100 non-bank ATMs nationwide[193]. - As of March 31, 2023, the company had a readily available, secured borrowing capacity of $4.2 billion from the FHLB, $1.3 billion through the Federal Reserve Discount Window, and $0.2 billion through the Bank Term Funding Program[207]. Regulatory and Compliance - Estimated uninsured deposits were $5.8 billion, or 36% of total customer deposits, as of March 31, 2023[206]. - The company is evaluating the impact of the new small business lending data collection rule finalized by the CFPB on March 30, 2023[240]. - The transition from LIBOR is expected to span several reporting periods through June 2023, with efforts led by a cross-functional team[244]. - The company is actively migrating its existing LIBOR indexed loan portfolio away from the LIBOR index, primarily to Term SOFR[244]. - The company had approximately $2.5 billion of loans and $2.0 billion of derivatives indexed to LIBOR as of March 31, 2023[243].

WSFS Financial Corporation 1 1Q 2023 Earnings Release Supplement April 2023 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 objec ...

Financial Data and Key Metrics Changes - The first quarter core PPNR percentage was 2.29% and core ROA was 1.27% [6] - Gross loans grew by $230 million in the quarter, with $155 million from commercial loans and $68 million from the Spring EQ consumer partnership [10] - The first quarter net interest margin was 4.25%, with loan yields increasing by 44 basis points to 6.42% [11] - Core fee revenue was $63.7 million, representing a 5% growth compared to the first quarter of 2022 [12] - The efficiency ratio for the quarter was 53.9%, indicating continued discipline in cost management [12] Business Line Data and Key Metrics Changes - Non-interest-bearing demand deposits comprised 33% of customer deposits, while no and low interest demand made up 53% [8] - Core fee revenue growth was 7% year-over-year when excluding fee income from BMT Insurance Advisors, which was sold in 2Q of 2022 [12] - Delinquencies increased by 32 basis points to 83 basis points of gross loans, primarily due to two C&I long-term problem loan relationships [14] Market Data and Key Metrics Changes - 73% of deposits are insured, with 64% FDIC insured and another 9% collateralized or otherwise protected [7] - The company utilized $1.1 billion of wholesale funding, which is only 6% of total balance sheet funding [8] - The ACL coverage ratio increased by 11 basis points to 1.28% [16] Company Strategy and Development Direction - The company remains focused on its relationship-based banking model and is well-positioned to continue executing its strategic plan objectives [17] - The management emphasized the importance of evaluating the macroeconomic and credit environment before making capital return decisions [22] - The company is open to both organic growth and potential acquisitions, while also considering share repurchases as excess capacity allows [22] Management Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic outlook and near-term market conditions but expressed confidence in the company's position [17] - The company plans to provide an update to its full-year outlook when reporting second-quarter earnings [16] - Management noted that deposit betas had increased to 28%, with potential for them to end in the mid to high 40s by the end of 2023 [18] Other Important Information - The company’s capital levels remain well above well-capitalized standards [9] - Problem assets continue to show positive trends post-COVID, with NPAs remaining stable at historical lows [14] - The investment portfolio is expected to cash flow at $50 million a month, which will fund some of the loan growth [25] Q&A Session Summary Question: Thoughts on deposit betas and industry trends - Management indicated that deposit betas increased to 28%, slightly higher than earlier expectations, with potential to reach mid to high 40s by year-end [18][19] Question: Non-interest-bearing deposit base and future trends - Management expects continued opportunities to grow the trust deposit business, though impacted by capital market flows [21] Question: Capital allocation strategy between organic growth and buybacks - Management stated that capital return decisions are based on the economic environment, with a focus on funding organic growth first [22] Question: Liquidity capacity and wholesale funding usage - Management confirmed a total capacity of $6.3 billion at FHLB, with expectations to utilize wholesale funding as needed based on loan growth [24][25] Question: Future provision levels and economic factors - Management noted that the ACL model has captured current economic uncertainty, with future provisions driven by net loan growth [27] Question: Charge-offs in consumer portfolios - Management clarified that charge-offs from the Upstart portfolio are expected to stabilize, with the focus on larger portfolios driving future charge-offs [29][30] Question: Securities portfolio repositioning - Management continues to evaluate the securities portfolio but is currently comfortable with its cash flow position [31] Question: Loan growth outlook and appetite - Management remains open for business, focusing on supporting existing customers while exploring new opportunities [34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 | | --- | --- | | (St ...

Financial Data and Key Metrics Changes - The core net interest margin for Q4 2022 was 4.49%, an increase of 50 basis points or 13% compared to Q3 2022 [6] - Core EPS, core ROA, and core PPNR increased by 12%, 13%, and 14% respectively from the previous quarter [8] - Total customer deposits declined approximately 2% linked quarter or 6% annualized, primarily due to lower institutional trust deposits and seasonal runoff [7] Business Line Data and Key Metrics Changes - Loan growth was solid, with expectations for mid-single-digit growth across all lending portfolios in 2023 [8][9] - Core fee revenue growth is anticipated in the mid- to high single digits, driven by Cash Connect's variable rate fee pricing and franchise growth [12] - The investment portfolio has grown to be in the high 20% of total assets, generating over $40 million of pretax income in 2022 [10] Market Data and Key Metrics Changes - The company expects deposits to remain relatively flat by year-end, with a loan-to-deposit ratio of 73% [9] - The company has a well-diversified deposit base, with over 50% of deposits coming from outside the consumer and branch network [23] Company Strategy and Development Direction - The company aims to optimize franchise investments made over the past several years following the successful integration of BMT Bank [8] - The strategy includes deploying excess liquidity into the investment portfolio while maintaining a focus on loan growth [10] - The company plans to continue investing in technology and talent to enhance customer experiences and internal efficiencies [13] Management's Comments on Operating Environment and Future Outlook - Management expects muted economic growth in the near term but is optimistic about the company's position to capitalize on growth opportunities [8] - The outlook for 2023 includes expectations for a flat yield environment and mild recessionary growth rates in the second half of the year [9] - Management highlighted the importance of maintaining a competitive deposit pricing strategy to retain and grow the customer base [9][23] Other Important Information - The company anticipates a core efficiency ratio in the mid-50s, reflecting ongoing investments in the franchise [13] - Provision costs are expected to be between 40 to 50 basis points of average loans for the year, driven by loan growth and economic forecasts [12] Q&A Session Summary Question: Clarification on loan growth and cash flow from securities - Management confirmed that loan growth and cash flow from the investment portfolio are expected to offset each other, with funding potentially coming from wholesale borrowings [16] Question: Loan growth weighting throughout the year - Management indicated that the loan pipeline has been consistent, with no significant front-loading expected [21] Question: Deposit strategy and costs - Management discussed their deposit strategy, emphasizing a competitive approach to retain existing customers and attract new ones [22][23] Question: Impact of economic conditions on guidance - Management acknowledged that a mild recession could impact fee income, particularly in mortgage banking and wealth management [27] Question: Share buyback strategy - Management outlined a waterfall approach to capital allocation, balancing share repurchases with organic growth and capital needs [31] Question: Deposit beta and pricing strategies - Management confirmed that deposit betas have been increasing, with a focus on competitive pricing for CDs and variable rate products [34][36]

Part I - Financial Information [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements reflect the company's performance for the three and nine months ended September 30, 2022, and its financial position as of that date, significantly impacted by the Bryn Mawr Bank Corporation acquisition [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income attributable to WSFS increased to $73.4 million in Q3 2022 but decreased to $137.9 million year-to-date, primarily due to the BMBC merger's impact on net interest income and a large provision for credit losses Key Income Statement Data (in thousands, except per share data) | Metric | Q3 2022 | Q3 2021 | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income** | $176,831 | $104,491 | $469,004 | $325,425 | | **Provision for (recovery of) credit losses** | $7,454 | $(21,310) | $34,693 | $(109,033) | | **Noninterest Income** | $62,651 | $42,613 | $195,254 | $139,453 | | **Noninterest Expense** | $132,917 | $96,446 | $441,423 | $288,097 | | **Net Income Attributable to WSFS** | $73,382 | $54,406 | $137,926 | $215,155 | | **Diluted EPS** | $1.16 | $1.14 | $2.15 | $4.51 | [Consolidated Statements of Financial Condition](index=7&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets grew to $20.0 billion as of September 30, 2022, driven by the BMBC acquisition, which significantly increased loans, deposits, and goodwill, despite unrealized losses on investment securities Key Balance Sheet Data (in thousands) | Metric | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | $19,985,387 | $15,777,327 | | **Loans and leases, net** | $11,559,195 | $7,791,482 | | **Goodwill** | $883,637 | $472,828 | | **Total Deposits** | $16,725,208 | $13,240,062 | | **Total Liabilities** | $17,884,556 | $13,840,311 | | **Total Stockholders' Equity** | $2,100,831 | $1,937,016 | [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Detailed disclosures cover the BMBC acquisition's impact on assets, goodwill, and allowance for credit losses, alongside insights into the loan portfolio, credit quality, segment performance, and investment portfolio adjustments [Business Combinations](index=14&type=section&id=3.%20BUSINESS%20COMBINATIONS) The acquisition of Bryn Mawr Bank Corporation for $908.0 million on January 1, 2022, resulted in $410.8 million goodwill and significantly expanded WSFS's regional presence, adding substantial loans and deposits BMBC Acquisition Summary (in thousands) | Item | Value | | :--- | :--- | | **Total Consideration Transferred** | $908,032 | | **Fair Value of Net Assets Acquired** | $497,223 | | **Goodwill Resulting from Acquisition** | $410,809 | | **Assets Acquired:** | | | Loans and leases | $3,456,748 | | Investment securities | $500,400 | | **Liabilities Assumed:** | | | Deposits | $4,110,122 | - The BMBC merger resulted in the addition of **$49.6 million** to the allowance for credit losses, comprising **$26.1 million** for purchased credit deteriorated (PCD) loans and **$23.5 million** for non-PCD loans[53](index=53&type=chunk) - For the nine months ended September 30, 2022, the company incurred **$64.5 million** in corporate development and restructuring expenses, primarily related to the BMBC merger, including costs for severance, facility consolidation, and professional fees[61](index=61&type=chunk) [Investment Securities](index=20&type=section&id=6.%20INVESTMENTS) The company held $4.2 billion in AFS and $1.1 billion in HTM securities as of September 30, 2022, transferring $1.1 billion to HTM in Q2 2022 to mitigate capital impact from rising rates, resulting in $786.5 million gross unrealized AFS losses - During Q2 2022, the company transferred **$1.1 billion** (book value) of investment securities from available-for-sale to held-to-maturity to limit the impact of the rising interest rate environment on Accumulated Other Comprehensive Income[83](index=83&type=chunk) Investment Securities Portfolio (in thousands) | Security Type | Fair Value (Sep 30, 2022) | Fair Value (Dec 31, 2021) | | :--- | :--- | :--- | | **Available-for-Sale** | $4,153,615 | $5,205,311 | | **Held-to-Maturity** | $1,041,163 | $94,131 | - At September 30, 2022, the AFS portfolio had gross unrealized losses of **$786.5 million**. The company determined these losses were due to interest rate changes, not credit issues, and recorded no allowance for credit losses as it does not intend to sell before recovery[77](index=77&type=chunk)[90](index=90&type=chunk) [Allowance for Credit Losses and Credit Quality](index=26&type=section&id=8.%20ALLOWANCE%20FOR%20CREDIT%20LOSSES%20AND%20CREDIT%20QUALITY%20INFORMATION) The Allowance for Credit Losses increased to $146.2 million, primarily due to the BMBC acquisition, with nonaccrual loans at 0.17% of total loans and total Troubled Debt Restructurings at $18.2 million Allowance for Credit Losses Activity - YTD 2022 (in thousands) | Description | Amount | | :--- | :--- | | **Beginning Balance (Jan 1, 2022)** | $94,507 | | Initial allowance on acquired PCD loans | $26,103 | | Provision for credit losses | $34,687 | | Net Charge-offs | $(9,102) | | **Ending Balance (Sep 30, 2022)** | $146,195 | - The increase in the ACL was primarily due to an initial allowance of **$49.6 million** recorded for the BMBC Merger, which included **$23.5 million** for non-PCD loans (recorded as provision) and **$26.1 million** for PCD loans (gross-up of balance sheet)[98](index=98&type=chunk) Credit Quality Metrics | Metric | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Nonaccrual Loans** | $19,369 | $16,609 | | **% of Total Loans** | 0.17% | 0.21% | | **Total TDRs** | $18,187 | $14,960 | [Goodwill and Intangible Assets](index=35&type=section&id=10.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Goodwill increased to $883.6 million due to the BMBC acquisition, which also added $73.1 million in intangible assets, with no impairment recorded during the period - Goodwill increased by **$410.8 million** from the BMBC acquisition, bringing the total to **$883.6 million** as of September 30, 2022[44](index=44&type=chunk)[123](index=123&type=chunk) - The BMBC merger added **$73.1 million** in intangible assets, including **$10.9 million** in core deposit intangibles, **$53.0 million** in customer relationships, and **$2.9 million** for the Bryn Mawr Trust tradename[123](index=123&type=chunk) - No goodwill impairment was recorded during the nine months ended September 30, 2022, based on qualitative assessments[122](index=122&type=chunk) [Segment Information](index=48&type=section&id=16.%20SEGMENT%20INFORMATION) The company operates through WSFS Bank, Cash Connect®, and Wealth Management segments, with Wealth Management showing significant growth in revenue and assets post-BMBC acquisition Income Before Taxes by Segment (YTD 2022 vs YTD 2021, in thousands) | Segment | YTD 2022 | YTD 2021 | | :--- | :--- | :--- | | **WSFS Bank** | $125,466 | $247,910 | | **Cash Connect®** | $6,153 | $7,771 | | **Wealth Management** | $56,523 | $30,133 | | **Total** | **$188,142** | **$285,814** | Total Segment Assets (in thousands) | Segment | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **WSFS Bank** | $18,908,911 | $14,973,045 | | **Cash Connect®** | $565,974 | $484,591 | | **Wealth Management** | $510,502 | $319,691 | | **Total** | **$19,985,387** | **$15,777,327** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights the successful BMBC merger, increasing total assets to $20.0 billion, strong Q3 net interest income growth, and a well-capitalized position, despite year-to-date net income decline due to credit loss provisions and merger expenses [Financial Condition](index=57&type=section&id=FINANCIAL%20CONDITION) Total assets grew by $4.2 billion to $20.0 billion, primarily driven by the BMBC merger's contribution of $3.8 billion in net loans and leases and $3.5 billion in deposits, diversifying the loan portfolio - The increase in total assets was primarily driven by the BMBC Merger, which contributed **$3.5 billion** in acquired loans and leases[221](index=221&type=chunk) - Total deposits increased by **$3.5 billion**, mainly from the **$4.1 billion** in deposits assumed in the BMBC Merger, partially offset by a reduction in customer balances[221](index=221&type=chunk) - The company's estimated uninsured deposits were **$10.3 billion** as of September 30, 2022, up from **$7.5 billion** at December 31, 2021[224](index=224&type=chunk) [Liquidity and Capital Resources](index=59&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong capital ratios exceeding 'well-capitalized' minimums and ample liquidity, including $4.9 billion in FHLB borrowing capacity, despite a decrease in tangible book value per share due to merger-related goodwill - As of September 30, 2022, the company and the bank were in compliance with all regulatory capital requirements and met or exceeded the amounts to be considered 'well-capitalized'[228](index=228&type=chunk)[229](index=229&type=chunk) - Tangible book value per share decreased to **$17.55** at September 30, 2022, from **$29.24** at December 31, 2021, primarily due to the increase in goodwill and intangible assets from the BMBC Merger[227](index=227&type=chunk)[271](index=271&type=chunk) - The company has significant available liquidity, including **$4.9 billion** in unused borrowing capacity from the FHLB and **$1.3 billion** in overnight fed funds lines[233](index=233&type=chunk) [Results of Operations](index=66&type=section&id=RESULTS%20OF%20OPERATIONS) Q3 2022 net income increased to $73.4 million due to higher net interest income and margin expansion, while year-to-date net income decreased to $137.9 million, impacted by increased provision for credit losses and merger expenses - Q3 2022 net interest margin was **3.99%**, a **94 basis point** increase from Q3 2021, driven by the rising interest rate environment and balance sheet mix from the BMBC merger[253](index=253&type=chunk) - The provision for credit losses was an expense of **$7.5 million** in Q3 2022, compared to a recovery of **$21.3 million** in Q3 2021, primarily due to the release of reserves in 2021 as the economic outlook improved post-pandemic[258](index=258&type=chunk) - Noninterest income for Q3 2022 increased by **$20.0 million** year-over-year, mainly from a **$14.2 million** increase in Wealth Management revenue attributable to the Bryn Mawr Trust combination[264](index=264&type=chunk) - Noninterest expense for Q3 2022 increased by **$36.5 million** year-over-year, primarily due to higher costs after the BMBC Merger, including a **$19.0 million** increase in salaries and benefits[265](index=265&type=chunk) [Critical Accounting Estimates](index=73&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) The Allowance for Credit Losses and Business Combinations are critical accounting estimates, requiring significant judgment in assessing expected losses and fair valuing acquired assets and liabilities, directly impacting goodwill - The determination of the Allowance for Credit Losses (ACL) is a critical estimate requiring significant judgment about expected losses based on historical experience, current conditions, and economic forecasts[273](index=273&type=chunk) - Accounting for business combinations requires significant estimates to determine the fair value of net assets acquired, which directly impacts the amount of goodwill recorded[277](index=277&type=chunk) [Controls and Procedures](index=75&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of September 30, 2022, with no material changes in internal control over financial reporting during the third quarter - Management concluded that as of the end of the period, disclosure controls and procedures are effective[290](index=290&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[290](index=290&type=chunk) Part II - Other Information [Legal Proceedings](index=75&type=section&id=Item%201.%20Legal%20Proceedings) No material changes or additions to significant pending legal or other proceedings were reported, beyond those arising from routine business operations - No material changes or additions to significant pending legal proceedings were reported, other than those arising in the ordinary course of business[212](index=212&type=chunk)[289](index=289&type=chunk) [Risk Factors](index=75&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021, were reported - No material changes to the risk factors disclosed in the 2021 Form 10-K were reported[290](index=290&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2022, the company repurchased 1,664,550 shares of common stock at an average price of $48.66 per share, with 6,950,751 shares remaining available under the repurchase program Share Repurchases in Q3 2022 | Month | Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2022 | 84,900 | $40.81 | | August 2022 | 749,465 | $49.72 | | September 2022 | 830,185 | $48.51 | | **Total** | **1,664,550** | **$48.66** | - In Q2 2022, the Board of Directors authorized an additional **6,358,727 shares** for repurchase, representing **10%** of outstanding shares as of June 30, 2022[291](index=291&type=chunk)

Financial Data and Key Metrics Changes - The reported ROA for Q3 2022 was 1.44% with an EPS of $1.16, which included $2.6 million in corporate development and restructuring costs and a $2.3 million nonrecurring valuation adjustment [8] - Excluding these items, the core ROA was 1.52%, an increase of 25 basis points from Q2, and the EPS was $1.23, up $0.21 from Q2 [8] - The net interest margin increased by 59 basis points to 3.99%, driven by a higher interest rate environment [14] Business Line Data and Key Metrics Changes - Loan growth, excluding the acquired HFI residential mortgage portfolio, was 9% annualized, with 40% annualized growth in both construction and consumer loans, and 17% annualized growth in commercial leases [9] - Core fee revenue decreased to 26.8% from 30.0% in Q2, primarily due to a 15% growth in net interest income [16] Market Data and Key Metrics Changes - Deposits decreased by 3% or 13% annualized, with a significant portion attributed to transactional trust deposits [10] - Municipal and public funded accounts increased by $182 million, indicating strong deposit diversity [13] Company Strategy and Development Direction - The company aims to deliver a full-year core ROA of between 1.30% and 1.40%, with a Q4 ROA expectation of 1.60% to 1.70% [7] - The company continues to evaluate its investment portfolio mix and balance sheet hedging strategies to prepare for anticipated interest rate volatility [21] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment has led to a decrease in fee income growth expectations, primarily driven by market conditions [27] - The company is monitoring deposit competition and believes it is well-positioned to manage funding costs and maintain deposit levels [47] Other Important Information - Capital ratios remain strong, with CET1 and Tier 1 capital at 12.38% and total risk-based capital at 13.34% [19] - The company returned $90.5 million of capital to shareholders, including $9.5 million in dividends and $81 million in share repurchases [19] Q&A Session Summary Question: Could you talk about the adjustment to guide regarding fee income growth? - Management indicated that the lower fee growth expectation is market-driven, influenced by the higher interest rate environment affecting capital market activities [27] Question: Can you discuss the inflows and outflows in terms of AUM? - Most of the decline in AUM was market-driven, with net client cash flow being almost flat for the quarter [28] Question: Can you break down consumer growth, particularly in unsecured lending? - The company reported a $34 million increase from the Upstart product and $90 million from the spring product, with an internal limit on unsecured lending approaching [29][30] Question: What is the appetite for further buybacks given the current stock price? - Management stated that capital return philosophy remains unchanged, evaluating capital ratios and opportunities for deploying excess capital [31][33] Question: Can you provide more color on options for the securities portfolio? - The company is evaluating the categorization between available for sale and held to maturity, with a focus on monitoring the investment portfolio [40][41]

WSFS Financial Corporation 1 3Q 2022 Earnings Release Supplement October 2022 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 obj ...