WSFS Financial : 2Q 2021 Investor Presentation

WSFS Financial Corporation

2Q 2021 Investor Update July 2021

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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 our pending acquisition of Bryn Mawr Bank Corporation and the uncertain effects of the COVID-19 pandemic and actions taken in response thereto on our business, results of operations, capital and liquidity, which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties are discussed in detail in the Company's Form 10-K for the year ended December 31, 2020, Form 10-Q for the quarter ended March 31, 2021, 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 return on equity ("ROE"), 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"), return on tangible common equity ("ROTCE"), core ROTCE, core fee revenue and core fee revenue as a percentage of total core net revenue. The Company's management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Company's management believes that investors may use these non-GAAP measures to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company's underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. For a reconciliation of these non-GAAP measures to their comparable GAAP measures, see the Appendix.

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Table of Contents

2Q 2021 Highlights	Page 4
Loan & Deposit Growth	Page 5
Net Interest Margin Trends	Page 6
Core Fee Revenue Trends	Page 7
ACL Overview	Page 8
WSFS & Bryn Mawr Update	Page 9
2021 Core Outlook	Page 10
WSFS Franchise and Markets	Page 11
Lines of Business	Page 18
Selected Financial and Performance Metrics	Page 24
Capital Management	Page 31
WSFS Mission, Vision, Strategy, and Values	Page 34
Appendix: Reconciliation of Non-GAAP Financial Information	Page 35

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2Q 2021 Highlights

	2Q 2021
$ in millions (expect per share	Reported	Core1
amounts)
EPS	$2.01	$2.00
ROA	2.60%	2.59%
Net Income2	$95.7	$95.4
PPNR1	$59.7	$59.0
PPNR %1	1.62%	1.60%
ROE	21.32%	21.26%
ROTCE1	31.43%	31.35%
NIM	3.23%	3.23%
Fee Revenue	$49.0	$43.8
Fee Revenue %3	31.4%	29.0%
Efficiency Ratio	61.6%	60.7%
ACL Ratio ex PPP	1.63%	1.63%
Bank CET1	14.21%	14.21%

2Q 2021 operating results reflect reduction in reserves driven by positive credit trends, diversified fee revenue growth, and strong capital levels

2Q 2021 Highlights:

• Core ROA1 of 2.59%, up from 1.89% in 1Q 2021
• Net credit (recoveries) costs were ($68.1) million due to continued improvement in the economic outlook and improved portfolio credit quality trends compared to 1Q 2021, including declines in problem assets, delinquencies, and nonperforming assets
• • ACL coverage ratio was 1.63%, excluding PPP loans at June 30, 2021
• Core fee revenue1 increased $6.3 million (excluding impact of Durbin Amendment and PPP), or 16% year-over-year, demonstrating strong trends in Wealth Management and Cash Connect®, along with the diversification of our fee businesses
• Completed the redemption of $100.0 million in aggregate principal amount of our 4.50% senior notes due 2026
• Continued improvement in strong capital levels including a Bank Common Equity Tier 1 Ratio of 14.21%
• On June 10, 2021, WSFS and Bryn Mawr stockholders approved the previously announced merger of Bryn Mawr into WSFS at a special meeting of stockholders for each company
• The Board of Directors approved a quarterly cash dividend of $0.13 per share of common stock

1	These are non-GAAP financial measures and should be considered along with results prepared in accordance with GAAP, and not as a substitute for GAAP results. See Appendix for reconciliation to GAAP financial information.	4
2	Attributable to WSFS
3	Tax-equivalent

Loan and Deposit Growth

Loan growth excluding purposeful run-off portfolios and PPP forgiveness;

Significant excess customer liquidity continues to grow

Loans - 2Q 2021 vs 1Q 2021 and 2Q 2020

						Jun	Mar	Jun	2Q21	Annualized	YOY $			YOY %
	($ in millions)	2021	2021	2020	$ Growth	% Growth	Growth Growth
	C & I Loans	$3,233	$3,213	$3,354	$20	3%	($121)	(4%)
	PPP Loans	$223	$527	$945	($304)	(231%)	($722)	(76%)
	Commercial Real Estate	$2,024	$1,975	$2,166	$49	10%	($142)	(7%)
	Construction Loans	$780	$784	$638	($4)	(2%)	$142	22%
	Commercial Leases	$292	$265	$213	$27	41%	$79	37%
	Total Commercial Loans	$6,552	$6,765	$7,316	($213)	(13%)	($764)	(10%)
	Residential Mortgage (HFS/HFI/Rev Mgt)	$720	$829	$1,012	($109)	(53%)	($292)	(29%)
	Consumer Loans	$1,105	$1,140	$1,133	($35)	(12%)	($28)	(2%)
	Total Gross Loans	$8,377	$8,734	$9,461	($357)	(16%)	($1,084)	(11%)
	Residential Mortgage (HFI)		$606	$671	$892	($65)	(39%)	($286)
			(32%)
	Student Loans Acquired from BNCL		$113	$115	$119	($2)	(7%)	($6)		(5%)
	Auto Loans Acquired From BNCL			$11	$16	$33	($5)	(125%)	($22)	(67%)
	Participation portfolios (CRE) from BNCL		$40	$55	$169	($15)	(109%)	($129)	(76%)
	Leveraged Loans (C&I) from BNCL		$0	$0	$12	$0	0%	($12)	(100%)
	Total Run-Off Portfolios		$770	$857	$1,225	($87)	(41%)	($455)	(37%)
	Gross Loans ex Run-Off Portfolios	$7,607	$7,877	$8,236	($270)	(14%)	($629)	(8%)
	PPP Loans		$223	$527	$945	($304)	(231%)	($722)		(76%)
	Gross Loans ex Run-Off & PPP Portfolios	$7,384	$7,350	$7,291	$34	2%	$93	1%

Deposits - 2Q 2021 vs 1Q 2021 and 2Q 2020

	Jun	Mar	Jun	2Q21	Annualized	YOY $	YOY %
($ in millions)	2021	2021	2020	$ Growth	% Growth	Growth Growth
Noninterest Demand	$4,328	$3,858	$3,189	$470	49%	$1,139	36%
Interest Demand Deposits	$2,633	$2,659	$2,302	($26)	(4%)	$331	14%
Savings	$1,928	$1,886	$1,732	$42	9%	$196	11%
Money Market	$2,723	$2,722	$2,333	$1	0%	$390	17%
Total Core Deposits	$11,612	$11,125	$9,556	$487	18%	$2,056	22%
Customer Time Deposits	$1,052	$1,094	$1,228	($42)	(15%)	($176)	(14%)
Total Customer Deposits	$12,664	$12,219	$10,784	$445	15%	$1,880	17%

• Commercial run-off portfolios acquired from Beneficial Bancorp Inc. are down to $40 million; remaining run-off portfolio is primarily residential mortgage
• PPP loans decreased $304 million from 1Q 2021 due to expected forgiveness
• Continued focus on strategy to optimize our balance sheet mix towards relationship-based commercial loans and deposits
• Customer funding levels remain elevated and increased $445 million during 2Q 2021 primarily due to Trust-related deposits

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