WSFS Financial : 4Q 2021 Investor Presentation

WSFS Financial Corporation

4Q 2021 Investor Update January 2022

1

Forward Looking Statements & Non-GAAP

Forward Looking Statements:

This presentation contains estimates, predictions, opinions, projections and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. The words "believe," "expect," "anticipate," "plan," "estimate," "target," "project" and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company's control) and are subject to significant risks and uncertainties (which change over time) and other factors, including ability to successfully integrate and fully realize the cost savings and other benefits of our recent acquisition of BMT 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, Form 10-Q for the quarter ended June 30, 2021, Form 10-Q for the quarter ended September 30, 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.

Trade names, trademarks and service marks of other companies appearing in this presentation are the property of their respective holders.	2

Table of Contents

Financial Highlights	Page 4
2022 Outlook	Page 5
Loan and Deposit Growth	Page 7
Excess Liquidity Trends	Page 8
Net Interest Margin Trends	Page 9
Core Fee Revenue Trends	Page 10
ACL Overview	Page 11
WSFS Franchise and Markets	Page 12
Lines of Business	Page 20
Selected Financial and Performance Metrics	Page 26
Capital Management	Page 33
WSFS Mission, Vision, Strategy, and Values	Page 36
Appendix: Reconciliation of Non-GAAP Financial Information	Page 37

3

Financial Highlights

	4Q 2021	FY 2021
$ in millions (expect per share	Reported	Core1	Reported	Core1
amounts)
EPS	$1.18	$1.04	$5.69	$5.63
ROA	1.45%	1.28%	1.82%	1.80%
Net Income2	$56.3	$49.9	$271.4	$268.5
PPNR1	$63.8	$55.6	$240.6	$236.0
PPNR %1	1.64%	1.43%	1.61%	1.58%
ROE	11.67%	10.34%	14.68%	14.52%
ROTCE1	16.96%	15.10%	21.56%	21.33%
NIM	3.10%	3.10%	3.23%	3.23%
Fee Revenue	$46.0	$46.0	$185.5	$180.7
Fee Revenue %3	29.8%	29.8%	29.9%	29.4%
Efficiency Ratio	58.5%	63.9%	61.0%	61.5%
ACL Ratio ex PPP	1.19%	1.19%	1.19%	1.19%
Bank CET1	15.11%	15.11%	15.11%	15.11%

2021 operating results reflect record net income;

4Q highlighted diversified revenue

and improving credit metrics

4Q 2021 Highlights:

• Core ROA1 of 1.28%, compared to 1.48% in 3Q 2021
• Core EPS1 of $1.04, compared to $1.19 in 3Q 2021
• Net credit (recoveries) costs were ($8.2) million due to continued improvement in the economic outlook and portfolio credit quality trends
• Core fee revenue1 increased $2.7 million (excluding impact of PPP), or 6% quarter-over quarter, led by Wealth and SBA loan sales offset by lower volumes in Mortgage refinance market
• The Board of Directors approved a quarterly cash dividend of $0.13 per share of common stock
• Received all required regulatory approvals for combination with BMT and closed the transaction on January 1, 2022

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

2022 Outlook - BMT Pro Forma & Assumptions

2021 Pro Forma

Estimates1

	Loans	Deposits
	$11.5B		$17.3B
AUA/AUM2	Core Fees
	$58B	$261M	3

Including AUM2 of $12B

	• BMT transaction closed on January 1, 2022
Timeline	• Bank technology, branding, and branch conversion
scheduled for the weekend of March 18, 2022
	• Trust and Wealth integration is anticipated in late 2022 or
	early 2023
	• On track to meet or exceed 65% annual cost savings in
Cost	2022; full cost run-rate savings by 1Q 2023
• Reduction in total branch count by approximately 30% or
Savings
40 branches
	• 6 branches in January, 28 in March, and 6 by early 2023

	• Premier Trust and Wealth franchise;
	6th largest3 among full-service banks
Strategic	under $100B in assets nationwide
Rationale	• Scale and cost synergies; ~$190M
	deposits per branch expected after
	rationalization

• Diversified and significant fee revenue; low to mid 30s1
• Full suite of over 25 products across our lines of business; serving over 20% more Banking Households4

• Larger Customer base adds scale and accelerates investment in talent and Delivery Transformation

1	Amounts pro forma as of December 31, 2021; subject to finalization of purchase accounting and merger related estimates	5
2	Assets under management (AUM) and Assets under administration (AUA)
3	Ranked by gross revenue from fiduciary activities for FY2020; Source: S&P Global Market Intelligence
4	Household total includes estimated pro forma Commercial and Retail Customers; as of December 31, 2021