1 WSFS Financial Corporation 4Q 2022 Earnings Release Supplement January 2023 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 ability to successfully integrate and fully realize the cost savings and other benefits of our recent acquisition of Bryn Mawr Bank Corporation (“BMT”), the uncertain effects of the COVID-19 pandemic, 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 Form 10-K for the year ended December 31, 2021, Form 10-Q for the quarter ended March 31, 2022, Form 10-Q for the quarter ended June 30, 2022, Form 10-Q for the quarter ended September 30, 2022, 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 EPS, Core Net Income, Core Return on Equity (“ROE”), Core Efficiency %, Pre-provision Net Revenue (“PPNR”), Core PPNR, PPNR to average assets ratio, Core PPNR to average assets ratio, Core Return on Assets (“ROA”), Core 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 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.
3 Financial Highlights 4Q 2022 FY 2022 $ in millions (except per share amounts) Reported Core1 Reported Core1 EPS $1.37 $1.38 $3.49 $4.25 ROA 1.69% 1.71% 1.09% 1.32% Net Income2 $84.4 $85.5 $222.4 $270.7 PPNR1 $125.9 $127.2 $348.7 $410.8 PPNR %1 2.51% 2.54% 1.70% 2.01% ROE 15.74% 15.93% 9.27% 11.28% ROTCE1 31.12% 31.49% 16.88% 20.37% NIM 4.49% 4.49% 3.71% 3.71% Fee Revenue $64.9 $65.5 $260.1 $257.0 Fee Revenue %3 25.0% 25.2% 28.1% 27.9% Efficiency Ratio 51.2% 50.8% 62.1% 55.2% ACL Ratio 1.17% 1.17% 1.17% 1.17% Bank CET1 12.86% 12.86% 12.86% 12.86% 4Q 2022 Highlights: • Core EPS1 of $1.38, up 12.2% vs. 3Q • Core ROA1 was 1.71%, up 12.5% vs. 3Q • Core NIM1 of 4.49%, up 12.5% vs. 3Q • Core Fee Revenue1 grew to $65.5 million this quarter with a Core Fee Revenue %1 of 25.2% • Net credit costs were $13.0 million primarily due to the impact of the economic forecast and net loan growth on the provision for credit losses • Core Efficiency Ratio1 of 50.8%, down from 53.8% in 3Q • Repurchased 361,980 shares of common stock for an aggregate of $17.3 million this quarter • The Board of Directors approved a quarterly cash dividend of $0.15 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. 2 Excludes net income that is attributable to noncontrolling interest 3 Tax-equivalent
4 3 2023 Outlook – Core Key Metrics Loan Growth Mid-single digit growth; Driven by diversified loan portfolios Deposit Growth Relatively flat; Core franchise growth offset by normalizing customer excess liquidity Net Interest Margin Range of 4.35% - 4.45%; Fed Funds Rate ending at 4.75%; IB deposit beta of approximately 35% by year-end Fee Revenue Growth Mid-to-high single digit growth; Fee Revenue % in the mid-to-high 20% Provision Costs 0.40% - 0.50% of average loans; Due to organic loan growth and forecasted economic environment Efficiency Ratio Mid 50s; Disciplined investment in franchise growth Tax Rate Approximately 25% Full-Year Core ROA1 Outlook of +/-1.50% and Core PPNR %1 of +/-2.30%; Delivering growth from our unique market position and diversified business model 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 accuracy 2 Source: Oxford Economics as of December 2022 2023 Core Outlook1 Assumes a relatively flat interest rate environment and flat full-year GDP growth including a mild recession in 2H2
5 Loan Portfolio Trends • Total gross loan growth of 7% annualized excluding acquired residential mortgage portfolio • Commercial loan growth of $74 million, or 3% annualized driven by Commercial Mortgages and Leases • Commercial portfolio comprises 78% of total gross loans • Consumer loan growth of $134 million primarily from SpringEQ partnership product (home equity loans) Diversified products and strong pipeline positioned well for continued organic loan growth ($ in millions) Dec 2022 Sep 2022 Dec 2021 4Q22 $ Growth Annualized % Growth C & I Loans 4,408 4,445 3,271 ($37) (3%) Commercial Mortgages 3,351 3,280 1,882 71 9% Construction Loans 1,044 1,028 687 16 6% Commercial Leases 559 535 352 24 18% Total Commercial Loans $9,362 $9,288 $6,192 $74 3% Residential Mortgage (HFS/HFI) 782 802 649 (20) (10%) Consumer Loans 1,811 1,677 1,159 134 32% Total Gross Loans $11,955 $11,767 $8,000 $188 6% 0% Acquired HFI Resi Mortgage 578 595 386 ($17) (11%) Gross Loans ex Acquired HFI Resi Portfolio $11,377 $11,172 $7,614 $205 7% Loans - 4Q 2022 vs 3Q 2022 $490 $503 $685 $618 $689 ($626) ($516) ($600) ($558) ($619) $(800) $(600) $(400) $(200) - $200 $400 $600 $800 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Commercial Portfolio: New Net Loan Fundings ($mm)1 New Loans Fundings Paydown/Payoffs • Strong net new Commercial loan fundings of $689 million driven by closing activity and strong Construction loan funding • Commercial 90-day weighted average pipeline of approximately $290 million • Commercial line utilization of 37.7%, which represents significant improvement from a year ago 1 Includes new loans, existing new funding, paydowns, payoffs, and prior Commercial runoff portfolios. Excludes reclasses, HFS, purchase accounting mark/unearned changes, PPP loans, KCMI sale, and Commercial leases
6 Deposit Balance Trends • Excluding Public Funding and Transactional Trust deposits, Customer deposit decline of $236 million or 2% (6% annualized) • Due to continued customer utilization of excess liquidity • 54% of Customer deposits are in Wealth and Trust, Commercial, and Small Business portfolios • Competitive deposit betas of 15% interest-bearing and 9% total deposits as of 4Q 2022 • Strong loan-to-deposit ratio of 73% positioned well for organic loan growth Diversified franchise deposit base with low loan-to-deposit ratio and competitive through-the-cycle betas 1 Adjusted for Public Funding and Transactional Trust Deposits ($ in millions) Sep 2022 Dec 2021 4Q 2022 $ Growth Public Funding Δ Trans. Trust Δ Adj.1 4Q 2022 $ Growth Adj.1 4Q 2022 % Growth Adj1 Annual. % Growth Noninterest Demand 5,739 6,171 4,565 (432) (7) (252) (173) (4%) (14%) Interest Demand Deposits 3,347 3,462 2,793 (115) (110) 0 (5) (0%) (1%) Savings 2,162 2,266 1,971 (104) (1) 0 (103) (5%) (18%) Money Market 3,731 3,740 2,906 (9) (4) 0 (5) (0%) (1%) Total Core Deposits $14,979 $15,639 $12,235 ($660) ($123) ($252) ($285) (2%) (8%) Customer Time Deposits 1,102 1,063 989 39 (11) 0 50 5% 19% Total Customer Deposits $16,081 $16,702 $13,224 ($621) ($133) ($252) ($236) (2%) (6%) Deposits by Product - 4Q 2022 vs 3Q 2022 Dec 2022 Consumer 45% Wealth and Trust 12% Commercial 24% Small Business 18% Other 1% 4Q 2022 Customer Deposits By LOB
7 0.09% 0.07% 0.08% 0.15% 0.35% 4.23% 4.13% 4.40% 5.12% 5.98% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 0.0% 0.2% 0.3% 0.5% 0.6% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Lo an Y ie ld (% ) Cu st om er D ep os it Co st (% ) Total Deposit Cost Total Loans Ex PPP/PAA Yield 2.91% 2.94% 3.29% 3.90% 4.40% 0.19% 0.07% 0.11% 0.09% 0.09% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 NIM Ex PAA PAA Deposit Betas3 Net Interest Margin Trends Asset sensitive balance sheet and diversified low funding costs driving NIM expansion 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 and PPP 3 Deposit betas are cumulative for the current cycle; Federal Funds Target rates are end-of-period value 21 3.10% 3% 7% 15% 0% 2% 4% 9% 0.25% 0.50% 1.75% 3.25% 4.50% 0.0% 2.0% 4.0% 6.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 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 Fed Funds Target 3.01% 3.40% 3.99% 4.49%
8 $18 $32 $33 $30 $31 $12 $16 $19 $19 $15 $11 $10 $12 $15 $18 $5 $3 $2 $1 $1 $46 $61 $66 $65 $65 $- $10 $20 $30 $40 $50 $60 $70 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Co re F ee R ev en ue ( $m m )2 Wealth Management Banking Cash Connect Mortgage 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 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, and other banking related fees • Well-diversified with over 25 discrete lines of business and products within our three main segments: Banking, Wealth Management, and Cash Connect® • Core Fee Revenue percentage of 25.2% provides earnings stability through interest rate and credit cycles, and economic environments • Core Fee Revenue totaled $65.5 million, including $31.0 million from Wealth Management • Core Fee Revenue increased $0.5 million, compared to 3Q Core Fee Revenue1 Trends Diversified fee businesses drives resilient Core Fee Revenue 3 Core Fee Revenue %2 29.9% 30.4% 30.0% 26.8% 25.2%
9 0% 1% 2% 3% 4% 5% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 3Q22 Forecast 4Q22 Forecast ACL Ratio 1 Source: Oxford Economics as of December 2022 2 Hotel loan balances are included in the C&I and Construction segments ACL Overview ACL by Segment Full-Year GDP forecast of 2.0% in 2022 and 0.1% in 20231 Full-Year Unemployment forecast of 3.7% in 2022 and 4.2% in 20231 4Q 2022 ACL Commentary 1.14% 1.17% GDP Growth by Quarter Unemployment by Quarter • ACL Ratio of 1.17% and 1.41% including estimated remaining credit mark on the acquired loan portfolio • ACL increased $5.7 million in 4Q driven by economic impact and new loan generation -6% -4% -2% 0% 2% 4% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 3Q22 Forecast 4Q22 Forecast $60 $80 $100 $120 $140 $160 $180 9/30/2022 Economic Impact Net Loan Growth Migration Other 12/31/2022 4Q 2022 ACL ($mm) $9 $146 ($2) $152 ($5)$4 ($ millions) $ % $ % $ % C&I2 $44.0 2.33% $51.9 1.97% $49.5 1.93% Owner Occupied $1.9 0.28% $6.0 0.63% $6.0 0.33% CRE Investor $11.6 0.62% $21.5 0.66% $21.5 0.64% Construction2 $4.6 0.34% $6.5 0.34% $7.0 0.67% Mortgage $6.0 1.70% $4.8 0.64% $4.7 0.61% Leases $3.4 0.62% $8.0 1.49% $9.9 1.77% HELOC & HEIL $4.8 1.07% $7.0 1.24% $8.7 1.34% Consumer Partnerships $14.1 2.80% $36.4 4.40% $41.1 4.30% Other $4.1 1.87% $4.1 0.29% $3.5 0.27% TOTAL $94.5 1.19% $146.2 1.14% $151.9 1.17% December 31, 2021 September 30, 2022 December 31, 2022
10 Capital Management TCE Ratio1,2 with AOCI 4Q 2022 Bank Capital Ratios 7.47% 6.63% 5.73% 6.31% 1.57% 2.66% 3.77% 3.58% 9.04% 9.29% 9.50% 9.89% 0% 3% 6% 9% 12% 1Q 2022 2Q 2022 3Q 2022 4Q 2022 TCE/Tangible Assets AOCI/Tangible Assets • TCE Ratio increased 58bps vs 3Q, including 14bps reduction from $26.5 million in capital returned to shareholders (share repurchases and dividends) • 85% of full-year 2022 adjusted net income1 returned to WSFS shareholders • Regulatory capital ratios remain well in excess of target and well-capitalized thresholds 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 Tangible Common Equity (TCE) Ratio is at the holding company level 10.00% 6.50% 5.00% 3.84% 6.36% 5.29% 13.84% 12.86% 10.29% 0% 3% 6% 9% 12% 15% Total Risk-based Capital CET1 Tier 1 Leverage Well-capitalized Incremental Strong regulatory capital ratios supported by continued capital accretion through earnings
11 Non-GAAP Financial Information Appendix:
12 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 impact of securities gains, realized/unrealized gains (losses) on equity investments, net, Visa derivative valuation adjustment, loss on debt extinguishment, corporate development and restructuring expense, recovery of legal settlement, 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 securities gains, realized/unrealized gains on equity investments, net, and Visa derivative valuation adjustment; • Core Fee Revenue percentage (%) 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 loss on debt extinguishment, corporate development and restructuring expenses, recovery of legal settlement, 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; • 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 (recovery of) for credit losses; • Core PPNR is a non-GAAP measure that adjusts PPNR to exclude the impact of securities gains, realized/unrealized gains on equity investments, net, Visa derivative valuation adjustment, loss on debt extinguishment, corporate development and restructuring expenses, recovery of legal settlement, 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.
13 Appendix: Non-GAAP Financial Information Three Months Ended Twelve Months Ended (dollars in thousands) December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 Net interest income (GAAP) $ 193,886 $ 176,831 $ 108,224 $ 662,890 Core net interest income (non-GAAP) $ 193,886 $ 176,831 $ 108,224 $ 662,890 Noninterest income (GAAP) $ 64,880 $ 62,651 $ 46,027 $ 260,8134 (Plus)/less: Unrealized (loss) gain on equity investments, net (8) — — 5,980 Plus: Visa derivative valuation adjustment (592) (2,285) — (2,877) Core fee revenue (non-GAAP) $ 65,480 $ 64,936 $ 46,027 $ 257,031 Core net revenue (non-GAAP) $ 259,366 $ 241,767 $ 154,251 $ 919,921 Core net revenue (non-GAAP) (tax- equivalent) $ 260,058 $ 242,327 $ 154,499 $ 919,829 Noninterest expense (GAAP) $ 132,903 $ 132,917 $ 90,419 $ 574,326 Less: Corporate development expense 1,070 1,248 4,989 42,749 (Plus)/less: Restructuring expense (319) 1,344 1,755 22,473 Plus: Recovery of legal settlement — — (15,000) — Core noninterest expense (non-GAAP) $ 132,152 $ 130,325 $ 98,675 $ 509,104 Core efficiency ratio (non-GAAP) 50.8% 53.8% 63.9% 55.2% Core fee revenue as a % of total core net revenue (non-GAAP)(tax-equivalent) 25.2% 26.8% 29.8% 27.9% Three Months Ended (dollars in thousands) December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Calculation of tangible common equity ratio: Total Assets (GAAP) $ 19,914,755 $ 19,985,387 $ 20,550,216 $ 20,964,674 Less: Goodwill and other intangible assets 1,012,232 1,016,413 1,019,857 1,032,189 Total tangible assets (non-GAAP) $ 18,902,523 $ 18,968,974 $ 19,530,359 $ 19,932,485 Total stockholders’ equity of WSFS (GAAP) 2,205,113 2,103,593 2,315,360 2,520,463 Less: Goodwill and other intangible assets 1,012,232 1,016,413 1,019,857 1,032,189 Total tangible common equity (non-GAAP) $ 1,192,881 $ 1,087,180 $ 1,295,503 $ 1,488,274 Equity to asset ratio (GAAP) 11.07% 10.53% 11.27% 12.02% Tangible common equity to tangible assets ratio (non-GAAP) 6.31% 5.73% 6.63% 7.47% Accumulated other comprehensive (loss) income (AOCI) $ (675,844) $ (715,479) $ (518,878) $ (313,780) Total assets (GAAP) 19,914,755 19,985,387 20,550,216 20,964,674 Total tangible assets (non-GAAP) 18,902,523 18,968,974 19,530,359 19,932,485 AOCI to asset ratio (GAAP) 3.39% 3.58% 2.52% 1.50% AOCI to tangible assets ratio (non-GAAP) 3.58% 3.77% 2.66% 1.57%
14 Appendix: Non-GAAP Financial Information Three Months Ended Twelve Months Ended (dollars in thousands, except per share data) December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 GAAP net income attributable to WSFS $ 84,449 $ 73,382 $ 56,287 $ 222,375 Plus/(less): Pre-tax adjustments1 1,351 4,877 (8,256) 62,119 (Plus)/less: Tax impact of pre-tax adjustments (308) (750) 1,863 (13,809) Adjusted net income (non-GAAP) attributable to WSFS $ 85,492 $ 77,509 $ 49,894 $ 270,685 Net income (GAAP) $ 84,435 $ 73,344 $ 56,401 $ 222,648 Plus: Income tax provision 28,032 25,767 15,485 77,961 Less: Provision for (recovery of) credit losses 13,396 7,454 (8,054) 48,089 PPNR (Non-GAAP) $ 125,863 $ 106,565 $ 63,832 $ 348,698 Plus/(less): Pre-tax adjustments1 1,351 4,877 (8,256) 62,119 Core PPNR (Non-GAAP) $ 127,214 $ 111,442 $ 55,576 $ 410,817 Average Assets $ 19,876,322 $ 20,235,749 $ 15,419,923 $ 20,463,695 PPNR % (Non-GAAP) 2.51% 2.09% 1.64% 1.70% Core PPNR % (Non-GAAP) 2.54% 2.18% 1.43% 2.01% GAAP return on average assets (ROA) 1.69% 1.44% 1.45% 1.09% Plus/(less): Pre-tax adjustments1 0.03 0.10 (0.21) 0.30 (Plus)/less: Tax impact of pre-tax adjustments (0.01) (0.02) 0.04 (0.07) Core ROA (non-GAAP) 1.71% 1.52% 1.28% 1.32% Earnings per share (diluted)(GAAP) $ 1.37 $ 1.16 $ 1.18 $ 3.49 Plus/(less): Pre-tax adjustments1 0.02 0.08 (0.17) 0.98 (Plus)/less: Tax impact of pre-tax adjustments (0.01) (0.01) 0.03 (0.22) Core earnings per share (non-GAAP) $ 1.38 $ 1.23 $ 1.04 $ 4.25 1 Pre-tax adjustments include unrealized (loss) gain on equity investments, net, Visa derivative valuation adjustment, corporate development and restructuring expense, and recovery of legal settlement
15 Appendix: Non-GAAP Financial Information Three Months Ended Twelve Months Ended (dollars in thousands) December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 Calculation of return on average tangible common equity: GAAP net income attributable to WSFS $ 84,449 $ 73,382 $ 56,287 $ 222,375 Plus: Tax effected amortization of intangible assets 2,925 2,906 2,063 11,752 Net tangible income (non-GAAP) $ 87,374 $ 76,288 $ 58,350 $ 234,127 Average stockholders' equity of WSFS $ 2,128,869 $ 2,347,178 $ 1,913,882 $ 2,398,871 Less: average goodwill and intangible assets 1,014,985 1,018,592 548,552 1,012,233 Net average tangible common equity $ 1,113,884 $ 1,328,586 $ 1,365,330 $ 1,386,638 Return on average equity (GAAP) 15.74% 12.40% 11.67% 9.27% Return on average tangible common equity (non-GAAP) 31.12% 22.78% 16.96% 16.88% Calculation of core return on average tangible common equity: Adjusted net income (non-GAAP) attributable to WSFS $ 85,492 $ 77,509 $ 49,894 $ 270,685 Plus: Tax effected amortization of intangible assets 2,925 2,906 2,063 11,752 Core net tangible income (non-GAAP) $ 88,417 $ 80,415 $ 51,957 $ 282,437 Net average tangible common equity $ 1,113,884 $ 1,328,586 $ 1,365,330 $ 1,386,638 Core return on average equity (non-GAAP) 15.93% 13.10% 10.34% 11.28% Core return on average tangible common equity (non-GAAP) 31.49% 24.01% 15.10% 20.37% Three Months Ended (dollars in thousands) December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Core fee revenue (non-GAAP) $ 65,480 $ 64,936 $ 66,038 $ 60,577 $ 46,027 PPP fee income - - - - (63) Core fee income excl. PPP $ 65,480 $ 64,936 $ 66,038 $ 60,577 $ 46,090 Core net revenue (non-GAAP)(tax-equivalent) $ 260,058 $ 242,327 $ 220,095 $ 199,349 $ 154,499 PPP income - - - 170 608 Core net revenue excl. PPP $ 260,058 $ 242,327 $ 220,095 $ 199,179 $ 153,891 Core fee revenue as a % of core net revenue excl. PPP (non-GAAP) 25.2% 26.8% 30.0% 30.4% 29.9%
16 Stockholders or others seeking information regarding the Company may call or write: WSFS Financial Corporation Investor Relations WSFS Bank Center 500 Delaware Avenue Wilmington, DE 19801 302-504-9857 stockholderrelations@wsfsbank.com www.wsfsbank.com Rodger Levenson Chairman, President and CEO 302-571-7296 rlevenson@wsfsbank.com Dominic C. Canuso Chief Financial Officer 302-571-6833 dcanuso@wsfsbank.com