 June 2016 WSFS Financial Corporation Senior Notes Offering Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-211911 Dated June 8, 2016 |
 The
issuer has filed a registration statement (and a prospectus) with
the SEC for the offering to which this communication relates.
Before you invest, you should read the prospectus in that
registration statement and other documents the issuer has filed
with the SEC for more complete information about the issuer and
this offering. You may get these documents for free by visiting
EDGAR on the SEC website at www.sec.gov. Alternatively,
the issuer, any underwriter, or any dealer participating in
the offering will arrange to send you the prospectus if you
request it by calling Sandler O'Neill + Partners, L.P., at
1 (866) 805-4128 or Keefe, Bruyette
& Woods, A Stifel Company
at 1 (800) 966-1559.
. |
 Table of Contents
Terms of the Proposed Offering
The WSFS Franchise
Asset Quality Metrics
Appendices Page 6 Page 10 Page 22 Page 28 3 1Q 2016 Highlights Page 7 Additional Information Page 21 Capital Interest Coverage Page 24 Page 25 Interest Rate Sensitivity Page 26 Business Model and Total Shareholder Returns Page 27 |
 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. Forward-looking statements are
typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," "positions," "prospects" or "potential," by
future conditional verbs such as "will," "would,"
"should," "could" or "may," or by variations of such words or by similar expressions. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties (which
change over time) and other factors which could cause actual
results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to, those related to difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which
the Company operates and in which its loans are concentrated,
including the effects of declines in housing markets, an increase in unemployment levels and slowdowns in economic growth; the Company’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other
costs; changes in market interest rates may increase funding
costs and reduce earning asset yields thus reducing margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of the Company’s investment securities portfolio; the credit risk
associated with the substantial amount of commercial real estate,
construction and land development, and commercial and industrial loans in our loan portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company’s operations including the changes in regulations affecting
financial institutions, including the Dodd-Frank Wall Street
Reform and Consumer Protection Act and the rules and regulations being issued in accordance with this statute and potential expenses associated with complying with such regulations; possible additional loan losses and impairment of the collectability of loans; the
Company’s ability to comply with applicable capital and
liquidity requirements (including the finalized Basel III capital standards), including our ability to generate liquidity internally or raise capital on favorable terms; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments,
agencies, and similar organizations; any impairment of the
Company’s goodwill or other intangible assets; failure of the financial and operational controls of the Company’s Cash Connect division; conditions in the financial markets that may limit the Company’s access to additional funding to meet its liquidity needs; the success of the
Company’s growth plans, including the successful integration
of past and future acquisitions; the Company’s ability to complete the pending merger with Penn Liberty on the terms and conditions proposed which are subject to a number of conditions, risks and uncertainties, delay in closing the merger, difficulties and delays in integrating
the Penn Liberty business or fully realizing cost savings and
other benefits of the merger, business disruption following the merger, Penn Liberty’s customers acceptance of the Company’s products and services and related customer disintermediation; negative perceptions or publicity with respect to the Company’s trust and wealth
management business; system failure or cybersecurity breaches of
the Company’s network security; the Company’s ability to recruit and retain key employees; the effects of problems encountered by other financial institutions that adversely affect the Company or the banking industry generally; the effects of weather and natural
disasters such as floods, droughts, wind, tornadoes and
hurricanes as well as effects from geopolitical instability and man-made disasters including terrorist attacks; possible changes in the speed of loan prepayments by the Company’s customers and loan origination or sales volumes; possible acceleration of prepayments of
mortgage-backed securities due to low interest rates, and the
related acceleration of premium amortization on prepayments on mortgage-backed securities due to low interest rates; regulatory limits on the Company’s ability to receive dividends from its subsidiaries and pay dividends to its shareholders; the effects of any reputational, credit,
interest rate, market, operational, legal, liquidity, regulatory
and compliance risk resulting from developments related to any of the risks discussed above; and the costs associated with resolving any problem loans, litigation and other risks and uncertainties, discussed in the Company’s Form 10-K for the year ended December 31, 2015
and other documents filed by the Company with the Securities and
Exchange Commission from time to time. Forward looking statements are as of the date they are made, and the Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the
Company. |
 Non-GAAP Information This presentation contains financial information and performance measures determined by methods other than in accordance
with accounting
principles generally accepted in the United States (“GAAP”).
The Company’s management uses these non-GAAP measures to measure the Company’s performance and 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. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP. The following are the non-GAAP measures used in this
presentation: Core ROAA is a non-GAAP
measure that divides (i) net income determined in accordance with GAAP and
excluding the impact of securities gains (losses), corporate
development expenses, debt extinguishment costs, and other extraordinary items by (ii) average assets Tangible common equity is a non-GAAP measure and is defined as total average stockholders’ equity less goodwill, other
intangible assets and preferred stock.
Return on average tangible common equity is a non-GAAP measure and is
defined as net income allocable to common stockholders divided
by tangible common equity. Core net interest income is a
non-GAAP measure that adjusts net interest income as
determined in accordance with GAAP to exclude
the impact of extraordinary items such as special dividends
Core noninterest income is a non-GAAP
measure that adjusts noninterest income as determined in accordance with
GAAP to exclude
the impact of securities gains (losses)
Core noninterest expense is a non-GAAP
measure that adjusts noninterest expense as determined in accordance with
GAAP to exclude
corporate development expenses and debt extinguishment costs
Efficiency ratio is a non-GAAP
measure that is determined by dividing noninterest expense (as determined in
accordance with GAAP) by the sum of net interest income and
noninterest income (each as determined in accordance with GAAP)
Core efficiency ratio is a non-GAAP
measure that is determined by dividing core noninterest expense by the sum of
core interest income and core noninterest income
Pre-tax pre-provision net revenue is a non-GAAP measure that
adjusts net income to exclude loan loss provision and income taxes.
Core pre-tax pre-provision net revenue is pre-tax,
pre-provision net revenue adjusted to exclude the impact of corporate development expenses, securities gains (losses), debt extinguishment costs, and other extraordinary items.
5 |
 Terms of Proposed Offering
6 • Issuer: WSFS Financial Corporation • Security Type: Fixed-to-Floating Rate Senior Notes due 2026 • Aggregate Principal Amount: $75 million • Rating: A- by Kroll Bond Rating Agency • Maturity: 10 years • Call Provision: Callable after five years at 100% • Use of Proceeds: General corporate purposes including financing organic growth,
acquisitions, repurchases of common stock, and redemption of outstanding
indebtedness
• Underwriters: Sandler O’Neill + Partners, L.P. (Sole Book-Running Manager) Keefe, Bruyette & Woods, A Stifel
Company (Co-Lead Manager) Boenning & Scattergood, Inc. (Co-Manager) |
 1Q
2016 Highlights |
 1Q
2016 Highlights Reported Strong Results
Reported Core • EPS: $0.52 $0.53 • ROAA: 1.13% 1.14%
•
ROATCE: 13.13% 13.33% Strong Revenue Growth • Core net revenue increased $9.5 million, or 16% over 1Q 2015
• Core net interest income improved $7.3 million, or 19% over 1Q 2015; Net interest margin
(NIM) was 3.87% in 1Q
2016, a 13 basis point improvement from 1Q 2015, after adjusting
for the impact of a one-time special FHLB dividend in 1Q15
• Core fee (noninterest) income increased $2.1 million, or 10% over 1Q 2015
Significant Positive Operating Leverage
• Expenses well managed at 11% core growth from 1Q 2015; Vs. 16% core net revenue growth =
5% points in positive operating leverage in 1Q 2016 vs
1Q 2015 • Pre-tax, pre-provision net revenue (core) grew $5.2 million, or 25% from 1Q
2015 •
Core efficiency ratio improved to 61.89%
in 1Q 2016 from 64.75% in 1Q 2015 •
Also, 1Q tends to be our weakest quarter on revenue and expenses
8 (1) Core values are non-GAAP financial information and should be considered in addition to results prepared in accordance with GAAP,
and not a substitute for, or superior to GAAP results. See
appendix for reconciliation to GAAP financial information. |
 1Q
2016 Highlights Loan and Core Deposit Growth Continues
• Net loans increased $23.1 million from 4Q 2015. Growth was driven by an 8% (annualized) increase in C&I and CRE loans, partially offset by a decline in residential mortgages and expected paydown/payoff
activity in the construction portfolio
• Commercial loans comprise 84% of the total loans. Variable rate loans represent 68% of total loans • Customer funding increased $9.8 million 4Q 2015. Organic growth was driven by an increase in core
deposits of $35 million, or
4% (annualized). This was offset by an intentional $26.2 million decrease in
time deposits to manage NIM
• Core deposit accounts are 85% of total customer funding, including no-cost and low-cost checking
which represent 45% of customer funding Asset Quality Remains Strong • NPA’s declined by 6% (not annualized) to $37.7 million or 0.66% of total assets; delinquencies (including nonperforming delinquencies) decreased to 0.60% of total gross loans; net charge offs were a low 3bps of total net loans • Total credit costs (provision for loan losses, loan workout expenses, OREO expenses and other credit
reserves) were $1.3 million in 1Q 2016
Penn Liberty on Track to Close in 3Q 2016
• Received all required regulatory and shareholder approvals. Scheduled to close on August 12
th with a simultaneous conversion/integration 9 |
 The WSFS Franchise |
 • Largest independent bank and trust co. HQ in the Del. Valley • $5.7 billion in assets • $13.1 billion in fiduciary assets, includes $1.2 billion in assets under management • 63 offices • Founded in 1832, WSFS is one of the oldest banks in the U.S. • Major business lines • Retail • Commercial • Wealth Management (1) • Cash Connect ® (ATM cash and related businesses) (1) The WSFS Franchise Note: the varying shades of green represent the intensity of the number of Customers we serve in our regional footprint 11 (1) Wealth and Cash Connect businesses conducted on a national basis |
 The WSFS Franchise –
PA Expansion 12 Over the past 5 years, WSFS has successfully expanded its franchise into Pennsylvania through: • De novo branches; hiring local lenders • Acquisition of Alliance Bank • Recently announced Penn Liberty acquisition Strong position as one of the few remaining super-community banks in the attractive and rapidly consolidating southeastern PA markets • Approximately $5.4 billion of potential relationship dislocation in three key southeastern PA counties as a result of recent announced acquisitions (SUSQ, NPBC and FNFG) by large, out-of-state super-regionals Penn Liberty will increase PA scale to 24 total offices (2) across Chester, Delaware, and Montgomery counties, within a very tight geography Source: SNL Financial. 1) Chester, Delaware and Montgomery. Measured by deposits. 2) Pro forma office count assumes the consolidation of one WSFS branch, one Penn Liberty branch, and the consolidation of WSFS Mortgage
operations and the Plymouth Meeting LPO into Penn Liberty’s Wayne office or an existing WSFS office. (1) |
 The WSFS Franchise -
WSFS Bank Assets $5.7 Billion; Net Loans $3.8 Billion Asset Composition – March 31, 2016 • Commercial loans comprise 84% of the loan portfolio • C&I (including owner- occupied real estate), the largest component, makes up 52% of gross loans 13 Cash Connect 9% Investments 17% BOLI 2% Non- Earning Assets 6% Net Loans 66% 7% 10% 6% 53% 26% CRE C&I Residential Mortgages Consumer Construction |
 Customer Funding -
$3.9 Billion Funding Composition – March 31, 2016 • Core customer funding comprises 85% of total customer funding • Non-interest and very low interest DDA (WAC 13bps) stand at 45%
of total customer funding
14 The WSFS Franchise - WSFS Bank Other Liabilities 1% Wholesale Deposits 4% Borrowings 17% Equity 10% Customer Funding 68% Sweeps 0.4% Time 14% Non- interest DDA 25% Interest DDA 20% Money Market & Savings 40% |
 *Most recently available FDIC data
(1) WSFS 2015 growth excluding the acquisition of The First National Bank of Wyoming was $119 million or 3.86%
(2) Excludes estimated out-of-market deposits of TD Bank (3) Top 10 Delaware Banks house 96% of all traditional deposits in the state
15 The WSFS Franchise - WSFS Bank |
 Core Customer Deposit Funding Strength
16 1Q 2016 Cost of Deposits Wtd. Avg. Cost Noninterest Bearing DDA: 0.00% Interest Bearing Demand: 0.13% Savings: 0.13% Money Market: 0.27% Customer Time Deposits: 0.52% Total Cost of Customer Deposits: 0.21% 3.19% 2.12% 1.29% 0.88% 0.66% 0.42% 0.23% 0.22% 0.20% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Cost of Deposits |
 The WSFS Franchise –
Diversified & Robust Fee Income
17 CAGR: 12% %’s represent fee (non-interest) income / total revenue $31 $30 $33 $37 $33 $36 $13 $16 $19 $24 $26 $28 $5 $13 $14 $16 $18 $23 23% 27% 30% 34% 33% 32% $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2010 2011 2012 2013 2014 2015 Trust & Wealth Management Cash Connect Bank Segment |
 The WSFS Franchise –
WSFS Wealth Net Revenue (1) of $34.9 million in 2015; Pre-tax profit of $12.2 million 18 • Registered investment advisor offering a “balanced’ investment style focused on preservation of capital and current income • Focus on high net worth individuals • $634 million assets under management • Offers credit and deposit products • Focus on high net worth individuals • Partners/refers to other wealth units • Fiduciary and investment services • Services to personal trust clients as well as trustee, agency, bankruptcy, custodial and commercial
domicile services to corporate and institutional clients
• $574 million in assets under management and $12.5 billion assets under administration
• Ranked #1 in Trust Revenue growth in the state of Delaware and 26 th nationwide (2) • Offers insurance and brokerage products • Focus on retail banking clients (1) Net revenue includes intersegment revenue and is net of funding costs
(2) Per Bank Director
Magazine |
 The WSFS Franchise –
Cash Connect®
• Leading provider of ATM vault cash, armored carrier management, cash forecasting services,
insurance and equipment services
• More than $700 million in vault cash • More than 17,000 non-bank ATMs nationwide • Adding ATM settlement services to existing managed service offering • Expanding ATM managed services from ISO market to FI market sector • Operates over 440 ATMs for WSFS Bank; largest in-market ATM franchise
• $27.7 million net revenue (1) (fee income less funding costs) and $7.9 million in pre-tax profitability in 2015 • 5 year CAGR for net revenue (1) is 16% • 1Q 2016 net revenue increased 14% from 1Q 2015 • Also serves as an innovation center for the company, both expanding core ATM offerings and additional payment-, processing-
and software-related activities; E.g., launched WSFS Mobile Cash
– Allows Customers to securely withdraw cash from ATMs by
using their WSFS Mobile Banking App.
• Gaining traction with its new deposit safe cash logistics product rolled out in early 2015. Significant deposit safe partners have been added to the program which has built a strong pipeline for 2016. 19 (1) Net revenue includes intersegment revenue and is net of funding costs |
 Strong Performance Through the Economic Cycle
20 • WSFS has maintained profitability despite the economic conditions sustained across the industry • Worst year – 2009 – was essentially breakeven • Consistently grown the balance sheet through organic growth and supplemental acquisitions • Assets have increased from $3.2 billion to $5.6 billion • Loans increased by 70% from $2.3 billion to $3.8 billion • Deposits have more than doubled to $4.0 billion from $1.8 billion • WSFS issued $75 million of common equity in 2009 and 2010, with the remaining growth in tangible common equity coming from retained earnings $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Assets ($ bn) $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Net Income ($ mm) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Tangible Common Equity / Tangible Assets (%) |
 Additional Information |
 22 Note: Texas Ratio is defined as the sum of Nonaccrual Loans, Restructured Loans, Loans 90 Days Past Due and Assets Acquired Through
Foreclosure divided by the sum of Common Equity and Allowance for
Loan Losses minus Intangible Assets. Source: SNL Financial
and Company filings. Asset Quality
Metrics 0.0
0.5 1.0 1.5 2.0 2.5 3.0 2008 2009 2010 2011 2012 2013 2014 2015 ALLL / Gross Loans (%) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2008 2009 2010 2011 2012 2013 2014 2015 NPLs / Loans (%) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2008 2009 2010 2011 2012 2013 2014 2015 Texas Ratio 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2008 2009 2010 2011 2012 2013 2014 2015 NCOs / Avg. Loans (%) |
 Asset Quality Metrics
23 0.20% 0.70% 1.20% 1.70% 2.20% 2.70% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Delinquencies (1) / Gross Loans Delinquencies Large Relationship (2) (1) Includes non-accruing loans (2) One large $17.3 million, highly-seasonal relationship Average delinquency over the past 13 quarters was 0.92% 18.61% 24.09% 10% 15% 20% 25% 30% 35% 40% 45% 50% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Criticized & Classified Loans / Tier-1 + ALLL Classified Loans Criticized Loans |
 Adequate Capital to Grow and to Return to Shareholders
Total Risk Based Capital (TRBC)
000’s
24 12/12 12/13 12/14 12/15 3/16 TRBC 14.29% 14.36% 13.86% 12.62% 12.96% Tier-1 Capital 13.04% 13.16% 12.83% 11.82% 12.16% Excess RBC (above 10%) $140,117 $153,542 $147,186 $146,788 $140,907 TCE 7.72% 7.69% 9.00% 8.84% 9.00% TCBV/Share $12.74 $12.89 $15.30 $16.30 $17.04 Note: Regulatory capital provided for December 31, 2012 and 2013 and March 31, 2016 are from Wilmington Savings Fund Society,
FSB. $250,000
$300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 12/12 12/13 12/14 12/15 3/16 Total Risk-Based Capital Well Capitalized Requirement |
 Interest Coverage
25 Historical Interest Coverage Interest Expense Incurred On: 2011 2012 2013 2014 2015 Interest Expense: CDs 14,364 10,665 5,311 4,827 3,743 Interest Expense: Other Deposits 4,767 2,436 1,869 2,324 3,423 Interest Expense: Total Deposits 19,131 13,101 7,180 7,151 7,165 Interest Expense: Debt 13,474 10,187 8,154 8,679 8,610 Int Exp: Total Int-bearing Liab 32,605 23,288 15,334 15,830 15,776 Net Income before Taxes 34,152 48,294 72,812 72,560 83,806 Interest Coverage (inc. deposit expense) 2.0 3.1 5.7 5.6 6.3 Interest Coverage (exc. deposit expense) 3.5 5.7 9.9 9.4 10.7 |
 Well Positioned for Rising Rates
BPS Change 1 NII % Impact NII $ Impact +100 0.5% +$0.9mm +200 3.1% +$5.5mm +300 5.4% +$9.7mm +400 7.8% +$13.9mm Balance Sheet Drivers • +100 Model results reflects impact of loan floors and WSFS prime • High % of variable/adjustable rate total loan portfolio: 68% • High % core deposits: 85%; High % non-interest bearing and low-interest DDA: 45%
• Solid brand and position / WSFS is a market “price leader” (1) WSFS IRR model estimates: Static Balance Sheet / Instantaneous Rate Shocks
26 |
 Business Model and Total Shareholder Returns
(1) Completed by the Gallup Organization, 2015 Survey
(2) Per Bloomberg; closing price as of March 31,
2016 Focused Business Model
• Consistently ranked in the top quartile of all businesses surveyed 1 • WSFS has been recog- nized by The Wilmington News Journal as a “Top Workplace Award” winner ten years in a row • Voted “Top Bank” in Delaware five years running (The News Journal) • Customer advocacy survey places WSFS at the 78th percentile 1 • On a scale of 1-5, 67% of WSFS Customers rated us a “5” saying “WSFS is the perfect bank for people like me.” 1 • Builds sustainable real profit growth • Leads to increased shareholder value • Total Shareholder Returns 2 WSFS Nasdaq Bank Index 1 year 29.98% 1.64% 3 year 105.15% 36.19% 5 year 117.03% 62.44% 10 year 71.66% 4.27% 27 |
 Appendices |
 Appendix –
Table of Contents
Section – Appendix 1 – Management Team – Appendix 2 – Business Model – Appendix 3 – Non-GAAP Financial Information 29 |
 Appendix 1 –
Management Team
• Mark A. Turner, 52, has served as President and Chief Executive Officer since 2007. Mr. Turner
was previously Chief Operating Officer and the Chief Financial Officer for
WSFS. Prior to joining WSFS, his experience includes working at
CoreStates Bank and Meridian Bancorp. Mr. Turner started
his career at the international professional services firm of KPMG, LLP. He received his MBA from the Wharton School of the University of Pennsylvania, his Masters Degree in
Executive Leadership from the University of Nebraska and his Bachelor’s
Degree in Accounting and Management from LaSalle
University. •
Rodger Levenson, 54, Executive Vice President and Chief Financial Officer
since 2015. Mr. Levenson was previously the Chief
Commercial Banking Officer from 2006. From 2003 to 2006, Mr.
Levenson was Senior Vice President and Manager of the Specialized Banking and Business Banking Divisions of Citizens Bank. Mr. Levenson received his MBA in Finance from Drexel
University and his Bachelor’s Degree in Finance from Temple
University. •
Peggy H. Eddens, 60, Executive Vice President, Chief Human Capital Officer
since 2007. From 2003 to 2007 she was Senior Vice President for
Human Resources and Development for NexTier Bank, Butler PA. Ms.
Eddens received a Master of Science Degree in Human Resource
Management from La Roche College and her Bachelor of Science Degree in
Business Administration with minors in Management and Psychology
from Robert Morris University. •
Paul D. Geraghty, 62, Executive Vice President and Chief Wealth Officer since
2011. From 2007 to 2010, he was Chief Executive Officer at
Harleysville National Corporation, Harleysville, PA. Mr.
Geraghty received his Bachelor of Science in Accounting from Villanova University and pursued graduate study in business at Lehigh University. 30 |
 Appendix 1 –
Management Team
• Thomas W. Kearney, 68, Executive Vice President and Chief Risk Officer has been with WSFS
since 1998. Mr. Kearney holds a Bachelor’s degree in Business
Administration (Finance and Accounting) from Drexel University.
He also holds the professional designations of Certified Bank
Auditor (CBA) and Certified Financial Services Auditor (CFSA). As Chief Risk Officer, Mr. Kearney’s primary responsibility is to manage and direct the various oversight functions
throughout the Company. These oversight functions include Enterprise Risk
Management, Loan Review, In-house Counsel, Security/Fraud
Investigations, Regulatory Compliance, Internal Control/Audit
and Credit Administration. •
S. James Mazarakis, 58, Executive Vice President and Chief Technology Officer
since 2010. Mr. Mazarakis served in a senior
leadership role as Chief Information Officer for T. Rowe Price, and Managing Director and Divisional CIO at JP Morgan Investment Asset Management. He received
his Master of Science degree in Management of Technology from Polytechnic
Institute of New York University.
• Thomas Stevenson, 62, has served as President of Cash Connect Division since 2003. Mr.
Stevenson joined WSFS in 1996 as Executive Vice President and Chief
Information Officer. Prior to joining WSFS, Mr. Stevenson
was the Manager of Quality Assurance at Electronic Payment
Services. Mr. Stevenson attended Wayne State University and the Banking
and Financial Services program at the University of
Michigan’s Graduate School of Business Administration.
• Richard M. Wright, 62, Executive Vice President and Chief Retail Banking Officer since 2006.
From 2003 to 2006, Mr. Wright was Executive Vice President, Retail Banking and
Marketing for DNB First in Downingtown, PA. Mr. Wright
received his MBA in Management Decision Systems from the
University of Southern California and his Bachelor’s Degree in Marketing and Economics from California State University. 31 |
 Appendix 2 –
Business Model
32 |
 Appendix 3 –
Non-GAAP Financial Information
Tangible common equity to assets and Tangible common book value per
share 33
As
of
March 31,
December 31,
December 31,
December 31,
December 31,
2016
2015
2014
2013
2012
Total assets
$
5,684,994
$
5,584,637
$
4,853,320
$
4,515,763
$
4,375,148
Less: Goodwill and other
intangible assets
(94,572)
(95,295)
(57,593)
(38,978)
(33,320)
Total tangible assets
$
5,590,422
$
5,489,342
$
4,795,727
$
4,476,785
$
4,341,828
Total Stockholders' equity
$
597,580
$
580,471
$
489,051
$
383,050
$
421,054
Less: Preferred Equity
0
0
0
0
(52,474)
Total Stockholders' common equity
597,580
580,471
489,051
383,050
368,580
Less: Goodwill and other
intangible assets
(94,572)
(95,295)
(57,593)
(38,978)
(33,320)
Total tangible common equity
$
503,008
$
485,176
$
431,458
$
344,072
$
335,260
Shares of common stock
outstanding
29,522
29,763
28,208
26,686
26,320
Calculation of tangible common book value per
share:
Book Value per share (GAAP)
$
20.24
$
19.50
$
17.34
$
14.35
$
14.00
Tangible common book value per
share (non-GAAP)
17.04
16.30
15.30
12.89
12.74
Calculation of tangible common equity to
assets: Equity to asset ratio
(GAAP) 10.51
%
10.39
%
10.08
%
8.48
%
9.62
%
Tangible common equity to asset
ratio (non-GAAP)
9.00
8.84
9.00
7.69
7.72 |
 Appendix 3 –
Non-GAAP Financial Information
Core: GAAP Reconciliation
34 3 Months Ended March 31, 2016 Net Income EPS ROAA Reported (GAAP) $15,770 $0.52 1.13% Less: Securities gains, corporate development costs, debt extinguishment & income tax benefit, net of taxes $241 $0.01 0.01 Core (non-GAAP) $16,011 $0.53 1.14% (1) Noninterest expense divided by (tax-equivalent) net interest income plus noninterest income
(2) Core Noninterest expense divided by (tax-equivalent) core net interest income plus core noninterest income
(3) Net interest income (pre-provision) plus noninterest income minus noninterest expense
(4) Core net interest income (pre-provision) plus core noninterest income minus core noninterest expense
3 Months Ended
3 Months Ended
March 31, 2016
March 31, 2015
Net Interest Income (GAAP)
$45,356
$38,817
Adj: Special FHLB Dividend
($808)
Core Net Interest Income
$45,356
$38,009
Noninterest Inc (as reported)
$23,070
$21,095
Adj: Securities Gains
($305)
($451)
Core Non-interest Income
$22,765
$20,644
Noninterest Expense (GAAP)
$43,199
$38,913
Adj: Corporate Development
($569)
($596)
Core Noninterest Expense
$42,630
$38,317
Efficiency Ratio (Reported)
(1)
62.44%
64.39%
Core Efficiency Ratio
(2)
61.89%
64.75%
Pre-tax
Pre-Provision Net Revenue
(3)
$25,227
$20,999
Core
Pre-tax
Pre-Provision Net Revenue
(4)
$25,491
$20,336
3 Months Ended
March 31, 2016
Total Average Stockholders' equity
$592,047
Less Goodwill and other intangible assets and preferred
stock ($95,074)
Total Average Tangible Common Equity
$496,973
Net Income (GAAP)
$15,770
Less: Sec. gains, corp. dev. costs, net of
taxes $241
Core Net Income (non-GAAP)
$16,011
Plus Amortization of Goodwill and Other
Intangibles $549
Core Total Tangible Net Income Allocable to Common
Stockholders
$16,562
Return on Average Tangible Common Equity
(Reported) 13.13%
Core Return on Average Tangible Common
Equity 13.33%
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