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WSFS Reports 2Q 2022 EPS of $0.94 and ROA of 1.17%; Results Reflect Growth in Loans and Diversified Fee Revenue

Board Approved 15% Dividend Increase and New 10% Share Authorization

WILMINGTON, Del., July 25, 2022 (GLOBE NEWSWIRE) -- WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, today announced its financial results for the second quarter of 2022.

Selected quarterly financial results and metrics are as follows:

(Dollars in millions, except per share data) 2Q 2022 1Q 2022 2Q 2021
Net interest income $153.6  $138.6  $106.7 
Fee revenue 72.0  60.6  49.0 
Total net revenue 225.6  199.1  155.8 
Provision for (recovery of) credit losses 8.3  19.0  (67.6) 
Noninterest expense 134.0  174.5  96.0 
Net income attributable to WSFS 60.7  3.8  95.7 
Pre-provision net revenue (PPNR)(1) 91.6  24.7  59.7 
Earnings per share (EPS) (diluted) 0.94  0.06  2.01 
Return on average assets (ROA) (a) 1.17% 0.07% 2.60%
Return on average equity (ROE) (a) 10.1  0.6  21.3 
Efficiency ratio 59.3  87.5  61.6 
          

GAAP results for the quarterly periods shown below included the following items that are excluded from core results. For 2Q 2022, the corporate development and restructuring expense primarily relates to our combination with Bryn Mawr Trust and the unrealized gain on equity investments, net relates to a gain on our investment in CRED.ai.

  2Q 2022 1Q 2022 2Q 2021
(Dollars in millions, except per share data)  Total
(pre-tax)
  Per share
(after-tax)
 Total
(pre-tax)
 Per share
(after-tax)
 Total
(pre-tax)
 Per share
(after-tax)
Unrealized gain on equity investments, net $6.0  $0.07  $  $  $5.3  $0.08 
Corporate development and restructuring expense 10.3  0.15  51.6  0.60  2.4  0.04 
Loss on debt extinguishment         1.1  0.02 
Contribution to WSFS CARES Foundation         1.0  0.02 

(1) As used in this press release, PPNR is a non-GAAP financial measure that adjusts income determined in accordance with GAAP to exclude the impacts of (i) income tax provision and (ii) provision or (recovery of) credit losses. For a reconciliation of this and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

CEO Commentary

Rodger Levenson, Chairman, President and CEO, said, “Our second quarter results demonstrated the strength of our business model and unique market position as we continue to optimize our significant strategic investments over the past three years.”

“We remain on track to achieve the synergies identified from the Bryn Mawr Trust combination. In addition, commercial loan fundings were at the highest levels in recent history and we saw continued growth in our consumer loan portfolios. This performance combined with the growth in our fee businesses are positive indicators of the potential of our franchise.”

“Despite the uncertain near term economic outlook, our asset quality metrics remain very favorable with the increase in our ACL related to the loan growth in the quarter.”

“In alignment with our longstanding capital return philosophy, the Board approved a 15% increase in our quarterly common dividend to $0.15 per share and an additional 10% share repurchase authorization. These actions provide us with the flexibility to selectively invest in the franchise while maintaining the strength of our balance sheet.”

"During the quarter, WSFS was honored to be named a 2022 honoree of The Civic 50 Greater Philadelphia by the Philadelphia Foundation, in partnership with Points of Light and other local partners. This recognition is a result of the support of our Communities, including over 13,000 volunteer hours in 2021 by our dedicated Associates who continue to live our mission of 'We Stand For Service' every day."

Highlights for 2Q 2022: 

  • Core ROA(2) was 1.27% in 2Q 2022 compared to 2.59% for 2Q 2021.
  • Core EPS(2) was $1.02 in 2Q 2022 compared to $2.00 for 2Q 2021.
  • Core fee revenue (noninterest income)(2) as a percentage of core net revenue(2) was a strong 30.0%.
  • Total net credit costs were $8.0 million during the quarter. Results reflected a $5.6 million increase in the allowance for credit losses (“ACL”), due to loan growth, partially offset by releases related to acquired portfolio run-off and sale. The ACL coverage ratio was 1.13% at June 30, 2022.
  • WSFS repurchased 1,185,602 shares at an average price of $40.74, totaling an aggregate of $48.3 million.
  • The Board of Directors approved a 15% increase in our quarterly cash dividend to $0.15 per share and a new share repurchase authorization of 10% outstanding shares. At June 30, 2022, 14% shares were available to be repurchased.
  • KCMI Capital, Inc. (“KCMI”) is a specialized commercial lending unit acquired in the Bryn Mawr Trust merger, which was not core to our overall lending strategy. The loan portfolio was sold at par value for $55.5 million.
  • The BMT Insurance Advisors (“BMTIA”) business was sold to Patriot Growth Insurance Services, LLC.
  • WSFS recognized a $6.0 million unrealized gain on our equity investment with CRED.ai, a Philadelphia-based fintech partner that provides a mobile-based everyday card spending experience.
  • $1.1 billion of available-for-sale (“AFS”) mortgage-backed securities (“MBS”), or 19% of AFS portfolio, were designated as held-to-maturity (“HTM”) at June 30, 2022 to limit the capital impact from the rising interest rate environment.

(2) As used in this press release, core ROA, core EPS, core fee revenue (noninterest income), core net revenue and core fee revenue as a percentage of core net revenue are non-GAAP financial measures. These non-GAAP financial measures exclude certain pre-tax adjustments and the tax impact of such adjustments. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

Second Quarter 2022 Discussion of Financial Results

Balance Sheet

The following table summarizes loan and lease balances and composition at June 30, 2022 compared to March 31, 2022 and June 30, 2021:

Loans and Leases            
(Dollars in millions) June 30, 2022 March 31, 2022 June 30, 2021
Commercial & industrial (C&I)(4) $4,444   39% $4,384  39% $3,456  42%
Commercial mortgage 3,322  29  3,361  30  2,025  25 
Construction 934  8  924  8  779  9 
Commercial small business leases 513   5  491  4  292  4 
Total commercial loans 9,213  81  9,160  81  6,552  80 
Residential mortgage 808  7  862  8  720  9 
Consumer 1,522  13  1,382  12  1,105  13 
ACL (142)  (1)  (136)  (1)  (132)  (2) 
Net loans and leases $11,401  100% $11,268  100% $8,245  100%

(4) C&I loans include PPP loans.

At June 30, 2022, WSFS’ net loan and lease portfolio increased $133.4 million, or 5% (annualized), when compared with March 31, 2022. Excluding the sale of KCMI and run-off of acquired residential mortgage portfolio, net loans and leases increased $225.1 million, or 8% (annualized), primarily due to increases of $140.5 million in our consumer portfolio driven by our partnerships with Upstart and Spring EQ, $93.6 million in C&I, and $22.2 million in commercial small business leases, partially offset by decrease of $17.6 million in our commercial mortgage portfolio.

Net loans and leases at June 30, 2022 increased $3.2 billion when compared with June 30, 2021. The increase was primarily driven by the $3.5 billion of net loans and leases acquired in the combination with Bryn Mawr Trust, partially offset by a $217.7 million decrease in PPP loans.

The following table summarizes customer deposit balances and composition at June 30, 2022 compared to March 31, 2022 and June 30, 2021:

Customer Deposits            
(Dollars in millions) June 30, 2022 March 31, 2022 June 30, 2021
Noninterest demand $6,552  38% $6,639  37% $4,328  34%
Interest-bearing demand 3,396  20  3,292  19  2,633  21 
Savings 2,313  13  2,279  13  1,928  15 
Money market 3,882  23  4,179  24  2,723  22 
Total core deposits 16,143  94  16,389  93  11,612  92 
Customer time deposits 1,104  6  1,156  7  1,052  8 
Total customer deposits $17,247  100% $17,545  100% $12,664  100%
 

Total customer deposits were $17.2 billion at June 30, 2022, a $298.2 million decrease from March 31, 2022 primarily due to a $128.7 million decline in short-term transaction related trust deposits and ongoing balance sheet management strategy to sweep $58.8 million in deposits.

Customer deposits increased by $4.6 billion from June 30, 2021 primarily driven by the $4.1 billion of deposits acquired in the combination with Bryn Mawr Trust and strong customer relationships across lending and fee based business lines, including $652.4 million of higher institutional trust deposits from Wealth Management.

Core deposits were a strong 94% of total customer deposits, and no- and low-cost checking accounts represented a robust 58% of total customer deposits, at June 30, 2022. These core deposits predominantly represent longer-term, less price-sensitive customer relationships. More than half of our core deposits, or 56%, from our Commercial, Small Business and Wealth Management customer relationships. The ratio of net loans and leases to customer deposits was 66% at June 30, 2022, reflecting continued significant capacity to fund future loan growth.

Net Interest Income

 Three Months Ending
(Dollars in millions) June 30, 2022 March 31, 2022 June 30, 2021
Net interest income before purchase accretion $148.4  $135.2  $93.4 
Purchase accounting accretion 5.2  3.2  7.6 
Net interest income before PPP 153.6  138.4  101.0 
PPP   0.2  5.7 
Net interest income $153.6  $138.6  $106.7 
       
Net interest margin before purchase accretion 3.29% 2.94% 2.91%
Purchase accounting accretion 0.11  0.07  0.24 
Net interest margin before PPP 3.40  3.01  3.15 
PPP     0.08 
Net interest margin 3.40% 3.01% 3.23%
 

Net interest income increased $15.1 million, or 11% (not annualized), compared to 1Q 2022, primarily due to $9.9 million from the rising interest rate environment, $3.2 million from loan growth and balance sheet mix, and $2.0 million from higher purchase accounting accretion. Net interest income increased $46.9 million, or 44%, compared to 2Q 2021, primarily due to a $55.0 million increase from the balance sheet size and mix due to the combination with Bryn Mawr Trust, offset by $5.7 million from the impact of PPP loans and a $2.4 million decrease in purchase accounting accretion.

Net interest margin increased 39bps from 1Q 2022 attributable to 26bps due to impact from the rising interest rate environment, 9bps from balance sheet mix, and 4bps from higher purchase accounting accretion. Net interest margin increased 17bps from 2Q 2021, due to a favorable increase of 38bps from the balance sheet size and mix, offset by reductions of 13bps from lower purchase accounting accretion and 8bps from PPP loans.

Excess customer liquidity reduced net interest margin by approximately 36bps compared to a reduction of 50bps in 2Q 2021 and 44bps in 1Q 2022. Excess customer liquidity as of June 30, 2022 decreased to $4.1 billion as compared to $4.7 billion at March 31, 2022, primarily driven by a reduced volumes in interest-earning cash from decreases in customer funding of $298.2 million, brokered deposits of $55.7 million, and loan growth of $139.0 million.

Credit Quality

The following table summarizes credit quality metrics as of and for the period ended June 30, 2022 compared to March 31, 2022 and June 30, 2021.

(Dollars in millions)June 30, 2022 March 31, 2022 June 30, 2021
Problem assets $567.5   $618.1   $624.9 
Nonperforming assets33.9  37.8  40.1 
Delinquencies59.5  54.6  54.5 
Net charge-offs2.6  3.3  4.8 
Total net credit costs (recoveries) (r)8.0  19.3  (68.1) 
Problem assets to total Tier 1 capital plus ACL26.24% 28.79% 39.73%
Classified assets to total Tier 1 capital plus ACL16.65  18.58  26.06 
Ratio of nonperforming assets to total assets0.16  0.18  0.26 
Ratio of nonperforming assets (excluding accruing TDRs) to total assets0.10  0.12  0.17 
Delinquencies to gross loans0.52  0.48  0.66 
Ratio of quarterly net charge-offs to average gross loans0.09  0.12  0.23 
Ratio of allowance for credit losses to total loans and leases (q)1.13  1.19  1.59 
Ratio of allowance for credit losses to nonaccruing loans676  591  551 

See “Notes”

Overall credit metric ratios remained positive and stable during the quarter and continued to reflect the strength of the originated and acquired portfolios. Total problem assets(5) decreased to $567.5 million at June 30, 2022 compared to $618.1 million at March 31, 2022, primarily from upgrades in commercial mortgage loans and our hotel sector. Total problem assets to total Tier 1 capital plus ACL was 26.24% at June 30, 2022, compared to 28.79% at March 31, 2022. Delinquencies to gross loans increased to 0.52% at June 30, 2022 compared to 0.48% at March 31, 2022.

The ratio of nonperforming assets to total assets decreased to 0.16% at June 30, 2022 compared to 0.18% at March 31, 2022. The ratio of nonperforming assets (excluding accruing TDRs) to total assets at June 30, 2022 decreased to 0.10% as compared to 0.12% at March 31, 2022. Net charge-offs for 2Q 2022 were $2.6 million, or 0.09% (annualized) of average gross loans.

Total net credit costs were $8.0 million in the quarter as compared to $19.3 million in 1Q 2022. The decrease in credit costs was primarily due to the initial provision for credit losses of $23.5 million recorded in 1Q 2022 in connection with the combination with Bryn Mawr Trust. The ACL of $142.0 million as of June 30, 2022 increased $5.6 million from March 31, 2022, primarily due to loan growth, partially offset by releases from the sale of KCMI and our acquired residential mortgage run-off portfolio.

(5) Total problem assets includes all criticized, classified, and nonperforming loans as well as other real estate owned (OREO).

Core Fee Revenue

Core fee revenue (noninterest income) of $66.0 million increased $5.5 million, or 9% (not annualized), compared to 1Q 2022, primarily driven by increases of $1.9 million in Cash Connect®, $1.9 million from capital markets income, and $1.3 million of other banking fees, including fees associated with our consumer lending partnerships as well as gain on sale of SBA loans.

Core fee revenue increased $22.3 million, or 51%, compared to 2Q 2021, primarily driven by a $17.2 million increase in Wealth Management revenue, of which $15.2 million was attributable to the combination with Bryn Mawr Trust. In addition, the year-over-year increase included $3.5 million of other banking fees, including fees associated with our consumer lending partnerships, gain on sale of SBA loans and traditional bank service fees, $3.4 million in capital markets income, and $0.8 million in Cash Connect®. Partially offsetting the increase was a $2.2 million decline in mortgage banking fees primarily resulting from the decline in refinancing originations compared to the historically higher levels in 2Q 2021.

For 2Q 2022, core fee revenue was 30.0% of core net revenue compared to 30.4% in 1Q 2022 and 29.0% in 2Q 2021, and continues to be well diversified among various sources, including traditional and other banking fees, mortgage banking, capital markets, Wealth Management, and Cash Connect®.

Core Noninterest Expense(6)

Core noninterest expense of $123.7 million for 2Q 2022 increased $0.8 million compared to 1Q 2022 primarily from increases of $3.5 million of higher variable operating costs to support growth in our balance sheet and fee-based businesses. This increase was offset by a decrease of $2.7 million in salaries and benefits as the first quarter's expenses were elevated due to routine annual incentive payments and related costs that were paid during the quarter.

When compared to 2Q 2021, core noninterest expense increased $32.2 million compared to $91.5 million in 2Q 2021, primarily due to higher costs from the acquisition of Bryn Mawr Trust. These higher costs support the overall franchise growth of the combined company, including $15.8 million in salaries and benefits, and $6.2 million in equipment, occupancy and amortization expenses. In addition, there was $4.7 million of higher variable operating costs as described above. Our core efficiency ratio(6) was 56.2% in 2Q 2022, compared to 61.7% in 1Q 2022 and 60.7% in 2Q 2021 primarily due to the impact of higher net interest income.

Income Taxes

We recorded a $22.4 million income tax provision in 2Q 2022, compared to a $1.7 million income tax provision in 1Q 2022 and $31.7 million in 2Q 2021. The effective tax rate was 26.9% in 2Q 2022, compared to 30.5% in 1Q 2022 and 24.9% in 2Q 2021.

The 1Q 2022 elevated effective tax rate was the result of nondeductible merger costs associated with the acquisition of Bryn Mawr Trust. The increase in effective tax rate for 2Q 2022 relative to 2Q 2021 was primarily due to discrete tax expense of $1.4 million related to nondeductible goodwill written off during the sale of BMTIA. Excluding this item, our effective tax rate in 2Q 2022 was 25.2%.

(6) As used in this press release, core noninterest expense and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial measures exclude corporate development and restructuring expense and the recovery of a legal settlement. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

Capital Management

The Board of Directors approved a 15% increase in the quarterly cash dividend to $0.15 per share of common stock. This dividend will be paid on August 19, 2022 to stockholders of record as of August 5, 2022. The Board of Directors also approved an additional share repurchase authorization of 10% of outstanding shares as of June 30, 2022.

During 2Q 2022, WSFS repurchased 1,185,602 shares of common stock for an aggregate of $48.3 million. As of June 30, 2022, including the additional share repurchase authorization, WSFS has 8,615,301 shares, or approximately 14% of outstanding shares, remaining to repurchase under its current authorizations.

WSFS’ total stockholders’ equity decreased $205.1 million, or 8% (not annualized), during 2Q 2022. The decrease was primarily due to a decline in accumulated other comprehensive income (AOCI) of $205.1 million from market-value decreases on investment securities resulting from the current rising interest rate environment. Additionally, quarterly earnings of $60.7 million were offset by capital returns to stockholders of $48.3 million from share repurchases described above, and $8.4 million from quarterly dividends.

At June 30, 2022, WSFS Bank’s Tier 1 leverage ratio of 10.02%, Common Equity Tier 1 capital ratio and Tier 1 capital ratio of 13.60%, and Total Capital ratio of 14.57% were all substantially in excess of the “well-capitalized” regulatory benchmarks.

WSFS’ tangible common equity(7) decreased $192.8 million, or 13% (not annualized) compared to March 31, 2022. WSFS’ common equity to assets ratio was 11.27% at June 30, 2022, and our tangible common equity to tangible assets ratio(7) decreased by 84bps during the quarter to 6.63% primarily due to the reasons described above.

At June 30, 2022, book value per share was $36.41, a decrease of $2.53, or 6% (not annualized), from March 31, 2022, and tangible common book value per share(7) was $20.37, a decrease of $2.62, or 11% (not annualized), from March 31, 2022 primarily due to the reasons described above.

(7) As used in this press release, tangible common equity, tangible common equity to tangible assets ratio and tangible common book value per share are non-GAAP financial measures. These non-GAAP financial measures exclude goodwill and intangible assets and the related tax-effected amortization. For a reconciliation of these and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.

Selected Business Segments (included in previous results):

Wealth Management

The Wealth Management segment provides a broad array of planning and advisory services, investment management, trust services, insurance and credit and deposit products to individual, corporate, and institutional clients through multiple integrated businesses. Combined, these businesses had $60.3 billion in assets under management (AUM) and assets under administration (AUA) as of June 30, 2022. As previously disclosed, Bryn Mawr Trust will be the prominent brand within our Wealth Management segment.

Wealth Management reported pre-tax income of $20.2 million in 2Q 2022 compared to $15.5 million in 1Q 2022, and $10.7 million in 2Q 2021. The quarter-over-quarter increase was primarily attributable to net interest income growth in private banking from the favorable interest rate environment, revenue growth in the administrative trust businesses and a decline in certain credit-related and legal expenses. The year-over-year increase was mainly from the combination of Bryn Mawr Trust.

Total revenue (net interest income and fee revenue) was $43.3 million in 2Q 2022, an increase of $4.3 million, or 11% (not annualized), compared to 1Q 2022, and an increase of $22.9 million, or 112%, compared to 2Q 2021. These increases were primarily due to the reasons described above.

The administrative trust businesses revenue was $16.0 million in 2Q 2022, compared to $15.2 million in 1Q 2022, and $10.8 million in 2Q 2021. The quarter-over-quarter increase was primarily attributable to institutional service organic growth, supported by continued strength in corporate activity and new client relationships which drove a 40.7% increase in deal volume during the first half of 2022, compared to the same period in 2021, as reported by Asset Backed Alert.

The wealth advisory businesses revenue was $14.5 million in 2Q 2022 compared to $14.4 million in 1Q 2022 and $3.9 million in 2Q 2021. Net AUM of $7.6 billion at the end of 2Q 2022 decreased $1.3 billion compared to 1Q 2022, and increased $5.1 billion compared to 2Q 2021. The quarter-over-quarter decline was primarily impacted by the decline in equity and fixed income markets.

Total noninterest expense (including intercompany allocations and excluding provision for credit losses) was $22.8 million in 2Q 2022, compared to $23.8 million in 1Q 2022 and $10.9 million in 2Q 2021. Noninterest expenses decreased $1.0 million from 1Q 2022 and increased $11.9 million from 2Q 2021 primarily due to the reasons described above.

Cash Connect® 

Cash Connect® is a premier provider of ATM vault cash, smart safe and cash logistics services in the United States. Cash Connect® services over 34,000 non-bank ATMs and retail safes nationwide supplying or servicing approximately $2.0 billion in cash at June 30, 2022. Cash Connect® also supports over 600 ATMs for WSFS Bank Customers, which is one of the largest branded ATM networks in our market.

Cash Connect® reported pre-tax income of $2.3 million for 2Q 2022, an increase of $0.6 million, or 31% (not annualized), compared to 1Q 2022 driven by increased managed services activity, and a decrease of $0.9 million compared to 2Q 2021 driven by lower ATM vault cash activity and increased operating costs associated with the rising interest rate environment. ROA of 1.26% in 2Q 2022 increased 14bps from 1Q 2022 and decreased 82bps from 2Q 2021 driven by a shift in funding composition mix and lower net income.

Net revenue of $11.6 million in 2Q 2022 was up $1.2 million from 1Q 2022 driven by higher managed service fee revenue and the rising interest rate environment (offset by higher external funding expense). Net revenue was flat year-over-year from 2Q 2021 with higher fee revenue offset by increased cost of funds.

Noninterest expense (including intercompany allocations of expense) was $9.3 million in 2Q 2022, an increase of $0.6 million higher compared to 1Q 2022 driven by armored carrier expense and external funding expense, and $0.9 million higher compared to 2Q 2021 driven by higher external funding and operating expense.

At the end of 2Q 2022, Cash Connect® had approximately $2.0 billion in cash managed, driven by year-over-year growth in remote cash capture and reconciliation units (18% and 15%, respectively). Cash Connect® intends to continue to focus on investment in its growing product lines and expand these services across the country, alongside a wide network and strong pipeline of channel partners, retailers, and top-tier financial institutions.

Second Quarter 2022 Earnings Release Conference Call

Management will conduct a conference call to review 2Q 2022 results at 1:00 p.m. Eastern Time (ET) on Tuesday, July 26, 2022. Interested parties may register in advance for the call on our Investor Relations website (www.investors.wsfsbank.com). A rebroadcast of the conference call will be available beginning at 4:00 p.m. ET on July 26, 2022 until August 6, 2022 and can be accessed through our Investor Relations website.

About WSFS Financial Corporation

WSFS Financial Corporation is a multi-billion dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally-headquartered bank and trust company headquartered in Delaware and the Greater Philadelphia region. As of June 30, 2022, WSFS Financial Corporation had $20.6 billion in assets on its balance sheet and $60.3 billion in assets under management and administration. WSFS operates from 121 offices, 94 of which are banking offices, located in Pennsylvania (62), Delaware (39), New Jersey (18), Virginia (1) and Nevada (1) and provides comprehensive financial services including commercial banking, retail banking, cash management and trust and wealth management. Other subsidiaries or divisions include Arrow Land Transfer, Cash Connect®, Cypress Capital Management, LLC, NewLane Finance®, Powdermill® Financial Solutions, West Capital Management®, WSFS Institutional Services®, WSFS Mortgage®, WSFS Wealth® Investments, and The Bryn Mawr Trust Company of Delaware. Serving the Greater Delaware Valley since 1832, WSFS Bank is one of the ten oldest banks in the United States continuously operating under the same name. For more information, please visit www.wsfsbank.com.

Forward-Looking Statement Disclaimer

This press release 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 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, difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the markets in which the Company operates and in which its loans are concentrated, including possible declines in housing markets, an increase in unemployment levels, interest rates, inflation, supply chain issues and slowdowns in economic growth, including as a result of the novel coronavirus and its variants ("COVID-19") pandemic; possible additional loan losses and impairment of the collectability of loans; additional credit, fraud and litigation risks associated with our PPP lending activities; economic and financial impact of federal, state and local emergency orders, vaccine mandates and other actions taken in response to the COVID-19 pandemic; the continuation of these conditions related to the COVID-19 pandemic, including whether due to a resurgence or additional waves of COVID-19 infections or variants thereof, particularly as the geographic areas in which we operate continue to re-open, and how quickly and to what extent normal economic and operating conditions can resume and the potential waning of vaccine effectiveness or effects of low vaccination rates; the Company's level of nonperforming assets and the costs associated with resolving problem loans including litigation and other costs and complying with government-imposed foreclosure moratoriums; changes in market interest rates which may increase funding costs and reduce earning asset yields and thus reduce 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 the Company's loan portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company's operations and potential expenses associated with complying with such regulations; the Company's ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms; possible changes in trade, monetary and fiscal policies and stimulus programs, laws and regulations and other activities of governments, agencies, and similar organizations, and the uncertainty of the short- and long-term impacts of such changes; any impairments of the Company's goodwill or other intangible assets; conditions in the financial markets, including the destabilized economic environment caused by the COVID-19 pandemic, the changing interest rate environment and inflation, that may limit the Company's access to additional funding to meet its liquidity needs; the discontinued publication of London Inter-Bank Offered Rate (LIBOR) and the transition to an alternative reference interest rate, such as the Secured Overnight Financing Rate (SOFR), including methodologies for calculating the rate that are different from the LIBOR methodology and changed language for existing and new floating or adjustable rate contracts; the success of the Company's growth plans, including its plans to grow the commercial small business leasing, residential, small business and Small Business Administration portfolios and wealth management business following its recent acquisition of Bryn Mawr Trust; the Company's ability to successfully integrate and fully realize the cost savings and other benefits of its acquisitions, manage risks related to business disruption following those acquisitions, and post-acquisition Customer acceptance of the Company's products and services and related Customer disintermediation, including its recent acquisition of Bryn Mawr Trust; negative perceptions or publicity with respect to the Company generally and, in particular, the Company's trust and wealth management business; failure of the financial and operational controls of the Company's Cash Connect® division; adverse judgments or other resolution of pending and future legal proceedings, and cost incurred in defending such proceedings; the Company's reliance on third parties for certain important functions, including the operation of its core systems, and any failures by such third parties; system failures or cybersecurity incidents or other breaches of the Company's network security, particularly given widespread remote working arrangements; the Company's ability to recruit and retain key Associates; the effects of problems encountered by other financial institutions that adversely affect the Company or the banking industry generally; the effects of weather, including climate change, and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability, armed conflicts, public health crises and man-made disasters including terrorist attacks; the effects of regional or national civil unrest (including any resulting branch or ATM closures or damage); possible changes in the speed of loan prepayments by the Company's Customers and loan origination or sales volumes; possible changes in the speed of prepayments of mortgage-backed securities due to changes in the interest rate environment, and the related acceleration of premium amortization on prepayments in the event that prepayments accelerate; regulatory limits on the Company's ability to receive dividends from its subsidiaries and pay dividends to its stockholders; any reputation, credit, interest rate, market, operational, litigation, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above; and other risks and uncertainties, including those discussed in the Company's Form 10-K for the year ended December 31, 2021, the Company's Form 10-Q for the quarterly period ended March 31, 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 press release, 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.

WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited)

  Three months ended Six months ended
(Dollars in thousands, except per share data) June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Interest income:
Interest and fees on loans $129,342  $118,881  $98,645  $248,223  $207,497 
Interest on mortgage-backed securities 27,377  23,113  12,506  50,490  23,210 
Interest and dividends on investment securities 1,340  1,321  1,383  2,661  2,832 
Other interest income 1,961  822  368  2,783  644 
  160,020  144,137  112,902  304,157  234,183 
Interest expense:          
Interest on deposits 3,766  3,128  3,778  6,894  8,274 
Interest on Federal Home Loan Bank advances         5 
Interest on senior debt 1,949  1,929  2,053  3,878  4,319 
Interest on trust preferred borrowings 682  513  317  1,195  641 
Interest on other borrowings 8  9  5  17  10 
  6,405  5,579  6,153  11,984  13,249 
Net interest income 153,615  138,558  106,749  292,173  220,934 
Provision for (recovery of) credit losses 8,268  18,971  (67,563)  27,239  (87,723) 
Net interest income after provision for (recovery of) credit losses 145,347  119,587  174,312  264,934  308,657 
Noninterest income:          
Credit/debit card and ATM income 8,772  7,681  7,567  16,453  14,372 
Investment management and fiduciary revenue 31,192  30,181  15,360  61,373  29,613 
Deposit service charges 6,071  5,825  5,319  11,896  10,779 
Mortgage banking activities, net 2,211  2,898  4,453  5,109  13,053 
Loan and lease fee income 1,698  1,334  1,730  3,032  5,215 
Securities gains, net         329 
Unrealized gain (loss) on equity investment, net 5,991  (3)  5,261  5,988  5,261 
Bank-owned life insurance income 374  105  695  479  900 
Other income 15,720  12,553  8,633  28,273  17,318 
  72,029  60,574  49,018  132,603  96,840 
Noninterest expense:          
Salaries, benefits and other compensation 68,189  70,930  52,408  139,119  105,546 
Occupancy expense 9,902  10,792  8,083  20,694  16,543 
Equipment expense 10,388  10,373  7,338  20,761  14,729 
Data processing and operations expense 5,288  5,359  3,444  10,647  6,829 
Professional fees 5,273  3,451  3,401  8,724  7,257 
Marketing expense 1,637  1,266  1,286  2,903  2,278 
FDIC expenses 1,468  1,391  1,056  2,859  2,125 
Loss on debt extinguishment     1,087    1,087 
Loan workout and other credit costs (226)  328  (552)  102  568 
Corporate development expense 6,393  34,038  2,543  40,431  4,638 
Restructuring expense 3,934  17,514  (144)  21,448  (409) 
Other operating expenses 21,803  19,015  16,082  40,818  30,460 
  134,049  174,457  96,032  308,506  191,651 
Income before taxes 83,327  5,704  127,298  89,031  213,846 
Income tax provision 22,425  1,737  31,687  24,162  53,094 
Net income 60,902  3,967  95,611  64,869  160,752 
Less: Net income (loss) attributable to noncontrolling interest 162  163  (56)  325  3 
Net income attributable to WSFS $60,740  $3,804  $95,667  $64,544  $160,749 
Diluted earnings per share of common stock: $0.94  $0.06  $2.01  $1.00  $3.37 
Weighted average shares of common stock outstanding for fully diluted EPS 64,283,288  65,127,000  47,691,709  64,696,053  47,675,223 

See “Notes”

WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME (Unaudited) - continued

  Three months ended Six months ended
  June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Performance Ratios:          
Return on average assets (a) 1.17% 0.07% 2.60% 0.62% 2.23%
Return on average equity (a) 10.13  0.57  21.32  5.08  18.15 
Return on average tangible common equity (a)(o) 18.61  1.58  31.43  9.14  26.99 
Net interest margin (a)(b) 3.40  3.01  3.23  3.20  3.40 
Efficiency ratio (c) 59.29  87.51  61.55  72.52  60.21 
Noninterest income as a percentage of total net revenue (b) 31.86  30.39  31.42  31.17  30.43 

See “Notes”

WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
SUMMARY STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(Dollars in thousands) June 30, 2022 March 31, 2022 June 30, 2021
Assets:      
Cash and due from banks $1,036,554  $1,784,460  $1,944,059 
Cash in non-owned ATMs 633,710  490,784  470,157 
Investment securities, available-for-sale 4,496,087  5,495,929  3,366,579 
Investment securities, held-to-maturity 1,064,182  84,898  95,126 
Other investments 37,527  30,980  28,635 
Net loans and leases (e)(f)(l) 11,401,486  11,268,099  8,245,019 
Bank owned life insurance 100,515  100,364  32,759 
Goodwill and intangibles 1,019,857  1,032,189  551,951 
Other assets 760,298  676,971  414,576 
Total assets $20,550,216  $20,964,674  $15,148,861 
Liabilities and Stockholders’ Equity:      
Noninterest-bearing deposits $6,551,542  $6,638,890  $4,328,060 
Interest-bearing deposits 10,695,127  10,906,016  8,335,960 
Total customer deposits 17,246,669  17,544,906  12,664,020 
Brokered deposits 22,938  78,638  62,825 
Total deposits 17,269,607  17,623,544  12,726,845 
Other borrowings 369,783  372,402  236,470 
Other liabilities 597,950  450,911  303,735 
Total liabilities 18,237,340  18,446,857  13,267,050 
Stockholders’ equity of WSFS 2,315,360  2,520,463  1,884,054 
Noncontrolling interest (2,484)  (2,646)  (2,243) 
Total stockholders' equity 2,312,876  2,517,817  1,881,811 
Total liabilities and stockholders' equity $20,550,216  $20,964,674  $15,148,861 
Capital Ratios:      
Equity to asset ratio 11.27% 12.02% 12.44%
Tangible common equity to tangible asset ratio (o) 6.63  7.47  9.13 
Common equity Tier 1 capital (required: 4.5%; well capitalized: 6.5%) (g) 13.60  13.93  14.21 
Tier 1 leverage (required: 4.00%; well-capitalized: 5.00%) (g) 10.02  9.98  10.11 
Tier 1 risk-based capital (required: 6.00%; well-capitalized: 8.00%) (g) 13.60  13.93  14.21 
Total risk-based capital (required: 8.00%; well-capitalized: 10.00%) (g) 14.57  14.89  15.41 
Asset Quality Indicators:      
Nonperforming assets:      
Nonaccruing loans $21,011  $23,087  $24,024 
Troubled debt restructuring (accruing) 12,484  12,933  14,997 
Assets acquired through foreclosure 358  1,818  1,044 
Total nonperforming assets $33,853  $37,838  $40,065 
Past due loans (h) $11,894  $11,623  $8,533 
Allowance for credit losses 141,976  136,334  132,423 
Ratio of nonperforming assets to total assets 0.16% 0.18% 0.26%
Ratio of nonperforming assets (excluding accruing TDRs) to total assets 0.10  0.12  0.17 
Ratio of allowance for credit losses to total loans and leases (q) 1.13  1.19  1.59 
Ratio of allowance for credit losses to nonaccruing loans 676  591  551 
Ratio of quarterly net charge-offs to average gross loans (a)(e)(i)(n) 0.09  0.12  0.23 
Ratio of year-to-date net charge-offs to average gross loans (a)(e)(i)(n) 0.10  0.12  0.20 

See “Notes”

WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued) 
AVERAGE BALANCE SHEET (Unaudited)

(Dollars in thousands) Three months ended
  June 30, 2022 March 31, 2022 June 30, 2021
   Average
Balance
  Interest &
Dividends
  Yield/
Rate
(a)(b)
 Average
Balance
 Interest &
Dividends
 Yield/
Rate
(a)(b)
 Average
Balance
 Interest &
Dividends
 Yield/
Rate
(a)(b)
Assets:
Interest-earning assets:
Loans: (e) (j)                  
Commercial loans and leases (p) $4,831,874  $56,950  4.74% $4,851,090  $52,466  4.39% $3,900,612  $46,039  4.74%
Commercial real estate loans (s) 4,238,090  43,448  4.11  4,292,159  40,639  3.84  2,791,438  28,277  4.06 
Residential mortgage 787,909  8,774  4.45  843,699  9,657  4.58  647,442  11,271  6.96 
Consumer loans 1,463,391  19,232  5.27  1,357,970  15,284  4.56  1,123,440  11,950  4.27 
Loans held for sale 66,502  938  5.66  74,694  835  4.53  131,460  1,108  3.38 
Total loans and leases 11,387,766  129,342  4.56  11,419,612  118,881  4.22  8,594,392  98,645  4.61 
Mortgage-backed securities (d) 5,282,333  27,377  2.07  5,223,794  23,113  1.77  2,978,331  12,506  1.68 
Investment securities (d) 295,845  1,340  2.13  330,826  1,321  1.82  318,415  1,383  1.97 
Other interest-earning assets 1,206,849  1,961  0.65  1,721,659  822  0.19  1,414,264  368  0.10 
 Total interest-earning assets $18,172,793  $160,020  3.54% $18,695,891  $144,137  3.13% $13,305,402  $112,902  3.41%
Allowance for credit losses (136,773)      (134,780)      (194,211)     
Cash and due from banks 268,485      209,730      176,015     
Cash in non-owned ATMs 566,174      509,568      468,136     
Bank owned life insurance 100,356      100,756      32,329     
Other noninterest-earning assets 1,766,854      1,638,727      998,948     
Total assets $20,737,889      $21,019,892      $14,786,619     
Liabilities and stockholders’ equity:                  
Interest-bearing liabilities:                  
Interest-bearing deposits:                  
Interest-bearing demand $3,348,511  $941  0.11% $3,435,377  $581  0.07% $2,560,283  $531  0.08%
Savings 2,281,051  159  0.03  2,262,026  162  0.03  1,922,342  149  0.03 
Money market 3,984,562  1,231  0.12  4,092,835  925  0.09  2,754,895  801  0.12 
Customer time deposits 1,142,139  1,273  0.45  1,173,023  1,323  0.46  1,078,296  1,842  0.69 
Total interest-bearing customer deposits 10,756,263  3,604  0.13  10,963,261  2,991  0.11  8,315,816  3,323  0.16 
Brokered deposits 35,469  162  1.83  63,376  137  0.88  63,407  455  2.88 
     Total interest-bearing deposits 10,791,732  3,766  0.14  11,026,637  3,128  0.12  8,379,223  3,778  0.18 
Trust preferred borrowings 90,312  682  3.03  90,263  513  2.30  67,011  317  1.90 
Senior debt 248,448  1,949  3.14  248,565  1,929  3.10  228,260  2,053  3.60 
Other borrowed funds 31,045  8  0.10  38,396  9  0.10  21,661  5  0.09 
          Total interest-bearing liabilities $11,161,537  $6,405  0.23% $11,403,861  $5,579  0.20% $8,696,155  $6,153  0.28%
Noninterest-bearing demand deposits 6,631,062      6,450,783      3,963,476     
Other noninterest-bearing liabilities 543,587      445,855      329,341     
Stockholders’ equity of WSFS 2,404,262      2,722,263      1,799,839     
Noncontrolling interest (2,559)      (2,870)      (2,192)     
Total liabilities and equity $20,737,889      $21,019,892      $14,786,619     
Excess of interest-earning assets over interest-bearing liabilities $7,011,256      $7,292,030      $4,609,247     
Net interest and dividend income   $153,615      $138,558      $106,749   
Interest rate spread     3.31%     2.93%     3.13%
Net interest margin     3.40%     3.01%     3.23%

See “Notes”

WSFS FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
 

(Dollars in thousands, except per share data) Three months ended Six months ended
Stock Information: June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Market price of common stock:          
High $48.62 $56.30 $55.12 $56.30 $55.18
Low 37.03 46.51 46.32 37.03 40.64
Close 40.09 46.62 46.59 40.09 46.59
Book value per share of common stock 36.41 38.94 39.63    
Tangible common book value per share of common stock (o) 20.37 22.99 28.02    
Number of shares of common stock outstanding (000s) 63,587 64,735 47,535    
Other Financial Data:          
One-year repricing gap to total assets (k) 11.31% 12.19% 14.38%    
Weighted average duration of the MBS portfolio 6.0 years 5.5 years 4.6 years    
Unrealized (losses) gains on securities available for sale, net of taxes $(395,212) $(309,792) $14,147    
Number of Associates (FTEs) (m) 2,209 2,265 1,859    
Number of offices (branches, LPO’s, operations centers, etc.) 121 122 112    
Number of WSFS owned and branded ATMs 617 630 614    
           

Notes:

 (a) Annualized.
 (b) Computed on a fully tax-equivalent basis.
 (c) Noninterest expense divided by (tax-equivalent) net interest income and noninterest income.
 (d) Includes securities held-to-maturity (at amortized cost) and securities available-for-sale (at fair value).
 (e) Net of unearned income.
 (f) Net of allowance for credit losses.
 (g) Represents capital ratios of Wilmington Savings Fund Society, FSB and subsidiaries. Capital Ratios for the current quarter are to be considered preliminary until the Call Reports are filed.
 (h) Accruing loans which are contractually past due 90 days or more as to principal or interest. Balance includes student loans acquired from Beneficial, which are U.S. government guaranteed with little risk of credit loss.
 (i) Excludes loans held for sale.
 (j) Nonperforming loans are included in average balance computations.
 (k) The difference between projected amounts of interest-sensitive assets and interest-sensitive liabilities repricing within one year divided by total assets, based on a current interest rate scenario.
 (l) Includes loans held for sale and reverse mortgages.
 (m) Includes seasonal Associates, when applicable.
 (n) Excludes reverse mortgage loans.
 (o) The Company uses non-GAAP (United States Generally Accepted Accounting Principles) financial information in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial 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 financial 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 and other non-GAAP financial measures to their comparable GAAP measures, see "Non-GAAP Reconciliation" at the end of the press release.
 (p) Includes commercial & industrial loans, PPP loans and commercial small business leases.
 (q) Represents amortized cost basis for loans, leases and held-to-maturity securities.
 (r) Includes provision for (recovery of) credit losses, loan workout expenses, OREO expenses and other credit costs.
 (s) Includes commercial mortgage and commercial construction loans.
    

WSFS FINANCIAL CORPORATION 
FINANCIAL HIGHLIGHTS (Continued)
(Dollars in thousands, except per share data)
(Unaudited)
 

Non-GAAP Reconciliation (o): Three months ended Six months ended
  June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Net interest income (GAAP) $153,615  $138,558  $106,749  $292,173  $220,934 
Core net interest income (non-GAAP) 153,615  138,558  106,749  292,173  220,934 
Noninterest income (GAAP) 72,029  60,574  49,018  132,603  96,840 
Less: Securities gains         329 
Less/(plus): Unrealized gain (loss) on equity investments, net 5,991  (3)  5,261  5,988  5,261 
Core fee revenue (non-GAAP) $66,038  $60,577  $43,757  $126,615  $91,250 
Core net revenue (non-GAAP) $219,653  $199,135  $150,506  $418,788  $312,184 
Core net revenue (non-GAAP)(tax-equivalent) $220,095  $199,349  $150,755  $419,444  $312,697 
Noninterest expense (GAAP) $134,049  $174,457  $96,032  $308,506  $191,651 
Less: Loss on debt extinguishment     1,087    1,087 
Less: Corporate development expense 6,393  34,038  2,543  40,431  4,638 
Less/(plus): Restructuring expense 3,934  17,514  (144)  21,448  (409) 
Less: Contribution to WSFS CARES Foundation     1,000    1,000 
Core noninterest expense (non-GAAP) $123,722  $122,905  $91,546  $246,627  $185,335 
Core efficiency ratio (non-GAAP) 56.2% 61.7% 60.7% 58.8% 59.3%
Core fee revenue as a percentage of total core net revenue (non-GAAP) (b) 30.0% 30.4% 29.0% 30.2% 29.2%
           
  End of period    
  June 30, 2022 March 31, 2022 June 30, 2021    
Total assets (GAAP) $20,550,216  $20,964,674  $15,148,861     
Less: Goodwill and other intangible assets 1,019,857  1,032,189  551,951     
Total tangible assets (non-GAAP) $19,530,359  $19,932,485  $14,596,910     
Total stockholders’ equity of WSFS (GAAP) $2,315,360  $2,520,463  $1,884,054     
Less: Goodwill and other intangible assets 1,019,857  1,032,189  551,951     
Total tangible common equity (non-GAAP) $1,295,503  $1,488,274  $1,332,103     
           
Tangible common book value per share:        
Book value per share (GAAP) $36.41  $38.94  $39.63     
Tangible common book value per share (non-GAAP) 20.37  22.99  28.02     
Tangible common equity to tangible assets:        
Equity to asset ratio (GAAP) 11.27% 12.02% 12.44%    
Tangible common equity to tangible assets ratio (non-GAAP) 6.63  7.47  9.13     
              

Non-GAAP Reconciliation - continued (o): Three months ended Six months ended
  June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021
GAAP net income attributable to WSFS $60,740  $3,804  $95,667  $64,544  $160,749 
Plus/(less): Pre-tax adjustments: Securities gains, unrealized gain (loss) on equity investments, loss on debt extinguishment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation 4,336  51,555  (775)  55,891  726 
(Plus)/less: Tax impact of pre-tax adjustments 334  (12,344)  510  (12,358)  521 
Adjusted net income (non-GAAP) attributable to WSFS $65,410  $43,015  $95,402  $108,077  $161,996 
           
GAAP return on average assets (ROA) 1.17% 0.07% 2.60% 0.62% 2.23%
Plus/(less): Pre-tax adjustments: Securities gains, unrealized gain (loss) on equity investments, loss on debt extinguishment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation 0.08  0.99  (0.02)  0.54  0.01 
(Plus)/less: Tax impact of pre-tax adjustments 0.02  (0.23)  0.01  (0.12)  0.01 
Core ROA (non-GAAP) 1.27% 0.83% 2.59% 1.04% 2.25%
           
Earnings per share (diluted) (GAAP) $0.94  $0.06  $2.01  $1.00  $3.37 
Plus/(less): Pre-tax adjustments: Securities gains, unrealized gain (loss) on equity investments, loss on debt extinguishment, corporate development and restructuring expense, and contribution to WSFS CARES Foundation 0.07  0.79  (0.02)  0.86  0.02 
(Plus)/less: Tax impact of pre-tax adjustments 0.01  (0.19)  0.01  (0.19)  0.01 
Core earnings per share (non-GAAP) $1.02  $0.66  $2.00  $1.67  $3.40 
           
Calculation of return on average tangible common equity:        
GAAP net income attributable to WSFS $60,740  $3,804  $95,667  $64,544  $160,749 
Plus: Tax effected amortization of intangible assets 2,940  2,980  1,996  5,921  4,000 
Net tangible income (non-GAAP) $63,680  $6,784  $97,663  $70,465  $164,749 
Average stockholders’ equity of WSFS $2,404,262  $2,722,263  $1,799,839  $2,562,384  $1,785,907 
Less: average goodwill and intangible assets 1,032,131  982,800  553,665  1,007,602  554,997 
Net average tangible common equity $1,372,131  $1,739,463  $1,246,174  $1,554,782  $1,230,910 
Return on average tangible common equity (non-GAAP) 18.61% 1.58% 31.43% 9.14% 26.99%
           

  Three months ended Six months ended
  June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Calculation of PPNR:
Net income (GAAP) $60,902  $3,967  $95,611  $64,869  $160,752 
(Less)/plus: Income tax (benefit) provision 22,425  1,737  31,687  24,162  53,094 
Plus/(less): Provision for (recovery of) credit losses 8,268  18,971  (67,563)  27,239  (87,723) 
PPNR (non-GAAP) $91,595  $24,675  $59,735  $116,270  $126,123 
           

Investor Relations Contact: Dominic C. Canuso
(302) 571-6833; [email protected]
Media Contact: Rebecca Acevedo
(215) 253-5566; [email protected]

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