WSFS Financial Corporation (NASDAQ:WSFS), the parent company of WSFS Bank, today announced its financial results for the fourth quarter of 2022.

Selected financial results and metrics are as follows:

(Dollars in millions, except per share data)		4Q 2022			3Q 2022			4Q 2021			2022			2021
Net interest income	$	193.9		$	176.8		$	108.2		$	662.9		$	433.6
Fee revenue		64.9			62.7			46.0			260.1			185.5
Total net revenue		258.8			239.5			154.3			923.0			619.1
Provision for (recovery of) credit losses		13.4			7.5			(8.1	)		48.1			(117.1	)
Noninterest expense		132.9			132.9			90.4			574.3			378.5
Net income attributable to WSFS		84.4			73.4			56.3			222.4			271.4
Pre-provision net revenue (PPNR)⁽¹⁾		125.9			106.6			63.8			348.7			240.6
Earnings per share (EPS) (diluted)		1.37			1.16			1.18			3.49			5.69
Return on average assets (ROA) (a)		1.69	%		1.44	%		1.45	%		1.09	%		1.82	%
Return on average equity (ROE) (a)		15.7			12.4			11.7			9.3			14.7
Fee revenue as % of total net revenue		25.0			26.1			29.8			28.1			29.9
Efficiency ratio		51.2			55.4			58.5			62.1			61.0

GAAP results for the quarterly periods shown below included the following items that are excluded from core results. For 4Q 2022, the corporate development and restructuring expense primarily relates to our combination with Bryn Mawr Trust and the valuation adjustment of $0.6 million is related to our derivative liability established from the sale of 360,000 Visa Class B shares in 2Q 2020.

	4Q 2022				3Q 2022				4Q 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)
Visa derivative valuation adjustment⁽²⁾	$	0.6	$	0.01	$	2.3	$	0.03	$	—		$	—
Corporate development and restructuring expense		0.8		0.01		2.6		0.03		6.7			0.11
Recovery of legal settlement		—		—		—		—		(15.0	)		0.23

⁽¹⁾ As used in this press release, PPNR is a non-GAAP financial 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) 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.

⁽²⁾ The Visa derivative valuation adjustment represents an expense to increase the liability and is included in Other income on the Summary Statements of Income.

CEO Commentary

Rodger Levenson, Chairman, President and CEO, said, "We are very pleased to end 2022 with strong 4Q results and momentum. Core EPS⁽³⁾ of $1.38 and Core ROA⁽³⁾ of 1.71% represented a significant lift from 3Q increasing 12% and 13%, respectively.

"Our operating performance was driven by a 50 basis point increase in NIM to 4.49% and solid loan growth. The strength and diversity of our fee revenue was also evident in the quarter. The decline in total deposits was a result of continued absorption of customer excess liquidity combined with lower transactional related deposits in our institutional trust business and normal reduction in seasonal municipal accounts. Credit metrics remained very favorable and capital levels strong.

"Despite the uncertain economic outlook, we enter 2023 highly optimistic about our unique market position and the growth potential of WSFS. The entire organization is focused on optimizing our prior strategic investments and strengthening our opportunity as the largest locally-headquartered bank and wealth management franchise in the Greater Philadelphia and Delaware region.

"I extend my sincere thanks to our over 2,100 Associates for their commitment, dedication, service to our customers, and overall contributions to this successful and milestone year."

⁽³⁾ As used in this press release, core ROA, core EPS, and 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.

Highlights for 4Q 2022:

Core ROA was 1.71% compared to 1.28% for 4Q 2021.

Core EPS was $1.38 compared to $1.04 for 4Q 2021.

Loan growth of 6% (annualized) driven by our consumer partnerships and the commercial portfolio, including small business leases.

Customer deposits declined by $621.0 million. When excluding the decreases from seasonal public funding deposits and transactional trust deposits, the quarter-over-quarter decline was $236.3 million, or 2% (6% annualized), primarily from continued customer utilization of excess liquidity.

Net interest margin expanded to 4.49% compared to 3.99% in 3Q 2022, driven by the benefits of our asset-sensitive balance sheet and reflective of competitive deposit betas.

Total net credit costs were $13.0 million, primarily from the impact of the economic forecast and net loan growth on the provision for credit losses. The ACL coverage ratio was 1.17% compared to 1.14% at September 30, 2022.

Core fee revenue (noninterest income)⁽⁴⁾was $65.5 million, an increase of $0.5 million compared to 3Q 2022, resulting in a 25.2% core fee revenue as a percentage of core net revenue⁽⁴⁾, continuing to reflect the strength, resiliency, and diversification of our fee-based businesses.

Core efficiency⁽⁴⁾ ratio was 50.8% compared to 53.8% in 3Q 2022.

WSFS repurchased 361,980 shares of common stock at an average price of $47.76 per share, totaling an aggregate of $17.3 million. During the year, WSFS repurchased approximately 4.2 million shares of common stock, or 7% of shares outstanding, at an average price of $46.78 per share, returning $194.2 million of capital to stockholders.

The Board of Directors also approved a quarterly cash dividend of $0.15 per share.

⁽⁴⁾ As used in this press release, core fee revenue (noninterest income), core fee revenue as a percentage of core net revenue, core net revenue, and core efficiency ratio 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.

Fourth Quarter 2022 Discussion of Financial Results

Balance Sheet

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

Loans and Leases
(Dollars in millions)	December 31, 2022					September 30, 2022					December 31, 2021
Commercial & industrial (C&I)⁽⁵⁾	$	4,408		37	%	$	4,445		38	%	$	3,271		41	%
Commercial mortgage		3,351		28			3,280		28			1,882		24
Construction		1,044		9			1,028		9			687		9
Commercial small business leases		559		5			535		5			352		4
Total commercial loans		9,362		79			9,288		80			6,192		78
Residential mortgage		782		7			802		7			649		8
Consumer		1,811		15			1,677		14			1,159		15
ACL		(152	)	(1	)		(146	)	(1	)		(95	)	(1	)
Net loans and leases	$	11,803		100	%	$	11,621		100	%	$	7,905		100	%

⁽⁵⁾C&I loans include PPP loans of $31.5 million as of 4Q 2021.

At December 31, 2022, WSFS' net loan and lease portfolio increased $182.1 million, or 6% (annualized), when compared with September 30, 2022. Excluding the run-off in our acquired residential mortgage portfolio, net loans and leases increased $201.8 million, or 7% (annualized), due to increases of $129.3 million in our consumer partnerships, primarily from Spring EQ (home equity loans), $70.7 million in commercial mortgage, and $24.3 million in commercial small business leases.

In line with our strategic plan, the C&I portfolio (including owner-occupied real estate) continued to be our largest portfolio at 37% of net loans and leases. Additionally, our total commercial loan portfolio continues to represent a majority of our lending portfolio at 79% of net loans and leases.

Net loans and leases at December 31, 2022 increased $3.9 billion when compared with December 31, 2021. The increase was primarily driven by the $3.5 billion of net loans and leases acquired in the combination with Bryn Mawr Trust.

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

Customer Deposits
(Dollars in millions)	December 31, 2022				September 30, 2022				December 31, 2021
Noninterest demand	$	5,739	36	%	$	6,171	37	%	$	4,565	35	%
Interest-bearing demand		3,347	21			3,462	21			2,793	21
Savings		2,162	13			2,266	14			1,971	15
Money market		3,731	23			3,740	22			2,906	22
Total core deposits		14,979	93			15,639	94			12,235	93
Customer time deposits		1,102	7			1,063	6			989	7
Total customer deposits	$	16,081	100	%	$	16,702	100	%	$	13,224	100	%

At December 31, 2022, total customer deposits decreased $621.0 million, or 4% (15% annualized), when compared with September 30, 2022. When excluding declines of $132.9 million in seasonally lower public funding deposits and $251.8 million in transactional trust deposits, deposits declined $236.3 million, or 2% (6% annualized), primarily driven by continued customer utilization of excess liquidity.

Customer deposits increased by $2.9 billion from December 31, 2021 primarily driven by the $4.1 billion of deposits acquired in the combination with Bryn Mawr Trust. This increase was primarily offset by the continued customer utilization of excess liquidity.

More than half of our customer deposits, or 54%, are from our Commercial, Small Business and Wealth Management customer relationships. The ratio of net loans and leases to customer deposits was 73% at December 31, 2022, reflecting continued capacity to fund future loan growth.

Core deposits were a strong 93% of total customer deposits, and no- and low-cost checking accounts represented a robust 57% of total customer deposits, at December 31, 2022. These core deposits predominantly represent longer-term, less price-sensitive customer relationships.

Net Interest Income

	Three Months Ending
(Dollars in millions)		December 31, 2022			September 30, 2022			December 31, 2021
Net interest income before purchase accretion		$	190.0		$	172.7		$	101.1
Purchase accounting accretion			3.8			4.1			6.5
Net interest income before PPP			193.9			176.8			107.6
PPP			—			—			0.6
Net interest income		$	193.9		$	176.8		$	108.2

Net interest margin before purchase accretion			4.40	%		3.90	%		2.90	%
Purchase accounting accretion			0.09			0.09			0.19
Net interest margin before PPP			4.49			3.99			3.09
PPP			—			—			0.01
Net interest margin			4.49	%		3.99	%		3.10	%

Net interest income increased $17.1 million, or 10% (not annualized), compared to 3Q 2022, primarily due to the benefits of our asset-sensitive balance sheet and loan growth. Net interest income increased $85.7 million, or 79%, compared to 4Q 2021, primarily due to a $49.0 million increase from the benefits of our asset-sensitive balance sheet and $39.9 million from the balance sheet size and mix due to the combination with Bryn Mawr Trust.

Net interest margin increased 50bps from 3Q 2022 due to impact from the benefits of our asset-sensitive balance sheet and loan growth. Net interest margin increased 139bps from 4Q 2021, primarily due to a favorable increase of 123bps from the benefits of our asset-sensitive balance sheet and 32bps from the balance sheet size and mix.

Credit Quality

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

(Dollars in millions)	December 31, 2022			September 30, 2022			December 31, 2021
Problem assets	$	462.1		$	472.9		$	386.2
Nonperforming assets		43.4			37.3			33.1
Delinquencies		61.2			69.3			46.1
Net charge-offs		7.7			3.2			2.3
Total net credit costs (recoveries) (r)		13.0			8.5			(8.2	)
Problem assets to total Tier 1 capital plus ACL		21.44	%		23.17	%		23.38	%
Classified assets to total Tier 1 capital plus ACL		14.29			15.14			15.95
Ratio of nonperforming assets to total assets		0.22			0.19			0.21
Ratio of nonperforming assets (excluding accruing TDRs) to total assets		0.12			0.10			0.12
Delinquencies to gross loans		0.51			0.59			0.58
Ratio of quarterly net charge-offs to average gross loans		0.26			0.11			0.12
Ratio of allowance for credit losses to total loans and leases (q)		1.17			1.14			1.19
Ratio of allowance for credit losses to nonaccruing loans		666			755			569

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⁽⁶⁾ decreased to $462.1 million at December 31, 2022 compared to $472.9 million at September 30, 2022, primarily from upgrades in commercial mortgage loans and our hotel sector. Total problem assets to total Tier 1 capital plus ACL was 21.44% at December 31, 2022, compared to 23.17% at September 30, 2022.

Delinquencies to gross loans decreased to 0.51% at December 31, 2022 compared to 0.59% at September 30, 2022, reflecting the resolution of elevated administrative delinquencies identified in the third quarter.

The ratio of nonperforming assets to total assets increased to 0.22% at December 31, 2022 compared to 0.19% at September 30, 2022. The ratio of nonperforming assets (excluding accruing TDRs) to total assets at December 31, 2022 was 0.12% compared to 0.10% at September 30, 2022. Net charge-offs for 4Q 2022 were $7.7 million, or 0.26% (annualized) of average gross loans, including a charge-off related to one service-based C&I relationship that experienced unique operating challenges during the year.

⁽⁶⁾ Total problem assets includes all criticized, classified, and nonperforming loans as well as other real estate owned (OREO).

Total net credit costs were $13.0 million in the quarter as compared to $8.5 million in 3Q 2022. The increase in credit costs was primarily due to $8.5 million from the continued weakening in the economic forecast and $4.8 million related to the mix of new loan originations. The ACL of $151.9 million as of December 31, 2022 increased $5.7 million from September 30, 2022, primarily due to the change in economic forecasts and loan growth, partially offset by upgrades to criticized and classified loans.

Core Fee Revenue

Core fee revenue (noninterest income) of $65.5 million increased $0.5 million, or 1% (not annualized), compared to 3Q 2022, primarily driven by $2.6 million at Cash Connect, driven by higher bailment revenue from variable rate pricing, $1.3 million in capital markets income, and$1.2 million in Wealth Management revenue, offset by decreases of $4.0 million in other banking fees, which included lower income from our equity investments and sales of SBA loans, and $0.7 million in mortgage banking fees.

Core fee revenue increased $19.5 million, or 42%, compared to 4Q 2021, primarily driven by a $13.4 million increase in Wealth Management revenue, of which $13.1 million was attributable to the combination with Bryn Mawr Trust. In addition, the year-over-year increase included $7.3 million in Cash Connect^® and $2.1 million in capital markets income. Partially offsetting the increase was a $3.8 million decline in mortgage banking fees primarily resulting from the decline in refinancing originations compared to the historically higher levels in 4Q 2021.

For 4Q 2022, core fee revenue was 25.2% of core net revenue compared to 26.8% in 3Q 2022 and 29.8% in 4Q 2021. Fees continue to be resilient and well-diversified among various sources, including traditional and other banking fees, mortgage banking, capital markets, Wealth Management, and Cash Connect^®.

Core Noninterest Expense⁽⁷⁾

Core noninterest expense of $132.2 million increased $1.8 million, or 1% (not annualized), compared to 3Q 2022, primarily from $2.7 million in professional fees related to Wealth customer-related tax services (offset in fee revenue), project implementations and legal costs. In addition, there were $1.8 million higher variable operating costs from Cash Connect^® driven by the rising interest rate environment. These increases were offset by $1.4 million lower loan workout and other credit costs and $1.1 million lower check fraud costs.

Core noninterest expense increased $33.5 million, or 34%, compared to 4Q 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 $17.2 million in salaries and benefits, $10.2 million of higher variable operating costs, including $4.0 million from Cash Connect^®.In addition, there were $2.1 million in higher professional fees and $1.3 million in intangibles amortization expense. Our core efficiency ratio was 50.8% in 4Q 2022, compared to 53.8% in 3Q 2022 and 63.9% in 4Q 2021, primarily due to the impact of higher net interest income.

Income Taxes

We recorded a $28.0 million income tax provision in 4Q 2022, compared to a $25.8 million income tax provision in 3Q 2022 and $15.5 million in 4Q 2021, driven by higher earnings.

The effective tax rate was 24.9% in 4Q 2022, compared to 26.0% in 3Q 2022 and 21.5% in 4Q 2021. The increase in effective tax rate for 4Q 2022 compared to 4Q 2021 was primarily due to the acquisition of Bryn Mawr Trust, including higher state taxes and other nondeductible costs.

⁽⁷⁾ As used in this press release, core noninterest expense is a non-GAAP financial measure. This non-GAAP financial measure excludes corporate development and restructuring expense. 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.

Capital Management

Capital levels remain strong and are all substantially in excess of the "well-capitalized" regulatory benchmarks at December 31, 2022 with WSFS Bank's Tier 1 leverage ratio of 10.29%, Common Equity Tier 1 capital ratio and Tier 1 capital ratio of 12.86%, and Total Risk-based capital ratio of 13.84%.

At December 31, 2022, WSFS' total stockholders' equity increased $101.5 million, or 5% (not annualized), during 4Q 2022. The increase was primarily due to quarterly earnings of $84.4 million and an improvement in accumulated other comprehensive income (AOCI) of $39.6 million from market-value increases on investment securities. These increases were partially offset by capital returns of $26.5 million to stockholders including $17.3 million from share repurchases and $9.2 million from quarterly dividends.

WSFS' tangible common equity⁽⁸⁾ increased $105.7 million, or 10% (not annualized) compared to September 30, 2022. WSFS' common equity to assets ratio was 11.07% at December 31, 2022, and our tangible common equity to tangible assets ratio⁽⁸⁾ increased by 58bps during the quarter to 6.31% primarily due to the reasons described above.

At December 31, 2022, book value per share was $35.79, an increase of $1.83, or 5% (not annualized), from September 30, 2022, and tangible common book value per share⁽⁸⁾ was $19.36, an increase of $1.81, or 10% (not annualized), from September 30, 2022 primarily due to the reasons described above.

During 4Q 2022, WSFS repurchased 361,980 shares of common stock for an aggregate of $17.3 million. As of December 31, 2022, WSFS has 6,588,771 shares, or approximately 11% of outstanding shares, remaining to repurchase under its current authorizations. For the year, total capital returned to stockholders through share repurchases and quarterly dividends was $229.9 million.

The Board of Directors approved a quarterly cash dividend of $0.15 per share of common stock. This dividend will be paid on February 17, 2023 to stockholders of record as of February 3, 2023.

⁽⁸⁾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, credit and deposit products to individual, corporate, and institutional clients through multiple integrated businesses.

Selected quarterly performance results and metrics are as follows:

(Dollars in millions)	December 31, 2022		September 30, 2022		December 31, 2021
Net interest income	$	18.7	$	15.1	$	4.7
Provision for (recovery of) credit losses		0.1		—		(0.3	)
Fee revenue		31.0		29.9		17.8
Noninterest expense⁽⁹⁾		23.6		24.2		(0.6	)
Pre-tax income		25.9		20.9		23.4
Performance Metrics
Trust revenue⁽¹⁰⁾	$	17.1	$	16.1	$	10.2
Wealth advisory revenue		12.8		12.6		4.2
AUM/AUA⁽¹¹⁾		64,517		61,393		34,568

Wealth Management reported pre-tax income of $25.9 million in 4Q 2022 compared to $20.9 million in 3Q 2022, and $23.4 million in 4Q 2021, which included $13.3 million attributable to a recovery from the previously disclosed Charter Oak legal settlement in 4Q 2021. The quarter-over-quarter increase was primarily attributable to net interest income growth in our Private Banking business and higher fee income in the Institutional Trust business. The year-over-year increase was mainly from the combination of Bryn Mawr Trust and the higher interest rate environment.

Fee revenue was $31.0 million in 4Q 2022, an increase of $1.1 million or 4% (not annualized), compared to 3Q 2022, and an increase of $13.2 million, or 74%, compared to 4Q 2021. The increase in fee revenue from the prior quarter was generated across The Bryn Mawr Trust Company of Delaware, Institutional Services, and the AUM-based private wealth management business.

Total noninterest expense⁽⁹⁾ was $23.6 million in 4Q 2022, compared to $24.2 million in 3Q 2022 and $12.7 million in 4Q 2021 (when excluding the one-time legal recovery in 4Q 2021 as described above). The year-over-year increase was primarily driven by the combination with Bryn Mawr Trust.

Net AUM of $7.6 billion at the end of 4Q 2022 increased $0.4 billion compared to 3Q 2022, and increased $5.0 billion compared to 4Q 2021. The quarter-over-quarter increase was primarily impacted by the rise in equity and fixed income markets. The year-over-year increase was due to the combination with Bryn Mawr Trust.

⁽⁹⁾ Includes intercompany allocation of expense and excludes provision for credit losses.

⁽¹⁰⁾Includes institutional and direct trust revenue.

⁽¹¹⁾ Represents Assets Under Management and Assets Under Administration.

Cash Connect^®

Cash Connect^® is a premier provider of ATM vault cash, smart safe and cash logistics services in the United States, servicing non-bank ATMs and retail safes nationwide and supports ATMs for WSFS Bank Customers with one of the largest branded ATM networks in our region.

Selected quarterly financial results and metrics are as follows:

(Dollars in millions)	December 31, 2022			September 30, 2022			December 31, 2021
Net revenue⁽¹²⁾	$	13.9		$	12.8		$	11.0
Noninterest expense⁽¹³⁾		12.7			10.8			8.6
Pre-tax income		1.2			2.0			2.4
Performance Metrics
Cash managed	$	1,717		$	1,706		$	1,691
Number of serviced non-bank ATMs and retail safes		33,820			34,285			33,699
Number of WSFS owned and branded ATMs		686			611			609
ROA		0.65	%		0.99	%		1.54	%

Cash Connect^® reported pre-tax income of $1.2 million for 4Q 2022, a decrease of $0.8 million, compared to 3Q 2022 and a decrease of $1.2 million compared to 4Q 2021, driven by increased operating costs associated with the rising interest rate environment and costs associated with the growth in the retail safe business. ROA of 0.65% in 4Q 2022 decreased 34bps from 3Q 2022 and decreased 89bps from 4Q 2021, primarily driven by the reasons described above. Ongoing balance sheet optimization resulting from a significant third-party funding conversion and other optimization efforts are expected to improve Net Income and ROA beginning in 1Q 2023.

Net revenue⁽¹²⁾ of $13.9 million in 4Q 2022 was up $1.0 million from 3Q 2022 and up $2.8 million from 4Q 2021 driven by the rising interest rate environment (offset by higher external funding expense) and higher year-over-year managed services volume.

Noninterest expense⁽¹³⁾ was $12.7 million in 4Q 2022, an increase of $1.8 million higher compared to 3Q 2022 and $4.0 million higher compared to 4Q 2021 driven by higher external funding expense.

At the end of 4Q 2022, Cash Connect^® had approximately $1.7 billion in cash managed with 19% year-over-year growth in retail safe units. Cash Connect^® continues 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.

⁽¹²⁾ Includes intercompany allocation of income and net interest income.

⁽¹³⁾ Includes intercompany allocation of expense.

Fourth Quarter 2022 Earnings Release Conference Call

Management will conduct a conference call to review 4Q 2022 results at 1:00 p.m. Eastern Time (ET) on Friday, January 27, 2023. Interested parties may access the conference call live on our Investor Relations website (www.investors.wsfsbank.com). For those who cannot access the live conference call, a replay will be accessible shortly after the event concludes through our Investor Relations website.

About WSFS Financial Corporation

WSFS Financial Corporation is a multibillion-dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally-headquartered bank and trust company in Delaware and the Greater Philadelphia region. As of December 31, 2022, WSFS Financial Corporation had $19.9 billion in assets on its balance sheet and $64.5 billion in assets under management and administration. WSFS operates from 119 offices, 92 of which are banking offices, located in Pennsylvania (61), Delaware (39), New Jersey (17), 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, Bryn Mawr Capital Management, LLC, Bryn Mawr Trust^®, The Bryn Mawr Trust Company of Delaware, Cash Connect^®, NewLane Finance^®, Powdermill^® Financial Solutions, WSFS Institutional Services^®, WSFS Mortgage^®, and WSFS Wealth^® Investments. 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 Statements

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 in financial markets, and particularly in the markets in which the Company operates and in which its loans are concentrated, including difficult and unfavorable conditions and trends related to housing markets, costs of living, unemployment levels, interest rates, supply chain issues, inflation, and the novel coronavirus ("COVID-19") pandemic, and related variant developments, vaccination efforts and emergency orders; possible additional loan losses and impairment of the collectability of loans; 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 potential expenses associated with complying with such regulations; and the effects of potential federal government shutdowns or delays; 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; 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 (SBA) portfolios and wealth management business following its recent acquisition of Bryn Mawr Bank Corporation (BMBC or 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 BMBC (the BMBC Merger); 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); additional credit, fraud and litigation risks associated with our PPP lending activities; 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 (MBS) 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; any compounding effects or unexpected interactions 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, the Company's Form 10-Q for the quarterly period ended June 30, 2022, the Company's Form 10-Q for the quarterly period ended September 30, 2022 and other documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. 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									Twelve months ended
(Dollars in thousands, except per share data)	December 31, 2022			September 30, 2022			December 31, 2021			December 31, 2022		December 31, 2021
Interest income:
Interest and fees on loans	$	181,644		$	152,887		$	92,291		$	582,754	$	393,248
Interest on mortgage-backed securities		27,778			28,338			18,645			106,606		55,802
Interest and dividends on investment securities		2,257			1,981			1,339			6,899		5,524
Other interest income		1,414			3,359			460			7,556		1,795
		213,093			186,565			112,735			703,815		456,369
Interest expense:
Interest on deposits		14,644			6,643			3,099			28,181		14,923
Interest on Federal Home Loan Bank advances		496			42			—			538		5
Interest on senior debt		2,307			2,061			1,089			8,246		6,497
Interest on trust preferred borrowings		1,336			951			317			3,482		1,274
Interest on other borrowings		424			37			6			478		21
		19,207			9,734			4,511			40,925		22,720
Net interest income		193,886			176,831			108,224			662,890		433,649
Provision for (recovery of) credit losses		13,396			7,454			(8,054	)		48,089		(117,087	)
Net interest income after provision for (recovery of) credit losses		180,490			169,377			116,278			614,801		550,736
Noninterest income:
Credit/debit card and ATM income		12,642			10,993			7,456			40,088		29,479
Investment management and fiduciary revenue		30,731			29,504			17,365			121,608		62,348
Deposit service charges		6,326			6,262			5,569			24,484		22,090
Mortgage banking activities, net		742			1,420			4,526			7,271		23,216
Loan and lease fee income		1,818			1,425			1,102			6,275		7,533
Securities gains, net		—			—			—			—		331
Unrealized (loss) gain on equity investment, net		(8	)		—			—			5,980		5,141
Realized loss on sale of equity investment, net		—			—			—			—		(706	)
Bank-owned life insurance income		1,130			195			—			1,804		1,251
Other income		11,499			12,852			10,009			52,624		34,797
		64,880			62,651			46,027			260,134		185,480
Noninterest expense:
Salaries, benefits and other compensation		72,492			72,294			55,277			283,905		214,167
Occupancy expense		10,492			9,699			8,109			40,885		32,802
Equipment expense		10,320			9,913			7,504			40,994		29,040
Data processing and operations expense		4,867			5,362			3,778			20,876		14,074
Professional fees		6,212			3,561			4,113			18,497		15,614
Marketing expense		2,245			2,082			1,655			7,230		5,413
FDIC expenses		1,699			1,540			895			6,098		4,081
Loss on debt extinguishment		—			—			—			—		1,087
Loan workout and other credit costs		(401	)		1,001			(101	)		702		663
Corporate development expense		1,070			1,248			4,989			42,749		11,676
Restructuring expense		(319	)		1,344			1,755			22,473		1,346
Recovery of legal settlement		—			—			(15,000	)		—		(15,000	)
Other operating expenses		24,226			24,873			17,445			89,917		63,553
		132,903			132,917			90,419			574,326		378,516
Income before taxes		112,467			99,111			71,886			300,609		357,700
Income tax provision		28,032			25,767			15,485			77,961		86,095
Net income		84,435			73,344			56,401			222,648		271,605
Less: Net (loss) income attributable to noncontrolling interest		(14	)		(38	)		114			273		163
Net income attributable to WSFS	$	84,449		$	73,382		$	56,287		$	222,375	$	271,442
Diluted earnings per share of common stock:	$	1.37		$	1.16		$	1.18		$	3.49	$	5.69
Weighted average shares of common stock outstanding for fully diluted EPS		61,801,612			63,227,983			47,783,049			63,658,611		47,703,243

See "Notes"

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

	Three months ended						Twelve months ended
	December 31, 2022		September 30, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Performance Ratios:
Return on average assets (a)	1.69	%	1.44	%	1.45	%	1.09	%	1.82	%
Return on average equity (a)	15.74		12.40		11.67		9.27		14.68
Return on average tangible common equity (a)(o)	31.12		22.78		16.96		16.88		21.56
Net interest margin (a)(b)	4.49		3.99		3.10		3.71		3.23
Efficiency ratio (c)	51.22		55.37		58.52		62.09		61.04
Noninterest income as a percentage of total net revenue (b)	25.01		26.10		29.79		28.12		29.91

See "Notes"

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

(Dollars in thousands)	December 31, 2022			September 30, 2022			December 31, 2021
*Assets:*
Cash and due from banks	$	332,961		$	443,104		$	1,046,992
Cash in non-owned ATMs		499,017			582,784			480,527
Investment securities, available-for-sale		4,093,060			4,153,615			5,205,311
Investment securities, held-to-maturity		1,111,619			1,121,895			90,642
Other investments		55,516			54,742			22,011
Net loans and leases (e)(f)(l)		11,802,977			11,620,866			7,904,831
Bank owned life insurance		101,935			101,061			33,099
Goodwill and intangibles		1,012,232			1,016,413			547,231
Other assets		905,438			890,907			446,683
Total assets	$	19,914,755		$	19,985,387		$	15,777,327
*Liabilities and Stockholders' Equity:*
Noninterest-bearing deposits	$	5,739,647		$	6,170,776		$	4,565,143
Interest-bearing deposits		10,341,331			10,531,250			8,659,257
Total customer deposits		16,080,978			16,702,026			13,224,400
Brokered deposits		122,591			23,182			15,662
Total deposits		16,203,569			16,725,208			13,240,062
Federal Home Loan Bank advances		350,000			—			—
Other borrowings		376,894			374,367			239,477
Other liabilities		782,406			784,981			360,772
Total liabilities		17,712,869			17,884,556			13,840,311
Stockholders' equity of WSFS		2,205,113			2,103,593			1,939,099
Noncontrolling interest		(3,227	)		(2,762	)		(2,083	)
Total stockholders' equity		2,201,886			2,100,831			1,937,016
Total liabilities and stockholders' equity	$	19,914,755		$	19,985,387		$	15,777,327
Capital Ratios:
Equity to asset ratio		11.07	%		10.53	%		12.29	%
Tangible common equity to tangible asset ratio (o)		6.31			5.73			9.14
Common equity Tier 1 capital (required: 4.5%; well capitalized: 6.5%) (g)		12.86			12.38			15.11
Tier 1 leverage (required: 4.00%; well-capitalized: 5.00%) (g)		10.29			9.76			10.44
Tier 1 risk-based capital (required: 6.00%; well-capitalized: 8.00%) (g)		12.86			12.38			15.11
Total risk-based capital (required: 8.00%; well-capitalized: 10.00%) (g)		13.84			13.34			15.91
Asset Quality Indicators:
Nonperforming assets:
Nonaccruing loans	$	22,802		$	19,369		$	16,609
Troubled debt restructuring (accruing)		19,737			17,108			14,204
Assets acquired through foreclosure		833			840			2,320
Total nonperforming assets	$	43,372		$	37,317		$	33,133
Past due loans (h)	$	16,535		$	24,754		$	9,991
Allowance for credit losses		151,871			146,205			94,511
Ratio of nonperforming assets to total assets		0.22	%		0.19	%		0.21	%
Ratio of nonperforming assets (excluding accruing TDRs) to total assets		0.12			0.10			0.12
Ratio of allowance for credit losses to total loans and leases (q)		1.17			1.14			1.19
Ratio of allowance for credit losses to nonaccruing loans		666			755			569
Ratio of quarterly net charge-offs to average gross loans (a)(e)(i)(n)		0.26			0.11			0.12
Ratio of year-to-date net charge-offs to average gross loans (a)(e)(i)(n)		0.15			0.11			0.21

See "Notes"

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

(Dollars in thousands)	Three months ended
	December 31, 2022							September 30, 2022							December 31, 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)	$	4,920,329		$	76,817	6.21	%	$	4,895,972		$	67,060	5.45	%	$	3,553,814		$	41,788	4.67	%
Commercial real estate loans (s)		4,334,772			66,428	6.08			4,262,599			53,096	4.94			2,698,138			28,057	4.13
Residential mortgage		762,967			8,610	4.51			769,151			8,379	4.36			563,995			8,683	6.16
Consumer loans		1,753,871			28,843	6.52			1,594,673			23,384	5.82			1,146,484			12,905	4.47
Loans held for sale		56,605			946	6.63			66,103			968	5.81			92,890			858	3.66
Total loans and leases		11,828,544			181,644	6.10			11,588,498			152,887	5.24			8,055,321			92,291	4.55
Mortgage-backed securities (d)		4,849,450			27,778	2.29			5,243,169			28,338	2.16			4,454,446			18,645	1.67
Investment securities (d)		377,610			2,257	2.85			361,113			1,981	2.57			312,633			1,339	1.92
Other interest-earning assets		145,668			1,414	3.85			460,124			3,359	2.90			1,061,494			460	0.17
Total interest-earning assets	$	17,201,272		$	213,093	4.93	%	$	17,652,904		$	186,565	4.21	%	$	13,883,894		$	112,735	3.23	%
Allowance for credit losses		(147,990	)						(143,943	)						(101,895	)
Cash and due from banks		253,031							242,734							142,316
Cash in non-owned ATMs		524,042							603,780							474,376
Bank owned life insurance		100,920							100,863							33,418
Other noninterest-earning assets		1,945,047							1,779,411							987,814
Total assets	$	19,876,322						$	20,235,749						$	15,419,923
*Liabilities and stockholders' equity:*
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand	$	3,356,188		$	3,740	0.44	%	$	3,370,158		$	2,179	0.26	%	$	2,789,693		$	540	0.08	%
Savings		2,232,665			459	0.08			2,287,227			185	0.03			1,964,042			148	0.03
Money market		3,769,013			8,473	0.89			3,833,113			2,907	0.30			2,762,843			783	0.11
Customer time deposits		1,016,827			1,800	0.70			1,083,290			1,230	0.45			1,020,589			1,467	0.57
Total interest-bearing customer deposits		10,374,693			14,472	0.55			10,573,788			6,501	0.24			8,537,167			2,938	0.14
Brokered deposits		23,389			172	2.92			24,184			142	2.33			22,730			161	2.81
Total interest-bearing deposits		10,398,082			14,644	0.56			10,597,972			6,643	0.25			8,559,897			3,099	0.14
Federal Home Loan Bank advances		45,967			496	4.28			4,979			42	3.35			11			—	—
Trust preferred borrowings		90,410			1,336	5.86			90,361			951	4.18			67,011			317	1.88
Senior debt		248,216			2,307	3.72			248,332			2,061	3.32			147,901			1,089	2.95
Other borrowed funds		78,755			424	2.14			39,745			37	0.37			21,962			6	0.09
Total interest-bearing liabilities	$	10,861,430		$	19,207	0.70	%	$	10,981,389		$	9,734	0.35	%	$	8,796,782		$	4,511	0.20	%
Noninterest-bearing demand deposits		6,108,618							6,319,755							4,388,537
Other noninterest-bearing liabilities		780,336							589,817							322,831
Stockholders' equity of WSFS		2,128,869							2,347,178							1,913,882
Noncontrolling interest		(2,931	)						(2,390	)						(2,109	)
Total liabilities and equity	$	19,876,322						$	20,235,749						$	15,419,923
Excess of interest-earning assets over interest-bearing liabilities	$	6,339,842						$	6,671,515						$	5,087,112
Net interest and dividend income				$	193,886						$	176,831						$	108,224
Interest rate spread						4.23	%						3.86	%						3.03	%
Net interest margin						4.49	%						3.99	%						3.10	%

See "Notes"

WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) (Unaudited)

(Dollars in thousands, except per share data)	Three months ended			Twelve months ended
Stock Information:	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Market price of common stock:
High	$50.67	$51.76	$56.08	$56.30	$56.08
Low	41.81	37.40	46.71	37.03	40.64
Close	45.34	46.46	50.12	45.34	50.12
Book value per share of common stock	35.79	33.96	40.73
Tangible common book value per share of common stock (o)	19.36	17.55	29.24
Number of shares of common stock outstanding (000s)	61,612	61,949	47,609

WSFS Reports 4Q 2022 EPS of $1.37 and ROA of 1.69%; Results Reflect NIM of 4.49%, Loan Growth, and Diversified Fee Revenue; Successful First Full-Year of Bryn Mawr Trust Combination