30
INVESTOR SUMMARY November 2007
INVESTOR SUMMARY
November 2007
2
Stockholders or others seeking information regarding the Company may call or write:
WSFS Financial Corporation
Investor Relations
500 Delaware Avenue
Wilmington, DE 19801
302-571-7264
Website
www.wsfsbank.com
Stephen A. Fowle
Chief Financial Officer
302-571-6833
Mark A. Turner
CEO and President
302-571-7160
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This report contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act, that involve risk and uncertainty. It should be noted that a variety of factors could cause actual results to differ materially from the anticipated results or other expectations expressed in the Company’s forward-looking statements. The risks and uncertainties include, but are not limited to, the growth of the economy, interest rate movements, timely development of technology enhancements for the Company’s products and operating systems, the impact of competitive products, services and pricing, customer-based requirements, Congressional legislation, regulations, operating risk, estimates and similar matters.
Readers of this report are cautioned not to place undue reliance on forward-looking statements which are subject to influence by the named risk factors and unanticipated future events. Actual results, accordingly, may differ materially from management expectations. WSFS Financial Corporation does not undertake and specifically disclaims any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
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– Focused strategy on attractive Delaware banking market; WSFS well positioned in Delaware market
– Implementing business model around Engaged Associates creating Customer Advocates
– Continuing high performance expectations– Aggressive manager of capital– Significant momentum in seizing market opportunities– Strong credit quality– Trading at a discount to peers based on price to earnings
How WSFS is Different
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– WSFS, celebrating its 175th anniversary, is one of the ten oldest banks(1)
in the U.S.
– 2nd largest independent bank in DE
– $3.1 billion in assets
– 29 branch offices(2)
– 27 in DE
– 2 in nearby PA(2) Branch offices in light blue are new or have been renovated in the past four years.
How WSFS is Different
(1) Continuously operating under the same name
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Retail– 29 branches
– $1.4 billion in customer deposits
– #4 in deposit market share
Commercial– $1.5 billion in commercial, commercial real estate and private banking loans
– #2 market share position based on an internal analysis of our market
Wealth Management
– Trust, advisory, asset management, retail brokerage, insurance, mutual funds, etc.
CashConnect
– Provides cash for non-bank owners of ATM’s - $168 million in outstandings
WSFS Business LinesHow WSFS is Different
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– In the middle of D.C., Baltimore, Philadelphia, New York corridor– One of only two states to receive straight “A’s” in 2007 from the
Corporation for Enterprise Development in its assessment of economic development
– Wilmington, Delaware ranks 5th on the list of ‘micro-cities’ with bright economic futures by Foreign Direct Investment magazine
– Attractive Economy and Demographics (latest available data)
6.4%8.9%Population Growth (2000-2006)
$46,071$52,214Median HH Income
4.7%3.0%Unemployment
3.0%4.6%GDP Growth
Nat’l. Avg.Delaware
Delaware: An Attractive MarketHow WSFS is Different
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Bank Asset Size Headquarters LocationsWachovia $754 billion Charlotte, NCCitizens $159 billion Providence, RI
/ScotlandPNC $131 billion Pittsburgh, PA Commerce $50 billion Cherry Hill, NJ Fulton (Delaware National) $15 billion Lancaster, PAWilmington Trust(1) $11 billion Wilmington, DE
WSFS $3 billion Wilmington, DE
Artisans $593 million Wilmington, DE
County Bank $333 million Rehoboth Beach, DE
FNB of Wyoming $298 million Wyoming, DE
Christiana Bank & Trust (2) $164 million Greenville, DE
(1) Revenue from the Regional Banking segment was approximately ½ of the Company’s total revenue for the year ended December 31, 2006(2) Pending merger announced with National Penn Bancshares. Inc located in Boyertown, PA
WSFS:Well Positioned in the Delaware Banking MarketHow WSFS is Different
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Engaged Associates
Customer Advocates
Shareholder Value
• Consistently ranked in the top quintile of all companies surveyed (1)
• WSFS has been recognized by The Wilmington “News Journal” as a “Best in the Business” company three years in a row
• Associate engagement drives stellar service to create customer advocacy
• Customer advocacy survey places WSFS above the 90th percentile, which is considered a world-class service level (1)
• On a scale of 1-5, 40% of WSFS customers gave us a “5” saying “I can’t imagine a world without WSFS” (1)
• Builds sustainable real profit growth
• Leads to increased shareholder value
(1) Completed by the Gallup Organization
WSFS Competes on Service and EngagementHow WSFS is Different
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– ROA of 1.5%
– ROE of 18%+
– EPS growth of at least 12%+ per year
Management Focused on Aggressive Long Term Financial Goals…
How WSFS is Different
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0.0%
0.5%
1.0%
1.5%
2003 2004 2005 2006 200710.0%
12.5%
15.0%
17.5%
2003 2004 2005 2006 2007
$2
$3
$4
$5
2003 2004 2005 2006
Return on Average Assets Return on Average Equity
Annual EPS
1.00%1.09%
10.60%
$2.58
1.10%
13.54%
(1) (1)
(1)
1.09% 15.38%
$4.05
(1) Proforma. Excludes one-time items listed on reconciliation between GAAP and Proforma, see Appendix 2.
1.02%
(2)
(2) Proforma. Excludes one-time items listed on reconciliation between GAAP and Proforma, see Appendix 3.
15.28%
(2)
$4.37
(2)
$3.39
(3) For the nine months ended September 30, 2007.
(3)
14.34%
(3)
CAGR = 19%
How WSFS is Different…And is making progress on many fronts…
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Cumulative Total Shareholder Return Compared with Performance of Selected Indexes (1)
September 30, 1997 through September 30, 2007
(1) All data from Bloomberg L.P.
How WSFS is DifferentShareholders have been rewarded
50
100
150
200
250
300
350
400
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
WSFS Financial CorporationDow Jones Total Market IndexNasdaq Bank Index
Dol
lars
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– Committed to returning capital to shareholders– Returned more than 70% of cumulative earnings
since 1996
– Strong preference for share repurchases– 513,600 shares purchased year-to-date through
September 30, 2007, or approximately 8% of outstanding common stock
– WSFS continues to be capitalized at levels in excess of regulatory requirements for “well capitalized” institutions
An aggressive and disciplined manager of capitalHow WSFS is Different
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$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2003 2004 2005 2006 2007
Commercial (CAGR 28%)Private Banking (CAGR 47%)
Commercial Real Estate (CAGR 17%)
Comm’l/Private Banking/CRE Loans Customer Deposits
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2003 2004 2005 2006 2007
Non-Int & Int DDA (CAGR 11%)
Money Market & Savings (CAGR 11%)
Sweeps (CAGR 26%)
Time (CAGR 22%)
CAGR = 24%
$1,547
$697
$935
$1,543
$922
$1,086
MillionsMillions
$1,135 $1,230$1,381 $1,422
Last 2 years CAGR = 19%
CAGR = 15%
Last 2 years CAGR = 14%
Building Premier Delaware Banking Franchise
(1) Information as of September 30, 2007.
(1)(1)
Strong growth in WSFS’ areas of focus
16
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2003 2004 2005 2006 2007
Net Loans
0%
20%
40%
60%
80%
100%
2003 2007
Composition of Assets
CashInvestments & MBS Other
Composition of Loans(2)
Comm Loans
Comm Real Estate
Res Mtg
Consumer Loans
Billions
$3.1
$2.2$2.5
$2.8
59%61%
62%
30%
25%
24%
8%
8% 7% 4%
6%
6%
22%35%
33%
20%
12%
29%
35%
14%
Percent
$3.0
67%
19%
8% 6%
(2) Excludes Businesses Held-For-Sale.(1) Information as of September 30, 2007.
(1)
8% 5%
17%
70%
(1)
Building Premier Delaware Banking FranchiseBuilding a higher octane balance sheet mix
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0.53%
0.14%0.12%
0.18%0.25%
0.08%0.04%
0.09%0.10%0.13%0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
2003 2004 2005 2006 2007
Nonperforming assets to total assets
Net charge-offs to average loans
Nonperforming Assets and Annualized Net Charge-offs
At September 30, 2007:
• ALLL to total gross loans is 1.32%, and ALLL to nonaccruing loans is 172%
• Less than $17.4 million ($8.9 million are seasoned more than 5 years) in subprime residential mortgages with a delinquency ratio of only 4.16%, which is less than one-third compared to market (3). Loss experience of 0.26% YTD 2007 or less than 0.4% over the last 3 years.
(1)
(1) Net charge-offs include deposit overdraft charge-offs starting in the second quarter of 2006.
(2)
(2) Nine months ended September 30, 2007.
Building Premier Delaware Banking FranchiseContinuing Strong Credit Culture and Credit Quality
(3) Based on the most recent available data.
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Building Premier Delaware Banking FranchiseActively manage portfolio for diversification
•Ahead of regulators limited overall CLD portfolio with both geographic & commercial/residential sublimits
29.5% 26.6%
8.8%
16.3%
18.7%
CLD Portfolio (1) - $250,986
CRE (1) - $284,736 C&I Mix (1) - $680,958
Mixed Use
Parking Lots
Residential 1-4 units
Flex
Shopping Centers
Residential 5+ units
Office
Retail
Hotels/Accommodations
9.0%0.5%
12.2%
11.6%
21.0%7.5%
14.8%
9.5%
6.5%
(1) As of June 30, 2007, in thousands
Manufacturing
Retail Trade
Construction
Accommodation Services
Health Care
Less than 5%
Professional Services
Wholesale Trade
Other Services
Finance & Insurance
23.6%
5.1%
11.0%
10.6% 10.9%
8.5%
5.9%
6.1%
9.4%
9.0%
Sussex
New Castle
Kent
Other States
Pennsylvania
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$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2003 2004 2005 2006 2007
Composition of Funding
Borrowings & Wholesale Deposits
Customer Deposits Equity
Billions
$3.1
$2.2$2.5
$2.8
40% 42%42%
45%
7% 6%
8%
8%
52%
$3.0
6%
47%
Customer Funding Growth
WSFSHigh Performance Peer Group$1 to $3 Billion Peer Group
(1) Information as of September 30, 2007.
(1)
Building Premier Delaware Banking Franchise
47%48%
52%
50%
Strong deposit growth replacing wholesale funding
90
100
110
120
130
4Q-05 1Q-06 2Q-06 3Q-06 4Q-06 1Q-07 2Q-07 3Q-07
(2)
(2) Quarterly average balances.
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– Retail branch expansion and renovation
– Deposit-specific relationship managers
– Realignment of incentives
– Remote deposit offering
– Continuation of successes– Free personal and business checking initiatives– Increase the deposit penetration of existing commercial
customers
Building Premier Delaware Banking FranchiseDeposit Growth
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$18.0
$18.5
$19.0
$19.5
$20.0
$20.5
$21.0
$21.5
3Q-06 4Q-06 1Q-07 2Q-07 3Q-07
2.90%
2.95%
3.00%
3.05%
3.10%
3.15%
3.20%
3.25%
3.30%
(1) Proforma. Excludes reverse mortgage income in the 3rd qtr 2006 of $154, 4th qtr 2006 of $450, 1st qtr 2007 of $1,359, 2nd qtr 2007 of $375 and 3rd qtr 2007 of $126.
Millions
(2)
$20.1
$19.5
$20.1
$21.1
(2) Proforma. Excludes one-time items listed on reconciliation between GAAP and Proforma, see Appendix 3.
Building Premier Delaware Banking Franchise
Net Interest Income/Margin
Net Interest Margin (As Reported) Net Interest Margin (Proforma)(1)
Efforts have helped to buck industry trends
$20.1
Net Interest Income (Ex Rev Mtg Inc) Reverse Mortgage Income
$19.4
$19.6$19.7 $19.7
$20.0
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$0.0
$10.0
$20.0
$30.0
$40.0
2003 2004 2005 2006 2006YTD
2007YTD
(1) Excludes securities gains & losses (see Appendix 2 for detail).
Millions
$34.3
$25.7
$31.7$35.3
(2)
$40.6
CAGR = 17%
(2) Proforma. Excludes one-time items listed on reconciliation between GAAP and Proforma, see Appendix 3.
CashConnect (CAGR 35%)
WSFS (CAGR 10%)
$31.2
(3) YTD as of September 30.
(3) (3)
Building Premier Delaware Banking Franchise
Noninterest income (1)
Last twelve months CAGR = 10%
Efforts to build fee income sources have also paid off
(4)
(4) Excludes gain on sale of credit card loans of $882
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$0.0
$25.0
$50.0
$75.0
2003 2004 2005 2006 2006YTD
2007YTD
Millions
$59.7
$49.4$55.7
$62.9
(1)
$69.4
CAGR = 12%
(1) Proforma. Excludes one-time items listed on reconciliation between GAAP and Proforma, see Appendix 3.
$50.8
(2) YTD as of September 30.
(2) (2)
Building Premier Delaware Banking Franchise
Noninterest expense
Last twelve months CAGR = 18%
However franchise growth also comes at a cost
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Building Premier Delaware Banking FranchiseInvesting in Growth – Year over Year Expense
New or renovated branches– 13 of 29 new or renovated in last 4 years
Headquarters move– The move into WSFS Bank Center ushers in a new era
Wealth Management– Provides wealth management and personal trust services
Loan Production Offices– 2 of 4 current LPO’s opened in last 12 months
Reverse Mortgage Unit– Formation in the 2nd half of 2006
Brand Campaign– “We Stand For Service”TM
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P/E Ratio (2007 est.) Price to Book
11.4 x
16.6 x
WSFS NASDAQ Bank Index
164%
147%
100%
125%
150%
175%
200%
- WSFS ratios calculated using: •Stock price at November 2, 2007; Book value as of September 30, 2007.
20x
15x
10x
5x
0x
- NASDAQ Bank Index ratios as reported from Bloomberg L.P.- WSFS’ $1-3 Billion Peer Group Price to Tangible Book value was 187.7% as of June 30, 2007.
Building Premier Delaware Banking FranchiseWSFS continues to trade at a discount
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– Focused strategy on attractive Delaware banking market; WSFS well positioned in Delaware market
– Implementing business model around Engaged Associates creating Customer Advocates
– Continuing high performance expectations– Aggressive manager of capital– Significant momentum in seizing market opportunities– Strong credit quality– Trading at a discount to peers based on price to earnings
Investment Considerations
Appendixes
$1-3 Billion “High Peer Performing”
Ratio WSFS Group(1) Peer Group(2)
Compound Annual Earnings per Share 14.96% 0.19% 4.17%Growth since 2003
Return on Average 1.00% 0.92% 1.23%Assets for 2007
Return on Average 14.34% 10.08% 15.04%Equity for 2007
Efficiency Ratio for 2007 61.38% 63.93% 53.03%
(1) Includes all publicly reporting banks and thrifts with assets between $1 and $3 billion with information readily available.(2) Includes a select group of similar sized high performing institutions with information readily available.
Measurements(Continuing Operations)
Appendix 1
Appendixes
GAAP to Proforma Reconciliation(In thousands)
As Reported ProformaThree months Trust Trust Three months
ended Year ended Preferred Preferred ended Year endedDecember 31, December 31, Charge Charge December 31, December 31,
2005 2005 (4th Qtr) (2nd Qtr) 2005 2005Net interest Income 18,536$ 73,642$ 615$ 1,113$ 19,151$ 75,370$ Provision 1,006 2,582 - - 1,006 2,582 Noninterest Income 9,499 34,653 - - 9,499 34,653 Noninterest Expense 16,154 62,877 - - 16,154 62,877 Minority Interest 11 133 - - 11 133 Taxes 3,771 14,847 215 385 3,986 15,447 Net Income 7,093$ 27,856$ 400$ 728$ 7,493$ 28,984$
Total Assets 2,656,204$ 2,656,204$ 2,656,204$ 2,656,204$ Interest Earning Assets 2,456,590 2,456,590 Equity 188,499 188,499 188,499 188,499 Average Shares 7,152,227 7,152,227 7,152,227 7,152,227
ROA 1.05% 0.01% 0.03% 1.09%ROE 14.78% 0.21% 0.39% 15.38%Net Interest Margin 3.06% 0.10% 3.16%EPS 3.89$ 0.06$ 0.10$ 4.05$
Securities (losses) gains for the years ended December 31 2006, 2005, 2004 and 2003 were ($1,981), ($605), $249, and $515,respectively.
Appendix 2
Appendixes
GAAP to Proforma Reconciliation(In thousands)
As Reported ProformaThree months Three months
ended Year ended Trust ended Year endedSeptember 30, December 31, BOLI Sale Preferred September 30, December 31,
2006 2006 Income of MBS Charge 2006 2006Net interest Income 19,120$ 77,899$ -$ -$ 411$ 19,531$ 78,310$ Provision 319 2,738 - - - 319 2,738 Noninterest Income 10,309 40,305 (1,688) 1,940 - 10,561 40,557 Noninterest Expense 17,587 69,314 80 - - 17,667 69,394 Minority Interest 9 51 - - - 9 51 Taxes 3,511 15,660 28 689 146 4,374 16,523 Net Income 8,003$ 30,441$ (1,796)$ 1,251$ 265$ 7,723$ 30,161$
Total Assets 2,956,372$ 2,956,372$ Interest Earning Assets 2,698,270 2,698,270 Equity 197,350 197,350 Average Shares 6,903,702 6,903,702
ROA 1.03% 1.02%ROE 15.42% 15.28%Net interest margin 2.88% 0.06% 2.94%EPS 4.41$ (0.26)$ 0.18$ 0.04$ 4.37$
Appendix 3
Appendixes
