WSFS - Earnings call transcript Q4 2021 | WSFS Financial Corporation

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Operator

00:04 Ladies and gentlemen, thank you for standing by, and welcome to WSFS Financial Corporation Fourth Quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] 00:32 I would now like to turn the conference over to your speaker for today, Dominic Canuso, Chief Financial Officer.

You may begin.

Dominic Canuso

[ph], time to call to [Wanda] for of today. you, the taking participate Thank and all thanks you XX:XX on our and Banking Officer; With Levenson, Rick Wright, Wealth call this Banking and Steve CEO; Officer. Retail President, Officer; Commercial me Chief Art Chief are Clark, Chief Bacci, on Chairman, Rodger with would we like XX:XX our read begin Before to remarks, I statement. safe harbor

may XX-Q, the expectations, XX:XX about as file differ plans read, are as or we pass by periodically will Form but today today's and risk and made view safe Securities management's documents in harbor the well discussion statement. With statements. results Rodger Levenson. our recent Actual on report and from Form our other with factors uncertainties, to XX-K include forward-looking Commission. materially our information annual to the results call prospects most historical those and the during these our to due that Our that All forward-looking including constitute future Exchange to subject call comments indicated over limited of will on quarterly indicated I not statements risks reports

Rodger Levenson

of of timing Thanks XXXX few XXXX. on unique important year XX:XX the of the combined the includes remarks, WSFS. Dominic provide XXXX the nature my full-year close for companies. a After Considering Mawr overview Bryn outlook, summary providing Trust January the detailed will Dominic. I was on X, a of a thoughts be the strategically will which

improving credit COVID-related reserves core In of earnings and full-year approximately a strong were share per XXXX. of conjunction economy, ROA build loss very the release experienced X.XX%. a million results of of financial the year we XXX XX:XX from in with with the Our $X.XX core

between future in of trust release Overall, prior XX:XX portfolio XXXX, of loans at in our XX% full-year our of the restructuring investor in drivers business expenses where the $XXX to mostly the the presentation, to positive fourth Next, Excluding financial related litigation or and our franchise metrics corporate which In XX:XX XX:XX in reductions part which continued problem important quarter, in customer from with non-interest and year stood improve Management consistent of fee-based from the First, detailed fund sheet positioned to pre-COVID are liquidity, of primary continues to levels. or businesses. all bearing. As Management is early the corporate large in note It non-performing continue while average PPNR small The growth consumer COVID. release, of quarter grow wealth recovery, were growth. was results leasing and commercial, year. deposits impact that settlement diversity and is ended our above and performance, plans of credit growth the impact continuing rates momentum almost reported investments. our underscore earnings Wealth million very to business, well excess Overall, the our sensitive end segments. the release and strength X.XX% with the to commercial and Connect with XX:XX combined XX:XX near its rising addition these its our deposit driven quarter both loan to at continue impacted reserve and balance had of development fourth core and core assets. to the the remains BMT metrics the by our we XX:XX Wealth significant strong, and reserve exceeding Also, for the are assets the at WSFS has and prior partnership our loan and Second, loan with the very asset net pipeline original Cash loan upstart XX:XX by XXXX charge-offs. exited customer liquidity, to in are ability fundings strongest in significant the performed end be NewLane quarter, history. occurred

we BMT end the year. right of after and Finally, the closed importantly,

significantly the said positioning business we XXXX at the it turn As model, to our enhances headquartered will Dominic investments, now XX:XX locally and wealth prior outlook. for the largest announcement, the Philadelphia Delaware management and franchise this on unique strengthens franchise combination our and competitive I region. builds as back bank in Greater

Dominic Canuso

successful I AUA and our on X We available on loan our organization proforma throughout for which over execute and the expectations our low anticipate year in This resulting historically are is XXX our providing funding reduction relationship Our our with the XXXX lenders, digits. combined lending from the mid-to-high rates significant XX:XX head remain year. will growth synergies the growth of small C&I, revenue to in in The presented are commercial rising Bryn from on achieve the strategy presence business, improve now. of growth our acquired a a $XX the partnership mid-single through liquidity section On primary given as commercial flat anticipated supported be NewLane, Relations expected payoffs, deposit synergies, lines with in X. $XX These cost. into are with is our rate lay from single and our our the levels estimates as combination in environment. and of banking, by across run-off opportunities XX:XX throughout ticket website, our is in Deposits all growth robust business; slides the Investor targeted XX:XX leasing rates Rodger. residential Mawr business X of supplemented loan the by in Net elevated Investor which CRE, and unique outlook mortgage the the cost our upstart performance double-digit our loan excess based With Trust. relatively combined presentation, of We XXXX private and walk generated small Slide in is to which outlook Thanks, consumer AUM. capitalize based rates digits, combined off and in to XX:XX year-end excluding assume out launch billion and across markets, XXXX, we billion our recent portfolios. includes growth expected XX:XX portfolio, product. XX:XX assets we while

of the in the macro loan the An excluding levels methodically phasing Our interest cash efficiency markets talent, fee a in these metrics is XXs Excluding over XX years, our the beginning ratio to deploy the attributable legacy initiative, nature basis in past million low impact continues elevated we This with income growth from the the subject revenue XXXX. along mentioned, point to is Provision economic driven net track Bryn margin negative to of are BMT. are conversion capital the to from in basis driven the is the in expectations bank and Durbin expected with the loan mid-to-high reinvestment exceed point assume accounting transformation strong a three the rates and at XX:XX year, are X.XX% revenue XX a achieved a growth ratio with synergies our wealth, XX:XX liquidity connect, XXX% digits, XX:XX by meaningful results core Consistent stable to is XX of particularly benefit BMT and the increases year Full environment. Mawr’s accretion access supported in single if to of by growth liquidity synergies net range. mid-to-high assumes assumed XX:XX the assumptions or somewhat including impacts, liquidity. credit basis and higher loan and XX% to generating throughout between current savings in mid-XXs. growth the maintaining in excess of environment growth, costs investment future continued of on XXXX. the and by in XX:XX loss overdraft double-digit expansion the the net PPP in reduction into strategy fees, outlook. unpredictable late the X deposit XX trust Fee yield two $XX portfolio BMT’s excess shorter impact fee be interchange delivery income basis are the and providing to with on continued which initial meet target and at digit low ample income, XQ. outlook ACL impact portfolio, of assumed grow liquidity anticipated XX:XX we the savings of cost points platform, identified interest liquidity our each. mid-single-digits, XX:XX costs our single We continue point expected targeted or rate of cost growth rising and earnings, from point while purchase investment XX:XX $XX with environment, growth expected margin basis fee to previously by duration through significant for BMT our excess persists. With X.XX% interest Our driven in by rate and cost Provision XXXX. early to annual in million, NIM

ROA And to are driven high-XXs. XX%. improvement the our X.XX%, have. the be year expected previously open synergies Based be is expected is performance and and ratio around year, XXXX, XX:XX our may cost XQ We you line realized, strategic mentioned, on XQ the around by momentum questions X.XX%. consistent for answer As any to XX:XX ROA rate anticipated efficiency in to opportunities, would now will be tax performance the expected the around with a throughout and with

Operator

the with & first question Thank Our comes Scattergood. line you. from Zwick Instructions] XX:XX of [Operator Erik Boenning

line Your open. is

Erik Zwick

Good XX:XX afternoon, everyone. Thanks.

Dominic Canuso

XX:XX Hey, Erik.

Erik Zwick

a rate year, rate obviously first three funds if Wondering the for start could you're assuming mentioned year. I throughout interest within you your assumptions sensitivity, fed increases with the XX:XX

what that assuming how far will the in beta now what deposit curious in using with you're sensitivity kind world just and similar you you you're Bryn of asset real the model? that to if as changed Mawr have additionally, model, betas cycle be assumptions and in – are transaction curious the think is may Just closed with as

Dominic Canuso

Sure. XX:XX Thanks, Erik.

of as on XX Slide sensitive, asset are we So, presentation. out investor our laid

is I'd buck] our year-end total is that [ph] [ph] of However, Currently, risk] the that about loans. [variable [legacy caveat at XX/XX. XX%

X be basis basis first we would The increase extremely have XX The approximately in With given that to anticipate experience XX is and rate assumed we point interest increase. of high-XX, NIM deposit impact year to so impact to after [ph] with a betas the this a assumed sensitivity. month X that asset rates typically low an close the are increases rate on there's in three exit [deposit the interest points. in close X BMT, XX:XX the of lag about rate] month

Erik Zwick

reduction mentioned then of Thanks. the great. loan curious throughout the the some down and slowdown expectations your just loan towards seeing for payoff in within mentioned levels rates That's that you in turning year, already in you year some point? are increases or with this about you've that And at in the XX:XX slide, confidence confidence seen pay growth occurring

Steve Clark

XX:XX Erik, is Clark. this Steve

is experienced have locked this So, we've behind our of in rates we this of with found the some past year Many threat rates. will past a believe environment, payoffs borrowers increasing of the us. quarter view permanent be with rising have our this the and that CRE rate and market

So, activity during years. than our forecast prior less payoff is XXXX

Erik Zwick

XX:XX me, just residential within excluding the loans, mortgage about last you there. for the portfolio. clarification XXXX the Got the growth, to it. outlook, the Thanks single-digit one talk mid-to-high for And sticking

flat, to keep the or guys regard decline just the what residential expectations So, you do are with portfolio your you or will mortgage throughout think there? aiming year curious it are

Dominic Canuso

XX:XX environment interest rate the with to again. commensurate refinance and Dominic We run-off that expect is Sure. This the would conditions.

to could additional Erik, with he with expected to X% about If of headwind questions. XX:XX we what disconnected. So, are net it you there? run-off is got Wanda, impact our Sorry, and still a rate. X.X% – growth maybe continue

Rodger Levenson

[Technical happened. XX:XX This if of be just not of for shortly. you connect and Levenson, sure we're still the those you Difficulty] connecting Rodger We'll with – what trying on call, operator, are is the

Operator

Frank Sandler. next XX:XX our Piper question comes from from And Schiraldi

Your now open. line is

Frank Schiraldi

implies modeling purchases the securities XXXX? – XX:XX increases for Just securities book in curious what assumes for on the

Dominic Canuso

the Dominic. This that the rate with Sure, year. recent increase is The of in would XX expansion Frank. that high XXXs been and and XX:XX we've acquiring interest X we is anticipate to

purchased they However, higher at comparable runoff to investments rate that be a as environment. rate were legacy the interest could

XXX year the we portfolio, So, where to future. on the do continue about landed anticipate that for we yield foreseeable

Frank Schiraldi

terms in of the year? And over XX:XX Okay. size, [indiscernible]

Dominic Canuso

grow XX:XX we about Yes, to ended it would the X% where from expect year. we

macro-economic would XXX of deployment. incremental [liquidity] a current purchases of [ph] million So, couple we more complete of as function our excess environment. remaining the a be Any liquidity round

Frank Schiraldi

equity single that XX:XX now sell-off it's side, a mid the of high Got on do you terms the actively recent and digits, you. And of growth, factor the a think into in managed does how factoring to that then management guide we more about in have I portfolio? then wealth think that an especially markets

Art Bacci

the XX:XX Hey, Thanks Bacci. Frank question. this for is Art

Let by at our have driven that I'm come corporate higher me our have AUM and have is then mean, sources of our just trust our We still I really – look One stepping expecting base as three and directed business, in fee fees. fees some tends base from transaction single-digit account our area we fees back to second, base trust. of you growth XX:XX but business income. if core wealth more

in there lot look the quarter. declined positions in the saw fees XXXX, in saw XX% was So, QX. the at XX% we XX% as it trading of XX:XX you was if assignment those this third some volatility, quarter we serve fourth about and that for yield a by increase QX. And increase in deals in of a agent we And assignment high

So, it's very volatile.

you still at we're growth activity, looking when kind wealth that in business. strip digit core single our transaction So, out of high

Frank Schiraldi

And in at moves market know the XX:XX what don't does then impactful to – at least does markets? managed the just January that, I in that look portfolio? Okay. happened actively how are the

Art Bacci

revenue quarter me going being combined about about] X% [ph] so XX:XX We all AUM to [WSFS BMT that indicate else would was [indiscernible] really to and QX. growth, our a equal X%, do up was about fourth a

in expect negative X% XXXX, volatility year. quarter still we We have fourth probably be be will this The markets, assumption X% the be doesn't that year. positive now, our first XX:XX modeled of right portfolios up an we to saw we half market to for of seeing mean the that the XXXX, expected, this it the in saw would you're that's the full-year and returns but it

Frank Schiraldi

And okay. is play consumer it and you then double-digit I XX:XX majority could, Upstart growth? what does growth, the Sure, just yields average And getting sort yields, terms that are of out of if there? how much in the lastly, into of

Rick Wright

This is Wright. Rick XX:XX

just to grow Upstart say the side, starting I'd On we're that.

lot effort growth. it's on the of the and say of for been in We're doing front-end the Although a fairly credit still would lines areas, headwinds. that, but production downs, EQ that account are a of I together the Upstart that substantial will pay Spring amount runoff, significant a use other the

So, of is, the Spring basic and The answers on Upstart mid-X the XX:XX is it. will lot in be yield Upstart. a

Frank Schiraldi

XX:XX Got you.

Dominic Canuso

that's to on XX%. XX% The just Frank, XX:XX bottom line clarify, NIM. to a products those are gross yield

Frank Schiraldi

I'm XX:XX sorry.

to loan yield the So, XX% XX%? is

Dominic Canuso

XX:XX Correct.

Frank Schiraldi

not [Technical opposed XX:XX that's obviously, EQ, Okay. Upstart as Spring Difficulty] Upstart yields? that's

Dominic Canuso

Correct. XX:XX

Frank Schiraldi

you. Thank Okay. XX:XX

Operator

you. Thank XX:XX

Our question comes line next with Michael the KBW. of from Perito

sir. open is line Your

Michael Perito

Can me? Hello. guys XX:XX you hear

Dominic Canuso

got we you Yeah, XX:XX Mike.

Michael Perito

just on Sorry. market retention commentary now transaction also X, the and around, customer think you kind questions. could the employee hiring XX:XX kind what and I generally my Number of nice on a just if like, which I of that Rodger, some line provide had top places I Thanks looks taking closed, is was some momentum Greater pipe key have just for you transaction. on, couple with and leading the that guys to on into that, I of something Philadelphia speaking, Bryn Mawr side, touch the curious want updated

Dominic Canuso

Mike. question the for thanks Yes, XX:XX

of in as when really all few that been things and customer we're you up haven't particularly I all businesses. on the than I'd that any point for informally a commercial combination and Mawr I'd filled] isn't it's and in I think really, reason. and a And I say really heat bank ads, up kind whatever this – past conversations the wealth seen left. at we manageable the happy cycling XX:XX future only to They've folks time through think others again. be commercial, year, Bryn will as particularly XX:XX now. the all to into consumer, bonus having on more you going already of the go There's landing those wealth the degree been like RMS well. are out say, customer looking have side, a to folks, terms on attrition [ph], been [commercial a both we And kind side OEMs] number get spot, in said, have very positions the and facing somebody it's who's at informal when of announcement, makes happening think expected that particularly [ph]. [back larger and a made us And attractive for we of any

extent talent we'll we've that have. look it we bringing to over additive the can invest already what So, in to to continue to think be

Michael Perito

Great. you. now XX:XX about at you Slide kind your of question, the then, put a see guys unfolding. looking of just the Thank guys kind the I Mawr And deck know some strategic in guess, of of mix curious was do in how you partnerships. part fold, you one, And Bryn business with the XX two the I number

there some loan I think to your WSFS beneficial book and after legacy were the remixing where was as contribution well. obviously beneficial fee closer around took deal, the back conversations down

color of done kind give curious Mawr, business term, the this know, go? broader terms more I guys there? this developing a you as that of slide is are not look at secondarily than see here, years? kind there to this of at point, at of the some kind outlook lines? this, looking stuff strategic – along You does that for you near Would over of is pipeline just partnership can how mean, at this where your love but kind these also mix much, just the you of of Bryn in so And we next if then, handful

Rodger Levenson

jump the anybody then start I'll can So, and team from in. else XX:XX

the starting piece with circling and last of kind back. Just

you will for think our time think just a chart folks continue that that is it serving are I of really I the starting I been an still partnerships So, just that if and can results their model, in to stages, part that, of XX:XX although those of what early are number front, out. our important with history connecting and you business company play remind to cred.ai, on on things, would a has our for recent see have entrepreneurial long example, us platform. There's additive long a customers imminent very nothing launch to of Mike and be

that So, of be to part a I continue big will business. think our

you're think – side, will XX:XX think what to I particularly still much the of part obviously commercial the overall think how there's revenue consumer business wealth our see partnerships opportunity bigger our going on think continue a I of forward. to going XX% be of a is, in fee-based almost And part Upstart like We in will our we I serve business mix, significant a of terms becomes the tremendous customers. space. to

growth With be clearly the as I don't I will being vehicles. primary wealth the dramatic but we well. consumer lift and think model partnerships there, commercial the So, think to part the have our opportunity an continue XX:XX shift in from mix, the business bank of and with important growth I a business it's a see

Michael Perito

any side? there so deposit] [ph] related XX:XX Thanks. far anything That’s helpful, material them Is loss-wise for to the bank being [fee on approved charter with Rodger. loss,

Rodger Levenson

equity actually totally And of we earlier that we're stake sold relationship. Now, XXXX. in XX:XX our out

point. at this So, there's the to impact [indiscernible] no partnership financial

Michael Perito

you then Thanks. where, you ratio as just first shook be know give you'd if can for pro me you when relative color and additional resume in thoughts of some you said out buybacks, would great? forma expected general And lastly capital just XX:XX release, Got you closed guys the but plan there the to a on buyback, just comment and the what on just it. us guys the any curious

Dominic Canuso

to information our XX:XX regard closed meaningfully provide at X is the not quarter proforma Dominic. but information on time, first announcement favorable with regulatory X transaction you This this How will close the Day fully the are obviously to in We point Sure. capital and does marks, books and applications. Day with significant doing? have along the

a we capital be So, highly to excess continue position.

that core we've we As minimum materials, share our regardless stated is depending the and the we IRR return to that and around XXXX stock of before, repurchases. repurchases. of the with through with then last in routine regardless XX% XX:XX capital us, upon be a would XXXXand price so anticipate $XX we then share did share the resume incremental both philosophy dependent of we ahead is the repurchases of would note XX:XX share do between we pause early at which price stock those that, transaction share closure earnings achieve the price repurchases repurchases, relatively stated BMT, annual incremental BMT As dividend equally to the I announcement year have price. and and million and of would on the to

Michael Perito

helpful. Than you, XX:XX Got it. you. guys. very That Thank is

Dominic Canuso

XX:XX Thanks Mike.

Operator

XX:XX Thank you.

Our next question comes Gunther of line from with Davidson. D.A. Russell the

Your line open. is

Russell Gunther

good guys. afternoon Hey, XX:XX

Rodger Levenson

Hey, Russell. XX:XX

Russell Gunther

starting follow-up ads in a or Just quick as are XX:XX all that that markets happen, to guys would the strategy that line the earlier, you in or there are adjacent to seasonally well? footprint at questioning employ new on look target recruitment of is RM

Rodger Levenson

Rodger. XX:XX Hey, Russell, it's

adjacent standpoint. focuses geographic and very We opportunity conversations really a footprints region, So, is nearby the had primary it's you primarily from the business large, which geography both know geographies, in count in our we've on with some and we've folks consider as footprint. in about some is but really the would market talked

Russell Gunther

opportunities. plenty There’s of Yes. XX:XX Understood.

Rodger. fees. reduction Okay. fees, the Thank mentioned you guide you, then overdraft to back guys And on in

just planned revenue provide terms curious and there of could you any color at thought? if additional potential additional what's So, risk? Any in

Rick Wright

reduction overdraft with is like for of latest that and several talking we've we're significant the incremental to in a further last Rick not XX:XX you customer friendly over as make would decisions gone I Yeah, years, And little more point, say move. made this revenue we've this us that this would along. I is that really at tell a dollars the again. million amount Wright odd

delivery you. immaterial then it's at helpful. to The could about guys. to on continue the stands transformation Very but give how terms where of And any last you XXXX and an base question investments, on update and we'll you for for of So, the it, continued just expense beyond? side that guidance revenue. fee us very in the impacts our the is talks that Thank me just really Thank XX:XX color things. look expense

Dominic Canuso

XX:XX Sure Russell, this Dominic.

systems those we XXXX little continue transformation as and account create is online XXXX] throughout can flexibility a to approach prior on and provide on We much we'll Slide our million initiatives year. we going just to bring to our both improved and holistic [ph], the platform along do analytics. includes year. and service, and reduction in to omni-channel communicated into across in primarily as very to stacks lenders enhancements where recent XX:XX opening a operational next out a slight the efficiencies net delivery experience roll-out capabilities new So, customer, [mentioned minutes, outside with about, our in the and that office open where from some investment provides information XX:XX our approach most XX] on all a core our on have focused also that XX.X talked launching partnerships our data our account we've we'll the one-witnessed year an as continue ensure focus a in CRM Next the gen serving but up rolling and we which by to step-up in of of our sales products deposit an launch we technology also services [into which – to organization force X online timing [ph], experience, offer back to in be sales significant from next currently customer processes, increase

Russell Gunther

Thank really That's Dominic. helpful XX:XX you.

you past Just this one we the of million quick bulk year follow-up, what then think $XX you that behind of after sort is planned? of terms of couple this to forward should or something is million in going $XX years about guys the have investment over

Rodger Levenson

in it's jump So, I’ll XX:XX Rodger. Russell,

hard So, I think it's to predict.

on the forecast need I this going but amount is. our the to certain current be see we out to a current think is, going based there's to of what assessment we're of to what beyond ongoing, and for customers landscape something year have that's our

year, at whole say, I hard I an do one added also levels, process. for over point. So, inflection years. investments We've but point project. that been at forecast we're this these now we would tremendous this talent a kind particular to it's think kind about any in We've amount on of talking of three it's, and are XX:XX made

today, more have I to on to this that As applications we're partnerships and that about a at from of And continue facing of where of when just in working invest our our continue company, year we're some showing of and very evaluate how we where in those dollars want other is moving that some Dominic mentioned, that customer if things. think be different particularly size the we'll we will think the and but that will to you we're focus, started wealth business drive to the project expansion forward. in the

Russell Gunther

That's I Understood. appreciate for it really me. XX:XX guys.

Dominic Canuso

you. XX:XX Thank

Operator

Thank XX:XX you.

line the Partners. Bishop David of Research question next from Seaport comes with Our

open. line Your is

David Bishop

down Good maybe of but Dominic – security just asked remind the Yeah. would most view close Thanks. balance pay questions or exiting your repositioning my XX:XX afternoon, of a and for year? of liquidity sheet more have to answered, us maybe of cash these been or transaction borrowings sort excess those and and maybe restructurings, with

Dominic Canuso

XX:XX Sure.

did all the of deposits We deposit ratio excess BMT because ratio a bring with across the XX. of of business. we believe directional deposit ended to deposit liquidity our as low. our, First, that loan in kind I'll strong the with significantly off loan XX% of customer year was a start more loan and really

outlook So, combining the sheet that to the on we've net those margin, impact naturally lessens balance excess liquidity our that given overall just interest that provided.

to restructuring with commensurate the are investment was be the anticipation close in our strategy. Much of on in portfolio that their executed first. XX:XX We actually of fourth quarter the

preferreds] rates [trust the at Throughout in combination where of the and balance call that some is of consistent would are included we that ending relatively interest that [ph] that that to would will higher net the be margin is we likely communicated sheet it'll there with provided. an we continue improved would support land. activity the primarily our time that margin and outlook XXXX, we've that sub-debt So, some evaluate interest

David Bishop

Okay, uses, update [ph]? [Technical if don't XX:XX quarter have [whether now] you in this but slide deck, this I And last great. I the an [indiscernible] that’s versus if curious missed C&I just helpful Difficulty] know apologize I Thanks.

Steve Clark

David, XX:XX Steve Clark, again.

commercial saw of XX% the the quarter. in So, the up an quarter from in utilization quarter we actually to in credit picked line third from fourth uptick fourth XX.X%

million So, in historical that which hopeful the back $XX will low-XXs had meant mid-XXs And we're continue runs balances. norms, trend a that to our the as to off, utilization been liquidity in percent. rate to as about

David Bishop

Great. Thank you. XX:XX

Operator

Thank XX:XX you.

the next from line Brody with of Our question comes Inc. Preston Stephens

open. Your is line

Brody Preston

good afternoon Hi, everyone. XX:XX

Dominic Canuso

Brody. Hey, XX:XX

Brody Preston

quickly. XX:XX So, got a try questions. handful of get I've them to through I'll

to put guess, front, guys the results I kind I I'll on questions know trading of lot like buyback but a to every capital at the You if in commitment me, the return is you at a of you level back where year, at are you in just a great more of info know, way. try I from similar maybe now. all deck, XXXX, were which different least look but XX%

favorable average [indiscernible] a than XXXX and in XXXX, now forward the and and as throughout then today of for where on to pretty bought liquidity X% similar you you back the bank they of know, more were in capital the year. back are You throughout position you're shares outlooks were

look to approach And at thought XXXX, and taking perspective, is IRR profitability that back did where be a so, unfair of in stock process terms a it closed? you is the look at would Mawr say, in bank, I would Bryn the the what least the open trading, just of you to at if as is be similar now

Rodger Levenson

XX:XX again. Yeah. Rodger This is

the where on driven IRR, a key time but you, we to non-routine the disciplined very EPS, favorable, XX% for is hit on that with book all target price amount remind in of on XXXX, of been that the price EPS in that. quarter XX:XX that of that the back Just accretion we in by and and period the calculation that Brody, driven these IRR we offset it XXXX, fourth terms in quarter. long an that model on the by very moved and was we've was share a value that dilution have you bought why is obviously, the tangible points, stock and we increase our buybacks quickly of

at getting but attractive we're with for at being think price, it fully point valued. you share can point levels still close this us, I we're are which see, at as to the fairly this

and monitor to more out. I have that just being waiting the how that we'll and by learned move and works or changing see as to is I model IRR that and yourself XX:XX for inputs so, a plays that not said, we things, quickly some convincing the think other disciplined from And it of time bad have strategy.

will at or be our XX% going the we're makes model better, extent aggressive. direction very that to we favorable to and stick to the with So, that a moves market

Brody Preston

at off Maybe just of on it to that are XX:XX Do of hikes Understood. that. for quick, the loans to [ph]. lower that many take put you saw for real XXX I XXX [floors] portfolio, come the million happen Thank you know loan variable how levels? the you would

Dominic Canuso

book. XX:XX this involved Hey with increases about X blended on because rate the X of to Dominic. rate is average It's that's Brody,

So, start X year. seen increases the have benefit portion, the towards for we rate half of to latter the that

Brody Preston

in a gained what guess, economics that then Got XX:XX color Thank terms relationship good work in put and more talking that some of where it. all you've started so, for more business. ABS you transactional little I And And you share you about like I'm earlier? in bit that does nature market, I noticed market of that the generation, first that is terms How is fee about the with you're in of curious the that. Upstart?

Art Bacci

the markets every call this global XX:XX the more That's of of [RMBS] and corporate trust, more as loans relationship – Art to in can administrative disciplined [Multiple [indiscernible] just last to account that we're have What Speakers]. And a the Upstart, all if we down trust really debt earn per really to serving trustee us. purchases business re-financings capital side, Bacci. new markets we that business trust been XX:XX number about no margins some just some slow Our agent. market growth get So, home we introduced like and XX%, fee I on the XX:XX Brody, the just we we stress tend go growing securitizations, the The where up we be on we us. development we're not well hopefully industry business. year some think a really were way and catch with to before growth in talk the And our of do business is to trust bank there year, profitability where pretty is business share two The we've transaction gain. has we fees. for yeah, that. a our cases. can [ph], components. new with about deals who's namely very a really been for a offset with to business, XX:XX still truly that's the corporate And core it's consumer that three. as honestly, better even and as the in rapid relationships corporate if and attractive securitization, person We long brought It's

Brody Preston

Got XX:XX it.

you at business, X.XX] the real willing one at [mid-FICO kind – to least be banks box Upstart commentary credit keeps you on just quick. the what are to, [ph]. yields, I Okay. in it two Maybe it's for the just securitization sense on Dominic. them a at know, a of the go other [indiscernible] whereas you they XXX, for relationship, know for three partner all other will down of the want Appreciate got get

sense the your to like. [X.XX] for get assuming wanted So, I'm box you it's just to that a given closer credit looks mentioned? yield the what just [ph]

Rick Wright

this Rick go ahead, – XX:XX Go Yes. ahead. is Dominic. This

Dominic Canuso

just XX:XX Rick. to thanks, sorry, Sure. wanted – I

to Upstart geography the underwriting reason our and volume strategy, Just clarify, our we levers. of our be selected overlay wanted to able was to part

the and with plus bit their we've XXX, but primarily little minus quality what below [ph]. to the would FICO So, or go underwriting generating date, scores of underline do proprietary that, and we So [[near ourselves what on these prime] models. north is about commensurate far been or the a XX:XX using customers average this

Brody Preston

XX:XX Thank you.

Rick Wright

color quick XX:XX Yeah, give I at would that. just real

put track have different that Dominic them to is just on record platform We about, marketing footprint. our customers at that. FICOs the to a better all the in all talked they And Those and of are while performing those have picked automated expect because them. better we're it and marketing do on market than in all we ones focused we're

see as we us. So, this for a opportunity real

Brody Preston

XX:XX Got it.

get be you May, a to know expect in I'm loans you then faster And just and as shifting well the some if if smaller sure ends and LendKey million going in have? that those expect with offsets from it XXX off I you Okay. at gears Would refi guess, forward? of maybe kind but for moratorium, would you extended, it's student it doesn't beneficial pace a run will that when the portfolio, portion, run-off to there's positive the I here, that

Dominic Canuso

certainly don't [traded long move see on XX:XX kind time, We beneficial that changing that our the to to that but normal of magnitude loan dramatically really It's hard needle for [ph] the would and tell, has at] for nothing Brody, a portfolio amortization. portfolio.

Brody Preston

it. gone analysis of of Got help all point? could kind [indiscernible] runoff the the you from you runoff, Mawr And size then loans if have so, portfolio ring a for the added? XX:XX similar the for this BMTC through fence Bryn And at us

Dominic Canuso

XX:XX Yeah.

say would they runoff runoff to mortgage really Bryn those the There's as where XX:XX their that level. So, a of the small a really will it's in So level materials, were the and only in just evolution down because beneficial can high portfolio and beneficial Their Mawr. from the portfolios the Brody. very be I runoff was commercial as very outlined resi-mortgage. book different you very, see residential just at student we've of essentially completed from

is So home with be said, and Bryn by resi-mortgage rate very with what's the the new with we’ll be that. the obviously and things those of portfolio, portfolios sales Dominic them, environment, the going like refi will dependent will Mawr upon that balanced come activity that attrition part counter on of as over and

Brody Preston

XX:XX drove the yields, Got And it. ex-PPP, the core there PAA, last specific that? to anything one then loan quarter, wanted higher ask this was me, so, I and inflected for that

Dominic Canuso

of XX:XX No, by the liquidity. continued really a of driven excess combination it's deployment

funds payoff Some in some down. loan tick by and coming improvement, loan however then slight supported that fees was of down cost a our

all really split three was it So, drivers. across

Brody Preston

questions much my alright, you very All taking for appreciate thank everyone. XX:XX it. I great. Well

Dominic Canuso

XX:XX Alright, you. Brody. Thank

Operator

to further questions XX:XX the no turn for over Instructions] Thank would I you. back like now remarks. I'm Levenson queue. [Operator call showing Rodger the closing in to

Rodger Levenson

Dominic think Thanks, is it I away. Actually, take Dominic. XX:XX to going

Dominic Canuso

today. you meeting Investor you XX:XX Sure. We the conferences joining quarter. and then. throughout I for Thank the everyone Rodger to will and attending of look call meetings with be many forward

have day. out. you to If Have a Thanks any questions, good reach for don't hesitate joining.

Operator

gentlemen, call. this you Thank for participating. XX:XX concludes conference Ladies and today's

disconnect. now may You

WSFS Financial (WSFS) 25 Jan 222021 Q4 Earnings call transcript