WSFS Financial Corporation (Exact name of registrant as specified in its charter) - PDF Free Download\nDownload "WSFS Financial Corporation (Exact name of registrant as specified in its charter)"\n1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 September 18, 2018 Date of Report (Date of earliest event reported) WSFS Financial Corporation (Exact name of registrant as specified in its charter) Delaware (SEC Commission File Number) (State or other jurisdiction of incorporation) WSFS Bank Center 500 Delaware Avenue, Wilmington, Delaware (Address of principal executive offices) (Zip Code) (IRS Employer Identification Number) Registrant s telephone number, including area code: (302) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ý Written communications pursuant to Rule 425 under the Securities Act Soliciting material pursuant to Rule 14a-12 under the Exchange Act Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 ( of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.\n2 WSFS FINANCIAL CORPORATION INFORMATION TO BE INCLUDED IN THE REPORT Item 7.01 Regulation FD Disclosure. On September 18, 2018, WSFS Financial Corporation ( WSFS ) announced that Mark A. Turner, Chairman, President and Chief Executive Officer of WSFS, Rodger Levenson, Executive Vice President and Chief Operating Officer of WSFS and Dominic C. Canuso, Executive Vice President and Chief Financial Officer of WSFS, will make presentations to analysts and investors at various meetings during the month of September. A copy of the press release is attached hereto as Exhibit 99.1 and a copy of the presentation materials is attached hereto as Exhibit 99.2 and each are incorporated herein by reference. This information (including Exhibits 99.1 and 99.2) is furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 ( Exchange Act ) or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the Securities Act ), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Item 8.01 Other Events. The only information contained in this Form 8-K being filed for the purposes of compliance with Rule 425 of the Securities Act is the information relating solely to the proposed merger between WSFS and Beneficial Bancorp, Inc. ( Beneficial ) contained in the presentation materials furnished herewith as Exhibit 99.2 and being filed under this Item Important Additional Information will be Filed with the SEC This Current Report on Form 8-K does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed acquisition by WSFS of Beneficial (the Proposed Transaction ). No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful.\n3 In connection with the Proposed Transaction, WSFS will file with the U.S. Securities and Exchange Commission (the SEC ) a Registration Statement on Form S-4 (the Registration Statement ) that will include a joint proxy statement of WSFS and Beneficial and a prospectus of WSFS (the Joint Proxy/Prospectus ), and each of WSFS and Beneficial may file with the SEC other relevant documents concerning the Proposed Transaction. The definitive Joint Proxy /Prospectus will be mailed to stockholders of WSFS and Beneficial. Stockholders are urged to read the Registration Statement and the Joint Proxy/Prospectus regarding the Proposed Transaction carefully and in their entirety when they become available and any other relevant documents filed with the SEC by WSFS and Beneficial, as well as any amendments or supplements to those documents, because they will contain important information about the Proposed Transaction. Free copies of the Registration Statement and the Joint Proxy/Prospectus, as well as other filings containing information about WSFS and Beneficial, may be obtained at the SEC s website ( when they are filed. You will also be able to obtain these documents, when they are filed, free of charge, by directing a request to WSFS Financial Corporation, WSFS Bank Center, 500 Delaware Avenue, Wilmington, Delaware or by directing a request to Beneficial Bancorp, Inc., Beneficial Bank Place, 1818 Market Street, Philadelphia, Pennsylvania Participants in the Solicitation WSFS, Beneficial and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies from the stockholders of WSFS or Beneficial in respect of the Proposed Transaction. Information about WSFS s directors and executive officers is available in its proxy statement for its 2018 annual meeting of stockholders, which was filed with the SEC on March 23, 2018, and information regarding Beneficial s directors and executive officers is available in its proxy statement for its 2018 annual meeting of stockholders, which was filed with the SEC on March 8, Information regarding the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Joint Proxy/Prospectus and other relevant materials to be filed with the SEC when they become available. Free copies of this document may be obtained as described in the preceding paragraph.\n4 Forward-Looking Statements This Current Report on Form 8-K contains estimates, predictions, opinions, projections and other forward-looking statements as that phrase is defined in the Private Securities Litigation Reform Act of Forward-looking statements include, without limitation, statements relating to the impact WSFS expects its proposed acquisition of Beneficial to have on the combined entity s operations, financial condition, and financial results, and WSFS s expectations about its ability to successfully integrate the combined businesses and the amount of cost savings and overall operational efficiencies WSFS expects to realize as a result of the proposed acquisition. The forward-looking statements also include predications or expectations of future business or financial performance as well as 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 (many of which are beyond the control of WSFS and Beneficial) 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, the possibility that the proposed acquisition does not close when expected or at all because required regulatory, stockholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, the failure to close for any other reason, changes in WSFS s share price before closing, that the businesses of WSFS and Beneficial will not be integrated successfully, that the cost savings and any synergies from the proposed acquisition may not be fully realized or may take longer to realize than expected, disruption from the proposed acquisition making it more difficult to maintain relationships with employees, customers or other parties with whom WSFS or Beneficial have business relationships, diversion of management time on merger-related issues, risks relating to the potential dilutive effect of shares of WSFS common stock to be issued in the transaction, the reaction to the transaction of the companies customers, employees and counterparties and other factors, many of which are beyond the control of WSFS and Beneficial. We refer you to the Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations sections of WSFS s Annual Report on Form 10-K for the year ended December 31, 2017, the Annual Report on Form 10-K filed by Beneficial for the year ended December 31, 2017 and any updates to those risk factors set forth in WSFS s and Beneficial s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings, which have been filed by WSFS and Beneficial with the SEC and are available on the SEC s website at All forward-looking statements, expressed or implied, included in this Current Report on Form 8-K are expressly qualified in their entirety by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on WSFS, Beneficial or their respective businesses or operations. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date on which they are made. Neither WSFS nor Beneficial undertakes any obligation, and specifically declines any obligation, to revise or update any forward-looking statements, whether as a result of new information, future developments or otherwise. Item 9.01 Exhibits. (d) Exhibits Exhibit 99.1 Press Release, dated September 18, Exhibit 99.2 Investor Presentation, dated September 19, 2018.\n5 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized. WSFS FINANCIAL CORPORATION Date: September 19, 2018 By: /s/ Dominic C. Canuso Name: Dominic C. Canuso Title: Executive Vice President and Chief Financial Officer\n6 Exhibit 99.1 FOR IMMEDIATE RELEASE Investor Relations Contact: Dominic C. Canuso (302) September 18, 2018 Media Contact: Jimmy A. Hernandez (302) WSFS to Hold Meetings with Analysts and Investors in New York City Roadshow and Participate in the 8 th Annual Stephens Bank CEO Forum in Little Rock, Ark. WILMINGTON, Del. Management from WSFS Financial Corporation (Nasdaq: WSFS), the parent company of WSFS Bank, will hold meetings with analysts and investors in a roadshow in New York City on September 20 and 21, 2018, and at the 8 th Annual Stephens Bank CEO Forum in Little Rock, Ark., on September 25 and 26, Mark A. Turner, WSFS Chairman, President and CEO, will be joined by Rodger Levenson, WSFS Executive Vice President and Chief Operating Officer, and Dominic C. Canuso, WSFS Executive Vice President and Chief Financial Officer, in the New York City roadshow sponsored and coordinated by Sandler O Neill + Partners, L.P. Messrs. Levenson and Canuso will participate in the 8 th Annual Stephens Bank CEO Forum where they will host one-on-one meetings with analysts and investors. Presentation Materials: Presentation slides will be included as part of the meetings and will also be available by close of business on Wednesday, September 19, 2018, on the Investor Relations page of the Company s website. About WSFS Financial Corporation WSFS Financial Corporation is a multi-billion dollar financial services company. Its primary subsidiary, WSFS Bank, is the oldest and largest locally-managed bank and trust company headquartered in Delaware and the Delaware Valley. As of June 30, 2018, WSFS Financial Corporation had $7.11 billion in assets on its balance sheet and $19.09 billion in assets under management and administration. WSFS operates from 77 offices located in Delaware (46), Pennsylvania (29), 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 Christiana Trust, Christiana Trust of DE, WSFS Wealth Investments, WSFS Wealth Client Management, Cypress Capital Management, LLC, West Capital Management, Powdermill Financial Solutions, Cash Connect, WSFS Mortgage and Arrow Land Transfer. Serving the 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 wsfsbank.com. ###\n7 C re a tin g th e L a rg e s t,p re m ie r,l o c a ly -H e a d q u a rte re d C o m m u n ity B a n k fo rth e G re a te rd e la w a re V a le y C o n c u re n tly e x e c u tin g a te c h n o lo g y tra n s fo rm a tio n to s e c u re a c o m p e titiv e a d v a n ta g e a n d m e e tfa s t-c h a n g in g C u s to m e rn e e d s S e p te m b e r1 9, Exhibit 99.2\n8 T h is p re s e n ta tio n c o n ta in s e s tim a te s,p re d ic tio n s,o p in io n s,p ro je c tio n s a n d o th e r fo rw a rd -lo o k in g s ta te m e n ts a s th a tp h ra s e i s d e fin e d in th e P riv a te S e c u ritie s L itig a tio n R e fo rm A c to f F o rw a rd -lo o k in g s ta te m e n ts in c lu d e,w ith o u tlim ita tio n,s ta te m e n ts re la tin g to th e im p a c tws F S F in a n c ia l C o rp o ra tio n ( WS F S )e x p e c ts its p ro p o s e d a c q u is itio n o fb e n e fic ia l to h a v e o n th e c o m b in e d e n tity s o p e ra tio n s,fin a n c ia l c o n d itio n,a n d fin a n c ia l re s u lts,a n d WS F S s e x p e c ta tio n s a b o u tits a b ility to s u c c e s s fu ly in te g ra te th e c o m b in e d b u s in e s s e s a n d th e a m o u n to fc o s ts a v in g s a n d o v e ra l o p e ra tio n a l e fic ie n c ie s WS F S e x p e c ts to re a liz e a s a re s u lto fth e p ro p o s e d a c q u is itio n.t h e fo rw a rd -lo o k in g s ta te m e n ts a ls o in c lu d e p re d ic a tio n s o re x p e c ta tio n s o fu tu re b u s in e s s o rfin a n c ia l p e rfo rm a n c e a s w e l a s g o a ls a n d o b je c ti v e s fo rfu tu re o p e ra tio n s,fin a n c ia l a n d b u s in e s s tre n d s,b u s in e s s p ro s p e c ts,a n d m a n a g e m e n t's o u tlo o k o re x p e c ta tio n s fo re a rn in g s,re v e n u e s,e x p e n s e s,c a p ita le v e ls,liq u id ity le v e ls,a s s e tq u a lity o ro th e rfu tu re fin a n c ia l o rb u s in e s s p e rfo rm a n c e,s tra te g ie s o re x p e c ta tio n s.t h e w o rd s b e lie v e, e x p e c t, a n tic ip a te, p la n, e s tim a te, ta rg e t, p ro je c t a n d s im ila re x p re s s io n s,a m o n g o th e rs,g e n e ra ly id e n tify fo rw a rd -lo o k in g s ta te m e n ts.s u c h fo rw a rd -lo o k in g s ta te m e n ts a re b a s e d o n v a rio u s a s s u m p tio n s (m a n y o fw h ic h a re b e y o n d th e c o n tro l o fws F S a n d B e n e fic ia l B a n c o rp,in c.( B e n e fic ia l o r B N C L )a n d a re s u b je c to ris k s a n d u n c e rta in tie s (w h ic h c h a n g e o v e rtim e )a n d o th e rfa c to rs w h ic h c o u ld c a u s e a c tu a l re s u lts to d ife rm a te ria ly fro m th o s e c u re n tly a n tic ip a te d.s u c h ris k s a n d u n c e rta in tie s in c lu d e,b u ta re n o tlim ite d to,th e p o s s ib ility th a th e p ro p o s e d a c q u is itio n d o e s n o tc lo s e w h e n e x p e c te d o ra ta l b e c a u s e re q u ire d re g u la to ry,s to c k h o ld e ro ro th e ra p p ro v a ls a n d o th e rc o n d itio n s to c lo s in g a re n o tre c e iv e d o rs a tis fie d o n a tim e ly b a s is o ra ta l,th e fa ilu re to c lo s e fo ra n y o th e re a s o n,c h a n g e s in WS F S s s h a re p ric e b e fo re c lo s in g,th a th e b u s in e s s e s o fws F S a n d B e n e fic ia l w il n o tb e in te g ra te d s u c c e s s fu ly,th a th e c o s ts a v in g s a n d a n y s y n e rg ie s fro m th e p ro p o s e d a c q u is itio n m a y n o tb e fu ly re a liz e d o rm a y ta k e lo n g e rto re a liz e th a n e x p e c te d,d is ru p tio n fro m th e p ro p o s e d a c q u is itio n m a k in g itm o re d ific u lto m a in ta in re la tio n s h ip s w ith e m p lo y e e s,c u s to m e rs o ro th e rp a rtie s w ith w h o m WS F S o rb e n e fic ia l h a v e b u s in e s s re la tio n s h ip s,d iv e rs io n o fm a n a g e m e n tim e o n m e rg e r-re la te d is s u e s,ris k s re la tin g to th e p o te n tia l d ilu tiv e e fe c to fs h a re s o fws F S c o m m o n s to c k to b e is s u e d in th e tra n s a c tio n,th e re a c tio n to th e tra n s a c tio n o fth e c o m p a n ie s c u s to m e rs,e m p lo y e e s a n d c o u n te rp a rtie s a n d o th e rfa c to rs,m a n y o fw h ic h a re b e y o n d th e c o n tro l o fws F S a n d B e n e fic ia l.we re fe ry o u to th e R is k F a c to rs a n d M a n a g e m e n t s D is c u s s io n a n d A n a ly s is o ff in a n c ia l C o n d itio n a n d R e s u lts o fo p e ra tio n s s e c tio n s o fws F S s A n n u a l R e p o rto n F o rm 1 0 -K fo rth e y e a r e n d e d D e c e m b e r3 1, ,th e A n n u a l R e p o rto n F o rm 1 0 -K file d b y B e n e fic ia l fo rth e y e a re n d e d D e c e m b e r3 1, a n d a n y u p d a te s to th o s e ris k fa c to rs s e tfo rth in WS F S s a n d B e n e fic ia l s Q u a rte rly R e p o rts o n F o rm 1 0 -Q,C u re n tr e p o rts o n F o rm 8 -K a n d o th e rfilin g s,w h ic h h a v e b e e n file d b y WS F S a n d B e n e fic ia l w ith th e U.S.S e c u ritie s a n d E x c h a n g e C o m m is s io n (th e S E C )a n d a re a v a ila b le o n th e S E C s w e b s ite a tw w w.s e c.g o v.a l fo rw a rd -lo o k in g s ta te m e n ts,e x p re s s e d o rim p lie d,in c lu d e d in th is p re s e n ta tio n a re e x p re s s ly q u a lifie d in th e ire n tire ty b y th e c a u tio n a ry s ta te m e n ts c o n ta in e d o re fe re d to h e re in.t h e a c tu a l re s u lts o rd e v e lo p m e n ts a n tic ip a te d m a y n o tb e re a liz e d o r,e v e n ifs u b s ta n tia ly re a liz e d,th e y m a y n o th a v e th e e x p e c te d c o n s e q u e n c e s to o re fe c ts o n WS F S,B e n e fic ia l o rth e ire s p e c tiv e b u s in e s s e s o ro p e ra tio n s.we c a u tio n re a d e rs n o to p la c e u n d u e re lia n c e o n a n y s u c h fo rw a rd -lo o k in g s ta te m e n ts,w h ic h s p e a k o n ly a s o fth e d a te o n w h ic h th e y a re m a d e.n e ith e rws F S n o rb e n e fic ia l u n d e rta k e s a n y o b lig a tio n,a n d s p e c ific a ly d e c lin e s a n y o b lig a tio n,to re v i s e o ru p d a te a n y fo rw a rd -lo o k in g s ta te m e n ts,w h e th e ra s a re s u lto fn e w in fo rm a tio n,fu tu re d e v e lo p m e n ts o ro th e rw is e.f o rw a rd -L o o k in g S ta te m e n ts 2\n9 Im p o rta n ta d d itio n a l In fo rm a tio n w il b e F ile d w ith th e S E C T h is p re s e n ta tio n d o e s n o tc o n s titu te a n o fe rto s e l o rth e s o lic ita tio n o fa n o fe rto b u y a n y s e c u ritie s o ra s o lic ita tio n o fa n y v o te o ra p p ro v a l w ith re s p e c to th e p ro p o s e d a c q u is itio n b y WS F S o fb e n e fic ia l.n o o fe ro fs e c u ritie s s h a l b e m a d e e x c e p tb y m e a n s o fa p ro s p e c tu s m e e tin g th e re q u ire m e n ts o fth e S e c u ritie s A c to f ,a s a m e n d e d,a n d n o o fe rto s e l o rs o lic ita tio n o fa n o fe rto b u y s h a l b e m a d e in a n y ju ris d ic tio n in w h ic h s u c h o fe r,s o lic ita tio n o rs a le w o u ld b e u n la w fu l.in c o n n e c tio n w ith th e p ro p o s e d tra n s a c tio n,ws F S w file w ith th e S E C a R e g is tra tio n S ta te m e n to n F o rm S -4 th a tw il in c lu d e a jo in tp ro x y s ta te m e n to fws F S a n d B e n e fic ia l a n d a p ro s p e c tu s o fws F S (th e J o in tp ro x y /P ro s p e c tu s ),a n d e a c h o fws F S a n d B e n e fic ia l m a y fi le w ith th e S E C o th e re le v a n td o c u m e n ts c o n c e rn in g th e p ro p o s e d tra n s a c tio n.t h e d e fin itiv e J o in tp ro x y /P ro s p e c tu s w il b e m a ile d to s to c k h o ld e rs o fws F S a n d B e n e fic ia l.s T O C K H O L D E R S A R E U R G E D T O R E A D T H E R E G IS T R A T IO N S T A T E M E N T A N D T H E J O IN T P R O X Y /P R O S P E C T U S R E G A R D IN G T H E T R A N S A C T IO N C A R E F U L L Y A N D IN T H E IR E N T IR E T Y WH E N T H E Y B E C O M E A V A IL A B L E A N D A N Y O T H E R R E L E V A N T D O C U M E N T S F IL E D WIT H T H E S E C B Y WS F S A N D B E N E F IC IA L,A S WE L L A S A N Y A M E N D M E N T S O R S U P P L E M E N T S T O T H O S E D O C U M E N T S,B E C A U S E T H E Y WIL L C O N T A IN IM P O R T A N T IN F O R M A T IO N A B O U T T H E P R O P O S E D T R A N S A C T IO N.F re e c o p ie s o fth e R e g is tra tio n S ta te m e n ta n d th e J o in tp ro x y /P ro s p e c tu s,a s w e l a s o th e rfilin g s c o n ta in in g in fo rm a tio n a b o u tws F S a n d B e n e fic ia l,m a y b e o b ta in e d a th e S E C s w e b s ite (h tp :/w w w.s e c.g o v )w h e n th e y a re file d.y o u w il a ls o b e a b le to o b ta in th e s e d o c u m e n ts,w h e n th e y a re file d,fre e o fc h a rg e,b y d ire c tin g a re q u e s to WS F S F in a n c ia l C o rp o ra tio n,ws F S B a n k C e n te r,5 0 0 D e la w a re A v e n u e,wilm in g to n,d e la w a re o rb y d ire c tin g a re q u e s to B e n e fic ia l B a n c o rp,in c.,b e n e fic ia l B a n k P la c e, M a rk e ts tre e t,p h i la d e lp h ia,p e n n s y lv a n ia P a rtic ip a n ts in th e S o lic ita tio n WS F S,B e n e fic ia l a n d c e rta in o fth e ire s p e c tiv e d ire c to rs,e x e c u tiv e o fic e rs a n d e m p lo y e e s m a y b e d e e m e d to b e p a rtic ip a n ts in th e s o lic ita tio n o fp ro x ie s fro m th e s to c k h o ld e rs o fws F S o rb e n e fic ia l in re s p e c to fth e p ro p o s e d tra n s a c tio n.in fo rm a tio n a b o u tws F S s d ire c to rs a n d e x e c u tiv e o fic e rs is a v a ila b le in its p ro x y s ta te m e n tfo rits a n n u a l m e e tin g o fs to c k h o ld e rs,w h ic h w a s file d w ith th e S E C o n M a rc h 2 3, ,a n d in fo rm a tio n re g a rd in g B e n e fic ia l s d ire c to rs a n d e x e c u tiv e o fic e rs is a v a ila b le in its p ro x y s ta te m e n tfo rits a n n u a l m e e tin g o fs to c k h o ld e rs,w h ic h w a s file d w ith th e S E C o n M a rc h 8, In fo rm a tio n re g a rd in g th e p e rs o n s w h o m a y,u n d e rth e ru le s o fth e S E C,b e d e e m e d p a rtic ip a n ts in th e p ro x y s o lic ita tio n a n d a d e s c rip tio n o fth e ird ire c ta n d in d ire c tin te re s ts,b y s e c u rity h o ld in g s o ro th e rw is e,w il b e c o n ta in e d in th e J o in tp ro x y /P ro s p e c tu s a n d o th e re le v a n tm a te ria ls to b e file d w ith th e S E C w h e n th e y b e c o m e a v a ila b le.f re e c o p ie s o fth is d o c u m e n tm a y b e o b ta in e d a s d e s c rib e d in th e p re c e d in g p a ra g ra p h.3 A d d itio n a l In fo rm a tio n & P a rtic ip a n ts in th e s o lic ita tio n\n10 N o n -G A A P In fo rm a tio n T h is p re s e n ta tio n c o n ta in s fin a n c ia l in fo rm a tio n a n d p e rfo rm a n c e m e a s u re s d e te rm in e d b y m e th o d s o th e rth a n in a c c o rd a n c e w ith a c c o u n tin g p rin c ip le s g e n e ra ly a c c e p te d in th e U n ite d S ta te s ( G A A P ).T h e C o m p a n y s m a n a g e m e n tb e lie v e s th a th e s e n o n -G A A P m e a s u re s p ro v id e a g re a te ru n d e rs ta n d in g o fo n g o in g o p e ra tio n s,e n h a n c e c o m p a ra b ility o fre s u lts o fo p e ra tio n s w ith p rio rp e rio d s a n d s h o w th e e fe c ts o fs ig n ific a n tg a in s a n d c h a rg e s in th e p e rio d s p re s e n te d.t h e C o m p a n y s m a n a g e m e n tb e lie v e s th a tin v e s to rs m a y u s e th e s e n o n -G A A P m e a s u re s to a n a ly z e th e C o m p a n y s fin a n c ia l p e rfo rm a n c e w ith o u th e im p a c to fu n u s u a l ite m s o re v e n ts th a tm a y o b s c u re tre n d s in th e C o m p a n y s u n d e rly in g p e rfo rm a n c e.t h is n o n -G A A P d a ta s h o u ld b e c o n s id e re d in a d d itio n to re s u lts p re p a re d in a c c o rd a n c e w ith G A A P,a n d is n o ta s u b s titu te fo r,o rs u p e rio rto,g A A P re s u lts.f o ra re c o n c ilia tio n o fth e s e n o n -G A A P m e a s u re s to th e irc o m p a ra b le G A A P m e a s u re s,s e e A p p e n d ix 3.T h e fo lo w in g a re th e n o n -G A A P m e a s u re s u s e d in th is p re s e n ta tio n : C o re n e tin c o m e is a n o n -G A A P m e a s u re th a ta d ju s ts n e tin c o m e d e te rm in e d in a c c o rd a n c e w ith G A A P to e x c lu d e th e im p a c to fs e c u ritie s g a in s,u n re a liz e d g a in s,re c o v e ry o f/p ro v is io n fo rfra u d lo s s a n d c o rp o ra te d e v e lo p m e n tc o s ts C o re n o n in te re s tin c o m e,a ls o c a le d c o re fe e in c o m e,is a n o n -G A A P m e a s u re th a ta d ju s ts n o n in te re s t in c o m e a s d e te rm in e d in a c c o rd a n c e w ith G A A P to e x c lu d e th e im p a c to fs e c u ritie s g a in s (lo s s e s )a n d u n re a liz e d g a in s C o re e a rn in g s p e rs h a re (E P S )is a n o n -G A A P m e a s u re th a td iv id e s (i)c o re n e tin c o m e b y (i)w e ig h te d a v e ra g e s h a re s o fc o m m o n s to c k o u ts ta n d in g fo rth e a p p lic a b le p e rio d C o re n e tre v e n u e is a n o n -G A A P m e a s u re th a tis d e te rm in e d b y a d d in g c o re n e tin te re s tin c o m e p lu s c o re n o n in te re s tin c o m e C o re n o n in te re s te x p e n s e is a n o n -G A A P m e a s u re th a ta d ju s ts n o n in te re s te x p e n s e a s d e te rm in e d in a c c o rd a n c e w ith G A A P to e x c lu d e c o rp o ra te d e v e lo p m e n te x p e n s e s,a n d re c o v e ry o fp ro v is io n fo rfra u d lo s s C o re e fic ie n c y ra tio is a n o n -G A A P m e a s u re th a tis d e te rm in e d b y d iv id in g c o re n o n in te re s te x p e n s e b y th e s u m o fc o re in te re s tin c o m e a n d c o re n o n in te re s tin c o m e C o re fe e in c o m e to to ta l re v e n u e is a n o n -G A A P m e a s u re th a td iv id e s (i)c o re n o n in te re s tin c o m e b y (i)(ta x e q u iv a le n t)c o re n e tin te re s tin c o m e a n d c o re n o n in te re s tin c o m e C o re re tu rn o n a s s e ts (R O A )is a n o n -G A A P m e a s u re th a td iv id e s (i)c o re n e tin c o m e b y (i)a v e ra g e a s s e ts fo rth e a p p lic a b le p e rio d C o re a n d S u s ta in a b le R O A is a n o n -G A A P m e a s u re th a td iv id e s (i)n e tin c o m e d e te rm in e d in a c c o rd a n c e w ith G A A P a n d a d ju s tin g itb y ta k in g c o re n e tin c o m e a n d n o rm a liz in g fo rlo n g -te rm c re d itc o s ts,n o n -re c u rin g a c c re tio n fro m p u rc h a s e d c re d itim p a ire d lo a n s ( P C I ),a n d a n o rm a l ta x ra te b y (i)a v e ra g e a s s e ts fo rth e a p p lic a b le p e rio d T a n g ib le c o m m o n e q u ity is a n o n -G A A P m e a s u re a n d is d e fin e d a s to ta l a v e ra g e s to c k h o ld e rs e q u ity le s s g o o d w il,o th e rin ta n g ib le a s s e ts R e tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity (R O T C E )is a n o n -G A A P m e a s u re a n d is d e fin e d a s n e tin c o m e a lo c a b le to c o m m o n s to c k h o ld e rs d iv id e d b y ta n g ib le c o m m o n e q u ity 4\n11 x T h e o n ly c o m m u n ity b a n k w ith s c a le (# 6 m a rk e ts h a re )a n d a fu l s e rv ic e p ro d u c to fe rin g in th e P h ila d e lp h ia -C a m d e n -Wilm in g to n M S A x T ra n s fo rm a tio n a l in v e s tm e n tin te c h n o lo g y a n d d e liv e ry c a p a b ilitie s to p ro v id e to p -tie rc u s to m e re x p e rie n c e in a ra p id ly c h a n g in g b a n k in g la n d s c a p e D e la w a re V a le y s P re m ie rc o m m u n ity B a n k 5 $ 7.1 b n in a s s e ts Wilm in g to n,d E F o u n d e d O ld e s ta n d la rg e s tin d e p e n d e n tc o m m u n ity b a n k a n d tru s tc o m p a n y h e a d q u a rte re d in th e D e la w a re V a le y 7 7 o fic e s p re d o m in a n tly in D e la w a re a n d S o u th e a s te rn P e n n s y lv a n ia M a jo rb u s in e s s L in e s : C o m m e rc ia l R e ta il M o rtg a g e We a lth M a n a g e m e n t C a s h C o n n e c ta w a rd Win n in g Wo rk P la c e $ 5.8 b n in a s s e ts P h ila d e lp h ia,p A F o u n d e d O ld e s ta n d la rg e s tin d e p e n d e n tc o m m u n ity b a n k h e a d q u a rte re d in P h ila d e lp h ia 7 2 o fic e s p re d o m in a n tly in P h ila d e lp h ia a n d n e ig h b o rin g N e w J e rs e y a n d S o u th e a s te rn P e n n s y lv a n ia c o u n tie s M a jo rb u s in e s s L in e s : C o m m e rc ia l R e ta il M o rtg a g e L e a s in g A w a rd Win n in g Wo rk P la c e\n12 C o m p e lin g M a rk e to p p o rtu n ity 6 A t$ 1 3 b ilio n in a s s e ts,th e c o m b in e d b a n k fils a lo n g -s ta n d in g s e rv ic e g a p in th e D e la w a re V a le y m a rk e tb e tw e e n la rg e re g io n a l /n a tio n a l b a n k s a n d s m a le rc o m m u n ity b a n k s 5 th la rg e s td e p o s ito ry M S A in th e U.S. O v e r2.5 x th e m a rk e ts h a re o fth e n e x tla rg e s tlo c a l c o m m u n ity b a n k WS F S 5 -y e a rc o m p o u n d a n n u a l d e p o s itg ro w th ra te o f9.5 % v s.a n a n n u a l a v e ra g e o f3.5 % fo rth e M S A WS F S is filin g th e s e rv ic e g a p le ftb y th e a c q u is itio n s o fo rm e ric o n ic lo c a l b a n k s b y la rg e ro u t-o f-m a rk e tb a n k s P h ila d e lp h ia -C a m d e n -Wilm in g to n D e p o s itm a rk e ts h a re In s titu tio n T o ta l D e p o s its ($ m m )M a rk e ts h a re (%)1 We ls F a rg o B a n k,n A 3 1, T D B a n k,n A 2 9, P N C B a n k,n A 1 7, C itiz e n s B a n k 1 5, B a n k o fa m e ric a,n A 1 4, P ro F o rm a WS F S /B N C L 8, M & T B a n k 7, B B & T 5, Wilm in g to n S a v in g s F u n d S o c ie ty,f S B 4, B e n e fic ia l B a n k 3, T h e B ry n M a w rt ru s tc o m p a n y 3, U n iv e s tb a n k a n d T ru s tc o.2, F u lto n B a n k 2, K e y B a n k N A 2, S a n ta n d e rb a n k,n.a.2, F irs tru s ts a v in g s B a n k 2, R e p u b lic B a n k 1, In v e s to rs B a n k 1, C u s to m e rs B a n k 1, P e n n C o m m u n ity B a n k 1, D N B F irs t,n A T o ta l In s titu tio n s in M a rk e t1 5 8,1 6 7 M a rk e tp o s itio n F o rm e ric o n ic D e la w a re V a le y B a n k s M a rk e ts h a re d a ta a s o fj u n e 3 0, ;S o u rc e :F D IC N o te :M a rk e ts h a re d a ta e x c lu d e s b ro k e re d d e p o s its a n d n o n -tra d itio n a l b a n k s (e.g.c re d itc a rd c o m p a n ie s )\n13 L e a d in g M a rk e tp o s itio n in D e m o g ra p h ic a ly -R o b u s tr e g io n 7 3 rd la rg e s tm e tro in th e N o rth e a s t $ b ilio n re g io n a l e c o n o m y 5 th la rg e s td e p o s ito ry M S A in th e U.S. 8 th la rg e s tm S A p o p u la tio n in th e U.S. M e d ia n h o u s e h o ld in c o m e o f$ 7 1 k v e rs u s n a tio n a l m e d ia n o f$ 6 1 k 2 0 0, o p e ra tin g b u s in e s s e s 4 th la rg e s tu n iv e rs ity p o p u la tio n a m o n g a l U.S.m e tro a re a s M a jo rtra n s p o rta tio n h u b,c o n v e n ie n tly lo c a te d a lo n g I-9 5 c o rid o r,a m tra k s N o rth e a s tr e g io n a l L in e,a n d h o m e to th e P h ila d e lp h ia In te rn a tio n a l A irp o rtn e w J e rs e y 2 5 M ile s S o u rc e s :S & P G lo b a l M a rk e tin te lig e n c e,s e le c tg re a te rp h ila d e lp h ia C o u n c il\n14 T ra n s a c tio n S u m m a ry N e g o tia te d D e a l C o m b in e s T w o S tro n g C o m m u n ity B a n k s 8 T ra n s a c tio n V a lu e & C o n s id e ra tio n P ro F o rm a O w n e rs h ip H e a d q u a rte rs S e n io rm a n a g e m e n te x p e c te d C lo s in g (a )B a s e d o n WS F S c lo s in g p ric e a s o fa u g u s t7, o f$ (b )B a s e d o n c o n s e n s u s a n a ly s te s tim a te s P e rs h a re :$ ,A g g re g a te :$ b ilio n (a ) $ o fc a s h a n d WS F S s h a re s A p p ro x im a te ly 8 5 % WS F S C o m m o n S to c k,1 5 % C a s h B N C L o p tio n s w il b e c a s h e d o u t P /T B V : %,P / E (b ):3 5.9 x,c o re D e p o s itp re m iu m :1 5.4 % ~ 6 0 % WS F S s h a re h o ld e rs /~ 4 0 % B N C L s h a re h o ld e rs Q ,s u b je c to s h a re h o ld e ra n d re g u la to ry a p p ro v a ls Wilm in g to n,d E,w ith a s ig n ific a n tp re s e n c e in P h ila d e lp h ia,p A M a rk A.T u rn e r,e x e c u tiv e C h a irm a n R o d g e rl e v e n s o n,p re s id e n ta n d C E O G e ra ld P.C u d d y,v ic e C h a irm a n o fws F S B a n k E n tire B N C L s e n io rte a m (8 )u n d e rc o n tra c th ro u g h m id B o a rd o fd ire c to rs G e ra rd P.C u d d y a n d 2 a d d itio n a l B N C L D ire c to rs to jo in WS F S B o a rd\n15 T e c h n o lo g ic a l a d v a n c e s a n d c h a n g in g c u s to m e rp re fe re n c e s a re ra p id ly d is ru p tin g th e tra d itio n a l b a n k in g m o d e l a s e v id e n c e d b y th e s ig n ific a n tre d u c tio n o fb ra n c h tra fic a n d tra n s a c tio n v o lu m e,a lo n g w ith e n h a n c e m e n ts a n d c u s to m e ra d o p tio n o fd ig ita l c h a n n e ls a n d fin -te c h p la tfo rm s 8 1 % o fc o n s u m e rs a re u s in g d ig ita l c h a n n e ls to e n g a g e w ith th e irb a n k 6 0 %+ w a n to o p e n a b a n k a c c o u n t,ta k e a lo a n,o ra p p ly fo ra m o rtg a g e v ia d ig ita l c h a n n e l 6 3 % th in k e x p e rie n c e is th e m o s tim p o rta n tc o n s id e ra tio n w h e n o p e n in g a b a n k a c c o u n t With in th e n e x tfiv e y e a rs,d ig ita l s a le s h a v e th e p o te n tia l to a c c o u n tfo r4 0 % o rm o re o fn e w in flo w re v e n u e in th e m o s tp ro g re s s iv e g e o g ra p h ie s a n d c u s to m e rs e g m e n ts D e liv e ry T ra n s fo rm a tio n 9 D is ru p tiv e B a n k in g L a n d s c a p e S o u rc e s :O ra c le :T h e N e w D ig ita l D e m a n d a n d R e ta il B a n k in g,s & P G lo b a l M a rk e tin te lig e n c e,m c K in s e y :S tra te g ic C h o ic e s fo rb a n k s in th e D ig ita l A g e,j P M o rg a n A n n u a l L e te r,c N B C In te rv ie w o fb ria n M o y n ih a n T h e re a s o n s w e in v e s ts o m u c h in te c h n o lo g y (w h e th e rit s d ig ita l,b ig d a ta o rm a c h in e le a rn in g )a re s im p le :to b e n e fitc u s to m e rs w ith b e te r,fa s te ra n d o fte n c h e a p e rp ro d u c ts a n d s e rv ic e s,to re d u c e e ro rs a n d to m a k e th e firm m o re e fic ie n t -J a m ie D im o n,j P M o rg a n C h a s e We h a v e 3 5 m ilio n d ig ita l c u s to m e rs.2 5 m ilio n p lu s m o b ile c u s to m e rs a n d y o u k n o w w e h a v e 5 0 m ilio n c u s to m e rs,s o w e h a v e p e n e tra tio n ra te s w h e re re a ly e v e ry o n e is u s in g it B ria n M o y n ih a n,b a n k o fa m e ric a\n16 D e liv e ry T ra n s fo rm a tio n 1 0 T h e c o m b in e d p la tfo rm c re a te s a n id e a l o p p o rtu n ity to e v a lu a te th e e x p a n d e d b ra n c h n e tw o rk a n d s c a le in v e s tm e n tin to c o m p le m e n ta ry d ig ita l c a p a b ilitie s w ith th e o b je c tiv e o fd e v e lo p in g a to p -tie r,h ig h ly c o m p e titiv e o m n i -c h a n n e l d e liv e ry p la tfo rm In c re m e n ta l in v e s tm e n to f$ 3 2 m ilio n o v e rth e n e x t5 y e a rs in to d ig ita l d e liv e ry in itia tiv e s ta rg e te d a c ro s s fo u rm a jo ra re a s,re p re s e n tin g ~ 3 x WS F S n o n -ro u tin e a n n u a l te c h n o lo g y e x p e n s e s In v e s tm e n tfu n d e d fro m ~ 5 0 % o fth e s a v in g s fro m c o n s o lid a tin g ~ 2 5 % o fth e c o m b in e d b ra n c h n e tw o rk C u s to m e re x p e rie n c e L e a d in g -e d g e,p ro v e n,c u s to m e r-fo c u s e d in itia tiv e s to d e liv e ra s e a m le s s c u s to m e re x p e rie n c e P e e r-to -p e e rp a y m e n ts P e rs o n a l fin a n c ia l m a n a g e m e n t S tre a m lin e d a c c o u n to p e n in g R is k M a n a g e m e n te n h a n c in g s e c u rity a n d p riv a c y fo ro u rc u s to m e rs a s tru s tis a to p p rio rity A d v a n c e d c y b e rs e c u rity R e a l -tim e fra u d a le rts In te g ra te d in te rn a l c o n tro l m o n ito rin g N e x tg e n e ra tio n p la tfo rm fo ra n in te g ra te d a rc h ite c tu re C R M D a ta w a re h o u s e C u s to m e rin te lig e n c e D a ta P la tfo rm S ta n d a rd iz e a n d d ig itiz e p ro c e s s e s to re d u c e c o s ta n d im p ro v e e fic ie n c y E n te rp ris e d o c u m e n tim a g in g B a c k o fic e a u to m a tio n & s tre a m lin in g A s s o c ia te k n o w le d g e p la tfo rm Wo rk flo w A u to m a tio n In te g ra te d O m n i -C h a n n e l P la tfo rm O p p o rtu n ity fo rd e liv e ry T ra n s fo rm a tio n\n17 C o s ts a v in g s fro m tra d itio n a l s y n e rg ie s a n d d e liv e ry tra n s fo rm a tio n a re p h a s e d in a t5 0 %,9 0 %,a n d % fo r , ,a n d K e y M o d e l D e ta ils 1 1 T ra d itio n a l S y n e rg ie s M e rg e r& R e s tru c tu rin g C o s ts $ m ilio n a n n u a l fro m n o n -b ra n c h o p e ra tio n s a n d p e rs o n n e l $ m ilio n a n n u a l e x p e n s e s re la te d to B N C L s p u b lic o fe rin g (b )D e liv e ry T ra n s fo rm a tio n $ m ilio n o fa d d itio n a l a n n u a l c o s ts a v in g s fro m b ra n c h c o n s o lid a tio n s 3 6 % fro m p ro x im ity,6 4 % fro m b ra n c h o p tim iz a tio n 3 0 n e tb ra n c h e s c o n s o lid a te d (~ 2 5 % o fc o m b in e d n e tw o rk ) In c re m e n ta l $ m ilio n te c h n o lo g y in v e s tm e n to v e ra 5 y e a rp e rio d ;~ 5 0 % o fb ra n c h s a v in g s $ m ilio n w ith a n a d d itio n a l $ 2 9 m ilio n o fc a p ita liz e d e x p e n s e s,to ta l $ m ilio n S o m e o fth e s e in c re m e n ta l c o s ts a re a s s o c ia te d w ith d e liv e ry tra n s fo rm a tio n a n d te c h n o lo g ic a l in v e s tm e n ts N o te :A s s u m e s m a rg in a l e fe c tiv e ta x ra te o f2 6 % a n d C o re D e p o s itin ta n g ib le e q u a l to % B N C L s N o n -T im e D e p o s its (a )P e rc e n ta g e o fb N C L Y T D a n n u a liz e d n o n -in te re s te x p e n s e o f$ m ilio n (b )R e fle c ts a c c e le ra tio n o fc e rta in c o s ts re la te d to B N C L s fu l c o n v e rs io n to a p u b lic c o m p a n y in % (a )8 % (a )C o s ts a v in g s R e a liz a tio n C ro s s in g $ 1 0 b n $ 1 1 m ilio n ($ m ilio n D u rb in re la te d )a n n u a l p re -ta x e a rn in g s lo s s s ta rtin g Q\n18 H ig h V a lu e /L o w R is k T ra n s a c tio n 1 2 F in a n c ia l M e tric s L o w R is k T ra n s a c tio n N e g o tia te d d e a l;7 0 + d a y jo in te v a lu a tio n a n d d u e d ilig e n c e p ro c e s s in c lu d in g th o ro u g h in te g ra tio n a n d c o n v e rs io n p la n n in g H ig h le v e l m a n a g e m e n ta lig n m e n t,c o n tin u ity,a n d b u y -in th ro u g h o u th e c o m b in e d o rg a n iz a tio n.m a n a g e m e n th a s a n in tim a te k n o w le d g e o fc o m b in e d m a rk e ts B o th in s titu tio n s h a v e s tro n g re g u la to ry s ta n d in g s B e n e fic ia l s c a s h a n d liq u id ity p o s itio n im p ro v e s WS F S o v e ra liq u id ity a n d e a rn in g s p o te n tia l D iv e rs ifie d p ro fo rm a lo a n p o rtfo lio a n d c o m p le m e n ta ry lo w c o s t,c o re d e p o s itb a s e WS F S m a n a g e m e n te a m h a s a p ro v e n tra c k re c o rd o fs u c c e s s fu ly in te g ra tin g re c e n ta c q u is itio n s a n d b e a tin g e x p e c te d re s u lts ;a s e v id e n c e d b y a b o v e p e e rr O A A o f1.6 5 % re p o rte d in Q B e n e fic ia l C o m b in a tio n D e liv e ry T ra n s fo rm a tio n P ro F o rm a Im p a c t E P S A c c re tio n 5.4 %(1.2 %)4.2 % E P S A c c re tio n 8.7 %(0.7 %)8.0 % T B V D ilu tio n (a )(3.2 %)(1.1 %)(4.3 %)T B V E a rn b a c k (Y e a rs )(a )2.8 N /A 3.7 IR R 1 9 %(a )B a s e d o n C ro s s -O v e rm e th o d w ith % o fn o n -c a p ita liz e d o n e -tim e e x p e n s e s a tc lo s e (b ) E P S a c c re tio n b a s e d o n c o n s e n s u s -e s tim a te s ; E P S a c c re tio n a s s u m e s E P S g ro w th ra te o f8 % fo re a c h c o m p a n y $ m ilio n o fid e n tifie d,a c h ie v a b le a n n u a l re v e n u e s y n e rg ie s n o tin c lu d e d in m o d e l.ifa c h ie v e d,re v e n u e s y n e rg ie s w o u ld re s u ltin % a c c re tio n to E P S a n d a re d u c tio n to th e T B V e a rn b a c k to 2.9 y e a rs.\n19 $ 4.5 b n $ 4.8 b n $ 5.6 b n $ 6.8 b n $ 7.0 b n $ 7.2 b n $ -$ 1 3 b n % % % % % % % % % % % % % $ -$ 2,0 0 0 $ 4,0 0 0 $ 6,0 0 0 $ 8,0 0 0 $ 1 0,0 0 0 $ 1 2,0 0 0 $ 1 4,0 0 0 $ 1 6,0 0 0 $ 1 8, P la n T o ta l A s s e ts C o re & S u s ta in a b le R O A (a )H is to ry o fd e liv e rin g o n S tra te g ic P la n T a rg e ts 1 3 A c c e le ra te d s ig n ific a n tin v e s tm e n ts in in fra s tru c tu re,p e rs o n n e l,a n d a d d itio n a lin e s o fb u s in e s s to c a p ita liz e o n p o s tre c e s s io n o p p o rtu n itie s to e x p a n d m a rk e ts h a re a n d s ig n ific a n tly im p ro v e p ro fita b ility.a c c e le ra tin g s ig n ific a n tin v e s tm e n ts in in te g ra tio n,te c h n o lo g y,a n d d e liv e ry s y s te m s to p ro fita b ly e x p a n d m a rk e ts h a re a s th e p re m ie rc o m m u n ity b a n k in o u rm a rk e ta n d a d d re s s th e c h a n g in g n e e d s o fth e b a n k in g c u s to m e r.s tra te g ic m e rg e ra tio n a le is in lin e w ith WS F S p ro v e n s tra te g y o fa c c e le ra tin g in v e s tm e n ts p e n d in g o v e rth e s h o rt-te rm to d e liv e rs u p e rio rlo n g -te rm v a lu e c re a tio n P o s tr e c e s s io n In v e s tm e n t M e rg e r/d e liv e ry T ra n s fo rm a tio n (a )C o re a n d S u s ta in a b le R O A is a n o n -G A A P m e a s u re th a td iv id e s (i)n e tin c o m e d e te rm in e d in a c c o rd a n c e w ith G A A P a n d a d ju s tin g itb y ta k in g c o re n e tin c o m e a n d n o rm a liz in g fo rlo n g -te rm c re d itc o s ts,n o n -re c u rin g a c c re tio n fro m p u rc h a s e d c re d itim p a ire d lo a n s ( P C I ),a n d a n o rm a l ta x ra te b y (i)a v e ra g e a s s e ts.s e e p a g e 2 2 fo rg A A P re c o n c ilia tio n.a s s e ts\n20 D e liv e rin g B e y o n d E x p e c ta tio n s,in c lu d in g o n M & A 1 4 WS F S m a n a g e m e n te a m h a s a h is to ry o fd e liv e rin g s u p e rio rs h a re h o ld e rv a lu e b y p e rfo rm in g b e y o n d e x p e c ta tio n s C h ris tia n a B a n k & T ru s tc o m p a n y A ra y F in a n c ia l /A ro w L a n d T ra n s fe r*f irs twy o m in g F in a n c ia l C o rp A lia n c e B a n c o rp P e n n L ib e rty F in a n c ia l C o rp P o w d e rm il F in a n c ia l S o lu tio n s *We s tc a p ita l M a n a g e m e n t*n A S D A Q B a n k C A G R :1 1 % T o ta l P ric e In c re a s e :1 5 1 % WS F S C A G R :2 4 % T o ta l P ric e In c re a s e :5 4 4 % J a n A u g N o te :re tu rn s b a s e d o n s to c k p ric e a p p re c ia tio n *N o n -b a n k fin a n c ia l a c q u is itio n\n21 S tra te g ic U p s id e 1 5 S ig n ific a n to p p o rtu n ity to in c re a s e B e n e fic ia l s fe e in c o m e b y m a k in g a v a ila b le WS F S fu l s u ite o fe e -b a s e d p ro d u c ts a n d s e rv ic e s WS F S Q 2 Y T D fe e in c o m e ra tio o f3 6 %,B N C L Q 2 Y T D fe e in c o m e ra tio o f1 4 % T ra d itio n a l b a n k in g fe e re v e n u e,in c lu d in g c re d itc a rd s F u l s e rv ic e w e a lth m a n a g e m e n to fe rin g M o rtg a g e T ra n s itio n fro m o rig in a te to h o ld to o rig in a te to s e l,g e n e ra tin g a d d itio n a l fe e in c o m e C a p ita l M a n a g e m e n to p p o rtu n ity to e x p a n d n e tin te re s tm a rg in WS F S Q 2 Y T D N IM %,B N C L Q 2 Y T D N IM % T ra n s itio n in g m o rtg a g e m o d e l O p tim iz in g d e p o s itm ix F u rth e rp ric in g d is c ip lin e p o s s ib le d u e to WS F S h ig h s e rv ic e m o d e l In c re a s e d re la tio n s h ip b a s e d C & Ia s s e ts le a d in g to h ig h e ry ie ld s N e tin te re s tm a rg in F e e In c o m e C o m b in e d in s titu tio n w il g e n e ra te h ig h le v e ls o fe a rn in g s th a tw il b e e fic ie n tly d e p lo y e d c o n s is te n tw ith WS F S c a p ita l m a n a g e m e n tp h ilo s o p h y WS F S Q 2 Y T D C o re R O A T C E (b )o f1 9.9 %,B N C L Q 2 Y T D C o re R O A T C E (b )o f5.2 % T a rg e te d T C E le v e ls b e tw e e n 7 %-8 % R e tu rn a tle a s t2 5 % o fe a rn in g s th ro u g h a c o m b in a tio n o fp u rp o s e fu ly lo w d iv id e n d s a n d a c tiv e b u y b a c k s B y im p ro v in g B e n e fic ia l s fe e in c o m e ra tio to th e a v e ra g e o fo u rp e e rg ro u p (a )(~ 2 0 %),~ $ 1 6 m m o fa n n u a l re v e n u e c o u ld b e a d d e d E v e ry 2 5 b p s e x p a n s io n a b o v e B N C L s c u re n tn IM w o u ld p ro v id e ~ $ m ilio n in a d d itio n a l a n n u a l re v e n u e S ig n ific a n ts tra te g ic u p s id e w ith th e p o te n tia l to d riv e $ m ilio n o fa d d itio n a l a n n u a l re v e n u e (n o tm o d e le d )w ith fu rth e ru p s id e fro m d is c ip lin e d c a p ita l m a n a g e m e n t(a )C o n s is ts o fe a g le B a n c o rp,b ry n M a w rb a n k,o c e a n F irs tf in a n c ia l,b a n k o fp rin c e to n,s h o re B a n c s h a re s,u n iv e s t,s a n d y S p rin g,p e a p a c k -G la d s to n e,f u lto n F in a n c ia l,d N B F in a n c ia l,a n d C u s to m e rs B a n c o rp (b )C o re R O A T C E is a n o n -G A A P fin a n c ia l m e a s u re a n d s h o u ld b e c o n s id e re d a lo n g w ith re s u lts p re p a re d in a c c o rd a n c e w ith G A A P,a n d n o ta s a s u b s titu te fo rg A A P re s u lts.s e e p a g e 2 2 fo ra re c o n c ilia tio n to G A A P fin a n c ia l in fo rm a tio n.\n22 R a tio n a le fo rc o m b in a tio n & D e liv e ry T ra n s fo rm a tio n th la rg e s td e p o s ito ry M S A 6 th la rg e s tb a n k in M S A b y d e p o s itm a rk e ts h a re C o n s is te n tra c k re c o rd o fd e liv e rin g s u s ta in a b le h ig h p e rfo rm a n c e P ro v e n a b ility to c a p tu re m a rk e ts h a re fro m la rg e rb a n k s P re m ie rl o c a ly H e a d q u a rte re d C o m m u n ity B a n k fo rth e D e la w a re V a le y C o n s o lid a tin g ~ 2 5 % o fc o m b in e d b ra n c h in fra s tru c tu re In c re m e n ta l re -in v e s tm e n to f~ $ 3 2 m ilio n (5 0 % o fb ra n c h o p tim iz a tio n )in te c h n o lo g y a c ro s s th e fra n c h is e to c re a te to p -tie rc u s to m e re x p e rie n c e a n d b a c k -o fic e e fic ie n c ie s L a rg e S c a le D e liv e ry T ra n s fo rm a tio n 8.0 % E P S a c c re tio n 4.3 % d ilu tio n to T B V /3.7 y e a re a rn b a c k 1 9 % IR R C re a te s o p p o rtu n ity to g e n e ra te % C o re & S u s ta in a b le R O A o n $ b n in a s s e ts F a v o ra b le F in a n c ia l Im p a c t R e v e n u e o p p o rtu n itie s a re q u a n tifie d b u tn o tin c lu d e d in b a s e m o d e l P o te n tia l to g e n e ra te $ m ilio n o fp o te n tia l a d d itio n a l a n n u a l re v e n u e re s u ltin g in % E P S a c c re tio n & 2.9 y e a rt B V e a rn b a c k S ig n ific a n tr e v e n u e O p p o rtu n itie s C o m b in a tio n p ro v id e s th e s c a le to v a u ltp a s th e $ 1 0 b ilio n re g u la to ry h u rd le in a n e c o n o m ic a l w a y % E P S a c c re tio n w ith o u tim p a c to fd u rb in V a u lto v e r$ 1 0 B ilio n T h o ro u g h in te g ra tio n a n d c o n v e rs io n p la n n in g o v e r7 0 + d a y p e rio d S tro n g re g u la to ry s ta n d in g s WS F S s u c c e s s fu l re c o rd o fm & A ;M a n a g e m e n t s in tim a te k n o w le d g e o fc o m b in e d m a rk e ts L o w R is k T ra n s a c tio n\n23 S u m m a ry 1 7 T h e WS F S c o m b in a tio n w ith B e n e fic ia l a n d D e liv e ry T ra n s fo rm a tio n o fth e re s u ltin g $ 1 3 b ilio n a n d g ro w in g fra n c h is e c re a te s th e o n ly c o m m u n ity b a n k in th e d e m o g ra p h ic a ly -ro b u s td e la w a re V a le y w ith th e s c a le a n d d e liv e ry c a p a b ilitie s to d riv e s u s ta in a b le to p -q u in tile p e rfo rm a n c e a to ra b o v e WS F S c u re n tr O A A a n d R O A T C E m e tric s.\n24 A p p e n d ix\n25 T h o ro u g h D u e D ilig e n c e P ro c e s s & In te g ra tio n P la n 1 9 O v e rv ie w C re d itq u a lity a n d B a la n c e S h e e tc o m p lia n c e,r e g u la to ry,a n d R is k In te g ra tio n P la n n in g -C u re n ta lig n m e n to fp la tfo rm s -F irs th a lf F u l In te g ra tio n -S e c o n d h a lf C o m p re h e n s iv e d u e d ilig e n c e c o o rd in a te d a n d le d b y k e y e x e c u tiv e s K e y fo c u s a re a s :C re d itq u a lity,c o m p lia n c e,r is k,t e c h n o lo g y,o p e ra tio n s,l e g a l,a n d R e g u la to ry F u l e n g a g e m e n to fe x te rn a l c o u n s e l,fin a n c ia l a d v is o rs,a n d 3 rd p a rtie s c o n s u lta n ts fo rlo a n re v ie w,in te g ra tio n,a n d D e liv e ry T ra n s fo rm a tio n S tro n g c re d itc u ltu re a n d d is c ip lin e d u n d e rw ritin g a lig n e d w ith o u rs ta n d a rd s L o a n re v ie w e n c o m p a s s e d $ 1.4 B ;5 5 % o fto ta l c o m m e rc ia lo a n s E v a lu a te d c ro s s -s e c tio n o flo a n s fo c u s in g o n p e rc e iv e d h ig h e ris k a re a s E s tim a te d g ro s s c re d itm a rk o f$ m m o r1.9 % E s tim a te d in te re s tra te m a rk d o w n o f$ m m o r3.4 % ~ $ m m in liq u id ity to b e re d e p lo y e d a t~ b p s p re m iu m S tro n g re g u la to ry s ta n d in g in c lu d in g a n O u ts ta n d in g C R A R a tin g S tro n g c o m p lia n c e a n d ris k s y s te m s $ 1 1 m ilio n ($ m ilio n D u rb in re la te d )a n n u a l p re -ta x e a rn in g s lo s s b e g in n in g in Q 3 o f E s ta b lis h c o re p ro je c te a m C o m p le te d e ta ile d lin e o fb u s in e s s re v ie w s a n d p la n n in g D e v e lo p a d e ta ile d ro a d m a p fo rit a n d o p e ra tio n s s y s te m in te g ra tio n O u tlin e tim e lin e a n d d e ta ils o fd e liv e ry T ra n s fo rm a tio n a n d T e c h n o lo g y In v e s tm e n t A lig n s y s te m s a c ro s s k e y fo c u s a re a s U p d a te p o lic y a n d p ro c e d u re s In itia te u p d a te d m o n ito rin g a n d c o n tro ls Im p le m e n td e liv e ry T ra n s fo rm a tio n a n d te c h n o lo g y in v e s tm e n tp la n E x e c u te o n in te g ra tio n s tra te g y a n d c u s to m e rc o m m u n ic a tio n s M a n a g e a c q u ire d o p e ra tio n\n26 H ig h Q u a lity L o a n & D e p o s itp o rtfo lio B a s e d o n Q B a la n c e S h e e ts 2 0 C o m b in e d T o ta l L o a n s :$ b n Y ie ld o n L o a n s :5.3 1 % T o ta l L o a n s :$ b n Y ie ld o n L o a n s :4.5 0 % T o ta l L o a n s :$ b n Y ie ld o n L o a n s :4.9 9 % D e p o s its :$ b n C o s to fd e p o s its :0.6 5 % D e p o s its :$ b n C o s to fd e p o s its :0.5 9 % D e p o s its :$ b n C o s to fd e p o s its :0.6 3 % N o n in te re s t-b e a rin g 2 7 % In te re s t-b e a rin g D e m a n d 1 8 % M M D A /S a v in g s 3 6 % T im e 1 3 % B ro k e re d 6 % N o n in te re s t-b e a rin g 2 1 % In te re s t-b e a rin g D e m a n d 2 1 % M M D A /S a v in g s 3 8 % T im e 1 6 % B ro k e re d 4 % N o n in te re s t-b e a rin g 1 4 % In te re s t-b e a rin g D e m a n d 2 6 % M M D A /S a v in g s 4 1 % T im e 1 9 % C & I(a )5 3 % C R E 2 4 % C o n s tru c tio n 6 % R e s id e n tia l 5 % C o n s u m e r1 2 % C & I(a )2 4 % C R E 3 3 % S m a l B u s in e s s L e a s e s 4 % C o n s tru c tio n 3 % R e s id e n tia l 2 4 % C o n s u m e r1 2 % C & I(a )4 0 % C R E 2 8 % S m a l B u s in e s s L e a s e s 2 % C o n s tru c tio n 5 % R e s id e n tia l 1 3 % C o n s u m e r1 2 % (a )In c lu d e s o w n e ro c c u p ie d C R E N o te :D o e s n o tin c lu d e p u rc h a s e a c c o u n tin g a d ju s tm e n ts\n27 2 1 T ie r1 C o m m o n R a tio T o ta l C a p ita l R a tio T ie r1 R a tio L e v e ra g e R a tio C a p ita l O v e rv ie w We l C a p ita liz e d 6.5 % We l C a p ita liz e d 8.0 % We l C a p ita liz e d % We l C a p ita liz e d 5.0 % % % % WS F S 6 /3 0 / B N C L 6 /3 0 / P ro F o rm a a tc lo s e % % % WS F S 6 /3 0 / B N C L 6 /3 0 / P ro F o rm a a tc lo s e % % % WS F S 6 /3 0 / B N C L 6 /3 0 / P ro F o rm a a tc lo s e % % 9.5 % WS F S 6 /3 0 / B N C L 6 /3 0 / P ro F o rm a a tc lo s e H o ld in g C o m p a n y R a tio s\n28 2 2 S u p p o rts C o re R O A T C E fig u re s o n p a g e 1 5 S ix m o n th s e n d e d J u n e 3 0, WS F S B N C L C a lc u la tio n o fre tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity :G A A P n e t(lo s s )in c o m e $ 6 6,0 9 0 $ 2 1,7 2 9 P lu s :T a x e fe c te d a m o rtiz a tio n o fin ta n g ib le a s s e ts 1, N e ta n g ib le in c o m e (n o n -G A A P )$ 6 7,1 7 4 $ 2 2,0 2 0 A v e ra g e s h a re h o ld e rs ' e q u ity $ 7 4 1,6 5 2 $ 1,0 1 5,9 8 4 L e s s :a v e ra g e g o o d w il a n d in ta n g ib le a s s e ts 1 8 7, ,2 8 9 N e ta v e ra g e ta n g ib le c o m m o n e q u ity $ 5 5 3,7 6 1 $ 8 4 4,6 9 5 R e tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity (n o n -G A A P )2 4.5 % 5.2 % C a lc u la tio n o fc o re re tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity :G A A P n e t(lo s s )in c o m e $ 6 6,0 9 0 $ 2 1,7 2 9 P lu s (le s s ):P re -ta x a d ju s tm e n ts :S e c u ritie s g a in s,u n re a liz e d g a in s,re c o v e ry o f/p ro v is io n fo rfra u d lo s s,a n d c o rp o ra te d e v e lo p m e n tc o s ts (1 6,5 7 5 )(1 2 3 )(P lu s )/le s s :T a x im p a c to fp re -ta x a d ju s tm e n ts 3, N o n -G A A P n e tin c o m e 5 3, ,6 3 5 P lu s :T a x e fe c te d a m o rtiz a tio n o fin ta n g ib le a s s e ts 1, C o re n e ta n g ib le in c o m e (n o n -G A A P )$ 5 4,5 6 2 $ 2 1,9 2 6 N e ta v e ra g e ta n g ib le c o m m o n e q u ity $ 5 5 3,7 6 1 $ 8 4 4,6 9 5 C o re re tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity (n o n -G A A P )1 9.9 % 5.2 % F Y 1 7 F Y 1 6 F Y 1 5 F Y 1 4 F Y 1 3 F Y 1 2 R e p o rte d (G A A P )R O A N o n -re c u rin g P C Ia c c re tio n (0.0 2 )L o n g -te rm c re d itn o rm a liz a tio n (0.0 0 )0.0 4 (0.0 0 )(0.0 9 )(0.0 5 )0.3 3 S e c u ritie s G a in s (0.0 2 )(0.0 3 )(0.0 2 )(0.0 1 )(0.0 5 )(0.3 3 )S A S C O w rite u p (0.0 6 ) C o rp o ra te D e v e lo p m e n te x p e n s e D e b te x tin g u is h m e n t F H L B D iv id e n d (0.0 1 )B O L I(0.0 2 )F ra u d L o s s C o n trib u tio n T a x N o rm a liz a tio n (0.0 1 )0.0 2 (0.1 8 )(0.0 1 )0.0 0 C o re & S u s ta in a b le R O A S u p p o rts C o re a n d S u s ta in a b le R O A d e ta il o n p a g e 1 3 N o n -G A A P F in a n c ia l In fo rm a tio n\n29 T B V D ilu tio n R e c o n c ilia tio n 2 3 A g g re g a te P e rs h a re WS F S P ro je c te d T B V 1 2 /3 1 /1 8 $ 6 3 3,2 0 3 $ E q u ity C o n s id e ra tio n 1,2 5 3,0 8 5 L e s s G o o d w il fro m S e le r's O n e T im e C o s ts 1 2,7 4 0 L e s s T o ta l A d d itio n a l In ta n g ib le s C re a te d 7 6 4,3 6 0 L e s s B u y e r's O n e T im e C o s ts 7 8,9 2 1 P ro F o rm a T B V $ 1,0 3 0,2 6 7 $ D ilu tio n (4.3 %)T a n g ib le B o o k V a lu e D ilu tio n\n30 A d d itio n a l In fo rm a tio n\n31 O v e rv ie w o fm a rk to M a rk e ta d ju s tm e n ts 2 5 P ro je c te d E s tim a te d M a rk E s tim a te d M a rk C a te g o ry B a la n c e S h e e ts iz e % $ L ife (Y e a rs )M e th o d H T M In v e s tm e n ts F a irv a lu e E s tim a te $ 9 2 4,6 6 9 (1.1 9 %)($ 1 0,9 9 8 )3.1 0 S tra ig h tl in e Im p a c to fc o re D e p o s itin ta n g ib le 3,5 1 3, % 6 1, S tra ig h tl in e Im p a c to fl o a n In te re s tf a irv a lu e E s tim a te 4,2 3 5,8 3 7 (3.4 0 %)(1 4 4,0 1 8 )4.5 0 S tra ig h tl in e Im p a c to fl o a n G e n e ra l C re d itf a irv a lu e E s tim a te 4,2 3 5,8 3 7 (1.2 5 %)(5 2,9 4 8 )3.5 0 S tra ig h tl in e Im p a c to fl o a n S p e c ific C re d itf a irv a lu e E s tim a te 4,2 3 5,8 3 7 (0.6 5 %)(2 7,5 3 3 )0.0 0 S tra ig h tl in e Im p a c to ft im e D e p o s its F a irv a lu e E s tim a te 4,3 5 8,0 1 8 (0.2 4 %)(1 0,4 4 6 )1.8 0 S tra ig h tl in e Im p a c to fb o ro w in g s F a irv a lu e E s tim a te 6 2 5,6 3 4 (1.7 6 %)(1 0,9 8 8 )2.1 0 S tra ig h tl in e\n32 2 6 S u m m a ry M o d e lin g A s s u m p tio n s & K e y D a te s L e g a l C lo s e :1 Q s u b je c to c u s to m a ry s h a re h o ld e ra n d re g u la to ry a p p ro v a ls S y s te m s C o n v e rs io n :A u g u s t P h a s in g o fc o s ts a v in g s :$ m m c o s ts a v in g s p h a s e d a t5 0 %,9 0 %,a n d % fo r , ,a n d D e liv e ry T ra n s fo rm a tio n : In c re m e n ta l in v e s tm e n to f$ m ilio n o v e rth e n e x t5 y e a rs ($ 1 3 m m C a p E x,$ 1 9 m m O p E x ) In v e s tm e n tfu n d e d fro m ~ 5 0 % o fth e s a v in g s fro m c o n s o lid a tin g ~ 2 5 % o fth e c o m b in e d b ra n c h n e tw o rk (3 Q ) C o s ts o fc ro s s in g $ 1 0 B :$ m ilio n ($ m m fro m D u rb in )p re -ta x e a rn in g s lo s s a n n u a ly s ta rtin g 3 Q In v e s tm e n tp o rtfo lio & L iq u id ity R e p o s itio n in g : L e v e ra g in g B N C L s F e d fu n d s in v e s tm e n ts to p a y o fw h o le s a le fu n d in g R e p o s itio n in v e s tm e n tp o rtfo lio to a lig n w ith WS F S d u ra tio n ris k a n d y ie ld\n33 2 7 S u m m a ry M o d e lin g A s s u m p tio n s & K e y D a te s R e v e n u e S y n e rg ie s (n o tm o d e le d ):$ m ilio n o fp o te n tia l a d d itio n a l a n n u a l re v e n u e.s ta rtin g 1 Q F e e In c o m e :~ $ m m o fa n n u a l fe e in c o m e th ro u g h w e a lth m a n a g e m e n t,m o rtg a g e,a n d tra d itio n a l b a n k in g : We a lth :WS F S h a s a fu l s c a le,fu l p ro d u c twe a lth o fe rin g w ith $ 1 9 B o fa s s e ts U n d e ra d m in is tra tio n,in c lu d in g ~ $ 2 B o fa s s e ts U n d e rm a n a g e m e n th ro u g h WS F S In v e s tm e n ts,c y p re s s C a p ita l M a n a g e m e n t,a n d We s tc a p ita l M a n a g e m e n t.a d d itio n a ly,we a lth C lie n tm a n a g e m e n t(fo rm e rly P riv a te B a n k in g )h a s ~ $ m m in lo a n s a n d ~ $ m m in d e p o s its M o rtg a g e :T ra n s itio n fro m p rim a rily 3 rd p a rty o rig in a tio n s to o rig in a te -to -s e l m o d e l.ws F S g e n e ra te s o v e r1 0 x th e m o rtg a g e o rig in a tio n s p e rb ra n c h a s B N C L B a n k in g :L e v e ra g e WS F S S B A 7 a,c a s h M a n a g e m e n tc a p a b ilitie s a n d o v e ra l h ig h -to u c h s e rv ic e m o d e l In te re s tin c o m e :~ $ m ilio n in a d d itio n a l a n n u a l in te re s tin c o m e H ig h e ry ie ld s th ro u g h in c re a s e d re la tio n s h ip -b a s e d C & Ia s s e ts WS F S C & Ia s s e ts y ie ld % v s B N C L C & Ia s s e ts o f4.7 1 % WS F S h a s ~ 3 x m o re C & Ire la tio n s h ip m a n a g e rs th a n B N C L.A v e ra g e p o rtfo lio s iz e p e re la tio n s h ip m a n a g e ris ~ 3 0 % la rg e r WS F S C re d itc a rd e x p a n d s B N C L p ro d u c to fe rin g a n d is e x p e c te d to e n h a n c e y ie ld,w h ile B N C L le a s in g p ro d u c ts c a n b e o fe re d to WS F S C u s to m e rs a n d m a rk e ts\n34 1.5 0 % % % % % % % % % % % % % % % % % O u tlo o k /Y T D A c tu a l P ro F o rm a (2 ) P ro F o rm a (2 ) P ro F o rm a (2 )C o re R O A With R e v e n u e S y n e rg ie s 2 8 C o re R e tu rn o n A v e ra g e A s s e ts M o d e le d C o re R e tu rn o n A v e ra g e A s s e ts (1 )O u tlo o k (1 )E x c lu d e s o n e -tim e tra n s a c tio n c o s ts (2 )In c lu d e s im p a c to fc E C L /L e a s e s P ro fo rm a s re p re s e n to rig in a l m e rg e ra s s u m p tio n s a n n o u n c e d o n 8 /8 / w h ic h in c lu d e th e a s s u m p tio n s s e tfo rth o n p a g e s 2 6 a n d 2 7 Y T D A c tu a l\n35 D e liv e ry T ra n s fo rm a tio n 2 9 C u s to m e r-fa c in g P la tfo rm /In fra s tru c tu re T o d a y WS F S E v e ry d a y P a y (P 2 P )A p p le P a y WS F S M o b ile C a s h (C a rd le s s A T M )S n a p s h o td e p o s ito n lin e A c c o u n to p e n in g M o b ile a n d O n lin e B a n k in g n C in o C o m m e rc ia l L o a n O rig in a tio n O ra c le C lo u d D o c u m e n tim a g in g a n d Wo rk flo w s E -S ig n a tu re F u tu re A d d itio n s Z e le (1 H )P e rs o n a l F in a n c ia l M a n a g e m e n t(1 H )D y n a m ic D ia lo g u e G u id e s (1 H )V irtu a l P e rs o n a l B a n k e r(2 H )C u s to m e re -L e a rn in g m o d u le s (2 H )U n iv e rs a l/m o b ile A c c o u n to p e n in g D a ta Wa re h o u s e /P re d ic tiv e A n a ly tic s A s s o c ia te E -L e a rn in g T ra in in g In te lig e n two rk flo w A u to m a tio n O m n i -C h a n n e l P la tfo rm /U n iv e rs a l C R M In c re m e n ta l in v e s tm e n to f$ 3 2 m ilio n o v e rth e n e x t5 y e a rs in to d ig ita l d e liv e ry in itia tiv e s,re p re s e n tin g ~ 3 x WS F S n o n -ro u tin e a n n u a l te c h n o lo g y e x p e n s e s WS F S h a s a lo n g h is to ry o fin n o v a tio n h ig h lig h te d b y o u rc a s h C o n n e c tb u s in e s s a n d o u rs tro n g p a rtn e rs h ip s S o F i,s p rin g E Q,L e n d K e y B e lo w a re e x a m p le s o fe x is tin g d ig ita l c a p a b ilitie s a n d in itia ly p la n n e d in v e s tm e n ts to e x p a n d o u ro fe rin g s a s p a rto fo u rd e liv e ry T ra n s fo rm a tio n :\n36 WS F S F in a n c ia l C o rp o ra tio n 2 Q In v e s to ru p d a te S e p te m b e r1 9,\n37 T a b le o fc o n te n ts R e p o rte d F in a n c ia l R e s u lts O u tlo o k T h e WS F S F ra n c h is e 2 Q H ig h lig h ts S e le c te d F in a n c ia l In fo rm a tio n A p p e n d ix 1 M a n a g e m e n tt e a m A p p e n d ix 2 B u s in e s s M o d e l A p p e n d ix 3 N o n -G A A P F in a n c ia l In fo rm a tio n P a g e 3 2 P a g e 3 6 P a g e 3 9 P a g e 3 3 P a g e 5 0 P a g e 6 1 P a g e 6 3 P a g e\n38 R e p o rte d F in a n c ia l R e s u lts 2 Q R e p o rte d R e s u lts : R e p o rte d n e tin c o m e o f$ m ilio n,o r$ p e rd ilu te d c o m m o n s h a re fo r2 Q 1 8 c o m p a re d to n e tin c o m e o f$ m ilio n,o r$ p e rs h a re fo r2 Q 1 7 a n d $ m ilio n,o r$ p e rs h a re fo r1 Q 1 8 N e tre v e n u e w a s $ m ilio n,a n in c re a s e o f$ m ilio n,o r1 2 %,fro m 2 Q 1 7 N e tin te re s tin c o m e w a s $ m ilio n,a n in c re a s e o f$ 6.7 m ilio n,o r1 2 %,fro m 2 Q 1 7 ;a n d n o n in te re s tin c o m e w a s $ m ilio n,a n in c re a s e o f$ 3.3 m ilio n,o r1 0 %,fro m 2 Q 1 7 N o n in te re s te x p e n s e s w e re $ m ilio n,a n in c re a s e o f$ 5.1 m ilio n,o r1 0 %,fro m 2 Q E P S $ N IM % R O A % F e e In c o m e /T o ta l R e v e n u e % R O T C E % E fic ie n c y R a tio %\n39 2 Q H ig h lig h ts\n40 2 Q H ig h lig h ts 2 Q C o re (1 )R e s u lts :S tro n g O p e ra tin g R e s u lts B a la n c e d L o a n P o rtfo lio G ro w th C o n tin u e s N e tlo a n s in c re a s e d $ 7 9 m ilio n o r7 %(a n n u a liz e d )fro m 1 Q 1 8.T h e in c re a s e in c lu d e s a $ m ilio n,o r7 %(a n n u a liz e d ),in c re a s e in c o m m e rc ia l a n d in d u s tria l (C & I)lo a n s a n d a $ m ilio n,o r2 5 %(a n n u a liz e d ),in c re a s e in c o n s u m e rlo a n s.n e tlo a n s in c re a s e d $ m ilio n,o r6 %,fro m 2 Q E x c lu d in g th e in te n tio n a l d e c re a s e o f$ m ilio n in re s id e n tia l m o rtg a g e s,n e tlo a n s in c re a s e d $ m ilio n,o r8 %,in c lu d in g a 2 6 % in c re a s e in c o n s u m e rlo a n s a n d a 7 % in c re a s e in C & Ilo a n s 3 4 E P S $ N IM % R O A % F e e In c o m e /T o ta l R e v e n u e % R O T C E % E fic ie n c y R a tio %(1 )T h e s e a re n o n -G A A P fin a n c ia l m e a s u re s a n d s h o u ld b e c o n s id e re d a lo n g w ith re s u lts p re p a re d in a c c o rd a n c e w ith G A A P,a n d n o ta s a s u b s titu te fo rg A A P re s u lts.s e e A p p e n d ix 3 fo ra re c o n c ilia tio n to G A A P fin a n c ia l in fo rm a tio n.($ in m ilio n s )2 Q Q C h a n g e C o re (1 )N e tr e v e n u e $ $ % R e fle c ts s tro n g o rg a n ic g ro w th N e tin te re s tin c o m e $ $ % R e s u lto fc o n tin u e d s tro n g o rg a n ic g ro w th,p ric in g d is c ip lin e a n d b a la n c e s h e e tm ix m a n a g e m e n t.p ro v id e s fle x ib ility to re s p o n d to c o m p e titiv e p ric in g e n v iro n m e n tn e tin te re s tm a rg in % % b p s C o re (1 )F e e In c o m e $ $ % S p re a d a c ro s s s e v e ra l b u s in e s s lin e s C o re E fic ie n c y R a tio % %-1.3 % 3 p e rc e n ta g e p o in ts o fp o s itiv e o p e ra tin g le v e ra g e\n41 2 Q H ig h lig h ts C u s to m e rf u n d in g R e fle c ts C o n tin u e d C o re D e p o s its tre n g th T o ta l c u s to m e rfu n d in g in c re a s e d $ m ilio n,o r7 %(a n n u a liz e d ),fro m 0 3 /3 1 /1 8,h ig h lig h te d b y a $ m ilio n,o r1 8 %(a n n u a liz e d ),in c re a s e in n o n in te re s tb e a rin g a c c o u n ts C o re d e p o s its w e re 8 6 % o fto ta l c u s to m e rd e p o s its,a n d n o -a n d lo w -c o s tc h e c k in g d e p o s ita c c o u n ts re p re s e n te d a ro b u s t4 8 % o fto ta l c u s to m e rd e p o s its a t6 /3 0 /1 8.T h e s e c o re d e p o s its p re d o m in a n tly re p re s e n tlo n g e r-te rm,le s s p ric e -s e n s itiv e c u s to m e re la tio n s h ip s,w h ic h a re e s p e c ia ly v a lu a b le in a ris in g ra te e n v iro n m e n t C e rtific a te s o fd e p o s its (C D s )in c re a s e d $ m ilio n,o r3 0 %(a n n u a liz e d ),in Q ,a s w e c o n tin u e to ta k e th e o p p o rtu n ity to a tra c tlo n g e r-te rm fix e d -ra te fu n d in g a n d le n g th e n o u ro v e ra l fu n d in g d u ra tio n in a ris in g -ra te e n v iro n m e n tc re d itc o s ts T o ta l c re d itc o s ts (p ro v is io n fo rlo a n lo s s e s,lo a n w o rk o u te x p e n s e s,o R E O e x p e n s e s,a n d o th e rc re d itc o s ts )w e re $ 3.2 m ilio n fo r2 Q ,a n im p ro v e m e n tfro m $ 4.1 m ilio n d u rin g 1 Q a n d a n in c re a s e fro m $ 2.3 m ilio n d u rin g 2 Q C re d itq u a lity R e m a in s S ta b le a n d S tro n g T o ta l p ro b le m a s s e ts im p ro v e d to $ m ilio n,a d e c re a s e c o m p a re d to $ m ilio n a t0 3 /3 1 /1 8 D e lin q u e n c ie s (in c lu d in g n o n p e rfo rm in g d e lin q u e n c ie s )w e re $ m ilio n,o r0.5 4 %,o fg ro s s lo a n s,c o m p a re d to $ m ilio n,o r0.5 6 %,o fg ro s s lo a n s a t0 3 /3 1 /1 8 T o ta l N P A s im p ro v e d $ 1.7 m ilio n,o r3 %,to $ m ilio n a t6 /3 0 /1 8,c o m p a re d to $ m ilio n a t0 3 /3 1 /1 8.N P A s to to ta l a s s e ts ra tio w a s %,c o m p a re d to % a t0 3 /3 1 /1 8 N e tc h a rg e o fs w e re $ 2.3 m ilio n,o r0.1 9 %(a n n u a liz e d ),o fa v e ra g e g ro s s lo a n s,a n im p ro v e m e n tfro m $ 3.4 m ilio n,o r0.2 9 %(a n n u a liz e d ),in 1 Q\n42 O u tlo o k\n43 O u tlo o k M id -Y e a ru p d a te to F u l -Y e a ro u tlo o k 3 7 M id -to h ig h -s in g le -d ig itlo a n a n d d e p o s itg ro w th M id -Y e a ru p d a te : N e tin te re s tm a rg in %s M id -Y e a ru p d a te : % A s s u m e s o n e ra te in c re a s e in J u n e T h e im p a c to fa n y a d d itio n a l ra te in c re a s e s a n d th e m a g n itu d e a n d la g o fris in g d e p o s itb e ta s w ilik e ly d e te rm in e o u ra b ility to g e to th e u p p e re n d o fth is ra n g e fo rth e fu l y e a r T o ta l c re d itc o s ts (p ro v is io n,lo a n w o rk o u te x p e n s e s,o R E O e x p e n s e s,a n d o th e rc re d itre s e rv e s )b e tw e e n $ 1 3 $ 1 5 m ilio n fo rth e y e a ro ra p p ro x im a te ly 2 0 b p s o fa s s e ts.c re d itc o s ts c a n b e u n e v e n q u a rte rto q u a rte rm id -Y e a ru p d a te : L o w d o u b le -d ig itn o n -in te re s tin c o m e g ro w th M id -Y e a ru p d a te : A s s u m e s n o a d d itio n a l fe e -b a s e d a c q u is itio n s E fic ie n c y ra tio s lig h tly u n d e r6 0 % M id -Y e a ru p d a te : E fe c tiv e ta x ra te o fa p p ro x im a te ly 2 3 %.T h is ta x ra te m a y flu c tu a te q u a rte rto q u a rte rd u e to e q u ity e x e rc is e a c tiv ity a n d o th e rfa c to rs M id -Y e a ru p d a te : %\n44 0.9 1 % % % % % % % % % % % % % % F Y 1 3 C o re & S u s ta in a b le F Y 1 4 C o re & S u s ta in a b le F Y 1 5 C o re & S u s ta in a b le F Y 1 6 C o re & S u s ta in a b le F Y 1 7 C o re & S u s ta in a b le F Y 1 8 O u tlo o k 3 8 C o re & S u s ta in a b le (1 )R O A C o re & S u s ta in a b le R O A (1 )G A A P R O A % % % % % O u tlo o k (1 )C o re a n d S u s ta in a b le R O A is a n o n -G A A P m e a s u re th a td iv id e s (i)n e tin c o m e d e te rm in e d in a c c o rd a n c e w ith G A A P a n d a d ju s tin g itb y ta k in g c o re n e tin c o m e a n d n o rm a liz in g fo rlo n g -te rm c re d itc o s ts,n o n -re c u rin g a c c re tio n fro m p u rc h a s e d c re d itim p a ire d lo a n s ( P C I ),a n d a n o rm a l ta x ra te b y (i)a v e ra g e a s s e ts.s e e A p p e n d ix 3 fo rg A A P re c o n c ilia tio n.a d ju s te d fo rn e w c o rp o ra te ta x ra te % B e g a n w ith C o re a n d S u s ta in a b le R O A o f0.7 0 % in 1 Q % in 2 Q\n45 T h e WS F S F ra n c h is e\n46 L a rg e s tin d e p e n d e n tb a n k a n d tru s tc o.h Q in th e D e l.v a le y $ 7.1 b ilio n in a s s e ts $ b ilio n in fid u c ia ry a s s e ts,in c lu d in g $ 2.3 b ilio n in a s s e ts u n d e rm a n a g e m e n t 7 7 o fic e s F o u n d e d in ,WS F S is o n e o fth e te n o ld e s tb a n k s in th e U.S. M a jo rb u s in e s s lin e s R e ta il C o m m e rc ia l We a lth M a n a g e m e n t(1 ) C a s h C o n n e c t (A T M c a s h a n d re la te d b u s in e s s e s )(1 )T h e WS F S F ra n c h is e 4 0 (1 )We a lth a n d C a s h C o n n e c tb u s in e s s e s c o n d u c te d n a tio n w id e\n47 *M o s tre c e n tly a v a ila b le F D IC d a ta T h e WS F S F ra n c h is e 4 1 D e p o s its o ft ra d itio n a l B a n k s in th e S ta te o fd e la w a re J u n e 3 0, *R a n k In s titu tio n B ra n c h C o u n tt o ta l D e p o s its in M a rk e tt o ta l M a rk e ts h a re G ro w th G ro w th C A G R M & T B a n k C o rp (N Y ) ,0 6 3, % 2 9 5, % % 2 P N C F in a n c ia l S e rv ic e G ro u p (P A )3 8 4,3 8 4, % 3 0 1, % % 3 WS F S F in a n c ia l C o rp (D E )3 4 3,6 9 0, % 2 2 5, % % 4 We ls F a rg o & C o (C A )2 0 2,2 6 3, % 9 2, % % 5 T D B a n k (C a n a d a ) ,1 5 1, % 1 8 3, % % 6 C itiz e n s (R B S -S c o tla n d )2 3 1,1 3 7, % 1 8, % % 7 B a n k o fa m e ric a (N C ) , % 4 0 9, % % 8 F u lto n F in a n c ia l C o rp.(p A ) , % 4 8, % % 9 A rtis a n s B a n k (D E ) , % 1 8, % % 1 0 C o u n ty B a n k (D E ) , % 8, % % T o p 1 0 S ta te o fd e la w a re B a n k s $ 2 0,7 0 7, % 1,6 0 1, % % (1 )M & T B a n k d e p o s its e x c lu d e s a $ 1.1 b ilio n in c re a s e in th e Wilm in g to n T ru s to fic e.m & T re p o rte d g ro w th is %.(2 )E x c lu d e s e s tim a te d o u to fm a rk e td e p o s its o ft D b a n k.(3 )T o p 1 0 D e la w a re B a n k s h o u s e 9 6 % o fa l tra d itio n a l d e p o s its in th e s h a re.\n48 T h e WS F S F ra n c h is e P A E x p a n s io n 4 2 S tro n g p o s itio n a s o n e o fth e fe w re m a in in g s u p e r-c o m m u n ity b a n k s in th e a tra c tiv e a n d ra p id ly c o n s o lid a tin g s o u th e a s te rn P A m a rk e ts (1 )S o u rc e :F D IC (2 )B a s e d o n c u s to m e ra d d re s s o fd e p o s it.a s o fj u n e 3 0 fo rth e re s p e c tiv e y e a r(3 )In c lu d e s o n e lo c a tio n (We s tc a p ita l)in P h ila d e lp h ia,p A F ig u re s a re a s o f6 /3 0 / & 6 /3 0 / S o u th e a s te rn P A -C h e s te r,d e la w a re & M o n tg o m e ry C o u n tie s C h a n g e M a rk e ts h a re (1 )1.8 6 % % % L o a n s (2 )$ B $ M % D e p o s its (2 )$ B $ M % L o c a tio n s (3 ) H o u s e h o ld s (2 )1 8, , % O v e rth e p a s t5 y e a rs,ws F S h a s s u c c e s s fu ly e x p a n d e d its fra n c h is e in to P e n n s y lv a n ia th ro u g h : D e n o v o b ra n c h e s ;h irin g lo c a le n d e rs A c q u is itio n o fa ra y /A ro w A c q u is itio n o fa lia n c e B a n k A c q u is itio n o fp e n n L ib e rty B a n k A c q u is itio n o fwe s tc a p ita l M a n a g e m e n t\n49 T h e WS F S F ra n c h is e P A E x p a n s io n 4 3 D e p o s its o ft ra d itio n a l B a n k s in C h e s te r,d e la w a re a n d M o n tg o m e ry C o u n tie s in P e n n s y lv a n ia J u n e 3 0, *R a n k In s titu tio n B ra n c h C o u n tt o ta l D e p o s its in M a rk e tt o ta l M a rk e ts h a re G ro w th G ro w th C A G R We ls F a rg o B a n k 8 0 $ 1 0,9 7 5, % $ 9 7 7, % % 2 T D B a n k 4 6 $ 7,7 8 5, % $ 1,2 2 8, % % 3 C itiz e n s B a n k o fp e n n s y lv a n ia 7 9 $ 7,0 5 3, % $ 3 3 6, % % 4 P N C B a n k 4 4 $ 5,4 7 5, % $ 3 2 5, % % 5 B B & T 5 2 $ 3,0 7 1, % ($ 2 5 7,6 0 2 ) % % 6 T h e B ry n M a w rt ru s tc o m p a n y 3 2 $ 2,5 7 3, % $ 2 6 1, % % 7 B a n k o fa m e ric a 2 4 $ 2,4 1 8, % $ 9 9, % % 8 U n iv e s tb a n k a n d T ru s t2 1 $ 1,9 8 2, % $ 4 9 9, % % 9 S a n ta n d e rb a n k 3 7 $ 1,9 0 0, % $ 3 9, % % 1 0 K e y B a n k 3 2 $ 1,8 0 8, % ($ 7 1,7 8 3 ) % % 1 4 WS F S F in a n c ia l C o rp (1 )2 4 $ 1,0 5 5, % ($ 9 0,0 0 6 ) % % O th e rb a n k s $ 1 0,8 0 1, % $ 3 3 2, % % T o ta l o fth e 3 C o u n tie s $ 5 6,9 0 1, % $ 3,6 8 1, % % (1 )$ 9 0 m ilio n d e p o s itre d u c tio n fig u re in c lu d e s $ 2 9 M M o fd e p o s ita tritio n fro m th e P e n n L ib e rty a c q u is itio n,$ 3 1 M M o fh ig h -c o s tc D a tritio n fro m th e A lia n c e a c q u is itio n a n d $ 3 9 M M o fc u s to m e rd e p o s its th a tw e re a ty p ic a ly h ig h a t6 /3 0 /1 6\n50 T h e WS F S F ra n c h is e -A tra c tiv e M a rk e ts 4 4 S o u rc e s :S & P G lo b a l M a rk e tin te lig e n c e,u.s.c e n s u s B u re a u,z ilo w 1 N o te :Z ilo w H o m e V a lu e In d e x w a s n o ta v a ila b le fo rs u s s e x C o u n ty ;in fo rm a tio n s h o w n d e ta ils m e d ia n lis tin g p ric e in S u s s e x C o u n ty,d E , , , , , , , , ,0 0 0 S u s s e x K e n tn e w C a s tle D e la w a re C h e s te rm o n tg o m e ry P o p u la tio n D e la w a re S o u th e a s te rn P A -1 0, , , , , , , , , ,0 0 0 S u s s e x K e n tn e w C a s tle D e la w a re C h e s te rm o n tg o m e ry M e d ia n H o u s e h o ld In c o m e N a tio n a l A v e ra g e D e la w a re S o u th e a s te rn P A -5 0, , , , , , ,0 0 0 S u s s e x K e n tn e w C a s tle D e la w a re C h e s te rm o n tg o m e ry M e d ia n H o m e V a lu e N a tio n a l A v e ra g e D e la w a re S o u th e a s te rn P A D e la w a re S o u th e a s te rn P A 1-1 0, , , , , , , , ,0 0 0 S u s s e x K e n tn e w C a s tle D e la w a re C h e s te rm o n tg o m e ry N u m b e ro fb u s in e s s e s D e la w a re S o u th e a s te rn P A\n51 R e g io n a l E m p lo y m e n tc o m p o s itio n P h ila d e lp h ia -C a m d e n -Wilm in g to n M S A 4 5 C h a rtd a ta S o u rc e :B u re a u o fl a b o rs ta tis tic s :E m p lo y e e s o n n o n fa rm p a y ro ls b y in d u s try s u p e rs e c to r,p h ila d e lp h ia -C a m d e n -Wilm in g to n M S A,n o ts e a s o n a ly a d ju s te d ;J u ly (1 )U n e m p lo y m e n tra te is fo rth e S ta te o fd e la w a re,c h e s te rc o u n ty P A,D e la w a re C o u n ty P A,& M o n tg o m e ry C o u n ty P A (e q u a ly w e ig h te d ).U n a d ju s te d F e b ru a ry D iv e rs ity o fin d u s trie s d riv e s s ta b le & fa v o ra b le e m p lo y m e n tin o u rm a rk e ts U n e m p lo y m e n to f4.2 % (1 )M in in g,lo g g in g,a n d c o n s tru c tio n 4 % M a n u fa c tu rin g 6 % T ra d e,tra n s p o rta tio n,a n d u tilitie s 1 8 % In fo rm a tio n 2 % F in a n c ia l a c tiv itie s 7 % P ro fe s s io n a l a n d b u s in e s s s e rv ic e s 1 7 % E d u c a tio n a n d h e a lth s e rv ic e s 2 1 % L e is u re a n d h o s p ita lity 1 0 % O th e rs e rv ic e s 4 % G o v e rn m e n t1 1 %\n52 $ 3 2 $ 3 3 $ 3 3 $ 3 6 $ 4 0 $ 4 6 $ 1 9 $ 2 4 $ 2 6 $ 3 0 $ 3 6 $ 4 3 $ 1 4 $ 1 6 $ 1 8 $ 2 3 $ 2 7 $ % 3 5 % 3 4 % 3 5 % 3 4 % 3 6 % $ 0 $ 2 0 $ 4 0 $ 6 0 $ 8 0 $ $ T o ta l C o re (1 )F e e in c o m e $ in M ilio n s T ru s t& We a lth C a s h C o n n e c tb a n k S e g m e n tws F S S tra te g ic P la n g o a l o fe e (n o n -in te re s t)in c o m e to to ta l re v e n u e o f4 0 % b y 4 Q T h e WS F S F ra n c h is e D iv e rs ifie d & R o b u s tf e e In c o m e 4 6 % s re p re s e n tfe e (n o n -in te re s t)in c o m e /to ta l re v e n u e (1 )T h e s e a re n o n -G A A P fin a n c ia l m e a s u re s a n d s h o u ld b e c o n s id e re d a lo n g w ith re s u lts p re p a re d in a c c o rd a n c e w ith G A A P,a n d n o ta s a s u b s titu te fo rg A A P re s u lts.s e e A p p e n d ix 3 fo re c o n c ilia tio n to G A A P fin a n c ia l in fo rm a tio n.5 Y e a rc A G R T ru s t& We a lth :2 1 % C a s h C o n n e c t:1 8 % B a n k :8 %\n53 T h e WS F S F ra n c h is e WS F S We a lth A F u l -S e rv ic e We a lth M a n a g e m e n to fe rin g 4 7 N e tr e v e n u e o f$ m ilio n in 2 Q P re -ta x P ro fito f$ 5.1 m ilio n\n54 T h e WS F S F ra n c h is e C a s h C o n n e c t 4 8 L e a d in g p ro v id e ro fa T M v a u ltc a s h,a rm o re d c a rie rm a n a g e m e n t,c a s h fo re c a s tin g s e rv ic e s,in s u ra n c e a n d e q u ip m e n ts e rv ic e s A p p ro x im a te ly $ m ilio n in v a u ltc a s h m a n a g e d A p p ro x im a te ly 2 6,0 0 0 n o n -b a n k A T M s in a l 5 0 S ta te s V a u ltc a s h m a rg in p re s s u re o fs e tb y a d d itio n a l m a n a g e d s e rv ic e s O p e ra te s A T M s fo rws F S B a n k ;la rg e s tin -m a rk e ta T M fra n c h is e $ 1 0 m ilio n in n e tre v e n u e (fe e in c o m e le s s fu n d in g c o s ts )a n d $ 1.5 m ilio n in p re -ta x p ro fita b ility in 2 Q y e a rc A G R fo rn e tre v e n u e is % A ls o s e rv e s a s a n in n o v a tio n c e n te rfo rth e c o m p a n y,b o th e x p a n d in g c o re A T M o fe rin g s a n d a d d itio n a l p a y m e n t-,p ro c e s s in g -a n d s o ftw a re -re la te d a c tiv itie s ;e.g.,la u n c h e d WS F S M o b ile C a s h a lo w s C u s to m e rs to s e c u re ly w ith d ra w c a s h fro m A T M s b y u s in g th e irws F S M o b ile B a n k in g A p p G ro w in g s m a rts a fe p ip e lin e g e n e ra te d b y s e v e ra l n a tio n a l c h a n n e l p a rtn e rs th a ta re a c tiv e ly m a rk e tin g o u rp ro g ra m,in a d d itio n to a lm o s t2,0 0 0 s m a rts a fe s a s o f6 /3 0 /1 8,u p fro m ju s to v e r1 0 0 s a fe s a th e e n d o f\n55 E m b ra c in g In n o v a tio n a s a C a ta ly s tfo rg ro w th 4 9\n56 S e le c te d F in a n c ia l In fo rm a tio n\n57 C a s h C o n n e c t8 % In v e s tm e n ts 1 7 % B O L I< 1 % N o n -E a rn in g A s s e ts 6 % N e tl o a n s 6 9 % T h e WS F S F ra n c h is e -WS F S B a n k 5 1 A s s e ts $ 7.1 B ilio n ;N e tl o a n s $ 4.9 B ilio n A s s e tc o m p o s itio n J u n e 3 0, % 1 2 % 6 % 5 3 % 2 4 % C R E C & IR e s id e n tia l M o rtg a g e s C o n s u m e rc o n s tru c tio n C o m m e rc ia lo a n s c o m p ris e 8 3 % o fth e lo a n p o rtfo lio C & I(in c lu d in g o w n e r-o c c u p ie d re a l e s ta te ),th e la rg e s tc o m p o n e n t,m a k e s u p 5 3 % o fth e lo a n p o rtfo lio\n58 T o ta l F u n d in g $ 7.1 B ilio n ;C u s to m e rd e p o s its $ 5.0 B ilio n F u n d in g C o m p o s itio n J u n e 3 0, O th e rl ia b ilitie s 1 % Wh o le s a le D e p o s its 4 % B o ro w in g s 1 3 % E q u ity 1 1 % C u s to m e rd e p o s its 7 1 % N o n -in te re s td D A 2 8 % In te re s td D A 1 9 % M o n e y M a rk e t& S a v in g s 3 9 % T im e 1 4 % C o re d e p o s its re p re s e n t8 6 % o fto ta l c u s to m e rd e p o s its a n d n o n -in te re s ta n d v e ry lo w in te re s td D A (WA C 3 8 b p s )s ta n d a t4 8 % o fc u s to m e rfu n d in g T h e WS F S F ra n c h is e -WS F S B a n k 5 2\n59 T h e WS F S F ra n c h is e -B a la n c e d G ro w th 5 3 B a la n c e s h e e tc o m p o s itio n h a s re m a in e d s te a d y a s WS F S h a s g ro w n 5 3 % 5 3 % 2 4 % 2 3 % 9 % 5 % 1 0 % 1 3 % 4 % 6 % 0 1,0 0 0, ,0 0 0, ,0 0 0, ,0 0 0, ,0 0 0, ,0 0 0,0 0 0 J u n e 3 0, J u n e 3 0, L o a n C o m p o s itio n C & IC R E R e s id e n tia l M o rtg a g e C o n s u m e rc o n s tru c tio n 9 % 1 1 % 2 5 % 1 8 % 1 5 % 2 0 % 1 3 % 1 4 % 2 6 % 2 7 % 1 2 % 1 0 % 0 1,0 0 0, ,0 0 0, ,0 0 0, ,0 0 0, ,0 0 0, ,0 0 0, ,0 0 0, ,0 0 0,0 0 0 J u n e 3 0, J u n e 3 0, F u n d in g C o m p o s itio n E q u ity B o ro w in g s & O th e rn o n -In te re s td D A In te re s td D A M o n e y M a rk e t& S a v in g s T im e\n60 We l P o s itio n e d fo rr is in g R a te s A s o f6 /3 0 /1 8 (WS J P rim % )5 4 B a la n c e S h e e td riv e rs H ig h % o fv a ria b le /a d ju s ta b le ra te to ta lo a n p o rtfo lio :6 4 % H ig h % c o re d e p o s its :8 6 %;h ig h % n o n -in te re s tb e a rin g a n d lo w -in te re s td D A :4 8 % S o lid b ra n d a n d p o s itio n /WS F S is a m a rk e t p ric e le a d e r A s s u m e s lo n g -te rm h is to ric a l d e p o s itb e ta o f5 0 % (1 )WS F S IR R m o d e l e s tim a te s :S ta tic B a la n c e S h e e t/in s ta n ta n e o u s R a te S h o c k s 1 2 m o n th B P S C h a n g e (1 )N I% Im p a c tn I$ Im p a c t % m m % m m % m m % m m\n61 0.7 8 % % % % % % 1 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 8 O v e ra l C re d itt re n d s R e m a in S tro n g % % % % % % % % % % % 1 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 8 D e lin q u e n c ie s L a rg e R e la tio n s h ip (3 )D e lin q u e n c ie s (2 )/G ro s s L o a n s We ig h te d A v e ra g e R is k R a tin g (1 )(1 )1 0 p o in ts c a le ;1 is s u b s ta n tia ly ris k -fre e,1 0 is a lo s s.f ig u re s a re b a s e d o n lo a n o u ts ta n d in g s.h ig h p o in to f5.5 3 re p re s e n ts th e h ig h p o in ts in c e WS F S c o n v e rte d to a 1 0 p o in ts c a le in 1 Q 1 2.(2 )In c lu d e s n o n -a c c ru in g lo a n s (3 )O n e la rg e $ m ilio n,h ig h ly -s e a s o n a l re la tio n s h ip th a tw a s e x ite d in 3 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q % % 1 0 % 1 5 % 2 0 % 2 5 % 3 0 % 3 5 % 4 0 % 4 5 % 5 0 % 1 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 8 C la s s ifie d L o a n s C ritic iz e d L o a n s C ritic iz e d & C la s s ifie d L o a n s /T ie r-1 + A L L L N P A s /T o ta l A s s e ts H ig h p o in td u rin g th e c y c le o f3.0 3 % in 1 Q 1 2 H ig h p o in t d u rin g th e c y c le o f2.6 1 % in 3 Q 0 9 H ig h p o in td u rin g th e c y c le o f5.5 3 in 1 Q 1 2 H ig h p o in td u rin g th e c y c le o f:c ritic iz e d : % in 1 Q 1 0 C la s s ifie d :7 0.5 % in 3 Q 0 9\n62 L o a n P o rtfo lio C o m p o s itio n O u ts ta n d in g B a la n c e s a s o f6 /3 0 / N o in d u s try o rc R E c o n c e n tra tio n s in th e lo a n p o rtfo lio C o m m e rc ia l & In d u s tria l:$ b ilio n O w n e ro c c u p ie d C R E :$ b ilio n T o p 2 5 R e la tio n s h ip s ($ ):$ m ilio n T o p 2 5 R e la tio n s h ip s (% o fc & I/O O C R E p o rtfo lio ):2 0 % T o p 2 5 R e la tio n s h ip s (% o fc o m m e rc ia lo a n s ):1 1 % N o n O w n e ro c c u p ie d C R E $ b ilio n C o n s tru c tio n $ m ilio n T o p 2 5 R e la tio n s h ip s ($ ):$ m ilio n T o p 2 5 R e la tio n s h ip s (% o fc R E p o rtfo lio ):4 0 % T o p 2 5 R e la tio n s h ip s (% o fc o m m e rc ia lo a n s ):1 2 % O th e rs e rv ic e s (e x c e p tp u b lic A d m in is tra tio n )1 3 % A c c o m m o d a tio n a n d F o o d S e rv ic e s 1 2 % R e ta il T ra d e 9 % C o n s tru c tio n 9 % H e a lth C a re a n d S o c ia l A s s is ta n c e 9 % M a n u fa c tu rin g 8 % R e a l E s ta te R e n ta l a n d L e a s in g 8 % Wh o le s a le T ra d e 6 % O th e r(1 3 )2 6 % C & I& O w n e ro c c u p ie d C R E M ix e d U s e 2 % F le x,wa re h o u s e,s e lf-s to ra g e,g e n e ra l In d u s tria l 1 0 % O fic e 1 8 % R e ta il 2 8 % R e s id e n tia l % R e s id e n tia l M u lti -F a m ily 1 5 % S p e c ia l U s e & O th e r1 1 % C R E In v e s to r& C o n s tru c tio n\n63 1 2 / / / / / /1 7 6 /1 8 T R B C % % % % % % % T ie r-1 C a p ita l % % % % % % % E x c e s s R B C (a b o v e 1 0 %)$ 1 4 0,1 1 7 $ 1 5 3,5 4 2 $ 1 4 7,1 8 6 $ 1 4 6,7 8 8 $ 6 6,9 3 9 $ 1 1 9,9 4 0 $ 1 5 7,1 4 6 T C E (1 )7.7 2 % % % % % % % T B V /S h a re (1 )$ $ $ $ $ $ $ $ 3 0 0,0 0 0 $ 3 5 0,0 0 0 $ 4 0 0,0 0 0 $ 4 5 0,0 0 0 $ 5 0 0,0 0 0 $ 5 5 0,0 0 0 $ 6 0 0,0 0 0 $ 6 5 0,0 0 0 $ 7 0 0,0 0 0 $ 7 5 0, / / / / / /1 7 6 /1 8 T o ta l R is k -B a s e d C a p ita l We l C a p ita liz e d R e q u ire m e n tr o b u s tc a p ita l to G ro w a n d to R e tu rn to S h a re h o ld e rs 5 7 T o ta l R is k B a s e d C a p ita l (T R B C )0 0 0 s (1 )H o ld in g C o m p a n y ra tio.t h is is a n o n -G A A P fin a n c ia l m e a s u re a n d s h o u ld b e c o n s id e re d a lo n g w ith re s u lts p re p a re d in a c c o rd a n c e w ith G A A P,a n d n o ta s a s u b s titu te fo rg A A P re s u lts.s e e A p p e n d ix 3 fo re c o n c ilia tio n to G A A P fin a n c ia l in fo rm a tio n.\n64 S tro n g A lig n m e n t/c a p ita l M a n a g e m e n t5 8 E x e c u tiv e m a n a g e m e n tb o n u s e s a n d e q u ity a w a rd s b a s e d o n b o to m -lin e p e rfo rm a n c e R O A,R O T C E a n d E P S g ro w th In s id e ro w n e rs h ip 1 is o v e r5 % B o a rd o fd ire c to rs a n d E x e c u tiv e M a n a g e m e n to w n e rs h ip g u id e lin e s in p la c e a n d fo lo w e d In 2 Q ,WS F S re p u rc h a s e d 5 0,0 0 0 s h a re s o fc o m m o n s to c k a ta n a v e ra g e p ric e o f$ a s p a rto fo u r5 % b u y b a c k p ro g ra m a p p ro v e d b y th e B o a rd o fd ire c to rs in 4 Q ,1 9 4 s h a re s re m a in in g to p u rc h a s e u n d e rth e c u re n ta u th o riz a tio n $ m ilio n in c a s h re m a in s in th e H o ld in g C o m p a n y a s o f6 /3 0 /1 8 T h e B o a rd o fd ire c to rs a p p ro v e d a q u a rte rly c a s h d iv id e n d o f$ p e rs h a re o fc o m m o n s to c k.t h is w il b e p a id o n 8 /2 4 /1 8 to s h a re h o ld e rs o fre c o rd o n 8 /1 0 /1 8 (1 )A s d e fin e d in o u rm o s tre c e n tp ro x y s ta te m e n t,a s a d ju s te d fo ru n v e s te d s to c k o p tio n s a p p ro v e d b y s h a re h o ld e rs a n d a w a rd e d to th e C E O a n d E V P s in A p ril\n65 5 9 (1 )C o m p le te d b y th e G a lu p O rg a n iz a tio n,a s o fd e c e m b e r3 1, (2 )P e rb lo o m b e rg ;c lo s in g p ric e a s o fj u n e 2 9, B u s in e s s M o d e l a n d T o ta l S h a re h o ld e rr e tu rn s\n66 A p p e n d ic e s\n67 A p p e n d ix 1 M a n a g e m e n tt e a m 6 1 M a rk A.T u rn e r,5 5,h a s s e rv e d a s P re s id e n ta n d C h ie fe x e c u tiv e O fic e rs in c e H e w a s e le c te d C h a irm a n o fth e B o a rd o fd ire c to rs in J u ly M r.t u rn e rw a s p re v io u s ly C h ie fo p e ra tin g O fic e ra n d th e C h ie ff in a n c ia l O fic e rfo rws F S.P rio rto jo in in g WS F S,h is e x p e rie n c e in c lu d e s w o rk in g a tc o re S ta te s B a n k a n d M e rid ia n B a n c o rp.m r.t u rn e rs ta rte d h is c a re e ra th e in te rn a tio n a l p ro fe s s io n a l s e rv ic e s firm o fk P M G,L L P.H e re c e iv e d h is M B A fro m th e Wh a rto n S c h o o l o fth e U n iv e rs ity o fp e n n s y lv a n ia,h is M a s te r s D e g re e in E x e c u tiv e L e a d e rs h ip fro m th e U n iv e rs ity o fn e b ra s k a a n d h is B a c h e lo r s D e g re e in A c c o u n tin g a n d M a n a g e m e n tfro m L a S a le U n iv e rs ity.r o d g e rl e v e n s o n,5 7,h a s s e rv e d a s E x e c u tiv e V ic e P re s id e n ta n d C h ie fo p e ra tin g O fic e rs in c e J u ly M r.l e v e n s o n w a s p re v io u s ly th e C h ie fc o m m e rc ia l B a n k in g O fic e rfro m to ,in te rim C h ie ff in a n c ia l O fic e rfro m M a rc h to M a y a n d C h ie fc o rp o ra te D e v e lo p m e n to fic e rfro m M a y to J u ly F ro m to ,M r.l e v e n s o n w a s S e n io rv ic e P re s id e n ta n d M a n a g e ro fth e S p e c ia liz e d B a n k in g a n d B u s in e s s B a n k in g D iv is io n s o fc itiz e n s B a n k.m r.l e v e n s o n re c e iv e d h is M B A in F in a n c e fro m D re x e l U n iv e rs ity a n d h is B a c h e lo r s D e g re e in F in a n c e fro m T e m p le U n iv e rs ity.d o m in ic C.C a n u s o,c F A,4 3,jo in e d WS F S in a s E x e c u tiv e V ic e P re s id e n ta n d C h ie ff in a n c ia l O fic e r.f ro m to ,h e w a s F in a n c e D ire c to ra tb a rc la y s U S C re d itc a rd B u s in e s s,m o s tre c e n tly s e rv in g a s L in e o fb u s in e s s C F O.P rio rto B a rc la y s,h e w a s a ta d v a n ta B a n k a n d A rth u ra n d e rs e n C o n s u ltin g.m r.c a n u s o re c e iv e d h is E x e c u tiv e M B A a n d B a c h e lo r s D e g re e fro m V ila n o v a U n iv e rs ity.a rth u rb a c c i,5 9,jo in e d WS F S a s E x e c u tiv e V ic e P re s id e n ta n d C h ie fwe a lth O fic e rin A p ril P rio rto jo in in g WS F S,A rtw a s a V ic e P re s id e n ta tp rin c ip a l F in a n c ia l G ro u p,a d iv e rs ifie d g lo b a l in v e s tm e n tm a n a g e m e n tfirm,w h e re h e m o s tre c e n tly s e rv e d a s H e a d o fp rin c ip a l s H o n g K o n g b u s in e s s fro m to A rtjo in e d P rin c ip a l in a s c h ie fin a n c ia l o fic e ro fp rin c ip a l T ru s tc o m p a n y (in D e la w a re ).H e s u b s e q u e n tly w a s n a m e d C E O /P re s id e n to fth e tru s tc o m p a n y a n d P rin c ip a l B a n k.h e b e g a n h is c a re e rw ith B a n k o fa m e ric a a n d h a s h e ld m a n a g e m e n tp o s itio n s w ith th e Wilia m E.S im o n & S o n s p riv a te e q u ity g ro u p a n d w ith a fin -te c h c o m p a n y in v o lv e d w ith fin a n c ia l a d v is o ry a n d tra d in g p ro d u c ts.a rtre c e iv e d h is B S in F in a n c e fro m S a n J o s e S ta te a n d a M B A fro m S a n ta C la ra U n iv e rs ity.h e h a s a ls o p a rtic ip a te d in le a d e rs h ip a n d m a n a g e m e n tp ro g ra m s a th e U n iv e rs ity o fp e n n s y lv a n ia Wh a rto n S c h o o l.l is a M.B ru b a k e r,5 4,h a s s e rv e d a s C h ie ft e c h n o lo g y O fic e rs in c e M a y M s.b ru b a k e rp re v io u s ly s e rv e d a s S e n io rv ic e P re s id e n t,d ire c to ro fr e ta il S tra te g ie s s in c e a n d h a s h e ld o fa v a rie ty o fm a n a g e m e n tp o s itio n s w ith WS F S B a n k o v e rh e r 3 1 y e a rc a re e r.m s.b ru b a k e re c e iv e d a B a c h e lo r s d e g re e fro m th e U n iv e rs ity o fd e la w a re a n d is a n A re s ty S c h o la ro fth e Wh a rto n S c h o o l o fe x e c u tiv e E d u c a tio n.\n68 A p p e n d ix 1 M a n a g e m e n tt e a m 6 2 S te v e C la rk,6 0,jo in e d WS F S B a n k in a n d h a s s e rv e d a s E x e c u tiv e V ic e P re s id e n ta n d C h ie fc o m m e rc ia l B a n k in g O fic e rs in c e M a y F ro m th ru ,M r.c la rk le d a n d m a n a g e d th e e s ta b lis h m e n to fth e M id d le M a rk e tle n d in g u n it,a n d in b e c a m e D iv is io n M a n a g e ro fth e B u s in e s s B a n k in g a n d M id d le M a rk e td iv is io n s.p rio rto ,h e s p e n t2 3 y e a rs in v a rio u s c o m m e rc ia l b a n k in g p o s itio n s a tp N C B a n k a n d its p re d e c e s s o rc o m p a n ie s.m r.c la rk re c e iv e d h is M B A in F in a n c e fro m Wid e n e ru n iv e rs ity a n d h is B a c h e lo r s D e g re e in B u s in e s s A d m in is tra tio n (M a rk e tin g )fro m th e U n iv e rs ity o fd e la w a re.p e g g y H.E d d e n s,6 2,E x e c u tiv e V ic e P re s id e n t,c h ie fa s s o c ia te a n d C u s to m e re x p e rie n c e O fic e r,jo in e d WS F S B a n k in F ro m to s h e w a s S e n io rv ic e P re s id e n tfo rh u m a n R e s o u rc e s a n d D e v e lo p m e n tfo rn e x T ie rb a n k,b u tle rp A.M s.e d d e n s re c e iv e d a M a s te ro fs c ie n c e D e g re e in H u m a n R e s o u rc e M a n a g e m e n tfro m L a R o c h e C o le g e a n d h e rb a c h e lo r s D e g re e in B u s in e s s A d m in is tra tio n w ith m in o rs in M a n a g e m e n ta n d P s y c h o lo g y fro m R o b e rtm o ris U n iv e rs ity.p a u l S.G re e n p la te,6 0,E x e c u tiv e V ic e P re s id e n ta n d C h ie fr is k O fic e r,jo in e d WS F S in a n d p rio rto h is le a d e rs h ip ro le in th e R is k D iv is io n,h e s e rv e d a s S e n io rv ic e P re s id e n ta n d T re a s u re r.a s E x e c u tiv e V ic e P re s id e n ta n d C h ie fr is k O fic e r,m r.g re e n p la te o v e rs e e s a l in d e p e n d e n tr is k M a n a g e m e n tfu n c tio n s in c lu d in g,c re d itr is k M a n a g e m e n t,r e a l E s ta te S e rv ic e s,a s s e tr e c o v e ry,e n te rp ris e R is k M a n a g e m e n t,l e g a l,in te rn a l A u d it,l o a n R e v ie w a n d R e g u la to ry C o m p lia n c e.m r.g re e n p la te g ra d u a te d fro m th e U n iv e rs ity o fd e la w a re w ith a B a c h e lo r s D e g re e in E c o n o m ic s.t h o m a s S te v e n s o n,6 5,h a s s e rv e d a s P re s id e n to fc a s h C o n n e c td iv is io n s in c e M r.s te v e n s o n jo in e d WS F S in a s E x e c u tiv e V ic e P re s id e n ta n d C h ie fin fo rm a tio n O fic e r.p rio rto jo in in g WS F S,M r.s te v e n s o n w a s th e M a n a g e ro fq u a lity A s s u ra n c e a te le c tro n ic P a y m e n ts e rv ic e s.m r.s te v e n s o n a te n d e d Wa y n e S ta te U n iv e rs ity a n d th e B a n k in g a n d F in a n c ia l S e rv ic e s p ro g ra m a th e U n iv e rs ity o fm ic h ig a n s G ra d u a te S c h o o l o fb u s in e s s A d m in is tra tio n.p a tric k J.Wa rd,6 2,jo in e d WS F S in A u g u s t a s E x e c u tiv e V ic e P re s id e n t,p e n n s y lv a n ia M a rk e tp re s id e n t.h e a ls o s e rv e s o n th e B o a rd o fd ire c to rs o fws F S F in a n c ia l C o rp o ra tio n.m r.wa rd h a s o v e r3 2 y e a rs o fb a n k in g in d u s try e x p e rie n c e a n d p re v io u s ly s e rv e d a s C h a irm a n a n d C E O o fp e n n L ib e rty B a n k.h e w a s a n E V P o fc itiz e n s B a n k o fp e n n s y lv a n ia fro m J a n u a ry u n til J a n u a ry P rio rth e re to,m r.wa rd s e rv e d a s P re s id e n ta n d C E O o fc o m m o n w e a lth B a n c o rp,in c.,th e h o ld in g c o m p a n y fo rc o m m o n w e a lth B a n k,u n til its a c q u is itio n b y C itiz e n s B a n k in J a n u a ry M r.wa rd is a g ra d u a te o fc a rn e g ie M e lo n U n iv e rs ity w ith a B a c h e l o r s D e g re e in E c o n o m ic s a n d e a rn e d a n M B A fro m th e U n iv e rs ity o fn o tre D a m e.r ic h a rd M.Wrig h t,6 5,E x e c u tiv e V ic e P re s id e n ta n d C h ie fr e ta il B a n k in g O fic e rs in c e F ro m to ,M r.wrig h tw a s E x e c u tiv e V ic e P re s id e n t,r e ta il B a n k in g a n d M a rk e tin g fo rd N B F irs tin D o w n in g to w n,p A.M r.wrig h tre c e iv e d h is M B A in M a n a g e m e n td e c is io n S y s te m s fro m th e U n iv e rs ity o fs o u th e rn C a lifo rn ia a n d h is B a c h e lo r s D e g re e in M a rk e tin g a n d E c o n o m ic s fro m C a lifo rn ia S ta te U n iv e rs ity.\n69 A p p e n d ix 2 B u s in e s s M o d e l 6 3\n70 A p p e n d ix 3 N o n -G A A P F in a n c ia l In fo rm a tio n T a n g ib le c o m m o n e q u ity to a s s e ts a n d T a n g ib le c o m m o n b o o k v a lu e p e rs h a re M o n th s E n d e d 3 M o n th s E n d e d 3 M o n th s E n d e d J u n e,3 0, M a rc h 3 1, J u n e 3 0, T o ta l A s s e ts $ 7,1 1 2,5 4 7 $ 6,9 8 7,9 3 1 $ 6,8 2 2,4 2 7 L e s s :G o o d w il a n d o th e rin ta n g ib le a s s e ts $ 1 8 7,2 5 9 $ 1 8 7,7 9 0 $ 1 8 9,9 8 3 T o ta l T a n g ib le A s s e ts $ 6,9 2 5,2 8 8 $ 6,8 0 0,1 4 1 $ 6,6 3 2,4 4 4 T o ta l S to c k h o ld e rs E q u ity $ 7 6 8,9 7 7 $ 7 4 6,2 7 9 $ 7 2 2,6 2 3 L e s s :G o o d w il a n d o th e rin ta n g ib le a s s e ts $ 1 8 7,2 5 9 $ 1 8 7,7 9 0 $ 1 8 9,9 8 3 T o ta l T a n g ib le C o m m o n E q u ity (n o n -G A A P )$ 5 8 1,7 1 8 $ 5 5 8,4 8 9 $ 5 3 2,6 4 0 T a n g ib le C o m m o n B o o k V a lu e P e rs h a re B o o k V a lu e p e rs h a re (G A A P )$ $ $ T a n g ib le C o m m o n B o o k V a lu e P e rs h a re (n o n -G A A P )$ $ $ T a n g ib le C o m m o n E q u ity to A s s e ts E q u ity to A s s e tr a tio (G A A P ) % % % T a n g ib le C o m m o n E q u ity to A s s e tr a tio (n o n -G A A P )8.4 0 % % %\n71 6 5 A p p e n d ix 3 N o n -G A A P F in a n c ia l In fo rm a tio n C o re :G A A P R e c o n c ilia tio n T h re e m o n th s e n d e d J u n e 3 0, M a rc h 3 1, J u n e 3 0, G A A P n e t(lo s s )in c o m e $ 2 8,7 4 0 $ 3 7,3 5 0 $ 2 0,5 7 0 P lu s (le s s ):P re -ta x a d ju s tm e n ts :S e c u ritie s g a in s,u n re a liz e d g a in s,re c o v e ry o f/p ro v is io n fo rfra u d lo s s a n d c o rp o ra te d e v e lo p m e n tc o s ts (1 7,0 3 2 )(3 4 2 )(P lu s )/le s s :T a x im p a c to fp re -ta x a d ju s tm e n ts (1 0 8 )4, N o n -G A A P n e tin c o m e $ 2 9,0 8 9 $ 2 4,3 8 9 $ 2 0,3 4 8 G A A P re tu rn o n a v e ra g e a s s e ts (R O A )1.6 5 % % % P lu s (le s s ):P re -ta x a d ju s tm e n ts :S e c u ritie s g a in s,u n re a liz e d g a in s,re c o v e ry o f/p ro v is io n fo rfra u d lo s s a n d c o rp o ra te d e v e lo p m e n tc o s ts (1.0 1 )(0.0 2 )(P lu s )le s s :T a x im p a c to fp re -ta x a d ju s tm e n ts (0.0 1 ) C o re R O A (n o n -G A A P )1.6 7 % % % E P S (G A A P )$ $ $ P lu s (le s s ):P re -ta x a d ju s tm e n ts :S e c u ritie s g a in s,u n re a liz e d g a in s,re c o v e ry o f/p ro v is io n fo rfra u d lo s s a n d c o rp o ra te d e v e lo p m e n tc o s ts (0.5 3 )(0.0 1 )(P lu s )le s s :T a x im p a c to fp re -ta x a d ju s tm e n ts C o re E P S (n o n -G A A P )$ $ $ C a lc u la tio n o fre tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity :G A A P n e t(lo s s )in c o m e $ 2 8,7 4 0 $ 3 7,3 5 0 $ 2 0,5 7 0 P lu s :T a x e fe c te d a m o rtiz a tio n o fin ta n g ib le a s s e ts N e ta n g ib le in c o m e (n o n -G A A P )$ 2 9,2 8 3 $ 3 7,8 9 1 $ 2 1,0 4 4 A v e ra g e s h a re h o ld e rs e q u ity $ 7 5 7,4 1 6 $ 7 2 5,7 1 4 $ 7 1 3,7 8 1 L e s s :a v e ra g e g o o d w il a n d in ta n g ib le a s s e ts 1 8 7, , ,1 2 5 N e ta v e ra g e ta n g ib le c o m m o n e q u ity $ 5 6 9,8 3 9 $ 5 3 7,5 0 5 $ 5 2 3,6 5 6 R e tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity (n o n -G A A P ) % % % C a lc u la tio n o fc o re re tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity :N o n -G A A P n e tin c o m e $ 2 9,0 8 9 $ 2 4,3 8 9 $ 2 0,3 4 8 P lu s :T a x e fe c te d a m o rtiz a tio n o fin ta n g ib le a s s e ts C o re n e ta n g ib le in c o m e (n o n -G A A P )$ 2 9,6 3 2 $ 2 4,9 3 0 $ 2 0,8 2 2 N e ta v e ra g e ta n g ib le c o m m o n e q u ity $ 5 6 9,8 3 9 $ 5 3 7,5 0 5 $ 5 2 3,6 5 6 C o re re tu rn o n a v e ra g e ta n g ib le c o m m o n e q u ity (n o n -G A A P ) % % %\n72 A p p e n d ix 3 N o n -G A A P F in a n c ia l In fo rm a tio n C o re :G A A P R e c o n c ilia tio n 6 6 (1 )N e tin te re s tin c o m e p lu s C o re N o n -in te re s tin c o m e.(2 )N o n in te re s te x p e n s e d iv id e d b y (ta x -e q u iv a le n t)n e tin te re s tin c o m e p lu s n o n in te re s tin c o m e.(3 )C o re n o n in te re s te x p e n s e d iv id e d b y (ta x -e q u iv a le n t)n e tin te re s tin c o m e p lu s c o re n o n in te re s tin c o m e.(4 )N o n in te re s tin c o m e d iv id e d b y (ta x e q u iv a le n t)n e tin te re s tin c o m e a n d n o n in te re s tin c o m e.(5 )C o re n o n in te re s tin c o m e d iv id e d b y (ta x e q u iv a le n t)n e tin te re s tin c o m e a n d c o re n o n in te re s tin c o m e 3 M o n th s E n d e d 3 M o n th s E n d e d 3 M o n th s E n d e d J u n e,3 0, M a rc h 3 1, J u n e 3 0, N e tin te re s tin c o m e (G A A P )$ 6 0,9 8 9 $ 5 7,7 1 4 $ 5 4,3 1 4 C o re N e tin te re s tin c o m e (n o n -G A A P )$ 6 0,9 8 9 $ 5 7,7 1 4 $ 5 4,3 1 4 N o n in te re s tin c o m e (G A A P )$ 3 4,9 8 7 $ 4 7,4 6 7 $ 3 1,6 7 6 L e s s :U n re a liz e d g a in s o n e q u ity in v e s tm e n t($ 1 5,3 4 6 )L e s s :S e c u ritie s g a in s ($ 2 1 )($ )C o re N o n -in te re s tin c o m e (n o n -G A A P )$ 3 4,9 8 7 $ 3 2,1 0 0 $ 3 0,9 6 8 C o re N e tr e v e n u e (1 )(n o n -G A A P )$ 9 5,9 7 6 $ 8 9,8 1 4 $ 8 5,2 8 2 C o re N e tr e v e n u e (n o n -G A A P )(ta x -e q u iv a le n t)$ 9 6,3 1 6 $ 9 0,1 5 8 $ 8 6,0 0 0 N o n in te re s te x p e n s e (G A A P )$ 5 7,8 3 1 $ 5 3,4 1 2 $ 5 2,7 2 7 L e s s :C o rp o ra te D e v e lo p m e n t($ )($ )P lu s /L e s s :(R e c o v e ry o f)/p ro v is io n fo rfra u d L o s s $ 1, C o re N o n in te re s te x p e n s e $ 5 7,3 7 4 $ 5 5,0 7 7 $ 5 2,3 6 1 E fic ie n c y R a tio (R e p o rte d )(2 ) % % % C o re E fic ie n c y R a tio (3 )5 9.6 % % % F e e In c o m e /T o ta l R e v e n u e (4 ) % % % C o re F e e In c o m e /T o ta l R e v e n u e (5 )3 6.3 % % %\n73 A p p e n d ix 3 N o n -G A A P F in a n c ia l In fo rm a tio n C o re & S u s ta in a b le R O A :G A A P R e c o n c ilia tio n 6 7 F Y 1 7 F Y 1 6 F Y 1 5 F Y 1 4 F Y 1 3 F Y 1 2 R e p o rte d (G A A P )R O A N o n -re c u rin g P C Ia c c re tio n (0.0 2 )L o n g -te rm c re d itn o rm a liz a tio n (0.0 0 )0.0 4 (0.0 0 )(0.0 9 )(0.0 5 )0.3 3 S e c u ritie s G a in s (0.0 2 )(0.0 3 )(0.0 2 )(0.0 1 )(0.0 5 )(0.3 3 )S A S C O w rite u p (0.0 6 )C o rp o ra te D e v e lo p m e n te x p e n s e D e b te x tin g u is h m e n t F H L B D iv id e n d (0.0 1 )B O L I(0.0 2 )F ra u d L o s s C o n trib u tio n T a x N o rm a liz a tio n (0.0 1 )0.0 2 (0.1 8 )(0.0 1 )0.0 0 C o re & S u s ta in a b le R O A Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 R e p o rte d (G A A P )R O A (0.5 6 ) N o n -re c u rin g P C Ia c c re tio n (0.0 7 )L o n g -te rm c re d itn o rm a liz a tio n ( ) (0.0 3 )(0.0 2 ) (0.0 5 )(0.0 5 )0.0 0 (0.0 4 )0.1 0 (0.0 7 )(0.1 1 )(0.1 2 )(0.1 3 )0.0 1 (0.0 4 )(0.0 3 )(0.0 3 )(0.1 1 )0.0 8 S e c u ritie s G a in s (0.7 1 )(0.0 1 )(0.0 2 )(0.0 3 )(0.0 1 )(0.0 2 )(0.0 4 )(0.0 3 )(0.0 1 )(0.0 2 )(0.0 1 )(0.0 2 )(0.0 3 ) (0.0 2 )(0.0 3 )(0.0 4 )(0.0 2 )(0.0 5 )(0.1 0 )(0.2 2 )S A S C O w rite u p (0.2 2 )C o rp o ra te D e v e lo p m e n te x p e n s e D e b te x tin g u is h m e n t F H L B D iv id e n d (0.0 5 )F ra u d L o s s (re c o v e ry )(0.0 6 )0.1 0 C o n trib u tio n L e g a l S e tle m e n t0.4 4 T a x N o rm a liz a tio n ( )(0.0 2 ) (0.0 2 )(0.0 6 )(0.0 2 )0.0 0 (0.0 4 ) (0.0 4 )(0.0 2 )(0.0 1 )(0.6 2 )(0.0 3 )C o re & S u s ta in a b le R O A\n74 S to c k h o ld e rs o ro th e rs s e e k in g in fo rm a tio n re g a rd in g th e C o m p a n y m a y c a l o rw rite :WS F S F in a n c ia l C o rp o ra tio n In v e s to rr e la tio n s WS F S B a n k C e n te r5 0 0 D e la w a re A v e n u e Wilm in g to n,d E s to c k h o ld e re la tio n s fs b a n k.c o m w w w.w s fs b a n k.c o m 6 8 M a rk A.T u rn e rc h a irm a n,p re s id e n ta n d C E O m tu rn e s fs b a n k.c o m R o d g e rl e v e n s o n C h ie fo p e ra tin g O fic e r rle v e n s o s fs b a n k.c o m D o m in ic C.C a n u s o C h ie ff in a n c ia l O fic e r d c a n u s s fs b a n k.c o m