About WSFS Financial

WSFS Financial Corporation (WSFS) operates as a savings and loan holding company. Substantially all of the company’s assets are held by its subsidiary, Wilmington Savings Fund Society, FSB (WSFS Bank or the bank), a bank and trust company in the United States (U.S.) continuously operating under the same name. The company is a relationship-focused, locally-managed, community banking institution. The company’s strategy focuses on exceeding customer expectations, delivering stellar experiences and building customer advocacy through highly-trained, relationship-oriented, friendly, knowledgeable and empowered Associates. As of December 31, 2022, the company serviced its customers primarily from its offices located in Pennsylvania, Delaware, New Jersey, Virginia, and Nevada, the company’s ATM network, its website at www.wsfsbank.com and its mobile apps. Subsidiaries As of December 31, 2022, the company had seven consolidated subsidiaries: WSFS Bank, Cypress Capital Management, LLC (Cypress), WSFS Capital Management, LLC (West Capital), WSFS Wealth Management, LLC (Powdermill), WSFS SPE Services, LLC, The Bryn Mawr Trust Company of Delaware (BMT-DE), and 601 Perkasie, LLC. On January 1, 2023, WSFS completed the merger and brand conversion of Cypress and West Capital and has renamed the combined entity Bryn Mawr Capital Management, LLC. The following pertains to these entities as of December 31, 2022: Cypress provides asset management services. Cypress is a registered investment adviser and fee-only wealth management firm. West Capital, a registered investment adviser, provides fee-only wealth management services tailored to the needs of high net worth individuals operating under a multi-family office philosophy. Powdermill provides multi-family office services to affluent clientele in the local community and throughout the U.S. WSFS SPE Services, LLC provides commercial domicile services, which include providing employees, directors, subleases of office facilities and registered agent services in Delaware and Nevada. BMT-DE, a Delaware state chartered non-depository trust company, supplements the company’s existing Wealth Management segment by offering Delaware advantage trust services, including directed trusts, asset protection trusts and dynasty trusts via centers of influence such as estate planning attorneys. 601 Perkasie, LLC was formed to hold certain tax credit investments. As of December 31, 2022, WSFS Bank had two wholly-owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC), and 1832 Holdings, Inc. WSFS Bank had one majority-owned subsidiary, NewLane Finance Company (NewLane Finance). BEFC was acquired during the Beneficial Bancorp, Inc. (Beneficial) acquisition and is in the business of leasing small equipment and fixed assets. Subsequent to the Beneficial acquisition, the leasing operations of BEFC were combined with NewLane Finance, described below. 1832 Holdings, Inc. was formed to hold certain debt and equity investment securities. NewLane Finance originates small business leases and provides commercial financing to businesses nationwide, targeting various equipment categories including technology, software, office, medical, veterinary and other areas. In addition, NewLane Finance offers new product offerings for insurance through its subsidiary, Prime Protect. As of December 31, 2022, WSFS had three unconsolidated subsidiaries, WSFS Capital Trust III (the Trust), Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II. Segments The company operates through three segments: WSFS Bank, Cash Connect and Wealth Management. The WSFS Bank segment provides loans and leases and other financial products to commercial and consumer customers. Cash Connect provides ATM vault cash, smart safe and other cash logistics services in the U.S. through strategic partnerships with several of the largest networks, manufacturers and service providers in the cash logistics industry. The Wealth Management segment provides a broad array of planning and advisor services, investment management, personal and institutional trust services, and credit and deposit products to individuals, corporate, and institutional clients. WSFS Bank The company has built a billion commercial loan and lease portfolio by recruiting seasoned commercial lenders in the company’s markets, offering the high level of service and flexibility typically associated with a community bank and through acquisitions. The company funds this business primarily with deposits generated through commercial relationships and consumer deposits, as well as through the company’s digital banking platforms. WSFS Bank also offers a broad variety of consumer loan products, retail securities and insurance brokerage services through the company’s retail branches, and mortgage and title services through WSFS Mortgage. The company’s WSFS Mortgage business is a mortgage banking company and abstract and title company specializing in a variety of residential mortgage and refinancing solutions. Cash Connect The company’s Cash Connect business is a premier provider of ATM vault cash, smart safe (safes that automatically accept, validate, record and hold cash in a secure environment) and other cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry. Cash Connect services non-bank and WSFS-branded ATMs and smart safes nationwide. As of December 31, 2022, Cash Connect serviced non-bank ATMs and smart safes nationwide. Cash Connect provides related services, such as online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, ATM processing equipment sales and deposit safe cash logistics. As of December 31, 2022, Cash Connect also supported owned and branded ATMs for WSFS Bank, which has one of the largest branded ATM networks in the company’s market. Wealth Management The company’s Wealth Management business provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate, and institutional clients through multiple integrated businesses. Bryn Mawr Trust is the company’s predominant Private Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals. The Bryn Mawr Trust Company of Delaware, formed by the merger of BMT-DE and Christiana Trust DE on April 1, 2022, provides personal trust and fiduciary services to families and individuals across the U.S. and internationally. WSFS Institutional Services provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles. Private Wealth Management, which includes Private Banking, serves high-net-worth clients and institutions by providing trustee and advisory services, financial planning, customized investment strategies, brokerage products, such as annuities and customized banking services, including credit and deposit products tailored to its clientele. Private Wealth Management includes businesses that operate under the bank’s charter, through a broker/dealer and as a registered investment advisor (RIA). It generates revenue through fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody. Powdermill is a multi-family office specializing in providing independent solutions to high-net-worth individuals, families and corporate executives through a coordinated, centralized approach. On January 1, 2022, the company completed the company’s acquisition of Bryn Mawr Bank Corporation (BMBC), a Pennsylvania corporation and the parent holding company of The Bryn Mawr Trust Company, a Pennsylvania chartered bank and wholly-owned subsidiary of BMBC. Commercial Lending The majority of the company’s commercial and commercial mortgage loans are concentrated in Delaware and Pennsylvania. The company offers commercial mortgage loans on multi-family properties and on other commercial real estate. The company offers commercial construction loans to developers. In some cases, these loans are made as ‘construction/permanent’ loans, which provides for the disbursement of loan funds during construction with the option of conversion to mini-permanent loans (one - five years) upon the completion of construction. Commercial and industrial and owner-occupied commercial loans include loans for working capital, financing equipment and real estate acquisitions, business expansion and other business purposes. Small business and middle market commercial loans that include specialty-lending products, including small business leases and SBA loans, comprise the remainder of the company’s commercial portfolio. The company’s commercial small business leases generated through NewLane Finance, finance critical equipment through advanced technologies, a customer-centric approach and transparent business lending practices. Residential Lending The company’s residential loans generally are underwritten and documented in accordance with standard underwriting criteria published by Fannie Mae, Freddie Mac, Federal Housing Agency, Veterans Administration, the U.S. Department of Agriculture and other secondary market participants to assure maximum eligibility for subsequent sale in the secondary market. To protect the propriety of the company’s liens, it requires borrowers to provide title insurance. The company also requires fire, extended coverage casualty and flood insurance (where applicable) for properties securing residential loans. All properties securing the company’s residential loans are appraised by independent, licensed and certified appraisers; and are subject to review in accordance with the company’s standards. Consumer Lending The company has focused on diversifying its consumer credit products to meet the company’s Customers’ needs, with over 50% of the portfolio from the company’s fintech lending partnerships. The company purchases certain second-lien home equity installment loans through the company’s partnership with Spring EQ, LLC (Spring EQ). The company originates personal loans, which are typically unsecured with 36-month or 60-month terms, through the company’s partnership with Upstart. The company has student loans through its partnership with LendKey Technologies Inc. (LendKey). LendKey student loans are primarily to consolidate existing student debt and are also underwritten in accordance with the company’s current credit standards. The student loans portfolio also includes loans acquired from past acquisitions, which are U.S. government guaranteed with little risk of credit loss. The company’s in-house originations consist primarily of home equity lines of credit and installment loans. Home equity lines of credit offer customers the convenience of checkbook and debit card access, and revolving credit features for a portion of the life of the loan and typically are more attractive in a low interest rate environment. Loan Originations, Purchases and Sales The company engages in traditional lending activities primarily in Delaware, southeastern Pennsylvania, southern New Jersey, and contiguous areas of neighboring states. As a federal savings bank, however, the company may originate, purchase and sell loans throughout the U.S. The company purchases loans from outside its traditional lending area through its relationships with Spring EQ and LendKey, when such purchases are deemed appropriate. The company originates fixed-rate and adjustable-rate residential loans through the company’s banking offices and WSFS Mortgage, the company’s mortgage banking company, and personal loans through the company’s partnership with Upstart. Commercial: The company originates commercial mortgage and commercial loans through its commercial lending division and SBA loan program. Commercial loans are made for working capital, financing equipment acquisitions, business expansion and other business purposes. Residential and Consumer: The company sells most newly originated mortgage loans in the secondary market to generate fee income and to manage the company’s overall balance sheet mix. The company holds certain fixed-rate mortgage loans for investment, consistent with the company’s current asset/liability management strategies and the company’s relationship-based lending philosophy. The company offers government-insured reverse mortgages to the company’s customers. The company’s consumer lending activity is conducted through its branch offices, its partnerships with Spring EQ, Upstart, and LendKey and referrals from other parts of the company’s business. The company originates a variety of consumer credit products, including home improvement loans, home equity lines of credit, automobile loans, unsecured lines of credit and other secured and unsecured personal installment loans. Deposits WSFS Bank primarily attracts deposits through its retail branch offices and loan production offices, in Delaware, southeastern Pennsylvania and southern New Jersey, as well as through the company’s digital banking platforms. WSFS Bank offers various deposit products to the company’s customers, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts and certificates of deposit. In addition, WSFS Bank accepts ‘jumbo’ certificates of deposit with balances in excess of $250,000 from individuals, businesses and municipalities. Federal Home Loan Bank Advances As a member of the FHLB, the company is able to obtain FHLB advances. Regulation The company and the bank are subject to extensive federal and state banking laws, regulations, and policies that are intended primarily for the protection of depositors, the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (FDIC) and the banking system as a whole, and not for the protection of the company’s other creditors and stockholders. The Office of the Comptroller of the Currency (OCC) is the bank’s primary regulator and the Federal Reserve is the company’s primary regulator. The Consumer Financial Protection Bureau (CFPB) regulates the bank’s compliance with federal consumer financial protection laws. The bank’s deposits are insured by the FDIC to the fullest extent allowed by law. The company is a registered savings and loan holding company and is subject to the regulation, examination, supervision and reporting requirements of the Federal Reserve. Bryn Mawr Capital Management, LLC is a registered investment adviser under the Investment Advisers Act of 1940 (the Investment Advisers Act) and as such is supervised by the SEC. As a federally chartered savings association, the bank is subject to regulation, examination and supervision by the OCC. The bank’s deposits are insured to the maximum extent permitted by the Deposit Insurance Fund. The bank maintains branch offices in three states, Delaware, Pennsylvania and New Jersey. The bank’s offerings of retail products and services to consumers are subject to a large number of statutes and regulations designed to protect the finances of consumers and to promote lending to various sectors of the economy and population. These laws include, but are not limited to, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Truth in Savings Act, the Electronic Funds Transfer Act, federal and state prohibitions on unfair, deceptive, or abusive acts or practices, and regulations implementing each of these statutes. The CFPB has exclusive authority to examine the bank for compliance with these laws. Anti- money laundering rules and policies are developed and enforced by a bureau within the U.S. Department of the Treasury, the Financial Crimes Enforcement Network (FinCEN), but compliance by individual institutions is also overseen by their primary federal regulator, which in the bank's case is the OCC. Trademarks The company’s registered trademarks are Bryn Mawr Trust, Cash Connect, NewLane Finance, Powdermill Financial Solutions, West Capital Management, WSFS Institutional Services, WSFS Mortgage and WSFS Wealth Investments. History WSFS Financial Corporation was founded in 1832. The company was incorporated in 1988.