WSFS Financial Corporation

Welcome to the WSFS Financial Corporation fourth quarter 2022 earnings call. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. I'd now like to turn the call over to your host for today, Mr. Dominic Canuso, Chief Financial Officer. Sir, you may begin.

Thank you, Angela. And thanks to all of you for taking the time to participate on our call today. With me on this call are Roger Levinson, Chairman, President, and CEO, Art Bacci, Chief Wealth Officer, Steve Clark, Chief Commercial Banking Officer, and Shari Krasinski, Chief Consumer Banking Officer. Before I begin with the remarks on the quarter, I would like to read our safe harbor statement. Our discussion today will include information about our management's view of our future expectations, plans, and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements due to risks and uncertainties, including but not limited to the risk factors included in our annual report on Form 10-K and our most recent quarterly reports on Forms 10-Q. as well as other documents we periodically file with the Securities and Exchange Commissions. All comments made during today's call are subject to the Safe Harbor Statement. I will now pass the call over to Roger. Thanks, Dominic.

Consistent with our recent practice on the fourth quarter earnings call, our remarks today will be divided into two sections. I will provide brief commentary on the fourth quarter and full year 2022 results and then turn it over to Dominic for our 2023 outlook. After our prepared remarks, we will open it up for Q&A with the team. 2022 was an important year for WSFIS. Since the closing of our combination with Bryn Mawr Trust last January, we built momentum and our financial performance improved each quarter, culminating with a strong fourth quarter. This past quarter's results were highlighted by our core net interest margin of 4.49%, which expanded 50 basis points for 13% higher than the third quarter. Loan growth was solid, and we continued to exhibit the value of our diversified fee income. The trend of absorption into the economy of the excess liquidity built up during 2020 and 2021 was evidenced by the decline in deposits. Excluding lower institutional trust deposits due to reduced capital markets activity and normal seasonal runoff of municipal deposits, total customer deposits declined approximately 2% linked quarter or 6% annualized. Credit costs were modestly higher due to loan growth and the economic forecast, and all credit metrics remain at favorable levels. Expenses remain well managed and reflect the continued impact of higher rates on Cash Connect funding expenses that are offset in our fee revenue. In summary, our operating performance improved significantly from the third quarter with core EPS, core ROA, and core PPNR increasing 12%, 13%, and 14% respectively. Although we expect economic growth to be muted in the near term, we enter 2023 with the BMT bank integration activity successfully completed and positioned very well to optimize the significant franchise investments over the past several years. Dominic?