21. SEGMENT INFORMATION

As defined in ASC 280, Segment Reporting (ASC 280), an operating segment is a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision makers to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. We evaluate performance based on pretax net income relative to resources used, and allocate resources based on these results. The accounting policies applicable to our segments are those that apply to our preparation of the accompanying Consolidated Financial Statements. Based on these criteria, we have identified three segments: WSFS Bank, Cash Connect®, and Wealth Management.

The WSFS Bank segment provides financial products to commercial and retail customers. Retail and Commercial Banking, Commercial Real Estate Lending and other banking business units are operating departments of WSFS Bank. These departments share the same regulator, the same market, many of the same customers and provide similar products and services through the general infrastructure of the Bank. Accordingly, these departments are not considered discrete segments and are appropriately aggregated within the WSFS Bank segment in accordance with ASC 280.

Out Cash Connect^® segment provides ATM vault cash, smart safe 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 retail safes nationwide. The balance sheet category Cash in non-owned ATMs includes cash from which fee income is earned through bailment arrangements with customers of Cash Connect®.

The Wealth Management segment 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. WSFS Wealth Investments provides financial advisory services along with insurance and brokerage products. Cypress, a registered investment adviser is a fee-only wealth management firm managing a "balanced" investment style portfolio focused on preservation of capital and generating current income. West Capital, a registered investment adviser, is a fee-only wealth management firm operating under a multi-family office philosophy to provide customized solutions to institutions and high-net-worth individuals. The trust division of WSFS Bank (doing business as WSFS Institutional Services) provides personal trust and fiduciary services, as well as trustee, agency, bankruptcy administration, custodial and commercial domicile services to corporate and institutional clients. 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. WSFS Wealth Client Management serves high-net-worth clients by delivering credit and deposit products and partnering with other wealth management units to provide comprehensive solutions to clients.

The following tables show segment results for the years ended December 31, 2018, 2017, and 2016:



	Year Ended December 31, 2018
(Dollars in thousands)	WSFS Bank		Cash Connect^®		Wealth Management		Total
Statements of Income
External customer revenues:
Interest income	$	282,846	$	—	$	10,127	$	292,973
Noninterest income	70,894		50,679		40,968		162,541
Total external customer revenues	353,740		50,679		51,095		455,514
Inter-segment revenues:
Interest income	14,722		—		11,850		26,572
Noninterest income	8,793		774		145		9,712
Total inter-segment revenues	23,515		774		11,995		36,284
Total revenue	377,255		51,453		63,090		491,798
External customer expenses:
Interest expense	43,671		—		2,828		46,499
Noninterest expenses	172,254		32,378		20,415		225,047
Provision for loan losses	12,934		—		236		13,170
Total external customer expenses	228,859		32,378		23,479		284,716
Inter-segment expenses
Interest expense	11,850		10,417		4,305		26,572
Noninterest expenses	919		2,603		6,190		9,712
Total inter-segment expenses	12,769		13,020		10,495		36,284
Total expenses	241,628		45,398		33,974		321,000
Income before taxes	$	135,627	$	6,055	$	29,116	$	170,798
Income tax provision							36,055
Consolidated net income							$	134,743



	Year Ended December 31, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect^®		Wealth Management		Total
Statements of Income
External customer revenues:
Interest income	$	245,932	$	—	$	8,794	$	254,726
Noninterest income	45,749		42,641		36,254		124,644
Total external customer revenues	291,681		42,641		45,048		379,370
Inter-segment revenues:
Interest income	9,567		—		9,012		18,579
Noninterest income	7,651		810		146		8,607
Total inter-segment revenues	17,218		810		9,158		27,186
Total revenue	308,899		43,451		54,206		406,556
External customer expenses:
Interest expense	32,249		—		1,206		33,455
Noninterest expenses	158,942		26,654		40,865		226,461
Provision for loan losses	10,527		—		437		10,964
Total external customer expenses	201,718		26,654		42,508		270,880
Inter-segment expenses
Interest expense	9,012		6,812		2,755		18,579
Noninterest expenses	956		2,603		5,048		8,607
Total inter-segment expenses	9,968		9,415		7,803		27,186
Total expenses	211,686		36,069		50,311		298,066
Income before taxes	$	97,213	$	7,382	$	3,895	$	108,490
Income tax provision							58,246
Consolidated net income							$	50,244



	Year Ended December 31, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect^®			Wealth Management		Total
Statements of Income
External customer revenues:
Interest income	$	208,525	$	—		$	8,053	$	216,578
Noninterest income	42,565		35,776		^(r)	26,720		105,061
Total external customer revenues	251,090		35,776			34,773		321,639
Inter-segment revenues:
Interest income	4,963		—			7,150		12,113
Noninterest income	8,145		835			118		9,098
Total inter-segment revenues	13,108		835			7,268		21,211
Total revenue	264,198		36,611			42,041		342,850
External customer expenses:
Interest expense	22,028		—			805		22,833
Noninterest expenses	146,526		22,442		^(r)	19,698		188,666
Provision for loan losses	9,370		—			3,616		12,986
Total external customer expenses	177,924		22,442			24,119		224,485
Inter-segment expenses
Interest expense	7,150		2,915			2,048		12,113
Noninterest expenses	953		2,799			5,346		9,098
Total inter-segment expenses	8,103		5,714			7,394		21,211
Total expenses	186,027		28,156			31,513		245,696
Income before taxes	$	78,171	$	8,455		$	10,528	$	97,154
Income tax provision								33,074
Consolidated net income								$	64,080

^(r) Noninterest income and noninterest expense for the period ended December 31, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 2 - Summary of Significant Accounting Policies for further information.

The following table shows significant components of segment net assets as of December 31, 2018 and 2017:



	December 31,
	2018								2017
(Dollars in thousands)	WSFS Bank		Cash Connect^®		Wealth Management		Total		WSFS Bank		Cash Connect^®		Wealth Management		Total
Cash and cash equivalents	$	115,147	$	491,863	$	13,747	$	620,757	$	104,530	$	611,385	$	7,951	$	723,866
Goodwill	145,808		—		20,199		166,007		145,808		—		20,199		166,007
Other segment assets	6,225,820		7,743		228,543		6,462,106		5,882,910		6,078		220,679		6,109,667
Total segment assets	$	6,486,775	$	499,606	$	262,489	$	7,248,870	$	6,133,248	$	617,463	$	248,829	$	6,999,540
Capital expenditures	$	4,779	$	375	$	344	$	5,498	$	8,197	$	184	$	613	$	8,994