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Segment Information
9 Months Ended
Sep. 30, 2011
Segment Information Disclosure Abstract 
Segment Reporting Disclosure Text Block

8. SEGMENT INFORMATION

 

Under the definition of FASB ASC 280, Segment Reporting (“ASC 280”) (formerly SFAS No. 131, Disclosures About Segments of an Enterprise and Related Information) we discuss our business in three segments. There is one segment for each of WSFS Bank (including WSFS Investment Group, Inc.), Cash Connect, (the ATM division of WSFS), and Trust and Wealth Management. Trust and Wealth Management combines Montchanin and Christiana Trust into a single reportable segment.

 

The WSFS Bank segment provides financial products to commercial and retail customers through its 49 offices located in Delaware (39), Pennsylvania (8), Virginia (1) and Nevada (1). Retail and Commercial Banking, Commercial Real Estate Lending, Private Banking and other banking business units (including the reorganization of WSFS Investment Group, Inc.) are operating departments of WSFS. 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. Because of these and other reasons, these departments are not considered discrete segments and are appropriately aggregated within our WSFS Bank segment in accordance with ASC 280.

 

Cash Connect provides turnkey ATM services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry. 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 Trust and Wealth Management segment is comprised of Christiana Trust and Montchanin. Christiana Trust was acquired as part of the acquisition of CB&T in December 2010 and WSFS' Trust and Wealth Management business was consolidated into Christiana Trust. Christiana Trust provides investment, fiduciary, agency and commercial domicile services from locations in Delaware and Nevada. These services are provided to individuals and families, as well as corporations and institutions. The Christiana Trust division provides these services to local, national and international customers. Montchanin has one consolidated wholly owned subsidiary, Cypress Capital Management, LLC (Cypress). Cypress is a Wilmington-based investment advisory firm serving high net-worth individuals and institutions.

 

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 ordinary income relative to resources used, and allocate resources based on these results. The accounting policies applicable to our segments are the same that apply to the preparation of our accompanying Consolidated Financial Statements. Segment information for the three and nine months ended September 30, 2011 and 2010 was as follows:

 

 

              
              
              
              
  For the three months ended September 30, 2011
   WSFS Bank Cash Connect Trust & Wealth Management Total
   (In Thousands)
External customer revenues:           
  Interest income$40,091 $- $- $40,091
  Noninterest income 9,701  4,235  2,988  16,924
Total external customer revenues 49,792  4,235  2,988  57,015
              
Inter-segment revenues:           
  Interest income 349  -  876  1,225
  Noninterest income 754  202  -  956
Total inter-segment revenues 1,103  202  876  2,181
              
Total revenue 50,895  4,437  3,864  59,196
              
External customer expenses:           
  Interest expense 7,911  -  -  7,911
  Noninterest expenses 27,867  2,187  2,358  32,412
  Provision for loan loss 6,558  -  -  6,558
Total external customer expenses 42,336  2,187  2,358  46,881
              
Inter-segment expenses           
  Interest expense 876  349  -  1,225
  Noninterest expenses 202  358  396  956
Total inter-segment expenses 1,078  707  396  2,181
              
Total expenses 43,414  2,894  2,754  49,062
              
Income before taxes $7,481 $1,543 $1,110 $10,134
Provision for income taxes          3,348
Consolidated net income         $6,786
              
Capital expenditures$2,374 $837 $2 $3,213
              
As of September 30, 2011           
Cash and cash equivalents$77,310 $383,358 $2,885 $463,553
Other segment assets 3,692,851  22,148  10,188  3,725,187
              
Total segment assets$3,770,161 $405,506 $13,073 $4,188,740
              

              
              
              
              
  For the three months ended September 30, 2010
   WSFS Bank Cash Connect Trust & Wealth Management Total
   (In Thousands)
External customer revenues:           
  Interest income$40,579 $- $- $40,579
  Noninterest income 10,172  3,523  730  14,425
Total external customer revenues 50,751  3,523  730  55,004
              
Inter-segment revenues:           
  Interest income 238  -  -  238
  Noninterest income 701  202  -  903
Total inter-segment revenues 939  202  -  1,141
              
Total revenue 51,690  3,725  730  56,145
              
External customer expenses:           
  Interest expense 10,402  -  -  10,402
  Noninterest expenses 23,916  (2,643)  819  22,092
  Provision for loan loss 9,976  -  -  9,976
Total external customer expenses 44,294  (2,643)  819  42,470
              
Inter-segment expenses           
  Interest expense -  238  -  238
  Noninterest expenses 202  377  324  903
Total inter-segment expenses 202  615  324  1,141
              
Total expenses 44,496  (2,028)  1,143  43,611
              
Income (loss) before taxes$7,194 $5,753 $(413) $12,534
Provision for income taxes          4,312
Consolidated net income         $8,222
              
Capital expenditures$1,463 $122 $2 $1,587
              
As of December 31, 2010           
Cash and cash equivalents$62,383 $271,168 $1,244 $334,795
Other segment assets 3,450,091  13,311  673  3,464,075
              
Total segment assets$3,512,474 $284,479 $1,917 $3,798,870
              

  For the nine months ended September 30, 2011
   WSFS Bank Cash Connect Trust & Wealth Management Total
   (In Thousands)
External customer revenues:           
  Interest income$119,057 $- $- $119,057
  Noninterest income 27,117  11,484  7,991  46,592
Total external customer revenues 146,174  11,484  7,991  165,649
              
Inter-segment revenues:           
  Interest income 913  -  3,132  4,045
  Noninterest income 2,486  524  -  3,010
Total inter-segment revenues 3,399  524  3,132  7,055
              
Total revenue 149,573  12,008  11,123  172,704
              
External customer expenses:           
  Interest expense 25,436  -  -  25,436
  Noninterest expenses 81,101  5,824  7,526  94,451
  Provision for loan loss 21,048  -  -  21,048
Total external customer expenses 127,585  5,824  7,526  140,935
              
Inter-segment expenses           
  Interest expense 3,132  913  -  4,045
  Noninterest expenses 524  1,162  1,324  3,010
Total inter-segment expenses 3,656  2,075  1,324  7,055
              
Total expenses 131,241  7,899  8,850  147,990
              
Income before taxes$18,332 $4,109 $2,273 $24,714
Income tax provision          8,199
Consolidated net income         $16,515
              
Capital expenditures$6,768 $1,014 $308 $8,090
              
As of September 30, 2011           
Cash and cash equivalents$77,310 $383,358 $2,885 $463,553
Other segment assets 3,692,851  22,148  10,188  3,725,187
              
Total segment assets$3,770,161 $405,506 $13,073 $4,188,740
              

  For the nine months ended September 30, 2010
   WSFS Bank Cash Connect Trust & Wealth Management Total
   ( In Thousands)
External customer revenues:           
  Interest income$122,591 $- $- $122,591
  Noninterest income 25,794  9,983  2,225  38,002
Total external customer revenues 148,385  9,983  2,225  160,593
              
Inter-segment revenues:           
  Interest income 685  -  -  685
  Noninterest income 2,130  577  -  2,707
Total inter-segment revenues 2,815  577  -  3,392
              
Total revenue 151,200  10,560  2,225  163,985
              
External customer expenses:           
  Interest expense 32,373  -  -  32,373
  Noninterest expenses 72,470  4,470  2,524  79,464
  Provision for loan loss 31,980  -  -  31,980
Total external customer expenses 136,823  4,470  2,524  143,817
              
Inter-segment expenses           
  Interest expense -   685  -  685
  Noninterest expenses 577  1,110  1,020  2,707
Total inter-segment expenses 577  1,795  1,020  3,392
              
Total expenses 137,400  6,265  3,544  147,209
              
Income (loss) before taxes $13,800 $4,295 $(1,319) $16,776
Income tax provision          4,739
Consolidated net income         $12,037
              
Capital expenditures$4,533 $129 $2 $4,664
              
As of December 31, 2010           
Cash and cash equivalents$62,383 $271,168 $1,244 $334,795
Other segment assets 3,450,091  13,311  673  3,464,075
              
Total segment assets$3,512,474 $284,479 $1,917 $3,798,870