6. 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, Cash Connect, (the ATM division of WSFS Bank), and Trust and Wealth Management. Trust and Wealth Management was reorganized during 2011 and is comprised of Montchanin, Christiana Trust, Monarch Entity Services LLC, Private Banking and WSFS Investment Group, Inc. in a single reportable segment because each has similar economic characteristics, products, customers and distribution methods. As required by ASC 280, all prior years’ information has been updated to reflect this presentation.

The WSFS Bank segment provides financial products to commercial and retail customers through its 51 offices located in Delaware (42), Pennsylvania (7) and Virginia (1) and Nevada (1). Retail and Commercial Banking, Commercial Real Estate Lending and other banking business units 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 the 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, Monarch Entity Services LLC, Montchanin, Private Banking and WSFS Investment Group, Inc. Christiana Trust was acquired in December 2010 and WSFS’ Trust and Wealth Management business was consolidated into Christiana Trust. Christiana Trust provides investment, fiduciary, and agency services from locations in Delaware and Nevada. These services are provided to individuals and families as well as corporations and institutions. Monarch Entity Services LLC provides commercial domicile services from locations in Delaware and Nevada. 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. WSFS Investment Group, Inc. markets various third-party insurance products and securities and Private Banking specializes in meeting the needs of professionals and their practices, including deposit services and credit needs of existing and start-up practices.

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 those that apply to our preparation of the accompanying Consolidated Financial Statements. Segment information for the three and nine months ended September 30, 2012 and 2011 follows:

For the three months ended September 30, 2012

WSFS Bank

Cash Connect

Trust &
Wealth
Management

Total

(In Thousands)

External customer revenues:

Interest income

34,475

—

2,039

36,514

Noninterest income

11,686

4,707

3,355

19,748

Total external customer revenues

46,161

4,707

5,394

56,262

Inter-segment revenues:

Interest income

944

—

1,358

2,302

Noninterest income

2,122

148

2,294

Total inter-segment revenues

3,066

148

1,382

4,596

Total revenue

49,227

4,855

6,776

60,858

External customer expenses:

Interest expense

5,377

—

244

5,621

Noninterest expenses

27,300

2,113

2,740

32,153

Provision for loan loss

2,997

—

754

3,751

Total external customer expenses

35,674

2,113

3,738

41,525

Inter-segment expenses

Interest expense

1,358

338

606

2,302

Noninterest expenses

172

586

1,536

2,294

Total inter-segment expenses

1,530

924

2,142

4,596

Total expenses

37,204

3,037

5,880

46,121

Income before taxes and extraordinary items

12,023

1,818

896

14,737

Provision for income taxes

4,758

Consolidated net income

9,979

Capital expenditures

1,289

311

1,603

As of September 30, 2012

Cash and cash equivalents

52,821

390,356

3,923

447,100

Other segment assets

3,622,291

1,976

189,965

3,814,232

Total segment assets

3,675,112

392,332

193,888

4,261,332

For the three months ended September 30, 2011


	WSFS Bank		Cash Connect		Trust & Wealth Management		Total
	(In Thousands)
External customer revenues:
Interest income	$	37,729	$	—	$	2,362	$	40,091
Noninterest income		9,389		4,235		3,300		16,924

Total external customer revenues		47,118		4,235		5,662		57,015


Inter-segment revenues:
Interest income		1,136		—		1,406		2,542
Noninterest income		1,793		202		21		2,016

Total inter-segment revenues		2,929		202		1,427		4,558


Total revenue		50,047		4,437		7,089		61,573


External customer expenses:
Interest expense		7,600		—		311		7,911
Noninterest expenses		27,524		2,187		2,701		32,412
Provision for loan loss		6,068		—		490		6,558

Total external customer expenses		41,192		2,187		3,502		46,881


Inter-segment expenses
Interest expense		1,406		349		787		2,542
Noninterest expenses		223		358		1,435		2,016

Total inter-segment expenses		1,629		707		2,222		4,558


Total expenses		42,821		2,894		5,724		51,439


Income before taxes and extraordinary items	$	7,226	$	1,543	$	1,365	$	10,134
Provision for income taxes								3,348

Consolidated net income							$	6,786


Capital expenditures	$	2,374	$	837	$	2	$	3,213


As of December 31, 2011
Cash and cash equivalents	$	48,107	$	416,949	$	2,961	$	468,017
Other segment assets		3,618,744		2,155		200,092		3,820,991


Total segment assets	$	3,666,851	$	419,104	$	203,053	$	4,289,008

For the nine months ended September 30, 2012


	WSFS Bank		Cash Connect		Trust & Wealth Management		Total
	(In Thousands)
External customer revenues:
Interest income	$	107,199	$	—	$	6,301	$	113,500
Noninterest income		42,238		13,254		10,006		65,498

Total external customer revenues		149,437		13,254		16,307		178,998


Inter-segment revenues:
Interest income		3,099		—		4,344		7,443
Noninterest income		6,368		568		79		7,015

Total inter-segment revenues		9,467		568		4,423		14,458


Total revenue		158,904		13,822		20,730		193,456


External customer expenses:
Interest expense		17,330		—		669		17,999
Noninterest expenses		81,267		6,628		8,264		96,159
Provision for loan loss		26,786		—		1,593		28,379

Total external customer expenses		125,383		6,628		10,526		142,537


Inter-segment expenses
Interest expense		4,344		1,008		2,091		7,443
Noninterest expenses		647		1,711		4,657		7,015

Total inter-segment expenses		4,991		2,719		6,748		14,458


Total expenses		130,374		9,347		17,274		156,995


Income before taxes and extraordinary items	$	28,530	$	4,475	$	3,456	$	36,461
Provision for income taxes								12,708

Consolidated net income							$	23,753


Capital expenditures	$	5,406	$	321	$	20	$	5,747


As of September 30, 2012
Cash and cash equivalents	$	52,821	$	390,356	$	3,923	$	447,100
Other segment assets		3,622,291		1,976		189,965		3,814,232


Total segment assets	$	3,675,112	$	392,332	$	193,888	$	4,261,332

For the nine months ended September 30, 2011


	WSFS Bank		Cash Connect		Trust & Wealth Management		Total
	(In Thousands)
External customer revenues:
Interest income	$	111,984	$	—	$	7,073	$	119,057
Noninterest income		25,275		11,484		9,833		46,592

Total external customer revenues		137,259		11,484		16,906		165,649


Inter-segment revenues:
Interest income		3,344		—		4,505		7,849
Noninterest income		5,610		524		93		6,227

Total inter-segment revenues		8,954		524		4,598		14,076


Total revenue		146,213		12,008		21,504		179,725


External customer expenses:
Interest expense		24,434		—		1,002		25,436
Noninterest expenses		79,866		5,824		8,761		94,451
Provision for loan loss		19,802		—		1,246		21,048

Total external customer expenses		124,102		5,824		11,009		140,935


Inter-segment expenses
Interest expense		4,505		913		2,431		7,849
Noninterest expenses		617		1,162		4,448		6,227

Total inter-segment expenses		5,122		2,075		6,879		14,076


Total expenses		129,224		7,899		17,888		155,011


Income before taxes and extraordinary items	$	16,989	$	4,109	$	3,616	$	24,714
Provision for income taxes								8,199

Consolidated net income							$	16,515


Capital expenditures	$	6,768	$	1,014	$	308	$	8,090


As of December 31, 2011
Cash and cash equivalents	$	48,107	$	416,949	$	2,961	$	468,017
Other segment assets		3,618,744		2,155		200,092		3,820,991


Total segment assets	$	3,666,851	$	419,104	$	203,053	$	4,289,008