Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

As defined in FASB 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 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 unaudited 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.

Cash Connect^® provides ATM vault cash and smart safe and cash logistics 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 Wealth Management segment provides a broad array of fiduciary, investment management, credit and deposit products to clients through six business lines. WSFS Wealth Investments provides insurance and brokerage products primarily to our retail banking clients. Cypress Capital Management, LLC is a registered investment advisor. Cypress’ primary market segment is high net worth individuals, offering a ‘balanced’ investment style focused on preservation of capital and current income. West Capital Management, a registered investment advisor, is a fee-only wealth management firm which operates under a multi-family office philosophy and provides fully-customized solutions tailored to the unique needs of institutions and high net worth individuals. Christiana Trust provides fiduciary and investment services to personal trust clients, and trustee, agency, bankruptcy administration, custodial and commercial domicile services to corporate and institutional clients. Powdermill Financial Solutions is a multi-family office that specializes in providing unique, independent solutions to high net worth individuals, families and corporate executives through a coordinated, centralized approach. WSFS Private Banking serves high net worth clients by delivering credit and deposit products and partnering with other business units to deliver investment management and fiduciary products and services.

Segment information for the three months ended March 31, 2017 and 2016 is as follows:

	Three months ended March 31, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	58,688	$	—	$	2,138	$	60,826
Noninterest income	10,167		9,677		8,248		28,092
Total external customer revenues	68,855		9,677		10,386		88,918
Inter-segment revenues:
Interest income	1,996		—		2,065		4,061
Noninterest income	2,164		191		36		2,391
Total inter-segment revenues	4,160		191		2,101		6,452
Total revenue	73,015		9,868		12,487		95,370
External customer expenses:
Interest expense	7,463		—		260		7,723
Noninterest expenses	38,960		6,135		6,411		51,506
Provision for loan losses	1,716		—		446		2,162
Total external customer expenses	48,139		6,135		7,117		61,391
Inter-segment expenses:
Interest expense	2,065		1,405		591		4,061
Noninterest expenses	227		715		1,449		2,391
Total inter-segment expenses	2,292		2,120		2,040		6,452
Total expenses	50,431		8,255		9,157		67,843
Income before taxes	$	22,584	$	1,613	$	3,330	$	27,527
Income tax provision							8,590
Consolidated net income							18,937
Capital expenditures	$	2,088	$	22	$	254	$	2,364

	March 31, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	99,812	$	751,201	$	4,250	$	855,263
Goodwill	145,761		—		20,199		165,960
Other segment assets	5,608,912		4,097		218,667		5,831,676
Total segment assets	$	5,854,485	$	755,298	$	243,116	$	6,852,899

	Three months ended March 31, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®			Wealth Management			Total
Statement of Income
External customer revenues:
Interest income	$	48,038	$	—		$	2,008		$	50,046
Noninterest income	9,852		8,271		(r)	5,545			23,668
Total external customer revenues	57,890		8,271			7,553			73,714
Inter-segment revenues:
Interest income	1,061		—			1,895			2,956
Noninterest income	2,060		193			24			2,277
Total inter-segment revenues	3,121		193			1,919			5,233
Total revenue	61,011		8,464			9,472			78,947
External customer expenses:
Interest expense	4,497		—			193			4,690
Noninterest expenses	33,812		5,448		(r)	4,537			43,797
Provision for loan losses	815		—			(35		)	780
Total external customer expenses	39,124		5,448			4,695			49,267
Inter-segment expenses
Interest expense	1,895		555			506			2,956
Noninterest expenses	217		715			1,345			2,277
Total inter-segment expenses	2,112		1,270			1,851			5,233
Total expenses	41,236		6,718			6,546			54,500
Income before taxes	$	19,775	$	1,746		$	2,926		$	24,447
Income tax provision									8,677
Consolidated net income									15,770
Capital expenditures	$	1,211	$	20		$	2		$	1,233

	December 31, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	100,893	$	717,643	$	3,387	$	821,923
Goodwill	147,396		—		20,143		167,539
Other segment assets	5,545,611		3,533		226,664		5,775,808
Total segment assets	$	5,793,900	$	721,176	$	250,194	$	6,765,270

^(r) Noninterest income and Noninterest expense for the period ended March 31, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information.