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 segment 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. Based on these criteria, we have identified three segments: WSFS Bank, Cash Connect®, and Wealth Management. We evaluate segment performance based on pretax ordinary income relative to resources used, and allocate resources based on these results.

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. 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 the following and other reasons, these departments are not considered discrete segments and are appropriately aggregated within the WSFS Bank segment in accordance with ASC 280.

The Cash Connect® segment provides ATM vault cash, cash safe and other cash logistics services in the U.S. 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, a registered investment adviser whose primary market segment is high-net-worth individuals, offers a "balanced" investment style focused on preservation of capital and providing current income. West Capital, a registered investment adviser, 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 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 results of operations for the years ended December 31, 2017, 2016, and 2015 shown in the following table.



	Year Ended December 31, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect		Wealth Management		Total
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
Provision for income taxes							58,246
Consolidated net income							$	50,244



	Year Ended December 31, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect			Wealth Management		Total
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
Provision for income taxes								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 1 - Summary of Significant Accounting Policies for further information.



	Year Ended December 31, 2015
	WSFS Bank		Cash Connect			Wealth Management		Total
(Dollars in thousands)
External customer revenues:
Interest income	$	174,636	$	—		$	7,940	$	182,576
Noninterest income	37,042		30,421		^(r)	22,793		90,256
Total external customer revenues	211,678		30,421			30,733		272,832
Inter-segment revenues:
Interest income	3,507		—			6,678		10,185
Noninterest income	7,988		873			96		8,957
Total inter-segment revenues	11,495		873			6,774		19,142
Total revenue	223,173		31,294			37,507		291,974
External customer expenses:
Interest expense	15,155		—			621		15,776
Noninterest expenses	129,138		19,271		^(r)	17,051		165,460
Provision for loan losses	7,476		—			314		7,790
Total external customer expenses	151,769		19,271			17,986		189,026
Inter-segment expenses
Interest expense	6,678		1,547			1,960		10,185
Noninterest expenses	969		2,612			5,376		8,957
Total inter-segment expenses	7,647		4,159			7,336		19,142
Total expenses	159,416		23,430			25,322		208,168
Income before taxes	$	63,757	$	7,864		$	12,185	$	83,806
Provision for income taxes								30,273
Consolidated net income								$	53,533

^(r) Noninterest income and noninterest expense for the period ended December 31, 2015 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Summary of Significant Accounting Policies for further information.

The table below provides asset information and capital expenditures for each of our segments.



	December 31,
	2017								2016
(Dollars in thousands)	WSFS Bank		Cash Connect		Wealth Management		Total		WSFS Bank		Cash Connect		Wealth Management		Total
Cash and cash equivalents	$	104,530	$	611,385	$	7,951	$	723,866	$	100,893	$	717,643	$	3,387	$	821,923
Goodwill	145,808		—		20,199		166,007		147,396		—		20,143		167,539
Other segment assets	5,882,910		6,078		220,679		6,109,667		5,545,611		3,533		226,664		5,775,808
Total segment assets	$	6,133,248	$	617,463	$	248,829	$	6,999,540	$	5,793,900	$	721,176	$	250,194	$	6,765,270
Capital expenditures	$	8,197	$	184	$	613	$	8,994	$	18,625	$	769	$	26	$	19,420