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 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 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. 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 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 Wealth Client Management 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.

The following table shows segment results for the three months ended March 31, 2018 and 2017:



	Three months ended March 31, 2018									Three months ended March 31, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect^®		Wealth Management			Total		WSFS Bank		Cash Connect^®		Wealth Management		Total
Statements of Income
External customer revenues:
Interest income	$	65,290	$	—	$	2,323		$	67,613	$	58,688	$	—	$	2,138	$	60,826
Noninterest income	26,606		11,353		9,508			47,467		10,167		9,677		8,248		28,092
Total external customer revenues	91,896		11,353		11,831			115,080		68,855		9,677		10,386		88,918
Inter-segment revenues:
Interest income	2,968		—		2,363			5,331		1,996		—		2,065		4,061
Noninterest income	2,108		181		34			2,323		2,164		191		36		2,391
Total inter-segment revenues	5,076		181		2,397			7,654		4,160		191		2,101		6,452
Total revenue	96,972		11,534		14,228			122,734		73,015		9,868		12,487		95,370
External customer expenses:
Interest expense	9,503		—		396			9,899		7,463		—		260		7,723
Noninterest expenses	39,435		7,319		6,658			53,412		38,960		6,135		6,411		51,506
Provision for loan losses	3,661		—		(11		)	3,650		1,716		—		446		2,162
Total external customer expenses	52,599		7,319		7,043			66,961		48,139		6,135		7,117		61,391
Inter-segment expenses:
Interest expense	2,363		2,059		909			5,331		2,065		1,405		591		4,061
Noninterest expenses	215		672		1,436			2,323		227		715		1,449		2,391
Total inter-segment expenses	2,578		2,731		2,345			7,654		2,292		2,120		2,040		6,452
Total expenses	55,177		10,050		9,388			74,615		50,431		8,255		9,157		67,843
Income before taxes	$	41,795	$	1,484	$	4,840		$	48,119	$	22,584	$	1,613	$	3,330	$	27,527
Income tax provision								10,769								8,590
Consolidated net income								$	37,350							$	18,937

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



	March 31, 2018								December 31, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect^®		Wealth Management		Total		WSFS Bank		Cash Connect^®		Wealth Management		Total
Statements of Financial Condition
Cash and cash equivalents	$	112,124	$	588,862	$	10,103	$	711,089	$	104,530	$	611,385	$	7,951	$	723,866
Goodwill	145,808		—		20,199		166,007		145,808		—		20,199		166,007
Other segment assets	5,880,317		6,717		223,801		6,110,835		5,882,910		6,078		220,679		6,109,667
Total segment assets	$	6,138,249	$	595,579	$	254,103	$	6,987,931	$	6,133,248	$	617,463	$	248,829	$	6,999,540
Capital expenditures	$	2,070	$	32	$	122	$	2,224	$	8,197	$	184	$	613	$	8,994