SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

16. SEGMENT INFORMATION

As defined in 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. The Company evaluates performance based on pretax net income relative to resources used, and allocate resources based on these results. The accounting policies applicable to the Company's segments are those that apply to its preparation of the accompanying unaudited Consolidated Financial Statements. Based on these criteria, the Company has 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 regulators, 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 in the WSFS Bank segment.

The Company's Cash Connect® segment provides ATM vault cash, smart safe and other 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 planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate, and institutional clients through multiple integrated businesses. WSFS Wealth® Investments provides financial advisory services along with annuities and brokerage products. Cypress, a registered investment adviser, is a fee-only wealth management firm managing a “balanced” investment style portfolio focused on preservation of capital and generating current income. West Capital, a registered investment adviser, is a fee-only wealth management firm operating under a multi-family office philosophy to provide customized solutions to institutions and high-net-worth individuals. WSFS Institutional Services® provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles. BMT-DE and Christiana Trust DE, which merged on April 1, 2022, provide personal trust and fiduciary services to families and individuals across the U.S. under The Bryn Mawr Trust Company of Delaware name. Powdermill® is a multi-family office specializing in providing independent solutions to high-net-worth individuals, families and corporate executives through a coordinated, centralized approach. WSFS Wealth Private Banking serves high-net-worth clients by delivering credit and deposit products and partnering with other Wealth Management businesses to provide comprehensive solutions to clients. BMTIA was a full-service insurance agency, through which the Bank offered insurance and related products and services to its customer base. This included casualty, property and allied insurance lines, as well as life insurance, annuities, medical insurance and accident and health insurance for groups and individuals. The BMTIA business was sold to Patriot Growth Insurance Services, LLC in June 2022.

The following tables show segment results for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30, 2022								Three Months Ended June 30, 2021
(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	$	157,174	$	—	$	2,846	$	160,020	$	110,725	$	—	$	2,177	$	112,902
Noninterest income	27,423		12,014		32,592		72,029		22,282		11,213		15,523		49,018
Total external customer revenues	184,597		12,014		35,438		232,049		133,007		11,213		17,700		161,920
Inter-segment revenues:
Interest income	2,098		406		8,868		11,372		842		328		3,031		4,201
Noninterest income	6,707		424		161		7,292		3,790		316		515		4,621
Total inter-segment revenues	8,805		830		9,029		18,664		4,632		644		3,546		8,822
Total revenue	193,402		12,844		44,467		250,713		137,639		11,857		21,246		170,742
External customer expenses:
Interest expense	6,149		—		256		6,405		5,983		—		170		6,153
Noninterest expenses	108,631		8,188		17,230		134,049		80,480		7,288		8,264		96,032
Provision for (recovery of) credit losses	7,975		—		293		8,268		(66,385)		—		(1,178)		(67,563)
Total external customer expenses	122,755		8,188		17,779		148,722		20,078		7,288		7,256		34,622
Inter-segment expenses:
Interest expense	9,274		1,207		891		11,372		3,359		207		635		4,201
Noninterest expenses	585		1,106		5,601		7,292		831		1,104		2,686		4,621
Total inter-segment expenses	9,859		2,313		6,492		18,664		4,190		1,311		3,321		8,822
Total expenses	132,614		10,501		24,271		167,386		24,268		8,599		10,577		43,444
Income before taxes	$	60,788	$	2,343	$	20,196	$	83,327	$	113,371	$	3,258	$	10,669	$	127,298
Income tax provision							22,425								31,687
Consolidated net income							60,902								95,611
Net income (loss) attributable to noncontrolling interest							162								(56)
Net income attributable to WSFS							$	60,740							$	95,667
Supplemental Information
Capital expenditures for the period ended	$	2,789	$	—	$	—	$	2,789	$	1,735	$	—	$	—	$	1,735

	Six Months Ended June 30, 2022								Six Months Ended June 30, 2021
(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	$	298,576	$	—	$	5,581	$	304,157	$	229,856	$	—	$	4,327	$	234,183
Noninterest income	46,248		22,084		64,271		132,603		45,630		20,915		30,295		96,840
Total external customer revenues	344,824		22,084		69,852		436,760		275,486		20,915		34,622		331,023
Inter-segment revenues:
Interest income	3,150		732		14,207		18,089		1,686		597		5,726		8,009
Noninterest income	13,197		789		347		14,333		7,485		602		916		9,003
Total inter-segment revenues	16,347		1,521		14,554		32,422		9,171		1,199		6,642		17,012
Total revenue	361,171		23,605		84,406		469,182		284,657		22,114		41,264		348,035
External customer expenses:
Interest expense	11,552		—		432		11,984		12,887		—		362		13,249
Noninterest expenses	257,132		15,737		35,637		308,506		161,024		14,586		16,041		191,651
Provision for (recovery of) credit losses	27,184		—		55		27,239		(85,978)		—		(1,745)		(87,723)
Total external customer expenses	295,868		15,737		36,124		347,729		87,933		14,586		14,658		117,177
Inter-segment expenses:
Interest expense	14,939		1,482		1,668		18,089		6,323		387		1,299		8,009
Noninterest expenses	1,136		2,251		10,946		14,333		1,518		2,191		5,294		9,003
Total inter-segment expenses	16,075		3,733		12,614		32,422		7,841		2,578		6,593		17,012
Total expenses	311,943		19,470		48,738		380,151		95,774		17,164		21,251		134,189
Income before taxes	$	49,228	$	4,135	$	35,668	$	89,031	$	188,883	$	4,950	$	20,013	$	213,846
Income tax provision							24,162								53,094
Consolidated net income							64,869								160,752
Net income attributable to noncontrolling interest							325								3
Net income attributable to WSFS							64,544								160,749
Supplemental Information
Capital expenditures for the period ended	$	4,436	$	—	$	—	$	4,436	$	3,005	$	—	$	—	$	3,005

The following table shows significant components of segment net assets as of June 30, 2022 and December 31, 2021:

	June 30, 2022								December 31, 2021
(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	$	1,018,601	$	624,794	$	33,214	$	1,676,609	$	1,039,046	$	477,806	$	16,087	$	1,532,939
Goodwill	753,065		—		130,051		883,116		452,629		—		20,199		472,828
Other segment assets	17,641,781		9,838		338,872		17,990,491		13,481,370		6,785		283,405		13,771,560
Total segment assets	$	19,413,447	$	634,632	$	502,137	$	20,550,216	$	14,973,045	$	484,591	$	319,691	$	15,777,327