SEGMENT INFORMATION

9 Months Ended

Sep. 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. Bryn Mawr Trust® is our predominant Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals. 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 merged on April 1, 2022 under The Bryn Mawr Trust Company of Delaware name. BMT-DE provides personal trust and fiduciary services to families and individuals across the U.S. and internationally. 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 nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30, 2022								Three Months Ended September 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	$	183,107	$	—	$	3,458	$	186,565	$	107,226	$	—	$	2,225	$	109,451
Noninterest income	17,585		15,416		29,650		62,651		15,896		11,201		15,516		42,613
Total external customer revenues	200,692		15,416		33,108		249,216		123,122		11,201		17,741		152,064
Inter-segment revenues:
Interest income	4,570		416		13,658		18,644		893		236		3,033		4,162
Noninterest income	6,906		431		222		7,559		4,044		322		184		4,550
Total inter-segment revenues	11,476		847		13,880		26,203		4,937		558		3,217		8,712
Total revenue	212,168		16,263		46,988		275,419		128,059		11,759		20,958		160,776
External customer expenses:
Interest expense	8,923		—		811		9,734		4,808		—		152		4,960
Noninterest expenses	104,817		9,646		18,454		132,917		80,398		7,531		8,517		96,446
Provision for (recovery of) credit losses	7,463		—		(9)		7,454		(19,949)		—		(1,361)		(21,310)
Total external customer expenses	121,203		9,646		19,256		150,105		65,257		7,531		7,308		80,096
Inter-segment expenses:
Interest expense	14,074		3,414		1,156		18,644		3,269		245		648		4,162
Noninterest expenses	653		1,185		5,721		7,559		506		1,162		2,882		4,550
Total inter-segment expenses	14,727		4,599		6,877		26,203		3,775		1,407		3,530		8,712
Total expenses	135,930		14,245		26,133		176,308		69,032		8,938		10,838		88,808
Income before taxes	$	76,238	$	2,018	$	20,855	$	99,111	$	59,027	$	2,821	$	10,120	$	71,968
Income tax provision							25,767								17,516
Consolidated net income							73,344								54,452
Net (loss) income attributable to noncontrolling interest							(38)								46
Net income attributable to WSFS							$	73,382							$	54,406
Supplemental Information
Capital expenditures for the period ended	$	3,213	$	16	$	—	$	3,229	$	1,717	$	—	$	—	$	1,717

	Nine Months Ended September 30, 2022								Nine Months Ended September 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	$	481,683	$	—	$	9,039	$	490,722	$	337,082	$	—	$	6,552	$	343,634
Noninterest income	63,833		37,500		93,921		195,254		61,526		32,116		45,811		139,453
Total external customer revenues	545,516		37,500		102,960		685,976		398,608		32,116		52,363		483,087
Inter-segment revenues:
Interest income	7,720		1,148		27,865		36,733		2,579		833		8,759		12,171
Noninterest income	20,103		1,220		569		21,892		11,529		924		1,100		13,553
Total inter-segment revenues	27,823		2,368		28,434		58,625		14,108		1,757		9,859		25,724
Total revenue	573,339		39,868		131,394		744,601		412,716		33,873		62,222		508,811
External customer expenses:
Interest expense	20,475		—		1,243		21,718		17,695		—		514		18,209
Noninterest expenses	361,949		25,383		54,091		441,423		241,422		22,117		24,558		288,097
Provision for (recovery of) credit losses	34,647		—		46		34,693		(105,927)		—		(3,106)		(109,033)
Total external customer expenses	417,071		25,383		55,380		497,834		153,190		22,117		21,966		197,273
Inter-segment expenses:
Interest expense	29,013		4,896		2,824		36,733		9,592		632		1,947		12,171
Noninterest expenses	1,789		3,436		16,667		21,892		2,024		3,353		8,176		13,553
Total inter-segment expenses	30,802		8,332		19,491		58,625		11,616		3,985		10,123		25,724
Total expenses	447,873		33,715		74,871		556,459		164,806		26,102		32,089		222,997
Income before taxes	$	125,466	$	6,153	$	56,523	$	188,142	$	247,910	$	7,771	$	30,133	$	285,814
Income tax provision							49,929								70,610
Consolidated net income							138,213								215,204
Net income attributable to noncontrolling interest							287								49
Net income attributable to WSFS							$	137,926							$	215,155
Supplemental Information
Capital expenditures for the period ended	$	7,649	$	16	$	—	$	7,665	$	4,722	$	—	$	—	$	4,722

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

	September 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	$	436,447	$	559,371	$	35,573	$	1,031,391	$	1,039,046	$	477,806	$	16,087	$	1,532,939
Goodwill	753,586		—		130,051		883,637		452,629		—		20,199		472,828
Other segment assets	17,718,878		6,603		344,878		18,070,359		13,481,370		6,785		283,405		13,771,560
Total segment assets	$	18,908,911	$	565,974	$	510,502	$	19,985,387	$	14,973,045	$	484,591	$	319,691	$	15,777,327