SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

22. 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 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 consumer customers. Consumer 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 smart 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 Private Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals. The Bryn Mawr Trust Company of Delaware, formed by the merger of BMT-DE and Christiana Trust DE on April 1, 2022, provides personal trust and fiduciary services to families and individuals across the U.S. and internationally. WSFS Institutional Services® provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles. Private Wealth Management serves high-net-worth clients and institutions by providing trustee and advisory services, financial planning, customized investment strategies, brokerage products such as annuities and traditional banking services such as credit and deposit products tailored to its clientele. Private Wealth Management includes businesses that operate under the bank’s charter, through a broker/dealer and as a registered investment advisor (RIA). It generates revenue through fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody. 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. 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 years ended December 31, 2022, 2021, and 2020:

 

	Year Ended December 31, 2022
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statements of Income
External customer revenues:
Interest income	$	690,780	$	—	$	13,035	$	703,815
Noninterest income	79,800		55,519		124,815		260,134
Total external customer revenues	770,580		55,519		137,850		963,949
Inter-segment revenues:
Interest income	14,348		1,536		46,539		62,423
Noninterest income	27,534		1,610		654		29,798
Total inter-segment revenues	41,882		3,146		47,193		92,221
Total revenue	812,462		58,665		185,043		1,056,170
External customer expenses:
Interest expense	37,393		—		3,532		40,925
Noninterest expenses	465,999		36,777		71,550		574,326
Provision for credit losses	47,921		—		168		48,089
Total external customer expenses	551,313		36,777		75,250		663,340
Inter-segment expenses
Interest expense	48,075		9,831		4,517		62,423
Noninterest expenses	2,264		4,720		22,814		29,798
Total inter-segment expenses	50,339		14,551		27,331		92,221
Total expenses	601,652		51,328		102,581		755,561
Income before taxes	$	210,810	$	7,337	$	82,462	$	300,609
Income tax provision							77,961
Consolidated net income							$	222,648
Net income attributable to noncontrolling interest							273
Net income attributable to WSFS							$	222,375
Supplemental Information
Capital expenditures for the period ended	$	8,793	$	16	$	—	$	8,809

	Year Ended December 31, 2021
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statements of Income
External customer revenues:
Interest income	$	447,542	$	—	$	8,827	$	456,369
Noninterest income	79,310		42,818		63,352		185,480
Total external customer revenues	526,852		42,818		72,179		641,849
Inter-segment revenues:
Interest income	3,460		1,088		12,002		16,550
Noninterest income	15,988		1,240		1,354		18,582
Total inter-segment revenues	19,448		2,328		13,356		35,132
Total revenue	546,300		45,146		85,535		676,981
External customer expenses:
Interest expense	22,058		—		662		22,720
Noninterest expenses	328,277		29,465		20,774		378,516
Recovery of credit losses	(113,715)		—		(3,372)		(117,087)
Total external customer expenses	236,620		29,465		18,064		284,149
Inter-segment expenses
Interest expense	13,090		856		2,604		16,550
Noninterest expenses	2,594		4,636		11,352		18,582
Total inter-segment expenses	15,684		5,492		13,956		35,132
Total expenses	252,304		34,957		32,020		319,281
Income before taxes	$	293,996	$	10,189	$	53,515	$	357,700
Income tax provision							86,095
Consolidated net income							$	271,605
Net income attributable to noncontrolling interest							163
Net income attributable to WSFS							$	271,442
Supplemental Information
Capital expenditures for the period ended	$	6,344	$	232	$	—	$	6,576

	Year Ended December 31, 2020
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statements of Income
External customer revenues:
Interest income	$	505,258	$	—	$	9,147	$	514,405
Noninterest income	110,585		40,899		49,541		201,025
Total external customer revenues	615,843		40,899		58,688		715,430
Inter-segment revenues:
Interest income	4,930		851		10,747		16,528
Noninterest income	13,038		835		1,832		15,705
Total inter-segment revenues	17,968		1,686		12,579		32,233
Total revenue	633,811		42,585		71,267		747,663
External customer expenses:
Interest expense	46,428		—		2,022		48,450
Noninterest expenses	310,799		28,421		29,624		368,844
Provision for credit losses	149,453		—		3,727		153,180
Total external customer expenses	506,680		28,421		35,373		570,474
Inter-segment expenses
Interest expense	11,598		1,580		3,350		16,528
Noninterest expenses	2,667		3,340		9,698		15,705
Total inter-segment expenses	14,265		4,920		13,048		32,233
Total expenses	520,945		33,341		48,421		602,707
Income before taxes	$	112,866	$	9,244	$	22,846	$	144,956
Income tax provision							31,636
Consolidated net income							$	113,320
Net loss attributable to noncontrolling interest							(1,454)
Net income attributable to WSFS							$	114,774
Supplemental Information
Capital expenditures for the period ended	$	6,499	$	420	$	240	$	7,159

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

	December 31,
	2022								2021
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total		WSFS Bank		Cash Connect®		Wealth Management		Total
Cash and cash equivalents	$	317,022	$	476,850	$	43,386	$	837,258	$	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	17,824,946		10,429		358,485		18,193,860		13,481,370		6,785		283,405		13,771,560
Total segment assets	$	18,895,554	$	487,279	$	531,922	$	19,914,755	$	14,973,045	$	484,591	$	319,691	$	15,777,327