17. 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. 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.

Our 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 insurance 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. The trust division of WSFS Bank (doing business as WSFS Institutional Services) provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional and corporate clients. The trust divisions of WSFS (doing business as Christiana Trust) provides personal trust and fiduciary services to families and individuals across the U.S. 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 Client Management serves high-net-worth clients by delivering credit and deposit products and partnering with other Wealth Management units to provide comprehensive solutions to clients.

The following tables show segment results for the three months ended March 31, 2019 and 2018:



	Three Months Ended March 31, 2019									Three Months Ended March 31, 2018
(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	$	96,946	$	—	$	2,631	$	99,577		$	65,290	$	—	$	2,323		$	67,613
Noninterest income	17,264		12,402		11,456		41,122			26,606		11,353		9,508			47,467
Total external customer revenues	114,210		12,402		14,087		140,699			91,896		11,353		11,831			115,080
Inter-segment revenues:
Interest income	3,792		—		4,005		7,797			2,968		—		2,363			5,331
Noninterest income	1,883		177		186		2,246			2,108		181		34			2,323
Total inter-segment revenues	5,675		177		4,191		10,043			5,076		181		2,397			7,654
Total revenue	119,885		12,579		18,278		150,742			96,972		11,534		14,228			122,734
External customer expenses:
Interest expense	15,136		—		1,127		16,263			9,503		—		396			9,899
Noninterest expenses	82,577		8,030		6,985		97,592			39,435		7,319		6,658			53,412
Provision for loan losses	7,286		—		368		7,654			3,661		—		(11		)	3,650
Total external customer expenses	104,999		8,030		8,480		121,509			52,599		7,319		7,043			66,961
Inter-segment expenses:
Interest expense	4,005		2,558		1,234		7,797			2,363		2,059		909			5,331
Noninterest expenses	363		545		1,338		2,246			215		672		1,436			2,323
Total inter-segment expenses	4,368		3,103		2,572		10,043			2,578		2,731		2,345			7,654
Total expenses	109,367		11,133		11,052		131,552			55,177		10,050		9,388			74,615
Income before taxes	$	10,518	$	1,446	$	7,226	$	19,190		$	41,795	$	1,484	$	4,840		$	48,119
Income tax provision							6,260										10,769
Consolidated net income							12,930										37,350
Net loss attributable to noncontrolling interest							(93		)								—
Net income attributable to WSFS							13,023										37,350

The following table shows significant components of segment net assets as of March 31, 2019 and December 31, 2018:



	March 31, 2019								December 31, 2018
(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	$	178,195	$	462,345	$	7,272	$	647,812	$	115,147	$	491,863	$	13,747	$	620,757
Goodwill	455,294		—		20,199		475,493		145,808		—		20,199		166,007
Other segment assets	10,831,733		6,469		222,910		11,061,112		6,225,820		7,743		228,543		6,462,106
Total segment assets	$	11,465,222	$	468,814	$	250,381	$	12,184,417	$	6,486,775	$	499,606	$	262,489	$	7,248,870
Capital expenditures	$	3,669	$	11	$	8	$	3,688	$	4,779	$	375	$	344	$	5,498