GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

9. GOODWILL AND INTANGIBLE ASSETS

In accordance with ASC 805, Business Combinations (ASC 805) and ASC 350, Intangibles - Goodwill and Other (ASC 350), all assets acquired and liabilities assumed in purchase acquisitions, including goodwill, indefinite-lived intangibles and other intangibles are recorded at fair value as of acquisition date.

WSFS performs its annual goodwill impairment test on October 1 or more frequently if events and circumstances indicate that the fair value of a reporting unit is less than its carrying value. In between annual tests, management performs a qualitative review of goodwill quarterly as part of the Company's review of the overall business to ensure no events or circumstances have occurred that would impact its goodwill evaluation. During the three months ended March 31, 2021, management determined based on its qualitative assessment that it is not more likely than not that the fair values of our reporting units are less than their carrying values. No goodwill impairment exists during the three months ended March 31, 2021.

The following table shows the allocation of goodwill to the reportable operating segments for purposes of goodwill impairment testing: 

(Dollars in thousands)	WSFS Bank		Cash Connect		Wealth Management		Consolidated Company
December 31, 2020	$	452,629	$	—	$	20,199	$	472,828
Goodwill adjustments	—		—		—		—
March 31, 2021	$	452,629	$	—	$	20,199	$	472,828

ASC 350 requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so.

The following table summarizes the Company's intangible assets:

(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets		Amortization Period
March 31, 2021
Core deposits	$	93,811	$	(23,148)	$	70,663	10 years
Customer relationships	15,281		(6,919)		8,362		7-15 years
Non-compete agreements	221		(201)		20		5 years
Loan servicing rights(1)	5,511		(2,683)		2,828		10-25 years
Total intangible assets	$	114,824	$	(32,951)	$	81,873
December 31, 2020
Core deposits	$	95,711	$	(22,727)	$	72,984	10 years
Customer relationships	15,281		(6,600)		8,681		7-15 years
Non-compete agreements	221		(190)		31		5 years
Loan servicing rights(2)	5,302		(2,440)		2,862		10-25 years
Total intangible assets	$	116,515	$	(31,957)	$	84,558

(1)Includes reversal of impairment losses of $0.1 million for the three months ended March 31, 2021.

(2)Includes impairment losses of $0.2 million for the year ended December 31, 2020

The Company recognized amortization expense on intangible assets of $2.7 million for the three months ended March 31, 2021, compared to $2.8 million for the three months ended March 31, 2020.

The following table presents the estimated future amortization expense on intangible assets:  

(Dollars in thousands)	March 31, 2021
Remaining in 2021	$	8,477
2022	11,116
2023	10,964
2024	10,787
2025	10,535
Thereafter	29,994
Total	$	81,873