Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Information

6. SEGMENT INFORMATION

Under the definition of FASB ASC 280, Segment Reporting (“ASC 280”) (Formerly SFAS No. 131, Disclosures About Segments of an Enterprise and Related Information) we discuss our business in three segments. There is one segment for each of WSFS Bank, Cash Connect, (the ATM division of WSFS Bank), and Trust and Wealth Management. Trust and Wealth Management is comprised of Montchanin, Christiana Trust, Private Banking and WSFS Investment Group, Inc. in a single reportable segment because each has similar economic characteristics, products, customers and distribution methods. As required by ASC 280, all prior years’ information has been updated to reflect this presentation.

The WSFS Bank segment provides financial products to commercial and retail customers through its 51 offices located in Delaware (42), Pennsylvania (7) and Virginia (1) and Nevada (1). Retail and Commercial Banking, Commercial Real Estate Lending and other banking business units are operating departments of WSFS. 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. Because of these and other reasons, these departments are not considered discrete segments and are appropriately aggregated within the WSFS Bank segment in accordance with ASC 280.

Cash Connect provides turnkey ATM services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry. 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 division provides a broad array of fiduciary, investment management, credit and deposit products to clients through four businesses. WSFS Investment Group, Inc. provides insurance and brokerage products primarily to our retail banking clients. Cypress Capital Management, LLC is a registered investment advisor with over $624 million in assets under management. Cypress’ primary market segment is high net worth individuals, offering a ‘balanced’ investment style focused on preservation of capital and current income. Christiana Trust, with $16.4 billion in assets under administration, provides fiduciary and investment services to personal trust clients, and trustee, agency, custodial and commercial domicile services to corporate and institutional clients. WSFS Private Banking serves high net worth clients by delivering credit and deposit products and partnering with Cypress, Christiana and WSFS Investment Group to deliver investment management and fiduciary products and services.

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 ordinary 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 Consolidated Financial Statements. Segment information for the three months ended March 31, 2013 and 2012 follows:

For the three months ended March 31, 2013

	WSFS Bank		Cash Connect		Trust & Wealth Management			Total
	(In Thousands)
External customer revenues:
Interest income	$	33,600	$	—	$	1,991		$	35,591
Noninterest income		9,227		5,027		3,820			18,074
Total external customer revenues		42,827		5,027		5,811			53,665
Inter-segment revenues:
Interest income		903		—		1,431			2,334
Noninterest income		1,650		200		26			1,876
Total inter-segment revenues		2,553		200		1,457			4,210
Total revenue		45,380		5,227		7,268			57,875
External customer expenses:
Interest expense		3,840		—		171			4,011
Noninterest expenses		26,430		2,992		2,948			32,370
Provision for loan loss		2,246		—		(15	)		2,231
Total external customer expenses		32,516		2,992		3,104			38,612
Inter-segment expenses
Interest expense		1,431		371		532			2,334
Noninterest expenses		226		550		1,100			1,876
Total inter-segment expenses		1,657		921		1,632			4,210
Total expenses		34,173		3,913		4,736			42,822
Income before taxes	$	11,207	$	1,314	$	2,532		$	15,053
Provision for income taxes									5,313
Consolidated net income								$	9,740
As of March 31, 2013
Cash and cash equivalents	$	53,517	$	474,842	$	2,253		$	530,612
Other segment assets		3,640,122		2,943		180,966			3,824,031
Total segment assets	$	3,693,639	$	477,785	$	183,219		$	4,354,643
Capital expenditures	$	773	$	183	$	—		$	956

For the three months ended March 31, 2012

	WSFS Bank		Cash Connect		Trust & Wealth Management			Total
	(In Thousands)
External customer revenues:
Interest income	$	37,036	$	—	$	2,187		$	39,223
Noninterest income		9,528		4,074		3,156			16,758
Total external customer revenues		46,564		4,074		5,343			55,981
Inter-segment revenues:
Interest income		960		—		1,227			2,187
Noninterest income		2,061		173		—			2,234
Total inter-segment revenues		3,021		173		1,227			4,421
Total revenue		49,585		4,247		6,570			60,402
External customer expenses:
Interest expense		6,475		—		218			6,693
Noninterest expenses		26,338		1,972		2,679			30,989
Provision for loan loss		8,296		—		(51	)		8,245
Total external customer expenses		41,109		1,972		2,846			45,927
Inter-segment expenses
Interest expense		1,227		334		626			2,187
Noninterest expenses		173		525		1,536			2,234
Total inter-segment expenses		1,400		859		2,162			4,421
Total expenses		42,509		2,831		5,008			50,348
Income (loss) before taxes	$	7,076	$	1,416	$	1,562		$	10,054
Provision for income taxes									3,610
Consolidated net income				.				$	6,444
As of December 31, 2012
Cash and cash equivalents	$	68,419	$	430,382	$	2,086		$	500,887
Other segment assets		3,683,073		1,605		189,583			3,874,261
Total segment assets	$	3,751,492	$	431,987	$	191,669		$	4,375,148
Capital expenditures	$	1,713	$	156	$	64		$	1,933