Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

20. SEGMENT INFORMATION

In accordance with 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. 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. There is one segment for each of WSFS Bank, Cash Connect, and Trust and Wealth Management.

The WSFS Bank segment provides financial products to commercial and retail customers through its 55 offices located in Delaware (45), Pennsylvania (8) 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 Trust and Wealth Management division provides a broad array of fiduciary, investment management, credit and deposit products to clients through four business lines. Wealth Investments, Inc. provides insurance and brokerage products primarily to our retail banking clients. Cypress Capital Management, LLC is a registered investment advisor with over $661 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 $8.6 billion in assets under management and 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 Wealth Investments to deliver investment management and fiduciary products and services.

Segment information for the years ended December 31, 2014, 2013, and 2012 follows:

For the Year Ended December 31, 2014:	WSFS Bank		Cash Connect		Trust & Wealth Management		Total
(In Thousands)
External customer revenues:
Interest income	$	152,545	$	—	$	7,792	$	160,337
Noninterest income		34,461		25,698		18,119		78,278
Total external customer revenues		187,006		25,698		25,911		238,615
Inter-segment revenues:
Interest income		3,405		—		5,558		8,963
Noninterest income		6,814		804		114		7,732
Total inter-segment revenues		10,219		804		5,672		16,695
Total revenue		197,225		26,502		31,583		255,310
External customer expenses:
Interest expense		15,409		—		421		15,830
Noninterest expenses		120,027		15,449		12,343		147,819
Provision for loan loss		2,938		—		642		3,580
Total external customer expenses		138,374		15,449		13,406		167,229
Inter-segment expenses
Interest expense		5,558		1,384		2,021		8,963
Noninterest expenses		918		2,291		4,523		7,732
Total inter-segment expenses		6,476		3,675		6,544		16,695
Total expenses		144,850		19,124		19,950		183,924
Income before taxes	$	52,375	$	7,378	$	11,633	$	71,386
Provision for income taxes								17,629
Consolidated net income							$	53,757
Cash and cash equivalents	$	73,395	$	431,527	$	3,117	$	508,039
Goodwill		43,517		—		5,134		48,651
Other segment assets		4,107,212		2,006		187,412		4,296,630
Total segment assets at December 31, 2014	$	4,224,124	$	433,533	$	195,663	$	4,853,320
Capital expenditures	$	3,192	$	1,531	$	9	$	4,732

For the Year Ended December 31, 2013:	WSFS Bank		Cash Connect		Trust & Wealth Management		Total
(In Thousands)
External customer revenues:
Interest income	$	139,082	$	—	$	7,840	$	146,922
Noninterest income		40,479		23,746		15,926		80,151
Total external customer revenues		179,561		23,746		23,766		227,073
Inter-segment revenues:
Interest income		3,603		—		5,749		9,352
Noninterest income		6,346		845		109		7,300
Total inter-segment revenues		9,949		845		5,858		16,652
Total revenue		189,510		24,591		29,624		243,725
External customer expenses:
Interest expense		14,744		—		590		15,334
Noninterest expenses		107,195		12,950		12,784		132,929
Provision for loan loss		6,759		—		413		7,172
Total external customer expenses		128,698		12,950		13,787		155,435
Inter-segment expenses
Interest expense		5,749		1,541		2,062		9,352
Noninterest expenses		954		2,237		4,109		7,300
Total inter-segment expenses		6,703		3,778		6,171		16,652
Total expenses		135,401		16,728		19,958		172,087
Income before taxes	$	54,109	$	7,863	$	9,666	$	71,638
Provision for income taxes								24,756
Consolidated net income							$	46,882
Cash and cash equivalents	$	73,017	$	408,096	$	3,313	$	484,426
Goodwill		27,101		—		5,134		32,235
Other segment assets		3,811,424		1,965		185,713		3,999,102
Total segment assets at December 31, 2013	$	3,911,542	$	410,061	$	194,160	$	4,515,763
Capital expenditures	$	2,232	$	628	$	—	$	2,860

For the Year Ended December 31, 2012:	WSFS Bank		Cash Connect		Trust & Wealth Management			Total
(In Thousands)
External customer revenues:
Interest income	$	141,986	$	—	$	8,301		$	150,287
Noninterest income		54,225		18,749		13,719			86,693
Total external customer revenues		196,211		18,749		22,020			236,980
Inter-segment revenues:
Interest income		4,032		—		5,719			9,751
Noninterest income		8,563		779		105			9,447
Total inter-segment revenues		12,595		779		5,824			19,198
Total revenue		208,806		19,528		27,844			256,178
External customer expenses:
Interest expense		22,397		—		891			23,288
Noninterest expenses		112,071		9,549		11,725			133,345
Provision for loan loss		32,222		—		(169	)		32,053
Total external customer expenses		166,690		9,549		12,447			188,686
Inter-segment expenses
Interest expense		5,719		1,368		2,664			9,751
Noninterest expenses		884		2,219		6,344			9,447
Total inter-segment expenses		6,603		3,587		9,008			19,198
Total expenses		173,293		13,136		21,455			207,884
Income before taxes	$	35,513	$	6,392	$	6,389		$	48,294
Provision for income taxes									16,983
Consolidated net income								$	31,311
Cash and cash equivalents	$	68,419	$	430,382	$	2,086		$	500,887
Goodwill		23,012		—		5,134			28,146
Other segment assets		3,660,061		1,605		184,449			3,846,115
Total segment assets at December 31, 2012	$	3,751,492	$	431,987	$	191,669		$	4,375,148
Capital expenditures	$	7,796	$	405	$	27		$	8,228