Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

12. SEGMENT INFORMATION

In accordance with FASB ASC 280, Segment Reporting (ASC 280) 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 unaudited Consolidated Financial Statements. We have 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. 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 ATM vault cash and smart safe and cash logistics 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 segment provides a broad array of fiduciary, investment management, credit and deposit products to clients through four business lines. WSFS Wealth Investments provides insurance and brokerage products primarily to our retail banking clients. Cypress Capital Management, LLC is a registered investment advisor. Cypress’ primary market segment is high net worth individuals, offering a ‘balanced’ investment style focused on preservation of capital and current income. Christiana Trust provides fiduciary and investment services to personal trust clients, and trustee, agency, bankruptcy administration, 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 other business units to deliver investment management and fiduciary products and services.

Segment information for the three months ended March 31, 2016 and March 31, 2015 follows:

For the three months ended March 31, 2016:

(In Thousands)	WSFS Bank		Cash Connect		Wealth Management			Total
Statement of Operations
External customer revenues:
Interest income	$	48,038	$	—	$	2,008		$	50,046
Noninterest income		9,852		7,673		5,545			23,070
Total external customer revenues		57,890		7,673		7,553			73,116
Inter-segment revenues:
Interest income		1,061		—		1,895			2,956
Noninterest income		2,060		193		24			2,277
Total inter-segment revenues		3,121		193		1,919			5,233
Total revenue		61,011		7,866		9,472			78,349
External customer expenses:
Interest expense		4,497		—		193			4,690
Noninterest expenses		33,812		4,850		4,537			43,199
Provision for loan losses		815		—		(35	)		780
Total external customer expenses		39,124		4,850		4,695			48,669
Inter-segment expenses:
Interest expense		1,895		555		506			2,956
Noninterest expenses		217		715		1,345			2,277
Total inter-segment expenses		2,112		1,270		1,851			5,233
Total expenses		41,236		6,120		6,546			53,902
Income before taxes	$	19,775	$	1,746	$	2,926		$	24,447
Income tax provision									8,677
Consolidated net income								$	15,770
Capital expenditures	$	1,211	$	20	$	2		$	1,233
As of March 31, 2016:
Statement of Condition
Cash and cash equivalents	$	74,695	$	513,813	$	1,520		$	590,028
Goodwill		79,720		—		5,134			84,854
Other segment assets		4,812,640		3,173		194,299			5,010,112
Total segment assets	$	4,967,055	$	516,986	$	200,953		$	5,684,994

For the three months ended March 31, 2015:

(In Thousands)	WSFS Bank		Cash Connect		Wealth Management		Total
Statement of Operations
External customer revenues:
Interest income	$	40,823	$	—	$	2,028	$	42,851
Noninterest income		9,189		6,639		5,267		21,095
Total external customer revenues		50,012		6,639		7,295		63,946
Inter-segment revenues:
Interest income		871		—		1,447		2,318
Noninterest income		1,784		168		18		1,970
Total inter-segment revenues		2,655		168		1,465		4,288
Total revenue		52,667		6,807		8,760		68,234
External customer expenses:
Interest expense		3,912		—		122		4,034
Noninterest expenses		31,079		4,175		3,659		38,913
Provision for loan losses		733		—		53		786
Total external customer expenses		35,724		4,175		3,834		43,733
Inter-segment expenses
Interest expense		1,447		373		498		2,318
Noninterest expenses		186		614		1,170		1,970
Total inter-segment expenses		1,633		987		1,668		4,288
Total expenses		37,357		5,162		5,502		48,021
Income before taxes	$	15,310	$	1,645	$	3,258	$	20,213
Income tax provision								7,324
Consolidated net income								12,889
Capital expenditures (1)	$	497	$	234	$	3	$	734
As of December 31, 2015:
Statement of Condition
Cash and cash equivalents	$	65,663	$	493,165	$	2,351	$	561,179
Goodwill		80,078		—		5,134		85,212
Other segment assets		4,746,995		—		192,576		4,939,571
Total segment assets	$	4,892,736	$	493,165	$	200,061	$	5,585,962

(1) Capital expenditures amounts have been adjusted to correct errors that were not material to our Form 10-Q for the quarterly period ended March 31, 2015. Previously reported capital expenditures were $817,000 for WSFS Bank, $0 for Cash Connect, $0 for Wealth Management, and $817,000 for Total Consolidated Company.