10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________________________________________

FORM 10-Q

___________________________________________________________________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-35638

___________________________________________________________________________________

WSFS FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

___________________________________________________________________________________

Delaware	22-2866913
(State or other jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification Number)
WSFS Bank Center, 500 Delaware Avenue, Wilmington, Delaware 19801
(Address of principal executive offices)
(302) 792-6000
Registrant’s telephone number, including area code:

___________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files),    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐  (Do not check if smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The Registrant had 31,418,069 shares of common stock, par value $0.01 per share, outstanding at August 3, 2017.

WSFS FINANCIAL CORPORATION

FORM 10-Q

TABLE OF CONTENTS

	PART I. Financial Information	Page
	Forward-Looking Statements	3
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Income for the Three and Six Months Ended June 30, 2017 and 2016	5
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2017 and 2016	6
	Consolidated Statements of Financial Condition as of June 30, 2017 and December 31, 2016	7
	Consolidated Statements of Changes in Stockholders' Equity for the Six Months Ended June 30, 2017 and 2016	8
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016	9
	Notes to the Consolidated Financial Statements for the Three and Six Months Ended June 30, 2017 and 2016	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	49
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	62
Item 4.	Controls and Procedures	62
PART II. Other Information
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults upon Senior Securities	64
Item 4.	Mine Safety Disclosures	64
Item 5.	Other Information	64
Item 6.	Exhibits	64
	Signatures	65
Exhibit 31.1	Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101.INS	Instance Document
Exhibit 101.SCH	Schema Document
Exhibit 101.CAL	Calculation Linkbase Document
Exhibit 101.LAB	Labels Linkbase Document
Exhibit 101.PRE	Presentation Linkbase Document
Exhibit 101.DEF	Definition Linkbase Document

2

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, and exhibits thereto, contains estimates, predictions, opinions, projections and other “forward-looking statements” as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company’s predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects and management’s outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations. The words “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project” and similar expressions, among others, generally identify forward-looking statements. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties (which change over time) and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to:

• those related to difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the markets in which the Company operates and in which its loans are concentrated, including the effects of declines in housing markets, an increase in unemployment levels and slowdowns in economic growth;

• the Company’s level of nonperforming assets and the costs associated with resolving problem loans including litigation and other costs;

• possible additional loan losses and impairment in the collectability of loans;

• changes in market interest rates, which may increase funding costs and reduce earning asset yields and thus reduce margin;

• the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of the Company’s investment securities portfolio;

• the credit risk associated with the substantial amount of commercial real estate, construction and land development and commercial and industrial loans in our loan portfolio;

• the extensive federal and state regulation, supervision and examination governing almost every aspect of the Company’s operations including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued in accordance with this statute and potential expenses associated with complying with such regulations;

• the Company’s ability to comply with applicable capital and liquidity requirements (including the finalized Basel III capital standards), including our ability to generate liquidity internally or raise capital on favorable terms;

• possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations;

• conditions in the financial markets that may limit the Company’s access to additional funding to meet its liquidity needs;

• any impairment of the Company’s goodwill or other intangible assets;

• failure of the financial and operational controls of the Company’s Cash Connect^® division;

• the success of the Company’s growth plans, including the successful integration of past and future acquisitions;

• the Company’s ability to fully realize the cost savings and other benefits of its acquisitions, business disruption following those acquisitions, and post-acquisition customer acceptance of the Company’s products and services and related customer disintermediation;

• negative perceptions or publicity with respect to the Company’s trust and wealth management business;

• system failure or cybersecurity breaches of the Company’s network;

• the Company’s ability to recruit and retain key employees;

• the effects of problems encountered by other financial institutions that adversely affect the Company or the banking industry generally;

• the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes as well as effects from geopolitical instability and man-made disasters including terrorist attacks;

• possible changes in the speed of loan prepayments by the Company’s customers and loan origination or sales volumes;

• possible changes in the speed of prepayments of mortgage-backed securities due to changes in the interest rate environment, and the related acceleration of premium amortization on prepayments in the event that prepayments accelerate;

3

• regulatory limits on the Company’s ability to receive dividends from its subsidiaries and pay dividends to its shareholders;

• the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, regulatory and compliance risk resulting from developments related to any of the risks discussed above; and

• the effects of other risks and uncertainties, discussed in the Company’s Form 10-K for the year ended December 31, 2016 and other documents filed by the Company with the Securities and Exchange Commission from time to time. 

Forward-looking statements speak only as of the date they are made, and the Company assumes no obligation to revise or update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company for any reason, except as required by law.

4

WSFS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
(Dollars in thousands, except per share data)	(Unaudited)
Interest income:
Interest and fees on loans	$	56,073	$	45,983	$	110,754	$	90,545
Interest on mortgage-backed securities	4,782		3,910		9,177		7,804
Interest and dividends on investment securities:
Taxable	6		85		123		162
Tax-exempt	1,130		1,141		2,262		2,284
Other interest income	343		384		844		754
	62,334		51,503		123,160		101,549
Interest expense:
Interest on deposits	3,341		2,204		6,416		4,322
Interest on senior debt	2,121		1,175		4,242		2,117
Interest on Federal Home Loan Bank advances	1,797		1,124		3,655		2,172
Interest on federal funds purchased and securities sold under agreements to repurchase	235		162		436		344
Interest on trust preferred borrowings	472		397		918		768
Interest on other borrowings	54		27		76		56
	8,020		5,089		15,743		9,779
Net interest income	54,314		46,414		107,417		91,770
Provision for loan losses	1,843		1,254		4,005		2,034
Net interest income after provision for loan losses	52,471		45,160		103,412		89,736
Noninterest income:
Credit/debit card and ATM income	8,925		7,253		17,056		14,154
Investment management and fiduciary income	8,835		6,282		16,874		11,536
Deposit service charges	4,560		4,342		8,957		8,618
Mortgage banking activities, net	1,844		1,816		3,029		3,470
Securities gains, net	708		545		1,028		850
Loan fee income	451		480		1,000		957
Bank owned life insurance income	302		211		578		442
Other income	6,051		4,578		11,246		9,149
	31,676		25,507		59,768		49,176
Noninterest expense:
Salaries, benefits and other compensation	28,223		23,509		57,059		46,385
Occupancy expense	4,684		3,955		9,846		8,225
Equipment expense	3,498		2,516		6,622		4,989
Professional fees	2,669		2,934		4,304		5,337
Data processing and operations expenses	1,750		1,522		3,368		3,064
Marketing expense	932		801		1,556		1,465
Loan workout and OREO expenses	499		45		1,020		548
FDIC expenses	594		773		1,123		1,611
Corporate development expense	366		549		704		1,118
Other operating expense	9,512		8,081		18,631		15,741
	52,727		44,685		104,233		88,483
Income before taxes	31,420		25,982		58,947		50,429
Income tax provision	10,850		8,504		19,440		17,181
Net income	$	20,570	$	17,478	$	39,507	$	33,248
Earnings per share:
Basic	$	0.65	$	0.59	$	1.26	$	1.12
Diluted	$	0.64	$	0.58	$	1.22	$	1.10

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

5

WSFS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
(Dollars in thousands)	(Unaudited)						(Unaudited)
Net Income	$	20,570		$	17,478		$	39,507		$	33,248
Other comprehensive income:
Net change in unrealized gains on investment securities available for sale
Net unrealized gains arising during the period, net of tax expense of $1,958, $2,870, $2,737 and $9,350, respectively	3,241			4,683			4,513			15,255
Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of $253, $207, $367 and $323, respectively	(455		)	(338		)	(661		)	(527		)
	2,786			4,345			3,852			14,728
Net change in securities held to maturity
Amortization of unrealized gain on securities reclassified to held-to-maturity, net of tax expense of $62, $62, $121 and $127, respectively	(97		)	(100		)	(198		)	(203		)
Net change in unfunded pension liability
Change in unfunded pension liability related to unrealized (loss) gain, prior service cost and transition obligation, net of tax (benefit) expense of ($15), ($13), ($27) and $280, respectively	(22		)	(22		)	(45		)	456
Net change in cash flow hedge
Net unrealized gain arising during the period, net of tax expense of $161, $0, $92 and $0, respectively	262			—			150			—
Total other comprehensive income	2,929			4,223			3,759			14,981
Total comprehensive income	$	23,499		$	21,701		$	43,266		$	48,229

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

6

WSFS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	June 30, 2017			December 31, 2016
(Dollars in thousands, except per share and share data)	(Unaudited)
Assets:
Cash and due from banks	$	118,555		$	119,929
Cash in non-owned ATMs	623,232			698,454
Interest-bearing deposits in other banks including collateral of $3,380 at June 30, 2017 and December 31, 2016	3,524			3,540
Total cash and cash equivalents	745,311			821,923
Investment securities, available for sale (amortized cost of $825,488 at June 30, 2017 and $807,761 at December 31, 2016)	818,495			794,543
Investment securities, held to maturity-at cost (fair value of $163,903 at June 30, 2017 and $163,232 at December 31, 2016)	162,598			164,346
Loans, held for sale at fair value	35,425			54,782
Loans, net of allowance for loan losses of $40,005 at June 30, 2017 and $39,751 at December 31, 2016	4,579,715			4,444,375
Bank owned life insurance	102,007			101,425
Stock in Federal Home Loan Bank of Pittsburgh-at cost	35,832			38,248
Other real estate owned	2,121			3,591
Accrued interest receivable	16,742			17,027
Premises and equipment	47,505			48,871
Goodwill	166,007			167,539
Intangible assets	23,976			23,708
Other assets	86,693			84,892
Total assets	$	6,822,427		$	6,765,270
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing demand	$	1,319,749		$	1,266,306
Interest-bearing demand	927,465			935,333
Money market	1,297,024			1,257,520
Savings	572,476			547,293
Time	311,804			332,624
Jumbo certificates of deposit – customer	223,311			260,560
Total customer deposits	4,651,829			4,599,636
Brokered deposits	182,221			138,802
Total deposits	4,834,050			4,738,438
Federal funds purchased and securities sold under agreements to repurchase	65,000			130,000
Federal Home Loan Bank advances	823,651			854,236
Trust preferred borrowings	67,011			67,011
Senior debt	152,313			152,050
Other borrowed funds	54,779			64,150
Accrued interest payable	2,405			1,151
Other liabilities	100,595			70,898
Total liabilities	6,099,804			6,077,934
Stockholders’ Equity:
Common stock $0.01 par value, 65,000,000 shares authorized; issued 56,173,802 at June 30, 2017 and 55,995,219 at December 31, 2016	581			580
Capital in excess of par value	331,905			329,457
Accumulated other comprehensive loss	(3,858		)	(7,617		)
Retained earnings	662,186			627,078
Treasury stock at cost, 24,739,145 shares at June 30, 2017 and 24,605,145 shares at December 31, 2016	(268,191		)	(262,162		)
Total stockholders’ equity	722,623			687,336
Total liabilities and stockholders’ equity	$	6,822,427		$	6,765,270

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

7

WSFS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(Unaudited)

(Dollars and share data in thousands)	Shares	Common Stock		Capital in Excess of Par Value		Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Treasury Stock			Total Shareholders' Equity
Balance, December 31, 2015	55,945,245	$	560	$	256,435	$	696		$	570,630		$	(247,850	)	$	580,471
Net Income	—	—		—		—			33,248			—			33,248
Other comprehensive income	—	—		—		14,981			—			—			14,981
Cash dividend, $0.12 per share	—	—		—		—			(3,556		)	—			(3,556		)
Issuance of common stock including proceeds from exercise of common stock options	145,276	2		1,721		—			—			—			1,723
Stock-based compensation expense	—	—		1,363		—			—			—			1,363
Repurchase of common stock, 359,371 shares	—	—		—		—			—			(11,034		)	(11,034		)
Balance, June 30, 2016	56,090,521	$	562	$	259,519	$	15,677		$	600,322		$	(258,884	)	$	617,196
Balance, December 31, 2016	55,995,219	$	580	$	329,457	$	(7,617	)	$	627,078		$	(262,162	)	$	687,336
Net Income	—	—		—		—			39,507			—			39,507
Other comprehensive income	—	—		—		3,759			—			—			3,759
Cash dividend, $0.14 per share	—	—		—		—			(4,399		)	—			(4,399		)
Issuance of common stock including proceeds from exercise of common stock options	178,583	1		884		—			—			—			885
Stock-based compensation expense	—	—		1,564		—			—			—			1,564
Repurchase of common stock, 133,000 shares	—	—		—		—			—			(6,029		)	(6,029		)
Balance, June 30, 2017	56,173,802	$	581	$	331,905	$	(3,858	)	$	662,186		$	(268,191	)	$	722,623

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

8

WSFS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2017			2016
(Dollars in thousands)	(Unaudited)
Operating activities:
Net Income	$	39,507		$	33,248
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	4,005			2,034
Depreciation of premises and equipment, net	4,286			3,699
Amortization of fees and discounts, net	10,266			8,239
Amortization of intangible assets	1,639			1,015
Decrease (increase) in accrued interest receivable	285			(124		)
Increase in other assets	(8,156		)	(2,440		)
Origination of loans held for sale	(181,851		)	(152,484		)
Proceeds from sales of loans held for sale	192,130			160,686
Gain on mortgage banking activities, net	(3,029		)	(3,470		)
Gain on sale of securities, net	(1,028		)	(850		)
Stock-based compensation expense	1,564			1,480
Increase in accrued interest payable	1,254			1,272
Decrease in other liabilities	(1,004		)	(473		)
Loss on sale of other real estate owned and valuation adjustments, net	131			162
Deferred income tax expense	2,808			3,821
Increase in value of bank owned life insurance	(582		)	(1,283		)
Increase in capitalized interest, net	(2,334		)	(2,688		)
Net cash provided by operating activities	$	59,891		$	51,844
Investing activities:
Purchases of investment securities held to maturity	$	—		$	(3,329	)
Repayments, maturities and calls of investment securities held to maturity	780			1,810
Sale of investment securities available for sale	351,614			101,348
Purchases of investment securities available for sale	(481,978		)	(159,684		)
Repayments of investment securities available for sale	144,208			35,570
Net increase in loans	(135,856		)	(74,579		)
Purchases of stock of Federal Home Loan Bank of Pittsburgh	(100,438		)	(38,599		)
Redemptions of stock of Federal Home Loan Bank of Pittsburgh	102,854			31,179
Sales of other real estate owned	4,105			2,657
Investment in premises and equipment	(4,490		)	(3,870		)
Sales of premises and equipment	1,585			—
Net cash used for investing activities	$	(117,616	)	$	(107,497	)

9

	Six Months Ended June 30,
	2017			2016
(Dollars in thousands)	(Unaudited)
Financing activities:
Net increase in demand and saving deposits	$	101,267		$	17,446
Decrease in time deposits	(58,069		)	(46,594		)
Increase in brokered deposits	43,419			2,396
Decrease in loan payable	(376		)	(386		)
Receipts from FHLB advances	72,320,785			57,591,203
Repayments of FHLB advances	(72,351,370		)	(57,373,950		)
Receipts from federal funds purchased and securities sold under agreement to repurchase	12,312,000			16,434,870
Repayments of federal funds purchased and securities sold under agreement to repurchase	(12,377,000		)	(16,512,070		)
Dividends paid	(4,399		)	(3,556		)
Issuance of common stock and exercise of common stock options	885			1,723
Issuance of senior debt	—			98,319
Purchase of treasury stock	(6,029		)	(11,034		)
Net cash (used) provided by financing activities	$	(18,887	)	$	198,367
(Decrease) increase in cash and cash equivalents	(76,612		)	142,714
Cash and cash equivalents at beginning of period	821,923			561,179
Cash and cash equivalents at end of period	$	745,311		$	703,893
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest during the period	$	14,490		$	8,507
Cash paid for income taxes, net	10,352			12,493
Loans transferred to other real estate owned	2,766			674
Loans transferred to portfolio from held-for-sale at fair value	11,015			3,670
Net change in accumulated other comprehensive income	3,759			14,981
Non-cash goodwill adjustments, net	(1,532		)	(360		)

The accompanying notes are an integral part of these unaudited Consolidated Financial Statements.

10

WSFS FINANCIAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017

(UNAUDITED)

1. BASIS OF PRESENTATION

General

Our unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (the Company, our Company, we, our or us), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital) and Cypress Capital Management, LLC (Cypress). We also have one unconsolidated subsidiary, WSFS Capital Trust III (the Capital Trust). WSFS Bank has three wholly-owned subsidiaries: WSFS Wealth Investments, 1832 Holdings, Inc. and Monarch Entity Services LLC (Monarch).

Overview

Founded in 1832, the Bank is one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). We provide residential and commercial real estate, commercial and consumer lending services, as well as retail deposit and cash management services. Lending activities are funded primarily with customer deposits and borrowings. In addition, we offer a variety of wealth management and trust services to personal and corporate customers. The Federal Deposit Insurance Corporation (FDIC) insures our customers’ deposits to their legal maximums. We serve our customers primarily from our 76 offices located in Delaware (45), Pennsylvania (29), Virginia (1) and Nevada (1) and through our website at www.wsfsbank.com. Information on our website is not incorporated by reference into this quarterly report.

In preparing the unaudited Consolidated Financial Statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for loan losses and reserves for lending related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, other-than-temporary impairment (OTTI), and the income tax valuation allowance. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of the allowance and lending related commitments as well as increased post-retirement benefits expense.

Our accounting and reporting policies conform to Generally Accepted Accounting Principles (GAAP) in the U.S., prevailing practices within the banking industry for interim financial information and Rule 10-01 of SEC Regulation S-X (Rule 10-01). Rule 10-01 does not require us to include all information and notes that would be required in audited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any future quarters or for the year ending December 31, 2017. These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2016 (the "2016 Annual Report on Form 10-K") that was filed with the SEC on March 1, 2017 and is available at www.sec.gov or on our website at http://investors.wsfsbank.com/financials.cfm. All significant intercompany transactions were eliminated in consolidation.

The significant accounting policies used in preparation of our Consolidated Financial Statements are disclosed in our 2016 Annual Report on Form 10-K. There have not been any material changes in our significant accounting policies from those disclosed in our 2016 Annual Report on Form 10-K.

Senior Debt

On June 13, 2016, the Company issued $100.0 million of senior unsecured fixed-to-floating rate notes (the senior debt). The senior unsecured notes mature on June 15, 2026 and have a fixed coupon rate of 4.50% from issuance until June 15, 2021 and a variable coupon rate of three month LIBOR plus 3.30% from June 15, 2021 until maturity. The senior unsecured notes may be redeemed beginning on June 15, 2021 at 100% of principal plus accrued and unpaid interest. The net proceeds from the issuance of the notes are being used for general corporate purposes.

11

In 2012, we issued $55.0 million in aggregate principal amount of 6.25% senior notes due 2019 (the 2012 senior debt). The 2012 senior debt is unsecured and ranks equally with all of our other present and future unsecured unsubordinated obligations. Both the senior debt and the 2012 senior debt are effectively subordinated to our secured indebtedness and structurally subordinated to the indebtedness of our subsidiaries. At our option, the 2012 senior debt is callable, in whole or in part, on September 1, 2017, or on any scheduled interest payment date thereafter, at a price equal to the outstanding principal amount to be redeemed plus accrued and unpaid interest. We expect to call the 2012 senior debt, which matures on September 1, 2019, during the third quarter of 2017.

Acquisitions in 2016

On August 12, 2016, we completed the acquisition of Penn Liberty Financial Corp. (Penn Liberty), a community bank headquartered in Wayne, Pennsylvania in order to build our market share, deepen our presence in the southeastern Pennsylvania market, and enhance our customer base. The results of Penn Liberty’s operations are included in our Consolidated Financial Statements since the date of the acquisition. See Note 2 – Business Combinations for further information.

During the third and fourth quarters of 2016, respectively, we acquired the assets of Powdermill Financial Solutions LLC, a multi-family office serving an affluent clientele in the local community and throughout the U.S., and West Capital Management, Inc., an independent, fee-only wealth management firm providing fully customized solutions tailored to the unique needs of institutions and high net worth individuals which operates under a multi-family office philosophy. These acquisitions align with our strategic plan to expand our wealth management offerings and to diversify our fee-income generating businesses.

Correction of Prior Period Balances

The Consolidated Statements of Income for the three and six months ended June 30, 2016 have been revised to correct an immaterial error in Noninterest income - Other income and Noninterest expense - Other operating expense related to revenue earned for cash servicing fees. As a result, the Consolidated Statements of Income have been revised to reflect these changes, as follows:

	Three months ended June 30, 2016						Six months ended June 30, 2016
Dollars in thousands	As originally reported		Adjustments		As revised		As originally reported		Adjustments		As revised
Noninterest income - Other income	$	3,920	$	658	$	4,578	$	7,892	$	1,257	$	9,149
Noninterest expense - Other operating expense	7,423		658		8,081		14,484		1,257		15,741

The above revisions had no effect on earnings per share or retained earnings. Periods not presented herein will be revised, as applicable, as they are included in future filings.

RECENT ACCOUNTING PRONOUNCEMENTS

Accounting Guidance Adopted in 2017

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-05: Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which amends Accounting Standards Codification (ASC) Topic 815: Derivatives and Hedging. This new guidance clarifies that the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, cause a hedge accounting relationship to be discontinued because it does not represent a termination of the original derivative instrument or a change in the critical terms of the hedge relationship. This new guidance is effective for annual reporting periods beginning after December 15, 2016 and may be adopted prospectively or retroactively. Early adoption is permitted, including adoption in an interim period. The Company adopted this accounting guidance during the quarter ended March 31, 2017 on a prospective basis with no impact to our Consolidated Financial Statements.

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In March 2016, the FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments, Derivatives and Hedging (Topic 815). ASU 2016-06 clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. The standard is effective for public business entities in interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued, but would be retroactively applied to the beginning of the year that includes the interim period. The standard requires a modified retrospective transition approach, with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. For instruments that are eligible for the fair value option, an entity has a one-time option to irrevocably elect to measure the debt instrument affected by the standard in its entirety at fair value with changes in fair value recognized in earnings. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact on our Consolidated Statements of Income or Consolidated Statements of Financial Condition.

In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, Investments - Equity Method and Joint Ventures (Topic 323). ASU 2016-07 eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. The standard is effective for all entities in annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied prospectively to changes in ownership (or influence) after the adoption date. The Company adopted this accounting guidance during the quarter ended March 31, 2017 on a prospective basis with no impact to our Consolidated Financial Statements.

Accounting Guidance Pending Adoption at June 30, 2017

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU No. 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers using a five-step model that requires entities to exercise judgment when considering the terms of the contracts. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This amendment defers the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Gross versus Net), which amends the principal versus agent guidance and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In addition, the FASB issued ASU Nos. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers and 2016-12, Narrow-Scope Improvements and Practical Expedients, both of which provide additional clarification of certain provisions in Topic 606. These Accounting Standards Codification (“ASC”) updates are effective for public business entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or retrospectively with the cumulative effect transition method. For revenue streams determined to be within the scope of the standard, we are continuing to evaluate the related accounting policies, practices and reporting to identify and understand any impact the standard may have on the Company’s Consolidated Financial Statements. Our preliminary evaluation continues to suggest that adoption of this guidance is not expected to have a material effect on our Consolidated Financial Statements. The Company expects to complete its assessment in the second half of 2017 and will adopt the guidance on January 1, 2018.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This amendment requires that equity investments be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. For financial liabilities that are measured at fair value, the amendment requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument specific credit risk. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Entities may apply this guidance on a prospective or retrospective basis. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

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In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. Adoption using the modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company has begun the process of identifying our complete lease population as defined by the guidance. Our preliminary review of the guidance suggests that adoption will result in additional assets and liabilities on our Consolidated Balance Sheet. The Company expects to adopt the guidance on January 1, 2019.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is in the early stages of evaluating the impact of this guidance on its Consolidated Financial Statements. Our preliminary review of the guidance suggests that adoption may materially increase the allowance for loan losses. Management is in the process of creating a project team to lead the implementation of this guidance. The Company expects to adopt the guidance on January 1, 2020.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 represents the Emerging Issues Task Force’s (“the EITF”) final consensus on eight issues related to the classification of cash payments and receipts in the statement of cash flows for a number of common transactions. The consensus also clarifies when identifiable cash flows should be separated versus classified based on their predominant source or use. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 provides a new, two-step framework for determining whether a transaction is accounted for as an acquisition (or disposal) of assets or a business. The first step is evaluating whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the transaction is not considered a business. Also, in order to be considered a business, the transaction would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted for transactions that have not been reported in financial statements that have been issued or been made available for issuance. The Company does not expect the application of this guidance to have any impact on its Consolidated Financial Statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the measurement of goodwill impairment by removing the hypothetical purchase price allocation (“Step 2”). The new guidance requires an impairment of goodwill be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, up to the amount of goodwill recorded. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In February 2017, the FASB issued ASU No. 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 provides clarification of the scope of ASC 610-20. Specifically, the new guidance clarifies that ASC 610-20 applies to nonfinancial assets which do not meet the definition of a business or not-for-profit activity. Further, the new guidance clarifies that a financial asset is within the scope of ASC 610-20 if it meets the definition of an in-substance nonfinancial asset which is defined as a financial asset promised to a counterparty in a contract where substantially all of the assets promised are nonfinancial. Finally, the new guidance clarifies that each distinct nonfinancial asset and in-substance nonfinancial asset should be derecognized when the counterparty obtains control of it. The guidance is effective for public entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of adopting ASU 2017-05 on its Consolidated Financial Statements.

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In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance requires that the service cost component of net periodic pension cost be disclosed with other compensation costs in the income statement. For all other cost components, an entity must either separately disclose the other cost components in separate line item(s) outside a subtotal of income from operations in the income statement or disclose the line item(s) used to present the other cost components in the income statement. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. The new guidance requires the amortization period for certain non-contingent callable debt securities held at a premium to end at the earliest call date of the debt security. If the call option is not exercised at the earliest call date, the guidance requires the debt security's effective yield to be reset based on the contractual payment terms of the debt security. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. Use of the modified retrospective method, with a cumulative-effect adjustment to retained earnings, is required. In the period of adoption, a change in accounting principle disclosure is required. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting. The new guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the award’s fair value, vesting conditions and classification remain the same immediately before and after the change, modification accounting is not applied. Additionally, the guidance does not require valuation before or after the change if the change does not affect any of the inputs to the model used to value the award. The guidance is effective for all entities in annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The new guidance will be applied on a prospective basis to awards modified on or after the adoption date. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

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2. BUSINESS COMBINATIONS

Penn Liberty Financial Corporation

On August 12, 2016, we completed the acquisition of Penn Liberty. The acquisition of Penn Liberty was accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration transferred were recorded at their estimated fair values as of the acquisition date. The fair values are preliminary estimates and are subject to adjustment during the one-year measurement period after the acquisition.

In connection with the merger, the consideration transferred and the fair value of identifiable assets acquired and liabilities assumed, including remeasurement adjustments subsequent to the date of acquisition, are summarized in the following table:

(Dollars in thousands)	Fair Value
Consideration Transferred:
Common shares issued (1,806,748)	$	68,352
Cash paid to Penn Liberty stock and option holders	40,549
Value of consideration	108,901
Assets acquired:
Cash and due from banks	102,301
Investment securities	627
Loans	483,203
Premises and equipment	6,817
Deferred income taxes	6,542
Bank owned life insurance	8,666
Core deposit intangible	2,882
Other real estate owned	996
Other assets	12,085
Total assets	624,119
Liabilities assumed:
Deposits	568,706
Other borrowings	10,000
Other liabilities	3,738
Total liabilities	582,444
Net assets acquired:	41,675
Goodwill resulting from acquisition of Penn Liberty	$	67,226

The following table details the change to goodwill recorded subsequent to acquisition:

(Dollars in thousands)	Fair Value
Goodwill resulting from the acquisition of Penn Liberty reported as of December 31, 2016	$	68,814
Effects of adjustments to:
Deferred income taxes	880
Loans	279
Other assets	(1,440		)
Other liabilities	(1,307		)
Adjusted goodwill resulting from the acquisition of Penn Liberty as of June 30, 2017	$	67,226

In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates.

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3. EARNINGS PER SHARE

The following table shows the computation of basic and diluted earnings per share:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars and Shares in thousands, except per share data)	2017		2016		2017		2016
Numerator:
Net income	$	20,570	$	17,478	$	39,507	$	33,248
Denominator:
Weighted average basic shares	31,443		29,545		31,425		29,608
Dilutive potential common shares	869		606		899		582
Weighted average fully diluted shares	32,312		30,151		32,324		30,190
Earnings per share:
Basic	$	0.65	$	0.59	$	1.26	$	1.12
Diluted	$	0.64	$	0.58	$	1.22	$	1.10
Outstanding common stock equivalents having no dilutive effect	—		5		10		20

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4. INVESTMENT SECURITIES

The following tables detail the amortized cost and the estimated fair value of our available-for-sale and held-to-maturity investment securities. None of our investment securities are classified as trading.

(Dollars in thousands)	Amortized Cost		Gross Unrealized  Gain		Gross Unrealized  Loss		Fair Value
Available-for-Sale Securities:
June 30, 2017
GSE	$	2,993	$	—	$	—	$	2,993
CMO	316,395		1,152		2,708		314,839
FNMA MBS	400,598		1,135		5,773		395,960
FHLMC MBS	77,815		168		839		77,144
GNMA MBS	27,050		294		405		26,939
Other investments	637		—		17		620
	$	825,488	$	2,749	$	9,742	$	818,495
December 31, 2016
GSE	$	35,061	$	9	$	60	$	35,010
CMO	264,607		566		3,957		261,216
FNMA MBS	414,218		950		9,404		405,764
FHLMC MBS	64,709		135		1,330		63,514
GNMA MBS	28,540		303		427		28,416
Other investments	626		—		3		623
	$	807,761	$	1,963	$	15,181	$	794,543

(Dollars in thousands)	Amortized Cost		Gross Unrealized  Gain		Gross Unrealized  Loss		Fair Value
Held-to-Maturity Securities(1)
June 30, 2017
State and political subdivisions	$	162,598	$	1,525	$	220	$	163,903
December 31, 2016
State and political subdivisions	$	164,346	$	271	$	1,385	$	163,232

⁽¹⁾  Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $1.9 million and $2.2 million at June 30, 2017 and December 31, 2016, respectively, related to securities transferred, which are offset in Accumulated Other Comprehensive Income, net of tax.

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The scheduled maturities of investment securities available for sale and held to maturity at June 30, 2017 and December 31, 2016 are presented in the table below:

	Available for Sale (1) (2)
	Amortized		Fair
(Dollars in thousands)	Cost		Value
June 30, 2017
Within one year	$	2,993	$	2,993
After one year but within five years	10,043		10,062
After five years but within ten years	195,075		191,104
After ten years	616,740		613,716
	$	824,851	$	817,875
December 31, 2016
Within one year	$	16,009	$	16,017
After one year but within five years	19,052		18,992
After five years but within ten years	276,635		270,300
After ten years	495,439		488,611
	$	807,135	$	793,920
	Held to Maturity (2)
	Amortized		Fair
(Dollars in thousands)	Cost		Value
June 30, 2017
Within one year	$	—	$	—
After one year but within five years	5,906		5,949
After five years but within ten years	13,142		13,276
After ten years	143,550		144,678
	$	162,598	$	163,903
December 31, 2016
Within one year	$	—	$	—
After one year but within five years	6,168		6,162
After five years but within ten years	8,882		8,870
After ten years	149,296		148,200
	$	164,346	$	163,232

 ⁽¹⁾ Included in the investment portfolio, but not in the table above, is a mutual fund with an amortized cost and fair value of $0.6 million and $0.6 million as of June 30, 2017 and December 31, 2016 which has no stated maturity.

⁽²⁾  Actual maturities could differ.

Mortgage-backed securities (MBS) have expected maturities that differ from their contractual maturities. These differences arise because borrowers have the right to call or prepay obligations with or without a prepayment penalty.

Investment securities with fair market values aggregating $571.6 million and $562.5 million were pledged as collateral for retail customer repurchase agreements, municipal deposits, and other obligations as of June 30, 2017 and December 31, 2016, respectively.

During the six months ended June 30, 2017, we sold $351.6 million of investment securities categorized as available for sale, resulting in realized gains of $1.1 million and realized losses of less than $0.1 million. During the six months ended June 30, 2016, we sold $101.3 million of investment securities categorized as available for sale, resulting in realized gains of $0.9 million and no realized losses. The cost basis of all investment securities sales is based on the specific identification method.

As of June 30, 2017 and December 31, 2016, our investment securities portfolio had remaining unamortized premiums of $15.5 million and $18.0 million, respectively, and unaccreted discounts of $0.8 million and $0.4 million, respectively.

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For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at June 30, 2017.

	Duration of Unrealized Loss Position
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Available-for-sale securities:
CMO	$	174,552	$	2,654	$	4,143	$	54	$	178,695	$	2,708
FNMA MBS	255,044		5,773		—		—		255,044		5,773
FHLMC MBS	45,583		839		—		—		45,583		839
GNMA MBS	12,097		313		3,733		92		15,830		405
Other investments	620		17		—		—		620		17
Total temporarily impaired investments	$	487,896	$	9,596	$	7,876	$	146	$	495,772	$	9,742
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Held-to-maturity securities:
State and political subdivisions	$	32,927	$	193	$	1,969	$	27	$	34,896	$	220
Total temporarily impaired investments	$	32,927	$	193	$	1,969	$	27	$	34,896	$	220

For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at December 31, 2016.

	Duration of Unrealized Loss Position
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Available-for-sale securities:
GSE	$	21,996	$	60	$	—	$	—	$	21,996	$	60
CMO	160,572		3,867		4,654		90		165,226		3,957
FNMA MBS	50,878		1,330		—		—		50,878		1,330
FHLMC MBS	300,403		9,404		—		—		300,403		9,404
GNMA MBS	16,480		427		—		—		16,480		427
Other investments	623		3		—		—		623		3
Total temporarily impaired investments	$	550,952	$	15,091	$	4,654	$	90	$	555,606	$	15,181
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Held-to-maturity securities:
State and political subdivisions	$	112,642	$	1,374	$	695	$	11	$	113,337	$	1,385
Total temporarily impaired investments	$	112,642	$	1,374	$	695	$	11	$	113,337	$	1,385

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At June 30, 2017, we owned investment securities totaling $530.7 million for which the amortized cost basis exceeded fair value. Total unrealized losses on these securities were $10.0 million at June 30, 2017. The temporary impairment is the result of changes in market interest rates subsequent to the purchase of the securities. Our investment portfolio is reviewed each quarter for indications of OTTI. This review includes analyzing the length of time and the extent to which the fair value has been lower than the amortized cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and our intent and ability to hold the investment for a period of time sufficient to allow for full recovery of the unrealized loss. We evaluate our intent and ability to hold securities based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not have the intent to sell, nor is it more likely-than-not we will be required to sell these securities before we are able to recover the amortized cost basis.

All securities, with the exception of one having a fair value of $1.0 million at June 30, 2017, were AA-rated or better at the time of purchase and remained investment grade at June 30, 2017. All securities were evaluated for OTTI at June 30, 2017 and December 31, 2016. The result of this evaluation showed no OTTI as of June 30, 2017 or December 31, 2016. The estimated weighted average duration of MBS was 5.04 years at June 30, 2017.

5. LOANS

The following table shows our loan portfolio by category:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Commercial and industrial	$	1,323,664	$	1,287,731
Owner-occupied commercial	1,109,876		1,078,162
Commercial mortgages	1,147,006		1,163,554
Construction	279,806		222,712
Residential (1)	274,235		289,611
Consumer	492,817		450,029
	4,627,404		4,491,799
Less:
Deferred fees, net	7,684		7,673
Allowance for loan losses	40,005		39,751
Net loans	$	4,579,715	$	4,444,375

⁽¹⁾ Includes reverse mortgages, at fair value of $21.6 million at June 30, 2017 and $22.6 million at December 31, 2016.

The following table shows the outstanding principal balance and carrying amounts for acquired credit impaired loans for which the Company applies ASC 310-30 as of the dates indicated:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Outstanding principal balance	$	38,401	$	41,574
Carrying amount	30,560		33,104
Allowance for loan losses	588		510

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The following table presents the changes in accretable yield on the acquired credit impaired loans for the six months endedJune 30, 2017:

(Dollars in thousands)	Six months ended June 30, 2017
Balance at beginning of period	$	5,150
Accretion	(1,575		)
Reclassification from nonaccretable difference	1,243
Additions/adjustments	(211		)
Disposals	(4		)
Balance at end of period	$	4,603

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6. ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION

Allowance for Loan Losses

We maintain an allowance for loan losses which represents our best estimate of probable losses within our loan portfolio. As losses are realized, they are charged to this allowance. We established our allowance in accordance with guidance provided in the SEC’s Staff Accounting Bulletin 102 (SAB 102), Selected Loan Loss Allowance Methodology and Documentation Issues, Accounting Standard Codification ("ASC") Contingencies (ASC 450) and Receivables (ASC 310). When we have reason to believe it is probable that we will not be able to collect all contractually due amounts of principal and interest, loans are evaluated for impairment on an individual basis and a specific allocation of the allowance is assigned in accordance with ASC 310-10. We also maintain an allowance for loan losses on acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining credit discount recorded at the time of acquisition. The determination of the allowance for loan losses requires significant judgment reflecting our best estimate of impairment related to specifically identified impaired loans as well as probable loan losses in the remaining loan portfolio. Our evaluation is based on a continuing review of these portfolios. The following are included in our allowance for loan losses:

• Specific reserves for impaired loans

• An allowance for each pool of homogenous loans based on historical loss experience

• Adjustments for qualitative and environmental factors allocated to pools of homogenous loans

When it is probable that the Bank will be unable to collect all amounts due (interest and principal) in accordance with the contractual terms of the loan agreement, it assigns a specific reserve to that loan, if necessary. Unless loans are well-secured and collection is imminent, loans greater than 90 days past due are deemed impaired and their respective reserves are generally charged-off once the loss has been confirmed. Estimated specific reserves are based on collateral values, estimates of future cash flows or market valuations. We charge loans off when they are deemed to be uncollectible. During the six months endedJune 30, 2017 and 2016, net charge-offs totaled $3.8 million or 0.17% of average loans annualized, and $1.4 million, or 0.07% of average loans annualized, respectively.

Allowances for pooled homogeneous loans, that are not deemed impaired, are based on historical net loss experience. Estimated losses for pooled portfolios are determined differently for commercial loan pools and retail loan pools. Commercial loans are pooled as follows: commercial, owner-occupied commercial, commercial mortgages and construction. Each pool is further segmented by internally assessed risk ratings. Loan losses for commercial loans are estimated by determining the probability of default and expected loss severity upon default. Probability of default is calculated based on the historical rate of migration to impaired status during the last 26 quarters. During the six months ended June 30, 2017, we increased the look-back period to 26 quarters from the 24 quarters used at December 31, 2016. This increase in the look-back period allows us to continue to anchor to the fourth quarter of 2010 to ensure that the core reserves calculated by the ALLL model are adequately considering the losses within a full credit cycle.

Loss severity upon default is calculated as the actual loan losses (net of recoveries) on impaired loans in their respective pool during the same time frame. Retail loans are pooled into the following segments: residential mortgage, consumer secured and consumer unsecured loans. Pooled reserves for retail loans are calculated based solely on average net loss rates over the same 26 quarter look-back period.

Qualitative adjustment factors consider various current internal and external conditions which are allocated among loan types and take into consideration:

• Current underwriting policies, staff, and portfolio mix,

• Internal trends of delinquency, nonaccrual and criticized loans by segment,

• Risk rating accuracy, control and regulatory assessments/environment,

• General economic conditions - locally and nationally,

• Market trends impacting collateral values,

• The competitive environment, as it could impact loan structure and underwriting, and

• Valuation complexity by segment.

The above factors are based on their relative standing compared to the period in which historic losses are used in core reserve estimates and current directional trends. Qualitative factors in our model can add to or subtract from core reserves.

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The allowance methodology uses a loss emergence period (LEP), which is the period of time between an event that triggers the probability of a loss and the confirmation of the loss. We estimate the commercial LEP to be approximately 9 quarters as of June 30, 2017. Our residential mortgage and consumer LEP remained at 4 quarters as of June 30, 2017. We evaluate LEP quarterly for reasonableness and complete a detailed historical analysis of our LEP annually for our commercial portfolio and review the current 4 quarter LEP for the retail portfolio to determine the continued reasonableness of this assumption.

In prior periods, we had a component of the allowance for model estimation and complexity risk reserve. During the second quarter of 2016 as a result of continued refinement of the model and normal review of the factors, we removed the model estimation and complexity risk reserve from our calculation of the allowance of loan losses.

Our loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review our loan ratings and allowance for loan losses and the Bank’s internal loan review department performs loan reviews.

The following tables provide the activity of our allowance for loan losses and loan balances for the three and six months endedJune 30, 2017:

(Dollars in thousands)	Commercial			Owner-occupied Commercial			Commercial Mortgages			Construction			Residential(1)			Consumer			Total
Three months ended June 30, 2017
Allowance for loan losses
Beginning balance	$	14,205		$	6,030		$	8,335		$	2,961		$	2,054		$	6,241		$	39,826
Charge-offs	(929		)	—			(402		)	(117		)	(42		)	(888		)	(2,378		)
Recoveries	319			33			7			2			10			343			714
Provision (credit)	520			(265		)	(853		)	471			17			1,453			1,343
Provision for acquired loans	109			18			248			115			11			(1		)	500
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Six months ended June 30, 2017
Allowance for loan losses
Beginning balance	$	13,339		$	6,588		$	8,915		$	2,838		$	2,059		$	6,012		$	39,751
Charge-offs	(2,184		)	(192		)	(506		)	(131		)	(53		)	(2,031		)	(5,097		)
Recoveries	403			108			53			4			130			648			1,346
Provision (credit)	2,469			(706		)	(1,371		)	629			(97		)	2,533			3,457
Provision for acquired loans	197			18			244			92			11			(14		)	548
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1,342		$	—		$	1,464		$	772		$	869		$	195		$	4,642
Loans collectively evaluated for impairment	12,587			5,783			5,714			2,595			1,147			6,949			34,775
Acquired loans evaluated for impairment	295			33			157			65			34			4			588
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Period-end loan balances evaluated for:
Loans individually evaluated for impairment (2)	$	14,845		$	3,432		$	10,941		$	4,808		$	14,023		$	8,396		$	56,445
Loans collectively evaluated for impairment	1,171,831			945,919			921,069			252,637			157,653			439,273			3,888,382
Acquired nonimpaired loans	130,986			148,686			204,809			20,340			80,074			44,902			629,797
Acquired impaired loans	6,002			11,839			10,187			2,021			852			246			31,147
Ending balance (3)	$	1,323,664		$	1,109,876		$	1,147,006		$	279,806		$	252,602		$	492,817		$	4,605,771

⁽¹⁾  Period-end loan balance excludes reverse mortgages, at fair value of $21.6 million.

⁽²⁾  The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $18.1 million for the period ending June 30, 2017. Accruing troubled debt restructured loans are considered impaired loans.

⁽³⁾  Ending loan balances do not include net deferred fees.

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The following table provides the activity of the allowance for loan losses and loan balances for the six months ended June 30, 2016:

(Dollars in thousands)	Commercial			Owner - occupied Commercial			Commercial Mortgages			Construction			Residential(1)			Consumer			Complexity Risk(2)			Total
Three months ended June 30, 2016
Allowance for loan losses
Beginning balance	$	11,482		$	6,702		$	6,516		$	3,609		$	2,269		$	5,954		$	1,024		$	37,556
Charge-offs	(727		)	(141		)	(61		)	(3		)	(15		)	(818		)	—			(1,765		)
Recoveries	224			13			34			—			57			373			—			701
Provision (credit)	353			133			1,598			(352		)	22			317			(1,024		)	1,047
Provision for acquired loans	70			16			48			54			19			—			—			207
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Six months ended June 30, 2016
Allowance for loan losses
Beginning balance	$	11,156		$	6,670		$	6,487		$	3,521		$	2,281		$	5,964		$	1,010		$	37,089
Charge-offs	(906		)	(141		)	(78		)	(29		)	(29		)	(1,449		)	—			(2,632		)
Recoveries	334			51			113			46			79			632			—			1,255
Provision (credit)	837			127			1,561			(280		)	2			717			(1,010		)	1,954
Provision for acquired loans	(19		)	16			52			50			19			(38		)				80
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	426		$	—		$	—		$	211		$	992		$	205		$	—		$	1,834
Loans collectively evaluated for impairment	10,923			6,686			8,009			3,038			1,340			5,621			—			35,617
Acquired loans evaluated for impairment	53			37			126			59			20			—			—			295
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Period-end loan balances:
Loans individually evaluated for impairment (3)	$	2,558		$	838		$	1,702		$	1,419		$	14,416		$	7,965		$	—		$	28,898
Loans collectively evaluated for impairment	1,045,918			857,270			869,771			181,440			153,811			352,675			—			3,460,885
Acquired nonimpaired loans	58,423			70,465			108,212			12,086			67,484			13,990			—			330,660
Acquired impaired loans	1,711			9,757			10,560			4,094			946			4			—			27,072
Ending balance (4)	$	1,108,610		$	938,330		$	990,245		$	199,039		$	236,657		$	374,634		$	—		$	3,847,515

⁽¹⁾  Period-end loan balance excludes reverse mortgages, at fair value of $25.3 million.

⁽²⁾  Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology.

⁽³⁾  The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.1 million for the period ending June 30, 2016. Accruing troubled debt restructured loans are considered impaired loans.

⁽⁴⁾  Ending loan balances do not include net deferred fees.

Nonaccrual and Past Due Loans

Nonaccruing loans are those on which the accrual of interest has ceased. Typically, we discontinue accrual of interest on originated loans after payments become more than 90 days past due or earlier if we do not expect the full collection of principal or interest in accordance with the terms of the loan agreement. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the accretion of net deferred loan fees and amortization of net deferred loan costs is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on our assessment of the ultimate collectability of principal and interest. Loans greater than 90 days past due and still accruing are defined as loans contractually past due 90 days or more as to principal or interest payments, but which remain in accrual status because they are considered well secured and are in the process of collection.

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The following tables show our nonaccrual and past due loans at the dates indicated:

	June 30, 2017
(Dollars in thousands)	30–59 Days Past Due  and Still  Accruing			60–89 Days Past Due and Still  Accruing			Greater  Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	901		$	6		$	—		$	907		$	1,302,051		$	6,002		$	14,704		$	1,323,664
Owner-occupied commercial	—			—			—			—			1,094,605			11,839			3,432			1,109,876
Commercial mortgages	237			—			—			237			1,125,854			10,187			10,728			1,147,006
Construction	—			—			—			—			276,723			2,021			1,062			279,806
Residential(1)	2,411			348			—			2,759			244,031			852			4,960			252,602
Consumer	598			488			92			1,178			487,897			246			3,496			492,817
Total (2)	$	4,147		$	842		$	92		$	5,081		$	4,531,161		$	31,147		$	38,382		$	4,605,771
% of Total Loans	0.09		%	0.02		%	—		%	0.11		%	98.38		%	0.68		%	0.83		%	100		%

⁽¹⁾  Residential accruing current balances excludes reverse mortgages at fair value of $21.6 million.

⁽²⁾  The balances above include a total of $629.8 million of acquired nonimpaired loans.

	December 31, 2016
(Dollars in thousands)	30–59 Days Past Due  and Still  Accruing			60–89 Days Past Due  and Still  Accruing			Greater  Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	1,507		$	278		$	—		$	1,785		$	1,277,748		$	6,183		$	2,015		$	1,287,731
Owner-occupied commercial	116			540			—			656			1,063,306			12,122			2,078			1,078,162
Commercial mortgages	167			—			—			167			1,143,180			10,386			9,821			1,163,554
Construction	132			—			—			132			218,886			3,694			—			222,712
Residential(1)	3,176			638			153			3,967			257,234			860			4,967			267,028
Consumer	392			346			285			1,023			444,642			369			3,995			450,029
Total(2)	$	5,490		$	1,802		$	438		$	7,730		$	4,404,996		$	33,614		$	22,876		$	4,469,216
% of Total Loans	0.12		%	0.04		%	0.01		%	0.17		%	98.57		%	0.75		%	0.51		%	100		%

⁽¹⁾  Residential accruing current balances excludes reverse mortgages, at fair value of $22.6 million.

⁽²⁾  The balances above include a total of $724.1 million of acquired nonimpaired loans.

Impaired Loans

Loans for which it is probable we will not collect all principal and interest due according to their contractual terms, which is assessed based on the credit characteristics of the loan and/or payment status, are measured for impairment in accordance with the provisions of SAB 102 and FASB ASC 310, Receivables (ASC 310). The amount of impairment is required to be measured using one of three methods: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the fair value of collateral, if the loan is collateral dependent or (3) the loan’s observable market price. If the measure of the impaired loan is less than the recorded investment in the loan, a related allowance is allocated for the impairment.

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The following tables provide an analysis of our impaired loans at June 30, 2017 and December 31, 2016:

	June 30, 2017
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve (1)		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	16,906	$	2,632	$	14,274	$	1,637	$	18,726	$	9,771
Owner-occupied commercial	8,232		3,432		4,800		33		8,662		5,346
Commercial mortgages	13,821		2,997		10,824		1,621		19,091		11,256
Construction	6,114		1,779		4,335		837		6,208		3,918
Residential	14,605		8,167		6,438		903		17,415		14,778
Consumer	8,436		7,234		1,202		199		11,300		8,319
Total (2)	$	68,114	$	26,241	$	41,873	$	5,230	$	81,402	$	53,388

⁽¹⁾  Reflects loan balances at or written down to their remaining book balance.

⁽²⁾  The above includes acquired impaired loans totaling $11.7 million in the ending loan balance and $12.9 million in the contractual principal balance of the total acquired impaired loan portfolio of $31.1 million

	December 31, 2016
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve (1)		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	4,250	$	1,395	$	2,855	$	505	$	5,572	$	5,053
Owner-occupied commercial	4,650		2,078		2,572		15		5,129		3,339
Commercial mortgages	15,065		4,348		10,717		1,433		20,716		7,323
Construction	3,662		—		3,662		303		3,972		2,376
Residential	14,256		7,122		7,134		934		17,298		15,083
Consumer	8,021		6,561		1,460		215		11,978		7,910
Total (2)	$	49,904	$	21,504	$	28,400	$	3,405	$	64,665	$	41,084

⁽¹⁾  Reflects loan balances at or written down to their remaining book balance.

⁽²⁾  The above includes acquired impaired loans totaling $12.8 million in the ending loan balance and $15.0 million in the contractual principal balance of the total acquired impaired loan portfolio of $33.6 million.

Interest income of $0.4 million and $0.7 million was recognized on impaired loans during the three and six months ended June 30, 2017, respectively. Interest income of $0.2 million and $0.3 million was recognized on impaired loans during the three and six months ended June 30, 2016, respectively.

As of June 30, 2017, there were 33 residential loans and 6 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $4.4 million and $1.7 million, respectively. As of December 31, 2016, there were 29 residential loans and 7 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $3.7 million and $3.6 million, respectively.

Reserves on Acquired Nonimpaired Loans

In accordance with FASB ASC 310, loans acquired by the Bank through its mergers with FNBW, Alliance and Penn Liberty are required to be reflected on the balance sheet at their fair values on the date of acquisition as opposed to their contractual values. Therefore, on the date of acquisition establishing an allowance for acquired loans is prohibited. After the acquisition date the Bank performs a separate allowance analysis on a quarterly basis to determine if an allowance for loan loss is necessary. Should the credit risk calculated exceed the purchased loan portfolio’s remaining credit mark, additional reserves will be added to the Bank’s allowance. When a purchased loan becomes impaired after its acquisition, it is evaluated as part of the Bank’s reserve analysis and a specific reserve is established to be included in the Bank’s allowance.

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Credit Quality Indicators

Below is a description of each of our risk ratings for all commercial loans:

• Pass. These borrowers currently show no indication of deterioration or potential problems and their loans are considered fully collectible

• Special Mention. Borrowers have potential weaknesses that deserve management’s close attention. Borrowers in this category may be experiencing adverse operating trends, for example, declining revenues or margins, high leverage, tight liquidity, or increasing inventory without increasing sales. These adverse trends can have a potential negative effect on the borrower’s repayment capacity. These assets are not adversely classified and do not expose the Bank to significant risk that would warrant a more severe rating. Borrowers in this category may also be experiencing significant management problems, pending litigation, or other structural credit weaknesses.

• Substandard. Borrowers have well-defined weaknesses that require extensive oversight by management. Borrowers in this category may exhibit one or more of the following: inadequate debt service coverage, unprofitable operations, insufficient liquidity, high leverage, and weak or inadequate capitalization. Relationships in this category are not adequately protected by the sound financial worth and paying capacity of the obligor or the collateral pledged on the loan, if any. A distinct possibility exists that the Bank will sustain some loss if the deficiencies are not corrected.

• Doubtful. Borrowers have well-defined weaknesses inherent in the Substandard category with the added characteristic that the possibility of loss is extremely high. Current circumstances in the credit relationship make collection or liquidation in full highly questionable. A doubtful asset has some pending event that may strengthen the asset that defers the loss classification. Such impending events include: perfecting liens on additional collateral, obtaining collateral valuations, an acquisition or liquidation preceding, proposed merger, or refinancing plan.

• Loss. Borrowers are uncollectible or of such negligible value that continuance as a bankable asset is not supportable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical to defer writing off this asset even though partial recovery may be recognized sometime in the future.

Residential and Consumer Loans

The residential and consumer loan portfolios are monitored on an ongoing basis using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans that are greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss.

Commercial Credit Exposure

	June 30, 2017
(Dollars in thousands)	Commercial		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial(1)
									Amount		%
Risk Rating:
Special mention	$	18,225	$	6,983	$	8,900	$	—	$	34,108
Substandard:
Accrual	42,217		20,893		67		4,506		67,683
Nonaccrual	13,362		3,432		9,264		289		26,347
Doubtful	1,342		—		1,464		772		3,578
Total Special Mention and Substandard	75,146		31,308		19,695		5,567		131,716		3	%
Acquired impaired	6,002		11,839		10,187		2,021		30,049		1	%
Pass	1,242,516		1,066,729		1,117,124		272,218		3,698,587		96	%
Total	$	1,323,664	$	1,109,876	$	1,147,006	$	279,806	$	3,860,352	100	%

⁽¹⁾  Table includes $504.8 million of acquired nonimpaired loans as of June 30, 2017.

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	December 31, 2016
(Dollars in thousands)	Commercial		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial(1)
									Amount		%
Risk Rating:
Special mention	$	17,630	$	11,419	$	34,198	$	—	$	63,247
Substandard:
Accrual	45,067		19,871		239		2,193		67,370
Nonaccrual	1,693		2,078		8,574		—		12,345
Doubtful	322		—		1,247		—		1,569
Total Special Mention and Substandard	64,712		33,368		44,258		2,193		144,531		4	%
Acquired impaired	6,183		12,122		10,386		3,694		32,385		1	%
Pass	1,216,836		1,032,672		1,108,910		216,825		3,575,243		95	%
Total	$	1,287,731	$	1,078,162	$	1,163,554	$	222,712	$	3,752,159	100	%

⁽¹⁾  Table includes $573.5 million of acquired nonimpaired loans as of December 31, 2016.

Residential and Consumer Credit Exposure

(Dollars in thousands)	Residential(2)				Consumer				Total Residential and Consumer(3)
	June 30,		December 31,		June 30,		December 31,		June 30, 2017				December 31, 2016
	2017		2016		2017		2016		Amount		Percent		Amount		Percent
Nonperforming(1)	$	14,023	$	13,547	$	8,396	$	7,863	$	22,419	3	%	$	21,410	3	%
Acquired impaired loans	852		860		246		369		1,098		—	%	1,229		—	%
Performing	237,727		252,621		484,175		441,797		721,902		97	%	694,418		97	%
Total	$	252,602	$	267,028	$	492,817	$	450,029	$	745,419	100	%	$	717,057	100	%

⁽¹⁾  Includes $14.0 million as of June 30, 2017 and $12.4 million as of December 31, 2016 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest.

⁽²⁾  Residential performing loans excludes $21.6 million and $22.6 million of reverse mortgages at fair value as of June 30, 2017 and December 31, 2016, respectively.

⁽³⁾  Total includes $125.0 million and $150.5 million in acquired nonimpaired loans as of June 30, 2017 and December 31, 2016, respectively.

Troubled Debt Restructurings (TDRs)

TDRs are recorded in accordance with FASB ASC 310-40, Troubled Debt Restructuring by Creditors (ASC 310-40). 

The following table presents the balance of TDRs as of the indicated dates:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Performing TDRs	$	18,109	$	14,336
Nonperforming TDRs	10,657		8,451
Total TDRs	$	28,766	$	22,787

Approximately $2.1 million and $1.3 million in related reserves have been established for these loans at June 30, 2017 and December 31, 2016, respectively.

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The following table presents information regarding the types of loan modifications made for the six months endedJune 30, 2017:

	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other (1)	Total
Commercial	1	1	—	—	2
Owner-occupied commercial	—	1	—	—	1
Construction	—	2	—	1	3
Residential	—	—	1	—	1
Consumer	—	—	7	4	11
	1	4	8	5	18

⁽¹⁾  Other includes underwriting exceptions.

Principal balances are generally not forgiven when a loan is modified as a TDR. Nonaccruing restructured loans remain in nonaccrual status until there has been a period of sustained repayment performance, typically six months and payment is reasonably assured.

The following table presents loans identified as TDRs during the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended June 30,
	2017				2016
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	338	$	338	$	141	$	141
Owner-occupied commercial	—		—		—		—
Commercial mortgages	—		—		—		—
Construction	124		124		—		—
Residential	—		—		112		112
Consumer	674		674		240		240
Total	$	1,136	$	1,136	$	493	$	493

	Six Months Ended June 30,
	2017				2016
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	781	$	781	$	1,125	$	1,125
Owner-occupied commercial	3,071		3,071		—		—
Commercial mortgages	—		—		—		—
Construction	1,836		1,836		—		—
Residential	242		242		726		726
Consumer	1,258		1,258		455		455
Total	$	7,188	$	7,188	$	2,306	$	2,306

During the six months endedJune 30, 2017, the TDRs set forth in the table above increased our allowance for loan losses less than $0.3 million, and resulted in no additional charge-offs. For the same period of 2016, the TDRs set forth in the table above had no change on our allowance for loan losses allocation of the related reserve and resulted in charge-offs of less than $0.1 million. At June 30, 2017, two commercial mortgage loans TDRs defaulted that had received troubled debt modification during the past twelve months with a total loan amount of $0.6 million.

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7. GOODWILL AND INTANGIBLES

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

During the six months ended June 30, 2017, we determined there were no events or other indicators of impairment as it relates to goodwill or other intangibles.

The following table shows the changes in our goodwill during the quarter as well as the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing:

	WSFS			Cash		Wealth		Consolidated
(Dollars in thousands)	Bank			Connect		Management		Company
December 31, 2016	$	147,396		$	—	$	20,143	$	167,539
Remeasurement adjustments	(1,588		)	—		56		(1,532		)
June 30, 2017	$	145,808		$	—	$	20,199	$	166,007

ASC 350 also 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 tables summarize other intangible assets:

	June 30, 2017
(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets		Amortization Period
Core deposits	$	10,658	$	(3,720	)	$	6,938	10 years
Customer relationships	17,561		(3,413		)	14,148		7-15 years
Non-compete agreements	221		(35		)	186		5 years
Loan servicing rights	2,135		(1,103		)	1,032		10-30 years
Favorable lease asset	1,932		(260		)	1,672		10 months-18 years
Total intangible assets	$	32,507	$	(8,531	)	$	23,976

	December 31, 2016
(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets		Amortization Period
Core deposits	$	13,128	$	(5,630	)	$	7,498	10 years
Customer relationships	17,561		(2,612		)	14,949		7-15 years
Non-compete agreements	1,006		(728		)	278		6 months- 5 years
Loan servicing rights	1,708		(1,067		)	641		10-30 years
Favorable lease asset	458		(116		)	342		10 months-15 years
Total intangible assets	$	33,861	$	(10,153	)	$	23,708

Core deposits are amortized over their expected lives using the present value of the benefit of the core deposits and either accelerated or straight-line methods of amortization. During the six months ended June 30, 2017, we recognized amortization expense on other intangible assets of $1.6 million.

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The following table shows the estimated future amortization expense related to our intangible assets:

(Dollars in thousands)	Amortization of Intangibles
Remaining in 2017	$	1,525
2018	2,986
2019	2,918
2020	2,722
2021	2,396
Thereafter	11,429
Total	$	23,976

8. ASSOCIATE BENEFIT PLANS

Postretirement Medical Benefits

We share certain costs of providing health and life insurance benefits to eligible retired Associates (employees) and their eligible dependents. Previously, all Associates were eligible for these benefits if they reached normal retirement age while working for us. Effective March 31, 2014, we changed the eligibility of this plan to include only those Associates who have achieved ten years of service with us as of March 31, 2014. As of December 31, 2014, we began to use the mortality table issued by the Office of the Actuary of the U.S. Bureau of Census in October 2014 in our calculation.

We account for our obligations under the provisions of FASB ASC 715, Compensation - Retirement Benefits (ASC 715). ASC 715 requires that we recognize the costs of these benefits over an Associate’s active working career. Amortization of unrecognized net gains or losses resulting from experience different from that assumed and from changes in assumptions is included as a component of net periodic benefit cost over the remaining service period of active employees to the extent that such gains and losses exceed 10% of the accumulated postretirement benefit obligation, as of the beginning of the year.

The following are disclosures of the net periodic benefit cost components of postretirement medical benefits measured at January 1, 2017 and 2016.

	Three months ended June 30,						Six months ended June 30,
(Dollars in thousands)	2017			2016			2017			2016
Service cost	$	14		$	14		$	29		$	29
Interest cost	19			19			38			38
Prior service cost amortization	(19		)	(19		)	(38		)	(26		)
Net gain recognition	(18		)	(16		)	(34		)	(31		)
Net periodic benefit cost	$	(4	)	$	(2	)	$	(5	)	$	10

Alliance Associate Pension Plan

During the fourth quarter of 2015, we completed the acquisition of Alliance and its wholly owned subsidiary, Alliance Bank, headquartered in Broomall, Pennsylvania. At the time of the acquisition we assumed the Alliance pension plan offered to its current associates.

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The following table shows the net periodic benefit cost components for the Alliance Associate Pension Plan benefits measured at January 1, 2017.

(Dollars in thousands)	Three months ended June 30, 2017			Six months ended June 30, 2017
Service cost	$	10		$	20
Interest cost	75			150
Expected Return on Plan Assets	(135		)	(270		)
Prior service cost amortization	—			—
Net gain recognition	—			—
Net periodic benefit cost	$	(50	)	$	(100	)

9. INCOME TAXES

We account for income taxes in accordance with FASB ASC 740, Income Taxes (ASC 740). ASC 740 requires the recording of deferred income taxes that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We exercise significant judgment in the evaluation of the amount and timing of the recognition of the resulting tax assets and liabilities. The judgments and estimates required for the evaluation are updated based on changes in business factors and the tax laws. If actual results differ from the assumptions and other considerations used in estimating the amount and timing of tax recognized, there can be no assurance that additional expenses will not be required in future periods.

ASC 740 prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. We recognize, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the financial statements. Assessment of uncertain tax positions under ASC 740 requires careful consideration of the technical merits of a position based on our analysis of tax regulations and interpretations.

There were no unrecognized tax benefits as of June 30, 2017. We record interest and penalties on potential income tax deficiencies as income tax expense. Our federal and state tax returns for the 2013 through 2016 tax years are subject to examination as of June 30, 2017. We do not expect to record or realize any material unrecognized tax benefits during 2017.

As a result of the adoption of ASU No. 2014-01, “Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects,” the amortization of our low-income housing credit investments has been reflected as income tax expense. Accordingly, $0.4 million of such amortization has been reflected as income tax expense for the three months endedJune 30, 2017 and June 30, 2016, and $0.8 million of such amortization has been reflected as income tax expense for the six months endedJune 30, 2017 and June 30, 2016.

The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the six months ended June 30, 2017 were $0.8 million, $0.8 million and $0.2 million, respectively. The carrying value of the investment in affordable housing credits is $14.6 million at June 30, 2017, compared to $15.4 million at December 31, 2016.

10. FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

• Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

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• Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means.

• Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

The following tables present financial instruments carried at fair value as of June 30, 2017 and December 31, 2016 by level in the valuation hierarchy (as described above):

	June 30, 2017
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	314,839	$	—	$	314,839
FNMA MBS	—		395,960		—		395,960
FHLMC MBS	—		77,144		—		77,144
GNMA MBS	—		26,939		—		26,939
GSE	—		2,993		—		2,993
Other investments	620		—		—		620
Other assets	—		1,002		—		1,002
Total assets measured at fair value on a recurring basis	$	620	$	818,877	$	—	$	819,497
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	2,708	$	—	$	2,708
Assets measured at fair value on a nonrecurring basis:
Other real estate owned	$	—	$	—	$	2,121	$	2,121
Loans held for sale	—		35,425		—		35,425
Impaired loans, net	—		—		62,884		62,884
Total assets measured at fair value on a nonrecurring basis	$	—	$	35,425	$	65,005	$	100,430

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	December 31, 2016
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	261,215	$	—	$	261,215
FNMA MBS	—		405,764		—		405,764
FHLMC MBS	—		63,515		—		63,515
GNMA MBS	—		28,416		—		28,416
GSE	—		35,010		—		35,010
Other investments	623		—		—		623
Other assets	—		1,508		—		1,508
Total assets measured at fair value on a recurring basis	$	623	$	795,428	$	—	$	796,051
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,380	$	—	$	3,380
Assets measured at fair value on a nonrecurring basis
Other real estate owned	$	—	$	—	$	3,591	$	3,591
Loans held for sale	—		54,782		—		54,782
Impaired loans, net	—		—		46,499		46,499
Total assets measured at fair value on a nonrecurring basis	$	—	$	54,782	$	50,090	$	104,872

There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months endedJune 30, 2017.

Fair value is based on quoted market prices, where available. If such quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include unobservable parameters. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While we believe our valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Available-for-sale securities

As of June 30, 2017, securities classified as available-for-sale are reported at fair value using Level 2 inputs, except for one mutual fund asset acquired as part of the Penn Liberty acquisition, which is categorized as Level 1. Included in the Level 2 total are approximately $3.0 million in U.S. Treasury Notes and Federal Agency debentures, and $814.9 million in Federal Agency MBS. We believe that this Level 2 designation is appropriate for these securities under ASC 820-10 as, with almost all fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors.

Other real estate owned

Other real estate owned consists of loan collateral which has been repossessed through foreclosure or other measures. Initially, foreclosed assets are recorded at the lower of the loan balance or fair value of the collateral less estimated selling costs. Subsequent to foreclosure, valuations are updated periodically and the assets may be marked down further, reflecting a new cost basis. The fair value of our real estate owned was estimated using Level 3 inputs based on appraisals obtained from third parties.

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Loans held for sale

The fair value of our loans held for sale is based on estimates using Level 2 inputs. These inputs are based on pricing information obtained from wholesale mortgage banks and brokers and applied to loans with similar interest rates and maturities.

Impaired loans

We evaluate and value impaired loans at the time the loan is identified as impaired, and the fair values of such loans are estimated using Level 3 inputs in the fair value hierarchy. Each loan’s collateral has a unique appraisal and management’s discount of the value is based on the factors unique to each impaired loan. The significant unobservable input in determining the fair value is management’s subjective discount on appraisals of the collateral securing the loan, which range from 10% - 50%. Collateral may consist of real estate and/or business assets including equipment, inventory and/or accounts receivable and the value of these assets is determined based on the appraisals by qualified licensed appraisers hired by us. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, estimated costs to sell, and/or management’s expertise and knowledge of the client and the client’s business.

The gross amount of impaired loans, which are measured for impairment by either calculating the expected future cash flows discounted at the loan’s effective interest rate or determining the fair value of the collateral for collateral dependent loans was $68.1 million and $51.6 million at June 30, 2017 and December 31, 2016, respectively. The valuation allowance on impaired loans was $5.2 million as of June 30, 2017 and $3.4 million as of December 31, 2016.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The reported fair values of financial instruments are based on a variety of factors. In certain cases, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions regarding the amount and timing of estimated future cash flows that are discounted to reflect current market rates and varying degrees of risk. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of period-end or that will be realized in the future.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and cash equivalents

For cash and short-term investment securities, including due from banks, federal funds sold or purchased under agreements to resell and interest-bearing deposits with other banks, the carrying amount is a reasonable estimate of fair value.

Investment securities

Fair value is estimated using quoted prices for similar securities, which we obtain from a third party vendor. We utilize one of the largest providers of securities pricing to the industry and management periodically assesses the inputs used by this vendor to price the various types of securities owned by us to validate the vendor’s methodology as described above in available-for-sale securities.

Loans held for sale

Loans held for sale are carried at their fair value (see discussion in “Fair Value of Financial Assets and Liabilities” section above).

Loans

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type: commercial, commercial mortgages, owner-occupied commercial, construction, residential mortgages and consumer. For loans that reprice frequently, the book value approximates fair value. The fair values of other types of loans, with the exception of reverse mortgages, are estimated by discounting expected cash flows using the current rates at which similar loans would be made to borrowers with comparable credit ratings and for similar remaining maturities. The fair values of reverse mortgages are based on the net present value of the expected cash flows using a discount rate specific to the reverse mortgages portfolio. The fair value of nonperforming loans is based on recent external appraisals of the underlying collateral. Estimated cash flows, discounted using a rate commensurate with current rates and the risk associated with the estimated cash flows, are utilized if appraisals are not available. This technique does not contemplate an exit price.

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Stock in the Federal Home Loan Bank (FHLB) of Pittsburgh

The fair value of FHLB stock is assumed to be equal to its cost basis, since the stock is non-marketable but redeemable at its par value.

Other assets

Other assets includes, among others, other real estate owned (see discussion earlier in this note) and our investment in Visa Class B stock. Our ownership includes shares acquired at no cost from our prior participation in Visa’s network, while Visa operated as a cooperative. During 2016 and 2017 we purchased additional shares which are accounted for as non-marketable equity securities and carried at cost. We evaluate the shares carried at cost for OTTI periodically. As of June 30, 2017, our evaluation indicated that there was no OTTI of these shares. Following resolution of Visa’s covered litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares.

Only current owners of Class B shares are allowed to purchase other Class B shares.  We estimate the value of our Visa Class B shares to be $38.5 million as of June 30, 2017.

Deposits

The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, money market and interest-bearing demand deposits, is assumed to be equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using rates currently offered for deposits with comparable remaining maturities.

Borrowed funds

Rates currently available to us for debt with similar terms and remaining maturities are used to estimate fair value of existing debt.

Other Liabilities

Other liabilities includes cash flow derivatives and derivative on the residential mortgage held for sale pipeline. Valuation of our cash flow derivative is obtained from an independent pricing service and also from the derivative counterparty. Valuation for the residential mortgage held for sale pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale.

Off-balance sheet instruments

The fair value of off-balance sheet instruments, including commitments to extend credit and standby letters of credit, approximates the recorded net deferred fee amounts, which are not significant. Because commitments to extend credit and letters of credit are generally not assignable by either us or the borrower, they only have value to us and the borrower.

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The book value and estimated fair value of our financial instruments are as follows:

(Dollars in thousands)	Fair Value	June 30, 2017				December 31, 2016
	Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	745,311	$	745,311	$	821,923	$	821,923
Investment securities available for sale	See previous table	818,495		818,495		794,543		794,543
Investment securities held to maturity	Level 2	162,598		163,903		164,346		163,232
Loans, held for sale	Level 2	35,425		35,425		54,782		54,782
Loans, net(1)(2)	Level 2, 3	4,516,831		4,459,104		4,397,876		4,300,963
Impaired loans, net	Level 3	62,884		62,884		46,499		46,499
Stock in FHLB of Pittsburgh	Level 2	35,832		35,832		38,248		38,248
Accrued interest receivable	Level 2	16,742		16,742		17,027		17,027
Other assets	Level 3	17,229		41,702		9,189		15,787
Financial liabilities:
Deposits	Level 2	4,834,050		4,482,483		4,738,438		4,423,921
Borrowed funds	Level 2	1,162,754		1,159,990		1,267,447		1,264,170
Standby letters of credit	Level 3	503		503		468		468
Accrued interest payable	Level 2	2,405		2,405		1,151		1,151
Other liabilities	Level 2	2,708		2,708		3,380		3,380

 ⁽¹⁾ Excludes impaired loans, net.

 ⁽²⁾ Includes reverse mortgage loans, which are categorized as Level 3.

At June 30, 2017 and December 31, 2016 we had no commitments to extend credit measured at fair value.

11. DERIVATIVE FINANCIAL INSTRUMENTS

Risk Management Objective of Using Derivatives

We are exposed to certain risks arising from both economic conditions and our business operations. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities. We manage a matched book with respect to our derivative instruments in order to minimize our net risk exposure resulting from such transactions. Our cash flow hedging program began in the third quarter of 2016.

Fair Values of Derivative Instruments

The table below presents the fair value of our derivative financial instruments as well as their location on the Consolidated Statements of Financial Condition as of June 30, 2017.

	Fair Values of Derivative Instruments
(Dollars in thousands)		Count	Notional		Balance Sheet Location	Liability Derivatives (Fair Value)
Derivatives designated as hedging instruments:
Interest rate products		3	$	75,000	Other Liabilities	$	2,612
Total derivatives designated as hedging instruments						$	2,612

Cash Flow Hedges of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest income and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for us making variable-rate payments over the life of the agreements without exchange of the underlying notional amount.

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The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. During the six months endedJune 30, 2017, such derivatives were used to hedge the variable cash flows associated with a variable rate loan pool. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the six months endedJune 30, 2017, we did not record any hedge ineffectiveness.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on our variable-rate pooled loans. During the next twelve months, we estimate that less than $0.2 million will be reclassified as an increase to interest income. During the six months ended 2017, $0.1 million was reclassified into interest income.

We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of 1 month (excluding forecasted transactions related to the payment of variable interest on existing financial instruments).

As of June 30, 2017, we had three outstanding interest rate derivatives with a notional of $75 million that were designated as cash flow hedges of interest rate risk.

Effect of Derivative Instruments on the Income Statement

The table below presents the effect of the derivative financial instruments on the Consolidated Statements of Income for the three and six months endedJune 30, 2017 and June 30, 2016 .

(Dollars in thousands)	Amount of Gain Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss)Reclassified from Accumulated OCI into Income (Effective Portion)
	Three months ended June 30,
Derivatives in Cash Flow Hedging Relationships	2017		2016
Interest Rate Products	$	263	$	—	Interest income
Total	$	263	$	—

(Dollars in thousands)	Amount of Gain Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss)Reclassified from Accumulated OCI into Income (Effective Portion)
	Six months ended June 30,
Derivatives in Cash Flow Hedging Relationships	2017		2016
Interest Rate Products	$	150	$	—	Interest income
Total	$	150	$	—

Credit risk-related Contingent Features

We have agreements with certain of our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations.

We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements.

As of June 30, 2017, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $2.6 million. We have minimum collateral posting thresholds with certain of our derivative counterparties, and have posted collateral of $3.4 million against our obligations under these agreements. If we had breached any of these provisions at June 30, 2017, we could have been required to settle our obligations under the agreements at the termination value.

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12. SEGMENT INFORMATION

As defined in FASB 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.

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. 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 fiduciary, investment management, credit and deposit products to clients through six business lines. WSFS Wealth Investments provides insurance and brokerage products primarily to our retail banking clients. Cypress Capital Management, LLC is a registered investment adviser. Cypress’ primary market segment is high net worth individuals, offering a ‘balanced’ investment style focused on preservation of capital and current income. West Capital Management, a registered investment adviser, is a fee-only wealth management firm which operates under a multi-family office philosophy and provides fully-customized solutions tailored to the unique needs of institutions and high net worth individuals. 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. Powdermill Financial Solutions is a multi-family office that specializes in providing unique, independent solutions to high net worth individuals, families and corporate executives through a coordinated, centralized approach. 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.

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Segment information for the three months ended June 30, 2017 and 2016 is as follows:

	Three months ended June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	60,234	$	—	$	2,100	$	62,334
Noninterest income	12,049		10,514		9,113		31,676
Total external customer revenues	72,283		10,514		11,213		94,010
Inter-segment revenues:
Interest income	2,247		—		2,435		4,682
Noninterest income	1,906		207		40		2,153
Total inter-segment revenues	4,153		207		2,475		6,835
Total revenue	76,436		10,721		13,688		100,845
External customer expenses:
Interest expense	7,739		—		281		8,020
Noninterest expenses	38,782		6,591		7,354		52,727
Provision for loan losses	1,316		—		527		1,843
Total external customer expenses	47,837		6,591		8,162		62,590
Inter-segment expenses:
Interest expense	2,435		1,582		665		4,682
Noninterest expenses	247		673		1,233		2,153
Total inter-segment expenses	2,682		2,255		1,898		6,835
Total expenses	50,519		8,846		10,060		69,425
Income before taxes	$	25,917	$	1,875	$	3,628	$	31,420
Income tax provision							10,850
Consolidated net income							$	20,570
Capital expenditures	$	1,559	$	68	$	363	$	1,990

	June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	96,306	$	643,506	$	5,499	$	745,311
Goodwill	145,808		—		20,199		166,007
Other segment assets	5,690,046		5,018		216,045		5,911,109
Total segment assets	$	5,932,160	$	648,524	$	241,743	$	6,822,427

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	Three months ended June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®			Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	49,492	$	—		$	2,011	$	51,503
Noninterest income	10,173		8,796		(r)	6,538		25,507
Total external customer revenues	59,665		8,796			8,549		77,010
Inter-segment revenues:
Interest income	1,135		—			1,652		2,787
Noninterest income	2,011		210			25		2,246
Total inter-segment revenues	3,146		210			1,677		5,033
Total revenue	62,811		9,006			10,226		82,043
External customer expenses:
Interest expense	4,896		—			193		5,089
Noninterest expenses	34,462		5,489		(r)	4,734		44,685
Provision for loan losses	1,191		—			63		1,254
Total external customer expenses	40,549		5,489			4,990		51,028
Inter-segment expenses:
Interest expense	1,652		628			507		2,787
Noninterest expenses	235		727			1,284		2,246
Total inter-segment expenses	1,887		1,355			1,791		5,033
Total expenses	42,436		6,844			6,781		56,061
Income before taxes	$	20,375	$	2,162		$	3,445	$	25,982
Income tax provision								8,504
Consolidated net income								$	17,478
Capital expenditures	$	2,235	$	404		$	6	$	2,645

	June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	84,919	$	617,339	$	1,635	$	703,893
Goodwill	79,718		—		5,134		84,852
Other segment assets	4,843,166		3,419		198,777		5,045,362
Total segment assets	$	5,007,803	$	620,758	$	205,546	$	5,834,107

^(r) Noninterest income and noninterest expense for the period ended June 30, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information.

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Segment information for the six months ended June 30, 2017 and 2016 is as follows:

	Six months ended June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	118,922	$	—	$	4,238	$	123,160
Noninterest income	22,216		20,191		17,361		59,768
Total external customer revenues	141,138		20,191		21,599		182,928
Inter-segment revenues:
Interest income	4,243		—		4,500		8,743
Noninterest income	4,070		398		76		4,544
Total inter-segment revenues	8,313		398		4,576		13,287
Total revenue	149,451		20,589		26,175		196,215
External customer expenses:
Interest expense	15,202		—		541		15,743
Noninterest expenses	77,742		12,726		13,765		104,233
Provision for loan losses	3,032		—		973		4,005
Total external customer expenses	95,976		12,726		15,279		123,981
Inter-segment expenses
Interest expense	4,500		2,987		1,256		8,743
Noninterest expenses	474		1,388		2,682		4,544
Total inter-segment expenses	4,974		4,375		3,938		13,287
Total expenses	100,950		17,101		19,217		137,268
Income before taxes	$	48,501	$	3,488	$	6,958	$	58,947
Income tax provision							19,440
Consolidated net income							$	39,507
Capital expenditures	$	3,647	$	90	$	617	$	4,354

	June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	96,306	$	643,506	$	5,499	$	745,311
Goodwill	145,808		—		20,199		166,007
Other segment assets	5,690,046		5,018		216,045		5,911,109
Total segment assets	$	5,932,160	$	648,524	$	241,743	$	6,822,427

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	Six months ended June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®			Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	97,530	$	—		$	4,019	$	101,549
Noninterest income	20,025		17,068		(r)	12,083		49,176
Total external customer revenues	117,555		17,068			16,102		150,725
Inter-segment revenues:
Interest income	2,196		—			3,547		5,743
Noninterest income	4,071		403			49		4,523
Total inter-segment revenues	6,267		403			3,596		10,266
Total revenue	123,822		17,471			19,698		160,991
External customer expenses:
Interest expense	9,393		—			386		9,779
Noninterest expenses	68,274		10,938		(r)	9,271		88,483
Provision for loan losses	2,006		—			28		2,034
Total external customer expenses	79,673		10,938			9,685		100,296
Inter-segment expenses
Interest expense	3,547		1,183			1,013		5,743
Noninterest expenses	452		1,442			2,629		4,523
Total inter-segment expenses	3,999		2,625			3,642		10,266
Total expenses	83,672		13,563			13,327		110,562
Income before taxes	$	40,150	$	3,908		$	6,371	$	50,429
Income tax provision								17,181
Consolidated net income								$	33,248
Capital expenditures	$	3,446	$	424		$	8	$	3,878

	June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	84,919	$	617,339	$	1,635	$	703,893
Goodwill	79,718		—		5,134		84,852
Other segment assets	4,843,166		3,419		198,777		5,045,362
Total segment assets	$	5,007,803	$	620,758	$	205,546	$	5,834,107

^(r) Noninterest income and noninterest expense for the period ended June 30, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information.

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13. INDEMNIFICATIONS AND GUARANTEES

Secondary Market Loan Sales

Given the current interest rate environment, coupled with our desire not to hold newly originated residential mortgage loans in our portfolio, we generally sell these assets in the secondary market to mortgage loan aggregators and on a more limited basis, to GSEs such as FHLMC, FNMA, and the FHLB. Loans held for sale are reflected on our unaudited Consolidated Statements of Financial Condition at fair value with changes in the value reflected in our unaudited Consolidated Statements of Income. Gains and losses are recognized at the time of sale. We periodically retain the servicing rights on residential mortgage loans sold which results in monthly service fee income. The mortgage servicing rights are included in our intangible assets in our unaudited Consolidated Statements of Financial Condition. Otherwise, we sell loans with servicing released on a nonrecourse basis. Rate-locked loan commitments that we intend to sell in the secondary market are accounted for as derivatives under ASC Topic 815, Derivatives and Hedging (ASC:815).

We generally do not sell loans with recourse, except for standard loan sale contract provisions covering violations of representations and warranties and, under certain circumstances, early payment default by the borrower. These are customary repurchase provisions in the secondary market for residential mortgage loan sales. These provisions may include either an indemnification from loss or the repurchase of the loans. Repurchases and losses have been rare and no provision is made for losses at the time of sale. There were no such repurchases for the six months ended June 30, 2017.

Swap Guarantees

We entered into agreements with three unrelated financial institutions whereby those financial institutions entered into interest rate derivative contracts (interest rate swap transactions) with customers referred to them by us. Under the terms of the agreements, those financial institutions have recourse to us for any exposure created under each swap transaction in the event that the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. This is a customary arrangement that allows us to provide access to interest rate swap transactions for our customers without creating the swap ourselves. These swap guarantees are accounted for as credit derivatives. 

At June 30, 2017 and December 31, 2016, there were 133 and 134 variable-rate to fixed-rate swap transactions between the third party financial institutions and our customers, respectively. The initial notional aggregate amount was approximately $526.9 million at June 30, 2017 compared to $518.8 million at December 31, 2016. At June 30, 2017 maturities ranged from under one year to ten years. The aggregate market value of these swaps to the customers was a liability of $10.1 million at June 30, 2017 and $10.9 million at December 31, 2016. We had no reserves for the swap guarantees as of June 30, 2017.

14. CHANGE IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

Accumulated other comprehensive (loss) income includes unrealized gains and losses on available-for-sale investments, unrealized gains and losses on cash flow hedges, as well as unrecognized prior service costs, transition costs, and actuarial gains and losses on defined benefit pension plans. Changes to accumulated other comprehensive (loss) income are presented net of tax as a component of stockholders equity. Amounts that are reclassified out of accumulated other comprehensive (loss) income are recorded on the Consolidated Statement of Income either as a gain or loss.

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Changes to accumulated other comprehensive (loss) income by component are shown net of taxes in the following tables for the period indicated:

(Dollars in thousands)	Net change  in investment securities available for sale			Net change in securities held to maturity			Net change in defined benefit plan			Net change in fair value of derivative used for cash flow hedge			Total
Balance, March 31, 2017	$	(7,128	)	$	1,291		$	934		$	(1,884	)	$	(6,787	)
Other comprehensive income (loss) before reclassifications	3,241			—			—			262			3,503
Less: Amounts reclassified from accumulated other comprehensive loss	(455		)	(97		)	(22		)	—			(574		)
Net current-period other comprehensive income (loss)	2,786			(97		)	(22		)	262			2,929
Balance, June 30, 2017	$	(4,342	)	$	1,194		$	912		$	(1,622	)	$	(3,858	)
Balance, March 31, 2016	$	8,496		$	1,692		$	1,266		$	—		$	11,454
Other comprehensive income before reclassifications	4,683			—			—			—			4,683
Less: Amounts reclassified from accumulated other comprehensive income	(338		)	(100		)	(22		)	—			(460		)
Net current-period other comprehensive income (loss)	4,345			(100		)	(22		)	—			4,223
Balance, June 30, 2016	$	12,841		$	1,592		$	1,244		$	—		$	15,677
Balance, December 31, 2016	$	(8,194	)	$	1,392		$	957		$	(1,772	)	$	(7,617	)
Other comprehensive income (loss) before reclassifications	4,513			—			—			150			4,663
Less: Amounts reclassified from accumulated other comprehensive loss	(661		)	(198		)	(45		)	—			(904		)
Net current-period other comprehensive income (loss)	3,852			(198		)	(45		)	150			3,759
Balance, June 30, 2017	$	(4,342	)	$	1,194		$	912		$	(1,622	)	$	(3,858	)
Balance, December 31, 2015	$	(1,887	)	$	1,795		$	788		$	—		$	696
Other comprehensive income (loss) before reclassifications	15,255			—			—			—			15,255
Less: Amounts reclassified from accumulated other comprehensive loss	(527		)	(203		)	456			—			(274		)
Net current-period other comprehensive income (loss)	14,728			(203		)	456			—			14,981
Balance, June 30, 2016	$	12,841		$	1,592		$	1,244		$	—		$	15,677

The Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below:

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							Affected line item in
	Three Months Ended						Consolidated
(Dollars in thousands)	June 30,						Statements of Income
	2017			2016
Securities available for sale:
Realized gains on securities transactions	$	(708	)	$	(545	)	Security gains, net
Income taxes	253			207			Income tax provision
Net of tax	$	(455	)	$	(338	)
Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity:
Amortization of net unrealized gains to income during the period	$	(159	)	$	(162	)	Interest income on investment securities
Income taxes	62			62			Income tax provision
Net of tax	$	(97	)	$	(100	)
Amortization of Defined Benefit Pension items:
Prior service (credits) costs	$	(19	)	$	(19	)
Actuarial (gains) losses	(18		)	(16		)
Total before tax	$	(37	)	$	(35	)	Salaries, benefits and other compensation
Income taxes	15			13			Income tax provision
Net of tax	(22		)	(22		)
Total reclassifications	$	(574	)	$	(460	)

							Affected line item in
	Six months ended						Consolidated
(Dollars in thousands)	June 30,						Statements of Income
	2017			2016
Securities available for sale:
Realized gains on securities transactions	$	(1,028	)	$	(850	)	Security gains, net
Income taxes	367			323			Income tax provision
Net of tax	$	(661	)	$	(527	)
Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity:
Amortization of net unrealized gains to income during the period	$	(319	)	$	(330	)	Interest income on investment securities
Income taxes	121			127			Income tax provision
Net of tax	$	(198	)	$	(203	)
Amortization of Defined Benefit Pension items:
Prior service (credits) costs	$	(38	)	$	(26	)
Actuarial (gains) losses	(34		)	762
Total before tax	$	(72	)	$	736		Salaries, benefits and other compensation
Income taxes	27			(280		)	Income tax provision
Net of tax	(45		)	456
Total reclassifications	$	(904	)	$	(274	)

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15. RELATED PARTY TRANSACTIONS

In the ordinary course of business, from time to time we enter into transactions with related parties, including, but not limited to, our officers and directors. These transactions are made on substantially the same terms and conditions, including interest rates and collateral requirements, as those prevailing at the same time for comparable transactions with other customers. They do not, in the opinion of management, involve greater than normal credit risk or include other unfavorable features.

The outstanding balances of loans to related parties at June 30, 2017 and December 31, 2016 were $1.1 million and $1.3 million, respectively. Total deposits from related parties at June 30, 2017 and December 31, 2016 were $7.1 million and $3.6 million, respectively. During the second quarter of 2017, there were no new loans and credit line advances to related parties and repayments were $0.6 million. For the six months ended June 30, 2017, new loans and credit line advances to related parties were $0.4 million and repayments were $0.6 million.

16. LEGAL AND OTHER PROCEEDINGS

In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation-related matters that arise in the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance.

From time to time we are brought into certain legal matters and/or disputes through our Wealth Management segment, as a result of sometimes highly complex documents and servicing requirements that are part of this business. While the outcomes carry some degree of uncertainty, management does not currently anticipate that the ultimate liability, if any, arising out of such proceedings of which we are aware, will have a material effect on the Consolidated Financial Statements.

On April 7, 2015, WSFS Bank received a notice of arbitration and statement of claim (the Claim) from Universitas Education, LLC (Universitas) relating to Christiana Trust acting as “insurance trustee” of the Charter Oak Trust Welfare Benefit Plan (the Trust). The actions underlying the Claim occurred during a period prior to WSFS’ acquisition of Christiana Trust. According to the allegations contained in the Claim, certain life insurance policy death benefits made payable to an individual claiming/purporting to be a trustee of the Trust were misappropriated by individuals associated with the plan sponsor. None of those individuals, however, were employed by or agents of Christiana Trust or WSFS Bank. It is alleged that Christiana Trust, as insurance trustee, owed a fiduciary duty to the beneficiaries of the Trust and that it breached its fiduciary duty, was negligent, and aided and abetted fraud and theft in connection with the disappearance of the misappropriated funds. It is further alleged that Universitas was the rightful beneficiary under the Trust of the misappropriated funds, and thus was harmed because it did not receive the death benefits that had been paid over to the purported trustee of the Trust. While the face amounts of the two insurance policies in question total $30 million, Universitas recently revised its total Claim to assert an alleged loss of approximately $27 million plus costs and interest to date of $26 million. WSFS is vigorously defending itself against the Claim and believes that it has valid factual and legal defenses to the Claim. The evidentiary hearing commenced in July 2017, and it is anticipated that a decision in the arbitration will be rendered by fourth quarter 2017 or first quarter 2018. WSFS does not believe that the ultimate resolution of the Claim will have a material adverse effect on the Company, but there can be no assurance as to the ultimate outcome.

There were no material changes or additions to other significant pending legal or other proceedings involving us other than those arising out of routine operations.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

WSFS is a savings and loan holding company headquartered in Wilmington, Delaware. Substantially all of our assets are held by our subsidiary, Wilmington Savings Fund Society, FSB, or WSFS Bank, one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). At $6.82 billion in assets and $17.40 billion in assets under management and administration, WSFS Bank is also the largest bank and trust company headquartered in the Delaware Valley. As a federal savings bank, which was formerly chartered as a state mutual savings bank, the Bank enjoys broader fiduciary powers than most other types of financial institutions. A fixture in the community, we have been in operation for more than 185 years. In addition to our focus on stellar customer service, we have continued to fuel growth and remain a leader in our community. We are a relationship-focused, locally-managed, community banking institution. We state our mission simply: “We Stand for Service.” Our strategy of “Engaged Associates delivering Stellar Experiences growing Customer Advocates and value for our Owners” focuses on exceeding customer expectations, delivering stellar experiences and building customer advocacy through highly-trained, relationship-oriented, friendly, knowledgeable and empowered Associates.

We have four consolidated subsidiaries, WSFS Bank, Cypress Capital Management, LLC (Cypress), WSFS Capital Management, LLC (West Capital) and WSFS Wealth Management, LLC (Powdermill) as well as one unconsolidated subsidiary, WSFS Capital Trust III (the Capital Trust). WSFS Bank has three wholly-owned subsidiaries, WSFS Wealth Investments, 1832 Holdings, Inc. and Monarch Entity Services LLC (Monarch).

Our core banking business is commercial lending funded by customer-generated deposits. We have built a $3.85 billion commercial loan portfolio by recruiting the best seasoned commercial lenders in our markets and offering the high level of service and flexibility typically associated with a community bank. We fund this business primarily with deposits generated through commercial relationships and retail deposits. As of June 30, 2017 , we service our customers primarily from our 76 offices located in Delaware (45), Pennsylvania (29), Virginia (1) and Nevada (1) and through our website at www.wsfsbank.com. We also offer a broad variety of consumer loan products, retail securities and insurance brokerage through our retail branches, and mortgage and title services through those branches and through Pennsylvania-based WSFS Mortgage. WSFS Mortgage is a mortgage banking company specializing in a variety of residential mortgage and refinancing solutions.

The Cash Connect^® segment is a premier provider of ATM vault cash and smart safe and cash logistics in the U.S. Cash Connect^® manages over $934.1 million in total cash and services in 21,500 non-bank ATMs nationwide and 1,027 smart safes nationwide. Cash Connect^® provides related services such as online reporting and ATM cash management, predictive cash ordering, armored carrier management, ATM processing equipment sales and deposit safe cash logistics. Cash Connect^® also operates over 440 ATMs for the Bank, which has the largest branded ATM network in Delaware.

As a provider of ATM vault cash to the U.S. ATM industry, Cash Connect^® is exposed to substantial operational risk, including theft of cash from ATMs, armored vehicles, or armored carrier terminals, as well as general risk of accounting errors or fraud. This risk is managed through a series of financial controls, automated tracking and settlement systems, contracts, and other risk mitigation strategies, including both loss prevention and loss recovery strategies. Throughout its 17-year history, Cash Connect^® periodically has been exposed to losses through theft from armored courier companies and consistently has been able to recover losses through its risk management strategies.

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The Wealth Management segment provides a broad array of fiduciary, investment management, credit and deposit products to clients through six businesses. WSFS Wealth Investments, with $172.0 million in assets under management (AUM), provides insurance and brokerage products primarily to our retail banking clients in AUM. Cypress is a registered investment adviser with approximately $822.0 million in AUM (includes $110.0 million of Christiana Trust assets for which Cypress serves as sub-adviser). Cypress is a fee-only wealth management firm offering a “balanced” investment style focused on preservation of capital and providing current income whose primary market segment is high net worth individuals. West Capital is a registered investment adviser with approximately $796.7 million in AUM. West Capital is a fee-only wealth management firm which operates under a multi-family office philosophy and provides fully customized solutions tailored to the unique needs of institutions and high net worth individuals. Christiana Trust, with $15.72 billion in AUM and assets under administration (includes $110.0 million of Christiana Trust assets for which Cypress serves as sub-adviser), provides fiduciary and investment services to personal trust clients; and trustee, agency, bankruptcy administration, custodial and commercial domicile services to corporate and institutional clients. Powdermill Financial Solutions, LLC is a multi-family office that specializes in providing unique, independent solutions to high net worth individuals, families and corporate executives. 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.

As a provider of trust services to our clients, we are exposed to operational, reputation-related and legal risks due to the inherent complexity of the trust business. To mitigate these risks, we rely on the hiring, development and retention of experienced Associates, financial controls, managerial oversight, and other risk management practices. Also, from time to time our trust business may give rise to disputes with clients and we may be exposed to litigation which could result in significant costs. The ultimate outcome of any litigation is uncertain.

FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY

Financial Condition

Our total assets increased $57.2 million, or 1%, to $6.82 billion at June 30, 2017 compared to December 31, 2016. Net loans increased $135.3 million, or 3%, primarily due to organic growth in our loan portfolio. Available-for-sale investment securities increased $24.0 million, or 3.0% as part of our balance sheet management strategy. Partially offsetting these increases, cash and cash equivalents decreased by $76.6 million, or 9%, due primarily to improved cash optimization resulting in lower cash in non-owned ATMs. Loans held for sale decreased $19.4 million, or 35%, consistent with our strategy to sell most newly originated residential mortgages in the secondary market.

Total liabilities increased $21.9 million, or less than 1%, to $6.10 billion during the six months endedJune 30, 2017. Deposits increased $95.6 million, or 2%, due to robust organic and acquisition-related growth, and other liabilities increased $29.7 million, or 42% due to obligations related to securities trades which settled in the third quarter. These increases were partially offset by lower federal funds purchased and securities sold under agreement to repurchase, which decreased $65.0 million or 50%, FHLB advances, used to fund growth in our balance sheet assets, which decreased $30.6 million, or 4%, due to the increase in deposits and a decrease of $9.4 million, or 15% in other borrowed funds.

Capital Resources

Senior Debt: During the second quarter of 2016, WSFS issued $100.0 million in aggregate principal amount of 4.50% fixed-to-floating rate senior notes due June 15, 2026. The Company is using the net proceeds from the offering for general corporate purposes.

In 2012, we issued $55.0 million in aggregate principal amount of 6.25% senior notes due 2019. The 2012 senior debt is callable, in whole or in part, on September 1, 2017, or on any scheduled interest payment date thereafter, at our option. We expect to call the 2012 senior debt during the third quarter of 2017.

Share Repurchases: During the second quarter of 2017, WSFS repurchased 71,000 shares of common stock at an average price of $45.18 as part of our 5% share buyback program approved by the Board of Directors during the fourth quarter of 2015. WSFS has 821,194 shares, or nearly 3% of outstanding shares, remaining to repurchase under this authorization.

50

Stockholders’ equity increased $35.3 million between December 31, 2016 and June 30, 2017. This increase was primarily due to net income for the six months endedJune 30, 2017 of $39.5 million, improvement in the fair value of our available-for-sale securities portfolio of $3.9 million (after-tax), or 49%, and an increase of $2.4 million from the issuance of stock based compensation and stock option expense. These were partially offset by year-to-date stock buybacks of $6.0 million and the payment of common stock dividends of $4.4 million.

The table below compares the Bank's and the Company’s consolidated capital position to the minimum regulatory requirements as of June 30, 2017:

	Consolidated Capital				For Capital Adequacy Purposes				To be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Total Capital (to Risk-Weighted Assets)
Wilmington Savings Fund Society, FSB	$	697,744	12.14	%	$	459,946	8.00	%	$	574,933	10.00	%
WSFS Financial Corporation	654,112		11.34	%	461,375		8.00	%	576,718		10.00	%
Tier 1 Capital (to Risk-Weighted Assets)
Wilmington Savings Fund Society, FSB	656,712		11.42	%	344,960		6.00	%	459,946		8.00	%
WSFS Financial Corporation	613,080		10.63	%	346,031		6.00	%	461,375		8.00	%
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
Wilmington Savings Fund Society, FSB	656,712		11.42	%	258,720		4.50	%	373,706		6.50	%
WSFS Financial Corporation	548,143		9.50	%	259,523		4.50	%	374,867		6.50	%
Tier 1 Leverage Capital
Wilmington Savings Fund Society, FSB	656,712		10.06	%	261,227		4.00	%	326,533		5.00	%
WSFS Financial Corporation	613,080		9.36	%	262,127		4.00	%	327,659		5.00	%

Book value per share of common stock was $22.99 at June 30, 2017, an increase of $1.09, or 5% from $21.90 at December 31, 2016. Tangible book value per share of common stock (a non-GAAP financial measure) was $16.94 at June 30, 2017, an increase of $1.14, or 7%, from $15.80 at December 31, 2016.  We believe tangible common book value per share helps management and investors better understand and assess changes from period to period in stockholders’ equity exclusive of changes in intangible assets. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. For a reconciliation of tangible common book value per share to book value per share in accordance with GAAP, see Reconciliation of Non-GAAP Measure to GAAP.

Regulators have established five capital tiers: well-capitalized, adequately-capitalized, under-capitalized, significantly under-capitalized, and critically under-capitalized. A depository institution’s capital tier depends on its capital levels in relation to various relevant capital measures, which include leveraged and risk-based capital measures and certain other factors. Depository institutions that are not classified as well-capitalized are subject to various restrictions regarding capital distributions, payment of management fees, acceptance of brokered deposits and other operating activities.

Regulatory capital requirements for the Bank and the Company include a minimum common equity Tier 1 capital ratio of 4.50% of risk-weighted assets, a Tier 1 capital ratio of 6.00% of risk-weighted assets, a minimum Total capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 leverage capital ratio of 4.00% of average assets.

Not included in the Bank’s capital, the Company separately held $87.5 million in cash to support share repurchases, the planned call of our 2012 senior debt during the third quarter of 2017, potential dividends, acquisitions, strategic growth plans and other general corporate purposes.

As shown in the table above, as of June 30, 2017, the Bank and the Company were in compliance with regulatory capital requirements and exceeded the amounts required to be considered “well capitalized” as defined in the regulations.

51

Liquidity

We manage our liquidity and funding needs through our Treasury function and our Asset/Liability Committee. We have a policy that separately addresses liquidity, and management monitors our adherence to policy limits. Also, liquidity risk management is a primary area of examination by the banking regulators.

We have ready access to several funding sources to fund growth and meet our liquidity needs.  Among these are cash from operations, retail deposit programs, loan repayments, FHLB borrowings, repurchase agreements, access to the Federal Discount Window, and access to the brokered deposit market as well as other wholesale funding avenues. In addition, we have a large portfolio of high-quality, liquid investments, primarily short-duration mortgage-backed securities and government sponsored enterprises notes, that provide a near-continuous source of cash flow to meet current cash needs, or can be sold to meet larger discrete needs for cash. We believe these sources are sufficient to meet our funding needs as well as maintain required and prudent levels of liquidity over the next twelve months.

During the six months ended June 30, 2017, cash and cash equivalents decreased $76.6 million to $745.3 million from $821.9 million as of December 31, 2016. Cash provided by operating activities was $59.9 million, reflecting the cash impact from earnings and sale of loans held for sale during the six months ended June 30, 2017. Cash used by investing activities was $117.6 million, primarily due to increased lending of $135.9 million, partially offset by $13.8 million of net cash received from the sale of available- for-sale securities. Cash used by financing activities was $18.9 million, primarily from $30.6 million of repayments on FHLB advances, $65.0 million of repayments on federal funds purchased and securities sold under agreement to repurchase, $6.0 million for repurchase of common stock, and cash paid for dividends of $4.4 million, all of which were partially offset by $86.6 million of cash received from net increases in deposit balances.

NONPERFORMING ASSETS

Nonperforming assets (NPAs) include nonaccruing loans, other real estate owned and restructured loans. Nonaccruing loans are those on which we no longer accrue interest. Loans are placed on nonaccrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and the value of the collateral is insufficient to cover principal and interest. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the amortization of net deferred loan fees is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Past due loans are defined as loans contractually past due 90 days or more as to principal or interest payments but which remain in accrual status because they are considered well secured and in the process of collection.

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The following table shows our nonperforming assets and past due loans at the dates indicated:

(Dollars in thousands)	June 30, 2017			December 31, 2016
Nonaccruing loans:
Commercial	$	14,704		$	2,015
Owner-occupied commercial	3,432			2,078
Commercial mortgages	10,728			9,821
Construction	1,062			—
Residential mortgages	4,960			4,967
Consumer	3,496			3,995
Total nonaccruing loans	38,382			22,876
Other real estate owned	2,121			3,591
Restructured loans (1)	18,109			14,336
Total nonperforming assets	$	58,612		$	40,803
Past due loans: (1)
Residential mortgages	$	—		$	153
Consumer	92			285
Total past due loans	$	92		$	438
Ratio of allowance for loan losses to total gross loans (2)	0.87		%	0.89		%
Ratio of nonaccruing loans to total gross loans (2)	0.83			0.51
Ratio of nonperforming assets to total assets	0.86			0.60
Ratio of loan loss allowance to nonaccruing loans	104.23			173.77
Ratio of loan loss allowance to total nonperforming assets	0.68			0.97

⁽¹⁾  Accruing loans only, which includes acquired nonimpaired loans. Nonaccruing TDRs are included in their respective categories of nonaccruing loans.

⁽²⁾  Total loans exclude loans held for sale and reverse mortgages.

Nonperforming assets increased $17.8 million between December 31, 2016 and June 30, 2017. As a result, the ratio of nonperforming assets to total assets increased to 0.86% at June 30, 2017 from 0.60% at December 31, 2016. The increase was primarily due to one $9.7 million locally-based, C&I participation that was downgraded during the first quarter of 2017 after a targeted energy sector review. The loan relationship has been, and continues to be, paying current, and positive resolution is expected. The remaining increase in nonperforming assets was primarily due to three smaller C&I relationships (ranging from $1.8 to $3.5 million and totaling $7.6 million) that were moved to nonaccruing status during the first quarter. These relationships were from unrelated industries that had specific events that caused weakness in the underlying business. In each case, a comprehensive impairment analysis was completed and the results are included in the provision for loan losses for the six months ended June 30, 2017.

TDRs (accruing) increased during the six months ended June 30, 2017 by $3.8 million mainly due to the addition of one construction portfolio relationship totaling $2.3 million and several smaller consumer loans. Other Real Estate Owned (OREO) properties declined $1.5 million during the six months ended June 30, 2017 due primarily to the sale of properties totaling $4.1 million which were offset by new properties totaling $2.7 million.

The following table summarizes the changes in nonperforming assets during the periods indicated:

	Six months ended			Six months ended
(Dollars in thousands)	June 30, 2017			June 30, 2016
Beginning balance	$	40,803		$	39,892
Additions	33,378			4,602
Collections	(8,705		)	(10,248		)
Transfers to accrual	(2,451		)	(287		)
Charge-offs	(4,413		)	(2,373		)
Ending balance	$	58,612		$	31,586

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The timely identification of problem loans is a key element in our strategy to manage our loan portfolio. Problem loans are all criticized, classified and nonperforming loans and other real estate owned. Timely identification enables us to take appropriate action and, accordingly, minimize losses. An asset review system established to monitor the asset quality of our loans and investments in real estate portfolios facilitates the identification of problem assets. In general, this system utilizes guidelines established by federal regulation.

INTEREST RATE SENSITIVITY

The matching of maturities or repricing periods of interest rate-sensitive assets and liabilities to promote a favorable interest rate spread and mitigate exposure to fluctuations in interest rates is our primary tool for achieving our asset/liability management strategies. We regularly review our interest rate sensitivity and adjust the sensitivity within acceptable tolerance ranges. At June 30, 2017, interest-earning liabilities exceeded interest-bearing assets that mature or reprice within one year (interest-sensitive gap) by $181.5 million . Our interest-sensitive assets as a percentage of interest-sensitive liabilities within the one-year window increased from 91.03% at December 31, 2016 to 94.4% at June 30, 2017. Likewise, the one-year interest-sensitive gap as a percentage of total assets increased from (4.41%) at December 31, 2016 to (2.26%) at June 30, 2017. The low rate level of sensitivity reflects our continuing efforts to effectively manage interest rate risk.

Market risk is the risk of loss from adverse changes in market prices and rates. Our market risk arises primarily from interest rate risk inherent in our lending, investing, and funding activities. To that end, we actively monitor and manage our interest rate risk exposure. One measure, which we are required to perform by federal regulation, measures the impact of an immediate change in interest rates in 100 basis point increments on the economic value of equity ratio. The economic value of the equity ratio is defined as the economic value of the estimated cash flows from assets and liabilities as a percentage of economic value of cash flows from total assets.

The following table shows the estimated impact of immediate changes in interest rates on our net interest margin and economic value of equity ratio at the specified levels at June 30, 2017 and December 31, 2016:

June 30, 2017			December 31, 2016
% Change in Interest Rate (Basis Points)	% Change in Net Interest Margin (1)	Economic Value of Equity (2)	% Change in Net Interest Margin (1)	Economic Value of Equity (2)
+300	5%	15.40%	3%	14.04%
+200	3%	15.46%	2%	14.09%
+100	2%	15.34%	<1%	14.00%
—	—%	15.09%	—%	13.80%
-100	3%	14.21%	<1%	13.08%
-200 (3)	NMF	NMF	NMF	NMF
-300 (3)	NMF	NMF	NMF	NMF

⁽¹⁾  The percentage difference between net interest margin in a stable interest rate environment and net interest margin as projected under the various rate change environments.

⁽²⁾  The economic value of equity ratio of the Company in a stable interest rate environment and the economic value of equity ratio as projected under the various rate change environments.

⁽³⁾  Sensitivity indicated by a decrease of 200 or 300 basis points is not deemed meaningful (NMF) given the low absolute level of interest rates at that time.

We also engage in other business activities that are sensitive to changes in interest rates. For example, mortgage banking revenues and expenses can fluctuate with changing interest rates. These fluctuations are difficult to model and estimate.

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RESULTS OF OPERATIONS

Three months endedJune 30, 2017: Net income was $20.6 million for the three months endedJune 30, 2017 compared with $17.5 million for the three months endedJune 30, 2016. Net interest income for the three months endedJune 30, 2017 was $54.3 million, an increase of $7.9 million compared to the three months endedJune 30, 2016, due primarily to organic and acquisition-related growth, partially offset by higher interest expense related to deposit growth, our issuance of senior unsecured notes during the second quarter of 2016, and higher FHLB advances. Noninterest income increased $6.2 million to $31.7 million during the second quarter of 2017, primarily due to increased investment management and fiduciary revenue and growth in credit/debit card and ATM income - see “Noninterest (Fee) Income” for further information. Partially offsetting these increases was an $8.0 million increase in noninterest expenses during the second quarter of 2017, primarily reflecting higher employee-related and ongoing operating costs to support our organic and acquisition growth - see “Noninterest Expense” for further information.

Six months endedJune 30, 2017: Net income was $39.5 million for the six months endedJune 30, 2017 compared with $33.2 million for the six months endedJune 30, 2016. Net interest income for the six months endedJune 30, 2017 was $107.4 million, an increase of $15.6 million compared to the six months endedJune 30, 2016, primarily reflecting organic and acquisition-related growth, partially offset by higher interest expense related to deposit growth, our issuance of senior unsecured notes late in the second quarter of 2016, and higher FHLB advances. Noninterest income increased $10.6 million to $59.8 million during the six months endedJune 30, 2017, primarily due to increased investment management and fiduciary revenue and growth in credit/debit card and ATM income - see “Noninterest (Fee) Income” for further information. Partially offsetting these increases was a $15.8 million increase in noninterest expenses during the six months endedJune 30, 2017, primarily reflecting higher employee-related and ongoing operating costs to support our organic and acquisition growth - see “Noninterest Expense” for further information.

Efficiency Ratio: Our noninterest expenses are driven by our high-touch, high-service model. This, combined with our significant and diverse fee income mix, resulted in a second quarter2017 efficiency ratio of 60.8% compared to 61.5% for the second quarter of 2016 and 62.9% for the first quarter of 2017. Management believes its operating costs are at an appropriate level and scale for the Company’s size and products and services as our fee-based businesses typically carry a higher efficiency ratio as they derive revenue primarily based on active human capital costs versus passive assets. We continue to optimize and review our operations in order to limit cost increases or reduce costs, and expect continued improvement of our efficiency ratio throughout the remainder of the year, trending towards a fourth quarter ratio in the high 50%s. We ultimately expect to achieve our goal of a relatively flat efficiency ratio for the full year 2017 as compared to full year 2016 through continued reinvestment in our balance sheet and capabilities to support our organic and acquisition-related growth, as well as increased contributions from our fee-based businesses.

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Net Interest Income

The following tables provide information concerning the balances, yields and rates on interest-earning assets and interest-bearing liabilities during the periods indicated:

	Three months ended June 30,
	2017							2016
(Dollars in thousands)	Average Balance			Interest		Yield/ Rate (1)		Average Balance			Interest		Yield/ Rate (1)
Assets:
Interest-earning assets:
Loans: (2)
Commercial real estate loans	$	1,418,957		$	17,725	5.01	%	$	1,207,324		$	14,952	4.98	%
Residential real estate loans	274,114			3,980		5.81		272,792			4,312		6.38
Commercial loans	2,434,437			28,455		4.72		2,016,604			22,328		4.49
Consumer loans	478,326			5,589		4.69		367,769			4,074		4.46
Loans held for sale	32,339			324		4.01		31,270			317		3.56
Total loans	4,638,173			56,073		4.86		3,895,759			45,983		4.77
Mortgage-backed securities (3)	783,007			4,782		2.44		727,359			3,910		2.15
Investment securities (3)	166,536			1,136		4.05		205,944			1,226		3.48
Other interest-earning assets	33,155			343		4.14		32,465			384		4.73
Total interest-earning assets	5,620,871			62,334		4.50	%	4,861,527			51,503		4.32	%
Allowance for loan losses	(40,546		)					(37,351		)
Cash and due from banks	127,848							96,784
Cash in non-owned ATMs	574,348							510,684
Bank-owned life insurance	101,809							91,310
Other noninterest-earning assets	343,216							207,305
Total assets	$	6,727,546						$	5,730,259
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand	$	914,915		$	453	0.20	%	$	784,507		$	254	0.13	%
Money market	1,286,977			1,061		0.33		1,100,449			787		0.29
Savings	588,610			276		0.19		436,929			113		0.10
Customer time deposits	550,373			1,060		0.77		550,661			750		0.55
Total interest-bearing customer deposits	3,340,875			2,850		0.34		2,872,546			1,904		0.27
Brokered certificates of deposit	211,751			491		0.93		231,509			300		0.52
Total interest-bearing deposits	3,552,626			3,341		0.38		3,104,055			2,204		0.29
FHLB of Pittsburgh advances	639,147			1,797		1.13		714,271			1,124		0.63
Trust preferred borrowings	67,011			472		2.83		67,011			397		2.38
Senior debt	152,231			2,121		5.57		74,114			1,175		6.34
Other borrowed funds (4)	127,381			289		0.91		135,017			189		0.56
Total interest-bearing liabilities	4,538,396			8,020		0.71	%	4,094,468			5,089		0.50	%
Noninterest-bearing demand deposits	1,404,186							981,033
Other noninterest-bearing liabilities	71,183							48,543
Stockholders’ equity	713,781							606,215
Total liabilities and stockholders’ equity	$	6,727,546						$	5,730,259
Excess of interest-earning assets over interest-bearing liabilities	$	1,082,475						$	767,059
Net interest and dividend income				$	54,314						$	46,414
Interest rate spread						3.79	%						3.82	%
Net interest margin						3.93	%						3.90	%

⁽¹⁾  Weighted average yields have been computed on a tax-equivalent basis using a 35% effective tax rate.

⁽²⁾  Average balances include nonperforming loans and net of unearned income.

⁽³⁾  Includes securities available for sale at fair value.

⁽⁴⁾  Includes federal funds purchased and securities sold under agreement to repurchase.

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	Six months ended June 30,
	2017							2016
(Dollars in thousands)	Average Balance			Interest		Yield/ Rate (1)		Average Balance			Interest		Yield/ Rate (1)
Assets:
Interest-earning assets:
Loans: (2)
Commercial real estate loans	$	1,406,012		$	34,748	4.98	%	$	1,200,017		$	29,232	4.90	%
Residential real estate loans	278,012			8,961		6.45		277,147			8,220		5.93
Commercial loans	2,413,245			55,352		4.65		1,992,441			44,257		4.50
Consumer loans	467,907			10,997		4.74		364,405			8,167		4.51
Loans held for sale	36,691			696		3.79		32,079			669		4.19
Total loans	4,601,867			110,754		4.87		3,866,089			90,545		4.73
Mortgage-backed securities (3)	771,149			9,177		2.38		719,356			7,804		2.17
Investment securities (3)	197,517			2,385		3.54		204,804			2,446		3.50
Other interest-earning assets	38,005			844		4.44		31,512			754		4.79
Total interest-earning assets	5,608,538			123,160		4.48	%	4,821,761			101,549		4.30	%
Allowance for loan losses	(40,551		)					(37,448		)
Cash and due from banks	136,823							95,189
Cash in non-owned ATMs	628,350							481,570
Bank-owned life insurance	101,690							91,208
Other noninterest-earning assets	345,862							211,475
Total assets	$	6,780,712						$	5,663,755
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand	$	917,173		$	838	0.18	%	$	775,358		$	499	0.13	%
Money market	1,305,370			2,087		0.32		1,099,522			1,537		0.28
Savings	581,471			489		0.17		440,375			251		0.11
Customer time deposits	565,875			2,150		0.77		562,541			1,495		0.53
Total interest-bearing customer deposits	3,369,889			5,564		0.33		2,877,796			3,782		0.26
Brokered certificates of deposit	193,869			852		0.89		199,242			540		0.55
Total interest-bearing deposits	3,563,758			6,416		0.36		3,077,038			4,322		0.28
FHLB of Pittsburgh advances	752,335			3,655		0.98		694,259			2,172		0.63
Trust preferred borrowings	67,011			918		2.76		67,011			768		2.30
Senior debt	152,169			4,242		5.58		64,557			2,117		6.56
Other borrowed funds (4)	134,796			512		0.77		145,014			400		0.55
Total interest-bearing liabilities	4,670,069			15,743		0.68	%	4,047,879			9,779		0.49	%
Noninterest-bearing demand deposits	1,330,477							965,320
Other noninterest-bearing liabilities	73,997							51,424
Stockholders’ equity	706,169							599,132
Total liabilities and stockholders’ equity	$	6,780,712						$	5,663,755
Excess of interest-earning assets over interest-bearing liabilities	$	938,469						$	773,882
Net interest and dividend income				$	107,417						$	91,770
Interest rate spread						3.80	%						3.81	%
Net interest margin						3.91	%						3.89	%

⁽¹⁾  Weighted average yields have been computed on a tax-equivalent basis using a 35% effective tax rate.

⁽²⁾  Average balances include nonperforming loans and net of unearned income.

⁽³⁾  Includes securities available for sale at fair value.

⁽⁴⁾  Includes federal funds purchased and securities sold under agreement to repurchase.

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During the three months endedJune 30, 2017, net interest income increased $7.9 million, or 17% from the three months endedJune 30, 2016. Net interest margin was 3.93% for the second quarter of 2017, a 3 basis point increase compared to 3.90% for the second quarter of 2016. The increase in net interest margin includes the positive effects of our combination with Penn Liberty, disciplined pricing of loans and deposits, and higher short-term interest rates, partially offset higher wholesale borrowing costs to support increased fee income business in Cash Connect® and the negative impact of 6 basis points due to our issuance of $100.0 million of senior notes late in the second quarter of 2016. We expect to substantially recover the impact of the 2016 debt issuance as we plan to use part of the proceeds to pay off older, higher-cost debt during the third quarter of 2017.

During the six months endedJune 30, 2017, net interest income increased $15.6 million, or 17% from the six months endedJune 30, 2016, and the net interest margin was 3.91%, a 2 basis point increase compared to 3.89% for the six months endedJune 30, 2016. These year-over-year increases in margin dollars and percentages reflect the positive impact of our combination with Penn Liberty, disciplined pricing of loans and deposits, and higher short-term interest rates, partially offset by the higher wholesale borrowing costs and the impact of our 2016 senior debt issuance described in the preceding paragraph.

Provision/Allowance for Loan Losses

We maintain an allowance for loan losses at an appropriate level based on our assessment of estimable and probable losses in the loan portfolio. Our evaluation is based on a review of the portfolio and requires significant, complex and difficult judgments. For the three months endedJune 30, 2017 and 2016, we recorded a provision for loan losses of $1.8 million and $1.3 million, respectively, and for the six months endedJune 30, 2017 and 2016, we recorded a provision for loan losses of $4.0 million and $2.0 million, respectively. During the second quarter of 2017, the provision increased compared with the second quarter of 2016 due to higher net charge offs. For the six months ended June 30, 2017, the increase compared to the same period in 2016 was also due to higher net charge offs, with the first quarter of 2016 benefiting from significant collection activity reflected in lower net charge offs during that period.

Our allowance for loan losses is based on the inherent risk of our loans and various other factors including but not limited to, collateral values, trends in asset quality, level of delinquent loans and concentrations. In addition, regional economic conditions are taken into consideration. See Note 6 to the Consolidated Financial Statements for additional information.

The allowance for loan losses was $40.0 million at June 30, 2017 and $39.8 million at December 31, 2016. The allowance for loan losses and provision reflects the addition of reserves related to an increase of $135.3 million in total net loans at June 30, 2017 when compared to December 31, 2016 as well as loan downgrades, offset by payoff activity and improvement in qualitative adjustment factors due to continued improvement of economic conditions and continued favorable credit quality metrics. The ratio of allowance for loan losses to total gross loans was 0.87% at June 30, 2017 and 0.89% at December 31, 2016. This ratio excluding the impact of all purchased loans would have been 1.02% at June 30, 2017 and 1.08% at December 31, 2016 .

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The table below represents a summary of changes in the allowance for loan losses for the six months endedJune 30, 2017 and 2016, respectively.

	Six Months Ended June 30,
(Dollars in thousands)	2017			2016
Beginning balance	$	39,751		$	37,089
Provision for loan losses	4,005			2,034
Charge-offs:
Commercial	2,184			906
Owner-occupied commercial	192			141
Commercial real estate	506			78
Construction	131			29
Residential real estate	53			29
Consumer	1,645			1,129
Overdrafts	386			320
Total charge-offs	5,097			2,632
Recoveries:
Commercial	403			334
Owner-occupied commercial	108			51
Commercial real estate	53			113
Construction	4			46
Residential real estate	130			79
Consumer	500			472
Overdrafts	148			160
Total recoveries	1,346			1,255
Net charge-offs	3,751			1,377
Ending balance	$	40,005		$	37,746
Net charge-offs to average gross loans outstanding, net of unearned income (1)	0.17		%	0.07		%
(1) Annualized, excludes loans held for sale and reverse mortgages

Noninterest (Fee) Income

During the second quarter of 2017, the Company earned fee income of $31.7 million, an increase of $6.2 million, or 24%, compared to $25.5 million in the second quarter of 2016. This increase is primarily due to a $2.6 million increase in investment management and fiduciary income due to growth in several business lines and an increase of $1.7 million in credit/debit card and ATM income reflecting growth due to expanded revenue sources representing from continued growth in our Wealth Management and Cash Connect® businesses. Current quarter results also include a $0.8 million gain on the sale of Small Business Administration (SBA) loans.

For the six months endedJune 30, 2017, the Company earned fee income of $59.8 million, an increase of $10.6 million, or 22% , compared to $49.2 million in the second quarter of 2016. This increase is primarily due to an increase of $5.3 million in investment management and fiduciary income due to growth in several of our Wealth business lines and an increase of $2.9 million in credit/debit card and ATM income reflecting growth due to expanded revenue sources in our Cash Connect^® business. The other income category increased by $2.1 million which consisted of a $1.0 million increase from Cash Connect^® driven by business growth and a $0.9 million gain on the sale of SBA loans.

Noninterest Expense

Noninterest expense for the second quarter of 2017 was $52.7 million, an increase of $8.0 million, or 18%, from $44.7 million inthe second quarter of 2016. Contributing to the quarter year-over-year increase was $4.2 million of ongoing operating costs

from our late 2016 combinations with Penn Liberty, Powdermill, and West Capital. The remaining increase primarily reflects higher compensation and related costs due to added staff to support overall franchise growth.

59

For the six months ended June 30, 2017, noninterest expense was $104.2 million, an increase of $15.8 million, or 18% from $88.5 million at June 30, 2016. The increase was primarily due to $9.0 million in ongoing operating costs from our late 2016 combinations with Penn Liberty, Powdermill, and West Capital. The remaining increase primarily reflects higher compensation and related costs due to added staff to support overall franchise growth.

Income Taxes

We and our subsidiaries file a consolidated federal income tax return and separate state income tax returns. Income taxes are accounted for in accordance with ASC 740, which requires the recording of deferred income taxes for tax consequences of temporary differences. We recorded an income tax expense of $10.9 million and $19.4 million during the three and six months endedJune 30, 2017, respectively, compared to an income tax expense of $8.5 million and $17.2 million for the same periods in 2016.

Our effective tax rate was 34.5% and 33.0% for the three and six months endedJune 30, 2017 compared to 32.7% and 34.1% during the same periods in 2016. The effective tax rate for the six months endedJune 30, 2017 decreased due to the tax benefit related to stock-based compensation activity during the year, due to both the adoption of ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, Compensation – Stock Compensation (Topic 718) during the second quarter of 2016, as well as higher tax benefits realized on stock-based compensation activity during the six months endedJune 30, 2017, due to greater transaction volume and increases in the Company’s stock price. The tax benefits recognized during the three and six months endedJune 30, 2017 were $0.4 million and $1.7 million, respectively, compared to tax benefits of $0.7 million for the three and six months endedJune 30, 2016.

The effective tax rate reflects the recognition of certain tax benefits in the financial statements including those benefits from tax-exempt interest income, federal low-income housing tax credits, excess tax benefits from recognized stock compensation, and BOLI income. These tax benefits are offset by the tax effect of stock-based compensation expense related to incentive stock options, nondeductible acquisition costs and a provision for state income tax expense.

We frequently analyze our projections of taxable income and make adjustments to our provision for income taxes accordingly.

Contractual Obligations

Our contractual obligations at June 30, 2017 did not significantly change from our contractual obligations at December 31, 2016 , which are disclosed in our 2016 Annual Report on Form 10-K, and March 31, 2017, which are disclosed in our March 31, 2017 Quarterly Report on Form 10-Q.

RECONCILIATION OF NON-GAAP MEASURE TO GAAP MEASURE

The following table provides a reconciliation of tangible common book value per share of common stock to book value per share of common stock, the most directly comparable GAAP financial measure. We believe this measure helps management and investors better understand and assess changes from period to period in stockholders’ equity exclusive of changes in intangible assets.

(Dollars and share amounts in thousands, except per share amounts)	June 30, 2017		December 31, 2016
Stockholders’ equity	$	722,623	$	687,336
Less: Goodwill and other intangible assets	189,983		191,247
Tangible common equity (numerator)	$	532,640	$	496,089
Shares of common stock outstanding (denominator)	31,435		31,390
Book value per share of common stock	$	22.99	$	21.90
Goodwill and other intangible assets	6.05		6.10
Tangible book value per share of common stock	$	16.94	$	15.80

60

CRITICAL ACCOUNTING ESTIMATES

The preparation of the unaudited Consolidated Financial Statements in accordance with U.S. GAAP requires us to make estimates and assumptions affecting the reported amounts of assets, liabilities, revenue and expenses. We regularly evaluate these estimates and assumptions including those used to determine the allowance for loan losses, deferred taxes, fair value measurements, goodwill and other intangible assets. We base our estimates on historical experience and various other factors and assumptions that are believed to be reasonable under the circumstances. These form the basis for making judgments on the carrying value of assets and liabilities that are not readily apparent from other sources. Although our current estimates contemplate current economic conditions and how we expect them to change in the future, for the remainder of 2017, it is possible that actual conditions may be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Actual results may differ from these estimates under different assumptions or conditions.

For further discussion of our critical accounting estimates, see the "Management's Discussion and Analysis - Critical Accounting Estimates" section of our Annual Report on Form 10-K for the year ended December 31, 2016.

RECENT LEGISLATION

General

As a federally chartered savings institution the Bank is subject to regulation by the FHFA, an independent agency in the executive branch of the U.S. government, the FDIC, the Board of Governors of the Federal Reserve System (Federal Reserve) and the Office of the Comptroller of the Currency (OCC), collectively referred to as the Federal banking agencies. The lending activities and other investments of the Bank must comply with various federal regulatory requirements. The OCC periodically examines the Bank for compliance with regulatory requirements. The FDIC also has the authority to conduct special examinations of the Bank. The Bank is required to file periodic reports with the OCC describing its activities and financial condition. The Bank is also subject to certain reserve requirements promulgated by the FHFA and the Federal Reserve.

Basel III

In 2013, the Federal banking agencies approved the final rules implementing the Basel Committee on Banking Supervision (BCBS) capital guidelines for U.S. banking organizations. Under the final rules as of January 2015, minimum requirements increased for both the quantity and quality of capital maintained by the Company and the Bank. The rules included a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%%, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% , required a minimum ratio of total capital to risk-weighted assets of 10.0%, and required a minimum Tier 1 leverage ratio of 4.0%. The final rule also established a new capital conservation buffer, comprised of common equity Tier 1 capital, above the regulatory minimum capital requirements. The phase-in of the capital conservation buffer began on January 1, 2016 at 0.625% of risk-weighted assets and will increase each subsequent year by an additional 0.625%% until reaching its final level of 2.50% on January 1, 2019. For 2017, the capital conservation buffer is 1.25%. The final rules also revised the standards for an insured depository institution to be “well-capitalized” under the banking agencies’ prompt corrective action framework, requiring a common equity Tier 1 capital ratio of 6.5%, Tier 1 capital ratio of 8.0% and total capital ratio of 10.0%, while leaving unchanged the existing 5.0% leverage ratio requirement. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. Newly issued trust preferred securities and cumulative perpetual preferred stock may no longer be included in Tier 1 capital. However, for depository institution holding companies of less than $15 billion in total consolidated assets, such as the Company, most outstanding trust preferred securities and other non-qualifying securities issued prior to May 19, 2010 are permanently grandfathered to be included in Tier 1 capital (up to a limit of 25% of Tier 1 capital, excluding non-qualifying capital instruments). As of June 30, 2017, we had approximately $67.0 million of trust preferred securities outstanding, all of which are counted as Tier 1 capital.

The phase-in period for the final rules began for us on January 1, 2015. Full compliance with all of the final rule’s requirements phased in over a multi-year schedule is required by January 1, 2019. As of June 30, 2017, the Company and the Bank met the applicable standards, and the Bank was “well-capitalized” under the prompt corrective action rules.

In 2014, the Federal banking agencies adopted a “liquidity coverage ratio” requirement (LCR) for large internationally active banking organizations, and in 2016, the agencies proposed a “net stable funding ratio” standard (NSFR) for the same group of institutions. The LCR measures an organizations’ ability to meet liquidity demands over a 30-day horizon; the NSFR would test the same capacity over a one-year horizon. Neither requirement applies directly to the Company or the Bank, but the policies embedded in them may inform the work of the examiners as they consider our liquidity.

61

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

Incorporated herein by reference from Item 2 Part I (Interest Rate Sensitivity) of this Quarterly Report on Form 10-Q.

Item 4.     Controls and Procedures

(a) Evaluation of disclosure controls and procedures. Based on their evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) under the Exchange Act), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q such disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

(b) Changes in internal control over financial reporting. During the quarter ended June 30, 2017, there was no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

62

Part II. OTHER INFORMATION

Item 1.    Legal Proceedings

Incorporated herein by reference to Note 16 – Legal and Other Proceedings to the Consolidated Financial Statements

Item 1A.    Risk Factors

There have not been any material changes to the risk factors previously disclosed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, previously filed with the SEC.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

The following table represents information with respect to repurchases of common stock made by the Company during the three months endedJune 30, 2017.

2017	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
April	19,000	$	46.22	19,000	873,194
May	28,000	45.07		28,000	845,194
June	24,000	44.48		24,000	821,194
Total	71,000	$	45.18	71,000

⁽¹⁾  During the fourth quarter of 2015, the Board of Directors approved a stock buyback program of up to 5% of then-outstanding shares of common stock. Under the program, purchases may be made from time to time in the open market or through negotiated transactions, subject to market conditions and other factors, and in accordance with applicable securities laws. There is no fixed termination date for the repurchase program, and the repurchase program may be suspended or discontinued at any time.

63

Item 3.    Defaults upon Senior Securities

Not applicable

Item 4.    Mine Safety Disclosures

Not applicable

Item 5.    Other Information

Not applicable

Item 6. Exhibits

(a) Exhibit 31.1 – Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(b) Exhibit 31.2 – Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

(c) Exhibit 32 – Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(d) Exhibit 101.INS – XBRL Instance Document

(e) Exhibit 101.SCH – XBRL Schema Document

(f) Exhibit 101.CAL – XBRL Calculation Linkbase Document

(g) Exhibit 101.LAB – XBRL Labels Linkbase Document

(h) Exhibit 101.PRE – XBRL Presentation Linkbase Document

(i) Exhibit 101.DEF – XBRL Definition Linkbase Document

64

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	WSFS FINANCIAL CORPORATION
Date: August 8, 2017	/s/ Mark A. Turner
	Mark A. Turner
	President and Chief Executive Officer
	(Principal Executive Officer)
Date: August 8, 2017	/s/ Dominic C. Canuso
	Dominic C. Canuso
	Executive Vice President and
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

65

EX-31.1

Exhibit 31.1

I, Mark A. Turner, certify that:

1. I have reviewed this quarterly report on Form 10-Q of WSFS Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15-(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 8, 2017	/s/ Mark A. Turner
		Mark A. Turner
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

I, Dominic C. Canuso, certify that:

1. I have reviewed this quarterly report on Form 10-Q of WSFS Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15-(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 8, 2017	/s/ Dominic C. Canuso
		Dominic C. Canuso
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of WSFS Financial Corporation (the Company) for the quarter ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the Report), we, Mark A. Turner, President and Chief Executive Officer, and Dominic C. Canuso, Executive Vice President and Chief Financial Officer (Principal Accounting Officer), hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Mark A. Turner	/s/ Dominic C. Canuso
Mark A. Turner	Dominic C. Canuso
President and Chief Executive Officer	Executive Vice President and
(Principal Executive Officer)	Chief Financial Officer
	(Principal Financial and Accounting Officer)

Date: August 8, 2017

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 03, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Trading Symbol	WSFS
Entity Registrant Name	WSFS FINANCIAL CORP
Entity Central Index Key	0000828944
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		31,418,069

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest income:
Interest and fees on loans	$ 56,073	$ 45,983	$ 110,754	$ 90,545
Interest on mortgage-backed securities	4,782	3,910	9,177	7,804
Interest and dividends on investment securities:
Taxable	6	85	123	162
Tax-exempt	1,130	1,141	2,262	2,284
Other interest income	343	384	844	754
Total interest income	62,334	51,503	123,160	101,549
Interest expense:
Interest on deposits	3,341	2,204	6,416	4,322
Interest on senior debt	2,121	1,175	4,242	2,117
Interest on Federal Home Loan Bank advances	1,797	1,124	3,655	2,172
Interest on federal funds purchased and securities sold under agreements to repurchase	235	162	436	344
Interest on trust preferred borrowings	472	397	918	768
Interest on other borrowings	54	27	76	56
Total interest expense	8,020	5,089	15,743	9,779
Net interest income	54,314	46,414	107,417	91,770
Provision for loan losses	1,843	1,254	4,005	2,034
Net interest income after provision for loan losses	52,471	45,160	103,412	89,736
Noninterest income:
Credit/debit card and ATM income	8,925	7,253	17,056	14,154
Investment management and fiduciary income	8,835	6,282	16,874	11,536
Deposit service charges	4,560	4,342	8,957	8,618
Mortgage banking activities, net	1,844	1,816	3,029	3,470
Securities gains, net	708	545	1,028	850
Loan fee income	451	480	1,000	957
Bank owned life insurance income	302	211	578	442
Other income	6,051	4,578	11,246	9,149
Total non interest income	31,676	25,507	59,768	49,176
Noninterest expense:
Salaries, benefits and other compensation	28,223	23,509	57,059	46,385
Occupancy expense	4,684	3,955	9,846	8,225
Equipment expense	3,498	2,516	6,622	4,989
Professional fees	2,669	2,934	4,304	5,337
Data processing and operations expenses	1,750	1,522	3,368	3,064
Marketing expense	932	801	1,556	1,465
Loan workout and OREO expenses	499	45	1,020	548
FDIC expenses	594	773	1,123	1,611
Corporate development expense	366	549	704	1,118
Other operating expense	9,512	8,081	18,631	15,741
Total non interest expenses	52,727	44,685	104,233	88,483
Income before taxes	31,420	25,982	58,947	50,429
Income tax provision	10,850	8,504	19,440	17,181
Net income	$ 20,570	$ 17,478	$ 39,507	$ 33,248
Earnings per share:
Basic (in dollars per share)	$ 0.65	$ 0.59	$ 1.26	$ 1.12
Diluted (in dollars per share)	$ 0.64	$ 0.58	$ 1.22	$ 1.10

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Income	$ 20,570	$ 17,478	$ 39,507	$ 33,248
Net change in unrealized gains on investment securities available for sale
Net unrealized gains arising during the period, net of tax expense of $1,958, $2,870, $2,737 and $9,350, respectively	3,241	4,683	4,513	15,255
Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of $253, $207, $367 and $323, respectively	(455)	(338)	(661)	(527)
Net change in unrealized gains (losses) on investment securities available-for-sale	2,786	4,345	3,852	14,728
Net change in securities held to maturity
Amortization of unrealized gain on securities reclassified to held-to-maturity, net of tax expense of $62, $62, $121 and $127, respectively	(97)	(100)	(198)	(203)
Net change in unfunded pension liability
Change in unfunded pension liability related to unrealized (loss) gain, prior service cost and transition obligation, net of tax (benefit) expense of ($15), ($13), ($27) and $280, respectively	(22)	(22)	(45)	456
Net change in cash flow hedge
Net unrealized gain arising during the period, net of tax expense of $161, $0, $92 and $0, respectively	262	0	150	0
Total other comprehensive income	2,929	4,223	3,759	14,981
Total comprehensive income	$ 23,499	$ 21,701	$ 43,266	$ 48,229

XML

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net change in Unrealized (losses) gains, tax (benefit) expense	$ 1,958	$ 2,870	$ 2,737	$ 9,350
Reclassification adjustment for gains, tax expense	253	207	367	323
Amortization of unrealized gain on securities reclassified to held-to-maturity, tax expense	62	62	121	127
Change in unfunded pension liability related to unrealized (loss) gain, prior service cost and transition obligation, tax (benefit) expense	(15)	(13)	(27)	280
Net change in cash flow hedge, tax expense	$ 161	$ 0	$ 92	$ 0

XML

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets:
Cash and due from banks	$ 118,555	$ 119,929
Cash in non-owned ATMs	623,232	698,454
Interest-bearing deposits in other banks including collateral of $3,380 at June 30, 2017 and December 31, 2016	3,524	3,540
Total cash and cash equivalents	745,311	821,923
Investment securities, available for sale (amortized cost of $825,488 at June 30, 2017 and $807,761 at December 31, 2016)	818,495	794,543
Investment securities, held to maturity-at cost (fair value of $163,903 at June 30, 2017 and $163,232 at December 31, 2016)	162,598	164,346
Loans, held for sale at fair value	35,425	54,782
Loans, net of allowance for loan losses of $40,005 at June 30, 2017 and $39,751 at December 31, 2016	4,579,715	4,444,375
Bank owned life insurance	102,007	101,425
Stock in Federal Home Loan Bank of Pittsburgh-at cost	35,832	38,248
Other real estate owned	2,121	3,591
Accrued interest receivable	16,742	17,027
Premises and equipment	47,505	48,871
Goodwill	166,007	167,539
Intangible assets	23,976	23,708
Other assets	86,693	84,892
Total assets	6,822,427	6,765,270
Deposits:
Noninterest-bearing demand	1,319,749	1,266,306
Interest-bearing demand	927,465	935,333
Money market	1,297,024	1,257,520
Savings	572,476	547,293
Time	311,804	332,624
Jumbo certificates of deposit – customer	223,311	260,560
Total customer deposits	4,651,829	4,599,636
Brokered deposits	182,221	138,802
Total deposits	4,834,050	4,738,438
Federal funds purchased and securities sold under agreements to repurchase	65,000	130,000
Federal Home Loan Bank advances	823,651	854,236
Trust preferred borrowings	67,011	67,011
Senior debt	152,313	152,050
Other borrowed funds	54,779	64,150
Accrued interest payable	2,405	1,151
Other liabilities	100,595	70,898
Total liabilities	6,099,804	6,077,934
Stockholders’ Equity:
Common stock $0.01 par value, 65,000,000 shares authorized; issued 56,173,802 at June 30, 2017 and 55,995,219 at December 31, 2016	581	580
Capital in excess of par value	331,905	329,457
Accumulated other comprehensive loss	(3,858)	(7,617)
Retained earnings	662,186	627,078
Treasury stock at cost, 24,739,145 shares at June 30, 2017 and 24,605,145 shares at December 31, 2016	(268,191)	(262,162)
Total stockholders’ equity	722,623	687,336
Total liabilities and stockholders’ equity	$ 6,822,427	$ 6,765,270

XML

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Interest-bearing deposits in banks and other financial institutions, collateral	$ 3,380	$ 3,380
Available-for-sale securities, amortized cost basis	825,488	807,761
Held-to-maturity securities, fair value	163,903	163,232
Allowance for loan losses	$ 40,005	$ 39,751
Common stock, shares authorized (in shares)	65,000,000	65,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued (in shares)	56,173,802	55,995,219
Treasury stock, shares (in shares)	24,739,145	24,605,145

XML

Consolidated Statements of Changes in Stockholders Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock
Beginning Balance at Dec. 31, 2015	$ 580,471	$ 560	$ 256,435	$ 696	$ 570,630	$ (247,850)
Beginning Balance (in shares) at Dec. 31, 2015		55,945,245
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	33,248				33,248
Other comprehensive income	14,981			14,981
Cash dividend	(3,556)				(3,556)
Issuance of common stock including proceeds from exercise of common stock options	1,723	$ 2	1,721
Issuance of common stock including proceeds from exercise of common stock options (in shares)		145,276
Stock-based compensation expense	1,363		1,363
Repurchase of common stock	(11,034)					(11,034)
Ending Balance at Jun. 30, 2016	617,196	$ 562	259,519	15,677	600,322	(258,884)
Ending Balance (in shares) at Jun. 30, 2016		56,090,521
Beginning Balance at Mar. 31, 2016				11,454
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	17,478
Other comprehensive income	4,223
Ending Balance at Jun. 30, 2016	617,196	$ 562	259,519	15,677	600,322	(258,884)
Ending Balance (in shares) at Jun. 30, 2016		56,090,521
Beginning Balance at Dec. 31, 2016	687,336	$ 580	329,457	(7,617)	627,078	(262,162)
Beginning Balance (in shares) at Dec. 31, 2016		55,995,219
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	39,507				39,507
Other comprehensive income	3,759			3,759
Cash dividend	(4,399)				(4,399)
Issuance of common stock including proceeds from exercise of common stock options	885	$ 1	884
Issuance of common stock including proceeds from exercise of common stock options (in shares)		178,583
Stock-based compensation expense	1,564		1,564
Repurchase of common stock	(6,029)					(6,029)
Ending Balance at Jun. 30, 2017	722,623	$ 581	331,905	(3,858)	662,186	(268,191)
Ending Balance (in shares) at Jun. 30, 2017		56,173,802
Beginning Balance at Mar. 31, 2017				(6,787)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	20,570
Other comprehensive income	2,929
Ending Balance at Jun. 30, 2017	$ 722,623	$ 581	$ 331,905	$ (3,858)	$ 662,186	$ (268,191)
Ending Balance (in shares) at Jun. 30, 2017		56,173,802

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Consolidated Statements of Changes in Stockholders Equity (Unaudited) (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash dividend (in dollars per share)	$ 0.14	$ 0.12
Common Stock
Repurchase of common stock (in shares)	133,000	359,371

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities:
Net Income	$ 39,507	$ 33,248
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	4,005	2,034
Depreciation of premises and equipment, net	4,286	3,699
Amortization of fees and discounts, net	10,266	8,239
Amortization of intangible assets	1,639	1,015
Decrease (increase) in accrued interest receivable	285	(124)
Increase in other assets	(8,156)	(2,440)
Origination of loans held for sale	(181,851)	(152,484)
Proceeds from sales of loans held for sale	192,130	160,686
Gain on mortgage banking activities, net	(3,029)	(3,470)
Gain on sale of securities, net	(1,028)	(850)
Stock-based compensation expense	1,564	1,480
Increase in accrued interest payable	1,254	1,272
Decrease in other liabilities	(1,004)	(473)
Loss on sale of other real estate owned and valuation adjustments, net	131	162
Deferred income tax expense	2,808	3,821
Increase in value of bank owned life insurance	(582)	(1,283)
Increase in capitalized interest, net	(2,334)	(2,688)
Net cash provided by operating activities	59,891	51,844
Investing activities:
Purchases of investment securities held to maturity	0	(3,329)
Repayments, maturities and calls of investment securities held to maturity	780	1,810
Sale of investment securities available for sale	351,614	101,348
Purchases of investment securities available for sale	(481,978)	(159,684)
Repayments of investment securities available for sale	144,208	35,570
Net increase in loans	(135,856)	(74,579)
Redemptions of stock of Federal Home Loan Bank of Pittsburgh	(100,438)	(38,599)
Redemptions of stock of Federal Home Loan Bank of Pittsburgh	102,854	31,179
Sales of other real estate owned	4,105	2,657
Investment in premises and equipment	(4,490)	(3,870)
Sales of premises and equipment	1,585	0
Net cash used for investing activities	(117,616)	(107,497)
Financing activities:
Net increase in demand and saving deposits	101,267	17,446
Decrease in time deposits	(58,069)	(46,594)
Increase in brokered deposits	43,419	2,396
Decrease in loan payable	(376)	(386)
Receipts from FHLB advances	72,320,785	57,591,203
Repayments of FHLB advances	(72,351,370)	(57,373,950)
Receipts from federal funds purchased and securities sold under agreement to repurchase	12,312,000	16,434,870
Repayments of federal funds purchased and securities sold under agreement to repurchase	(12,377,000)	(16,512,070)
Dividends paid	(4,399)	(3,556)
Issuance of common stock and exercise of common stock options	885	1,723
Issuance of senior debt	0	98,319
Purchase of treasury stock	(6,029)	(11,034)
Net cash (used) provided by financing activities	(18,887)	198,367
(Decrease) increase in cash and cash equivalents	(76,612)	142,714
Cash and cash equivalents at beginning of period	821,923	561,179
Cash and cash equivalents at end of period	745,311	703,893
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest during the period	14,490	8,507
Cash paid for income taxes, net	10,352	12,493
Loans transferred to other real estate owned	2,766	674
Loans transferred to portfolio from held-for-sale at fair value	11,015	3,670
Net change in accumulated other comprehensive income	3,759	14,981
Non-cash goodwill adjustments, net	$ (1,532)	$ (360)

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Basis of Presentation

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

General

Our unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (the Company, our Company, we, our or us), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital) and Cypress Capital Management, LLC (Cypress). We also have one unconsolidated subsidiary, WSFS Capital Trust III (the Capital Trust). WSFS Bank has three wholly-owned subsidiaries: WSFS Wealth Investments, 1832 Holdings, Inc. and Monarch Entity Services LLC (Monarch).

Overview

Founded in 1832, the Bank is one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). We provide residential and commercial real estate, commercial and consumer lending services, as well as retail deposit and cash management services. Lending activities are funded primarily with customer deposits and borrowings. In addition, we offer a variety of wealth management and trust services to personal and corporate customers. The Federal Deposit Insurance Corporation (FDIC) insures our customers’ deposits to their legal maximums. We serve our customers primarily from our 76 offices located in Delaware (45), Pennsylvania (29), Virginia (1) and Nevada (1) and through our website at www.wsfsbank.com. Information on our website is not incorporated by reference into this quarterly report.

In preparing the unaudited Consolidated Financial Statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for loan losses and reserves for lending related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, other-than-temporary impairment (OTTI), and the income tax valuation allowance. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of the allowance and lending related commitments as well as increased post-retirement benefits expense.

Our accounting and reporting policies conform to Generally Accepted Accounting Principles (GAAP) in the U.S., prevailing practices within the banking industry for interim financial information and Rule 10-01 of SEC Regulation S-X (Rule 10-01). Rule 10-01 does not require us to include all information and notes that would be required in audited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any future quarters or for the year ending December 31, 2017. These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2016 (the "2016 Annual Report on Form 10-K") that was filed with the SEC on March 1, 2017 and is available at www.sec.gov or on our website at http://investors.wsfsbank.com/financials.cfm. All significant intercompany transactions were eliminated in consolidation.

The significant accounting policies used in preparation of our Consolidated Financial Statements are disclosed in our 2016 Annual Report on Form 10-K. There have not been any material changes in our significant accounting policies from those disclosed in our 2016 Annual Report on Form 10-K.

Senior Debt

On June 13, 2016, the Company issued $100.0 million of senior unsecured fixed-to-floating rate notes (the senior debt). The senior unsecured notes mature on June 15, 2026 and have a fixed coupon rate of 4.50% from issuance until June 15, 2021 and a variable coupon rate of three month LIBOR plus 3.30% from June 15, 2021 until maturity. The senior unsecured notes may be redeemed beginning on June 15, 2021 at 100% of principal plus accrued and unpaid interest. The net proceeds from the issuance of the notes are being used for general corporate purposes.

In 2012, we issued $55.0 million in aggregate principal amount of 6.25% senior notes due 2019 (the 2012 senior debt). The 2012 senior debt is unsecured and ranks equally with all of our other present and future unsecured unsubordinated obligations. Both the senior debt and the 2012 senior debt are effectively subordinated to our secured indebtedness and structurally subordinated to the indebtedness of our subsidiaries. At our option, the 2012 senior debt is callable, in whole or in part, on September 1, 2017, or on any scheduled interest payment date thereafter, at a price equal to the outstanding principal amount to be redeemed plus accrued and unpaid interest. We expect to call the 2012 senior debt, which matures on September 1, 2019, during the third quarter of 2017.

Acquisitions in 2016

On August 12, 2016, we completed the acquisition of Penn Liberty Financial Corp. (Penn Liberty), a community bank headquartered in Wayne, Pennsylvania in order to build our market share, deepen our presence in the southeastern Pennsylvania market, and enhance our customer base. The results of Penn Liberty’s operations are included in our Consolidated Financial Statements since the date of the acquisition. See Note 2 – Business Combinations for further information.

During the third and fourth quarters of 2016, respectively, we acquired the assets of Powdermill Financial Solutions LLC, a multi-family office serving an affluent clientele in the local community and throughout the U.S., and West Capital Management, Inc., an independent, fee-only wealth management firm providing fully customized solutions tailored to the unique needs of institutions and high net worth individuals which operates under a multi-family office philosophy. These acquisitions align with our strategic plan to expand our wealth management offerings and to diversify our fee-income generating businesses.

Correction of Prior Period Balances

The Consolidated Statements of Income for the three and six months ended June 30, 2016 have been revised to correct an immaterial error in Noninterest income - Other income and Noninterest expense - Other operating expense related to revenue earned for cash servicing fees. As a result, the Consolidated Statements of Income have been revised to reflect these changes, as follows:

	Three months ended June 30, 2016						Six months ended June 30, 2016
Dollars in thousands	As originally reported		Adjustments		As revised		As originally reported		Adjustments		As revised
Noninterest income - Other income	$	3,920	$	658	$	4,578	$	7,892	$	1,257	$	9,149
Noninterest expense - Other operating expense	7,423		658		8,081		14,484		1,257		15,741

The above revisions had no effect on earnings per share or retained earnings. Periods not presented herein will be revised, as applicable, as they are included in future filings.

RECENT ACCOUNTING PRONOUNCEMENTS

Accounting Guidance Adopted in 2017

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-05: Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which amends Accounting Standards Codification (ASC) Topic 815: Derivatives and Hedging. This new guidance clarifies that the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, cause a hedge accounting relationship to be discontinued because it does not represent a termination of the original derivative instrument or a change in the critical terms of the hedge relationship. This new guidance is effective for annual reporting periods beginning after December 15, 2016 and may be adopted prospectively or retroactively. Early adoption is permitted, including adoption in an interim period. The Company adopted this accounting guidance during the quarter ended March 31, 2017 on a prospective basis with no impact to our Consolidated Financial Statements.

In March 2016, the FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments, Derivatives and Hedging (Topic 815). ASU 2016-06 clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. The standard is effective for public business entities in interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued, but would be retroactively applied to the beginning of the year that includes the interim period. The standard requires a modified retrospective transition approach, with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. For instruments that are eligible for the fair value option, an entity has a one-time option to irrevocably elect to measure the debt instrument affected by the standard in its entirety at fair value with changes in fair value recognized in earnings. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact on our Consolidated Statements of Income or Consolidated Statements of Financial Condition.

In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, Investments - Equity Method and Joint Ventures (Topic 323). ASU 2016-07 eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. The standard is effective for all entities in annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied prospectively to changes in ownership (or influence) after the adoption date. The Company adopted this accounting guidance during the quarter ended March 31, 2017 on a prospective basis with no impact to our Consolidated Financial Statements.

Accounting Guidance Pending Adoption at June 30, 2017

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU No. 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers using a five-step model that requires entities to exercise judgment when considering the terms of the contracts. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This amendment defers the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Gross versus Net), which amends the principal versus agent guidance and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In addition, the FASB issued ASU Nos. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers and 2016-12, Narrow-Scope Improvements and Practical Expedients, both of which provide additional clarification of certain provisions in Topic 606. These Accounting Standards Codification (“ASC”) updates are effective for public business entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or retrospectively with the cumulative effect transition method. For revenue streams determined to be within the scope of the standard, we are continuing to evaluate the related accounting policies, practices and reporting to identify and understand any impact the standard may have on the Company’s Consolidated Financial Statements. Our preliminary evaluation continues to suggest that adoption of this guidance is not expected to have a material effect on our Consolidated Financial Statements. The Company expects to complete its assessment in the second half of 2017 and will adopt the guidance on January 1, 2018.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This amendment requires that equity investments be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. For financial liabilities that are measured at fair value, the amendment requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument specific credit risk. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Entities may apply this guidance on a prospective or retrospective basis. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. Adoption using the modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company has begun the process of identifying our complete lease population as defined by the guidance. Our preliminary review of the guidance suggests that adoption will result in additional assets and liabilities on our Consolidated Balance Sheet. The Company expects to adopt the guidance on January 1, 2019.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is in the early stages of evaluating the impact of this guidance on its Consolidated Financial Statements. Our preliminary review of the guidance suggests that adoption may materially increase the allowance for loan losses. Management is in the process of creating a project team to lead the implementation of this guidance. The Company expects to adopt the guidance on January 1, 2020.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 represents the Emerging Issues Task Force’s (“the EITF”) final consensus on eight issues related to the classification of cash payments and receipts in the statement of cash flows for a number of common transactions. The consensus also clarifies when identifiable cash flows should be separated versus classified based on their predominant source or use. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 provides a new, two-step framework for determining whether a transaction is accounted for as an acquisition (or disposal) of assets or a business. The first step is evaluating whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the transaction is not considered a business. Also, in order to be considered a business, the transaction would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted for transactions that have not been reported in financial statements that have been issued or been made available for issuance. The Company does not expect the application of this guidance to have any impact on its Consolidated Financial Statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the measurement of goodwill impairment by removing the hypothetical purchase price allocation (“Step 2”). The new guidance requires an impairment of goodwill be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, up to the amount of goodwill recorded. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In February 2017, the FASB issued ASU No. 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 provides clarification of the scope of ASC 610-20. Specifically, the new guidance clarifies that ASC 610-20 applies to nonfinancial assets which do not meet the definition of a business or not-for-profit activity. Further, the new guidance clarifies that a financial asset is within the scope of ASC 610-20 if it meets the definition of an in-substance nonfinancial asset which is defined as a financial asset promised to a counterparty in a contract where substantially all of the assets promised are nonfinancial. Finally, the new guidance clarifies that each distinct nonfinancial asset and in-substance nonfinancial asset should be derecognized when the counterparty obtains control of it. The guidance is effective for public entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of adopting ASU 2017-05 on its Consolidated Financial Statements.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance requires that the service cost component of net periodic pension cost be disclosed with other compensation costs in the income statement. For all other cost components, an entity must either separately disclose the other cost components in separate line item(s) outside a subtotal of income from operations in the income statement or disclose the line item(s) used to present the other cost components in the income statement. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. The new guidance requires the amortization period for certain non-contingent callable debt securities held at a premium to end at the earliest call date of the debt security. If the call option is not exercised at the earliest call date, the guidance requires the debt security's effective yield to be reset based on the contractual payment terms of the debt security. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. Use of the modified retrospective method, with a cumulative-effect adjustment to retained earnings, is required. In the period of adoption, a change in accounting principle disclosure is required. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting. The new guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the award’s fair value, vesting conditions and classification remain the same immediately before and after the change, modification accounting is not applied. Additionally, the guidance does not require valuation before or after the change if the change does not affect any of the inputs to the model used to value the award. The guidance is effective for all entities in annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The new guidance will be applied on a prospective basis to awards modified on or after the adoption date. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

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Business Combinations

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Business Combinations

BUSINESS COMBINATIONS

Penn Liberty Financial Corporation

On August 12, 2016, we completed the acquisition of Penn Liberty. The acquisition of Penn Liberty was accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration transferred were recorded at their estimated fair values as of the acquisition date. The fair values are preliminary estimates and are subject to adjustment during the one-year measurement period after the acquisition.

In connection with the merger, the consideration transferred and the fair value of identifiable assets acquired and liabilities assumed, including remeasurement adjustments subsequent to the date of acquisition, are summarized in the following table:

(Dollars in thousands)	Fair Value
Consideration Transferred:
Common shares issued (1,806,748)	$	68,352
Cash paid to Penn Liberty stock and option holders	40,549
Value of consideration	108,901
Assets acquired:
Cash and due from banks	102,301
Investment securities	627
Loans	483,203
Premises and equipment	6,817
Deferred income taxes	6,542
Bank owned life insurance	8,666
Core deposit intangible	2,882
Other real estate owned	996
Other assets	12,085
Total assets	624,119
Liabilities assumed:
Deposits	568,706
Other borrowings	10,000
Other liabilities	3,738
Total liabilities	582,444
Net assets acquired:	41,675
Goodwill resulting from acquisition of Penn Liberty	$	67,226

The following table details the change to goodwill recorded subsequent to acquisition:

(Dollars in thousands)	Fair Value
Goodwill resulting from the acquisition of Penn Liberty reported as of December 31, 2016	$	68,814
Effects of adjustments to:
Deferred income taxes	880
Loans	279
Other assets	(1,440		)
Other liabilities	(1,307		)
Adjusted goodwill resulting from the acquisition of Penn Liberty as of June 30, 2017	$	67,226

In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates.

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Earnings Per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The following table shows the computation of basic and diluted earnings per share:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars and Shares in thousands, except per share data)	2017		2016		2017		2016
Numerator:
Net income	$	20,570	$	17,478	$	39,507	$	33,248
Denominator:
Weighted average basic shares	31,443		29,545		31,425		29,608
Dilutive potential common shares	869		606		899		582
Weighted average fully diluted shares	32,312		30,151		32,324		30,190
Earnings per share:
Basic	$	0.65	$	0.59	$	1.26	$	1.12
Diluted	$	0.64	$	0.58	$	1.22	$	1.10
Outstanding common stock equivalents having no dilutive effect	—		5		10		20

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Investment Securities

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

The following tables detail the amortized cost and the estimated fair value of our available-for-sale and held-to-maturity investment securities. None of our investment securities are classified as trading.

(Dollars in thousands)	Amortized Cost		Gross Unrealized  Gain		Gross Unrealized  Loss		Fair Value
Available-for-Sale Securities:
June 30, 2017
GSE	$	2,993	$	—	$	—	$	2,993
CMO	316,395		1,152		2,708		314,839
FNMA MBS	400,598		1,135		5,773		395,960
FHLMC MBS	77,815		168		839		77,144
GNMA MBS	27,050		294		405		26,939
Other investments	637		—		17		620
	$	825,488	$	2,749	$	9,742	$	818,495
December 31, 2016
GSE	$	35,061	$	9	$	60	$	35,010
CMO	264,607		566		3,957		261,216
FNMA MBS	414,218		950		9,404		405,764
FHLMC MBS	64,709		135		1,330		63,514
GNMA MBS	28,540		303		427		28,416
Other investments	626		—		3		623
	$	807,761	$	1,963	$	15,181	$	794,543

(Dollars in thousands)	Amortized Cost		Gross Unrealized  Gain		Gross Unrealized  Loss		Fair Value
Held-to-Maturity Securities(1)
June 30, 2017
State and political subdivisions	$	162,598	$	1,525	$	220	$	163,903
December 31, 2016
State and political subdivisions	$	164,346	$	271	$	1,385	$	163,232

⁽¹⁾  Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $1.9 million and $2.2 million at June 30, 2017 and December 31, 2016, respectively, related to securities transferred, which are offset in Accumulated Other Comprehensive Income, net of tax.

The scheduled maturities of investment securities available for sale and held to maturity at June 30, 2017 and December 31, 2016 are presented in the table below:

	Available for Sale (1) (2)
	Amortized		Fair
(Dollars in thousands)	Cost		Value
June 30, 2017
Within one year	$	2,993	$	2,993
After one year but within five years	10,043		10,062
After five years but within ten years	195,075		191,104
After ten years	616,740		613,716
	$	824,851	$	817,875
December 31, 2016
Within one year	$	16,009	$	16,017
After one year but within five years	19,052		18,992
After five years but within ten years	276,635		270,300
After ten years	495,439		488,611
	$	807,135	$	793,920
	Held to Maturity (2)
	Amortized		Fair
(Dollars in thousands)	Cost		Value
June 30, 2017
Within one year	$	—	$	—
After one year but within five years	5,906		5,949
After five years but within ten years	13,142		13,276
After ten years	143,550		144,678
	$	162,598	$	163,903
December 31, 2016
Within one year	$	—	$	—
After one year but within five years	6,168		6,162
After five years but within ten years	8,882		8,870
After ten years	149,296		148,200
	$	164,346	$	163,232

 ⁽¹⁾ Included in the investment portfolio, but not in the table above, is a mutual fund with an amortized cost and fair value of $0.6 million and $0.6 million as of June 30, 2017 and December 31, 2016 which has no stated maturity.

⁽²⁾  Actual maturities could differ.

Mortgage-backed securities (MBS) have expected maturities that differ from their contractual maturities. These differences arise because borrowers have the right to call or prepay obligations with or without a prepayment penalty.

Investment securities with fair market values aggregating $571.6 million and $562.5 million were pledged as collateral for retail customer repurchase agreements, municipal deposits, and other obligations as of June 30, 2017 and December 31, 2016, respectively.

During the six months ended June 30, 2017, we sold $351.6 million of investment securities categorized as available for sale, resulting in realized gains of $1.1 million and realized losses of less than $0.1 million. During the six months ended June 30, 2016, we sold $101.3 million of investment securities categorized as available for sale, resulting in realized gains of $0.9 million and no realized losses. The cost basis of all investment securities sales is based on the specific identification method.

As of June 30, 2017 and December 31, 2016, our investment securities portfolio had remaining unamortized premiums of $15.5 million and $18.0 million, respectively, and unaccreted discounts of $0.8 million and $0.4 million, respectively.

For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at June 30, 2017.

	Duration of Unrealized Loss Position
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Available-for-sale securities:
CMO	$	174,552	$	2,654	$	4,143	$	54	$	178,695	$	2,708
FNMA MBS	255,044		5,773		—		—		255,044		5,773
FHLMC MBS	45,583		839		—		—		45,583		839
GNMA MBS	12,097		313		3,733		92		15,830		405
Other investments	620		17		—		—		620		17
Total temporarily impaired investments	$	487,896	$	9,596	$	7,876	$	146	$	495,772	$	9,742
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Held-to-maturity securities:
State and political subdivisions	$	32,927	$	193	$	1,969	$	27	$	34,896	$	220
Total temporarily impaired investments	$	32,927	$	193	$	1,969	$	27	$	34,896	$	220

For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at December 31, 2016.

	Duration of Unrealized Loss Position
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Available-for-sale securities:
GSE	$	21,996	$	60	$	—	$	—	$	21,996	$	60
CMO	160,572		3,867		4,654		90		165,226		3,957
FNMA MBS	50,878		1,330		—		—		50,878		1,330
FHLMC MBS	300,403		9,404		—		—		300,403		9,404
GNMA MBS	16,480		427		—		—		16,480		427
Other investments	623		3		—		—		623		3
Total temporarily impaired investments	$	550,952	$	15,091	$	4,654	$	90	$	555,606	$	15,181
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Held-to-maturity securities:
State and political subdivisions	$	112,642	$	1,374	$	695	$	11	$	113,337	$	1,385
Total temporarily impaired investments	$	112,642	$	1,374	$	695	$	11	$	113,337	$	1,385

At June 30, 2017, we owned investment securities totaling $530.7 million for which the amortized cost basis exceeded fair value. Total unrealized losses on these securities were $10.0 million at June 30, 2017. The temporary impairment is the result of changes in market interest rates subsequent to the purchase of the securities. Our investment portfolio is reviewed each quarter for indications of OTTI. This review includes analyzing the length of time and the extent to which the fair value has been lower than the amortized cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and our intent and ability to hold the investment for a period of time sufficient to allow for full recovery of the unrealized loss. We evaluate our intent and ability to hold securities based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not have the intent to sell, nor is it more likely-than-not we will be required to sell these securities before we are able to recover the amortized cost basis.

All securities, with the exception of one having a fair value of $1.0 million at June 30, 2017, were AA-rated or better at the time of purchase and remained investment grade at June 30, 2017. All securities were evaluated for OTTI at June 30, 2017 and December 31, 2016. The result of this evaluation showed no OTTI as of June 30, 2017 or December 31, 2016. The estimated weighted average duration of MBS was 5.04 years at June 30, 2017.

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Loans

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Loans

LOANS

The following table shows our loan portfolio by category:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Commercial and industrial	$	1,323,664	$	1,287,731
Owner-occupied commercial	1,109,876		1,078,162
Commercial mortgages	1,147,006		1,163,554
Construction	279,806		222,712
Residential (1)	274,235		289,611
Consumer	492,817		450,029
	4,627,404		4,491,799
Less:
Deferred fees, net	7,684		7,673
Allowance for loan losses	40,005		39,751
Net loans	$	4,579,715	$	4,444,375

⁽¹⁾ Includes reverse mortgages, at fair value of $21.6 million at June 30, 2017 and $22.6 million at December 31, 2016.

The following table shows the outstanding principal balance and carrying amounts for acquired credit impaired loans for which the Company applies ASC 310-30 as of the dates indicated:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Outstanding principal balance	$	38,401	$	41,574
Carrying amount	30,560		33,104
Allowance for loan losses	588		510

The following table presents the changes in accretable yield on the acquired credit impaired loans for the six months endedJune 30, 2017:

(Dollars in thousands)	Six months ended June 30, 2017
Balance at beginning of period	$	5,150
Accretion	(1,575		)
Reclassification from nonaccretable difference	1,243
Additions/adjustments	(211		)
Disposals	(4		)
Balance at end of period	$	4,603

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Allowance for Loan Losses and Credit Quality Information

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Allowance for Loan Losses and Credit Quality Information

ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION

Allowance for Loan Losses

We maintain an allowance for loan losses which represents our best estimate of probable losses within our loan portfolio. As losses are realized, they are charged to this allowance. We established our allowance in accordance with guidance provided in the SEC’s Staff Accounting Bulletin 102 (SAB 102), Selected Loan Loss Allowance Methodology and Documentation Issues, Accounting Standard Codification ("ASC") Contingencies (ASC 450) and Receivables (ASC 310). When we have reason to believe it is probable that we will not be able to collect all contractually due amounts of principal and interest, loans are evaluated for impairment on an individual basis and a specific allocation of the allowance is assigned in accordance with ASC 310-10. We also maintain an allowance for loan losses on acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining credit discount recorded at the time of acquisition. The determination of the allowance for loan losses requires significant judgment reflecting our best estimate of impairment related to specifically identified impaired loans as well as probable loan losses in the remaining loan portfolio. Our evaluation is based on a continuing review of these portfolios. The following are included in our allowance for loan losses:

• Specific reserves for impaired loans

• An allowance for each pool of homogenous loans based on historical loss experience

• Adjustments for qualitative and environmental factors allocated to pools of homogenous loans

When it is probable that the Bank will be unable to collect all amounts due (interest and principal) in accordance with the contractual terms of the loan agreement, it assigns a specific reserve to that loan, if necessary. Unless loans are well-secured and collection is imminent, loans greater than 90 days past due are deemed impaired and their respective reserves are generally charged-off once the loss has been confirmed. Estimated specific reserves are based on collateral values, estimates of future cash flows or market valuations. We charge loans off when they are deemed to be uncollectible. During the six months endedJune 30, 2017 and 2016, net charge-offs totaled $3.8 million or 0.17% of average loans annualized, and $1.4 million, or 0.07% of average loans annualized, respectively.

Allowances for pooled homogeneous loans, that are not deemed impaired, are based on historical net loss experience. Estimated losses for pooled portfolios are determined differently for commercial loan pools and retail loan pools. Commercial loans are pooled as follows: commercial, owner-occupied commercial, commercial mortgages and construction. Each pool is further segmented by internally assessed risk ratings. Loan losses for commercial loans are estimated by determining the probability of default and expected loss severity upon default. Probability of default is calculated based on the historical rate of migration to impaired status during the last 26 quarters. During the six months ended June 30, 2017, we increased the look-back period to 26 quarters from the 24 quarters used at December 31, 2016. This increase in the look-back period allows us to continue to anchor to the fourth quarter of 2010 to ensure that the core reserves calculated by the ALLL model are adequately considering the losses within a full credit cycle.

Loss severity upon default is calculated as the actual loan losses (net of recoveries) on impaired loans in their respective pool during the same time frame. Retail loans are pooled into the following segments: residential mortgage, consumer secured and consumer unsecured loans. Pooled reserves for retail loans are calculated based solely on average net loss rates over the same 26 quarter look-back period.

Qualitative adjustment factors consider various current internal and external conditions which are allocated among loan types and take into consideration:

• Current underwriting policies, staff, and portfolio mix,

• Internal trends of delinquency, nonaccrual and criticized loans by segment,

• Risk rating accuracy, control and regulatory assessments/environment,

• General economic conditions - locally and nationally,

• Market trends impacting collateral values,

• The competitive environment, as it could impact loan structure and underwriting, and

• Valuation complexity by segment.

The above factors are based on their relative standing compared to the period in which historic losses are used in core reserve estimates and current directional trends. Qualitative factors in our model can add to or subtract from core reserves.

The allowance methodology uses a loss emergence period (LEP), which is the period of time between an event that triggers the probability of a loss and the confirmation of the loss. We estimate the commercial LEP to be approximately 9 quarters as of June 30, 2017. Our residential mortgage and consumer LEP remained at 4 quarters as of June 30, 2017. We evaluate LEP quarterly for reasonableness and complete a detailed historical analysis of our LEP annually for our commercial portfolio and review the current 4 quarter LEP for the retail portfolio to determine the continued reasonableness of this assumption.

In prior periods, we had a component of the allowance for model estimation and complexity risk reserve. During the second quarter of 2016 as a result of continued refinement of the model and normal review of the factors, we removed the model estimation and complexity risk reserve from our calculation of the allowance of loan losses.

Our loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review our loan ratings and allowance for loan losses and the Bank’s internal loan review department performs loan reviews.

The following tables provide the activity of our allowance for loan losses and loan balances for the three and six months endedJune 30, 2017:

(Dollars in thousands)	Commercial			Owner-occupied Commercial			Commercial Mortgages			Construction			Residential(1)			Consumer			Total
Three months ended June 30, 2017
Allowance for loan losses
Beginning balance	$	14,205		$	6,030		$	8,335		$	2,961		$	2,054		$	6,241		$	39,826
Charge-offs	(929		)	—			(402		)	(117		)	(42		)	(888		)	(2,378		)
Recoveries	319			33			7			2			10			343			714
Provision (credit)	520			(265		)	(853		)	471			17			1,453			1,343
Provision for acquired loans	109			18			248			115			11			(1		)	500
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Six months ended June 30, 2017
Allowance for loan losses
Beginning balance	$	13,339		$	6,588		$	8,915		$	2,838		$	2,059		$	6,012		$	39,751
Charge-offs	(2,184		)	(192		)	(506		)	(131		)	(53		)	(2,031		)	(5,097		)
Recoveries	403			108			53			4			130			648			1,346
Provision (credit)	2,469			(706		)	(1,371		)	629			(97		)	2,533			3,457
Provision for acquired loans	197			18			244			92			11			(14		)	548
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1,342		$	—		$	1,464		$	772		$	869		$	195		$	4,642
Loans collectively evaluated for impairment	12,587			5,783			5,714			2,595			1,147			6,949			34,775
Acquired loans evaluated for impairment	295			33			157			65			34			4			588
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Period-end loan balances evaluated for:
Loans individually evaluated for impairment (2)	$	14,845		$	3,432		$	10,941		$	4,808		$	14,023		$	8,396		$	56,445
Loans collectively evaluated for impairment	1,171,831			945,919			921,069			252,637			157,653			439,273			3,888,382
Acquired nonimpaired loans	130,986			148,686			204,809			20,340			80,074			44,902			629,797
Acquired impaired loans	6,002			11,839			10,187			2,021			852			246			31,147
Ending balance (3)	$	1,323,664		$	1,109,876		$	1,147,006		$	279,806		$	252,602		$	492,817		$	4,605,771

⁽¹⁾  Period-end loan balance excludes reverse mortgages, at fair value of $21.6 million.

⁽²⁾  The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $18.1 million for the period ending June 30, 2017. Accruing troubled debt restructured loans are considered impaired loans.

⁽³⁾  Ending loan balances do not include net deferred fees.

The following table provides the activity of the allowance for loan losses and loan balances for the six months ended June 30, 2016:

(Dollars in thousands)	Commercial			Owner - occupied Commercial			Commercial Mortgages			Construction			Residential(1)			Consumer			Complexity Risk(2)			Total
Three months ended June 30, 2016
Allowance for loan losses
Beginning balance	$	11,482		$	6,702		$	6,516		$	3,609		$	2,269		$	5,954		$	1,024		$	37,556
Charge-offs	(727		)	(141		)	(61		)	(3		)	(15		)	(818		)	—			(1,765		)
Recoveries	224			13			34			—			57			373			—			701
Provision (credit)	353			133			1,598			(352		)	22			317			(1,024		)	1,047
Provision for acquired loans	70			16			48			54			19			—			—			207
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Six months ended June 30, 2016
Allowance for loan losses
Beginning balance	$	11,156		$	6,670		$	6,487		$	3,521		$	2,281		$	5,964		$	1,010		$	37,089
Charge-offs	(906		)	(141		)	(78		)	(29		)	(29		)	(1,449		)	—			(2,632		)
Recoveries	334			51			113			46			79			632			—			1,255
Provision (credit)	837			127			1,561			(280		)	2			717			(1,010		)	1,954
Provision for acquired loans	(19		)	16			52			50			19			(38		)				80
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	426		$	—		$	—		$	211		$	992		$	205		$	—		$	1,834
Loans collectively evaluated for impairment	10,923			6,686			8,009			3,038			1,340			5,621			—			35,617
Acquired loans evaluated for impairment	53			37			126			59			20			—			—			295
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Period-end loan balances:
Loans individually evaluated for impairment (3)	$	2,558		$	838		$	1,702		$	1,419		$	14,416		$	7,965		$	—		$	28,898
Loans collectively evaluated for impairment	1,045,918			857,270			869,771			181,440			153,811			352,675			—			3,460,885
Acquired nonimpaired loans	58,423			70,465			108,212			12,086			67,484			13,990			—			330,660
Acquired impaired loans	1,711			9,757			10,560			4,094			946			4			—			27,072
Ending balance (4)	$	1,108,610		$	938,330		$	990,245		$	199,039		$	236,657		$	374,634		$	—		$	3,847,515

⁽¹⁾  Period-end loan balance excludes reverse mortgages, at fair value of $25.3 million.

⁽²⁾  Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology.

⁽³⁾  The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.1 million for the period ending June 30, 2016. Accruing troubled debt restructured loans are considered impaired loans.

⁽⁴⁾  Ending loan balances do not include net deferred fees.

Nonaccrual and Past Due Loans

Nonaccruing loans are those on which the accrual of interest has ceased. Typically, we discontinue accrual of interest on originated loans after payments become more than 90 days past due or earlier if we do not expect the full collection of principal or interest in accordance with the terms of the loan agreement. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the accretion of net deferred loan fees and amortization of net deferred loan costs is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on our assessment of the ultimate collectability of principal and interest. Loans greater than 90 days past due and still accruing are defined as loans contractually past due 90 days or more as to principal or interest payments, but which remain in accrual status because they are considered well secured and are in the process of collection.

The following tables show our nonaccrual and past due loans at the dates indicated:

	June 30, 2017
(Dollars in thousands)	30–59 Days Past Due  and Still  Accruing			60–89 Days Past Due and Still  Accruing			Greater  Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	901		$	6		$	—		$	907		$	1,302,051		$	6,002		$	14,704		$	1,323,664
Owner-occupied commercial	—			—			—			—			1,094,605			11,839			3,432			1,109,876
Commercial mortgages	237			—			—			237			1,125,854			10,187			10,728			1,147,006
Construction	—			—			—			—			276,723			2,021			1,062			279,806
Residential(1)	2,411			348			—			2,759			244,031			852			4,960			252,602
Consumer	598			488			92			1,178			487,897			246			3,496			492,817
Total (2)	$	4,147		$	842		$	92		$	5,081		$	4,531,161		$	31,147		$	38,382		$	4,605,771
% of Total Loans	0.09		%	0.02		%	—		%	0.11		%	98.38		%	0.68		%	0.83		%	100		%

⁽¹⁾  Residential accruing current balances excludes reverse mortgages at fair value of $21.6 million.

⁽²⁾  The balances above include a total of $629.8 million of acquired nonimpaired loans.

	December 31, 2016
(Dollars in thousands)	30–59 Days Past Due  and Still  Accruing			60–89 Days Past Due  and Still  Accruing			Greater  Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	1,507		$	278		$	—		$	1,785		$	1,277,748		$	6,183		$	2,015		$	1,287,731
Owner-occupied commercial	116			540			—			656			1,063,306			12,122			2,078			1,078,162
Commercial mortgages	167			—			—			167			1,143,180			10,386			9,821			1,163,554
Construction	132			—			—			132			218,886			3,694			—			222,712
Residential(1)	3,176			638			153			3,967			257,234			860			4,967			267,028
Consumer	392			346			285			1,023			444,642			369			3,995			450,029
Total(2)	$	5,490		$	1,802		$	438		$	7,730		$	4,404,996		$	33,614		$	22,876		$	4,469,216
% of Total Loans	0.12		%	0.04		%	0.01		%	0.17		%	98.57		%	0.75		%	0.51		%	100		%

⁽¹⁾  Residential accruing current balances excludes reverse mortgages, at fair value of $22.6 million.

⁽²⁾  The balances above include a total of $724.1 million of acquired nonimpaired loans.

Impaired Loans

Loans for which it is probable we will not collect all principal and interest due according to their contractual terms, which is assessed based on the credit characteristics of the loan and/or payment status, are measured for impairment in accordance with the provisions of SAB 102 and FASB ASC 310, Receivables (ASC 310). The amount of impairment is required to be measured using one of three methods: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the fair value of collateral, if the loan is collateral dependent or (3) the loan’s observable market price. If the measure of the impaired loan is less than the recorded investment in the loan, a related allowance is allocated for the impairment.

The following tables provide an analysis of our impaired loans at June 30, 2017 and December 31, 2016:

	June 30, 2017
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve (1)		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	16,906	$	2,632	$	14,274	$	1,637	$	18,726	$	9,771
Owner-occupied commercial	8,232		3,432		4,800		33		8,662		5,346
Commercial mortgages	13,821		2,997		10,824		1,621		19,091		11,256
Construction	6,114		1,779		4,335		837		6,208		3,918
Residential	14,605		8,167		6,438		903		17,415		14,778
Consumer	8,436		7,234		1,202		199		11,300		8,319
Total (2)	$	68,114	$	26,241	$	41,873	$	5,230	$	81,402	$	53,388

⁽¹⁾  Reflects loan balances at or written down to their remaining book balance.

⁽²⁾  The above includes acquired impaired loans totaling $11.7 million in the ending loan balance and $12.9 million in the contractual principal balance of the total acquired impaired loan portfolio of $31.1 million

	December 31, 2016
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve (1)		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	4,250	$	1,395	$	2,855	$	505	$	5,572	$	5,053
Owner-occupied commercial	4,650		2,078		2,572		15		5,129		3,339
Commercial mortgages	15,065		4,348		10,717		1,433		20,716		7,323
Construction	3,662		—		3,662		303		3,972		2,376
Residential	14,256		7,122		7,134		934		17,298		15,083
Consumer	8,021		6,561		1,460		215		11,978		7,910
Total (2)	$	49,904	$	21,504	$	28,400	$	3,405	$	64,665	$	41,084

⁽¹⁾  Reflects loan balances at or written down to their remaining book balance.

⁽²⁾  The above includes acquired impaired loans totaling $12.8 million in the ending loan balance and $15.0 million in the contractual principal balance of the total acquired impaired loan portfolio of $33.6 million.

Interest income of $0.4 million and $0.7 million was recognized on impaired loans during the three and six months ended June 30, 2017, respectively. Interest income of $0.2 million and $0.3 million was recognized on impaired loans during the three and six months ended June 30, 2016, respectively.

As of June 30, 2017, there were 33 residential loans and 6 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $4.4 million and $1.7 million, respectively. As of December 31, 2016, there were 29 residential loans and 7 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $3.7 million and $3.6 million, respectively.

Reserves on Acquired Nonimpaired Loans

In accordance with FASB ASC 310, loans acquired by the Bank through its mergers with FNBW, Alliance and Penn Liberty are required to be reflected on the balance sheet at their fair values on the date of acquisition as opposed to their contractual values. Therefore, on the date of acquisition establishing an allowance for acquired loans is prohibited. After the acquisition date the Bank performs a separate allowance analysis on a quarterly basis to determine if an allowance for loan loss is necessary. Should the credit risk calculated exceed the purchased loan portfolio’s remaining credit mark, additional reserves will be added to the Bank’s allowance. When a purchased loan becomes impaired after its acquisition, it is evaluated as part of the Bank’s reserve analysis and a specific reserve is established to be included in the Bank’s allowance.

Credit Quality Indicators

Below is a description of each of our risk ratings for all commercial loans:

• Pass. These borrowers currently show no indication of deterioration or potential problems and their loans are considered fully collectible

• Special Mention. Borrowers have potential weaknesses that deserve management’s close attention. Borrowers in this category may be experiencing adverse operating trends, for example, declining revenues or margins, high leverage, tight liquidity, or increasing inventory without increasing sales. These adverse trends can have a potential negative effect on the borrower’s repayment capacity. These assets are not adversely classified and do not expose the Bank to significant risk that would warrant a more severe rating. Borrowers in this category may also be experiencing significant management problems, pending litigation, or other structural credit weaknesses.

• Substandard. Borrowers have well-defined weaknesses that require extensive oversight by management. Borrowers in this category may exhibit one or more of the following: inadequate debt service coverage, unprofitable operations, insufficient liquidity, high leverage, and weak or inadequate capitalization. Relationships in this category are not adequately protected by the sound financial worth and paying capacity of the obligor or the collateral pledged on the loan, if any. A distinct possibility exists that the Bank will sustain some loss if the deficiencies are not corrected.

• Doubtful. Borrowers have well-defined weaknesses inherent in the Substandard category with the added characteristic that the possibility of loss is extremely high. Current circumstances in the credit relationship make collection or liquidation in full highly questionable. A doubtful asset has some pending event that may strengthen the asset that defers the loss classification. Such impending events include: perfecting liens on additional collateral, obtaining collateral valuations, an acquisition or liquidation preceding, proposed merger, or refinancing plan.

• Loss. Borrowers are uncollectible or of such negligible value that continuance as a bankable asset is not supportable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical to defer writing off this asset even though partial recovery may be recognized sometime in the future.

Residential and Consumer Loans

The residential and consumer loan portfolios are monitored on an ongoing basis using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans that are greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss.

Commercial Credit Exposure

	June 30, 2017
(Dollars in thousands)	Commercial		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial(1)
									Amount		%
Risk Rating:
Special mention	$	18,225	$	6,983	$	8,900	$	—	$	34,108
Substandard:
Accrual	42,217		20,893		67		4,506		67,683
Nonaccrual	13,362		3,432		9,264		289		26,347
Doubtful	1,342		—		1,464		772		3,578
Total Special Mention and Substandard	75,146		31,308		19,695		5,567		131,716		3	%
Acquired impaired	6,002		11,839		10,187		2,021		30,049		1	%
Pass	1,242,516		1,066,729		1,117,124		272,218		3,698,587		96	%
Total	$	1,323,664	$	1,109,876	$	1,147,006	$	279,806	$	3,860,352	100	%

⁽¹⁾  Table includes $504.8 million of acquired nonimpaired loans as of June 30, 2017.

	December 31, 2016
(Dollars in thousands)	Commercial		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial(1)
									Amount		%
Risk Rating:
Special mention	$	17,630	$	11,419	$	34,198	$	—	$	63,247
Substandard:
Accrual	45,067		19,871		239		2,193		67,370
Nonaccrual	1,693		2,078		8,574		—		12,345
Doubtful	322		—		1,247		—		1,569
Total Special Mention and Substandard	64,712		33,368		44,258		2,193		144,531		4	%
Acquired impaired	6,183		12,122		10,386		3,694		32,385		1	%
Pass	1,216,836		1,032,672		1,108,910		216,825		3,575,243		95	%
Total	$	1,287,731	$	1,078,162	$	1,163,554	$	222,712	$	3,752,159	100	%

⁽¹⁾  Table includes $573.5 million of acquired nonimpaired loans as of December 31, 2016.

Residential and Consumer Credit Exposure

(Dollars in thousands)	Residential(2)				Consumer				Total Residential and Consumer(3)
	June 30,		December 31,		June 30,		December 31,		June 30, 2017				December 31, 2016
	2017		2016		2017		2016		Amount		Percent		Amount		Percent
Nonperforming(1)	$	14,023	$	13,547	$	8,396	$	7,863	$	22,419	3	%	$	21,410	3	%
Acquired impaired loans	852		860		246		369		1,098		—	%	1,229		—	%
Performing	237,727		252,621		484,175		441,797		721,902		97	%	694,418		97	%
Total	$	252,602	$	267,028	$	492,817	$	450,029	$	745,419	100	%	$	717,057	100	%

⁽¹⁾  Includes $14.0 million as of June 30, 2017 and $12.4 million as of December 31, 2016 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest.

⁽²⁾  Residential performing loans excludes $21.6 million and $22.6 million of reverse mortgages at fair value as of June 30, 2017 and December 31, 2016, respectively.

⁽³⁾  Total includes $125.0 million and $150.5 million in acquired nonimpaired loans as of June 30, 2017 and December 31, 2016, respectively.

Troubled Debt Restructurings (TDRs)

TDRs are recorded in accordance with FASB ASC 310-40, Troubled Debt Restructuring by Creditors (ASC 310-40). 

The following table presents the balance of TDRs as of the indicated dates:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Performing TDRs	$	18,109	$	14,336
Nonperforming TDRs	10,657		8,451
Total TDRs	$	28,766	$	22,787

Approximately $2.1 million and $1.3 million in related reserves have been established for these loans at June 30, 2017 and December 31, 2016, respectively.

The following table presents information regarding the types of loan modifications made for the six months endedJune 30, 2017:

	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other (1)	Total
Commercial	1	1	—	—	2
Owner-occupied commercial	—	1	—	—	1
Construction	—	2	—	1	3
Residential	—	—	1	—	1
Consumer	—	—	7	4	11
	1	4	8	5	18

⁽¹⁾  Other includes underwriting exceptions.

Principal balances are generally not forgiven when a loan is modified as a TDR. Nonaccruing restructured loans remain in nonaccrual status until there has been a period of sustained repayment performance, typically six months and payment is reasonably assured.

The following table presents loans identified as TDRs during the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended June 30,
	2017				2016
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	338	$	338	$	141	$	141
Owner-occupied commercial	—		—		—		—
Commercial mortgages	—		—		—		—
Construction	124		124		—		—
Residential	—		—		112		112
Consumer	674		674		240		240
Total	$	1,136	$	1,136	$	493	$	493

	Six Months Ended June 30,
	2017				2016
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	781	$	781	$	1,125	$	1,125
Owner-occupied commercial	3,071		3,071		—		—
Commercial mortgages	—		—		—		—
Construction	1,836		1,836		—		—
Residential	242		242		726		726
Consumer	1,258		1,258		455		455
Total	$	7,188	$	7,188	$	2,306	$	2,306

During the six months endedJune 30, 2017, the TDRs set forth in the table above increased our allowance for loan losses less than $0.3 million, and resulted in no additional charge-offs. For the same period of 2016, the TDRs set forth in the table above had no change on our allowance for loan losses allocation of the related reserve and resulted in charge-offs of less than $0.1 million. At June 30, 2017, two commercial mortgage loans TDRs defaulted that had received troubled debt modification during the past twelve months with a total loan amount of $0.6 million.

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Goodwill and Intangibles

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

GOODWILL AND INTANGIBLES

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

During the six months ended June 30, 2017, we determined there were no events or other indicators of impairment as it relates to goodwill or other intangibles.

The following table shows the changes in our goodwill during the quarter as well as the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing:

	WSFS			Cash		Wealth		Consolidated
(Dollars in thousands)	Bank			Connect		Management		Company
December 31, 2016	$	147,396		$	—	$	20,143	$	167,539
Remeasurement adjustments	(1,588		)	—		56		(1,532		)
June 30, 2017	$	145,808		$	—	$	20,199	$	166,007

ASC 350 also 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 tables summarize other intangible assets:

	June 30, 2017
(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets		Amortization Period
Core deposits	$	10,658	$	(3,720	)	$	6,938	10 years
Customer relationships	17,561		(3,413		)	14,148		7-15 years
Non-compete agreements	221		(35		)	186		5 years
Loan servicing rights	2,135		(1,103		)	1,032		10-30 years
Favorable lease asset	1,932		(260		)	1,672		10 months-18 years
Total intangible assets	$	32,507	$	(8,531	)	$	23,976

	December 31, 2016
(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets		Amortization Period
Core deposits	$	13,128	$	(5,630	)	$	7,498	10 years
Customer relationships	17,561		(2,612		)	14,949		7-15 years
Non-compete agreements	1,006		(728		)	278		6 months- 5 years
Loan servicing rights	1,708		(1,067		)	641		10-30 years
Favorable lease asset	458		(116		)	342		10 months-15 years
Total intangible assets	$	33,861	$	(10,153	)	$	23,708

Core deposits are amortized over their expected lives using the present value of the benefit of the core deposits and either accelerated or straight-line methods of amortization. During the six months ended June 30, 2017, we recognized amortization expense on other intangible assets of $1.6 million.

The following table shows the estimated future amortization expense related to our intangible assets:

(Dollars in thousands)	Amortization of Intangibles
Remaining in 2017	$	1,525
2018	2,986
2019	2,918
2020	2,722
2021	2,396
Thereafter	11,429
Total	$	23,976

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Associate Benefit Plans

6 Months Ended

Jun. 30, 2017

Postemployment Benefits [Abstract]

Associate Benefit Plans

ASSOCIATE BENEFIT PLANS

Postretirement Medical Benefits

We share certain costs of providing health and life insurance benefits to eligible retired Associates (employees) and their eligible dependents. Previously, all Associates were eligible for these benefits if they reached normal retirement age while working for us. Effective March 31, 2014, we changed the eligibility of this plan to include only those Associates who have achieved ten years of service with us as of March 31, 2014. As of December 31, 2014, we began to use the mortality table issued by the Office of the Actuary of the U.S. Bureau of Census in October 2014 in our calculation.

We account for our obligations under the provisions of FASB ASC 715, Compensation - Retirement Benefits (ASC 715). ASC 715 requires that we recognize the costs of these benefits over an Associate’s active working career. Amortization of unrecognized net gains or losses resulting from experience different from that assumed and from changes in assumptions is included as a component of net periodic benefit cost over the remaining service period of active employees to the extent that such gains and losses exceed 10% of the accumulated postretirement benefit obligation, as of the beginning of the year.

The following are disclosures of the net periodic benefit cost components of postretirement medical benefits measured at January 1, 2017 and 2016.

	Three months ended June 30,						Six months ended June 30,
(Dollars in thousands)	2017			2016			2017			2016
Service cost	$	14		$	14		$	29		$	29
Interest cost	19			19			38			38
Prior service cost amortization	(19		)	(19		)	(38		)	(26		)
Net gain recognition	(18		)	(16		)	(34		)	(31		)
Net periodic benefit cost	$	(4	)	$	(2	)	$	(5	)	$	10

Alliance Associate Pension Plan

During the fourth quarter of 2015, we completed the acquisition of Alliance and its wholly owned subsidiary, Alliance Bank, headquartered in Broomall, Pennsylvania. At the time of the acquisition we assumed the Alliance pension plan offered to its current associates.

The following table shows the net periodic benefit cost components for the Alliance Associate Pension Plan benefits measured at January 1, 2017.

(Dollars in thousands)	Three months ended June 30, 2017			Six months ended June 30, 2017
Service cost	$	10		$	20
Interest cost	75			150
Expected Return on Plan Assets	(135		)	(270		)
Prior service cost amortization	—			—
Net gain recognition	—			—
Net periodic benefit cost	$	(50	)	$	(100	)

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Income Taxes

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

We account for income taxes in accordance with FASB ASC 740, Income Taxes (ASC 740). ASC 740 requires the recording of deferred income taxes that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We exercise significant judgment in the evaluation of the amount and timing of the recognition of the resulting tax assets and liabilities. The judgments and estimates required for the evaluation are updated based on changes in business factors and the tax laws. If actual results differ from the assumptions and other considerations used in estimating the amount and timing of tax recognized, there can be no assurance that additional expenses will not be required in future periods.

ASC 740 prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. We recognize, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the financial statements. Assessment of uncertain tax positions under ASC 740 requires careful consideration of the technical merits of a position based on our analysis of tax regulations and interpretations.

There were no unrecognized tax benefits as of June 30, 2017. We record interest and penalties on potential income tax deficiencies as income tax expense. Our federal and state tax returns for the 2013 through 2016 tax years are subject to examination as of June 30, 2017. We do not expect to record or realize any material unrecognized tax benefits during 2017.

As a result of the adoption of ASU No. 2014-01, “Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects,” the amortization of our low-income housing credit investments has been reflected as income tax expense. Accordingly, $0.4 million of such amortization has been reflected as income tax expense for the three months endedJune 30, 2017 and June 30, 2016, and $0.8 million of such amortization has been reflected as income tax expense for the six months endedJune 30, 2017 and June 30, 2016.

The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the six months ended June 30, 2017 were $0.8 million, $0.8 million and $0.2 million, respectively. The carrying value of the investment in affordable housing credits is $14.6 million at June 30, 2017, compared to $15.4 million at December 31, 2016.

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Fair Value Disclosures of Financial Assets and Liabilities

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosures of Financial Assets and Liabilities

FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

• Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

• Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means.

• Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

The following tables present financial instruments carried at fair value as of June 30, 2017 and December 31, 2016 by level in the valuation hierarchy (as described above):

	June 30, 2017
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	314,839	$	—	$	314,839
FNMA MBS	—		395,960		—		395,960
FHLMC MBS	—		77,144		—		77,144
GNMA MBS	—		26,939		—		26,939
GSE	—		2,993		—		2,993
Other investments	620		—		—		620
Other assets	—		1,002		—		1,002
Total assets measured at fair value on a recurring basis	$	620	$	818,877	$	—	$	819,497
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	2,708	$	—	$	2,708
Assets measured at fair value on a nonrecurring basis:
Other real estate owned	$	—	$	—	$	2,121	$	2,121
Loans held for sale	—		35,425		—		35,425
Impaired loans, net	—		—		62,884		62,884
Total assets measured at fair value on a nonrecurring basis	$	—	$	35,425	$	65,005	$	100,430

	December 31, 2016
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	261,215	$	—	$	261,215
FNMA MBS	—		405,764		—		405,764
FHLMC MBS	—		63,515		—		63,515
GNMA MBS	—		28,416		—		28,416
GSE	—		35,010		—		35,010
Other investments	623		—		—		623
Other assets	—		1,508		—		1,508
Total assets measured at fair value on a recurring basis	$	623	$	795,428	$	—	$	796,051
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,380	$	—	$	3,380
Assets measured at fair value on a nonrecurring basis
Other real estate owned	$	—	$	—	$	3,591	$	3,591
Loans held for sale	—		54,782		—		54,782
Impaired loans, net	—		—		46,499		46,499
Total assets measured at fair value on a nonrecurring basis	$	—	$	54,782	$	50,090	$	104,872

There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months endedJune 30, 2017.

Fair value is based on quoted market prices, where available. If such quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include unobservable parameters. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While we believe our valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Available-for-sale securities

As of June 30, 2017, securities classified as available-for-sale are reported at fair value using Level 2 inputs, except for one mutual fund asset acquired as part of the Penn Liberty acquisition, which is categorized as Level 1. Included in the Level 2 total are approximately $3.0 million in U.S. Treasury Notes and Federal Agency debentures, and $814.9 million in Federal Agency MBS. We believe that this Level 2 designation is appropriate for these securities under ASC 820-10 as, with almost all fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors.

Other real estate owned

Other real estate owned consists of loan collateral which has been repossessed through foreclosure or other measures. Initially, foreclosed assets are recorded at the lower of the loan balance or fair value of the collateral less estimated selling costs. Subsequent to foreclosure, valuations are updated periodically and the assets may be marked down further, reflecting a new cost basis. The fair value of our real estate owned was estimated using Level 3 inputs based on appraisals obtained from third parties.

Loans held for sale

The fair value of our loans held for sale is based on estimates using Level 2 inputs. These inputs are based on pricing information obtained from wholesale mortgage banks and brokers and applied to loans with similar interest rates and maturities.

Impaired loans

We evaluate and value impaired loans at the time the loan is identified as impaired, and the fair values of such loans are estimated using Level 3 inputs in the fair value hierarchy. Each loan’s collateral has a unique appraisal and management’s discount of the value is based on the factors unique to each impaired loan. The significant unobservable input in determining the fair value is management’s subjective discount on appraisals of the collateral securing the loan, which range from 10% - 50%. Collateral may consist of real estate and/or business assets including equipment, inventory and/or accounts receivable and the value of these assets is determined based on the appraisals by qualified licensed appraisers hired by us. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, estimated costs to sell, and/or management’s expertise and knowledge of the client and the client’s business.

The gross amount of impaired loans, which are measured for impairment by either calculating the expected future cash flows discounted at the loan’s effective interest rate or determining the fair value of the collateral for collateral dependent loans was $68.1 million and $51.6 million at June 30, 2017 and December 31, 2016, respectively. The valuation allowance on impaired loans was $5.2 million as of June 30, 2017 and $3.4 million as of December 31, 2016.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The reported fair values of financial instruments are based on a variety of factors. In certain cases, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions regarding the amount and timing of estimated future cash flows that are discounted to reflect current market rates and varying degrees of risk. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of period-end or that will be realized in the future.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and cash equivalents

For cash and short-term investment securities, including due from banks, federal funds sold or purchased under agreements to resell and interest-bearing deposits with other banks, the carrying amount is a reasonable estimate of fair value.

Investment securities

Fair value is estimated using quoted prices for similar securities, which we obtain from a third party vendor. We utilize one of the largest providers of securities pricing to the industry and management periodically assesses the inputs used by this vendor to price the various types of securities owned by us to validate the vendor’s methodology as described above in available-for-sale securities.

Loans held for sale

Loans held for sale are carried at their fair value (see discussion in “Fair Value of Financial Assets and Liabilities” section above).

Loans

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type: commercial, commercial mortgages, owner-occupied commercial, construction, residential mortgages and consumer. For loans that reprice frequently, the book value approximates fair value. The fair values of other types of loans, with the exception of reverse mortgages, are estimated by discounting expected cash flows using the current rates at which similar loans would be made to borrowers with comparable credit ratings and for similar remaining maturities. The fair values of reverse mortgages are based on the net present value of the expected cash flows using a discount rate specific to the reverse mortgages portfolio. The fair value of nonperforming loans is based on recent external appraisals of the underlying collateral. Estimated cash flows, discounted using a rate commensurate with current rates and the risk associated with the estimated cash flows, are utilized if appraisals are not available. This technique does not contemplate an exit price.

Stock in the Federal Home Loan Bank (FHLB) of Pittsburgh

The fair value of FHLB stock is assumed to be equal to its cost basis, since the stock is non-marketable but redeemable at its par value.

Other assets

Other assets includes, among others, other real estate owned (see discussion earlier in this note) and our investment in Visa Class B stock. Our ownership includes shares acquired at no cost from our prior participation in Visa’s network, while Visa operated as a cooperative. During 2016 and 2017 we purchased additional shares which are accounted for as non-marketable equity securities and carried at cost. We evaluate the shares carried at cost for OTTI periodically. As of June 30, 2017, our evaluation indicated that there was no OTTI of these shares. Following resolution of Visa’s covered litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares.

Only current owners of Class B shares are allowed to purchase other Class B shares.  We estimate the value of our Visa Class B shares to be $38.5 million as of June 30, 2017.

Deposits

The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, money market and interest-bearing demand deposits, is assumed to be equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using rates currently offered for deposits with comparable remaining maturities.

Borrowed funds

Rates currently available to us for debt with similar terms and remaining maturities are used to estimate fair value of existing debt.

Other Liabilities

Other liabilities includes cash flow derivatives and derivative on the residential mortgage held for sale pipeline. Valuation of our cash flow derivative is obtained from an independent pricing service and also from the derivative counterparty. Valuation for the residential mortgage held for sale pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale.

Off-balance sheet instruments

The fair value of off-balance sheet instruments, including commitments to extend credit and standby letters of credit, approximates the recorded net deferred fee amounts, which are not significant. Because commitments to extend credit and letters of credit are generally not assignable by either us or the borrower, they only have value to us and the borrower.

The book value and estimated fair value of our financial instruments are as follows:

(Dollars in thousands)	Fair Value	June 30, 2017				December 31, 2016
	Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	745,311	$	745,311	$	821,923	$	821,923
Investment securities available for sale	See previous table	818,495		818,495		794,543		794,543
Investment securities held to maturity	Level 2	162,598		163,903		164,346		163,232
Loans, held for sale	Level 2	35,425		35,425		54,782		54,782
Loans, net(1)(2)	Level 2, 3	4,516,831		4,459,104		4,397,876		4,300,963
Impaired loans, net	Level 3	62,884		62,884		46,499		46,499
Stock in FHLB of Pittsburgh	Level 2	35,832		35,832		38,248		38,248
Accrued interest receivable	Level 2	16,742		16,742		17,027		17,027
Other assets	Level 3	17,229		41,702		9,189		15,787
Financial liabilities:
Deposits	Level 2	4,834,050		4,482,483		4,738,438		4,423,921
Borrowed funds	Level 2	1,162,754		1,159,990		1,267,447		1,264,170
Standby letters of credit	Level 3	503		503		468		468
Accrued interest payable	Level 2	2,405		2,405		1,151		1,151
Other liabilities	Level 2	2,708		2,708		3,380		3,380

 ⁽¹⁾ Excludes impaired loans, net.

 ⁽²⁾ Includes reverse mortgage loans, which are categorized as Level 3.

At June 30, 2017 and December 31, 2016 we had no commitments to extend credit measured at fair value.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

Risk Management Objective of Using Derivatives

We are exposed to certain risks arising from both economic conditions and our business operations. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities. We manage a matched book with respect to our derivative instruments in order to minimize our net risk exposure resulting from such transactions. Our cash flow hedging program began in the third quarter of 2016.

Fair Values of Derivative Instruments

The table below presents the fair value of our derivative financial instruments as well as their location on the Consolidated Statements of Financial Condition as of June 30, 2017.

	Fair Values of Derivative Instruments
(Dollars in thousands)		Count	Notional		Balance Sheet Location	Liability Derivatives (Fair Value)
Derivatives designated as hedging instruments:
Interest rate products		3	$	75,000	Other Liabilities	$	2,612
Total derivatives designated as hedging instruments						$	2,612

Cash Flow Hedges of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest income and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for us making variable-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. During the six months endedJune 30, 2017, such derivatives were used to hedge the variable cash flows associated with a variable rate loan pool. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the six months endedJune 30, 2017, we did not record any hedge ineffectiveness.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on our variable-rate pooled loans. During the next twelve months, we estimate that less than $0.2 million will be reclassified as an increase to interest income. During the six months ended 2017, $0.1 million was reclassified into interest income.

We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of 1 month (excluding forecasted transactions related to the payment of variable interest on existing financial instruments).

As of June 30, 2017, we had three outstanding interest rate derivatives with a notional of $75 million that were designated as cash flow hedges of interest rate risk.

Effect of Derivative Instruments on the Income Statement

The table below presents the effect of the derivative financial instruments on the Consolidated Statements of Income for the three and six months endedJune 30, 2017 and June 30, 2016 .

(Dollars in thousands)	Amount of Gain Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss)Reclassified from Accumulated OCI into Income (Effective Portion)
	Three months ended June 30,
Derivatives in Cash Flow Hedging Relationships	2017		2016
Interest Rate Products	$	263	$	—	Interest income
Total	$	263	$	—

(Dollars in thousands)	Amount of Gain Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss)Reclassified from Accumulated OCI into Income (Effective Portion)
	Six months ended June 30,
Derivatives in Cash Flow Hedging Relationships	2017		2016
Interest Rate Products	$	150	$	—	Interest income
Total	$	150	$	—

Credit risk-related Contingent Features

We have agreements with certain of our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations.

We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements.

As of June 30, 2017, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $2.6 million. We have minimum collateral posting thresholds with certain of our derivative counterparties, and have posted collateral of $3.4 million against our obligations under these agreements. If we had breached any of these provisions at June 30, 2017, we could have been required to settle our obligations under the agreements at the termination value.

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Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

As defined in FASB 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.

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. 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 fiduciary, investment management, credit and deposit products to clients through six business lines. WSFS Wealth Investments provides insurance and brokerage products primarily to our retail banking clients. Cypress Capital Management, LLC is a registered investment adviser. Cypress’ primary market segment is high net worth individuals, offering a ‘balanced’ investment style focused on preservation of capital and current income. West Capital Management, a registered investment adviser, is a fee-only wealth management firm which operates under a multi-family office philosophy and provides fully-customized solutions tailored to the unique needs of institutions and high net worth individuals. 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. Powdermill Financial Solutions is a multi-family office that specializes in providing unique, independent solutions to high net worth individuals, families and corporate executives through a coordinated, centralized approach. 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 June 30, 2017 and 2016 is as follows:

	Three months ended June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	60,234	$	—	$	2,100	$	62,334
Noninterest income	12,049		10,514		9,113		31,676
Total external customer revenues	72,283		10,514		11,213		94,010
Inter-segment revenues:
Interest income	2,247		—		2,435		4,682
Noninterest income	1,906		207		40		2,153
Total inter-segment revenues	4,153		207		2,475		6,835
Total revenue	76,436		10,721		13,688		100,845
External customer expenses:
Interest expense	7,739		—		281		8,020
Noninterest expenses	38,782		6,591		7,354		52,727
Provision for loan losses	1,316		—		527		1,843
Total external customer expenses	47,837		6,591		8,162		62,590
Inter-segment expenses:
Interest expense	2,435		1,582		665		4,682
Noninterest expenses	247		673		1,233		2,153
Total inter-segment expenses	2,682		2,255		1,898		6,835
Total expenses	50,519		8,846		10,060		69,425
Income before taxes	$	25,917	$	1,875	$	3,628	$	31,420
Income tax provision							10,850
Consolidated net income							$	20,570
Capital expenditures	$	1,559	$	68	$	363	$	1,990

	June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	96,306	$	643,506	$	5,499	$	745,311
Goodwill	145,808		—		20,199		166,007
Other segment assets	5,690,046		5,018		216,045		5,911,109
Total segment assets	$	5,932,160	$	648,524	$	241,743	$	6,822,427

	Three months ended June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®			Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	49,492	$	—		$	2,011	$	51,503
Noninterest income	10,173		8,796		(r)	6,538		25,507
Total external customer revenues	59,665		8,796			8,549		77,010
Inter-segment revenues:
Interest income	1,135		—			1,652		2,787
Noninterest income	2,011		210			25		2,246
Total inter-segment revenues	3,146		210			1,677		5,033
Total revenue	62,811		9,006			10,226		82,043
External customer expenses:
Interest expense	4,896		—			193		5,089
Noninterest expenses	34,462		5,489		(r)	4,734		44,685
Provision for loan losses	1,191		—			63		1,254
Total external customer expenses	40,549		5,489			4,990		51,028
Inter-segment expenses:
Interest expense	1,652		628			507		2,787
Noninterest expenses	235		727			1,284		2,246
Total inter-segment expenses	1,887		1,355			1,791		5,033
Total expenses	42,436		6,844			6,781		56,061
Income before taxes	$	20,375	$	2,162		$	3,445	$	25,982
Income tax provision								8,504
Consolidated net income								$	17,478
Capital expenditures	$	2,235	$	404		$	6	$	2,645

	June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	84,919	$	617,339	$	1,635	$	703,893
Goodwill	79,718		—		5,134		84,852
Other segment assets	4,843,166		3,419		198,777		5,045,362
Total segment assets	$	5,007,803	$	620,758	$	205,546	$	5,834,107

^(r) Noninterest income and noninterest expense for the period ended June 30, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information.

Segment information for the six months ended June 30, 2017 and 2016 is as follows:

	Six months ended June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	118,922	$	—	$	4,238	$	123,160
Noninterest income	22,216		20,191		17,361		59,768
Total external customer revenues	141,138		20,191		21,599		182,928
Inter-segment revenues:
Interest income	4,243		—		4,500		8,743
Noninterest income	4,070		398		76		4,544
Total inter-segment revenues	8,313		398		4,576		13,287
Total revenue	149,451		20,589		26,175		196,215
External customer expenses:
Interest expense	15,202		—		541		15,743
Noninterest expenses	77,742		12,726		13,765		104,233
Provision for loan losses	3,032		—		973		4,005
Total external customer expenses	95,976		12,726		15,279		123,981
Inter-segment expenses
Interest expense	4,500		2,987		1,256		8,743
Noninterest expenses	474		1,388		2,682		4,544
Total inter-segment expenses	4,974		4,375		3,938		13,287
Total expenses	100,950		17,101		19,217		137,268
Income before taxes	$	48,501	$	3,488	$	6,958	$	58,947
Income tax provision							19,440
Consolidated net income							$	39,507
Capital expenditures	$	3,647	$	90	$	617	$	4,354

	June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	96,306	$	643,506	$	5,499	$	745,311
Goodwill	145,808		—		20,199		166,007
Other segment assets	5,690,046		5,018		216,045		5,911,109
Total segment assets	$	5,932,160	$	648,524	$	241,743	$	6,822,427

	Six months ended June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®			Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	97,530	$	—		$	4,019	$	101,549
Noninterest income	20,025		17,068		(r)	12,083		49,176
Total external customer revenues	117,555		17,068			16,102		150,725
Inter-segment revenues:
Interest income	2,196		—			3,547		5,743
Noninterest income	4,071		403			49		4,523
Total inter-segment revenues	6,267		403			3,596		10,266
Total revenue	123,822		17,471			19,698		160,991
External customer expenses:
Interest expense	9,393		—			386		9,779
Noninterest expenses	68,274		10,938		(r)	9,271		88,483
Provision for loan losses	2,006		—			28		2,034
Total external customer expenses	79,673		10,938			9,685		100,296
Inter-segment expenses
Interest expense	3,547		1,183			1,013		5,743
Noninterest expenses	452		1,442			2,629		4,523
Total inter-segment expenses	3,999		2,625			3,642		10,266
Total expenses	83,672		13,563			13,327		110,562
Income before taxes	$	40,150	$	3,908		$	6,371	$	50,429
Income tax provision								17,181
Consolidated net income								$	33,248
Capital expenditures	$	3,446	$	424		$	8	$	3,878

	June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	84,919	$	617,339	$	1,635	$	703,893
Goodwill	79,718		—		5,134		84,852
Other segment assets	4,843,166		3,419		198,777		5,045,362
Total segment assets	$	5,007,803	$	620,758	$	205,546	$	5,834,107

^(r) Noninterest income and noninterest expense for the period ended June 30, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information.

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Indemnifications and Guarantees

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Indemnifications and Guarantees

INDEMNIFICATIONS AND GUARANTEES

Secondary Market Loan Sales

Given the current interest rate environment, coupled with our desire not to hold newly originated residential mortgage loans in our portfolio, we generally sell these assets in the secondary market to mortgage loan aggregators and on a more limited basis, to GSEs such as FHLMC, FNMA, and the FHLB. Loans held for sale are reflected on our unaudited Consolidated Statements of Financial Condition at fair value with changes in the value reflected in our unaudited Consolidated Statements of Income. Gains and losses are recognized at the time of sale. We periodically retain the servicing rights on residential mortgage loans sold which results in monthly service fee income. The mortgage servicing rights are included in our intangible assets in our unaudited Consolidated Statements of Financial Condition. Otherwise, we sell loans with servicing released on a nonrecourse basis. Rate-locked loan commitments that we intend to sell in the secondary market are accounted for as derivatives under ASC Topic 815, Derivatives and Hedging (ASC:815).

We generally do not sell loans with recourse, except for standard loan sale contract provisions covering violations of representations and warranties and, under certain circumstances, early payment default by the borrower. These are customary repurchase provisions in the secondary market for residential mortgage loan sales. These provisions may include either an indemnification from loss or the repurchase of the loans. Repurchases and losses have been rare and no provision is made for losses at the time of sale. There were no such repurchases for the six months ended June 30, 2017.

Swap Guarantees

We entered into agreements with three unrelated financial institutions whereby those financial institutions entered into interest rate derivative contracts (interest rate swap transactions) with customers referred to them by us. Under the terms of the agreements, those financial institutions have recourse to us for any exposure created under each swap transaction in the event that the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. This is a customary arrangement that allows us to provide access to interest rate swap transactions for our customers without creating the swap ourselves. These swap guarantees are accounted for as credit derivatives. 

At June 30, 2017 and December 31, 2016, there were 133 and 134 variable-rate to fixed-rate swap transactions between the third party financial institutions and our customers, respectively. The initial notional aggregate amount was approximately $526.9 million at June 30, 2017 compared to $518.8 million at December 31, 2016. At June 30, 2017 maturities ranged from under one year to ten years. The aggregate market value of these swaps to the customers was a liability of $10.1 million at June 30, 2017 and $10.9 million at December 31, 2016. We had no reserves for the swap guarantees as of June 30, 2017.

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Change in Accumulated Other Comprehensive (Loss) Income

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Change in Accumulated Other Comprehensive (Loss) Income

CHANGE IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

Accumulated other comprehensive (loss) income includes unrealized gains and losses on available-for-sale investments, unrealized gains and losses on cash flow hedges, as well as unrecognized prior service costs, transition costs, and actuarial gains and losses on defined benefit pension plans. Changes to accumulated other comprehensive (loss) income are presented net of tax as a component of stockholders equity. Amounts that are reclassified out of accumulated other comprehensive (loss) income are recorded on the Consolidated Statement of Income either as a gain or loss.

Changes to accumulated other comprehensive (loss) income by component are shown net of taxes in the following tables for the period indicated:

(Dollars in thousands)	Net change  in investment securities available for sale			Net change in securities held to maturity			Net change in defined benefit plan			Net change in fair value of derivative used for cash flow hedge			Total
Balance, March 31, 2017	$	(7,128	)	$	1,291		$	934		$	(1,884	)	$	(6,787	)
Other comprehensive income (loss) before reclassifications	3,241			—			—			262			3,503
Less: Amounts reclassified from accumulated other comprehensive loss	(455		)	(97		)	(22		)	—			(574		)
Net current-period other comprehensive income (loss)	2,786			(97		)	(22		)	262			2,929
Balance, June 30, 2017	$	(4,342	)	$	1,194		$	912		$	(1,622	)	$	(3,858	)
Balance, March 31, 2016	$	8,496		$	1,692		$	1,266		$	—		$	11,454
Other comprehensive income before reclassifications	4,683			—			—			—			4,683
Less: Amounts reclassified from accumulated other comprehensive income	(338		)	(100		)	(22		)	—			(460		)
Net current-period other comprehensive income (loss)	4,345			(100		)	(22		)	—			4,223
Balance, June 30, 2016	$	12,841		$	1,592		$	1,244		$	—		$	15,677
Balance, December 31, 2016	$	(8,194	)	$	1,392		$	957		$	(1,772	)	$	(7,617	)
Other comprehensive income (loss) before reclassifications	4,513			—			—			150			4,663
Less: Amounts reclassified from accumulated other comprehensive loss	(661		)	(198		)	(45		)	—			(904		)
Net current-period other comprehensive income (loss)	3,852			(198		)	(45		)	150			3,759
Balance, June 30, 2017	$	(4,342	)	$	1,194		$	912		$	(1,622	)	$	(3,858	)
Balance, December 31, 2015	$	(1,887	)	$	1,795		$	788		$	—		$	696
Other comprehensive income (loss) before reclassifications	15,255			—			—			—			15,255
Less: Amounts reclassified from accumulated other comprehensive loss	(527		)	(203		)	456			—			(274		)
Net current-period other comprehensive income (loss)	14,728			(203		)	456			—			14,981
Balance, June 30, 2016	$	12,841		$	1,592		$	1,244		$	—		$	15,677

The Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below:

							Affected line item in
	Three Months Ended						Consolidated
(Dollars in thousands)	June 30,						Statements of Income
	2017			2016
Securities available for sale:
Realized gains on securities transactions	$	(708	)	$	(545	)	Security gains, net
Income taxes	253			207			Income tax provision
Net of tax	$	(455	)	$	(338	)
Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity:
Amortization of net unrealized gains to income during the period	$	(159	)	$	(162	)	Interest income on investment securities
Income taxes	62			62			Income tax provision
Net of tax	$	(97	)	$	(100	)
Amortization of Defined Benefit Pension items:
Prior service (credits) costs	$	(19	)	$	(19	)
Actuarial (gains) losses	(18		)	(16		)
Total before tax	$	(37	)	$	(35	)	Salaries, benefits and other compensation
Income taxes	15			13			Income tax provision
Net of tax	(22		)	(22		)
Total reclassifications	$	(574	)	$	(460	)

							Affected line item in
	Six months ended						Consolidated
(Dollars in thousands)	June 30,						Statements of Income
	2017			2016
Securities available for sale:
Realized gains on securities transactions	$	(1,028	)	$	(850	)	Security gains, net
Income taxes	367			323			Income tax provision
Net of tax	$	(661	)	$	(527	)
Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity:
Amortization of net unrealized gains to income during the period	$	(319	)	$	(330	)	Interest income on investment securities
Income taxes	121			127			Income tax provision
Net of tax	$	(198	)	$	(203	)
Amortization of Defined Benefit Pension items:
Prior service (credits) costs	$	(38	)	$	(26	)
Actuarial (gains) losses	(34		)	762
Total before tax	$	(72	)	$	736		Salaries, benefits and other compensation
Income taxes	27			(280		)	Income tax provision
Net of tax	(45		)	456
Total reclassifications	$	(904	)	$	(274	)

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Related Party Transactions

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

In the ordinary course of business, from time to time we enter into transactions with related parties, including, but not limited to, our officers and directors. These transactions are made on substantially the same terms and conditions, including interest rates and collateral requirements, as those prevailing at the same time for comparable transactions with other customers. They do not, in the opinion of management, involve greater than normal credit risk or include other unfavorable features.

The outstanding balances of loans to related parties at June 30, 2017 and December 31, 2016 were $1.1 million and $1.3 million, respectively. Total deposits from related parties at June 30, 2017 and December 31, 2016 were $7.1 million and $3.6 million, respectively. During the second quarter of 2017, there were no new loans and credit line advances to related parties and repayments were $0.6 million. For the six months ended June 30, 2017, new loans and credit line advances to related parties were $0.4 million and repayments were $0.6 million.

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Legal and Other Proceedings

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Legal and Other Proceedings

LEGAL AND OTHER PROCEEDINGS

In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation-related matters that arise in the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance.

From time to time we are brought into certain legal matters and/or disputes through our Wealth Management segment, as a result of sometimes highly complex documents and servicing requirements that are part of this business. While the outcomes carry some degree of uncertainty, management does not currently anticipate that the ultimate liability, if any, arising out of such proceedings of which we are aware, will have a material effect on the Consolidated Financial Statements.

On April 7, 2015, WSFS Bank received a notice of arbitration and statement of claim (the Claim) from Universitas Education, LLC (Universitas) relating to Christiana Trust acting as “insurance trustee” of the Charter Oak Trust Welfare Benefit Plan (the Trust). The actions underlying the Claim occurred during a period prior to WSFS’ acquisition of Christiana Trust. According to the allegations contained in the Claim, certain life insurance policy death benefits made payable to an individual claiming/purporting to be a trustee of the Trust were misappropriated by individuals associated with the plan sponsor. None of those individuals, however, were employed by or agents of Christiana Trust or WSFS Bank. It is alleged that Christiana Trust, as insurance trustee, owed a fiduciary duty to the beneficiaries of the Trust and that it breached its fiduciary duty, was negligent, and aided and abetted fraud and theft in connection with the disappearance of the misappropriated funds. It is further alleged that Universitas was the rightful beneficiary under the Trust of the misappropriated funds, and thus was harmed because it did not receive the death benefits that had been paid over to the purported trustee of the Trust. While the face amounts of the two insurance policies in question total $30 million, Universitas recently revised its total Claim to assert an alleged loss of approximately $27 million plus costs and interest to date of $26 million. WSFS is vigorously defending itself against the Claim and believes that it has valid factual and legal defenses to the Claim. The evidentiary hearing commenced in July 2017, and it is anticipated that a decision in the arbitration will be rendered by fourth quarter 2017 or first quarter 2018. WSFS does not believe that the ultimate resolution of the Claim will have a material adverse effect on the Company, but there can be no assurance as to the ultimate outcome.

There were no material changes or additions to other significant pending legal or other proceedings involving us other than those arising out of routine operations.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

General

Our unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (the Company, our Company, we, our or us), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital) and Cypress Capital Management, LLC (Cypress). We also have one unconsolidated subsidiary, WSFS Capital Trust III (the Capital Trust). WSFS Bank has three wholly-owned subsidiaries: WSFS Wealth Investments, 1832 Holdings, Inc. and Monarch Entity Services LLC (Monarch).

Overview

Founded in 1832, the Bank is one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). We provide residential and commercial real estate, commercial and consumer lending services, as well as retail deposit and cash management services. Lending activities are funded primarily with customer deposits and borrowings. In addition, we offer a variety of wealth management and trust services to personal and corporate customers. The Federal Deposit Insurance Corporation (FDIC) insures our customers’ deposits to their legal maximums. We serve our customers primarily from our 76 offices located in Delaware (45), Pennsylvania (29), Virginia (1) and Nevada (1) and through our website at www.wsfsbank.com. Information on our website is not incorporated by reference into this quarterly report.

In preparing the unaudited Consolidated Financial Statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for loan losses and reserves for lending related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, other-than-temporary impairment (OTTI), and the income tax valuation allowance. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of the allowance and lending related commitments as well as increased post-retirement benefits expense.

Our accounting and reporting policies conform to Generally Accepted Accounting Principles (GAAP) in the U.S., prevailing practices within the banking industry for interim financial information and Rule 10-01 of SEC Regulation S-X (Rule 10-01). Rule 10-01 does not require us to include all information and notes that would be required in audited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any future quarters or for the year ending December 31, 2017. These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2016 (the "2016 Annual Report on Form 10-K") that was filed with the SEC on March 1, 2017 and is available at www.sec.gov or on our website at http://investors.wsfsbank.com/financials.cfm. All significant intercompany transactions were eliminated in consolidation.

The significant accounting policies used in preparation of our Consolidated Financial Statements are disclosed in our 2016 Annual Report on Form 10-K. There have not been any material changes in our significant accounting policies from those disclosed in our 2016 Annual Report on Form 10-K.

Acquisitions

Acquisitions in 2016

On August 12, 2016, we completed the acquisition of Penn Liberty Financial Corp. (Penn Liberty), a community bank headquartered in Wayne, Pennsylvania in order to build our market share, deepen our presence in the southeastern Pennsylvania market, and enhance our customer base. The results of Penn Liberty’s operations are included in our Consolidated Financial Statements since the date of the acquisition. See Note 2 – Business Combinations for further information.

During the third and fourth quarters of 2016, respectively, we acquired the assets of Powdermill Financial Solutions LLC, a multi-family office serving an affluent clientele in the local community and throughout the U.S., and West Capital Management, Inc., an independent, fee-only wealth management firm providing fully customized solutions tailored to the unique needs of institutions and high net worth individuals which operates under a multi-family office philosophy. These acquisitions align with our strategic plan to expand our wealth management offerings and to diversify our fee-income generating businesses.

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

Accounting Guidance Adopted in 2017

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-05: Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which amends Accounting Standards Codification (ASC) Topic 815: Derivatives and Hedging. This new guidance clarifies that the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, cause a hedge accounting relationship to be discontinued because it does not represent a termination of the original derivative instrument or a change in the critical terms of the hedge relationship. This new guidance is effective for annual reporting periods beginning after December 15, 2016 and may be adopted prospectively or retroactively. Early adoption is permitted, including adoption in an interim period. The Company adopted this accounting guidance during the quarter ended March 31, 2017 on a prospective basis with no impact to our Consolidated Financial Statements.

In March 2016, the FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments, Derivatives and Hedging (Topic 815). ASU 2016-06 clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. The standard is effective for public business entities in interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued, but would be retroactively applied to the beginning of the year that includes the interim period. The standard requires a modified retrospective transition approach, with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. For instruments that are eligible for the fair value option, an entity has a one-time option to irrevocably elect to measure the debt instrument affected by the standard in its entirety at fair value with changes in fair value recognized in earnings. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact on our Consolidated Statements of Income or Consolidated Statements of Financial Condition.

In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, Investments - Equity Method and Joint Ventures (Topic 323). ASU 2016-07 eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. The standard is effective for all entities in annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied prospectively to changes in ownership (or influence) after the adoption date. The Company adopted this accounting guidance during the quarter ended March 31, 2017 on a prospective basis with no impact to our Consolidated Financial Statements.

Accounting Guidance Pending Adoption at June 30, 2017

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU No. 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers using a five-step model that requires entities to exercise judgment when considering the terms of the contracts. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This amendment defers the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Gross versus Net), which amends the principal versus agent guidance and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In addition, the FASB issued ASU Nos. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers and 2016-12, Narrow-Scope Improvements and Practical Expedients, both of which provide additional clarification of certain provisions in Topic 606. These Accounting Standards Codification (“ASC”) updates are effective for public business entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or retrospectively with the cumulative effect transition method. For revenue streams determined to be within the scope of the standard, we are continuing to evaluate the related accounting policies, practices and reporting to identify and understand any impact the standard may have on the Company’s Consolidated Financial Statements. Our preliminary evaluation continues to suggest that adoption of this guidance is not expected to have a material effect on our Consolidated Financial Statements. The Company expects to complete its assessment in the second half of 2017 and will adopt the guidance on January 1, 2018.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This amendment requires that equity investments be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. For financial liabilities that are measured at fair value, the amendment requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument specific credit risk. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Entities may apply this guidance on a prospective or retrospective basis. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. Adoption using the modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company has begun the process of identifying our complete lease population as defined by the guidance. Our preliminary review of the guidance suggests that adoption will result in additional assets and liabilities on our Consolidated Balance Sheet. The Company expects to adopt the guidance on January 1, 2019.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is in the early stages of evaluating the impact of this guidance on its Consolidated Financial Statements. Our preliminary review of the guidance suggests that adoption may materially increase the allowance for loan losses. Management is in the process of creating a project team to lead the implementation of this guidance. The Company expects to adopt the guidance on January 1, 2020.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 represents the Emerging Issues Task Force’s (“the EITF”) final consensus on eight issues related to the classification of cash payments and receipts in the statement of cash flows for a number of common transactions. The consensus also clarifies when identifiable cash flows should be separated versus classified based on their predominant source or use. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 provides a new, two-step framework for determining whether a transaction is accounted for as an acquisition (or disposal) of assets or a business. The first step is evaluating whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the transaction is not considered a business. Also, in order to be considered a business, the transaction would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted for transactions that have not been reported in financial statements that have been issued or been made available for issuance. The Company does not expect the application of this guidance to have any impact on its Consolidated Financial Statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the measurement of goodwill impairment by removing the hypothetical purchase price allocation (“Step 2”). The new guidance requires an impairment of goodwill be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, up to the amount of goodwill recorded. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In February 2017, the FASB issued ASU No. 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 provides clarification of the scope of ASC 610-20. Specifically, the new guidance clarifies that ASC 610-20 applies to nonfinancial assets which do not meet the definition of a business or not-for-profit activity. Further, the new guidance clarifies that a financial asset is within the scope of ASC 610-20 if it meets the definition of an in-substance nonfinancial asset which is defined as a financial asset promised to a counterparty in a contract where substantially all of the assets promised are nonfinancial. Finally, the new guidance clarifies that each distinct nonfinancial asset and in-substance nonfinancial asset should be derecognized when the counterparty obtains control of it. The guidance is effective for public entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of adopting ASU 2017-05 on its Consolidated Financial Statements.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance requires that the service cost component of net periodic pension cost be disclosed with other compensation costs in the income statement. For all other cost components, an entity must either separately disclose the other cost components in separate line item(s) outside a subtotal of income from operations in the income statement or disclose the line item(s) used to present the other cost components in the income statement. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. The new guidance requires the amortization period for certain non-contingent callable debt securities held at a premium to end at the earliest call date of the debt security. If the call option is not exercised at the earliest call date, the guidance requires the debt security's effective yield to be reset based on the contractual payment terms of the debt security. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. Use of the modified retrospective method, with a cumulative-effect adjustment to retained earnings, is required. In the period of adoption, a change in accounting principle disclosure is required. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting. The new guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the award’s fair value, vesting conditions and classification remain the same immediately before and after the change, modification accounting is not applied. Additionally, the guidance does not require valuation before or after the change if the change does not affect any of the inputs to the model used to value the award. The guidance is effective for all entities in annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The new guidance will be applied on a prospective basis to awards modified on or after the adoption date. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements.

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Basis of Presentation Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

As a result, the Consolidated Statements of Income have been revised to reflect these changes, as follows:

	Three months ended June 30, 2016						Six months ended June 30, 2016
Dollars in thousands	As originally reported		Adjustments		As revised		As originally reported		Adjustments		As revised
Noninterest income - Other income	$	3,920	$	658	$	4,578	$	7,892	$	1,257	$	9,149
Noninterest expense - Other operating expense	7,423		658		8,081		14,484		1,257		15,741

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Business Combinations (Tables) - Penn Liberty Financial Corporation

6 Months Ended

Jun. 30, 2017

Business Acquisition [Line Items]

Summary of Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed

In connection with the merger, the consideration transferred and the fair value of identifiable assets acquired and liabilities assumed, including remeasurement adjustments subsequent to the date of acquisition, are summarized in the following table:

(Dollars in thousands)	Fair Value
Consideration Transferred:
Common shares issued (1,806,748)	$	68,352
Cash paid to Penn Liberty stock and option holders	40,549
Value of consideration	108,901
Assets acquired:
Cash and due from banks	102,301
Investment securities	627
Loans	483,203
Premises and equipment	6,817
Deferred income taxes	6,542
Bank owned life insurance	8,666
Core deposit intangible	2,882
Other real estate owned	996
Other assets	12,085
Total assets	624,119
Liabilities assumed:
Deposits	568,706
Other borrowings	10,000
Other liabilities	3,738
Total liabilities	582,444
Net assets acquired:	41,675
Goodwill resulting from acquisition of Penn Liberty	$	67,226

Schedule of Change to Goodwill

The following table details the change to goodwill recorded subsequent to acquisition:

(Dollars in thousands)	Fair Value
Goodwill resulting from the acquisition of Penn Liberty reported as of December 31, 2016	$	68,814
Effects of adjustments to:
Deferred income taxes	880
Loans	279
Other assets	(1,440		)
Other liabilities	(1,307		)
Adjusted goodwill resulting from the acquisition of Penn Liberty as of June 30, 2017	$	67,226

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table shows the computation of basic and diluted earnings per share:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars and Shares in thousands, except per share data)	2017		2016		2017		2016
Numerator:
Net income	$	20,570	$	17,478	$	39,507	$	33,248
Denominator:
Weighted average basic shares	31,443		29,545		31,425		29,608
Dilutive potential common shares	869		606		899		582
Weighted average fully diluted shares	32,312		30,151		32,324		30,190
Earnings per share:
Basic	$	0.65	$	0.59	$	1.26	$	1.12
Diluted	$	0.64	$	0.58	$	1.22	$	1.10
Outstanding common stock equivalents having no dilutive effect	—		5		10		20

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities

The following tables detail the amortized cost and the estimated fair value of our available-for-sale and held-to-maturity investment securities. None of our investment securities are classified as trading.

(Dollars in thousands)	Amortized Cost		Gross Unrealized  Gain		Gross Unrealized  Loss		Fair Value
Available-for-Sale Securities:
June 30, 2017
GSE	$	2,993	$	—	$	—	$	2,993
CMO	316,395		1,152		2,708		314,839
FNMA MBS	400,598		1,135		5,773		395,960
FHLMC MBS	77,815		168		839		77,144
GNMA MBS	27,050		294		405		26,939
Other investments	637		—		17		620
	$	825,488	$	2,749	$	9,742	$	818,495
December 31, 2016
GSE	$	35,061	$	9	$	60	$	35,010
CMO	264,607		566		3,957		261,216
FNMA MBS	414,218		950		9,404		405,764
FHLMC MBS	64,709		135		1,330		63,514
GNMA MBS	28,540		303		427		28,416
Other investments	626		—		3		623
	$	807,761	$	1,963	$	15,181	$	794,543

(Dollars in thousands)	Amortized Cost		Gross Unrealized  Gain		Gross Unrealized  Loss		Fair Value
Held-to-Maturity Securities(1)
June 30, 2017
State and political subdivisions	$	162,598	$	1,525	$	220	$	163,903
December 31, 2016
State and political subdivisions	$	164,346	$	271	$	1,385	$	163,232

⁽¹⁾  Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $1.9 million and $2.2 million at June 30, 2017 and December 31, 2016, respectively, related to securities transferred, which are offset in Accumulated Other Comprehensive Income, net of tax.

Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity

The scheduled maturities of investment securities available for sale and held to maturity at June 30, 2017 and December 31, 2016 are presented in the table below:

	Available for Sale (1) (2)
	Amortized		Fair
(Dollars in thousands)	Cost		Value
June 30, 2017
Within one year	$	2,993	$	2,993
After one year but within five years	10,043		10,062
After five years but within ten years	195,075		191,104
After ten years	616,740		613,716
	$	824,851	$	817,875
December 31, 2016
Within one year	$	16,009	$	16,017
After one year but within five years	19,052		18,992
After five years but within ten years	276,635		270,300
After ten years	495,439		488,611
	$	807,135	$	793,920
	Held to Maturity (2)
	Amortized		Fair
(Dollars in thousands)	Cost		Value
June 30, 2017
Within one year	$	—	$	—
After one year but within five years	5,906		5,949
After five years but within ten years	13,142		13,276
After ten years	143,550		144,678
	$	162,598	$	163,903
December 31, 2016
Within one year	$	—	$	—
After one year but within five years	6,168		6,162
After five years but within ten years	8,882		8,870
After ten years	149,296		148,200
	$	164,346	$	163,232

 ⁽¹⁾ Included in the investment portfolio, but not in the table above, is a mutual fund with an amortized cost and fair value of $0.6 million and $0.6 million as of June 30, 2017 and December 31, 2016 which has no stated maturity.

⁽²⁾  Actual maturities could differ

Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category

For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at June 30, 2017.

	Duration of Unrealized Loss Position
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Available-for-sale securities:
CMO	$	174,552	$	2,654	$	4,143	$	54	$	178,695	$	2,708
FNMA MBS	255,044		5,773		—		—		255,044		5,773
FHLMC MBS	45,583		839		—		—		45,583		839
GNMA MBS	12,097		313		3,733		92		15,830		405
Other investments	620		17		—		—		620		17
Total temporarily impaired investments	$	487,896	$	9,596	$	7,876	$	146	$	495,772	$	9,742
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Held-to-maturity securities:
State and political subdivisions	$	32,927	$	193	$	1,969	$	27	$	34,896	$	220
Total temporarily impaired investments	$	32,927	$	193	$	1,969	$	27	$	34,896	$	220

For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at December 31, 2016.

	Duration of Unrealized Loss Position
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Available-for-sale securities:
GSE	$	21,996	$	60	$	—	$	—	$	21,996	$	60
CMO	160,572		3,867		4,654		90		165,226		3,957
FNMA MBS	50,878		1,330		—		—		50,878		1,330
FHLMC MBS	300,403		9,404		—		—		300,403		9,404
GNMA MBS	16,480		427		—		—		16,480		427
Other investments	623		3		—		—		623		3
Total temporarily impaired investments	$	550,952	$	15,091	$	4,654	$	90	$	555,606	$	15,181
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Held-to-maturity securities:
State and political subdivisions	$	112,642	$	1,374	$	695	$	11	$	113,337	$	1,385
Total temporarily impaired investments	$	112,642	$	1,374	$	695	$	11	$	113,337	$	1,385

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Loans (Tables)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Summary of Loan Portfolio by Category

The following table shows our loan portfolio by category:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Commercial and industrial	$	1,323,664	$	1,287,731
Owner-occupied commercial	1,109,876		1,078,162
Commercial mortgages	1,147,006		1,163,554
Construction	279,806		222,712
Residential (1)	274,235		289,611
Consumer	492,817		450,029
	4,627,404		4,491,799
Less:
Deferred fees, net	7,684		7,673
Allowance for loan losses	40,005		39,751
Net loans	$	4,579,715	$	4,444,375

⁽¹⁾ Includes reverse mortgages, at fair value of $21.6 million at June 30, 2017 and $22.6 million at December 31, 2016.

Schedule of Outstanding Principal Balance and Carrying Amounts for Acquired Credit-Impaired Loans

The following table shows the outstanding principal balance and carrying amounts for acquired credit impaired loans for which the Company applies ASC 310-30 as of the dates indicated:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Outstanding principal balance	$	38,401	$	41,574
Carrying amount	30,560		33,104
Allowance for loan losses	588		510

Summary of Changes in Accretable Yield on Acquired Credit Impaired Loans

The following table presents the changes in accretable yield on the acquired credit impaired loans for the six months endedJune 30, 2017:

(Dollars in thousands)	Six months ended June 30, 2017
Balance at beginning of period	$	5,150
Accretion	(1,575		)
Reclassification from nonaccretable difference	1,243
Additions/adjustments	(211		)
Disposals	(4		)
Balance at end of period	$	4,603

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Allowance for Loan Losses and Credit Quality Information (Tables)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Schedule of Allowance for Loan Losses and Loan Balances

The following tables provide the activity of our allowance for loan losses and loan balances for the three and six months endedJune 30, 2017:

(Dollars in thousands)	Commercial			Owner-occupied Commercial			Commercial Mortgages			Construction			Residential(1)			Consumer			Total
Three months ended June 30, 2017
Allowance for loan losses
Beginning balance	$	14,205		$	6,030		$	8,335		$	2,961		$	2,054		$	6,241		$	39,826
Charge-offs	(929		)	—			(402		)	(117		)	(42		)	(888		)	(2,378		)
Recoveries	319			33			7			2			10			343			714
Provision (credit)	520			(265		)	(853		)	471			17			1,453			1,343
Provision for acquired loans	109			18			248			115			11			(1		)	500
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Six months ended June 30, 2017
Allowance for loan losses
Beginning balance	$	13,339		$	6,588		$	8,915		$	2,838		$	2,059		$	6,012		$	39,751
Charge-offs	(2,184		)	(192		)	(506		)	(131		)	(53		)	(2,031		)	(5,097		)
Recoveries	403			108			53			4			130			648			1,346
Provision (credit)	2,469			(706		)	(1,371		)	629			(97		)	2,533			3,457
Provision for acquired loans	197			18			244			92			11			(14		)	548
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1,342		$	—		$	1,464		$	772		$	869		$	195		$	4,642
Loans collectively evaluated for impairment	12,587			5,783			5,714			2,595			1,147			6,949			34,775
Acquired loans evaluated for impairment	295			33			157			65			34			4			588
Ending balance	$	14,224		$	5,816		$	7,335		$	3,432		$	2,050		$	7,148		$	40,005
Period-end loan balances evaluated for:
Loans individually evaluated for impairment (2)	$	14,845		$	3,432		$	10,941		$	4,808		$	14,023		$	8,396		$	56,445
Loans collectively evaluated for impairment	1,171,831			945,919			921,069			252,637			157,653			439,273			3,888,382
Acquired nonimpaired loans	130,986			148,686			204,809			20,340			80,074			44,902			629,797
Acquired impaired loans	6,002			11,839			10,187			2,021			852			246			31,147
Ending balance (3)	$	1,323,664		$	1,109,876		$	1,147,006		$	279,806		$	252,602		$	492,817		$	4,605,771

⁽¹⁾  Period-end loan balance excludes reverse mortgages, at fair value of $21.6 million.

⁽²⁾  The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $18.1 million for the period ending June 30, 2017. Accruing troubled debt restructured loans are considered impaired loans.

⁽³⁾  Ending loan balances do not include net deferred fees.

The following table provides the activity of the allowance for loan losses and loan balances for the six months ended June 30, 2016:

(Dollars in thousands)	Commercial			Owner - occupied Commercial			Commercial Mortgages			Construction			Residential(1)			Consumer			Complexity Risk(2)			Total
Three months ended June 30, 2016
Allowance for loan losses
Beginning balance	$	11,482		$	6,702		$	6,516		$	3,609		$	2,269		$	5,954		$	1,024		$	37,556
Charge-offs	(727		)	(141		)	(61		)	(3		)	(15		)	(818		)	—			(1,765		)
Recoveries	224			13			34			—			57			373			—			701
Provision (credit)	353			133			1,598			(352		)	22			317			(1,024		)	1,047
Provision for acquired loans	70			16			48			54			19			—			—			207
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Six months ended June 30, 2016
Allowance for loan losses
Beginning balance	$	11,156		$	6,670		$	6,487		$	3,521		$	2,281		$	5,964		$	1,010		$	37,089
Charge-offs	(906		)	(141		)	(78		)	(29		)	(29		)	(1,449		)	—			(2,632		)
Recoveries	334			51			113			46			79			632			—			1,255
Provision (credit)	837			127			1,561			(280		)	2			717			(1,010		)	1,954
Provision for acquired loans	(19		)	16			52			50			19			(38		)				80
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	426		$	—		$	—		$	211		$	992		$	205		$	—		$	1,834
Loans collectively evaluated for impairment	10,923			6,686			8,009			3,038			1,340			5,621			—			35,617
Acquired loans evaluated for impairment	53			37			126			59			20			—			—			295
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Period-end loan balances:
Loans individually evaluated for impairment (3)	$	2,558		$	838		$	1,702		$	1,419		$	14,416		$	7,965		$	—		$	28,898
Loans collectively evaluated for impairment	1,045,918			857,270			869,771			181,440			153,811			352,675			—			3,460,885
Acquired nonimpaired loans	58,423			70,465			108,212			12,086			67,484			13,990			—			330,660
Acquired impaired loans	1,711			9,757			10,560			4,094			946			4			—			27,072
Ending balance (4)	$	1,108,610		$	938,330		$	990,245		$	199,039		$	236,657		$	374,634		$	—		$	3,847,515

⁽¹⁾  Period-end loan balance excludes reverse mortgages, at fair value of $25.3 million.

⁽²⁾  Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology.

⁽³⁾  The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.1 million for the period ending June 30, 2016. Accruing troubled debt restructured loans are considered impaired loans.

⁽⁴⁾  Ending loan balances do not include net deferred fees.

Summary of Nonaccrual and Past Due Loans

The following tables show our nonaccrual and past due loans at the dates indicated:

	June 30, 2017
(Dollars in thousands)	30–59 Days Past Due  and Still  Accruing			60–89 Days Past Due and Still  Accruing			Greater  Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	901		$	6		$	—		$	907		$	1,302,051		$	6,002		$	14,704		$	1,323,664
Owner-occupied commercial	—			—			—			—			1,094,605			11,839			3,432			1,109,876
Commercial mortgages	237			—			—			237			1,125,854			10,187			10,728			1,147,006
Construction	—			—			—			—			276,723			2,021			1,062			279,806
Residential(1)	2,411			348			—			2,759			244,031			852			4,960			252,602
Consumer	598			488			92			1,178			487,897			246			3,496			492,817
Total (2)	$	4,147		$	842		$	92		$	5,081		$	4,531,161		$	31,147		$	38,382		$	4,605,771
% of Total Loans	0.09		%	0.02		%	—		%	0.11		%	98.38		%	0.68		%	0.83		%	100		%

⁽¹⁾  Residential accruing current balances excludes reverse mortgages at fair value of $21.6 million.

⁽²⁾  The balances above include a total of $629.8 million of acquired nonimpaired loans.

	December 31, 2016
(Dollars in thousands)	30–59 Days Past Due  and Still  Accruing			60–89 Days Past Due  and Still  Accruing			Greater  Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	1,507		$	278		$	—		$	1,785		$	1,277,748		$	6,183		$	2,015		$	1,287,731
Owner-occupied commercial	116			540			—			656			1,063,306			12,122			2,078			1,078,162
Commercial mortgages	167			—			—			167			1,143,180			10,386			9,821			1,163,554
Construction	132			—			—			132			218,886			3,694			—			222,712
Residential(1)	3,176			638			153			3,967			257,234			860			4,967			267,028
Consumer	392			346			285			1,023			444,642			369			3,995			450,029
Total(2)	$	5,490		$	1,802		$	438		$	7,730		$	4,404,996		$	33,614		$	22,876		$	4,469,216
% of Total Loans	0.12		%	0.04		%	0.01		%	0.17		%	98.57		%	0.75		%	0.51		%	100		%

⁽¹⁾  Residential accruing current balances excludes reverse mortgages, at fair value of $22.6 million.

⁽²⁾  The balances above include a total of $724.1 million of acquired nonimpaired loans

Analysis of Impaired Loans

The following tables provide an analysis of our impaired loans at June 30, 2017 and December 31, 2016:

	June 30, 2017
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve (1)		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	16,906	$	2,632	$	14,274	$	1,637	$	18,726	$	9,771
Owner-occupied commercial	8,232		3,432		4,800		33		8,662		5,346
Commercial mortgages	13,821		2,997		10,824		1,621		19,091		11,256
Construction	6,114		1,779		4,335		837		6,208		3,918
Residential	14,605		8,167		6,438		903		17,415		14,778
Consumer	8,436		7,234		1,202		199		11,300		8,319
Total (2)	$	68,114	$	26,241	$	41,873	$	5,230	$	81,402	$	53,388

⁽¹⁾  Reflects loan balances at or written down to their remaining book balance.

⁽²⁾  The above includes acquired impaired loans totaling $11.7 million in the ending loan balance and $12.9 million in the contractual principal balance of the total acquired impaired loan portfolio of $31.1 million

	December 31, 2016
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve (1)		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	4,250	$	1,395	$	2,855	$	505	$	5,572	$	5,053
Owner-occupied commercial	4,650		2,078		2,572		15		5,129		3,339
Commercial mortgages	15,065		4,348		10,717		1,433		20,716		7,323
Construction	3,662		—		3,662		303		3,972		2,376
Residential	14,256		7,122		7,134		934		17,298		15,083
Consumer	8,021		6,561		1,460		215		11,978		7,910
Total (2)	$	49,904	$	21,504	$	28,400	$	3,405	$	64,665	$	41,084

⁽¹⁾  Reflects loan balances at or written down to their remaining book balance.

⁽²⁾  The above includes acquired impaired loans totaling $12.8 million in the ending loan balance and $15.0 million in the contractual principal balance of the total acquired impaired loan portfolio of $33.6 million.

Schedule of Commercial Credit Exposure

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss.

Commercial Credit Exposure

	June 30, 2017
(Dollars in thousands)	Commercial		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial(1)
									Amount		%
Risk Rating:
Special mention	$	18,225	$	6,983	$	8,900	$	—	$	34,108
Substandard:
Accrual	42,217		20,893		67		4,506		67,683
Nonaccrual	13,362		3,432		9,264		289		26,347
Doubtful	1,342		—		1,464		772		3,578
Total Special Mention and Substandard	75,146		31,308		19,695		5,567		131,716		3	%
Acquired impaired	6,002		11,839		10,187		2,021		30,049		1	%
Pass	1,242,516		1,066,729		1,117,124		272,218		3,698,587		96	%
Total	$	1,323,664	$	1,109,876	$	1,147,006	$	279,806	$	3,860,352	100	%

⁽¹⁾  Table includes $504.8 million of acquired nonimpaired loans as of June 30, 2017.

	December 31, 2016
(Dollars in thousands)	Commercial		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial(1)
									Amount		%
Risk Rating:
Special mention	$	17,630	$	11,419	$	34,198	$	—	$	63,247
Substandard:
Accrual	45,067		19,871		239		2,193		67,370
Nonaccrual	1,693		2,078		8,574		—		12,345
Doubtful	322		—		1,247		—		1,569
Total Special Mention and Substandard	64,712		33,368		44,258		2,193		144,531		4	%
Acquired impaired	6,183		12,122		10,386		3,694		32,385		1	%
Pass	1,216,836		1,032,672		1,108,910		216,825		3,575,243		95	%
Total	$	1,287,731	$	1,078,162	$	1,163,554	$	222,712	$	3,752,159	100	%

⁽¹⁾  Table includes $573.5 million of acquired nonimpaired loans as of December 31, 2016.

Schedule of Consumer Credit Exposure

Residential and Consumer Credit Exposure

(Dollars in thousands)	Residential(2)				Consumer				Total Residential and Consumer(3)
	June 30,		December 31,		June 30,		December 31,		June 30, 2017				December 31, 2016
	2017		2016		2017		2016		Amount		Percent		Amount		Percent
Nonperforming(1)	$	14,023	$	13,547	$	8,396	$	7,863	$	22,419	3	%	$	21,410	3	%
Acquired impaired loans	852		860		246		369		1,098		—	%	1,229		—	%
Performing	237,727		252,621		484,175		441,797		721,902		97	%	694,418		97	%
Total	$	252,602	$	267,028	$	492,817	$	450,029	$	745,419	100	%	$	717,057	100	%

⁽¹⁾  Includes $14.0 million as of June 30, 2017 and $12.4 million as of December 31, 2016 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest.

⁽²⁾  Residential performing loans excludes $21.6 million and $22.6 million of reverse mortgages at fair value as of June 30, 2017 and December 31, 2016, respectively.

⁽³⁾  Total includes $125.0 million and $150.5 million in acquired nonimpaired loans as of June 30, 2017 and December 31, 2016, respectively.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents loans identified as TDRs during the three and six months endedJune 30, 2017 and 2016.

	Three Months Ended June 30,
	2017				2016
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	338	$	338	$	141	$	141
Owner-occupied commercial	—		—		—		—
Commercial mortgages	—		—		—		—
Construction	124		124		—		—
Residential	—		—		112		112
Consumer	674		674		240		240
Total	$	1,136	$	1,136	$	493	$	493

	Six Months Ended June 30,
	2017				2016
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	781	$	781	$	1,125	$	1,125
Owner-occupied commercial	3,071		3,071		—		—
Commercial mortgages	—		—		—		—
Construction	1,836		1,836		—		—
Residential	242		242		726		726
Consumer	1,258		1,258		455		455
Total	$	7,188	$	7,188	$	2,306	$	2,306

The following table presents the balance of TDRs as of the indicated dates:

(Dollars in thousands)	June 30, 2017		December 31, 2016
Performing TDRs	$	18,109	$	14,336
Nonperforming TDRs	10,657		8,451
Total TDRs	$	28,766	$	22,787

The following table presents information regarding the types of loan modifications made for the six months endedJune 30, 2017:

	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other (1)	Total
Commercial	1	1	—	—	2
Owner-occupied commercial	—	1	—	—	1
Construction	—	2	—	1	3
Residential	—	—	1	—	1
Consumer	—	—	7	4	11
	1	4	8	5	18

⁽¹⁾  Other includes underwriting exceptions.

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Goodwill and Intangibles (Tables)

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Allocation of Goodwill to Our Reportable Operating Segments for Purposes of Goodwill Impairment Testing

The following table shows the changes in our goodwill during the quarter as well as the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing:

	WSFS			Cash		Wealth		Consolidated
(Dollars in thousands)	Bank			Connect		Management		Company
December 31, 2016	$	147,396		$	—	$	20,143	$	167,539
Remeasurement adjustments	(1,588		)	—		56		(1,532		)
June 30, 2017	$	145,808		$	—	$	20,199	$	166,007

Summary of Other Intangible Assets

The following tables summarize other intangible assets:

	June 30, 2017
(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets		Amortization Period
Core deposits	$	10,658	$	(3,720	)	$	6,938	10 years
Customer relationships	17,561		(3,413		)	14,148		7-15 years
Non-compete agreements	221		(35		)	186		5 years
Loan servicing rights	2,135		(1,103		)	1,032		10-30 years
Favorable lease asset	1,932		(260		)	1,672		10 months-18 years
Total intangible assets	$	32,507	$	(8,531	)	$	23,976

	December 31, 2016
(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets		Amortization Period
Core deposits	$	13,128	$	(5,630	)	$	7,498	10 years
Customer relationships	17,561		(2,612		)	14,949		7-15 years
Non-compete agreements	1,006		(728		)	278		6 months- 5 years
Loan servicing rights	1,708		(1,067		)	641		10-30 years
Favorable lease asset	458		(116		)	342		10 months-15 years
Total intangible assets	$	33,861	$	(10,153	)	$	23,708

Schedule of Estimated Amortization Expense of Intangibles

The following table shows the estimated future amortization expense related to our intangible assets:

(Dollars in thousands)	Amortization of Intangibles
Remaining in 2017	$	1,525
2018	2,986
2019	2,918
2020	2,722
2021	2,396
Thereafter	11,429
Total	$	23,976

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Associate Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2017

Postemployment Benefits [Abstract]

Schedule of Net Periodic Benefit Cost Components of Postretirement Benefits

The following are disclosures of the net periodic benefit cost components of postretirement medical benefits measured at January 1, 2017 and 2016.

	Three months ended June 30,						Six months ended June 30,
(Dollars in thousands)	2017			2016			2017			2016
Service cost	$	14		$	14		$	29		$	29
Interest cost	19			19			38			38
Prior service cost amortization	(19		)	(19		)	(38		)	(26		)
Net gain recognition	(18		)	(16		)	(34		)	(31		)
Net periodic benefit cost	$	(4	)	$	(2	)	$	(5	)	$	10

The following table shows the net periodic benefit cost components for the Alliance Associate Pension Plan benefits measured at January 1, 2017.

(Dollars in thousands)	Three months ended June 30, 2017			Six months ended June 30, 2017
Service cost	$	10		$	20
Interest cost	75			150
Expected Return on Plan Assets	(135		)	(270		)
Prior service cost amortization	—			—
Net gain recognition	—			—
Net periodic benefit cost	$	(50	)	$	(100	)

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Fair Value Disclosures of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of June 30, 2017 and December 31, 2016 by level in the valuation hierarchy (as described above):

	June 30, 2017
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	314,839	$	—	$	314,839
FNMA MBS	—		395,960		—		395,960
FHLMC MBS	—		77,144		—		77,144
GNMA MBS	—		26,939		—		26,939
GSE	—		2,993		—		2,993
Other investments	620		—		—		620
Other assets	—		1,002		—		1,002
Total assets measured at fair value on a recurring basis	$	620	$	818,877	$	—	$	819,497
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	2,708	$	—	$	2,708
Assets measured at fair value on a nonrecurring basis:
Other real estate owned	$	—	$	—	$	2,121	$	2,121
Loans held for sale	—		35,425		—		35,425
Impaired loans, net	—		—		62,884		62,884
Total assets measured at fair value on a nonrecurring basis	$	—	$	35,425	$	65,005	$	100,430

	December 31, 2016
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	261,215	$	—	$	261,215
FNMA MBS	—		405,764		—		405,764
FHLMC MBS	—		63,515		—		63,515
GNMA MBS	—		28,416		—		28,416
GSE	—		35,010		—		35,010
Other investments	623		—		—		623
Other assets	—		1,508		—		1,508
Total assets measured at fair value on a recurring basis	$	623	$	795,428	$	—	$	796,051
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,380	$	—	$	3,380
Assets measured at fair value on a nonrecurring basis
Other real estate owned	$	—	$	—	$	3,591	$	3,591
Loans held for sale	—		54,782		—		54,782
Impaired loans, net	—		—		46,499		46,499
Total assets measured at fair value on a nonrecurring basis	$	—	$	54,782	$	50,090	$	104,872

Book Value and Estimated Fair Value of Financial Instruments

The book value and estimated fair value of our financial instruments are as follows:

(Dollars in thousands)	Fair Value	June 30, 2017				December 31, 2016
	Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	745,311	$	745,311	$	821,923	$	821,923
Investment securities available for sale	See previous table	818,495		818,495		794,543		794,543
Investment securities held to maturity	Level 2	162,598		163,903		164,346		163,232
Loans, held for sale	Level 2	35,425		35,425		54,782		54,782
Loans, net(1)(2)	Level 2, 3	4,516,831		4,459,104		4,397,876		4,300,963
Impaired loans, net	Level 3	62,884		62,884		46,499		46,499
Stock in FHLB of Pittsburgh	Level 2	35,832		35,832		38,248		38,248
Accrued interest receivable	Level 2	16,742		16,742		17,027		17,027
Other assets	Level 3	17,229		41,702		9,189		15,787
Financial liabilities:
Deposits	Level 2	4,834,050		4,482,483		4,738,438		4,423,921
Borrowed funds	Level 2	1,162,754		1,159,990		1,267,447		1,264,170
Standby letters of credit	Level 3	503		503		468		468
Accrued interest payable	Level 2	2,405		2,405		1,151		1,151
Other liabilities	Level 2	2,708		2,708		3,380		3,380

 ⁽¹⁾ Excludes impaired loans, net.

 ⁽²⁾ Includes reverse mortgage loans, which are categorized as Level 3.

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Values of Derivative Instruments

The table below presents the fair value of our derivative financial instruments as well as their location on the Consolidated Statements of Financial Condition as of June 30, 2017.

	Fair Values of Derivative Instruments
(Dollars in thousands)		Count	Notional		Balance Sheet Location	Liability Derivatives (Fair Value)
Derivatives designated as hedging instruments:
Interest rate products		3	$	75,000	Other Liabilities	$	2,612
Total derivatives designated as hedging instruments						$	2,612

Summary of Company's Derivative Financial Instruments

The table below presents the effect of the derivative financial instruments on the Consolidated Statements of Income for the three and six months endedJune 30, 2017 and June 30, 2016 .

(Dollars in thousands)	Amount of Gain Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss)Reclassified from Accumulated OCI into Income (Effective Portion)
	Three months ended June 30,
Derivatives in Cash Flow Hedging Relationships	2017		2016
Interest Rate Products	$	263	$	—	Interest income
Total	$	263	$	—

(Dollars in thousands)	Amount of Gain Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss)Reclassified from Accumulated OCI into Income (Effective Portion)
	Six months ended June 30,
Derivatives in Cash Flow Hedging Relationships	2017		2016
Interest Rate Products	$	150	$	—	Interest income
Total	$	150	$	—

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Details of Segment Information

Segment information for the three months ended June 30, 2017 and 2016 is as follows:

	Three months ended June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	60,234	$	—	$	2,100	$	62,334
Noninterest income	12,049		10,514		9,113		31,676
Total external customer revenues	72,283		10,514		11,213		94,010
Inter-segment revenues:
Interest income	2,247		—		2,435		4,682
Noninterest income	1,906		207		40		2,153
Total inter-segment revenues	4,153		207		2,475		6,835
Total revenue	76,436		10,721		13,688		100,845
External customer expenses:
Interest expense	7,739		—		281		8,020
Noninterest expenses	38,782		6,591		7,354		52,727
Provision for loan losses	1,316		—		527		1,843
Total external customer expenses	47,837		6,591		8,162		62,590
Inter-segment expenses:
Interest expense	2,435		1,582		665		4,682
Noninterest expenses	247		673		1,233		2,153
Total inter-segment expenses	2,682		2,255		1,898		6,835
Total expenses	50,519		8,846		10,060		69,425
Income before taxes	$	25,917	$	1,875	$	3,628	$	31,420
Income tax provision							10,850
Consolidated net income							$	20,570
Capital expenditures	$	1,559	$	68	$	363	$	1,990

	June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	96,306	$	643,506	$	5,499	$	745,311
Goodwill	145,808		—		20,199		166,007
Other segment assets	5,690,046		5,018		216,045		5,911,109
Total segment assets	$	5,932,160	$	648,524	$	241,743	$	6,822,427

	Three months ended June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®			Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	49,492	$	—		$	2,011	$	51,503
Noninterest income	10,173		8,796		(r)	6,538		25,507
Total external customer revenues	59,665		8,796			8,549		77,010
Inter-segment revenues:
Interest income	1,135		—			1,652		2,787
Noninterest income	2,011		210			25		2,246
Total inter-segment revenues	3,146		210			1,677		5,033
Total revenue	62,811		9,006			10,226		82,043
External customer expenses:
Interest expense	4,896		—			193		5,089
Noninterest expenses	34,462		5,489		(r)	4,734		44,685
Provision for loan losses	1,191		—			63		1,254
Total external customer expenses	40,549		5,489			4,990		51,028
Inter-segment expenses:
Interest expense	1,652		628			507		2,787
Noninterest expenses	235		727			1,284		2,246
Total inter-segment expenses	1,887		1,355			1,791		5,033
Total expenses	42,436		6,844			6,781		56,061
Income before taxes	$	20,375	$	2,162		$	3,445	$	25,982
Income tax provision								8,504
Consolidated net income								$	17,478
Capital expenditures	$	2,235	$	404		$	6	$	2,645

	June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	84,919	$	617,339	$	1,635	$	703,893
Goodwill	79,718		—		5,134		84,852
Other segment assets	4,843,166		3,419		198,777		5,045,362
Total segment assets	$	5,007,803	$	620,758	$	205,546	$	5,834,107

^(r) Noninterest income and noninterest expense for the period ended June 30, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information.

Segment information for the six months ended June 30, 2017 and 2016 is as follows:

	Six months ended June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	118,922	$	—	$	4,238	$	123,160
Noninterest income	22,216		20,191		17,361		59,768
Total external customer revenues	141,138		20,191		21,599		182,928
Inter-segment revenues:
Interest income	4,243		—		4,500		8,743
Noninterest income	4,070		398		76		4,544
Total inter-segment revenues	8,313		398		4,576		13,287
Total revenue	149,451		20,589		26,175		196,215
External customer expenses:
Interest expense	15,202		—		541		15,743
Noninterest expenses	77,742		12,726		13,765		104,233
Provision for loan losses	3,032		—		973		4,005
Total external customer expenses	95,976		12,726		15,279		123,981
Inter-segment expenses
Interest expense	4,500		2,987		1,256		8,743
Noninterest expenses	474		1,388		2,682		4,544
Total inter-segment expenses	4,974		4,375		3,938		13,287
Total expenses	100,950		17,101		19,217		137,268
Income before taxes	$	48,501	$	3,488	$	6,958	$	58,947
Income tax provision							19,440
Consolidated net income							$	39,507
Capital expenditures	$	3,647	$	90	$	617	$	4,354

	June 30, 2017
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	96,306	$	643,506	$	5,499	$	745,311
Goodwill	145,808		—		20,199		166,007
Other segment assets	5,690,046		5,018		216,045		5,911,109
Total segment assets	$	5,932,160	$	648,524	$	241,743	$	6,822,427

	Six months ended June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®			Wealth Management		Total
Statement of Income
External customer revenues:
Interest income	$	97,530	$	—		$	4,019	$	101,549
Noninterest income	20,025		17,068		(r)	12,083		49,176
Total external customer revenues	117,555		17,068			16,102		150,725
Inter-segment revenues:
Interest income	2,196		—			3,547		5,743
Noninterest income	4,071		403			49		4,523
Total inter-segment revenues	6,267		403			3,596		10,266
Total revenue	123,822		17,471			19,698		160,991
External customer expenses:
Interest expense	9,393		—			386		9,779
Noninterest expenses	68,274		10,938		(r)	9,271		88,483
Provision for loan losses	2,006		—			28		2,034
Total external customer expenses	79,673		10,938			9,685		100,296
Inter-segment expenses
Interest expense	3,547		1,183			1,013		5,743
Noninterest expenses	452		1,442			2,629		4,523
Total inter-segment expenses	3,999		2,625			3,642		10,266
Total expenses	83,672		13,563			13,327		110,562
Income before taxes	$	40,150	$	3,908		$	6,371	$	50,429
Income tax provision								17,181
Consolidated net income								$	33,248
Capital expenditures	$	3,446	$	424		$	8	$	3,878

	June 30, 2016
(Dollars in thousands)	WSFS Bank		Cash Connect®		Wealth Management		Total
Statement of Financial Condition
Cash and cash equivalents	$	84,919	$	617,339	$	1,635	$	703,893
Goodwill	79,718		—		5,134		84,852
Other segment assets	4,843,166		3,419		198,777		5,045,362
Total segment assets	$	5,007,803	$	620,758	$	205,546	$	5,834,107

^(r) Noninterest income and noninterest expense for the period ended June 30, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information.

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Change in Accumulated Other Comprehensive (Loss) Income (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Components of Accumulated Other Comprehensive (Loss) Income

Changes to accumulated other comprehensive (loss) income by component are shown net of taxes in the following tables for the period indicated:

(Dollars in thousands)	Net change  in investment securities available for sale			Net change in securities held to maturity			Net change in defined benefit plan			Net change in fair value of derivative used for cash flow hedge			Total
Balance, March 31, 2017	$	(7,128	)	$	1,291		$	934		$	(1,884	)	$	(6,787	)
Other comprehensive income (loss) before reclassifications	3,241			—			—			262			3,503
Less: Amounts reclassified from accumulated other comprehensive loss	(455		)	(97		)	(22		)	—			(574		)
Net current-period other comprehensive income (loss)	2,786			(97		)	(22		)	262			2,929
Balance, June 30, 2017	$	(4,342	)	$	1,194		$	912		$	(1,622	)	$	(3,858	)
Balance, March 31, 2016	$	8,496		$	1,692		$	1,266		$	—		$	11,454
Other comprehensive income before reclassifications	4,683			—			—			—			4,683
Less: Amounts reclassified from accumulated other comprehensive income	(338		)	(100		)	(22		)	—			(460		)
Net current-period other comprehensive income (loss)	4,345			(100		)	(22		)	—			4,223
Balance, June 30, 2016	$	12,841		$	1,592		$	1,244		$	—		$	15,677
Balance, December 31, 2016	$	(8,194	)	$	1,392		$	957		$	(1,772	)	$	(7,617	)
Other comprehensive income (loss) before reclassifications	4,513			—			—			150			4,663
Less: Amounts reclassified from accumulated other comprehensive loss	(661		)	(198		)	(45		)	—			(904		)
Net current-period other comprehensive income (loss)	3,852			(198		)	(45		)	150			3,759
Balance, June 30, 2017	$	(4,342	)	$	1,194		$	912		$	(1,622	)	$	(3,858	)
Balance, December 31, 2015	$	(1,887	)	$	1,795		$	788		$	—		$	696
Other comprehensive income (loss) before reclassifications	15,255			—			—			—			15,255
Less: Amounts reclassified from accumulated other comprehensive loss	(527		)	(203		)	456			—			(274		)
Net current-period other comprehensive income (loss)	14,728			(203		)	456			—			14,981
Balance, June 30, 2016	$	12,841		$	1,592		$	1,244		$	—		$	15,677

Components of Other Comprehensive Income (Loss)

The Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below:

							Affected line item in
	Three Months Ended						Consolidated
(Dollars in thousands)	June 30,						Statements of Income
	2017			2016
Securities available for sale:
Realized gains on securities transactions	$	(708	)	$	(545	)	Security gains, net
Income taxes	253			207			Income tax provision
Net of tax	$	(455	)	$	(338	)
Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity:
Amortization of net unrealized gains to income during the period	$	(159	)	$	(162	)	Interest income on investment securities
Income taxes	62			62			Income tax provision
Net of tax	$	(97	)	$	(100	)
Amortization of Defined Benefit Pension items:
Prior service (credits) costs	$	(19	)	$	(19	)
Actuarial (gains) losses	(18		)	(16		)
Total before tax	$	(37	)	$	(35	)	Salaries, benefits and other compensation
Income taxes	15			13			Income tax provision
Net of tax	(22		)	(22		)
Total reclassifications	$	(574	)	$	(460	)

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Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017 Subsidiary Office	Jun. 13, 2016 USD ($)	Dec. 31, 2012 USD ($)
Basis Of Presentation [Line Items]
Number of unconsolidated affiliate	1
Number of banking offices	76
Senior Unsecured Fixed - to - Floating Rate Notes
Basis Of Presentation [Line Items]
Senior unsecured fixed-to-floating rate notes, issued amount | $		$ 100,000,000
Interest rate on unsecured debt		4.50%
Senior unsecured notes, redemption price percentage of principal	100.00%
Senior Unsecured Fixed - to - Floating Rate Notes | London Interbank Offered Rate (LIBOR)
Basis Of Presentation [Line Items]
Senior unsecured notes, variable rate added to LIBOR	3.30%
Delaware
Basis Of Presentation [Line Items]
Number of banking offices	45
Pennsylvania
Basis Of Presentation [Line Items]
Number of banking offices	29
Virginia
Basis Of Presentation [Line Items]
Number of banking offices	1
Nevada
Basis Of Presentation [Line Items]
Number of banking offices	1
WSFS Financial Corporation
Basis Of Presentation [Line Items]
Number of wholly-owned subsidiaries | Subsidiary	3
Senior notes due 2019
Basis Of Presentation [Line Items]
Senior unsecured fixed-to-floating rate notes, issued amount | $			$ 55,000,000.0
Interest rate on unsecured debt			6.25%

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Basis of Presentation - Correction of Prior Period Balances (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Noninterest income - Other income	$ 6,051	$ 4,578	$ 11,246	$ 9,149
Noninterest expense - Other operating expense	$ 9,512	8,081	18,631	$ 15,741
Immaterial error, cash servicing fees
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Noninterest income - Other income		4,578	9,149
Noninterest expense - Other operating expense		8,081	15,741
Immaterial error, cash servicing fees | As originally reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Noninterest income - Other income		3,920	7,892
Noninterest expense - Other operating expense		7,423	14,484
Immaterial error, cash servicing fees | Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Noninterest income - Other income		658	1,257
Noninterest expense - Other operating expense		$ 658	$ 1,257

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Business Combinations - Summary of Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Aug. 12, 2016	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Liabilities assumed:
Goodwill resulting from acquisition of Penn Liberty		$ 166,007	$ 167,539	$ 84,852
Penn Liberty Financial Corporation
Liabilities assumed:
Goodwill resulting from acquisition of Penn Liberty		$ 67,226	$ 68,814
Pennsylvania | Penn Liberty Financial Corporation
Consideration Transferred:
Common shares issued (1,806,748)	$ 68,352
Common shares issued (in shares)	1,806,748
Cash paid to Penn Liberty stock and option holders	$ 40,549
Value of consideration	108,901
Assets acquired:
Cash and due from banks	102,301
Investment securities	627
Loans	483,203
Premises and equipment	6,817
Deferred income taxes	6,542
Bank owned life insurance	8,666
Core deposit intangible	2,882
Other real estate owned	996
Other assets	12,085
Total assets	624,119
Liabilities assumed:
Deposits	568,706
Other borrowings	10,000
Other liabilities	3,738
Total liabilities	582,444
Net assets acquired:	41,675
Goodwill resulting from acquisition of Penn Liberty	$ 67,226

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Business Combinations - Summary of Changes to Goodwill (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($)
Goodwill [Roll Forward]
Goodwill resulting from the acquisition beginning balance	$ 167,539
Goodwill resulting from the acquisition ending balance	166,007
Penn Liberty Financial Corporation
Goodwill [Roll Forward]
Goodwill resulting from the acquisition beginning balance	68,814
Goodwill resulting from the acquisition ending balance	67,226
Deferred income taxes | Penn Liberty Financial Corporation
Goodwill [Roll Forward]
Effects of adjustments to	880
Loans | Penn Liberty Financial Corporation
Goodwill [Roll Forward]
Effects of adjustments to	279
Other assets | Penn Liberty Financial Corporation
Goodwill [Roll Forward]
Effects of adjustments to	(1,440)
Other liabilities | Penn Liberty Financial Corporation
Goodwill [Roll Forward]
Effects of adjustments to	$ (1,307)

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net Income	$ 20,570	$ 17,478	$ 39,507	$ 33,248
Denominator:
Weighted average basic shares (in shares)	31,443	29,545	31,425	29,608
Dilutive potential common shares (in shares)	869	606	899	582
Weighted average fully diluted shares (in shares)	32,312	30,151	32,324	30,190
Earnings per share:
Basic (in dollars per share)	$ 0.65	$ 0.59	$ 1.26	$ 1.12
Diluted (in dollars per share)	$ 0.64	$ 0.58	$ 1.22	$ 1.10
Outstanding common stock equivalents having no dilutive effect (in shares)	0	5	10	20

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Investment Securities - Additional Information (Detail)	6 Months Ended		12 Months Ended
	Jun. 30, 2017 USD ($) secuirty	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Trading securities	$ 0
Available-for-sale securities, amortized cost basis	825,488,000		$ 807,761,000
Securities pledged as collateral	571,600,000		562,500,000
Proceeds from sale of investment securities	351,600,000	$ 101,300,000
Gains from sale of Available-for-sale securities	1,100,000	900,000
Losses from sale of Available-for-sale securities (less than during the current quarter end)	100,000	$ 0
Unamortized premiums	15,500,000		18,000,000
Unaccreted discounts	800,000		400,000
Owned investment securities	530,700,000
Total unrealized losses on securities	$ 10,000,000
Number of securities, below investment grade | secuirty	1
Available-for-sale securities, below investment grade, fair value	$ 1,000,000
Weighted average duration of MBS portfolio	5 years 15 days
Mortgage-Backed Securities (MBS)
Schedule of Available-for-sale Securities [Line Items]
OTTI on evaluation of securities	$ 0
Mutual Fund
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, amortized cost basis	600,000		600,000
State and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities transfers to held to maturity unrealized gains	$ 1,900,000		$ 2,200,000

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Investment Securities - Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 825,488	$ 807,761
Gross Unrealized Gain	2,749	1,963
Gross Unrealized Loss	9,742	15,181
Investment securities available for sale	818,495	794,543
Held-to-Maturity Securities, Amortized Cost	162,598	164,346
Held-to-Maturity Securities, Fair Value	163,903	163,232
CMO
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	316,395	264,607
Gross Unrealized Gain	1,152	566
Gross Unrealized Loss	2,708	3,957
Investment securities available for sale	314,839	261,216
FNMA MBS
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	400,598	414,218
Gross Unrealized Gain	1,135	950
Gross Unrealized Loss	5,773	9,404
Investment securities available for sale	395,960	405,764
FHLMC MBS
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	77,815	64,709
Gross Unrealized Gain	168	135
Gross Unrealized Loss	839	1,330
Investment securities available for sale	77,144	63,514
GNMA MBS
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	27,050	28,540
Gross Unrealized Gain	294	303
Gross Unrealized Loss	405	427
Investment securities available for sale	26,939	28,416
Other investments
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	637	626
Gross Unrealized Gain	0	0
Gross Unrealized Loss	17	3
Investment securities available for sale	620	623
GSE
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,993	35,061
Gross Unrealized Gain	0	9
Gross Unrealized Loss	0	60
Investment securities available for sale	2,993	35,010
State and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Held-to-Maturity Securities, Amortized Cost	162,598	164,346
Held-to-Maturity Securities, Gross Unrealized Gain	1,525	271
Held-to-Maturity Securities, Gross Unrealized Loss	220	1,385
Held-to-Maturity Securities, Fair Value	$ 163,903	$ 163,232

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Investment Securities - Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities, amortized cost within one year	$ 2,993	$ 16,009
Available-for-sale securities, amortized cost after one year but within five years	10,043	19,052
Available-for-sale securities, amortized cost after five years but within ten years	195,075	276,635
Available-for-sale securities, amortized cost after ten years	616,740	495,439
Available-for-sale securities, amortized cost total	824,851	807,135
Available-for-sale securities, fair value within one year	2,993	16,017
Available-for-sale securities, fair value after one year but within five years	10,062	18,992
Available-for-sale securities, fair value after five years but within ten years	191,104	270,300
Available-for-sale securities, fair value after ten years	613,716	488,611
Available-for-sale securities, fair value total	817,875	793,920
Held-to-maturity securities, amortized cost within one year	0	0
Held-to-maturity securities, amortized cost after one year but within five years	5,906	6,168
Held-to-maturity securities, amortized cost after five years but within ten years	13,142	8,882
Held-to-maturity securities, amortized cost after ten years	143,550	149,296
Held-to-Maturity Securities, Amortized Cost	162,598	164,346
Held-to-maturity securities, fair value within one year	0	0
Held-to-maturity securities, fair value after one year but within five years	5,949	6,162
Held-to-maturity securities, after five years but within ten years	13,276	8,870
Held-to-maturity securities, after ten years	144,678	148,200
Held-to-maturity securities, fair value total	$ 163,903	$ 163,232

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Investment Securities - Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than 12 months, Fair Value	$ 487,896	$ 550,952
Available-for-sale securities, Less than 12 months, Unrealized Loss	9,596	15,091
Available-for-sale securities, 12 months or longer, Fair Value	7,876	4,654
Available-for-sale securities, 12 months or longer, Unrealized Loss	146	90
Available-for-sale securities, Total, Fair Value	495,772	555,606
Available-for-sale securities, Total, Unrealized Loss	9,742	15,181
Held-to-maturity, Less than 12 months, Fair Value	32,927	112,642
Held-to-maturity, Less than 12 months, Unrealized Loss	193	1,374
Held-to-maturity, 12 months or longer, Fair Value	1,969	695
Held-to-maturity, 12 months or longer, Unrealized Loss	27	11
Held-to-maturity, Total, Fair Value	34,896	113,337
Held-to-maturity, Total, Unrealized Loss	220	1,385
CMO
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than 12 months, Fair Value	174,552	160,572
Available-for-sale securities, Less than 12 months, Unrealized Loss	2,654	3,867
Available-for-sale securities, 12 months or longer, Fair Value	4,143	4,654
Available-for-sale securities, 12 months or longer, Unrealized Loss	54	90
Available-for-sale securities, Total, Fair Value	178,695	165,226
Available-for-sale securities, Total, Unrealized Loss	2,708	3,957
FNMA MBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than 12 months, Fair Value	255,044	50,878
Available-for-sale securities, Less than 12 months, Unrealized Loss	5,773	1,330
Available-for-sale securities, 12 months or longer, Fair Value	0	0
Available-for-sale securities, 12 months or longer, Unrealized Loss	0	0
Available-for-sale securities, Total, Fair Value	255,044	50,878
Available-for-sale securities, Total, Unrealized Loss	5,773	1,330
FHLMC MBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than 12 months, Fair Value	45,583	300,403
Available-for-sale securities, Less than 12 months, Unrealized Loss	839	9,404
Available-for-sale securities, 12 months or longer, Fair Value	0	0
Available-for-sale securities, 12 months or longer, Unrealized Loss	0	0
Available-for-sale securities, Total, Fair Value	45,583	300,403
Available-for-sale securities, Total, Unrealized Loss	839	9,404
GNMA MBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than 12 months, Fair Value	12,097	16,480
Available-for-sale securities, Less than 12 months, Unrealized Loss	313	427
Available-for-sale securities, 12 months or longer, Fair Value	3,733	0
Available-for-sale securities, 12 months or longer, Unrealized Loss	92	0
Available-for-sale securities, Total, Fair Value	15,830	16,480
Available-for-sale securities, Total, Unrealized Loss	405	427
Other investments
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than 12 months, Fair Value	620	623
Available-for-sale securities, Less than 12 months, Unrealized Loss	17	3
Available-for-sale securities, 12 months or longer, Fair Value	0	0
Available-for-sale securities, 12 months or longer, Unrealized Loss	0	0
Available-for-sale securities, Total, Fair Value	620	623
Available-for-sale securities, Total, Unrealized Loss	17	3
GSE
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than 12 months, Fair Value		21,996
Available-for-sale securities, Less than 12 months, Unrealized Loss		60
Available-for-sale securities, 12 months or longer, Fair Value		0
Available-for-sale securities, 12 months or longer, Unrealized Loss		0
Available-for-sale securities, Total, Fair Value		21,996
Available-for-sale securities, Total, Unrealized Loss		60
State and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity, Less than 12 months, Fair Value	32,927	112,642
Held-to-maturity, Less than 12 months, Unrealized Loss	193	1,374
Held-to-maturity, 12 months or longer, Fair Value	1,969	695
Held-to-maturity, 12 months or longer, Unrealized Loss	27	11
Held-to-maturity, Total, Fair Value	34,896	113,337
Held-to-maturity, Total, Unrealized Loss	$ 220	$ 1,385

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Loans - Summary of Loan Portfolio by Category (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 4,605,771		$ 4,469,216	$ 3,847,515
Deferred fees, net	7,684		7,673
Allowance for loan losses	40,005	$ 39,826	39,751	37,746	$ 37,556	$ 37,089
Net loans	4,579,715		4,444,375
Reverse mortgage, fair value	21,600		22,600	25,300
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	492,817		450,029	374,634
Allowance for loan losses	7,148	6,241	6,012	5,826	5,954	5,964
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,323,664		1,287,731
Owner-occupied commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,109,876		1,078,162	938,330
Allowance for loan losses	5,816	6,030	6,588	6,723	6,702	6,670
Commercial mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,147,006		1,163,554	990,245
Allowance for loan losses	7,335	8,335	8,915	8,135	6,516	6,487
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	279,806		222,712	199,039
Allowance for loan losses	3,432	$ 2,961	2,838	$ 3,308	$ 3,609	$ 3,521
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	274,235		289,611
Financing Receivable Portfolio Segment, Including Reverse Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 4,627,404		$ 4,491,799

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Loans - Schedule of Outstanding Principal Balance and Carrying Amounts for Acquired Credit-Impaired Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Outstanding principal balance	$ 38,401	$ 41,574
Carrying amount	30,560	33,104
Allowance for loan losses	$ 588	$ 510

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Loans - Summary of Changes in Accretable Yield on Acquired Credit Impaired Loans (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 5,150
Accretion	(1,575)
Reclassification from nonaccretable difference	1,243
Additions/adjustments	(211)
Disposals	(4)
Balance at the end of the period	$ 4,603

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Allowance for Loan Losses and Credit Quality Information - Additional Information (Detail)	3 Months Ended		6 Months Ended						12 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 USD ($) SecurityLoan	Jun. 30, 2017 USD ($) loan	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($) SecurityLoan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net charge-offs					$ 3,800,000			$ 1,400,000
Percentage of average loans annualized, charged-offs				0.17%				0.07%
Reverse mortgage, fair value	$ 21,600,000	$ 25,300,000	$ 21,600,000	$ 21,600,000	21,600,000	$ 21,600,000	$ 21,600,000	$ 25,300,000	$ 22,600,000
Performing TDRs					18,109,000			14,100,000	14,336,000
Acquired nonimpaired loans	629,797,000	330,660,000	629,797,000	629,797,000	629,797,000	629,797,000	629,797,000	330,660,000	724,100,000
Acquired impaired loans	11,700,000		11,700,000	11,700,000	11,700,000	11,700,000	11,700,000		12,800,000
Contractual principal balance	12,900,000		12,900,000	12,900,000	12,900,000	12,900,000	12,900,000		15,000,000
Acquired impaired loans					31,147,000			27,072,000	33,614,000
Interest income on impaired loans	400,000	200,000			700,000			300,000
Accrued troubled debt restructured loans	14,000,000		14,000,000	14,000,000	14,000,000	14,000,000	14,000,000		12,400,000
Troubled debt restructuring related reserves	2,100,000		$ 2,100,000	2,100,000	2,100,000	$ 2,100,000	$ 2,100,000		1,300,000
Usual sustained repayment performance period			6 months
TRD defaulted						8	2
Subsequent default, loan amount					600,000
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired nonimpaired loans	130,986,000	58,423,000	$ 130,986,000	130,986,000	130,986,000	$ 130,986,000	$ 130,986,000	58,423,000
Acquired impaired loans					6,002,000			1,711,000	$ 6,183,000
Number of residential loans in the process of foreclosure | SecurityLoan						6			7
Total loans outstanding, residential loans					1,700,000				$ 3,600,000
TRD defaulted | SecurityLoan						0
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired nonimpaired loans	80,074,000	67,484,000	80,074,000	80,074,000	80,074,000	$ 80,074,000	80,074,000	67,484,000
Acquired impaired loans					852,000			946,000	$ 860,000
Number of residential loans in the process of foreclosure | SecurityLoan						33			29
Total loans outstanding, residential loans					4,400,000				$ 3,700,000
TRD defaulted | SecurityLoan						1
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired nonimpaired loans	44,902,000	$ 13,990,000	$ 44,902,000	44,902,000	44,902,000	$ 44,902,000	44,902,000	13,990,000
Acquired impaired loans					246,000			4,000	369,000
TRD defaulted | SecurityLoan						7
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period for impairment loans			90 days
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Increase in allowance for loan losses (less than)					300,000			0
Troubled debt restructurings charged off (less than)					0			$ 100,000
Total Residential and Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired nonimpaired loans	125,000,000		$ 125,000,000	125,000,000	125,000,000	$ 125,000,000	125,000,000		150,500,000
Impairment loans, charge off period			90 days
Total Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired nonimpaired loans	$ 504,800,000		$ 504,800,000	$ 504,800,000	$ 504,800,000	$ 504,800,000	$ 504,800,000		$ 573,500,000

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Allowance for Loan Losses and Credit Quality Information - Schedule of Allowance for Loan Losses and Loan Balances (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Allowance for loan losses
Beginning balance	$ 39,826	$ 37,556	$ 39,751	$ 37,089	$ 37,089
Charge-offs	(2,378)	(1,765)	(5,097)	(2,632)
Recoveries	714	701	1,346	1,255
Provision (credit)	1,343	1,047	3,457	1,954
Provision for acquired loans	500	207	548	80
Ending balance	40,005	37,746	40,005	37,746	39,751
Loans individually evaluated for impairment	4,642	1,834	4,642	1,834
Loans collectively evaluated for impairment	34,775	35,617	34,775	35,617
Acquired loans evaluated for impairment			588	295
Ending balance	40,005	37,746	40,005	37,746
Loans individually evaluated for impairment	56,445	28,898	56,445	28,898
Loans collectively evaluated for impairment	3,888,382	3,460,885	3,888,382	3,460,885
Acquired nonimpaired loans	629,797	330,660	629,797	330,660	724,100
Acquired impaired loans			31,147	27,072	33,614
Ending balance	4,605,771	3,847,515	4,605,771	3,847,515	4,469,216
Owner-occupied commercial
Allowance for loan losses
Beginning balance	6,030	6,702	6,588	6,670	6,670
Charge-offs	0	(141)	(192)	(141)
Recoveries	33	13	108	51
Provision (credit)	(265)	133	(706)	127
Provision for acquired loans	18	16	18	16
Ending balance	5,816	6,723	5,816	6,723	6,588
Loans individually evaluated for impairment	0	0	0	0
Loans collectively evaluated for impairment	5,783	6,686	5,783	6,686
Acquired loans evaluated for impairment			33	37
Ending balance	5,816	6,723	5,816	6,723
Loans individually evaluated for impairment	3,432	838	3,432	838
Loans collectively evaluated for impairment	945,919	857,270	945,919	857,270
Acquired nonimpaired loans	148,686	70,465	148,686	70,465
Acquired impaired loans			11,839	9,757	12,122
Ending balance	1,109,876	938,330	1,109,876	938,330	1,078,162
Commercial mortgages
Allowance for loan losses
Beginning balance	8,335	6,516	8,915	6,487	6,487
Charge-offs	(402)	(61)	(506)	(78)
Recoveries	7	34	53	113
Provision (credit)	(853)	1,598	(1,371)	1,561
Provision for acquired loans	248	48	244	52
Ending balance	7,335	8,135	7,335	8,135	8,915
Loans individually evaluated for impairment	1,464	0	1,464	0
Loans collectively evaluated for impairment	5,714	8,009	5,714	8,009
Acquired loans evaluated for impairment			157	126
Ending balance	7,335	8,135	7,335	8,135
Loans individually evaluated for impairment	10,941	1,702	10,941	1,702
Loans collectively evaluated for impairment	921,069	869,771	921,069	869,771
Acquired nonimpaired loans	204,809	108,212	204,809	108,212
Acquired impaired loans			10,187	10,560	10,386
Ending balance	1,147,006	990,245	1,147,006	990,245	1,163,554
Construction
Allowance for loan losses
Beginning balance	2,961	3,609	2,838	3,521	3,521
Charge-offs	(117)	(3)	(131)	(29)
Recoveries	2	0	4	46
Provision (credit)	471	(352)	629	(280)
Provision for acquired loans	115	54	92	50
Ending balance	3,432	3,308	3,432	3,308	2,838
Loans individually evaluated for impairment	772	211	772	211
Loans collectively evaluated for impairment	2,595	3,038	2,595	3,038
Acquired loans evaluated for impairment			65	59
Ending balance	3,432	3,308	3,432	3,308
Loans individually evaluated for impairment	4,808	1,419	4,808	1,419
Loans collectively evaluated for impairment	252,637	181,440	252,637	181,440
Acquired nonimpaired loans	20,340	12,086	20,340	12,086
Acquired impaired loans			2,021	4,094	3,694
Ending balance	279,806	199,039	279,806	199,039	222,712
Complexity Risk
Allowance for loan losses
Beginning balance		1,024		1,010	1,010
Charge-offs		0		0
Recoveries		0		0
Provision (credit)		(1,024)		(1,010)
Provision for acquired loans		0
Ending balance		0		0
Loans individually evaluated for impairment		0		0
Loans collectively evaluated for impairment		0		0
Acquired loans evaluated for impairment				0
Ending balance		0		0
Loans individually evaluated for impairment		0		0
Loans collectively evaluated for impairment		0		0
Acquired nonimpaired loans		0		0
Acquired impaired loans				0
Ending balance		0		0
Commercial
Allowance for loan losses
Beginning balance	14,205	11,482	13,339	11,156	11,156
Charge-offs	(929)	(727)	(2,184)	(906)
Recoveries	319	224	403	334
Provision (credit)	520	353	2,469	837
Provision for acquired loans	109	70	197	(19)
Ending balance	14,224	11,402	14,224	11,402	13,339
Loans individually evaluated for impairment	1,342	426	1,342	426
Loans collectively evaluated for impairment	12,587	10,923	12,587	10,923
Acquired loans evaluated for impairment			295	53
Ending balance	14,224	11,402	14,224	11,402
Loans individually evaluated for impairment	14,845	2,558	14,845	2,558
Loans collectively evaluated for impairment	1,171,831	1,045,918	1,171,831	1,045,918
Acquired nonimpaired loans	130,986	58,423	130,986	58,423
Acquired impaired loans			6,002	1,711	6,183
Ending balance	1,323,664	1,108,610	1,323,664	1,108,610	1,287,731
Residential
Allowance for loan losses
Beginning balance	2,054	2,269	2,059	2,281	2,281
Charge-offs	(42)	(15)	(53)	(29)
Recoveries	10	57	130	79
Provision (credit)	17	22	(97)	2
Provision for acquired loans	11	19	11	19
Ending balance	2,050	2,352	2,050	2,352	2,059
Loans individually evaluated for impairment	869	992	869	992
Loans collectively evaluated for impairment	1,147	1,340	1,147	1,340
Acquired loans evaluated for impairment			34	20
Ending balance	2,050	2,352	2,050	2,352
Loans individually evaluated for impairment	14,023	14,416	14,023	14,416
Loans collectively evaluated for impairment	157,653	153,811	157,653	153,811
Acquired nonimpaired loans	80,074	67,484	80,074	67,484
Acquired impaired loans			852	946	860
Ending balance	252,602	236,657	252,602	236,657	267,028
Consumer
Allowance for loan losses
Beginning balance	6,241	5,954	6,012	5,964	5,964
Charge-offs	(888)	(818)	(2,031)	(1,449)
Recoveries	343	373	648	632
Provision (credit)	1,453	317	2,533	717
Provision for acquired loans	(1)	0	(14)	(38)
Ending balance	7,148	5,826	7,148	5,826	6,012
Loans individually evaluated for impairment	195	205	195	205
Loans collectively evaluated for impairment	6,949	5,621	6,949	5,621
Acquired loans evaluated for impairment			4	0
Ending balance	7,148	5,826	7,148	5,826
Loans individually evaluated for impairment	8,396	7,965	8,396	7,965
Loans collectively evaluated for impairment	439,273	352,675	439,273	352,675
Acquired nonimpaired loans	44,902	13,990	44,902	13,990
Acquired impaired loans			246	4	369
Ending balance	$ 492,817	$ 374,634	$ 492,817	$ 374,634	$ 450,029

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Allowance for Loan Losses and Credit Quality Information - Summary of Nonaccrual and Past Due Loans (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	$ 5,081		$ 7,730
Accruing Current Balances	4,531,161		4,404,996
Acquired Impaired Loans	31,147	$ 27,072	33,614
Nonaccrual Loans	38,382		22,876
Total Loans	$ 4,605,771	3,847,515	$ 4,469,216
30-59 Days Past Due and Still Accruing, % of Total Loans	0.09%		0.12%
60-89 Days Past Due and Still Accruing, % of Total Loans	0.02%		0.04%
Greater Than 90 Days Past Due and Still Accruing, % of Total Loans	0.00%		0.01%
Total Past Due And Still Accruing, % of Total Loans	0.11%		0.17%
Accruing Current Balances, % of Total Loans	98.38%		98.57%
Acquired Impaired Loans, % of Total Loans	0.68%		0.75%
Nonaccrual Loans, % of Total Loans	0.83%		0.51%
% of Total Loans	100.00%		100.00%
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	$ 907		$ 1,785
Accruing Current Balances	1,302,051		1,277,748
Acquired Impaired Loans	6,002	1,711	6,183
Nonaccrual Loans	14,704		2,015
Total Loans	1,323,664	1,108,610	1,287,731
Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	2,759		3,967
Accruing Current Balances	244,031		257,234
Acquired Impaired Loans	852	946	860
Nonaccrual Loans	4,960		4,967
Total Loans	252,602	236,657	267,028
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	1,178		1,023
Accruing Current Balances	487,897		444,642
Acquired Impaired Loans	246	4	369
Nonaccrual Loans	3,496		3,995
Total Loans	492,817	374,634	450,029
30–59 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	4,147		5,490
30–59 Days Past Due and Still Accruing | Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	901		1,507
30–59 Days Past Due and Still Accruing | Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	2,411		3,176
30–59 Days Past Due and Still Accruing | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	598		392
60–89 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	842		1,802
60–89 Days Past Due and Still Accruing | Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	6		278
60–89 Days Past Due and Still Accruing | Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	348		638
60–89 Days Past Due and Still Accruing | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	488		346
Greater Than 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	92		438
Greater Than 90 Days Past Due and Still Accruing | Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		0
Greater Than 90 Days Past Due and Still Accruing | Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		153
Greater Than 90 Days Past Due and Still Accruing | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	92		285
Owner-occupied commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		656
Accruing Current Balances	1,094,605		1,063,306
Acquired Impaired Loans	11,839	9,757	12,122
Nonaccrual Loans	3,432		2,078
Total Loans	1,109,876	938,330	1,078,162
Owner-occupied commercial | 30–59 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		116
Owner-occupied commercial | 60–89 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		540
Owner-occupied commercial | Greater Than 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		0
Commercial mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	237		167
Accruing Current Balances	1,125,854		1,143,180
Acquired Impaired Loans	10,187	10,560	10,386
Nonaccrual Loans	10,728		9,821
Total Loans	1,147,006	990,245	1,163,554
Commercial mortgages | 30–59 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	237		167
Commercial mortgages | 60–89 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		0
Commercial mortgages | Greater Than 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		0
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		132
Accruing Current Balances	276,723		218,886
Acquired Impaired Loans	2,021	4,094	3,694
Nonaccrual Loans	1,062		0
Total Loans	279,806	$ 199,039	222,712
Construction | 30–59 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		132
Construction | 60–89 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	0		0
Construction | Greater Than 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due And Still Accruing	$ 0		$ 0

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Allowance for Loan Losses and Credit Quality Information - Analysis of Impaired Loans (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending Loan Balances	$ 68,114	$ 51,600
Loans with No Related Reserve	26,241	21,504
Loans with Related Reserve	41,873	28,400
Related Reserve	5,230	3,405
Contractual Principal Balances	81,402	64,665
Average Loan Balances	53,388	41,084
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending Loan Balances	16,906	4,250
Loans with No Related Reserve	2,632	1,395
Loans with Related Reserve	14,274	2,855
Related Reserve	1,637	505
Contractual Principal Balances	18,726	5,572
Average Loan Balances	9,771	5,053
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending Loan Balances	14,605	14,256
Loans with No Related Reserve	8,167	7,122
Loans with Related Reserve	6,438	7,134
Related Reserve	903	934
Contractual Principal Balances	17,415	17,298
Average Loan Balances	14,778	15,083
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending Loan Balances	8,436	8,021
Loans with No Related Reserve	7,234	6,561
Loans with Related Reserve	1,202	1,460
Related Reserve	199	215
Contractual Principal Balances	11,300	11,978
Average Loan Balances	8,319	7,910
Owner-occupied commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending Loan Balances	8,232	4,650
Loans with No Related Reserve	3,432	2,078
Loans with Related Reserve	4,800	2,572
Related Reserve	33	15
Contractual Principal Balances	8,662	5,129
Average Loan Balances	5,346	3,339
Commercial mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending Loan Balances	13,821	15,065
Loans with No Related Reserve	2,997	4,348
Loans with Related Reserve	10,824	10,717
Related Reserve	1,621	1,433
Contractual Principal Balances	19,091	20,716
Average Loan Balances	11,256	7,323
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending Loan Balances	6,114	3,662
Loans with No Related Reserve	1,779	0
Loans with Related Reserve	4,335	3,662
Related Reserve	837	303
Contractual Principal Balances	6,208	3,972
Average Loan Balances	$ 3,918	2,376
Collateral Dependent Impaired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Ending Loan Balances		$ 49,904

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Allowance for Loan Losses and Credit Quality Information - Schedule of Commercial Credit Exposure (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans	100.00%	100.00%
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	$ 1,323,664	$ 1,287,731
Special mention | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	18,225	17,630
Accrual | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	42,217	45,067
Nonaccrual | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	13,362	1,693
Doubtful | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	$ 1,342	$ 322
Total Special Mention and Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans	3.00%	4.00%
Total Special Mention and Substandard | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	$ 75,146	$ 64,712
Acquired impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans	1.00%	1.00%
Acquired impaired | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	$ 6,002	$ 6,183
Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans	96.00%	95.00%
Pass | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	$ 1,242,516	$ 1,216,836
Owner-occupied commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	1,109,876	1,078,162
Owner-occupied commercial | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	6,983	11,419
Owner-occupied commercial | Accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	20,893	19,871
Owner-occupied commercial | Nonaccrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	3,432	2,078
Owner-occupied commercial | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	0	0
Owner-occupied commercial | Total Special Mention and Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	31,308	33,368
Owner-occupied commercial | Acquired impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	11,839	12,122
Owner-occupied commercial | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	1,066,729	1,032,672
Commercial mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	1,147,006	1,163,554
Commercial mortgages | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	8,900	34,198
Commercial mortgages | Accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	67	239
Commercial mortgages | Nonaccrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	9,264	8,574
Commercial mortgages | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	1,464	1,247
Commercial mortgages | Total Special Mention and Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	19,695	44,258
Commercial mortgages | Acquired impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	10,187	10,386
Commercial mortgages | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	1,117,124	1,108,910
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	279,806	222,712
Construction | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	0	0
Construction | Accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	4,506	2,193
Construction | Nonaccrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	289	0
Construction | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	772	0
Construction | Total Special Mention and Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	5,567	2,193
Construction | Acquired impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	2,021	3,694
Construction | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	272,218	216,825
Total Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	3,860,352	3,752,159
Total Commercial | Special mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	34,108	63,247
Total Commercial | Accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	67,683	67,370
Total Commercial | Nonaccrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	26,347	12,345
Total Commercial | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	3,578	1,569
Total Commercial | Total Special Mention and Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	131,716	144,531
Total Commercial | Acquired impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	30,049	32,385
Total Commercial | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Commercial Loans	$ 3,698,587	$ 3,575,243

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Allowance for Loan Losses and Credit Quality Information - Schedule of Residential and Consumer Credit Exposure (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 4,605,771	$ 4,469,216	$ 3,847,515
Total	100.00%	100.00%
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 252,602	$ 267,028	236,657
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	492,817	450,029	$ 374,634
Nonperforming | Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	14,023	13,547
Nonperforming | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	8,396	7,863
Performing | Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	237,727	252,621
Performing | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 484,175	$ 441,797
Acquired impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1.00%	1.00%
Acquired impaired | Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 852	$ 860
Acquired impaired | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	246	369
Total Residential and Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 745,419	$ 717,057
Total	100.00%	100.00%
Total Residential and Consumer | Nonperforming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 22,419	$ 21,410
Total	3.00%	3.00%
Total Residential and Consumer | Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 721,902	$ 694,418
Total	97.00%	97.00%
Total Residential and Consumer | Acquired impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 1,098	$ 1,229
Total	0.00%	0.00%

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Allowance for Loan Losses and Credit Quality Information - Schedule of Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Receivables [Abstract]
Performing TDRs	$ 18,109	$ 14,100	$ 14,336
Nonperforming TDRs	10,657		8,451
Total TDRs	$ 28,766		$ 22,787

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Allowance for Loan Losses and Credit Quality Information - Schedule of Types of TDR (Detail) - 6 months ended Jun. 30, 2017	SecurityLoan	loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual payment reduction and term extension	1
Maturity Date Extension	4
Discharged in bankruptcy	8	2
Other	5
Total	18
Owner-occupied commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual payment reduction and term extension	0
Maturity Date Extension	1
Discharged in bankruptcy	0
Other	0
Total	1
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual payment reduction and term extension	1
Maturity Date Extension	1
Discharged in bankruptcy	0
Other	0
Total	2
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual payment reduction and term extension	0
Maturity Date Extension	2
Discharged in bankruptcy	0
Other	1
Total	3
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual payment reduction and term extension	0
Maturity Date Extension	0
Discharged in bankruptcy	1
Other	0
Total	1
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual payment reduction and term extension	0
Maturity Date Extension	0
Discharged in bankruptcy	7
Other	4
Total	11

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Allowance for Loan Losses and Credit Quality Information - Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Financing Receivable, Modifications [Line Items]
Total loans identified during the period	$ 1,136	$ 493	$ 7,188	$ 2,306
Commercial
Financing Receivable, Modifications [Line Items]
Total loans identified during the period	338	141	781	1,125
Commercial mortgages
Financing Receivable, Modifications [Line Items]
Total loans identified during the period	0	0	0	0
Construction
Financing Receivable, Modifications [Line Items]
Total loans identified during the period	124	0	1,836	0
Residential
Financing Receivable, Modifications [Line Items]
Total loans identified during the period	0	112	242	726
Consumer
Financing Receivable, Modifications [Line Items]
Total loans identified during the period	674	240	1,258	455
Owner-occupied commercial
Financing Receivable, Modifications [Line Items]
Total loans identified during the period	$ 0	$ 0	$ 3,071	$ 0

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Goodwill and Intangibles - Schedule of Allocation of Goodwill to Our Reportable Operating Segments for Purposes of Goodwill Impairment Testing (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Goodwill [Roll Forward]
Goodwill resulting from the acquisition beginning balance	$ 167,539
Remeasurement adjustments	(1,532)	$ (360)
Goodwill resulting from the acquisition ending balance	166,007	84,852
WSFS Bank
Goodwill [Roll Forward]
Goodwill resulting from the acquisition beginning balance	147,396
Remeasurement adjustments	(1,588)
Goodwill resulting from the acquisition ending balance	145,808	79,718
Cash Connect
Goodwill [Roll Forward]
Goodwill resulting from the acquisition beginning balance	0
Remeasurement adjustments	0
Goodwill resulting from the acquisition ending balance	0	$ 0
Wealth Management
Goodwill [Roll Forward]
Goodwill resulting from the acquisition beginning balance	20,143
Remeasurement adjustments	56
Goodwill resulting from the acquisition ending balance	$ 20,199

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Goodwill and Intangibles - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 32,507	$ 33,861
Accumulated Amortization	(8,531)	(10,153)
Total	23,976	23,708
Core deposits
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	10,658	13,128
Accumulated Amortization	(3,720)	(5,630)
Total	$ 6,938	$ 7,498
Amortization Period	10 years	10 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 17,561	$ 17,561
Accumulated Amortization	(3,413)	(2,612)
Total	14,148	14,949
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	221	1,006
Accumulated Amortization	(35)	(728)
Total	$ 186	278
Amortization Period	5 years
Loan servicing rights
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 2,135	1,708
Accumulated Amortization	(1,103)	(1,067)
Total	1,032	641
Favorable lease asset
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	1,932	458
Accumulated Amortization	(260)	(116)
Total	$ 1,672	$ 342
Minimum | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortization Period	7 years	7 years
Minimum | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Amortization Period		6 months
Minimum | Loan servicing rights
Finite-Lived Intangible Assets [Line Items]
Amortization Period	10 years	10 years
Minimum | Favorable lease asset
Finite-Lived Intangible Assets [Line Items]
Amortization Period	10 months	10 months
Maximum | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortization Period	15 years	15 years
Maximum | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Amortization Period		5 years
Maximum | Loan servicing rights
Finite-Lived Intangible Assets [Line Items]
Amortization Period	30 years	30 years
Maximum | Favorable lease asset
Finite-Lived Intangible Assets [Line Items]
Amortization Period	18 years	15 years

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Goodwill and Intangibles - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization expense on other intangible assets	$ 1,639	$ 1,015
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Amortization expense on other intangible assets	$ 1,600

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Goodwill and Intangibles - Schedule of Estimated Amortization Expense of Intangibles (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining in 2017	$ 1,525
2018	2,986
2019	2,918
2020	2,722
2021	2,396
Thereafter	11,429
Total	$ 23,976	$ 23,708

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Associate (Employee) Benefit Plans - Additional Information (Detail)		6 Months Ended
	Mar. 31, 2014	Jun. 30, 2017
Postemployment Benefits [Abstract]
Requisite service period	10 years
Amortization of unrecognized gains losses exceed percentage		10.00%

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Associate (Employee) Benefit Plans - Schedule of Net Periodic Benefit Cost Components of Postretirement Benefits (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Service cost	$ 14	$ 14	$ 29	$ 29
Interest cost	19	19	38	38
Prior service cost amortization	(19)	(19)	(38)	(26)
Net gain recognition	(18)	(16)	(34)	(31)
Net periodic benefit cost	(4)	$ (2)	(5)	$ 10
Alliance
Business Acquisition [Line Items]
Service cost	10		20
Interest cost	75		150
Expected Return on Plan Assets	(135)		(270)
Prior service cost amortization	0		0
Net gain recognition	0		0
Net periodic benefit cost	$ (50)		$ (100)

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Examination [Line Items]
Unrecognized tax benefits	$ 0		$ 0
Amortization method qualified affordable housing project investments, amortization	400,000	$ 400,000	800,000	$ 800,000
Tax benefits recorded as income tax expense			200,000
Carrying value of investment in affordable housing credits	14,600,000		14,600,000		$ 15,400,000
Tax Credit
Income Tax Examination [Line Items]
Affordable housing tax credits	$ 800,000		$ 800,000

XML

Fair Value Disclosures - Schedule of Financial Instruments Carried at Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	$ 818,495	$ 794,543
Total assets measured at fair value on a recurring basis	819,497	796,051
Other real estate owned	2,121	3,591
Loans held for sale	35,425	54,782
Impaired loans (collateral dependent),net	62,884	46,499
Total assets measured at fair value on a nonrecurring basis	100,430	104,872
Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Other liabilities	2,708	3,380
GSE | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	2,993	35,010
CMO
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	314,839	261,216
CMO | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	314,839	261,215
FNMA MBS
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	395,960	405,764
FNMA MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	395,960	405,764
FHLMC MBS
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	77,144	63,514
FHLMC MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	77,144	63,515
GNMA MBS
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	26,939	28,416
GNMA MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	26,939	28,416
Other investments | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	620	623
Other assets | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	1,002	1,508
Quoted Prices in Active Markets for Identical Asset (Level 1)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Total assets measured at fair value on a recurring basis	620	623
Other real estate owned	0	0
Loans held for sale	0	0
Impaired loans (collateral dependent),net	0	0
Total assets measured at fair value on a nonrecurring basis	0	0
Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Other liabilities	0	0
Quoted Prices in Active Markets for Identical Asset (Level 1) | GSE | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Quoted Prices in Active Markets for Identical Asset (Level 1) | CMO | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Quoted Prices in Active Markets for Identical Asset (Level 1) | FNMA MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Quoted Prices in Active Markets for Identical Asset (Level 1) | FHLMC MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Quoted Prices in Active Markets for Identical Asset (Level 1) | GNMA MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other investments | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	620	623
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other assets | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Significant Other Observable Inputs (Level 2)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Total assets measured at fair value on a recurring basis	818,877	795,428
Other real estate owned	0	0
Loans held for sale	35,425	54,782
Impaired loans (collateral dependent),net	0	0
Total assets measured at fair value on a nonrecurring basis	35,425	54,782
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Other liabilities	2,708	3,380
Significant Other Observable Inputs (Level 2) | GSE | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	2,993	35,010
Significant Other Observable Inputs (Level 2) | CMO | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	314,839	261,215
Significant Other Observable Inputs (Level 2) | FNMA MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	395,960	405,764
Significant Other Observable Inputs (Level 2) | FHLMC MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	77,144	63,515
Significant Other Observable Inputs (Level 2) | GNMA MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	26,939	28,416
Significant Other Observable Inputs (Level 2) | Other investments | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Significant Other Observable Inputs (Level 2) | Other assets | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	1,002	1,508
Significant Unobservable Inputs (Level 3)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Other real estate owned	2,121	3,591
Loans held for sale	0	0
Impaired loans (collateral dependent),net	62,884	46,499
Total assets measured at fair value on a nonrecurring basis	65,005	50,090
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Other liabilities	0	0
Significant Unobservable Inputs (Level 3) | GSE | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | CMO | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | FNMA MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | FHLMC MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | GNMA MBS | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Other investments | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	0	0
Significant Unobservable Inputs (Level 3) | Other assets | Fair Value, Measurements, Recurring
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities available for sale	$ 0	$ 0

XML

Fair Value Disclosures - Additional Information (Detail)			6 Months Ended
	Jun. 30, 2017 USD ($) secuirty	Dec. 31, 2016 USD ($)	Jun. 30, 2017 USD ($) secuirty
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	$ 818,495,000	$ 794,543,000	$ 818,495,000
Minimum discount rate on appraisals of collateral securing loan			10.00%
Maximum discount rate on appraisals of collateral securing loan			50.00%
Loan balances	68,114,000	51,600,000	$ 68,114,000
Related reserve	5,230,000	3,405,000	5,230,000
Commitments of lending operations	0	$ 0
U.S. Treasury Notes | AAA-Rated
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	3,000,000		3,000,000
Federal Agency MBS | AAA-Rated
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	814,900,000		814,900,000
Visa | Common Class B
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated value of shares	$ 38,500,000		$ 38,500,000
Penn Liberty Financial Corporation | Quoted Prices in Active Markets for Identical Asset (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities, security | secuirty	1		1

XML

Fair Value Disclosures - Book Value and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financial assets:
Investment securities available for sale	$ 818,495	$ 794,543
Investment securities held to maturity	162,598	164,346
Loans, held for sale	35,425	54,782
Loans, net	4,579,715	4,444,375
Impaired loans, net	62,884	46,499
Stock in FHLB of Pittsburgh	35,832	38,248
Accrued interest receivable	16,742	17,027
Other assets	86,693	84,892
Financial liabilities:
Deposits	4,834,050	4,738,438
Accrued interest payable	2,405	1,151
Quoted Prices in Active Markets for Identical Asset (Level 1)
Financial assets:
Loans, held for sale	0	0
Impaired loans, net	0	0
Significant Other Observable Inputs (Level 2)
Financial assets:
Loans, held for sale	35,425	54,782
Impaired loans, net	0	0
Significant Unobservable Inputs (Level 3)
Financial assets:
Loans, held for sale	0	0
Impaired loans, net	62,884	46,499
Book Value | Quoted Prices in Active Markets for Identical Asset (Level 1)
Financial assets:
Cash and cash equivalents	745,311	821,923
Book Value | Fair Value Inputs Level 1 And Level 2
Financial assets:
Investment securities available for sale	818,495	794,543
Book Value | Significant Other Observable Inputs (Level 2)
Financial assets:
Investment securities held to maturity	162,598	164,346
Loans, held for sale	35,425	54,782
Stock in FHLB of Pittsburgh	35,832	38,248
Accrued interest receivable	16,742	17,027
Financial liabilities:
Deposits	4,834,050	4,738,438
Borrowed funds	1,162,754	1,267,447
Accrued interest payable	2,405	1,151
Other liabilities	2,708	3,380
Book Value | Fair Value Inputs Level 2 And Level 3
Financial assets:
Loans, net	4,516,831	4,397,876
Book Value | Significant Unobservable Inputs (Level 3)
Financial assets:
Impaired loans, net	62,884	46,499
Other assets	17,229	9,189
Financial liabilities:
Standby letters of credit	503	468
Fair Value | Quoted Prices in Active Markets for Identical Asset (Level 1)
Financial assets:
Cash and cash equivalents	745,311	821,923
Fair Value | Fair Value Inputs Level 1 And Level 2
Financial assets:
Investment securities available for sale	818,495	794,543
Fair Value | Significant Other Observable Inputs (Level 2)
Financial assets:
Investment securities held to maturity	163,903	163,232
Loans, held for sale	35,425	54,782
Stock in FHLB of Pittsburgh	35,832	38,248
Accrued interest receivable	16,742	17,027
Financial liabilities:
Deposits	4,482,483	4,423,921
Borrowed funds	1,159,990	1,264,170
Accrued interest payable	2,405	1,151
Other liabilities	2,708	3,380
Fair Value | Fair Value Inputs Level 2 And Level 3
Financial assets:
Loans, net	4,459,104	4,300,963
Fair Value | Significant Unobservable Inputs (Level 3)
Financial assets:
Impaired loans, net	62,884	46,499
Other assets	41,702	15,787
Financial liabilities:
Standby letters of credit	$ 503	$ 468

XML

Derivative Financial Instruments - Fair Value of Derivative Instruments (Detail) $ in Thousands	Jun. 30, 2017 USD ($) instrument	Dec. 31, 2016 USD ($)
Derivative [Line Items]
Notional	$ 526,900	$ 518,800
Designated as Hedging Instrument
Derivative [Line Items]
Count | instrument	3
Notional	$ 75,000
Liability Derivatives (Fair Value)	2,612
Other liabilities | Designated as Hedging Instrument
Derivative [Line Items]
Liability Derivatives (Fair Value)	$ 2,612

XML

Derivative Financial Instruments - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017 USD ($) instrument	Dec. 31, 2016 USD ($)
Derivative [Line Items]
Derivative hedge Ineffectiveness gain (loss)	$ 0
Interest rate cash flow hedge increase decrease interest expense to be reclassified during next 12 months net (less than)	200,000
Interest rate cash flow hedge gain (loss) reclassified to earnings, net	100,000
Notional	526,900,000	$ 518,800,000
Collateral value against obligations	$ 3,400,000
Designated as Hedging Instrument
Derivative [Line Items]
Count | instrument	3
Notional	$ 75,000,000
Accrued Liabilities
Derivative [Line Items]
Termination value of derivatives	$ 2,600,000

XML

Derivative Financial Instruments - Effect of Derivative Instruments on the Income Statement (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative [Line Items]
Amount of Gain Recognized in OCI on Derivative (Effective Portion)	$ 263	$ 0	$ 150	$ 0
Interest Rate Products
Derivative [Line Items]
Amount of Gain Recognized in OCI on Derivative (Effective Portion)	$ 263	$ 0	$ 150	$ 0

XML

Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017 Business_Line Segment
Segment Reporting [Abstract]
Number of businesses | Segment	3
Number of business lines | Business_Line	6

XML

Segment Information - Details of Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Interest income	$ 62,334	$ 51,503	$ 123,160	$ 101,549
Noninterest income	31,676	25,507	59,768	49,176
Total revenue	94,010	77,010	182,928	150,725
Interest expense	8,020	5,089	15,743	9,779
Noninterest expenses	52,727	44,685	104,233	88,483
Provision for loan losses	1,843	1,254	4,005	2,034
Total expenses	62,590	51,028	123,981	100,296
Income before taxes	31,420	25,982	58,947	50,429
Income tax provision	10,850	8,504	19,440	17,181
Net income	20,570	17,478	39,507	33,248
Capital expenditures	1,990	2,645	4,354	3,878
Inter-Segment Eliminations
Segment Reporting Information [Line Items]
Interest income	4,682	2,787	8,743	5,743
Noninterest income	2,153	2,246	4,544	4,523
Total revenue	6,835	5,033	13,287	10,266
Interest expense	4,682	2,787	8,743	5,743
Noninterest expenses	2,153	2,246	4,544	4,523
Total expenses	6,835	5,033	13,287	10,266
External Customer
Segment Reporting Information [Line Items]
Total revenue	100,845	82,043	196,215	160,991
Total expenses	69,425	56,061	137,268	110,562
WSFS Bank
Segment Reporting Information [Line Items]
Interest income	60,234	49,492	118,922	97,530
Noninterest income	12,049	10,173	22,216	20,025
Total revenue	72,283	59,665	141,138	117,555
Interest expense	7,739	4,896	15,202	9,393
Noninterest expenses	38,782	34,462	77,742	68,274
Provision for loan losses	1,316	1,191	3,032	2,006
Total expenses	47,837	40,549	95,976	79,673
Income before taxes	25,917	20,375	48,501	40,150
Capital expenditures	1,559	2,235	3,647	3,446
WSFS Bank | Inter-Segment Eliminations
Segment Reporting Information [Line Items]
Interest income	2,247	1,135	4,243	2,196
Noninterest income	1,906	2,011	4,070	4,071
Total revenue	4,153	3,146	8,313	6,267
Interest expense	2,435	1,652	4,500	3,547
Noninterest expenses	247	235	474	452
Total expenses	2,682	1,887	4,974	3,999
WSFS Bank | External Customer
Segment Reporting Information [Line Items]
Total revenue	76,436	62,811	149,451	123,822
Total expenses	50,519	42,436	100,950	83,672
Cash Connect
Segment Reporting Information [Line Items]
Interest income	0	0	0	0
Noninterest income	10,514	8,796	20,191	17,068
Total revenue	10,514	8,796	20,191	17,068
Interest expense	0	0	0	0
Noninterest expenses	6,591	5,489	12,726	10,938
Provision for loan losses	0	0	0	0
Total expenses	6,591	5,489	12,726	10,938
Income before taxes	1,875	2,162	3,488	3,908
Capital expenditures	68	404	90	424
Cash Connect | Inter-Segment Eliminations
Segment Reporting Information [Line Items]
Interest income	0	0	0	0
Noninterest income	207	210	398	403
Total revenue	207	210	398	403
Interest expense	1,582	628	2,987	1,183
Noninterest expenses	673	727	1,388	1,442
Total expenses	2,255	1,355	4,375	2,625
Cash Connect | External Customer
Segment Reporting Information [Line Items]
Total revenue	10,721	9,006	20,589	17,471
Total expenses	8,846	6,844	17,101	13,563
Wealth Management
Segment Reporting Information [Line Items]
Interest income	2,100	2,011	4,238	4,019
Noninterest income	9,113	6,538	17,361	12,083
Total revenue	11,213	8,549	21,599	16,102
Interest expense	281	193	541	386
Noninterest expenses	7,354	4,734	13,765	9,271
Provision for loan losses	527	63	973	28
Total expenses	8,162	4,990	15,279	9,685
Income before taxes	3,628	3,445	6,958	6,371
Capital expenditures	363	6	617	8
Wealth Management | Inter-Segment Eliminations
Segment Reporting Information [Line Items]
Interest income	2,435	1,652	4,500	3,547
Noninterest income	40	25	76	49
Total revenue	2,475	1,677	4,576	3,596
Interest expense	665	507	1,256	1,013
Noninterest expenses	1,233	1,284	2,682	2,629
Total expenses	1,898	1,791	3,938	3,642
Wealth Management | External Customer
Segment Reporting Information [Line Items]
Total revenue	13,688	10,226	26,175	19,698
Total expenses	$ 10,060	$ 6,781	$ 19,217	$ 13,327

XML

Segment Information - Details of Segment Information- Statement of Financial Condition (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 745,311	$ 821,923	$ 703,893	$ 561,179
Goodwill	166,007	167,539	84,852
Other segment assets	5,911,109		5,045,362
Total assets	6,822,427	6,765,270	5,834,107
WSFS Bank
Segment Reporting Information [Line Items]
Cash and cash equivalents	96,306		84,919
Goodwill	145,808	147,396	79,718
Other segment assets	5,690,046		4,843,166
Total assets	5,932,160		5,007,803
Cash Connect
Segment Reporting Information [Line Items]
Cash and cash equivalents	643,506		617,339
Goodwill	0	$ 0	0
Other segment assets	5,018		3,419
Total assets	648,524		620,758
Wealth Management
Segment Reporting Information [Line Items]
Cash and cash equivalents	5,499		1,635
Goodwill	20,199		5,134
Other segment assets	216,045		198,777
Total assets	$ 241,743		$ 205,546

XML

Indemnifications and Guarantees - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($) loan Financial_Institution	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) Transaction loan Financial_Institution	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($) loan
Guarantor Obligations [Line Items]
Provision for losses at the time of sale	$ 1,843,000	$ 1,254,000	$ 4,005,000	$ 2,034,000
Number of unrelated financial institutions | Financial_Institution	3		3
Derivative transaction held for guarantee | loan	133		133		134
Notional	$ 526,900,000		$ 526,900,000		$ 518,800,000
Aggregate fair value of swaps to customers	10,100,000		10,100,000		$ 10,900,000
Reserves for swap guarantees	$ 0		$ 0
Minimum
Guarantor Obligations [Line Items]
Notional amount maturity period			1 year
Maximum
Guarantor Obligations [Line Items]
Notional amount maturity period			10 years
Secondary Market Loan Sales
Guarantor Obligations [Line Items]
Provision for losses at the time of sale			$ 0
Number of loans repurchased | Transaction			0

XML

Change in Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			$ 687,336	$ 580,471
Ending Balance	$ 722,623	$ 617,196	722,623	617,196
Net change in investment securities available for sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(7,128)	8,496	(8,194)	(1,887)
Other comprehensive income (loss) before reclassifications	3,241	4,683	4,513	15,255
Less: Amounts reclassified from accumulated other comprehensive loss	(455)	(338)	(661)	(527)
Net current-period other comprehensive income (loss)	2,786	4,345	3,852	14,728
Ending Balance	(4,342)	12,841	(4,342)	12,841
Net change in securities held to maturity
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	1,291	1,692	1,392	1,795
Other comprehensive income (loss) before reclassifications	0	0	0	0
Less: Amounts reclassified from accumulated other comprehensive loss	(97)	(100)	(198)	(203)
Net current-period other comprehensive income (loss)	(97)	(100)	(198)	(203)
Ending Balance	1,194	1,592	1,194	1,592
Net change in defined benefit plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	934	1,266	957	788
Other comprehensive income (loss) before reclassifications	0	0	0	0
Less: Amounts reclassified from accumulated other comprehensive loss	(22)	(22)	(45)	456
Net current-period other comprehensive income (loss)	(22)	(22)	(45)	456
Ending Balance	912	1,244	912	1,244
Net change in fair value of derivative used for cash flow hedge
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(1,884)	0	(1,772)	0
Other comprehensive income (loss) before reclassifications	262	0	150	0
Less: Amounts reclassified from accumulated other comprehensive loss	0	0	0	0
Net current-period other comprehensive income (loss)	262	0	150	0
Ending Balance	(1,622)	0	(1,622)	0
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(6,787)	11,454	(7,617)	696
Other comprehensive income (loss) before reclassifications	3,503	4,683	4,663	15,255
Less: Amounts reclassified from accumulated other comprehensive loss	(574)	(460)	(904)	(274)
Net current-period other comprehensive income (loss)	2,929	4,223	3,759	14,981
Ending Balance	$ (3,858)	$ 15,677	$ (3,858)	$ 15,677

XML

Change in Accumulated Other Comprehensive Income - Components of Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains on securities transactions	$ 708	$ 545	$ 1,028	$ 850
Income taxes	(10,850)	(8,504)	(19,440)	(17,181)
Income before taxes	31,420	25,982	58,947	50,429
Net income	20,570	17,478	39,507	33,248
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(574)	(460)	(904)	(274)
Reclassification out of Accumulated Other Comprehensive Income | Net change in defined benefit plan
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income taxes	15	13	27	(280)
Prior service (credits) costs	(19)	(19)	(38)	(26)
Actuarial (gains) losses	(18)	(16)	(34)	762
Income before taxes	(37)	(35)	(72)	736
Net income	(22)	(22)	(45)	456
Reclassification out of Accumulated Other Comprehensive Income | Realized Gains on Securities Transactions | Net change in investment securities available for sale
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains on securities transactions	(708)	(545)	(1,028)	(850)
Income taxes	253	207	367	323
Net income	(455)	(338)	(661)	(527)
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Net Unrealized Gains to Income During Period | Net change in investment securities available for sale
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income taxes	62	62	121	127
Amortization of net unrealized gains to income during the period	(159)	(162)	(319)	(330)
Net income	$ (97)	$ (100)	$ (198)	$ (203)

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Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Total deposits from related parties	$ 7.1	$ 7.1	$ 3.6
Loans
Related Party Transaction [Line Items]
Related party loan repayment	1.1	1.1	$ 1.3
New Loans And Credit Line Advance To Related Parties
Related Party Transaction [Line Items]
New loans and credit line advance to related parties		0.4
Repayments from related party debt	$ 0.6	$ 0.6

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Legal and Other Proceedings - Additional Information (Detail)		6 Months Ended
	Apr. 07, 2015 USD ($) policy	Jun. 30, 2017 USD ($)
Subsequent Event [Line Items]
Additions to other significant pending legal or other proceedings		$ 0
Insurance Claims | Universitas Education, LLC | Pending Litigation
Subsequent Event [Line Items]
Loss contingency, number of insurance policies | policy	2
Loss contingency, insurance policy face amount	$ 30,000,000
Damages Sought | Universitas Education, LLC | Pending Litigation
Subsequent Event [Line Items]
Loss contingency, damages sought	27,000,000
Interest And Other Costs | Universitas Education, LLC | Pending Litigation
Subsequent Event [Line Items]
Loss contingency, damages sought	$ 26,000,000