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