QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in its charter) | ||||||||||||||||||||
(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
PART I. Financial Information | Page | |||||||
Item 1. | Financial Statements (Unaudited) | |||||||
Consolidated Statements of Income for the Three Months Ended March 31, 2023 and 2022 | ||||||||
Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2023 and 2022 | ||||||||
Consolidated Statements of Financial Condition as of March 31, 2023 and December 31, 2022 | ||||||||
Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2023 and 2022 | ||||||||
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 | ||||||||
Notes to the Consolidated Financial Statements for the Three Months Ended March 31, 2023 | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. Other Information | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands, except per share and share data) | 2023 | 2022 | ||||||||||||
Interest income: | ||||||||||||||
Interest and fees on loans and leases | $ | $ | ||||||||||||
Interest on mortgage-backed securities | ||||||||||||||
Interest and dividends on investment securities: | ||||||||||||||
Taxable | ||||||||||||||
Tax-exempt | ||||||||||||||
Other interest income | ||||||||||||||
Interest expense: | ||||||||||||||
Interest on deposits | ||||||||||||||
Interest on Federal Home Loan Bank advances | ||||||||||||||
Interest on senior and subordinated debt | ||||||||||||||
Interest on federal funds purchased | ||||||||||||||
Interest on trust preferred borrowings | ||||||||||||||
Interest on other borrowings | ||||||||||||||
Net interest income | ||||||||||||||
Provision for credit losses | ||||||||||||||
Net interest income after provision for credit losses | ||||||||||||||
Noninterest income: | ||||||||||||||
Credit/debit card and ATM income | ||||||||||||||
Investment management and fiduciary income | ||||||||||||||
Deposit service charges | ||||||||||||||
Mortgage banking activities, net | ||||||||||||||
Loan and lease fee income | ||||||||||||||
Unrealized loss on equity investments, net | ( | ( | ||||||||||||
Bank owned life insurance income | ||||||||||||||
Other income | ||||||||||||||
Noninterest expense: | ||||||||||||||
Salaries, benefits and other compensation | ||||||||||||||
Occupancy expense | ||||||||||||||
Equipment expense | ||||||||||||||
Data processing and operations expenses | ||||||||||||||
Professional fees | ||||||||||||||
Marketing expense | ||||||||||||||
FDIC expenses | ||||||||||||||
Loan workout and other credit costs | ( | |||||||||||||
Corporate development expense | ||||||||||||||
Restructuring expense | ( | |||||||||||||
Other operating expense | ||||||||||||||
Income before taxes | ||||||||||||||
Income tax provision | ||||||||||||||
Net income | $ | $ | ||||||||||||
Less: Net income attributable to noncontrolling interest | ||||||||||||||
Net income attributable to WSFS | $ | $ | ||||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ | ||||||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||
Basic | ||||||||||||||
Diluted |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||||||||
Net income | $ | $ | ||||||||||||
Less: Net income attributable to noncontrolling interest | ||||||||||||||
Net income attributable to WSFS | ||||||||||||||
Other comprehensive income (loss): | ||||||||||||||
Net change in unrealized gains (losses) on investment securities available-for-sale | ||||||||||||||
Net unrealized gains (losses) arising during the period, net of tax expense (benefit) of $ | ( | |||||||||||||
Net change in securities held-to-maturity | ||||||||||||||
Amortization of unrealized losses (gains) on available-for-sale securities reclassified to held-to-maturity, net of tax (benefit) expense of $( | ( | |||||||||||||
Net change in unfunded pension liability | ||||||||||||||
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, net of tax benefit of $ | ( | ( | ||||||||||||
Net change in cash flow hedge | ||||||||||||||
Net unrealized gain arising during the period, net of tax expense of $ | ||||||||||||||
Amortization of unrealized gain on terminated cash flow hedges, net of tax benefit of $ | ( | ( | ||||||||||||
( | ||||||||||||||
Net change in equity method investments | ||||||||||||||
Net change in other comprehensive income of equity method investments, net of tax benefit of $ | ( | |||||||||||||
Total other comprehensive income (loss) | ( | |||||||||||||
Total comprehensive income (loss) | $ | $ | ( |
(Dollars in thousands, except per share and share data) | March 31, 2023 | December 31, 2022 | ||||||||||||
Assets: | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Cash in non-owned ATMs | ||||||||||||||
Interest-bearing deposits in other banks including collateral (restricted cash) of $ | ||||||||||||||
Total cash, cash equivalents, and restricted cash | ||||||||||||||
Investment securities, available-for-sale (amortized cost of $ | ||||||||||||||
Investment securities, held-to-maturity, net of allowance for credit losses of $ | ||||||||||||||
Other investments | ||||||||||||||
Loans, held for sale at fair value | ||||||||||||||
Loans and leases, net of allowance for credit losses of $ | ||||||||||||||
Bank owned life insurance | ||||||||||||||
Stock in Federal Home Loan Bank (FHLB) of Pittsburgh at cost | ||||||||||||||
Other real estate owned | ||||||||||||||
Accrued interest receivable | ||||||||||||||
Premises and equipment | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||
Liabilities: | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing | $ | $ | ||||||||||||
Interest-bearing | ||||||||||||||
Total deposits | ||||||||||||||
FHLB advances | ||||||||||||||
Trust preferred borrowings | ||||||||||||||
Senior and subordinated debt | ||||||||||||||
Other borrowed funds | ||||||||||||||
Accrued interest payable | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Stockholders’ Equity: | ||||||||||||||
Common stock $ | ||||||||||||||
Capital in excess of par value | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Treasury stock at cost, | ( | ( | ||||||||||||
Total stockholders’ equity of WSFS | ||||||||||||||
Noncontrolling interest | ( | ( | ||||||||||||
Total stockholders' equity | ||||||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share and share amounts) | Shares | Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Stockholders' Equity of WSFS | Non-controlling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividend, $ | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling shareholders | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock including proceeds from exercise of common stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock (1) | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share and share amounts) | Shares | Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Stockholders' Equity of WSFS | Non-controlling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividend, $ | — | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling shareholders | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock including proceeds from exercise of common stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in acquisition of BMT | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest assumed in acquisition | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock (1) | — | — | ( | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||||||||
Operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Provision for credit losses | ||||||||||||||
Depreciation of premises and equipment, net | ||||||||||||||
Accretion of fees and discounts, net | ( | ( | ||||||||||||
Amortization of intangible assets | ||||||||||||||
Amortization of right-of-use lease assets | ||||||||||||||
Decrease in operating lease liability | ( | ( | ||||||||||||
Income from mortgage banking activities, net | ( | ( | ||||||||||||
Gain on sale of other real estate owned and valuation adjustments, net | ( | |||||||||||||
Stock-based compensation expense | ||||||||||||||
Unrealized loss on equity investments, net | ||||||||||||||
Deferred income tax expense (benefit) | ( | |||||||||||||
Increase in accrued interest receivable | ( | ( | ||||||||||||
Decrease in other assets | ||||||||||||||
Origination of loans held for sale | ( | ( | ||||||||||||
Proceeds from sales of loans held for sale | ||||||||||||||
Decrease in value of bank owned life insurance | ||||||||||||||
Increase in capitalized interest, net | ( | ( | ||||||||||||
Increase in accrued interest payable | ||||||||||||||
Decrease in other liabilities | ( | ( | ||||||||||||
Net cash provided by operating activities | $ | $ | ||||||||||||
Investing activities: | ||||||||||||||
Repayments, maturities and calls of investment securities held-to-maturity | ||||||||||||||
Purchases of investment securities available-for-sale | ( | ( | ||||||||||||
Repayments, maturities and calls of investment securities available-for-sale | ||||||||||||||
Proceeds from bank-owned life insurance death benefit | ||||||||||||||
Net (increase) decrease in loans | ( | |||||||||||||
Net cash from business combinations | ||||||||||||||
Purchase of loans held-for-investment | ( | ( | ||||||||||||
Purchases of stock of Federal Home Loan Bank of Pittsburgh | ( | |||||||||||||
Redemptions of stock of Federal Home Loan Bank of Pittsburgh | ||||||||||||||
Sales of other real estate owned | ||||||||||||||
Investment in premises and equipment | ( | ( | ||||||||||||
Sales of premises and equipment | ||||||||||||||
Net cash used in investing activities | $ | ( | $ |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||||||||
Financing activities: | ||||||||||||||
Net (decrease) increase in demand and saving deposits | $ | ( | $ | |||||||||||
Increase (decrease) in time deposits | ( | |||||||||||||
Increase in brokered deposits | ||||||||||||||
Receipts from FHLB advances | ||||||||||||||
Repayments of FHLB advances | ( | |||||||||||||
Receipts from federal funds purchased | ||||||||||||||
Repayments of federal funds purchased | ( | |||||||||||||
Contribution from noncontrolling shareholders | ( | |||||||||||||
Cash dividend | ( | ( | ||||||||||||
Issuance of common stock including proceeds from exercise of common stock options | ||||||||||||||
Redemption of senior and subordinated debt | ( | |||||||||||||
Repurchases of common shares | ( | ( | ||||||||||||
Net cash (used in) provided by financing activities | $ | $ | ||||||||||||
Increase in cash, cash equivalents, and restricted cash | ||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | ||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | ||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest | $ | $ | ||||||||||||
Income taxes | ||||||||||||||
Non-cash information: | ||||||||||||||
Loans transferred to other real estate owned | $ | $ | ||||||||||||
Loans transferred to portfolio from held-for-sale at fair value | ||||||||||||||
Fair value of assets acquired, net of cash received | ||||||||||||||
Fair value of liabilities assumed | ||||||||||||||
Three Months Ended March 31, | |||||||||||
(Dollars in thousands) | 2023 | 2022 | |||||||||
Bailment fees | $ | $ | |||||||||
Interchange fees | |||||||||||
Other card and ATM fees | |||||||||||
Total credit/debit card and ATM income | $ | $ |
Three Months Ended March 31, | |||||||||||
(Dollars in thousands) | 2023 | 2022 | |||||||||
Trust fees | $ | $ | |||||||||
Wealth management and advisory fees | |||||||||||
Total investment management and fiduciary income | $ | $ |
Three Months Ended March 31, | |||||||||||
(Dollars in thousands) | 2023 | 2022 | |||||||||
Service fees | $ | $ | |||||||||
Return and overdraft fees | |||||||||||
Other deposit service fees | |||||||||||
Total deposit service charges | $ | $ |
Three Months Ended March 31, | |||||||||||
(Dollars in thousands) | 2023 | 2022 | |||||||||
Managed service fees | $ | $ | |||||||||
Currency preparation | |||||||||||
ATM loss protection | |||||||||||
Capital markets revenue | |||||||||||
Miscellaneous products and services(1) | ( | ||||||||||
Total other income | $ | $ |
Three Months Ended March 31, | |||||||||||
(Dollars and shares in thousands, except per share data) | 2023 | 2022 | |||||||||
Numerator: | |||||||||||
Net income attributable to WSFS | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted average basic shares | |||||||||||
Dilutive potential common shares | |||||||||||
Weighted average fully diluted shares | |||||||||||
Earnings per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Outstanding common stock equivalents having no dilutive effect |
March 31, 2023 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
Available-for-Sale Debt Securities | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligation (CMO) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Fannie Mae (FNMA) mortgage-backed securities (MBS) | ||||||||||||||||||||||||||||||||
Freddie Mac (FHLMC) MBS | ||||||||||||||||||||||||||||||||
Ginnie Mae (GNMA) MBS | ||||||||||||||||||||||||||||||||
Government-sponsored enterprises (GSE) agency notes | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Held-to-Maturity Debt Securities(1) | ||||||||||||||||||||||||||||||||
FNMA MBS | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
State and political subdivisions | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
December 31, 2022 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
Available-for-Sale Debt Securities | ||||||||||||||||||||||||||||||||
CMO | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
FNMA MBS | ||||||||||||||||||||||||||||||||
FHLMC MBS | ||||||||||||||||||||||||||||||||
GNMA MBS | ||||||||||||||||||||||||||||||||
GSE agency notes | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Held-to-Maturity Debt Securities(1) | ||||||||||||||||||||||||||||||||
FNMA MBS | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
State and political subdivisions | ||||||||||||||||||||||||||||||||
Foreign bonds | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Available-for-Sale | ||||||||||||||
Amortized | Fair | |||||||||||||
(Dollars in thousands) | Cost | Value | ||||||||||||
March 31, 2023 (1) | ||||||||||||||
Within one year | $ | $ | ||||||||||||
After one year but within five years | ||||||||||||||
After five years but within ten years | ||||||||||||||
After ten years | ||||||||||||||
$ | $ | |||||||||||||
December 31, 2022 (1) | ||||||||||||||
Within one year | $ | $ | ||||||||||||
After one year but within five years | ||||||||||||||
After five years but within ten years | ||||||||||||||
After ten years | ||||||||||||||
$ | $ |
Held-to-Maturity | ||||||||||||||
Amortized | Fair | |||||||||||||
(Dollars in thousands) | Cost | Value | ||||||||||||
March 31, 2023 (1) | ||||||||||||||
Within one year | $ | $ | ||||||||||||
After one year but within five years | ||||||||||||||
After five years but within ten years | ||||||||||||||
After ten years | ||||||||||||||
$ | $ | |||||||||||||
December 31, 2022 (1) | ||||||||||||||
Within one year | $ | $ | ||||||||||||
After one year but within five years | ||||||||||||||
After five years but within ten years | ||||||||||||||
After ten years | ||||||||||||||
$ | $ |
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 debt securities: | ||||||||||||||||||||||||||||||||||||||
CMO | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
FNMA MBS | ||||||||||||||||||||||||||||||||||||||
FHLMC MBS | ||||||||||||||||||||||||||||||||||||||
GNMA MBS | ||||||||||||||||||||||||||||||||||||||
GSE agency notes | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
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 debt securities: | ||||||||||||||||||||||||||||||||||||||
CMO | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
FNMA MBS | ||||||||||||||||||||||||||||||||||||||
FHLMC MBS | ||||||||||||||||||||||||||||||||||||||
GNMA MBS | ||||||||||||||||||||||||||||||||||||||
GSE agency notes | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | FNMA MBS | State and political subdivisions | ||||||||||||
A+ rated or higher | $ | $ | ||||||||||||
Not rated | ||||||||||||||
Ending balance | $ | $ |
(Dollars in thousands) | FNMA MBS | State and political subdivisions | Foreign bonds | |||||||||||||||||
A+ rated or higher | $ | $ | $ | |||||||||||||||||
Not rated | ||||||||||||||||||||
Ending balance | $ | $ | $ |
Three months ended March 31, | ||||||||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||||||||
Allowance for credit losses: | ||||||||||||||
Beginning balance | $ | $ | ||||||||||||
Provision for credit losses | ( | |||||||||||||
Ending balance | $ | $ |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||||||||
Commercial and industrial | $ | $ | ||||||||||||
Owner-occupied commercial | ||||||||||||||
Commercial mortgages | ||||||||||||||
Construction | ||||||||||||||
Commercial small business leases | ||||||||||||||
Residential(1) | ||||||||||||||
Consumer(2) | ||||||||||||||
Less: | ||||||||||||||
Allowance for credit losses | ||||||||||||||
Net loans and leases | $ | $ |
(Dollars in thousands) | Commercial and Industrial(1) | Owner-occupied Commercial | Commercial Mortgages | Construction | Residential(2) | Consumer(3) | Total | |||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | ||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
Provision | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Period-end allowance allocated to: | ||||||||||||||||||||||||||||||||||||||||||||
Loans evaluated on an individual basis | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Loans evaluated on a collective basis | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Period-end loan balances: | ||||||||||||||||||||||||||||||||||||||||||||
Loans evaluated on an individual basis | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Loans evaluated on a collective basis | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Commercial and Industrial(1) | Owner - occupied Commercial | Commercial Mortgages | Construction | Residential(2) | Consumer(3) | Total | |||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | ||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Initial allowance on acquired PCD loans | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
(Credit) provision(4) | ( | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Period-end allowance allocated to: | ||||||||||||||||||||||||||||||||||||||||||||
Loans evaluated on an individual basis | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Loans evaluated on a collective basis | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Period-end loan balances: | ||||||||||||||||||||||||||||||||||||||||||||
Loans evaluated on an individual basis | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Loans evaluated on a collective basis | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ |
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30–89 Days Past Due and Still Accruing | Greater Than 90 Days Past Due and Still Accruing | Total Past Due And Still Accruing | Accruing Current Balances | Nonaccrual Loans With No Allowance | Nonaccrual Loans With An Allowance | Total Loans | |||||||||||||||||||||||||||||||||||||
Commercial and industrial(1) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Owner-occupied commercial | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||||||||
Residential(2) | ||||||||||||||||||||||||||||||||||||||||||||
Consumer(3) | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
% of Total Loans | % | % | % | % | % | % | % |
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30–89 Days Past Due and Still Accruing | Greater Than 90 Days Past Due and Still Accruing | Total Past Due And Still Accruing | Accruing Current Balances | Nonaccrual Loans(1) | Total Loans | ||||||||||||||||||||||||||||||||
Commercial and industrial(2) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Owner-occupied commercial | ||||||||||||||||||||||||||||||||||||||
Commercial mortgages | ||||||||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||||||
Residential(3) | ||||||||||||||||||||||||||||||||||||||
Consumer(4) | ||||||||||||||||||||||||||||||||||||||
Total(4) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
% of Total Loans | % | % | % | % | % | % |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(Dollars in thousands) | Property | Equipment and other | Property | Equipment and other | ||||||||||||||||||||||
Commercial and industrial(1) | $ | $ | $ | $ | ||||||||||||||||||||||
Owner-occupied commercial | ||||||||||||||||||||||||||
Commercial mortgages | ||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Residential(2) | ||||||||||||||||||||||||||
Consumer(3) | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving loans amortized cost basis | Revolving loans converted to term | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial(1): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Current-period gross writeoffs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Owner-occupied commercial: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Current-period gross writeoffs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgages: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Current-period gross writeoffs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Current-period gross writeoffs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Residential(2): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Current-period gross writeoffs | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer(3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Current-period gross writeoffs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving loans amortized cost basis | Revolving loans converted to term | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial(1): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Owner-occupied commercial: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgages: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard or Lower | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential(2): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer(3): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Term Extension | More-Than-Insignificant Payment Delay | Combination- Term Extension and Payment Delay | Combination- Term Extension and Interest Rate Reduction | Combination - Payment Delay and Interest Rate Reduction | Total | % of Total Loan Category | |||||||||||||||||||||||||||||||||||||
Commercial and industrial(1) | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||||||||||||||||||||
Owner-occupied commercial | % | |||||||||||||||||||||||||||||||||||||||||||
Commercial mortgages | % | |||||||||||||||||||||||||||||||||||||||||||
Consumer(2) | % | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||||||||||||||||||||
Term Extension(1) | Interest Rate Reduction(2) | More-Than-Insignificant Payment Delay(3) | ||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||
Owner-occupied commercial | ||||||||||||||||||||
Commercial mortgages | ||||||||||||||||||||
Consumer |
March 31, 2023 | ||||||||||||||||||||||||||
(Dollars in thousands) | 30-89 Days Past Due and Still Accruing | 90+ Days Past Due and Still Accruing | Accruing Current Balances | Total | ||||||||||||||||||||||
Commercial and industrial(1) | $ | $ | $ | $ | ||||||||||||||||||||||
Owner-occupied commercial | ||||||||||||||||||||||||||
Commercial mortgages | ||||||||||||||||||||||||||
Consumer(2) | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(Dollars in thousands) | December 31, 2022 | |||||||
Performing TDRs | $ | |||||||
Nonperforming TDRs | ||||||||
Total TDRs | $ |
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||
Contractual payment reduction and term extension | Maturity Date Extension | Discharged in bankruptcy | Other(1) | Total | ||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Total |
Three Months Ended March 31, 2022 | ||||||||||||||
(Dollars in thousands) | Pre Modification | Post Modification | ||||||||||||
Commercial | $ | ( | $ | ( | ||||||||||
Residential | $ | $ | ||||||||||||
Consumer | ||||||||||||||
Total(1)(2) | $ | $ |
Three months ended | ||||||||||||||
(Dollars in thousands) | March 31, 2023 | March 31, 2022 | ||||||||||||
Operating lease cost (1) | $ | $ | ||||||||||||
Sublease income | ( | ( | ||||||||||||
Net lease cost | $ | $ |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||||||||
$ | $ | |||||||||||||
$ | $ | |||||||||||||
Lease term and discount rate | ||||||||||||||
Weighted average remaining lease term (in years) | ||||||||||||||
Weighted average discount rate | % | % |
(Dollars in thousands) | March 31, 2023 | |||||||
Remaining in 2022 | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
After 2026 | ||||||||
Total lease payments | ||||||||
Less: Interest | ( | |||||||
Present value of lease liabilities | $ | |||||||
Three months ended | ||||||||||||||
(Dollars in thousands) | March 31, 2023 | March 31, 2022 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating leases | $ | $ | ||||||||||||
Right of use assets obtained in exchange for new operating lease liabilities (non-cash) |
Three months ended | ||||||||||||||
(Dollars in thousands) | March 31, 2023 | March 31, 2022 | ||||||||||||
Direct financing leases: | ||||||||||||||
Interest income on lease receivable | $ | $ | ||||||||||||
Interest income on deferred fees and costs, net | ( | ( | ||||||||||||
$ | $ |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||||||||
Lease receivables | $ | $ | ||||||||||||
Unearned income | ( | ( | ||||||||||||
Deferred fees and costs | ||||||||||||||
Net investment in direct financing leases | $ | $ |
(Dollars in thousands) | WSFS Bank | Cash Connect® | Wealth Management | Consolidated Company | |||||||||||||||||||
December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Goodwill adjustments | |||||||||||||||||||||||
March 31, 2023 | $ | $ | $ | $ |
(Dollars in thousands) | Gross Intangible Assets | Accumulated Amortization | Net Intangible Assets | Amortization Period | |||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Core deposits | $ | $ | ( | $ | |||||||||||||||||||
Customer relationships | ( | ||||||||||||||||||||||
Tradename | — | indefinite | |||||||||||||||||||||
Loan servicing rights(1) | ( | ||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Core deposits | $ | $ | ( | $ | |||||||||||||||||||
Customer relationships | ( | ||||||||||||||||||||||
Non-compete agreements | ( | ||||||||||||||||||||||
Tradename | — | indefinite | |||||||||||||||||||||
Loan servicing rights(2) | ( | ||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ |
(Dollars in thousands) | March 31, 2023 | ||||
Remaining in 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total | $ |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||||||||||||||
Noninterest-bearing: | ||||||||||||||||||||
Noninterest demand | $ | $ | ||||||||||||||||||
Total noninterest-bearing | $ | $ | ||||||||||||||||||
Interest-bearing: | ||||||||||||||||||||
Interest-bearing demand | $ | $ | ||||||||||||||||||
Savings | ||||||||||||||||||||
Money market | ||||||||||||||||||||
Customer time deposits | ||||||||||||||||||||
Brokered deposits | ||||||||||||||||||||
Total interest-bearing | ||||||||||||||||||||
Total deposits | $ | $ |
March 31, 2023 | ||||||||||||||||||||||||||
(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 | $ | $ | $ | $ | ||||||||||||||||||||||
FNMA MBS | ||||||||||||||||||||||||||
FHLMC MBS | ||||||||||||||||||||||||||
GNMA MBS | ||||||||||||||||||||||||||
GSE agency notes | ||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||
Other liabilities | $ | $ | $ | $ | ||||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||
Other investments | $ | $ | $ | $ | ||||||||||||||||||||||
Other real estate owned | ||||||||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | $ | $ | $ |
December 31, 2022 | ||||||||||||||||||||||||||
(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 | $ | $ | $ | $ | ||||||||||||||||||||||
FNMA MBS | ||||||||||||||||||||||||||
FHLMC MBS | ||||||||||||||||||||||||||
GNMA MBS | ||||||||||||||||||||||||||
GSE agency notes | ||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||
Other liabilities | $ | $ | $ | $ | ||||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis | ||||||||||||||||||||||||||
Other investments | $ | $ | $ | $ | ||||||||||||||||||||||
Other real estate owned | ||||||||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | $ | $ | $ |
(Dollars in thousands) | March 31, 2023 | |||||||||||||||||||||||||
Financial Instrument | Fair Value | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | ||||||||||||||||||||||
Other investments | $ | Observed market comparable transactions | Period of observed transactions | May 2022 | ||||||||||||||||||||||
Other real estate owned | Fair market value of collateral | Costs to sell | ||||||||||||||||||||||||
Other assets (Risk participation agreements purchased) | Credit Value Adjustment | CDS Spread and Loss Given Default (LGD) | CDS spread: LGD: | |||||||||||||||||||||||
Other liabilities (Risk participation agreements sold) | Credit Value Adjustment | CDS Spread and Loss Given Default (LGD) | CDS spread: LGD: | |||||||||||||||||||||||
Other liabilities (Financial derivative related to sales of certain Visa Class B shares) | Discounted cash flow | Timing of Visa litigation resolution | ||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value Measurement | Book Value | Fair Value | Book Value | Fair Value | |||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash | Level 1 | $ | $ | $ | $ | |||||||||||||||||||||||||||
Investment securities available-for-sale | Level 2 | |||||||||||||||||||||||||||||||
Investment securities held-to-maturity, net | Level 2 | |||||||||||||||||||||||||||||||
Other investments | Level 3 | |||||||||||||||||||||||||||||||
Loans, held for sale | Level 2 | |||||||||||||||||||||||||||||||
Loans and leases, net(1) | Level 3 | |||||||||||||||||||||||||||||||
Stock in FHLB of Pittsburgh | Level 2 | |||||||||||||||||||||||||||||||
Accrued interest receivable | Level 2 | |||||||||||||||||||||||||||||||
Other assets | Levels 2, 3 | |||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits | Level 2 | $ | $ | $ | $ | |||||||||||||||||||||||||||
Borrowed funds | Level 2 | |||||||||||||||||||||||||||||||
Standby letters of credit | Level 3 | |||||||||||||||||||||||||||||||
Accrued interest payable | Level 2 | |||||||||||||||||||||||||||||||
Other liabilities | Levels 2, 3 |
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||
(Dollars in thousands) | Count | Notional | Balance Sheet Location | Derivatives (Fair Value) | ||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate products | 1 | $ | Other assets | $ | ||||||||||||||||||||||
Total | $ | $ | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate products | $ | Other assets | $ | |||||||||||||||||||||||
Interest rate products | Other liabilities | ( | ||||||||||||||||||||||||
Interest rate lock commitments with customers | Other assets | |||||||||||||||||||||||||
Interest rate lock commitments with customers | Other liabilities | ( | ||||||||||||||||||||||||
Forward sale commitments | Other assets | |||||||||||||||||||||||||
Forward sale commitments | Other liabilities | ( | ||||||||||||||||||||||||
FX forwards | Other assets | |||||||||||||||||||||||||
FX forwards | Other liabilities | ( | ||||||||||||||||||||||||
Risk participation agreements sold | Other liabilities | ( | ||||||||||||||||||||||||
Risk participation agreements purchased | Other assets | |||||||||||||||||||||||||
Financial derivatives related to sales of certain Visa Class B shares | Other liabilities | ( | ||||||||||||||||||||||||
Total derivatives | $ | $ | ( |
Fair Values of Derivative Instruments | |||||||||||||||||||||||
(Dollars in thousands) | Notional | Balance Sheet Location | Derivatives (Fair Value) | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate products | $ | Other assets | $ | ||||||||||||||||||||
Interest rate products | Other liabilities | ( | |||||||||||||||||||||
Interest rate lock commitments with customers | Other assets | ||||||||||||||||||||||
Interest rate lock commitments with customers | Other liabilities | ( | |||||||||||||||||||||
Forward sale commitments | Other assets | ||||||||||||||||||||||
Forward sale commitments | Other liabilities | ( | |||||||||||||||||||||
FX forwards | Other assets | ||||||||||||||||||||||
FX forwards | Other liabilities | ( | |||||||||||||||||||||
Risk participation agreements sold | Other liabilities | ( | |||||||||||||||||||||
Risk participation agreements purchased | Other assets | ||||||||||||||||||||||
Financial derivatives related to sales of certain Visa Class B shares | Other liabilities | ( | |||||||||||||||||||||
Total derivatives | $ | $ | ( |
Amount of (Loss) or Gain Recognized in Income | Location of Gain or (Loss) Recognized in Income | |||||||||||||||||||
(Dollars in thousands) | Three Months Ended March 31, | |||||||||||||||||||
Derivatives not designated as hedging instruments | 2023 | 2022 | ||||||||||||||||||
Interest rate lock commitments with customers | $ | $ | ( | Mortgage banking activities, net | ||||||||||||||||
Forward sale commitments | ( | Mortgage banking activities, net | ||||||||||||||||||
Total | $ | $ |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | WSFS Bank | Cash Connect® | Wealth Management | Total | WSFS Bank | Cash Connect® | Wealth Management | Total | ||||||||||||||||||||||||||||||||||||||||||
Statements of Income | ||||||||||||||||||||||||||||||||||||||||||||||||||
External customer revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total external customer revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total inter-segment revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
External customer expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) credit losses | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total external customer expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Inter-segment expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total inter-segment expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income before taxes | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Income tax provision | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated net income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income attributable to noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to WSFS | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures for the period ended | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | WSFS Bank | Cash Connect® | Wealth Management | Total | WSFS Bank | Cash Connect® | Wealth Management | Total | ||||||||||||||||||||||||||||||||||||||||||
Statements of Financial Condition | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other segment assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total segment assets | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Net change in investment securities available-for-sale | Net change in investment securities held-to-maturity | Net change in defined benefit plan | Net change in fair value of derivatives used for cash flow hedges | Net change in equity method investments | Total | ||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive loss | ( | ( | ||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | ( | $ | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||||
Other comprehensive (loss) income | ( | ( | ||||||||||||||||||||||||||||||||||||
Less: Amounts reclassified from accumulated other comprehensive loss | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Net current-period other comprehensive (loss) income | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | ( | $ | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||||
Three Months Ended March 31, | Affected line item in unaudited Consolidated Statements of Income | |||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||||||||||||||
Net unrealized holding losses (gains) on securities transferred between available-for-sale and held-to-maturity: | ||||||||||||||||||||
Amortization of net unrealized losses (gains) to income during the period | ( | Net interest income | ||||||||||||||||||
Income taxes | ( | Income tax provision | ||||||||||||||||||
Net of tax | ( | |||||||||||||||||||
Amortization of defined benefit pension plan-related items: | ||||||||||||||||||||
Prior service credits | ( | ( | ||||||||||||||||||
Actuarial (gains) losses | ( | ( | ||||||||||||||||||
Total before tax | ( | ( | Salaries, benefits and other compensation | |||||||||||||||||
Income taxes | Income tax provision | |||||||||||||||||||
Net of tax | ( | ( | ||||||||||||||||||
Net unrealized gains on terminated cash flow hedges: | ||||||||||||||||||||
Amortization of net unrealized gains to income during the period | ( | ( | Interest and fees on loans and leases | |||||||||||||||||
Income taxes | Income tax provision | |||||||||||||||||||
Net of tax | ( | ( | ||||||||||||||||||
Total reclassifications | $ | $ | ( | |||||||||||||||||
Consolidated Capital | Minimum 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 | $ | 2,246,416 | 14.56 | % | $ | 1,234,314 | 8.00 | % | $ | 1,542,893 | 10.00 | % | ||||||||||||||||||||||||||
WSFS Financial Corporation | 2,275,094 | 14.71 | 1,237,430 | 8.00 | 1,546,787 | 10.00 | ||||||||||||||||||||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | ||||||||||||||||||||||||||||||||||||||
Wilmington Savings Fund Society, FSB | 2,065,564 | 13.39 | 925,736 | 6.00 | 1,234,314 | 8.00 | ||||||||||||||||||||||||||||||||
WSFS Financial Corporation | 1,950,536 | 12.61 | 928,072 | 6.00 | 1,237,430 | 8.00 | ||||||||||||||||||||||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||||||||||||||||||||||||||||||||||||||
Wilmington Savings Fund Society, FSB | 2,065,564 | 13.39 | 694,302 | 4.50 | 1,002,880 | 6.50 | ||||||||||||||||||||||||||||||||
WSFS Financial Corporation | 1,950,536 | 12.61 | 696,054 | 4.50 | 1,005,412 | 6.50 | ||||||||||||||||||||||||||||||||
Tier 1 Leverage Capital | ||||||||||||||||||||||||||||||||||||||
Wilmington Savings Fund Society, FSB | 2,065,564 | 10.57 | 781,681 | 4.00 | 977,101 | 5.00 | ||||||||||||||||||||||||||||||||
WSFS Financial Corporation | 1,950,536 | 9.97 | 782,799 | 4.00 | 978,499 | 5.00 |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||||||||
Nonaccruing loans(1): | ||||||||||||||
Commercial and industrial | $ | 20,461 | $ | 6,770 | ||||||||||
Owner-occupied commercial | 581 | 386 | ||||||||||||
Commercial mortgages | 6,133 | 5,159 | ||||||||||||
Construction | 760 | 5,143 | ||||||||||||
Residential | 2,064 | 3,199 | ||||||||||||
Consumer | 2,018 | 2,145 | ||||||||||||
Total nonaccruing loans | 32,017 | 22,802 | ||||||||||||
Other real estate owned | 1,131 | 833 | ||||||||||||
Troubled debt restructurings (accruing)(2) | — | 19,737 | ||||||||||||
Total nonperforming assets | $ | 33,148 | $ | 43,372 | ||||||||||
Past due loans: | ||||||||||||||
Commercial | $ | 1,906 | $ | 1,022 | ||||||||||
Consumer(3) | 11,659 | 15,513 | ||||||||||||
Total past due loans | $ | 13,565 | $ | 16,535 | ||||||||||
Troubled loans: | ||||||||||||||
Commercial | $ | 15,042 | $ | — | ||||||||||
Consumer | 3,019 | — | ||||||||||||
Total troubled loans | $ | 18,061 | $ | — | ||||||||||
Ratio of allowance for credit losses to total loans and leases(4) | 1.28 | % | 1.17 | % | ||||||||||
Ratio of nonaccruing loans to total gross loans and leases(5) | 0.26 | 0.19 | ||||||||||||
Ratio of nonperforming assets to total assets | 0.16 | 0.22 | ||||||||||||
Ratio of allowance for credit losses to nonaccruing loans | 528 | 666 | ||||||||||||
Ratio of allowance for credit losses to total nonperforming assets(6) | 510 | 350 |
Three Months Ended March 31, | ||||||||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||||||||
Beginning balance | $ | 43,372 | $ | 33,133 | ||||||||||
Additions | 23,150 | 10,641 | ||||||||||||
Collections | (8,707) | (5,210) | ||||||||||||
Transfers to accrual(1) | (19,903) | — | ||||||||||||
Charge-offs | (4,764) | (726) | ||||||||||||
Ending balance | $ | 33,148 | $ | 37,838 |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
% 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 | 17.5% | 24.54% | 18.5% | 27.54% | ||||||||||||||||||||||
+200 | 11.7% | 23.50% | 12.3% | 26.44% | ||||||||||||||||||||||
+100 | 5.8% | 22.36% | 6.1% | 25.22% | ||||||||||||||||||||||
+50 | 2.9% | 21.76% | 3.1% | 24.56% | ||||||||||||||||||||||
+25 | 1.5% | 21.44% | 1.5% | 24.22% | ||||||||||||||||||||||
— | —% | 21.15% | —% | 23.87% | ||||||||||||||||||||||
-25 | (1.5)% | 20.78% | (1.6)% | 23.50% | ||||||||||||||||||||||
-50 | (2.9)% | 20.43% | (3.3)% | 23.10% | ||||||||||||||||||||||
-100 | (5.9)% | 19.70% | (6.8)% | 22.20% | ||||||||||||||||||||||
'-200 | (12.4)% | 18.00% | (14.0)% | 20.20% | ||||||||||||||||||||||
'-300 | (19.0)% | 16.00% | (21.2)% | 17.90% |
Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield/ Rate(1) | Average Balance | Interest | Yield/ Rate(1) | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Loans:(2) | ||||||||||||||||||||||||||||||||||||||
Commercial loans and leases | $ | 4,954,622 | $ | 80,744 | 6.63 | % | $ | 4,851,090 | $ | 52,466 | 4.39 | % | ||||||||||||||||||||||||||
Commercial real estate loans | 4,425,354 | 71,828 | 6.58 | 4,292,159 | 40,639 | 3.84 | ||||||||||||||||||||||||||||||||
Residential loans | 769,581 | 8,628 | 4.48 | 843,699 | 9,657 | 4.58 | ||||||||||||||||||||||||||||||||
Consumer loans | 1,849,398 | 31,535 | 6.92 | 1,357,970 | 15,284 | 4.56 | ||||||||||||||||||||||||||||||||
Loans held for sale | 43,527 | 989 | 9.21 | 74,694 | 835 | 4.53 | ||||||||||||||||||||||||||||||||
Total loans and leases | 12,042,482 | 193,724 | 6.53 | 11,419,612 | 118,881 | 4.22 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities(3) | 4,823,507 | 27,526 | 2.28 | 5,223,794 | 23,113 | 1.77 | ||||||||||||||||||||||||||||||||
Investment securities(3) | 376,760 | 2,237 | 2.86 | 330,826 | 1,321 | 1.82 | ||||||||||||||||||||||||||||||||
Other interest-earning assets | 240,943 | 2,896 | 4.87 | 1,721,659 | 822 | 0.19 | ||||||||||||||||||||||||||||||||
Total interest-earning assets | $ | 17,483,692 | $ | 226,383 | 5.27 | % | $ | 18,695,891 | $ | 144,137 | 3.13 | % | ||||||||||||||||||||||||||
Allowance for credit losses | (153,181) | (134,780) | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 230,193 | 209,730 | ||||||||||||||||||||||||||||||||||||
Cash in non-owned ATMs | 421,057 | 509,568 | ||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | 101,612 | 100,756 | ||||||||||||||||||||||||||||||||||||
Other noninterest-earning assets | 1,919,065 | 1,638,727 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 20,002,438 | $ | 21,019,892 | ||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 3,142,930 | $ | 5,024 | 0.65 | % | $ | 3,435,377 | $ | 581 | 0.07 | % | ||||||||||||||||||||||||||
Savings | 2,065,212 | 1,256 | 0.25 | 2,262,026 | 162 | 0.03 | ||||||||||||||||||||||||||||||||
Money market | 3,861,590 | 19,258 | 2.02 | 4,092,835 | 925 | 0.09 | ||||||||||||||||||||||||||||||||
Customer time deposits | 1,276,204 | 5,993 | 1.90 | 1,173,023 | 1,323 | 0.46 | ||||||||||||||||||||||||||||||||
Total interest-bearing customer deposits | 10,345,936 | 31,531 | 1.24 | 10,963,261 | 2,991 | 0.11 | ||||||||||||||||||||||||||||||||
Brokered deposits | 346,355 | 3,661 | 4.29 | 63,376 | 137 | 0.88 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 10,692,291 | 35,192 | 1.33 | 11,026,637 | 3,128 | 0.12 | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 267,367 | 3,371 | 5.11 | — | — | — | ||||||||||||||||||||||||||||||||
Trust preferred borrowings | 90,459 | 1,555 | 6.97 | 90,263 | 513 | 2.30 | ||||||||||||||||||||||||||||||||
Senior and subordinated debt | 233,189 | 2,573 | 4.41 | 248,565 | 1,929 | 3.10 | ||||||||||||||||||||||||||||||||
Other borrowed funds | 131,221 | 1,160 | 3.59 | 38,396 | 9 | 0.10 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 11,414,527 | $ | 43,851 | 1.56 | % | $ | 11,403,861 | $ | 5,579 | 0.20 | % | ||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 5,560,252 | 6,450,783 | ||||||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 770,565 | 445,855 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 2,260,262 | 2,722,263 | ||||||||||||||||||||||||||||||||||||
Noncontrolling interest | (3,168) | (2,870) | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 20,002,438 | $ | 21,019,892 | ||||||||||||||||||||||||||||||||||
Excess of interest-earning assets over interest-bearing liabilities | $ | 6,069,165 | $ | 7,292,030 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 182,532 | $ | 138,558 | ||||||||||||||||||||||||||||||||||
Interest rate spread | 3.71 | % | 2.93 | % | ||||||||||||||||||||||||||||||||||
Net interest margin | 4.25 | % | 3.01 | % | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial and Industrial(1) | Owner- occupied Commercial | Commercial Mortgages | Construction | Residential(2) | Consumer(3) | Total | |||||||||||||||||||||||||||||||||||||
As of March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 62,709 | $ | 6,056 | $ | 30,114 | $ | 9,672 | $ | 5,327 | $ | 55,284 | $ | 169,162 | ||||||||||||||||||||||||||||||
% of ACL to total ACL | 37 | % | 3 | % | 18 | % | 6 | % | 3 | % | 33 | % | 100 | % | ||||||||||||||||||||||||||||||
Loan portfolio balance | $ | 3,145,326 | $ | 1,846,661 | $ | 3,473,083 | $ | 1,023,711 | $ | 786,060 | $ | 1,868,427 | $ | 12,143,268 | ||||||||||||||||||||||||||||||
% to total loans and leases | 26 | % | 15 | % | 29 | % | 8 | % | 7 | % | 15 | % | 100 | % | ||||||||||||||||||||||||||||||
Three months ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | $ | 9,462 | $ | — | $ | — | $ | — | $ | — | $ | 4,204 | $ | 13,666 | ||||||||||||||||||||||||||||||
Recoveries | 1,216 | 5 | 2 | 530 | 43 | 159 | 1,955 | |||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | $ | 8,246 | $ | (5) | $ | (2) | $ | (530) | $ | (43) | $ | 4,045 | $ | 11,711 | ||||||||||||||||||||||||||||||
Average loan balance | $ | 3,134,936 | $ | 1,819,686 | $ | 3,428,388 | $ | 996,965 | $ | 766,938 | $ | 1,849,398 | $ | 11,996,312 | ||||||||||||||||||||||||||||||
Ratio of net charge-offs (recoveries) to average gross loans | 1.07 | % | NMF | NMF | (0.22) | % | (0.02) | % | 0.89 | % | 0.40 | % | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial and Industrial(1) | Owner- occupied Commercial | Commercial Mortgages | Construction | Residential(2) | Consumer(3) | Total | |||||||||||||||||||||||||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 59,394 | $ | 6,019 | $ | 21,473 | $ | 6,987 | $ | 4,668 | $ | 53,320 | $ | 151,861 | ||||||||||||||||||||||||||||||
% of ACL to total ACL | 39 | % | 4 | % | 14 | % | 5 | % | 3 | % | 35 | % | 100 | % | ||||||||||||||||||||||||||||||
Loan portfolio balance | $ | 3,134,326 | $ | 1,809,582 | $ | 3,351,084 | $ | 1,044,049 | $ | 759,465 | $ | 1,810,930 | $ | 11,909,436 | ||||||||||||||||||||||||||||||
% to total loans and leases | 26 | % | 15 | % | 28 | % | 9 | % | 7 | % | 15 | % | 100 | % | ||||||||||||||||||||||||||||||
Year ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | $ | 19,004 | $ | 179 | $ | 581 | $ | — | $ | 186 | $ | 7,520 | $ | 27,470 | ||||||||||||||||||||||||||||||
Recoveries | 6,112 | 278 | 223 | 2,567 | 665 | 793 | 10,638 | |||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | $ | 12,892 | $ | (99) | $ | 358 | $ | (2,567) | $ | (479) | $ | 6,727 | $ | 16,832 | ||||||||||||||||||||||||||||||
Average loan balance | $ | 3,043,836 | $ | 1,831,428 | $ | 3,319,687 | $ | 962,082 | $ | 787,273 | $ | 1,543,704 | $ | 11,488,010 | ||||||||||||||||||||||||||||||
Ratio of net charge-offs (recoveries) to average gross loans | 0.42 | % | (0.01) | % | 0.01 | % | (0.27) | % | (0.06) | % | 0.44 | % | 0.15 | % |
(Dollars and share amounts in thousands, except per share amounts) | March 31, 2023 | December 31, 2022 | ||||||||||||
Stockholders’ equity of WSFS | $ | 2,306,362 | $ | 2,205,113 | ||||||||||
Less: Goodwill and other intangible assets | 1,008,250 | 1,012,232 | ||||||||||||
Tangible common equity (numerator) | $ | 1,298,112 | $ | 1,192,881 | ||||||||||
Shares of common stock outstanding (denominator) | 61,387 | 61,612 | ||||||||||||
Book value per share of common stock | $ | 37.57 | $ | 35.79 | ||||||||||
Goodwill and other intangible assets | 16.42 | 16.43 | ||||||||||||
Tangible book value per share of common stock | $ | 21.15 | $ | 19.36 |
Month | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
January 1, 2023 - January 31, 2023 | 20,000 | $ | 47.26 | 20,000 | 6,568,771 | |||||||||||||||||||||
February 1, 2023 - February 28, 2023 | 178,000 | 50.19 | 178,000 | 6,390,771 | ||||||||||||||||||||||
March 1, 2023 - March 31, 2023 | 64,000 | 46.68 | 64,000 | 6,326,771 | ||||||||||||||||||||||
Total | 262,000 | $ | 49.11 | 262,000 |
Exhibit Number | Description of Document | |||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS | XBRL Instance Document * | |||||||
101.SCH | XBRL Schema Document * | |||||||
101.CAL | XBRL Calculation Linkbase Document * | |||||||
101.LAB | XBRL Labels Linkbase Document * | |||||||
101.PRE | XBRL Presentation Linkbase Document * | |||||||
101.DEF | XBRL Definition Linkbase Document * | |||||||
104 | The cover page of this Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, filed with the SEC on May 5, 2023, is formatted in Inline XBRL. |
WSFS FINANCIAL CORPORATION | ||||||||
Date: May 5, 2023 | /s/ Rodger Levenson | |||||||
Rodger Levenson | ||||||||
Chairman, President and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Date: May 5, 2023 | /s/ Dominic C. Canuso | |||||||
Dominic C. Canuso | ||||||||
Executive Vice President and | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Date: | May 5, 2023 | /s/ Rodger Levenson | |||||||||||||||
Rodger Levenson | |||||||||||||||||
Chairman, President and Chief Executive Officer | |||||||||||||||||
(Principal Executive Officer) |
Date: | May 5, 2023 | /s/ Dominic C. Canuso | |||||||||||||||
Dominic C. Canuso | |||||||||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||||||||
(Principal Financial and Accounting Officer) |
/s/ Rodger Levenson | /s/ Dominic C. Canuso | |||||||||||||
Rodger Levenson | Dominic C. Canuso | |||||||||||||
Chairman, President and Chief Executive Officer | Executive Vice President and | |||||||||||||
(Principal Executive Officer) | Chief Financial Officer | |||||||||||||
(Principal Financial and Accounting Officer) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Unrealized gains (losses) | $ 16,740 | $ (87,132) |
Amortization of unrealized losses (gains) on securities reclassified to held-to-maturity, tax expense | (1,315) | 9 |
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, tax benefit | (11) | 9 |
Reclassification adjustment related to derivatives, tax expense | 105 | 0 |
Amortization of unrealized gain on terminated cash flow hedges, tax benefit | 13 | 13 |
Equity method investment tax benefit | $ (1) | $ 0 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Interest-bearing deposits in banks and other financial institutions, collateral | $ 6,650 | $ 4,650 |
Amortized cost | 4,758,199 | 4,834,550 |
Allowance for credit losses | 9 | 10 |
Held-to-maturity securities, fair value | 1,035,856 | 1,040,104 |
Allowance for credit losses | $ 169,162 | $ 151,861 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, issued (in shares) | 75,958,600 | 75,921,997 |
Treasury stock, shares (in shares) | 14,572,085 | 14,310,085 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands |
Total |
Total Stockholders' Equity of WSFS |
Common Stock |
Capital in Excess of Par Value |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Treasury Stock |
Non-controlling Interest |
||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2021 | 57,695,676 | |||||||||||
Beginning balance at Dec. 31, 2021 | $ 1,937,016 | $ 1,939,099 | $ 577 | $ 1,058,997 | $ (37,768) | $ 1,224,614 | $ (307,321) | $ (2,083) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 3,967 | 3,804 | 3,804 | 163 | ||||||||
Other comprehensive income (loss) | (276,012) | (276,012) | (276,012) | |||||||||
Cash dividend | (8,536) | (8,536) | (8,536) | |||||||||
Contributions from noncontrolling shareholders | 187 | 187 | ||||||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 19,768 | |||||||||||
Issuance of common stock including proceeds from exercise of common stock options | 428 | 428 | 428 | |||||||||
Issuance of common stock in acquisition of BMT (in shares) | 18,116,848 | |||||||||||
Issuance of common stock in acquisition of BMT | 908,016 | 908,016 | $ 181 | 907,835 | ||||||||
Noncontrolling interest assumed in acquisition | (913) | (913) | ||||||||||
Stock-based compensation expense | 1,334 | 1,334 | 1,334 | |||||||||
Repurchases of common stock | [1] | (47,670) | (47,670) | (622) | (47,048) | |||||||
Ending balance (in shares) at Mar. 31, 2022 | 75,832,292 | |||||||||||
Ending balance at Mar. 31, 2022 | 2,517,817 | 2,520,463 | $ 758 | 1,967,972 | (313,780) | 1,219,882 | (354,369) | (2,646) | ||||
Beginning balance (in shares) at Dec. 31, 2022 | 75,921,997 | |||||||||||
Beginning balance at Dec. 31, 2022 | 2,201,886 | 2,205,113 | $ 759 | 1,974,210 | (675,844) | 1,411,243 | (505,255) | (3,227) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 62,662 | 62,404 | 62,404 | 258 | ||||||||
Other comprehensive income (loss) | 57,429 | 57,429 | 57,429 | |||||||||
Cash dividend | (9,255) | (9,255) | (9,255) | |||||||||
Distributions to noncontrolling shareholders | (49) | (49) | ||||||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 36,603 | |||||||||||
Issuance of common stock including proceeds from exercise of common stock options | 362 | 362 | 362 | |||||||||
Stock-based compensation expense | 3,185 | 3,185 | 3,185 | |||||||||
Repurchases of common stock | [2] | (12,876) | (12,876) | (12,876) | ||||||||
Ending balance (in shares) at Mar. 31, 2023 | 75,958,600 | |||||||||||
Ending balance at Mar. 31, 2023 | $ 2,303,344 | $ 2,306,362 | $ 759 | $ 1,977,757 | $ (618,415) | $ 1,464,392 | $ (518,131) | $ (3,018) | ||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Cash dividend (in dollars per share) | $ 0.15 | $ 0.13 |
Shares withheld for tax liabilities (in shares) | 8,258 | 3,430 |
Treasury Stock | ||
Repurchase of common stock (in shares) | 262,000 | 938,985 |
BASIS OF PRESENTATION |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION General These unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (WSFS, and together with its subsidiaries, the Company), and its consolidated subsidiaries. WSFS’ primary subsidiary is Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank). As of March 31, 2023, the other subsidiaries of WSFS include WSFS Wealth Management, LLC (Powdermill®), Bryn Mawr Capital Management, LLC (BMCM), WSFS SPE Services, LLC, The Bryn Mawr Trust Company of Delaware (BMT-DE), and 601 Perkasie, LLC. The Company also has three unconsolidated subsidiaries: WSFS Capital Trust III, Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II. WSFS Bank has two wholly-owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC) and 1832 Holdings, Inc., and one majority-owned subsidiary, NewLane Finance Company (NewLane Finance®). On January 1, 2023, WSFS completed the merger and brand conversion of WSFS Capital Management, LLC (West Capital) and Cypress Capital Management, LLC and renamed the combined entity Bryn Mawr Capital Management, LLC. BMCM is registered as an investment advisor with the U.S. Securities and Exchange Commission and is a wholly-owned subsidiary of WSFS. 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.). The Company provides residential and commercial real estate, commercial and consumer lending services, as well as consumer deposit and cash management services. The Company's core banking business is commercial lending funded primarily by customer-generated deposits. In addition, the Company offers a variety of wealth management and trust services to individuals, institutions and corporations. The Federal Deposit Insurance Corporation (FDIC) insures the customers’ deposits to their legal maximums. The Company serves its customers primarily from 119 offices located in Pennsylvania (61), Delaware (39), New Jersey (17), Virginia (1) and Nevada (1), its ATM network, website at www.wsfsbank.com and mobile app. Information on the website is not incorporated by reference into this Quarterly Report on Form 10-Q. Basis of Presentation In preparing the unaudited Consolidated Financial Statements, the Company is 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 credit losses (including loans and leases held for investment, investment securities available-for-sale and held-to-maturity), fair values of assets acquired and liabilities assumed in acquisitions accounted for as business combinations using the acquisition method of accounting, lending-related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, and income taxes. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the establishment of additional allowance and lending-related commitment reserves, changes in the fair value of financial instruments, as well as increased post-retirement benefits and income tax expense. The Company's accounting and reporting policies conform to Generally Accepted Accounting Principles in the U.S. (GAAP), 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. Certain prior period amounts have been reclassified to conform with current period presentation. 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, 2023. These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2022 (the 2022 Annual Report on Form 10-K) that was filed with the SEC on February 28, 2023 and is available at www.sec.gov or on the website at www.wsfsbank.com. All significant intercompany accounts and transactions were eliminated in consolidation.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES: The significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the Company's 2022 Annual Report on Form 10-K. Those significant accounting policies remain unchanged at March 31, 2023, except for the following: Past Due and Nonaccrual Loans Past due loans are defined as loans contractually past due 90 days or more as to principal or interest payments. Past due loans 90 days or more that remain in accrual status are considered well secured and in the process of collection. Nonaccruing loans are those on which the accrual of interest has ceased. Loans are placed on nonaccrual status immediately if, in the opinion of the Company, collection is doubtful, or when principal or interest is past due 90 days or more and the loan is not well secured and in the process of collection. 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 the Company’s assessment of the ultimate collectability of principal and interest. Loans are returned to accrual status when the Company assesses that the borrower has the ability to make all principal and interest payments in accordance with the terms of the loan (i.e., a consistent repayment record, generally six consecutive payments, has been demonstrated). For loans greater than 90 days past due, unless loans are well-secured and collection is imminent, their respective reserves are generally charged off once the loss has been confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. A loan, for which the terms have been modified in the current reporting period in the form of principal forgiveness, an interest rate reduction, an other than-insignificant payment delay, or a term extension to a borrower experiencing financial difficulty, is considered a troubled loan. The assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Principal balances are generally not forgiven when a loan is modified as a troubled loan. Nonaccruing troubled loans remain in nonaccrual status until there has been a period of sustained repayment performance demonstrated and repayment is reasonably assured. Since the effect of most troubled loans are already included in the Company’s estimate of expected credit losses, a change to the allowance for credit losses is generally not recorded upon modification. For additional detail regarding past due and nonaccrual loans, see Note 7. Allowance for Credit Losses - Loans and Leases The Company establishes its allowance in accordance with guidance provided in ASC 326, Financial Instruments - Credit Losses. The allowance for credit losses includes quantitative and qualitative factors that comprise the Company's current estimate of expected credit losses, including the Company's portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to qualitative adjustment factors, prepayment speeds and reasonable and supportable forecasts about future economic conditions. The Company's portfolio segments, established based on similar risk characteristics and loss behaviors, are: •Commercial Loans: Commercial and industrial - real estate secured, commercial and industrial - non-real estate secured, owner-occupied commercial, commercial mortgages, construction and commercial small business leases, and •Residential and Consumer Loans: Residential mortgage, equity secured lines and loans, installment loans, unsecured lines of credit, originated education loans and previously acquired education loans. Expected credit losses are net of expected recoveries and estimated over the contractual term, adjusted for expected prepayments. The contractual term excludes any extensions, renewals and modifications unless they are not unconditionally cancellable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Expected prepayments are based on historical experience and considers adjustments for current and future economic conditions. The allowance includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis) and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and are individually evaluated for credit losses (individual basis). Loans that share similar risk characteristics are collectively reviewed for credit loss and are evaluated based on historical loss experience, adjusted for current economic conditions and future economic forecasts. Estimated losses are determined differently for commercial and residential and consumer loans, and each portfolio segment is further segmented by internally assessed risk ratings. The Company uses a single scenario third-party economic forecast to adjust the calculated historical loss rates of the portfolio segments to incorporate the effects of current and future economic conditions. The Company's economic forecast considers the general health of the economy, the interest rate environment, real estate pricing and market risk. The Company's forecast extends out 6 quarters (the forecast period) and reverts to the historical loss rates on a straight-line basis over 4 quarters (the reversion period) as it believes this to be reasonable and supportable in the current environment. The economic forecast and reversion periods will be evaluated periodically by the Company and updated as appropriate. The historical loss rates for commercial loans are estimated by determining the probability of default (PD) and expected loss given default (LGD) and are applied to the loans' exposure at default. The probability of default is calculated based on the historical rate of migration to an event of credit loss during the look-back period. The historical loss rates for consumer loans is calculated based on average net loss rates over the same look-back period. The current look-back period is 49 quarters which ensures historical loss rates are adequately considering losses within a full credit cycle. Loans that do not share similar risk characteristics with any loan segments are evaluated on an individual basis. These loans, which may include troubled loans, are not included in the collective basis evaluation. When it is probable the Company 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, these loans are individually reviewed and measured for potential credit loss. The amount of the potential credit loss is measured using any of the following three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the fair value of collateral if the loan is collateral dependent; or (iii) the loan’s observable market price. If the measured fair value of the loan is less than the amortized cost basis of the loan, an allowance for credit loss is recorded. For collateral dependent loans, the expected credit losses at the individual asset level are the difference between the collateral's fair value (less cost to sell) and the amortized cost. Qualitative adjustment factors consider various internal and external conditions which are allocated among loan segments and take into consideration: •Current underwriting policies, staff and portfolio concentrations, •Risk rating accuracy, credit and administration, •Internal risk emergence (including internal trends of delinquency, and criticized loans by segment), •Economic forecasts and conditions - locally and nationally (including market trends impacting collateral values), which is separate from or in addition to the third-party economic forecast described above, and •Competitive environment, as it could impact loan structure and underwriting. These factors are based on their relative standing compared to the period in which historical losses are used in quantitative reserve estimates and current directional trends, and reasonable and supportable forecasts. Qualitative factors can add to or subtract from quantitative reserves. The Company's 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 the Company's loan ratings and allowance for credit losses and the Bank's internal loan review department performs recurring loan reviews. Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the unaudited Consolidated Statements of Financial Condition. For additional detail regarding the allowance for credit losses and the provision for credit losses, see Note 7. RECENT ACCOUNTING PRONOUNCEMENTS The following accounting pronouncement was adopted by the Company during the three months ended March 31, 2023: ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures: In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The guidance eliminates the accounting guidance for troubled debt restructurings by creditors (ASC 310-40) while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The guidance also requires that an entity disclose current-period write-offs by year of origination for financing receivables and net investments in leases within the scope of Topic 326. The Company adopted this guidance prospectively on January 1, 2023. For further details on the impact of the adoption and accounting policies, see updated Significant Accounting Policies, as described above, and troubled loans disclosures in Note 7 - Allowance for Credit Losses and Credit Quality Information. Accounting Guidance Pending Adoption as of March 31, 2023 ASU No. 2023-01, Leases (Topic 842) Common Control Agreements: In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842) Common Control Agreements. The amendment clarifies the accounting for leasehold improvements associated with common control leases by allowing the lessee to amortize the leasehold improvements over the useful life of the common control group’s use of the underlying asset, regardless of the lease term. The guidance is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Adoption is required on a modified retrospective basis, consistent with the Company's adoption of Topic 842. The Company does not expect this update to have a material impact on the Consolidated Financial Statements. ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method: In March 2023, The FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments permit reporting entities to elect to account for any equity investments in a tax credit program using the proportional amortization method if certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Adoption is required on a prospective, modified retrospective, or retrospective basis depending on the amendment. The Company does not expect this update to have a material impact on the Consolidated Financial Statements.
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NONINTEREST INCOME |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NONINTEREST INCOME | 3. NONINTEREST INCOME Credit/debit card and ATM income The following table presents the components of credit/debit card and ATM income:
Credit/debit card and ATM income is composed of bailment fees, interchange fees, and other card and ATM fees. Bailment fees are earned from bailment arrangements with customers. Bailment arrangements are legal relationships in which property is delivered to another party without a transfer of ownership. The party who transferred the property (the bailor) retains ownership interest of the property. In the event that the bailee files for bankruptcy protection, the property is not included in the bailee's assets. The bailee pays an agreed-upon fee for the use of the bailor's property in exchange for the bailor allowing use of the assets at the bailee's site. Bailment fees are earned from cash that is made available for customers' use at an offsite location, such as cash located in an ATM at a customer's place of business. These fees are typically indexed to a market interest rate. This revenue stream generates fee income through monthly billing for bailment services. Credit/debit card and ATM income also includes interchange fees. Interchange fees are paid by a merchant's bank to a bank that issued a debit or credit card used in a transaction to compensate the issuing bank for the value and benefit the merchant receives from accepting electronic payments. These revenue streams generate fee income at the time a transaction occurs and are recorded as revenue at the time of the transaction. Investment management and fiduciary income The following table presents the components of investment management and fiduciary income:
Investment management and fiduciary income is composed of trust fees and wealth management and advisory fees. Trust fees are based on revenue earned from custody, escrow, trustee and trustee related services on structured finance transactions; indenture trustee, administrative agent and collateral agent services to individuals, institutions and corporations; commercial domicile and independent director services; and investment and trustee services to families and individuals. Most fees are flat fees, except for a portion of personal and corporate trustee fees where the Company earns a percentage on the assets under management or assets held within a trust. This revenue stream primarily generates fee income through monthly, quarterly and annual billings for services provided. Wealth management and advisory fees consists of fees from Bryn Mawr Trust (excluding The Bryn Mawr Trust Company of Delaware), BMCM, Powdermill®, and WSFS Wealth® Investments. Wealth management and advisory fees are based on revenue earned from services including asset management, financial planning, family office, and brokerage. The fees are based on the market value of assets, are assessed as a flat fee, or are brokerage commissions. This revenue stream primarily generates fee income through monthly, quarterly and annual billings for the services. Deposit service charges The following table presents the components of deposit service charges:
Deposit service charges includes revenue earned from core deposit products, certificates of deposit, and brokered deposits. The Company generates fee revenues from deposit service charges primarily through service charges and overdraft fees. Service charges consist primarily of monthly account maintenance fees, cash management fees, foreign ATM fees and other maintenance fees. All of these revenue streams generate fee income through service charges for monthly account maintenance and similar items, transfer fees, late fees, overlimit fees, and stop payment fees. Revenue is recorded at the time of the transaction. Other income The following table presents the components of other income:
(1)Includes commissions income from BMTIA in 2022. The BMTIA business was sold during the second quarter of 2022. Other income consists of managed service fees, which are primarily courier fees related to cash management, currency preparation, ATM loss protection, capital markets revenue, and other miscellaneous products and services offered by the Bank. These fees are primarily generated through monthly billings or at the time of the transaction. Capital markets revenue consists of fees related to interest rate swaps, risk participation agreements, foreign exchange contracts, letters of credit, and trade finance products and services offered by the Bank. Through its subsidiary BMTIA, the Bank earned commissions from the sale of insurance policies, which are generally calculated as a percentage of the policy premium, and contingent income, which is calculated based on the volume and performance of the policies held by each carrier. Obligations for the sale of insurance policies are generally satisfied at the point in time which the policy is executed and are recognized at the point in time in which the amounts are known and collection is reasonably assured. Performance metrics for contingent income are generally satisfied over time, not exceeding one year, and are recognized at the point in time in which the amounts are known and collection is reasonably assured. The Company's contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers. Practical expedients and exemptions The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. See Note 14 for further information about the disaggregation of noninterest income by segment.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE | 4. EARNINGS PER SHARE The following table shows the computation of basic and diluted earnings per share:
Basic earnings per share is calculated by dividing Net income attributable to WSFS by the weighted-average basic shares outstanding. Diluted earnings per share is calculated by dividing Net income attributable to WSFS by the weighted-average fully diluted shares outstanding, using the treasury stock method. Fully diluted shares include the adjustment for the dilutive effect of common stock awards, which include outstanding stock options and unvested restricted stock units under the 2013 Incentive Plan and the 2018 Incentive Plan.
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INVESTMENT SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | 5. INVESTMENT SECURITIES Debt Securities The following tables detail the amortized cost, allowance for credit losses and the estimated fair value of the Company's investments in available-for-sale and held-to-maturity debt securities. None of the Company's investments in debt securities are classified as trading.
(1)Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value basis at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $137.3 million at March 31, 2023, which are offset in Accumulated other comprehensive loss. At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss.
(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 transferred held-to-maturity securities included net unrealized losses of $142.8 million at December 31, 2022, which are offset in Accumulated other comprehensive loss. At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. The scheduled maturities of available-for-sale debt securities at March 31, 2023 and December 31, 2022 are presented in the table below:
(1)Actual maturities could differ from contractual maturities. As of March 31, 2023, the Company’s available-for-sale investment securities consisted of 959 securities, 953 of which were in an unrealized loss position. As of March 31, 2023, substantially all of the Corporation’s available-for-sale investment securities were mortgage-backed securities or collateral mortgage obligations which were issued or guaranteed by U.S. government-sponsored entities and agencies. As of March 31, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. The scheduled maturities of held-to-maturity debt securities at March 31, 2023 and December 31, 2022 are presented in the table below:
(1)Actual maturities could differ from contractual maturities. MBS may have expected maturities that differ from their contractual maturities. These differences arise because issuers may have the right to call securities and borrowers may have the right to prepay obligations with or without prepayment penalty. The estimated weighted average duration of MBS was 6.0 years at March 31, 2023. The held-to-maturity debt securities are not collateral-dependent securities as these are general obligation bonds issued by cities, states, counties, or other local and foreign governments. Investment securities with fair market values aggregating $3.5 billion and $2.8 billion were pledged as collateral for investment sweep repurchase agreements, municipal deposits, and other obligations as of March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023 and 2022, the Company had no sales of debt securities categorized as available-for-sale. As of March 31, 2023 and December 31, 2022, the Company's debt securities portfolio had remaining unamortized premiums of $64.1 million and $66.6 million, respectively, and unaccreted discounts of $24.1 million and $25.2 million, respectively. For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at March 31, 2023.
For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at December 31, 2022.
At March 31, 2023, debt securities for which the amortized cost basis exceeded fair value totaled $4.1 billion. Total unrealized losses on these securities were $671.7 million at March 31, 2023. The Company does not have the intent to sell, nor is it more likely than not it will be required to sell these securities before it is able to recover the amortized cost basis. The unrealized losses are the result of changes in market interest rates subsequent to purchase, not credit loss, as these are highly rated agency securities with no expected credit loss, in the event of a default. As a result, there is no allowance for credit losses recorded for available-for-sale debt securities as of March 31, 2023. At March 31, 2023 and December 31, 2022, held-to-maturity debt securities had an amortized cost basis of $1.1 billion. The held-to-maturity debt security portfolio primarily consists of mortgage-backed securities which were issued or guaranteed by U.S. government-sponsored entities and agencies and highly rated municipal bonds. The Company monitors credit quality of its debt securities through credit ratings. The following table summarizes the amortized cost of debt securities held-to-maturity as of March 31, 2023, aggregated by credit quality indicator:
The following table summarizes the amortized cost of debt securities held-to-maturity as of December 31, 2022, aggregated by credit quality indicator:
The Company reviewed its held-to-maturity debt securities by major security type for potential credit losses. There was no activity in the allowance for credit losses for FNMA MBS and foreign bond debt securities for the three months ended March 31, 2023 and 2022. The following table presents the activity in the allowance for credit losses for state and political subdivisions debt securities for the three months ended March 31, 2023 and 2022:
Accrued interest receivable of $1.9 million and $2.4 million as of March 31, 2023 and December 31, 2022, respectively, for held-to-maturity debt securities were excluded from the evaluation of allowance for credit losses. There were no nonaccrual or past due held-to-maturity debt securities as of March 31, 2023 and December 31, 2022. Equity Investments The Company had equity investments with a fair value of $24.8 million and $26.1 million as of March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023, the Company recognized net losses related to our equity method investments of $1.3 million within Other income on the unaudited Consolidated Statements of Income. During the three months ended March 31, 2022, the Company recognized net income related to our equity method investments of $0.4 million.
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LOANS AND LEASES |
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LOANS AND LEASES | 6. LOANS AND LEASES The following table shows the Company's loan and lease portfolio by category:
(1) Includes reverse mortgages at fair value of $2.7 million at March 31, 2023 and $2.4 million at December 31, 2022. (2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. Accrued interest receivable on loans and leases was $61.7 million and $59.3 million at March 31, 2023 and December 31, 2022, respectively. Accrued interest receivable on loans and leases was excluded from the evaluation of allowance for credit losses.
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ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION | 7. ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION The following tables provide the activity of allowance for credit losses and loan balances for the three months ended March 31, 2023 and 2022. The increase was primarily due to the impacts of the economic uncertainty and forecast and net loan growth.
(1)Includes commercial small business leases. (2)Period-end loan balance excludes reverse mortgages at fair value of $2.7 million. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
(1)Includes commercial small business leases. (2)Period-end loan balance excludes reverse mortgages at fair value of $4.3 million. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. (4)Includes $23.5 million initial provision for credit losses on non-PCD loans. The following tables show nonaccrual and past due loans presented at amortized cost at the date indicated:
(1)Includes commercial small business leases. (2)Residential accruing current balances excludes reverse mortgages at fair value of $2.7 million. (3)Includes $15.5 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.
(1)There were no nonaccrual loans with an allowance as of December 31, 2022. (2)Includes commercial small business leases. (3)Residential accruing current balances excludes reverse mortgages, at fair value of $2.4 million. (4)Includes $21.1 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss. The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at March 31, 2023 and December 31, 2022:
(1)Includes commercial small business leases. (2)Excludes reverse mortgages at fair value. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. As of March 31, 2023, there were 42 residential loans and 14 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $5.0 million and $3.2 million, respectively. As of December 31, 2022, there were 45 residential loans and 8 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $6.7 million and $1.6 million, respectively. Loan workout and other real estate owned (OREO) (recoveries) expenses were $0.2 million during the three months ended March 31, 2023, and $0.3 million during three months ended March 31, 2022, respectively. Loan workout and OREO expenses are included in Loan workout and other credit costs on the unaudited Consolidated Statements of Income. Credit Quality Indicators Below is a description of each of the 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. These 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 or Lower. These 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. In addition, some borrowers in this category could have 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. Such impending events include: perfecting liens on additional collateral, obtaining collateral valuations, an acquisition or liquidation preceding, proposed merger, or refinancing plan. 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 credit losses as of March 31, 2023.
(1)Includes commercial small business leases. (2)Excludes reverse mortgages at fair value. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2022.
(1)Includes commercial small business leases. (2)Excludes reverse mortgages at fair value. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. Troubled Loans The following table shows the amortized cost basis at the end of the reporting period of troubled loans, disaggregated by portfolio segment and type of concession granted.
(1)Includes commercial small business leases. (2)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. The following table describes the financial effect of the modifications made to troubled loans as of March 31, 2023:
(1)Represents the weighted-average increase in the life of modified loans measured in years, which reduces monthly payment amounts for borrowers. (2)Represents the weighted-average decrease in the contractual interest rate on the modified loans. (3)Represents the weighted-average percentage monthly payments were reduced during the period of modification. As of March 31, 2023, the Company had commitments to extend credit of $1.5 million to borrowers experiencing financial difficulty whose terms had been modified. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. There were no loans that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty. The Company closely monitors the performance of troubled loans to understand the effectiveness of its modification efforts. The following table shows the performance of loans that have been modified in the last 12 months:
(1)Includes commercial small business leases. (2)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. Troubled Debt Restructurings (TDRs) under ASC 326 for periods prior to adoption of ASU 2022-02 The following table presents the balance of TDRs as of the indicated date:
Approximately $0.6 million in related reserves have been established for these loans at December 31, 2022. The following table presents information regarding the types of loan modifications made for the three months ended March 31, 2022:
(1)Other includes interest rate reduction, forbearance, and interest only payments. 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, which is typically six months, and repayment is reasonably assured. The following table presents loans modified as TDRs during the three months ended March 31, 2022.
(1)During the three months ended March 31, 2022 the TDRs set forth in the table above resulted in a $0.1 million increase in the allowance for credit losses, and no additional charge-offs. During the three months ended March 31, 2022, no TDRs defaulted that had received troubled debt modification during the past twelve months. (2)The TDRs set forth in the table above did not occur as a result of the loan forbearance program under the CARES Act.
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | 8. LEASES As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business. Lessee The Company's ongoing leases have remaining lease terms of less than one year to 39 years, which includes renewal options that are exercised at its discretion. The Company's lease terms to calculate the lease liability and right of use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets, respectively, in the unaudited Consolidated Statements of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the unaudited Consolidated Statements of Financial Condition. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the unaudited Consolidated Statements of Income. The Company accounts for lease components separately from nonlease components. The Company subleases certain real estate to third parties. The components of operating lease cost were as follows:
(1)Includes variable lease cost and short-term lease cost. Supplemental balance sheet information related to operating leases was as follows:
Maturities of operating lease liabilities were as follows:
Supplemental cash flow information related to operating leases was as follows:
As of March 31, 2023, the Corporation had not entered into any material leases that have not yet commenced. Lessor Equipment Leasing The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the unaudited Consolidated Statements of Income. The allowance for credit losses on finance leases is included in Provision for credit losses on the unaudited Consolidated Statements of Income. The components of direct finance lease income are summarized in the table below:
Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows:
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LEASES | 8. LEASES As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business. Lessee The Company's ongoing leases have remaining lease terms of less than one year to 39 years, which includes renewal options that are exercised at its discretion. The Company's lease terms to calculate the lease liability and right of use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets, respectively, in the unaudited Consolidated Statements of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the unaudited Consolidated Statements of Financial Condition. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the unaudited Consolidated Statements of Income. The Company accounts for lease components separately from nonlease components. The Company subleases certain real estate to third parties. The components of operating lease cost were as follows:
(1)Includes variable lease cost and short-term lease cost. Supplemental balance sheet information related to operating leases was as follows:
Maturities of operating lease liabilities were as follows:
Supplemental cash flow information related to operating leases was as follows:
As of March 31, 2023, the Corporation had not entered into any material leases that have not yet commenced. Lessor Equipment Leasing The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance®. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the unaudited Consolidated Statements of Income. The allowance for credit losses on finance leases is included in Provision for credit losses on the unaudited Consolidated Statements of Income. The components of direct finance lease income are summarized in the table below:
Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows:
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 9. GOODWILL AND INTANGIBLE ASSETS In accordance with ASC 805, Business Combinations (ASC 805) and ASC 350, Intangibles - Goodwill and Other (ASC 350), all assets acquired and liabilities assumed in purchase acquisitions, including goodwill, indefinite-lived intangibles and other intangibles are recorded at fair value as of acquisition date. WSFS performs its annual goodwill impairment test on October 1 or more frequently if events and circumstances indicate that the fair value of a reporting unit is less than its carrying value. In between annual tests, management performs a qualitative review of goodwill quarterly as part of the Company's review of the overall business to ensure no events or circumstances have occurred that would impact its goodwill evaluation. During the three months ended March 31, 2023, management determined based on its qualitative assessment that it is not more likely than not that the fair values of our reporting units are less than their carrying values. No goodwill impairment exists during the three months ended March 31, 2023. The following table shows the allocation of goodwill to the reportable operating segments for purposes of goodwill impairment testing:
ASC 350 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 table summarizes the Company's intangible assets:
(1)Includes reversal of impairment losses of less than $0.1 million for the three months ended March 31, 2023. (2)Includes impairment losses of $0.3 million for the year ended December 31, 2022 The Company recognized amortization expense on intangible assets of $3.8 million for the three months ended March 31, 2023, compared to $4.0 million for the three months ended March 31, 2022. The following table presents the estimated future amortization expense on definite life intangible assets:
Servicing Assets The Company records mortgage servicing rights on its mortgage loan servicing portfolio, which includes mortgages that it acquires or originates as well as mortgages that it services for others, and servicing rights on Small Business Administration (SBA) loans. Mortgage servicing rights and SBA loan servicing rights are included are in Intangible assets in the accompanying unaudited Consolidated Statements of Financial Condition. Mortgage loans which the Company services for others are not included in Loans and leases, net of allowance in the accompanying unaudited Consolidated Statements of Financial Condition. Servicing rights represent the present value of the future net servicing fees from servicing mortgage loans the Company acquires or originates, or that it services for others. The value of the Company's mortgage servicing rights was $2.0 million and $2.1 million at March 31, 2023 and December 31, 2022, respectively, and the value of its SBA loan servicing rights was $3.9 million and $4.0 million at March 31, 2023 and December 31, 2022, respectively. Changes in the value of the Company's servicing rights resulted in a reversal of impairment losses of less than $0.1 million for both the three months ended March 31, 2023 and 2022. Revenues from originating, marketing and servicing mortgage loans as well as valuation adjustments related to capitalized mortgage servicing rights are included in Mortgage banking activities, net in the unaudited Consolidated Statements of Income and revenues from the Company's SBA loan servicing rights are included in Loan and lease fee income in the unaudited Consolidated Statements of Income. Besides the impairment on loan servicing rights noted above, there was no impairment of other intangible assets as of March 31, 2023 or December 31, 2022. Changing economic conditions that may adversely affect the Company's performance and could result in impairment, which could adversely affect earnings in the future.
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DEPOSITS |
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Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEPOSITS | 10. DEPOSITS The following table shows deposits by category:
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INCOME TAXES |
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Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES There were no unrecognized tax benefits as of March 31, 2023. The Company records interest and penalties on potential income tax deficiencies as income tax expense. The Company's federal and state tax returns for the 2019 through 2022 tax years are subject to examination as of March 31, 2023. The Company does not expect to record or realize any material unrecognized tax benefits during 2023. The amortization of the low-income housing credit investments has been reflected as income tax expense of $1.4 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively. The amount of affordable housing tax credits, amortization, and tax benefits recorded as income tax expense for the three months ended March 31, 2023 were $1.2 million, $1.4 million and $0.4 million, respectively. The carrying value of the investment in affordable housing credits is $67.6 million at March 31, 2023, compared to $69.0 million at December 31, 2022.
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FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES | 12. FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES ASC 820-10, Fair Value Measurement (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 March 31, 2023 and December 31, 2022 by level in the valuation hierarchy (as described above):
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. The Company's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While the Company believes its 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 Securities classified as available-for-sale are reported at fair value using Level 2 inputs. The Company believes that this Level 2 designation is appropriate under ASC 820-10, as these securities are GSEs and GNMA securities with almost all fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities the Company obtains 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 investments Other investments includes equity investments without readily determinable fair values and equity method investments, which are categorized as Level 3. The Company’s equity investments without readily determinable fair values are held at cost, and are adjusted for any observable transactions during the reporting period and its equity method investments are initially recorded at cost based on the Company’s percentage ownership in the investee, and are adjusted to reflect the recognition of the Company’s proportionate share of income or loss of the investee based on the investee’s earnings. 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 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 other real estate owned was estimated using Level 3 inputs based on appraisals obtained from third parties. Loans held for sale The fair value of 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. Other assets Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements. Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty. Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale. Valuation of risk participation agreements are obtained from an independent pricing service. Other liabilities Other liabilities include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, risk participation agreements, and derivative related to the sale of certain Visa Class B common shares. Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty. Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale. Valuation of foreign exchange forward contracts and risk participation agreements are obtained from an independent pricing service. Valuation of the derivative related to the sale of certain Visa Class B common shares is based on: (i) the agreed upon graduated fee structure; (ii) the length of time until the resolution of the Visa covered litigation; and (iii) the estimated impact of dilution in the conversion ratio of Class B shares resulting from changes in the Visa covered litigation. 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, cash equivalents, and restricted cash 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 Investment securities include debt securities classified as held-to-maturity or available-for-sale. Fair value is estimated using quoted prices for similar securities, which the Company obtains from a third party vendor. The Company uses 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 the Company to validate the vendor’s methodology as described above in available-for-sale securities. Other investments Other investments includes equity investments without readily determinable fair values (see discussion in “Fair Value of Financial Assets and Liabilities” section above). 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 and leases Loans and leases are segregated by portfolio segments with similar financial characteristics. The fair values of loans and leases, 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, if the loan is collateral dependent. Estimated cash flows, discounted using a rate commensurate with current rates and the risk associated with the estimated cash flows, are used if appraisals are not available. This technique does 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. Accrued interest receivable The carrying amounts of interest receivable approximate fair value. Other assets Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements (see discussion in “Fair Value of Financial Assets and Liabilities” section above). 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 the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Off-balance sheet instruments The fair value of off-balance sheet instruments, including swap guarantees of $9.9 million at March 31, 2023 and $10.4 million at December 31, 2022, respectively, and standby letters of credit, approximates the recorded net deferred fee amounts. Because letters of credit are generally not assignable by either the Company or the borrower, they only have value to the Company and the borrower. In determining the fair value of the swap guarantees, the Company assesses the underlying credit risk exposure for each borrower in a paying position to the third-party financial institution. Accrued interest payable The carrying amounts of interest payable approximate fair value. Other liabilities Other liabilities include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, risk participation agreements, and derivative related to the sale of certain Visa Class B common shares (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Financial instruments measured at fair value using significant unobservable inputs (Level 3) The following table provides a description of the valuation techniques and significant unobservable inputs for the Company's financial instruments classified as Level 3:
The book value and estimated fair value of the Company's financial instruments are as follows:
(1) Includes reverse mortgage loans. At March 31, 2023 and December 31, 2022 the Company had no commitments to extend credit measured at fair value.
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DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | 13. DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both economic conditions and its business operations. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. The Company does not use derivative financial instruments for trading purposes. Fair Values of Derivative Instruments The table below presents the fair value of derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of March 31, 2023.
The table below presents the fair value of derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of December 31, 2022.
Derivatives Designated as Hedging Instruments: Cash Flow Hedges of Interest Rate Risk The Company's objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate options, including floors, caps, collars, or swaps as part of its interest rate risk management strategy. Interest rate options designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has agreements with certain derivative counterparties that contain a provision under which, if it defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain derivative counterparties that contain a provision where if it fails to maintain its status as a well-capitalized or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. In February 2023, the Company purchased an interest rate floor at a premium of $1.4 million with a $100.0 million notional amount to hedge variable cash flows associated with a variable rate loan pool through the first quarter of 2026. Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. If the Company determines that a cash flow hedge is no longer highly effective, future changes in the fair value of the hedging instrument would be reported in earnings. During the three months ending March 31, 2023, less than $0.1 million of amortization expense on the premium was reclassified into interest income. The Company does not expect any unrealized gains or losses related to cash flow hedges to be reclassified into earnings in the next twelve months. In 2020, the Company terminated its three interest rate swaps that were designated as cash flow hedges for a net gain of $1.3 million, recognized in accumulated other comprehensive income. The derivatives were used to hedge the variable cash flows associated with a variable rate loan pool. Hedge accounting was discontinued, and the net gain in accumulated comprehensive income is reclassified into earnings when the transaction affects earnings. As the underlying hedged transaction continues to be probable, the $1.3 million net gain will be recognized into earnings on a straight-line basis over each derivative's original contract term. During the three months ended March 31, 2023, less than $0.1 million was reclassified into interest income. During the next twelve months, the Company estimates that an additional $0.1 million will be reclassified as an increase to interest income. Derivatives Not Designated as Hedging Instruments: Customer Derivatives – Interest Rate Swaps The Company enters into interest rate swaps with commercial loan customers wishing to manage interest rate risk. The Company then enters into corresponding swap agreements with swap dealer counterparties to economically hedge the exposure arising from these contracts. The interest rate swaps with both the customers and third parties are not designated as hedges under ASC 815, Derivatives and Hedging (ASC 815) and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC 820. As of March 31, 2023, there were no fair value adjustments related to credit quality. Derivative Financial Instruments from Mortgage Banking Activities Derivative financial instruments related to mortgage banking activities are recorded at fair value and are not designated as accounting hedges. This includes commitments to originate certain fixed-rate residential mortgage loans to customers, also referred to as interest rate lock commitments. The Company may also enter into forward sale commitments to sell loans to investors at a fixed price at a future date and trade asset-backed securities to mitigate interest rate risk. The table below presents the effect of the derivative financial instruments on the unaudited Consolidated Statements of Income for the three months ended March 31, 2023 and March 31, 2022.
Foreign Exchange Forward Contracts The Company enters into foreign exchange forward contracts (FX forwards) with customers to exchange one currency for another on an agreed date in the future at an agreed exchange rate. The Corporation then enters into corresponding FX forwards with swap dealer counterparties to economically hedge its exposure on the exchange rate component of the customer agreements. The FX forwards with both the customers and third parties are not designated as hedges under ASC 815 and are marked to market through earnings. Exposure to gains and losses on these contracts increase or decrease over their respective lives as currency exchange and interest rates fluctuate. As the FX forwards are structured to offset each other, changes to the underlying term structure of currency exchange rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC 820. As of March 31, 2023, there were no fair value adjustments related to credit quality. Risk Participation Agreements The Company may enter into a risk participation agreement (RPA) with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed. This type of derivative is referred to as an “RPA sold.” In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the Corporation has provided a loan structured with a derivative, the Corporation may purchase an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared. This type of derivative is referred to as an “RPA purchased.” Swap Guarantees The Company entered into agreements with one unrelated financial institutions whereby those financial institutions entered into interest rate derivative contracts (interest rate swap transactions) directly with customers referred to them by the Company. Under the terms of the agreements, those financial institutions have recourse to us for any exposure created under each swap transaction, only 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 March 31, 2023 and December 31, 2022, there were 203 and 209 variable-rate to fixed-rate swap transactions between the third-party financial institutions and the Company's customers, respectively. The initial notional aggregate amount was approximately $0.8 billion at March 31, 2023 and December 31, 2022. At March 31, 2023, the swap transactions remaining maturities ranged from under 1 year to 12 years. At March 31, 2023, 1 of these customer swaps was in a paying position to third parties for less than $0.1 million, with our swap guarantees having a fair value of $9.9 million. At December 31, 2022, none of these customer swaps were in a paying position to third parties, with the Company's swap guarantees having a fair value of $10.4 million. However, for both periods, none of the Company's customers were in default of the swap agreements. Credit-risk-related Contingent Features The Company has agreements with certain derivative counterparties that contain a provision under which, if it defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $6.7 million in cash against its obligations under these agreements which meets or exceeds the minimum collateral posting requirements. If the Company had breached any of these provisions at March 31, 2023, it could have been required to settle its obligations under the agreements at the termination value.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | 14. SEGMENT INFORMATION As defined in 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. The Company evaluates performance based on pretax net income relative to resources used, and allocate resources based on these results. The accounting policies applicable to the Company's segments are those that apply to its preparation of the accompanying unaudited Consolidated Financial Statements. Based on these criteria, the Company has identified three segments: WSFS Bank, Cash Connect®, and Wealth Management. The WSFS Bank segment provides financial products to commercial and consumer customers. Consumer and Commercial Banking, Commercial Real Estate Lending and other banking business units are operating departments of WSFS Bank. These departments share the same regulators, 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 in the WSFS Bank segment. The Company's Cash Connect® segment provides ATM vault cash, smart safe and other 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 planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate, and institutional clients through multiple integrated businesses. Bryn Mawr Trust® is our predominant Private Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals. The Bryn Mawr Trust Company of Delaware provides personal trust and fiduciary services to families and individuals across the U.S. and internationally. WSFS Institutional Services® provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles. Private Wealth Management serves high-net-worth clients and institutions by providing trustee and advisory services, financial planning, customized investment strategies, brokerage products such as annuities and traditional banking services such as credit and deposit products tailored to its clientele. Private Wealth Management includes businesses that operate under the bank’s charter, through a broker/dealer and as a registered investment advisor (RIA). It generates revenue through fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody. Powdermill® is a multi-family office specializing in providing independent solutions to high-net-worth individuals, families and corporate executives through a coordinated, centralized approach. The following tables show segment results for the three months ended March 31, 2023 and 2022:
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Secondary Market Loan Sales The Company typically sells newly originated residential mortgage loans in the secondary market to mortgage loan aggregators and to GSEs such as FHLMC, FNMA, and on a more limited basis, the FHLB. Loans held for sale are reflected on the unaudited Consolidated Statements of Financial Condition at fair value with changes in the value reflected in the unaudited Consolidated Statements of Income. Gains and losses are recognized at the time of sale. The Company periodically retains the servicing rights on residential mortgage loans sold which results in monthly service fee income. The mortgage servicing rights are included in Intangible assets on the unaudited Consolidated Statements of Financial Condition. Otherwise, the Company sells loans with servicing released on a nonrecourse basis. Rate-locked loan commitments that the Company intends to sell in the secondary market are accounted for as derivatives under ASC 815. The Company does 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 repurchases during the three months ended March 31, 2023 and two repurchases for $0.8 million during the same period in 2022. Unfunded Lending Commitments At March 31, 2023 and December 31, 2022, the allowance for credit losses of unfunded lending commitments was $11.6 million and $11.9 million, respectively. A provision release of $0.2 million was recognized during the three months ended March 31, 2023 compared to a provision expense of $0.1 million during the three months ended March 31, 2022.
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CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 16. CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss 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 and actuarial gains and losses on defined benefit pension plans. Changes to accumulated other comprehensive loss are presented, net of tax, as a component of stockholders’ equity. Amounts that are reclassified out of accumulated other comprehensive loss are recorded on the unaudited Consolidated Statements of Income either as a gain or loss. Changes to accumulated other comprehensive loss by component are shown, net of taxes, in the following tables for the period indicated:
The unaudited Consolidated Statements of Income were impacted by components of other comprehensive income as shown in the tables below:
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LEGAL AND OTHER PROCEEDINGS |
3 Months Ended |
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Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL AND OTHER PROCEEDINGS | 17. LEGAL AND OTHER PROCEEDINGS In accordance with the current accounting standards for loss contingencies, the Company establishes reserves for litigation-related matters that arise in the ordinary course of its 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. In addition, the Company's defense of litigation claims may result in legal fees, which it expenses as incurred. There were no material changes or additions to other significant pending legal or other proceedings involving the Company other than those arising out of routine operations.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In preparing the unaudited Consolidated Financial Statements, the Company is 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 credit losses (including loans and leases held for investment, investment securities available-for-sale and held-to-maturity), fair values of assets acquired and liabilities assumed in acquisitions accounted for as business combinations using the acquisition method of accounting, lending-related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, and income taxes. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the establishment of additional allowance and lending-related commitment reserves, changes in the fair value of financial instruments, as well as increased post-retirement benefits and income tax expense. The Company's accounting and reporting policies conform to Generally Accepted Accounting Principles in the U.S. (GAAP), 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. Certain prior period amounts have been reclassified to conform with current period presentation. 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, 2023. These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2022 (the 2022 Annual Report on Form 10-K) that was filed with the SEC on February 28, 2023 and is available at www.sec.gov or on the website at www.wsfsbank.com. All significant intercompany accounts and transactions were eliminated in consolidation.
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Past Due and Nonaccrual Loans and Allowance for Credit Losses - Loans and Leases | Past Due and Nonaccrual Loans Past due loans are defined as loans contractually past due 90 days or more as to principal or interest payments. Past due loans 90 days or more that remain in accrual status are considered well secured and in the process of collection. Nonaccruing loans are those on which the accrual of interest has ceased. Loans are placed on nonaccrual status immediately if, in the opinion of the Company, collection is doubtful, or when principal or interest is past due 90 days or more and the loan is not well secured and in the process of collection. 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 the Company’s assessment of the ultimate collectability of principal and interest. Loans are returned to accrual status when the Company assesses that the borrower has the ability to make all principal and interest payments in accordance with the terms of the loan (i.e., a consistent repayment record, generally six consecutive payments, has been demonstrated). For loans greater than 90 days past due, unless loans are well-secured and collection is imminent, their respective reserves are generally charged off once the loss has been confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. A loan, for which the terms have been modified in the current reporting period in the form of principal forgiveness, an interest rate reduction, an other than-insignificant payment delay, or a term extension to a borrower experiencing financial difficulty, is considered a troubled loan. The assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Principal balances are generally not forgiven when a loan is modified as a troubled loan. Nonaccruing troubled loans remain in nonaccrual status until there has been a period of sustained repayment performance demonstrated and repayment is reasonably assured. Since the effect of most troubled loans are already included in the Company’s estimate of expected credit losses, a change to the allowance for credit losses is generally not recorded upon modification. For additional detail regarding past due and nonaccrual loans, see Note 7. Allowance for Credit Losses - Loans and Leases The Company establishes its allowance in accordance with guidance provided in ASC 326, Financial Instruments - Credit Losses. The allowance for credit losses includes quantitative and qualitative factors that comprise the Company's current estimate of expected credit losses, including the Company's portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to qualitative adjustment factors, prepayment speeds and reasonable and supportable forecasts about future economic conditions. The Company's portfolio segments, established based on similar risk characteristics and loss behaviors, are: •Commercial Loans: Commercial and industrial - real estate secured, commercial and industrial - non-real estate secured, owner-occupied commercial, commercial mortgages, construction and commercial small business leases, and •Residential and Consumer Loans: Residential mortgage, equity secured lines and loans, installment loans, unsecured lines of credit, originated education loans and previously acquired education loans. Expected credit losses are net of expected recoveries and estimated over the contractual term, adjusted for expected prepayments. The contractual term excludes any extensions, renewals and modifications unless they are not unconditionally cancellable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Expected prepayments are based on historical experience and considers adjustments for current and future economic conditions. The allowance includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis) and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and are individually evaluated for credit losses (individual basis). Loans that share similar risk characteristics are collectively reviewed for credit loss and are evaluated based on historical loss experience, adjusted for current economic conditions and future economic forecasts. Estimated losses are determined differently for commercial and residential and consumer loans, and each portfolio segment is further segmented by internally assessed risk ratings. The Company uses a single scenario third-party economic forecast to adjust the calculated historical loss rates of the portfolio segments to incorporate the effects of current and future economic conditions. The Company's economic forecast considers the general health of the economy, the interest rate environment, real estate pricing and market risk. The Company's forecast extends out 6 quarters (the forecast period) and reverts to the historical loss rates on a straight-line basis over 4 quarters (the reversion period) as it believes this to be reasonable and supportable in the current environment. The economic forecast and reversion periods will be evaluated periodically by the Company and updated as appropriate. The historical loss rates for commercial loans are estimated by determining the probability of default (PD) and expected loss given default (LGD) and are applied to the loans' exposure at default. The probability of default is calculated based on the historical rate of migration to an event of credit loss during the look-back period. The historical loss rates for consumer loans is calculated based on average net loss rates over the same look-back period. The current look-back period is 49 quarters which ensures historical loss rates are adequately considering losses within a full credit cycle. Loans that do not share similar risk characteristics with any loan segments are evaluated on an individual basis. These loans, which may include troubled loans, are not included in the collective basis evaluation. When it is probable the Company 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, these loans are individually reviewed and measured for potential credit loss. The amount of the potential credit loss is measured using any of the following three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the fair value of collateral if the loan is collateral dependent; or (iii) the loan’s observable market price. If the measured fair value of the loan is less than the amortized cost basis of the loan, an allowance for credit loss is recorded. For collateral dependent loans, the expected credit losses at the individual asset level are the difference between the collateral's fair value (less cost to sell) and the amortized cost. Qualitative adjustment factors consider various internal and external conditions which are allocated among loan segments and take into consideration: •Current underwriting policies, staff and portfolio concentrations, •Risk rating accuracy, credit and administration, •Internal risk emergence (including internal trends of delinquency, and criticized loans by segment), •Economic forecasts and conditions - locally and nationally (including market trends impacting collateral values), which is separate from or in addition to the third-party economic forecast described above, and •Competitive environment, as it could impact loan structure and underwriting. These factors are based on their relative standing compared to the period in which historical losses are used in quantitative reserve estimates and current directional trends, and reasonable and supportable forecasts. Qualitative factors can add to or subtract from quantitative reserves. The Company's 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 the Company's loan ratings and allowance for credit losses and the Bank's internal loan review department performs recurring loan reviews. Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the unaudited Consolidated Statements of Financial Condition. For additional detail regarding the allowance for credit losses and the provision for credit losses, see Note 7.
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Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS The following accounting pronouncement was adopted by the Company during the three months ended March 31, 2023: ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures: In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The guidance eliminates the accounting guidance for troubled debt restructurings by creditors (ASC 310-40) while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The guidance also requires that an entity disclose current-period write-offs by year of origination for financing receivables and net investments in leases within the scope of Topic 326. The Company adopted this guidance prospectively on January 1, 2023. For further details on the impact of the adoption and accounting policies, see updated Significant Accounting Policies, as described above, and troubled loans disclosures in Note 7 - Allowance for Credit Losses and Credit Quality Information. Accounting Guidance Pending Adoption as of March 31, 2023 ASU No. 2023-01, Leases (Topic 842) Common Control Agreements: In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842) Common Control Agreements. The amendment clarifies the accounting for leasehold improvements associated with common control leases by allowing the lessee to amortize the leasehold improvements over the useful life of the common control group’s use of the underlying asset, regardless of the lease term. The guidance is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Adoption is required on a modified retrospective basis, consistent with the Company's adoption of Topic 842. The Company does not expect this update to have a material impact on the Consolidated Financial Statements. ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method: In March 2023, The FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments permit reporting entities to elect to account for any equity investments in a tax credit program using the proportional amortization method if certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Adoption is required on a prospective, modified retrospective, or retrospective basis depending on the amendment. The Company does not expect this update to have a material impact on the Consolidated Financial Statements.
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Fair Value Measurement | Available-for-sale securities Securities classified as available-for-sale are reported at fair value using Level 2 inputs. The Company believes that this Level 2 designation is appropriate under ASC 820-10, as these securities are GSEs and GNMA securities with almost all fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities the Company obtains 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 investments Other investments includes equity investments without readily determinable fair values and equity method investments, which are categorized as Level 3. The Company’s equity investments without readily determinable fair values are held at cost, and are adjusted for any observable transactions during the reporting period and its equity method investments are initially recorded at cost based on the Company’s percentage ownership in the investee, and are adjusted to reflect the recognition of the Company’s proportionate share of income or loss of the investee based on the investee’s earnings. 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 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 other real estate owned was estimated using Level 3 inputs based on appraisals obtained from third parties. Loans held for sale The fair value of 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. Other assets Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements. Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty. Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale. Valuation of risk participation agreements are obtained from an independent pricing service. Other liabilities Other liabilities include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, risk participation agreements, and derivative related to the sale of certain Visa Class B common shares. Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty. Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale. Valuation of foreign exchange forward contracts and risk participation agreements are obtained from an independent pricing service. Valuation of the derivative related to the sale of certain Visa Class B common shares is based on: (i) the agreed upon graduated fee structure; (ii) the length of time until the resolution of the Visa covered litigation; and (iii) the estimated impact of dilution in the conversion ratio of Class B shares resulting from changes in the Visa covered litigation. 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, cash equivalents, and restricted cash 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 Investment securities include debt securities classified as held-to-maturity or available-for-sale. Fair value is estimated using quoted prices for similar securities, which the Company obtains from a third party vendor. The Company uses 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 the Company to validate the vendor’s methodology as described above in available-for-sale securities. Other investments Other investments includes equity investments without readily determinable fair values (see discussion in “Fair Value of Financial Assets and Liabilities” section above). 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 and leases Loans and leases are segregated by portfolio segments with similar financial characteristics. The fair values of loans and leases, 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, if the loan is collateral dependent. Estimated cash flows, discounted using a rate commensurate with current rates and the risk associated with the estimated cash flows, are used if appraisals are not available. This technique does 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. Accrued interest receivable The carrying amounts of interest receivable approximate fair value. Other assets Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements (see discussion in “Fair Value of Financial Assets and Liabilities” section above). 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 the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Off-balance sheet instruments The fair value of off-balance sheet instruments, including swap guarantees of $9.9 million at March 31, 2023 and $10.4 million at December 31, 2022, respectively, and standby letters of credit, approximates the recorded net deferred fee amounts. Because letters of credit are generally not assignable by either the Company or the borrower, they only have value to the Company and the borrower. In determining the fair value of the swap guarantees, the Company assesses the underlying credit risk exposure for each borrower in a paying position to the third-party financial institution. Accrued interest payable The carrying amounts of interest payable approximate fair value. Other liabilities Other liabilities include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, risk participation agreements, and derivative related to the sale of certain Visa Class B common shares (see discussion in “Fair Value of Financial Assets and Liabilities” section above).
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NONINTEREST INCOME (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Credit/Debit Card and ATM Income | The following table presents the components of credit/debit card and ATM income:
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Schedule of Investment Management and Fiduciary Income | The following table presents the components of investment management and fiduciary income:
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Schedule of Deposit Service Charges | The following table presents the components of deposit service charges:
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Schedule of Other Income | The following table presents the components of other income:
(1)Includes commissions income from BMTIA in 2022. The BMTIA business was sold during the second quarter of 2022.
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EARNINGS PER SHARE (Tables) |
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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:
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INVESTMENT SECURITIES (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Securities, Available-for-sale | The following tables detail the amortized cost, allowance for credit losses and the estimated fair value of the Company's investments in available-for-sale and held-to-maturity debt securities. None of the Company's investments in debt securities are classified as trading.
(1)Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value basis at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $137.3 million at March 31, 2023, which are offset in Accumulated other comprehensive loss. At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss.
(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 transferred held-to-maturity securities included net unrealized losses of $142.8 million at December 31, 2022, which are offset in Accumulated other comprehensive loss. At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss.
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Schedule of Debt Securities, Held-to-maturity | The following tables detail the amortized cost, allowance for credit losses and the estimated fair value of the Company's investments in available-for-sale and held-to-maturity debt securities. None of the Company's investments in debt securities are classified as trading.
(1)Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value basis at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $137.3 million at March 31, 2023, which are offset in Accumulated other comprehensive loss. At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss.
(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 transferred held-to-maturity securities included net unrealized losses of $142.8 million at December 31, 2022, which are offset in Accumulated other comprehensive loss. At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. The following table presents the activity in the allowance for credit losses for state and political subdivisions debt securities for the three months ended March 31, 2023 and 2022:
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Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of available-for-sale debt securities at March 31, 2023 and December 31, 2022 are presented in the table below:
(1)Actual maturities could differ from contractual maturities. The scheduled maturities of held-to-maturity debt securities at March 31, 2023 and December 31, 2022 are presented in the table below:
(1)Actual maturities could differ from contractual maturities.
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Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category | For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at March 31, 2023.
For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at December 31, 2022.
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Schedule of Held-to-Maturity Credit Quality Indicators | The following table summarizes the amortized cost of debt securities held-to-maturity as of March 31, 2023, aggregated by credit quality indicator:
The following table summarizes the amortized cost of debt securities held-to-maturity as of December 31, 2022, aggregated by credit quality indicator:
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LOANS AND LEASES (Tables) |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loan and Lease Portfolio by Category | The following table shows the Company's loan and lease portfolio by category:
(1) Includes reverse mortgages at fair value of $2.7 million at March 31, 2023 and $2.4 million at December 31, 2022. (2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
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ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Loan Losses and Loan Balances | The following tables provide the activity of allowance for credit losses and loan balances for the three months ended March 31, 2023 and 2022. The increase was primarily due to the impacts of the economic uncertainty and forecast and net loan growth.
(1)Includes commercial small business leases. (2)Period-end loan balance excludes reverse mortgages at fair value of $2.7 million. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
(1)Includes commercial small business leases. (2)Period-end loan balance excludes reverse mortgages at fair value of $4.3 million. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. (4)Includes $23.5 million initial provision for credit losses on non-PCD loans.
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Summary of Nonaccrual and Past Due Loans | The following tables show nonaccrual and past due loans presented at amortized cost at the date indicated:
(1)Includes commercial small business leases. (2)Residential accruing current balances excludes reverse mortgages at fair value of $2.7 million. (3)Includes $15.5 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.
(1)There were no nonaccrual loans with an allowance as of December 31, 2022. (2)Includes commercial small business leases. (3)Residential accruing current balances excludes reverse mortgages, at fair value of $2.4 million. (4)Includes $21.1 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss. The following table shows the performance of loans that have been modified in the last 12 months:
(1)Includes commercial small business leases. (2)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
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Schedule Of Collateral Dependent Loans | The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at March 31, 2023 and December 31, 2022:
(1)Includes commercial small business leases. (2)Excludes reverse mortgages at fair value. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
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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 credit losses as of March 31, 2023.
(1)Includes commercial small business leases. (2)Excludes reverse mortgages at fair value. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2022.
(1)Includes commercial small business leases. (2)Excludes reverse mortgages at fair value. (3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
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Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated | The following table shows the amortized cost basis at the end of the reporting period of troubled loans, disaggregated by portfolio segment and type of concession granted.
(1)Includes commercial small business leases. (2)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. The following table describes the financial effect of the modifications made to troubled loans as of March 31, 2023:
(1)Represents the weighted-average increase in the life of modified loans measured in years, which reduces monthly payment amounts for borrowers. (2)Represents the weighted-average decrease in the contractual interest rate on the modified loans. (3)Represents the weighted-average percentage monthly payments were reduced during the period of modification. The following table presents the balance of TDRs as of the indicated date:
The following table presents information regarding the types of loan modifications made for the three months ended March 31, 2022:
(1)Other includes interest rate reduction, forbearance, and interest only payments. The following table presents loans modified as TDRs during the three months ended March 31, 2022.
(1)During the three months ended March 31, 2022 the TDRs set forth in the table above resulted in a $0.1 million increase in the allowance for credit losses, and no additional charge-offs. During the three months ended March 31, 2022, no TDRs defaulted that had received troubled debt modification during the past twelve months. (2)The TDRs set forth in the table above did not occur as a result of the loan forbearance program under the CARES Act.
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LEASES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost | The components of operating lease cost were as follows:
(1)Includes variable lease cost and short-term lease cost.
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Summary of Balance Sheet Information | Supplemental balance sheet information related to operating leases was as follows:
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Schedule of Lease Maturities | Maturities of operating lease liabilities were as follows:
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Summary of Supplemental Cash Flow Information | Supplemental cash flow information related to operating leases was as follows:
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Schedule of Direct Financing Leases | The components of direct finance lease income are summarized in the table below:
Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows:
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 allocation of goodwill to the reportable operating segments for purposes of goodwill impairment testing:
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Summary of Finite-Lived Intangible Assets | The following table summarizes the Company's intangible assets:
(1)Includes reversal of impairment losses of less than $0.1 million for the three months ended March 31, 2023. (2)Includes impairment losses of $0.3 million for the year ended December 31, 2022
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Schedule of Indefinite-Lived Intangible Assets | The following table summarizes the Company's intangible assets:
(1)Includes reversal of impairment losses of less than $0.1 million for the three months ended March 31, 2023. (2)Includes impairment losses of $0.3 million for the year ended December 31, 2022
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Schedule of Estimated Amortization Expense of Intangibles | The following table presents the estimated future amortization expense on definite life intangible assets:
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DEPOSITS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits By Category | The following table shows deposits by category:
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FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Carried at Fair Value | The following tables present financial instruments carried at fair value as of March 31, 2023 and December 31, 2022 by level in the valuation hierarchy (as described above):
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Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following table provides a description of the valuation techniques and significant unobservable inputs for the Company's financial instruments classified as Level 3:
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Book Value and Estimated Fair Value of Financial Instruments | The book value and estimated fair value of the Company's financial instruments are as follows:
(1) Includes reverse mortgage loans.
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | The table below presents the fair value of derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of March 31, 2023.
The table below presents the fair value of derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of December 31, 2022.
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Summary of Company's Derivative Financial Instruments | The table below presents the effect of the derivative financial instruments on the unaudited Consolidated Statements of Income for the three months ended March 31, 2023 and March 31, 2022.
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SEGMENT INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Segment Information | The following tables show segment results for the three months ended March 31, 2023 and 2022:
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CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | Changes to accumulated other comprehensive loss by component are shown, net of taxes, in the following tables for the period indicated:
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Components of Other Comprehensive Income | The unaudited Consolidated Statements of Income were impacted by components of other comprehensive income as shown in the tables below:
|
NONINTEREST INCOME - Credit/Debit Card and ATM Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Total credit/debit card and ATM income | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | $ 13,361 | $ 7,681 |
Bailment fees | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | 8,684 | 2,785 |
Interchange fees | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | 3,886 | 4,099 |
Other card and ATM fees | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | $ 791 | $ 797 |
NONINTEREST INCOME - Investment Management and Fiduciary Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Investment management and fiduciary income | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | $ 30,476 | $ 30,181 |
Trust fees | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | 20,516 | 19,090 |
Wealth management and advisory fees | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | $ 9,960 | $ 11,091 |
NONINTEREST INCOME - Deposit Service Charges (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Deposit service charges | ||
Revenue from External Customer [Line Items] | ||
Deposit service charges | $ 6,039 | $ 5,825 |
Service fees | ||
Revenue from External Customer [Line Items] | ||
Deposit service charges | 4,136 | 3,884 |
Return and overdraft fees | ||
Revenue from External Customer [Line Items] | ||
Deposit service charges | 1,647 | 1,775 |
Other deposit service fees | ||
Revenue from External Customer [Line Items] | ||
Deposit service charges | $ 256 | $ 166 |
NONINTEREST INCOME - Other Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Total other income | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | $ 9,251 | $ 12,553 |
Managed service fees | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | 4,799 | 3,838 |
Currency preparation | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | 1,282 | 871 |
ATM loss protection | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | 648 | 608 |
Capital markets revenue | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | 2,879 | 1,508 |
Miscellaneous products and services | ||
Revenue from External Customer [Line Items] | ||
Noninterest income | $ (357) | $ 5,728 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Numerator: | ||
Net income attributable to WSFS | $ 62,404 | $ 3,804 |
Net income attributable to WSFS | $ 62,404 | $ 3,804 |
Denominator: | ||
Weighted average basic shares (in shares) | 61,510,714 | 64,942,593 |
Dilutive potential common shares (in shares) | 168,000 | 184,000 |
Weighted average fully diluted shares (in shares) | 61,678,871 | 65,127,000 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.01 | $ 0.06 |
Diluted (in dollars per share) | $ 1.01 | $ 0.06 |
Outstanding common stock equivalents having no dilutive effect (in shares) | 6,000 | 14,000 |
INVESTMENT SECURITIES - Schedule of Held-to-maturity, Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Allowance for credit losses: | ||
Beginning balance | $ 10 | |
Ending balance | 9 | |
State and political subdivisions | ||
Allowance for credit losses: | ||
Beginning balance | 10 | $ 4 |
Provision for credit losses | (1) | 0 |
Ending balance | $ 9 | $ 4 |
INVESTMENT SECURITIES - Equity Investments (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Fair value | $ 24.8 | $ 26.1 | |
(Loss) gain on sale of equity investments | $ 1.3 | $ (0.4) |
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable on loans and leases | $ 61.7 | $ 59.3 |
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Troubled Debt Restructurings (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
Receivables [Abstract] | |
Performing TDRs | $ 19,737 |
Nonperforming TDRs | 2,006 |
Total TDRs | $ 21,743 |
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
loan
| |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total loans identified during the period | $ 256,000 |
Increase in allowance for loan losses | 100,000 |
Troubled debt restructurings charged off | $ 0 |
TRD defaulted | loan | 0 |
Commercial | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total loans identified during the period | $ (8,000) |
Residential | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total loans identified during the period | 6,000 |
Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total loans identified during the period | $ 258,000 |
LEASES - Narrative (Details) |
Mar. 31, 2023 |
---|---|
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term (in years) | 39 years |
LEASES - Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating lease cost | $ 4,793 | $ 5,350 |
Sublease income | (49) | (86) |
Net lease cost | $ 4,744 | $ 5,264 |
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Right-of-use assets | $ 129,642 | $ 138,182 |
Lease liabilities | $ 150,162 | $ 158,269 |
Weighted average remaining lease term (in years) | 17 years 10 months 9 days | 17 years 10 months 28 days |
Weighted average discount rate | 4.25% | 4.25% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
LEASES - Maturities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Remaining in 2022 | $ 14,571 | |
2023 | 18,100 | |
2024 | 18,113 | |
2025 | 14,597 | |
2026 | 13,157 | |
After 2026 | 152,418 | |
Total lease payments | 230,956 | |
Less: Interest | (80,794) | |
Present value of lease liabilities | $ 150,162 | $ 158,269 |
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 5,060 | $ 5,651 |
Right of use assets obtained in exchange for new operating lease liabilities (non-cash) | $ 0 | $ 13,707 |
LEASES - Direct Financing Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Leases [Abstract] | |||
Interest income on lease receivable | $ 12,382 | $ 9,737 | |
Interest income on deferred fees and costs, net | (1,386) | (544) | |
Total direct financing lease net interest income | 10,996 | $ 9,193 | |
Leasing receivables | |||
Lease receivables | 665,312 | $ 642,369 | |
Unearned income | (101,911) | (95,683) | |
Deferred fees and costs | 13,183 | 12,295 | |
Net investment in direct financing leases | $ 576,584 | $ 558,981 | |
Direct Financing Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and fees on loans and leases | Interest and fees on loans and leases |
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Impairment losses related to goodwill | $ 0 | ||
Amortization expense on other intangible assets | 3,845,000 | $ 3,963,000 | |
First Mortgage | |||
Finite-Lived Intangible Assets [Line Items] | |||
Value of servicing rights | 2,000,000 | $ 2,100,000 | |
SBA Loans | |||
Finite-Lived Intangible Assets [Line Items] | |||
Value of servicing rights | 3,900,000 | 4,000,000 | |
Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense on other intangible assets | 3,800,000 | $ 4,000,000 | |
Impairment of other intangible assets | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Allocation of Goodwill to Our Reportable Operating Segments for Purposes of Goodwill Impairment Testing (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 883,637 |
Goodwill adjustments | 0 |
Goodwill ending balance | 883,637 |
WSFS Bank | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 753,586 |
Goodwill adjustments | 0 |
Goodwill ending balance | 753,586 |
Cash Connect | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 0 |
Goodwill adjustments | 0 |
Goodwill ending balance | 0 |
Wealth Management | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 130,051 |
Goodwill adjustments | 0 |
Goodwill ending balance | $ 130,051 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense of Intangibles (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining in 2023 | $ 12,393 | |
2024 | 16,308 | |
2025 | 15,978 | |
2026 | 15,316 | |
2027 | 14,893 | |
Thereafter | 46,825 | |
Net Intangible Assets | $ 121,713 | $ 128,595 |
DEPOSITS (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Noninterest-bearing: | ||
Noninterest demand | $ 5,299,094 | $ 5,739,647 |
Total noninterest-bearing | 5,299,094 | 5,739,647 |
Interest-bearing: | ||
Interest-bearing demand | 3,159,174 | 3,346,682 |
Savings | 1,967,130 | 2,161,858 |
Money market | 4,001,770 | 3,730,778 |
Customer time deposits | 1,453,211 | 1,102,013 |
Brokered deposits | 309,309 | 122,591 |
Total interest-bearing | 10,890,594 | 10,463,922 |
Total deposits | $ 16,189,688 | $ 16,203,569 |
INCOME TAXES (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Tax Credit Carryforward [Line Items] | |||
Unrecognized tax benefits | $ 0 | ||
Amortization of low-income housing credit investments reflected as income tax expense | 1,400,000 | $ 1,200,000 | |
Affordable housing tax benefits | 400,000 | ||
Carrying value of investment in affordable housing credits | 67,600,000 | $ 69,000,000 | |
General Business Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit | $ 1,200,000 |
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Narrative (Details) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Derivative [Line Items] | ||
Commitments of lending operations | $ 0 | $ 0 |
Swap Guarantee | ||
Derivative [Line Items] | ||
Aggregate fair value of swaps to customers | $ 9,900,000 | $ 10,400,000 |
DERIVATIVE FINANCIAL INSTRUMENTS - Effect of Derivative Instruments on the Income Statement (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Derivative [Line Items] | ||
Amount of (Loss) or Gain Recognized in Income | $ 273 | $ 1,910 |
Interest rate lock commitments with customers | ||
Derivative [Line Items] | ||
Amount of (Loss) or Gain Recognized in Income | 421 | (1,227) |
Forward sale commitments | ||
Derivative [Line Items] | ||
Amount of (Loss) or Gain Recognized in Income | $ (148) | $ 3,137 |
SEGMENT INFORMATION - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of segments | 3 |
SEGMENT INFORMATION - Details of Segment Information - Statement of Financial Condition (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 1,103,040 | $ 837,258 | $ 2,283,769 | $ 1,532,939 |
Goodwill | 883,637 | 883,637 | ||
Other segment assets | 18,332,613 | 18,193,860 | ||
Total assets | 20,319,290 | 19,914,755 | ||
WSFS Bank | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 659,901 | 317,022 | ||
Goodwill | 753,586 | 753,586 | ||
Other segment assets | 17,933,900 | 17,824,946 | ||
Total assets | 19,347,387 | 18,895,554 | ||
Cash Connect | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 394,931 | 476,850 | ||
Goodwill | 0 | 0 | ||
Other segment assets | 3,137 | 10,429 | ||
Total assets | 398,068 | 487,279 | ||
Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 48,208 | 43,386 | ||
Goodwill | 130,051 | 130,051 | ||
Other segment assets | 395,576 | 358,485 | ||
Total assets | $ 573,835 | $ 531,922 |
COMMITMENTS AND CONTINGENCIES (Details) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2023
USD ($)
loan
|
Mar. 31, 2022
USD ($)
loan
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Guarantor Obligations [Line Items] | ||||
Provision for (recovery of) credit losses | $ 29,011,000 | $ 18,971,000 | ||
Allowance for credit losses | 169,162,000 | 136,330,000 | $ 151,861,000 | $ 94,507,000 |
Unfunded Lending Commitment | ||||
Guarantor Obligations [Line Items] | ||||
Provision for (recovery of) credit losses | (200,000) | $ 100,000 | ||
Allowance for credit losses | 11,600,000 | $ 11,900,000 | ||
Secondary Market Loan Sales | ||||
Guarantor Obligations [Line Items] | ||||
Provision for (recovery of) credit losses | $ 0 | |||
Number of loans repurchased | loan | 0 | 2 | ||
Loans repurchase amount | $ 800,000 |
LEGAL AND OTHER PROCEEDINGS (Details) |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Commitments and Contingencies Disclosure [Abstract] | |
Additions to other significant pending legal or other proceedings | $ 0 |
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