COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35638 | |
Entity Registrant Name | WSFS FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-2866913 | |
Entity Address, Address Line One | 500 Delaware Avenue, | |
Entity Address, City or Town | Wilmington, | |
Entity Address, State or Province | DE | |
Entity Address, Postal Zip Code | 19801 | |
City Area Code | (302) | |
Local Phone Number | 792-6000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | WSFS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 52,988,084 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000828944 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Interest and fees on loans and leases | $ 129,001 | $ 64,442 | $ 216,118 | $ 124,907 |
Interest on mortgage-backed securities | 12,229 | 6,190 | 22,695 | 11,589 |
Interest and dividends on investment securities: | ||||
Taxable | 31 | 16 | 50 | 33 |
Tax-exempt | 999 | 1,092 | 2,024 | 2,195 |
Other interest income | 643 | 411 | 1,593 | 1,040 |
Total interest income | 142,903 | 72,151 | 242,480 | 139,764 |
Interest expense: | ||||
Interest on deposits | 16,123 | 6,368 | 27,065 | 11,608 |
Interest on Federal Home Loan Bank advances | 806 | 2,536 | 3,396 | 4,999 |
Interest on senior debt | 1,180 | 1,180 | 2,359 | 2,359 |
Interest on federal funds purchased | 805 | 434 | 1,592 | 880 |
Interest on trust preferred borrowings | 717 | 637 | 1,443 | 1,194 |
Interest on other borrowings | 40 | 7 | 79 | 21 |
Total interest expense | 19,671 | 11,162 | 35,934 | 21,061 |
Net interest income | 123,232 | 60,989 | 206,546 | 118,703 |
Provision for loan losses | 12,195 | 2,498 | 19,849 | 6,148 |
Net interest income after provision for loan losses | 111,037 | 58,491 | 186,697 | 112,555 |
Noninterest income: | ||||
Loan fee income | 650 | 567 | 1,535 | 1,166 |
Securities gains, net | 63 | 0 | 78 | 21 |
Unrealized gains on equity investments | 1,033 | 0 | 4,831 | 15,346 |
Bank owned life insurance income | 383 | 0 | 600 | 232 |
Total non interest income | 42,871 | 34,987 | 83,993 | 82,454 |
Noninterest expense: | ||||
Salaries, benefits and other compensation | 48,550 | 30,944 | 84,755 | 60,797 |
Occupancy expense | 8,810 | 5,008 | 15,177 | 10,256 |
Equipment expense | 5,444 | 3,176 | 9,433 | 6,265 |
Data processing and operations expenses | 3,731 | 1,896 | 6,319 | 3,803 |
Professional fees | 2,915 | 2,320 | 4,787 | 4,045 |
Marketing expense | 1,947 | 1,084 | 3,537 | 1,842 |
FDIC expenses | 1,042 | 515 | 1,662 | 1,114 |
Loan workout and OREO expenses | 1,145 | 681 | 1,253 | 1,107 |
Corporate development expense | 13,946 | 457 | 40,573 | 457 |
Restructuring expense | 1,881 | 0 | 6,243 | 0 |
Recovery of fraud loss | 0 | 0 | 0 | (1,665) |
Other operating expense | 18,437 | 11,750 | 31,701 | 23,222 |
Total non interest expenses | 107,848 | 57,831 | 205,440 | 111,243 |
Income before taxes | 46,060 | 35,647 | 65,250 | 83,766 |
Income tax provision | 10,091 | 6,907 | 16,351 | 17,676 |
Net income | 35,969 | 28,740 | 48,899 | 66,090 |
Less: Net loss attributable to noncontrolling interest | (231) | 0 | (324) | 0 |
Net income attributable to WSFS | $ 36,200 | $ 28,740 | $ 49,223 | $ 66,090 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.68 | $ 0.91 | $ 1.07 | $ 2.10 |
Diluted (in dollars per share) | $ 0.68 | $ 0.89 | $ 1.06 | $ 2.05 |
Credit/debit card and ATM income | ||||
Noninterest income: | ||||
Noninterest fee income | $ 13,677 | $ 10,709 | $ 25,192 | $ 20,514 |
Investment management and fiduciary income | ||||
Noninterest income: | ||||
Noninterest fee income | 10,382 | 10,244 | 20,529 | 19,433 |
Deposit service charges | ||||
Noninterest income: | ||||
Noninterest fee income | 6,103 | 4,664 | 10,849 | 9,294 |
Mortgage banking activities, net | ||||
Noninterest income: | ||||
Noninterest fee income | 2,846 | 1,692 | 4,938 | 3,429 |
Other income | ||||
Noninterest income: | ||||
Noninterest fee income | $ 7,734 | $ 7,111 | $ 15,441 | $ 13,019 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 35,969 | $ 28,740 | $ 48,899 | $ 66,090 |
Less: Net loss attributable to noncontrolling interest | (231) | 0 | (324) | 0 |
Net income attributable to WSFS | 36,200 | 28,740 | 49,223 | 66,090 |
Net change in unrealized gains (loss) on investment securities available for sale | ||||
Net unrealized gains (loss) arising during the period, net of tax (benefit) expense of $6,289 and ($1,398), $11,831, and ($5,112), respectively | 19,591 | (4,501) | 36,856 | (16,328) |
Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of $15, $0, $19 and $5, respectively | (48) | 0 | (59) | (16) |
Net change in unrealized gains (losses) on investment securities available-for-sale | 19,543 | (4,501) | 36,797 | (16,344) |
Net change in securities held to maturity | ||||
Amortization of unrealized gain on securities reclassified to held-to-maturity, net of tax expense of $27, $36, $56, and $73, respectively | (84) | (117) | (177) | (236) |
Net change in unfunded pension liability | ||||
Change in unfunded pension liability related to unrealized (loss) gain, prior service cost and transition obligation, net of tax (benefit) expense of ($8), ($9), ($17) and $9, respectively | (34) | (30) | (175) | 29 |
Net change in cash flow hedge | ||||
Net unrealized gain (loss) arising during the period, net of tax expense (benefit) of $323, ($76), $525 and ($316) respectively | (245) | (1,010) | ||
Net unrealized gain (loss) arising during the period, net of tax expense (benefit) of $323, ($76), $525 and ($316) respectively | 1,007 | 1,637 | ||
Total other comprehensive income (loss) | 20,432 | (4,893) | 38,082 | (17,561) |
Total comprehensive income | $ 56,632 | $ 23,847 | $ 87,305 | $ 48,529 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in Unrealized (losses) gains, tax (benefit) expense | $ 6,289 | $ 1,398 | $ 11,831 | $ (5,112) |
Reclassification adjustment for gains, tax expense | 15 | 0 | 19 | 5 |
Amortization of unrealized gain on securities reclassified to held-to-maturity, tax expense | 27 | 36 | 56 | 73 |
Change in unfunded pension liability related to unrealized (loss) gain, prior service cost and transition obligation, tax (benefit) expense | (8) | (9) | (17) | 9 |
Reclassification adjustment related to derivatives, tax benefit (expense) | $ 323 | $ 525 | ||
Reclassification adjustment related to derivatives, tax benefit (expense) | $ (76) | $ (316) |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 183,632 | $ 134,939 |
Cash in non-owned ATMs | 338,006 | 484,648 |
Interest-bearing deposits in other banks including collateral of $0 at June 30, 2019 and $1,000 at December 31, 2018 | 187 | 1,170 |
Total cash and cash equivalents | 521,825 | 620,757 |
Investment securities, available for sale (amortized cost of $1,767,602 at June 30, 2019 and $1,224,227 at December 31, 2018) | 1,796,870 | 1,205,079 |
Investment securities, held to maturity, at cost (fair value $145,867 at June 30, 2019 and $149,431 at December 31, 2018) | 143,317 | 149,950 |
Other investments | 48,711 | 37,233 |
Loans, held for sale at fair value | 51,721 | 25,318 |
Loans and leases, net of allowance of $45,364 at June 30, 2019 and $39,539 at December 31, 2018 | 8,567,709 | 4,863,919 |
Bank owned life insurance | 30,118 | 6,687 |
Stock in Federal Home Loan Bank of Pittsburgh at cost | 15,874 | 19,259 |
Other real estate owned | 3,703 | 2,668 |
Accrued interest receivable | 40,784 | 22,001 |
Premises and equipment | 103,787 | 44,956 |
Goodwill | 473,712 | 166,007 |
Intangible assets | 101,984 | 20,016 |
Other assets | 256,480 | 65,020 |
Total assets | 12,156,595 | 7,248,870 |
Deposits: | ||
Noninterest-bearing | 2,205,992 | 1,626,252 |
Interest-bearing | 7,388,718 | 4,014,179 |
Total deposits | 9,594,710 | 5,640,431 |
Federal funds purchased | 115,000 | 157,975 |
Federal Home Loan Bank advances | 115,675 | 328,465 |
Trust preferred borrowings | 67,011 | 67,011 |
Senior debt | 98,497 | 98,388 |
Other borrowed funds | 18,948 | 47,949 |
Accrued interest payable | 7,064 | 1,900 |
Other liabilities | 303,302 | 85,831 |
Total liabilities | 10,320,207 | 6,427,950 |
Stockholders’ Equity: | ||
Common stock $0.01 par value, 90,000,000 shares authorized; issued 57,239,683 at June 30, 2019 and 56,926,978 at December 31, 2018 | 573 | 569 |
Capital in excess of par value | 1,043,065 | 349,810 |
Accumulated other comprehensive income (loss) | 22,688 | (15,394) |
Retained earnings | 830,397 | 791,031 |
Treasury stock at cost, 4,007,722 shares at June 30, 2019 and 25,552,887 shares at December 31, 2018 | (60,112) | (305,096) |
Total stockholders’ equity of WSFS | 1,836,611 | 820,920 |
Noncontrolling interest | (223) | 0 |
Total stockholders' equity | 1,836,388 | 820,920 |
Total liabilities and stockholders' equity | $ 12,156,595 | $ 7,248,870 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Interest-bearing deposits in banks and other financial institutions, collateral | $ 0 | $ 1,000 |
Available-for-sale securities, amortized cost basis | 1,767,602 | 1,224,227 |
Held-to-maturity securities, fair value | 145,867 | 149,431 |
Allowance for loan and lease losses | $ 45,364 | $ 39,539 |
Common stock, shares authorized (in shares) | 90,000,000 | 65,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 57,239,683 | 56,926,978 |
Treasury stock, shares (in shares) | 4,007,722 | 25,552,887 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Treasury StockBeneficial | [1] | Total Stockholders' Equity of WSFS | Non-controlling Interest | |
Beginning Balance at Dec. 31, 2017 | $ 724,345 | $ 563 | $ 336,271 | $ (8,152) | $ 669,557 | $ (273,894) | $ 724,345 | $ 0 | |||
Beginning Balance (in shares) at Dec. 31, 2017 | 56,279,527 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 66,090 | 66,090 | 66,090 | 0 | |||||||
Other comprehensive income (loss) | (17,561) | (17,581) | (17,581) | ||||||||
Cash dividend | (6,298) | (6,298) | (6,298) | ||||||||
Issuance of common stock including proceeds from exercise of common stock options | 7,062 | $ 3 | 7,059 | 7,062 | |||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 405,857 | ||||||||||
Stock-based compensation expense | 1,420 | 1,420 | 1,420 | ||||||||
Repurchase of common stock | (6,061) | (6,061) | (6,061) | ||||||||
Ending Balance at Jun. 30, 2018 | 768,977 | $ 566 | 344,750 | (25,713) | 729,329 | (279,955) | 768,977 | 0 | |||
Ending Balance (in shares) at Jun. 30, 2018 | 56,685,384 | ||||||||||
Beginning Balance at Mar. 31, 2018 | 746,279 | $ 564 | 339,829 | (20,820) | 704,081 | (277,375) | 746,279 | 0 | |||
Beginning Balance (in shares) at Mar. 31, 2018 | 56,394,559 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 28,740 | 28,740 | 28,740 | 0 | |||||||
Other comprehensive income (loss) | (4,893) | (4,913) | (4,913) | ||||||||
Cash dividend | (3,472) | (3,472) | (3,472) | ||||||||
Issuance of common stock including proceeds from exercise of common stock options | 4,449 | $ 2 | 4,447 | 4,449 | |||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 290,825 | ||||||||||
Stock-based compensation expense | 474 | 474 | 474 | ||||||||
Repurchase of common stock | (2,580) | (2,580) | (2,580) | ||||||||
Ending Balance at Jun. 30, 2018 | 768,977 | $ 566 | 344,750 | (25,713) | 729,329 | (279,955) | 768,977 | 0 | |||
Ending Balance (in shares) at Jun. 30, 2018 | 56,685,384 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Reclassification due to the adoption of ASU No. 2016-01 | Accounting Standards Update 2016-01 | 20 | (20) | |||||||||
Beginning Balance at Dec. 31, 2018 | 820,920 | $ 569 | 349,810 | (15,394) | 791,031 | (305,096) | 820,920 | 0 | |||
Beginning Balance (in shares) at Dec. 31, 2018 | 56,926,978 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 48,899 | 49,223 | 49,223 | (324) | |||||||
Other comprehensive income (loss) | 38,082 | 38,082 | 38,082 | ||||||||
Cash dividend | (9,857) | (9,857) | (9,857) | ||||||||
Issuance of common stock including proceeds from exercise of common stock options | 4,127 | $ 4 | 4,123 | 4,127 | |||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 312,705 | ||||||||||
Re-issuance of treasury stock in connection with BNCL merger and related items | 950,069 | 687,897 | 262,071 | 949,968 | 101 | ||||||
Stock-based compensation expense | 1,235 | 1,235 | 1,235 | ||||||||
Repurchase of common stock | [1] | (17,087) | (17,087) | (17,087) | |||||||
Ending Balance at Jun. 30, 2019 | 1,836,388 | $ 573 | 1,043,065 | 22,688 | 830,397 | $ (60,112) | 1,836,611 | (223) | |||
Ending Balance (in shares) at Jun. 30, 2019 | 57,239,683 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock repurchased (in shares) | 271,340 | 132,993 | |||||||||
Beginning Balance at Mar. 31, 2019 | 1,789,677 | $ 569 | 1,038,494 | 2,256 | 800,511 | $ (52,078) | 1,789,752 | (75) | |||
Beginning Balance (in shares) at Mar. 31, 2019 | 56,941,493 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 35,969 | 36,200 | 36,200 | (231) | |||||||
Other comprehensive income (loss) | 20,432 | 20,432 | 20,432 | ||||||||
Cash dividend | (6,406) | (6,406) | (6,406) | ||||||||
Issuance of common stock including proceeds from exercise of common stock options | 3,890 | $ 4 | 3,886 | 3,890 | |||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 298,190 | ||||||||||
Re-issuance of treasury stock in connection with BNCL merger and related items | 175 | 0 | 92 | 0 | 92 | 83 | |||||
Stock-based compensation expense | 685 | 685 | 685 | ||||||||
Repurchase of common stock | [2] | (8,034) | (8,034) | (8,034) | |||||||
Ending Balance at Jun. 30, 2019 | $ 1,836,388 | $ 573 | $ 1,043,065 | $ 22,688 | $ 830,397 | $ (60,112) | $ 1,836,611 | $ (223) | |||
Ending Balance (in shares) at Jun. 30, 2019 | 57,239,683 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock repurchased (in shares) | 193,888 | ||||||||||
[1] | Repurchase of common stock includes 271,340 shares repurchased in connection with the Company's share buyback program approved by the Board of Directors, and 132,993 shares repurchased to cover taxes due on the consideration transferred in the Beneficial acquisition related to the vesting of unrestricted Beneficial stock awards. | ||||||||||
[2] | Repurchase of common stock includes 193,888 shares repurchased in connection with the Company's share buyback program approved by the Board of Directors. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.23 | $ 0.20 |
Repurchase of common stock (in shares) | 50,000 | 12,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income | $ 48,899 | $ 66,090 |
Less: Net loss attributable to noncontrolling interest | (324) | 0 |
Net income attributable to WSFS | 49,223 | 66,090 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 19,849 | 6,148 |
Depreciation of premises and equipment, net | 7,203 | 4,189 |
Amortization of fees and discounts, net | 24,079 | 7,914 |
Amortization of intangible assets | 5,658 | 1,482 |
Amortization of right of use lease asset | 12,982 | |
Decrease in operating lease liability | (4,405) | |
Income from mortgage banking activities, net | (4,938) | (3,429) |
Gain on sale of securities, net | (78) | (21) |
Loss on sale of other real estate owned and valuation adjustments, net | 63 | 70 |
Stock-based compensation expense | 1,235 | 1,420 |
Unrealized gain on equity investments | (4,831) | (15,346) |
Deferred income tax expense | 1,205 | 2,132 |
Increase in accrued interest receivable | (1,284) | (988) |
Decrease in other assets | 23,060 | 1,827 |
Origination of loans held for sale | (190,508) | (178,182) |
Proceeds from sales of loans held for sale | 154,508 | 177,997 |
Increase in accrued interest payable | 5,164 | 3,094 |
Decrease in other liabilities | (3,512) | (13,526) |
(Increase) decrease in value of bank owned life insurance | (632) | 779 |
Increase in capitalized interest, net | (1,808) | (1,815) |
Net cash provided by operating activities | 92,233 | 59,835 |
Investing activities: | ||
Repayments, maturities and calls of investment securities held to maturity | 8,235 | 3,780 |
Sale of investment securities available for sale | 602,432 | 7,012 |
Purchases of investment securities available for sale | (619,652) | (206,667) |
Repayments of investment securities available for sale | 90,009 | 50,233 |
Proceeds from bank-owned life insurance surrender | 59,711 | 96,429 |
Net increase in loans | (20,646) | (101,978) |
Net cash from business combinations | 76,072 | 0 |
Purchases of stock of Federal Home Loan Bank of Pittsburgh | (95,750) | (92,211) |
Redemptions of stock of Federal Home Loan Bank of Pittsburgh | 122,317 | 93,690 |
Sales of other real estate owned | 1,610 | 1,121 |
Investment in premises and equipment | (5,510) | (3,792) |
Sales of premises and equipment | 71 | 157 |
Net cash provided by (used in) investing activities | 218,899 | (152,226) |
Financing activities: | ||
Net decrease in demand and saving deposits | (75,871) | (45,121) |
Increase in time deposits | 25,640 | 61,196 |
(Decrease) increase in brokered deposits | (81,028) | 98,890 |
Receipts from FHLB advances | 23,341,156 | 68,146,387 |
Repayments of FHLB advances | (23,553,946) | (68,226,050) |
Receipts from federal funds purchased | 15,056,950 | 13,923,750 |
Repayments of federal funds purchased | (15,099,925) | (13,881,750) |
Dividends paid | (9,857) | (6,298) |
Issuance of common stock and exercise of common stock options | 4,127 | 7,062 |
Change in noncontrolling interest | (223) | 0 |
Purchase of common stock | (17,087) | (6,061) |
Net cash (used in) provided by financing activities | (410,064) | 72,005 |
Decrease in cash and cash equivalents | (98,932) | (20,386) |
Cash and cash equivalents at beginning of period | 620,757 | 723,866 |
Cash and cash equivalents at end of period | 521,825 | 703,480 |
Supplemental disclosure of cash flow information: | ||
Interest | 30,771 | 17,967 |
Income taxes | 15,987 | 17,594 |
Non-cash information: | ||
Loans transferred to other real estate owned | 2,098 | 1,296 |
Loans transferred to portfolio from held-for-sale at fair value | 14,846 | 1,766 |
Fair value of assets acquired, net of cash received | 5,033,367 | 0 |
Fair value of liabilities assumed | 5,109,931 | 0 |
Right of use asset | 121,288 | 0 |
Lease liability | $ (132,346) | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION General Our unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (the Company or WSFS), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital), Cypress Capital Management, LLC (Cypress) and Christiana Trust Company of Delaware (Christiana Trust DE). We also have one unconsolidated subsidiary, WSFS Capital Trust III. WSFS Bank has four wholly owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC), WSFS Investment Group, Inc. (WSFS Wealth Investments), 1832 Holdings, Inc., and WSFS SPE Services, LLC, and one majority-owned subsidiary, NewLane Finance Company. Overview Founded in 1832, the Bank is one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). We provide residential and commercial real estate, commercial and consumer lending services, as well as retail deposit and cash management services. Our core banking business is commercial lending funded primarily by customer-generated deposits. In addition, we offer a variety of wealth management and trust services to personal and corporate customers. The Federal Deposit Insurance Corporation (FDIC) insures our customers’ deposits to their legal maximums. We serve our customers primarily from 147 offices located in Pennsylvania ( 72 ), Delaware ( 49 ), New Jersey ( 24 ), Virginia ( 1 ) and Nevada ( 1 ) and through our website at www.wsfsbank.com . Information on our website is not incorporated by reference into this Quarterly Report on Form 10-Q. Our leasing business is conducted by NewLane Finance Company (formerly Neumann Finance Company) and BEFC. Newlane Finance Company originates small business leases and provides financing products and services to businesses nationwide targeting various equipment categories including technology, software, office, medical and other areas. BEFC originates small business leases, primarily medical and veterinary equipment. During the second quarter of 2019, WSFS Bank announced its intention to combine the operations of NewLane Finance Company and BEFC later in 2019. Basis of Presentation In preparing the unaudited Consolidated Financial Statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for loan and lease losses and reserves for lending-related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, income taxes and other-than-temporary impairment (OTTI). Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the establishment of the allowance and lending-related commitments as well as increased post-retirement benefits expense. Our accounting and reporting policies conform to Generally Accepted Accounting Principles 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, 2019 . These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Annual Report on Form 10-K) that was filed with the SEC on February 28, 2019 and is available at www.sec.gov or on our website at www.wsfsbank.com. All significant intercompany transactions were eliminated in consolidation. Business Combinations On March 1, 2019, we acquired Beneficial Bancorp, Inc. (Beneficial), including its subsidiary Beneficial Bank, a community bank headquartered in Philadelphia, Pennsylvania, creating the largest, premier, locally-headquartered bank in the Greater Delaware Valley. Beneficial merged with and into WSFS, with WSFS continuing as the surviving corporation and simultaneously, Beneficial Bank merged with and into WSFS Bank, with WSFS Bank continuing as the surviving bank. This acquisition grew our market share, deepened our presence in the Philadelphia, southeastern Pennsylvania and New Jersey markets, and enhanced our customer base. The results of Beneficial's operations are included in our unaudited Consolidated Financial Statements since the date of the acquisition. See Note 3 for further information. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
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 our Consolidated Financial Statements are disclosed in our 2018 Annual Report on Form 10-K. Those significant accounting policies remain unchanged at June 30, 2019 , except as described below: Leases We account for our leases in accordance with ASC 842 - Leases . Most of our leases are recognized on the balance sheet by recording a right-of-use asset and lease liability for each lease. The right-of-use asset represents the right to use the asset under lease for the lease term, and the lease liability represents the contractual obligation to make lease payments. As a lessee, WSFS enters into operating leases for certain bank branches, office space, and office equipment. The right-of-use assets and lease liabilities are initially recognized based on the net present value of the remaining lease payments which include renewal options where management is reasonably certain they will be exercised. The net present value is determined using the incremental collateralized borrowing rate at commencement date. The right-of-use asset is measured at the amount of the lease liability adjusted for any prepaid rent, lease incentives and initial direct costs incurred. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As a lessor, WSFS provides direct financing to our customers through our equipment and small-business leasing business. Direct financing leases are recorded at the aggregate of minimum lease payments net of unamortized deferred lease origination fees and costs and unearned income. Interest income on direct financing leases is recognized over the term of the lease. Origination fees and costs are deferred, and the net amount is amortized to interest income over the estimated life of the lease. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2019 ASU No. 2016-02, Leases (Topic 842): In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for substantially all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. Adoption using the comparative modified retrospective transition approach is required; however, in July 2018, the FASB issued ASU 2018-11, Leases-Targeted Improvements , which provides an optional transition method whereby comparative periods presented in the financial statements in the period of adoption do not need to be restated under Topic 842. The Company adopted this guidance on January 1, 2019 using the transition option in ASU 2018-11 and the results of this adoption are recorded in the Consolidated Statements of Financial Condition. See Note 9 for additional disclosures resulting from our adoption of this standard. ASU No. 2019-01, Leases (Topic 842) : Codification Improvements: Subsequent to adopting ASU 2016-02, in March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842) : Codification Improvements , which makes targeted changes to lessor accounting and clarifies interim transition disclosure requirements upon adopting Topic 842. The guidance is effective for annual periods beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance on March 31, 2019. See Note 9 for additional disclosures resulting from our adoption of this standard. ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities: In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities . The new guidance requires the amortization period for certain non-contingent callable debt securities held at a premium to end at the earliest call date of the debt security. If the call option is not exercised at the earliest call date, the guidance requires the debt security's effective yield to be reset based on the contractual payment terms of the debt security. The guidance is effective in annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. Use of the modified retrospective method, with a cumulative-effect adjustment to retained earnings is required. The Company adopted this standard on January 1, 2019, on a modified retrospective basis and the adoption did not have an effect on the Consolidated Financial Statements. ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815): In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) . The new guidance changes both the designation and measurement guidance for qualifying hedging relationships and simplifies the presentation of hedge results. Specifically, the guidance eliminates the requirement to separately measure and report hedge ineffectiveness and also aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Further, the new guidance provides entities the ability to apply hedge accounting to additional hedging strategies as well as permits a one-time reclassification of eligible to be hedged instruments from held to maturity to available for sale upon adoption. The guidance is effective in annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Adoption using the modified retrospective approach is required for hedging relationships that exist as of the date of adoption; presentation and disclosure requirements are applied prospectively. The Company adopted this standard on January 1, 2019 on a modified retrospective basis for existing hedging relationships and on a prospective basis for presentation and disclosure requirements. The adoption of this standard did not have an effect on the Consolidated Financial Statements. See Note 15 for additional disclosures resulting from our adoption of this standard. ASU No. 2018-16 Derivatives and Hedging - Inclusion of the Secured Overnight Financial Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Topic 815): In October 2018, the FASB issued ASU No. 2018-16 Derivatives and Hedging - Inclusion of the Secured Overnight Financial Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Topic 815) . The new guidance applies to all entities that elect to apply hedge accounting to benchmark interest rate hedges under Topic 815. It permits the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes in addition to the existing applicable rates. The guidance is required to be adopted concurrently with ASU 2017-12, on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after adoption. The Company adopted this standard on January 1, 2019 on a prospective basis and the adoption did not have an effect on the Consolidated Financial Statements. Accounting Guidance Pending Adoption at June 30, 2019 ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) . ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with the current expected credit losses (CECL) methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326 , which clarifies that receivables arising from operating leases are not within the scope of Topic 326. In December 2018, regulators issued a final rule related to regulatory capital ( Regulatory Capital Rule: Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rule and Conforming Amendments to Other Regulations ) which is intended to provide regulatory capital relief to entities transitioning to CECL. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief , which provides entities the option to irrevocably elect the fair value option on financial instruments within the scope of both ASC 326-20 and ASC 825-10 upon adoption of ASU 2016-13. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company does not plan to early adopt this guidance and will adopt this guidance on January 1, 2020. A cross-functional team from Finance, Credit, and Information Technology is leading the implementation efforts to evaluate the impact of this guidance on the Company’s Consolidated Financial Statements, internal systems, accounting policies, processes and related internal controls. We have completed the implementation of our software solution and a third-party specialist has completed an independent model review of the solution. We continue to focus on our evaluation of acceptable methodologies, accounting policies, and reporting requirements under the guidance as well as implementation and transition rules issued by regulators. As necessary, we will continue to consult with third-party experts and specialists to assist with our implementation efforts. Our implementation efforts to date suggest that adoption may materially increase the allowance for loan losses and decrease capital levels; however, the extent of these impacts will depend on the composition and asset quality of the portfolio, macroeconomic conditions, and significant estimates and judgments made by management at the time of adoption. ASU No. 2018-13, Fair Value Measurement Disclosure Framework: In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Disclosure Framework , which amends ASC 820 - Fair Value Measurement . The new guidance modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements for fair value measurements. The guidance is effective in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted. Adoption is required on either a prospective or retrospective basis, depending on the amendment. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. ASU No. 2018-14, Compensation-Retirement Benefits - Defined Benefit Plans-General (Topic 715): In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits - Defined Benefit Plans-General (Topic 715) which applies to all employers that provide defined benefit pension or other postretirement benefit plans for their employees. The new guidance modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements to financial statement users. The guidance is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. Use of the retrospective method is required. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350) : In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350) . The new guidance provides clarity on capitalizing and expensing implementation costs for cloud computing arrangements in a service contract. If an implementation cost is capitalized, the cost should be recognized over the noncancellable term and periodically assessed for impairment. The guidance is effective in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted. Adoption should be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. Our preliminary review of this guidance to date suggests that adoption may result in a material amount of implementation costs being deferred; however, the extent of the impact will depend on the cloud computing implementations occurring at the time of adoption. ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments: In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The new guidance amends ASU 2016-13 to address topics related to accrued interest receivables, recoveries, disclosures, and certain other clarifications. The new guidance also amends ASU 2017-12 to provide clarification on certain hedge accounting topics and transition requirements amended by ASU 2017-12. Lastly, the new guidance amends ASU 2016-01 to add clarification requiring remeasurement under ASC 820 when using the measurement alternative, among certain other clarifications. The guidance is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. Adoption is required on a prospective, modified-retrospective or retrospective basis, depending on the amendment. The Company will evaluate the amendments to ASU 2016-13 in conjunction with our overall evaluation of ASU 2016-13. For other amendments within this guidance, the Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | 3. BUSINESS COMBINATIONS Beneficial Bancorp, Inc. On March 1, 2019, we acquired Beneficial. Subject to the terms and conditions of the merger agreement, the Beneficial stockholders received 0.3013 shares of WSFS common stock and $2.93 in cash for each share of Beneficial common stock. Based on the February 28, 2019 closing share price of $43.28 , the value of the stock consideration was $950.0 million and cash consideration was $228.2 million , for total transaction value of $1.2 billion . Results of the combined entity’s operations are included in our Consolidated Financial Statements since the date of the acquisition. Beneficial conducted its primary business operations through its wholly owned subsidiary, Beneficial Bank, which was merged into WSFS Bank. At closing, Beneficial had 74 branches and offices in southeastern Pennsylvania and southern New Jersey. WSFS acquired Beneficial to expand the scale and efficiency of its operations in the Philadelphia, southeastern Pennsylvania and New Jersey markets, and to create opportunities to generate additional revenue by providing its full suite of banking, mortgage banking, wealth management and insurance services to the legacy Beneficial markets. The acquisition of Beneficial was accounted for as a business combination using the acquisition method of accounting and, accordingly, the assets acquired, liabilities assumed and consideration transferred were recorded at their estimated fair values as of the acquisition date. The excess of consideration transferred over the fair value of net assets acquired was recorded as goodwill, which is not amortizable nor deductible for tax purposes. The Company allocated the total balance of goodwill to its WSFS Bank segment. While the valuation of acquired assets and liabilities is nearly completed, the values of certain assets and liabilities are preliminary in nature, and are subject to adjustment as additional information is obtained about the facts and circumstances that existed at the acquisition date. When the valuation is final, any changes to the preliminary valuation of acquired assets and liabilities could result in adjustments to identified intangibles and goodwill. The fair values of assets acquired and liabilities assumed is expected to be finalized during the measurement period, which ends one year from the closing date. The following table summarizes the consideration transferred and the fair values of the identifiable assets acquired and liabilities assumed: (Dollars in thousands) Fair Value Consideration Transferred: Common shares issued (21,816,355) $ 949,968 Cash paid to Beneficial stock and option holders 228,239 Value of consideration 1,178,207 Assets acquired: Cash and due from banks 304,311 Investment securities 619,880 Loans and leases, net 3,711,246 Premises and equipment 69,873 Deferred income taxes 18,739 Bank owned life insurance 82,510 Core deposit intangible 85,053 Servicing rights intangible 2,466 Other assets 135,895 Total assets 5,029,973 Liabilities assumed: Deposits 4,056,506 Other liabilities 102,965 Total liabilities 4,159,471 Net assets acquired: 870,502 Goodwill resulting from acquisition of Beneficial $ 307,705 The following table details the change to goodwill recorded subsequent to acquisition: (Dollars in thousands) Fair Value Goodwill resulting from the acquisition of Beneficial reported as of March 31, 2019 $ 309,486 Effects of adjustments to: Cash and due from banks 246 Investment securities (3,177 ) Loans 911 Premises and equipment (741 ) Deferred income taxes 731 Other assets (420 ) Deposits 790 Other liabilities (121 ) Adjusted goodwill resulting from the acquisition of Beneficial as of June 30, 2019 $ 307,705 In many cases, the fair values of the assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. Acquired loans are initially recorded at their fair values as of the acquisition date. The fair value is based on a discounted cash flow methodology that uses assumptions as to credit risk, default rates, collateral values, and loss severity, along with estimated prepayment rates. Loans that have deteriorated in credit quality since their origination, and for which it is probable that all contractual cash flows will not be received, are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . For additional information regarding purchased impaired loans, see Note 7 to the unaudited Consolidated Financial Statements. The Company acquired Beneficial’s investment portfolio with a fair value of $619.9 million , of which $578.8 million of investment securities were sold subsequent to closing. The proceeds received for the investments sold approximated their fair values as of the acquisition date. The fair value of the retained investment portfolio was determined by taking into account market prices obtained from independent valuation source(s). See Note 14 for additional information. The Company recorded a deferred income tax asset (DTA) of $18.7 million related to tax attributes of Beneficial along with the effects of fair value adjustments resulting from acquisition accounting for the combination. WSFS recorded $85.1 million of core deposit intangibles which are being amortized over ten years using a straight-line amortization methodology. The fair value of core deposit intangibles was determined based on modeling assumptions that take into consideration customer attrition, deposit interest rates, and alternative costs of funds. Certificates of deposit accounts were valued by segregating the portfolio into pools based on remaining maturity and comparing the contractual cost of the portfolio to an identical portfolio bearing current market rates. The valuation adjustment will be accreted or amortized to interest expense over the remaining maturities of the respective pools. Direct costs related to the acquisition were expensed as incurred. As a result of the merger, the Company developed a comprehensive integration plan under which we have begun to incur costs, including costs to terminate contracts, consolidate facilities and relocate Associates. Costs related to the acquisition and restructuring are presented in the “Corporate Development” and “Restructuring” expense line items, respectively, on the Consolidated Statements of Income. During the fourth quarter of 2018, WSFS announced a retail banking office optimization plan that includes the consolidation of fourteen Beneficial and eleven WSFS Bank banking offices, which we expect to begin during the third quarter of 2019. Additionally, during the second quarter, WSFS completed the sale of five Beneficial retail banking offices in New Jersey to the Bank of Princeton, a New Jersey-based financial institution, at a deposit premium of 7.37% |
NONINTEREST INCOME
NONINTEREST INCOME | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
NONINTEREST INCOME | 4. NONINTEREST INCOME Credit/debit card and ATM income The following table presents the components of credit/debit card and ATM income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Bailment fees $ 6,908 $ 6,588 $ 13,807 $ 12,681 Interchange fees 6,452 3,847 10,839 7,307 Other card and ATM fees 317 274 546 526 Total credit/debit card and ATM income $ 13,677 $ 10,709 $ 25,192 $ 20,514 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 our 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: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Trust fees $ 6,685 $ 6,118 $ 13,250 $ 11,366 Wealth management and advisory fees 3,697 4,126 7,279 8,067 Total investment management and fiduciary income $ 10,382 $ 10,244 $ 20,529 $ 19,433 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 and trustee services on structured finance transactions; indenture trustee, administrative agent and collateral agent services to institutions and corporations; commercial domicile and independent director services; and investment and trustee services to families and individuals across the U.S. Most fees are flat fees, except for a portion of personal and corporate trustee fees where we earn a percentage on the assets under management. 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 Cypress, West Capital, Powdermill, WSFS Wealth Client Management, WSFS Wealth Investments and WSFS Institutional Services. 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 quarterly and annual billing for the services. Deposit service charges The following table presents the components of deposit service charges: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Service fees $ 3,179 $ 2,634 $ 5,895 $ 5,214 Return and overdraft fees 2,696 1,893 4,544 3,777 Other deposit service fees 228 137 410 303 Total deposit service charges $ 6,103 $ 4,664 $ 10,849 $ 9,294 Deposit service charges includes revenue earned from our core deposit products, certificates of deposit, and brokered deposits. We generate 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: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Managed service fees $ 3,624 $ 3,105 $ 6,566 $ 5,931 Currency preparation 851 818 1,590 1,543 ATM insurance 652 605 1,280 1,195 Miscellaneous products and services 2,607 2,583 6,005 4,350 Total other income $ 7,734 $ 7,111 $ 15,441 $ 13,019 Other income consists of managed service fees, which are primarily courier fees related to cash management, currency preparation, ATM insurance 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. For the six months ended June 30, 2019 , "Miscellaneous products and services" included income related to a non-recurring transfer of client accounts to a departing Wealth investment adviser, in accordance with the buy-out provisions of the adviser's contract. Arrangements with multiple performance obligations Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers. Practical expedients and exemptions We do 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 we recognize revenue at the amount to which we have the right to invoice for services performed. See Note 16 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 5. EARNINGS PER SHARE The following table shows the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, (Dollars and shares in thousands, except per share data) 2019 2018 2019 2018 Numerator: Net income attributable to WSFS $ 36,200 $ 28,740 $ 49,223 $ 66,090 Denominator: Weighted average basic shares 53,253 31,567 46,103 31,497 Dilutive potential common shares 263 697 335 729 Weighted average fully diluted shares $ 53,516 $ 32,264 $ 46,438 $ 32,226 Earnings per share: Basic $ 0.68 $ 0.91 $ 1.07 $ 2.10 Diluted $ 0.68 $ 0.89 $ 1.06 $ 2.05 Outstanding common stock equivalents having no dilutive effect 1 11 1 23 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 6. INVESTMENT SECURITIES The following tables detail the amortized cost and the estimated fair value of our investments in available-for-sale and held-to-maturity debt securities as well as our equity investments. None of our investments in debt securities are classified as trading. June 30, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Available-for-Sale Debt Securities CMO $ 367,289 $ 5,455 $ 509 $ 372,235 FNMA MBS 1,034,233 19,091 929 1,052,395 FHLMC MBS 330,609 6,219 245 336,583 GNMA MBS 35,471 378 192 35,657 $ 1,767,602 $ 31,143 $ 1,875 $ 1,796,870 Held-to-Maturity Debt Securities (1) State and political subdivisions $ 141,315 $ 2,552 $ 6 $ 143,861 Foreign bonds $ 2,002 $ 4 $ — $ 2,006 $ 143,317 $ 2,556 $ 6 $ 145,867 Equity Investments (2) Visa Class B shares $ 15,716 $ 24,221 $ — $ 39,937 Other equity investments 8,149 625 — 8,774 $ 23,865 $ 24,846 $ — $ 48,711 (1) Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $0.8 million at June 30, 2019 , related to securities transferred, which are offset in Accumulated other comprehensive income, net of tax. (2) Equity investments are included in Other investments in the unaudited Consolidated Statements of Financial Condition. December 31, 2018 (Dollars in thousands) Amortized Cost Gross Gross Fair Available-for-Sale Debt Securities CMO $ 376,867 $ 1,721 $ 6,838 $ 371,750 FNMA MBS 655,485 1,526 12,938 644,073 FHLMC MBS 155,758 558 2,394 153,922 GNMA MBS 36,117 97 880 35,334 $ 1,224,227 $ 3,902 $ 23,050 $ 1,205,079 Held-to-Maturity Debt Securities (1) State and political subdivisions $ 149,950 $ 275 $ 794 $ 149,431 Equity Investments (2) Visa Class B shares $ 13,918 $ 20,015 $ — $ 33,933 Other equity investments 3,300 — — 3,300 $ 17,218 $ 20,015 $ — $ 37,233 (1) Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $1.0 million at December 31, 2018 , related to securities transferred, which are offset in Accumulated other comprehensive loss, net of tax. (2) Equity investments are included in Other investments in the unaudited Consolidated Statements of Financial Condition. The scheduled maturities of our available-for-sale debt securities at June 30, 2019 and December 31, 2018 are presented in the table below: Available for Sale Amortized Fair (Dollars in thousands) Cost Value June 30, 2019 (1) Within one year $ — $ — After one year but within five years 19,457 19,519 After five years but within ten years 155,351 156,432 After ten years 1,592,794 1,620,919 $ 1,767,602 $ 1,796,870 December 31, 2018 (1) Within one year $ — $ — After one year but within five years 19,714 19,423 After five years but within ten years 170,118 163,731 After ten years 1,034,395 1,021,925 $ 1,224,227 $ 1,205,079 (1) Actual maturities could differ from contractual maturities. The scheduled maturities of our held-to-maturity debt securities at June 30, 2019 and December 31, 2018 are presented in the table below: Held to Maturity Amortized Fair (Dollars in thousands) Cost Value June 30, 2019 (1) Within one year $ 2,626 $ 2,630 After one year but within five years 7,423 7,458 After five years but within ten years 30,228 30,703 After ten years 103,040 105,076 $ 143,317 $ 145,867 December 31, 2018 (1) Within one year $ 1,018 $ 1,016 After one year but within five years 6,703 6,701 After five years but within ten years 29,613 29,547 After ten years 112,616 112,167 $ 149,950 $ 149,431 (1) Actual maturities could differ from contractual maturities. Mortgage-backed securities (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. Investment securities with fair market values aggregating $1.1 billion and $914.5 million were pledged as collateral for retail customer repurchase agreements, municipal deposits, and other obligations as of June 30, 2019 and December 31, 2018 , respectively. During the six months ended June 30, 2019 , we sold $602.5 million of debt securities categorized as available for sale, of which $578.8 million was related to the acquisition of Beneficial (see Note 3 for further information about the acquisition). The remaining $23.7 million resulted in realized gains of less than $0.1 million and no realized losses. During the six months ended June 30, 2018 , we sold $7.0 million of debt securities categorized as available for sale, resulting in realized gains of less than $0.1 million and no realized losses. The cost basis of all debt securities sales is based on the specific identification method. As of June 30, 2019 and December 31, 2018 , our debt securities portfolio had remaining unamortized premiums of $15.5 million and $12.7 million , respectively, and unaccreted discounts of $3.5 million and $2.5 million , respectively. For debt securities with unrealized losses, the table below shows our 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 June 30, 2019 . 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 $ — $ — $ 59,051 $ 509 $ 59,051 $ 509 FNMA MBS 31,377 43 105,513 886 136,890 929 FHLMC MBS 18,188 89 18,581 156 36,769 245 GNMA MBS — — 14,452 192 14,452 192 Total temporarily impaired investments $ 49,565 $ 132 $ 197,597 $ 1,743 $ 247,162 $ 1,875 Held-to-maturity debt securities: State and political subdivisions $ — $ — $ 4,105 $ 6 $ 4,105 $ 6 Total temporarily impaired investments $ — $ — $ 4,105 $ 6 $ 4,105 $ 6 For debt securities with unrealized losses, the table below shows our 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, 2018 . 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 $ 17,143 $ 40 $ 212,208 $ 6,798 $ 229,351 $ 6,838 FNMA MBS 34,214 162 407,638 12,776 441,852 12,938 FHLMC MBS 16,025 21 76,469 2,373 92,494 2,394 GNMA MBS 5,837 79 21,805 801 27,642 880 Total temporarily impaired investments $ 73,219 $ 302 $ 718,120 $ 22,748 $ 791,339 $ 23,050 Held-to-maturity debt securities: State and political subdivisions $ 91,228 $ 155 $ 58,203 $ 639 $ 149,431 $ 794 At June 30, 2019 , we owned debt securities totaling $251.3 million for which the amortized cost basis exceeded fair value. Total unrealized losses on these securities were $1.9 million at June 30, 2019 . The temporary impairment is the result of changes in market interest rates subsequent to purchase. Our investment portfolio is reviewed each quarter for indications of OTTI. This review includes analyzing the length of time and the extent to which the fair value has been lower than the amortized cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and our intent and ability to hold the investment for a period of time sufficient to allow for full recovery of the unrealized loss. We evaluate our intent and ability to hold debt securities based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not have the intent to sell, nor is it more likely-than-not we will be required to sell these securities before we are able to recover the amortized cost basis. All debt securities, with the exception of one having a fair value of $0.6 million at June 30, 2019 , were AA-rated or better at the time of purchase and remained investment grade at June 30, 2019 . All securities were evaluated for OTTI at June 30, 2019 and December 31, 2018 . The result of this evaluation showed no OTTI as of June 30, 2019 or December 31, 2018 . The estimated weighted average duration of MBS was 3.3 years at June 30, 2019 . |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
LOANS | 7. LOANS The following table shows our loan and lease portfolio by category: (Dollars in thousands) June 30, 2019 December 31, 2018 Commercial and industrial $ 2,184,487 $ 1,472,489 Owner-occupied commercial 1,280,894 1,059,974 Commercial mortgages 2,246,047 1,162,739 Construction 541,696 316,566 Commercial small business leases 156,037 — Residential (1) 1,081,734 218,099 Consumer 1,126,733 680,939 8,617,628 4,910,806 Less: Deferred fees, net 4,555 7,348 Allowance for loan and lease losses 45,364 39,539 Net loans and leases $ 8,567,709 $ 4,863,919 (1) Includes reverse mortgages at fair value of $15.9 million at June 30, 2019 and $16.5 million at December 31, 2018 . Upon the closing of the Beneficial acquisition on March 1, 2019, we acquired $37.0 million of credit impaired loans. The following table details the loans acquired from Beneficial that are accounted for in accordance with ASC 310-30, as of the date of the acquisition. (Dollars in thousands) March 1, 2019 Contractual required principal and interest at acquisition $ 53,647 Contractual cash flows not expected to be collected (nonaccretable difference) 20,118 Expected cash flows at acquisition 33,529 Interest component of expected cash flows (accretable yield) 3,068 Fair value of acquired loans accounted for under ASC 310-30 30,461 The following table shows the outstanding principal balance and carrying amounts for acquired credit impaired loans for which the Company applies ASC 310-30 as of the dates indicated: (Dollars in thousands) June 30, 2019 December 31, 2018 Outstanding principal balance $ 48,124 $ 18,642 Carrying amount 33,752 14,718 Allowance for loan losses 179 227 The following table presents the changes in accretable yield on the acquired credit impaired loans for the three and six months ended June 30, 2019 and 2018. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 4,955 $ 2,440 $ 2,463 $ 3,035 Addition from Beneficial — — 3,068 — Accretion (662 ) (501 ) (1,074 ) (918 ) Reclassification from nonaccretable difference 207 1,076 207 1,078 Additions/adjustments (445 ) (90 ) (609 ) (270 ) Balance at end of period $ 4,055 $ 2,925 $ 4,055 $ 2,925 |
ALLOWANCE FOR LOAN AND LEASE LO
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION | 8. ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION Allowance for Loan Losses We maintain an allowance for loan losses which represents our best estimate of probable losses in our loan portfolio. As losses are realized, they are charged to this allowance. We established our allowance in accordance with guidance provided in the SEC’s Staff Accounting Bulletin 102 (SAB 102), Selected Loan Loss Allowance Methodology and Documentation Issues, ASC 450, Contingencies and ASC 310, Receivables . When we have reason to believe it is probable that we will not be able to collect all contractually due amounts of principal and interest, loans are evaluated for impairment on an individual basis and a specific allocation of the allowance is assigned in accordance with ASC 310-10. We also maintain an allowance for loan losses on acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining credit discount recorded at the time of acquisition. The determination of the allowance for loan losses requires significant judgment reflecting our best estimate of impairment related to specifically identified impaired loans as well as probable loan losses in the remaining loan portfolio. Our evaluation is based on a continuing review of these portfolios. The following are included in our allowance for loan losses: • Specific reserves for impaired loans • An allowance for each pool of homogeneous loans based on historical loss experience • Adjustments for qualitative and environmental factors allocated to pools of homogeneous loans When it is probable that the Bank will be unable to collect all amounts due (interest and principal) in accordance with the contractual terms of the loan agreement, it assigns a specific reserve to that loan, as necessary. Unless loans are well-secured and collection is imminent, loans greater than 90 days past due are deemed impaired and their respective reserves are generally charged off once the loss has been confirmed. Estimated specific reserves are based on collateral values, estimates of future cash flows or market valuations. We charge loans off when they are deemed to be uncollectible. During the six months ended June 30, 2019 and 2018 , net charge-offs totaled $14.0 million , or 0.38% , of average loans annualized, and $5.7 million , or 0.24% , of average loans annualized, respectively. Allowances for pooled homogeneous loans, that are not deemed impaired, are based on historical net loss experience. Estimated losses for pooled portfolios are determined differently for commercial loan pools and retail loan pools. Commercial loans are pooled as follows: commercial, owner-occupied commercial, commercial mortgages and construction. Each pool is further segmented by internally assessed risk ratings. Loan losses for commercial loans are estimated by determining the probability of default and expected loss severity upon default. The probability of default is calculated based on the historical rate of migration to impaired status during the last 34 quarters. During the six months ended June 30, 2019 , we increased the look-back period to 34 quarters from the 32 quarters used at December 31, 2018 . This increase in the look-back period allows us to continue to anchor to the fourth quarter of 2010 to ensure that the quantitative reserves calculated by the allowance for loan loss model are adequately considering the losses within a full credit cycle. Loss severity upon default is calculated as the actual loan losses (net of recoveries) on impaired loans in their respective pool during the same time frame. Retail loans are pooled into the following segments: residential mortgage, consumer secured and consumer unsecured loans. Pooled reserves for retail loans are calculated based solely on average net loss rates over the same 34 quarter look-back period. Qualitative adjustment factors consider various current internal and external conditions which are allocated among loan types and take into consideration: • Current underwriting policies, staff, and portfolio mix, • Internal trends of delinquency, nonaccrual and criticized loans by segment, • Risk rating accuracy, control and regulatory assessments/environment, • General economic conditions - locally and nationally, • Market trends impacting collateral values, and • The competitive environment, as it could impact loan structure and underwriting. The above factors are based on their relative standing compared to the period in which historic losses are used in quantitative reserve estimates and current directional trends. Qualitative factors in our model can add to or subtract from quantitative reserves. The allowance methodology uses a loss emergence period (LEP), which is the period of time between an event that triggers the probability of a loss and the confirmation of the loss. We estimate the commercial LEP to be approximately nine quarters as of June 30, 2019 . Our residential mortgage and consumer LEP estimate remains at four quarters as of June 30, 2019 . We evaluate LEP quarterly for reasonableness and complete a detailed historical analysis of our LEP annually for our commercial portfolio and review the current four quarter LEP for the retail portfolio to determine the continued reasonableness of this assumption. Our loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review our loan ratings and allowance for loan losses and the Bank’s internal loan review department performs loan reviews. The following tables provide the activity of our allowance for loan losses and loan balances for the three and six months ended June 30, 2019 : (Dollars in thousands) Commercial and Industrial (1) Owner-occupied Commercial Commercial Mortgages Construction Residential (2) Consumer Total Three months ended June 30, 2019 Allowance for loan losses Beginning balance $ 21,016 $ 4,949 $ 6,679 $ 4,044 $ 1,401 $ 8,232 $ 46,321 Charge-offs (13,002 ) (8 ) (153 ) (42 ) (163 ) (960 ) (14,328 ) Recoveries 203 78 398 1 (2 ) 498 1,176 Provision (credit) 13,568 (526 ) (474 ) (1,013 ) 24 72 11,651 Provision (credit) for acquired loans 219 (13 ) 94 (6 ) 98 152 544 Ending balance $ 22,004 $ 4,480 $ 6,544 $ 2,984 $ 1,358 $ 7,994 $ 45,364 Six months ended June 30, 2019 Allowance for loan losses Beginning balance $ 14,211 $ 5,057 $ 6,806 $ 3,712 $ 1,428 $ 8,325 $ 39,539 Charge-offs (13,744 ) (8 ) (155 ) (42 ) (285 ) (1,644 ) (15,878 ) Recoveries 561 81 427 2 (16 ) 799 1,854 Provision (credit) 20,691 (637 ) (630 ) (682 ) 75 329 19,146 Provision (credit) for acquired loans 285 (13 ) 96 (6 ) 156 185 703 Ending balance $ 22,004 $ 4,480 $ 6,544 $ 2,984 $ 1,358 $ 7,994 $ 45,364 Period-end allowance allocated to: Loans individually evaluated for impairment $ 4,324 $ — $ — $ — $ 488 $ 183 $ 4,995 Loans collectively evaluated for impairment 17,679 4,401 6,496 2,976 828 7,810 40,190 Acquired loans evaluated for impairment 1 79 48 8 42 1 179 Ending balance $ 22,004 $ 4,480 $ 6,544 $ 2,984 $ 1,358 $ 7,994 $ 45,364 Period-end loan balances: Loans individually evaluated for impairment (3) $ 21,171 $ 8,753 $ 2,431 $ — $ 11,398 $ 7,383 $ 51,136 Loans collectively evaluated for impairment 1,575,810 1,168,864 765,268 324,307 134,235 848,396 4,816,880 Acquired nonimpaired loans 738,579 99,326 1,464,739 216,843 912,288 267,955 3,699,730 Acquired impaired loans 4,964 3,951 13,609 546 7,863 2,999 33,932 Ending balance (4) $ 2,340,524 $ 1,280,894 $ 2,246,047 $ 541,696 $ 1,065,784 $ 1,126,733 $ 8,601,678 (1) Includes commercial small business leases. (2) Period-end loan balance excludes reverse mortgages at fair value of $15.9 million . (3) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.2 million for the period ending June 30, 2019 . Accruing troubled debt restructured loans are considered impaired loans. (4) Ending loan balances do not include net deferred fees. The following table provides the activity of the allowance for loan losses and loan balances for the three and six months ended June 30, 2018 : (Dollars in thousands) Commercial and Industrial Owner - occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Total Three months ended June 30, 2018 Allowance for loan losses Beginning balance $ 16,102 $ 5,359 $ 6,617 $ 2,864 $ 1,680 $ 8,188 $ 40,810 Charge-offs (1,740 ) (341 ) — — (54 ) (828 ) (2,963 ) Recoveries 359 7 3 1 75 247 692 Provision (credit) 1,133 204 337 422 (182 ) 537 2,451 Provision for acquired loans (12 ) 55 (6 ) 2 — 8 47 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Six months ended June 30, 2018 Allowance for loan losses Beginning balance $ 16,732 $ 5,422 $ 5,891 $ 2,861 $ 1,798 $ 7,895 $ 40,599 Charge-offs (5,100 ) (351 ) (48 ) — (54 ) (1,291 ) (6,844 ) Recoveries 439 12 137 1 91 454 1,134 Provision (credit) 3,783 146 954 450 (313 ) 1,086 6,106 Provision for acquired loans (12 ) 55 17 (23 ) (3 ) 8 42 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Period-end allowance allocated to: Loans individually evaluated for impairment $ 2,208 $ — $ 63 $ 593 $ 592 $ 175 $ 3,631 Loans collectively evaluated for impairment 13,472 5,266 6,804 2,687 891 7,960 37,080 Acquired loans evaluated for impairment 162 18 84 9 36 17 326 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Period-end loan balances: Loans individually evaluated for impairment (2) $ 17,015 $ 3,224 $ 6,737 $ 5,557 $ 12,282 $ 7,714 $ 52,529 Loans collectively evaluated for impairment 1,404,662 952,627 972,684 283,480 134,323 581,536 4,329,312 Acquired nonimpaired loans 101,532 125,129 172,082 7,352 65,723 29,239 501,057 Acquired impaired loans 2,904 4,915 9,151 731 771 251 18,723 Ending balance (3) $ 1,526,113 $ 1,085,895 $ 1,160,654 $ 297,120 $ 213,099 $ 618,740 $ 4,901,621 (1) Period-end loan balance excludes reverse mortgages at fair value of $16.1 million . (2) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $16.3 million for the period ending June 30, 2018 . Accruing troubled debt restructured loans are considered impaired loans. (3) Ending loan balances do not include net deferred fees. Nonaccrual and Past Due Loans Nonaccruing loans are those on which the accrual of interest has ceased. Typically, we discontinue accrual of interest on originated loans after payments become more than 90 days past due or earlier if we do not expect the full collection of principal or interest in accordance with the terms of the loan agreement. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the accretion of net deferred loan fees and amortization of net deferred loan costs is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on our assessment of the ultimate collectability of principal and interest. Loans greater than 90 days past due and still accruing are defined as loans contractually past due 90 days or more as to principal or interest payments, but which remain in accrual status because they are considered well secured and are in the process of collection. The following tables show our nonaccrual and past due loans at the dates indicated: June 30, 2019 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Than 90 Days Past Due and Still Accruing Total Past Due And Still Accruing Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial and industrial (1) $ 3,894 $ 682 $ — $ 4,576 $ 2,309,943 $ 4,964 $ 21,041 $ 2,340,524 Owner-occupied commercial 4,105 398 1,165 5,668 1,262,522 3,951 8,753 1,280,894 Commercial mortgages 4,499 201 — 4,700 2,225,436 13,609 2,302 2,246,047 Construction 249 — — 249 540,901 546 — 541,696 Residential (2) 6,022 6 115 6,143 1,047,891 7,863 3,887 1,065,784 Consumer (3) 6,693 3,811 14,387 24,891 1,097,190 2,999 1,653 1,126,733 Total (4) $ 25,462 $ 5,098 $ 15,667 $ 46,227 $ 8,483,883 $ 33,932 $ 37,636 $ 8,601,678 % of Total Loans 0.30 % 0.06 % 0.18 % 0.54 % 98.63 % 0.39 % 0.44 % 100 % (1) Includes commercial small business leases. (2) Residential accruing current balances excludes reverse mortgages at fair value of $15.9 million . (3) Includes $22.3 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss. (4) The balances above include a total of $3.7 billion acquired non-impaired loans. December 31, 2018 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Total Past Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial and industrial $ 3,653 $ 993 $ 71 $ 4,717 $ 1,452,185 $ 1,531 $ 14,056 $ 1,472,489 Owner-occupied commercial 733 865 — 1,598 1,049,722 4,248 4,406 1,059,974 Commercial mortgages 1,388 908 — 2,296 1,148,988 7,504 3,951 1,162,739 Construction 157 — — 157 312,879 749 2,781 316,566 Residential (1) 1,970 345 660 2,975 194,960 761 2,854 201,550 Consumer 525 971 104 1,600 677,182 151 2,006 680,939 Total (2) $ 8,426 $ 4,082 $ 835 $ 13,343 $ 4,835,916 $ 14,944 $ 30,054 $ 4,894,257 % of Total Loans 0.17 % 0.08 % 0.02 % 0.27 % 98.81 % 0.31 % 0.61 % 100 % (1) Residential accruing current balances excludes reverse mortgages, at fair value of $16.5 million . (2) The balances above include a total of $430.0 million acquired non-impaired loans. Impaired Loans Loans for which it is probable we will not collect all principal and interest due according to their contractual terms, which is assessed based on the credit characteristics of the loan and/or payment status, are measured for impairment in accordance with the provisions of SAB 102 and ASC 310. The amount of impairment is required to be measured using one of three methods: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the fair value of collateral, if the loan is collateral dependent or (3) the loan’s observable market price. If the measure of the impaired loan is less than the recorded investment in the loan, a related allowance is allocated for the impairment. The following tables provide an analysis of our impaired loans at June 30, 2019 and December 31, 2018 : June 30, 2019 (Dollars in thousands) Ending Loan Balances Loans with No Related Reserve (1) Loans with Related Reserve (2) Related Reserve Contractual Principal Balances (2) Average Loan Balances Commercial and industrial $ 21,173 $ 8,227 $ 12,946 $ 4,324 $ 25,425 $ 18,055 Owner-occupied commercial 10,134 8,753 1,381 79 10,430 6,522 Commercial mortgages 3,755 2,431 1,324 48 8,047 6,300 Construction 546 — 546 8 638 3,285 Residential 11,610 7,733 3,877 530 13,722 11,602 Consumer 7,414 6,009 1,405 185 8,161 7,932 Total $ 54,632 $ 33,153 $ 21,479 $ 5,174 $ 66,423 $ 53,696 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $3.5 million in the ending loan balance and $3.8 million in the contractual principal balance. December 31, 2018 (Dollars in thousands) Ending Loan Balances Loans with No Related (1) Loans with Related Reserve (2) Related Reserve Contractual Principal Balances (2) Average Loan Balances Commercial and industrial $ 14,841 $ 8,625 $ 6,216 $ 878 $ 22,365 $ 18,484 Owner-occupied commercial 6,065 4,406 1,659 92 6,337 5,378 Commercial mortgages 5,679 4,083 1,596 79 15,372 7,438 Construction 3,530 — 3,530 458 5,082 5,091 Residential 11,321 6,442 4,879 581 13,771 12,589 Consumer 7,916 6,899 1,017 170 8,573 7,956 Total $ 49,352 $ 30,455 $ 18,897 $ 2,258 $ 71,500 $ 56,936 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $4.3 million in the ending loan balance and $4.8 million in the contractual principal balance. Interest income of $0.4 million and $0.6 million was recognized on impaired loans during the three and six months ended June 30, 2019 , respectively. Interest income of $0.4 million and $0.7 million was recognized on impaired loans during the three and six months ended June 30, 2018 , respectively. As of June 30, 2019 , there were 19 residential loans and 14 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $2.0 million and $5.2 million , respectively. As of December 31, 2018 , there were 26 residential loans and 11 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $1.9 million and $5.3 million , respectively. Reserves on Acquired Nonimpaired Loans In accordance with ASC 310, loans acquired by the Bank through its mergers with First National Bank of Wyoming, Alliance Bancorp, Inc. (Alliance), Penn Liberty Bank (Penn Liberty) and Beneficial are reflected on the balance sheet at their fair values on the date of acquisition as opposed to their contractual values. Therefore, on the date of acquisition establishing an allowance for acquired loans is prohibited. After the acquisition date, the Bank performs a separate allowance analysis on a quarterly basis to determine if an allowance for loan loss is necessary. Should the credit risk calculated exceed the purchased loan portfolio’s remaining credit mark, additional reserves will be added to the Bank’s allowance. When a purchased loan becomes impaired after its acquisition, it is evaluated as part of the Bank’s reserve analysis and a specific reserve is established to be included in the Bank’s allowance. Credit Quality Indicators Below is a description of each of our risk ratings for all commercial loans: • Pass . These borrowers currently show no indication of deterioration or potential problems and their loans are considered fully collectible. • Special Mention. Borrowers have potential weaknesses that deserve management’s close attention. Borrowers in this category may be experiencing adverse operating trends, for example, declining revenues or margins, high leverage, tight liquidity, or increasing inventory without increasing sales. These adverse trends can have a potential negative effect on the borrower’s repayment capacity. These assets are not adversely classified and do not expose the Bank to significant risk that would warrant a more severe rating. Borrowers in this category may also be experiencing significant management problems, pending litigation, or other structural credit weaknesses. • Substandard . Borrowers have well-defined weaknesses that require extensive oversight by management. Borrowers in this category may exhibit one or more of the following: inadequate debt service coverage, unprofitable operations, insufficient liquidity, high leverage, and weak or inadequate capitalization. Relationships in this category are not adequately protected by the sound financial worth and paying capacity of the obligor or the collateral pledged on the loan, if any. A distinct possibility exists that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful . Borrowers have well-defined weaknesses inherent in the Substandard category with the added characteristic that the possibility of loss is extremely high. Current circumstances in the credit relationship make collection or liquidation in full highly questionable. A doubtful asset has some pending event that may strengthen the asset that defers the loss classification. Such impending events include: perfecting liens on additional collateral, obtaining collateral valuations, an acquisition or liquidation preceding, proposed merger, or refinancing plan. • Loss . Loans are uncollectible or of such negligible value that continuance as a bankable asset is not supportable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical to defer writing off this asset even though partial recovery may be recognized sometime in the future. Residential and Consumer Loans The residential and consumer loan portfolios are monitored on an ongoing basis using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans that are greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss. Commercial Credit Exposure June 30, 2019 Commercial and Industrial (1) Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (2) (Dollars in thousands) Amount % Risk Rating: Special mention $ 4,000 $ 10,817 $ 7,352 $ — $ 22,169 Substandard: Accrual 51,980 18,969 10,910 497 82,356 Nonaccrual 16,717 8,753 2,302 — 27,772 Doubtful 4,324 — — — 4,324 Total Special Mention and Substandard 77,021 38,539 20,564 497 136,621 2 % Acquired impaired 4,964 3,951 13,609 546 23,070 — % Pass 2,258,539 1,238,404 2,211,874 540,653 6,249,470 98 % Total $ 2,340,524 $ 1,280,894 $ 2,246,047 $ 541,696 $ 6,409,161 100 % (1) Includes commercial small business leases. (2) Table includes $2.5 billion of acquired non-impaired loans as of June 30, 2019 . December 31, 2018 Commercial and Industrial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) (Dollars in thousands) Amount % Risk Rating: Special mention $ 8,710 $ 21,230 $ — $ — $ 29,940 Substandard: Accrual 37,424 21,081 9,767 168 68,440 Nonaccrual 13,180 4,406 3,951 2,337 23,874 Doubtful 876 — — 444 1,320 Total Special Mention and Substandard 60,190 46,717 13,718 2,949 123,574 3 % Acquired impaired 1,531 4,248 7,504 749 14,032 — % Pass 1,410,768 1,009,009 1,141,517 312,868 3,874,162 97 % Total $ 1,472,489 $ 1,059,974 $ 1,162,739 $ 316,566 $ 4,011,768 100 % (1) Table includes $350.5 million of acquired non-impaired loans as of December 31, 2018 . Residential and Consumer Credit Exposure Residential (2) Consumer Total Residential and Consumer (3) June 30, December 31, June 30, December 31, June 30, 2019 December 31, 2018 (Dollars in thousands) 2019 2018 2019 2018 Amount Percent Amount Percent Nonperforming (1) $ 12,106 $ 11,017 $ 7,378 $ 7,883 $ 19,484 1 % $ 18,900 2 % Acquired impaired loans 7,863 761 2,999 151 10,862 — % 912 — % Performing 1,045,815 189,772 1,116,356 672,905 2,162,171 99 % 862,677 98 % Total $ 1,065,784 $ 201,550 $ 1,126,733 $ 680,939 $ 2,192,517 100 % $ 882,489 100 % (1) Includes $13.9 million as of June 30, 2019 and $14.0 million as of December 31, 2018 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest. (2) Residential performing loans excludes $15.9 million and $16.5 million of reverse mortgages at fair value as of June 30, 2019 and December 31, 2018 , respectively. (3) Total includes $1.2 billion and $79.5 million in acquired non-impaired loans as of June 30, 2019 and December 31, 2018 , respectively. Troubled Debt Restructurings (TDRs) TDRs are recorded in accordance with ASC 310-40, Troubled Debt Restructuring by Creditors . The following table presents the balance of TDRs as of the indicated dates: (Dollars in thousands) June 30, 2019 December 31, 2018 Performing TDRs $ 14,203 $ 14,953 Nonperforming TDRs 6,966 10,211 Total TDRs $ 21,169 $ 25,164 Approximately $0.8 million and $1.2 million in related reserves have been established for these loans at June 30, 2019 and December 31, 2018 , respectively. The following table presents information regarding the types of loan modifications made for the three and six months ended June 30, 2019 and 2018 : Three months ended June 30, 2019 Six months ended June 30, 2019 Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Commercial and Industrial — 1 — 2 3 — 1 — 2 3 Owner-occupied commercial — — — 2 2 — — — 2 2 Commercial Mortgages — — — 1 1 1 — — 1 2 Construction — — — — — — — — — — Residential 3 — — — 3 4 — 1 — 5 Consumer 3 1 — — 4 6 1 1 — 8 Total 6 2 — 5 13 11 2 2 5 20 Three months ended June 30, 2018 Six months ended June 30, 2018 Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other(1) Total Commercial and Industrial 3 — — — 3 3 — — — 3 Owner-occupied commercial — — — — — — — — — — Commercial Mortgages 1 — — — 1 1 1 — — 2 Construction — — — — — — 1 — — 1 Residential 4 — — — 4 4 — — — 4 Consumer 6 — 3 — 9 7 1 3 2 13 Total 14 — 3 — 17 15 3 3 2 23 (1) Other includes underwriting exceptions. Principal balances are generally not forgiven when a loan is modified as a TDR. Nonaccruing restructured loans remain in nonaccrual status until there has been a period of sustained repayment performance, which is typically six months , and repayment is reasonably assured. The following table presents loans identified as TDRs during the three and six months ended June 30, 2019 and 2018 . Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Pre Modification Post Modification Pre Modification Post Modification Pre Modification Post Modification Pre Modification Post Modification Commercial $ 1,347 $ 1,347 $ 4,782 $ 4,782 $ 1,347 $ 1,347 $ 4,782 $ 4,782 Owner-occupied commercial 1,435 1,435 — — 1,435 1,435 — — Commercial mortgages 483 483 1,564 1,564 514 514 2,022 2,022 Construction — — — — — — 920 920 Residential 321 321 469 469 423 423 469 469 Consumer 540 540 861 861 1,408 1,408 1,123 1,123 Total $ 4,126 $ 4,126 $ 7,676 $ 7,676 $ 5,127 $ 5,127 $ 9,316 $ 9,316 During the three and six months ended June 30, 2019 , the TDRs set forth in the table above resulted in a $0.1 million and $0.2 million decrease in our allowance for loan losses, respectively, and no additional charge-offs. For the three and six months ended June 30, 2018 , the TDRs set forth in the table resulted in a decrease of $0.7 million in our allowance for loan losses and $0.1 million additional charge-offs. During the three months ended June 30, 2019 , three TDRs defaulted that had received troubled debt modification during the past twelve months with a total loan amount of $1.2 million , compared with two loans with a total loan amount of $0.1 million during the three months ended June 30, 2018 . During the six months ended June 30, 2019 , four TDRs defaulted that had received troubled debt modification during the past twelve months with a total loan amount of $1.3 million , compared with four TDRs with a total loan amount of $0.2 million during the six months ended June 30, 2018 . |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | 9. 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 our equipment leasing business. Lessee Our leases have remaining lease terms of less than 1 year to 43 years, which includes renewal options that are exercised at our 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 within Other liabilities and Other assets , respectively, in the unaudited Consolidated Statement of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included within Occupancy expense in the unaudited Consolidated Statement of Income. We account for lease components separately from nonlease components. We sublease certain real estate to third parties. The components of operating lease cost were as follows: Three months ended Six months ended (Dollars in thousands) June 30, 2019 June 30, 2019 Operating lease cost (1) (2) $ 11,024 $ 16,748 Sublease income (175 ) (276 ) Net lease cost $ 10,849 $ 16,472 (1) Includes variable lease cost and short-term lease cost. (2) Includes accelerated expense due to the previously announced retail branch optimization plan. Supplemental balance sheet information related to operating leases was as follows: (Dollars in thousands) June 30, 2019 Assets Operating right of use assets $ 172,458 Total assets $ 172,458 Liabilities Operating lease liabilities $ 186,186 Total liabilities $ 186,186 Lease term and discount rate June 30, 2019 Weighted average remaining lease term (in years) Operating leases 19.79 Weighted average discount rate Operating leases 4.27 % Maturities of operating lease liabilities under ASC 842, Leases (as adopted on January 1, 2019) were as follows: (Dollars in thousands) June 30, 2019 2019 $ 14,479 2020 16,948 2021 16,605 2022 16,557 2023 16,717 After 2023 212,429 Total lease payments 293,735 Less: Interest (107,549 ) Present value of lease liabilities $ 186,186 The minimum cash payments for operating leases under ASC 840, Leases were as follows: (Dollars in thousands) December 31, 2018 2019 $ 11,562 2020 11,411 2021 11,132 2022 11,078 2023 11,141 After 2023 169,929 Total minimum lease payments $ 226,253 Supplemental cash flow information related to leases was as follows: Six months ended (Dollars in thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,941 Right of use assets obtained in exchange for new operating lease liabilities (non-cash) 61,693 Lessor Equipment Leasing WSFS provides equipment and small business lease financing through our two leasing subsidiaries, BEFC and NewLane Finance Company, acquired from our acquisition of Beneficial on March 1, 2019. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and Fees on Loans and Leases on the Consolidated Statements of Income. The components of direct finance lease income are summarized in the table below: Three months ended Six months ended (Dollars in thousands) June 30, 2019 June 30, 2019 Direct financing leases: Interest income on lease receivable $ 3,109 $ 3,778 Interest income on deferred fees and costs 206 263 Total direct financing lease income $ 3,315 $ 4,041 Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows: (Dollars in thousands) June 30, 2019 Lease receivables $ 176,497 Unearned income (20,321 ) Deferred fees and costs 562 Net investment in direct financing leases $ 156,738 At June 30, 2019 , future minimum lease payments to be received for direct financing leases were as follows: (Dollars in thousands) Direct financing leases 2019 $ 31,405 2020 54,378 2021 41,351 2022 27,301 2023 16,245 After 2023 5,817 Total lease payments $ 176,497 |
LEASES | 9. 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 our equipment leasing business. Lessee Our leases have remaining lease terms of less than 1 year to 43 years, which includes renewal options that are exercised at our 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 within Other liabilities and Other assets , respectively, in the unaudited Consolidated Statement of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included within Occupancy expense in the unaudited Consolidated Statement of Income. We account for lease components separately from nonlease components. We sublease certain real estate to third parties. The components of operating lease cost were as follows: Three months ended Six months ended (Dollars in thousands) June 30, 2019 June 30, 2019 Operating lease cost (1) (2) $ 11,024 $ 16,748 Sublease income (175 ) (276 ) Net lease cost $ 10,849 $ 16,472 (1) Includes variable lease cost and short-term lease cost. (2) Includes accelerated expense due to the previously announced retail branch optimization plan. Supplemental balance sheet information related to operating leases was as follows: (Dollars in thousands) June 30, 2019 Assets Operating right of use assets $ 172,458 Total assets $ 172,458 Liabilities Operating lease liabilities $ 186,186 Total liabilities $ 186,186 Lease term and discount rate June 30, 2019 Weighted average remaining lease term (in years) Operating leases 19.79 Weighted average discount rate Operating leases 4.27 % Maturities of operating lease liabilities under ASC 842, Leases (as adopted on January 1, 2019) were as follows: (Dollars in thousands) June 30, 2019 2019 $ 14,479 2020 16,948 2021 16,605 2022 16,557 2023 16,717 After 2023 212,429 Total lease payments 293,735 Less: Interest (107,549 ) Present value of lease liabilities $ 186,186 The minimum cash payments for operating leases under ASC 840, Leases were as follows: (Dollars in thousands) December 31, 2018 2019 $ 11,562 2020 11,411 2021 11,132 2022 11,078 2023 11,141 After 2023 169,929 Total minimum lease payments $ 226,253 Supplemental cash flow information related to leases was as follows: Six months ended (Dollars in thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,941 Right of use assets obtained in exchange for new operating lease liabilities (non-cash) 61,693 Lessor Equipment Leasing WSFS provides equipment and small business lease financing through our two leasing subsidiaries, BEFC and NewLane Finance Company, acquired from our acquisition of Beneficial on March 1, 2019. Interest income from direct financing leases where the Company is a lessor is recognized in Interest and Fees on Loans and Leases on the Consolidated Statements of Income. The components of direct finance lease income are summarized in the table below: Three months ended Six months ended (Dollars in thousands) June 30, 2019 June 30, 2019 Direct financing leases: Interest income on lease receivable $ 3,109 $ 3,778 Interest income on deferred fees and costs 206 263 Total direct financing lease income $ 3,315 $ 4,041 Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows: (Dollars in thousands) June 30, 2019 Lease receivables $ 176,497 Unearned income (20,321 ) Deferred fees and costs 562 Net investment in direct financing leases $ 156,738 At June 30, 2019 , future minimum lease payments to be received for direct financing leases were as follows: (Dollars in thousands) Direct financing leases 2019 $ 31,405 2020 54,378 2021 41,351 2022 27,301 2023 16,245 After 2023 5,817 Total lease payments $ 176,497 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 10. 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. During the six months ended June 30, 2019 , we determined there were no events or indicators of impairment as it relates to goodwill or other intangibles. The following table shows the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing: (Dollars in thousands) WSFS Bank Cash Connect Wealth Management Consolidated Company December 31, 2018 $ 145,808 $ — $ 20,199 $ 166,007 Goodwill from business combinations 309,486 — — 309,486 Remeasurement adjustments (1,781 ) — — (1,781 ) June 30, 2019 $ 453,513 $ — $ 20,199 $ 473,712 ASC 350 also requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so. The following table summarizes our intangible assets: (Dollars in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Amortization Period June 30, 2019 Core deposits $ 95,711 $ (8,603 ) $ 87,108 10 years Customer relationships 17,561 (6,615 ) 10,946 7-15 years Non-compete agreements 221 (124 ) 97 5 years Loan servicing rights 5,219 (1,386 ) 3,833 10-30 years Total intangible assets $ 118,712 $ (16,728 ) $ 101,984 December 31, 2018 Core deposits $ 10,658 $ (5,285 ) $ 5,373 10 years Customer relationships 17,561 (5,815 ) 11,746 7-15 years Non-compete agreements 221 (101 ) 120 5 years Loan servicing rights 2,652 (1,301 ) 1,351 10-30 years Favorable lease asset (1) 1,932 (506 ) 1,426 10 months-18 years Total intangible assets $ 33,024 $ (13,008 ) $ 20,016 (1) The favorable lease asset was fully amortized and written off during the six months ended June 30, 2019 as a result of our adoption of ASU 2016-02 on January 1, 2019. See Note 2 for further information. We recognized amortization expense on intangible assets of $ 2.8 million and $ 4.1 million for the three and six months ended June 30, 2019 , respectively, and $ 0.7 million and $ 1.4 million for the three and six months ended June 30, 2018 , respectively. The following table presents the estimated future amortization expense on our intangible assets: (Dollars in thousands) Amortization of Intangibles Remaining in 2019 $ 5,644 2020 11,105 2021 10,780 2022 10,717 2023 10,689 Thereafter 53,049 Total $ 101,984 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
DEPOSITS | 11. DEPOSITS The following table shows our deposits by category: (Dollars in thousands) June 30, 2019 December 31, 2018 Noninterest-bearing: Noninterest demand $ 2,205,992 $ 1,626,252 Total noninterest-bearing $ 2,205,992 $ 1,626,252 Interest-bearing: Interest-bearing demand $ 2,039,545 $ 1,062,228 Savings 1,600,879 538,213 Money market 1,987,485 1,542,962 Customer time deposits 1,437,650 672,942 Brokered deposits 323,159 197,834 Total interest-bearing 7,388,718 4,014,179 Total deposits $ 9,594,710 $ 5,640,431 |
ASSOCIATE BENEFIT PLANS
ASSOCIATE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2019 | |
Postemployment Benefits [Abstract] | |
ASSOCIATE BENEFIT PLANS | 12. ASSOCIATE BENEFIT PLANS Postretirement Medical Benefits We share certain costs of providing health and life insurance benefits to eligible retired Associates (employees) and their eligible dependents. Previously, all Associates were eligible for these benefits if they reached normal retirement age while working for us. Effective March 31, 2014, we changed the eligibility of this plan to include only those Associates who have achieved ten years of service with us as of March 31, 2014. As of December 31, 2014, we began to use the mortality table issued by the Office of the Actuary of the U.S. Bureau of Census in our calculation. We account for our obligations under the provisions of ASC 715, Compensation - Retirement Benefits (ASC 715). ASC 715 requires that we recognize the costs of these benefits over an Associate’s active working career. Amortization of unrecognized net gains or losses resulting from experience different from that assumed and from changes in assumptions is included as a component of net periodic benefit cost over the remaining service period of active employees to the extent that such gains and losses exceed 10% of the accumulated postretirement benefit obligation, as of the beginning of the year. We recognize our net periodic benefit cost in Salaries, benefits and other compensation in our unaudited Consolidated Statements of Income. The following table presents the components of net periodic benefit cost related to our postretirement medical benefits plan measured at January 1, 2019 and 2018. Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Service cost $ 14 $ 15 $ 27 $ 30 Interest cost 19 18 38 35 Prior service cost amortization (19 ) (19 ) (38 ) (38 ) Net gain recognition (16 ) (12 ) (31 ) (23 ) Net periodic benefit cost $ (2 ) $ 2 $ (4 ) $ 4 Alliance Associate Pension Plan During the fourth quarter of 2015, we completed the acquisition of Alliance and its wholly owned subsidiary, Alliance Bank, headquartered in Broomall, Pennsylvania. At the time of the acquisition, we assumed the Alliance pension plan offered to its current Associates. The following table presents the components of net periodic benefit cost related to the Alliance Associate Pension Plan measured at January 1, 2019 and 2018. Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Service cost $ 10 $ 10 $ 20 $ 20 Interest cost 69 74 138 147 Expected return on plan assets (148 ) (137 ) (295 ) (272 ) Prior service cost amortization — — — — Net gain recognition — — — — Net periodic benefit cost $ (69 ) $ (53 ) $ (137 ) $ (105 ) During the fourth quarter of 2018, the Company notified the Alliance pension plan participants, the Internal Revenue Service, and the Pension Benefit Guaranty Corporation of its intention to terminate the plan. The Company anticipates completing the pension plan termination in the second half of 2019. As of June 30, 2019, the valuation of the benefit obligations and estimated future benefit payments did not include termination assumptions. Beneficial Associate Pension and other postretirement benefits plans On March 1, 2019, we closed our acquisition of Beneficial. At the time of the acquisition, we assumed the pension plan covering certain eligible Beneficial Associates. The plan was frozen in 2008. The following table presents the components of net periodic benefit cost related to the Beneficial pension benefits and other postretirement benefit plans. Three months ended June 30, 2019 Six months ended June 30, 2019 Three months ended June 30, 2019 Six months ended June 30, 2019 (Dollars in thousands) Pension Benefits Other Postretirement Benefits Service cost $ — $ — $ 23 $ 30 Interest cost 857 1,142 177 236 Expected return on plan assets (1,442 ) (1,923 ) — — Prior service cost amortization — — — — Net gain recognition — — — — Net periodic benefit cost $ (585 ) $ (781 ) $ 200 $ 266 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. INCOME TAXES We account for income taxes in accordance with ASC 740, Income Taxes (ASC 740). ASC 740 requires the recording of deferred income taxes that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We exercise significant judgment in the evaluation of the amount and timing of the recognition of the resulting tax assets and liabilities. The judgments and estimates required for the evaluation are updated based on changes in business factors and tax laws. If actual results differ from the assumptions and other considerations used in estimating the amount and timing of tax recognized, there can be no assurance that additional expenses will not be required in future periods. ASC 740 prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. We recognize, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the financial statements. Assessment of uncertain tax positions under ASC 740 requires careful consideration of the technical merits of a position based on our analysis of tax regulations and interpretations. There were no unrecognized tax benefits as of June 30, 2019 . We record interest and penalties on potential income tax deficiencies as income tax expense. Our federal and state tax returns for the 2015 through 2018 tax years are subject to examination as of June 30, 2019 . We do not expect to record or realize any material unrecognized tax benefits during 2019 . As a result of the adoption of ASU No. 2014-01, Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects , the amortization of our low-income housing credit investments has been reflected as income tax expense. Accordingly, $0.6 million and $0.5 million of such amortization has been reflected as income tax expense for the three months ended June 30, 2019 and 2018 , respectively, and $1.3 million and $0.9 million of such amortization has been reflected as income tax expense for the six months ended June 30, 2019 and 2018 , respectively . The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the six months ended June 30, 2019 were $1.2 million , $1.3 million and $0.2 million , respectively. The carrying value of the investment in affordable housing credits is $15.6 million at June 30, 2019 , compared to $16.9 million at December 31, 2018 . |
FAIR VALUE DISCLOSURES OF FINAN
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES | 14. FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: • Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. • Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following tables present financial instruments carried at fair value as of June 30, 2019 and December 31, 2018 by level in the valuation hierarchy (as described above): June 30, 2019 (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 $ — $ 372,235 $ — $ 372,235 FNMA MBS — 1,052,395 — 1,052,395 FHLMC MBS — 336,583 — 336,583 GNMA MBS — 35,657 — 35,657 Other assets — 4,995 — 4,995 Total assets measured at fair value on a recurring basis $ — $ 1,801,865 $ — $ 1,801,865 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 4,562 $ — $ 4,562 Assets measured at fair value on a nonrecurring basis: Other investments $ — $ — $ 48,711 $ 48,711 Other real estate owned — — 3,703 3,703 Loans held for sale — 51,721 — 51,721 Impaired loans, net — — 49,458 49,458 Total assets measured at fair value on a nonrecurring basis $ — $ 51,721 $ 101,872 $ 153,593 December 31, 2018 (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 $ — $ 371,750 $ — $ 371,750 FNMA MBS — 644,073 — 644,073 FHLMC MBS — 153,922 — 153,922 GNMA MBS — 35,334 — 35,334 Other assets — 2,098 — 2,098 Total assets measured at fair value on a recurring basis $ — $ 1,207,177 $ — $ 1,207,177 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 3,493 $ — $ 3,493 Assets measured at fair value on a nonrecurring basis Other investments — — 37,233 37,233 Other real estate owned — — 2,668 2,668 Loans held for sale — 25,318 — 25,318 Impaired loans, net — — 47,094 47,094 Total assets measured at fair value on a nonrecurring basis $ — $ 25,318 $ 86,995 $ 112,313 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2019 . Fair value is based on quoted market prices, where available. If such quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include unobservable parameters. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While we believe our valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Available-for-sale securities As of June 30, 2019 , securities classified as available-for-sale are reported at fair value using Level 2 inputs. Included in the Level 2 total are $1.8 billion in Federal Agency MBS. We believe that this Level 2 designation is appropriate for these securities under ASC 820-10 because, as with almost all fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. Other investments Other investments includes our investments in equity securities without readily determinable fair values. These investments include, among others, our Visa Class B shares and our investments in Spring EQ and SoFi, all of which are categorized as Level 3. Our Visa Class B ownership includes shares acquired at no cost from our prior participation in Visa’s network while Visa operated as a cooperative as well as shares subsequently acquired through private transactions and auctions. Our equity investments without readily determinable fair values are held at cost, and are adjusted for any observable transactions during the reporting period. As a result of our adoption of ASU 2016-01 and observable market transactions, we recorded unrealized gains on our investments in Visa Class B shares and Spring EQ of $4.8 million during the six months ended June 30, 2019 as compared to $15.3 million during the six months ended June 30, 2018 . 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 our real estate owned was estimated using Level 3 inputs based on appraisals obtained from third parties. Loans held for sale The fair value of our loans held for sale is based on estimates using Level 2 inputs. These inputs are based on pricing information obtained from wholesale mortgage banks and brokers and applied to loans with similar interest rates and maturities. Impaired loans We evaluate and value impaired loans at the time the loan is identified as impaired, and the fair values of such loans are estimated using Level 3 inputs in the fair value hierarchy. Each loan’s collateral has a unique appraisal and management’s discount of the value is based on the factors unique to each impaired loan. The significant unobservable input in determining the fair value is management’s subjective discount on appraisals of the collateral securing the loan, which typically ranges from 10% - 20% . Collateral may consist of real estate and/or business assets including equipment, inventory and/or accounts receivable and the value of these assets is determined based on the appraisals by qualified licensed appraisers hired by us. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, estimated costs to sell, and/or management’s expertise and knowledge of the client and the client’s business. The gross amount of impaired loans, which are measured for impairment by either calculating the expected future cash flows discounted at the loan’s effective interest rate or determining the fair value of the collateral for collateral dependent loans was $54.6 million and $49.4 million at June 30, 2019 and December 31, 2018 , respectively. The valuation allowance on impaired loans was $5.2 million as of June 30, 2019 and $2.3 million as of December 31, 2018 . FAIR VALUE OF FINANCIAL INSTRUMENTS The reported fair values of financial instruments are based on a variety of factors. In certain cases, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions regarding the amount and timing of estimated future cash flows that are discounted to reflect current market rates and varying degrees of risk. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of period-end or that will be realized in the future. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and cash equivalents For cash and short-term investment securities, including due from banks, federal funds sold or purchased under agreements to resell and interest-bearing deposits with other banks, the carrying amount is a reasonable estimate of fair value. Investment securities Fair value is estimated using quoted prices for similar securities, which we obtain from a third party vendor. We utilize one of the largest providers of securities pricing to the industry and management periodically assesses the inputs used by this vendor to price the various types of securities owned by us to validate the vendor’s methodology as described above in available-for-sale securities. Other investments Other investments includes our investments in equity securities with and 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 Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type: commercial, commercial small business leases, commercial mortgages, owner-occupied commercial, construction, residential mortgages and consumer. For loans that reprice frequently, the book value approximates fair value. The fair values of other types of loans, with the exception of reverse mortgages, are estimated by discounting expected cash flows using the current rates at which similar loans would be made to borrowers with comparable credit ratings and for similar remaining maturities. The fair values of reverse mortgages are based on the net present value of the expected cash flows using a discount rate specific to the reverse mortgages portfolio. The fair value of nonperforming loans is based on recent external appraisals of the underlying collateral. Estimated cash flows, discounted using a rate commensurate with current rates and the risk associated with the estimated cash flows, are 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. Other assets Other assets includes, among other things, investments in subsidiaries, prepaid expenses, interest and fee income receivable, derivative financial instruments and deferred tax assets (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 us for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Other Liabilities Other liabilities includes, among others, cash flow derivatives and derivatives on the residential mortgage held for sale pipeline. Valuation of our cash flow derivatives 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 pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale . Off-balance sheet instruments The fair value of off-balance sheet instruments, including commitments to extend credit and standby letters of credit, approximates the recorded net deferred fee amounts, which are not significant. Because commitments to extend credit and letters of credit are generally not assignable by either us or the borrower, they only have value to us and the borrower. The book value and estimated fair value of our financial instruments are as follows: June 30, 2019 December 31, 2018 (Dollars in thousands) Fair Value Measurement Book Value Fair Value Book Value Fair Value Financial assets: Cash and cash equivalents Level 1 $ 521,825 $ 521,825 $ 620,757 $ 620,757 Investment securities available for sale See previous table 1,796,870 1,796,870 1,205,079 1,205,079 Investment securities held to maturity Level 2 143,317 145,867 149,950 149,431 Other investments Level 3 48,711 48,711 37,233 37,233 Loans, held for sale Level 2 51,721 51,721 25,318 25,318 Loans, net (1)(2) Level 3 8,518,251 8,739,014 4,816,825 4,772,377 Impaired loans, net Level 3 49,458 49,458 47,094 47,094 Stock in FHLB of Pittsburgh Level 2 15,874 15,874 19,259 19,259 Accrued interest receivable Level 2 40,784 40,784 22,001 22,001 Other assets Level 2 4,995 4,995 2,098 2,098 Financial liabilities: Deposits Level 2 9,594,710 9,680,779 5,640,431 5,597,227 Borrowed funds Level 2 415,131 415,155 699,788 694,526 Standby letters of credit Level 3 407 407 495 495 Accrued interest payable Level 2 7,064 7,064 1,900 1,900 Other liabilities Level 2 4,562 4,579 3,493 3,493 (1) Excludes impaired loans, net. (2) Includes reverse mortgage loans. At June 30, 2019 and December 31, 2018 we had no commitments to extend credit measured at fair value. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 15. DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both economic conditions and our business operations. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities. We manage a matched book with respect to our derivative instruments in order to minimize our net risk exposure resulting from such transactions. Fair Values of Derivative Instruments The table below presents the fair value of our derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of June 30, 2019 . Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Derivatives (Fair Value) Derivatives designated as hedging instruments: Interest rate products 3 $ 75,000 Other Liabilities $ (1,075 ) Total $ 75,000 $ (1,075 ) Derivatives not designated as hedging instruments: Interest rate products $ 80,996 Other Assets $ 3,043 Interest rate products 80,996 Other Liabilities (3,247 ) Risk participation agreements 5,455 Other Liabilities (7 ) Interest rate lock commitments with customers 108,345 Other Assets 1,727 Interest rate lock commitments with customers 5,693 Other Liabilities (13 ) Forward sale commitments 47,607 Other Assets 225 Forward sale commitments 65,116 Other Liabilities (220 ) Total $ 394,208 $ 1,508 Total derivatives $ 469,208 $ 433 The table below presents the fair value of our derivative financial instruments as well as their location on the Consolidated Statements of Financial Condition as of December 31, 2018 . Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Derivatives (Fair Value) Derivatives designated as hedging instruments: Interest rate products 3 $ 75,000 Other Liabilities $ (3,308 ) Total $ 75,000 $ (3,308 ) Derivatives not designated as hedging instruments: Interest rate lock commitments with customers $ 40,795 Other Assets $ 686 Interest rate lock commitments with customers 6,530 Other Liabilities (24 ) Forward sale commitments 19,732 Other Assets 143 Forward sale commitments 25,876 Other Liabilities (161 ) Total $ 92,933 $ 644 Total derivatives $ 167,933 $ (2,664 ) Cash Flow Hedges of Interest Rate Risk Our objectives in using interest rate derivatives are to add stability to interest income and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for us making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. 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. During the six months ended June 30, 2019 , such derivatives were used to hedge the variable cash flows associated with a variable rate loan pool. Amounts reported in accumulated other comprehensive income (loss) related to derivatives are reclassified to interest income as interest payments are received on our variable-rate pooled loans. During the next twelve months, we estimate that $0.6 million will be reclassified as an increase to interest income. During the six months ended June 30, 2019 , $0.7 million was reclassified into interest income. We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of one month (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). As of June 30, 2019 , we had three outstanding interest rate derivatives with an aggregate notional amount of $75 million that were designated as cash flow hedges of interest rate risk. Effect of Derivative Instruments on the Income Statement The table below presents the effect of the derivative financial instruments on the unaudited Consolidated Statements of Income for the three and six months ended June 30, 2019 and June 30, 2018 . Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) Location of (Loss) or Gain Reclassified from Accumulated OCI into Income (Effective Portion) (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2019 2018 2019 2018 Interest Rate Products $ (1,007 ) $ (246 ) $ (1,637 ) $ (1,010 ) Interest income Total $ (1,007 ) $ (246 ) $ (1,637 ) $ (1,010 ) Amount of Gain or (Loss) Recognized in Income Amount of Gain or (Loss) Recognized in Income Location of Gain or (Loss) Recognized in Income (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Derivatives Not Designated as a Hedging Instrument 2019 2018 2019 2018 Interest Rate Lock Commitments $ 542 $ 96 $ 1,174 $ (296 ) Mortgage banking activities, net Forward Sale Commitments (487 ) $ 60 (721 ) $ (332 ) Mortgage banking activities, net Total $ 55 $ 156 $ 453 $ (628 ) Credit risk-related Contingent Features We have agreements with certain derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain derivative counterparties that contain a provision where if we fail to maintain our status as a well-capitalized or adequately capitalized institution, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. As of June 30, 2019 , the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $1.2 million . We have minimum collateral posting thresholds with certain of our derivative counterparties, and have posted collateral of $6.6 million against our obligations under these agreements. If we had breached any of these provisions at June 30, 2019 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 16. 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. We evaluate performance based on pretax net income relative to resources used, and allocate resources based on these results. The accounting policies applicable to our segments are those that apply to our preparation of the accompanying unaudited Consolidated Financial Statements. Based on these criteria, we have identified three segments: WSFS Bank, Cash Connect ® , and Wealth Management. The WSFS Bank segment provides financial products to commercial and retail customers. Retail and Commercial Banking, Commercial Real Estate Lending and other banking business units are operating departments of WSFS Bank. These departments share the same regulator, the same market, many of the same customers and provide similar products and services through the general infrastructure of the Bank. Accordingly, these departments are not considered discrete segments and are appropriately aggregated within the WSFS Bank segment in accordance with ASC 280. Our 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. WSFS Wealth Investments provides financial advisory services along with insurance and brokerage products. Cypress, a registered investment adviser, is a fee-only wealth management firm managing a “balanced” investment style portfolio focused on preservation of capital and generating current income. West Capital, a registered investment adviser, is a fee-only wealth management firm operating under a multi-family office philosophy to provide customized solutions to institutions and high-net-worth individuals. The institutional trust division of WSFS (doing business as WSFS Institutional Services) provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional and corporate clients. The personal trust division of WSFS (doing business as Christiana Trust) provides personal trust and fiduciary services to families and individuals across the U.S. 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. WSFS Wealth Client Management serves high-net-worth clients by delivering credit and deposit products and partnering with other Wealth Management units to provide comprehensive solutions to clients. The following tables show segment results for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (Dollars in thousands) WSFS Bank Cash ® Wealth Management Total WSFS Bank Cash ® Wealth Total Statements of Income External customer revenues: Interest income $ 140,231 $ — $ 2,672 $ 142,903 $ 69,599 $ — $ 2,552 $ 72,151 Noninterest income 18,870 13,355 10,646 42,871 12,045 12,328 10,614 34,987 Total external customer revenues 159,101 13,355 13,318 185,774 81,644 12,328 13,166 107,138 Inter-segment revenues: Interest income 3,345 — 4,052 7,397 3,565 — 2,670 6,235 Noninterest income 2,156 192 211 2,559 2,219 200 37 2,456 Total inter-segment revenues 5,501 192 4,263 9,956 5,784 200 2,707 8,691 Total revenue 164,602 13,547 17,581 195,730 87,428 12,528 15,873 115,829 External customer expenses: Interest expense 18,282 — 1,389 19,671 10,599 — 563 11,162 Noninterest expenses 91,415 8,893 7,540 107,848 42,505 7,905 7,421 57,831 Provision for loan losses 12,239 — (44 ) 12,195 2,284 — 214 2,498 Total external customer expenses 121,936 8,893 8,885 139,714 55,388 7,905 8,198 71,491 Inter-segment expenses: Interest expense 4,052 2,203 1,142 7,397 2,670 2,516 1,049 6,235 Noninterest expenses 403 698 1,458 2,559 237 637 1,582 2,456 Total inter-segment expenses 4,455 2,901 2,600 9,956 2,907 3,153 2,631 8,691 Total expenses 126,391 11,794 11,485 149,670 58,295 11,058 10,829 80,182 Income before taxes $ 38,211 $ 1,753 $ 6,096 $ 46,060 $ 29,133 $ 1,470 $ 5,044 $ 35,647 Income tax provision 10,091 6,907 Consolidated net income 35,969 28,740 Net loss attributable to noncontrolling interest (231 ) — Net income attributable to WSFS 36,200 28,740 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (Dollars in thousands) WSFS Bank Cash ® Wealth Management Total WSFS Bank Cash ® Wealth Total Statements of Income External customer revenues: Interest income $ 237,177 $ — $ 5,303 $ 242,480 $ 134,889 $ — $ 4,875 $ 139,764 Noninterest income 36,134 25,757 22,102 83,993 38,651 23,681 20,122 82,454 Total external customer revenues 273,311 25,757 27,405 326,473 173,540 23,681 24,997 222,218 Inter-segment revenues: — Interest income 7,137 — 8,057 15,194 6,533 — 5,033 11,566 Noninterest income 4,039 369 397 4,805 4,327 381 71 4,779 Total inter-segment revenues 11,176 369 8,454 19,999 10,860 381 5,104 16,345 Total revenue 284,487 26,126 35,859 346,472 184,400 24,062 30,101 238,563 External customer expenses: — Interest expense 33,418 — 2,516 35,934 20,102 — 959 21,061 Noninterest expenses 173,992 16,923 14,525 205,440 81,940 15,224 14,079 111,243 Provision for loan losses 19,525 — 324 19,849 5,945 — 203 6,148 Total external customer expenses 226,935 16,923 17,365 261,223 107,987 15,224 15,241 138,452 Inter-segment expenses: — Interest expense 8,057 4,761 2,376 15,194 5,033 4,575 1,958 11,566 Noninterest expenses 766 1,243 2,796 4,805 452 1,309 3,018 4,779 Total inter-segment expenses 8,823 6,004 5,172 19,999 5,485 5,884 4,976 16,345 Total expenses 235,758 22,927 22,537 281,222 113,472 21,108 20,217 154,797 Income before taxes $ 48,729 $ 3,199 $ 13,322 $ 65,250 $ 70,928 $ 2,954 $ 9,884 $ 83,766 Income tax provision 16,351 17,676 Consolidated net income 48,899 66,090 Net loss attributable to noncontrolling interest (324 ) — Net income attributable to WSFS 49,223 66,090 The following table shows significant components of segment net assets as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (Dollars in thousands) WSFS Bank Cash ® Wealth Total WSFS Bank Cash ® Wealth Management Total Statements of Financial Condition Cash and cash equivalents $ 167,173 $ 345,971 $ 8,681 $ 521,825 $ 115,147 $ 491,863 $ 13,747 $ 620,757 Goodwill 453,513 — 20,199 473,712 145,808 — 20,199 166,007 Other segment assets 10,938,718 6,875 215,465 11,161,058 6,225,820 7,743 228,543 6,462,106 Total segment assets $ 11,559,404 $ 352,846 $ 244,345 $ 12,156,595 $ 6,486,775 $ 499,606 $ 262,489 $ 7,248,870 Capital expenditures $ 5,240 $ 71 $ 130 $ 5,441 $ 4,779 $ 375 $ 344 $ 5,498 |
INDEMNIFICATIONS AND GUARANTEES
INDEMNIFICATIONS AND GUARANTEES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
INDEMNIFICATIONS AND GUARANTEES | 17. INDEMNIFICATIONS AND GUARANTEES Secondary Market Loan Sales Given the current interest rate environment and our overall asset and liability management approach, we typically sell newly originated residential mortgage loans in the secondary market to mortgage loan aggregators and on a more limited basis, to government sponsored entities (GSEs) such as FHLMC, FNMA, and the FHLB. Loans held for sale are reflected on our unaudited Consolidated Statements of Financial Condition at fair value with changes in the value reflected in our unaudited Consolidated Statements of Income. Gains and losses are recognized at the time of sale. We periodically retain the servicing rights on residential mortgage loans sold which results in monthly service fee income. The mortgage servicing rights are included in our intangible assets in our unaudited Consolidated Statements of Financial Condition. Otherwise, we sell loans with servicing released on a nonrecourse basis. Rate-locked loan commitments that we intend to sell in the secondary market are accounted for as derivatives under ASC Topic 815, Derivatives and Hedging (ASC 815) . We do not sell loans with recourse, except for standard loan sale contract provisions covering violations of representations and warranties and, under certain circumstances, early payment default by the borrower. These are customary repurchase provisions in the secondary market for residential mortgage loan sales. These provisions may include either an indemnification from loss or the repurchase of the loans. Repurchases and losses have been rare and no provision is made for losses at the time of sale. There was one repurchase for $0.2 million during the six months ended June 30, 2019 . Swap Guarantees We entered into agreements with seven unrelated financial institutions whereby those financial institutions entered into interest rate derivative contracts (interest rate swap transactions) with customers referred to them by us. Under the terms of the agreements, those financial institutions have recourse to us for any exposure created under each swap transaction in the event that the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. This is a customary arrangement that allows us to provide access to interest rate swap transactions for our customers without creating the swap ourselves. These swap guarantees are accounted for as credit derivatives . At June 30, 2019 and December 31, 2018 , there were 168 and 136 variable-rate to fixed-rate swap transactions between the third party financial institutions and our customers, respectively. The initial notional aggregate amount was approximately $766.1 million at June 30, 2019 compared to $581.5 million at December 31, 2018 . At June 30, 2019 , maturities ranged from under 1 year to 15 years. The aggregate market value of these swaps to the customers was a liability of $25.1 million at June 30, 2019 and a liability of $0.3 million at December 31, 2018 . At June 30, 2019 , 146 swaps, with a liability of $26.1 million , were in paying positions to a third party. We had no reserves for these swap guarantees as of June 30, 2019 . |
CHANGE IN ACCUMULATED OTHER COM
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 18. CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (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, transition 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 Statement 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: (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 Total Balance, March 31, 2019 $ 2,701 $ 686 $ 693 $ (1,824 ) $ 2,256 Other comprehensive income before reclassifications 19,591 — 10 1,007 20,608 Less: Amounts reclassified from accumulated other comprehensive (loss) income (48 ) (84 ) (44 ) — (176 ) Net current-period other comprehensive income (loss) 19,543 (84 ) (34 ) 1,007 20,432 Balance, June 30, 2019 $ 22,244 $ 602 $ 659 $ (817 ) $ 22,688 Balance, March 31, 2018 $ (19,685 ) $ 1,104 $ 924 $ (3,163 ) $ (20,820 ) Other comprehensive income (loss) before reclassifications (4,501 ) — 8 (245 ) (4,738 ) Less: Amounts reclassified from accumulated other comprehensive income (loss) — (117 ) (38 ) — (155 ) Net current-period other comprehensive (loss) income (4,501 ) (117 ) (30 ) (245 ) (4,893 ) Balance, June 30, 2018 $ (24,186 ) $ 987 $ 894 $ (3,408 ) $ (25,713 ) (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 Total Balance, December 31, 2018 $ (14,553 ) $ 779 $ 834 $ (2,454 ) $ (15,394 ) Other comprehensive income (loss) before reclassifications 36,856 (2 ) (89 ) 1,637 38,402 Less: Amounts reclassified from accumulated other comprehensive (loss) income (59 ) (175 ) (86 ) — (320 ) Net current-period other comprehensive income (loss) 36,797 (177 ) (175 ) 1,637 38,082 Balance, June 30, 2019 $ 22,244 $ 602 $ 659 $ (817 ) $ 22,688 Balance, December 31, 2017 $ (7,842 ) $ 1,223 $ 865 $ (2,398 ) $ (8,152 ) Other comprehensive income (loss) before reclassifications (16,328 ) — 8 (1,010 ) (17,330 ) Less: Amounts reclassified from accumulated other comprehensive income (loss) (16 ) (236 ) 21 — (231 ) Net current-period other comprehensive (loss) income (16,344 ) (236 ) 29 (1,010 ) (17,561 ) Balance, June 30, 2018 $ (24,186 ) $ 987 $ 894 $ (3,408 ) $ (25,713 ) The unaudited Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below: Three Months Ended June 30, Affected line item in unaudited Consolidated Statements of Income (Dollars in thousands) 2019 2018 Securities available for sale: Realized gains on securities transactions $ (63 ) $ — Securities gains, net Income taxes 15 — Income tax provision Net of tax $ (48 ) $ — Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized gains to income during the period $ (111 ) $ (153 ) Interest and dividends on investment securities Income taxes 27 36 Income tax provision Net of tax $ (84 ) $ (117 ) Amortization of Defined Benefit Pension items: Prior service costs (credits) (1) $ (19 ) $ (19 ) Actuarial gains (16 ) (12 ) Total before tax $ (35 ) $ (31 ) Salaries, benefits and other compensation Income taxes (9 ) (7 ) Income tax provision Net of tax (44 ) (38 ) Total reclassifications $ (176 ) $ (155 ) Six Months Ended June 30, Affected line item in unaudited Consolidated Statements of Income (Dollars in thousands) 2019 2018 Securities available for sale: Realized gains on securities transactions $ (78 ) $ (21 ) Securities gains, net Income taxes 19 5 Income tax provision Net of tax $ (59 ) $ (16 ) Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized gains to income during the period $ (231 ) $ (309 ) Interest and dividends on investment securities Income taxes 56 73 Income tax provision Net of tax $ (175 ) $ (236 ) Amortization of Defined Benefit Pension items: Prior service costs (credits) (1) $ (38 ) $ 40 Transition obligation — — Actuarial gains (31 ) (23 ) Total before tax $ (69 ) $ 17 Salaries, benefits and other compensation Income taxes (17 ) 4 Income tax provision Net of tax (86 ) 21 Total reclassifications $ (320 ) $ (231 ) (1) Prior service costs balance for the six months ended June 30, 2018 includes a tax true-up adjustment of $0.1 million from March 31, 2018 . Note that the tax true-up was made to the deferred tax asset with an offset to AOCI and does not affect the actual net periodic benefit costs of the pension plan. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS In the ordinary course of business, from time to time we enter into transactions with related parties, including, but not limited to, our officers and directors. These transactions are made on substantially the same terms and conditions, including interest rates and collateral requirements, as those prevailing at the same time for comparable transactions with other customers. They do not, in the opinion of management, involve greater than normal credit risk or include other features unfavorable to us. Any related party loans exceeding $0.5 million require review and approval by the Board of Directors. During the second quarter of 2019 , there were no loans to related parties exceeding $0.5 million . The outstanding balances of loans to related parties at June 30, 2019 and December 31, 2018 were $1.0 million and $1.2 million , respectively. Total deposits from related parties at June 30, 2019 and December 31, 2018 were $8.3 million and $5.4 million , respectively. During the second quarter of 2019 , new loans and credit line advances to related parties were less than $0.1 million and repayments were $0.3 million |
LEGAL AND OTHER PROCEEDINGS
LEGAL AND OTHER PROCEEDINGS | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL AND OTHER PROCEEDINGS | 20. LEGAL AND OTHER PROCEEDINGS In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation-related matters that arise in the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. In addition, our defense of litigation claims may result in legal fees, which we expense as incurred. As previously disclosed, on February 27, 2018 , we entered into a settlement agreement with Universitas Education, LLC (Universitas) to resolve arbitration claims related to services provided by Christiana Bank and Trust Company (CB&T) prior to its acquisition by WSFS in December 2010. In accordance with the litigation settlement, we paid Universitas $12.0 million to fully settle the claims. During the third quarter of 2018, WSFS recovered $7.9 million in settlement and legal costs from insurance carriers that provided coverage relating to the Universitas matter. WSFS is pursuing all of its rights and remedies to recover the remaining amounts relating to the Universitas proceeding, including the Universitas settlement payment, legal fees and related costs, by enforcing the indemnity right in the 2010 purchase agreement by which WSFS acquired CB&T. In March 2017, Nature’s Healing Trust (NHT) filed a complaint against WSFS Bank in the Delaware Court of Chancery. NHT asserts that WSFS Bank failed to provide timely notice concerning the possible lapse of two life settlement policies (aggregate face amount of $6.3 million ) held in the trust. NHT asserts claims against WSFS Bank for breach of contract, breach of fiduciary duty, and negligence, and seeks the face value of the policies. WSFS Bank disputes the factual allegations and denies liability. WSFS Bank has, in accordance with its normal procedures, notified its insurance carriers of a possible claim. WSFS Bank is vigorously defending itself in this matter and believes it has valid factual and legal defenses. The case is currently scheduled to go to trial during the fourth quarter of 2019. There were no material changes or additions to other significant pending legal or other proceedings involving us other than those arising out of routine operations. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | General Our unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (the Company or WSFS), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital), Cypress Capital Management, LLC (Cypress) and Christiana Trust Company of Delaware (Christiana Trust DE). We also have one unconsolidated subsidiary, WSFS Capital Trust III. WSFS Bank has four wholly owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC), WSFS Investment Group, Inc. (WSFS Wealth Investments), 1832 Holdings, Inc., and WSFS SPE Services, LLC, and one majority-owned subsidiary, NewLane Finance Company. Overview Founded in 1832, the Bank is one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). We provide residential and commercial real estate, commercial and consumer lending services, as well as retail deposit and cash management services. Our core banking business is commercial lending funded primarily by customer-generated deposits. In addition, we offer a variety of wealth management and trust services to personal and corporate customers. The Federal Deposit Insurance Corporation (FDIC) insures our customers’ deposits to their legal maximums. We serve our customers primarily from 147 offices located in Pennsylvania ( 72 ), Delaware ( 49 ), New Jersey ( 24 ), Virginia ( 1 ) and Nevada ( 1 ) and through our website at www.wsfsbank.com . Information on our website is not incorporated by reference into this Quarterly Report on Form 10-Q. Our leasing business is conducted by NewLane Finance Company (formerly Neumann Finance Company) and BEFC. Newlane Finance Company originates small business leases and provides financing products and services to businesses nationwide targeting various equipment categories including technology, software, office, medical and other areas. BEFC originates small business leases, primarily medical and veterinary equipment. During the second quarter of 2019, WSFS Bank announced its intention to combine the operations of NewLane Finance Company and BEFC later in 2019. Basis of Presentation In preparing the unaudited Consolidated Financial Statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for loan and lease losses and reserves for lending-related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, income taxes and other-than-temporary impairment (OTTI). Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the establishment of the allowance and lending-related commitments as well as increased post-retirement benefits expense. Our accounting and reporting policies conform to Generally Accepted Accounting Principles 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, 2019 . These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Annual Report on Form 10-K) that was filed with the SEC on February 28, 2019 and is available at www.sec.gov or on our website at www.wsfsbank.com. All significant intercompany transactions were eliminated in consolidation. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2019 ASU No. 2016-02, Leases (Topic 842): In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for substantially all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. Adoption using the comparative modified retrospective transition approach is required; however, in July 2018, the FASB issued ASU 2018-11, Leases-Targeted Improvements , which provides an optional transition method whereby comparative periods presented in the financial statements in the period of adoption do not need to be restated under Topic 842. The Company adopted this guidance on January 1, 2019 using the transition option in ASU 2018-11 and the results of this adoption are recorded in the Consolidated Statements of Financial Condition. See Note 9 for additional disclosures resulting from our adoption of this standard. ASU No. 2019-01, Leases (Topic 842) : Codification Improvements: Subsequent to adopting ASU 2016-02, in March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842) : Codification Improvements , which makes targeted changes to lessor accounting and clarifies interim transition disclosure requirements upon adopting Topic 842. The guidance is effective for annual periods beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance on March 31, 2019. See Note 9 for additional disclosures resulting from our adoption of this standard. ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities: In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities . The new guidance requires the amortization period for certain non-contingent callable debt securities held at a premium to end at the earliest call date of the debt security. If the call option is not exercised at the earliest call date, the guidance requires the debt security's effective yield to be reset based on the contractual payment terms of the debt security. The guidance is effective in annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. Use of the modified retrospective method, with a cumulative-effect adjustment to retained earnings is required. The Company adopted this standard on January 1, 2019, on a modified retrospective basis and the adoption did not have an effect on the Consolidated Financial Statements. ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815): In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) . The new guidance changes both the designation and measurement guidance for qualifying hedging relationships and simplifies the presentation of hedge results. Specifically, the guidance eliminates the requirement to separately measure and report hedge ineffectiveness and also aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Further, the new guidance provides entities the ability to apply hedge accounting to additional hedging strategies as well as permits a one-time reclassification of eligible to be hedged instruments from held to maturity to available for sale upon adoption. The guidance is effective in annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Adoption using the modified retrospective approach is required for hedging relationships that exist as of the date of adoption; presentation and disclosure requirements are applied prospectively. The Company adopted this standard on January 1, 2019 on a modified retrospective basis for existing hedging relationships and on a prospective basis for presentation and disclosure requirements. The adoption of this standard did not have an effect on the Consolidated Financial Statements. See Note 15 for additional disclosures resulting from our adoption of this standard. ASU No. 2018-16 Derivatives and Hedging - Inclusion of the Secured Overnight Financial Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Topic 815): In October 2018, the FASB issued ASU No. 2018-16 Derivatives and Hedging - Inclusion of the Secured Overnight Financial Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Topic 815) . The new guidance applies to all entities that elect to apply hedge accounting to benchmark interest rate hedges under Topic 815. It permits the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes in addition to the existing applicable rates. The guidance is required to be adopted concurrently with ASU 2017-12, on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after adoption. The Company adopted this standard on January 1, 2019 on a prospective basis and the adoption did not have an effect on the Consolidated Financial Statements. Accounting Guidance Pending Adoption at June 30, 2019 |
BUSINESS COMBINATIONS Business
BUSINESS COMBINATIONS Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following table summarizes the consideration transferred and the fair values of the identifiable assets acquired and liabilities assumed: (Dollars in thousands) Fair Value Consideration Transferred: Common shares issued (21,816,355) $ 949,968 Cash paid to Beneficial stock and option holders 228,239 Value of consideration 1,178,207 Assets acquired: Cash and due from banks 304,311 Investment securities 619,880 Loans and leases, net 3,711,246 Premises and equipment 69,873 Deferred income taxes 18,739 Bank owned life insurance 82,510 Core deposit intangible 85,053 Servicing rights intangible 2,466 Other assets 135,895 Total assets 5,029,973 Liabilities assumed: Deposits 4,056,506 Other liabilities 102,965 Total liabilities 4,159,471 Net assets acquired: 870,502 Goodwill resulting from acquisition of Beneficial $ 307,705 |
Schedule of Changes to Goodwill Subsequent to Acquisition | The following table details the change to goodwill recorded subsequent to acquisition: (Dollars in thousands) Fair Value Goodwill resulting from the acquisition of Beneficial reported as of March 31, 2019 $ 309,486 Effects of adjustments to: Cash and due from banks 246 Investment securities (3,177 ) Loans 911 Premises and equipment (741 ) Deferred income taxes 731 Other assets (420 ) Deposits 790 Other liabilities (121 ) Adjusted goodwill resulting from the acquisition of Beneficial as of June 30, 2019 $ 307,705 |
NONINTEREST INCOME (Tables)
NONINTEREST INCOME (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Bailment fees $ 6,908 $ 6,588 $ 13,807 $ 12,681 Interchange fees 6,452 3,847 10,839 7,307 Other card and ATM fees 317 274 546 526 Total credit/debit card and ATM income $ 13,677 $ 10,709 $ 25,192 $ 20,514 |
Schedule of Investment Management and Fiduciary Income | The following table presents the components of investment management and fiduciary income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Trust fees $ 6,685 $ 6,118 $ 13,250 $ 11,366 Wealth management and advisory fees 3,697 4,126 7,279 8,067 Total investment management and fiduciary income $ 10,382 $ 10,244 $ 20,529 $ 19,433 |
Schedule of Deposit Service Charges | The following table presents the components of deposit service charges: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Service fees $ 3,179 $ 2,634 $ 5,895 $ 5,214 Return and overdraft fees 2,696 1,893 4,544 3,777 Other deposit service fees 228 137 410 303 Total deposit service charges $ 6,103 $ 4,664 $ 10,849 $ 9,294 |
Schedule of Other Income | The following table presents the components of other income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Managed service fees $ 3,624 $ 3,105 $ 6,566 $ 5,931 Currency preparation 851 818 1,590 1,543 ATM insurance 652 605 1,280 1,195 Miscellaneous products and services 2,607 2,583 6,005 4,350 Total other income $ 7,734 $ 7,111 $ 15,441 $ 13,019 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, (Dollars and shares in thousands, except per share data) 2019 2018 2019 2018 Numerator: Net income attributable to WSFS $ 36,200 $ 28,740 $ 49,223 $ 66,090 Denominator: Weighted average basic shares 53,253 31,567 46,103 31,497 Dilutive potential common shares 263 697 335 729 Weighted average fully diluted shares $ 53,516 $ 32,264 $ 46,438 $ 32,226 Earnings per share: Basic $ 0.68 $ 0.91 $ 1.07 $ 2.10 Diluted $ 0.68 $ 0.89 $ 1.06 $ 2.05 Outstanding common stock equivalents having no dilutive effect 1 11 1 23 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities | The following tables detail the amortized cost and the estimated fair value of our investments in available-for-sale and held-to-maturity debt securities as well as our equity investments. None of our investments in debt securities are classified as trading. June 30, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Available-for-Sale Debt Securities CMO $ 367,289 $ 5,455 $ 509 $ 372,235 FNMA MBS 1,034,233 19,091 929 1,052,395 FHLMC MBS 330,609 6,219 245 336,583 GNMA MBS 35,471 378 192 35,657 $ 1,767,602 $ 31,143 $ 1,875 $ 1,796,870 Held-to-Maturity Debt Securities (1) State and political subdivisions $ 141,315 $ 2,552 $ 6 $ 143,861 Foreign bonds $ 2,002 $ 4 $ — $ 2,006 $ 143,317 $ 2,556 $ 6 $ 145,867 Equity Investments (2) Visa Class B shares $ 15,716 $ 24,221 $ — $ 39,937 Other equity investments 8,149 625 — 8,774 $ 23,865 $ 24,846 $ — $ 48,711 (1) Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $0.8 million at June 30, 2019 , related to securities transferred, which are offset in Accumulated other comprehensive income, net of tax. (2) Equity investments are included in Other investments in the unaudited Consolidated Statements of Financial Condition. December 31, 2018 (Dollars in thousands) Amortized Cost Gross Gross Fair Available-for-Sale Debt Securities CMO $ 376,867 $ 1,721 $ 6,838 $ 371,750 FNMA MBS 655,485 1,526 12,938 644,073 FHLMC MBS 155,758 558 2,394 153,922 GNMA MBS 36,117 97 880 35,334 $ 1,224,227 $ 3,902 $ 23,050 $ 1,205,079 Held-to-Maturity Debt Securities (1) State and political subdivisions $ 149,950 $ 275 $ 794 $ 149,431 Equity Investments (2) Visa Class B shares $ 13,918 $ 20,015 $ — $ 33,933 Other equity investments 3,300 — — 3,300 $ 17,218 $ 20,015 $ — $ 37,233 (1) Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $1.0 million at December 31, 2018 , related to securities transferred, which are offset in Accumulated other comprehensive loss, net of tax. (2) Equity investments are included in Other investments in the unaudited Consolidated Statements of Financial Condition. |
Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of our available-for-sale debt securities at June 30, 2019 and December 31, 2018 are presented in the table below: Available for Sale Amortized Fair (Dollars in thousands) Cost Value June 30, 2019 (1) Within one year $ — $ — After one year but within five years 19,457 19,519 After five years but within ten years 155,351 156,432 After ten years 1,592,794 1,620,919 $ 1,767,602 $ 1,796,870 December 31, 2018 (1) Within one year $ — $ — After one year but within five years 19,714 19,423 After five years but within ten years 170,118 163,731 After ten years 1,034,395 1,021,925 $ 1,224,227 $ 1,205,079 (1) Actual maturities could differ from contractual maturities. The scheduled maturities of our held-to-maturity debt securities at June 30, 2019 and December 31, 2018 are presented in the table below: Held to Maturity Amortized Fair (Dollars in thousands) Cost Value June 30, 2019 (1) Within one year $ 2,626 $ 2,630 After one year but within five years 7,423 7,458 After five years but within ten years 30,228 30,703 After ten years 103,040 105,076 $ 143,317 $ 145,867 December 31, 2018 (1) Within one year $ 1,018 $ 1,016 After one year but within five years 6,703 6,701 After five years but within ten years 29,613 29,547 After ten years 112,616 112,167 $ 149,950 $ 149,431 (1) Actual maturities could differ from contractual maturities. |
Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category | For debt securities with unrealized losses, the table below shows our 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 June 30, 2019 . 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 $ — $ — $ 59,051 $ 509 $ 59,051 $ 509 FNMA MBS 31,377 43 105,513 886 136,890 929 FHLMC MBS 18,188 89 18,581 156 36,769 245 GNMA MBS — — 14,452 192 14,452 192 Total temporarily impaired investments $ 49,565 $ 132 $ 197,597 $ 1,743 $ 247,162 $ 1,875 Held-to-maturity debt securities: State and political subdivisions $ — $ — $ 4,105 $ 6 $ 4,105 $ 6 Total temporarily impaired investments $ — $ — $ 4,105 $ 6 $ 4,105 $ 6 For debt securities with unrealized losses, the table below shows our 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, 2018 . 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 $ 17,143 $ 40 $ 212,208 $ 6,798 $ 229,351 $ 6,838 FNMA MBS 34,214 162 407,638 12,776 441,852 12,938 FHLMC MBS 16,025 21 76,469 2,373 92,494 2,394 GNMA MBS 5,837 79 21,805 801 27,642 880 Total temporarily impaired investments $ 73,219 $ 302 $ 718,120 $ 22,748 $ 791,339 $ 23,050 Held-to-maturity debt securities: State and political subdivisions $ 91,228 $ 155 $ 58,203 $ 639 $ 149,431 $ 794 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Loan Portfolio by Category | The following table shows our loan and lease portfolio by category: (Dollars in thousands) June 30, 2019 December 31, 2018 Commercial and industrial $ 2,184,487 $ 1,472,489 Owner-occupied commercial 1,280,894 1,059,974 Commercial mortgages 2,246,047 1,162,739 Construction 541,696 316,566 Commercial small business leases 156,037 — Residential (1) 1,081,734 218,099 Consumer 1,126,733 680,939 8,617,628 4,910,806 Less: Deferred fees, net 4,555 7,348 Allowance for loan and lease losses 45,364 39,539 Net loans and leases $ 8,567,709 $ 4,863,919 (1) Includes reverse mortgages at fair value of $15.9 million at June 30, 2019 and $16.5 million at December 31, 2018 . |
Schedule of Loans Acquired | The following table details the loans acquired from Beneficial that are accounted for in accordance with ASC 310-30, as of the date of the acquisition. (Dollars in thousands) March 1, 2019 Contractual required principal and interest at acquisition $ 53,647 Contractual cash flows not expected to be collected (nonaccretable difference) 20,118 Expected cash flows at acquisition 33,529 Interest component of expected cash flows (accretable yield) 3,068 Fair value of acquired loans accounted for under ASC 310-30 30,461 |
Schedule of Outstanding Principal Balance and Carrying Amounts for Acquired Credit-Impaired Loans | The following table shows the outstanding principal balance and carrying amounts for acquired credit impaired loans for which the Company applies ASC 310-30 as of the dates indicated: (Dollars in thousands) June 30, 2019 December 31, 2018 Outstanding principal balance $ 48,124 $ 18,642 Carrying amount 33,752 14,718 Allowance for loan losses 179 227 |
Summary of Changes in Accretable Yield on Acquired Credit Impaired Loans | The following table presents the changes in accretable yield on the acquired credit impaired loans for the three and six months ended June 30, 2019 and 2018. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Balance at beginning of period $ 4,955 $ 2,440 $ 2,463 $ 3,035 Addition from Beneficial — — 3,068 — Accretion (662 ) (501 ) (1,074 ) (918 ) Reclassification from nonaccretable difference 207 1,076 207 1,078 Additions/adjustments (445 ) (90 ) (609 ) (270 ) Balance at end of period $ 4,055 $ 2,925 $ 4,055 $ 2,925 |
ALLOWANCE FOR LOAN AND LEASE _2
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Allowance for Loan Losses and Loan Balances | The following tables provide the activity of our allowance for loan losses and loan balances for the three and six months ended June 30, 2019 : (Dollars in thousands) Commercial and Industrial (1) Owner-occupied Commercial Commercial Mortgages Construction Residential (2) Consumer Total Three months ended June 30, 2019 Allowance for loan losses Beginning balance $ 21,016 $ 4,949 $ 6,679 $ 4,044 $ 1,401 $ 8,232 $ 46,321 Charge-offs (13,002 ) (8 ) (153 ) (42 ) (163 ) (960 ) (14,328 ) Recoveries 203 78 398 1 (2 ) 498 1,176 Provision (credit) 13,568 (526 ) (474 ) (1,013 ) 24 72 11,651 Provision (credit) for acquired loans 219 (13 ) 94 (6 ) 98 152 544 Ending balance $ 22,004 $ 4,480 $ 6,544 $ 2,984 $ 1,358 $ 7,994 $ 45,364 Six months ended June 30, 2019 Allowance for loan losses Beginning balance $ 14,211 $ 5,057 $ 6,806 $ 3,712 $ 1,428 $ 8,325 $ 39,539 Charge-offs (13,744 ) (8 ) (155 ) (42 ) (285 ) (1,644 ) (15,878 ) Recoveries 561 81 427 2 (16 ) 799 1,854 Provision (credit) 20,691 (637 ) (630 ) (682 ) 75 329 19,146 Provision (credit) for acquired loans 285 (13 ) 96 (6 ) 156 185 703 Ending balance $ 22,004 $ 4,480 $ 6,544 $ 2,984 $ 1,358 $ 7,994 $ 45,364 Period-end allowance allocated to: Loans individually evaluated for impairment $ 4,324 $ — $ — $ — $ 488 $ 183 $ 4,995 Loans collectively evaluated for impairment 17,679 4,401 6,496 2,976 828 7,810 40,190 Acquired loans evaluated for impairment 1 79 48 8 42 1 179 Ending balance $ 22,004 $ 4,480 $ 6,544 $ 2,984 $ 1,358 $ 7,994 $ 45,364 Period-end loan balances: Loans individually evaluated for impairment (3) $ 21,171 $ 8,753 $ 2,431 $ — $ 11,398 $ 7,383 $ 51,136 Loans collectively evaluated for impairment 1,575,810 1,168,864 765,268 324,307 134,235 848,396 4,816,880 Acquired nonimpaired loans 738,579 99,326 1,464,739 216,843 912,288 267,955 3,699,730 Acquired impaired loans 4,964 3,951 13,609 546 7,863 2,999 33,932 Ending balance (4) $ 2,340,524 $ 1,280,894 $ 2,246,047 $ 541,696 $ 1,065,784 $ 1,126,733 $ 8,601,678 (1) Includes commercial small business leases. (2) Period-end loan balance excludes reverse mortgages at fair value of $15.9 million . (3) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.2 million for the period ending June 30, 2019 . Accruing troubled debt restructured loans are considered impaired loans. (4) Ending loan balances do not include net deferred fees. The following table provides the activity of the allowance for loan losses and loan balances for the three and six months ended June 30, 2018 : (Dollars in thousands) Commercial and Industrial Owner - occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Total Three months ended June 30, 2018 Allowance for loan losses Beginning balance $ 16,102 $ 5,359 $ 6,617 $ 2,864 $ 1,680 $ 8,188 $ 40,810 Charge-offs (1,740 ) (341 ) — — (54 ) (828 ) (2,963 ) Recoveries 359 7 3 1 75 247 692 Provision (credit) 1,133 204 337 422 (182 ) 537 2,451 Provision for acquired loans (12 ) 55 (6 ) 2 — 8 47 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Six months ended June 30, 2018 Allowance for loan losses Beginning balance $ 16,732 $ 5,422 $ 5,891 $ 2,861 $ 1,798 $ 7,895 $ 40,599 Charge-offs (5,100 ) (351 ) (48 ) — (54 ) (1,291 ) (6,844 ) Recoveries 439 12 137 1 91 454 1,134 Provision (credit) 3,783 146 954 450 (313 ) 1,086 6,106 Provision for acquired loans (12 ) 55 17 (23 ) (3 ) 8 42 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Period-end allowance allocated to: Loans individually evaluated for impairment $ 2,208 $ — $ 63 $ 593 $ 592 $ 175 $ 3,631 Loans collectively evaluated for impairment 13,472 5,266 6,804 2,687 891 7,960 37,080 Acquired loans evaluated for impairment 162 18 84 9 36 17 326 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Period-end loan balances: Loans individually evaluated for impairment (2) $ 17,015 $ 3,224 $ 6,737 $ 5,557 $ 12,282 $ 7,714 $ 52,529 Loans collectively evaluated for impairment 1,404,662 952,627 972,684 283,480 134,323 581,536 4,329,312 Acquired nonimpaired loans 101,532 125,129 172,082 7,352 65,723 29,239 501,057 Acquired impaired loans 2,904 4,915 9,151 731 771 251 18,723 Ending balance (3) $ 1,526,113 $ 1,085,895 $ 1,160,654 $ 297,120 $ 213,099 $ 618,740 $ 4,901,621 (1) Period-end loan balance excludes reverse mortgages at fair value of $16.1 million . (2) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $16.3 million for the period ending June 30, 2018 . Accruing troubled debt restructured loans are considered impaired loans. (3) Ending loan balances do not include net deferred fees. |
Summary of Nonaccrual and Past Due Loans | The following tables show our nonaccrual and past due loans at the dates indicated: June 30, 2019 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Than 90 Days Past Due and Still Accruing Total Past Due And Still Accruing Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial and industrial (1) $ 3,894 $ 682 $ — $ 4,576 $ 2,309,943 $ 4,964 $ 21,041 $ 2,340,524 Owner-occupied commercial 4,105 398 1,165 5,668 1,262,522 3,951 8,753 1,280,894 Commercial mortgages 4,499 201 — 4,700 2,225,436 13,609 2,302 2,246,047 Construction 249 — — 249 540,901 546 — 541,696 Residential (2) 6,022 6 115 6,143 1,047,891 7,863 3,887 1,065,784 Consumer (3) 6,693 3,811 14,387 24,891 1,097,190 2,999 1,653 1,126,733 Total (4) $ 25,462 $ 5,098 $ 15,667 $ 46,227 $ 8,483,883 $ 33,932 $ 37,636 $ 8,601,678 % of Total Loans 0.30 % 0.06 % 0.18 % 0.54 % 98.63 % 0.39 % 0.44 % 100 % (1) Includes commercial small business leases. (2) Residential accruing current balances excludes reverse mortgages at fair value of $15.9 million . (3) Includes $22.3 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss. (4) The balances above include a total of $3.7 billion acquired non-impaired loans. December 31, 2018 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Total Past Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial and industrial $ 3,653 $ 993 $ 71 $ 4,717 $ 1,452,185 $ 1,531 $ 14,056 $ 1,472,489 Owner-occupied commercial 733 865 — 1,598 1,049,722 4,248 4,406 1,059,974 Commercial mortgages 1,388 908 — 2,296 1,148,988 7,504 3,951 1,162,739 Construction 157 — — 157 312,879 749 2,781 316,566 Residential (1) 1,970 345 660 2,975 194,960 761 2,854 201,550 Consumer 525 971 104 1,600 677,182 151 2,006 680,939 Total (2) $ 8,426 $ 4,082 $ 835 $ 13,343 $ 4,835,916 $ 14,944 $ 30,054 $ 4,894,257 % of Total Loans 0.17 % 0.08 % 0.02 % 0.27 % 98.81 % 0.31 % 0.61 % 100 % (1) Residential accruing current balances excludes reverse mortgages, at fair value of $16.5 million . (2) The balances above include a total of $430.0 million |
Analysis of Impaired Loans | The following tables provide an analysis of our impaired loans at June 30, 2019 and December 31, 2018 : June 30, 2019 (Dollars in thousands) Ending Loan Balances Loans with No Related Reserve (1) Loans with Related Reserve (2) Related Reserve Contractual Principal Balances (2) Average Loan Balances Commercial and industrial $ 21,173 $ 8,227 $ 12,946 $ 4,324 $ 25,425 $ 18,055 Owner-occupied commercial 10,134 8,753 1,381 79 10,430 6,522 Commercial mortgages 3,755 2,431 1,324 48 8,047 6,300 Construction 546 — 546 8 638 3,285 Residential 11,610 7,733 3,877 530 13,722 11,602 Consumer 7,414 6,009 1,405 185 8,161 7,932 Total $ 54,632 $ 33,153 $ 21,479 $ 5,174 $ 66,423 $ 53,696 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $3.5 million in the ending loan balance and $3.8 million in the contractual principal balance. December 31, 2018 (Dollars in thousands) Ending Loan Balances Loans with No Related (1) Loans with Related Reserve (2) Related Reserve Contractual Principal Balances (2) Average Loan Balances Commercial and industrial $ 14,841 $ 8,625 $ 6,216 $ 878 $ 22,365 $ 18,484 Owner-occupied commercial 6,065 4,406 1,659 92 6,337 5,378 Commercial mortgages 5,679 4,083 1,596 79 15,372 7,438 Construction 3,530 — 3,530 458 5,082 5,091 Residential 11,321 6,442 4,879 581 13,771 12,589 Consumer 7,916 6,899 1,017 170 8,573 7,956 Total $ 49,352 $ 30,455 $ 18,897 $ 2,258 $ 71,500 $ 56,936 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $4.3 million in the ending loan balance and $4.8 million in the contractual principal balance. |
Schedule of Commercial Credit Exposure | The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss. Commercial Credit Exposure June 30, 2019 Commercial and Industrial (1) Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (2) (Dollars in thousands) Amount % Risk Rating: Special mention $ 4,000 $ 10,817 $ 7,352 $ — $ 22,169 Substandard: Accrual 51,980 18,969 10,910 497 82,356 Nonaccrual 16,717 8,753 2,302 — 27,772 Doubtful 4,324 — — — 4,324 Total Special Mention and Substandard 77,021 38,539 20,564 497 136,621 2 % Acquired impaired 4,964 3,951 13,609 546 23,070 — % Pass 2,258,539 1,238,404 2,211,874 540,653 6,249,470 98 % Total $ 2,340,524 $ 1,280,894 $ 2,246,047 $ 541,696 $ 6,409,161 100 % (1) Includes commercial small business leases. (2) Table includes $2.5 billion of acquired non-impaired loans as of June 30, 2019 . December 31, 2018 Commercial and Industrial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) (Dollars in thousands) Amount % Risk Rating: Special mention $ 8,710 $ 21,230 $ — $ — $ 29,940 Substandard: Accrual 37,424 21,081 9,767 168 68,440 Nonaccrual 13,180 4,406 3,951 2,337 23,874 Doubtful 876 — — 444 1,320 Total Special Mention and Substandard 60,190 46,717 13,718 2,949 123,574 3 % Acquired impaired 1,531 4,248 7,504 749 14,032 — % Pass 1,410,768 1,009,009 1,141,517 312,868 3,874,162 97 % Total $ 1,472,489 $ 1,059,974 $ 1,162,739 $ 316,566 $ 4,011,768 100 % (1) Table includes $350.5 million of acquired non-impaired loans as of December 31, 2018 . |
Schedule of Consumer Credit Exposure | Residential and Consumer Credit Exposure Residential (2) Consumer Total Residential and Consumer (3) June 30, December 31, June 30, December 31, June 30, 2019 December 31, 2018 (Dollars in thousands) 2019 2018 2019 2018 Amount Percent Amount Percent Nonperforming (1) $ 12,106 $ 11,017 $ 7,378 $ 7,883 $ 19,484 1 % $ 18,900 2 % Acquired impaired loans 7,863 761 2,999 151 10,862 — % 912 — % Performing 1,045,815 189,772 1,116,356 672,905 2,162,171 99 % 862,677 98 % Total $ 1,065,784 $ 201,550 $ 1,126,733 $ 680,939 $ 2,192,517 100 % $ 882,489 100 % (1) Includes $13.9 million as of June 30, 2019 and $14.0 million as of December 31, 2018 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest. (2) Residential performing loans excludes $15.9 million and $16.5 million of reverse mortgages at fair value as of June 30, 2019 and December 31, 2018 , respectively. (3) Total includes $1.2 billion and $79.5 million in acquired non-impaired loans as of June 30, 2019 and December 31, 2018 , respectively. |
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated | The following table presents the balance of TDRs as of the indicated dates: (Dollars in thousands) June 30, 2019 December 31, 2018 Performing TDRs $ 14,203 $ 14,953 Nonperforming TDRs 6,966 10,211 Total TDRs $ 21,169 $ 25,164 The following table presents information regarding the types of loan modifications made for the three and six months ended June 30, 2019 and 2018 : Three months ended June 30, 2019 Six months ended June 30, 2019 Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Commercial and Industrial — 1 — 2 3 — 1 — 2 3 Owner-occupied commercial — — — 2 2 — — — 2 2 Commercial Mortgages — — — 1 1 1 — — 1 2 Construction — — — — — — — — — — Residential 3 — — — 3 4 — 1 — 5 Consumer 3 1 — — 4 6 1 1 — 8 Total 6 2 — 5 13 11 2 2 5 20 Three months ended June 30, 2018 Six months ended June 30, 2018 Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other(1) Total Commercial and Industrial 3 — — — 3 3 — — — 3 Owner-occupied commercial — — — — — — — — — — Commercial Mortgages 1 — — — 1 1 1 — — 2 Construction — — — — — — 1 — — 1 Residential 4 — — — 4 4 — — — 4 Consumer 6 — 3 — 9 7 1 3 2 13 Total 14 — 3 — 17 15 3 3 2 23 (1) Other includes underwriting exceptions. The following table presents loans identified as TDRs during the three and six months ended June 30, 2019 and 2018 . Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Pre Modification Post Modification Pre Modification Post Modification Pre Modification Post Modification Pre Modification Post Modification Commercial $ 1,347 $ 1,347 $ 4,782 $ 4,782 $ 1,347 $ 1,347 $ 4,782 $ 4,782 Owner-occupied commercial 1,435 1,435 — — 1,435 1,435 — — Commercial mortgages 483 483 1,564 1,564 514 514 2,022 2,022 Construction — — — — — — 920 920 Residential 321 321 469 469 423 423 469 469 Consumer 540 540 861 861 1,408 1,408 1,123 1,123 Total $ 4,126 $ 4,126 $ 7,676 $ 7,676 $ 5,127 $ 5,127 $ 9,316 $ 9,316 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The minimum cash payments for operating leases under ASC 840, Leases were as follows: (Dollars in thousands) December 31, 2018 2019 $ 11,562 2020 11,411 2021 11,132 2022 11,078 2023 11,141 After 2023 169,929 Total minimum lease payments $ 226,253 Supplemental cash flow information related to leases was as follows: Six months ended (Dollars in thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,941 Right of use assets obtained in exchange for new operating lease liabilities (non-cash) 61,693 The components of operating lease cost were as follows: Three months ended Six months ended (Dollars in thousands) June 30, 2019 June 30, 2019 Operating lease cost (1) (2) $ 11,024 $ 16,748 Sublease income (175 ) (276 ) Net lease cost $ 10,849 $ 16,472 (1) Includes variable lease cost and short-term lease cost. (2) Includes accelerated expense due to the previously announced retail branch optimization plan. |
Balance Sheet Information | Supplemental balance sheet information related to operating leases was as follows: (Dollars in thousands) June 30, 2019 Assets Operating right of use assets $ 172,458 Total assets $ 172,458 Liabilities Operating lease liabilities $ 186,186 Total liabilities $ 186,186 Lease term and discount rate June 30, 2019 Weighted average remaining lease term (in years) Operating leases 19.79 Weighted average discount rate Operating leases 4.27 % |
Lease Maturity | Maturities of operating lease liabilities under ASC 842, Leases (as adopted on January 1, 2019) were as follows: (Dollars in thousands) June 30, 2019 2019 $ 14,479 2020 16,948 2021 16,605 2022 16,557 2023 16,717 After 2023 212,429 Total lease payments 293,735 Less: Interest (107,549 ) Present value of lease liabilities $ 186,186 |
Maturities of Operating Lease Liabilities Under ASC 840 | The minimum cash payments for operating leases under ASC 840, Leases were as follows: (Dollars in thousands) December 31, 2018 2019 $ 11,562 2020 11,411 2021 11,132 2022 11,078 2023 11,141 After 2023 169,929 Total minimum lease payments $ 226,253 |
Direct Financing Lease | The components of direct finance lease income are summarized in the table below: Three months ended Six months ended (Dollars in thousands) June 30, 2019 June 30, 2019 Direct financing leases: Interest income on lease receivable $ 3,109 $ 3,778 Interest income on deferred fees and costs 206 263 Total direct financing lease income $ 3,315 $ 4,041 Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows: (Dollars in thousands) June 30, 2019 Lease receivables $ 176,497 Unearned income (20,321 ) Deferred fees and costs 562 Net investment in direct financing leases $ 156,738 |
Lessor, Operating Lease, Payments to be Received, Maturity | At June 30, 2019 , future minimum lease payments to be received for direct financing leases were as follows: (Dollars in thousands) Direct financing leases 2019 $ 31,405 2020 54,378 2021 41,351 2022 27,301 2023 16,245 After 2023 5,817 Total lease payments $ 176,497 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 our reportable operating segments for purposes of goodwill impairment testing: (Dollars in thousands) WSFS Bank Cash Connect Wealth Management Consolidated Company December 31, 2018 $ 145,808 $ — $ 20,199 $ 166,007 Goodwill from business combinations 309,486 — — 309,486 Remeasurement adjustments (1,781 ) — — (1,781 ) June 30, 2019 $ 453,513 $ — $ 20,199 $ 473,712 |
Summary of Other Intangible Assets | The following table summarizes our intangible assets: (Dollars in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Amortization Period June 30, 2019 Core deposits $ 95,711 $ (8,603 ) $ 87,108 10 years Customer relationships 17,561 (6,615 ) 10,946 7-15 years Non-compete agreements 221 (124 ) 97 5 years Loan servicing rights 5,219 (1,386 ) 3,833 10-30 years Total intangible assets $ 118,712 $ (16,728 ) $ 101,984 December 31, 2018 Core deposits $ 10,658 $ (5,285 ) $ 5,373 10 years Customer relationships 17,561 (5,815 ) 11,746 7-15 years Non-compete agreements 221 (101 ) 120 5 years Loan servicing rights 2,652 (1,301 ) 1,351 10-30 years Favorable lease asset (1) 1,932 (506 ) 1,426 10 months-18 years Total intangible assets $ 33,024 $ (13,008 ) $ 20,016 (1) The favorable lease asset was fully amortized and written off during the six months ended June 30, 2019 as a result of our adoption of ASU 2016-02 on January 1, 2019. See Note 2 |
Schedule of Estimated Amortization Expense of Intangibles | The following table presents the estimated future amortization expense on our intangible assets: (Dollars in thousands) Amortization of Intangibles Remaining in 2019 $ 5,644 2020 11,105 2021 10,780 2022 10,717 2023 10,689 Thereafter 53,049 Total $ 101,984 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Deposits By Category | The following table shows our deposits by category: (Dollars in thousands) June 30, 2019 December 31, 2018 Noninterest-bearing: Noninterest demand $ 2,205,992 $ 1,626,252 Total noninterest-bearing $ 2,205,992 $ 1,626,252 Interest-bearing: Interest-bearing demand $ 2,039,545 $ 1,062,228 Savings 1,600,879 538,213 Money market 1,987,485 1,542,962 Customer time deposits 1,437,650 672,942 Brokered deposits 323,159 197,834 Total interest-bearing 7,388,718 4,014,179 Total deposits $ 9,594,710 $ 5,640,431 |
ASSOCIATE BENEFIT PLANS (Tables
ASSOCIATE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Postemployment Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost Components of Postretirement Benefits | The following table presents the components of net periodic benefit cost related to the Beneficial pension benefits and other postretirement benefit plans. Three months ended June 30, 2019 Six months ended June 30, 2019 Three months ended June 30, 2019 Six months ended June 30, 2019 (Dollars in thousands) Pension Benefits Other Postretirement Benefits Service cost $ — $ — $ 23 $ 30 Interest cost 857 1,142 177 236 Expected return on plan assets (1,442 ) (1,923 ) — — Prior service cost amortization — — — — Net gain recognition — — — — Net periodic benefit cost $ (585 ) $ (781 ) $ 200 $ 266 The following table presents the components of net periodic benefit cost related to the Alliance Associate Pension Plan measured at January 1, 2019 and 2018. Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Service cost $ 10 $ 10 $ 20 $ 20 Interest cost 69 74 138 147 Expected return on plan assets (148 ) (137 ) (295 ) (272 ) Prior service cost amortization — — — — Net gain recognition — — — — Net periodic benefit cost $ (69 ) $ (53 ) $ (137 ) $ (105 ) The following table presents the components of net periodic benefit cost related to our postretirement medical benefits plan measured at January 1, 2019 and 2018. Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2019 2018 2019 2018 Service cost $ 14 $ 15 $ 27 $ 30 Interest cost 19 18 38 35 Prior service cost amortization (19 ) (19 ) (38 ) (38 ) Net gain recognition (16 ) (12 ) (31 ) (23 ) Net periodic benefit cost $ (2 ) $ 2 $ (4 ) $ 4 |
FAIR VALUE DISCLOSURES OF FIN_2
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Carried at Fair Value | The following tables present financial instruments carried at fair value as of June 30, 2019 and December 31, 2018 by level in the valuation hierarchy (as described above): June 30, 2019 (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 $ — $ 372,235 $ — $ 372,235 FNMA MBS — 1,052,395 — 1,052,395 FHLMC MBS — 336,583 — 336,583 GNMA MBS — 35,657 — 35,657 Other assets — 4,995 — 4,995 Total assets measured at fair value on a recurring basis $ — $ 1,801,865 $ — $ 1,801,865 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 4,562 $ — $ 4,562 Assets measured at fair value on a nonrecurring basis: Other investments $ — $ — $ 48,711 $ 48,711 Other real estate owned — — 3,703 3,703 Loans held for sale — 51,721 — 51,721 Impaired loans, net — — 49,458 49,458 Total assets measured at fair value on a nonrecurring basis $ — $ 51,721 $ 101,872 $ 153,593 December 31, 2018 (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 $ — $ 371,750 $ — $ 371,750 FNMA MBS — 644,073 — 644,073 FHLMC MBS — 153,922 — 153,922 GNMA MBS — 35,334 — 35,334 Other assets — 2,098 — 2,098 Total assets measured at fair value on a recurring basis $ — $ 1,207,177 $ — $ 1,207,177 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 3,493 $ — $ 3,493 Assets measured at fair value on a nonrecurring basis Other investments — — 37,233 37,233 Other real estate owned — — 2,668 2,668 Loans held for sale — 25,318 — 25,318 Impaired loans, net — — 47,094 47,094 Total assets measured at fair value on a nonrecurring basis $ — $ 25,318 $ 86,995 $ 112,313 |
Book Value and Estimated Fair Value of Financial Instruments | The book value and estimated fair value of our financial instruments are as follows: June 30, 2019 December 31, 2018 (Dollars in thousands) Fair Value Measurement Book Value Fair Value Book Value Fair Value Financial assets: Cash and cash equivalents Level 1 $ 521,825 $ 521,825 $ 620,757 $ 620,757 Investment securities available for sale See previous table 1,796,870 1,796,870 1,205,079 1,205,079 Investment securities held to maturity Level 2 143,317 145,867 149,950 149,431 Other investments Level 3 48,711 48,711 37,233 37,233 Loans, held for sale Level 2 51,721 51,721 25,318 25,318 Loans, net (1)(2) Level 3 8,518,251 8,739,014 4,816,825 4,772,377 Impaired loans, net Level 3 49,458 49,458 47,094 47,094 Stock in FHLB of Pittsburgh Level 2 15,874 15,874 19,259 19,259 Accrued interest receivable Level 2 40,784 40,784 22,001 22,001 Other assets Level 2 4,995 4,995 2,098 2,098 Financial liabilities: Deposits Level 2 9,594,710 9,680,779 5,640,431 5,597,227 Borrowed funds Level 2 415,131 415,155 699,788 694,526 Standby letters of credit Level 3 407 407 495 495 Accrued interest payable Level 2 7,064 7,064 1,900 1,900 Other liabilities Level 2 4,562 4,579 3,493 3,493 (1) Excludes impaired loans, net. (2) Includes reverse mortgage loans. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | The table below presents the fair value of our derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of June 30, 2019 . Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Derivatives (Fair Value) Derivatives designated as hedging instruments: Interest rate products 3 $ 75,000 Other Liabilities $ (1,075 ) Total $ 75,000 $ (1,075 ) Derivatives not designated as hedging instruments: Interest rate products $ 80,996 Other Assets $ 3,043 Interest rate products 80,996 Other Liabilities (3,247 ) Risk participation agreements 5,455 Other Liabilities (7 ) Interest rate lock commitments with customers 108,345 Other Assets 1,727 Interest rate lock commitments with customers 5,693 Other Liabilities (13 ) Forward sale commitments 47,607 Other Assets 225 Forward sale commitments 65,116 Other Liabilities (220 ) Total $ 394,208 $ 1,508 Total derivatives $ 469,208 $ 433 The table below presents the fair value of our derivative financial instruments as well as their location on the Consolidated Statements of Financial Condition as of December 31, 2018 . Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Derivatives (Fair Value) Derivatives designated as hedging instruments: Interest rate products 3 $ 75,000 Other Liabilities $ (3,308 ) Total $ 75,000 $ (3,308 ) Derivatives not designated as hedging instruments: Interest rate lock commitments with customers $ 40,795 Other Assets $ 686 Interest rate lock commitments with customers 6,530 Other Liabilities (24 ) Forward sale commitments 19,732 Other Assets 143 Forward sale commitments 25,876 Other Liabilities (161 ) Total $ 92,933 $ 644 Total derivatives $ 167,933 $ (2,664 ) |
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 and six months ended June 30, 2019 and June 30, 2018 . Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) Location of (Loss) or Gain Reclassified from Accumulated OCI into Income (Effective Portion) (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2019 2018 2019 2018 Interest Rate Products $ (1,007 ) $ (246 ) $ (1,637 ) $ (1,010 ) Interest income Total $ (1,007 ) $ (246 ) $ (1,637 ) $ (1,010 ) Amount of Gain or (Loss) Recognized in Income Amount of Gain or (Loss) Recognized in Income Location of Gain or (Loss) Recognized in Income (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Derivatives Not Designated as a Hedging Instrument 2019 2018 2019 2018 Interest Rate Lock Commitments $ 542 $ 96 $ 1,174 $ (296 ) Mortgage banking activities, net Forward Sale Commitments (487 ) $ 60 (721 ) $ (332 ) Mortgage banking activities, net Total $ 55 $ 156 $ 453 $ (628 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Details of Segment Information | The following tables show segment results for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (Dollars in thousands) WSFS Bank Cash ® Wealth Management Total WSFS Bank Cash ® Wealth Total Statements of Income External customer revenues: Interest income $ 140,231 $ — $ 2,672 $ 142,903 $ 69,599 $ — $ 2,552 $ 72,151 Noninterest income 18,870 13,355 10,646 42,871 12,045 12,328 10,614 34,987 Total external customer revenues 159,101 13,355 13,318 185,774 81,644 12,328 13,166 107,138 Inter-segment revenues: Interest income 3,345 — 4,052 7,397 3,565 — 2,670 6,235 Noninterest income 2,156 192 211 2,559 2,219 200 37 2,456 Total inter-segment revenues 5,501 192 4,263 9,956 5,784 200 2,707 8,691 Total revenue 164,602 13,547 17,581 195,730 87,428 12,528 15,873 115,829 External customer expenses: Interest expense 18,282 — 1,389 19,671 10,599 — 563 11,162 Noninterest expenses 91,415 8,893 7,540 107,848 42,505 7,905 7,421 57,831 Provision for loan losses 12,239 — (44 ) 12,195 2,284 — 214 2,498 Total external customer expenses 121,936 8,893 8,885 139,714 55,388 7,905 8,198 71,491 Inter-segment expenses: Interest expense 4,052 2,203 1,142 7,397 2,670 2,516 1,049 6,235 Noninterest expenses 403 698 1,458 2,559 237 637 1,582 2,456 Total inter-segment expenses 4,455 2,901 2,600 9,956 2,907 3,153 2,631 8,691 Total expenses 126,391 11,794 11,485 149,670 58,295 11,058 10,829 80,182 Income before taxes $ 38,211 $ 1,753 $ 6,096 $ 46,060 $ 29,133 $ 1,470 $ 5,044 $ 35,647 Income tax provision 10,091 6,907 Consolidated net income 35,969 28,740 Net loss attributable to noncontrolling interest (231 ) — Net income attributable to WSFS 36,200 28,740 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (Dollars in thousands) WSFS Bank Cash ® Wealth Management Total WSFS Bank Cash ® Wealth Total Statements of Income External customer revenues: Interest income $ 237,177 $ — $ 5,303 $ 242,480 $ 134,889 $ — $ 4,875 $ 139,764 Noninterest income 36,134 25,757 22,102 83,993 38,651 23,681 20,122 82,454 Total external customer revenues 273,311 25,757 27,405 326,473 173,540 23,681 24,997 222,218 Inter-segment revenues: — Interest income 7,137 — 8,057 15,194 6,533 — 5,033 11,566 Noninterest income 4,039 369 397 4,805 4,327 381 71 4,779 Total inter-segment revenues 11,176 369 8,454 19,999 10,860 381 5,104 16,345 Total revenue 284,487 26,126 35,859 346,472 184,400 24,062 30,101 238,563 External customer expenses: — Interest expense 33,418 — 2,516 35,934 20,102 — 959 21,061 Noninterest expenses 173,992 16,923 14,525 205,440 81,940 15,224 14,079 111,243 Provision for loan losses 19,525 — 324 19,849 5,945 — 203 6,148 Total external customer expenses 226,935 16,923 17,365 261,223 107,987 15,224 15,241 138,452 Inter-segment expenses: — Interest expense 8,057 4,761 2,376 15,194 5,033 4,575 1,958 11,566 Noninterest expenses 766 1,243 2,796 4,805 452 1,309 3,018 4,779 Total inter-segment expenses 8,823 6,004 5,172 19,999 5,485 5,884 4,976 16,345 Total expenses 235,758 22,927 22,537 281,222 113,472 21,108 20,217 154,797 Income before taxes $ 48,729 $ 3,199 $ 13,322 $ 65,250 $ 70,928 $ 2,954 $ 9,884 $ 83,766 Income tax provision 16,351 17,676 Consolidated net income 48,899 66,090 Net loss attributable to noncontrolling interest (324 ) — Net income attributable to WSFS 49,223 66,090 The following table shows significant components of segment net assets as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (Dollars in thousands) WSFS Bank Cash ® Wealth Total WSFS Bank Cash ® Wealth Management Total Statements of Financial Condition Cash and cash equivalents $ 167,173 $ 345,971 $ 8,681 $ 521,825 $ 115,147 $ 491,863 $ 13,747 $ 620,757 Goodwill 453,513 — 20,199 473,712 145,808 — 20,199 166,007 Other segment assets 10,938,718 6,875 215,465 11,161,058 6,225,820 7,743 228,543 6,462,106 Total segment assets $ 11,559,404 $ 352,846 $ 244,345 $ 12,156,595 $ 6,486,775 $ 499,606 $ 262,489 $ 7,248,870 Capital expenditures $ 5,240 $ 71 $ 130 $ 5,441 $ 4,779 $ 375 $ 344 $ 5,498 |
CHANGE IN ACCUMULATED OTHER C_2
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income | Changes to accumulated other comprehensive loss by component are shown, net of taxes, in the following tables for the period indicated: (Dollars in thousands) Net change in investment securities available for sale Net change in investment securities held to maturity Net change in defined benefit plan Net change in fair value of derivatives used for cash flow hedges Total Balance, March 31, 2019 $ 2,701 $ 686 $ 693 $ (1,824 ) $ 2,256 Other comprehensive income before reclassifications 19,591 — 10 1,007 20,608 Less: Amounts reclassified from accumulated other comprehensive (loss) income (48 ) (84 ) (44 ) — (176 ) Net current-period other comprehensive income (loss) 19,543 (84 ) (34 ) 1,007 20,432 Balance, June 30, 2019 $ 22,244 $ 602 $ 659 $ (817 ) $ 22,688 Balance, March 31, 2018 $ (19,685 ) $ 1,104 $ 924 $ (3,163 ) $ (20,820 ) Other comprehensive income (loss) before reclassifications (4,501 ) — 8 (245 ) (4,738 ) Less: Amounts reclassified from accumulated other comprehensive income (loss) — (117 ) (38 ) — (155 ) Net current-period other comprehensive (loss) income (4,501 ) (117 ) (30 ) (245 ) (4,893 ) Balance, June 30, 2018 $ (24,186 ) $ 987 $ 894 $ (3,408 ) $ (25,713 ) (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 Total Balance, December 31, 2018 $ (14,553 ) $ 779 $ 834 $ (2,454 ) $ (15,394 ) Other comprehensive income (loss) before reclassifications 36,856 (2 ) (89 ) 1,637 38,402 Less: Amounts reclassified from accumulated other comprehensive (loss) income (59 ) (175 ) (86 ) — (320 ) Net current-period other comprehensive income (loss) 36,797 (177 ) (175 ) 1,637 38,082 Balance, June 30, 2019 $ 22,244 $ 602 $ 659 $ (817 ) $ 22,688 Balance, December 31, 2017 $ (7,842 ) $ 1,223 $ 865 $ (2,398 ) $ (8,152 ) Other comprehensive income (loss) before reclassifications (16,328 ) — 8 (1,010 ) (17,330 ) Less: Amounts reclassified from accumulated other comprehensive income (loss) (16 ) (236 ) 21 — (231 ) Net current-period other comprehensive (loss) income (16,344 ) (236 ) 29 (1,010 ) (17,561 ) Balance, June 30, 2018 $ (24,186 ) $ 987 $ 894 $ (3,408 ) $ (25,713 ) |
Components of Other Comprehensive Income (Loss) | The unaudited Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below: Three Months Ended June 30, Affected line item in unaudited Consolidated Statements of Income (Dollars in thousands) 2019 2018 Securities available for sale: Realized gains on securities transactions $ (63 ) $ — Securities gains, net Income taxes 15 — Income tax provision Net of tax $ (48 ) $ — Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized gains to income during the period $ (111 ) $ (153 ) Interest and dividends on investment securities Income taxes 27 36 Income tax provision Net of tax $ (84 ) $ (117 ) Amortization of Defined Benefit Pension items: Prior service costs (credits) (1) $ (19 ) $ (19 ) Actuarial gains (16 ) (12 ) Total before tax $ (35 ) $ (31 ) Salaries, benefits and other compensation Income taxes (9 ) (7 ) Income tax provision Net of tax (44 ) (38 ) Total reclassifications $ (176 ) $ (155 ) Six Months Ended June 30, Affected line item in unaudited Consolidated Statements of Income (Dollars in thousands) 2019 2018 Securities available for sale: Realized gains on securities transactions $ (78 ) $ (21 ) Securities gains, net Income taxes 19 5 Income tax provision Net of tax $ (59 ) $ (16 ) Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized gains to income during the period $ (231 ) $ (309 ) Interest and dividends on investment securities Income taxes 56 73 Income tax provision Net of tax $ (175 ) $ (236 ) Amortization of Defined Benefit Pension items: Prior service costs (credits) (1) $ (38 ) $ 40 Transition obligation — — Actuarial gains (31 ) (23 ) Total before tax $ (69 ) $ 17 Salaries, benefits and other compensation Income taxes (17 ) 4 Income tax provision Net of tax (86 ) 21 Total reclassifications $ (320 ) $ (231 ) (1) Prior service costs balance for the six months ended June 30, 2018 includes a tax true-up adjustment of $0.1 million from March 31, 2018 . Note that the tax true-up was made to the deferred tax asset with an offset to AOCI and does not affect the actual net periodic benefit costs of the pension plan. |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Jun. 30, 2019SubsidiaryOffice |
Basis Of Presentation [Line Items] | |
Number of unconsolidated affiliate | Subsidiary | 1 |
Number of banking offices | 147 |
Delaware | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 49 |
Pennsylvania | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 72 |
New Jersey | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 24 |
Virginia | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 1 |
Nevada | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 1 |
WSFS Financial Corporation | |
Basis Of Presentation [Line Items] | |
Number of wholly-owned subsidiaries | Subsidiary | 4 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) $ / shares in Units, $ in Thousands | Mar. 01, 2019USD ($)Office$ / shares | Jun. 30, 2019Office | Dec. 31, 2018Office |
Business Acquisition [Line Items] | |||
Share price (USD per share) | $ / shares | $ 43.28 | ||
Number of offices sold | Office | 11 | ||
Beneficial | |||
Business Acquisition [Line Items] | |||
Shares issued per acquire (in shares) | 0.3013 | ||
Cash paid per acquire (USD per share) | $ / shares | $ 2.93 | ||
Stock consideration | $ 949,968 | ||
Cash paid to Beneficial stock and option holders | 228,239 | ||
Value of consideration | $ 1,178,207 | ||
Number of branches acquired | Office | 74 | ||
Investment securities | $ 619,880 | ||
Securities sold | 578,800 | ||
Deferred income taxes | 18,739 | ||
Number of offices sold | Office | 14 | ||
Number of offices sold during acquisition | Office | 5 | ||
Deposit premium percentage | 7.37% | ||
Beneficial | Core deposits | |||
Business Acquisition [Line Items] | |||
Core deposit intangible | $ 85,053 | ||
Useful life | 10 years |
BUSINESS COMBINATIONS - Assets
BUSINESS COMBINATIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 01, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Liabilities assumed: | ||||
Goodwill resulting from acquisition of Beneficial | $ 473,712 | $ 166,007 | ||
Beneficial | ||||
Business Acquisition [Line Items] | ||||
Common shares issued (21,816,355) | $ 949,968 | |||
Number of shares issued (in shares) | 21,816,355 | |||
Cash paid to Beneficial stock and option holders | $ 228,239 | |||
Value of consideration | 1,178,207 | |||
Assets acquired: | ||||
Cash and due from banks | 304,311 | |||
Investment securities | 619,880 | |||
Loans and leases, net | 3,711,246 | |||
Premises and equipment | 69,873 | |||
Deferred income taxes | 18,739 | |||
Bank owned life insurance | 82,510 | |||
Total assets | 135,895 | |||
Total assets | 5,029,973 | |||
Liabilities assumed: | ||||
Deposits | 4,056,506 | |||
Other liabilities | 102,965 | |||
Total liabilities | 4,159,471 | |||
Net assets acquired: | 870,502 | |||
Goodwill resulting from acquisition of Beneficial | 307,705 | $ 309,486 | ||
Core deposits | Beneficial | ||||
Assets acquired: | ||||
Core deposit intangible | 85,053 | |||
Loan servicing rights | Beneficial | ||||
Assets acquired: | ||||
Core deposit intangible | $ 2,466 |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of Changes to Goodwill Subsequent to Acquisition (Details) - Beneficial $ in Thousands | Mar. 01, 2019USD ($) |
Goodwill [Roll Forward] | |
Goodwill ending balance | $ 307,705 |
Cash | |
Goodwill [Roll Forward] | |
Goodwill, purchase accounting adjustments | 246 |
Loans | |
Goodwill [Roll Forward] | |
Goodwill, purchase accounting adjustments | 911 |
Premises and equipment | |
Goodwill [Roll Forward] | |
Goodwill, purchase accounting adjustments | (741) |
Other Assets | |
Goodwill [Roll Forward] | |
Goodwill, purchase accounting adjustments | (420) |
Other Liabilities | |
Goodwill [Roll Forward] | |
Goodwill, purchase accounting adjustments | (121) |
Deferred income taxes | |
Goodwill [Roll Forward] | |
Goodwill, purchase accounting adjustments | 731 |
Deposits | |
Goodwill [Roll Forward] | |
Goodwill, purchase accounting adjustments | 790 |
Investment securities | |
Goodwill [Roll Forward] | |
Goodwill, purchase accounting adjustments | $ (3,177) |
NONINTEREST INCOME - Credit_deb
NONINTEREST INCOME - Credit/debit card and ATM Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Credit/debit card and ATM income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 13,677 | $ 10,709 | $ 25,192 | $ 20,514 |
Bailment fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 6,908 | 6,588 | 13,807 | 12,681 |
Interchange fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 6,452 | 3,847 | 10,839 | 7,307 |
Other card and ATM fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 317 | $ 274 | $ 546 | $ 526 |
NONINTEREST INCOME - Investment
NONINTEREST INCOME - Investment Management and Fiduciary Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Trust fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 6,685 | $ 6,118 | $ 13,250 | $ 11,366 |
Wealth management and advisory fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 3,697 | 4,126 | 7,279 | 8,067 |
Investment management and fiduciary income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 10,382 | $ 10,244 | $ 20,529 | $ 19,433 |
NONINTEREST INCOME - Deposit se
NONINTEREST INCOME - Deposit service charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Service fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | $ 3,179 | $ 2,634 | $ 5,895 | $ 5,214 |
Return and overdraft fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | 2,696 | 1,893 | 4,544 | 3,777 |
Other deposit service fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | 228 | 137 | 410 | 303 |
Deposit service charges | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | $ 6,103 | $ 4,664 | $ 10,849 | $ 9,294 |
NONINTEREST INCOME - Other inco
NONINTEREST INCOME - Other income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Managed service fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 3,624 | $ 3,105 | $ 6,566 | $ 5,931 |
Currency preparation | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 851 | 818 | 1,590 | 1,543 |
ATM insurance | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 652 | 605 | 1,280 | 1,195 |
Miscellaneous products and services | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 2,607 | 2,583 | 6,005 | 4,350 |
Other income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 7,734 | $ 7,111 | $ 15,441 | $ 13,019 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income | $ 36,200 | $ 28,740 | $ 49,223 | $ 66,090 |
Denominator: | ||||
Weighted average basic shares (in shares) | 53,253 | 31,567 | 46,103 | 31,497 |
Dilutive potential common shares (in shares) | 263 | 697 | 335 | 729 |
Weighted average fully diluted shares (in shares) | 53,516 | 32,264 | 46,438 | 32,226 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.68 | $ 0.91 | $ 1.07 | $ 2.10 |
Diluted (in dollars per share) | $ 0.68 | $ 0.89 | $ 1.06 | $ 2.05 |
Outstanding common stock equivalents having no dilutive effect (in shares) | 1 | 11 | 1 | 23 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Gain (Loss) on Securities [Line Items] | |||
Trading securities | $ 0 | ||
Securities pledged as collateral | 1,100,000,000 | $ 914,500,000 | |
Sale of investment securities available for sale, including interest | 602,500,000 | ||
Sale of investment securities available for sale | 602,432,000 | $ 7,012,000 | |
Remaining securities | 23,700,000 | ||
Debt securities, available-for-sale, realized gain (less than) | 100,000 | 100,000 | |
Losses from sale of available-for-sale securities | 0 | $ 0 | |
Unamortized premiums | 15,500,000 | 12,700,000 | |
Unaccreted discounts | 3,500,000 | 2,500,000 | |
Owned investment securities | 251,300,000 | ||
Total unrealized losses on securities | $ 1,900,000 | ||
Number of securities, below investment grade | security | 1 | ||
Available-for-sale securities, below investment grade, fair value | $ 600,000 | ||
Weighted average duration of MBS portfolio | 3 years 3 months 18 days | ||
Collateralized Mortgage Backed Securities | |||
Gain (Loss) on Securities [Line Items] | |||
OTTI on evaluation of securities | $ 0 | $ 0 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 1,767,602 | $ 1,224,227 |
Gross Unrealized Gain | 31,143 | 3,902 |
Gross Unrealized Loss | 1,875 | 23,050 |
Fair Value | 1,796,870 | 1,205,079 |
Held-to-Maturity Debt Securities | ||
Amortized Cost | 143,317 | 149,950 |
Gross Unrealized Gain | 2,556 | |
Gross Unrealized Loss | 6 | |
Fair Value | 145,867 | 149,431 |
Equity Investments | ||
Amortized Cost | 23,865 | 17,218 |
Gross Unrealized Gain | 24,846 | 20,015 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 48,711 | 37,233 |
CMO | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 367,289 | 376,867 |
Gross Unrealized Gain | 5,455 | 1,721 |
Gross Unrealized Loss | 509 | 6,838 |
Fair Value | 372,235 | 371,750 |
FNMA MBS | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 1,034,233 | 655,485 |
Gross Unrealized Gain | 19,091 | 1,526 |
Gross Unrealized Loss | 929 | 12,938 |
Fair Value | 1,052,395 | 644,073 |
FHLMC MBS | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 330,609 | 155,758 |
Gross Unrealized Gain | 6,219 | 558 |
Gross Unrealized Loss | 245 | 2,394 |
Fair Value | 336,583 | 153,922 |
GNMA MBS | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 35,471 | 36,117 |
Gross Unrealized Gain | 378 | 97 |
Gross Unrealized Loss | 192 | 880 |
Fair Value | 35,657 | 35,334 |
Other equity investments | ||
Equity Investments | ||
Amortized Cost | 8,149 | 3,300 |
Gross Unrealized Gain | 625 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 8,774 | 3,300 |
State and political subdivisions | ||
Held-to-Maturity Debt Securities | ||
Amortized Cost | 141,315 | 149,950 |
Gross Unrealized Gain | 2,552 | 275 |
Gross Unrealized Loss | 6 | 794 |
Fair Value | 143,861 | 149,431 |
Equity Investments | ||
Available for sale securities transfers to held to maturity unrealized gains | 800 | 1,000 |
Foreign bonds | ||
Held-to-Maturity Debt Securities | ||
Amortized Cost | 2,002 | |
Gross Unrealized Gain | 4 | |
Gross Unrealized Loss | 0 | |
Fair Value | 2,006 | |
Visa | Visa Class B shares | Common Stock | ||
Equity Investments | ||
Amortized Cost | 15,716 | 13,918 |
Gross Unrealized Gain | 24,221 | 20,015 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | $ 39,937 | $ 33,933 |
INVESTMENT SECURITIES - Sched_2
INVESTMENT SECURITIES - Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available for Sale Amortized Cost | ||
Within one year | $ 0 | $ 0 |
After one year but within five years | 19,457 | 19,714 |
After five years but within ten years | 155,351 | 170,118 |
After ten years | 1,592,794 | 1,034,395 |
Amortized Cost | 1,767,602 | 1,224,227 |
Available for Sale Fair Value | ||
Within one year | 0 | 0 |
After one year but within five years | 19,519 | 19,423 |
After five years but within ten years | 156,432 | 163,731 |
After ten years | 1,620,919 | 1,021,925 |
Available-for-sale securities, fair value total | 1,796,870 | 1,205,079 |
Held to Maturity, Amortized Cost | ||
Within one year | 2,626 | 1,018 |
After one year but within five years | 7,423 | 6,703 |
After five years but within ten years | 30,228 | 29,613 |
After ten years | 103,040 | 112,616 |
Amortized Cost | 143,317 | 149,950 |
Held to Maturity, Fair Value | ||
Within one year | 2,630 | 1,016 |
After one year but within five years | 7,458 | 6,701 |
After five years but within ten years | 30,703 | 29,547 |
After ten years | 105,076 | 112,167 |
Held-to-maturity securities, fair value total | $ 145,867 | $ 149,431 |
INVESTMENT SECURITIES - Sched_3
INVESTMENT SECURITIES - Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | $ 49,565 | $ 73,219 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 132 | 302 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 197,597 | 718,120 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 1,743 | 22,748 |
Available-for-sale debt securities, Total, Fair Value | 247,162 | 791,339 |
Available-for-sale debt securities, Total, Unrealized Loss | 1,875 | 23,050 |
Held-to-maturity debt securities: | ||
Held-to-maturity, Less than 12 months, Fair Value | 0 | |
Held-to-maturity, Less than 12 months, Unrealized Loss | 0 | |
Held-to-maturity, 12 months or longer, Fair Value | 4,105 | |
Held-to-maturity, 12 months or longer, Unrealized Loss | 6 | |
Held-to-maturity, Total, Fair Value | 4,105 | |
Held-to-maturity, Total, Unrealized Loss | 6 | |
Investment securities held to maturity | 143,317 | 149,950 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 2,556 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 6 | |
Held-to-maturity securities, fair value | 145,867 | 149,431 |
CMO | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | 0 | 17,143 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 0 | 40 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 59,051 | 212,208 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 509 | 6,798 |
Available-for-sale debt securities, Total, Fair Value | 59,051 | 229,351 |
Available-for-sale debt securities, Total, Unrealized Loss | 509 | 6,838 |
FNMA MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | 31,377 | 34,214 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 43 | 162 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 105,513 | 407,638 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 886 | 12,776 |
Available-for-sale debt securities, Total, Fair Value | 136,890 | 441,852 |
Available-for-sale debt securities, Total, Unrealized Loss | 929 | 12,938 |
FHLMC MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | 18,188 | 16,025 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 89 | 21 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 18,581 | 76,469 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 156 | 2,373 |
Available-for-sale debt securities, Total, Fair Value | 36,769 | 92,494 |
Available-for-sale debt securities, Total, Unrealized Loss | 245 | 2,394 |
GNMA MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | 0 | 5,837 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 0 | 79 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 14,452 | 21,805 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 192 | 801 |
Available-for-sale debt securities, Total, Fair Value | 14,452 | 27,642 |
Available-for-sale debt securities, Total, Unrealized Loss | 192 | 880 |
State and political subdivisions | ||
Held-to-maturity debt securities: | ||
Held-to-maturity, Less than 12 months, Fair Value | 0 | 91,228 |
Held-to-maturity, Less than 12 months, Unrealized Loss | 0 | 155 |
Held-to-maturity, 12 months or longer, Fair Value | 4,105 | 58,203 |
Held-to-maturity, 12 months or longer, Unrealized Loss | 6 | 639 |
Held-to-maturity, Total, Fair Value | 4,105 | 149,431 |
Held-to-maturity, Total, Unrealized Loss | 6 | 794 |
Investment securities held to maturity | 141,315 | 149,950 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 2,552 | 275 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 6 | 794 |
Held-to-maturity securities, fair value | $ 143,861 | $ 149,431 |
LOANS - Summary of Loan Portfol
LOANS - Summary of Loan Portfolio by Category (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 8,601,678 | $ 4,894,257 | $ 4,901,621 | |||
Deferred fees, net | 4,555 | 7,348 | ||||
Allowance for loan and lease losses | 45,364 | $ 46,321 | 39,539 | 41,037 | $ 40,810 | $ 40,599 |
Loans, net | 8,567,709 | 4,863,919 | ||||
Reverse mortgage, fair value | 15,900 | 16,500 | 16,100 | |||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,126,733 | 680,939 | 618,740 | |||
Allowance for loan and lease losses | 7,994 | 8,232 | 8,325 | 8,152 | 8,188 | 7,895 |
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 2,184,487 | 1,472,489 | ||||
Owner-occupied commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,280,894 | 1,059,974 | 1,085,895 | |||
Allowance for loan and lease losses | 4,480 | 4,949 | 5,057 | 5,284 | 5,359 | 5,422 |
Commercial mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 2,246,047 | 1,162,739 | 1,160,654 | |||
Allowance for loan and lease losses | 6,544 | 6,679 | 6,806 | 6,951 | 6,617 | 5,891 |
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 541,696 | 316,566 | 297,120 | |||
Allowance for loan and lease losses | 2,984 | $ 4,044 | 3,712 | $ 3,289 | $ 2,864 | $ 2,861 |
Commercial small business leases | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 156,037 | 0 | ||||
Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,081,734 | 218,099 | ||||
Financing Receivable Portfolio Segment, Including Reverse Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 8,617,628 | $ 4,910,806 |
LOANS - Schedule of Loans Acqui
LOANS - Schedule of Loans Acquired (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||||||
Loans acquired | $ 179 | $ 227 | |||||
Contractual required principal and interest at acquisition | 3,800 | 4,800 | |||||
Interest component of expected cash flows (accretable yield) | $ 4,055 | $ 4,955 | $ 2,463 | $ 2,925 | $ 2,440 | $ 3,035 | |
Beneficial | |||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||||||
Loans acquired | $ 37,000 | ||||||
Contractual required principal and interest at acquisition | 53,647 | ||||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 20,118 | ||||||
Expected cash flows at acquisition | 33,529 | ||||||
Interest component of expected cash flows (accretable yield) | 3,068 | ||||||
Fair value of acquired loans accounted for under ASC 310-30 | $ 30,461 |
LOANS - Schedule of Outstanding
LOANS - Schedule of Outstanding Principal Balance and Carrying Amounts for Acquired Credit-Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Outstanding principal balance | $ 48,124 | $ 18,642 |
Carrying amount | 33,752 | 14,718 |
Allowance for loan losses | $ 179 | $ 227 |
LOANS - Summary of Changes in A
LOANS - Summary of Changes in Accretable Yield on Acquired Credit Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 4,955 | $ 2,440 | $ 2,463 | $ 3,035 |
Addition from Beneficial | 0 | 0 | 3,068 | 0 |
Accretion | (662) | (501) | (1,074) | (918) |
Reclassification from nonaccretable difference | 207 | 1,076 | 207 | 1,078 |
Additions/adjustments | (445) | (90) | (609) | (270) |
Balance at the end of the period | $ 4,055 | $ 2,925 | $ 4,055 | $ 2,925 |
ALLOWANCE FOR LOAN AND LEASE _3
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)SecurityLoanloan | Jun. 30, 2018USD ($)loan | Dec. 31, 2018USD ($)SecurityLoan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net charge-offs | $ 14 | $ 5.7 | |||
Percentage of average loans annualized, charged-offs | 0.38% | 0.24% | |||
Interest income on impaired loans | $ 0.4 | $ 0.4 | $ 0.6 | $ 0.7 | |
Troubled debt restructuring related reserves | $ 0.8 | $ 0.8 | $ 1.2 | ||
Usual sustained repayment performance period | 6 months | ||||
TRD defaulted | loan | 3 | 2 | 4 | 4 | |
Subsequent default, loan amount | $ 1.2 | $ 0.1 | $ 1.3 | $ 0.2 | |
Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of residential loans in the process of foreclosure | SecurityLoan | 19 | 26 | |||
Total loans outstanding, residential loans | $ 2 | $ 1.9 | |||
Commercial and Industrial(1) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of residential loans in the process of foreclosure | SecurityLoan | 14 | 11 | |||
Total loans outstanding, residential loans | $ 5.2 | $ 5.3 | |||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period for impairment loans | 90 days | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase (decrease) in allowance for loan losses | 0.1 | 0.7 | $ 0.2 | 0.7 | |
Troubled debt restructurings charged off | $ 0 | $ 0.1 | $ 0 | $ 0.1 | |
Total Residential and Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impairment loans, charge off period | 90 days |
ALLOWANCE FOR LOAN AND LEASE _4
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Allowance for Loan Losses and Loan Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Allowance for loan losses | |||||
Beginning balance | $ 46,321 | $ 40,810 | $ 39,539 | $ 40,599 | $ 40,599 |
Charge-offs | (14,328) | (2,963) | (15,878) | (6,844) | |
Recoveries | 1,176 | 692 | 1,854 | 1,134 | |
Provision (credit) | 11,651 | 2,451 | 19,146 | 6,106 | |
Provision (credit) for acquired loans | 544 | 47 | 703 | 42 | |
Ending balance | 45,364 | 41,037 | 45,364 | 41,037 | 39,539 |
Loans individually evaluated for impairment | 4,995 | 3,631 | 4,995 | 3,631 | |
Loans collectively evaluated for impairment | 40,190 | 37,080 | 40,190 | 37,080 | |
Acquired loans evaluated for impairment | 179 | 326 | |||
Ending balance | 45,364 | 41,037 | 45,364 | 41,037 | |
Loans individually evaluated for impairment | 51,136 | 52,529 | 51,136 | 52,529 | |
Loans collectively evaluated for impairment | 4,816,880 | 4,329,312 | 4,816,880 | 4,329,312 | |
Acquired nonimpaired loans | 3,699,730 | 501,057 | 3,699,730 | 501,057 | 430,000 |
Acquired impaired loans | 33,932 | 18,723 | 14,944 | ||
Ending balance | 8,601,678 | 4,901,621 | 8,601,678 | 4,901,621 | 4,894,257 |
Reverse mortgage, fair value | 15,900 | 16,100 | 15,900 | 16,100 | 16,500 |
Performing TDRs | 14,203 | 16,300 | 14,953 | ||
Owner-occupied commercial | |||||
Allowance for loan losses | |||||
Beginning balance | 4,949 | 5,359 | 5,057 | 5,422 | 5,422 |
Charge-offs | (8) | (341) | (8) | (351) | |
Recoveries | 78 | 7 | 81 | 12 | |
Provision (credit) | (526) | 204 | (637) | 146 | |
Provision (credit) for acquired loans | (13) | 55 | (13) | 55 | |
Ending balance | 4,480 | 5,284 | 4,480 | 5,284 | 5,057 |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 4,401 | 5,266 | 4,401 | 5,266 | |
Acquired loans evaluated for impairment | 79 | 18 | |||
Ending balance | 4,480 | 5,284 | 4,480 | 5,284 | |
Loans individually evaluated for impairment | 8,753 | 3,224 | 8,753 | 3,224 | |
Loans collectively evaluated for impairment | 1,168,864 | 952,627 | 1,168,864 | 952,627 | |
Acquired nonimpaired loans | 99,326 | 125,129 | 99,326 | 125,129 | |
Acquired impaired loans | 3,951 | 4,915 | 4,248 | ||
Ending balance | 1,280,894 | 1,085,895 | 1,280,894 | 1,085,895 | 1,059,974 |
Commercial mortgages | |||||
Allowance for loan losses | |||||
Beginning balance | 6,679 | 6,617 | 6,806 | 5,891 | 5,891 |
Charge-offs | (153) | 0 | (155) | (48) | |
Recoveries | 398 | 3 | 427 | 137 | |
Provision (credit) | (474) | 337 | (630) | 954 | |
Provision (credit) for acquired loans | 94 | (6) | 96 | 17 | |
Ending balance | 6,544 | 6,951 | 6,544 | 6,951 | 6,806 |
Loans individually evaluated for impairment | 0 | 63 | 0 | 63 | |
Loans collectively evaluated for impairment | 6,496 | 6,804 | 6,496 | 6,804 | |
Acquired loans evaluated for impairment | 48 | 84 | |||
Ending balance | 6,544 | 6,951 | 6,544 | 6,951 | |
Loans individually evaluated for impairment | 2,431 | 6,737 | 2,431 | 6,737 | |
Loans collectively evaluated for impairment | 765,268 | 972,684 | 765,268 | 972,684 | |
Acquired nonimpaired loans | 1,464,739 | 172,082 | 1,464,739 | 172,082 | |
Acquired impaired loans | 13,609 | 9,151 | 7,504 | ||
Ending balance | 2,246,047 | 1,160,654 | 2,246,047 | 1,160,654 | 1,162,739 |
Construction | |||||
Allowance for loan losses | |||||
Beginning balance | 4,044 | 2,864 | 3,712 | 2,861 | 2,861 |
Charge-offs | (42) | 0 | (42) | 0 | |
Recoveries | 1 | 1 | 2 | 1 | |
Provision (credit) | (1,013) | 422 | (682) | 450 | |
Provision (credit) for acquired loans | (6) | 2 | (6) | (23) | |
Ending balance | 2,984 | 3,289 | 2,984 | 3,289 | 3,712 |
Loans individually evaluated for impairment | 0 | 593 | 0 | 593 | |
Loans collectively evaluated for impairment | 2,976 | 2,687 | 2,976 | 2,687 | |
Acquired loans evaluated for impairment | 8 | 9 | |||
Ending balance | 2,984 | 3,289 | 2,984 | 3,289 | |
Loans individually evaluated for impairment | 0 | 5,557 | 0 | 5,557 | |
Loans collectively evaluated for impairment | 324,307 | 283,480 | 324,307 | 283,480 | |
Acquired nonimpaired loans | 216,843 | 7,352 | 216,843 | 7,352 | |
Acquired impaired loans | 546 | 731 | 749 | ||
Ending balance | 541,696 | 297,120 | 541,696 | 297,120 | 316,566 |
Commercial and Industrial | |||||
Allowance for loan losses | |||||
Beginning balance | 21,016 | 16,102 | 14,211 | 16,732 | 16,732 |
Charge-offs | (13,002) | (1,740) | (13,744) | (5,100) | |
Recoveries | 203 | 359 | 561 | 439 | |
Provision (credit) | 13,568 | 1,133 | 20,691 | 3,783 | |
Provision (credit) for acquired loans | 219 | (12) | 285 | (12) | |
Ending balance | 22,004 | 15,842 | 22,004 | 15,842 | 14,211 |
Loans individually evaluated for impairment | 4,324 | 2,208 | 4,324 | 2,208 | |
Loans collectively evaluated for impairment | 17,679 | 13,472 | 17,679 | 13,472 | |
Acquired loans evaluated for impairment | 1 | 162 | |||
Ending balance | 22,004 | 15,842 | 22,004 | 15,842 | |
Loans individually evaluated for impairment | 21,171 | 17,015 | 21,171 | 17,015 | |
Loans collectively evaluated for impairment | 1,575,810 | 1,404,662 | 1,575,810 | 1,404,662 | |
Acquired nonimpaired loans | 738,579 | 101,532 | 738,579 | 101,532 | |
Acquired impaired loans | 4,964 | 2,904 | 1,531 | ||
Ending balance | 2,340,524 | 1,526,113 | 2,340,524 | 1,526,113 | 1,472,489 |
Residential | |||||
Allowance for loan losses | |||||
Beginning balance | 1,401 | 1,680 | 1,428 | 1,798 | 1,798 |
Charge-offs | (163) | (54) | (285) | (54) | |
Recoveries | (2) | 75 | (16) | 91 | |
Provision (credit) | 24 | (182) | 75 | (313) | |
Provision (credit) for acquired loans | 98 | 0 | 156 | (3) | |
Ending balance | 1,358 | 1,519 | 1,358 | 1,519 | 1,428 |
Loans individually evaluated for impairment | 488 | 592 | 488 | 592 | |
Loans collectively evaluated for impairment | 828 | 891 | 828 | 891 | |
Acquired loans evaluated for impairment | 42 | 36 | |||
Ending balance | 1,358 | 1,519 | 1,358 | 1,519 | |
Loans individually evaluated for impairment | 11,398 | 12,282 | 11,398 | 12,282 | |
Loans collectively evaluated for impairment | 134,235 | 134,323 | 134,235 | 134,323 | |
Acquired nonimpaired loans | 912,288 | 65,723 | 912,288 | 65,723 | |
Acquired impaired loans | 7,863 | 771 | 761 | ||
Ending balance | 1,065,784 | 213,099 | 1,065,784 | 213,099 | 201,550 |
Consumer | |||||
Allowance for loan losses | |||||
Beginning balance | 8,232 | 8,188 | 8,325 | 7,895 | 7,895 |
Charge-offs | (960) | (828) | (1,644) | (1,291) | |
Recoveries | 498 | 247 | 799 | 454 | |
Provision (credit) | 72 | 537 | 329 | 1,086 | |
Provision (credit) for acquired loans | 152 | 8 | 185 | 8 | |
Ending balance | 7,994 | 8,152 | 7,994 | 8,152 | 8,325 |
Loans individually evaluated for impairment | 183 | 175 | 183 | 175 | |
Loans collectively evaluated for impairment | 7,810 | 7,960 | 7,810 | 7,960 | |
Acquired loans evaluated for impairment | 1 | 17 | |||
Ending balance | 7,994 | 8,152 | 7,994 | 8,152 | |
Loans individually evaluated for impairment | 7,383 | 7,714 | 7,383 | 7,714 | |
Loans collectively evaluated for impairment | 848,396 | 581,536 | 848,396 | 581,536 | |
Acquired nonimpaired loans | 267,955 | 29,239 | 267,955 | 29,239 | |
Acquired impaired loans | 2,999 | 251 | 151 | ||
Ending balance | $ 1,126,733 | $ 618,740 | $ 1,126,733 | $ 618,740 | $ 680,939 |
ALLOWANCE FOR LOAN AND LEASE _5
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Summary of Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | $ 46,227 | $ 13,343 | |
Accruing Current Balances | 8,483,883 | 4,835,916 | |
Acquired Impaired Loans | 33,932 | $ 18,723 | 14,944 |
Nonaccrual Loans | 37,636 | 30,054 | |
Total Loans | $ 8,601,678 | 4,901,621 | $ 4,894,257 |
30-59 Days Past Due and Still Accruing, % of Total Loans | 0.30% | 0.17% | |
60-89 Days Past Due and Still Accruing, % of Total Loans | 0.06% | 0.08% | |
Greater Than 90 Days Past Due and Still Accruing, % of Total Loans | 0.18% | 0.02% | |
Total Past Due And Still Accruing, % of Total Loans | 0.54% | 0.27% | |
Accruing Current Balances, % of Total Loans | 98.63% | 98.81% | |
Acquired Impaired Loans, % of Total Loans | 0.39% | 0.31% | |
Nonaccrual Loans, % of Total Loans | 0.44% | 0.61% | |
% of Total Loans | 100.00% | 100.00% | |
Reverse mortgage, fair value | $ 15,900 | 16,100 | $ 16,500 |
Acquired nonimpaired loans | 3,699,730 | 501,057 | 430,000 |
Commercial and Industrial(1) | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 4,576 | 4,717 | |
Accruing Current Balances | 2,309,943 | 1,452,185 | |
Acquired Impaired Loans | 4,964 | 2,904 | 1,531 |
Nonaccrual Loans | 21,041 | 14,056 | |
Total Loans | 2,340,524 | 1,526,113 | 1,472,489 |
Acquired nonimpaired loans | 738,579 | 101,532 | |
Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 6,143 | 2,975 | |
Accruing Current Balances | 1,047,891 | 194,960 | |
Acquired Impaired Loans | 7,863 | 771 | 761 |
Nonaccrual Loans | 3,887 | 2,854 | |
Total Loans | 1,065,784 | 213,099 | 201,550 |
Acquired nonimpaired loans | 912,288 | 65,723 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 24,891 | 1,600 | |
Accruing Current Balances | 1,097,190 | 677,182 | |
Acquired Impaired Loans | 2,999 | 251 | 151 |
Nonaccrual Loans | 1,653 | 2,006 | |
Total Loans | 1,126,733 | 618,740 | 680,939 |
Acquired nonimpaired loans | 267,955 | 29,239 | |
30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 25,462 | 8,426 | |
30–59 Days Past Due and Still Accruing | Commercial and Industrial(1) | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 3,894 | 3,653 | |
30–59 Days Past Due and Still Accruing | Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 6,022 | 1,970 | |
30–59 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 6,693 | 525 | |
60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 5,098 | 4,082 | |
60–89 Days Past Due and Still Accruing | Commercial and Industrial(1) | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 682 | 993 | |
60–89 Days Past Due and Still Accruing | Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 6 | 345 | |
60–89 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 3,811 | 971 | |
Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 15,667 | 835 | |
Greater Than 90 Days Past Due and Still Accruing | Commercial and Industrial(1) | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 71 | |
Greater Than 90 Days Past Due and Still Accruing | Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 115 | 660 | |
Greater Than 90 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 14,387 | 104 | |
Owner-occupied commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 5,668 | 1,598 | |
Accruing Current Balances | 1,262,522 | 1,049,722 | |
Acquired Impaired Loans | 3,951 | 4,915 | 4,248 |
Nonaccrual Loans | 8,753 | 4,406 | |
Total Loans | 1,280,894 | 1,085,895 | 1,059,974 |
Acquired nonimpaired loans | 99,326 | 125,129 | |
Owner-occupied commercial | 30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 4,105 | 733 | |
Owner-occupied commercial | 60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 398 | 865 | |
Owner-occupied commercial | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 1,165 | 0 | |
Commercial mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 4,700 | 2,296 | |
Accruing Current Balances | 2,225,436 | 1,148,988 | |
Acquired Impaired Loans | 13,609 | 9,151 | 7,504 |
Nonaccrual Loans | 2,302 | 3,951 | |
Total Loans | 2,246,047 | 1,160,654 | 1,162,739 |
Acquired nonimpaired loans | 1,464,739 | 172,082 | |
Commercial mortgages | 30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 4,499 | 1,388 | |
Commercial mortgages | 60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 201 | 908 | |
Commercial mortgages | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 0 | |
Construction | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 249 | 157 | |
Accruing Current Balances | 540,901 | 312,879 | |
Acquired Impaired Loans | 546 | 731 | 749 |
Nonaccrual Loans | 0 | 2,781 | |
Total Loans | 541,696 | 297,120 | 316,566 |
Acquired nonimpaired loans | 216,843 | $ 7,352 | |
Construction | 30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 249 | 157 | |
Construction | 60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 0 | |
Construction | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | $ 0 | |
Student loans | Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due And Still Accruing | $ 22,300 |
ALLOWANCE FOR LOAN AND LEASE _6
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Analysis of Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | $ 54,632 | $ 49,352 |
Loans with No Related Reserve | 33,153 | 30,455 |
Loans with Related Reserve | 21,479 | 18,897 |
Related Reserve | 5,174 | 2,258 |
Contractual Principal Balances | 66,423 | 71,500 |
Average Loan Balances | 53,696 | 56,936 |
Acquired impaired loans | 3,500 | 4,300 |
Contractual required principal and interest at acquisition | 3,800 | 4,800 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 21,173 | 14,841 |
Loans with No Related Reserve | 8,227 | 8,625 |
Loans with Related Reserve | 12,946 | 6,216 |
Related Reserve | 4,324 | 878 |
Contractual Principal Balances | 25,425 | 22,365 |
Average Loan Balances | 18,055 | 18,484 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 11,610 | 11,321 |
Loans with No Related Reserve | 7,733 | 6,442 |
Loans with Related Reserve | 3,877 | 4,879 |
Related Reserve | 530 | 581 |
Contractual Principal Balances | 13,722 | 13,771 |
Average Loan Balances | 11,602 | 12,589 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 7,414 | 7,916 |
Loans with No Related Reserve | 6,009 | 6,899 |
Loans with Related Reserve | 1,405 | 1,017 |
Related Reserve | 185 | 170 |
Contractual Principal Balances | 8,161 | 8,573 |
Average Loan Balances | 7,932 | 7,956 |
Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 10,134 | 6,065 |
Loans with No Related Reserve | 8,753 | 4,406 |
Loans with Related Reserve | 1,381 | 1,659 |
Related Reserve | 79 | 92 |
Contractual Principal Balances | 10,430 | 6,337 |
Average Loan Balances | 6,522 | 5,378 |
Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 3,755 | 5,679 |
Loans with No Related Reserve | 2,431 | 4,083 |
Loans with Related Reserve | 1,324 | 1,596 |
Related Reserve | 48 | 79 |
Contractual Principal Balances | 8,047 | 15,372 |
Average Loan Balances | 6,300 | 7,438 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 546 | 3,530 |
Loans with No Related Reserve | 0 | 0 |
Loans with Related Reserve | 546 | 3,530 |
Related Reserve | 8 | 458 |
Contractual Principal Balances | 638 | 5,082 |
Average Loan Balances | $ 3,285 | $ 5,091 |
ALLOWANCE FOR LOAN AND LEASE _7
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Commercial Credit Exposure (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial Loans | 100.00% | 100.00% | |
Acquired nonimpaired loans | $ 3,699,730 | $ 430,000 | $ 501,057 |
Commercial and Industrial(1) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 2,340,524 | 1,472,489 | |
Acquired nonimpaired loans | 738,579 | 101,532 | |
Special mention | Commercial and Industrial(1) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 4,000 | 8,710 | |
Accrual | Commercial and Industrial(1) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 51,980 | 37,424 | |
Nonaccrual | Commercial and Industrial(1) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 16,717 | 13,180 | |
Doubtful | Commercial and Industrial(1) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | $ 4,324 | $ 876 | |
Total Special Mention and Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial Loans | 2.00% | 3.00% | |
Total Special Mention and Substandard | Commercial and Industrial(1) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | $ 77,021 | $ 60,190 | |
Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial Loans | 0.00% | 0.00% | |
Acquired impaired | Commercial and Industrial(1) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | $ 4,964 | $ 1,531 | |
Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial Loans | 98.00% | 97.00% | |
Pass | Commercial and Industrial(1) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | $ 2,258,539 | $ 1,410,768 | |
Owner-occupied commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 1,280,894 | 1,059,974 | |
Acquired nonimpaired loans | 99,326 | 125,129 | |
Owner-occupied commercial | Special mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 10,817 | 21,230 | |
Owner-occupied commercial | Accrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 18,969 | 21,081 | |
Owner-occupied commercial | Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 8,753 | 4,406 | |
Owner-occupied commercial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 0 | 0 | |
Owner-occupied commercial | Total Special Mention and Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 38,539 | 46,717 | |
Owner-occupied commercial | Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 3,951 | 4,248 | |
Owner-occupied commercial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 1,238,404 | 1,009,009 | |
Commercial mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 2,246,047 | 1,162,739 | |
Acquired nonimpaired loans | 1,464,739 | 172,082 | |
Commercial mortgages | Special mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 7,352 | 0 | |
Commercial mortgages | Accrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 10,910 | 9,767 | |
Commercial mortgages | Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 2,302 | 3,951 | |
Commercial mortgages | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 0 | 0 | |
Commercial mortgages | Total Special Mention and Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 20,564 | 13,718 | |
Commercial mortgages | Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 13,609 | 7,504 | |
Commercial mortgages | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 2,211,874 | 1,141,517 | |
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 541,696 | 316,566 | |
Acquired nonimpaired loans | 216,843 | $ 7,352 | |
Construction | Special mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 0 | 0 | |
Construction | Accrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 497 | 168 | |
Construction | Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 0 | 2,337 | |
Construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 0 | 444 | |
Construction | Total Special Mention and Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 497 | 2,949 | |
Construction | Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 546 | 749 | |
Construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 540,653 | 312,868 | |
Total Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 6,409,161 | 4,011,768 | |
Acquired nonimpaired loans | 2,500,000 | 350,500 | |
Total Commercial | Special mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 22,169 | 29,940 | |
Total Commercial | Accrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 82,356 | 68,440 | |
Total Commercial | Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 27,772 | 23,874 | |
Total Commercial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 4,324 | 1,320 | |
Total Commercial | Total Special Mention and Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 136,621 | 123,574 | |
Total Commercial | Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | 23,070 | 14,032 | |
Total Commercial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Commercial Loans | $ 6,249,470 | $ 3,874,162 |
ALLOWANCE FOR LOAN AND LEASE _8
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Residential and Consumer Credit Exposure (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 8,601,678 | $ 4,894,257 | $ 4,901,621 |
Total | 100.00% | 100.00% | |
Accrued troubled debt restructured loans | $ 13,900 | $ 14,000 | |
Reverse mortgage, fair value | 15,900 | 16,500 | 16,100 |
Acquired nonimpaired loans | 3,699,730 | 430,000 | 501,057 |
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,065,784 | 201,550 | 213,099 |
Acquired nonimpaired loans | 912,288 | 65,723 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,126,733 | 680,939 | 618,740 |
Acquired nonimpaired loans | 267,955 | $ 29,239 | |
Nonperforming | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 12,106 | 11,017 | |
Nonperforming | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 7,378 | 7,883 | |
Performing | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,045,815 | 189,772 | |
Performing | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 1,116,356 | $ 672,905 | |
Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0.00% | 0.00% | |
Acquired impaired | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 7,863 | $ 761 | |
Acquired impaired | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 2,999 | 151 | |
Total Residential and Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 2,192,517 | $ 882,489 | |
Total | 100.00% | 100.00% | |
Acquired nonimpaired loans | $ 1,200,000 | $ 79,500 | |
Total Residential and Consumer | Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 19,484 | $ 18,900 | |
Total | 1.00% | 2.00% | |
Total Residential and Consumer | Performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 2,162,171 | $ 862,677 | |
Total | 99.00% | 98.00% | |
Total Residential and Consumer | Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 10,862 | $ 912 | |
Total | 0.00% | 0.00% |
ALLOWANCE FOR LOAN AND LEASE _9
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Performing TDRs | $ 14,203 | $ 16,300 | $ 14,953 |
Nonperforming TDRs | 6,966 | 10,211 | |
Total TDRs | $ 21,169 | $ 25,164 |
ALLOWANCE FOR LOAN AND LEASE_10
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Types of TDR (Details) - loan | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 13 | 17 | 20 | 23 |
Owner-occupied commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 2 | 0 | 2 | 0 |
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 1 | 1 | 2 | 2 |
Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 3 | 3 | 3 | 3 |
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 1 |
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 3 | 4 | 5 | 4 |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 4 | 9 | 8 | 13 |
Contractual payment reduction and term extension | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 6 | 14 | 11 | 15 |
Contractual payment reduction and term extension | Owner-occupied commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Contractual payment reduction and term extension | Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 1 | 1 | 1 |
Contractual payment reduction and term extension | Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 3 | 0 | 3 |
Contractual payment reduction and term extension | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Contractual payment reduction and term extension | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 3 | 4 | 4 | 4 |
Contractual payment reduction and term extension | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 3 | 6 | 6 | 7 |
Maturity Date Extension | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 2 | 0 | 2 | 3 |
Maturity Date Extension | Owner-occupied commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Maturity Date Extension | Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 1 |
Maturity Date Extension | Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 1 | 0 | 1 | 0 |
Maturity Date Extension | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 1 |
Maturity Date Extension | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Maturity Date Extension | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 1 | 0 | 1 | 1 |
Discharged in bankruptcy | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 3 | 2 | 3 |
Discharged in bankruptcy | Owner-occupied commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Discharged in bankruptcy | Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Discharged in bankruptcy | Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Discharged in bankruptcy | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Discharged in bankruptcy | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 1 | 0 |
Discharged in bankruptcy | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 3 | 1 | 3 |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 5 | 0 | 5 | 2 |
Other | Owner-occupied commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 2 | 0 | 2 | 0 |
Other | Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 1 | 0 | 1 | 0 |
Other | Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 2 | 0 | 2 | 0 |
Other | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Other | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 0 |
Other | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Modification Total | 0 | 0 | 0 | 2 |
ALLOWANCE FOR LOAN AND LEASE_11
ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total loans identified during the period | $ 4,126 | $ 7,676 | $ 5,127 | $ 9,316 |
Commercial and Industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total loans identified during the period | 1,347 | 4,782 | 1,347 | 4,782 |
Commercial mortgages | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total loans identified during the period | 483 | 1,564 | 514 | 2,022 |
Construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total loans identified during the period | 0 | 0 | 0 | 920 |
Residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total loans identified during the period | 321 | 469 | 423 | 469 |
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total loans identified during the period | 540 | 861 | 1,408 | 1,123 |
Owner-occupied commercial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total loans identified during the period | $ 1,435 | $ 0 | $ 1,435 | $ 0 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 11,024 | $ 16,748 |
Sublease income | (175) | (276) |
Net lease cost | $ 10,849 | $ 16,472 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 43 years | 43 years |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating right of use assets | $ 172,458 |
Operating lease liabilities | $ 186,186 |
Weighted average remaining lease term (in years) | 19 years 9 months 14 days |
Weighted average discount rate | 4.27% |
LEASES - Maturities (Details)
LEASES - Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 14,479 |
2020 | 16,948 |
2021 | 16,605 |
2022 | 16,557 |
2023 | 16,717 |
After 2023 | 212,429 |
Total lease payments | 293,735 |
Less: Interest | (107,549) |
Present value of lease liabilities | $ 186,186 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities Under ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 11,562 |
2020 | 11,411 |
2021 | 11,132 |
2022 | 11,078 |
2023 | 11,141 |
After 2023 | 169,929 |
Total minimum lease payments | $ 226,253 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 7,941 |
Right of use assets obtained in exchange for new operating lease liabilities (non-cash) | $ 61,693 |
LEASES - Direct Financing Lease
LEASES - Direct Financing Leases (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Leases [Abstract] | ||
Interest income on lease receivable | $ 3,109 | $ 3,778 |
Interest income on deferred fees and costs | 206 | 263 |
Total direct financing lease income | 3,315 | 4,041 |
Leasing receivables | ||
Lease receivables | 176,497 | 176,497 |
Unearned income | (20,321) | (20,321) |
Deferred fees and costs | 562 | 562 |
Net investment in direct financing leases | $ 156,738 | $ 156,738 |
LEASES - Minimum Future Lease P
LEASES - Minimum Future Lease Payments to be Received (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 31,405 |
2020 | 54,378 |
2021 | 41,351 |
2022 | 27,301 |
2023 | 16,245 |
After 2023 | 5,817 |
Total lease payments | $ 176,497 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Allocation of Goodwill to Our Reportable Operating Segments for Purposes of Goodwill Impairment Testing (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 166,007 |
Goodwill from business combinations | 309,486 |
Remeasurement adjustments | (1,781) |
Goodwill ending balance | 473,712 |
WSFS Bank | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 145,808 |
Goodwill from business combinations | 309,486 |
Remeasurement adjustments | (1,781) |
Goodwill ending balance | 453,513 |
Cash Connect | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 0 |
Goodwill from business combinations | 0 |
Remeasurement adjustments | 0 |
Goodwill ending balance | 0 |
Wealth Management | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 20,199 |
Goodwill from business combinations | 0 |
Remeasurement adjustments | 0 |
Goodwill ending balance | $ 20,199 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 118,712 | $ 33,024 |
Accumulated Amortization | (16,728) | (13,008) |
Total | 101,984 | 20,016 |
Core deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 95,711 | 10,658 |
Accumulated Amortization | (8,603) | (5,285) |
Total | $ 87,108 | $ 5,373 |
Amortization Period | 10 years | 10 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 17,561 | $ 17,561 |
Accumulated Amortization | (6,615) | (5,815) |
Total | 10,946 | 11,746 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 221 | 221 |
Accumulated Amortization | (124) | (101) |
Total | $ 97 | $ 120 |
Amortization Period | 5 years | 5 years |
Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 5,219 | $ 2,652 |
Accumulated Amortization | (1,386) | (1,301) |
Total | $ 3,833 | 1,351 |
Favorable lease asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 1,932 | |
Accumulated Amortization | (506) | |
Total | $ 1,426 | |
Minimum | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 7 years | 7 years |
Minimum | Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | 10 years |
Minimum | Favorable lease asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 months | |
Maximum | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 15 years | 15 years |
Maximum | Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 30 years | 30 years |
Maximum | Favorable lease asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 18 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense on other intangible assets | $ 5,658 | $ 1,482 | ||
Other Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense on other intangible assets | $ 2,800 | $ 700 | $ 4,100 | $ 1,400 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense of Intangibles (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining in 2019 | $ 5,644 | |
2020 | 11,105 | |
2021 | 10,780 | |
2022 | 10,717 | |
2023 | 10,689 | |
Thereafter | 53,049 | |
Total | $ 101,984 | $ 20,016 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Noninterest-bearing: | ||
Noninterest demand | $ 2,205,992 | $ 1,626,252 |
Total noninterest-bearing | 2,205,992 | 1,626,252 |
Interest-bearing: | ||
Interest-bearing demand | 2,039,545 | 1,062,228 |
Savings | 1,600,879 | 538,213 |
Money market | 1,987,485 | 1,542,962 |
Customer time deposits | 1,437,650 | 672,942 |
Brokered deposits | 323,159 | 197,834 |
Total interest-bearing | 7,388,718 | 4,014,179 |
Total deposits | $ 9,594,710 | $ 5,640,431 |
ASSOCIATE BENEFIT PLANS - Addit
ASSOCIATE BENEFIT PLANS - Additional Information (Details) | Mar. 31, 2014 | Jun. 30, 2019 |
Postemployment Benefits [Abstract] | ||
Requisite service period | 10 years | |
Amortization of unrecognized gains losses exceed percentage | 10.00% |
ASSOCIATE BENEFIT PLANS - Sched
ASSOCIATE BENEFIT PLANS - Schedule of Net Periodic Benefit Cost Components of Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Postretirement Health Coverage | ||||
Business Acquisition [Line Items] | ||||
Service cost | $ 14 | $ 15 | $ 27 | $ 30 |
Interest cost | 19 | 18 | 38 | 35 |
Prior service cost amortization | (19) | (19) | (38) | (38) |
Net gain recognition | (16) | (12) | (31) | (23) |
Net periodic benefit cost | (2) | 2 | (4) | 4 |
Pension Plan | Alliance | ||||
Business Acquisition [Line Items] | ||||
Service cost | 10 | 10 | 20 | 20 |
Interest cost | 69 | 74 | 138 | 147 |
Expected return on plan assets | (148) | (137) | (295) | (272) |
Prior service cost amortization | 0 | 0 | 0 | 0 |
Net gain recognition | 0 | 0 | 0 | 0 |
Net periodic benefit cost | (69) | (53) | (137) | (105) |
Other Postretirement Benefits | Alliance | ||||
Business Acquisition [Line Items] | ||||
Service cost | 0 | 0 | 23 | 30 |
Interest cost | 857 | 1,142 | 177 | 236 |
Expected return on plan assets | (1,442) | (1,923) | 0 | 0 |
Prior service cost amortization | 0 | 0 | 0 | 0 |
Net gain recognition | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ (585) | $ (781) | $ 200 | $ 266 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Examination [Line Items] | |||||
Unrecognized tax benefits | $ 0 | $ 0 | |||
Amortization method qualified affordable housing project investments, amortization | 600,000 | $ 500,000 | 1,300,000 | $ 900,000 | |
Tax benefits recorded as income tax expense | 200,000 | ||||
Carrying value of investment in affordable housing credits | 15,600,000 | 15,600,000 | $ 16,900,000 | ||
Tax Credit | |||||
Income Tax Examination [Line Items] | |||||
Affordable housing tax credits | $ 1,200,000 | $ 1,200,000 |
FAIR VALUE DISCLOSURES OF FIN_3
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Schedule of Financial Instruments Carried at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 1,796,870 | $ 1,205,079 |
Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 1,801,865 | 1,207,177 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 153,593 | 112,313 |
CMO | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 372,235 | 371,750 |
CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 372,235 | 371,750 |
FNMA MBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 1,052,395 | 644,073 |
FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 1,052,395 | 644,073 |
FHLMC MBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 336,583 | 153,922 |
FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 336,583 | 153,922 |
GNMA MBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 35,657 | 35,334 |
GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 35,657 | 35,334 |
Other Assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 4,995 | 2,098 |
Other Liabilities | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities | 4,562 | 3,493 |
Other equity investments | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 48,711 | 37,233 |
Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 3,703 | 2,668 |
Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 51,721 | 25,318 |
Impaired loans, net | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 49,458 | 47,094 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other Assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other Liabilities | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other equity investments | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Impaired loans, net | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 1,801,865 | 1,207,177 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 51,721 | 25,318 |
Significant Other Observable Inputs (Level 2) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 372,235 | 371,750 |
Significant Other Observable Inputs (Level 2) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 1,052,395 | 644,073 |
Significant Other Observable Inputs (Level 2) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 336,583 | 153,922 |
Significant Other Observable Inputs (Level 2) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 35,657 | 35,334 |
Significant Other Observable Inputs (Level 2) | Other Assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 4,995 | 2,098 |
Significant Other Observable Inputs (Level 2) | Other Liabilities | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities | 4,562 | 3,493 |
Significant Other Observable Inputs (Level 2) | Other equity investments | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 51,721 | 25,318 |
Significant Other Observable Inputs (Level 2) | Impaired loans, net | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 101,872 | 86,995 |
Significant Unobservable Inputs (Level 3) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Liabilities | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other equity investments | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 48,711 | 37,233 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 3,703 | 2,668 |
Significant Unobservable Inputs (Level 3) | Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans, net | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | $ 49,458 | $ 47,094 |
FAIR VALUE DISCLOSURES OF FIN_4
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment securities available for sale | $ 1,796,870,000 | $ 1,796,870,000 | $ 1,205,079,000 | ||
Unrealized gains on equity investments | 1,033,000 | $ 0 | $ 4,831,000 | $ 15,346,000 | |
Minimum discount rate on appraisals of collateral securing loan | 10.00% | ||||
Maximum discount rate on appraisals of collateral securing loan | 20.00% | ||||
Loan balances | 54,632,000 | $ 54,632,000 | 49,352,000 | ||
Related reserve | 5,174,000 | 5,174,000 | 2,258,000 | ||
Commitments of lending operations | 0 | $ 0 | |||
Significant Other Observable Inputs (Level 2) | Federal Agency MBS | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment securities available for sale | $ 1,800,000,000 | 1,800,000,000 | |||
Accounting Standards Update 2016-01 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Unrealized gains on equity investments | $ 4,800,000 | $ 15,300,000 |
FAIR VALUE DISCLOSURES OF FIN_5
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Book Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Investment securities available for sale | $ 1,796,870 | $ 1,205,079 |
Investment securities held to maturity | 143,317 | 149,950 |
Other investments | 48,711 | 37,233 |
Loans, held for sale | 51,721 | 25,318 |
Loans, net | 8,567,709 | 4,863,919 |
Stock in FHLB of Pittsburgh | 15,874 | 19,259 |
Accrued interest receivable | 40,784 | 22,001 |
Other assets | 256,480 | 65,020 |
Financial liabilities: | ||
Deposits | 9,594,710 | 5,640,431 |
Accrued interest payable | 7,064 | 1,900 |
Book Value | Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 521,825 | 620,757 |
Book Value | Fair Value Inputs Level 1 And Level 2 | ||
Financial assets: | ||
Investment securities available for sale | 1,796,870 | 1,205,079 |
Book Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Investment securities held to maturity | 143,317 | 149,950 |
Loans, held for sale | 51,721 | 25,318 |
Stock in FHLB of Pittsburgh | 15,874 | 19,259 |
Accrued interest receivable | 40,784 | 22,001 |
Financial liabilities: | ||
Deposits | 9,594,710 | 5,640,431 |
Borrowed funds | 415,131 | 699,788 |
Accrued interest payable | 7,064 | 1,900 |
Other liabilities | 4,562 | 3,493 |
Book Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Other investments | 48,711 | 37,233 |
Loans, net | 8,518,251 | 4,816,825 |
Impaired loans, net | 49,458 | 47,094 |
Other assets | 4,995 | 2,098 |
Financial liabilities: | ||
Standby letters of credit | 407 | 495 |
Fair Value | Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 521,825 | 620,757 |
Fair Value | Fair Value Inputs Level 1 And Level 2 | ||
Financial assets: | ||
Investment securities available for sale | 1,796,870 | 1,205,079 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Investment securities held to maturity | 145,867 | 149,431 |
Loans, held for sale | 51,721 | 25,318 |
Stock in FHLB of Pittsburgh | 15,874 | 19,259 |
Accrued interest receivable | 40,784 | 22,001 |
Financial liabilities: | ||
Deposits | 9,680,779 | 5,597,227 |
Borrowed funds | 415,155 | 694,526 |
Accrued interest payable | 7,064 | 1,900 |
Other liabilities | 4,579 | 3,493 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Other investments | 48,711 | 37,233 |
Loans, net | 8,739,014 | 4,772,377 |
Impaired loans, net | 49,458 | 47,094 |
Other assets | 4,995 | 2,098 |
Financial liabilities: | ||
Standby letters of credit | $ 407 | $ 495 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Instruments (Details) $ in Thousands | Jun. 30, 2019USD ($)instrument | Dec. 31, 2018USD ($)instrument |
Derivative [Line Items] | ||
Notional | $ 469,208 | $ 167,933 |
Total derivatives | 433 | (2,664) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional | 75,000 | 75,000 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 394,208 | 92,933 |
Total derivatives | 1,508 | 644 |
Other Liabilities | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Liability | (1,075) | $ (3,308) |
Interest rate products | Other Assets | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 80,996 | |
Derivative Asset | $ 3,043 | |
Interest rate products | Other Liabilities | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Count | instrument | 3 | 3 |
Notional | $ 75,000 | $ 75,000 |
Derivative Liability | (1,075) | (3,308) |
Interest rate products | Other Liabilities | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 80,996 | |
Derivative Liability | (3,247) | |
Risk participation agreements | Other Liabilities | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 5,455 | |
Derivative Liability | (7) | |
Interest rate lock commitments with customers | Other Assets | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 108,345 | 40,795 |
Derivative Asset | 1,727 | 686 |
Interest rate lock commitments with customers | Other Liabilities | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 5,693 | 6,530 |
Derivative Liability | (13) | (24) |
Forward sale commitments | Other Assets | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 47,607 | 19,732 |
Derivative Asset | 225 | 143 |
Forward sale commitments | Other Liabilities | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 65,116 | 25,876 |
Derivative Liability | $ (220) | $ (161) |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)instrument | Dec. 31, 2018USD ($)instrument | |
Derivative [Line Items] | ||
Interest rate cash flow hedge increase decrease interest expense to be reclassified during next 12 months net | $ 600 | |
Interest rate cash flow hedge gain (loss) reclassified to earnings, net | 700 | |
Notional | 469,208 | $ 167,933 |
Termination value of derivatives | 433 | (2,664) |
Collateral value against obligations | 6,600 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional | 75,000 | $ 75,000 |
Accrued Liabilities | ||
Derivative [Line Items] | ||
Termination value of derivatives | $ 1,200 | |
Other Liabilities | Interest rate products | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Count | instrument | 3 | 3 |
Notional | $ 75,000 | $ 75,000 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Effect of Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) | $ (1,007) | $ (1,637) | ||
Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) | $ (246) | $ (1,010) | ||
Interest income | Interest Rate Products | ||||
Derivative [Line Items] | ||||
Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) | (1,007) | (1,637) | ||
Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) | (246) | (1,010) | ||
Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income | 55 | 156 | 453 | (628) |
Derivatives not designated as hedging instruments | Mortgage banking activities, net | Interest rate lock commitments with customers | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income | 542 | 96 | 1,174 | (296) |
Derivatives not designated as hedging instruments | Mortgage banking activities, net | Forward sale commitments | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income | $ (487) | $ 60 | $ (721) | $ (332) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Interest income | $ 142,903 | $ 72,151 | $ 242,480 | $ 139,764 |
Noninterest income | 42,871 | 34,987 | 83,993 | 82,454 |
Total revenue | 185,774 | 107,138 | 326,473 | 222,218 |
Interest expense | 19,671 | 11,162 | 35,934 | 21,061 |
Noninterest expenses | 107,848 | 57,831 | 205,440 | 111,243 |
Provision for loan losses | 12,195 | 2,498 | 19,849 | 6,148 |
Total expenses | 139,714 | 71,491 | 261,223 | 138,452 |
Income before taxes | 46,060 | 35,647 | 65,250 | 83,766 |
Income tax provision | 10,091 | 6,907 | 16,351 | 17,676 |
Net income | 35,969 | 28,740 | 48,899 | 66,090 |
Less: Net loss attributable to noncontrolling interest | (231) | 0 | (324) | 0 |
Net income attributable to WSFS | 36,200 | 28,740 | 49,223 | 66,090 |
Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 7,397 | 6,235 | 15,194 | 11,566 |
Noninterest income | 2,559 | 2,456 | 4,805 | 4,779 |
Total revenue | 9,956 | 8,691 | 19,999 | 16,345 |
Interest expense | 7,397 | 6,235 | 15,194 | 11,566 |
Noninterest expenses | 2,559 | 2,456 | 4,805 | 4,779 |
Total expenses | 9,956 | 8,691 | 19,999 | 16,345 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 195,730 | 115,829 | 346,472 | 238,563 |
Total expenses | 149,670 | 80,182 | 281,222 | 154,797 |
Income before taxes | 46,060 | 35,647 | 65,250 | 83,766 |
WSFS Bank | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 140,231 | 69,599 | 237,177 | 134,889 |
Noninterest income | 18,870 | 12,045 | 36,134 | 38,651 |
Total revenue | 159,101 | 81,644 | 273,311 | 173,540 |
Interest expense | 18,282 | 10,599 | 33,418 | 20,102 |
Noninterest expenses | 91,415 | 42,505 | 173,992 | 81,940 |
Provision for loan losses | 12,239 | 2,284 | 19,525 | 5,945 |
Total expenses | 121,936 | 55,388 | 226,935 | 107,987 |
WSFS Bank | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 3,345 | 3,565 | 7,137 | 6,533 |
Noninterest income | 2,156 | 2,219 | 4,039 | 4,327 |
Total revenue | 5,501 | 5,784 | 11,176 | 10,860 |
Interest expense | 4,052 | 2,670 | 8,057 | 5,033 |
Noninterest expenses | 403 | 237 | 766 | 452 |
Total expenses | 4,455 | 2,907 | 8,823 | 5,485 |
WSFS Bank | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 164,602 | 87,428 | 284,487 | 184,400 |
Total expenses | 126,391 | 58,295 | 235,758 | 113,472 |
Income before taxes | 38,211 | 29,133 | 48,729 | 70,928 |
Cash Connect | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 0 | 0 | 0 | 0 |
Noninterest income | 13,355 | 12,328 | 25,757 | 23,681 |
Total revenue | 13,355 | 12,328 | 25,757 | 23,681 |
Interest expense | 0 | 0 | 0 | 0 |
Noninterest expenses | 8,893 | 7,905 | 16,923 | 15,224 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Total expenses | 8,893 | 7,905 | 16,923 | 15,224 |
Cash Connect | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 0 | 0 | 0 | 0 |
Noninterest income | 192 | 200 | 369 | 381 |
Total revenue | 192 | 200 | 369 | 381 |
Interest expense | 2,203 | 2,516 | 4,761 | 4,575 |
Noninterest expenses | 698 | 637 | 1,243 | 1,309 |
Total expenses | 2,901 | 3,153 | 6,004 | 5,884 |
Cash Connect | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 13,547 | 12,528 | 26,126 | 24,062 |
Total expenses | 11,794 | 11,058 | 22,927 | 21,108 |
Income before taxes | 1,753 | 1,470 | 3,199 | 2,954 |
Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 2,672 | 2,552 | 5,303 | 4,875 |
Noninterest income | 10,646 | 10,614 | 22,102 | 20,122 |
Total revenue | 13,318 | 13,166 | 27,405 | 24,997 |
Interest expense | 1,389 | 563 | 2,516 | 959 |
Noninterest expenses | 7,540 | 7,421 | 14,525 | 14,079 |
Provision for loan losses | (44) | 214 | 324 | 203 |
Total expenses | 8,885 | 8,198 | 17,365 | 15,241 |
Wealth Management | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 4,052 | 2,670 | 8,057 | 5,033 |
Noninterest income | 211 | 37 | 397 | 71 |
Total revenue | 4,263 | 2,707 | 8,454 | 5,104 |
Interest expense | 1,142 | 1,049 | 2,376 | 1,958 |
Noninterest expenses | 1,458 | 1,582 | 2,796 | 3,018 |
Total expenses | 2,600 | 2,631 | 5,172 | 4,976 |
Wealth Management | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 17,581 | 15,873 | 35,859 | 30,101 |
Total expenses | 11,485 | 10,829 | 22,537 | 20,217 |
Income before taxes | $ 6,096 | $ 5,044 | $ 13,322 | $ 9,884 |
SEGMENT INFORMATION - Details o
SEGMENT INFORMATION - Details of Segment Information - Statement of Financial Condition (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 521,825 | $ 620,757 | $ 703,480 | $ 723,866 |
Goodwill | 473,712 | 166,007 | ||
Other segment assets | 11,161,058 | 6,462,106 | ||
Total assets | 12,156,595 | 7,248,870 | ||
Capital expenditures | 5,441 | 5,498 | ||
WSFS Bank | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 167,173 | 115,147 | ||
Goodwill | 453,513 | 145,808 | ||
Other segment assets | 10,938,718 | 6,225,820 | ||
Total assets | 11,559,404 | 6,486,775 | ||
Capital expenditures | 5,240 | 4,779 | ||
Cash Connect | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 345,971 | 491,863 | ||
Goodwill | 0 | 0 | ||
Other segment assets | 6,875 | 7,743 | ||
Total assets | 352,846 | 499,606 | ||
Capital expenditures | 71 | 375 | ||
Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 8,681 | 13,747 | ||
Goodwill | 20,199 | 20,199 | ||
Other segment assets | 215,465 | 228,543 | ||
Total assets | 244,345 | 262,489 | ||
Capital expenditures | $ 130 | $ 344 |
INDEMNIFICATIONS AND GUARANTE_2
INDEMNIFICATIONS AND GUARANTEES (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)loaninstitutiontransaction | Dec. 31, 2018USD ($)loan | |
Guarantor Obligations [Line Items] | ||
Number of unrelated financial institutions | institution | 7 | |
Derivative transaction held for guarantee | loan | 168 | 136 |
Notional | $ 469,208,000 | $ 167,933,000 |
Aggregate fair value of swaps to customers, liability | (25,100,000) | (300,000) |
Reserves for swap guarantees | $ 0 | |
Minimum | ||
Guarantor Obligations [Line Items] | ||
Notional amount maturity period | 1 year | |
Maximum | ||
Guarantor Obligations [Line Items] | ||
Notional amount maturity period | 15 years | |
Secondary Market Loan Sales | ||
Guarantor Obligations [Line Items] | ||
Provision for losses at the time of sale | $ 0 | |
Number of loans repurchased | transaction | 1 | |
Loans repurchased | $ 200,000 | |
Interest Rate Swap | ||
Guarantor Obligations [Line Items] | ||
Derivative transaction held for guarantee | loan | 146 | |
Notional | $ 766,100,000 | $ 581,500,000 |
Aggregate fair value of swaps to customers, liability | $ (26,100,000) |
CHANGE IN ACCUMULATED OTHER C_3
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 820,920 | |||
Other comprehensive (loss) income before reclassifications | $ 20,608 | $ (4,738) | 38,402 | $ (17,330) |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | (176) | (155) | (320) | (231) |
Net current-period other comprehensive income (loss) | 20,432 | (4,893) | 38,082 | (17,561) |
Ending Balance | 1,836,611 | 1,836,611 | ||
Net change in investment securities available for sale | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 2,701 | (19,685) | (14,553) | (7,842) |
Other comprehensive (loss) income before reclassifications | 19,591 | (4,501) | 36,856 | (16,328) |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | (48) | 0 | (59) | (16) |
Net current-period other comprehensive income (loss) | 19,543 | (4,501) | 36,797 | (16,344) |
Ending Balance | 22,244 | (24,186) | 22,244 | (24,186) |
Net change in investment securities held to maturity | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 686 | 1,104 | 779 | 1,223 |
Other comprehensive (loss) income before reclassifications | 0 | 0 | (2) | 0 |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | (84) | (117) | (175) | (236) |
Net current-period other comprehensive income (loss) | (84) | (117) | (177) | (236) |
Ending Balance | 602 | 987 | 602 | 987 |
Net change in defined benefit plan | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 693 | 924 | 834 | 865 |
Other comprehensive (loss) income before reclassifications | 10 | 8 | (89) | 8 |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | (44) | (38) | (86) | 21 |
Net current-period other comprehensive income (loss) | (34) | (30) | (175) | 29 |
Ending Balance | 659 | 894 | 659 | 894 |
Net change in fair value of derivatives used for cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,824) | (3,163) | (2,454) | (2,398) |
Other comprehensive (loss) income before reclassifications | 1,007 | (245) | 1,637 | (1,010) |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | 1,007 | (245) | 1,637 | (1,010) |
Ending Balance | (817) | (3,408) | (817) | (3,408) |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 2,256 | (20,820) | (15,394) | (8,152) |
Ending Balance | $ 22,688 | $ (25,713) | $ 22,688 | $ (25,713) |
CHANGE IN ACCUMULATED OTHER C_4
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Realized gains on securities transactions | $ 63 | $ 0 | $ 78 | $ 21 | |
Income taxes | (10,091) | (6,907) | (16,351) | (17,676) | |
Interest and dividends on investment securities | 142,903 | 72,151 | 242,480 | 139,764 | |
Income before taxes | 46,060 | 35,647 | 65,250 | 83,766 | |
Net income attributable to WSFS | 36,200 | 28,740 | 49,223 | 66,090 | |
Prior service cost (credit), tax adjustment | $ 100 | ||||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income attributable to WSFS | (176) | (155) | (320) | (231) | |
Reclassification out of Accumulated Other Comprehensive Income | Net change in defined benefit plan | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income taxes | (9) | (7) | (17) | 4 | |
Prior service costs (credits) | (19) | (19) | (38) | 40 | |
Transition obligation | 0 | 0 | |||
Actuarial gains | (16) | (12) | (31) | (23) | |
Income before taxes | (35) | (31) | (69) | 17 | |
Net income attributable to WSFS | (44) | (38) | (86) | 21 | |
Reclassification out of Accumulated Other Comprehensive Income | Realized Gains on Securities Transactions | Net change in investment securities available for sale | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Realized gains on securities transactions | (63) | 0 | (78) | (21) | |
Income taxes | 15 | 0 | 19 | 5 | |
Net income attributable to WSFS | (48) | 0 | (59) | (16) | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Net Unrealized Gains to Income During Period | Net change in investment securities available for sale | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income taxes | 27 | 36 | 56 | 73 | |
Amortization of net unrealized gains to income during the period | (111) | (153) | |||
Interest and dividends on investment securities | (231) | (309) | |||
Net income attributable to WSFS | $ (84) | $ (117) | $ (175) | $ (236) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Total deposits from related parties | $ 8.3 | $ 5.4 |
Loans | ||
Related Party Transaction [Line Items] | ||
Maximum loan capacity | 0.5 | |
Related party loan repayment | 1 | $ 1.2 |
New Loans And Credit Line Advance To Related Parties | ||
Related Party Transaction [Line Items] | ||
New loans and credit line advance to related parties | 0.1 | |
Repayments from related party debt | $ 0.3 |
LEGAL AND OTHER PROCEEDINGS (De
LEGAL AND OTHER PROCEEDINGS (Details) - USD ($) | Feb. 27, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | Mar. 31, 2017 |
Loss Contingencies [Line Items] | ||||
Additions to other significant pending legal or other proceedings | $ 0 | |||
Universitas Education, LLC | Settled Litigation | ||||
Loss Contingencies [Line Items] | ||||
Loss related to litigation settlement | $ 12,000,000 | |||
Proceeds from arbitration settlement and legal costs | $ 7,900,000 | |||
NHT | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Face amount | $ 6,300,000 |